WEBVTT - Bloomberg Daybreak: December 12, 2022 - Hour 1 (Radio) 0:00:03.000 --> 0:00:06.320 Live from the Bloomberg Interactive Brooker Studios is his Bloomberg 0:00:06.400 --> 0:00:10.000 Daybreak for a Monday, December twelve coming up this hour. 0:00:10.440 --> 0:00:13.400 A huge week for central banks, with the Fed, ECB 0:00:13.640 --> 0:00:17.360 and Bank of England all making policy decisions. Treasury Secretary 0:00:17.440 --> 0:00:20.239 Janet Yellen says inflation will be much lower by the 0:00:20.280 --> 0:00:24.160 end of next year. Am JEN makes its biggest acquisition ever, 0:00:24.600 --> 0:00:27.200 and the January six Committee gets a step closer to 0:00:27.240 --> 0:00:30.560 its final report. I'm Amy Morris. New York subway officials 0:00:30.560 --> 0:00:33.239 are looking at hiking fairs, and the area is bracing 0:00:33.280 --> 0:00:36.640 for its first major snow event this season. John stash 0:00:36.640 --> 0:00:39.280 Allard swards the Giants got blown out by Philadelphia, the 0:00:39.360 --> 0:00:44.959 Jets lost in Buffalo, the Nicks sacrament them. That's all 0:00:45.120 --> 0:00:48.800 trading ahead on Bloomberg Daybreak on Bloomberg eleven three on 0:00:48.920 --> 0:00:53.320 New York, Bloomberg one, Washington, d C, Bloomberg one oh 0:00:53.400 --> 0:00:58.160 six one, Boston, Bloomberg nine sixties and Francisco Syrius XM 0:00:58.200 --> 0:01:00.960 one nine team and around the world Old on Bloomberg 0:01:01.040 --> 0:01:08.440 Radio dot Com and via the Bloomberg Business app. Good Morning, 0:01:08.440 --> 0:01:11.440 I'm Nathan Hagar, and I'm Karen Moscow and US DOT 0:01:11.520 --> 0:01:14.200 index futures are on the rise this morning. It is 0:01:14.240 --> 0:01:15.960 five oh one on Wall Street, and we check the 0:01:15.959 --> 0:01:18.320 markets all day long year at bloomberg S and P 0:01:18.560 --> 0:01:21.360 futures up seven points or two tenths of a percent, 0:01:21.560 --> 0:01:24.240 Dow futures up forty one points or a tenth of 0:01:24.280 --> 0:01:26.959 a percent, and NASDAIC futures are up twenty eight points 0:01:27.040 --> 0:01:30.119 or a quarter percent. The decks in Germany is down 0:01:30.160 --> 0:01:33.280 at tenth of a percent, and the tenure Treasury is 0:01:33.360 --> 0:01:36.240 up ten thirty seconds here three point five four percent, 0:01:36.600 --> 0:01:39.040 yield on the two year four point three two percent. 0:01:39.280 --> 0:01:42.119 Nathan Karen, we begin this morning with a big week 0:01:42.160 --> 0:01:45.240 for central bank decisions, both here and abroad. Let's get 0:01:45.240 --> 0:01:48.720 a preview from Bloomberg's Michael McKee. Are you ready for risk? 0:01:48.840 --> 0:01:52.320 We have a host of major market moving events this week. Tuesday, 0:01:52.520 --> 0:01:54.880 us c P I will weigh on investors views of 0:01:54.920 --> 0:01:58.160 what the Fed will and has to do. Wednesday, the 0:01:58.160 --> 0:02:00.360 Fed will tell us not just a rate move, but 0:02:00.440 --> 0:02:03.720 new economic forecasts and a new dot plot. How high 0:02:03.800 --> 0:02:06.440 do they think US interest rates have to go? How 0:02:06.520 --> 0:02:08.840 high will they have to go in Europe? Well, Thursday, 0:02:08.840 --> 0:02:11.680 all eyes turned to the ECB, which will also be 0:02:11.720 --> 0:02:15.080 moving rates up and offering new forecasts. What kind of 0:02:15.240 --> 0:02:18.640 recession will they see? The Bank of England has already 0:02:18.680 --> 0:02:22.160 forecast contraction, but with inflation high, they are expected to 0:02:22.240 --> 0:02:25.480 raise rates again on Thursday. The question on thread Needle Street, 0:02:25.840 --> 0:02:29.440 when do they stop? Michael McKie blue Berg Daybreak A 0:02:29.560 --> 0:02:31.639 ry Michael, thank you well so far the juries out 0:02:31.639 --> 0:02:34.440 and whether central banks are winning the war on inflation? 0:02:34.520 --> 0:02:38.600 But Treasury Secretary Janet Yellen is optimistic. She says prices 0:02:38.600 --> 0:02:41.200 should be much lower by the end of next year. 0:02:41.560 --> 0:02:44.760 As long as there aren't any unexpected shocks to the economy, 0:02:45.080 --> 0:02:48.919 I believe inflation will be lower. Um. I am very 0:02:49.040 --> 0:02:55.440 hopeful that the labor market will remain quite healthy so 0:02:55.600 --> 0:03:00.200 that people can feel good about their finances. In an 0:03:00.240 --> 0:03:03.880 interview with CBS IS sixty minutes, Secretary Yellen said ending 0:03:03.960 --> 0:03:06.799 Russia's war in Ukraine would be the single best thing 0:03:06.840 --> 0:03:10.040 for the global economy. She says US support for Ukraine 0:03:10.080 --> 0:03:13.360 will continue, quote as long as it takes. We're doing 0:03:13.400 --> 0:03:16.760 everything we can to bring this war to a conclusion. 0:03:17.440 --> 0:03:23.600 Of course, we're providing considerable help um to Ukraine, both 0:03:23.720 --> 0:03:28.040 military and economic, and listeners in Washington can hear sixty 0:03:28.080 --> 0:03:32.720 minutes from CBS Sunday nights at ten on Bloomberg. Support 0:03:32.760 --> 0:03:35.200 for Ukraine will be high on the agenda, Karen, when 0:03:35.200 --> 0:03:38.360 Group of seven leaders meet virtually today. The White House 0:03:38.360 --> 0:03:42.000 says President Biden spoke with Ukrainian President vladimir's Lensky last 0:03:42.080 --> 0:03:45.080 night to underscore his support. The US has promised thirty 0:03:45.080 --> 0:03:48.280 eight billion dollars in military aid and delivered thirteen billion 0:03:48.320 --> 0:03:51.520 in direct aid to Ukraine so far. Meantime, Nathan, the 0:03:51.600 --> 0:03:54.600 US will send a delegation to China on the coming days. 0:03:54.720 --> 0:03:57.640 The move follows up on President Biden's meeting with Chinese 0:03:57.680 --> 0:04:01.080 President Sheijin, paying last month that at the G twenty, 0:04:01.200 --> 0:04:04.320 the two countries have plenty of disagreements, including over Taiwan 0:04:04.440 --> 0:04:08.160 and US moves to limit China's economic and technological influence. 0:04:08.440 --> 0:04:11.080 We have moves on a Capitol Hills response to last 0:04:11.160 --> 0:04:15.000 year's insurrection, Karen. The January six Committee has taken another 0:04:15.040 --> 0:04:17.719 step on its way to producing its final report, with 0:04:17.800 --> 0:04:22.360 a new subcommittee meeting. Bloomberg's Backster reports. The stated purpose 0:04:22.400 --> 0:04:25.600 of the meeting possible prosecution on criminal charges coming out 0:04:25.600 --> 0:04:28.960 of the insurrection. Congressman Adam Schiff on CBS has heard 0:04:29.000 --> 0:04:31.120 here on Bloomberg. I think we're all certainly an agreement 0:04:31.320 --> 0:04:34.480 that there is evidence of criminality here shifts as a 0:04:34.520 --> 0:04:37.040 committee has been able to provide very important information to 0:04:37.120 --> 0:04:39.440 the d o J. But just as important, I think 0:04:39.440 --> 0:04:42.560 it makes an important statement, not a political one, but 0:04:42.760 --> 0:04:46.839 a statement about the evidence of an attack on the 0:04:46.920 --> 0:04:50.200 institutions for democracy and the peaceful transfer of power. Less 0:04:50.200 --> 0:04:53.880 than two weeks until the curtain comes down in San Francisco. 0:04:53.920 --> 0:04:56.240 I'm at Baxter Bloomberg Gay Break, all right, and thank 0:04:56.279 --> 0:04:58.039 you all. Turning to the markets now, we have a 0:04:58.080 --> 0:05:00.080 couple of deals to kick off the week in at 0:05:00.279 --> 0:05:02.719 one in the biotech industry. Let me get the latest 0:05:02.760 --> 0:05:05.600 live with the Bloomberg Steve Rappaport, Good morning, Steve, the 0:05:05.600 --> 0:05:08.640 Good morning, Karen and Nathan Mgen plans to buy Horizon 0:05:08.680 --> 0:05:11.919 Therapeutics at a valuation of twenty six billion dollars in 0:05:11.960 --> 0:05:15.039 what would be its largest acquisition to date, sources telling 0:05:15.040 --> 0:05:18.640 Bloomberg News, the biotech giant offered about one sixteen dollars 0:05:18.640 --> 0:05:22.080 for each Horizon share. Horizon stock closing Friday at ninety 0:05:22.120 --> 0:05:25.280 seven dollars and twenty seven cents shares jumping more than 0:05:25.320 --> 0:05:28.080 eleven percent this morning in pre market trading. It's not 0:05:28.160 --> 0:05:30.400 a done deal yet, though people familiar with the matters 0:05:30.400 --> 0:05:33.600 say negotiations could still fall apart. Live to New York. 0:05:33.600 --> 0:05:36.560 I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you, 0:05:36.600 --> 0:05:39.480 And we also have an acquisition involving Microsoft. The company 0:05:39.480 --> 0:05:41.599 has agreed to buy a steak in the London Stock 0:05:41.680 --> 0:05:45.000 Exchange Group. The deal gives Microsoft a four percent equity 0:05:45.040 --> 0:05:47.720 holding as part of a new long term strategic partnership 0:05:47.960 --> 0:05:50.599 stakes part of a broader tenure agreement to help the 0:05:50.640 --> 0:05:54.600 London Stock Exchange owner developed data, analytics and cloud infrastructure 0:05:54.680 --> 0:05:58.200 using Microsoft's products. We'll staying in London now, Nathan. We 0:05:58.240 --> 0:06:00.960 have a couple of major storage that this morning centered 0:06:00.960 --> 0:06:03.680 on the UK economy. There's fresh growth data from the 0:06:03.760 --> 0:06:07.200 UK as the country grapples with widespread strikes. Let's go 0:06:07.240 --> 0:06:09.560 to London and get the latest, Live with Bloomberg's James 0:06:09.600 --> 0:06:13.240 wild Clock. Good morning, James, Good morning from a frosty UK. Karen. 0:06:13.320 --> 0:06:15.960 The economy here expanded north point five percent in October 0:06:16.000 --> 0:06:18.800 as business recovered output loft in public holidays after the 0:06:18.839 --> 0:06:21.360 death of the Queen. But with strikes across the country 0:06:21.360 --> 0:06:25.160 affecting health, transport and education, the outlook is much grimmer. 