WEBVTT - Bloomberg Daybreak: January 3, 2023 - Hour 2 (Radio) 0:00:02.360 --> 0:00:05.720 Live from the Bloomberg Interactive Brookers Studios. Is Bloomberg Day 0:00:05.840 --> 0:00:09.520 Right for Tuesday, January three, three Coming up, The shower 0:00:09.880 --> 0:00:12.680 Stocks kickoff the new year with games after a dismal 0:00:13.800 --> 0:00:15.920 I M. F. Lawrence. A third of the world economy 0:00:15.960 --> 0:00:18.640 to be in recession this year. China's Hi Jin Pink 0:00:18.720 --> 0:00:21.800 says tough challenges remain in the country's fight against COVID. 0:00:22.079 --> 0:00:25.200 Tesla delivers fewer vehicles that expected in the fourth quarter. 0:00:25.360 --> 0:00:27.639 The man charged with shooting up a New York subway 0:00:27.640 --> 0:00:30.800 car will be in court. Plus, Brazilian authorities are reopening 0:00:30.800 --> 0:00:34.159 a fraud case against Representative Alex Santos. I'm Michael bar 0:00:34.360 --> 0:00:37.000 More a half. I'm John Statward Sports with Nixon. Next 0:00:37.000 --> 0:00:40.200 one The Bills Bengals game postponed after a Buffalo player 0:00:40.240 --> 0:00:44.720 went into cardiac arrest. That's all straight Ahead on Bloomberg 0:00:44.760 --> 0:00:49.920 Day Break on Bloomberg eleven, TREEO, New York, Bloomberg N one, Washington, 0:00:50.040 --> 0:00:54.040 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, 0:00:54.120 --> 0:00:58.000 San Francisco, Sirius x M one nine Team, and around 0:00:58.040 --> 0:01:00.920 the world on Bloomberg Radio dot Com and via the 0:01:01.000 --> 0:01:09.680 Bloomberg Business A good morning. I'm Nathan Hagar and I'm 0:01:09.760 --> 0:01:12.240 Karen Moscow and the West Dock Index futures are on 0:01:12.280 --> 0:01:14.440 the rise this morning. We checked the markets all day 0:01:14.480 --> 0:01:17.800 long here on Bloomberg and SMP futures up thirty six points, 0:01:17.840 --> 0:01:20.560 or nine tens of upper CENTDAL futures up eight tens 0:01:20.560 --> 0:01:23.040 of upper cent or two hundred seventy eight points. And 0:01:23.160 --> 0:01:25.240 now's deck futures are up one point one per cent 0:01:25.319 --> 0:01:28.040 or a hundred nineteen points. Ten year Treasury up one 0:01:28.040 --> 0:01:30.760 in three thirties seconds. You have three point seven four percent. 0:01:30.840 --> 0:01:33.480 They yield on the two year four point three four percent, 0:01:33.840 --> 0:01:36.400 and NIMEX screwed oil is down one point six percent, 0:01:36.440 --> 0:01:38.680 down a dollar twenty five at seventy nine dollars two 0:01:38.680 --> 0:01:41.119 cents a barrel. Nathan, all right, Karen, let's stay with 0:01:41.160 --> 0:01:43.959 these markets as we kick off the new year. Investors 0:01:44.000 --> 0:01:47.640 seem to be glad two is in the rear view Bloomberg. 0:01:47.720 --> 0:01:50.600 Steve Rappaport joins US Live with more. Good morning, Steve, 0:01:50.640 --> 0:01:53.320 Good morning, Nathan and Karen. Wall Street futures point to 0:01:53.360 --> 0:01:56.840 a higher opening as investors cautiously ringing the new trading year. 0:01:57.080 --> 0:01:59.760 They're keeping a close eye on global equities having lost 0:02:00.040 --> 0:02:03.040 key percent in value after sharp swings last year. Then 0:02:03.040 --> 0:02:05.240 there's the dreaded eye word in what to do about it? 0:02:05.360 --> 0:02:08.359 Traders worried the Federal Reserve and other central banks might 0:02:08.360 --> 0:02:10.880 be willing to risk a recession to bring down inflation 0:02:10.919 --> 0:02:13.600 that remains stubbornly high. We'll get a better look at 0:02:13.600 --> 0:02:16.640 the FIDS thinking tomorrow when policymakers released notes from their 0:02:16.680 --> 0:02:19.040 latest meeting. Live in New York Times, Steve rep report 0:02:19.080 --> 0:02:21.560 Bloomberg daybreak. All right, Steve, thank you. I was the 0:02:21.600 --> 0:02:24.280 first day of trading for stocks in London and let's 0:02:24.320 --> 0:02:27.359 get the latest from Bloombergy daybreaking. Europe Banker Stephen Carroll, 0:02:27.400 --> 0:02:30.360 Good morning, Stephen, Good morning, Karen and Nathan. The London 0:02:30.400 --> 0:02:32.760 market joining in that new year rally. Shares in the 0:02:32.760 --> 0:02:35.480 foot one hundred up two point three percent