WEBVTT - Bloomberg Daybreak: November 11, 2022 - Hour 2 (Radio) 0:00:02.320 --> 0:00:05.640 Live from the Bloomberg Interactive Berger Studios. This is Bloomberg 0:00:05.720 --> 0:00:09.560 day Break for Friday, November eleven two. Coming up this hour, 0:00:09.880 --> 0:00:14.000 Stocks followed Yesterday's powerful rally with war games Chinese in 0:00:14.080 --> 0:00:17.920 Hong Kong's stocks search after Beijing eases quarantine rules at 0:00:17.960 --> 0:00:21.360 the X dot COM's assets are frozen by authorities in 0:00:21.400 --> 0:00:25.120 the Bahamas and Elon Musk lawrence of a possible bankruptcy 0:00:25.280 --> 0:00:28.360 at Twitter. New York City Mayor Adams defends his focus 0:00:28.400 --> 0:00:31.000 on crime. Plus the remnants of Hurricane to Coole leave 0:00:31.040 --> 0:00:33.920 at least two people dead in Florida. I'm Michael Blarer. 0:00:34.080 --> 0:00:37.040 More ahead, I'm John stash Own Sports make third period 0:00:37.080 --> 0:00:39.440 for the Rangers to win. In Detroit, the Islanders were 0:00:39.520 --> 0:00:41.599 shot out. The Devils won their eighth in a row. 0:00:42.640 --> 0:00:47.200 That's all straight ahead on Bloomberg day Break on Bloomberg eleven, FREEO, 0:00:47.320 --> 0:00:52.640 New York, Bloomberg Washington, d C, Bloomberg one oh six one, Boston, 0:00:52.840 --> 0:00:57.320 Floomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:57.680 --> 0:01:00.960 and around the world on Bloomberg Radio. Come and via 0:01:01.040 --> 0:01:09.679 the Bloomberg Business Set. Good Friday morning. I'm Amy Morris. 0:01:09.840 --> 0:01:12.720 And I'm Karen Moscow. US Dock index futures on the 0:01:12.840 --> 0:01:15.160 rise this morning. We are coming up to six one 0:01:15.160 --> 0:01:17.119 on Wall Street and we check the markets every fifteen 0:01:17.160 --> 0:01:20.640 minutes throughout the trading day. On Bloomberg, SNP futures of 0:01:20.760 --> 0:01:23.360 fifteen points this morning. Down futures have a hundred twenty 0:01:23.400 --> 0:01:26.880 two NASDACK futures up at sixties six. No trading in 0:01:26.920 --> 0:01:29.240 the US bond market today and observance of the Veterans 0:01:29.319 --> 0:01:32.039 Day holiday. Niam X screwed oil is up three and 0:01:32.080 --> 0:01:34.560 a half percent. It's at eighty nine dollars forty nine 0:01:34.560 --> 0:01:37.840 cents in barrel, Amy Karen. US futures are building on 0:01:37.959 --> 0:01:41.120 yesterday's historic rally, the SNP five hundred coming off of 0:01:41.200 --> 0:01:43.960 five and a half percent gain for the best first 0:01:44.080 --> 0:01:47.120 day reaction to a CPI report since at least two 0:01:47.120 --> 0:01:50.800 thousand three, when records began. Headline inflation came in at 0:01:50.800 --> 0:01:54.960 seven point seven percent. That's the lowest since January. Doug 0:01:55.040 --> 0:01:58.960 Sioca is CEO at Covar Capital. He think what ended 0:01:59.320 --> 0:02:03.040 the bear mark get popped two weeks ago. It's when 0:02:03.040 --> 0:02:05.400 the FED came out of the press conference. So if 0:02:05.440 --> 0:02:07.920 the Fed now and in the Randomester, being one of 0:02:07.920 --> 0:02:12.440 the head hawks, is talking a little less strongly the 0:02:12.480 --> 0:02:15.520 market way take that as a higher probability that this 0:02:15.680 --> 0:02:18.840 may not be a bear market bounce, but something start 0:02:18.880 --> 0:02:21.720 of the next legable market. Despite the rally of our 0:02:21.760 --> 0:02:26.960 capital's Doug Siocas notes the SMP is still downe this year, 0:02:27.400 --> 0:02:30.040 but we saw an immediate reaction and FED funds future 0:02:30.120 --> 0:02:33.120 is following that. Our poor damy rates traders now see 0:02:33.280 --> 0:02:35.959 just a half point rate hike next month instead of 0:02:36.000 --> 0:02:39.200 another three quarter point increase. If that appears to be 0:02:39.200 --> 0:02:42.280 backing a downshift in rate hikes, and here's Dallas FED 0:02:42.320 --> 0:02:46.280 President Laurie Logan and Philadelphia FED President Patrick Harker. While 0:02:46.320 --> 0:02:48.480 I believe it may be appropriate to slow the pace 0:02:48.480 --> 0:02:51.520 of rate increases