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Speaker 1: Live from the Bloomberg Interactive Brookers Studios. This is Bloomberg

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Speaker 1: Day Right for Tuesday, January three, three. Having up the

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Speaker 1: sour Stocks, kickoff the new year with games. After a

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Speaker 1: dismal I M. F. Lawrence, A third of the world

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Speaker 1: economy to be in recession this year. China's chi Jin

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Speaker 1: Pink says tough challenges remain in the country's fight against COVID.

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Speaker 1: An Tessa delivers fewer vehicles that expected in the fourth quarter.

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Speaker 1: Demand charged with shooting up a New York subway car

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Speaker 1: will be in court. Plus, Brazilian authorities are reopening a

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Speaker 1: fraud case against Representative Alex Santos. On Michael barn More

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Speaker 1: a Half, John Statuward sports The Nixon Nets one The

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Speaker 1: Bill's Bengals game postponed after a Buffalo player went into

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Speaker 1: cardiac arrest. That's all straight Ahead on Bloomberg Day Break.

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Speaker 1: On Bloomberg You live in Freo, New York, Bloomberg N one, Washington,

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Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty,

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Speaker 1: San Francisco, Sirius x M one nine Team and around

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Speaker 1: the world on Bloomberg Radio dot Com, them and via

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Speaker 1: the Bloomberg Business app. Good morning and happy new year.

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Speaker 1: I'm Nathan Hagart and I'm Karen Moscow at US Stock

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Speaker 1: index futures are higher this morning, and we checked the

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Speaker 1: markets all day long here on Bloomberg. SMP futures up

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Speaker 1: forty three points or one point one percent. DAL futures

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Speaker 1: have one percent or three hundred thirty eight points, and

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Speaker 1: nosday futures have one point three percent or a hundred

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Speaker 1: forty points. And the tenure treasury up one in five

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Speaker 1: thirty seconds three point seven three percent. Nathan, Karen, let's

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Speaker 1: stay with markets as we kick off this new year.

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Speaker 1: Investors seem to be glad two in the rear view

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Speaker 1: mirror Bloomberg. Steve Rappaport joins US Live with more. Good morning, Steve,

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Speaker 1: Good morning, Nathan and Karen. Wall Street futures point to

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Speaker 1: a higher opening as investors cautiously ringing the new trading year.

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Speaker 1: They're keeping a close eye on global equities, having lost

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Speaker 1: twenty percent in value after sharp swings last year. Then

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Speaker 1: there's the dreaded eye word and what to do about it.

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Speaker 1: Traders worry the federals and other central banks might be

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Speaker 1: willing to risk a recession to bring down inflation that

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Speaker 1: remains stubbornly high. We'll get a better look at the

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Speaker 1: FEDS thinking. On Thursday, when policymakers released notes from their

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Speaker 1: latest meeting live in New York, I'm Steve rep report

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Speaker 1: Bloomberg Daybreak. All right, Steve, thank you. Well. It's the

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Speaker 1: first day of trading for Staunton, London and let's go

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Speaker 1: there live and get the latest from Bloomberg Daybreak. Europe

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Speaker 1: Banker Stephen Carroll, Stephen, good morning, Good morning, Karen and Nathan.

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Speaker 1: The London market joining in that New year rally. Shares

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Speaker 1: in the foot see one hundred up two point three

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Speaker 1: percent two hours into the trading session. The top performers

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Speaker 1: on the British market include the food delivery service at Cado,

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Speaker 1: British Airways owner I A G, as well as the

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Speaker 1: oil majors BP and Shell. We've got a second day

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Speaker 1: of games. Across other European markets, the stocks six one

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Speaker 1: point eight percent, the cat Carrounton Paris and the Jackson

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Speaker 1: Frankfort both at one point four percent. Past performing sector

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Speaker 1: travel and leisure shares currently up over three percent. Are

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Speaker 1: people planning New Year's holidays in London I'm Stephen Carroll,

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Speaker 1: Bloomberg Daybreak. Okay, Stephen, thanks. Let's turn to Asia now,

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Speaker 1: where stocks were mostly higher overnight, and we get the

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Speaker 1: recap from bloom Brig's Richard Salaman. In Hong Kong, Hi,

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Speaker 1: Karen and Nathan Asian investors trying to find answers to

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Speaker 1: three known unknowns, chiefly where inflation goes, what central bankers

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Speaker 1: do about it further, and where China's COVID endemic leaves

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Speaker 1: the economy benchmarks. As a result of a seesaw session,

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Speaker 1: with the week start being reversed in Hong Kong and China,

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Speaker 1: South Korean equities also managed to clovack losses, finishing just

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Speaker 1: below the game line. The bulls decided to give Australian

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Speaker 1: shares and mr today as banks and health related issues

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Speaker 1: drove the a s X to a one point three

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Speaker 1: percent loss. Bank holiday in Tokyo saw no share or

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Speaker 1: bond trading, However, it was the end seizing the headlines.

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Speaker 1: Its rapid climb against the dollar isn't debating, with the

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Speaker 1: currency hitting six month highs and breaching the one hundred

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Speaker 1: and thirty level in Hong Kong. I'm Richard Salama bloom

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Speaker 1: Lug Daybreak, Ris thank you. While COVID remains front and

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Speaker 1: center in China, President Hijan Ping says the country is

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Speaker 1: moving into a new phase in its COVID pivot. In

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Speaker 1: its New year address as president, she warned up hard

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Speaker 1: times ahead. With extraordinary efforts, China has prevailed over unprecedented

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Speaker 1: difficulties and challenges. It has not been an easy journey

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Speaker 1: for anyone. We have now entered a new phase of

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Speaker 1: COVID response where tough challenges remain. Chinese President she Champain

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Speaker 1: did not acknowledge recent protests over COVID directly, but did

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Speaker 1: say it's only natural for people to have different concerns

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Speaker 1: and views on the issues. Karen, President, she isn't the

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Speaker 1: only one seeing tough times ahead. I m F Managing

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Speaker 1: Director Christelina Georgieva's issuing a warning on the global economy.

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Speaker 1: She expects one third of the world to be in

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Speaker 1: recession this year. We expect one third of the world

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Speaker 1: economy to be in recession. For most of the world economy.

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Speaker 1: This is going to be a toughier, tougher than dear

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Speaker 1: we leave behind. Why because the three bank economies US, you,

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Speaker 1: China are all slowing the Simultaneously, I am F Managing

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Speaker 1: director Krystalline and Georgieva spoke on Face the Nation from CBS.

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Speaker 1: You can catch the program every Sunday on Bloomberg Radio. Meantime,

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Speaker 1: in Washington, Nathan, a new Congress is seated today. That

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Speaker 1: means it's time to select a new Speaker of the House.

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Speaker 1: But as Bloomberg's and Baxter reports is it's not expecting

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Speaker 1: to be a coronation. Kevin McCarthy's chances remain in doubt.

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Speaker 1: With the Republicans only holding a slender majority in the

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Speaker 1: new House, McCarthy cannot lose more than four GOP votes

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Speaker 1: in his bid, and the latest tallies have more than

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Speaker 1: that not committed to him, and two have already said

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Speaker 1: there is nothing that McCarthy can do to get their votes.