two hours 0:02:35.480 --> 0:02:38.040 into the trading session. The top performers on the British 0:02:38.080 --> 0:02:41.000 market include the food delivery service at Cado, British Airways 0:02:41.040 --> 0:02:43.120 owner I A G, as well as the oil majors 0:02:43.160 --> 0:02:45.280 BP and Shell. We've got a second day of gains 0:02:45.280 --> 0:02:48.680 across other European markets. The stocks six one point eight percent, 0:02:48.720 --> 0:02:51.400 the Carronton Paris and the Jackson Frankfort both at one 0:02:51.400 --> 0:02:54.680 point four percent. Best performing sector travel and leisure shares 0:02:54.919 --> 0:02:57.480 currently up over three percent. Are people planning New Year's 0:02:57.480 --> 0:03:01.360 holidays in London. I'm Stephen Carroll Bloomer, daybreak. Okay, Stephen, 0:03:01.360 --> 0:03:03.440 thanks And while we are watching the markets, were also 0:03:03.520 --> 0:03:06.480 keeping an eye on a serious story in sports this morning. 0:03:06.520 --> 0:03:10.160 A safety for the Buffalo Bills suffered a cardiac arrest 0:03:10.400 --> 0:03:13.560 during last night's game with the Cincinnati Bengals, and John 0:03:13.639 --> 0:03:17.000 stash Hours here live with the details. John and Nathan 0:03:17.040 --> 0:03:19.480 to mar Hamlin, only twenty four years old. He made 0:03:19.480 --> 0:03:21.880 a tackle in the Bill's game against the Bengals and 0:03:21.919 --> 0:03:25.680 then collapse, having gone into cardiac arrest. CPR was administered, 0:03:25.720 --> 0:03:28.760 They restored his heartbeat, and Hamlet this morning is in 0:03:28.800 --> 0:03:31.640 a Cincinnati hospital, said to me, sedated, with his vital 0:03:31.720 --> 0:03:35.080 signs back to normal, but he is listed in critical condition. 0:03:35.120 --> 0:03:37.680 The game was postponed. No word yet on his resumption. 0:03:37.920 --> 0:03:40.720 John Stashward Bloomberg, debreak. All right, John, thank you, and 0:03:40.720 --> 0:03:42.560 of course I'll have more in that story coming up 0:03:42.600 --> 0:03:45.160 in our sports report. But first let's turn to the 0:03:45.160 --> 0:03:48.400 COVID outbreak in China. President Chi Jim Ping says the 0:03:48.440 --> 0:03:50.760 country is moving into a new phase and its COVID 0:03:50.840 --> 0:03:53.920 pivot and his New Year address, President she warn't of 0:03:54.080 --> 0:04:00.440 hard times ahead Chunk with extraordinary efforts, China has revailed 0:04:00.520 --> 0:04:04.800 over unprecedented difficulties and challenges. That has not been an 0:04:04.800 --> 0:04:07.760 easy journey for anyone. We have now entered a new 0:04:07.800 --> 0:04:12.000 phase of COVID response where tough challenges remain. Chinese President 0:04:12.080 --> 0:04:15.760 She's in pain, did not acknowledge recent protests over COVID directly, 0:04:15.840 --> 0:04:18.360 but did say it's only natural for people to have 0:04:18.400 --> 0:04:21.680 different concerns and views on issues. No, President, She's not 0:04:21.720 --> 0:04:23.960 the only one seeing tough times a Headcaren i am 0:04:24.000 --> 0:04:26.960 F Managing Director Kristine and Georgieva's issuing a warning on 0:04:27.000 --> 0:04:29.680 the global economy. She says one third of the world 0:04:29.680 --> 0:04:33.360 will be in recession this year. We expect one third 0:04:33.400 --> 0:04:36.239 of the word economy to be in recession. For most 0:04:36.279 --> 0:04:39.080 of the world economy. This is going to be a toughier, 0:04:39.240 --> 0:04:43.880 tougher than there we leave behind. Why because the three 0:04:44.120 --> 0:04:51.480 big economies US, EU, China are all slowing down simultaneously. 