so we can better assess how financial 0:02:51.600 --> 0:02:55.240 and economic conditions are evolving, I also believe a slower 0:02:55.240 --> 0:02:59.080 pace should not be taken to represent easier policy. The 0:02:59.160 --> 0:03:03.080 upcoming months and light of the CUMULICI fightening we have achieved, 0:03:03.240 --> 0:03:05.799 I expect we will slow the pace of our rate 0:03:05.840 --> 0:03:10.160 hikes as we approach a sufficiently restrictive stance. But I 0:03:10.200 --> 0:03:13.359 want to be clear A rate hiker fifty basis points, 0:03:13.600 --> 0:03:17.639 which still be significant. Philadelphia Fed President Patrick Harker and 0:03:17.720 --> 0:03:21.120 Dallas FED chief Lorie Logan spoke at separate events yesterday 0:03:21.160 --> 0:03:24.880 after the latest inflation reading and Karen. The softer consumer 0:03:24.919 --> 0:03:28.520 price print coupled with China's move tweets some COVID rules 0:03:28.520 --> 0:03:31.800 fueled a rally in Asia. Overnight stocks in the region 0:03:31.880 --> 0:03:34.800 jumped by the most since March of We get the 0:03:34.800 --> 0:03:38.480 recap from Bloomberg's Juliette Sally in Singapore. Good Morning Juliette, 0:03:38.640 --> 0:03:40.800 Good Morning Avian Karen. The m s c I Asia 0:03:40.840 --> 0:03:43.000 Pacific Index climbed more than four and a half percent, 0:03:43.160 --> 0:03:45.760 also on track for its best weekly gain since March 0:03:45.800 --> 0:03:49.440 twenty twenty. Hong Kong's benchmark search more than seven percent 0:03:49.640 --> 0:03:53.160 after China reduced its quarantine time for inbound travelers and 0:03:53.240 --> 0:03:57.000 scrapped COVID flat suspensions, adding to the positive sentiment around 0:03:57.000 --> 0:03:59.960 top leaders calling for a more targeted approach to controlling 0:04:00.000 --> 0:04:04.320 the coronavirus Regionally, chipmakers also saw that drove benchmarks in Taiwan, 0:04:04.360 --> 0:04:07.080 South Korea and Japan high and local currency has got 0:04:07.080 --> 0:04:08.880 to boost as the dollus off at its worst day 0:04:08.920 --> 0:04:11.600 since two thousand and nine, the Korean one, jumping the 0:04:11.640 --> 0:04:15.240 most since October two thousand and eight. In Singapore, Juliette 0:04:15.280 --> 0:04:18.640 Sale Bloomberg Debriak Right, Juliette, thank you. In Europe today 0:04:18.800 --> 0:04:21.320 we have data on the British economy. GDP in the 0:04:21.440 --> 0:04:24.280 UK shrank in the third quarter, marking the startup what's 0:04:24.320 --> 0:04:27.880 expected to be a protracted recession. Gross domestic product fell 0:04:27.920 --> 0:04:31.120 two tenths of one percent. Consumers spending and business investment 0:04:31.160 --> 0:04:34.440 both fell. The Bank of England sees a recession persisting 0:04:34.480 --> 0:04:38.320 into the middle of four and new developments this morning 0:04:38.320 --> 0:04:41.400 involving FDx, dot Com and the crypto collapse that has 0:04:41.440 --> 0:04:44.719 sparked a securities regulator in the Bahamas is now frozen 0:04:44.760 --> 0:04:47.800 the assets of fd X and related parties. We get 0:04:47.800 --> 0:04:51.440 more from Bloomberg's Doug Prisner. The Bahamas Securities Commissions had 0:04:51.440 --> 0:04:53.960 a freeze was the prudent course of action to preserve 0:04:54.000 --> 0:04:57.440 assets and stabilize the company, and an attorney has been 0:04:57.480 --> 0:05:00.559 appointed provisional liquid dator as the comm as and aims 0:05:00.600 --> 0:05:04.920 to place the beleaguered crypto exchange into receivership. The Commission 0:05:04.960 --> 0:05:10.359 also said it's aware of statements suggesting client's assets were mishandled, mismanaged, 0:05:10.400 --> 0:05:14.360 and or transferred to Alameda Research. Alameda is the trading 0:05:14.400 --> 0:05:17.640 house at the heart of Bankman Freed's digital asset empire. 0:05:17.880 --> 0:05:21.080 He is the founder and CEO of FTX dot Com, 0:05:21.120 --> 0:05:23.719 based in the Bahamas in New York. On Duck Prisoner, 0:05:23.800 --> 0:05:26.200 Bloomberg Daybreak, All right, Dick, thanks about Twitter in the 0:05:26.200 --> 0:05:29.400 spotlight once again. Today, Bloomberg News has learned that Elon 0:05:29.480 --> 0:05:32.800 Musk is telling employees that bankruptcy is a possibility for 0:05:32.839 --> 0:05:35.560 the company. We get the story from Bloomberg SHIRLEYE. Pellett. 