Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg
Speaker 1: Tape right for Thursday, December fifteen two. Coming up, The
Speaker 1: Shower stocks continue their sell off following j. Powell's hawkish tone.
Speaker 1: Now it's the E C D and Bank of England's
Speaker 1: turn to make great decisions. China's economy weekend before the
Speaker 1: government dropped COVID zero and Elon Muska dumps more shares
Speaker 1: of Tesla. I'm maybe Morris. New Jersey Transit will spend
Speaker 1: ninety seven million dollars for new transportation, and investigators are
Speaker 1: searching for the cause of that NYPD warehouse fire in Brooklyn.
Speaker 1: I'm John Stave Shower and sports the next made it
Speaker 1: five straight wins. They beat the Bowls in overtime. The
Speaker 1: Rangers seek a fifth straight win tonight. That's all train
Speaker 1: ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York,
Speaker 1: Bloomberg one, Washington d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco Sirius XM one nineteen and
Speaker 1: around the world Old on Bloomberg Radio dot Com and
Speaker 1: via the Bloomberg Business app. Good morning, I'm Nathan Hagrim
Speaker 1: and I'm Kared Moscow. US Dock Index futures are lower
Speaker 1: this morning. We checked the markets all day longing here
Speaker 1: on Bloomberg radios, and P futures down forty three points.
Speaker 1: That's down one point one percent. Down Future is down
Speaker 1: eight tens of upper cent or two hundred sixty seven points,
Speaker 1: and NASTAC future is falling down a hundred seventy three
Speaker 1: points or one and a half percent. The decks in
Speaker 1: Germany's down one point two percent, and the ten year
Speaker 1: treasury down three thirty seconds here three point four nine
Speaker 1: percent Nathan Karen. This sell off continues after the Fed's
Speaker 1: final policy decision of the year. As expected, the Central
Speaker 1: Bank raised interest rates another fifty basis points, but German J.
Speaker 1: Powell is pushing back at market hopes for a pivot
Speaker 1: to lower rates anytime soon. Price stability is the responsibility
Speaker 1: of the Federal Reserve and serves as the bedrock of
Speaker 1: our economy. Without price stability, the economy doesn't work for anyone.
Speaker 1: In particular, Without price stability, we will not achieve a
Speaker 1: sustained period of strong labor market conditions that benefit all.
Speaker 1: Jair J. Pal says the FED plans to stay the
Speaker 1: course until the job is done well stocks and after
Speaker 1: two day winning streak after Powell's or marks Nathan but
Speaker 1: Guggenheim Chief investment officer Scott Miner says Powell's tone should
Speaker 1: not have come as a surprise. We knew they had
Speaker 1: to be very hawkish, and the reason they had to
Speaker 1: be hawk issues that you know, financial conditions have loosened
Speaker 1: pretty dramatically over the last six weeks. Uh, you know,
Speaker 1: the stock markets up substantially, rates her down meaningfully and
Speaker 1: so um. You know, the FED I think felt that
Speaker 1: it needs to lean into that. And those are marks
Speaker 1: from Scott Minored at Guggenheim are being echoed by KPMG
Speaker 1: chief economist Dianne Swunk. They are more than willing to
Speaker 1: start coming rights if inflation comes down more rapidly. They
Speaker 1: have to send this message right now, and I think
Speaker 1: that's what they stand. They will be a political Panada.
Speaker 1: I have no doubt about j. Powell's ability to handle
Speaker 1: the politics, give what he's already been through. KPMGES, Diane
Speaker 1: Swank and Scott Minor joined us on a special edition
Speaker 1: of Bloomberg Surveillance following the FED decision, and we have
Speaker 1: even more policy decisions scaring two big ones on the
Speaker 1: way out of Europe. We begin our team coverage with
Speaker 1: Bloomberg's Lizzie Burden in London, where the Bank of England
Speaker 1: is expected to follow the FED with its own fifty
Speaker 1: basis point hike. For me, what's the most interesting thing
Speaker 1: today will be the vote split, because potentially it's going
Speaker 1: to see a lot about where we had from here
Speaker 1: in terms of tightening. Bank of America JP Morgan and
Speaker 1: Nomura have pointed to the possibility of a four way
Speaker 1: split between seventy five fifty twenty five and no hike
Speaker 1: at all. It would be the first time in the
Speaker 1: bank's independent history and that might seem chaotic, but really
Speaker 1: some welcome it as a confirmation that there's no groupthink
Speaker 1: on thread Needle Street. Bloomberg's Lizzie Burden reports the BOE
Speaker 1: decision comes down less than one hour from now, and
Speaker 1: just over an hour after the BOE announcement, Nathan will
Speaker 1: hear from the European Central Bank and Bloomberg's Ria Today.
Speaker 1: O continues our team coverage with details on that from Frankfurt,
Speaker 1: there was this debate, would it be fifty would it
Speaker 1: be seventy five, But of course we can't ignore that
Speaker 1: this is coming off the back of the Fed going
Speaker 1: for fifty. The animal spirits also in Frankfort suggesting this
Speaker 1: is now inclined towards fifty basis points that would take
Speaker 1: the deposit rate to two percent, and of course signal
Speaker 1: discontinuation of hikes from the central bank. And Bloomber's Maria
Speaker 1: today O says all but three of the fifty one
Speaker 1: economist surveyed by Bloomberg predict a fifty basis point move
Speaker 1: from the e c B. Fifty basis points seems to
Speaker 1: be a theme for central banks. Karen, We've heard from
Speaker 1: the Swiss National Bank this morning as well, and they
Speaker 1: raised rates, you guessed at fifty basis points, bringing the
Speaker 1: benchmark in Switzerland to one percent. All right, let's turn
Speaker 1: to Asia now, Nathan, We're economic data are in focus.
Speaker 1: Fresh data out of Beijing shows growth slow to November.
Speaker 1: That's before the government dropped as COVID zero policy. Bloomberg
Speaker 1: Dabrick Asia anchor Brian Curtis has more from Hong Kong
Speaker 1: re hail sales contracted five point nine percent in November
Speaker 1: from a year ago, and that was worse than the
Speaker 1: four percent to climb. In a Bloomberg survey, industrial output
Speaker 1: grew two point two percent from a year ago. That
Speaker 1: also missed the estimate. COVID outbreaks across the country meant
Speaker 1: the people went out less and spent less money. Economists
Speaker 1: expect more disruption in the coming months. Brian Curtis, Bloomberg Radio. Okay, Brian,
Speaker 1: thank you. In corporate news this morning, we're watching shares
Speaker 1: of Tesla. They're down another two point six percent in
Speaker 1: the pre market after Elon Musk sold another chunk of
Speaker 1: his steak. It's the latest Live with Bloomberg. Steve Rappaport.
Speaker 1: Good morning, Steve, Good morning Nathan and Karen. Well, it
Speaker 1: wouldn't be a newsday without a mention of Musk and
Speaker 1: his latest move. The Tesla founder unloading another three point
Speaker 1: six billion dollars in company shares. Musk already sold off
Speaker 1: eighteen billion in stock this year to finance his acquisition
Speaker 1: of Twitter. The electric automaker. Stock plummeted fifty five percent
Speaker 1: this year as investors grow concerned about Musk purchasing the platform,
Speaker 1: and with this year's sell off, Tesla's valuation dropped below
Speaker 1: five hundred billion for the time since November. Live in
Speaker 1: New York, I'm Steve Rappaport, Bloomberg Day Break, Right, Steve,
Speaker 1: thank you. In the fallow up continues in the crypto
Speaker 1: space after the collapse of f t X, Democratic Senator
Speaker 1: Elizabeth Moore and is announcing you by partisan bill aimed
Speaker 1: to crack down on digital currencies used in money laundering.
