1 00:00:02,440 --> 00:00:05,920 Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is is Bloomberg 2 00:00:06,000 --> 00:00:10,720 Speaker 1: Daybreak for Thursday, November two. Coming up the Shower Investors 3 00:00:10,760 --> 00:00:14,239 Speaker 1: price for this morning's inflation report, the Justice Department looks 4 00:00:14,240 --> 00:00:18,479 Speaker 1: into the turmoil surrounding the Crypto Exchange FTX. Control of 5 00:00:18,480 --> 00:00:21,759 Speaker 1: the Senate comes down to three states, and Elon must 6 00:00:21,760 --> 00:00:25,760 Speaker 1: tells Twitter workers to prepare for difficult times ahead. Hurricane 7 00:00:25,800 --> 00:00:28,600 Speaker 1: Nicole as at the east coast of Florida. Plus the 8 00:00:28,720 --> 00:00:31,160 Speaker 1: U S has about a hundred thousand of Russian soldiers 9 00:00:31,200 --> 00:00:34,160 Speaker 1: have been killed in Ukraine. I'm Michael Barr. More ahead 10 00:00:34,360 --> 00:00:36,880 Speaker 1: up John stash Our in sports than nets after naming 11 00:00:37,000 --> 00:00:40,520 Speaker 1: Jacque Vauder permanent coach blew out, the next local hockey 12 00:00:40,600 --> 00:00:44,840 Speaker 1: teams all played tonight. That's all straight ahead on Bloomberg 13 00:00:44,920 --> 00:00:50,040 Speaker 1: day Break on Bloomberg eleven three on New York, Bloomberg Washington, 14 00:00:50,159 --> 00:00:54,240 Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 15 00:00:54,280 --> 00:00:58,240 Speaker 1: San Francisco, Sirius x M one nine and around the 16 00:00:58,320 --> 00:01:01,680 Speaker 1: world on Bloomberg Radio Dot. Come and buy the Bloombird 17 00:01:01,720 --> 00:01:10,040 Speaker 1: business At Good Morning. I'm Nathan Hager and I'm Karen 18 00:01:10,120 --> 00:01:13,360 Speaker 1: Moscow US DOT in Next futures on the rise this morning. 19 00:01:13,400 --> 00:01:15,280 Speaker 1: We are coming up to a fable one on Wall Street, 20 00:01:15,280 --> 00:01:17,480 Speaker 1: and we check the markets every fifteen minutes throughout the 21 00:01:17,520 --> 00:01:20,200 Speaker 1: trading day. On Bloomberg Guess and P future is up 22 00:01:20,240 --> 00:01:23,200 Speaker 1: ten points this morning now futures of seventy nine and 23 00:01:23,280 --> 00:01:26,480 Speaker 1: as day futures up thirty two. The decks in Germany's 24 00:01:26,480 --> 00:01:29,120 Speaker 1: down at tenth of a percent, ten year treasury down 25 00:01:29,160 --> 00:01:32,280 Speaker 1: six thirty seconds at four point one zero percent, yield 26 00:01:32,319 --> 00:01:34,840 Speaker 1: on the two year four point six two percent. Nathan 27 00:01:35,000 --> 00:01:38,480 Speaker 1: now Karen futures are gaining this morning after yesterday's sell off. 28 00:01:38,600 --> 00:01:42,400 Speaker 1: Several factors contributed to the losses, including week earnings at Disney, 29 00:01:42,440 --> 00:01:46,119 Speaker 1: a crypto meltdown, and Republicans failing to sweep the mid terms. 30 00:01:46,400 --> 00:01:49,360 Speaker 1: Jimmy Lee is CEO at Wealth Consulting Group. The sell 31 00:01:49,400 --> 00:01:51,520 Speaker 1: off that we're getting from the mid terms I think 32 00:01:51,560 --> 00:01:53,760 Speaker 1: creates more opportunity. I mean, the bottom line is we're 33 00:01:53,760 --> 00:01:55,680 Speaker 1: gonna get gridlock for another couple of years, which is 34 00:01:55,720 --> 00:01:58,480 Speaker 1: what we knew was going to happen anyways, and so 35 00:01:59,160 --> 00:02:02,520 Speaker 1: I don't think it changed es a ton of different 36 00:02:02,560 --> 00:02:06,040 Speaker 1: things in terms of you know what legislation would have 37 00:02:06,120 --> 00:02:08,200 Speaker 1: been or wouldn't have been over the next two years, 38 00:02:08,240 --> 00:02:09,560 Speaker 1: and I think the focus will be then on the 39 00:02:09,600 --> 00:02:12,720 Speaker 1: presidential election. Wealth consulting groups Jimmy Lee says he's still 40 00:02:12,720 --> 00:02:16,840 Speaker 1: optimistic the Fed delivers a soft landing for the economy. Meantime, 41 00:02:16,880 --> 00:02:21,160 Speaker 1: cryptocurrencies are bouncing back a bit this morning, Nathan right Now, 42 00:02:21,360 --> 00:02:24,799 Speaker 1: Bitcoin is up six per cent at sixteen thousand, six 43 00:02:24,880 --> 00:02:28,040 Speaker 1: hundred sixty dollars. The digital currency hit the lowest levels 44 00:02:28,080 --> 00:02:30,560 Speaker 1: in two years after Binance walked away from its plan 45 00:02:30,680 --> 00:02:33,960 Speaker 1: takeover of ft x dot Com. Now the Justice Department 46 00:02:34,040 --> 00:02:37,840 Speaker 1: is investigating turmoil at ft X. Bloomberg's Doug Krisner has 47 00:02:37,880 --> 00:02:41,359 Speaker 1: the story a liquidity crisis has pushed ft X to 48 00:02:41,440 --> 00:02:44,520 Speaker 1: the brink. The firm's founder and CEO, Sam Bankman Freed 49 00:02:44,639 --> 00:02:47,800 Speaker 1: told investors without a cash injection, the company would need 50 00:02:47,880 --> 00:02:51,000 Speaker 1: to file for bankruptcy. Our sources say he said the 51 00:02:51,040 --> 00:02:54,519 Speaker 1: short follows up to eight billion dollars and ft X 52 00:02:54,639 --> 00:02:57,400 Speaker 1: needs four billion to remain solvent. And now we are 53 00:02:57,440 --> 00:02:59,480 Speaker 1: told officials from the d o J are working with 54 00:02:59,560 --> 00:03:03,720 Speaker 1: Attorney is at the SEC in investigating. Regulators are already 55 00:03:03,800 --> 00:03:07,880 Speaker 1: investigating whether ft X mishandled customer funds, and they're looking 56 00:03:07,919 --> 00:03:11,240 Speaker 1: into the firm's relationships with other parts of bank Man 57 00:03:11,320 --> 00:03:15,680 Speaker 1: Freed's crypto empire in New York. I'm Doug Chrisener Bloomberg Daybreak. Doug. Thanks. 58 00:03:15,720 --> 00:03:18,200 Speaker 1: The drama at ft X could drive bitcoin down to 59 00:03:18,400 --> 00:03:22,079 Speaker 1: thirteen thousand dollars. That's according to strategists to JP Morgan Chase. 60 00:03:22,280 --> 00:03:25,239 Speaker 1: They say, the entire crypto market faces a cascade of 61 00:03:25,360 --> 00:03:29,880 Speaker 1: margin calls and weeks of deleveraging, and many people are saying, 62 00:03:30,040 --> 00:03:31,880 Speaker 1: is this a lement moment? Are we looking at two 63 00:03:31,919 --> 00:03:34,120 Speaker 1: thousand and eight? And frankly, that was one of the 64 00:03:34,200 --> 00:03:35,960 Speaker 1: things that happened after two thousand and eight was that 65 00:03:36,080 --> 00:03:40,200 Speaker 1: through strong regulation and through strong risk management, firms had 66 00:03:40,240 --> 00:03:42,440 Speaker 1: to rebuild that kind of trust. And so I think 67 00:03:42,480 --> 00:03:44,280 Speaker 1: that's something that's the crypto sector is going to have 68 00:03:44,320 --> 00:03:45,520 Speaker 1: to look at. It's going to have to figure out 69 00:03:45,520 --> 00:03:49,320 Speaker 1: how to tackle that. CFTC Commissioner Caroline pam There, She 70 00:03:49,440 --> 00:03:52,160 Speaker 1: says there need to be strong standards to prevent crypto 71 00:03:52,240 --> 00:03:55,600 Speaker 1: contagion hitting the broader financial market. Well of next, Nathan 72 00:03:55,640 --> 00:03:58,440 Speaker 1: Attention this morning turns to the latest reading on inflation. 73 00:03:58,560 --> 00:04:01,880 Speaker 1: The widely anticipated in Humor Price Index for October comes 74 00:04:01,920 --> 00:04:04,520 Speaker 1: out any thirty am. Wall Street Time may get a 75 00:04:04,560 --> 00:04:08,360 Speaker 1: preview from Bloomberg's Michael McKee. The inflation battle isn't going 76 00:04:08,400 --> 00:04:10,520 Speaker 1: to be one quickly, but the Fed is looking for 77 00:04:10,800 --> 00:04:14,760 Speaker 1: little victories today. Supply chains are normalizing and the increasing 78 00:04:14,840 --> 00:04:19,000 Speaker 1: goods prices has been leveling off. Apparel prices, used cars, 79 00:04:19,320 --> 00:04:24,240 Speaker 1: some construction materials should see relatively smaller moves. Services is 80 00:04:24,279 --> 00:04:27,760 Speaker 1: the real question a statistical quirk, and the fading pandemic 81 00:04:27,839 --> 00:04:31,520 Speaker 1: should mean big drops for healthcare costs, but it takes 82 00:04:31,560 --> 00:04:34,120 Speaker 1: time for rent and home prices to fade. In the CPI, 83 00:04:34,440 --> 00:04:37,400 Speaker 1: they will continue to increase and keep the core elevated. 84 00:04:37,800 --> 00:04:40,800 Speaker 1: As for the headline figures, we know gasoline and food 85 00:04:40,839 --> 00:04:43,200 Speaker 1: have gone up, so Wall Street and the Fed will 86 00:04:43,279 --> 00:04:47,760 Speaker 1: largely discount those. Michael McKee, Bloomberg, Gay Break, Mike Thanks. 87 00:04:47,839 --> 00:04:50,680 Speaker 1: The Fed will be paying close attention to that inflation report. 88 00:04:50,760 --> 00:04:53,560 Speaker 1: But Minneapolis Fed President Neil cash Car he says calls 89 00:04:53,600 --> 00:04:56,520 Speaker 1: for a pivot and policy right now are misplaced. We 90 00:04:56,600 --> 00:05:00,240 Speaker 1: are a long, long long way away from that now. 91 00:05:00,640 --> 00:05:02,839 Speaker 1: So that's why any talk of a pivot is entirely 92 00:05:02,920 --> 00:05:05,599 Speaker 1: premature right now when the appolis fed President Neil cash 93 00:05:05,680 --> 00:05:08,919 Speaker 1: Cary says the Central Bank remains laser focused on inflation. 94 00:05:09,520 --> 00:05:11,960 Speaker 1: Let's pivot of politics now, Nathan and get the latest 95 00:05:12,040 --> 00:05:14,719 Speaker 1: on the midterm election results. Control of the Senate now 96 00:05:14,839 --> 00:05:18,720 Speaker 1: boils down to three races in Georgia, Nevada, and Arizona. 