WEBVTT - Bloomberg Daybreak: December 15, 2022 - Hour 2 (Radio) 0:00:02.520 --> 0:00:05.720 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:05.840 --> 0:00:09.360 Tape right for Thursday, December fifteen two. Coming up, The 0:00:09.440 --> 0:00:13.960 Shower stocks continue their sell off following j. Powell's hawkish tone. 0:00:14.320 --> 0:00:16.520 Now it's the E C D and Bank of England's 0:00:16.520 --> 0:00:20.560 turn to make great decisions. China's economy weekend before the 0:00:20.600 --> 0:00:24.520 government dropped COVID zero and Elon Muska dumps more shares 0:00:24.520 --> 0:00:27.800 of Tesla. I'm maybe Morris. New Jersey Transit will spend 0:00:27.880 --> 0:00:32.080 ninety seven million dollars for new transportation, and investigators are 0:00:32.120 --> 0:00:35.800 searching for the cause of that NYPD warehouse fire in Brooklyn. 0:00:36.120 --> 0:00:37.960 I'm John Stave Shower and sports the next made it 0:00:38.000 --> 0:00:40.320 five straight wins. They beat the Bowls in overtime. The 0:00:40.440 --> 0:00:45.279 Rangers seek a fifth straight win tonight. That's all train 0:00:45.400 --> 0:00:49.360 ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York, 0:00:49.560 --> 0:00:54.240 Bloomberg one, Washington d C, Bloomberg one oh six one, Boston, 0:00:54.520 --> 0:00:59.240 Bloomberg nine sixties and Francisco Sirius XM one nineteen and 0:00:59.320 --> 0:01:02.120 around the world Old on Bloomberg Radio dot Com and 0:01:02.240 --> 0:01:09.040 via the Bloomberg Business app. Good morning, I'm Nathan Hagrim 0:01:09.319 --> 0:01:12.640 and I'm Kared Moscow. US Dock Index futures are lower 0:01:12.800 --> 0:01:15.560 this morning. We checked the markets all day longing here 0:01:15.600 --> 0:01:18.959 on Bloomberg radios, and P futures down forty three points. 0:01:19.000 --> 0:01:21.520 That's down one point one percent. Down Future is down 0:01:21.520 --> 0:01:24.160 eight tens of upper cent or two hundred sixty seven points, 0:01:24.400 --> 0:01:26.759 and NASTAC future is falling down a hundred seventy three 0:01:26.760 --> 0:01:29.000 points or one and a half percent. The decks in 0:01:29.040 --> 0:01:31.200 Germany's down one point two percent, and the ten year 0:01:31.200 --> 0:01:33.800 treasury down three thirty seconds here three point four nine 0:01:33.840 --> 0:01:37.520 percent Nathan Karen. This sell off continues after the Fed's 0:01:37.600 --> 0:01:40.800 final policy decision of the year. As expected, the Central 0:01:40.800 --> 0:01:44.399 Bank raised interest rates another fifty basis points, but German J. 0:01:44.520 --> 0:01:47.000 Powell is pushing back at market hopes for a pivot 0:01:47.040 --> 0:01:50.440 to lower rates anytime soon. Price stability is the responsibility 0:01:50.480 --> 0:01:53.000 of the Federal Reserve and serves as the bedrock of 0:01:53.000 --> 0:01:57.680 our economy. Without price stability, the economy doesn't work for anyone. 0:01:57.880 --> 0:02:01.080 In particular, Without price stability, we will not achieve a 0:02:01.120 --> 0:02:04.480 sustained period of strong labor market conditions that benefit all. 0:02:04.840 --> 0:02:07.000 Jair J. Pal says the FED plans to stay the 0:02:07.040 --> 0:02:10.119 course until the job is done well stocks and after 0:02:10.160 --> 0:02:12.880 two day winning streak after Powell's or marks Nathan but 0:02:13.000 --> 0:02:16.760 Guggenheim Chief investment officer Scott Miner says Powell's tone should 0:02:16.840 --> 0:02:20.440 not have come as a surprise. We knew they had 0:02:20.480 --> 0:02:23.840 to be very hawkish, and the reason they had to 0:02:23.840 --> 0:02:28.040 be hawk issues that you know, financial conditions have loosened 0:02:28.080 --> 0:02:31.200 pretty dramatically over the last six weeks. Uh, you know, 0:02:31.200 --> 0:02:35.880 the stock markets up substantially, rates her down meaningfully and 0:02:36.000 --> 0:02:38.200 so um. You know, the FED I think felt that 0:02:38.280 --> 0:02:40.880 it needs to lean into that. And those are marks 0:02:40.880 --> 0:02:43.959 from Scott Minored at Guggenheim are being echoed by KPMG 0:02:44.120 --> 0:02:47.320 chief economist Dianne Swunk. They are more than willing to 0:02:47.400 --> 0:02:50.440 start coming rights if inflation comes down more rapidly. They 0:02:50.520 --> 0:02:53.320 have to send this message right now, and I think 0:02:53.600 --> 0:02:56.079 that's what they stand. They will be a political Panada. 