Speaker 1: This is all about what we need to do right now,
Speaker 1: and we need to stop the money laundering. We need
Speaker 1: to stop the cheating that's going on in crypto, and
Speaker 1: that means just getting a set of rules in place.
Speaker 1: Same kind of transaction, same kind of risk, means we've
Speaker 1: got to have the same rules, and it also means
Speaker 1: we've got to have a cop on the beat who
Speaker 1: was well enough financed. And if Senator Wawren's bill becomes law,
Speaker 1: crypto exchanges would be required to verify customer identities the
Speaker 1: way banks and other financial institutions already do, and futures
Speaker 1: are lower. This morning, straight ahead, we have your latest
Speaker 1: local headlines, plus a check of sports, and this is Bloomberg.
Speaker 1: Thank you. Karen at six oh seven on Wall Street,
Speaker 1: thirty four degrees in Central Park. Grab that umbrella. We
Speaker 1: got rain moving in this afternoon. We're head to the
Speaker 1: mid forties, low forties early tonight, but temperatures are gonna
Speaker 1: rise through the overnight hours of the rain continues. Amy
Speaker 1: Morris is here with what else is going on in
Speaker 1: wet New York City. At least the'll be wet later, Amy,
Speaker 1: Oh yes it will, Nathan, thanks so much. The courts
Speaker 1: also will not be stepping into immediately stopped New York
Speaker 1: Mayor Eric Adams plans to force mentally ill people from
Speaker 1: the streets and into treatment. The judge found no evidence
Speaker 1: that irreparable harm would occur before he issues his final
Speaker 1: ruling on the practice in a couple of weeks. Advocates
Speaker 1: for people with mental illnesses want that plan stopped. They
Speaker 1: say police officers should not be first responders for those
Speaker 1: who need healthcare. Crews are still looking for hot spots.
Speaker 1: Investigators still looking for the cause of a huge fire
Speaker 1: at an NYPD evidence warehouse in Brooklyn. Former police Chief
Speaker 1: Terry Monahan says everything has been destroyed. They really don't
Speaker 1: even expect anything to be salvage going there. Obviously, they're
Speaker 1: not going to oversaw until they get inside and start
Speaker 1: looking around on Hansas items in the warehouse. We're going
Speaker 1: to be destroyed before the blaze, but some of the
Speaker 1: eleven thousand barrels in the facility are related to cold cases.
Speaker 1: New Jersey Transit spending ninety seven million dollars to buy
Speaker 1: a new ferry, sixty new busses, and rebuild thirty five locomotives,
Speaker 1: and jay dot Com reports the board exercised an option
Speaker 1: with New Flyer to buy sixty more articulated buses. They
Speaker 1: awarded a seven million dollar contract for a new ferry
Speaker 1: from Hornblower Yacht, and they agreed to a thirty four
Speaker 1: million dollar contract with Caterpillar for the new locomotives. New
Speaker 1: Jersey Governor Phil Murphy is urging parents to get their
Speaker 1: young children updated coronavirus boosters. Murphy says children ages six
Speaker 1: months to five years old are eligible now to receive
Speaker 1: the updated vibulent vaccine, but only five and a half
Speaker 1: percent of New Jersey children between six months and four
Speaker 1: years old have completed their primary series. Russian cosmonauts canceled
Speaker 1: air spacewalk yesterday they noticed a leak outside their spacecraft.
Speaker 1: NASA officials talked about it We noticed a visible stream
Speaker 1: of flakes coming from the aft of the SOYUS near
Speaker 1: the instrumentation and Propulsion module that was indicatives of the leak.
Speaker 1: The SOYUS spacecraft is ducked at the International Space Station
Speaker 1: and Russia's trying to figure out what is the leak
Speaker 1: and what caused the leak. The Global News twenty four
Speaker 1: hours a day on air end on Bloomberg Quick Take,
Speaker 1: powered by more than twenty journalists and analysts and more
Speaker 1: than one hundred twenty countries. I'm Amy Morris. This is
Speaker 1: Bloomberg Nathan. Thanks Amy, six o nine on Wall Street
Speaker 1: Time for the Bloomberg Sports Update, brought to you by
Speaker 1: Price State Out. Here's John stash Our. Thanks today to
Speaker 1: the next with the start of an unusual two games
Speaker 1: series in Chicago. They played the Bulls last night and
Speaker 1: they'll be there again tomorrow. Last night went over time
Speaker 1: Nicks pulled out the wine fifth win in a row,
Speaker 1: and Julius Randall has had a lot to do with
Speaker 1: that plane, much more like you did too years ago.
Speaker 1: Then last season when Randall struggled thirty one points, thirteen rebounds,
Speaker 1: seven assists, thirty points for Jalen Brunson. The Warriors lost
Speaker 1: at Indiana if any the NBA Jamps can't win on
Speaker 1: the road there two and thirteen, and Steph Curry left
Speaker 1: last night with an injured shoulder. Rangers host Toronto tonight.
Speaker 1: Blue Shirts have won their last four college hoops easy
Speaker 1: went for Seaton Hall over at Drexel Battle of top
Speaker 1: twenty teams. U C l A went to Maryland one easily.
Speaker 1: The Bruins were up by twenty night at halftime. Sunday's
Speaker 1: World Cup Final promises to be a classic Argentina, with
Speaker 1: Lionel Messi looking for his elusive first championship taking on France,
Speaker 1: Who's got a chance to win back to back World
Speaker 1: Cups That's only happened once Brazil sixty years ago. As
Speaker 1: the Jets get ready to host the Lions, Sunday, coach
Speaker 1: Rob salast about quarterback Zack Wilson, who lost his starting job,
Speaker 1: been doing a great job. He he has, He's been
Speaker 1: deliberate in his approach over the last three weeks. Um,
Speaker 1: he's been holding himself accountable with regards to how he
Speaker 1: wants to attack practice. Uh, how has been performing in
Speaker 1: practice going against our defense, which I think is a
Speaker 1: pretty good defensive goal against Salah has moved Wilson from
Speaker 1: third spring up to second behind Mike White. Forty Niners
Speaker 1: bring their six game win string tonight into Seattle, chance
Speaker 1: of the Niners to clinch the NFC West. The x
Speaker 1: met Noah Synderguard signed a one year deal with the Dodgers.
Speaker 1: John Stash awards Bloomberg Sports, Nathan and the Bloomberg Sports Support.
Speaker 1: John was brought to you by Audie. Don't let someone
Speaker 1: else drive off in the Autie model. You've always wanted
Speaker 1: to visit your local Tri state Audie dealer to get
Speaker 1: behind the wheel of yours today, or visit Autie Offers
Speaker 1: dot com for more information. Right now, SMP futures are
Speaker 1: down forty points, staff futures down two forty one, and
Speaker 1: nastack futures are lower by a hundred fifty eight points
Speaker 1: at decline of one and a third percent. As the
Speaker 1: equity sell off continues. Following the FED decision and the
Speaker 1: hawkish tone from Chairman Pale, We're going to get more
Speaker 1: insights on the path for the FED. Danielle di Martino
Speaker 1: Booth of Quill Intelligence joins us with her thoughts. Next
Speaker 1: this is Bloomberg Live from coast to coast, from New
Speaker 1: York to San Francisco, Boston to Washington, d C. Nationwide
Speaker 1: on Sirius, xamp, the Bloomberg Business App, and Bloomberg dot Com.