97 00:05:19,200 --> 00:05:22,360 Speaker 1: This as President Biden claims the best midterm performance for 98 00:05:22,440 --> 00:05:25,880 Speaker 1: an incumbent president's party in twenty years. Amy Morris has 99 00:05:25,960 --> 00:05:30,120 Speaker 1: details from our Bloomberg newsroom in Washington. Democrats had a 100 00:05:30,160 --> 00:05:33,840 Speaker 1: stronger night than expected, but Republicans are poised to control 101 00:05:33,880 --> 00:05:37,040 Speaker 1: the House. The President acknowledged that voters made it clear 102 00:05:37,160 --> 00:05:41,560 Speaker 1: their concerns about inflation and crime, issues on which Republicans campaigned, 103 00:05:41,800 --> 00:05:44,600 Speaker 1: but he says young people voted in record numbers with 104 00:05:44,760 --> 00:05:48,000 Speaker 1: additional concerns, and they found a clear and unmistakable message 105 00:05:48,000 --> 00:05:51,600 Speaker 1: if they want to preserve our democracy and protect the 106 00:05:51,760 --> 00:05:54,880 Speaker 1: right to choose. Republicans have won two hundred six House seats, 107 00:05:54,960 --> 00:05:58,040 Speaker 1: Democrats hold one eighty three, and it could take days 108 00:05:58,120 --> 00:06:00,599 Speaker 1: to know the balance of power as does off. Close 109 00:06:00,720 --> 00:06:03,400 Speaker 1: races are still being counted, Some could wind up and 110 00:06:03,520 --> 00:06:07,280 Speaker 1: recounts runoffs or in Court in Washington. I'm Amy Moore 111 00:06:07,320 --> 00:06:09,360 Speaker 1: as Bloomberg Daybreak. Thank you, Amy. And now, when it 112 00:06:09,440 --> 00:06:12,400 Speaker 1: comes to geopolitics, U S. China relations are back on 113 00:06:12,480 --> 00:06:14,760 Speaker 1: the front burner, and President Biden saying he'll aim to 114 00:06:14,839 --> 00:06:18,479 Speaker 1: avoid any concessions to Chinese President Shi Jinping when they 115 00:06:18,520 --> 00:06:21,200 Speaker 1: meet at the G twenty next week. Bloomberg said Baxter 116 00:06:21,360 --> 00:06:23,880 Speaker 1: has that story. At his news conference, Biden was asked 117 00:06:23,920 --> 00:06:27,160 Speaker 1: by Bloomberg's Jenny Leonard about his trip to Asia and 118 00:06:27,279 --> 00:06:30,799 Speaker 1: what his stance will be regarding Taiwan and Taiwan doctrine 119 00:06:30,800 --> 00:06:34,560 Speaker 1: has not changed at all from the very beginning, the 120 00:06:34,720 --> 00:06:37,720 Speaker 1: very beginning, So I'm sure we'll discuss Taiwan. I'm sure 121 00:06:37,760 --> 00:06:40,839 Speaker 1: we'll discuss a number of other issues, including fair trade. 122 00:06:41,080 --> 00:06:46,200 Speaker 1: Biden repeated he wants competition, not conflict. In San Francisco, 123 00:06:46,279 --> 00:06:49,520 Speaker 1: I'm at Baxter, Bloomberg Daybreak, right, and thanks. In corporate 124 00:06:49,600 --> 00:06:52,880 Speaker 1: news this morning, it's all about Twitter again. Elon Musk 125 00:06:53,000 --> 00:06:55,160 Speaker 1: is now emailed the company's staff for the first time. 126 00:06:55,240 --> 00:06:58,240 Speaker 1: He tells them to prepare them for quote difficult times ahead. 127 00:06:58,640 --> 00:07:01,440 Speaker 1: According to the email reviewed by Bloomberg News, must says 128 00:07:01,560 --> 00:07:04,320 Speaker 1: remote work will no longer be allowed, and employees will 129 00:07:04,360 --> 00:07:07,080 Speaker 1: be expected to be in the office at least forty 130 00:07:07,160 --> 00:07:10,720 Speaker 1: hours per week futures. This morning, again they're on the 131 00:07:10,920 --> 00:07:14,160 Speaker 1: rise and straight ahead, we have your latest local headlines, 132 00:07:14,520 --> 00:07:23,280 Speaker 1: plus a check of sports. And this is Bloomberg. Thanks Scaring. 133 00:07:23,280 --> 00:07:25,480 Speaker 1: It's five oh seven on Wall Street. Word forty integres 134 00:07:25,480 --> 00:07:27,840 Speaker 1: in Central Park head to the Lost Sixties Today, We've 135 00:07:27,840 --> 00:07:32,400 Speaker 1: already got a car fire. It's westbound in Summit. Michael 136 00:07:32,440 --> 00:07:33,880 Speaker 1: Barr is here with what else is going on in 137 00:07:33,960 --> 00:07:36,000 Speaker 1: New York and around the world. Good morning, Michael, Good 138 00:07:36,120 --> 00:07:39,560 Speaker 1: morning Nathan. It is a rare November hurricane for Florida. 139 00:07:39,920 --> 00:07:43,720 Speaker 1: Hurricane Nicole arrived overnight, slamming Florida's East coast with heavy 140 00:07:43,840 --> 00:07:46,880 Speaker 1: rain and wind gusts topping seventy five miles per hour. 141 00:07:47,320 --> 00:07:52,560 Speaker 1: Homeowners describe their backyards disappearing as massive waves lash the 142 00:07:52,640 --> 00:07:55,920 Speaker 1: dayton of each area, already bettered by Hurricane Ian six 143 00:07:56,000 --> 00:07:59,360 Speaker 1: weeks ago. Florida's Governor rhn De Santis, there is a 144 00:07:59,480 --> 00:08:02,880 Speaker 1: lot of saturated ground, and that means that trees that 145 00:08:03,040 --> 00:08:05,680 Speaker 1: normally wouldn't go over in a storm like this will 146 00:08:05,840 --> 00:08:09,520 Speaker 1: likely go over because the ground is so wet and 147 00:08:09,680 --> 00:08:13,440 Speaker 1: saturated nicole is now weakened to a tropical storm and 148 00:08:13,480 --> 00:08:17,920 Speaker 1: it's knocked out power to about fifty people. Jury deliberations 149 00:08:17,960 --> 00:08:19,920 Speaker 1: are due to start today in New York in a 150 00:08:20,040 --> 00:08:25,120 Speaker 1: rape civil case against filmmaker Paul Haggetts. His accuser, publicist 151 00:08:25,400 --> 00:08:30,400 Speaker 1: Hailey Briest's telling she's reluctantly that agreed to a drink 152 00:08:30,600 --> 00:08:34,880 Speaker 1: at the screenwriter's apartment, then was subjected to unwelcome kisses, 153 00:08:35,000 --> 00:08:38,840 Speaker 1: forced to perform oral sex, and then was raped repeatedly 154 00:08:38,960 --> 00:08:42,559 Speaker 1: after she refused. Briest lawyer says that this is a 155 00:08:42,640 --> 00:08:45,679 Speaker 1: horrible film by Paul Haggis. Haggas says it was a 156 00:08:45,760 --> 00:08:49,200 Speaker 1: consensual encounter. General Mark Milly, the chairman of the US 157 00:08:49,320 --> 00:08:52,320 Speaker 1: Joint Chiefs of Staff, says that more than one hundred 158 00:08:52,400 --> 00:08:56,440 Speaker 1: thousand Russians and probably forty Ukrainian civilians have been killed 159 00:08:56,520 --> 00:08:59,679 Speaker 1: or wounded in the war. Meanwhile, Russia ordered its troops 160 00:08:59,800 --> 00:09:03,040 Speaker 1: with draw from the southern Ukrainian city of Curson after 161 00:09:03,200 --> 00:09:07,560 Speaker 1: Kievs troops pressed forward with a counter offensive. Retired Colonel 162 00:09:07,640 --> 00:09:11,719 Speaker 1: Jeff McCaslin says the withdrawal is a major embarrassment to 163 00:09:11,800 --> 00:09:15,679 Speaker 1: Vladimir Putin. This withdrawal annalyncement by the Kremlin will result 164 00:09:15,760 --> 00:09:19,880 Speaker 1: in more and more angry criticism of Russian leadership by 165 00:09:19,960 --> 00:09:23,240 Speaker 1: hawks in Moscow who had been continually urging Mr. Putin 166 00:09:23,360 --> 00:09:27,080 Speaker 1: to escalate this particular war against Ukraine, and could result 167 00:09:27,120 --> 00:09:30,199 Speaker 1: in an intensification of the air campaign now being conducted 168 00:09:30,280 --> 00:09:35,959 Speaker 1: by Moscow using missiles and drones, particularly against Ukrainian civilian infrastructure. 169 00:09:36,080 --> 00:09:39,880 Speaker 1: Retired Colonel and McCaslin spoke to CBS. President Biden will 170 00:09:39,960 --> 00:09:42,440 Speaker 1: head to the UN Climate Summit in Egypt. Biden attends 171 00:09:42,480 --> 00:09:44,559 Speaker 1: to send a message that u s acction to fight 172 00:09:44,640 --> 00:09:48,240 Speaker 1: climate change won't shift into reverse. That has happened twice 173 00:09:48,280 --> 00:09:51,720 Speaker 1: before when the Democratic Party lost power. Global News twenty 174 00:09:51,760 --> 00:09:54,720 Speaker 1: four hours a day on air and on Bloomberg Quicktake, 175 00:09:55,000 --> 00:09:57,840 Speaker 1: powered by more than twenty seven hundred journalist and analysts 176 00:09:57,960 --> 00:10:00,480 Speaker 1: more than a hundred twenty countries. Michael bar and this 177 00:10:00,720 --> 00:10:08,000 Speaker 1: is Bloomberg, Nathan. Thank you, Michael. It's a five ten 178 00:10:08,040 --> 00:10:10,079 Speaker 1: on Wall Street. Time for the Bloomberg Sports Update, brought 179 00:10:10,080 --> 00:10:11,880 Speaker 1: to you by try stayed out of Good Morning, John 180 00:10:11,920 --> 00:10:14,400 Speaker 1: stash Our, Good morning Nathan. After the departure of Steve 181 00:10:14,559 --> 00:10:17,560 Speaker 1: Nash as NETS coach and top assistant Japes Vaughn took 182 00:10:17,600 --> 00:10:19,760 Speaker 1: over on an interim basis, but the team has played 183 00:10:19,800 --> 00:10:22,960 Speaker 1: well since then. The Nets yesterday removed the interim tag, 184 00:10:23,600 --> 00:10:26,680 Speaker 1: signed baon through next season. The next general manager Sean Mark. 185 00:10:26,720 --> 00:10:30,240 Speaker 1: There's a number of factors, you know why JV was 186 00:10:30,320 --> 00:10:32,520 Speaker 1: the right fat. I mean, obviously, I've known JV for 187 00:10:32,559 --> 00:10:34,520 Speaker 1: a long time and all of us have. And then 188 00:10:34,640 --> 00:10:36,199 Speaker 1: he's been a part of this culture. He's been a 189 00:10:36,240 --> 00:10:40,640 Speaker 1: part of what we've been building here over the years. Um, 190 00:10:40,720 --> 00:10:43,000 Speaker 1: And we look at the person he is, we look 191 00:10:43,040 --> 00:10:46,480 Speaker 1: at his connection with players. UM. I obviously look at 192 00:10:46,520 --> 00:10:49,040 Speaker 1: what's happened over the last sort of full game and 193 00:10:49,160 --> 00:10:51,680 Speaker 1: make it five because after the announcement came an easy 194 00:10:51,720 --> 00:10:53,400 Speaker 1: win for the Nets in their first Millie of the season, 195 00:10:53,440 --> 00:10:56,480 Speaker 1: with the Nick blowout in broken one twelve to eight five. 196 00:10:56,600 --> 00:10:59,640 Speaker 1: Kevin Durant was everywhere twenty nine points, twelve rebounds, twelve 197 00:10:59,679 --> 00:11:02,719 Speaker 1: that stay. Seth Curry now healthy, twenty three points in 198 00:11:02,800 --> 00:11:05,480 Speaker 1: twenty three minutes. Julius randall of the Knicks with twenty 199 00:11:05,520 --> 00:11:08,160 Speaker 1: four Nick shot only thirty two percent. They're now five 200 00:11:08,240 --> 00:11:11,120 Speaker 1: and six. The Nets are five and seven, Milwaukee is 201 00:11:11,160 --> 00:11:13,360 Speaker 1: ten and one double overtime win at Oklahoma City and 202 00:11:13,400 --> 00:11:15,880 Speaker 1: a night where the Bucks didn't use Jana's sons. The 203 00:11:15,920 --> 00:11:18,480 Speaker 1: compo you talk ten and three with a win over Atlanta. 