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Speaker 1: Coming out of meetings held over the weekend, predictions of

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Speaker 1: multiple rounds with fierce negotiation going on in the interim.

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Speaker 1: McCarthy has been endorsed by Donald Trump, which complicates things

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Speaker 1: for the GOP with a good number of the party

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Speaker 1: trying to move away from Trump. In San Francisco, I'm

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Speaker 1: at Baxter Bloomberg Daybreak. All right, and thanks turning to

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Speaker 1: corporate news this morning, we are seeing more downbeat data

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Speaker 1: from tes Flow. The shares are down about four percent

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Speaker 1: in early trading after the company delivered fewer vehicles than

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Speaker 1: expected in the fourth quarter. Bloomberg's Doug Krisner has the story.

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Speaker 1: Worldwide deliveries total four hundred five thousand, two hundred seventy eight,

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Speaker 1: but that miss the average Bloomberg estimate by more than

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Speaker 1: fifteen thousand cars. Nonetheless, the quarterly figure is a record.

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Speaker 1: CEO Elon Musk had predicted an epic end to the year.

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Speaker 1: To clear inventory, Tesla offered discounts of seventy five hundred

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Speaker 1: dollars to US consumers who took delivery in the final

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Speaker 1: days of December. Well, now Tesla is offering incentives in China.

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Speaker 1: Chinese buyers will get the equivalent of fourteen hundred fifty

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Speaker 1: dollars on certain models if they take delivery by February

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Speaker 1: in New York on Duck Prisoner Bloomberg Daybreak right. Thanks So.

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Speaker 1: One of most other companies is also in the spotlight

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Speaker 1: this morning. According to CNBC, SpaceX is raising seven hundred

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Speaker 1: fifty million dollars in new funding that values the company

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Speaker 1: at one hundred thirty seven billion dollars, and this is Bloomberg. Hi, Karen,

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Speaker 1: thank you. It's forty nine degrees in Central Park. Cloudy

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Speaker 1: for now, but we expect rain for much of the day. Hi.

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Speaker 1: Today in the upper fifties. We're gonna stay in the

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Speaker 1: mid fifties tonight as the rain starts to taper off.

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Speaker 1: Now it's time to take a look at some of

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Speaker 1: the other stories making news in New York and around

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Speaker 1: the world. For that, we bring in Bloomberg's Michael bar

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Speaker 1: Happy New Year, Michael, Happy New Year to you. Nathan

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Speaker 1: Prosecutors one of decades long prison sentence for a man

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Speaker 1: who was expected to plead guilty this week to opening

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Speaker 1: fire in a subway car and wounding ten riders in

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Speaker 1: New York City. Frank James as scheduled to enter a

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Speaker 1: guilty plead today in Brooklyn Federal Court, admitting that he

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Speaker 1: was responsible for the April twelfth attack. It set off

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Speaker 1: a massive thirty hour man hunt that ended when the

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Speaker 1: sixty three year old called the police on himself. Brazilian

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Speaker 1: authorities planned to revive an old criminal case on fraud

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Speaker 1: charges against George Santos, the representative elect from Long Island

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Speaker 1: takes his seat in Congress today. The proces Secutor's office

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Speaker 1: in Rio de Janeiro has said the case against Santos

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Speaker 1: stems from a two thousand eight incident regarding the stolen checkbook.

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Speaker 1: Police in Pennsylvania said the man who shot and killed

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Speaker 1: the police chief and Brackenridge has been in turn shot

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Speaker 1: and killed by Pittsburgh police. Aaron Lamont Swan, who was

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Speaker 1: twenty eight, was wanted on a parole violation and fled

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Speaker 1: from a traffic stop. Alleghany County Police Superintendent Christopher Kerns

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Speaker 1: says Pittsburgh detective spotted Swan's vehicle while checking known addresses

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Speaker 1: where he might be. There was a car chase. The

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Speaker 1: suspect crashed the car and fled into the woods. The

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Speaker 1: officers quickly formed the perimeter. While forming the perimeter, the

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Speaker 1: suspect ran from the wooded area. While fleeing from the officers,

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Speaker 1: the suspect fired at the officers. Christopher Kerns with the

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Speaker 1: Alleghany County Police says Chief Justice Justin Meyer, who was killed,

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Speaker 1: was the definition of a community officer. The suspect in

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Speaker 1: the New Year's Eve attack on three New York City

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Speaker 1: police officers near Times Square has been arrested in charge

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Speaker 1: with attempted murder. Police identified him as a nineteen year

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Speaker 1: old Trevor Bickford of Wells Main. Retired in y p

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Speaker 1: D Chief of Detectives Robert Boyce says the heavy police

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Speaker 1: presence on New Year's Eve is usually a successful deterrent.

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Speaker 1: Of course, this is our biggest deployment of the year

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Speaker 1: in New Year. Say, we have the most officers out there.

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Speaker 1: We have. We have all kinds of frozen zones and

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Speaker 1: to find rids. It's not an usual at all to

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Speaker 1: have several thousand place hopus sport in that night. So

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Speaker 1: we haven't had this for a while. Former m ip

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Speaker 1: D chief boy spoke to ABC Global News twenty four

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Speaker 1: hours a day on air and on Bloomberg Quick Take,

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Speaker 1: powered by more than hundred journalists and analysts more than

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Speaker 1: a hundred twenty countries. I'm Michael Barr and this is Bloomberg.

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Speaker 1: Ain't it all right? Michael? Thanks time for the Bloomberg

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Speaker 1: sports update. Bront try state AUTI for that. We bring

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Speaker 1: in John stash Our from Morning John. Good morning Nathan.

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Speaker 1: It was to be a big game between two of

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Speaker 1: the NFL's best teams, but in the first quarter the

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Speaker 1: outcome of the a ball game seemed awfully insignificant. Buffalo

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Speaker 1: safety Damar Hamlin made a tackle, got up for a

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Speaker 1: couple of seconds, and then fell backwards, and it was

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Speaker 1: clear this was not a normal injury. He had gone

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Speaker 1: into cardiac arrest re CI, CPR and oxygen. They were

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Speaker 1: able to have his heartbeat restored, but Hamlin is now

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Speaker 1: in a Cincinnati hospital in critical condition. At one point

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Speaker 1: there was talk of resuming the game, but that did

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Speaker 1: not last. Although it was an hour and a half

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Speaker 1: before the game was officially postponed. The Bills flew back

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Speaker 1: to Buffalo. The NFL has not said when the game

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Speaker 1: will be played. They played four bowl games. Penn State

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Speaker 1: pulled away on Utah to when the Rose LSU took

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Speaker 1: the Citrus sixty three to seven. Over produced. Mississippi State

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Speaker 1: won its bowl game for coach Mike leachs you recently

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Speaker 1: passed away and an amazing cotton ball win for two.