0:02:56.440 --> 0:02:59.000 I have no doubt about j. Powell's ability to handle 0:02:59.080 --> 0:03:02.519 the politics, give what he's already been through. KPMGES, Diane 0:03:02.560 --> 0:03:05.119 Swank and Scott Minor joined us on a special edition 0:03:05.160 --> 0:03:08.440 of Bloomberg Surveillance following the FED decision, and we have 0:03:08.639 --> 0:03:11.519 even more policy decisions scaring two big ones on the 0:03:11.560 --> 0:03:13.880 way out of Europe. We begin our team coverage with 0:03:13.919 --> 0:03:16.919 Bloomberg's Lizzie Burden in London, where the Bank of England 0:03:17.040 --> 0:03:19.600 is expected to follow the FED with its own fifty 0:03:19.639 --> 0:03:22.440 basis point hike. For me, what's the most interesting thing 0:03:22.480 --> 0:03:25.120 today will be the vote split, because potentially it's going 0:03:25.200 --> 0:03:27.119 to see a lot about where we had from here 0:03:27.480 --> 0:03:31.120 in terms of tightening. Bank of America JP Morgan and 0:03:31.320 --> 0:03:34.399 Nomura have pointed to the possibility of a four way 0:03:34.520 --> 0:03:38.000 split between seventy five fifty twenty five and no hike 0:03:38.080 --> 0:03:40.000 at all. It would be the first time in the 0:03:40.040 --> 0:03:44.800 bank's independent history and that might seem chaotic, but really 0:03:44.920 --> 0:03:47.760 some welcome it as a confirmation that there's no groupthink 0:03:47.920 --> 0:03:51.040 on thread Needle Street. Bloomberg's Lizzie Burden reports the BOE 0:03:51.200 --> 0:03:54.040 decision comes down less than one hour from now, and 0:03:54.240 --> 0:03:57.560 just over an hour after the BOE announcement, Nathan will 0:03:57.600 --> 0:04:00.520 hear from the European Central Bank and Bloomberg's Ria Today. 0:04:00.520 --> 0:04:03.880 O continues our team coverage with details on that from Frankfurt, 0:04:04.120 --> 0:04:06.040 there was this debate, would it be fifty would it 0:04:06.080 --> 0:04:08.480 be seventy five, But of course we can't ignore that 0:04:08.640 --> 0:04:11.560 this is coming off the back of the Fed going 0:04:11.840 --> 0:04:16.200 for fifty. The animal spirits also in Frankfort suggesting this 0:04:16.400 --> 0:04:20.320 is now inclined towards fifty basis points that would take 0:04:20.360 --> 0:04:24.000 the deposit rate to two percent, and of course signal 0:04:24.120 --> 0:04:28.279 discontinuation of hikes from the central bank. And Bloomber's Maria 0:04:28.360 --> 0:04:30.200 today O says all but three of the fifty one 0:04:30.279 --> 0:04:33.400 economist surveyed by Bloomberg predict a fifty basis point move 0:04:33.480 --> 0:04:36.080 from the e c B. Fifty basis points seems to 0:04:36.080 --> 0:04:38.240 be a theme for central banks. Karen, We've heard from 0:04:38.279 --> 0:04:40.400 the Swiss National Bank this morning as well, and they 0:04:40.520 --> 0:04:43.560 raised rates, you guessed at fifty basis points, bringing the 0:04:43.640 --> 0:04:46.760 benchmark in Switzerland to one percent. All right, let's turn 0:04:46.800 --> 0:04:49.880 to Asia now, Nathan, We're economic data are in focus. 0:04:50.040 --> 0:04:52.880 Fresh data out of Beijing shows growth slow to November. 0:04:52.960 --> 0:04:56.520 That's before the government dropped as COVID zero policy. Bloomberg 0:04:56.560 --> 0:04:59.520 Dabrick Asia anchor Brian Curtis has more from Hong Kong 0:04:59.720 --> 0:05:03.000 re hail sales contracted five point nine percent in November 0:05:03.040 --> 0:05:05.040 from a year ago, and that was worse than the 0:05:05.080 --> 0:05:08.320 four percent to climb. In a Bloomberg survey, industrial output 0:05:08.520 --> 0:05:11.120 grew two point two percent from a year ago. That 0:05:11.279 --> 0:05:14.720 also missed the estimate. COVID outbreaks across the country meant 0:05:14.800 --> 0:05:18.040 the people went out less and spent less money. Economists 0:05:18.080 --> 0:05:23.080 expect more disruption in the coming months. Brian Curtis, Bloomberg Radio. Okay, Brian, 0:05:23.120 --> 0:05:25.279 thank you. In corporate news this morning, we're watching shares 0:05:25.360 --> 0:05:28.160 of Tesla. They're down another two point six percent in 0:05:28.200 --> 0:05:31.320 the pre market after Elon Musk sold another chunk of 0:05:31.400 --> 0:05:34.359 his steak. It's the latest Live with Bloomberg. Steve Rappaport. 