204 00:11:18,520 --> 00:11:21,040 Speaker 1: The feeling was the Jazz we're gonna tank this season. 205 00:11:21,080 --> 00:11:23,840 Speaker 1: They traded away they're two best players. Lakers are two 206 00:11:23,920 --> 00:11:26,079 Speaker 1: and nine. Even with Lebron, James still play at a 207 00:11:26,120 --> 00:11:28,720 Speaker 1: high level. They lost with the Clippers and Lebron left 208 00:11:28,760 --> 00:11:30,839 Speaker 1: the game with a droin injury. Rangers looked at the 209 00:11:30,880 --> 00:11:33,400 Speaker 1: three game losing streak that included a home loss to 210 00:11:33,440 --> 00:11:36,679 Speaker 1: the Red Wings. They visit Detroit tonight. The Islanders host Arizona. 211 00:11:37,040 --> 00:11:39,079 Speaker 1: The Devil's host St. Louis. The Devils are going for 212 00:11:39,160 --> 00:11:41,520 Speaker 1: an eighth win in a row. Aaron Judge won the 213 00:11:41,600 --> 00:11:44,400 Speaker 1: Hank Aaron Award for the American League's top offensive player, 214 00:11:44,480 --> 00:11:47,000 Speaker 1: and Judge should add the m v P next week. 215 00:11:47,320 --> 00:11:50,160 Speaker 1: John stash Award Bloomberg Sports, Nathan thanks john S ANDP 216 00:11:50,280 --> 00:11:53,040 Speaker 1: futures right now nine points, sound futures up seventy three 217 00:11:53,120 --> 00:11:56,000 Speaker 1: nan sac futures up twenty seven points, ten your treasury 218 00:11:56,040 --> 00:11:59,040 Speaker 1: down six thirty seconds yield four point one zero percent. 219 00:11:59,120 --> 00:12:03,040 Speaker 1: Ahead of October, CPI will preview the data Next with Bemos, 220 00:12:03,240 --> 00:12:08,920 Speaker 1: Jennifer Lane, Bloomberg Sports is brought to you by Audie. 221 00:12:08,960 --> 00:12:11,040 Speaker 1: Don't let someone else drive off in the Outie Model. 222 00:12:11,120 --> 00:12:13,439 Speaker 1: You've always wanted to visit your local price state Autie 223 00:12:13,440 --> 00:12:15,120 Speaker 1: deal when you get behind the wheel of yours today, 224 00:12:15,520 --> 00:12:22,880 Speaker 1: or visit Autie offers dot Com from more information, markets, 225 00:12:23,000 --> 00:12:26,040 Speaker 1: headlines and breaking news twenty four hours a day at 226 00:12:26,080 --> 00:12:30,079 Speaker 1: Bloomberg dot Com and Bloomberg Business At and at Bloomberg Quicktape. 227 00:12:30,600 --> 00:12:39,280 Speaker 1: She's a Bloomberg Business Flash and I'm Karen Moscow and 228 00:12:39,400 --> 00:12:42,199 Speaker 1: US dot in Next. Futures are on the rise this morning, 229 00:12:42,240 --> 00:12:45,000 Speaker 1: while treasuries are slipping as investors are main on the 230 00:12:45,160 --> 00:12:48,000 Speaker 1: edge before report projected to show inflation in the world's 231 00:12:48,080 --> 00:12:52,320 Speaker 1: largest economy moderated for a fourth successive month. We checked 232 00:12:52,320 --> 00:12:54,599 Speaker 1: the markets every fifteen minutes throughout the trading day on 233 00:12:54,679 --> 00:12:57,400 Speaker 1: Bloomberg Guess and p Future is up six points this morning. 234 00:12:57,679 --> 00:13:00,559 Speaker 1: Down Future is at forty five nasdack Futures twenty two. 235 00:13:00,960 --> 00:13:03,320 Speaker 1: The decks in Germany's down about two tenths of upper 236 00:13:03,400 --> 00:13:06,280 Speaker 1: sent ten year treasury down six thirty seconds at four 237 00:13:06,320 --> 00:13:08,559 Speaker 1: point one zero percent. They yield on the two year 238 00:13:08,640 --> 00:13:11,719 Speaker 1: four point six two percent. Nine Max Screwed Oil is 239 00:13:11,800 --> 00:13:13,800 Speaker 1: down six tenths per cent or forty nine cents at 240 00:13:13,840 --> 00:13:16,640 Speaker 1: eighty five dollars thirty four cents of Barrel Comic School 241 00:13:16,679 --> 00:13:18,960 Speaker 1: down three tenths per cent or five dollars forty cents 242 00:13:19,000 --> 00:13:22,880 Speaker 1: at seventeen o eight thirty announced the euro point three 243 00:13:23,120 --> 00:13:25,559 Speaker 1: against the dollar. British found one point one three h 244 00:13:25,640 --> 00:13:28,959 Speaker 1: two and again one forty six point five. One bit 245 00:13:29,040 --> 00:13:32,120 Speaker 1: coin is up about five percent at sixteen thousand, five 246 00:13:32,200 --> 00:13:35,040 Speaker 1: hundred dollars. The CPI report is at a eight thirty 247 00:13:35,080 --> 00:13:37,520 Speaker 1: Wall Street time, along with the weekly report on initial 248 00:13:37,640 --> 00:13:40,680 Speaker 1: jobless claims. And that's a Bloomberg business flash. Now here's 249 00:13:40,720 --> 00:13:43,720 Speaker 1: Michael bar with more on what's going on around the world. Michael, 250 00:13:43,720 --> 00:13:47,360 Speaker 1: good morning, Good morning, Karen. Hurricane Nicole made landfall early 251 00:13:47,480 --> 00:13:52,000 Speaker 1: this morning along Florida's east coast, just south of Vero Beach. Nicole, 252 00:13:52,120 --> 00:13:55,079 Speaker 1: now a tropical storm, battered a large area of the 253 00:13:55,160 --> 00:13:59,000 Speaker 1: storm weary state with strong winds, a dangerous storm surge, 254 00:13:59,400 --> 00:14:03,200 Speaker 1: and of the rain. President Biden says that he expects 255 00:14:03,240 --> 00:14:06,160 Speaker 1: to make an official call early next year whether he 256 00:14:06,320 --> 00:14:09,600 Speaker 1: will seek re election for another four year term. Meanwhile, 257 00:14:09,679 --> 00:14:12,480 Speaker 1: the struggle for control of the U. S. Senate boils 258 00:14:12,520 --> 00:14:17,640 Speaker 1: down to three uncalled races from Tuesday, Georgia, Nevada, and Arizona, 259 00:14:17,960 --> 00:14:20,560 Speaker 1: with each party needing to win two of those states 260 00:14:20,640 --> 00:14:23,760 Speaker 1: to secure a majority in the NBA. The nets rolled 261 00:14:23,800 --> 00:14:27,520 Speaker 1: over the next one eighty five, the Celtics one in hockey. 262 00:14:27,600 --> 00:14:31,440 Speaker 1: The Capital's Lost Week ten begins in the NFL. Tonight, 263 00:14:31,800 --> 00:14:34,760 Speaker 1: the Falcons play at the Panthers. Global News twenty four 264 00:14:34,800 --> 00:14:38,320 Speaker 1: hours a day on air and on Bloomberg Quicktake, powered 265 00:14:38,360 --> 00:14:41,160 Speaker 1: by more than twenty seven hundred journalists and analysts more 266 00:14:41,200 --> 00:14:44,160 Speaker 1: than a hundred twenty countries. Michael bar this is Bloomberg 267 00:14:44,240 --> 00:14:46,360 Speaker 1: nath Alright, Michael, thank you at his five nineteen on 268 00:14:46,400 --> 00:14:49,480 Speaker 1: Wall Street Live from the Bloomberg Interactive Broker Studios. This 269 00:14:49,680 --> 00:14:52,760 Speaker 1: is Bloomberg Daybreak on the morning where markets are gonna 270 00:14:52,800 --> 00:14:56,280 Speaker 1: be focused on inflation. So let's bring in Jennifer Lee 271 00:14:56,760 --> 00:15:00,240 Speaker 1: as we wait October Consumer Prices, senior economist at EMO 272 00:15:00,360 --> 00:15:03,320 Speaker 1: Capital Markets. Jen Good morning. Are we going to start 273 00:15:03,360 --> 00:15:05,240 Speaker 1: to see the effects of all these rate hikes on 274 00:15:05,360 --> 00:15:08,000 Speaker 1: price pressures this morning? Oh? Good morning? Oh you know, 275 00:15:08,120 --> 00:15:11,240 Speaker 1: I hope so it's been We've had three hundred and 276 00:15:11,360 --> 00:15:14,760 Speaker 1: seventy five basis points of rate hikes so far this year, 277 00:15:14,880 --> 00:15:16,560 Speaker 1: and you know, just given you know, and I'm just 278 00:15:16,600 --> 00:15:18,560 Speaker 1: gonna looking at the calendar over the last couple of 279 00:15:18,600 --> 00:15:21,040 Speaker 1: weeks because it's a late day to week, but you know, 280 00:15:21,080 --> 00:15:22,560 Speaker 1: I've just given the fact that we've had so many 281 00:15:22,600 --> 00:15:25,240 Speaker 1: weight rate hikes and you still saw, you know, a 282 00:15:25,400 --> 00:15:29,080 Speaker 1: big increase in employment. Wage growth is still strong. You know, 283 00:15:29,200 --> 00:15:31,600 Speaker 1: auto sales you know, jumped to the highest level in 284 00:15:32,200 --> 00:15:34,280 Speaker 1: so far this year. I think, uh, the I s 285 00:15:34,400 --> 00:15:37,960 Speaker 1: M surveys are showing that there's activities continue to advance, 286 00:15:38,000 --> 00:15:40,360 Speaker 1: although at a slower pace, you know, so it's you know, 287 00:15:40,520 --> 00:15:42,000 Speaker 1: there's a price to pay for that, and that's still 288 00:15:42,040 --> 00:15:44,600 Speaker 1: going to be higher inflation. So you know, we're still 289 00:15:44,680 --> 00:15:47,920 Speaker 1: looking for some you know, someone some some bigger prints today, 290 00:15:48,360 --> 00:15:50,680 Speaker 1: uh point seven percent month to month of the headline 291 00:15:51,240 --> 00:15:54,520 Speaker 1: um eight percent headline and probably sticky core CPI at 292 00:15:54,600 --> 00:15:57,800 Speaker 1: six point six percent UM. But you know, of course 293 00:15:57,840 --> 00:15:59,080 Speaker 1: there's a lot of focused on the head but we 294 00:15:59,080 --> 00:16:01,040 Speaker 1: how itis have to remember to keep an eye on 295 00:16:01,080 --> 00:16:02,840 Speaker 1: the month to month changes because I think that's what 296 00:16:03,200 --> 00:16:05,440 Speaker 1: the FED is also keeping a very very close s 297 00:16:05,600 --> 00:16:09,640 Speaker 1: on just to see UM some signs of slower inflation growth. 