0:05:35.760 --> 0:05:39.039 Word came in his first address to Twitter employees since 0:05:39.080 --> 0:05:42.880 buying the company for forty four billion dollars. The social 0:05:42.920 --> 0:05:46.280 network has a significant debt burden from the acquisition and 0:05:46.400 --> 0:05:49.680 has seen a pullback from some advertisers that are concerned 0:05:49.720 --> 0:05:54.320 about Musk's plans for content moderation. Musk also told staff 0:05:54.400 --> 0:05:57.120 on the call that the days of free food and 0:05:57.240 --> 0:06:01.080 other perks are over. Twitter's office is in New York. 0:06:01.160 --> 0:06:03.760 Charlie Pelott, bloom Bird day Break, Thank you, Charlie. One 0:06:03.760 --> 0:06:06.920 other note on Twitter, the social media network reinstated official 0:06:06.960 --> 0:06:10.239 badges for high profile accounts to combat a growing problem 0:06:10.279 --> 0:06:14.160 of users impersonating major brands. The gray badge reappeared below 0:06:14.200 --> 0:06:17.920 the profiles of businesses and major media outlets this morning. Now, 0:06:18.000 --> 0:06:19.920 let's get you up to date on politics. Amy and 0:06:19.920 --> 0:06:23.000 the race for the Senate control is still undecided three 0:06:23.120 --> 0:06:25.880 days after the election. All comes down to three states. 0:06:26.000 --> 0:06:28.839 Counts are ongoing in Arizona and Nevada, and the race 0:06:28.880 --> 0:06:31.080 in Georgia is going to a run off in December. 0:06:31.240 --> 0:06:34.279 President Biden says Democrats face long odds to keep control 0:06:34.320 --> 0:06:37.440 of the House, but says it's not impossible. Oh no, 0:06:37.880 --> 0:06:44.560 Stull was Stoor but grown and Reside straight and Republicans 0:06:44.560 --> 0:06:46.320 are on pace to win at least two hundred ten 0:06:46.360 --> 0:06:49.559 seats so far compared to Democrats one two. Two hundred 0:06:49.600 --> 0:06:52.599 eighteen seats are required for a majority, and it is 0:06:52.600 --> 0:06:55.240 a blow for the Biden administration. A federal judge in 0:06:55.279 --> 0:06:58.520 Texas striking down the president's plan to forgive student loans. 0:06:58.760 --> 0:07:01.040 The judge called it one of the artist exercises of 0:07:01.160 --> 0:07:04.440 legislative power without congressional authority in the history of the 0:07:04.520 --> 0:07:07.760 United States. The Justice Department says it will appeal. The 0:07:07.760 --> 0:07:10.800 plan is already on hold under an emergency stay from 0:07:10.840 --> 0:07:14.239 another federal court. S and P futures up thirteen points, 0:07:14.320 --> 0:07:18.240 DW futures up one seventeen, NASDAC up sixty. This is 0:07:18.280 --> 0:07:24.720 Bloomberg six or seven on Wall Street. Let's bring in 0:07:24.760 --> 0:07:26.520 Michael bar to find out what else is going on 0:07:26.560 --> 0:07:28.880 in New York and around the world. Good morning, Michael, 0:07:28.960 --> 0:07:31.800 Good morning Amy. New York City Mayor Eric Adams says 0:07:31.840 --> 0:07:35.720 he won't stop talking about crime. Pushing back on criticism 0:07:35.760 --> 0:07:38.960 that he helped fuel the momentum of Republican candidates across 0:07:39.000 --> 0:07:43.040 the state in the mid term elections, Adam says that 0:07:43.080 --> 0:07:45.600 the system is broken and no one wanted to hear that. 0:07:46.040 --> 0:07:49.200 Adams later spoke at a community event on public safety. 0:07:49.400 --> 0:07:52.680 He talked about removing the homeless off the streets. When 0:07:52.720 --> 0:07:56.000 I started in January, I went out and visited those 0:07:56.040 --> 0:07:59.600 camps and those encampments, and I saw inside there was 0:07:59.720 --> 0:08:04.920 in humane human waste, stale food, dirty clothing, drug pal fernalia. 