0:04:51.839 --> 0:04:54.880 I'm F Managing director Crystalline and Georgieva spoke on Face 0:04:54.960 --> 0:04:57.880 the Nation from CBS. Catch the program every Sunday on 0:04:57.920 --> 0:05:01.760 Bloomberg Radio. Meantime in Washington, Nathan, a new Congress is 0:05:01.800 --> 0:05:04.000 seated today. That means it's time to select a new 0:05:04.040 --> 0:05:06.800 Speaker of the House, but as Bloomberg's Sad Bacheter reports, 0:05:06.920 --> 0:05:10.080 this is not expected to be a coronation. Kevin McCarthy's 0:05:10.160 --> 0:05:13.159 chances remain in doubt. With the Republicans only holding a 0:05:13.200 --> 0:05:16.960 slender majority in the new House. McCarthy cannot lose more 0:05:17.000 --> 0:05:20.080 than four GOP votes in his bid, and the latest 0:05:20.120 --> 0:05:22.920 talies have more than that not committed to him, and 0:05:23.040 --> 0:05:25.720 two have already said there is nothing that McCarthy can 0:05:25.720 --> 0:05:28.480 do to get their votes. Coming out of meetings held 0:05:28.480 --> 0:05:32.520 over the weekend, predictions of multiple rounds with fierce negotiation 0:05:32.600 --> 0:05:35.320 going on in the interim. McCarthy has been endorsed by 0:05:35.360 --> 0:05:38.800 Donald Trump, which complicates things for the GOP with a 0:05:38.800 --> 0:05:41.360 good number of the party trying to move away from Trump. 0:05:41.920 --> 0:05:44.800 In San Francisco, I'm at Baxter Bloomberg Daybreak. All right, 0:05:44.839 --> 0:05:47.039 and thanks. Turning to corporate news this morning, we're seeing 0:05:47.040 --> 0:05:49.880 more downbeat data from Tesla. The shares are down almost 0:05:49.920 --> 0:05:52.880 three percent in early trading after the company delivered fewer 0:05:52.960 --> 0:05:56.160 vehicles than expected in the fourth quarter. Bloomberg's Doug Krisner 0:05:56.160 --> 0:05:59.839 has the story. Worldwide deliveries total four hundred five thousand, 0:06:00.000 --> 0:06:02.960 two hundred seventy eight, but that miss the average Bloomberg 0:06:03.040 --> 0:06:07.040 estimate by more than fifteen thousand cars. Nonetheless, the quarterly 0:06:07.120 --> 0:06:11.040 figure is a record. CEO Elon Musk had predicted an 0:06:11.040 --> 0:06:14.760 epic end to the year. To clear inventory, Tesla offered 0:06:14.800 --> 0:06:17.840 discounts of seventy five hundred dollars to US consumers who 0:06:17.839 --> 0:06:20.920 took delivery in the final days of December. Well Now 0:06:20.960 --> 0:06:24.680 Tesla is offering incentives in China. Chinese buyers will get 0:06:24.720 --> 0:06:28.200 the equivalent of fourteen hundred fifty dollars on certain models 0:06:28.240 --> 0:06:31.600 if they take delivery by February. In New York on 0:06:31.680 --> 0:06:34.240 Deck Prisoner Bloomberg daybreak, all right, thank you all. One 0:06:34.279 --> 0:06:37.279 of Most's other companies is also in the spotlight this morning. 0:06:37.279 --> 0:06:40.960 According to c NBC, SpaceX is raising seven hundred fifty 0:06:41.000 --> 0:06:43.880 million dollars in new funding that values the company at 0:06:43.880 --> 0:06:47.000 a hundred thirty seven billion dollars. The network says, and 0:06:47.120 --> 0:06:50.680 recent Horowitz will likely leave the new funding futures again 0:06:50.720 --> 0:06:53.600 moving higher. SNP futures up thirty five points or nine 0:06:53.640 --> 0:06:56.600 tenths of upper cent and straight ahead your latest local headlines, 0:06:56.680 --> 0:07:03.599 plus a check of sports and this is Bloomberg. Thankscaring 0:07:03.640 --> 0:07:06.560 six oh seven on Wall streett degrees in Central Parkcot 0:07:06.560 --> 0:07:09.440 showers the vicinity and expecting rain for much of the 0:07:09.520 --> 0:07:12.240 day with highs in the upper fifties and mid fifties 0:07:12.240 --> 0:07:14.680 for lows. Tonight. Michael Barr is here with more on 0:07:14.760 --> 0:07:16.600 what's going on in New York and around the world. 0:07:16.600 --> 0:07:19.720 Good morning, Michael, Good morning Nathan. Prosecutors want a decade's 0:07:19.760 --> 0:07:22.600 long prison sentence for a man who is expected to 0:07:22.600 --> 0:07:25.880 plead guilty to opening fire on the subway car and 0:07:25.960 --> 0:07:29.080 wounding ten riders in New York City. Frank James as 0:07:29.080 --> 0:07:32.440 scheduled to enter a guilty plea today in Brooklyn Federal Court, 0:07:32.800 --> 0:07:35.800 admitting that he was responsible for the April twelfth attack. 0:07:36.240 --> 0:07:38.520 It set off a massive thirty hour man hunt that 0:07:38.720 --> 0:07:41.320 ended when the sixty three year old called the police 0:07:41.320 --> 0:07:45.239 on himself. Brazilian authorities planned to revive an old criminal 0:07:45.320 --> 0:07:49.600 case on fraud charges against George Santos, the Long Island 0:07:49.640 --> 0:07:53.800 representative eluct takes his seat in Congress today. The Prosecutor's 0:07:53.800 --> 0:07:56.560 office and Rio di Janeiro said the case against Santos 0:07:56.840 --> 0:07:59.960 stems from a two thousand eight incident regarding a stolen checkbook. 