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Speaker 1: Lane trailed USC by fifteen, was just over four mints left,

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Speaker 1: took its first lead with nine seconds left to Lane

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Speaker 1: won next back at the Garden Help Phoenix the only

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Speaker 1: eleven first quarter points beat the cold shooting Sons one

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Speaker 1: oh two, eight three. Twelfth straight win for the Nets.

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Speaker 1: Blow out of in Antonio at Barkley's one oh three

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Speaker 1: and Cleveland's overtime went over Chicago the Cavs Donovan Mitchell

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Speaker 1: scored seventy one points, most of the Nbation's Kobe Bryant's

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Speaker 1: eighty one point game. In two thousand six, a year

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Speaker 1: after Ructors stun number one rank perdu what happened again?

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Speaker 1: Scarlett Knights one on the road, sixty five sixty four

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Speaker 1: outdoor hockey on unusually warm New Year's Day in Boston,

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Speaker 1: the Bruins rallied past Pittsburgh two to one. They had

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Speaker 1: a sellout crowd at Fenway Park. John stash Hallar Bloomberg Sports,

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Speaker 1: Nathan Okay, John, Thanks, and Bloomberg Sports was brought to

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Speaker 1: you by Audie. Don't let someone else drive off in

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Speaker 1: the Audi model you've always wanted. Visit your local Tri

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Speaker 1: state autie dealer to get behind the wheel of yours today,

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Speaker 1: or visit autie Offers dot com for more information. Kicking

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Speaker 1: off the new year with games across the board, S

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Speaker 1: and p futures right now are up forty points. Staff

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Speaker 1: futures up three to fifteen. NASTAC futures are hired by

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Speaker 1: a hundred twenty seven points ten. Your treasury is up

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Speaker 1: one in five thirty seconds for yield a three point

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Speaker 1: seven three percent. This is Bloomberg and that's now time

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Speaker 1: to check in with Dennis Gartman, chairman of the University

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Speaker 1: of Akron endowm An Investment Committee, former publisher of the

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Speaker 1: Garment letter. As we get three started, Happy new year, Dennis,

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Speaker 1: It seems like investors are happy to put two behind them.

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Speaker 1: Is that kind of explains the gains we're seeing across

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Speaker 1: the board this morning. Well, it's interesting, Nathan. This is

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Speaker 1: one of those rare days when you have gold higher,

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Speaker 1: bonds higher, and stocks higher. One of them has to

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Speaker 1: be wrong. Normally they cannot move all and tandem one

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Speaker 1: with the other. But perhaps it's just the fact that

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Speaker 1: it's the start of the new year. We always see

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Speaker 1: an influx of money coming in the first of the

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Speaker 1: month of the first of the year. That happened exactly

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Speaker 1: the same last year. The first day of the year

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Speaker 1: was a was a rather substantive rally, and then it

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Speaker 1: ended up being a bear market the day after but

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Speaker 1: it is rare to see both, to see gold, stocks

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Speaker 1: and bonds all all higher, and rather sharply higher. So,

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Speaker 1: as I said earlier, one of the probably is wrong.

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Speaker 1: I think that stocks are probably the one that is wrong.

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Speaker 1: But we'll see. Time shall tell. Well, what makes you

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Speaker 1: say that, Dennis? I mean, you were one of the

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Speaker 1: first to call this a bear market shortly after the

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Speaker 1: SMP five hundred mate its peak one year ago. Today

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Speaker 1: was its last closing record. What makes you think things

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Speaker 1: are going to be the same as they were last year? Is?

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Speaker 1: Is that what you're saying? Yeah, that's basically what I'm saying.

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Speaker 1: I think this is just the fact that we had

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Speaker 1: It's the start of the year, the start of the month,

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Speaker 1: and there's always an influx of capital that comes in

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Speaker 1: exactly a replication of what happened last year. The problem

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Speaker 1: is that we have stock places I think have had

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Speaker 1: an inordinarly high, large rally in the course of the

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Speaker 1: past month and a half predicated upon the Fed uh

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Speaker 1: pivoting from its tightening monetary policies. And I think that

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Speaker 1: that's ill advised to consider that fact. I think the

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Speaker 1: Fed is going to continue to allow the overnight not allow,

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Speaker 1: but but move the overnight said funds right to five

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Speaker 1: to five and a quarter percent over the course of

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Speaker 1: the next several months. We'll see when to get to

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Speaker 1: the first FMC meeting in February. But time shall tell.

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Speaker 1: The the I m F has said that we're going

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Speaker 1: to have the one third of the world is going

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Speaker 1: to be in recession over the course of the next

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Speaker 1: year or two. I think that that will will weigh

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Speaker 1: upon stock prices eventually. So again, it's unusual to see

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Speaker 1: that we have stocks, bonds, and in gold rallying and

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Speaker 1: on all on the same day. One of them has

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Speaker 1: to be wrong, and as I said, I think it's

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Speaker 1: the stock market that is wrong. I think we're going

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Speaker 1: to see a replication of what happened last year. Yeah,

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Speaker 1: you mentioned that call from the the director of the

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Speaker 1: I m F that will of the world is going

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Speaker 1: to be in a recession this year. Uh, do you

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Speaker 1: include the US in that third of the world. Basically,

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Speaker 1: I think the US is going to have a slowing economy.

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Speaker 1: I'm not sure they will have an official recession. Two

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Speaker 1: consecutive quarters of negative GDP growth such as what we

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Speaker 1: had at the beginning of last year. But I think

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Speaker 1: that the U S economy is going to be continuously

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Speaker 1: slower than had been hoped for, and the said will

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Speaker 1: will will probably tighten for far too long. That's the

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Speaker 1: tennessee of the FED is to be too too late

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Speaker 1: and in tightening, too late and early, or too early

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Speaker 1: in easing, or too late and easing. And I think

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Speaker 1: that that's going to be the same circumstance this year.

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Speaker 1: So we'll have a I don't think we'll have a

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Speaker 1: recession by normal textual UH definition, but I think we're

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Speaker 1: gonna see a weekly economy. Housing prices clearly are are weakening.

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Speaker 1: Housing the man is clearly weakening, and housing is a

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Speaker 1: dominant force in the US economy. And I think that

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Speaker 1: that's going to be the major thing, the major problem

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Speaker 1: that will have to deal with over the course the

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Speaker 1: next several months. If I remember rightly, the last time

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Speaker 1: we spoke, I think you said that, along with consensus,

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Speaker 1: that the FED is probably going to peak at five

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Speaker 1: to five and a quarter per cent. Is that still

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Speaker 1: your call? And do you think that the Fed? I

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Speaker 1: mean you already said that you think the FED should

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Speaker 1: probably be pivoting sooner than expected. When do you think

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Speaker 1: the Fed? UH? Should start thinking about reducing the the

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Speaker 1: terminal rate. Actually, I think what I said is that

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Speaker 1: the FED will be slow to to to go to

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Speaker 1: a pivot. If I've learned anything in forty five years

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Speaker 1: of being in the market, is so when the FED

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Speaker 1: begins to tighten monetary policy after easing, or easing policy

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Speaker 1: after tightening, it takes rates far farther, far higher or

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Speaker 1: far lower, and for a longer period of time than

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Speaker 1: even the most radical among us want to believe. So

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Speaker 1: I think the fact that the FED will pivot eventually

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Speaker 1: will be in three and if it's four, it will

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Speaker 1: probably late in the year the FED will be The

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Speaker 1: FED is slowed to change policy, and once it changes,

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Speaker 1: it keeps that new policy in the in effect for

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Speaker 1: a much longer period of time and takes rates much

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Speaker 1: farther than anybody wants to anticipate. So it will be

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Speaker 1: along a long period of time before the FED pivots.