0:05:34.400 --> 0:05:36.640 Good morning, Steve, Good morning Nathan and Karen. Well, it 0:05:36.680 --> 0:05:38.920 wouldn't be a newsday without a mention of Musk and 0:05:39.000 --> 0:05:41.960 his latest move. The Tesla founder unloading another three point 0:05:42.000 --> 0:05:45.240 six billion dollars in company shares. Musk already sold off 0:05:45.320 --> 0:05:48.320 eighteen billion in stock this year to finance his acquisition 0:05:48.360 --> 0:05:51.679 of Twitter. The electric automaker. Stock plummeted fifty five percent 0:05:51.839 --> 0:05:55.240 this year as investors grow concerned about Musk purchasing the platform, 0:05:55.520 --> 0:05:58.360 and with this year's sell off, Tesla's valuation dropped below 0:05:58.440 --> 0:06:02.200 five hundred billion for the time since November. Live in 0:06:02.279 --> 0:06:05.400 New York, I'm Steve Rappaport, Bloomberg Day Break, Right, Steve, 0:06:05.480 --> 0:06:07.599 thank you. In the fallow up continues in the crypto 0:06:07.760 --> 0:06:10.840 space after the collapse of f t X, Democratic Senator 0:06:10.880 --> 0:06:13.560 Elizabeth Moore and is announcing you by partisan bill aimed 0:06:13.560 --> 0:06:16.560 to crack down on digital currencies used in money laundering. 0:06:17.040 --> 0:06:19.880 This is all about what we need to do right now, 0:06:20.360 --> 0:06:23.320 and we need to stop the money laundering. We need 0:06:23.400 --> 0:06:26.600 to stop the cheating that's going on in crypto, and 0:06:26.680 --> 0:06:28.919 that means just getting a set of rules in place. 0:06:29.520 --> 0:06:33.040 Same kind of transaction, same kind of risk, means we've 0:06:33.080 --> 0:06:35.640 got to have the same rules, and it also means 0:06:35.800 --> 0:06:38.440 we've got to have a cop on the beat who 0:06:38.560 --> 0:06:43.280 was well enough financed. And if Senator Wawren's bill becomes law, 0:06:43.360 --> 0:06:47.120 crypto exchanges would be required to verify customer identities the 0:06:47.160 --> 0:06:50.919 way banks and other financial institutions already do, and futures 0:06:50.960 --> 0:06:53.680 are lower. This morning, straight ahead, we have your latest 0:06:53.800 --> 0:06:58.720 local headlines, plus a check of sports, and this is Bloomberg. 0:07:03.160 --> 0:07:05.320 Thank you. Karen at six oh seven on Wall Street, 0:07:05.360 --> 0:07:07.720 thirty four degrees in Central Park. Grab that umbrella. We 0:07:07.760 --> 0:07:09.920 got rain moving in this afternoon. We're head to the 0:07:10.000 --> 0:07:14.000 mid forties, low forties early tonight, but temperatures are gonna 0:07:14.520 --> 0:07:16.840 rise through the overnight hours of the rain continues. Amy 0:07:16.880 --> 0:07:19.280 Morris is here with what else is going on in 0:07:19.560 --> 0:07:22.200 wet New York City. At least the'll be wet later, Amy, 0:07:22.840 --> 0:07:25.200 Oh yes it will, Nathan, thanks so much. The courts 0:07:25.400 --> 0:07:28.880 also will not be stepping into immediately stopped New York 0:07:29.000 --> 0:07:32.080 Mayor Eric Adams plans to force mentally ill people from 0:07:32.160 --> 0:07:35.160 the streets and into treatment. The judge found no evidence 0:07:35.200 --> 0:07:38.000 that irreparable harm would occur before he issues his final 0:07:38.120 --> 0:07:40.720 ruling on the practice in a couple of weeks. Advocates 0:07:40.760 --> 0:07:43.840 for people with mental illnesses want that plan stopped. They 0:07:43.880 --> 0:07:46.840 say police officers should not be first responders for those 0:07:46.880 --> 0:07:50.280 who need healthcare. Crews are still looking for hot spots. 0:07:50.360 --> 0:07:53.160 Investigators still looking for the cause of a huge fire 0:07:53.200 --> 0:07:56.760 at an NYPD evidence warehouse in Brooklyn. Former police Chief 0:07:56.840 --> 0:08:00.200 Terry Monahan says everything has been destroyed. They really don't 0:08:00.240 --> 0:08:03.360 even expect anything to be salvage going there. Obviously, they're 0:08:03.360 --> 0:08:06.320 not going to oversaw until they get inside and start 0:08:06.400 --> 0:08:08.920 looking around on Hansas items in the warehouse. We're going 0:08:09.000 --> 0:08:11.160 to be destroyed before the blaze, but some of the 0:08:11.240 --> 0:08:14.640 eleven thousand barrels in the facility are related to cold cases. 