Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg
Speaker 1: Daybreak for Thursday, November two. Coming up this shower investors
Speaker 1: price for this morning's inflation report, The Justice Department looks
Speaker 1: into the turmoil surrounding the crypto exchange f t X.
Speaker 1: Control of the Senate comes down to three states, and
Speaker 1: Elon must tells Twitter workers to prepare for difficult times ahead.
Speaker 1: Hurricane Nicole as at the east coast of Florida. Plus
Speaker 1: the U says about a hundred thousand Russian soldiers have
Speaker 1: been killed in Ukraine. I'm Michael Barr more a half.
Speaker 1: I'm on Stash Shower and Sports than Nets. After naming
Speaker 1: shop Vader Permanent coach blew out, the next local hockey
Speaker 1: teams all played tonight. That's all straight Ahead on Bloomberg
Speaker 1: Daybreak on Bloomberg Eliving, Freeo, New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine,
Speaker 1: San Francisco, Sirius x M one nineteen and around the
Speaker 1: world on Bloomberg Radio Dot Come and via the Bloomberg
Speaker 1: Business at Good Morning. I'm Nathan Hagar and I'm Karen Moscow,
Speaker 1: US not Getnecks future is on the rise this morning.
Speaker 1: We're coming up to six oh one on Well Street,
Speaker 1: and we check the markets every fifteen minutes throughout the
Speaker 1: trading day. On bloomberg SMP futures up, Abody points, Stout
Speaker 1: futures at forty two, Nastack futures at thirty two, and
Speaker 1: a ten year treasury down four thirty seconds. He held
Speaker 1: four point one zero percent. They yield on the two
Speaker 1: year four point six one per cent. Nathan Karen us
Speaker 1: futures are gaining after yesterday's sell off. Several factors contributed
Speaker 1: to the losses, including weak earnings from Disney, a crypto meltdown,
Speaker 1: and Republicans failing to sweep the mid terms. Jimmy Lee,
Speaker 1: as CEO at Wealth Consulting Group, the selloff that we're
Speaker 1: getting from the mid terms I think creates more opportunity.
Speaker 1: I mean, the bottom line is we're gonna get gridlock
Speaker 1: for another couple of years, which is what we knew
Speaker 1: was going to happen anyways, and so I don't think
Speaker 1: it changes a ton of different things in terms of,
Speaker 1: you know, what legislation would have been or wouldn't have
Speaker 1: been over the next two years, and I think the
Speaker 1: focus will be then on the presidential election. Wealth consulting groups.
Speaker 1: Jimmy Lee says he's still optimistic the Fed delivers a
Speaker 1: soft landing for the economy. Meantime, Nathan cryptocurrencies are bouncing
Speaker 1: back a bit this morning. Right now, Bitcoin is up
Speaker 1: more than three percent at sixteen thousand, two hundred sixty dollars.
Speaker 1: The digital currency hit the lowest levels in two years
Speaker 1: after Binance walked away from its plan takeover of f
Speaker 1: t x dot Com. Now the Justice Department is investigating
Speaker 1: turmoil at ft X. Bloomberg's Doug Krisner has the story
Speaker 1: a liquidity crisis has pushed f t X to the brink.
Speaker 1: The firm's founder and CEO, Sam Bankman Freed told investors
Speaker 1: without a cash injection, the company would need to file
Speaker 1: for bankruptcy. Our sources say he said the short follows
Speaker 1: up to eight billion dollars and f t X needs
Speaker 1: four billion to remain solvent. And now we're told officials
Speaker 1: from the d o J are working with attorneys at
Speaker 1: the SEC in investigating. Regulators are already investigating whether ft
Speaker 1: X mishandled customer funds, and they're looking into the firm's
Speaker 1: relationships with other parts of bank Man Freed's crypto empire
Speaker 1: in New York. I'm Doug Prisoner Bloomberg Daybreak. All right, Doug. Thanks.
Speaker 1: Investors and officials are calling for tighter regulation of the
Speaker 1: crypto markets, especially after this recent meltdown. We caught up
Speaker 1: with the Commissioner of the Commodity Futures Trading Commission, Caroline Fam,
Speaker 1: and many people are saying, is this a Lehman moment?
Speaker 1: Are we looking at two thousand and eight? And frankly,
Speaker 1: that was one of the things that happened after two
Speaker 1: thousand and eight was that through strong regulation and through
Speaker 1: strong risk management, firms had to rebuild that kind of trust.
Speaker 1: And so I think that's something that the crypto sector
Speaker 1: is going to have to look at. It's going to
Speaker 1: have to figure out how to tackle that. CFTC Commissioner
Speaker 1: Caroline Fam says there needs to be strong standards to
Speaker 1: prevent crypto contagion hitting the broader financial system. Well, the
Speaker 1: drama at ft X could drive bit going down to
Speaker 1: thirteen thousand dollars nathan As. According to strategists at JP
Speaker 1: Morgan Chase, they say the entire crypto market faces a
Speaker 1: cascade of margin calls and weeks of deleveraging up next year,
Speaker 1: and attention this morning turns to inflation. The widely anticipated
Speaker 1: Consumer Price in next for October comes out at eight
Speaker 1: thirty a m. Wall Street Time. Let's get a preview
Speaker 1: from Bloomberg's Michael McKee. The inflation battle isn't going to
Speaker 1: be one quickly, but the Fed is looking for little
Speaker 1: victories today. Supply chains are normalizing and the increase in
Speaker 1: goods prices has been leveling off. Apparel prices, used cars,
Speaker 1: some construction materials should see relatively smaller moves. Services is
Speaker 1: the real question a statistical quirk, and the fading pandemic
Speaker 1: should mean big drops for healthcare costs, but it takes
Speaker 1: time for rent and home prices to fade. In the CPI,
Speaker 1: they will continue to increase and keep the core elevated.
Speaker 1: As for the headline figures, we know gasoline and food
Speaker 1: have gone up, so Wall Street and the Fed will
Speaker 1: largely discount those. Michael McKee, Bloomberg Daybreak. All right, Michael,
Speaker 1: thank you. The fan will be paying close attention to
Speaker 1: that inflation report. But Minneapolis Spent President Neil Cash Cary
Speaker 1: says calls for a pivot and policy right now are misplayed.