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Speaker 1: About thirty seconds left in this segment, Dennis, But you

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Speaker 1: said that the that you don't expect that there's going

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Speaker 1: to be a technical recession for the US. How do

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Speaker 1: you square that with the possibility that the FED could

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Speaker 1: keep rates higher for longer that That is the the

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Speaker 1: prime question, isn't it. Time shall tell what happens, how that,

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Speaker 1: how that plays out. But again I think it'll be

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Speaker 1: a long period of time before the Fed begins to

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Speaker 1: pivot to to lower rate. Little little, it'll manufacture higher

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Speaker 1: overnight and said funds rate to five five and a

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Speaker 1: quarter or five and a half percent, and then they'll

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Speaker 1: stay stay at that level for a long period of time,

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Speaker 1: just as they did when they east and capt rates

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Speaker 1: at a low level for a long period of time.

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Speaker 1: They'll do the same with high rates. They'll want to

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Speaker 1: make sure that they see real definitive action, real definitive

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Speaker 1: recessionary circumstances, before they begin to begin to pivot. It

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Speaker 1: will be a long period of time, So be patient,

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Speaker 1: all right, And we're going to continue this conversation with

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Speaker 1: Dennis Gartman, former publisher of the Gartment Letter now share

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Speaker 1: of the University of acron Endowment Investment Committee in the

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Speaker 1: minutes ahead here. So stay with us here on Bloomberg

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Speaker 1: Daybreak as we watch investments rise across the board. Right now,

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Speaker 1: SMP futures are up thirty six point, staff futures up

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Speaker 1: Tune to ninety two. Nasdaq futures up a hundred seventeen points,

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Speaker 1: the tenure treasury up one and four thirty seconds for

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Speaker 1: a yield of three point seven This is the markets,

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Speaker 1: headlines and breaking news twenty four hours a day at

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Speaker 1: Bloomberg dot com, a Bloomberg Business at and at Bloomberg

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Speaker 1: Quick take, this is a Bloomberg business lash and I'm

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Speaker 1: Karen Moscow. US stock index futures on the rise. With this,

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Speaker 1: other stocks like European shares, for instance, as signs of

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Speaker 1: China's recovery and resilience in Europe stoke optimism about the

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Speaker 1: global economy. Treasuries and the dollar also gaining. Check the markets,

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Speaker 1: aren't they long? Here on Bloomberg right now? S and

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Speaker 1: P futures up thirty four points or nine tenths of

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Speaker 1: a per cent, Dal futures up eight tens of upper

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Speaker 1: cent or two hundred seventy eight points, and as Deck

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Speaker 1: futures have nine tenths of upper cent or a hundred

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Speaker 1: three points, so they're giving up some of their gains.

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Speaker 1: The decks in Germany's at one point three per set ten,

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Speaker 1: Your treasury up one in five thirty seconds, you have

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Speaker 1: three point seven three percent. They yield on the two

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Speaker 1: year four point three four percent nine. Next, Scrude oil

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Speaker 1: is down about six tents of upper cent or fifty

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Speaker 1: cents at seventy nine dollars seventy five cents in barrel.

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Speaker 1: Comic Schoold is up one of seventeen dollars seventy cents

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Speaker 1: at eighteen forty four announced. The euro one point oh

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Speaker 1: five four nine against the dollar, British found one point

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Speaker 1: one nine two eight, the n one thirty point six

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Speaker 1: two And look at a big cooin is sound a

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Speaker 1: tenth of a percent at about sixteen thousand, seven hundred dollars.

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Speaker 1: And that's a bloomberg business flash. Now here's Michael Bard

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Speaker 1: with more unless going on around the world. Unchael, good morning,

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Speaker 1: Good morning, Karen. Representative Kevin McCarthy's chances of becoming House

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Speaker 1: Speaker remain in doubt as Republicans formally take control of

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Speaker 1: the Chamber today. McCarthy can't lose more than four GOP

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Speaker 1: votes in his bid for speaker, and at least fourteen

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Speaker 1: Republicans still have not promised their support. Buffalo defensive back

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Speaker 1: to mar Hamlet as in critical condition early this morning

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Speaker 1: after the bills, saying he suffered a cardiac arrest on

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Speaker 1: the field after a tackle. Monday Night's game has been

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Speaker 1: postponed against the Bengals. In the NBA, the Knicks, Nets

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Speaker 1: and Warriors one Cavaliers beat the Bulls in ot Cleveland's

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Speaker 1: Donovan Mitchell scored seventy one point. In the NHL, the

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Speaker 1: Bruins one Global twenty four hours a day on there

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Speaker 1: and on Bloomberg Quick Thank powered by more than twenty

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Speaker 1: seven hundred journalists and analysts more than twenty countries. Michael Barr,

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Speaker 1: this is Bloomberg, Nathan, Michael, thank you. It is on

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Speaker 1: Wall Street. We're back now with Dennis Gartman, chairman of

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Speaker 1: the University of Akron and Downmand Investment Committee, of course,

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Speaker 1: former publisher of the Garment Letter, as we watch stocks, bonds,

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Speaker 1: and gold rise in tandem on this first trading day

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Speaker 1: of three. Dennis, if stocks are wrong, how much further

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Speaker 1: do they have downward to go? I think they make

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Speaker 1: a new load for the year, taking out less taking

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Speaker 1: out the load that was made to the one in

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Speaker 1: late September early October. I don't think they'll go much below.

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Speaker 1: They're ten to fifteen percent from down from where we

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Speaker 1: are right now, We're probably sufficient to turn me from

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Speaker 1: being barrish of equities to being at least neutral, perhaps

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Speaker 1: even bullish. So let's call it tend to fifteen cent

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Speaker 1: from where we are right now, it's it's interesting, as

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Speaker 1: we talked earlier, it's an unusual circumstance to see bonds,

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Speaker 1: stocks and gold all rallying on the same time, the

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Speaker 1: same day, at the same time. They're doing it almost

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Speaker 1: exactly the same amount, about eight eight tenths of one

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Speaker 1: percent across the board. So it's unusual and strange, and

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Speaker 1: one of them has to be wrong. What's the catalyst

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Speaker 1: that turns stocks from a bear market to a ball market?

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Speaker 1: For you? The Fed changing monetary policy, and that's gonna

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Speaker 1: be a long period of time before that happens again.

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Speaker 1: As I said earlier, in the forty five years i've

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Speaker 1: been in the markets and and since graduate school, the

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Speaker 1: one thing I've learned is that when the FED changes

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Speaker 1: monetary policy, moves from easing to tightening or tightening to easing,

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Speaker 1: it takes rates much farther and for a longer period

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Speaker 1: of time than the most radical among us want to believe.