Speaker 1: This is Bloomberg Daybreak. Good morning, I'm Nathan Hegerl. Let's
Speaker 1: getch you back to our top story of the morning,
Speaker 1: the Federal Reserve delivering that widely expected fifty basis point
Speaker 1: rate high and its final policy meeting of two. But
Speaker 1: if markets were expecting a pivot to lower rates anytime soon,
Speaker 1: the message from Chairman J Powell basically is don't hold
Speaker 1: your breath. Let's bring in Danielle DiMartino Booth for more
Speaker 1: insights on this. The CEO, chief strategist at Quill Intelligence
Speaker 1: joins us Live this morning. Of course, Danielle as a
Speaker 1: former advisor as well to the President of the Federal
Speaker 1: Reserve Bank of Dallas. It's great to speak with you
Speaker 1: this morning from our Interactive Broker studios. Danielle, what was
Speaker 1: your takeaway from this hawkish tone that we continue to
Speaker 1: get from this Federal Reserve? Well, uh, my biggest takeaway
Speaker 1: was the consensus um factor, the fact that there was
Speaker 1: so much agreement, despite the fact that everybody who submitted
Speaker 1: their dots could have changed their dot by by Tuesday night,
Speaker 1: according to the Fed's website. So they maintained that they
Speaker 1: feel that inflation is going to be problematic, even though
Speaker 1: we did see breaking that the markets celebrated UH in
Speaker 1: the consumer price index. Do you expect that consensus to hold?
Speaker 1: It looks like the market is continuing to place it's
Speaker 1: bet that the Fed is gonna blak Indeed, it does.
Speaker 1: You initially saw kind of a violent reaction in the
Speaker 1: bond market, and then yields backed off, indicating that they
Speaker 1: still the bond market still believes that the Fed is
Speaker 1: going to be forced to pivot. I would say that
Speaker 1: the particular form of inflation that that your pals cited,
Speaker 1: that would be the core services UH CPI X shelter
Speaker 1: UH that that has ticked down for two months in
Speaker 1: a row. My experience at the Fed tells me once
Speaker 1: they get to that third month in a row, a
Speaker 1: trend has been established, and that that will be a
Speaker 1: takeaway for the doves. And we're also going to see
Speaker 1: a rotation too much more dovish federals or of district presidents.
Speaker 1: In three cash car is coming on Lorie Logan, who's
Speaker 1: a career economist from the New York FED. She's also
Speaker 1: considered to be a dove. She's coming on as well
Speaker 1: as Austin Goulsby, and we're going to roll off some
Speaker 1: known hawks. So I think that I think that chair
Speaker 1: Powell might be seeing descent in interesting how much descent
Speaker 1: do you think that Chairman Powell is going to be
Speaker 1: in for Do you think that the Chairman Powell himself
Speaker 1: starts to waiver a bit if we do get that
Speaker 1: sign that inflation is starting to go on the path
Speaker 1: that the Fed is looking for. Well, I certainly think
Speaker 1: that's going to be the case. At least he will
Speaker 1: continue to not to the effects of of higher interest rates.
Speaker 1: In fact, at the at the presser yesterday afternoon, Powell
Speaker 1: actually said, you know, we expect, we can we can
Speaker 1: foresee that shelter inflation that is problematically sticky, we can
Speaker 1: foresee that that's going to turn in. He still looked
Speaker 1: through that, however, and bear in mind, given the FEDS
Speaker 1: unemployment forecast that we saw in in the Summary Economic
Speaker 1: projections yesterday, there's every chance, I mean, we've never not
Speaker 1: gone into recession with that level of an increase in
Speaker 1: the unemployment rate that is part of the FEDS forecast.
Speaker 1: So the FED is as close as it's possibly ever
Speaker 1: been to acknowledging and saying we're going to continue tightening
Speaker 1: into recession. Yeah, and one of the big messages we
Speaker 1: heard yesterday from Chairman Powell is that there's a bigger
Speaker 1: risk from under tightening than there is from overtightening. It
Speaker 1: seems like he has history in mind here, Danielle. What
Speaker 1: is the history that the chairman is looking at and
Speaker 1: does that really inform the kind of inflation that we're
Speaker 1: seeing in this economy. Well, you know, that's what the
Speaker 1: critical question is because when the policy error was first
Speaker 1: made when lb J was president and William mc chesney
Speaker 1: Martin blinked and was softer on the rate path than
Speaker 1: he should than he should have been, and then he
Speaker 1: was followed by mega doves who were politically malleable his
Speaker 1: you know, his nemesis, Arthur Burns uh, and they couldn't
Speaker 1: get really control of inflation at the time. That was
Speaker 1: a time when unions were extremely powerful, uh in the
Speaker 1: United States, when labor had more sway as opposed to
Speaker 1: where we are today. And as we see one company
Speaker 1: after another after another announcing layoffs, despite the fact that
Speaker 1: we're this close to the holidays, only about thirty seconds
Speaker 1: left here. Danielle, as we mentioned, you're a former advisor
Speaker 1: to the Dallas FED President. If you were in that
Speaker 1: role now, what would you be advising? Well, I would
Speaker 1: be trying to communicate a little bit better that I
Speaker 1: want to get inflation down. And but I am more
Speaker 1: sympathetic than what I sound like. I am to the
Speaker 1: fact that somebody losing their job is a heck of
Speaker 1: a lot worse than somebody battling inflation. But they're gonna
Speaker 1: try and look past that for the long term prosperity
Speaker 1: of the U. S. Economy, for the common good. Yeah,
Speaker 1: I'm gonna be really interesting to see the messaging going
Speaker 1: into three and the potential impact of policy on this
Speaker 1: UH persistent inflation. We continue to see, Danielle di Martino
Speaker 1: Booth of Quill Intelligence as always, great to have you
Speaker 1: on with us this morning here on Daybreak, daniel d.
Speaker 1: Martino Booth, the CEO, Chief Strategist over at Quill Intelligence.
Speaker 1: Right now, SMP futures are down thirty nine points. Staff
Speaker 1: futures down two thirty seven, NASTAC futures are lower by
Speaker 1: a hundred fifty seven points, The ten your treasury is
Speaker 1: down to thirty seconds, yield three point four eight percent,
Speaker 1: and the yield on the two year right now four
Speaker 1: point to three percent. This is Bloomberg Good Morning, Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, the Bloomberg Business at Land at Bloomberg Victap.
Speaker 1: This is a Bloomberg Business Flash, and I'm Karen Moscow.
Speaker 1: This update brought to you by b and Why Mellin's
Speaker 1: Perishing Learned Why the world's most sophisticated wealth management and
Speaker 1: institutional firms rely on Perishing to help them improve profitability,
Speaker 1: create efficiency, attract talent and manage risk at Pershing dot Com.
Speaker 1: And futures are lower this morning, with S and P
Speaker 1: futures down forty points down, futures down two two NASDAG
Speaker 1: futures are down one hundred sixty and the ten year
Speaker 1: treasuries down to thirty seconds, held three point four eight percent,
Speaker 1: yield on the two year four point to three percent.