0:06:25.320 --> 0:06:27.599 You can already see that in hospitality, with pubs and 0:06:27.640 --> 0:06:30.120 restaurants saying Christmas party bookings are as bad as they 0:06:30.120 --> 0:06:33.359 were during COVID as people canceled due to rail strikes. 0:06:33.600 --> 0:06:35.880 The UK government is meeting this morning to discuss sending 0:06:35.880 --> 0:06:38.360 in the army to fill in for workers walking out 0:06:38.560 --> 0:06:41.480 in London. James Wilcock, Bloomberg, day break, All right, James, 0:06:41.480 --> 0:06:43.840 thank you. And in banking news this morning, Reuter's is 0:06:43.880 --> 0:06:47.160 reporting the Morgan Stanley plans to cut investment bankers annual 0:06:47.200 --> 0:06:50.320 bonuses in Asia by as much as fifty percent this year. 0:06:50.680 --> 0:06:54.040 Scale the cuts and its Asia business could possibly reuplicated 0:06:54.040 --> 0:06:57.039 in the US and Europe, according to this report. Local 0:06:57.080 --> 0:06:59.880 headlines in the check of Sports. Next, this is Bloomberg. 0:07:03.320 --> 0:07:05.440 So five oh seven on Wall Street, we had thirty 0:07:05.480 --> 0:07:08.640 two degrees in central parks. It's gonna stay Shuly today 0:07:08.640 --> 0:07:11.240 in the sunshine, highs only near forty degrees, and we're 0:07:11.240 --> 0:07:13.400 gonna get down to the upper twenties tonight. Welcome to 0:07:13.440 --> 0:07:16.440 winter's bringing. Amy Morris for look what else is going 0:07:16.480 --> 0:07:18.440 on in New York and around the world. Good morning Amy, 0:07:18.760 --> 0:07:21.320 Good morning Nathan. More than thirty years after the bombing 0:07:21.360 --> 0:07:23.960 of pan amp Like one oh three over lockerby Scotland 0:07:23.960 --> 0:07:27.280 that killed two hundred seventy people, including thirty eight New 0:07:27.360 --> 0:07:31.280 Jersey residents, a suspect is in US custody. Bert Ammerman's 0:07:31.360 --> 0:07:34.560 brother Tom from New Jersey, says there's just no closure. 0:07:34.360 --> 0:07:37.560 The two daughters at the Times six and four wife. 0:07:37.960 --> 0:07:40.640 He was thirty six young. He didn't get to live 0:07:40.680 --> 0:07:42.880 his life. The suspect is expected to make a court 0:07:42.880 --> 0:07:46.440 appearance in Washington, d c. On criminal federal charges. New 0:07:46.480 --> 0:07:49.880 York subway officials are looking to avoid a budget disaster. 0:07:50.080 --> 0:07:53.680 The Metropolitan Transportation Authority says it could face a budget 0:07:53.680 --> 0:07:57.360 gap of nearly three billion dollars by The New York 0:07:57.360 --> 0:08:01.080 Times reports they're considering raising the transit systems base fair 0:08:01.120 --> 0:08:05.360 a couple of times by just over three dollars. It 0:08:05.400 --> 0:08:07.760 would be the first time they've talked about raising fairs 0:08:07.920 --> 0:08:12.320 since the pandemic began. Forecasters say up to five inches 0:08:12.360 --> 0:08:15.760 of snow could fall on parts of northwestern New Jersey today. 0:08:16.120 --> 0:08:18.440 It is the first major snow event of the season. 0:08:18.800 --> 0:08:22.120 Governor Phil Murphy cautioned motorists to be careful when driving 0:08:22.240 --> 0:08:25.680 north of It's, where a wintry mix of snow and 0:08:25.720 --> 0:08:29.560 ice is expected. It is the largest oil spill in 0:08:29.680 --> 0:08:33.920 Keystone Pipeline history, more than five eighty eight thousand gallons 0:08:33.920 --> 0:08:37.360 of crude. Officials say they've got the spill contained for now. 0:08:37.679 --> 0:08:41.120 Warren Martin is the executive director of Kansas Strong, a 0:08:41.200 --> 0:08:45.560 nonprofit organization that educates people about the oil and gas industry. 0:08:45.960 --> 0:08:47.680 Spill is a little bit different than some of the 0:08:47.679 --> 0:08:50.480 past pipeline spills because it involves a body of water, 0:08:51.120 --> 0:08:53.800 and so it's not real certain how the e p 0:08:53.920 --> 0:08:55.920 A Is going to respond to that. They have to 0:08:56.280 --> 0:08:59.520 approve starting back up the pipeline, and so there's a 0:08:59.600 --> 0:09:02.160 remediing Asian process that takes place to clean up all 0:09:02.160 --> 0:09:06.040 the oil to analyze the pipeline. Industry insiders believe the 0:09:06.040 --> 0:09:09.280 pipe will be up and running around December twentie. NASA's 0:09:09.280 --> 0:09:12.320 Orion spacecraft splashed down in the Pacific Ocean off the 0:09:12.360 --> 0:09:15.560 coast of Mexico yesterday, bringing a successful and to a 0:09:15.640 --> 0:09:18.920 twenty five day test flight that sent the uncrewed vehicle 0:09:18.960 --> 0:09:21.720 around the Moon and back to Earth. Artimist one helps 0:09:21.760 --> 0:09:24.640 pave the way for NASA's program to return humans to 0:09:24.679 --> 0:09:27.720 the surface of the Moon. Global News twenty four hours 0:09:27.720 --> 0:09:30.520 a day on airand on Bloomberg Quick Take, powered by 0:09:30.600 --> 0:09:33.679 more than twenty d journalists and analysts in more than 0:09:33.679 --> 0:09:37.160 one hundred twenty countries. I'm Amy Morris. This is Bloomberg, 0:09:37.240 --> 0:09:44.320 Nathan Okay, Amy, thank you. Grown up to five ten 0:09:44.400 --> 0:09:46.640 on Wall Street time for the Bloomberg Sports Update, brought 0:09:46.640 --> 0:09:48.720 to you by Trice State OUTI. Good morning, John Stowns, 0:09:49.000 --> 0:09:50.920 Good morning Nathan. Everyone knew it was going to be 0:09:50.960 --> 0:09:52.920 a tough Sunday for the Jets and Giants, and sure 0:09:53.000 --> 0:09:55.640 enough both teams lost. Jets were in it in Buffalo. 0:09:55.760 --> 0:09:58.240 Defense again played well, but for the second straight week, 0:09:58.280 --> 0:10:01.319 the offense pouced only one touchdown the Bills one twenty 0:10:01.360 --> 0:10:04.679 to twelve. Mike White in defeat seven of forty four. 0:10:04.800 --> 0:10:07.720 He took a beating twice said to leave after the game. 0:10:07.800 --> 0:10:10.320 White went to the hospital for for crostionary measures with 0:10:10.360 --> 0:10:13.800 injured ribs. Jet bright Spot was rookie running Backsnovan ninety 0:10:13.840 --> 0:10:16.800 games seventy one yard scored the Jets only touchdown as 0:10:16.880 --> 0:10:20.280 for the Giants never ended at MetLife Philadelphia, with touchdowns 0:10:20.320 --> 0:10:23.240 on the first three possessions and a Giant's illegal punt 0:10:23.320 --> 0:10:26.160 didn't help things. Final was forty eight to twenty two, 0:10:26.280 --> 0:10:28.120 most points the Eagles have scored in a road game 0:10:28.160 --> 0:10:31.120 against the Giants since nineteen seventy one. Philly now in 0:10:31.280 --> 0:10:34.199 NFL best twelve and one, six and oh on the road, 0:10:34.240 --> 0:10:37.679 while Brian Dabele's Giants winless in their last four games. 0:10:39.800 --> 0:10:42.640 You're winning, it's five. When you're losing this humbling. Um 0:10:43.040 --> 0:10:45.240 lose like this, you own it it. Don't make any excuses. 0:10:45.240 --> 0:10:48.160 They played well. Um, when we get to you know, 0:10:48.600 --> 0:10:50.920 have an opportunity to get ready and and play a 0:10:50.960 --> 0:10:53.719 big game on Sunday night. Yeah, that's a game in Washington. 0:10:53.840 --> 0:10:58.040 Those two teams are tied, vying with Seattle for two 0:10:58.120 --> 0:11:01.560 wild card spots, getting some help yesterday when Seattle lost 0:11:01.640 --> 0:11:05.200 at home to Carolina. Next day, Hot their fourth win 0:11:05.240 --> 0:11:07.320 in a row. They've played great defense and all four 0:11:07.400 --> 0:11:09.520 at the Garden they beat. Sacramento is a good team 0:11:09.600 --> 0:11:12.400 this year. One nine nine R J Barrett, Julius Randall 0:11:12.440 --> 0:11:15.120 both with twenty seven points, all of those for Randall 0:11:15.200 --> 0:11:17.400 coming the first half. He got ejected in the second half, 0:11:17.440 --> 0:11:20.000 picking up a couple of technicals. Low scoring Battle of 0:11:20.040 --> 0:11:23.360 New Jersey seating All forty five Rutgers forty three. No 0:11:23.440 --> 0:11:25.600 one either team scored more than ten points. Both teams 0:11:25.600 --> 0:11:28.080 are six and four. Paul Silas has passed away at 0:11:28.080 --> 0:11:30.679 the age of seventy nine. Played sixteen NBA seasons, won 0:11:30.920 --> 0:11:33.520 two championships in Boston. Was later a long time NBA 0:11:33.640 --> 0:11:37.040 coach John stash Were Bloomberg Sports Nathan all Right, John, 0:11:37.080 --> 0:11:39.320 thank you. Bloomberg Sports is brought to you. Buy OUTI 0:11:39.400 --> 0:11:41.480 don't let someone else drive off in the Outye model 0:11:41.559 --> 0:11:44.560 you've always wanted. Visit your local Tri state autie dealer 0:11:44.880 --> 0:11:46.960 to get behind the wheel of yours today, or visit 0:11:47.000 --> 0:11:50.920 outie Offers dot com for more information, s andp futures 0:11:51.000 --> 0:11:53.520 right now up seven points down, futures up forty eight 0:11:53.600 --> 0:11:56.160 and nastac futures are hired by twenty six points. The 0:11:56.240 --> 0:11:59.040 tenure treasury up eleven thirty seconds yield three point five 0:11:59.120 --> 0:12:03.439 three percent. It's five twelve on Wall Street. This is 0:12:03.600 --> 0:12:07.160 Bloomberg Daybreak. At the start of a very busy week 0:12:07.240 --> 0:12:11.200 for investors and for central banks. We are joined live 0:12:11.320 --> 0:12:14.440 this morning by Lori Calvacina, the head of US equity 0:12:14.480 --> 0:12:18.520 strategy at RBC Capital Markets. Lori, it's great to speak 0:12:18.559 --> 0:12:21.880 with you this morning ahead of a very busy week 0:12:22.040 --> 0:12:24.599 for central banks. You've got the