0:08:05.160 --> 0:08:09.080 Some people will buy folk by Polo schizophrenic. That is 0:08:09.200 --> 0:08:12.520 inhumane to allow people to live that way. And I said, 0:08:12.560 --> 0:08:15.520 as the mayor of this city, is not happening under 0:08:15.560 --> 0:08:19.400 our watch. Republican candidate seized upon crime as a central 0:08:19.520 --> 0:08:23.000 issue in the mid terms, including Representative Lees Helden, who 0:08:23.080 --> 0:08:26.080 ran closer than expected in his failed bid to unseat 0:08:26.160 --> 0:08:30.440 New York's Democratic Governor Kathy Hukel. President Biden left last 0:08:30.640 --> 0:08:33.520 night for his foreign country tour. The President will be 0:08:33.640 --> 0:08:37.040 joining world leaders in Egypt for the United Nations Global 0:08:37.160 --> 0:08:41.400 Climate Summit, also known as cop MEAN, while the bilateral 0:08:41.440 --> 0:08:45.199 meeting between Presidents Shi Jing Ping and Joe Biden has 0:08:45.240 --> 0:08:48.079 been set for the sidelines of the G twenty early 0:08:48.160 --> 0:08:52.400 next week. Bloomberg's At Baxter reports. US National Security Adviser 0:08:52.480 --> 0:08:55.880 Jake Sullivan says the US will brief Taiwanese officials before 0:08:56.280 --> 0:09:00.640 and after the President's talk they sit down Monday. Alivan says, 0:09:00.720 --> 0:09:02.839 face to face, you will get to sit in the 0:09:02.920 --> 0:09:05.640 same room with Shi Jimping, be direct and straightforward with 0:09:05.720 --> 0:09:07.760 him as he always is, and expect the same in 0:09:07.840 --> 0:09:10.600 return from she, and then he can make his judgments 0:09:10.600 --> 0:09:13.439 on that basis about how to take things forward. Sullivan 0:09:13.520 --> 0:09:16.520 says he's confidence Taipei will feel secure about its support 0:09:16.559 --> 0:09:20.040 from the United States. Sullivan repeated the US Commitment to 0:09:20.040 --> 0:09:23.800 Taiwan Relations Act and Peace and Stability in the Strait 0:09:24.240 --> 0:09:27.320 in San Francisco. I'm at Baxter. Bloomberg gave break Tropical 0:09:27.320 --> 0:09:30.040 depression to coal Is in Georgia this morning after a 0:09:30.160 --> 0:09:33.319 day of causing havoc and Florida as a hurricane and 0:09:33.360 --> 0:09:37.280 then tropical Storm Nicole had cut across central Florida after 0:09:37.320 --> 0:09:40.559 making landfall near Vero Beach. The storm caused at least 0:09:40.600 --> 0:09:43.680 two depths and sent homes along Florida's coast toppling into 0:09:43.720 --> 0:09:46.880 the ocean. Global News twenty four hours a day on 0:09:47.040 --> 0:09:50.080 air and on Bloomberg Quick Take, powered by more than 0:09:51.200 --> 0:09:54.320 journalists and analysts more than a hundred twenty countries. Michael 0:09:54.320 --> 0:09:57.600 Barr and this is Bloomberg Gaming. All right, thank you, Michael. 0:09:59.760 --> 0:10:02.240 It's extend on Wall Street time now for the Sports 0:10:02.240 --> 0:10:04.400 for four props to you by Tri State Outy. Here's 0:10:04.440 --> 0:10:06.960 John stash Our, all right, Amy. Rangers went to Detroit 0:10:07.040 --> 0:10:09.120 having recently lost to the Red Wings, part of a 0:10:09.160 --> 0:10:11.160 three game losing streak. They trailed through to one. It 0:10:11.240 --> 0:10:14.360 was to to third period when the Rangers erupted six 0:10:14.440 --> 0:10:17.480 goals in ten and a half minute, six different goal scorers. 0:10:17.600 --> 0:10:21.040 Rangers one to two. Islanders shut out by Arizona to nothing. 0:10:21.080 --> 0:10:30.920 The Devils stay hot in overtime with Ottawa power play 0:10:31.040 --> 0:10:35.480 game winner for the Devil and the winning Street is 0:10:35.520 --> 0:10:38.720 at eight. His radio calling the Niko he sheered tipping 0:10:38.800 --> 0:10:41.840 to the fourth three victory. Nike boss Phil Knight says 0:10:41.920 --> 0:10:44.800 his company likely ending its relationship with Kyrie Irving, now 0:10:44.840 --> 0:10:47.240 serving a suspension with the Nets for his posting to 0:10:47.240 --> 0:10:50.040 the anti semitic video, was refused to apologize Alough. NBA 0:10:50.080 --> 0:10:52.800 commissioner Adam Silver, who recently met with Irving, to The 0:10:52.840 --> 0:10:55.160 New York Times he does not believe Irving his anti 0:10:55.200 --> 0:10:58.640 semitic Lebron James said his former teammates should be allowed 0:10:58.679 --> 0:11:01.120 to