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Speaker 1: With head changed policy last year, it's going to take

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Speaker 1: at least until latee probably early before the FED begins

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Speaker 1: to pivot, and pivot means that they change from from

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Speaker 1: tightening to easing and actually let rates go lower. That's

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Speaker 1: gonna be a long period of time in the future.

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Speaker 1: So I'm gonna be barish on stocks were probably quite

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Speaker 1: some more protected period of time. I've been barised since

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Speaker 1: January last year. Had the university move a good tended

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Speaker 1: fifteen of its portfolio out of out of stocks into

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Speaker 1: two year notes, and that's we we got. Let's call it,

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Speaker 1: let's say we got very lucky. Are you looking for

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Speaker 1: further inversion in the yield curve? Then? With that view,

429
00:22:11,720 --> 00:22:14,280
Speaker 1: what what's your outlook for treasuries? I think two s

430
00:22:14,280 --> 00:22:17,000
Speaker 1: tens goes back to eighty basis points again, it'll test

431
00:22:17,000 --> 00:22:19,680
Speaker 1: that level. It seemed that there was, for lack of

432
00:22:19,720 --> 00:22:22,560
Speaker 1: a better term, resistance at about two basis points in

433
00:22:22,440 --> 00:22:24,159
Speaker 1: the in the inversion of twos to tens, and I

434
00:22:24,160 --> 00:22:25,880
Speaker 1: think we try to go back to that level before

435
00:22:25,880 --> 00:22:28,399
Speaker 1: it's before we're done, before the FED has done tightening

436
00:22:28,400 --> 00:22:32,040
Speaker 1: monetary policy. In our last minute here, Dennis Gold hasn't

437
00:22:32,040 --> 00:22:35,520
Speaker 1: really been the inflation hedge that it's been historically Uh,

438
00:22:35,600 --> 00:22:38,640
Speaker 1: do you see that changing in twenty three? Well, first

439
00:22:38,640 --> 00:22:40,520
Speaker 1: of all, gold has been moving from the lower left

440
00:22:40,520 --> 00:22:43,159
Speaker 1: of the upper right. It's broken out. It's done something unusual.

441
00:22:43,800 --> 00:22:46,320
Speaker 1: In November, it had an outside reversal month, a new

442
00:22:46,400 --> 00:22:49,000
Speaker 1: low and then taking out the previous lows for the year,

443
00:22:49,320 --> 00:22:51,520
Speaker 1: and then closing higher for the month, taking out the

444
00:22:51,520 --> 00:22:54,600
Speaker 1: previous months high at the same time. Outside reversal days

445
00:22:54,600 --> 00:22:58,120
Speaker 1: are important. Outside reversal weeks are more important outside reversal

446
00:22:58,160 --> 00:23:00,639
Speaker 1: months for technicians. And I'm not always of technician, but

447
00:23:00,680 --> 00:23:04,000
Speaker 1: I watch the technical circumstances are amongst the most important

448
00:23:04,000 --> 00:23:06,840
Speaker 1: technical circumstances that you see. So I think gold has

449
00:23:06,880 --> 00:23:09,439
Speaker 1: broken out to the upside, and I think, Uh, in

450
00:23:09,520 --> 00:23:11,520
Speaker 1: my own account, I'm long goal and short to stock

451
00:23:11,560 --> 00:23:14,960
Speaker 1: market today, I'm I'm breaking even. But over the course

452
00:23:14,960 --> 00:23:16,119
Speaker 1: of the past month and a half has been the

453
00:23:16,160 --> 00:23:18,480
Speaker 1: proper trade, and I'm gonna any any correction in that,

454
00:23:18,520 --> 00:23:20,960
Speaker 1: I'm gonna add to it buying more gold, selling more stocks.

455
00:23:21,520 --> 00:23:24,720
Speaker 1: That's always good to get your thoughts. Dennis Happier Returns

456
00:23:24,920 --> 00:23:28,480
Speaker 1: for three was Dennis Gartman, former publisher of the Gartment Letter,

457
00:23:28,520 --> 00:23:32,280
Speaker 1: now chair of the University of Akron. Endowment Investment Committee

458
00:23:32,560 --> 00:23:35,639
Speaker 1: and Bloomberg Daybreak is brought to you by Innovation Refunds

459
00:23:35,640 --> 00:23:38,679
Speaker 1: that small businesses affected by the COVID nineteen pandemic may

460
00:23:38,760 --> 00:23:42,639
Speaker 1: qualify for the Employee Retention Credit. Let Innovation Refunds do

461
00:23:42,720 --> 00:23:45,560
Speaker 1: the work to find out now if your organization qualifies

462
00:23:45,600 --> 00:23:48,160
Speaker 1: for e r C assistance. They've already helped businesses claim

463
00:23:48,200 --> 00:23:51,880
Speaker 1: more than two billion dollars in payroll tax refunds. Learn

464
00:23:51,920 --> 00:23:56,520
Speaker 1: more at get refunds dot com. Gotcha top stories, local headlines,

465
00:23:56,520 --> 00:23:59,800
Speaker 1: and check the markets up next. First, your weather forecast.

466
00:24:00,359 --> 00:24:02,919
Speaker 1: Cloudy skies across the Tri State area today. There'll be

467
00:24:02,920 --> 00:24:05,440
Speaker 1: some rain developing as the morning goes on. High temperatures

468
00:24:05,480 --> 00:24:08,440
Speaker 1: today a mild fifty five to sixty rain and early

469
00:24:08,520 --> 00:24:11,959
Speaker 1: during the evening lows. Overnight they'll be fifty to fifty five. Tomorrow,

470
00:24:12,000 --> 00:24:14,600
Speaker 1: look for scattered showers and periods of rain. Mild Temperatures

471
00:24:14,600 --> 00:24:17,360
Speaker 1: will be close to sixty tomorrow afternoon. A few showers

472
00:24:17,359 --> 00:24:19,600
Speaker 1: on Thursday, with a high of fifty to fifty five.

473
00:24:20,080 --> 00:24:23,159
Speaker 1: I'm Rob Carolyn with your three day forecast. I'm Bloomberg

474
00:24:23,200 --> 00:24:30,040
Speaker 1: eleven three oh broadcasting live from the Bloomberg interactive broker

475
00:24:30,200 --> 00:24:33,600
Speaker 1: studio in New York, Bloomberg E living free to Washington,

476
00:24:33,680 --> 00:24:37,480
Speaker 1: d C, Bloomberg one to Boston, Bloomberg one, O six

477
00:24:37,600 --> 00:24:40,800
Speaker 1: one to San Francisco, Bloomberg nine sixty to the country,

478
00:24:40,920 --> 00:24:44,080
Speaker 1: Sirius XM CHADO one nine and around the globe the

479
00:24:44,119 --> 00:24:48,000
Speaker 1: Bloomberg Business at and Bloomberg Radio dot Com. This is

480
00:24:48,000 --> 00:24:56,560
Speaker 1: Bloomberg Daybreak, coming up on five thirty on Wall Street.