Speaker 1: We are a long, long, long way away from that
Speaker 1: right now, so that's why any talk of a pivot
Speaker 1: is entirely premature right now. Minneapolis Fed President Neil cash
Speaker 1: Gary says a central bank remains a laser focused on inflation.
Speaker 1: All right, let's pivot to politics now. Karen get the
Speaker 1: latest on the mid terms. Control the Senate now boils
Speaker 1: down to three races in Georgia, Nevada, and Arizona. This
Speaker 1: as President Biden claims the best mid term performance for
Speaker 1: an incumbent president's party in twenty years. Amy Morris has
Speaker 1: details from our Bloomberg newsroom in Washington. Democrats had a
Speaker 1: stronger night than expected, but Republicans are poised to control
Speaker 1: the House. The President acknowledged that voters made it clear
Speaker 1: their concerns about inflation and crime, issues on which Republicans campaigned,
Speaker 1: but he says young people voted in record numbers with
Speaker 1: additional concerns, and they found a clear and unmistakable message
Speaker 1: if they want to preserve our democracy and protect the
Speaker 1: right to choose, Republicans have won two hundred six House seats.
Speaker 1: Democrats hold one eighty three, and it could take days
Speaker 1: to know the balance of power as dozens of close
Speaker 1: races are still being counted. Some could wind up and
Speaker 1: recounts runoffs, or in court. In Washington, I'm Aymy Moore
Speaker 1: as Bloomberg Daybreak, All right, Amy, thank you. When it
Speaker 1: comes to geo politics, US China relations are back on
Speaker 1: the front burner. President Biden said he will aim to
Speaker 1: avoid any concessions to President Shi Jin Ping when they
Speaker 1: meet at the G twenty and Bloomberg said Baxter has
Speaker 1: the story. At his news conference, Biden was asked by
Speaker 1: Bloomberg's Jenny Leonard about his trip to Asia and what
Speaker 1: his stamps will be regarding Taiwan. Taiwan doctrine has not
Speaker 1: changed at all from the very beginning, the very beginning,
Speaker 1: So I'm sure we'll discuss Taiwan. I'm sure we'll discuss
Speaker 1: a number of other issues, including fair trade. Biden repeated
Speaker 1: he wants competition, not conflict. In San Francisco, I'm at
Speaker 1: Baxter Bloomberg Daybreak, and thanks and incorporate news this morning.
Speaker 1: It is all about Twitter again. Elon Musk has emailed
Speaker 1: the company's staff for the first time, telling them to
Speaker 1: prepare for quote difficult times ahead. According to the email
Speaker 1: reviewed by Bloomberg News, Musk says remote work will no
Speaker 1: longer be allowed. Employees will be expected to be in
Speaker 1: the office at least forty hours per week. SMP futures
Speaker 1: are higher now by eight point. Stout futures up forty two.
Speaker 1: Nastack futures a gain of forty points. Straight ahead, your
Speaker 1: latest local headlines and a check of sports. This is
Speaker 1: Bloomberg man. It's now six oh seven on Wall Street
Speaker 1: where at forty degrees in Central parkheaded to the low
Speaker 1: sixties today, still dealing with a crash westbound Jackie Robinson
Speaker 1: Parkway at Metropolitan Avenue. Michael Barr is here with what
Speaker 1: else is going on in New York and around the world. Michael,
Speaker 1: thank you very much. Nathan. It is a rare November
Speaker 1: hurricane for Florida. Hurricane the Coal arrived overnight, slamming Florida's
Speaker 1: East coast with heavy rain and wind gusts topping seventy
Speaker 1: five miles per hour. Homeowners describe their backyards disappearing as
Speaker 1: massive waves lashed the Dayton of Beach area, already battered
Speaker 1: by Hurricane E and six weeks ago, Florida's Governor Rond
Speaker 1: de Santis. There is a lot of acturated ground, and
Speaker 1: that means the trees that normally wouldn't go over in
Speaker 1: a storm like this will likely go over because the
Speaker 1: ground is so wet and saturated. Nicole Now a tropical
Speaker 1: storm has knocked out power to about fifty five people.
Speaker 1: Jury deliberations start today in New York in a civil
Speaker 1: case against filmmaker Paul Haggis is accused of publicist Hailey
Speaker 1: Briest says in she reluctantly agreed to a drink at
Speaker 1: the screenwriter's apartment, then was subjected to unbalcom kisses, forced
Speaker 1: to perform oral sex, and raped as she repeatedly refused.
Speaker 1: Briest's lawyers say that this is a horror film by
Speaker 1: Paul Haggis. Haggis says it was a consensual encounter. General
Speaker 1: Mark Milly, the chairman of the US Joint Chiefs of Staff,
Speaker 1: says that more than one hundred thousand Russians and probably
Speaker 1: forty thousand Ukrainian civilians have been killed or wounded in
Speaker 1: the war. Meanwhile, Russia ordered its troops to withdraw from
Speaker 1: the southern Ukrainian city of Curson after Kievs troops pressed
Speaker 1: forward with a counter offensive. Retired Colonel Jeff mcconslin says
Speaker 1: withdrawal as a major embarrassment to Vladimir Putin. There have
Speaker 1: been reports for an extent period of time the Russian
Speaker 1: military leadership has urged Putin to allow them to withdraw
Speaker 1: in order to avoid a potential military disaster. Intelligence reports
Speaker 1: suggest that Putin has forbidden them to do so, and
Speaker 1: rather order them to defend the city at all costs.