Speaker 1: And as a Bloomberg Business Flash. Now, here's Amy Morris
Speaker 1: with Moore on what's going on around the world. Amy,
Speaker 1: thank you. Karen Biser has an agreement to sell its
Speaker 1: anti viral medication patchle of It in China. This has
Speaker 1: sources tell Bloomberg the White House will reopen a program
Speaker 1: today allowing people in the US to order batches of
Speaker 1: at home COVID tests for free. The intruder accused of
Speaker 1: attacking how speaker Nancy Pelosi's husband was ordered to stand
Speaker 1: trial for attempted murder. Prosecutors say David de Pep has
Speaker 1: a list of other targets, including California Governor Gavin Newsom
Speaker 1: and actor Tom Hanks. And sports in the NBA, the
Speaker 1: Wizards and Warriors lose the NIXT win the World Cup Finals,
Speaker 1: set for Sunday, Argentina will be taking on France Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Bloomberg Quick Take, powered by more than journalists and analysts
Speaker 1: in more than one d twenty countries. I'm Amy Morris,
Speaker 1: This is Bloomberg. Nathan Thanks Amy six three. Now on
Speaker 1: Wall Street, I'm Nathan Hagar. This is Bloomberg Daybreak, and
Speaker 1: we turn again to the collapse of the cryptocurrency exchange
Speaker 1: f t X and what it means for the outlook
Speaker 1: for digital currencies. This week on Capitol Hill, the new
Speaker 1: CEO of f t X, John J. Ray, testified about
Speaker 1: the practices inside the company that he found disturbing that
Speaker 1: the absence of record keeping, employees would communicate invoicing and
Speaker 1: expenses on on slack, which is, you know, essentially a uh,
Speaker 1: you know, a way of communicating for chat rooms. And
Speaker 1: after John Ray testified to the House and the Senate,
Speaker 1: Bloomberg Shinali Basset spoke with Oklahoma Republican Congressman Frank Lucas
Speaker 1: about steps Congress can take to protect investors. Something I
Speaker 1: wonder about is when you listen to the hearing testimony
Speaker 1: of John Ray, the new CEO of f t X,
Speaker 1: are you finding that you can find any closure for
Speaker 1: your constituents or any path forward? I wish I could
Speaker 1: say that, but clearly this is a multi bid indollar
Speaker 1: mess that's going to continue. When Mr Ray pointed out
Speaker 1: to us that the bookkeeping system was rudimentary off the
Speaker 1: shelf small business software being used to manage a multi
Speaker 1: billion dollar enterprise. When you discussed the lack of strong
Speaker 1: board management and the various enterprises, the ability of the
Speaker 1: CEO to loan himself money out of the company. Uh,
Speaker 1: it was horrified. But that's what this rings about. Get
Speaker 1: to the to the bottom of the mess so we
Speaker 1: can figure out how to make sure from Congress's perspective,
Speaker 1: this doesn't happen again. Has it changed your view of
Speaker 1: the entire crypto industry or do you view this as
Speaker 1: a one off of that. Well, I've always been a
Speaker 1: little suspicious of crypto, Not so much from the perspective
Speaker 1: of the professional investors, but there are a lot of
Speaker 1: little people out there who put their money into this
Speaker 1: who've been pulled in. I said in thirty two of
Speaker 1: my town meetings this summer, only invest the money you
Speaker 1: don't need. It's the wild West right now in crypto. Unfortunately,
Speaker 1: there was a gunfight and the investors may have lost.
Speaker 1: You asked him the hearing also why certain assets were
Speaker 1: left out of the bankruptcy. Do you feel that those
Speaker 1: assets should have been included. Well, ultimately, the investors will
Speaker 1: want as much of their money back as they can
Speaker 1: possibly get. And when Mr Ray could identify a billion
Speaker 1: dollars that they had pretty well tied down. But if
Speaker 1: public reports are really that needs six or seven billion
Speaker 1: may not be accounted for you. I'm very unnerved, and
Speaker 1: I also wanted to know because is the international nature
Speaker 1: hundreds some enterprises scattered around the world in ft X,
Speaker 1: how how that would act. Would would prudent regulators perhaps
Speaker 1: in the United States and other countries have assets and
Speaker 1: countries where perhaps the regulation one suppertinent they want to
Speaker 1: draw up on that. Those are all questions that ultimately
Speaker 1: will be answered. But it's important to people who put
Speaker 1: some maybe their life savings I hope not, but put
Speaker 1: real money into this what now appears to be a fraud.
Speaker 1: Among your peers on this committee, there seems to be
Speaker 1: a debate here about the role of the SEC when
Speaker 1: it comes to enforcement of the crypto industry and laying
Speaker 1: out the rules of the land here. What do you
Speaker 1: feel is the right role for the SEC versus the CFTC.
Speaker 1: As you've also previously spent time on the Agriculture Committee,
Speaker 1: chaired the Egg Committee. When we head Mr former Senator
Speaker 1: Corsign under Oath about his debaucle CFTC is a proactive entity.
Speaker 1: You come to them with ideas and concepts. They proactively
Speaker 1: make rules and regulations. Securities Exchange Commissioners are reactive. They
Speaker 1: come in after the fact. It's two different cultures, two
Speaker 1: different perspectives. We'll see when all this sorts out. The
Speaker 1: incoming chair amount of the Financial Services Committee, Pafrid McHenry,
Speaker 1: is very focused on bringing order to the crypto industry. Uh,
Speaker 1: we'll see what form that takes, but it will involve
Speaker 1: both and financial services. And we've got to make sure
Speaker 1: that this kind of a mess can't happen again. And
Speaker 1: that was Republican Congressman Frank Lucas of Oklahoma speaking with
Speaker 1: Bloomberg shin Alli Bassik. You can catch the full interview
Speaker 1: on Bloomberg dot com and on the Bloomberg terminal. Checking
Speaker 1: bitcoin right now, It's down eight tenths percent on the session.
Speaker 1: Just shove seventeen thousand, seven hundred. Bloomberg Daybreak is brought
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Speaker 1: We have your top stories of the morning, plus local
Speaker 1: headlines and a full checker market straight ahead. First, Bloomberg
Speaker 1: Meteorologist Rob Caroline Claudian dry this morning. Can't say that
Speaker 1: for the ride home this afternoon, with dealing with rain
Speaker 1: later in the city. Today, temperatures up to about forty five, rainy, breezy,
Speaker 1: Tonight forty five. Tomorrow rainy and breezy. The rain may
Speaker 1: be heavier time, especially Tomorrow morning high forty five to fifty.
Speaker 1: Sunshine returns on Saturday, high forty five. Sunday chilly Sunday
Speaker 1: with a higher thirty five to forty Rob Caroline with
Speaker 1: your weekend forecast on Bloomberg eleven three oh broadcasting live
Speaker 1: from the Bloomberg Interactive Broker Studio in New York. Bloomberg
Speaker 1: Elving Freedom to Washington, d C, Bloomberg ninety nine one
Speaker 1: to Boston, Bloomberg one O six one to San Francisco,
Speaker 1: Bloomberg nine sixty to the Country, Sirius XM to A
Speaker 1: one nineteen and around the globe the Bloomberg Business and
Speaker 1: Bloomberg Radio dot Com. This is Bloomberg Daybreak coming up
Speaker 1: on six thirty on Wall Street. Good morning, I'm Nathan
Speaker 1: Hagger and I'm Karen Moscow. We're just about three hours
Speaker 1: away from the open of US trading. Time to the
Speaker 1: Five Things that you need to notice start your day.