481
00:24:56,560 --> 00:24:59,320
Speaker 1: Good morning, I'm Nathan Hager and I'm Kared Moscow, and

482
00:24:59,400 --> 00:25:01,720
Speaker 1: we are just about four hours away from the open

483
00:25:01,760 --> 00:25:03,359
Speaker 1: of US trading. Let's get you up to date on

484
00:25:03,400 --> 00:25:05,280
Speaker 1: the news you need to know at this hour. As

485
00:25:05,320 --> 00:25:08,960
Speaker 1: investors leave two and the rear view mirror, we begin

486
00:25:09,080 --> 00:25:12,200
Speaker 1: the trading year with gains for equities accompanied by uncertain

487
00:25:12,240 --> 00:25:16,240
Speaker 1: market sentiment. Bloomberg Steve Rappaport joins US Live with that story. Steve,

488
00:25:16,280 --> 00:25:19,119
Speaker 1: good morning, Good morning, Karen and Nathan. Futures point to

489
00:25:19,160 --> 00:25:21,879
Speaker 1: a good start for equities after they lost twenty percent

490
00:25:21,960 --> 00:25:25,040
Speaker 1: in value during the tumultuous year. Investors are waiting into

491
00:25:25,840 --> 00:25:29,480
Speaker 1: three with uncertainty, but with that comes potential opportunity. I

492
00:25:29,600 --> 00:25:33,639
Speaker 1: e Q Advisors co CEO Alan Zaffron, you should be

493
00:25:33,720 --> 00:25:38,560
Speaker 1: slowly methodically buying into the weakness because inevitably the economy

494
00:25:38,560 --> 00:25:41,040
Speaker 1: will bottom, the FED will pivot, people will look forward

495
00:25:41,040 --> 00:25:43,560
Speaker 1: to much better growth in two thousand twenty four, and

496
00:25:43,640 --> 00:25:46,480
Speaker 1: once that happens, Zaffron predicts, investors will be off to

497
00:25:46,520 --> 00:25:49,360
Speaker 1: the races again. Live in New York, I'm Steve Rappaport,

498
00:25:49,400 --> 00:25:53,160
Speaker 1: Bloomberg Daybreak. All right, Steve. Thanks. Turning overseas, COVID remains

499
00:25:53,200 --> 00:25:56,240
Speaker 1: front and center in China, President shi Jin Pink says

500
00:25:56,240 --> 00:25:58,080
Speaker 1: his country is moving into a new phase as it

501
00:25:58,160 --> 00:26:00,879
Speaker 1: continues its COVID pivot. In an new Your Address, she

502
00:26:01,000 --> 00:26:06,440
Speaker 1: warned of hard times ahead. With extraordinary efforts, China has

503
00:26:06,440 --> 00:26:10,760
Speaker 1: prevailed over unprecedented difficulties and challenges, and it has not

504
00:26:10,880 --> 00:26:13,880
Speaker 1: been an easy journey for anyone. We have now entered

505
00:26:13,880 --> 00:26:16,920
Speaker 1: a new phase of COVID response, where tough challenges remain.

506
00:26:17,280 --> 00:26:20,720
Speaker 1: Chinese President Shi Jinping did not acknowledge recent protests over

507
00:26:20,760 --> 00:26:23,080
Speaker 1: COVID directly, but he did say it's only natural for

508
00:26:23,119 --> 00:26:26,160
Speaker 1: people to have different concerns and views on issues. Well.

509
00:26:26,280 --> 00:26:30,000
Speaker 1: Nathan I m F Managing Director Crystalina Georgieva also sees

510
00:26:30,080 --> 00:26:32,840
Speaker 1: tough times ahead. She expects one third of the world

511
00:26:32,920 --> 00:26:35,840
Speaker 1: to fall into recession this year. This is going to

512
00:26:35,920 --> 00:26:40,119
Speaker 1: be a toughier, tougher than dear we leave behind. Why

513
00:26:40,119 --> 00:26:46,880
Speaker 1: because the three Vegics, US, EU, China are all flowing

514
00:26:46,960 --> 00:26:51,320
Speaker 1: though I m F Managing Director Cristalina Georgieva, speaking on CBS,

515
00:26:51,480 --> 00:26:54,040
Speaker 1: is Face the Nation Catch the program Sunday afternoons on

516
00:26:54,040 --> 00:26:56,920
Speaker 1: Bloomberg Radio. Turning to do a big day in DC, Karen,

517
00:26:56,960 --> 00:26:58,800
Speaker 1: we will see a new Congress seated and a new

518
00:26:58,840 --> 00:27:02,240
Speaker 1: Speaker of the House elected, though the latter is expected

519
00:27:02,240 --> 00:27:04,399
Speaker 1: to be a showdown. Kevin McCarthy is in line to

520
00:27:04,440 --> 00:27:06,400
Speaker 1: be Speaker, but he can't afford to lose more than

521
00:27:06,440 --> 00:27:11,000
Speaker 1: four GOP votes. Several Republicans still have not promised their support,

522
00:27:11,040 --> 00:27:13,320
Speaker 1: and if McCarthy is not elected, we could see a

523
00:27:13,440 --> 00:27:16,399
Speaker 1: multi ballot vote to determine the next House Speaker. That

524
00:27:16,480 --> 00:27:19,879
Speaker 1: hasn't happened since nineteen twenty three and Nathan. On a

525
00:27:19,880 --> 00:27:22,639
Speaker 1: corporate note, this morning, Tesla delivered a record number of

526
00:27:22,680 --> 00:27:25,680
Speaker 1: vehicles in the fourth quarter, but still missed estimates. Elon

527
00:27:25,760 --> 00:27:29,160
Speaker 1: Musk electric car company offered discounts to US consumers who

528
00:27:29,200 --> 00:27:32,119
Speaker 1: took deliveries in the final days of December to clear

529
00:27:32,160 --> 00:27:35,520
Speaker 1: inventory and is doing the same in China. TESTLAS shares

530
00:27:35,600 --> 00:27:38,840
Speaker 1: are down about three points six percent in early trading,

531
00:27:38,880 --> 00:27:42,200
Speaker 1: and futures are higher. SMP futures up about thirty five points,

532
00:27:42,280 --> 00:27:45,160
Speaker 1: up nine tenths of uppercent. Now futures have nine tenths

533
00:27:45,200 --> 00:27:47,119
Speaker 1: of upper cent or two hundred eighty three points, and

534
00:27:47,200 --> 00:27:50,440
Speaker 1: NASDACK futures have one percent or one hundred seven points.