0:08:15.040 --> 0:08:18.480 New Jersey Transit spending ninety seven million dollars to buy 0:08:18.520 --> 0:08:22.640 a new ferry, sixty new busses, and rebuild thirty five locomotives, 0:08:22.880 --> 0:08:25.560 and jay dot Com reports the board exercised an option 0:08:25.680 --> 0:08:29.400 with New Flyer to buy sixty more articulated buses. They 0:08:29.440 --> 0:08:32.320 awarded a seven million dollar contract for a new ferry 0:08:32.400 --> 0:08:35.360 from Hornblower Yacht, and they agreed to a thirty four 0:08:35.440 --> 0:08:39.080 million dollar contract with Caterpillar for the new locomotives. New 0:08:39.200 --> 0:08:41.880 Jersey Governor Phil Murphy is urging parents to get their 0:08:41.960 --> 0:08:46.360 young children updated coronavirus boosters. Murphy says children ages six 0:08:46.480 --> 0:08:49.200 months to five years old are eligible now to receive 0:08:49.320 --> 0:08:52.360 the updated vibulent vaccine, but only five and a half 0:08:52.440 --> 0:08:55.240 percent of New Jersey children between six months and four 0:08:55.320 --> 0:08:59.760 years old have completed their primary series. Russian cosmonauts canceled 0:09:00.000 --> 0:09:03.760 air spacewalk yesterday they noticed a leak outside their spacecraft. 0:09:04.160 --> 0:09:07.280 NASA officials talked about it We noticed a visible stream 0:09:07.320 --> 0:09:09.839 of flakes coming from the aft of the SOYUS near 0:09:09.880 --> 0:09:14.080 the instrumentation and Propulsion module that was indicatives of the leak. 0:09:14.480 --> 0:09:18.480 The SOYUS spacecraft is ducked at the International Space Station 0:09:18.920 --> 0:09:21.439 and Russia's trying to figure out what is the leak 0:09:21.559 --> 0:09:24.480 and what caused the leak. The Global News twenty four 0:09:24.520 --> 0:09:26.839 hours a day on air end on Bloomberg Quick Take, 0:09:26.920 --> 0:09:30.360 powered by more than twenty journalists and analysts and more 0:09:30.400 --> 0:09:33.719 than one hundred twenty countries. I'm Amy Morris. This is 0:09:33.720 --> 0:09:41.160 Bloomberg Nathan. Thanks Amy, six o nine on Wall Street 0:09:41.200 --> 0:09:42.960 Time for the Bloomberg Sports Update, brought to you by 0:09:43.080 --> 0:09:45.400 Price State Out. Here's John stash Our. Thanks today to 0:09:45.480 --> 0:09:47.640 the next with the start of an unusual two games 0:09:47.760 --> 0:09:49.920 series in Chicago. They played the Bulls last night and 0:09:49.920 --> 0:09:52.200 they'll be there again tomorrow. Last night went over time 0:09:52.600 --> 0:09:55.880 Nicks pulled out the wine fifth win in a row, 0:09:55.920 --> 0:09:58.280 and Julius Randall has had a lot to do with 0:09:58.400 --> 0:10:00.439 that plane, much more like you did too years ago. 0:10:00.480 --> 0:10:04.120 Then last season when Randall struggled thirty one points, thirteen rebounds, 0:10:04.120 --> 0:10:07.440 seven assists, thirty points for Jalen Brunson. The Warriors lost 0:10:07.480 --> 0:10:09.599 at Indiana if any the NBA Jamps can't win on 0:10:09.679 --> 0:10:13.040 the road there two and thirteen, and Steph Curry left 0:10:13.120 --> 0:10:15.959 last night with an injured shoulder. Rangers host Toronto tonight. 0:10:16.200 --> 0:10:18.600 Blue Shirts have won their last four college hoops easy 0:10:18.679 --> 0:10:21.199 went for Seaton Hall over at Drexel Battle of top 0:10:21.280 --> 0:10:24.360 twenty teams. U C l A went to Maryland one easily. 