0:08:00.520 --> 0:08:03.200 Police in Pennsylvania said the man who shot and killed 0:08:03.200 --> 0:08:07.600 the police officer in Brackenridge has been shot and then 0:08:07.640 --> 0:08:12.720 he was then shot by Pittsburgh Police. Aaron Lamott Swan, 0:08:12.960 --> 0:08:15.880 who was twenty eight, was wanted for a parole violation 0:08:16.200 --> 0:08:19.680 and fled from a traffic stop. Alleghanty County Police Superintendent 0:08:19.760 --> 0:08:23.560 Christopher kerns there was a car chase. The suspect crashed 0:08:23.560 --> 0:08:26.679 the car and fled into the woods. The officers quickly 0:08:26.680 --> 0:08:29.880 formed a perimeter. While former the perimeter, the suspect ran 0:08:29.920 --> 0:08:32.920 from the wooded area. While fleeing from the officers, the 0:08:33.000 --> 0:08:37.479 suspect fired at the officers. Christopher Kerns with the Alleghany 0:08:37.520 --> 0:08:42.120 County Police says Chief Justin McIntire, who was killed, was 0:08:42.160 --> 0:08:45.400 the definition of a community officer. A suspect in the 0:08:45.400 --> 0:08:49.000 New Year's Eve machete attack on three New York City 0:08:49.000 --> 0:08:52.120 police officers near Times Square, it's been arrested and charged 0:08:52.120 --> 0:08:54.920 with attempted murder. Police identified him as a nineteen year 0:08:54.960 --> 0:08:58.960 old Trevor Bickford of Wells Main. Retired NYPD Chief of 0:08:59.000 --> 0:09:02.560 Detectives Robert boy says the heavy police presence on New 0:09:02.640 --> 0:09:06.560 Year's Eve is usually a successful deterrent. Of course, this 0:09:06.679 --> 0:09:09.000 is our biggest deployment of the year in New Years. Say, 0:09:09.080 --> 0:09:11.320 we have the most officers out there. We have we 0:09:11.400 --> 0:09:14.120 have all kinds of frozen zones and to find rids. 0:09:14.400 --> 0:09:16.720 It's not unusual at all to have several thousands place 0:09:16.760 --> 0:09:18.960 hops sport and that night, so we haven't had this 0:09:19.000 --> 0:09:21.720 for a while. During the attack, one of the three 0:09:21.720 --> 0:09:24.240 officers shot and moon did the suspect in the shoulder. 0:09:24.600 --> 0:09:27.280 Global News twenty four hours a day on air and 0:09:27.480 --> 0:09:30.640 on Bloomberg Quick Take, powered by more than twenty seven 0:09:30.679 --> 0:09:34.080 hundred journalists and analysts more than one twenty countries. I'm 0:09:34.080 --> 0:09:37.240 Michael Barr and this is Bloomberg Nathan. Okay, Michael, thank 0:09:37.280 --> 0:09:43.520 you six o nine on Wall straight time for the 0:09:43.520 --> 0:09:46.040 Bloomberg Sports Update. Brompt you by try state Outie and 0:09:46.080 --> 0:09:48.680 John stanshours back to us. Nathan. It was to be 0:09:48.720 --> 0:09:50.880 a big game between two of the NFL's best teams, 0:09:50.920 --> 0:09:53.800 but in the first quarter, outcome of the football game 0:09:53.840 --> 0:09:57.480 seems awfully insignificant. Buffalo safety Damar Hamlin made a tackle 0:09:57.600 --> 0:09:59.640 that up for a couple of seconds and then fell backwards. 0:09:59.720 --> 0:10:02.320 It was clear this was not a normal injury. He 0:10:02.320 --> 0:10:05.920 had gone into cardiac arrest rec CPR and oxygen. They 0:10:05.960 --> 0:10:09.080 were able on the field to have his heartbeat restored, 0:10:09.120 --> 0:10:12.400 but Hamlin is now in a Cincinnati hospital listed in 0:10:12.480 --> 0:10:14.760 critical condition. At one point there was talking resumed in 0:10:14.800 --> 0:10:17.240 the game. The NFL later said that was a false report. 0:10:17.559 --> 0:10:19.160 It was an hour and a half before the game 0:10:19.200 --> 0:10:22.840 was officially postponed. Bills flew back to Buffalo. The NFL 0:10:22.880 --> 0:10:26.199 has not said when the game will be resumed. They 0:10:26.240 --> 0:10:29.079 played four bowl games. Pence State pulled away on Utah 0:10:29.160 --> 0:10:32.200 to when the Rose LSU took the Citrus sixty three 0:10:32.240 --> 0:10:35.360 to seven over Purdue. Mississippi State won it's bowl game 0:10:35.400 --> 0:10:38.160 for coach Mike Leach. You recently passed away and an 0:10:38.160 --> 0:10:41.839 amazing Cotton Bowl went for two lane trailed USC by 0:10:41.880 --> 0:10:44.720 fifteen was just over four minutes left to its first league. 