FED on Wednesday and 0:12:24.600 --> 0:12:28.160 then a bunch of other decisions on Thursday. What kind 0:12:28.240 --> 0:12:31.920 of market reaction are you expecting from what we could 0:12:32.000 --> 0:12:35.000 see from the central bankers this week? All right, well, 0:12:35.040 --> 0:12:37.199 thanks for having me as always naked. Um. Look, I 0:12:37.280 --> 0:12:38.760 think you know, the sort of the decision by the 0:12:38.800 --> 0:12:41.000 FED is pretty well understood at this point, but I 0:12:41.120 --> 0:12:44.240 think there's always equity investors are a tune to what 0:12:44.400 --> 0:12:47.640 the commentary is and sort of the color on where 0:12:47.720 --> 0:12:50.599 things are going forward. And as I talked to investors, 0:12:51.080 --> 0:12:53.439 you know, I really do sense that they would like 0:12:53.520 --> 0:12:55.319 to be talking about something other than the FED in 0:12:56.120 --> 0:12:58.600 three so they would like to know I really kind 0:12:58.640 --> 0:13:00.720 of you know that we're we're still silt set on set, 0:13:01.040 --> 0:13:04.480 closer to the end than the beginning of this hiking cycle. Um. 0:13:04.559 --> 0:13:07.200 I think if you get anything less, any advocation otherwise, 0:13:07.280 --> 0:13:08.960 I think that we are going to see rocky markets, 0:13:09.000 --> 0:13:11.040 and I do worry that, you know, we we do 0:13:11.160 --> 0:13:13.959 see a federal reserve that doesn't like having seen equity 0:13:14.000 --> 0:13:16.040 markets recovered as much as they have, and so there's 0:13:16.080 --> 0:13:17.880 always the risk in my mind that the FED could 0:13:17.880 --> 0:13:19.800 try to talk things down a bit. Well, a lot 0:13:19.840 --> 0:13:21.400 of the talk we've been hearing from the FED up 0:13:21.440 --> 0:13:23.040 two now is that rates are going to have to 0:13:23.120 --> 0:13:26.040 stay higher for longer. Do you think the market has 0:13:26.120 --> 0:13:30.040 gotten that message. I think the market has gotten that message, 0:13:30.080 --> 0:13:32.320 but it is still a debate of exactly how high 0:13:32.400 --> 0:13:35.240 and exactly how long. Um So I think, you know, 0:13:35.320 --> 0:13:38.240 there is still some uncertainty in investors mind at exactly 0:13:38.320 --> 0:13:39.800 what the right level is. And I'll just give you 0:13:39.840 --> 0:13:41.840 a good, you know, good example, and this is more 0:13:41.880 --> 0:13:43.559 on inflation than rates. But I was not talking to 0:13:43.640 --> 0:13:46.439 investors in Europe last week, and I found generally that 0:13:46.520 --> 0:13:48.719 most people are thinking of an inflation rate that's stay 0:13:48.840 --> 0:13:51.760 sticky in the US and around four percent, which seems 0:13:51.800 --> 0:13:53.640 a bit higher than what I've heard from talking to 0:13:53.800 --> 0:13:55.960 US based investors. So I do think there is still 0:13:56.040 --> 0:13:58.199 some room for debate and room for the market to 0:13:58.280 --> 0:14:00.439 really try to figure out some of those issues in 0:14:00.559 --> 0:14:03.360 terms of specific levels going forward. So that is interesting 0:14:03.440 --> 0:14:06.640 because we did get the commentary just last night broadcast 0:14:06.720 --> 0:14:10.000 on sixty minutes from Treasury Secretary Janet Yelling with her 0:14:10.120 --> 0:14:14.400 expectation that inflation could drop pretty significantly by the end 0:14:14.440 --> 0:14:17.319 of next year. What's it gonna take for that to 0:14:17.720 --> 0:14:21.520 filter into this market? You know, I think that that 0:14:21.720 --> 0:14:24.280 is something that equity markets would very much like to see. 0:14:24.400 --> 0:14:26.480 And I think that, you know, I I sort of 0:14:26.520 --> 0:14:28.400 told the investors I spoke with last week. I've talked 0:14:28.440 --> 0:14:30.320 to plenty of investors in the US have been doing 0:14:30.360 --> 0:14:32.720 the work on different inputs of inflation, different things that 0:14:32.760 --> 0:14:36.320 are associated with inflation, different leading indicators of inflation, trying 0:14:36.360 --> 0:14:38.360 to make the taste that things have been peaking and 0:14:38.480 --> 0:14:41.120 that things are set to moderate. Um. So again, I 0:14:41.200 --> 0:14:43.040 think it's it's starting to get there. But I think 0:14:43.080 --> 0:14:45.160 it really is just a question of getting into the 0:14:45.240 --> 0:14:48.280 new year and really seeing that said rhetorics start to 0:14:48.360 --> 0:14:50.440 shift in a more significant way. Of course, we're going 0:14:50.480 --> 0:14:53.040 to get one last read on inflation tomorrow and the 0:14:53.120 --> 0:14:56.400 consumer price index before the FED decision. You're expecting any 0:14:56.680 --> 0:15:00.280 market volatility off the back of the CPI print. I 0:15:00.360 --> 0:15:04.320 think unfortunately. UM, there's always some market volatility, either heading 0:15:04.440 --> 0:15:06.840 in or coming after. And I will tell you, Nathan, 0:15:06.880 --> 0:15:08.200 I think that we're just at a time in the 0:15:08.320 --> 0:15:11.320 year when nerves are really thin, people are a little 0:15:11.360 --> 0:15:14.200 bit on edge, and there's tremendous amount concerned about the 0:15:14.240 --> 0:15:17.200 outlook for three. So in general, when I'm looking at 0:15:17.280 --> 0:15:19.440 kind of these bigger, you know, sort of news events, 0:15:19.480 --> 0:15:21.520 I'm looking at them, you know, it's more of potential 0:15:21.600 --> 0:15:24.880 sources of reasons for investors to take profits and things 0:15:24.920 --> 0:15:28.640 to sell off. In terms of twenty three, you mentioned 0:15:28.680 --> 0:15:31.640 earlier that markets would like to be speaking about anything 0:15:31.800 --> 0:15:34.800 other than the FED in three. What are you looking 0:15:34.880 --> 0:15:38.640 at in terms of other catalysts that they could move 0:15:38.720 --> 0:15:43.200 markets and affect your outlook into the next year. Well, 0:15:43.320 --> 0:15:45.120 you know what was really interesting May than last week 0:15:45.160 --> 0:15:47.400 I heard a lot about recent dollar weakness, and again 0:15:47.520 --> 0:15:50.360 I was talking about for the European based investors UM, 0:15:50.600 --> 0:15:52.720 and then I was also hearing you know, a fair 0:15:52.760 --> 0:15:56.000 amount about China reopening that story UM, and also just 0:15:56.160 --> 0:15:58.640 the idea that Europe has been out performing the US. 0:15:59.200 --> 0:16:01.360 So I think those are potentially you know, sort of 0:16:01.440 --> 0:16:04.600 new themes that investors could continue to gravitate towards next year. 0:16:04.640 --> 0:16:05.880 But I have to tell you, if you think about 0:16:05.920 --> 0:16:09.760 the US versus Europe, the US still looks extremely expensive. UM. 0:16:09.840 --> 0:16:12.320 So we're basically looking for a flat market next year. 0:16:12.400 --> 0:16:16.200 And I view that issue of expensive US valuations versus 0:16:16.240 --> 0:16:19.640 Europe is just another overhang at headwinds that you excualies 0:16:19.680 --> 0:16:22.120 have to contend with. What are you looking for in 0:16:22.320 --> 0:16:25.080 terms of earnings for next year? We got a couple 0:16:25.160 --> 0:16:29.800 of notes just overnight, UH with the idea that earnings 0:16:29.880 --> 0:16:32.880 revisions may need to come down even further next year. 0:16:32.960 --> 0:16:37.080 Could that be a potential headwind for stocks? I think so. 0:16:37.280 --> 0:16:39.360 I think it is a complicated matter. We are at 0:16:39.440 --> 0:16:42.400 one which is well below the bottom up insensus, which 0:16:42.400 --> 0:16:44.520 has still been tracking up round two thirty to thirty 0:16:44.560 --> 0:16:47.400 one UM, and we have seen some strategists are down 0:16:47.440 --> 0:16:50.880 in our neighborhood. Others are looking for more flattish type earnings. UM. 0:16:51.000 --> 0:16:53.640 I do think that that is a headwind simply because 0:16:54.240 --> 0:16:57.760 it creates volatility and individual stocks investors need certainty on 0:16:57.880 --> 0:17:01.360 multiples before they're comfortable coming into By that being said, 0:17:01.400 --> 0:17:04.400 we do typically see that most cuts and percentage terms 0:17:04.440 --> 0:17:07.600 are completed by April in most years of earning downgrades. 0:17:07.600 --> 0:17:09.520 And additionally, if you look at the rate of revisions 0:17:09.560 --> 0:17:11.920 to the upside, we typically see that the SMP five 0:17:12.000 --> 0:17:16.160 hundred bottoms three to six months before estimates on individual 0:17:16.240 --> 0:17:19.520 companies stopped going down. So I think it's something that 0:17:19.600 --> 0:17:22.040 adds to volatility that need to reduce forecast. But I 0:17:22.160 --> 0:17:24.399 don't think it necessarily tells us we have to make 0:17:24.440 --> 0:17:25.960 a new low in the first half of the year. 0:17:26.400 --> 0:17:29.400 I want to get more on what's affecting your outlook 0:17:29.520 --> 0:17:31.680 for the next year. Of course, it's something that a 0:17:31.760 --> 0:17:34.960 lot of analysts are talking about the expectation for what 0:17:35.160 --> 0:17:38.720 investments could do in three So we're going to continue 0:17:38.800 --> 0:17:42.560 this conversation with Lori Calvacina, the Ahead of US Equity 0:17:42.600 --> 0:17:46.119 strategy at RBC Capital Markets, in just the next few minutes. 