play. Lebron said the requirement the Nets have put 0:11:01.160 --> 0:11:05.679 in place Irving's reinstatement are excessive. NFL Carolina being Atlanta 0:11:06.160 --> 0:11:09.960 fifteen Panthers are three and seven, Falcons are four and six. 0:11:10.000 --> 0:11:13.520 The entire NFC South is under five hundred, as opposed 0:11:13.559 --> 0:11:15.439 to the Jets division the a f C East, where 0:11:15.440 --> 0:11:18.160 everyone is over five hundred. Jets are off this week 0:11:18.240 --> 0:11:21.200 Giant Sunday host Houston Giants, also in a tough division, 0:11:21.200 --> 0:11:24.920 battling Dallas and unbeaten Philadelphia and as for Washington, the 0:11:25.120 --> 0:11:28.920 problems there continue, the d C Attorney General finding a 0:11:29.040 --> 0:11:32.000 civil lawsuit against the team and owner Dan Snyder, as 0:11:32.000 --> 0:11:34.960 well as Roger Goodell in the NFL for covering up 0:11:34.960 --> 0:11:37.559 and deceiving fans of what was going on in a 0:11:37.720 --> 0:11:41.600 toxic workplace. There were recently indications that Snyder maybe finally 0:11:41.640 --> 0:11:44.760 looking to sell the team. John Stashower Bloomberg Sports Team, 0:11:45.320 --> 0:11:47.960 all right, thank you, john s and B Futures up 0:11:48.000 --> 0:11:52.640 fifteen points, del Futures up one hundred seventeen, nasdat futures 0:11:52.800 --> 0:11:57.559 up sixty seven points. The decks in Germany up five 0:11:57.640 --> 0:12:00.000 tenths of a percent, CAC in Paris of five tenths 0:12:00.000 --> 0:12:02.319 ever percent. Let's see in London down three tenths of 0:12:02.440 --> 0:12:08.559 a percent. This is Bloomberg. The Bloomberg Sports Report was 0:12:08.600 --> 0:12:10.720 brought to you by Audie. Don't let someone else drive 0:12:10.760 --> 0:12:13.480 off in the Audi model you've always wanted. Visit your local, 0:12:13.520 --> 0:12:15.400 try state autie dealer to get behind the wheel of 0:12:15.400 --> 0:12:22.600 yours today. Visit Autie Offers dot com for more information, markets, 0:12:22.679 --> 0:12:25.760 headlines and breaking news twenty four hours a day at 0:12:25.760 --> 0:12:30.120 Bloomberg dot Com. To Bloomberg Business Outland at Bloomberg Quick Take, Chris, 0:12:30.280 --> 0:12:39.079 she's a Bloomberg business lash and I'm Karen. Moscow and 0:12:39.200 --> 0:12:41.920 US dock index futures are on the rise this morning, 0:12:41.920 --> 0:12:44.520 along with European shares. Is that you for it over 0:12:44.559 --> 0:12:47.960 A falling inflation in the world's largest economy extends into 0:12:47.960 --> 0:12:51.559 a second day, and China relaxes some COVID restrictions. We 0:12:51.679 --> 0:12:54.120 checked the markets every fifteen minutes throughout the trading day 0:12:54.480 --> 0:12:57.080 on Bloomberg Guess and p future is up seventeen points 0:12:57.120 --> 0:12:59.640 down features of a hundred thirty four nasday futures up 0:12:59.640 --> 0:13:02.839 seventy two the decks in Germany's up half percent. A 0:13:02.920 --> 0:13:05.520 ten year treasury month. No trading in the bond market today, 0:13:05.720 --> 0:13:08.400 that's an observance of the Veterans Day holiday. Nin mex 0:13:08.400 --> 0:13:10.360 SCRUD oil is up three and a half percent of 0:13:10.480 --> 0:13:12.640 three dollars at eighty nine dollars forty eight cents in 0:13:12.679 --> 0:13:15.439 barrel co Mex schooled a half percent or eight dollars 0:13:15.440 --> 0:13:18.680 at seventeen sixty one seventy ounce. The euro one pot 0:13:18.880 --> 0:13:21.480 tuesdays nine against the dollar, British pound one point one 0:13:21.520 --> 0:13:23.920 seven three six and the end at one thirty nine 0:13:23.920 --> 0:13:26.480 point seven seven and Bitcoin down two and a half 0:13:26.520 --> 0:13:29.719 percent at seventeen thousand, three hundred fifty dollars. That's a 0:13:29.760 --> 0:13:32.440 Bloomberg Business Flash. Now here's Michael Barr with more on 0:13:32.480 --> 0:13:34.880 what's going on around the world. Michael Karen, thank you 0:13:34.960 --> 0:13:37.560 very much. A fast moving missile as struck an apartment 0:13:37.600 --> 0:13:40.920 building in the south of Ukraine. People in Mick Alive 0:13:41.040 --> 