0:10:44.720 --> 0:10:47.440 With nine seconds left, two lane one forty six foot 0:10:47.480 --> 0:10:49.920 and five Nick's back at the Guard held Phoenix only 0:10:49.920 --> 0:10:52.959 eleven first quarter points, beat the cold shooting Suns one 0:10:52.960 --> 0:10:55.680 oh two to eighty three. Twelfth straight win for the 0:10:55.720 --> 0:10:57.959 Nets to blow out of San Antonio at Barkley's one 0:10:58.040 --> 0:11:01.000 thirty nine to one oh three and Cleveland's over time, 0:11:01.000 --> 0:11:04.760 what over Chicago, the Cavs Donovan Mitchell scored seventy one 0:11:04.840 --> 0:11:07.559 point most of the NBA SS Kobe Bryant's any one 0:11:07.600 --> 0:11:10.480 point game in two thousand six, a year after Ruptors 0:11:10.480 --> 0:11:12.880 stunt number one rank per Dow, it happened again, this 0:11:13.040 --> 0:11:17.040 time on the road Scarlet Knights sixty four outdoor hockey 0:11:17.040 --> 0:11:19.600 on usually warm New Year's Day in Boston, the Bruins 0:11:19.600 --> 0:11:21.920 beat Pittsburgh to the one they had to sell out 0:11:21.920 --> 0:11:25.240 crowd at ben Way Park. John Stactually Bloomberg Sports Nathan 0:11:25.360 --> 0:11:27.560 all Right, John, thank you, and the Bloomberg Sports Report 0:11:27.640 --> 0:11:30.120 was brought to you by Audie. Don't let someone else 0:11:30.200 --> 0:11:32.760 drive off in the Outie model you've always wanted. Visit 0:11:32.760 --> 0:11:35.240 your local Trice State autie dealer to get behind the 0:11:35.240 --> 0:11:38.280 wheel of yours today, or visit Outie Offers dot com 0:11:38.640 --> 0:11:41.760 for more information. SMP futures right now of thirty two 0:11:41.800 --> 0:11:44.880 points down futures of tune to fifty one NASTAC futures 0:11:44.880 --> 0:11:47.400 are hired by a hundred nine points ten year treasuries 0:11:47.480 --> 0:11:49.960 up one and three thirty seconds. The yield three point 0:11:50.080 --> 0:11:53.120 seven four percent. Yield on the two year right now 0:11:53.559 --> 0:11:58.240 four point three five percent. You're listening to Bloomberg Daybreak 0:12:02.360 --> 0:12:05.760 live from coast to coast, from New York to San Francisco, 0:12:05.960 --> 0:12:09.839 Boston to Washington, d C. Nationwide on Sirius xamp, the 0:12:09.880 --> 0:12:14.520 Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. 0:12:15.600 --> 0:12:17.839 Good morning and happy New Year, Nathan Hagar and we 0:12:17.880 --> 0:12:20.360 want to get more now on the situation in China, 0:12:20.480 --> 0:12:23.360 something we continue to follow very closely. As we kick 0:12:23.400 --> 0:12:27.040 off three, President Shi Jinping is now warning of tough 0:12:27.080 --> 0:12:30.240 times ahead in his country's fight against COVID nineteen. He 0:12:30.320 --> 0:12:32.840 said that in an address to his nation to mark 0:12:32.920 --> 0:12:35.200 the new year. At the same time, we do see 0:12:35.280 --> 0:12:38.880 some signs of optimism, that infections may have peaked in 0:12:38.920 --> 0:12:41.800 some parts of the country, and that the Chinese economy 0:12:42.160 --> 0:12:44.600 may be showing signs that it's starting to get a 0:12:44.600 --> 0:12:46.920 bit of a lift. Let's bring in Bloomberg Chief Asia 0:12:46.960 --> 0:12:51.679 Economics correspondent and occurrent to get more on the unfolding 0:12:51.720 --> 0:12:54.680 situation in China and a good morning, happy New Year 0:12:54.720 --> 0:12:58.600 to you. What does President She's New Year's address tell 0:12:58.640 --> 0:13:02.360 you about the you approach the COVID in China? Are 0:13:02.360 --> 0:13:05.360 we getting a sense now that zero tolerance really is 0:13:05.440 --> 0:13:09.000 now fully a thing of the past. It's telling if 0:13:09.040 --> 0:13:11.720 that China has moved away from over zero is happening 0:13:11.760 --> 0:13:15.560 at a much faster pace than anyone could have anticipated. 