0:17:46.160 --> 0:17:48.600 So stay with us here on Bloomberg day Break. Right now, 0:17:48.800 --> 0:17:51.879 SMP futures are higher by seven points, down futures of 0:17:52.000 --> 0:17:55.600 forty Nasdaq futures on the rise by twenty six points 0:17:55.680 --> 0:18:02.320 this morning, and you're listening to Bloomberg day Break, markets 0:18:02.440 --> 0:18:05.480 headlines and breaking news twenty four hours a day at 0:18:05.560 --> 0:18:09.520 Bloomberg dot Com. The Bloomberg business outland at Bloomberg quick tape. 0:18:09.720 --> 0:18:18.719 This is a Bloomberg business lash and I'm Karen Moscow 0:18:18.800 --> 0:18:21.440 and US DOT index futures are higher this morning. The 0:18:21.520 --> 0:18:23.600 dollar are racing in advance at the start of a 0:18:23.720 --> 0:18:27.320 pivotal week for monetary policy decisions from the Federal Reserve, 0:18:27.400 --> 0:18:30.320 European Central Bank and a host of their peers. We 0:18:30.440 --> 0:18:33.080 checked the markets all day long on Bloomberg radios and 0:18:33.119 --> 0:18:35.920 P futures up about seven points of almost two tens 0:18:35.960 --> 0:18:38.760 of upper Cental futures up forty two points or a 0:18:38.800 --> 0:18:41.320 tenth of upper cent, and nasday futures of twenty three 0:18:41.359 --> 0:18:43.920 points or two tenths of upper cent. The decks in 0:18:44.000 --> 0:18:46.520 Germany's down the most, two tenths of uppercent. Ten year 0:18:46.560 --> 0:18:48.840 treasury up twelve thirty seconds. You have three point five 0:18:48.880 --> 0:18:51.080 three percent, and they yield on the two year four 0:18:51.160 --> 0:18:54.040 point three two percent. Nine next, Screwed oil is down 0:18:54.080 --> 0:18:56.320 six tenths per cent or forty cents, and seventy dollars 0:18:56.359 --> 0:18:58.560 sixty two cents of arrol coll Max School there is 0:18:58.600 --> 0:19:00.639 down four tenths per cent or seven oll There's fifty 0:19:00.680 --> 0:19:03.760 cents and eighteen o three thirty announced the euro one 0:19:03.840 --> 0:19:06.359 point oh five five nine against the dollar. British found 0:19:06.400 --> 0:19:08.840 one point two two seven too. He had one thirty 0:19:08.920 --> 0:19:11.960 six point seven zero and bitcoins down a tensive a 0:19:12.080 --> 0:19:15.359 percent at about sixteen thousand, nine hundred dollars. And that's 0:19:15.400 --> 0:19:18.240 a Bloomberg business flash. Now here's Amy Morris with Moore 0:19:18.320 --> 0:19:20.560 on what's going on around the world. Any good morning, 0:19:20.880 --> 0:19:22.840 all right, thank you, Karen. Good morning to you. Some 0:19:22.960 --> 0:19:25.160 other news you'll need from around the world. O Libyan 0:19:25.200 --> 0:19:28.840 man suspected in the ninety eight bombing a fan amp 0:19:28.960 --> 0:19:31.800 like one oh three over Scotland is now in US custody. 0:19:32.119 --> 0:19:35.919 A Department of Justice spokesperson says the alleged operative expected 0:19:35.960 --> 0:19:38.200 to make an initial appearance in the U. S District 0:19:38.240 --> 0:19:41.080 Court for the District of Columbia. The operator of the 0:19:41.200 --> 0:19:45.160 Keystone Pipeline system says they've finally gotten that breach under 0:19:45.240 --> 0:19:48.480 control for now after spilling more than five d eighty 0:19:48.520 --> 0:19:52.480 eight thousand gallons of crude into Mill Creek in Kansas. 0:19:52.760 --> 0:19:55.639 And sports, the NFL Bills beat the Jets, Ravens and 0:19:55.720 --> 0:19:58.280 forty Niners win, and in hockey the Caps and Bruins 0:19:58.359 --> 0:20:00.719 both win. Global news to win four hours a Day 0:20:00.760 --> 0:20:03.320 on errand on Bloomberg Quick Take, powered by more than 0:20:03.359 --> 0:20:05.879 twenty seven hundred journalists and analysts in more than one 0:20:05.960 --> 0:20:10.200 hundred twenty countries. I'm anymore is this is Bloomberg Nathan okay, Amy, 0:20:10.280 --> 0:20:11.960 thank you for coming up to five twenty four on 0:20:12.040 --> 0:20:15.399 Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak, and 0:20:15.440 --> 0:20:18.480 Lorie Calvacina is back with us as promised head of 0:20:18.560 --> 0:20:22.560 US Equity Strategy at RBC Capital Markets. Laurie, I want 0:20:22.600 --> 0:20:26.399 to get more on your view into three. We did 0:20:26.480 --> 0:20:29.520 a survey here Bloomberg News just a few days ago 0:20:29.840 --> 0:20:34.159 on the outlook, and seventy one percent of respondents you 0:20:34.200 --> 0:20:38.360 got back to us said they see stocks rising in three, 0:20:38.520 --> 0:20:41.879 the average around ten percent. They're thinking most of that 0:20:42.000 --> 0:20:45.080 gain is going to happen in the second half. Is 0:20:45.200 --> 0:20:48.960 that of you? You share? Hi? So, so listen. I 0:20:49.000 --> 0:20:52.000 think it's a fantastic question. I think your survey respondents 0:20:52.000 --> 0:20:54.040 are probably a little bit more optimistic from the south 0:20:54.080 --> 0:20:56.879 side strategy community. I've been one of the more constructive 0:20:56.960 --> 0:21:00.359 ones on the next one. Outlooks with her aready one 0:21:00.400 --> 0:21:02.399 hundred target, which at the time we priced it was 0:21:02.480 --> 0:21:04.560 about a three percent game, so that was against late 0:21:04.640 --> 0:21:07.960 November levels. But I will say the sort of view 0:21:08.160 --> 0:21:09.920 that markets are going to have a rocky start to 0:21:10.000 --> 0:21:11.680 the year and do better in the second half of 0:21:11.720 --> 0:21:13.720 the year, that is a view I share, um But 0:21:13.840 --> 0:21:16.000 one risk to that view is, frankly, that that is 0:21:16.040 --> 0:21:19.120 also a pretty consensus view, not just among your survey respondents, 0:21:19.160 --> 0:21:22.200 but among the south side strategy community right now. Um. So, 0:21:22.240 --> 0:21:23.840 I think we have to see how much of this 0:21:23.960 --> 0:21:26.639 gets priced in in December. That's always something that happens 0:21:26.920 --> 0:21:28.600 when we roll over into in the year, and of 0:21:28.680 --> 0:21:30.320 course we have to see what the new stories are 0:21:30.440 --> 0:21:31.959 for the next year. But I do think we've got, 0:21:32.359 --> 0:21:34.920 you know, some issues to work through. Ultimately, I do 0:21:35.000 --> 0:21:36.960 think markets will be on stronger footing at the end 0:21:37.000 --> 0:21:38.119 of the year, but we've got a little bit of 0:21:38.119 --> 0:21:39.920 work to do to get there. I guess some of 0:21:40.000 --> 0:21:42.000 the issues I can think of to work through would 0:21:42.040 --> 0:21:44.800 include the war in Ukraine and how the reopening in 0:21:45.040 --> 0:21:47.120 China is going to work out. What are some other 0:21:47.520 --> 0:21:51.160 potential head wins. Do you see those as major headwinds 0:21:51.240 --> 0:21:54.280 for this market? You know, I do see a Russia 0:21:54.359 --> 0:21:56.760 Ukraine is a major overhanging you know, I think I'm 0:21:56.800 --> 0:21:59.480 still digesting what's going on in China in terms of 0:21:59.520 --> 0:22:03.440 how that that impacts US equity markets. But the reality 0:22:03.560 --> 0:22:05.760 is that if you put those political issues aside, we've 0:22:05.800 --> 0:22:07.680 got plenty of other issues. Um. I think you know, 0:22:07.720 --> 0:22:10.159 as I mentioned in the last segment, the US doesn't 0:22:10.240 --> 0:22:13.880 look cheap right now, um, not just versus European equities, 0:22:13.920 --> 0:22:15.879 but also we don't really look that appealing in the 0:22:15.960 --> 0:22:18.560 US equity market relative to bonds. And I will say 0:22:18.600 --> 0:22:20.840 that is something you know that just about any sort 0:22:20.880 --> 0:22:23.800 of crocess that indicator that I can run, I simply 0:22:23.840 --> 0:22:25.920 don't see a compelling case through US equities at this 0:22:26.040 --> 0:22:28.040 moment in time. And we've seen that in the past 0:22:28.160 --> 0:22:32.119 that has impacted money clothed into the respect about st classes. Um. 0:22:32.160 --> 0:22:33.879 So I think that's one big issue we've got. I 0:22:33.960 --> 0:22:37.080 think another issue, you know, sort of related to earnings. 0:22:37.119 --> 0:22:39.160 But I think just the onsete of a more challenging 0:22:39.200 --> 0:22:42.639 economy is something that equity investors are going to have 0:22:42.800 --> 0:22:45.639 difficulty dealing with. Because we have been talking about the 0:22:45.720 --> 0:22:49.119 idea of consumer and corporate resilience for so long. I 0:22:49.200 --> 0:22:51.720 think that's going to engender discussions about whether or not. 0:22:51.840 --> 0:22:54.399 We're on the precess of a deeper, longer, more lasting, 0:22:55.240 --> 0:22:59.159 durable type recession. And I'll just give you one sat Nathan. Historically, 0:22:59.280 --> 0:23:01.920 when you're in at you know, sort of GDP environments 0:23:02.000 --> 0:23:05.200 or zero to two percent in real terms on average 0:23:05.359 --> 0:23:08.040 and on a medium basis, the pop market is flat. 0:23:08.160 --> 0:23:12.000 So markets don't like that sort of very sluggish type 0:23:12.040 --> 0:23:14.439 growth environment that's anticipated right now if you look at 0:23:14.480 --> 0:23:17.360 consensus forecasts. No, it is going to be very interesting 0:23:17.480 --> 0:23:20.280 to see how the federal reserve outlook for next year 0:23:20.920 --> 0:23:25.080 plays into what sell side and buy side strategists are thinking. 0:23:25.119 --> 0:23:29.159 When it comes to Lori Calvacina as always great to 0:23:29.200 --> 0:23:32.119 get your thoughts, Thanks again for being with us. Lori Calvacina, 0:23:32.240 --> 0:23:37.320 head of US Equity Strategy at RBC Capital Markets. Right now, 0:23:37.800 --> 0:23:41.040 SMP futures are up six points, down futures up forty five, 0:23:41.200 --> 0:23:44.320 and NASTAC futures are higher by twenty one points. The 0:23:44.440 --> 0:23:48.760 tenure Treasury is up thirteen thirty seconds the three point 0:23:48.840 --> 0:23:51.520 five three percent Ahead of this week's FED decision and 0:23:51.920 --> 0:23:55.040 the inflation data. We'll get this morning's top stories and 0:23:55.119 --> 0:23:58.960 local headlines straight ahead. First, a look at today's Bloomberg 0:23:59.040 --> 0:24:01.880 Weather Forecast. Watch out for some slippery spots this morning, 0:24:01.920 --> 0:24:03.840 well north and west of the city. It looks like 0:24:04.000 --> 0:24:06.320 drier weather's headed our way and cloudiness will be giving 0:24:06.359 --> 0:24:08.760 way to sunshine. We'll climb up to about forty today, 0:24:09.160 --> 0:24:12.320 clear skies Tonight the thirty downtown will be in the teens. 