Speaker 1: Brought to you by I v k R Investment Advisers
Speaker 1: switched to Interactive Brokers for lowest cause, global trading and
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Speaker 1: i a first. The sell off continues this morning after
Speaker 1: the FED raised interest rates by another fifty basis points.
Speaker 1: At the same time, Chairman j. Powell is dampening hopes
Speaker 1: were a pivot to lower rates anytime soon. The inflation
Speaker 1: data received so far from October and November show a
Speaker 1: welcome reduction in the monthly pace of price increases, but
Speaker 1: it will take substantially more evidence to give confidence that
Speaker 1: inflation is on a sustained downward path. Chair Powell says
Speaker 1: the Fed will stay the course until the job is done.
Speaker 1: Mel Stocks stamp the two day winning Street Karen. Following
Speaker 1: those remarks from Chairman pal Sylvia Jablansi, the CEO of
Speaker 1: Defiance ct F, says, for investors, the FED share knocked
Speaker 1: the wind out of their sales. The market I think
Speaker 1: was disappointed by of Fed rhetoric because he talked a
Speaker 1: lot about moving that terminal right up to five point
Speaker 1: one per cent, but also downplaying the success that we're
Speaker 1: already seeing on the impacts of the work that they've done.
Speaker 1: Sylvia Jablonski with defined CTF says she was more optimistic
Speaker 1: about a Santa Claus rally before Powell's news conference. Well, Nathan,
Speaker 1: we have more policy decisions on the way. In Europe,
Speaker 1: the Bank of England has expected to follow the Fed
Speaker 1: with a half a point rate hike this morning, and
Speaker 1: in Switzerland, the Swiss National Bank also raised his benchmark
Speaker 1: rate by fifty basis points. In Asia, we're looking at
Speaker 1: week economic data, Karen, China's economy worsened in November before
Speaker 1: Beijing dropped its COVID zero policy. Retail sales contracted and
Speaker 1: industrial output missed estimates. And to Corporate News. Now, Nathan,
Speaker 1: we're Twitter owner Elon Muski is selling more shares of
Speaker 1: Tesla Bloomberg Steve Rappaport joins US Live with that story.
Speaker 1: Good morning, Steve, Good morning, Karen, and Nathan. The yupp.
Speaker 1: Elon Musk is offloading three point five billion dollars in
Speaker 1: Tesla shares this week, his latest sell off to raise
Speaker 1: cash for Twitter. Tesla stock is down this year as
Speaker 1: investors grow concerned about his purchase of the social media
Speaker 1: platform The Electric Automakers, valuation dropping below five hundred billion
Speaker 1: dollars for the first time in more than two years.
Speaker 1: Testla's troubles are costing Musk more than just money. He
Speaker 1: also lost his title as the richest person in the world.
Speaker 1: Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Okay, Steve, thanks.
Speaker 1: In a note on politics now, Senator Elizabeth Warren is
Speaker 1: announcing a bipartisan billing to cracking down on cryptocurrencies used
Speaker 1: in money laundering. The legislation would require crypto exchanges to
Speaker 1: verify customer identities as other financial institutions do. And that's
Speaker 1: the fine things you need to notice start your day.
Speaker 1: Brought to you I Interactive Brokers. We are watching shares
Speaker 1: of Tesla this morning. They're down one point eight percent
Speaker 1: in early trading. S ANDP futures also lower, down thirty
Speaker 1: eight points. That's down about nine tenths of upper sent
Speaker 1: Down futures down seven tenths of upper cent or two
Speaker 1: hundred thirty four points, and ASDAC futures down one and
Speaker 1: a quarter percent down a hundred fifty points straight ahead,
Speaker 1: your latest local headlines at a check a sports and
Speaker 1: this is Bloomberg. Thanks caring at sixty one on Wall Street.
Speaker 1: Let's bring an Amy Morris for look at what's going
Speaker 1: on in New York and around the world. Good morning Amy,
Speaker 1: Good morning Nathan. Investigators still trying to figure out what
Speaker 1: sparked that major fire at an NYPD warehouse in Brooklyn.
Speaker 1: Former NYPD Chief Terry Monahan says they don't expect anything
Speaker 1: to be salvageable, but they do still have some records.
Speaker 1: Everything to be documented in databases. At least what the
Speaker 1: evidence showed should be documented somewhere. It's just that physical
Speaker 1: evidence CRUs continue to look for hot spots, more than
Speaker 1: a day after the raging fire destroyed Biological Evidence Department
Speaker 1: vehicles and hundreds of confiscated e bikes. Uber drivers in
Speaker 1: New York will not be getting higher pay, and at
Speaker 1: least not yet. A judge has blocked the Taxi and
Speaker 1: Limousine Commission from raising the pay of ride hailed drivers,
Speaker 1: while a lawsuit by Uber is pending. Uper argues the
Speaker 1: pay raise would force them to raise fares. Driver advocates
Speaker 1: tell the New York times they're stunned, the court would
Speaker 1: temper rarely blocked those races. New Jersey Transit officials developing
Speaker 1: a no ride list for violent passengers who assault transit workers.
Speaker 1: A year ago, passengers who assaulted employees would face steep fines,
Speaker 1: but now the agency is working on a policy to
Speaker 1: ban disorderly writers from the transit system, including a permanent
Speaker 1: band for any passengers who use deadly weapons. The House
Speaker 1: has passed short term government funding bill to push a
Speaker 1: government shutdown deadline back a week. On this vote, the
Speaker 1: yeas are two hundred and twenty four and the nays
Speaker 1: are two hundred and one. The motion is adopted. It
Speaker 1: funds the government until December twenty three. The short term
Speaker 1: bill now goes to the Senate. The FBA says there's
Speaker 1: a nationwide shortage of amasa sillin. The popular antibiotic is
Speaker 1: in high demand because of more respiratory viruses in the US.
Speaker 1: Officials a part of the problem supply chain issues. Global
Speaker 1: News twenty four hours a day on errand on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: in more than one hundred twenty countries. I'm any more
Speaker 1: as this is Bloomberg, Nathan, thanks Amy six thirty three
Speaker 1: on Wall Street time for the Bloomberg Sports upthing. Bront
Speaker 1: By try stayed out of here again as John Stanshower
Speaker 1: All right, Nathan, slow start to the next season, but
Speaker 1: coming on now in Chicago, looking for a fifth win
Speaker 1: in a row. The game went to overtown. Brusset high
Speaker 1: left against Caruso, certainly to the quarter crossover ocle breakers
Speaker 1: Town the three Shilen brunt Si puts takes up by nine,
Speaker 1: which twenty seven point nine ago in overtime, and that
Speaker 1: should be it. In the Windy City Wow ESPN New
Speaker 1: York nixt beat the Balls on one point for Julius
Speaker 1: Randall and Brunson scored thirty r J Barrett at it
Speaker 1: twenty two. The Knicks of the worst three point shooting
Speaker 1: team in the NBA, and yet last night they made
Speaker 1: eighteen of thirty four. They're up to sixth place in
Speaker 1: the East as they oddly play the Bulls again tomorrow,
Speaker 1: also in Chicago, the night after the Knicks one or
Speaker 1: fifth in a row, the Rangers will try to do likewise,
Speaker 1: they host Toronto the Devil's Night try to end a
Speaker 1: three game, losing Street the host Philadelphia NFL Tonight forty
Speaker 1: Niners in Seattle nin there's one six in a row.