Speaker 1: Retired Colonel mcconslin spoke to CBS at the UN Climate
Speaker 1: Summon in Egypt. The UK's new Prime Minister, Rishi soon
Speaker 1: Act says that the war in Ukraine has shown the
Speaker 1: West that they must turn to new forms of energy Putins,
Speaker 1: a born war in Ukraine and rising energy prices across
Speaker 1: the world are not a reason to go slow on
Speaker 1: climate change. Prime Minister soon Next comments come as President
Speaker 1: Biden will head the cop Global He was twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than twenty seven hundred journalists analysts in more
Speaker 1: than a hundred twenty countries. Michael mar this is bloom
Speaker 1: Thanks Michael almost sixth ten on Wall Street, time for
Speaker 1: the Bloomberg Sports Update, brought to you by try stayed
Speaker 1: out here. Here's John stan Shower. All right, Nathan. After
Speaker 1: the departure of Steve Nash as Nets coach to stop
Speaker 1: assistant Jacque Vaughn took over on an interim base, but
Speaker 1: the team has played well since then on the Nets
Speaker 1: have removed the interim tag. They have signed Vaughan through
Speaker 1: next season. The Nets general manager John marks there's a
Speaker 1: number of factors, you know why j V was the
Speaker 1: right fit. I mean, obviously I've known JV for a
Speaker 1: long time and all of us have. And then he's
Speaker 1: been a part of this culture. He's been a part
Speaker 1: of what we've been building here over the years. UM.
Speaker 1: And we look at the person he is, we look
Speaker 1: at his connection with players. UM. I obviously look at
Speaker 1: what's happened over the last sort of four games and
Speaker 1: make it five because after the announcement came an easy
Speaker 1: win for the Nets in their first meeting of the
Speaker 1: season with the nixt blowout in Brookelyn one twelve to
Speaker 1: eighty five. Kevin Durant twenty nine points, twelve rebounds, twelve.
Speaker 1: That's this stef Curry now healthy, twenty three points in
Speaker 1: twenty three minutes. Julius Randall eleven next with Nick shot.
Speaker 1: They're now five and six the Nets or five and seven.
Speaker 1: Milwaukee is ten and one, double overtime win at Oklahoma
Speaker 1: City and a night where the Bucks didn't use you
Speaker 1: on his son to the compo you talk ten and
Speaker 1: three where the win over Atlanta. The feeling was the
Speaker 1: Jazz we're gonna tank this season. They traded away the
Speaker 1: two best players. Lakers are just two and nine, even
Speaker 1: with Lebron, James still pointed at a high level. They
Speaker 1: lost to the Clippers and Lebron left the game with
Speaker 1: a broin injury. Rangers looked at end a three game
Speaker 1: losing streak that included a home loss to the Red Wings.
Speaker 1: They visit Detroit tonight, the Islanders host Arizona and the
Speaker 1: Devil's host Ottawa. The Devils are going for an eighth
Speaker 1: win in a row. Aaron Judge won the Hank Garon
Speaker 1: Awards for the American League's top offensive player. Judge should
Speaker 1: add the m v P next week. John Stashward Bloomberg Sports, Nathan,
Speaker 1: thank you John. Right now, SNP futures are moving higher
Speaker 1: by nine points South futures of fifty two Nestact futures
Speaker 1: of forty five points October consumer prices add at eight
Speaker 1: thirty Wall Street time. We preview the data for the
Speaker 1: data dependent fed Next with Bloomberg's Michael McKee and Bloomberg
Speaker 1: Sports was brought to you by Audie. Don't let someone
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Speaker 1: Visit your local price state Audie Dealer to get behind
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Speaker 1: com for more information, markets, headlines and breaking news twenty
Speaker 1: four hours a day. At Bloomberg dot com for the the
Speaker 1: Bloomberg Business apt and at Bloomberg Quick Tape. This is
Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow. This update
Speaker 1: is brought to you by B and Y Millon's Perishing
Speaker 1: Learned why the world's most sophisticated wealth management and institutional
Speaker 1: firms rely on Perishing to help them improve profitability, create efficiency,
Speaker 1: attract talent and manage risk. At Pershing dot com, US
Speaker 1: dot Index futures on the rise this morning. Treasuries are
Speaker 1: slipping as investors remain on edge before a report showing
Speaker 1: that could show inflation and the world's largest economy moderated
Speaker 1: for a fourth consecutive month. And we checked the markets
Speaker 1: every fifteen minutes throughout the trading day on Bloomberg Guess
Speaker 1: and p Future is up ten points this morning. Down
Speaker 1: Future is up fifty four nasdack futures up forty six.
Speaker 1: The decks in Germany little change. Ten year treasury down
Speaker 1: four thirty seconds. He had four point one percent yield
Speaker 1: on the two year four point six one percent. Nine
Speaker 1: mex screwed oil is down about nine tenths percent, or
Speaker 1: seventy three cents and eighty five dollars ten cents of
Speaker 1: barrel comexs go down at quarter percent or four dollars
Speaker 1: at seventeen o nine seventy ounce. The euro point nine
Speaker 1: nine four three against the dollar British found one point
Speaker 1: one three eight eight and the yen one forty six
Speaker 1: point four six. And bitcoin is up almost three percent
Speaker 1: at sixteen thousand, eighty dollars. That's a Bloomberg Business flash.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Michael, thank you very much. Karen. Hurricane
Speaker 1: Nicole made landfall early this morning along Florida's east coast,
Speaker 1: just south of Vero Beach Nicole. Now a tropical storm
Speaker 1: battered a large area of the storm we restate with
Speaker 1: strong winds, dangerous storm surges, and heavy rain. President Biden
Speaker 1: says that he expects an official call early next year
Speaker 1: on whether he will seek re election for another four
Speaker 1: year term. Meanwhile, the struggle for control of the U. S.
Speaker 1: Senate boils down to three uncalled races Georgia, Nevada, and Arizona,
Speaker 1: with each party needing to win two of those states
Speaker 1: to secure a majority in the NBA. The nets rolled
Speaker 1: over the next one twelve eighty five, the Celtics one
Speaker 1: in hockey. The Capital's Lost Week ten begins in the NFL. Tonight,
Speaker 1: the Falcons play at the Panthers. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quickdake, powered
Speaker 1: by more than twenty seven hundred journalists and analysts more
Speaker 1: than a hundred twenty countries. Michael Barn this is Bloomberg.
Speaker 1: Nathan all right, Michael, thanks for coming up to six
Speaker 1: twenty on Wall Street Live from the Bloomberg Interacted Brokers Studios.