535
00:27:50,520 --> 00:27:52,720
Speaker 1: A ten year treasury up one in three thirty seconds,

536
00:27:52,760 --> 00:27:55,360
Speaker 1: you have three point seven four percent straight. I had

537
00:27:55,400 --> 00:27:58,080
Speaker 1: your latest local headlines plus the check of Sports, and

538
00:27:58,359 --> 00:28:04,800
Speaker 1: this is Bloomberg. Thank Scaring. It's thirty one on Wall

539
00:28:04,840 --> 00:28:06,800
Speaker 1: Street and Michael Barros here with more on what's going

540
00:28:06,880 --> 00:28:08,960
Speaker 1: on in New York and around the world. Good morning, Michael,

541
00:28:09,040 --> 00:28:12,600
Speaker 1: Good morning. Nathan George Santos, the Republican Congressman elect from

542
00:28:12,680 --> 00:28:16,520
Speaker 1: New York, faces new legal trouble after he admitted lying

543
00:28:16,600 --> 00:28:19,960
Speaker 1: about much of his resume. Prosecutors in Brazil now say

544
00:28:20,040 --> 00:28:22,760
Speaker 1: that they are reopening a fraud case against Santos in

545
00:28:22,840 --> 00:28:25,440
Speaker 1: connection with the stolen check used in the country back

546
00:28:25,480 --> 00:28:28,320
Speaker 1: in two thousand and eight. The case was suspended until

547
00:28:28,400 --> 00:28:32,080
Speaker 1: now because police could not find Santos, a man facing

548
00:28:32,119 --> 00:28:35,680
Speaker 1: first degree murder charges in the slayings of four University

549
00:28:35,680 --> 00:28:39,200
Speaker 1: of Idaho students, is not expected to find extradition and

550
00:28:39,280 --> 00:28:42,600
Speaker 1: a hearing today. In Pennsylvania, Brian Cooberger was taken into

551
00:28:42,640 --> 00:28:45,760
Speaker 1: custody late last week by state police at his parents

552
00:28:45,920 --> 00:28:49,080
Speaker 1: home in the Poconotes. C. C. Moore is an expert

553
00:28:49,160 --> 00:28:53,360
Speaker 1: on DNA testing. In a very personal, intimate violet crime

554
00:28:53,440 --> 00:28:56,080
Speaker 1: like this one, it's virtually impossible not to leave your

555
00:28:56,120 --> 00:28:59,680
Speaker 1: DNA behind. We have such sensitive equipment now you could

556
00:28:59,760 --> 00:29:03,320
Speaker 1: leave behind touch DNA and that could be enough to

557
00:29:03,800 --> 00:29:08,360
Speaker 1: perform this type of analysis. D N A expert C. C. Moore,

558
00:29:08,800 --> 00:29:10,680
Speaker 1: The man accused of shooting up a New York City

559
00:29:10,720 --> 00:29:13,959
Speaker 1: subway in Brooklyn, is scheduled to lead guilty to federal

560
00:29:14,200 --> 00:29:17,520
Speaker 1: terrorism charges. Frank James, who was sixty three, will appear

561
00:29:17,520 --> 00:29:21,360
Speaker 1: in federal court this afternoon. Prosecutors say during the April

562
00:29:21,400 --> 00:29:24,280
Speaker 1: twelfth attack, James set off smoke bombs before he opened

563
00:29:24,320 --> 00:29:27,920
Speaker 1: fire on an en train as it approached the Sunset

564
00:29:28,040 --> 00:29:30,960
Speaker 1: Park station. At least twenty two people were injured after

565
00:29:31,040 --> 00:29:34,280
Speaker 1: a car crash into a building in Manhattan last night.

566
00:29:34,680 --> 00:29:38,160
Speaker 1: Authorities say the injuries are not life threatening. The Vatican

567
00:29:38,280 --> 00:29:40,920
Speaker 1: estimates sixty five thou people filed past the body of

568
00:29:41,000 --> 00:29:45,440
Speaker 1: Pope Benedict yesterday lying in state. Ukrainian Mourner was among

569
00:29:45,560 --> 00:29:55,760
Speaker 1: the faithful at the Vatican. The would like her Bendedic

570
00:29:55,880 --> 00:29:59,360
Speaker 1: died Saturday at age. Global News twenty four hours a

571
00:29:59,440 --> 00:30:01,520
Speaker 1: day on air and on Bloomberg Quick Take Power got

572
00:30:01,560 --> 00:30:04,040
Speaker 1: more than seven hundred journalists, antalists more than a hundred

573
00:30:04,080 --> 00:30:07,600
Speaker 1: twenty countries. Michael Bard, this is Bloomberg. Nathan. Okay, Michael,

574
00:30:07,640 --> 00:30:14,600
Speaker 1: thank you three on Wall Street time for the Bloomberg

575
00:30:14,640 --> 00:30:17,520
Speaker 1: Sports Update. Bronc by tri State out he here's John Stanshower,

576
00:30:17,640 --> 00:30:20,480
Speaker 1: Thanks Nathan. Buffalo Bill safety Damar Hamlon is in a

577
00:30:20,640 --> 00:30:24,120
Speaker 1: Cincinnati hospital. He's in critical condition. The Bills are back

578
00:30:24,160 --> 00:30:25,960
Speaker 1: in Buffalo. It's not known when their game, but the

579
00:30:26,000 --> 00:30:28,600
Speaker 1: Bengals will be played. It happened in the first quarter

580
00:30:28,680 --> 00:30:31,280
Speaker 1: at catched by the Bengals. Tee Higgins at tackled by Hamlin,

581
00:30:31,360 --> 00:30:34,120
Speaker 1: only twenty four years old. He fell backwards. He had

582
00:30:34,160 --> 00:30:38,240
Speaker 1: gone into cardiac arrest. CPR was given. After sixteen minutes,

583
00:30:38,280 --> 00:30:40,440
Speaker 1: Hamlin finally left the field and an ambulance. It was

584
00:30:40,480 --> 00:30:42,680
Speaker 1: clear neither team was going to be able to continue

585
00:30:42,760 --> 00:30:45,080
Speaker 1: playing the game. A big one of the a f

586
00:30:45,160 --> 00:30:48,640
Speaker 1: C standings was postponed. Cincinnati was leading seven to three.

587
00:30:48,760 --> 00:30:51,880
Speaker 1: Season finale Sunday for the Jets visiting Miami, battle of

588
00:30:51,880 --> 00:30:53,720
Speaker 1: teams who both lost five and row. The Dolphins were

589
00:30:53,760 --> 00:30:55,440
Speaker 1: still in it for a playoff birth that they need help.

590
00:30:55,800 --> 00:30:58,880
Speaker 1: Miami will again be without quarterback to Tongue below with

591
00:30:58,920 --> 00:31:01,200
Speaker 1: the Jets coach Roberts salas that he still has full

592
00:31:01,280 --> 00:31:04,840
Speaker 1: confidence and as much beligned offensive coordinator Mike le Fleur.