0:13:45.040 woke up to find the building in ruins. Rescuers raced 0:13:45.080 --> 0:13:48.600 to the scene, digging through debris for survivors. A federal 0:13:48.720 --> 0:13:52.320 judge in Texas struck down the Biden administration sweeping student 0:13:52.400 --> 0:13:56.040 loan forgiveness plan. US District Judge Mark Pittman and a 0:13:56.120 --> 0:13:59.000 pointee of President Trump called it one of the largest 0:13:59.120 --> 0:14:03.560 exercises of legislative power without congressional authority in the history 0:14:03.559 --> 0:14:06.679 of the United States. In the NHL, the Devil's won 0:14:06.720 --> 0:14:09.320 in overtime against the Senators for three. The Rangers and 0:14:09.360 --> 0:14:13.200 Bruins also won. The Islanders lost. In the NBA the Wizards. 0:14:13.200 --> 0:14:18.160 One Thursday Night Football, the Panthers beat the Falcons. Global 0:14:18.200 --> 0:14:20.800 News twenty four hours a day on air and on 0:14:20.840 --> 0:14:24.480 Bloomberg Quick Take, powered by more than twenty seven journalists 0:14:24.480 --> 0:14:27.400 and analysts more than twenty countries. I'm Michael Bard. This 0:14:27.440 --> 0:14:30.480 is Bloomberg any all right, thank you, Michael. It is 0:14:30.520 --> 0:14:33.720 six nineteen on Wall Street Live from the Bloomberg Interactive 0:14:33.720 --> 0:14:37.280 Broker studios. This is Bloomberg Daybreak. Now, Bloomberg News has 0:14:37.320 --> 0:14:41.720 learned Elon Musk is wanting Twitter employees that bankruptcy is 0:14:41.880 --> 0:14:47.440 a possibility. We're joined now by Bloomberg Intelligence analyst Matthew Bloxam. Matthew, 0:14:47.440 --> 0:14:49.240 thank you for taking the time with us this morning 0:14:49.240 --> 0:14:52.400 to sort this out. It was Elon Musk, a new 0:14:52.440 --> 0:14:56.560 owner's first addressed to Twitter employees since he bought the company, 0:14:56.600 --> 0:14:59.280 And between this and the firings and some of the 0:14:59.320 --> 0:15:02.480 other issues going on eliminating work from home, it seems 0:15:02.520 --> 0:15:08.320 like a chaotic start. Yeah, it does certainly been a 0:15:08.360 --> 0:15:11.280 lot of news to digest, and you know, some really 0:15:11.360 --> 0:15:15.600 quite fundamental changes for Twitter employees, as you said, getting 0:15:15.680 --> 0:15:18.960 rid of at the headcount and telling people that they're 0:15:19.000 --> 0:15:20.320 going to have to do a U turn on the 0:15:20.320 --> 0:15:23.320 work from anywhere policy that Twitter became quite famous for. 0:15:23.480 --> 0:15:26.880 So um. Yeah, but very different future. I think if 0:15:26.880 --> 0:15:30.520 you're a Twitter employee, some of the other warnings for 0:15:30.600 --> 0:15:34.600 employees during that address, there could be eighty hour work weeks, 0:15:34.600 --> 0:15:39.200 which doesn't seem right ifewer office perks uh, he said, quote, 0:15:39.240 --> 0:15:42.000 We're gonna need to be more hardcore. What is his 0:15:42.200 --> 0:15:45.200 end game here? I can I think he's trying to 0:15:45.240 --> 0:15:48.720 turn this business into a company with a much sharper 0:15:48.840 --> 0:15:52.560 commercial edge. To say, those eight hour weeks stuff we've 0:15:52.560 --> 0:15:56.360 heard him talk about with his other companies to particularly 0:15:56.920 --> 0:15:59.920 Tesla and even at Space Scular, he really isn't in 0:16:00.000 --> 0:16:03.760 credibly demanding boss um and he expects people to put 0:16:03.800 --> 0:16:06.800 in the same commitment that he does. UM. So I think, yeah, 0:16:06.800 --> 0:16:10.280 you know, he's trying to kind of remodel twitter um 0:16:10.320 --> 0:16:13.320 into into something that's really much more focused around the 0:16:13.960 --> 0:16:17.480 revenue and the profit it's going to make and you know, 0:16:17.640 --> 0:16:20.000 ultimately helping him to get a return on that big 0:16:20.040 --> 0:16:24.200 investment he's made. Is that going to work? This doesn't 0:16:24.240 --> 0:16:28.760 seem sustainable just from looking from the outside in what 0:16:29.000 --> 0:16:35.000 needs to happen to help keep Twitter alive and and engaged. Yeah, 0:16:35.040 --> 0:16:37.640 you know, I think in the next maybe he knows 0:16:37.680 --> 0:16:40.200 the three six, twelve months, perhaps longer, this is going 0:16:40.280 --> 0:16:43.640 to be a pretty um bollatile time for the company. 