Speaker 1: This is Bloomberg Daybreak, and we're coming up to the
Speaker 1: release of October consumer prices in just about two hours
Speaker 1: and ten minutes time. Out of that, we're joined by
Speaker 1: Bloomberg's Global Economics and Policy correspondent Michael mckeel be breaking
Speaker 1: down those numbers once they hit your Bloomberg terminal. Mike,
Speaker 1: good morning. Looking at the consensus from economists we've surveyed,
Speaker 1: it's gonna be another bump up in the month over
Speaker 1: month number and a tick down for year over year.
Speaker 1: It seems like inflation is taking a good long while
Speaker 1: to get back under control, and it's going to and
Speaker 1: that was expected by the Fed. Uh, it is an
Speaker 1: unusual time. Inflation went up faster than it normally does.
Speaker 1: And I don't know what you called normal anymore since
Speaker 1: it's so low for so long. But the Fed is
Speaker 1: expecting it to be a long term process, which is
Speaker 1: why J. Powell and company have said regularly they're going
Speaker 1: to raise the FED funds right to a restrictive level
Speaker 1: and leave it there for a long time, perhaps a year,
Speaker 1: to try to bring down inflation. Uh. The numbers you
Speaker 1: referenced were the headline, though, and the Fed is not
Speaker 1: really looking at that because the reason it will tick
Speaker 1: up as energy and possibly food and on a month
Speaker 1: to month basis, and and there's nothing that FED can
Speaker 1: do about that. They'll be looking at the core and
Speaker 1: they they've kind of got the opposite situation there where
Speaker 1: it may come in a bit lower on a month
Speaker 1: over month basis, a bit higher on a year over
Speaker 1: year basis, but the point would be more on the
Speaker 1: month to month uh the year over years obviously influenced
Speaker 1: by what happened twelve months ago. Whereas if you start
Speaker 1: to get a sequential decline for a few months in
Speaker 1: the core, then it might suggest that the FED is
Speaker 1: starting to win the battle. But this would be the
Speaker 1: first decline in a couple of months, So if it happens,
Speaker 1: it's only the start, right, And that raises the question
Speaker 1: still about whether the FED starts to slow down on
Speaker 1: interest rate hikes. You mentioned the FED is said that
Speaker 1: it is going to get the terminal rate higher, maybe
Speaker 1: around five or a little bit above five per cent.
Speaker 1: Could we see signs in the core that make the
Speaker 1: case for the FED to think about looking and seeing
Speaker 1: whether the rate hikes have started to have an effect. Well,
Speaker 1: the the thing you want to do is take things
Speaker 1: apart and look at take the take the report apart
Speaker 1: and look at specific categories that might be impacted. We
Speaker 1: know real estate has been hit hard, and real estate
Speaker 1: is an important sector of the economy. It's a third
Speaker 1: of the cp I. It's it's not as big a
Speaker 1: waiting in the pc which is the Fed's target indicator.
Speaker 1: But the FED will want to see if things that
Speaker 1: are influenced by the cost of borrowing have started to
Speaker 1: slow the rate of price increases in those areas. Uh.
Speaker 1: That's that's kind of what they'll be looking for out
Speaker 1: of this report. They have another report before the next meeting.
Speaker 1: They've got the PC index before this meeting, another jobs
Speaker 1: report before this next meeting. So this won't be decisive,
Speaker 1: but it will set the tone in the markets for
Speaker 1: the conversation stions the FED will have over the next
Speaker 1: five six weeks. Yeah, I think you alluded it to
Speaker 1: it somewhat there. I think something else that they're looking
Speaker 1: for is whether we're gonna start to see services inflation
Speaker 1: follow goods lower. That's the question, does services inflation start
Speaker 1: to slow down? Uh? The housing prices UH goes into
Speaker 1: the core um parts of that our services, and that's
Speaker 1: gonna be something to watch UH goods prices have started
Speaker 1: to decline because supply chains have started to normalize, but
Speaker 1: service prices increases have increased, have accelerated in the last
Speaker 1: six months or so. And that's the concern. Is the
Speaker 1: problem for services that they can't find workers, and therefore
Speaker 1: UH they've got to pay up for workers and raise
Speaker 1: their prices to come compensate for that. That's the question
Speaker 1: out there on the services side, and we'll start to
Speaker 1: get a picture of it today, but it's gonna take
Speaker 1: some time for that to level off as well. And
Speaker 1: in our last thirty seconds here, we've heard the FED
Speaker 1: also say that there more likely to go higher on
Speaker 1: rates than than trying to pull back and get into
Speaker 1: a soft landing territory. What could this cp I print
Speaker 1: mean for the more aggressive rate hikes. Probably means more
Speaker 1: for the markets than for the Fed, because they do
Speaker 1: have a number of indicators, as they suggested, that are
Speaker 1: yet to come. UH. Their view at this point seems
Speaker 1: to be that they want to slow down the pace
Speaker 1: of increases, not cut back UH rates, but slow down
Speaker 1: the pace of increases so that they can react more
Speaker 1: quickly if we start to see recessionary signs and so
Speaker 1: unless we get a really outsized number, probably fifty stays
Speaker 1: the basis case. Okay, Mike, thanks as always. Bloomberg's Michael
Speaker 1: McKee can be breaking down October CPI for us and
Speaker 1: just a little more than two hours eight thirty am
Speaker 1: Wall Street Time. This is Bloomberg Bloomberg day Breaks, brought
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Speaker 1: the Bloomberg Business app and Bloomberg Radio dot Com. This
Speaker 1: is Bloomberg day Break and it's six thirty on Wall Street.
Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow, and
Speaker 1: we're just about three hours away from the open of
Speaker 1: US trading time. Of the five things that you need
Speaker 1: to notice. Start your day out to you by Interactive Brokers.
Speaker 1: Interactive Broker's clients are an interest of up to three
Speaker 1: point three three on the idle cash and their brokerage accounts.
Speaker 1: Visit i vk are dot com slash interest rates to
Speaker 1: learn more. First, US future is steady this morning after
Speaker 1: yesterday sell off today, wey gear up for October's inflation report.