0:10:24.400 --> 0:10:27.200 The Bruins were up by twenty night at halftime. Sunday's 0:10:27.240 --> 0:10:30.199 World Cup Final promises to be a classic Argentina, with 0:10:30.280 --> 0:10:34.200 Lionel Messi looking for his elusive first championship taking on France, 0:10:34.200 --> 0:10:36.080 Who's got a chance to win back to back World 0:10:36.120 --> 0:10:39.640 Cups That's only happened once Brazil sixty years ago. As 0:10:39.679 --> 0:10:42.240 the Jets get ready to host the Lions, Sunday, coach 0:10:42.320 --> 0:10:46.280 Rob salast about quarterback Zack Wilson, who lost his starting job, 0:10:46.840 --> 0:10:50.120 been doing a great job. He he has, He's been 0:10:50.200 --> 0:10:53.400 deliberate in his approach over the last three weeks. Um, 0:10:53.800 --> 0:10:57.079 he's been holding himself accountable with regards to how he 0:10:57.160 --> 0:11:00.760 wants to attack practice. Uh, how has been performing in 0:11:00.840 --> 0:11:03.120 practice going against our defense, which I think is a 0:11:03.280 --> 0:11:06.360 pretty good defensive goal against Salah has moved Wilson from 0:11:06.480 --> 0:11:09.480 third spring up to second behind Mike White. Forty Niners 0:11:09.480 --> 0:11:12.240 bring their six game win string tonight into Seattle, chance 0:11:12.280 --> 0:11:14.559 of the Niners to clinch the NFC West. The x 0:11:14.720 --> 0:11:17.640 met Noah Synderguard signed a one year deal with the Dodgers. 0:11:17.760 --> 0:11:21.240 John Stash awards Bloomberg Sports, Nathan and the Bloomberg Sports Support. 0:11:21.320 --> 0:11:23.360 John was brought to you by Audie. Don't let someone 0:11:23.400 --> 0:11:25.800 else drive off in the Autie model. You've always wanted 0:11:25.800 --> 0:11:28.200 to visit your local Tri state Audie dealer to get 0:11:28.240 --> 0:11:31.240 behind the wheel of yours today, or visit Autie Offers 0:11:31.400 --> 0:11:34.600 dot com for more information. Right now, SMP futures are 0:11:34.640 --> 0:11:37.679 down forty points, staff futures down two forty one, and 0:11:37.760 --> 0:11:40.120 nastack futures are lower by a hundred fifty eight points 0:11:40.120 --> 0:11:42.199 at decline of one and a third percent. As the 0:11:42.400 --> 0:11:46.400 equity sell off continues. Following the FED decision and the 0:11:46.480 --> 0:11:48.880 hawkish tone from Chairman Pale, We're going to get more 0:11:49.040 --> 0:11:52.760 insights on the path for the FED. Danielle di Martino 0:11:52.920 --> 0:11:56.839 Booth of Quill Intelligence joins us with her thoughts. Next 0:11:57.120 --> 0:12:05.360 this is Bloomberg Live from coast to coast, from New 0:12:05.480 --> 0:12:09.439 York to San Francisco, Boston to Washington, d C. Nationwide 0:12:09.520 --> 0:12:13.079 on Sirius, xamp, the Bloomberg Business App, and Bloomberg dot Com. 0:12:13.520 --> 0:12:17.920 This is Bloomberg Daybreak. Good morning, I'm Nathan Hegerl. Let's 0:12:17.960 --> 0:12:20.280 getch you back to our top story of the morning, 0:12:20.320 --> 0:12:23.280 the Federal Reserve delivering that widely expected fifty basis point 0:12:23.360 --> 0:12:26.199 rate high and its final policy meeting of two. But 0:12:26.280 --> 0:12:29.240 if markets were expecting a pivot to lower rates anytime soon, 0:12:29.320 --> 0:12:32.600 the message from Chairman J Powell basically is don't hold 0:12:32.640 --> 0:12:35.319 your breath. Let's bring in Danielle DiMartino Booth for more 0:12:35.360 --> 0:12:39.160 insights on this. The CEO, chief strategist at Quill Intelligence 0:12:39.280 --> 0:12:41.439 joins us Live this morning. Of course, Danielle as a 0:12:41.520 --> 0:12:44.480 former advisor as well to the President of the Federal 0:12:44.559 --> 0:12:46.839 Reserve Bank of Dallas. It's great to speak with you 0:12:46.960 --> 0:12:50.719 this morning from our Interactive Broker studios. Danielle, what was 0:12:50.800 --> 0:12:54.280 your takeaway from this hawkish tone that we continue to 0:12:54.320 --> 0:12:58.080 get from this Federal Reserve? Well, uh, my biggest takeaway 0:12:58.200 --> 0:13:01.400 was the consensus um factor, the fact that there was 0:13:01.520 --> 0:13:06.320 so much agreement, despite the fact that everybody who submitted 0:13:06.320 --> 0:13:10.040 their dots could have changed their dot by by Tuesday night, 0:13:10.240 --> 0:13:15.200 according to the Fed's website. So they maintained that they 0:13:15.320 --> 0:13:19.120 feel that inflation is going to be problematic, even though 0:13:19.240 --> 0:13:24.160 we did see breaking that the markets celebrated UH in 0:13:24.320 --> 0:13:29.079 the consumer price index. Do you expect that consensus to hold? 0:13:29.240 --> 0:13:32.800 It looks like the market is continuing to place it's 0:13:32.920 --> 