0:24:12.320 --> 0:24:15.400 In the suburbs, sunshine Tomorrow, We're close to forty, clear 0:24:15.440 --> 0:24:18.320 skies the thirty tomorrow night. High pressure will keep it 0:24:18.359 --> 0:24:21.760 sunny through Wednesday, with heights around forty. I'm Rob Caroline 0:24:21.800 --> 0:24:24.320 with your three day forecast on Bloomberg eleven three oh 0:24:27.440 --> 0:24:31.960 broadcasting live from the Bloomberg Interactive Broker Studio in New York, 0:24:32.119 --> 0:24:36.719 Bloomberg Elving Free to Washington, d C. Bloomberg nine to Boston, 0:24:36.880 --> 0:24:40.240 Bloomberg one O six one to San Francisco, Bloomberg nine 0:24:40.359 --> 0:24:43.160 six to the country, Sirius XM to A one nine 0:24:43.200 --> 0:24:46.080 te and around the globe, the Bloomberg Business apt and 0:24:46.200 --> 0:24:56.000 Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's live 0:24:56.080 --> 0:24:58.320 twenty eight on Wall Street. Good morning on Nathan Hagar 0:24:58.600 --> 0:25:00.840 and I'm Karen Moscow and We're are just about four 0:25:00.920 --> 0:25:03.520 hours away from the open of US trading. Let's get 0:25:03.560 --> 0:25:04.760 you up to date on the news you need to 0:25:04.800 --> 0:25:07.600 know at this hour. US futures are higher this morning 0:25:07.640 --> 0:25:10.800 as we enter a big week for central banks. The Fed, 0:25:10.960 --> 0:25:13.159 ECB and Bank of England are is set to make 0:25:13.240 --> 0:25:16.240 policy decisions Wednesday and Thursday, and when it comes to 0:25:16.280 --> 0:25:18.639 the Fed, the Central Bank could be poised to shift 0:25:18.760 --> 0:25:21.359 gears at least a little. And Bloomberg's Minny Deal Judais 0:25:21.400 --> 0:25:23.840 has more. The Fed has been tightening in a big way, 0:25:23.920 --> 0:25:27.159 winding up the last four meetings with jumbo seventy basis 0:25:27.240 --> 0:25:31.200 point rate hikes to fight inflation. Higher rates risk of recession, though, 0:25:31.480 --> 0:25:34.560 and economists see the Fed opting for smaller half point hikes, 0:25:34.840 --> 0:25:37.560 mindful that efforts to steer the US economy could drive 0:25:37.600 --> 0:25:39.800 it off the road. There's room for the Fed to 0:25:39.880 --> 0:25:43.440 keep tightening. Data Friday showed November's producer price and BIXS 0:25:43.480 --> 0:25:47.359 top forecast. Moreover, Wall Street anticipates this week's date on 0:25:47.560 --> 0:25:50.560 US consumer prices will show no significant let up. An 0:25:50.560 --> 0:25:53.040 eat del Judais, Bloomberg day break, all right, Vinny, thank you, 0:25:53.119 --> 0:25:55.200 And the Treasury is weighing in on the inflation fight. 0:25:55.320 --> 0:25:58.439 Secretary Janet Yellen is cautiously optimistic that the Fed can 0:25:58.520 --> 0:26:01.199 win its battle against HIE. Prior says, I believed by 0:26:01.280 --> 0:26:03.480 the end of next year, you will see which lower 0:26:03.560 --> 0:26:09.679 inflation if there's not an anticipated shock. Treasury Secretary Janet 0:26:09.720 --> 0:26:13.320 Yell until sixty minutes on CBS that she's seen positive signs, 0:26:13.400 --> 0:26:16.960 including lower shipping costs and reduced lag times for deliveries. 0:26:17.280 --> 0:26:20.320 Our listeners in Washington can hear sixty minutes Sunday nights 0:26:20.359 --> 0:26:24.000 at ten on Bloomberg Well and Deal News. This morning, 0:26:24.119 --> 0:26:26.439 Nathan am Jen is on the verge of making its 0:26:26.560 --> 0:26:29.200 biggest deal ever. Let's get the latest live at the 0:26:29.200 --> 0:26:32.560 Bloomberg Steve rapp Aboard, Good morning, Steve, Good morning, Karen, 0:26:32.640 --> 0:26:35.640 and Nathan m Jen has reportedly agreed to buy Horizon 0:26:35.720 --> 0:26:39.200 Therapeutics at evaluation of twenty six billion dollars. Assuming the 0:26:39.280 --> 0:26:42.640 deal goes through, sources tell Bloomberg Nurse negotiations could still 0:26:42.720 --> 0:26:46.000 fall apart. The biotech giant offered about one hundred sixteen 0:26:46.040 --> 0:26:48.960 dollars for each year of Horizon, roughly twenty bucks higher 0:26:48.960 --> 0:26:52.040 than the stocks closing price on Friday. Horizon chairs continue 0:26:52.080 --> 0:26:54.399 to climb this morning in pre market trading now up 0:26:54.480 --> 0:26:58.320 thirteen percent. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. 0:26:58.400 --> 0:27:00.159 All right, Steve, thanks for that. And we also have 0:27:00.240 --> 0:27:03.840 an acquisition this morning involving Microsoft, that companies agreed to 0:27:03.920 --> 0:27:07.240 purchase a stake in the London Stock Exchange Group. The 0:27:07.320 --> 0:27:10.480 deal gives Microsoft a four percent equity holding as part 0:27:10.520 --> 0:27:13.760 of a new long term strategic partnership between the firms 0:27:14.240 --> 0:27:16.960 and G and GEO Political news here Nathan, the US 0:27:17.040 --> 0:27:19.600 will send a delegation to Shine on the coming days. 0:27:19.720 --> 0:27:22.399 The move follows up on President Biden's meeting with Chinese 0:27:22.480 --> 0:27:25.760 President Chi Jin Ping last month. At the G twenty 0:27:26.000 --> 0:27:27.960 futures this morning are in the rise s and P 0:27:28.160 --> 0:27:30.960 futures up seven points, up about two tenths of upper 0:27:31.000 --> 0:27:33.720 sent DAL future is a forty seven or a tenth 0:27:33.800 --> 0:27:36.200 of upper cent, and nasday future is of twenty five 0:27:36.320 --> 0:27:39.000 or two tenths of upper cent. Ten. Your treasury up 0:27:39.000 --> 0:27:41.439 twelve thirty seconds. You know, three point five three percent 0:27:41.760 --> 0:27:44.440 they yield on the two year four point three two percent. 0:27:44.880 --> 0:27:47.200 Nine x Screwed oil is falling down six tents of 0:27:47.280 --> 0:27:49.960 upper cent or forty one cents at seventy sixty one 0:27:50.080 --> 0:27:52.480 cents a barrel and comax s goold is down about 0:27:52.520 --> 0:27:56.080 half percent. Straight to hand your latest local headlines plus 0:27:56.240 --> 0:28:04.200 a check of sports, and this is Bloomberg. All right, Karen, 0:28:04.280 --> 0:28:06.560 thank you. It is five thirty one on Wall Street, 0:28:06.640 --> 0:28:08.520 and Amy Morris is here with a look at what's 0:28:08.520 --> 0:28:10.800 going on in New York and around the world. Amy, 0:28:11.640 --> 0:28:15.000 thank you. Nathan, President Biden and Treasury Secretary Janet Yellen. 0:28:15.040 --> 0:28:19.040 Affirming US support for Ukraine, Yellin tells CBS is sixty minutes. 0:28:19.080 --> 0:28:22.240 American support will continue, quote as long as it takes 0:28:22.960 --> 0:28:26.000 thing we can to bring this war to a conclusion. 0:28:26.680 --> 0:28:32.840 Of course, we're providing considerable help um to Ukraine, both 0:28:32.960 --> 0:28:37.159 military and economic. USS promised thirty eight billion dollars in 0:28:37.200 --> 0:28:40.280 military aid and delivered thirteen billion dollars in direct aid 0:28:40.320 --> 0:28:43.280 to Ukraine. Already, New York officials a broken ground on 0:28:43.360 --> 0:28:46.000 a new Metro North line. Some are making way for 0:28:46.160 --> 0:28:49.880 other projects. After announcing Penn Station Access will provide direct 0:28:49.920 --> 0:28:53.120 train service from the Bronx to Manhattan's West Side, Senator 0:28:53.200 --> 0:28:56.000 Chuck Schumer says he's still fighting to fund other major 0:28:56.120 --> 0:28:59.880 infrastructure initiatives. New York is building the next generation of 0:29:00.040 --> 0:29:02.960 our public transit system that is going to help keep 0:29:03.000 --> 0:29:05.400 our city growing and includes the second phase of the 0:29:05.480 --> 0:29:08.280 Second Avenue subway line to extend into Harlem and the 0:29:08.320 --> 0:29:12.160 Gateway Project, which connects underground rail tunnels between New York 0:29:12.240 --> 0:29:16.800 and New Jersey. New Haven's first adult used recreational marijuana 0:29:16.880 --> 0:29:21.120 store is scheduled to open January. Affinity Health and Wellness 0:29:21.200 --> 0:29:24.920 already operates a medicinal marijuana shop in Amity. The vast 0:29:25.160 --> 0:29:28.880 majority of customers are expected to pre order marijuana products 0:29:29.120 --> 0:29:31.520 then pick up the orders as they would at a pharmacy. 0:29:32.080 --> 0:29:35.640 Members of the Marine Mammal Stranding Center yesterday buried the 0:29:35.760 --> 0:29:39.240 carcass of a thirty foot humpback whale that washed ashore 0:29:39.320 --> 0:29:41.640 on a New Jersey beach over the weekend. Because of 0:29:41.720 --> 0:29:44.160 the state of decomposition, they were not able to determine 0:29:44.200 --> 0:29:46.120 the cause of death. It was believed to have been 0:29:46.680 --> 0:29:50.000 younger than ten years old. Global News twenty four hours 0:29:50.040 --> 0:29:52.520 a day on air and on Bloomberg quick Take, powered 0:29:52.560 --> 0:29:55.520 by more than twenty seven hundred journalists and analysts in 0:29:55.600 --> 0:29:58.640 more than one hundred twenty countries. I'm Amy Morris, This 0:29:58.920 --> 0:30:06.800 is Bloomberg. Nathan thanks Amy five thirty three on Wall 0:30:06.840 --> 0:30:08.840 Street time for the Bloomberg Sports up they brought to 0:30:08.880 --> 0:30:11.840 you by Trice State outa John Steen show. All right, Nathan, 0:30:11.880 --> 0:30:15.720 Jets and Giants pretty much same boat. Exceeded expectations much 0:30:15.760 --> 0:30:19.000 of this season, but both now stuck on seven wins 0:30:19.080 --> 0:30:20.720 and now very much in the battle for a wild 0:30:20.800 --> 0:30:22.880 card playoff spot. The Jets and Buffalo trying to beat 0:30:22.920 --> 0:30:25.480 the Bills for the second time. They won the stats, 0:30:25.560 --> 0:30:28.440 more first downs, more possession time, They gained eighty seven 0:30:28.480 --> 0:30:31.400 more yard but the Bills won twenty to twelve to 0:30:31.640 --> 0:30:35.440 costly second half fumbles. For Robert Sala's team, defensive are 0:30:35.440 --> 0:30:38.440 really nice job in both situations minimizing the damage, but 0:30:40.080 --> 0:30:44.320 two turnovers are always gonna bey. When you lose turnover battle, 0:30:44.320 --> 0:30:46.160 you're you're you're not giving yourself a chance to win 0:30:46.200 --> 0:30:48.320 of for Polon, Jets have now lost three to last four, 0:30:48.360 --> 0:30:50.360 all on the road. The next two games all right 0:30:50.360 --> 0:30:53.600 against Detroit and Jacksonville, and those teams are much improved. 