0:13:16.000 --> 0:13:19.480 We are seeing, though, however, a bigger economics ship than 0:13:19.520 --> 0:13:22.640 money economists had anticipated when these when the relaxation that 0:13:22.720 --> 0:13:25.080 measures was first announced. So we had some p m 0:13:25.080 --> 0:13:27.760 I data over the weekend showing the hit to the 0:13:27.800 --> 0:13:32.000 manufacturing and service inside in December was bigger than anticipated. 0:13:32.040 --> 0:13:35.800 In particular, services took its biggest hits in every twenty 0:13:35.840 --> 0:13:38.480 when the pandemic was getting on the way, and that 0:13:38.720 --> 0:13:41.240 makes of course, as we know, the hit it's in 0:13:41.400 --> 0:13:46.160 confidence consumer spending and the broader hit to industrial production 0:13:46.559 --> 0:13:48.960 in China. Sore you comments from President Choosing things do 0:13:49.040 --> 0:13:52.960 seem to under underscore the idea that the top of 0:13:52.960 --> 0:13:55.520 the party believes that they can navigate their way out 0:13:55.600 --> 0:13:58.959 of this. Of course, our colleagues are reporting a significant 0:13:59.000 --> 0:14:02.839 impact on public health across China. Put to your point, 0:14:02.880 --> 0:14:06.600 there are there are also some very tentative early signs 0:14:06.640 --> 0:14:09.480 that perhaps the diseased outbreak is peaking in at least 0:14:09.480 --> 0:14:13.559 some major cities at least, so the leadership may be 0:14:13.760 --> 0:14:17.239 signaling that it sees a way to navigate this situation. 0:14:17.480 --> 0:14:22.680 What do economists think about the outlook for China in three? 0:14:22.680 --> 0:14:27.320 Are they starting to reassess their projections given the disappointing 0:14:27.400 --> 0:14:31.520 data we've gotten in recent days. I think the assessments 0:14:31.520 --> 0:14:34.440 are being recessed on an almost daily basis Natan, I mean, 0:14:34.440 --> 0:14:37.520 obviously number one is the public health crisis. China has 0:14:37.560 --> 0:14:39.520 to navigate that. But when you look at the eccom 0:14:39.520 --> 0:14:41.920 excite of it, as you mentioned earlier, we're getting some 0:14:42.040 --> 0:14:45.280 high frequency readings. Now, is that subway usage, for example, 0:14:45.320 --> 0:14:48.440 in some major cities, including Baking, is actually picking up 0:14:48.440 --> 0:14:51.640 And and as you're saying, that's pointing to perhaps greater 0:14:51.760 --> 0:14:53.800 conference among consumers to get out and the bous the 0:14:53.880 --> 0:14:57.000 health experts, it might be pointing to a peak in 0:14:57.080 --> 0:14:59.920 the level of infections. So if and when trying to 0:15:00.080 --> 0:15:02.320 gets through the house side of it, and don't forget 0:15:02.320 --> 0:15:04.080 by the way, they first have to navigate the lunar 0:15:04.080 --> 0:15:06.080 New Year holiday it's coming up here in a couple 0:15:06.120 --> 0:15:09.080 of weeks. Then there is expected to be something of 0:15:09.120 --> 0:15:13.280 a growth dividend for the economy. Consumers get motoring again, 0:15:13.760 --> 0:15:17.360 tourists get spending and traveling both domestically, and of course 0:15:17.360 --> 0:15:19.840 they will go to the rest of the world. Twoe again. 0:15:20.120 --> 0:15:22.120 The real estate it's like they're in China, will get 0:15:22.120 --> 0:15:24.880 a bit of a lift if ippos of all constiens 0:15:24.920 --> 0:15:28.280 to get out about by property. So when you add 0:15:28.320 --> 0:15:30.880 it up, there's expected to be something of a recovery, 0:15:31.240 --> 0:15:33.520 maybe even a sharp recovery and challenge economies from the 0:15:33.520 --> 0:15:36.680 middle of saying this year. But as I mentioned, there 0:15:36.680 --> 0:15:39.640 are other headwinds happening at month as well. Global demand 0:15:39.640 --> 0:15:41.840 for Chinese made goods and pretty weeks gets weighing on 0:15:42.200 --> 0:15:44.720 exporters and I will take a lot, of course to 0:15:44.760 --> 0:15:48.440 turn around the real estate slump, but nonetheless the existing 0:15:48.480 --> 0:15:51.160 covered zero. It's proven to be quite chaotic, but at 0:15:51.160 --> 0:15:54.960 the same time, ultimately it is expected to blend itself 0:15:55.040 --> 0:15:57.920 forward and recovering economy in China. Did you mentioned the 0:15:58.040 --> 0:16:01.080 Chinese New Year, the Lunar New Year, It'll be interesting 0:16:01.120 --> 0:16:03.800 to see what kind of catalysts that could provide in 