0:13:36.199 bet that the Fed is gonna blak Indeed, it does. 0:13:36.600 --> 0:13:38.880 You initially saw kind of a violent reaction in the 0:13:38.920 --> 0:13:42.920 bond market, and then yields backed off, indicating that they 0:13:43.040 --> 0:13:46.920 still the bond market still believes that the Fed is 0:13:47.000 --> 0:13:50.439 going to be forced to pivot. I would say that 0:13:50.640 --> 0:13:54.160 the particular form of inflation that that your pals cited, 0:13:54.640 --> 0:13:59.240 that would be the core services UH CPI X shelter 0:14:00.080 --> 0:14:02.040 UH that that has ticked down for two months in 0:14:02.080 --> 0:14:04.880 a row. My experience at the Fed tells me once 0:14:04.920 --> 0:14:06.679 they get to that third month in a row, a 0:14:06.760 --> 0:14:10.120 trend has been established, and that that will be a 0:14:10.280 --> 0:14:13.280 takeaway for the doves. And we're also going to see 0:14:13.320 --> 0:14:17.840 a rotation too much more dovish federals or of district presidents. 0:14:18.200 --> 0:14:22.360 In three cash car is coming on Lorie Logan, who's 0:14:22.680 --> 0:14:25.240 a career economist from the New York FED. She's also 0:14:25.360 --> 0:14:28.600 considered to be a dove. She's coming on as well 0:14:28.840 --> 0:14:32.120 as Austin Goulsby, and we're going to roll off some 0:14:32.320 --> 0:14:35.840 known hawks. So I think that I think that chair 0:14:35.880 --> 0:14:40.480 Powell might be seeing descent in interesting how much descent 0:14:40.600 --> 0:14:43.160 do you think that Chairman Powell is going to be 0:14:43.320 --> 0:14:46.760 in for Do you think that the Chairman Powell himself 0:14:47.080 --> 0:14:49.760 starts to waiver a bit if we do get that 0:14:50.120 --> 0:14:53.600 sign that inflation is starting to go on the path 0:14:53.720 --> 0:14:56.120 that the Fed is looking for. Well, I certainly think 0:14:56.200 --> 0:14:58.760 that's going to be the case. At least he will 0:14:58.800 --> 0:15:03.000 continue to not to the effects of of higher interest rates. 0:15:03.000 --> 0:15:07.640 In fact, at the at the presser yesterday afternoon, Powell 0:15:07.680 --> 0:15:10.560 actually said, you know, we expect, we can we can 0:15:10.640 --> 0:15:15.360 foresee that shelter inflation that is problematically sticky, we can 0:15:15.440 --> 0:15:19.400 foresee that that's going to turn in. He still looked 0:15:19.600 --> 0:15:23.160 through that, however, and bear in mind, given the FEDS 0:15:23.440 --> 0:15:26.760 unemployment forecast that we saw in in the Summary Economic 0:15:26.800 --> 0:15:30.440 projections yesterday, there's every chance, I mean, we've never not 0:15:30.600 --> 0:15:33.800 gone into recession with that level of an increase in 0:15:33.920 --> 0:15:37.040 the unemployment rate that is part of the FEDS forecast. 0:15:37.120 --> 0:15:39.200 So the FED is as close as it's possibly ever 0:15:39.320 --> 0:15:42.440 been to acknowledging and saying we're going to continue tightening 0:15:42.600 --> 0:15:45.720 into recession. Yeah, and one of the big messages we 0:15:45.800 --> 0:15:47.880 heard yesterday from Chairman Powell is that there's a bigger 0:15:47.960 --> 0:15:51.760 risk from under tightening than there is from overtightening. It 0:15:51.840 --> 0:15:54.840 seems like he has history in mind here, Danielle. What 0:15:55.160 --> 0:15:57.960 is the history that the chairman is looking at and 0:15:58.320 --> 0:16:01.240 does that really inform the kind of inflation that we're 0:16:01.240 --> 0:16:04.560 seeing in this economy. Well, you know, that's what the 0:16:04.640 --> 0:16:08.160 critical question is because when the policy error was first 0:16:08.280 --> 0:16:11.840 made when lb J was president and William mc chesney 0:16:11.880 --> 0:16:15.880 Martin blinked and was softer on the rate path than 0:16:15.960 --> 0:16:17.480 he should than he should have been, and then he 0:16:17.640 --> 0:16:22.000 was followed by mega doves who were politically malleable his 0:16:22.200 --> 0:16:25.520 you know, his nemesis, Arthur Burns uh, and they couldn't 0:16:25.600 --> 0:16:29.360 get really control of inflation at the time. That was 0:16:29.400 --> 0:16:33.840 a time when unions were extremely powerful, uh in the 0:16:33.920 --> 