298 00:16:10,120 --> 00:16:13,120 Speaker 1: Those numbers are higher than the consensus on the Bloomberg terminal. 299 00:16:13,200 --> 00:16:16,120 Speaker 1: What's got you thinking that inflation could be stickier for longer. 300 00:16:17,000 --> 00:16:19,400 Speaker 1: It's because it's been so so broad based. It's no longer. 301 00:16:19,560 --> 00:16:21,200 Speaker 1: You know, at the beginning it was all like a 302 00:16:21,320 --> 00:16:25,320 Speaker 1: Russia and energy and then food, but it's clearly spread 303 00:16:25,400 --> 00:16:27,440 Speaker 1: beyond that. You know, what was again with with the 304 00:16:27,480 --> 00:16:32,000 Speaker 1: core CPR remaining UM broadly higher and stickier UM. And 305 00:16:32,080 --> 00:16:33,920 Speaker 1: you know, of course, you know, uh as as we're 306 00:16:33,920 --> 00:16:37,120 Speaker 1: also watching for signs of wage price that wage price spiral, 307 00:16:37,640 --> 00:16:40,520 Speaker 1: which obviously can be very dangerous once it it actually gets, 308 00:16:40,560 --> 00:16:44,320 Speaker 1: you know, and really embedded into the consumer mindset. UM. 309 00:16:44,600 --> 00:16:46,600 Speaker 1: But because of all that, you know, you're seeing businesses 310 00:16:46,640 --> 00:16:49,320 Speaker 1: pushing as much as they can, you know, these higher 311 00:16:49,400 --> 00:16:52,800 Speaker 1: wages and the higher input prices back down to the consumer. 312 00:16:52,880 --> 00:16:55,040 Speaker 1: And you know, a lot of businesses are doing that, 313 00:16:55,240 --> 00:16:57,280 Speaker 1: even though there are some signs I think of a 314 00:16:57,960 --> 00:17:00,000 Speaker 1: some pushback. I think that was the latest Space book 315 00:17:00,280 --> 00:17:03,240 Speaker 1: actually mentioned that, which was actually very interesting. But still 316 00:17:03,280 --> 00:17:05,800 Speaker 1: you know, they're still pushing it down across a broad 317 00:17:05,840 --> 00:17:09,720 Speaker 1: based industries across goods and services something. That's why core 318 00:17:09,800 --> 00:17:12,520 Speaker 1: CPI is going to remain fairly sticky. So does that 319 00:17:12,640 --> 00:17:16,000 Speaker 1: mean that in our jumbo sized rate hikes should be 320 00:17:16,119 --> 00:17:18,320 Speaker 1: sticky as well, and that the FED should continue on 321 00:17:18,480 --> 00:17:20,639 Speaker 1: with seventy five basis point moves or is there a 322 00:17:20,680 --> 00:17:23,360 Speaker 1: case for the FED to pull things back and wait 323 00:17:23,440 --> 00:17:25,720 Speaker 1: for the effects of the rate hikes to trickle their 324 00:17:25,720 --> 00:17:28,200 Speaker 1: way into the economy. Um, you know what, it would 325 00:17:28,200 --> 00:17:30,240 Speaker 1: be pretty bad news that we saw like a fifth 326 00:17:30,400 --> 00:17:32,920 Speaker 1: seventy five basis point rate hike, But I think, you know, 327 00:17:33,000 --> 00:17:35,240 Speaker 1: fifty pieces points is still quite sizeable. I mean, I 328 00:17:35,320 --> 00:17:37,880 Speaker 1: think are um, you know, our expectations of how old 329 00:17:37,880 --> 00:17:40,840 Speaker 1: things are, what what defined um jumbo these days have 330 00:17:41,040 --> 00:17:43,840 Speaker 1: changed considerably. UM you know, I remember when fifty basis 331 00:17:43,840 --> 00:17:45,639 Speaker 1: points was going to be a job jodge dropper, and 332 00:17:45,680 --> 00:17:49,200 Speaker 1: now fifty basis points will be considered um better. But 333 00:17:49,280 --> 00:17:51,679 Speaker 1: I think seventy five basis points for four in a row, 334 00:17:51,760 --> 00:17:54,200 Speaker 1: that's probably enough. And he already says at the last 335 00:17:54,400 --> 00:17:56,439 Speaker 1: meeting during the press conference that you know they're going 336 00:17:56,520 --> 00:17:58,359 Speaker 1: to sit back and sort of watch to see how 337 00:17:58,800 --> 00:18:00,760 Speaker 1: what plays out and what the US of all these 338 00:18:01,200 --> 00:18:04,840 Speaker 1: rate HIGs are going to be they can't be frontloading forever. Um. 339 00:18:05,320 --> 00:18:07,080 Speaker 1: You know, I think that's it's time, after the inns 340 00:18:07,080 --> 00:18:08,639 Speaker 1: any five basis points to just take it back to 341 00:18:08,680 --> 00:18:11,159 Speaker 1: notch and see what the leg effects are on the 342 00:18:11,240 --> 00:18:14,040 Speaker 1: overall economy. And I guess there's gonna be another opportunity 343 00:18:14,119 --> 00:18:16,320 Speaker 1: for the Fed to watch and see what effect the 344 00:18:16,720 --> 00:18:18,560 Speaker 1: rate hikes have had, because we're going to get one 345 00:18:18,640 --> 00:18:21,760 Speaker 1: more inflation print another jobs report before the next decision. 346 00:18:21,880 --> 00:18:24,720 Speaker 1: So in our last minute here Jen, how important is 347 00:18:24,880 --> 00:18:28,600 Speaker 1: this particular inflation print when it comes to the FEDS 348 00:18:28,640 --> 00:18:30,919 Speaker 1: thinking on rate hikes. You know, they're they're they're all 349 00:18:30,960 --> 00:18:33,680 Speaker 1: I'm gonna be gonna um you know who we can say. 350 00:18:33,760 --> 00:18:36,240 Speaker 1: You know, they're all important obviously, but I think we 351 00:18:36,359 --> 00:18:38,680 Speaker 1: can't look at these. We can't read too much into 352 00:18:38,760 --> 00:18:40,600 Speaker 1: one month. You know, back and remember back in that 353 00:18:40,720 --> 00:18:43,200 Speaker 1: the July reading when the course CBI take lower on 354 00:18:43,240 --> 00:18:45,399 Speaker 1: a month month basis, and you know, everyone got all 355 00:18:45,440 --> 00:18:48,920 Speaker 1: excited and the whole the word pivot, remember enter the discussion, 356 00:18:48,960 --> 00:18:51,600 Speaker 1: but there was obviously very short lived. So definitely can't 357 00:18:51,640 --> 00:18:53,880 Speaker 1: read too much into one month. But you know, two months, 358 00:18:54,240 --> 00:18:56,760 Speaker 1: let's just say, two months of of of slower inflation, 359 00:18:56,840 --> 00:18:59,280 Speaker 1: I think would be very interesting and would probably help 360 00:18:59,320 --> 00:19:01,120 Speaker 1: the Feds to fit and to sort of slow down 361 00:19:01,160 --> 00:19:03,240 Speaker 1: the piece of rad Hicks, which is what we are expecting, 362 00:19:03,720 --> 00:19:06,119 Speaker 1: all right, Jennifer Lee as always great to get your 363 00:19:06,160 --> 00:19:10,840 Speaker 1: thoughts ahead of another inflation read. That's Jennifer Lee, senior 364 00:19:10,880 --> 00:19:14,880 Speaker 1: economist at Demo Capital Markets, calling for seven tenths increase 365 00:19:15,000 --> 00:19:18,800 Speaker 1: in month over month headline inflation. The consensus of economists 366 00:19:18,800 --> 00:19:22,119 Speaker 1: surveyed by Bloomberg calls for six tenths per cent. We 367 00:19:22,240 --> 00:19:25,120 Speaker 1: get the official numbers eight thirty am. Wall Street time, 368 00:19:25,359 --> 00:19:28,640 Speaker 1: and we will have full coverage for you across Bloomberg 369 00:19:28,720 --> 00:19:31,840 Speaker 1: Radio and on Bloomberg Television as well. Looking ahead to 370 00:19:31,880 --> 00:19:35,240 Speaker 1: the market open this morning is some slight gains. S 371 00:19:35,320 --> 00:19:38,920 Speaker 1: and P futures are higher by four points, Dow futures 372 00:19:39,000 --> 00:19:42,840 Speaker 1: up seven NASTACK futures higher by twenty points ten your 373 00:19:42,880 --> 00:19:45,719 Speaker 1: treasury down six thirty seconds. The yield four point one 374 00:19:45,840 --> 00:19:48,520 Speaker 1: zero percent yield on the two year four point six 375 00:19:48,640 --> 00:19:52,280 Speaker 1: two percent. Bitcoin moving higher this morning of five percent 376 00:19:52,440 --> 00:19:56,560 Speaker 1: sixteen thousand, five hundred dollars. With the Justice Department now 377 00:19:56,680 --> 00:20:01,240 Speaker 1: looking into binance backing away from a bailout for Crypto 378 00:20:01,320 --> 00:20:08,280 Speaker 1: Exchange f TX. This is Bloomberg Bloomberg Daybreak, brought to 379 00:20:08,280 --> 00:20:10,040 Speaker 1: you by the New York Community Trust. Your name will 380 00:20:10,080 --> 00:20:11,840 Speaker 1: live on as a champion of the causes you care 381 00:20:11,840 --> 00:20:14,040 Speaker 1: about for years to come through a charitable request to 382 00:20:14,080 --> 00:20:17,240 Speaker 1: the New York Community Trust. Learn more at Philanthropist on NYC. 383 00:20:22,560 --> 00:20:27,080 Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York, 384 00:20:27,200 --> 00:20:31,120 Speaker 1: Bloomberg and living freed to Washington, d C, Bloomberg. One 385 00:20:31,280 --> 00:20:34,480 Speaker 1: to Boston Bloomberg, one O six one to San Francisco 386 00:20:34,560 --> 00:20:37,600 Speaker 1: Bloomberg and No sixt to the country Sirius XM to 387 00:20:37,760 --> 00:20:40,359 