Speaker 1: A win tonight clinches them the NFC West. The Jets
Speaker 1: have made a change in their quarterback depth chard Zack Wilson,
Speaker 1: who went from first string all the way down to third,
Speaker 1: is now at least up to second, ahead of Joe Flacco,
Speaker 1: still behind Mike White, who will lead the Jets into
Speaker 1: a home game Sunday with Detroit. The Giants play the
Speaker 1: primetime game in Washington. The Commander is playing well despite
Speaker 1: all the turmoil surrounding their owner, Dan Snyder. Washington Post
Speaker 1: reports Snyder is moving towards moving forward with receiving offers
Speaker 1: from those interested in buying the team from him. At
Speaker 1: the World Cup France ended Moroccos Cinderella, Ron's a Sunday's
Speaker 1: final France against Argentina. John stashiell or Bloomberg Sports nap
Speaker 1: all right, John, Thanks and Bloomberg Sports was brought to
Speaker 1: you by Audie. Don't let someone else drive off in
Speaker 1: the outie model you've always wanted. Visit your local tri
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Speaker 1: on Wall Street. Bloomberg Radio is on the air from
Speaker 1: San Francisco to New York, London to Hong Kong. Let's
Speaker 1: check in with our global news team for some of
Speaker 1: the top stories heard on our three hundred affiliate radio
Speaker 1: stations around the world. I'm Steve Potus got kN X
Speaker 1: in Los Angeles. We're talking about the rising cost of
Speaker 1: write downs at Water Brothers Discovery. I'm Corney Donahoe on
Speaker 1: ktr H in Houston. Grocer say Plycross, gravy and butter
Speaker 1: are in short supplied this holiday season. I'm Gina Servetti
Speaker 1: and for k CBS and San Francisco, I'm reporting that
Speaker 1: Twitter has updated its private information policy, saying it will
Speaker 1: remove any tweets or accounts that share someone's live location
Speaker 1: going forward. I'm Kimberly Adams and on WBC in Boston.
Speaker 1: I'll be reporting on elon Musk selling more testing staff.
Speaker 1: I'm Stephen Carol and Bloomberg d a B Radio in London.
Speaker 1: We've been reporting on a bumper day of Central Bank
Speaker 1: decisions in Europe from Switzerland, Norway, the UK. On the Eurozone,
Speaker 1: I made Cory on ww w J in Detroit. I'm
Speaker 1: rewarding Ford in a Chinese company. You're thinking about building
Speaker 1: up batter required in Michigan. Those are some of the stories.
Speaker 1: Are hundred Bloomberg journalists and analysts are working on this
Speaker 1: morning around the world. It's almost six thirty seven on
Speaker 1: Wall Street. The following is an editorial from Bloomberg Opinion.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. In
Speaker 1: announcing plans to massively increase defense spending, Japan has embarked
Speaker 1: on a military transformation. The budget increases proposed by Prime
Speaker 1: Minister of Fumio Kashita last week would provide Japan's self
Speaker 1: defense forces with unprecedented resources around forty three trillion yen
Speaker 1: or fifteen billion dollars over the next five years. Given
Speaker 1: rising security challenges in the Pacific, Japan's ambition is bold
Speaker 1: and welcome. For the new spending to be truly effective, though,
Speaker 1: the government will need to make hard choices. While flashy
Speaker 1: weapons systems have appeal, purchases of emerging local technologies would
Speaker 1: allow the military to get more bang for its end.
Speaker 1: Maintaining military spending at this level will likely require higher
Speaker 1: taxes and painful spending cuts. The government must be able
Speaker 1: to assure citizens their money is being spent wisely. This
Speaker 1: editorial was written by the Bloomberg Editorial Board. For more
Speaker 1: Bloomberg opinion, please go to Bloomberg dot com, Slash Opinion
Speaker 1: or O P I N. Go on the Bloomberg Terminal.
Speaker 1: This has been Bloomberg Opinion. Listen for Bloomberg opinion editorials
Speaker 1: every weekday. At this time, terminal customers can read more
Speaker 1: at O P I N and go. It is six
Speaker 1: thirty eight on Wall Street. Just a head on Bloomberg Daybreak,
Speaker 1: We'll take a look at the ft X fallout after
Speaker 1: two days on Capitol Hill. How are lawmakers feeling about cryptocurrency,
Speaker 1: if any minds changed. Plus, we'll get an update on
Speaker 1: efforts to avoid a government shut down on Capitol Hill
Speaker 1: and a new crackdown on TikTok in the Senate. Bloomberg
Speaker 1: Government Congressional Border. Jack Fitzpatrick joins us. Next. This is
Speaker 1: Bloomberg Markets, headlines and breaking news twenty four hours a
Speaker 1: day at Bloomberg dot Com, the Bloomberg Business at and
Speaker 1: at Bloomberg Picktake. This is a Bloomberg Business Flash, and
Speaker 1: I'm Karen Moscow stops following this morning following the Federal
Speaker 1: Reserve rate decision and make it to the First Word
Speaker 1: Breaking news desk for today's morning call. Here's Bill Maloney Doll,
Speaker 1: good morning, and good morning, Karen. That's right. US futures
Speaker 1: are under pressure right now as the Fed set will
Speaker 1: go higher for longer. Yesterday, deaf Future Crontaly down two points,
Speaker 1: s to b Strop forty and and Nasdak features are
Speaker 1: lower by one five. The US ten year old at
Speaker 1: three point four nine percent, Gold is down twenty nine
Speaker 1: Oil is little changed, and bitcoin is trading lower by
Speaker 1: point percent. Hong Kong fell one point six percent overnight,
Speaker 1: while up markets are also trading in the red this
Speaker 1: morning and back in the US on the economic Frinday
Speaker 1: thirty jobs claims, retail sales, Empire Manufacturing, and the Philly Fed.
Speaker 1: In other news, according to a filing, Elon Musk sold
Speaker 1: it as much as twenty two million shares of Tesla
Speaker 1: this week and wrapping things up, Marriott was cut to
Speaker 1: equate over at Barkley's, Cognisant cuts underweight to JP Morgan,
Speaker 1: and A T and T was cut to equal weight
Speaker 1: over at Morgan Stanley Live from the first breaking news
Speaker 1: discom Bill Maloney care right, Bill, thank you to hear
Speaker 1: live breaking news over your Bloomberg type squawk on your terminal,
Speaker 1: A s U, A w K. That's a Bloomberg business flash.
Speaker 1: Now here's Amy Morris with Moore unless going on around
Speaker 1: the world. Amy, thank you, Karen. The Senate wants to
Speaker 1: ban the use of TikTok on government bones and devices.
Speaker 1: A bill passed with no objections last night still needs
Speaker 1: to be passed by the House and signed by President Biden.