0:16:37.760 United States, when labor had more sway as opposed to 0:16:37.960 --> 0:16:41.400 where we are today. And as we see one company 0:16:41.480 --> 0:16:44.960 after another after another announcing layoffs, despite the fact that 0:16:45.000 --> 0:16:48.000 we're this close to the holidays, only about thirty seconds 0:16:48.080 --> 0:16:50.640 left here. Danielle, as we mentioned, you're a former advisor 0:16:50.720 --> 0:16:53.080 to the Dallas FED President. If you were in that 0:16:53.360 --> 0:16:57.280 role now, what would you be advising? Well, I would 0:16:57.360 --> 0:17:01.560 be trying to communicate a little bit better that I 0:17:01.680 --> 0:17:04.640 want to get inflation down. And but I am more 0:17:04.720 --> 0:17:07.760 sympathetic than what I sound like. I am to the 0:17:07.840 --> 0:17:09.840 fact that somebody losing their job is a heck of 0:17:09.880 --> 0:17:12.720 a lot worse than somebody battling inflation. But they're gonna 0:17:12.800 --> 0:17:16.040 try and look past that for the long term prosperity 0:17:16.200 --> 0:17:18.440 of the U. S. Economy, for the common good. Yeah, 0:17:18.480 --> 0:17:21.720 I'm gonna be really interesting to see the messaging going 0:17:21.800 --> 0:17:26.159 into three and the potential impact of policy on this 0:17:26.520 --> 0:17:31.080 UH persistent inflation. We continue to see, Danielle di Martino 0:17:31.160 --> 0:17:33.720 Booth of Quill Intelligence as always, great to have you 0:17:33.800 --> 0:17:36.800 on with us this morning here on Daybreak, daniel d. 0:17:36.880 --> 0:17:41.200 Martino Booth, the CEO, Chief Strategist over at Quill Intelligence. 0:17:41.960 --> 0:17:44.800 Right now, SMP futures are down thirty nine points. Staff 0:17:44.840 --> 0:17:47.520 futures down two thirty seven, NASTAC futures are lower by 0:17:47.560 --> 0:17:49.879 a hundred fifty seven points, The ten your treasury is 0:17:49.880 --> 0:17:53.200 down to thirty seconds, yield three point four eight percent, 0:17:53.280 --> 0:17:54.800 and the yield on the two year right now four 0:17:54.880 --> 0:18:02.480 point to three percent. This is Bloomberg Good Morning, Markets, 0:18:02.600 --> 0:18:05.639 headlines and breaking news twenty four hours a day at 0:18:05.720 --> 0:18:09.600 Bloomberg dot Com, the Bloomberg Business at Land at Bloomberg Victap. 0:18:09.840 --> 0:18:18.800 This is a Bloomberg Business Flash, and I'm Karen Moscow. 0:18:18.920 --> 0:18:21.000 This update brought to you by b and Why Mellin's 0:18:21.000 --> 0:18:23.960 Perishing Learned Why the world's most sophisticated wealth management and 0:18:24.080 --> 0:18:27.920 institutional firms rely on Perishing to help them improve profitability, 0:18:28.200 --> 0:18:32.160 create efficiency, attract talent and manage risk at Pershing dot Com. 0:18:32.600 --> 0:18:34.800 And futures are lower this morning, with S and P 0:18:35.000 --> 0:18:39.040 futures down forty points down, futures down two two NASDAG 0:18:39.119 --> 0:18:42.239 futures are down one hundred sixty and the ten year 0:18:42.280 --> 0:18:45.000 treasuries down to thirty seconds, held three point four eight percent, 0:18:45.160 --> 0:18:47.600 yield on the two year four point to three percent. 0:18:47.880 --> 0:18:50.200 And as a Bloomberg Business Flash. Now, here's Amy Morris 0:18:50.320 --> 0:18:52.399 with Moore on what's going on around the world. Amy, 0:18:52.720 --> 0:18:55.040 thank you. Karen Biser has an agreement to sell its 0:18:55.080 --> 0:18:58.240 anti viral medication patchle of It in China. This has 0:18:58.240 --> 0:19:01.159 sources tell Bloomberg the White House will reopen a program 0:19:01.240 --> 0:19:03.720 today allowing people in the US to order batches of 0:19:03.840 --> 0:19:07.240 at home COVID tests for free. The intruder accused of 0:19:07.280 --> 0:19:10.440 attacking how speaker Nancy Pelosi's husband was ordered to stand 0:19:10.520 --> 0:19:14.000 trial for attempted murder. Prosecutors say David de Pep has 0:19:14.040 --> 0:19:18.200 a list of other targets, including California Governor Gavin Newsom 0:19:18.440 --> 0:19:21.600 and actor Tom Hanks. And sports in the NBA, the 0:19:21.600 --> 0:19:25.040 Wizards and Warriors lose the NIXT win the World Cup Finals, 0:19:25.080 --> 