Speaker 1: A one nine team and around the globe the Bloomberg 388 00:20:40,440 --> 00:20:44,880 Speaker 1: Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak 389 00:20:50,760 --> 00:20:53,080 Speaker 1: and it's five thirty on Wall Street. Good morning. I'm 390 00:20:53,160 --> 00:20:56,040 Speaker 1: Karen Moscow, I'm Nathan Hager. Bloomberg Daybreak is brought to 391 00:20:56,080 --> 00:20:59,120 Speaker 1: you by SEI. Built on advanced technologies and fifty years 392 00:20:59,119 --> 00:21:02,080 Speaker 1: of innovation, s E offers asset managers a comprehensive and 393 00:21:02,160 --> 00:21:05,840 Speaker 1: flexible operations outsourcing platform. Go to sei c dot com 394 00:21:05,920 --> 00:21:08,840 Speaker 1: slash Managers and we're just about four hours away from 395 00:21:08,880 --> 00:21:10,639 Speaker 1: the open of US trading. Let's get you up to 396 00:21:10,680 --> 00:21:12,400 Speaker 1: date on the news you need to know. At this hour. 397 00:21:12,680 --> 00:21:15,880 Speaker 1: US futures are steady after yesterday's sell off. Today we're 398 00:21:15,920 --> 00:21:19,560 Speaker 1: gearing up for October's inflation report. Phill Palumbo with Palumbo 399 00:21:19,600 --> 00:21:22,720 Speaker 1: Wealth Management says, as prices run hot, we're still waiting 400 00:21:22,760 --> 00:21:25,240 Speaker 1: for a market bottom. When will the bottom be put in? 401 00:21:25,560 --> 00:21:27,240 Speaker 1: The Keith answer to that question is going to be 402 00:21:27,720 --> 00:21:30,920 Speaker 1: when the Fed pivots. So inflation continues to be a problem, 403 00:21:30,960 --> 00:21:32,680 Speaker 1: which means if FED not ready to pivot, which means 404 00:21:32,720 --> 00:21:36,040 Speaker 1: the bottom is not in and Fell Palumbo with Palumbo 405 00:21:36,119 --> 00:21:39,600 Speaker 1: Wealth says investors should not focus on when inflation has peaked, 406 00:21:39,640 --> 00:21:42,240 Speaker 1: but should consider where it settles. Well, the Fed is 407 00:21:42,280 --> 00:21:44,520 Speaker 1: going to be paying close attention to that CPI report 408 00:21:44,600 --> 00:21:46,800 Speaker 1: Karen at eight thirty a m. Wall Street Time, But 409 00:21:47,000 --> 00:21:49,800 Speaker 1: Minneapolis Fed President Neil cash Cary says, no matter what 410 00:21:49,920 --> 00:21:52,840 Speaker 1: the reading, it is premature to consider a pivot and policy. 411 00:21:53,200 --> 00:21:56,560 Speaker 1: Financial markets seem to believe that inflation should fall back 412 00:21:56,600 --> 00:21:59,480 Speaker 1: down towards our two percent target over the next couple 413 00:21:59,520 --> 00:22:01,960 Speaker 1: of years. I hope they're right. I know that we're 414 00:22:01,960 --> 00:22:03,239 Speaker 1: going to do what we need to do to bring 415 00:22:03,320 --> 00:22:06,680 Speaker 1: inflation back down. Minneapolis President Neil cash Cary says the 416 00:22:06,680 --> 00:22:09,320 Speaker 1: Fed's goal is still to achieve a soft landing. Turning 417 00:22:09,359 --> 00:22:12,280 Speaker 1: to Crypto Now, Bitcoin hit a two year low after 418 00:22:12,440 --> 00:22:15,880 Speaker 1: Finance walked away from its plan takeover of FTX dot 419 00:22:15,960 --> 00:22:19,200 Speaker 1: com Now JP Morgan strategists are saying the drama could 420 00:22:19,280 --> 00:22:22,760 Speaker 1: drive bitcoin down to thirteen thousand dollars. Nick Carter with 421 00:22:22,880 --> 00:22:25,320 Speaker 1: Castle Island Ventures tells us the collapse of f t 422 00:22:25,640 --> 00:22:29,400 Speaker 1: X shatters industry confidence. Is really one of the most 423 00:22:29,440 --> 00:22:32,520 Speaker 1: shocking exchange collapses in the history of the industry, one 424 00:22:32,560 --> 00:22:34,240 Speaker 1: of the worst days in the history of the industry. 425 00:22:34,480 --> 00:22:37,520 Speaker 1: We're bracing ourselves for the real fallout. Yesterday was kind 426 00:22:37,560 --> 00:22:39,480 Speaker 1: of the red wedding, but today is We're taken on 427 00:22:39,600 --> 00:22:43,200 Speaker 1: the bodies and Nick Carter with Castle Island Ventures speculates 428 00:22:43,280 --> 00:22:46,200 Speaker 1: that f t X founders Sam Bankman Freed could face 429 00:22:46,320 --> 00:22:50,080 Speaker 1: criminal liability. Still it's unclear if there was any wrongdoing 430 00:22:50,200 --> 00:22:53,280 Speaker 1: by Bankman Freed well now caring the Justice departments looking 431 00:22:53,320 --> 00:22:56,000 Speaker 1: into the term will surrounding f t X. Commodity Futures 432 00:22:56,040 --> 00:23:00,320 Speaker 1: Trading Commission Commissioner Caroline Fan tells Bloomberg, tighter regular lation 433 00:23:00,480 --> 00:23:03,520 Speaker 1: is needed in crypto needs have strong global standards to 434 00:23:03,680 --> 00:23:05,920 Speaker 1: make sure that there are no gaps in the international 435 00:23:06,000 --> 00:23:09,080 Speaker 1: regulatory framework where you can see risks like this. Bread 436 00:23:09,359 --> 00:23:12,719 Speaker 1: CFTC Commissioner Caroline fam says the crypto sector must consider 437 00:23:12,800 --> 00:23:16,240 Speaker 1: strong regulation to rebuild trust. And in politics this morning, 438 00:23:16,320 --> 00:23:19,320 Speaker 1: Nathan President Biden is claiming the best mid term performance 439 00:23:19,359 --> 00:23:22,280 Speaker 1: for an incumbent president in twenty years, but still control 440 00:23:22,320 --> 00:23:24,920 Speaker 1: of the Senate remains up for grabs. The President says 441 00:23:24,960 --> 00:23:26,920 Speaker 1: his plan right now is to seek re election in 442 00:23:27,760 --> 00:23:31,119 Speaker 1: four and he's also talking geo politics. Straight ahead, your 443 00:23:31,160 --> 00:23:34,119 Speaker 1: latest local headlines, plus a check of sports. And this 444 00:23:34,560 --> 00:23:40,760 Speaker 1: is Bloomberg. Caringe on Wall Street forty in degrees in 445 00:23:40,840 --> 00:23:43,080 Speaker 1: Central Park headed to the Lost Sixties. Today, got a 446 00:23:43,119 --> 00:23:47,360 Speaker 1: new crash westbound Jackie Robinson Parkway at Metropolitan Avenue. Details 447 00:23:47,400 --> 00:23:49,800 Speaker 1: coming up in traffic. First Michael Barr with what else 448 00:23:49,920 --> 00:23:51,879 Speaker 1: is going on in New York and around the world. Michael, 449 00:23:51,960 --> 00:23:54,720 Speaker 1: thank you very much, Nathan. Hurricane the Cole made landfall 450 00:23:54,840 --> 00:23:57,840 Speaker 1: along the east coast of Florida this morning. The rare 451 00:23:57,920 --> 00:24:01,560 Speaker 1: November hurricane had already let the food shut down airports 452 00:24:01,600 --> 00:24:06,280 Speaker 1: and theme parks, and order evacuations that included former President 453 00:24:06,359 --> 00:24:10,240 Speaker 1: Donald Trump, Samra Logo Club. Florida's Governor RHN de Santis 454 00:24:10,720 --> 00:24:13,280 Speaker 1: the windfield from the storm's very large, and we expect 455 00:24:13,320 --> 00:24:17,560 Speaker 1: impacts the stretch far beyond the center track, including tropical 456 00:24:17,640 --> 00:24:21,439 Speaker 1: storm force winds as far nearth north as Jacksonville. Governor 457 00:24:21,520 --> 00:24:25,160 Speaker 1: de Santis warned that Nicole storm surge could further erode 458 00:24:25,200 --> 00:24:28,919 Speaker 1: many beaches hit by Hurricane Ian in September. Nicole, now 459 00:24:29,000 --> 00:24:32,000 Speaker 1: a tropical storm is forecast ahead into Georgia and the 460 00:24:32,119 --> 00:24:35,560 Speaker 1: Carolina's Later. The Chairman of the Joint Chiefs of Staff, 461 00:24:35,640 --> 00:24:39,000 Speaker 1: Mark Milly, says well over one hundred thousand Russian soldiers 462 00:24:39,320 --> 00:24:42,639 Speaker 1: and as many as forty thousand Ukrainian civilians have been 463 00:24:42,760 --> 00:24:46,680 Speaker 1: killed or wounded in the war. Meanwhile, Russia announced a 464 00:24:46,800 --> 00:24:50,960 Speaker 1: retreat from Curson, a regional capital in southern Ukraine that 465 00:24:51,080 --> 00:24:54,480 Speaker 1: it seized early in the war. Retired Colonel Jeff McCaslin 466 00:24:54,600 --> 00:24:57,200 Speaker 1: says that a pull out from the city would be 467 00:24:57,280 --> 00:25:00,000 Speaker 1: a major setback from Moscow. The Russian with raw would 468 00:25:00,040 --> 00:25:02,960 Speaker 1: not only be a major embarrassment to Mr. Putin, but 469 00:25:03,080 --> 00:25:06,160 Speaker 1: also allow Ukraine to win back territory in the Zapparitia 470 00:25:06,240 --> 00:25:10,359 Speaker 1: region as well as southern Ukraine. This will position Keevan 471 00:25:10,400 --> 00:25:13,640 Speaker 1: his forces to seek to recover all of Crimea, which 472 00:25:13,640 --> 00:25:16,760 Speaker 1: it lost in two thousand and fourteen, as well as 473 00:25:16,760 --> 00:25:19,720 Speaker 1: allowing them to stop the flow of fresh water into Crimea. 474 00:25:20,240 --> 00:25:23,960 Speaker 1: Retired at Colonel mcconslin told CBS there have been reports 475 00:25:24,040 --> 00:25:27,520 Speaker 1: that the Russian military leadership had urged Putin to allow 476 00:25:27,640 --> 00:25:30,800 Speaker 1: them to withdraw in order to avoid a potential military disaster, 477 00:25:31,200 --> 00:25:34,080 Speaker 1: but Putin said no. Now that w n B A 478 00:25:34,160 --> 00:25:37,119 Speaker 1: star Britney Griner has been moved to a Russian Pinot 479 00:25:37,200 --> 00:25:40,280 Speaker 1: colony to serve out here nine years sentence, President Biden 480 00:25:40,320 --> 00:25:42,920 Speaker 1: gave an update on the case. Biden says that he 481 00:25:43,040 --> 00:25:46,040 Speaker 1: hopes now with the U. S midterms over with Moscow 482 00:25:46,240 --> 00:25:49,280 Speaker 1: will be willing to talk more seriously about a prisoners swamp. 