0:16:03.920 --> 0:16:05.680 terms of what the outlook is going to be for 0:16:05.840 --> 0:16:10.840 China going forward. Even further, what what's the signal that 0:16:10.880 --> 0:16:14.280 you expect to see from the Lunar New Year given 0:16:14.600 --> 0:16:19.040 potential trepidations among the Chinese people about how the COVID 0:16:19.120 --> 0:16:23.000 situation could unfold, Well, exactly makes and I mean Lunar 0:16:23.040 --> 0:16:25.600 New Year is the Christmas for China. Think about it 0:16:25.640 --> 0:16:29.120 that way. So this is a huge migration when everybody 0:16:29.120 --> 0:16:31.040 goes home to see their family. So again you have 0:16:31.080 --> 0:16:33.200 to look at it through the public health lends. Number one. 0:16:33.240 --> 0:16:35.360 A lot of animals are saying it will probably mean 0:16:36.000 --> 0:16:38.760 bigger and faster spread of the disease in rural and 0:16:38.800 --> 0:16:41.760 the regional China. And of course that pressure is the hospitals, 0:16:41.920 --> 0:16:45.120 and that's does exactly lend itself towards boy and consumer confidence. 0:16:45.360 --> 0:16:49.400 But again providing the authorities can navigate that by minimizing 0:16:49.440 --> 0:16:52.440 the health effect. The thinking is that you know, the 0:16:52.480 --> 0:16:55.760 more China starts to simon, don feed and adjust to 0:16:55.960 --> 0:16:58.400 life with COVID, the more it will lend itself to 0:16:58.480 --> 0:17:02.200 a more normalizing economy in terms of work practices we're 0:17:02.240 --> 0:17:04.280 seeing from times at the industrial e thank is getting 0:17:04.320 --> 0:17:07.560 back on speed already. For example, the the Apple, the 0:17:07.600 --> 0:17:10.040 big Apple plant, the iPhone city as it's known, is 0:17:10.080 --> 0:17:15.320 back towards production that people are closely watching for signs 0:17:15.320 --> 0:17:17.359 of recovering and supply chains which just seems to be 0:17:17.440 --> 0:17:20.560 happening at the moment. And as I mentioned to you, 0:17:20.880 --> 0:17:23.160 the more tonic and adjusting with the more we will 0:17:23.240 --> 0:17:27.480 lend itself towards a normalizing consumer and normalizing industrial dates 0:17:27.680 --> 0:17:29.760 and of course that will end itself towards a more 0:17:29.800 --> 0:17:34.960 productive Chinese economy. Yeah, we're still very every We're still 0:17:35.040 --> 0:17:37.120 very early in this stat and I think coming weeks 0:17:37.119 --> 0:17:39.000 and months they're going through offer a lot of clarity 0:17:39.040 --> 0:17:42.439 on absolutely. Thanks for this as always and great to 0:17:42.440 --> 0:17:44.560 have you on with us and the current chief Asia 0:17:44.600 --> 0:17:48.960 Economics correspondent for Bloomberg News. Looking at the offshore you on, 0:17:49.280 --> 0:17:52.680 it is strengthening slightly against the dollar at six point 0:17:52.800 --> 0:17:56.320 nine two three two, and futures are higher on this 0:17:56.400 --> 0:18:02.640 first trading day of twenty three. This is Bloomberg Markets 0:18:02.720 --> 0:18:05.800 headlines and breaking news twenty four hours a day at 0:18:05.840 --> 0:18:09.800 Bloomberg dot Com at Bloomberg Business Outland at Bloomberg Quick Tape. 0:18:09.960 --> 0:18:19.000 Please she's a Bloomberg Business lash and I'm Karen Moscow. 0:18:19.040 --> 0:18:21.800 And this updates brought to you by Innovation Refunds. This 0:18:21.920 --> 0:18:24.960 is your daily reminder from Innovation Refunds to apply for 0:18:25.040 --> 0:18:28.280 a payroll tax refund of your smaller medium sized business 0:18:28.440 --> 0:18:32.840 was impacted by COVID nineteen. Innovation Refunds clients already claimed 0:18:32.840 --> 0:18:36.480 over two billion dollars in payroll tax refunds. Gets started 0:18:36.520 --> 0:18:40.840 at get refunds dot com. And futures are higher this morning. 