0:30:53.640 --> 0:30:56.280 The Lions just beat the Vikings. Detroit's won five the 0:30:56.400 --> 0:30:59.280 last six. The Jaguars just beat Tennessee by two touchdowns. 0:30:59.560 --> 0:31:02.080 That John It's next Day next Sunday night in Washington. 0:31:02.160 --> 0:31:04.720 That game, although a long way in determining whether they 0:31:04.760 --> 0:31:07.000 make the flowoffs. The Giants winless in their last four 0:31:07.200 --> 0:31:10.880 crushed at MetLife by Legally in Philadelphia forty eight to 0:31:11.040 --> 0:31:14.880 twenty two. The Eagles scored six touchdowns kicked two field goals. 0:31:14.920 --> 0:31:17.880 Big days for Jalen Hurds and Miles Sanders. The Eagles 0:31:17.920 --> 0:31:20.320 are now twelve and one. The Cowboys are ten and three. 0:31:20.400 --> 0:31:23.479 They nearly lost in what would have been a massive upset, 0:31:23.520 --> 0:31:26.560 but Dallas scored late to beat Houston. Forty Niners stay 0:31:26.600 --> 0:31:29.440 Hot blowout went over Tampa Bay. Tom Brady beaten by 0:31:29.760 --> 0:31:32.880 Brock Purdy was making his first NFL start at the Garden. 0:31:33.240 --> 0:31:35.680 Next Day Hot one or fourth Row one twelve ninety 0:31:35.760 --> 0:31:39.040 nine over Sacramento. Rangers host The Devil's Tonight. John Stash 0:31:39.280 --> 0:31:41.960 or Bloomberg Sports Nathan, Thank you, John and Bloomberg Sports 0:31:42.000 --> 0:31:43.880 has brought to you by Autia. Don't let someone else 0:31:44.000 --> 0:31:46.600 drive off in the outy model you've always wanted. Visit 0:31:46.640 --> 0:31:48.960 your local Tri state autie dealer to get behind the 0:31:49.000 --> 0:31:51.760 wheel of yours today, or visit outi Offers dot com 0:31:52.160 --> 0:31:55.480 for more information. SMP futures right now up seven points down, 0:31:55.560 --> 0:31:58.120 futures hired by fifty two and NASDAC futures on the 0:31:58.200 --> 0:32:03.080 rise by twenty six points five on Wall Street time 0:32:03.120 --> 0:32:06.000 for the Tri State Business report with Bloomberg's ed Corey 0:32:06.520 --> 0:32:09.480 Barnberg is laid off about ten employees in New York, 0:32:09.800 --> 0:32:13.640 the German investment banks grappling with the quiet deals market 0:32:13.720 --> 0:32:16.920 these days. The staff work for Barrenberg's US unit, which 0:32:16.920 --> 0:32:20.200 employs about eighty five people. In an emailed statement, as 0:32:20.240 --> 0:32:23.560 spokesperson said most of them worked in support functions for 0:32:23.680 --> 0:32:26.960 the four hundred thirty year old firm. G City, in 0:32:27.120 --> 0:32:30.640 Israel based commercial real estate company has agreed to sell 0:32:30.720 --> 0:32:33.720 Bridge Tower of building on Manhattan's Upper east Side for 0:32:33.760 --> 0:32:36.280 about one hundred fifty three million dollars. It's part of 0:32:36.280 --> 0:32:39.520 the group's strategic plan to sell non core assets. The 0:32:39.560 --> 0:32:42.160 transaction price is similar to the value of the building 0:32:42.200 --> 0:32:45.480 in the company's books. Cannabis licensees will no longer be 0:32:45.640 --> 0:32:49.000 required to accept storefronts leased by the state, a move 0:32:49.080 --> 0:32:52.160 applicants who want more control over their retail locations will like. 0:32:52.400 --> 0:32:55.600 According to The Times, cannabis regulators have scrapped a rule 0:32:55.720 --> 0:32:59.280 requiring the state's first retail operators to accept storefronts as 0:32:59.320 --> 0:33:02.520 signed by the government. That your Bloomberg Dry State Business Report. 0:33:02.600 --> 0:33:05.000 I'm Ed Corey, alright, ed, thank you. It is five 0:33:05.120 --> 0:33:08.959 thirty six on Wall Street. The following commentary is from 0:33:09.040 --> 0:33:14.080 Bloomberg Opinion. How Republicans lost their House edge in mid terms. 0:33:14.440 --> 0:33:18.760 I'm Justin Fox, the columnist for Bloomberg Opinion. Republican candidates 0:33:18.840 --> 0:33:21.200 got about fifty one percent of the votes cast for 0:33:21.240 --> 0:33:23.920 the House of Representatives in November and ended up with 0:33:24.000 --> 0:33:27.200 about fifty one percent of House seats. Seems fair. No, 0:33:27.760 --> 0:33:30.120 this is not how things worked from two thousand ten 0:33:30.240 --> 0:33:34.160 through two thousand sixteen, when Republicans won much larger shares 0:33:34.240 --> 0:33:37.680 of House seats than votes. The disconnect was most pronounced 0:33:37.720 --> 0:33:41.440 in two thousand twelve, when democrats one point one percentage 0:33:41.480 --> 0:33:45.120 point winning vote margin resulted in a seven point six 0:33:45.240 --> 0:33:49.600 point loss in terms of seats. Jerrymandering after the two 0:33:49.680 --> 0:33:52.600 thousand ten censes played a role in this, but political 0:33:52.720 --> 0:33:56.880 scientists pointed out that Democrats were also just inefficiently distributed, 0:33:57.440 --> 0:34:01.040 dominant in big cities but present in large if ultimately 0:34:01.160 --> 0:34:03.480 losing minorities and much of the rest of the country. 0:34:04.280 --> 0:34:07.600 Since Donald Trump was elected president in two thousand and sixteen, 0:34:07.960 --> 0:34:11.800 this distribution is shifted and the Republican edge has dwindled. 0:34:12.400 --> 0:34:15.640 I'm justin Fox. For more opinion, please go to Bloomberg 0:34:15.719 --> 0:34:18.480 dot com, Slash Opinion or O P I n go 0:34:18.800 --> 0:34:22.600 on the Bloomberg Terminal. This has been Bloomberg Opinion. Listen 0:34:22.640 --> 0:34:26.400 for Bloomberg opinion editorials every weekday. At this time, terminal 0:34:26.480 --> 0:34:29.640 customers can read more at O P I n go. 0:34:30.239 --> 0:34:32.719 It's now five thirty eight on Wall Street. Stay with 0:34:32.880 --> 0:34:36.799 us here on Bloomberg Daybreak for a conversation with Bloomberg's 0:34:36.880 --> 0:34:40.040 read Stevenson. He's got the big Take story on the 0:34:40.080 --> 0:34:45.200 Bloomberg Terminal this morning on Carlos Gone and the extraction 0:34:45.400 --> 0:34:48.279 crew that just made its way out of custody in 0:34:48.400 --> 0:34:51.719 Japan and is now looking for their due. Stay with 0:34:51.880 --> 0:34:54.640 us for that ahead of it. SMP futures are up 0:34:54.680 --> 0:34:57.520 seven points, staff futures up fifty five, Nasty futures up 0:34:57.520 --> 0:35:04.160 twenty eight. This is Bloomberg Markets, headlines and breaking news 0:35:04.320 --> 0:35:06.920 twenty four hours a day at Bloomberg dot Com, the 0:35:06.960 --> 0:35:11.080 Bloomberg Business Outland at Bloomberg quicktake. This is a Bloomberg 0:35:11.200 --> 0:35:20.160 business lash and I'm Karen Moscow. US not Index futures 0:35:20.200 --> 0:35:23.200 moving higher this morning. The dollar are racing in advance 0:35:23.280 --> 0:35:25.800 at the start of a pivotal week for monetary policy 0:35:25.880 --> 0:35:28.840 decisions from the FED, the European Central Bank and a 0:35:28.920 --> 0:35:31.279 host of their peers. We checked the markets all day long. 0:35:31.360 --> 0:35:34.520 Here at Bloomberg SNP futures of eight points or two 0:35:34.600 --> 0:35:37.439 tents of uppercent. Down futures are up about the same 0:35:37.480 --> 0:35:39.759 of fifty eight points, and nastack futures have a quarter 0:35:39.840 --> 0:35:42.600 percent or twenty nine points. The decks in Germany is 0:35:42.640 --> 0:35:45.280 down about two tents of upper cent. Can your treasury 0:35:45.360 --> 0:35:47.680 up twelve thirty seconds held three point five three percent. 0:35:47.760 --> 0:35:50.080 They yield on the two year four point three two percent. 0:35:50.520 --> 0:35:52.759 Nine x Scrude oil is down six tents percent or 0:35:52.800 --> 0:35:55.000 forty three cents at seventy dollars fifty nine cents of 0:35:55.080 --> 0:35:57.760 barrel comics gold is down half percent or nine dollars 0:35:57.800 --> 0:36:00.680 thirty cents at eighteen o one fifty announced. The euro 0:36:00.840 --> 0:36:03.200 one point oh five five nine against the dollar. British 0:36:03.239 --> 0:36:05.400 found one point to two eight six the yen one 0:36:05.480 --> 0:36:08.880 thirty six point seven three and that's a Bloomberg Business Flash. 