Speaker 1: Chances are dimming that Congress will take up a multibillion
Speaker 1: dollar package to renew a cluster of business tax breaks
Speaker 1: and provide a more generous child tax credit before lawmakers
Speaker 1: leave for the holidays. And sports in the NBA, the
Speaker 1: Wizards and Warriors lose the Knicks when the World Cup
Speaker 1: Finals set for Sunday Argentina. Take and on France Global
Speaker 1: News twenty four hours a day on Errand on Bloomberg
Speaker 1: Quick Take, powered by more than twent journalists and analysts
Speaker 1: in more than one d twenty countries. I'm Amy Moore,
Speaker 1: as this is Bloomberg. Karen right, Amy, thank you, And
Speaker 1: it is six forty two on Wall Street. Let's turn
Speaker 1: to news and science and technology now with the Bloomberg
Speaker 1: and j I T STEM Report. It is brought to
Speaker 1: you by New Jersey Institute of Technology and j I
Speaker 1: T offers New Jersey's first undergraduate degree in fintech, tech
Speaker 1: driven finance focused. What will you make at n j
Speaker 1: I T. Learn more at n j I T dot
Speaker 1: E d U slash fintech and here's just making news
Speaker 1: and science, technology, engineering, and math. The Department of Justice
Speaker 1: as the US has seized dozens of Internet domains and
Speaker 1: charge six people in a sting intended to bring down
Speaker 1: a network of cyber attack for higher services. The websites
Speaker 1: were used to launch or attempt to launch millions of
Speaker 1: so called d d o S attacks around the world,
Speaker 1: short for distributed denial of service d d o S
Speaker 1: attacks direct huge amounts of junk Internet track if I
Speaker 1: had a website or computer network, to knock it offline.
Speaker 1: For the fourth time this year, Elon musk Is unloaded
Speaker 1: Tesla stock. The Electric Carmakers CEO sold almost three point
Speaker 1: six billion dollars worth of shares this week. That stock
Speaker 1: has sponged this year. Investors are concerned that musk forty
Speaker 1: billion dollar purchase of Twitter could have an impact on
Speaker 1: Tesla and Forward, and a Chinese company may build a
Speaker 1: battery factory in Michigan despite current US China tensions. The
Speaker 1: automaker and c at L are trying to take advantage
Speaker 1: of a complex arrangement to read new tax benefits. Bloomberg
Speaker 1: News has learned that Virginia is also a possible home
Speaker 1: for the multibillion dollar facility, and as the Bloomberg n
Speaker 1: j I t STEM report Nathan, Well, that'll be one
Speaker 1: to watch. Thank you, Karen. We're coming up to on
Speaker 1: Wall Street and it's some time to check what's going
Speaker 1: on in d C. Some of the top stories in
Speaker 1: our nation's capital include the ongoing fallout on Capitol Hill
Speaker 1: over f t X, the Senate voting to band TikTok
Speaker 1: on government owned phones, the House passing a one week
Speaker 1: stop gap to avoid a government shutdown, and President Biden
Speaker 1: encouraging fair elections in a meeting with African leaders. Let's
Speaker 1: bring in Bloomberg Government congressional reporter Jack Fitzpatrick's for more
Speaker 1: on some of these stories. Of course, Jack, we've been
Speaker 1: following the f t X hearings very closely over the
Speaker 1: last two days on Capitol Hill, have you heard any
Speaker 1: minds change from lawmakers about crypto? Not really among the enthusiasts,
Speaker 1: the enthusiasm is still there. It may be the case
Speaker 1: that some Democrats who had concerns see those concerns as
Speaker 1: ramped up. Brad Sherman, the Democrat from California, described crypto
Speaker 1: as a garden of snakes. But some of the people
Speaker 1: who work on these issues on the Republican side are
Speaker 1: still seemed to be pretty enthusiastic. The Senator Cynthia Lummis
Speaker 1: uh sort of went on defense and said, you know,
Speaker 1: there's a separate conversation about f t X versus broadly
Speaker 1: about cryptocurrencies. She's worked on a bill regulating cryptocurrency. Um
Speaker 1: Patrick McHenry, who's in line to be the Financial Services
Speaker 1: Committee chair in the House next year, Republican from North Carolina,
Speaker 1: that he's still a believer in digital assets. So it
Speaker 1: doesn't seem like the kind of situation that's fundamentally changed,
Speaker 1: you know, where the support and where the concern is.
Speaker 1: Maybe it just uh ramped up the pressure for those
Speaker 1: who already had concerns. Well, where does this leave the
Speaker 1: possibility for further regulation around crypto. Are we saying that
Speaker 1: same kind of bipartisan split when it comes to that. Uh,
Speaker 1: you know, there has been some bipartisan work on regulation. Uh.
Speaker 1: Senator Lamas has worked with and and proposed a bill
Speaker 1: with Senator Kristen gillibrand, a Democrat uh to set up
Speaker 1: a regulatory framework. Um. That that's one of a few
Speaker 1: things that have been proposed. It's not the simplest conversation
Speaker 1: to get into, and it's difficult to see exactly how
Speaker 1: Congress works together with very narrow majorities in the House
Speaker 1: and Senate with different parties in the next Congress, So
Speaker 1: you can't exactly guarantee a lot of progress on this
Speaker 1: issue going forward. But there definitely are still key lawmakers
Speaker 1: who are interested in taking this up. They're not just
Speaker 1: trying to wash their hands of it and say, well,
Speaker 1: clearly crypto is terrible, we have to simply crack down. Uh.
Speaker 1: There there probably is some bipartisan interest still in in
Speaker 1: creating that kind of regulatory framework. Speaking of bipartisan jack,
Speaker 1: we don't often get to say bipartisan passage in the Senate,
Speaker 1: but man, did we see that when it comes to TikTok. Yes. Uh. So,
Speaker 1: you know, on unimportant bills, usually they managed to pass
Speaker 1: things by unanimous consent in the Senate. Uh. That might
Speaker 1: be renaming a post office or something along those lines.
Speaker 1: They actually took up and read too, by unanimous consent,
Speaker 1: pass a bill to ban TikTok on government owned phones. Uh.
Speaker 1: Clearly a bipartisan and unanimous reflection of the concerns about
Speaker 1: the Chinese owned app being on government phones. The security
Speaker 1: concerns about that pretty significant. Uh. So that that was
Speaker 1: relatively sudden in terms of it coming up to the
Speaker 1: Senate floor and being passed, but clearly that that at
Speaker 1: least that limited measure on government owned phones was something
Speaker 1: there's a lot of support for. And it looks like
Speaker 1: where you've got a limited measure when it comes to
Speaker 1: keeping the government funded. What's the update on averting a
Speaker 1: government shutdown? Well, they're buying an extra week. Tomorrow night,
Speaker 1: Friday night is the deadline currently they are. The House
Speaker 1: just passed a week long stop gap. The Senate is
Speaker 1: supposed to take that up probably today, unless they want
Speaker 1: to work late and wait until the last minute do
Speaker 1: it Friday, but likely today. Uh. They have a framework
Speaker 1: agreement on how to do a real government funding bill. UH.
Speaker 1: And so now they essentially just need to finish writing it,
Speaker 1: which takes a little bit of time, but the goal
Speaker 1: is to be able to do that and enacted by
Speaker 1: December twenty three, next Friday. UH. And lately it's been
Speaker 1: good news in terms of the progress on that. So
Speaker 1: they're buying an extra week and crossing their fingers that
Speaker 1: they can finish what I'm sure would be more than
Speaker 1: a two thousand page bill by them about a minute
Speaker 1: left here, Jack. President Biden has been focused the last
Speaker 1: couple of days on Africa, the Leader's Summit. What's some
Speaker 1: of the highlights from that, Well, they emphasized fair elections.