0:18:40.840 --> 0:18:42.960 We checked the markets all day long year on bloomberg 0:18:43.080 --> 0:18:45.080 s and P futures up thirty two points, up a 0:18:45.160 --> 0:18:47.639 tens of upper cent. Dal Future is up eight tens 0:18:47.640 --> 0:18:50.280 of upper center two hundred fifty six points. At madsday 0:18:50.359 --> 0:18:53.119 futures up one percent for one hundred eight points. The 0:18:53.240 --> 0:18:56.000 decks in Germany's up one at a quarter percent. Ten 0:18:56.080 --> 0:18:59.120 year treasury up one the yeld three point seven five 0:18:59.160 --> 0:19:01.440 percent a yell, then a two year four point three 0:19:01.520 --> 0:19:04.520 five percent. Nine nights screwed oil is down one point 0:19:04.560 --> 0:19:07.360 one percent on ninety one cents at seventy thirty five 0:19:07.359 --> 0:19:10.160 cents in barrel. Comic School is up seven tenths per center. 0:19:10.200 --> 0:19:13.000 Twolve dollars thirty cents at eighteen and thirty eight fifty 0:19:13.000 --> 0:19:16.040 announced the euro one point oh five to five against 0:19:16.040 --> 0:19:18.440 the dollar. British found one point one nine to three, 0:19:19.040 --> 0:19:21.560 and that's a Bloomberg business flash. Now here's Michael Barr 0:19:21.720 --> 0:19:24.320 with more on what's going on around the world. Michael Karen. 0:19:24.400 --> 0:19:28.359 Representative Kevin McCarthy's chances of becoming House Speaker remain endowed 0:19:28.400 --> 0:19:32.359 as Republicans formally take control of the Chamber today. McCarthy 0:19:32.359 --> 0:19:35.040 can't lose more than four GOP votes in his bid 0:19:35.080 --> 0:19:38.960 for speaker. In the NBA, the Knicks, Nets, Warriors, and 0:19:39.040 --> 0:19:43.359 Cavaliers won. Cleveland's Donovan Mitchell scored seventy one points. In hockey, 0:19:43.400 --> 0:19:47.000 the Bruins one Bill's defensive mac Tomar Hamlet is in 0:19:47.040 --> 0:19:50.080 critical condition after he suffered a cardiac arrest on the field. 0:19:50.400 --> 0:19:53.760 Monday nights game has been postponed against the Bengals. Funeral 0:19:53.840 --> 0:19:56.679 services take place today for soccer great Pele and Brazil, 0:19:56.720 --> 0:19:59.360 who died last week at age eighty two. Global News 0:19:59.400 --> 0:20:01.199 twenty four hour was a day on the RAN on 0:20:01.200 --> 0:20:04.200 Bloomberg Quick Take powered by more than twenty seven hundred 0:20:04.240 --> 0:20:07.320 journalist and antalyist more than a D twenty countries. Michael Barr, 0:20:07.440 --> 0:20:10.240 this is Bloomberg, all right, Michael, Thanks at six on 0:20:10.240 --> 0:20:13.080 Wall Street. I'm Nathan Hagar. This is Bloomberg day Break. 0:20:13.080 --> 0:20:14.960 We want to focus now in a couple of Elon 0:20:15.040 --> 0:20:19.040 Musk led companies that aren't Twitter. We're watching shares of 0:20:19.080 --> 0:20:22.000 Tesla this morning. They're down two and two thirds percent 0:20:22.119 --> 0:20:25.119 in early trading after the electric vehicle maker hit a 0:20:25.160 --> 0:20:28.520 new record for deliveries in its latest quarter, but uh 0:20:28.600 --> 0:20:32.239 still short of Wall Street estimates, and space X is 0:20:32.359 --> 0:20:35.879 reportedly entering a new fundraising round that would value the 0:20:35.960 --> 0:20:39.080 rocket company at a hundred thirty seven billion dollars. Let's 0:20:39.080 --> 0:20:41.760 bring in Alex Web for more on these stories. Bloomberg 0:20:41.800 --> 0:20:45.040 Quick Take correspondent and our go to guy for tech 0:20:45.160 --> 0:20:48.760 and in recent weeks all things Elon Musk related. Alex, 0:20:48.840 --> 0:20:50.800 Good morning. Great to have you with us on this 0:20:51.040 --> 0:20:54.240 first trading day of the new year. So a Tesla 0:20:54.280 --> 0:20:57.879 posted a new quarterly delivery record, but not enough to 0:20:57.920 --> 0:21:01.359 meet Wall Street or even I guess Elon us on expectations. 0:21:01.359 --> 0:21:04.360 Did he set the bar too high. Well, it's only 0:21:04.359 --> 0:21:07.040 seems so. They had um you know, the company and 0:21:07.080 --> 0:21:11.040 forecast expanding deliveries by they managed to expand it by 0:21:11.080 --> 0:21:15.920 about the target was the analyst consensus was four one 0:21:16.000 --> 0:21:21.320 thousand vehicles hit four hundred five thousand. That's even with 0:21:21.520 --> 0:21:25.159 some heavy discounting that came in. It speaks to the 0:21:25.359 --> 0:21:29.040 slowness in the automotive industry, and of course especially in 0:21:29.119 --> 0:21:31.640 electric vehicles where the price point tends to be quite 0:21:31.640 --> 0:21:34.160 a bit higher. So is this just a story about 0:21:34.280 --> 0:21:38.760