483 00:25:49,560 --> 00:25:53,800 Speaker 1: We've had a number of discussions so far, and uh, 484 00:25:54,080 --> 00:25:57,600 Speaker 1: I'm hopeful that now that our election is over, there's 485 00:25:57,640 --> 00:26:02,560 Speaker 1: a willingness to to negotiate more specifically with this. Grinder 486 00:26:02,760 --> 00:26:05,400 Speaker 1: has been sent to a Russian penal colony to serve 487 00:26:05,440 --> 00:26:09,160 Speaker 1: her sentence for drug possession. A federal grand jury indicted 488 00:26:09,240 --> 00:26:12,280 Speaker 1: David de pop on charges of assault and attempted kidnapping 489 00:26:12,320 --> 00:26:15,120 Speaker 1: in the attack on Paul Pelosi, the husband of House 490 00:26:15,119 --> 00:26:18,920 Speaker 1: Speaker Nancy Pelosi. Global News twenty four hours a day 491 00:26:19,119 --> 00:26:22,160 Speaker 1: on air and on Bloomberg Quick Take, powered by more 492 00:26:22,240 --> 00:26:24,520 Speaker 1: than twenty seven hundred journalists and analysts for more than 493 00:26:24,560 --> 00:26:28,280 Speaker 1: a hundred twenty countries. Michael barn this is Bloomberg nat It. Michael. 494 00:26:28,359 --> 00:26:35,920 Speaker 1: Thanks six on Wall Street Time for the Bloomberg Sports update, 495 00:26:35,960 --> 00:26:37,720 Speaker 1: brought to you by Tri State out He Here's John 496 00:26:37,760 --> 00:26:41,080 Speaker 1: sen Chew. Thanks Nathan blowout at Barkley's. The Nets jumped 497 00:26:41,119 --> 00:26:43,359 Speaker 1: in further next right off the bat and never let up. 498 00:26:43,400 --> 00:26:45,840 Speaker 1: The final was one twelve to eighty five, with Kevin 499 00:26:45,880 --> 00:26:48,760 Speaker 1: Durant going twenty nine points and he had a triple double, 500 00:26:48,800 --> 00:26:51,640 Speaker 1: and the Nets held the next to just thirty two. Hurty. 501 00:26:51,720 --> 00:26:54,720 Speaker 1: That's three and one since the Kyrie Irving's suspension and 502 00:26:55,119 --> 00:26:57,240 Speaker 1: the lawsuit by only two points. They've also been playing 503 00:26:57,320 --> 00:27:00,639 Speaker 1: well since Jacque Vaughn replaced Steve Nash as coach, or 504 00:27:00,680 --> 00:27:04,120 Speaker 1: the Nets have rewarded Vaughan no longer their interim coach. 505 00:27:04,160 --> 00:27:06,200 Speaker 1: He assigned through next year. He's been a loyal Net 506 00:27:06,640 --> 00:27:09,439 Speaker 1: seven years as an assistant. Vaughn was also the interim 507 00:27:09,480 --> 00:27:12,840 Speaker 1: head coach at the end of twenty Right after Nash left, 508 00:27:12,960 --> 00:27:16,080 Speaker 1: cave the reports the Nets wanted to hire em A Eudoka, 509 00:27:16,320 --> 00:27:18,920 Speaker 1: x NET assistant. He coached the Celtics to the NBA 510 00:27:19,000 --> 00:27:22,680 Speaker 1: Finals last season and then got suspended for a relationship 511 00:27:22,720 --> 00:27:25,439 Speaker 1: with the team employee. Nets already dealing with the Kyrie 512 00:27:25,640 --> 00:27:30,359 Speaker 1: Saga criticized heavily for considering hiring Udoka. Clearly they had 513 00:27:30,400 --> 00:27:33,360 Speaker 1: second thoughts about that. Started the season for Seton Hall 514 00:27:33,440 --> 00:27:35,399 Speaker 1: a win by twenty five of our Monumouth the new 515 00:27:35,440 --> 00:27:38,320 Speaker 1: coach of the Pirates and Shaheen Holloway last season, and 516 00:27:38,359 --> 00:27:40,440 Speaker 1: he coached St. Peter's all the way to the ded 517 00:27:40,480 --> 00:27:42,679 Speaker 1: eight of the n C Double A Tournament. Giants back 518 00:27:42,720 --> 00:27:45,359 Speaker 1: from the by hosting Houston Sunday at Bryan Day Balls. 519 00:27:45,720 --> 00:27:49,320 Speaker 1: Presser multiple questions about the hand injuries suffered by safety 520 00:27:49,720 --> 00:27:52,840 Speaker 1: Xavier McKinney. It happened in an a t V accident 521 00:27:53,000 --> 00:27:57,920 Speaker 1: in Cabot. Um again, I feel bad for us, I 522 00:27:58,000 --> 00:28:01,679 Speaker 1: feel bad for him. UM showly not something you want 523 00:28:01,720 --> 00:28:05,080 Speaker 1: to see. UM not feel bad for the kid. In particular, 524 00:28:05,160 --> 00:28:08,520 Speaker 1: I mean got injured um and not feel bad for us. 525 00:28:08,600 --> 00:28:10,160 Speaker 1: You know, we lost a good player for a few weeks. 526 00:28:10,200 --> 00:28:12,640 Speaker 1: A couple of quarterbacks may not play Sunday Buffalos Josh 527 00:28:12,720 --> 00:28:15,359 Speaker 1: Allen as an injured elbow. The Rams Matthew Stafford is 528 00:28:15,400 --> 00:28:19,359 Speaker 1: in Kinkush and protocol. Johnsons, Bloomberg Sports Nathan, Thank you 529 00:28:19,440 --> 00:28:21,679 Speaker 1: John almost eight on Wall Street Time for the Tri 530 00:28:21,880 --> 00:28:25,760 Speaker 1: State Business Report. Here's Bloomberg's den East Pellegrini Manhattan. Luxury 531 00:28:25,800 --> 00:28:28,960 Speaker 1: rents are through the roof. Jonathan Miller's president of appraiser, 532 00:28:29,080 --> 00:28:32,920 Speaker 1: Miller Samuel. The luxury market is continuing to set new records, 533 00:28:33,160 --> 00:28:36,000 Speaker 1: and Miller says the Miller Samuel Dougas Elliman Reports shows 534 00:28:36,200 --> 00:28:38,680 Speaker 1: media and rent on new leases for luxury units jump 535 00:28:38,760 --> 00:28:42,320 Speaker 1: thirteen percent in October over September to thirteen thousand dollars 536 00:28:42,360 --> 00:28:44,760 Speaker 1: a month, but rents on the rest of the market dropped. 537 00:28:45,120 --> 00:28:47,440 Speaker 1: A stop buy back at Roseland, New Jersey based a 538 00:28:47,560 --> 00:28:51,800 Speaker 1: DP the Payroll Tax and Services Outsourcer authoriesting the purchase 539 00:28:51,840 --> 00:28:55,120 Speaker 1: of up to five billion dollars in common stock. Connecticut 540 00:28:55,200 --> 00:28:58,560 Speaker 1: based up the Malick lensmaker Coburn is selling itself. The 541 00:28:58,640 --> 00:29:02,000 Speaker 1: buyer is the California Union of Japan's meet SUE Chemicals, 542 00:29:02,280 --> 00:29:05,840 Speaker 1: and final preparations are underway for the Connecticut International Auto Show. 543 00:29:05,920 --> 00:29:08,760 Speaker 1: The three day event revs up tomorrow at Mohican Sun 544 00:29:08,920 --> 00:29:11,840 Speaker 1: Expo Center. The state's Department of Energy will be there 545 00:29:12,000 --> 00:29:16,760 Speaker 1: highlighting Connecticut's expanded nine money back tax rebate for buying 546 00:29:16,800 --> 00:29:20,120 Speaker 1: releasing electric vehicles with the chi State Business Report. I'm 547 00:29:20,160 --> 00:29:22,840 Speaker 1: Didny's Pellegrini, Denise. Thanks. It's coming up to five thirty 548 00:29:22,920 --> 00:29:24,920 Speaker 1: nine on Wall Street. Bloomberg Radio is on the air 549 00:29:25,000 --> 00:29:27,840 Speaker 1: from San Francisco to New York, London to Hong Kong. 550 00:29:27,960 --> 00:29:29,720 Speaker 1: Let's check in with our global news team for some 551 00:29:29,760 --> 00:29:32,000 Speaker 1: of the top stories heard on our three hundred affiliate 552 00:29:32,120 --> 00:29:37,920 Speaker 1: radio stations around the world. I'm Steve Podas on k 553 00:29:38,080 --> 00:29:40,959 Speaker 1: and X and Los Angeles. We're talking about whether consumers 554 00:29:41,000 --> 00:29:44,520 Speaker 1: are losing their taste for plant based meat from Beyond 555 00:29:44,680 --> 00:29:48,120 Speaker 1: met Um. Corny Donahoe on ktr H in Houston. Off 556 00:29:48,160 --> 00:29:51,560 Speaker 1: the Dental Petroleum plans to keep oil production flat next year. 557 00:29:51,640 --> 00:29:54,960 Speaker 1: Find Genus Servetti in for wfl A in Orlando. I'm 558 00:29:55,040 --> 00:29:59,120 Speaker 1: reporting that, like Disney Sea World's theme Park numbers missestimates 559 00:29:59,200 --> 00:30:02,120 Speaker 1: last quarter. I'm Stephen Carrol on Bloomberg d a B 560 00:30:02,320 --> 00:30:05,320 Speaker 1: Digital Radio in London. We've been reporting on the gyrations 561 00:30:05,360 --> 00:30:09,840 Speaker 1: and cryptocurrencies after Binance pulled its deal to buy Arrival FTX. 562 00:30:10,320 --> 00:30:14,280 Speaker 1: I'm Denise Peligwini and on KFPK and Sacramento. I'm reporting 563 00:30:14,320 --> 00:30:18,200 Speaker 1: on elon Musk corning Twitter employees. More tough times are ahead. 564 00:30:18,920 --> 00:30:21,040 Speaker 1: Those are some of the stories our twenty seven hundred 565 00:30:21,080 --> 00:30:24,280 Speaker 1: Bloomberg journalists and analysts working on this morning around the world. 