0:36:08.920 --> 0:36:11.000 Now here's Amy Morris with Moore on what's going on 0:36:11.120 --> 0:36:15.200 around the world. Amy, thank you, Karen. Florida Governor rond 0:36:15.200 --> 0:36:17.840 De Santis thanked some of his South Florida donors at 0:36:17.880 --> 0:36:20.680 a closed door meeting. This was in Miami yesterday, where 0:36:20.719 --> 0:36:24.200 sources tell Bloomberg News to Santis noted how his victory 0:36:24.520 --> 0:36:27.960 could be a blueprint for Republicans in the future. Scientists 0:36:28.000 --> 0:36:31.200 in California now say they've made a breakthrough in nuclear 0:36:31.360 --> 0:36:35.440 fusion technology, producing more energy than consumed in a reaction 0:36:35.560 --> 0:36:37.960 for the very first time. The achievement was made at 0:36:37.960 --> 0:36:41.480 the U S Department of Energies Lawrence Livermore National Laboratory 0:36:41.600 --> 0:36:45.000 near San Francisco. In sports, in the NFL, the Bills 0:36:45.040 --> 0:36:47.719 beat the Jets, Giants lost to the Eagles, Ravens and 0:36:47.800 --> 0:36:50.399 forty Niners win. And hockey the Caps and Bruins win, 0:36:50.480 --> 0:36:53.399 and the NBA the Knicks beat The King's Global News 0:36:53.480 --> 0:36:55.960 twenty four hours a day on errand on Bloomberg Quicktake, 0:36:56.200 --> 0:36:59.120 powered by more than twenty seven journalists and analysts in 0:36:59.160 --> 0:37:01.960 more than one hundred money countries. I'm Amy Morris, and 0:37:02.160 --> 0:37:04.759 this is Bloomberg. Nathan alright, Amy, thank you. It is 0:37:04.800 --> 0:37:08.040 five forty two on Wall Street. This is Bloomberg Daybreak. 0:37:08.080 --> 0:37:11.080 I'm Nathan Hagar alongside Karen Moscow. Take a look at 0:37:11.120 --> 0:37:13.919 some of the other stories making news this morning. Wall 0:37:14.000 --> 0:37:16.600 Streets focus this week will be on inflation data and 0:37:16.719 --> 0:37:19.840 the Fed, but there are still a smattering of earnings 0:37:19.920 --> 0:37:23.440 reports ahead. Let's get the details now from Bloomberg's Charlie p. Fellott. 0:37:23.640 --> 0:37:27.120 Worries about how far central bankers will go to rain 0:37:27.239 --> 0:37:30.440 in inflation have kept investors on edge, and there is 0:37:30.520 --> 0:37:34.480 a great deal of uncertainty surrounding the earnings outlook. Kate 0:37:34.560 --> 0:37:37.640 Moore's head of thematic strategy at black Rock. Really, no 0:37:37.800 --> 0:37:41.360 one knows what earnings are gonna look like in I 0:37:41.440 --> 0:37:43.200 feel bad for the analysts that have to put out 0:37:43.239 --> 0:37:46.800 forecast when the uncertainty factor is so incredibly high and 0:37:47.239 --> 0:37:50.760 you can't make either evaluation or at earnings argument. Among 0:37:50.840 --> 0:37:55.400 this week's earnings reports are Accenture, Adobe, and Oracle in 0:37:55.600 --> 0:37:59.759 New York. Charlie Pellot Bloomberg Daybreak. All right, Charlie, thank you. 0:37:59.800 --> 0:38:03.759 A two prominent strategists are warning about future profit downgrades. 0:38:03.840 --> 0:38:06.719 Morgan Samley's Mike Wilson and David Coston at Goleman SAX 0:38:06.800 --> 0:38:10.400 say earnings could contract more than expected next year. They 0:38:10.440 --> 0:38:13.200 say emergens could come under increased pressure and provide a 0:38:13.200 --> 0:38:16.680 difficult backdrop for equities. Both Wilson and cost and see 0:38:16.680 --> 0:38:20.200 a tough start for stocks I meantime, across the pond, 0:38:20.280 --> 0:38:23.480 Care and Fresh data show the UK economy expanded in October. 0:38:23.600 --> 0:38:26.560 Businesses managed to recover output lost following the death of 0:38:26.640 --> 0:38:29.880 Queen Elizabeth. The second Gross domestic product rows five tenths 0:38:29.920 --> 0:38:33.120 percent from September, which included an extra public holiday for 0:38:33.160 --> 0:38:35.560 the Queen's funeral and a period of national morning. But 0:38:35.640 --> 0:38:39.000 when you look on a quarterly basis, GDP shrank three 0:38:39.120 --> 0:38:42.400 tenths per cent. UK Chancellor Jeremy Hunt weighed in on 0:38:42.480 --> 0:38:45.640 the downbeat data, well, these figures confirm that this is 0:38:45.719 --> 0:38:49.720 a very challenging economic situation here and across the world, 0:38:50.560 --> 0:38:53.320 and it will get worse before it gets better. But 0:38:53.480 --> 0:38:56.360 we have a plan that will more than half inflation 0:38:56.520 --> 0:38:58.760 over the next year and if we stay the course, 0:38:59.239 --> 0:39:02.160 we can get back to the strong economic growth that 0:39:02.320 --> 0:39:05.560 we need. Chancellor Jeremy Hunt spoke earlier this morning. The 0:39:05.640 --> 0:39:08.400 outlook could leave the Bank of England deeply divided this 0:39:08.560 --> 0:39:12.080 week over how much to raise interest rates to fight inflation. Well. 0:39:12.120 --> 0:39:14.400 Staying in the UK, Nathan, the government is planning for 0:39:14.560 --> 0:39:18.360 military staff and civil servants to cover for striking rail, health, 0:39:18.480 --> 0:39:21.400 postal and other workers in the coming weeks. Strikes your 0:39:21.440 --> 0:39:23.879 plan for almost every day through the rest of the month. 0:39:24.160 --> 0:39:26.960 Workers are demanding pay hikes that keep up with inflation, 0:39:27.120 --> 0:39:29.880 resulting in the biggest weave of industrial strife in the 0:39:30.040 --> 0:39:34.360 UK since the eighties. This is the Big Take, the 0:39:34.520 --> 0:39:38.600 best of Bloomberg's in depth original reporting from around the globe. 0:39:38.640 --> 0:39:41.520 This is a really fast moving story that caused a 0:39:41.560 --> 0:39:45.360 lot of outrage among investors. This is so fascinating market 0:39:45.480 --> 0:39:47.959 shutdown in a way it's never done before. That's gonna 0:39:47.960 --> 0:39:51.239 have consequences for years to come. The Big Take on 0:39:51.520 --> 0:39:56.680 Bloomberg Radio coming up to five on Wall Street and 0:39:56.800 --> 0:40:00.279 this morning's Bloomberg Big Take is on Carlo Scone, former 0:40:00.360 --> 0:40:04.320 Nissan chairman, and the price paid by the American father 0:40:04.480 --> 0:40:09.400 and son extraction team that facilitated his daring escape from Japan. 0:40:10.040 --> 0:40:12.640 Joining us now with is the author of the Big 0:40:12.719 --> 0:40:15.919 Take story this morning Bloomberg's read Stevenson read, it's good 0:40:15.960 --> 0:40:17.520 to have you with us. Thanks so much for this. 0:40:18.000 --> 0:40:20.360 Of course, a lot of us are familiar with the 0:40:20.440 --> 0:40:24.480 Carlos Gones story, but maybe not so familiar about Michael 0:40:24.560 --> 0:40:27.600 and Peter Taylor, the father and son who helped in 0:40:27.800 --> 0:40:32.360 his extraction. Tell us more about them, well, Nathan, it 0:40:32.520 --> 0:40:36.279 was about three years ago, almost to the same month 0:40:36.480 --> 0:40:41.040 that Carlos gone. Stage is dramatic to escape out of Japan. 0:40:41.880 --> 0:40:43.880 You know, it's one of those stories that you almost 0:40:44.000 --> 0:40:47.240 never hear about in business news, and so it captured 0:40:47.280 --> 0:40:50.879 the world's attention, and uh to a certain extent, it's 0:40:50.880 --> 0:40:53.480 been forgotten since then. You know, Going is now in 0:40:53.600 --> 0:40:58.520 Lebanon fighting to restore his reputation, although it's unlikely he'llever 0:40:58.640 --> 0:41:02.320 be facing a judge in a court anytime soon. But 0:41:02.480 --> 0:41:06.800 the other forgotten part of the story is the cost 0:41:07.040 --> 0:41:10.760 that you know, others have paid four Carlo Stone's freedom, 0:41:10.840 --> 0:41:16.560 namely Michael Taylor and Peter Taylor, who were unexpectedly extradited 0:41:16.680 --> 0:41:22.160 from the US to Japan last year and then spent 0:41:22.320 --> 0:41:27.840 sixteen months in um the Japanese prison system, which you know, 0:41:28.000 --> 0:41:33.080 some say is much harsher than you might imagine compared 0:41:33.160 --> 0:41:36.360 to the US. And now they're out, they're back in 0:41:36.440 --> 0:41:39.680 the US and also back in by route, and they're 0:41:39.719 --> 0:41:45.319 telling their story both in terms of the sacrifices they made, 0:41:46.560 --> 0:41:50.239 what they think they are owed for their ordeal, and 0:41:50.360 --> 0:41:52.759 as well as some you know, new details about the 0:41:52.920 --> 0:41:55.400 escape that have never been made public. Yeah, it's a 0:41:55.480 --> 0:41:59.000 really interesting story, particularly coming after the news last week 0:41:59.040 --> 0:42:01.920 about Brittney grind Or in the negotiation for her release 0:42:02.000 --> 0:42:05.719 from Russia. Michael and Peter Taylor from your reporting, don't 0:42:05.800 --> 0:42:08.720 mince words when it comes to how they feel about 0:42:08.920 --> 0:42:13.759 the Trump and Biden administrations. Essentially, they feel like they 0:42:13.840 --> 0:42:18.480 were forgotten, weren't they by those administrations in terms of 0:42:18.960 --> 0:42:23.839 their captivity. Indeed, Um, I think, you know, it's easy 0:42:23.920 --> 0:42:26.560 to sort of maybe speculate as to why, but the 0:42:26.680 --> 0:42:30.680 fact remains that, uh, you know, nobody really stepped in 0:42:31.880 --> 0:42:35.120 when the extradition process was happening under the Trump administration. 0:42:35.200 --> 0:42:39.440 In fact, it happened unusually quickly, and then of course, 0:42:39.719 --> 0:42:43.600 once a new administration and was in place, Um, the 0:42:43.680 --> 0:42:47.520 Biden administration also had a chance possibly to put a 0:42:48.280 --> 0:42:52.240 stop to proceedings, but that didn't happen either, and so therefore, 0:42:53.120 --> 0:42:57.000 you know, father and son were promptly shifted Japan where 0:42:57.120 --> 0:43:01.040 they pleaded guilty in a bid for leniency. Who knows 0:43:01.120 --> 0:43:03.520 whether they actually got the leniency or not, but some 0:43:03.680 --> 0:43:06.400 of the conditions they had to go through were pretty harsh. 0:43:07.320 --> 0:43:12.040 Nineties straight days and solitary. And uh. I also heard 0:43:12.080 --> 0:43:14.040 from Michael Taylor that you know, he tried to call 0:43:14.160 --> 0:43:17.479 his dying father and never got a chance to do so. Wow. 0:43:17.640 --> 0:43:21.520 And now they are finally out of the Japanese legal 0:43:21.680 --> 0:43:25.759 system and as you say, looking to get what they 0:43:25.840 --> 0:43:29.080 see as their due from Carlo Stone, as the former 0:43:29.160 --> 0:43:33.360 Nissan chairman tries to rebolster his reputation. What are they 0:43:33.480 --> 0:43:36.680 looking for from Carlos Stone? You've got about a minute 0:43:36.719 --> 0:43:42.000 left here. Indeed, Um, Michael Taylor never did this for profit. 