0:16:43.960 --> 0:16:47.240 I think the benefit from not being in the public 0:16:47.280 --> 0:16:50.640 days of shareholders in terms of numbers, because certainly you 0:16:50.640 --> 0:16:55.480 could see active users dip, profit revenue dip in the 0:16:55.520 --> 0:16:57.480 near term. I think, you know, there's a couple of 0:16:57.480 --> 0:17:00.000 things that he clearly wants to do. One he's he's 0:17:00.040 --> 0:17:04.440 looking to reassure advertisers that Twitter is still a good 0:17:04.440 --> 0:17:07.960 place to spend our dollars and, if anything, to be 0:17:08.000 --> 0:17:10.400 a better place than that's been in the past to 0:17:10.520 --> 0:17:13.200 spend our dollars. I think, given you know the kind 0:17:13.200 --> 0:17:16.119 of noise you've heard about hate speech rising since his acquisition, 0:17:16.160 --> 0:17:19.200 he's got a lot of work to do to convince advertisers. 0:17:19.240 --> 0:17:22.200 But clearly that's that's part of his agenda. The other 0:17:22.200 --> 0:17:25.960 part vis agenda is to diversify the sources of revenue. 0:17:26.000 --> 0:17:30.120 So rather than being almost exclusively reliant on advertising revenue, 0:17:30.720 --> 0:17:33.800 to get subscription revenue of some description up to as 0:17:33.880 --> 0:17:36.879 much as fifty of the revenue, brace that that that 0:17:36.920 --> 0:17:40.400 will make the company much less exposed to the six 0:17:40.560 --> 0:17:44.520 caality of the economy and how much advertiser a spending 0:17:45.200 --> 0:17:48.119 and give a much more kind of predictable stream of 0:17:48.119 --> 0:17:50.600 revenue and hopefully you know, significantly increased the size of 0:17:50.600 --> 0:17:53.240 the business, so that that that those are two very 0:17:53.280 --> 0:17:57.280 big tasks and you know what will involve a huge 0:17:57.280 --> 0:18:01.560 amount of commitment from from the company now to that end. 0:18:01.960 --> 0:18:04.439 He also handed at new products that he wants to 0:18:04.480 --> 0:18:09.479 introduce on the platform, like controversial ads, checking accounts from Twitter. 0:18:10.240 --> 0:18:12.400 Does that go along with what you were just explaining 0:18:12.440 --> 0:18:14.840 about how they were going to boost revenue? What does 0:18:14.880 --> 0:18:17.439 this tell you? Yeah, it doesn't. I think, you know, 0:18:17.680 --> 0:18:21.159 it tells you that he looked at Twitter and you know, 0:18:21.160 --> 0:18:22.880 I think for a long time they've thought about trying 0:18:22.880 --> 0:18:25.960 to get the active user based to a billion users. 0:18:25.960 --> 0:18:28.040 You know that, you know, they're around children fifty million 0:18:28.480 --> 0:18:31.520 and it's been growing only slowly. So I think you 0:18:31.960 --> 0:18:36.520 recognizing that if you're going to massively increase the revenue 0:18:36.560 --> 0:18:39.200 they make about five billion dollars of revenue a year, 0:18:39.320 --> 0:18:42.359 you know, dwarfed by Google and Meta. If you're going 0:18:42.400 --> 0:18:45.399 to substantially increase the scale of the business to boost 0:18:45.400 --> 0:18:48.800 the profitability, you have to look at additional products and 0:18:48.880 --> 0:18:50.240 you think, well, you know, what are the kind of 0:18:50.280 --> 0:18:53.560 things that we could offer to this two fifty million 0:18:53.680 --> 0:18:56.960 or so users that's going to bring in incremental revenue. 