Speaker 1: Jake Sullivan brought this up and said that it's not
Speaker 1: about a specific warning, but they wanted to express that
Speaker 1: there are elections coming up and they want to emphasize
Speaker 1: the importance of free and fair elections. A lot of
Speaker 1: talk about investment, about more than fifty billion dollars in
Speaker 1: US investment in Africa over the next three years. UH.
Speaker 1: And of course you you saw the presidents stay at
Speaker 1: the hotel where this happened to watch the Morocco France
Speaker 1: World Cup game. Uh not not exactly the most important part,
Speaker 1: but investment and free and fair elections really the big
Speaker 1: two prongs there. Yeah, and you know, Morocco is part
Speaker 1: of Africa, of course, so the focus certainly there as well.
Speaker 1: Bloomberg Government Congressional reporter Jack Fitzpatrick joining us live from
Speaker 1: the nation's capital. Read more on all these stories at
Speaker 1: Bloomberg dot com or on the Bloomberg terminal, and follow
Speaker 1: all the latest on Bloomberg Radio in Washington, Bloomberg and
Speaker 1: one oh five point seven FM, HD two S ANDP
Speaker 1: futures right now down thirty eight points, Staff futures down
Speaker 1: two hundred forty one and nastack futures while we're by
Speaker 1: a hundred forty nine points. You're listening to Bloomberg Daybreak, Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape.
Speaker 1: This is a Bloomberg Business Flash, but I'm Karen Moscow.
Speaker 1: Futures are lower this morning following the Federal Reserve interest
Speaker 1: rate decision, and we check the markets all day long
Speaker 1: here on Bloomberg Radio. S and P futures. They're done
Speaker 1: about nine tens of percent, down about thirty eight points.
Speaker 1: Down features down seven tenths of upper center two hundred
Speaker 1: thirty four points. And Nasdack future is really leading to
Speaker 1: declines here, down one at a quarter percent. They're down
Speaker 1: about one forty eight points. The attacks in Germany is
Speaker 1: down one point one percent. Ten year treasury up two
Speaker 1: thirty seconds, you know, three point four six percent, and
Speaker 1: they yield on the two year four point to two percent.
Speaker 1: Nine Max scrude oil is up tenth of per cent,
Speaker 1: or eleven cents at seventy seven dollars, thirty nine cents
Speaker 1: of barrel co MIxS goal down one point six percent,
Speaker 1: down twenty nine dollars seventy cents a seventeen eighty nine
Speaker 1: twenty announced the Euro one point six to one against
Speaker 1: a dollar, British pound one point to three four three. Again,
Speaker 1: it's at one thirties six point six zero. Bitcoin is
Speaker 1: down six tenths. It's said about seventeen thousand, seven hundred dollars,
Speaker 1: and that said Bloomberg Business Flash Nathan, all right, Karen,
Speaker 1: thank you to six fifty six on Wall Street. Bloomberg
Speaker 1: Surveillance is up next. First, we want to take a
Speaker 1: look at some of the stocks moving in the pre
Speaker 1: market with Bloomberg Radio and TV Markets correspondent Pretty Gupta
Speaker 1: with a fed driven sell off this morning. Creedy still though,
Speaker 1: we got to talk about Tesla and the sell off
Speaker 1: from once again from Elon Musk. Some individual stories, Nathan.
Speaker 1: They say that this holiday time things are going to
Speaker 1: slow down. That's kind of when something sneak past us
Speaker 1: or attempt to. Nevertheless, Tesla shares t s L as
Speaker 1: your ticker down one point six percent in the pre market.
Speaker 1: This comes after the CEO Elon Musk, still three point
Speaker 1: six billion dollars worth of Tesla stock. This is fourth
Speaker 1: time selling shares this year. And on top of that,
Speaker 1: Cathy would also bought some shares in the e V makers.
Speaker 1: I remember we've been talking law about how Elon Musk
Speaker 1: is going to be financing some of the Twitter debt.
Speaker 1: Perhaps this is a part of his one of his moves,
Speaker 1: but nevertheless, his personal wealth is certainly taking a hit
Speaker 1: and he is looking for that cash and Tesla NEP
Speaker 1: shares as a result taking that hit this morning down
Speaker 1: at one point six percent. Another mover you want to
Speaker 1: keep an eye on is Novavax n V a X
Speaker 1: shares down about ten percent in the pre market. This
Speaker 1: is a biotech firm offering a hundred and twenty five
Speaker 1: million dollars worth of shares and on hive million dollars
Speaker 1: worth of convertible bonds, saying it's agreement to supply COVID
Speaker 1: vaccines to the UK have been halves a little bit
Speaker 1: of share dilution there in addition to some of the
Speaker 1: UK covid news as well that you are starting to remember.
Speaker 1: Novavax was one of the more later contenders to get
Speaker 1: approved for the COVID vaccine, including out after I say,
Speaker 1: the fives vaccine and the Maderna vaccine as well as Johnson.
Speaker 1: Johnson's Novavac didn't quite get in on that boom that
Speaker 1: others did as well. Nathan, we can't uh start the morning.
Speaker 1: We'll talking about bitcoin in some capacity. Twenty for me
Speaker 1: to the bitcoin minor Core Scientific CEO r z is
Speaker 1: your taker. Up about thirty four percent in the pre market.
Speaker 1: A massive move here for one of its largest creditors,
Speaker 1: be Riley Financial issued an open letter on Wednesday laying
Speaker 1: out a proposal for the company to avoid bankruptcy, basically
Speaker 1: giving them a lifeline after the chaos of f t
Speaker 1: X and all the ripple effects there, so some massive
Speaker 1: news on that front. Nathan, I'm gonna leave you with
Speaker 1: this last one. Verizon VZ is your Taker shares popping
Speaker 1: about one point four percent. Morgan Stanley is the winner here,
Speaker 1: upgrading it to overweight and downgrading A T and T
Speaker 1: on the other hand, to equal weight, saying in a
Speaker 1: note that North American telecom services sector faces a bounced
Speaker 1: outlook heading into next year. But Verizon is very clearly
Speaker 1: their picks. So VZ up one point two percent, and
Speaker 1: then you have to look at A T and T
Speaker 1: as well, and those shows actually down one seven percent.
Speaker 1: The taker is just the letter T. Some Morgan Stanley
Speaker 1: moving the market this morning. Yeah, interesting to see some
Speaker 1: analyst moves uh under the hood of the broad sell
Speaker 1: off that we've got after the FED decision. Bloomberg Radio
Speaker 1: and TV Markets correspondent Credy Gupta with us as always
Speaker 1: this morning, futures as a whole down thirty six points
Speaker 1: for the SMP futures down. Futures are lower by two
Speaker 1: or twenty four points. NASSECT futures down one hundred forty
Speaker 1: two points. This is Bloomberg Daybreak. I'm Nathan Hager alongside
Speaker 1: Karen Moscow. It is six fifty nine on Wall Street.
Speaker 1: Bloomberg Surveillance starts right now by from the financial capital
Speaker 1: of the world, broadcasting across the globe. This is w
Speaker 1: b b R, New York Bloomberg. He living Frio. I
Speaker 1: wouldn't see us considering RAID cuts until the committee is
Speaker 1: confident that inflation is moving