Speaker 1: Phil Palumbo with Palumbo Wealth Management says, as prices run hot,
Speaker 1: we're still waiting for a market bottom. When will the
Speaker 1: bottom be put in? The Keith answer to that question
Speaker 1: is going to be when the Fed pivots. So inflation
Speaker 1: continues to be a problem, which means if Fed not
Speaker 1: ready to pivot, which means the bottom is not in.
Speaker 1: Philip Palumbo with Palumbo Wealth says investors should not focus
Speaker 1: on when inflation has peaked, but should consider where it settles. Well.
Speaker 1: The Fed is going to be paying close attention to
Speaker 1: that CPI report Karen at eight three am Wall Street Time,
Speaker 1: But Minneapolis Fed President Neil cash Cary says, no matter
Speaker 1: how it shakes out, it is premature to consider a
Speaker 1: pivot in policy. Financial markets seem to believe that inflation
Speaker 1: should fall back down towards our two percent target over
Speaker 1: the next couple of years. I hope they're right. I
Speaker 1: know that we're gonna do what we need to do
Speaker 1: to bring inflation back down. Minneapolis President Neil cash Cary
Speaker 1: says the Fed's goal is still to achieve a soft landing. Well.
Speaker 1: Turning to crypto Now Nathan, Bitcoin hit a two year
Speaker 1: low after Binance walked away from its takeover of ft
Speaker 1: x dot com. JP Morgan strategists say that drama could
Speaker 1: drive bitcoin down to thirteen thousand dollars. Nick Carter with
Speaker 1: Castle Island Ventures tells us the collapse of f t
Speaker 1: X shatters industry confidence. Is really one of the most
Speaker 1: shocking exchange collapses in the history of the industry. One
Speaker 1: of the worst days in the history of the industry.
Speaker 1: We're bracing ourselves for the real fallout. Yesterday it was
Speaker 1: kind of the red wedding, but today is we're taking
Speaker 1: on the bodies. Nick Carter with Castle Island Ventures speculates
Speaker 1: that f t X founder Sam Bankman Freed could face
Speaker 1: criminal liability. Still, it is unclear if there was any
Speaker 1: wrongdoing by Bankman Freed. Well, the Justice departments looking now
Speaker 1: into the term will surrounding f t X Karen Commodity
Speaker 1: Futures Trading Commission Chief Caroline Fam tells Bloomberg tighter regulation
Speaker 1: is needed in crypto, strong global standards to make sure
Speaker 1: that there are no gaps in the international regulatory framework
Speaker 1: where you can see risks like this bread CFTC Commissioner
Speaker 1: Caroline Fam says the cryptosector must consider strong regulation to
Speaker 1: rebuild trust and in politics this morning, Nathan, President Biden
Speaker 1: is claiming the best mid term performance for an incumbent
Speaker 1: president in twenty years, but still control of the Senate
Speaker 1: remains up for grabs. The President says his planned right
Speaker 1: now is to seek re election in four That's the
Speaker 1: five things that you need to know to start your day.
Speaker 1: Brought to you by Interactive Brokers, and this is Bloomberg.
Speaker 1: Thank you. Carrying at sixty on Wall Street, fortygrees in
Speaker 1: Central Park headed to the low sixties today we gotta
Speaker 1: crash on the westbound Grand Central Parkway at Jewel Avenue
Speaker 1: in Queens. Michael bars here with what else is going
Speaker 1: on in New York and around the world. Good morning, Michael,
Speaker 1: Good morning Nathan. Hurricane Nicole made landfall along the East
Speaker 1: coast of Florida this morning. The rare November hurricane had
Speaker 1: already led officials to shut down on airports and theme
Speaker 1: parks and ordered evacuations that included former President Donald Trump
Speaker 1: Samara Lago Club. Florida's governor around the sentis the windfield
Speaker 1: from the storm's very large, and we expect impacts the
Speaker 1: stretch far beyond the center track, including tropical storm force
Speaker 1: winds as far near north as Jacksonville. Governor de Sentists
Speaker 1: warned that Nicole's storm surge could further aroad many beaches
Speaker 1: hit by Hurricane Ian in September. Nicole now a tropical
Speaker 1: storm is forecast ahead into Georgia and the Carolinas later.
Speaker 1: The Chairman of the Joint Chiefs of Staff, Mark Milly,
Speaker 1: says well over one hundred thousand Russian soldiers and as
Speaker 1: many as forty thousand Ukrainian civilians have been killed are
Speaker 1: wounded in the war. Meanwhile, Russia has announced the retreat
Speaker 1: from Curson, a regional capital in southern Ukraine that it
Speaker 1: seized early in the war. Retired Colonel Jeff McCaslin says
Speaker 1: that a pull out from the city would be a
Speaker 1: major setback from Moscow, a Russian with raw would not
Speaker 1: only be a major embarrassment to Mr. Putin, but also
Speaker 1: Ukraine to win back territory in the Zapparitia region as
Speaker 1: well as southern Ukraine. This will position Keiva his forces
Speaker 1: to seek to recover all of Crimea, which it lost
Speaker 1: in two thousand and fourteen, as well as allowing them
Speaker 1: to stop the flow of fresh water into Crimea. Retire
Speaker 1: Colonel mcconslin's old CBS. There have been reports that the
Speaker 1: Russian military leadership had urged Putin to allow them to
Speaker 1: withdraw in order to avoid a potential military disaster, but
Speaker 1: Putting said no. Now that w n B A star
Speaker 1: Britney Grinder has been moved to a Russian penal colony
Speaker 1: to serve out her nine years sentence, President Biden gave
Speaker 1: an update on the case. Biden says that he hopes
Speaker 1: now with the U s midterms over with Moscow will
Speaker 1: be willing to talk more seriously about a prisoner swamp.
Speaker 1: We've had a number of discussions so far, and uh,
Speaker 1: I'm hopeful that now that our election is over, there's
Speaker 1: a willingness to h to negotiate more specifically with US.