566 00:30:24,680 --> 00:30:27,360 Speaker 1: In other news, New York voters approved to four point 567 00:30:27,440 --> 00:30:30,880 Speaker 1: two billion dollar environmental bond on election day, one of 568 00:30:30,920 --> 00:30:34,360 Speaker 1: the biggest wins for environmental, social, and governance infrastructure in 569 00:30:34,640 --> 00:30:37,800 Speaker 1: eight years. It is a sign of the sector's growth 570 00:30:37,880 --> 00:30:40,720 Speaker 1: in the municipal bond market. The ballot measure was backed 571 00:30:40,760 --> 00:30:44,560 Speaker 1: by fifty nine percent of voters, according to results posted 572 00:30:44,600 --> 00:30:47,360 Speaker 1: by the New York State Board of Elections. The plan 573 00:30:47,640 --> 00:30:50,640 Speaker 1: was widely expected to pass, following a long history of 574 00:30:50,760 --> 00:30:54,880 Speaker 1: successful environmental bond as in New York. The New York 575 00:30:54,960 --> 00:30:59,360 Speaker 1: Financing Plan is designed to strengthen climate and flooding resiliency 576 00:30:59,400 --> 00:31:03,680 Speaker 1: in a state still recovering from weather related disasters in 577 00:31:03,880 --> 00:31:07,200 Speaker 1: New York. Charlie Pellett Bloomberg Day Break. Okay, Charlie, thanks 578 00:31:07,320 --> 00:31:09,680 Speaker 1: SMP futures up five points right now down Future is 579 00:31:09,760 --> 00:31:13,440 Speaker 1: up twenty five Nanstack futures up twenty nine. Bitcoin trading 580 00:31:13,480 --> 00:31:16,840 Speaker 1: at sixteen thousand, four hundred dollars. Will look at the 581 00:31:17,200 --> 00:31:23,440 Speaker 1: turmoil in the crypto market. Next and Bloomberg Sports was 582 00:31:23,520 --> 00:31:25,560 Speaker 1: brought to you by Audie. Don't let someone else drive 583 00:31:25,600 --> 00:31:27,720 Speaker 1: off in the Audi model. You've always wanted to visit 584 00:31:27,760 --> 00:31:29,720 Speaker 1: your local Tri State Audie Dealers to get behind the 585 00:31:29,760 --> 00:31:32,360 Speaker 1: wheel of yours today, or visit Autie Offers dot com 586 00:31:33,120 --> 00:31:40,160 Speaker 1: for more information, markets, headlines and breaking news twenty four 587 00:31:40,200 --> 00:31:43,240 Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business 588 00:31:43,280 --> 00:31:47,320 Speaker 1: at and at Bloomberg Tricktape. He's a Bloomberg Business Flash 589 00:31:53,040 --> 00:31:55,440 Speaker 1: and I'm Karen Moscow US dot in Next. Future is 590 00:31:55,480 --> 00:31:58,320 Speaker 1: on the rise this morning. Treasuries are slipping as investors 591 00:31:58,360 --> 00:32:00,720 Speaker 1: remain on the edge before a poor projected to show. 592 00:32:00,800 --> 00:32:04,000 Speaker 1: Inflation in the world's largest economy moderated for a fourth 593 00:32:04,080 --> 00:32:07,040 Speaker 1: consecutive month, and we checked the markets every fifteen minutes 594 00:32:07,080 --> 00:32:10,160 Speaker 1: throughout the trading day on Bloomberg SMP Future is up 595 00:32:10,200 --> 00:32:12,440 Speaker 1: six points down Future is up twenty five nas day 596 00:32:12,560 --> 00:32:15,160 Speaker 1: Future is up thirty one. The decks in Germany's down 597 00:32:15,200 --> 00:32:17,560 Speaker 1: a tenth of upper cent. Ten year treasury down six 598 00:32:17,640 --> 00:32:20,800 Speaker 1: thirty seconds four point one zero percent. They yield on 599 00:32:20,880 --> 00:32:23,520 Speaker 1: the two year four point six two percent. Nine x 600 00:32:23,560 --> 00:32:26,120 Speaker 1: screwed oil down one percent on a dollar five at 601 00:32:26,120 --> 00:32:28,960 Speaker 1: eighty four dollars seventy eight cents of barrel Comics school 602 00:32:29,000 --> 00:32:31,160 Speaker 1: that a quarter percent or four dollars forty cents at 603 00:32:31,200 --> 00:32:33,880 Speaker 1: seventeen o nine thirty announced and the euro point nine 604 00:32:33,960 --> 00:32:37,360 Speaker 1: nine four four against the dollar as of Bloomberg Business Flash. Now, 605 00:32:37,440 --> 00:32:39,760 Speaker 1: here's Michael Barr with more on what's going on around 606 00:32:39,760 --> 00:32:42,200 Speaker 1: the world. Michael Karen, thank you very much. Hurricane to 607 00:32:42,280 --> 00:32:45,960 Speaker 1: Cole made landfall around three am near Vero Beach, Florida. 608 00:32:46,280 --> 00:32:48,920 Speaker 1: It has since been downgraded to a tropical storm, with 609 00:32:49,000 --> 00:32:52,320 Speaker 1: winds gusting to seventy miles an hour. About fifty five 610 00:32:52,440 --> 00:32:55,600 Speaker 1: thousand people are without power. Two days after the mid 611 00:32:55,760 --> 00:32:59,200 Speaker 1: term elections, control of the House and Senate are still unknown. 612 00:33:00,120 --> 00:33:03,600 Speaker 1: Zer Than race is unfolding in Colorado. Fewer than one 613 00:33:03,680 --> 00:33:09,040 Speaker 1: hundred votes separate Republican Congresswoman Lauren Boebert and Democrat Adam Frish. 614 00:33:09,120 --> 00:33:12,320 Speaker 1: And what could be a major upset for Republicans in 615 00:33:12,440 --> 00:33:14,800 Speaker 1: New York, a big win for the GOP Mike Lawler 616 00:33:15,120 --> 00:33:18,720 Speaker 1: beating Congressman Sean Patrick Maloney, the chairman of the Democratic 617 00:33:18,720 --> 00:33:22,240 Speaker 1: Congressional Campaign Committee NBA Action. The nets rolled over the 618 00:33:22,320 --> 00:33:26,280 Speaker 1: next one eighty five, The Celtics, one Hockey, the Capitol's 619 00:33:26,360 --> 00:33:29,200 Speaker 1: Lost Global News twenty four hours a day on air 620 00:33:29,360 --> 00:33:32,920 Speaker 1: and on Bloomberg Quicktake, powered by more than twenty seven 621 00:33:33,000 --> 00:33:35,560 Speaker 1: hundred journalists and analysts more than a hundred twenty countries. 622 00:33:35,920 --> 00:33:38,880 Speaker 1: Michael Barn this is Bloomberg. Nathan all right, Michael, thank you. 623 00:33:38,920 --> 00:33:41,200 Speaker 1: We're coming out to five forty nine on Wall Street 624 00:33:41,280 --> 00:33:45,360 Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, 625 00:33:45,400 --> 00:33:48,320 Speaker 1: and we are watching cryptocurrencies closely this morning. Right now, 626 00:33:48,400 --> 00:33:53,320 Speaker 1: bitcoins trading above sixteen thousand and sixty nine. But the 627 00:33:53,440 --> 00:33:57,760 Speaker 1: digital currency space is in turmoil with the crypto exchange 628 00:33:57,880 --> 00:34:01,480 Speaker 1: f t X morning it could go bankrupt, Rival finance 629 00:34:01,560 --> 00:34:04,680 Speaker 1: backing away from a rescue, and now the Justice Department 630 00:34:04,760 --> 00:34:06,720 Speaker 1: looking into it all. Let's get the latest from Bloomberg 631 00:34:06,760 --> 00:34:10,080 Speaker 1: Global Financial correspondent Shinali Basset, who has been watching this 632 00:34:10,200 --> 00:34:13,080 Speaker 1: saga very closely. Shanali, good morning. Of course, f t 633 00:34:13,280 --> 00:34:17,280 Speaker 1: X was founded by crypto wonder kinned Sam Bankman Freed. 634 00:34:18,360 --> 00:34:24,240 Speaker 1: What happened truly you have It's it's wild because today 635 00:34:24,320 --> 00:34:26,960 Speaker 1: what's happening is everyone is assessing the damage because you 636 00:34:27,040 --> 00:34:32,000 Speaker 1: had large, large, large investors, soft Bank, Sequoia. Sequoia had 637 00:34:32,000 --> 00:34:35,840 Speaker 1: to mark down at stake in UH to nothing essentially 638 00:34:35,920 --> 00:34:39,399 Speaker 1: for f t X after participating in rounds last year 639 00:34:39,920 --> 00:34:44,719 Speaker 1: um for their for their valuation really sky racketing. So 640 00:34:44,960 --> 00:34:48,560 Speaker 1: it's it's crazy because you have Sam Bankman Freed, who 641 00:34:48,760 --> 00:34:51,200 Speaker 1: was really a champion of the industry as well as 642 00:34:51,760 --> 00:34:53,840 Speaker 1: really working in Washington to try to train to the 643 00:34:53,920 --> 00:34:58,000 Speaker 1: rules around regulation about crypto. Here now being probed by 644 00:34:58,400 --> 00:35:00,799 Speaker 1: the United States, the Department of US as the SEC, 645 00:35:01,040 --> 00:35:04,480 Speaker 1: the CFTC on how client funds are used. At the 646 00:35:04,560 --> 00:35:07,279 Speaker 1: end of the day, the whole in FTS balance sheet 647 00:35:08,080 --> 00:35:11,600 Speaker 1: is as large as eight billion dollars. That's bigger than 648 00:35:11,640 --> 00:35:15,320 Speaker 1: the entire market value of Robin Hood, which means that 649 00:35:16,000 --> 00:35:18,400 Speaker 1: you know, where did that money go? How are they 650 00:35:18,520 --> 00:35:22,040 Speaker 1: eight billion dollars short, So they're really at very high 651 00:35:22,160 --> 00:35:26,560 Speaker 1: risk of bankruptcy at this point, and if in that event, 652 00:35:26,960 --> 00:35:29,400 Speaker 1: customers could lose a lot of money. And I keep 653 00:35:29,480 --> 00:35:32,960 Speaker 1: on stealing this line from Jim Bianco of Bianco Research 654 00:35:33,200 --> 00:35:36,160 Speaker 1: in a call that we had yesterday. Dozens of firms 655 00:35:36,360 --> 00:35:39,239 Speaker 1: could fail on the back of this because they may 656 00:35:39,320 --> 00:35:41,520 Speaker 1: not be able to get their money back from accounts 657 00:35:41,560 --> 00:35:43,400 Speaker 1: they had with f ts Yeah. I mean, you've got 658 00:35:43,520 --> 00:35:47,320 Speaker 1: some of the biggest names in finance backing this exchange, 659 00:35:47,480 --> 00:35:52,239 Speaker 1: black Rock, Sequoia, Tiger Global, Soft Bank. I mean, where 660 00:35:52,280 --> 00:35:55,560 Speaker 1: could the losses go for them? And is anybody else 661 00:35:55,640 --> 00:35:57,759 Speaker 1: gonna want to touch f t X at this point 662 00:35:58,320 --> 00:36:00,640 Speaker 1: in a bankruptcy proceed and you have to wonder what 663 00:36:00,719 --> 00:36:03,359 Speaker 1: happens to the assets. Again, this is not the only 664 00:36:03,400 --> 00:36:06,800 Speaker 1: bankruptcy proceeding we would have seen for a crypto company, 665 00:36:06,880 --> 00:36:10,200 Speaker 1: but it is certainly large. And the question at the 666 00:36:10,280 --> 00:36:12,200 Speaker 1: end of the day is not even about the investors. 667 00:36:12,239 --> 00:36:15,440 Speaker 1: It's about the consumers. It's about people who had potentially 668 00:36:15,560 --> 00:36:19,560 Speaker 1: savings with the firm as they look to trade crypto, 669 00:36:20,160 --> 00:36:24,279 Speaker 1: so the whole industry. It's interesting to see bitcoin still 670 00:36:24,360 --> 00:36:28,319 Speaker 1: trade above sixteen thousand it crashed below that yesterday. It's 671 00:36:28,360 --> 00:36:33,200 Speaker 1: the lowest levels since about If you bought bitcoin at 672 00:36:33,200 --> 00:36:36,640 Speaker 1: a thousand bucks years ago, you were still up meaningfully. 