0:19:28.920 set for Sunday, Argentina will be taking on France Global 0:19:29.000 --> 0:19:31.280 News twenty four hours a day on air and on 0:19:31.440 --> 0:19:35.720 Bloomberg Quick Take, powered by more than journalists and analysts 0:19:35.960 --> 0:19:38.600 in more than one d twenty countries. I'm Amy Morris, 0:19:38.720 --> 0:19:41.879 This is Bloomberg. Nathan Thanks Amy six three. Now on 0:19:41.960 --> 0:19:44.680 Wall Street, I'm Nathan Hagar. This is Bloomberg Daybreak, and 0:19:44.760 --> 0:19:47.520 we turn again to the collapse of the cryptocurrency exchange 0:19:47.600 --> 0:19:49.800 f t X and what it means for the outlook 0:19:49.960 --> 0:19:53.360 for digital currencies. This week on Capitol Hill, the new 0:19:53.560 --> 0:19:56.600 CEO of f t X, John J. Ray, testified about 0:19:56.600 --> 0:20:00.080 the practices inside the company that he found disturbing that 0:20:00.200 --> 0:20:04.920 the absence of record keeping, employees would communicate invoicing and 0:20:05.040 --> 0:20:09.359 expenses on on slack, which is, you know, essentially a uh, 0:20:09.480 --> 0:20:12.560 you know, a way of communicating for chat rooms. And 0:20:12.640 --> 0:20:14.840 after John Ray testified to the House and the Senate, 0:20:14.880 --> 0:20:18.919 Bloomberg Shinali Basset spoke with Oklahoma Republican Congressman Frank Lucas 0:20:19.280 --> 0:20:22.680 about steps Congress can take to protect investors. Something I 0:20:22.800 --> 0:20:27.040 wonder about is when you listen to the hearing testimony 0:20:27.240 --> 0:20:30.200 of John Ray, the new CEO of f t X, 0:20:30.560 --> 0:20:32.760 are you finding that you can find any closure for 0:20:32.800 --> 0:20:36.040 your constituents or any path forward? I wish I could 0:20:36.040 --> 0:20:38.399 say that, but clearly this is a multi bid indollar 0:20:38.440 --> 0:20:41.120 mess that's going to continue. When Mr Ray pointed out 0:20:41.160 --> 0:20:44.200 to us that the bookkeeping system was rudimentary off the 0:20:44.280 --> 0:20:47.120 shelf small business software being used to manage a multi 0:20:47.200 --> 0:20:50.280 billion dollar enterprise. When you discussed the lack of strong 0:20:50.440 --> 0:20:53.399 board management and the various enterprises, the ability of the 0:20:53.480 --> 0:20:57.280 CEO to loan himself money out of the company. Uh, 0:20:57.920 --> 0:21:01.000 it was horrified. But that's what this rings about. Get 0:21:01.080 --> 0:21:02.760 to the to the bottom of the mess so we 0:21:02.800 --> 0:21:05.560 can figure out how to make sure from Congress's perspective, 0:21:05.640 --> 0:21:08.280 this doesn't happen again. Has it changed your view of 0:21:08.359 --> 0:21:10.600 the entire crypto industry or do you view this as 0:21:10.640 --> 0:21:12.800 a one off of that. Well, I've always been a 0:21:12.800 --> 0:21:15.560 little suspicious of crypto, Not so much from the perspective 0:21:15.720 --> 0:21:18.480 of the professional investors, but there are a lot of 0:21:18.560 --> 0:21:20.399 little people out there who put their money into this 0:21:20.640 --> 0:21:23.040 who've been pulled in. I said in thirty two of 0:21:23.119 --> 0:21:26.159 my town meetings this summer, only invest the money you 0:21:26.240 --> 0:21:30.600 don't need. It's the wild West right now in crypto. Unfortunately, 0:21:30.680 --> 0:21:33.240 there was a gunfight and the investors may have lost. 0:21:33.600 --> 0:21:37.239 You asked him the hearing also why certain assets were 0:21:37.359 --> 0:21:40.160 left out of the bankruptcy. Do you feel that those 0:21:40.200 --> 0:21:44.760 assets should have been included. Well, ultimately, the investors will 0:21:44.800 --> 0:21:46.320 want as much of their money back as they can 0:21:46.359 --> 0:21:49.639 possibly get. And when Mr Ray could identify a billion 0:21:49.680 --> 0:21:52.719 dollars that they had pretty well tied down. But if 0:21:52.760 --> 0:21:55.520 public reports are really that needs six or seven billion 0:21:55.600 --> 0:21:58.840 may not be accounted for you. I'm very unnerved, and 0:21:58.880 --> 0:22:01.160 I also wanted to know because is the international nature 0:22:01.600 --> 0:22:05.480 hundreds some enterprises scattered around the world in ft X, 0:22:05.840 --> 0:22:09.960