Speaker 1: Grinder is serving her sentence for drug possession. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quick Take, powered by more than twenty seven after journalist
Speaker 1: analysts more than twenty countries. Michael Barr, this is Bloomberg Natan,
Speaker 1: Thank you, Michael, coming up to six thirty six on
Speaker 1: Wall Street time for the Bloomberg Sports Up. They brought
Speaker 1: to you by Try state Out. He here in his
Speaker 1: John Stanshew, all right, Nathan blowout ed Barkley's. The Nets
Speaker 1: jumped in front of the Knicks right off to that
Speaker 1: never let up Finals one, twelve to eighty five, with
Speaker 1: Kevin Durant scoring twenty nine points. He had a triple double.
Speaker 1: The Net's held the nixt to thirty two percent shooting
Speaker 1: there three and one. Since the Kyrie Irving suspension, they're
Speaker 1: playing well. Since Jacques Vaughn replaced Steve Nash as the coach,
Speaker 1: the Nets are rewarded Vaughan. He's no longer the interim coach.
Speaker 1: He's been a loyal Net seven years and assistant. Vaughn
Speaker 1: was also the interim head coach at the end of
Speaker 1: twenty Right after Nash left came the reports the Nets
Speaker 1: wanted to hire em a Udoka, who the Celtics had
Speaker 1: suspended for relationship with the team employee. The Nets, already
Speaker 1: dealing with the Kyrie Sad criticized heavily for considering hiring Udoka.
Speaker 1: Clearly we had second thoughts. Giants back to the bye,
Speaker 1: hosting Houston Sunday at Brian Dabols presser, and multiple questions
Speaker 1: about the hand injury suffered by safety's Davier McKinney had
Speaker 1: happened at an a TV accident in Cabo. It's a
Speaker 1: matter again. I feel bad for us. I feel bad
Speaker 1: for him. Um, showing not something you want to see. UM.
Speaker 1: I feel bad for the kid in particular, I mean
Speaker 1: got injured, and I feel bad for us. You know,
Speaker 1: we lost a good player for a few weeks. The
Speaker 1: quarterbacks may not play Sunday Buffaloes Josh Allen as an
Speaker 1: injured elbow. The Ram's Matthew Stafford is in concussion protocol.
Speaker 1: John stash Awer Bloomberg Sports, Nathan all Right, John, Thanks
Speaker 1: sixty seven on Wall Street. Let's get more now on
Speaker 1: the crypto crisis with Sam Bankman Freed the one time
Speaker 1: wonder Kind, warning that the crypto exchange she founded f
Speaker 1: t X could face bankrupts if he doesn't get a
Speaker 1: get enough funds to cover a shortfall of as much
Speaker 1: as eight billion dollars. That's after arrival by Finance backed
Speaker 1: away from a deal to come to f t X
Speaker 1: is rescue. Bloomberg Global Financial correspondent Shanali bask is back
Speaker 1: with us. You've been watching this saga very closely, Shanali,
Speaker 1: get us up to speed. So yes, if he doesn't
Speaker 1: raise the money, remember Finance had walked out of a
Speaker 1: potential deal to acquire f t X assets outside of
Speaker 1: the United States. If he doesn't raise money, which it
Speaker 1: looks very unlikely at this point, he will have to
Speaker 1: file for bankruptcy for f t X outside of the
Speaker 1: United States. And there's a question about what happens to
Speaker 1: f t X u S, which is the entity that's
Speaker 1: inside of the United States, And all of that leads
Speaker 1: to much broader questions about what happens to the funds themselves.
Speaker 1: Will customers be made whole? Ever, remember we are going
Speaker 1: through a series of bankruptcy processes now and f t
Speaker 1: X is largely based in the Bahamas, so any potential
Speaker 1: bankruptcy proceeding would be very difficult. And you know, I
Speaker 1: know for the last twenty four hours after and been
Speaker 1: talking to both folks in crypto, folks adventure and folks
Speaker 1: and restructuring because it's a very complicated web of money
Speaker 1: to try to track down for all the people involved. Yeah,
Speaker 1: and we saw a bitcoin drop below sixteen thousand after
Speaker 1: Binance made that surprise announcement backing away from the ft
Speaker 1: X biot interesting though, to watch Bitcoin back above sixteen
Speaker 1: thousand this morning. What do you make of the market
Speaker 1: moves in crypto right now? You know, it's interesting to
Speaker 1: see bitcoins still stay above fifteen thousand dollars, so you
Speaker 1: do have to still think, okay, wait a minute, this
Speaker 1: is in a full crash of the current cryptocurrency, but
Speaker 1: there is something else that's happening that is another sign
Speaker 1: of stress in the market. And you've seen over the
Speaker 1: last twenty four hours a little bit of a decoupling
Speaker 1: here and Tether, which is one of the biggest stable coins,
Speaker 1: breaking its peg briefly briefly now remember when the lunar
Speaker 1: collapse happened. That's also what the worry of was about
Speaker 1: stable coins, and stable coins have a more immediate link
Speaker 1: to the US dollar, so people are really, this is
Speaker 1: all those This all goes to say, people are just
Speaker 1: watching for contagion and seeing where the crypto worries can
Speaker 1: start to ripple into the broader financial system if at all.
Speaker 1: Just about thirty seconds left here we've been reporting the
Speaker 1: Justice Department is now getting involved looking into this. Is
Speaker 1: there a risk of criminal liability for Sam Bateman Freed?
Speaker 1: It's early, but the Destice prominent is certainly taking a
Speaker 1: look at how they've used the funds and whether these
Speaker 1: funds have been used at customer funds I've been used
Speaker 1: for the purposes. Thanks jan Ali good having on with
Speaker 1: us once again. Bloomberg Global Financial correspondent Shinali bassk As
Speaker 1: we continue to watch the crypto space and the saga
Speaker 1: surrounding f t X. Right now, Bitcoin, after dropping below
Speaker 1: sixteen thousand, is back above that sixteen thousand, handled now
Speaker 1: at sixteen thousand, four hundred seventeen dollars. Broader market pointing
Speaker 1: to games as well. All the S ANDP futures are
Speaker 1: up by thirteen points right now, down futures of sixty eight,
Speaker 1: NASTAC futures are higher by sixty six points. Tend your
Speaker 1: treasuries down three thirty seconds the old four point zero
Speaker 1: nine percent yield on the two year four point six
Speaker 1: zero per cent. You're listening to Bloomberg day Break and
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Speaker 1: and I'm Karen Moscow future is on the rise this morning.