0:18:57.000 --> 0:18:58.399 I think he's looking to some of the kind of 0:18:58.480 --> 0:19:02.240 Chinese UM models that have kind of diversified. You have 0:19:02.320 --> 0:19:03.880 things like reach Out. You know, you kind of got 0:19:03.920 --> 0:19:08.000 these ecosystems that that kind of basically draw more of 0:19:08.280 --> 0:19:13.639 active users daily lives into the platform and you generate um, 0:19:13.840 --> 0:19:16.280 you know, small small chunks of revenue from lots of 0:19:16.320 --> 0:19:20.000 different services very quickly ten fifteen seconds. What are you 0:19:20.000 --> 0:19:24.440 watching for in the coming few days, UM, I think 0:19:24.480 --> 0:19:27.399 really just kind of news on how they're going to 0:19:27.400 --> 0:19:29.679 evolve this kind of Twitter blue blue tick and the 0:19:29.760 --> 0:19:31.800 official status, and if they're going to kind of clean 0:19:31.840 --> 0:19:34.560 it up and get it really now down so that 0:19:34.600 --> 0:19:37.200 you advertisers feel that, you know that the content can 0:19:37.200 --> 0:19:39.960 be trusted. Oh yeah, that's a big deal, the blue tick. 0:19:40.040 --> 0:19:43.440 Thank you so much, Matthew Bloomberg Intelligence analyst Matthew Bloxham 0:19:43.640 --> 0:19:45.480 bringing us up to speed on what's up with Twitter. 0:19:46.040 --> 0:19:48.840 Futures are higher. S and P futures up seven eighteen 0:19:48.880 --> 0:19:51.680 points now, DAL futures up a hundred forty one, Nasdaq 0:19:51.760 --> 0:19:55.000 futures up seventy seven points. Dax in Germany have six 0:19:55.040 --> 0:19:57.399 tent seven percent. CAC and pair US of a half percent, 0:19:57.560 --> 0:20:01.600 FOOTSIE in London down to tenths of percent, much more 0:20:01.600 --> 0:20:07.120 still to come. On Bloomberg Daybreak. This is Bloomberg. 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I'm Amy Morris and 0:20:54.640 --> 0:20:57.160 I'm Karen Moscow, and we're just about three hours away 0:20:57.200 --> 0:20:59.320 from the open of US trading time. Of the five 0:20:59.320 --> 0:21:01.600 things you need to notice start your day brought to 0:21:01.640 --> 0:21:05.600 you by Interactive Brokers. Interactive Brokers clients are an interest 0:21:05.600 --> 0:21:07.920 of up to three point three three on the idle 0:21:08.000 --> 0:21:10.720 cash and their brokerage accounts. Visit I pk R dot 0:21:10.720 --> 0:21:14.480 com slash interest rates to learn more. First, US futures 0:21:14.520 --> 0:21:16.879 are building on yesterday's games, which saw the S and 0:21:16.920 --> 0:21:20.520 P five hundreds surge more than five percent. Slowing inflation 0:21:20.600 --> 0:21:23.920 was the catalyst, but investment Coachief investment officer at Dana 0:21:24.040 --> 0:21:27.280 Doria call cautions that they're still a bumpy road ahead. 0:21:27.600 --> 0:21:29.920 The FED is a lot more concerned about a stop 0:21:29.960 --> 0:21:33.240 and go policy error than they are about pushing a 0:21:33.240 --> 0:21:36.320 little too hard. Still, all else, Equel, I think you 0:21:36.400 --> 0:21:40.600 still should be prepping for potentially tough conditions investments. Dana 0:21:40.720 --> 0:21:44.080 Doria says the likelihood of recession next year still high. 0:21:44.400 --> 0:21:47.160 It is not clear if October CPI print will slow 0:21:47.240 --> 0:21:50.000 the FED space of tight thing. San Francisco FED President 0:21:50.040 --> 0:21:53.160 Mary Daily addressed the issue yesterday. Stepping down is an 0:21:53.160 --> 0:21:56.120 appropriate thing to think about. I support a more gradual 0:21:56.160 --> 0:21:58.640 approach of getting to and so we can be discovering 0:21:58.640 --> 0:22:01.720 the right rate as we got. San Francisco FED President 0:22:01.720 --> 0:22:04.840 Mary Daily one of three officials signaling a downshift in 0:22:04.960 --> 0:22:08.440 rate hikes is possible. Well, Amy new Crypto developments this 0:22:08.480 --> 0:22:11.880 morning focused on ft X dot com. A securities regulator 0:22:11.920 --> 0:22:14.879 in the Bahamas is now frozen the company's antsets the 0:22:14.920 --> 0:22:18.479 crypto exchange. Binance had tried to acquire f t X, 0:22:18.720 --> 0:22:21.680 but the deal fell through. Now Binance CEO C Z 0:22:21.880 --> 0:22:25.520 Jao is addressing the matter from a technology or product perspective. 0:22:25.600 --> 0:22:28.080 They don't have anything that we don't have, so our 0:22:28.160 --> 0:22:31.959 original intention was let's save the users. But then the 0:22:32.000 --> 0:22:36.440 news of UH misappropriating user phones and especially US regulatory 0:22:36.480 --> 0:22:40.600 agencies investigations, We're like, okay, we can't touch that anymore. 0:22:40.920 --> 0:22:44.000