0:43:42.600 --> 0:43:45.760 He has a history of going and helping objective children 0:43:46.239 --> 0:43:49.439 other people in trouble. So at the moment, what they're 0:43:49.480 --> 0:43:52.120 really just looking for is to be made whole. Um. 0:43:53.080 --> 0:43:56.040 The escape itself costs about one point three million dollars, 0:43:56.239 --> 0:43:59.319 I'd say about a two thirds of that had been paid, 0:43:59.440 --> 0:44:01.680 so they're looking for the remainder. But then of course 0:44:02.200 --> 0:44:05.160 there are some astronomical legal costs involved in fighting the 0:44:05.239 --> 0:44:09.640 extradition and navigating the Japanese legal system. Those amount to 0:44:09.880 --> 0:44:12.520 roughly three million dollars. So at the moment, what they're 0:44:12.520 --> 0:44:16.400 really looking for is to be made whole. And perhaps, 0:44:16.880 --> 0:44:20.000 you know, there may be a discussion about something on 0:44:20.160 --> 0:44:23.120 top of that, but that's another chapter to be written 0:44:23.160 --> 0:44:26.400 in this crazy story. Yeah, and it's a story that 0:44:26.600 --> 0:44:31.360 is really fascinating to get more details on, as you mentioned, 0:44:31.400 --> 0:44:36.520 one of those forgotten sidebars from the Carlos Going saga. 0:44:36.719 --> 0:44:39.839 Thanks for this read great having gone with us once again. 0:44:39.880 --> 0:44:42.840 Read Stevenson and Bloomberg News, the author of this morning's 0:44:42.920 --> 0:44:47.080 Big Take on Carlos Gone and his extraction crew. You 0:44:47.120 --> 0:44:49.920 can read much more about it at Ani Big Take 0:44:50.000 --> 0:44:54.080 Go on the Bloomberg Terminal or Bloomberg dot com slash 0:44:54.320 --> 0:44:58.000 Big Take. Future is moving higher this morning. You're listening 0:44:58.080 --> 0:45:04.920 to Bloomberg Daybreak, Markets, headlines and breaking news twenty four 0:45:04.960 --> 0:45:07.960 hours a day at Bloomberg dot Com, the Bloomberg Business 0:45:08.040 --> 0:45:11.680 at and at Bloomberg Quicktake. This is a Bloomberg Business 0:45:11.719 --> 0:45:20.400 Flash and I'm Karen Moscow. You must knock index futures 0:45:20.480 --> 0:45:23.600 higher this morning the dollar are racing on advance. We 0:45:23.719 --> 0:45:26.200 check the markets everything. We check the markets all day 0:45:26.239 --> 0:45:28.480 long here at Bloomberg Radio with S and P futures 0:45:28.520 --> 0:45:31.360 of eleven points or about three tens of Uppercental futures 0:45:31.440 --> 0:45:33.440 up seventy eight points or two tents of upper cent, 0:45:33.840 --> 0:45:36.239 and as deck futures have forty three points are about 0:45:36.280 --> 0:45:38.920 a third of up percent to your treasury of fifteen 0:45:38.960 --> 0:45:41.000 thirty seconds, you have three point five two percent, and 0:45:41.040 --> 0:45:43.760 they yield on the two year four point three two percent. 0:45:44.239 --> 0:45:46.640 Nine max Screwed oil is lower down nine tenths of 0:45:46.719 --> 0:45:49.240 upper cent or sixty one cents at seventy dollars, forty 0:45:49.280 --> 0:45:52.279 one cents of barrel comes. Gold is down four tenths 0:45:52.360 --> 0:45:55.280 of uppercent, down seven dollars ten cents, and one thousand, 0:45:55.360 --> 0:45:58.200 eight hundred three dollars sixty cents. Announced the euro this 0:45:58.400 --> 0:46:01.000 morning one point oh five six were against the dollar, 0:46:01.080 --> 0:46:04.160 British pound one point to to eight five, the yannas 0:46:04.160 --> 0:46:06.919 at one thirties six point six eight, and bitcoins lower 0:46:07.000 --> 0:46:11.160 down seven tenths of upper cent at almost seventeen thousand dollars. 0:46:11.400 --> 0:46:14.960 And that's a Bloomberg business flash. Nathan Karen Thank you. 0:46:15.160 --> 0:46:17.520 It's fifty six on Wall Street Time for our daily 0:46:17.560 --> 0:46:20.600 Bloomberg Lab Brief, exploring legal issues in the news. Today, 0:46:20.640 --> 0:46:23.319 we look at a case involving Harvard's former fencing coach 0:46:23.440 --> 0:46:27.440 and a telecom ceo. They're facing a jury over charges 0:46:27.480 --> 0:46:30.360 that they corrupted the admissions process at Harvard. In a 0:46:30.440 --> 0:46:34.839 case with echoes of the Varsity Blues admission scandal, Jack Joo, 0:46:35.080 --> 0:46:38.600 ceo of I Talk Global Communications, is accused of bribing 0:46:38.719 --> 0:46:40.920 coach Peter Brand to the tune of more than one 0:46:40.960 --> 0:46:43.480 and a half million dollars to help get his two 0:46:43.560 --> 0:46:47.719 sons into Harvard by having them designated fencing recruits. Key 0:46:47.800 --> 0:46:50.280 point at trial is going to be whether the defendant's 0:46:50.320 --> 0:46:53.839 actions harmed Harvard. For more on the case, Bloomberg's June 0:46:53.880 --> 0:46:58.360 Grosso speaks with our legal reporter Laurel Culkins and what's 0:46:58.400 --> 0:47:02.919 the defense the explin nation for all that money? Generosity? 0:47:03.520 --> 0:47:06.640 Defense says, you know, it's the cultural thing. The Zals 0:47:06.680 --> 0:47:09.480 are wealthy and from the Chinese tradition of being generous 0:47:09.520 --> 0:47:12.200 with their friends. And by the way, they say now, 0:47:12.400 --> 0:47:13.920 and they did not say this in any of the 0:47:14.000 --> 0:47:17.000 pre trial filings, but they told the jury on opening day. 0:47:17.480 --> 0:47:20.799 This was all alone that Peter Brand got an inheritance 0:47:20.880 --> 0:47:24.520 from his mom recently and paid everything off with interest. 0:47:24.760 --> 0:47:27.360 Of course, that also happened after he was indicted, and 0:47:27.440 --> 0:47:29.400 of course the prosecutors are going nuts, what do you 0:47:29.440 --> 0:47:31.920 mean there's no evidence that it was ever repaid. So 0:47:32.520 --> 0:47:34.840 the prosecution is actually trying to get the judge to 0:47:34.880 --> 0:47:37.000 say they have to take all that back. And they 0:47:37.040 --> 0:47:38.520 can't tell any of that to the jury because it 0:47:38.600 --> 0:47:41.399 doesn't matter what happened after the indictments. So what's gonna 0:47:41.400 --> 0:47:44.240 be interesting to see what happened now. The defense says 0:47:44.520 --> 0:47:49.319 Joos sons were nationally ranked fencers, outstanding athletes, and good 0:47:49.480 --> 0:47:52.800 students who were admitted on their own merit, but you 0:47:52.960 --> 0:47:56.680 never know with college admissions, and the prosecution says that 0:47:57.080 --> 0:47:59.800 Jaw didn't want to take any chances that is, some 0:48:00.000 --> 0:48:03.759 would be rejected, exactly. And you also have to recognize 0:48:03.800 --> 0:48:06.600 that the two sons are not exactly equal. They both 0:48:06.640 --> 0:48:10.359 had outstanding academics which qualified under Harvard's admissions, and then 0:48:10.400 --> 0:48:14.480 they both were competitive fencers. Shall we say the elder 0:48:14.600 --> 0:48:18.080 son actually went on to become co captain of Harvard's 0:48:18.120 --> 0:48:20.800 fencing team and was second strain all Ivy, so he 0:48:20.880 --> 0:48:24.440 clearly was talented. The younger son also competed for Harvard. 0:48:24.560 --> 0:48:26.840 He racked up, you know, some honors, but not as 0:48:26.920 --> 0:48:29.720 much as his brother. But the other thing is with Harvard, 0:48:29.880 --> 0:48:32.560 unlike some of the other colleges, the coach can't just 0:48:32.640 --> 0:48:34.880 say this is my recruit and they automatically get in. 0:48:35.080 --> 0:48:38.680 Harvard has a kind of a whole student evaluation process, 0:48:38.760 --> 0:48:42.120 and there's an interview and a committee process, so it 0:48:42.160 --> 0:48:44.680 will very much tips the scale in your favor, but 0:48:44.800 --> 0:48:47.719 it's not a deadlock. So I think Zoo was trying 0:48:47.800 --> 0:48:49.959 to tilt that scale as much in his son's favor 0:48:50.040 --> 0:48:52.840 as possible. But a big point in the trial is 0:48:52.880 --> 0:48:57.160 going to be was Harvard harmed? Because the zo's technically 0:48:57.239 --> 0:49:00.960 qualified for admissions on their own merit. They competitively for 0:49:01.080 --> 0:49:03.840 Harvard all four years that each boy was there, and 0:49:04.000 --> 0:49:06.759 they both paid full tuition. They didn't get any scholarships, 0:49:06.880 --> 0:49:10.040 so it's a question did Harvard get harm who's the victim? Here? 0:49:10.800 --> 0:49:14.040 That's Bloomberg Legal reporter Laura Culkins speaking with June Grosso, 0:49:14.120 --> 0:49:16.320 and you can catch more of that interview plus analysis 0:49:16.400 --> 0:49:18.960 of the latest legal news by subscribing to the Bloomberg 0:49:19.040 --> 0:49:22.000 Law podcast or downloading the show at Bloomberg dot com. 0:49:22.120 --> 0:49:26.000 Slash podcasts and attorneys can find exceptional legal research and 0:49:26.200 --> 0:49:29.719 business development tools at Bloomberg law dot com and on 0:49:29.760 --> 0:49:33.960 the Bloomberg terminal at b Law go right now. S 0:49:34.000 --> 0:49:36.440 and b Futures up ten points, stole Futures up seventy one, 0:49:36.520 --> 0:49:39.239 nastac Future is hired by forty one points. Tend your 0:49:39.239 --> 0:49:42.160 treasuries up fourteen thirty seconds of the yield three point 0:49:42.200 --> 0:49:44.200 five two per cent, straight ahead and check of the 0:49:44.280 --> 0:49:46.520 latest business headlines. All the news you need to start 0:49:46.560 --> 0:49:50.080 your day. Our two of Bloomberg Daybreak starts right now.