Speaker 1: Let's go to the first word breaking news dance for
Speaker 1: today's morning. All in here, Tatiana, Darry Tatiana, Good morning,
Speaker 1: Good morning, Karen. Like you said, Features higher this morning
Speaker 1: after that steep sell off yesterday without features up eighty
Speaker 1: five point s and ps of fifteen and nas jack
Speaker 1: up sixty nine. Treasuries, however, are heading in the opposite direction,
Speaker 1: with the tenure yield up one basis point to four
Speaker 1: spot oh nine percent. The dollar is stronger for a
Speaker 1: second day, while bitcoin is up four but still trading
Speaker 1: below the key seventeen thousand handle on the economic front today,
Speaker 1: all eyes on CPI at eight thirty this morning. In
Speaker 1: early trading, we're seeing Gribban shares up seven percent after
Speaker 1: reiterating guidance, beyond Meat up one after its numbers, and
Speaker 1: in other moves, crypto exposed stocks are rebounding after some
Speaker 1: heavy losses. Coin based robbing hood up to percent, while
Speaker 1: micro Strategy up five and wrapping things up here, Aultrea
Speaker 1: was downgraded to sell at ubs Live from the First
Speaker 1: Breaking News desk. I'm Tatiana, Daria, Karen very Tatiana, thank you,
Speaker 1: and here lie breaking news of your Bloomberg type squad
Speaker 1: on your terminal s q U a w K. That's
Speaker 1: a Bloomberg business flash. Now here's Michael bar with more
Speaker 1: on what's going on around the world. Karen, thank you
Speaker 1: very much. Urcane the coal made landfall around three a
Speaker 1: m near Vero Beach, Florida. It has since been downgraded
Speaker 1: to a tropical storm with winds gusting to seventy miles
Speaker 1: per hour. About fifty five thousand people are without power.
Speaker 1: Two days after the mid term elections, control of the
Speaker 1: House and Senate are still unknown. A razor thin race
Speaker 1: is unfolding in Colorado. Fewer than one hundred votes separate
Speaker 1: Republican Congresswoman Lauren Bobert and Democrat Adam Frisch in what
Speaker 1: could be a major upset for Republicans. In New York,
Speaker 1: a big win for the GOP Mike Lawler beating Congressman
Speaker 1: Sean Patrick Maloney, the chairman of the Democratic Congressional Campaign
Speaker 1: Committee NBA. The Nets rolled over the Knicks one eighty five.
Speaker 1: The Celtics won in hockey. The Capitol's Lost. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven your journalist and analysts
Speaker 1: more than twenty countries. Michael Bar, this is Bloomberg. Caeron Ry.
Speaker 1: Michael bar Thank you sixty nine on Wall Street. Let's
Speaker 1: turn to news and science and technology now with a
Speaker 1: Bloomberg and j I T STEM Report brought to you.
Speaker 1: Buy New Jersey Institute of Technology as one of the
Speaker 1: nation's of leading polytechnic universities and a top military friendly school,
Speaker 1: and j I T supports America's service members and their families.
Speaker 1: Learn more at n j I T dot E d
Speaker 1: U slash veterans and now here's just making news and science, technology, engineering,
Speaker 1: and math. A Northrop Grumm and capsule has delivered several
Speaker 1: tons of supplies to the International Space Station despite a
Speaker 1: jammed solar panel. The shipment arrived two days after launching
Speaker 1: from Virginia. Only one of the cargo ships two round
Speaker 1: solar panels open. Following liftoff, flight controllers tried in Vain
Speaker 1: to open the stuck panel, but managed to draw enough
Speaker 1: power for the flight with just one. The European Union
Speaker 1: plans to outline proposed natural gas price controls at a
Speaker 1: meeting tomorrow. The unprecedented energy crisis is threatening to pu
Speaker 1: the twenty seven nation block into recession. Still, the idea
Speaker 1: of price controls on gas has divided EU members and
Speaker 1: it was the largest single owner art auction in history.
Speaker 1: Christie's presided over the sale of just sixty artworks for
Speaker 1: an unprecedented one and a half billion dollars. They came
Speaker 1: from the collection of the late Microsoft co founder Paul Allen.
Speaker 1: Proceeds from the sale we'll go to philanthropy and as
Speaker 1: a Bloomberg n j I t STEM report. Nathan, Thanks Karen,
Speaker 1: We're live from the Bloomberg Interactive Broker Studios or at
Speaker 1: six fifty on Wall Street Time Now to check what's
Speaker 1: going on in d C. Some of the top stories
Speaker 1: in our nation's capital include President Biden hailing a strong
Speaker 1: election night for Democrats in a mid term victory, lab
Speaker 1: control of the Senate now down to who wins two
Speaker 1: of the last three races, and the GOP leaning toward
Speaker 1: de Santis over Trump in four Let's bring in Bloomberg
Speaker 1: Government congressional reporter Jack Fitzpatrick for more on some of
Speaker 1: these stories. Jack, I'm sure you, along with a lot
Speaker 1: of the rest of us, saw President Biden's comments following
Speaker 1: the mid term election results. That sounds like the message
Speaker 1: he received from voters is stay the course. Yeah. I mean, overall,
Speaker 1: it's been pretty good news for Democrats given the expectations
Speaker 1: of the first mid term being really, really tough for
Speaker 1: the president's party. Uh. You know, it does still look
Speaker 1: like the House is likely to go Republicans way, but
Speaker 1: probably by a very narrow margin. Uh. And considering Democrats
Speaker 1: still have a chance that holding on to the Senate,
Speaker 1: even if it's a Senate with the Vice president being
Speaker 1: the tiebreaker, that's kind of a win. Or at least
Speaker 1: avoiding catastrophe for Democrats. So some of the policy takeaways
Speaker 1: are gonna be the the Yeah, voters uh may not
Speaker 1: be happy about inflation, but they like low unemployment. That
Speaker 1: the economy may not have been quite the weakness that
Speaker 1: Republicans thought it was for Democrats. That abortion access was
Speaker 1: a huge motivator. Uh. And that overall Democrats may not
Speaker 1: have gotten an A plus but have gotten more or
Speaker 1: less a passing grade from a lot of voters. Now,
Speaker 1: let's look at where the control or the fight for
Speaker 1: control of Congress stands at this point. I guess it's
Speaker 1: still too soon to call definitively whether either party has
Speaker 1: control of either chamber of Congress at this point. Yes, technically, uh,
Speaker 1: we we can't exactly call the House. Uh. There have
Speaker 1: been about two hundred seven seats in the House called
Speaker 1: for Republicans. You know, it's just just looking at the
Speaker 1: competitive races, this has always appeared to lean pretty strongly
Speaker 1: their way. But a number of those competitive races have
Speaker 1: been called for Democrats. So again it looks like they're
Speaker 1: probably on track for a narrow majority on the Republican side.