673 00:36:37,239 --> 00:36:41,960 Speaker 1: And there is in a full scale disillusionment when it 674 00:36:42,080 --> 00:36:45,959 Speaker 1: comes to the crypto industry at large, But certainly investors 675 00:36:46,400 --> 00:36:50,960 Speaker 1: who are newer to crypto especially are rethinking whether they 676 00:36:51,040 --> 00:36:53,880 Speaker 1: want to be at this time and what the industry 677 00:36:53,880 --> 00:36:56,400 Speaker 1: will look like moving forward can be a lot more 678 00:36:56,480 --> 00:36:59,760 Speaker 1: regulated and look a lot more like the financial system 679 00:36:59,800 --> 00:37:02,080 Speaker 1: we know to day. We only have about thirty seconds 680 00:37:02,160 --> 00:37:04,080 Speaker 1: left here. We got that note from JP Morgan this 681 00:37:04,200 --> 00:37:07,280 Speaker 1: morning saying the bitcoin could go down to thirteen thousand 682 00:37:07,440 --> 00:37:10,400 Speaker 1: on deleveraging. What are you watching for ne externally, not 683 00:37:10,600 --> 00:37:13,920 Speaker 1: just the prices, but the companies that might be exposed 684 00:37:13,960 --> 00:37:16,000 Speaker 1: to this, that might be wiped out or might leave 685 00:37:16,040 --> 00:37:19,719 Speaker 1: the industry completely, because I think that will determine not 686 00:37:19,880 --> 00:37:22,000 Speaker 1: just how much money was lost, but what happens from 687 00:37:22,040 --> 00:37:26,040 Speaker 1: here all right, Bloomberg's Global financial correspondent san Alli bask 688 00:37:26,080 --> 00:37:28,160 Speaker 1: I'm sure we're gonna be checking back with you in 689 00:37:28,239 --> 00:37:30,680 Speaker 1: the days of potentially weeks to come now as the 690 00:37:30,920 --> 00:37:35,120 Speaker 1: crypto crisis has the Justice Department involved. Now five fifty 691 00:37:35,200 --> 00:37:37,279 Speaker 1: three is the time now on Wall Street. Let's take 692 00:37:37,320 --> 00:37:39,719 Speaker 1: a look now at the broader market. For that, we 693 00:37:39,800 --> 00:37:43,200 Speaker 1: want to turn to Tracy McMillian, head of Global Asset 694 00:37:43,280 --> 00:37:47,440 Speaker 1: Allocations Strategy at Wells Fargo Investment Institute. It's good to 695 00:37:47,480 --> 00:37:49,879 Speaker 1: speak with you, Tracy. Has been a lot to look 696 00:37:49,960 --> 00:37:52,239 Speaker 1: at this week, not just elections, but now we're going 697 00:37:52,280 --> 00:37:56,000 Speaker 1: to be focused on inflation and the Fed path ahead. 698 00:37:56,120 --> 00:37:59,560 Speaker 1: What kind of market reaction, uh, could we see off 699 00:37:59,640 --> 00:38:03,440 Speaker 1: the back of the CPI print this morning? Well, good 700 00:38:03,520 --> 00:38:06,520 Speaker 1: morning and thanks for having me. Yeah. We think there's 701 00:38:06,680 --> 00:38:10,240 Speaker 1: probably a pretty fine line here between a negative market 702 00:38:10,320 --> 00:38:14,319 Speaker 1: response to the inflation data and a positive response. Um, 703 00:38:14,800 --> 00:38:17,560 Speaker 1: you know. I think that just goes to show how 704 00:38:17,760 --> 00:38:22,680 Speaker 1: much weight the market is placing on this data. Anything 705 00:38:22,760 --> 00:38:26,040 Speaker 1: above eight per cent on headline, we think will probably 706 00:38:26,160 --> 00:38:29,239 Speaker 1: lead to a sell off, and anything below seven point 707 00:38:29,360 --> 00:38:33,360 Speaker 1: eight it could lead to a temporary rally, um, you know. 708 00:38:33,440 --> 00:38:37,080 Speaker 1: And similarly with the core data, investors are going to 709 00:38:37,120 --> 00:38:40,000 Speaker 1: be watching that as well, and anything over six and 710 00:38:40,080 --> 00:38:44,120 Speaker 1: a half, which is the consensus number, it's probably going 711 00:38:44,200 --> 00:38:46,600 Speaker 1: to lead to a sell off. Anything under six point 712 00:38:46,680 --> 00:38:50,759 Speaker 1: four again could spark a temporary rally. But you know, 713 00:38:51,239 --> 00:38:55,040 Speaker 1: any rally we think is probably going to be temporary. 714 00:38:55,200 --> 00:38:58,719 Speaker 1: Here we're still a long ways away from that two 715 00:38:59,400 --> 00:39:03,479 Speaker 1: FED tar yet. Yeah, it is really interesting to watch 716 00:39:03,600 --> 00:39:07,160 Speaker 1: the market reaction to just about every data point that 717 00:39:07,360 --> 00:39:11,959 Speaker 1: comes out here. Uh, what could this this particular data 718 00:39:12,040 --> 00:39:15,719 Speaker 1: point mean for the FEDS rate path? Is it's something 719 00:39:15,800 --> 00:39:21,400 Speaker 1: that you're focused on. So we are watching all of 720 00:39:21,480 --> 00:39:24,680 Speaker 1: the data that's coming through, as are all market participants. 721 00:39:24,719 --> 00:39:28,319 Speaker 1: We've got you know, some more more inflation data coming 722 00:39:28,440 --> 00:39:32,160 Speaker 1: up next week, later this week, even tomorrow, the University 723 00:39:32,200 --> 00:39:38,719 Speaker 1: of Michigan's UH inflation expectations number, you know, that picks up, 724 00:39:38,800 --> 00:39:41,640 Speaker 1: then we could see, you know, that have an impact 725 00:39:41,800 --> 00:39:45,960 Speaker 1: on the FEDS path. But really what we're expecting is 726 00:39:46,040 --> 00:39:48,800 Speaker 1: between a fifty basis point in a seventy five basis 727 00:39:48,840 --> 00:39:53,320 Speaker 1: point increase in December. Um, these data could view that 728 00:39:53,560 --> 00:39:58,120 Speaker 1: towards fifty or up towards seventy. Then what's probably going 729 00:39:58,200 --> 00:40:03,799 Speaker 1: to see a few more fasis point increases into Uh, 730 00:40:04,000 --> 00:40:07,160 Speaker 1: then we do think the Fed is likely to pause, 731 00:40:07,840 --> 00:40:11,520 Speaker 1: give the rate increases time to work their way through 732 00:40:11,640 --> 00:40:14,880 Speaker 1: the economy. Um, we do think that all of this 733 00:40:15,800 --> 00:40:18,520 Speaker 1: rate increases are are going to lead to a moderate 734 00:40:18,600 --> 00:40:22,799 Speaker 1: recession next year. UM. But that recession, as we get 735 00:40:22,920 --> 00:40:26,279 Speaker 1: deeper into it, will probably start to prompt the FED 736 00:40:26,600 --> 00:40:30,120 Speaker 1: to decrease streets again. We see we see that recession 737 00:40:30,280 --> 00:40:35,560 Speaker 1: happening in conjunction with the inflation rate finally dropping enough 738 00:40:35,719 --> 00:40:39,320 Speaker 1: for them to have confidence to UM to hold and 739 00:40:39,800 --> 00:40:44,360 Speaker 1: eventually to start cutting. What's this gonna mean for earnings expectations. 740 00:40:44,480 --> 00:40:46,920 Speaker 1: We've seen a number of companies, including some of the 741 00:40:46,960 --> 00:40:52,040 Speaker 1: big tech ones, making a lot of headlines with cost cutting. Yeah. 742 00:40:52,719 --> 00:40:57,040 Speaker 1: So overall the third quarter colpline growth has has been 743 00:40:57,320 --> 00:41:02,399 Speaker 1: pretty good, but margin are under pressure here. Uh. Those 744 00:41:02,520 --> 00:41:05,360 Speaker 1: layoffs that that you mentioned, UM, coming out of the 745 00:41:05,440 --> 00:41:08,960 Speaker 1: larger tech companies in particular, we think are kind of 746 00:41:09,440 --> 00:41:13,279 Speaker 1: canaries in the coal mine, UM, showing that companies are 747 00:41:13,640 --> 00:41:18,839 Speaker 1: feeling some of that you know, margin pressure. UM. So far, 748 00:41:19,040 --> 00:41:22,359 Speaker 1: the earnings per share are up about three point one 749 00:41:22,520 --> 00:41:25,600 Speaker 1: percent year every year. We think that earnings per share 750 00:41:25,760 --> 00:41:30,360 Speaker 1: next year are probably going to fall into the negative. 751 00:41:31,440 --> 00:41:35,600 Speaker 1: And so, you know, we we do think that we're 752 00:41:35,840 --> 00:41:40,520 Speaker 1: going through a period here of adjusting those earnings expectations. 753 00:41:40,640 --> 00:41:44,200 Speaker 1: We think that overall, you know, consensus numbers are are 754 00:41:44,320 --> 00:41:46,400 Speaker 1: way too high. For next year, they're going to have 755 00:41:46,560 --> 00:41:49,839 Speaker 1: to come in and that's probably not good news for investors. 756 00:41:50,400 --> 00:41:53,359 Speaker 1: Just quickly thirty seconds here, Where do you see opportunity 757 00:41:53,440 --> 00:41:58,319 Speaker 1: with that kind of backdrop? Yeah, So our mantra really 758 00:41:58,480 --> 00:42:01,520 Speaker 1: for since the first quarter of this year has been 759 00:42:01,600 --> 00:42:05,320 Speaker 1: patients and caution. So we're going up in quality and 760 00:42:05,440 --> 00:42:08,440 Speaker 1: that means large caps and mid caps over small caps 761 00:42:08,560 --> 00:42:12,520 Speaker 1: right now, US over international, And where we're seeing some 762 00:42:12,640 --> 00:42:15,759 Speaker 1: opportunity now is really in the fixed income space. We 763 00:42:15,960 --> 00:42:20,440 Speaker 1: think we might be approaching peak yields here, so we're 764 00:42:20,480 --> 00:42:24,880 Speaker 1: extending duration into long bonds and we're creating a barbell 765 00:42:25,040 --> 00:42:29,640 Speaker 1: with our fixed income positioning, overweighting short term and overwaiting 766 00:42:29,680 --> 00:42:32,239 Speaker 1: long term. Thanks so much, Tracy, good having on with 767 00:42:32,360 --> 00:42:35,160 Speaker 1: us this morning. Tracey McMillian, head of Global asset Allocation 768 00:42:35,239 --> 00:42:39,400 Speaker 1: at Wells Fargo Investment Institute. Future is pointed higher. The 769 00:42:39,719 --> 00:42:42,279 Speaker 1: tenure treasury yield right now four point one zero percent. 770 00:42:42,360 --> 00:42:44,640 Speaker 1: Let's look at the long bond right now, the thirty 771 00:42:44,719 --> 00:42:48,160 Speaker 1: year four point to seven. You're listening to Bloomberg day 772 00:42:48,200 --> 00:42:48,439 Speaker 1: Break