Speaker 1: But we're we're still waiting for a lot of results,
Speaker 1: especially in the West that we're kind of starting later.
Speaker 1: And then of course the Senate. If either party can
Speaker 1: win Nevada and Arizona, they would they would take the Senate.
Speaker 1: But if those are split, then we're going to be
Speaker 1: looking to that Georgia runoff in December a little bit
Speaker 1: of deja vu as as Georgia runoffs just happened to
Speaker 1: uh frequently can determined control of the Senate these last
Speaker 1: two cycles. So it's it's going to be very close. Uh.
Speaker 1: It looks like both chambers will have extremely narrow majorities
Speaker 1: for whoever controls each one, uh, and that that probably
Speaker 1: means governing is going to be pretty tough for the
Speaker 1: next two years. Do narrow majorities mean a tough fight
Speaker 1: for leadership as we look to see what the actual
Speaker 1: makeup of the next Congress itself? Yeah, it it raises
Speaker 1: a lot of questions, especially in the House, uh, for
Speaker 1: both parties. You know, Nancy Pelosi had it sort of
Speaker 1: left open the option that after looking at the results
Speaker 1: of this election, she would decide what her future or
Speaker 1: would be. There was a sort of a simmering expectation
Speaker 1: that if Democrats lose, especially if they lose big that
Speaker 1: she would step down. Um, you know this is this
Speaker 1: is fairly good news for Democrats. It seems to to
Speaker 1: sort of toss up in the air exactly what's going
Speaker 1: to happen with their leadership. And it's not good news
Speaker 1: for Kevin McCarthy because if he only has a handful
Speaker 1: of votes beyond the ten vote majority in the House,
Speaker 1: it could get tricky in terms of lining up the
Speaker 1: votes to elect him speaker. Do conservative groups come to
Speaker 1: him asking for concessions ahead of time in exchange for
Speaker 1: their votes. Narrow majorities are always difficult, and it's not
Speaker 1: even just the bills that they're voting in all, it's
Speaker 1: it's the leadership election as well. It's interesting to you
Speaker 1: see the idea that we could have a more emboldened
Speaker 1: populist wing of the Republican Party in Congress when the
Speaker 1: election results for more populist candidates who are backed by
Speaker 1: former President m uh didn't really go so well this cycle,
Speaker 1: and thinking about looking ahead to the four race, it's
Speaker 1: looking like Republicans are starting to feel a little bit
Speaker 1: cooler on the former president. Yeah, there's it's a bit
Speaker 1: counterintuitive that on one hand, a smaller caucus is by
Speaker 1: definition a bit more of an extreme caucus because you
Speaker 1: haven't elected as many moderates from swing states, swing district. Uh.
Speaker 1: It also can embolden a group like the Freedom Caucus
Speaker 1: on the Republican side. If it's easy for one caucus
Speaker 1: to say, hey, we can take away the majority. There
Speaker 1: are enough of us so that we won't have two
Speaker 1: eighteen votes without our votes. Uh. That that increases the
Speaker 1: possibility of certain factions really throwing their weight around within
Speaker 1: the Republican caucus if it's a very narrow majority. But yeah,
Speaker 1: one of the takeaways is that the Trump wing of
Speaker 1: the party did not do very well. There's some frustration
Speaker 1: with the with Trump's endorsement of moment Oz in Pennsylvania.
Speaker 1: We'll see what happens with Blake Masters in Arizona that
Speaker 1: has not been called um. But again, you know, if
Speaker 1: this shifts the attention to someone like Ron de Santis
Speaker 1: that's not necessarily a moderate, it could be a shift
Speaker 1: and sort of a competing group, competing factions on the
Speaker 1: conservative side. Even if the party turns away from Trump,
Speaker 1: it's not exactly great news necessarily for the most moderate Republicans.
Speaker 1: So in the last thirty seconds here. What are you
Speaker 1: gonna be watching for as we set our attention to
Speaker 1: the race. You heard from the President yesterday saying he's
Speaker 1: looking to see whether trumpet de Santis sort of duke
Speaker 1: it out. Yeah, I want to see, especially if Trump
Speaker 1: sticks to his announcement that he was gonna he was
Speaker 1: going to have an announcement next Tuesday about his future.
Speaker 1: It seemed like he was going to announce his presidential
Speaker 1: run and he was gearing up for in expectation that
Speaker 1: Republicans would do well. The question of if he sticks
Speaker 1: to that schedule after a pretty disappointing mid term for
Speaker 1: Republicans would tell us something about the Trump de Santis
Speaker 1: dynamic heading towards Thanks Jack, as always Bloomberg Government Congressional
Speaker 1: reporter Jack Fitzpatrick, and you can read more about these
Speaker 1: stories on Bloomberg dot com or on the Bloomberg terminal.
Speaker 1: Listen to Bloomberg Radio when you're in Washington. Just tune
Speaker 1: into Bloomberg and one oh five point seven FM HD two.
Speaker 1: Futures moving higher as we await October inflation data. SMP
Speaker 1: futures up eleven points, Staff futures of fifty nine Nastack Futures,
Speaker 1: hired by fifty eight Points. Bloomberg Surveillance is next, with
Speaker 1: Tom Keene, Jonathan Farrell, and Lisa Bramwitz back in New
Speaker 1: York for Karen Moscow. I'm Nathan Hagar. This is Bloomberg