593
00:31:04,880 --> 00:31:07,680
Speaker 1: The playoff bound Giant Sundays at Philadelphia Eagles, needing the

594
00:31:07,680 --> 00:31:10,160
Speaker 1: win to secure the NFC's one seed, the Eagles hoping

595
00:31:10,200 --> 00:31:13,080
Speaker 1: to get there. QB Jalen Hurts back from injury nixt

596
00:31:13,120 --> 00:31:14,840
Speaker 1: at the Garden Bed Phoenix one o two to eighty

597
00:31:14,880 --> 00:31:18,520
Speaker 1: three for Julius Randall points sixteen rebounds. Jalen Brunson, back

598
00:31:18,560 --> 00:31:20,920
Speaker 1: from the hip injury, scored twenty four easy win for

599
00:31:20,960 --> 00:31:23,400
Speaker 1: the Red Hot Nets one thirty nine to one oh

600
00:31:23,480 --> 00:31:25,680
Speaker 1: three over San Antonio and now twelve wins in a

601
00:31:25,760 --> 00:31:29,040
Speaker 1: row for Brooklyn. Speaking of Red Hot, Cleveland's Donovan Mitchell

602
00:31:29,080 --> 00:31:32,200
Speaker 1: scored seventy one points and an overtime win for the

603
00:31:32,240 --> 00:31:35,959
Speaker 1: Calves over Chicago College Hoops. Rutgers stunt top rank Perdue,

604
00:31:36,440 --> 00:31:39,040
Speaker 1: winning by one on the road. The Scarlet Knights also

605
00:31:39,160 --> 00:31:41,760
Speaker 1: beat Perdue when they were ranked number one a year ago.

606
00:31:42,120 --> 00:31:45,440
Speaker 1: John Stash Bloomberg Sports Nathan Okay, John, Thanks, and the

607
00:31:45,440 --> 00:31:48,680
Speaker 1: Bloomberg Sports Report was brought to you by Audie. Don't

608
00:31:48,760 --> 00:31:51,640
Speaker 1: let someone else drive off in the outie model you've

609
00:31:51,640 --> 00:31:54,640
Speaker 1: always wanted. Visit your local Price State autie dealer to

610
00:31:54,680 --> 00:31:57,320
Speaker 1: get behind the wheel of yours today, or visit autie

611
00:31:57,360 --> 00:32:02,840
Speaker 1: Offers dot com for more information. Five on Wall Street

612
00:32:02,880 --> 00:32:05,440
Speaker 1: time now for the Trice State Business Report. With bloombergs

613
00:32:05,560 --> 00:32:08,600
Speaker 1: d Cory, strike by thousands of New York City nurses

614
00:32:08,720 --> 00:32:12,320
Speaker 1: is still possible, even as nurses at New York Presbyterian

615
00:32:12,440 --> 00:32:15,520
Speaker 1: reached a tentative agreement hours before their contract was set

616
00:32:15,600 --> 00:32:19,120
Speaker 1: to expire. Contract talks with seven other hospitals will resume

617
00:32:19,200 --> 00:32:21,640
Speaker 1: this week to avert a strike by twelve thousand other

618
00:32:21,760 --> 00:32:24,960
Speaker 1: nurses in the city. New York's gasoline tax holiday was

619
00:32:25,120 --> 00:32:27,840
Speaker 1: swept out with the old at the end of two

620
00:32:28,360 --> 00:32:30,680
Speaker 1: the new year. Also brings higher tolls on the New

621
00:32:30,760 --> 00:32:33,960
Speaker 1: Jersey Turnpike and the Garden State Parkway. They went up

622
00:32:34,000 --> 00:32:37,000
Speaker 1: three percent, bringing the price of arrived from one end

623
00:32:37,040 --> 00:32:39,160
Speaker 1: of the turnpike to the other to twenty bucks at

624
00:32:39,200 --> 00:32:42,480
Speaker 1: peak times or on weekends. Open enrollment for the state

625
00:32:42,560 --> 00:32:46,120
Speaker 1: health insurance marketplace known as Get Covered New Jersey runs

626
00:32:46,200 --> 00:32:50,680
Speaker 1: until January thirty one. N J Spotlight reports overall enrollment

627
00:32:50,840 --> 00:32:53,680
Speaker 1: is up by four percent compared to this time last year.

628
00:32:53,800 --> 00:32:56,719
Speaker 1: Two d eighty seven thousand residents signed up for coverage

629
00:32:56,760 --> 00:32:59,680
Speaker 1: back then, according to the New Jersey Department of Banking

630
00:32:59,760 --> 00:33:03,200
Speaker 1: and Insurance, that your Bloomberg Try State Business report. I'm

631
00:33:03,240 --> 00:33:07,240
Speaker 1: in Cory, thanks said, It's on Wall Street. The following

632
00:33:07,360 --> 00:33:11,280
Speaker 1: is an editorial from Bloomberg Opinion. This editorial was written

633
00:33:11,320 --> 00:33:14,600
Speaker 1: by the Bloomberg Editorial Board. In many states, if you

634
00:33:14,680 --> 00:33:19,960
Speaker 1: want to change jobs and work as a carpenter or bartender, manicurist, auctioneer, coach,

635
00:33:20,200 --> 00:33:23,880
Speaker 1: or tour guide, you need a professional license. Of course,

636
00:33:24,200 --> 00:33:27,320
Speaker 1: licensing makes sense for many jobs. If you would argue

637
00:33:27,360 --> 00:33:30,000
Speaker 1: that doctors or pilots, for instance, should go without them,

638
00:33:30,840 --> 00:33:35,400
Speaker 1: but requiring say, florists to earn similar qualifications as Louisiana

639
00:33:35,480 --> 00:33:39,640
Speaker 1: does is onerous and ridiculous, and it's strange that rules

640
00:33:39,720 --> 00:33:43,600
Speaker 1: affecting millions of ordinary workers roughly one in five nationwide,

641
00:33:44,120 --> 00:33:47,640
Speaker 1: varies so widely from the state to state. These nonsensical

642
00:33:47,800 --> 00:33:52,160
Speaker 1: state licensing requirements should be scrapped. A fractured labor market

643
00:33:52,280 --> 00:33:55,080
Speaker 1: isn't just bad for the economy in some abstract sense.

644
00:33:55,720 --> 00:33:58,880
Speaker 1: It keeps people who want to work unemployed and renders

645
00:33:58,920 --> 00:34:02,800
Speaker 1: what should be valuable skills and experience worthless. It's cruel

646
00:34:03,040 --> 00:34:06,640
Speaker 1: and pointless, and a scandal that's been tolerated far too long.

647
00:34:07,120 --> 00:34:10,239
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For

648
00:34:10,360 --> 00:34:13,320
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash

649
00:34:13,360 --> 00:34:16,440
Speaker 1: Opinion or O P I N go on the Bloomberg terminal.

650
00:34:16,680 --> 00:34:19,920
Speaker 1: This has been Bloomberg opinion, and you can hear Bloomberg

651
00:34:19,960 --> 00:34:23,239
Speaker 1: opinion editorials every weekday at this time. Terminal customers can

652
00:34:23,320 --> 00:34:26,000
Speaker 1: read more at O P I N go. And if

653
00:34:26,040 --> 00:34:29,200
Speaker 1: you haven't seen the new Avatar sequel, you might want

654
00:34:29,200 --> 00:34:31,520
Speaker 1: to hop on that bandwagon. Avatar The Way of Water

655
00:34:31,760 --> 00:34:35,759
Speaker 1: is poised to become two's top selling movie, after leading

656
00:34:35,880 --> 00:34:39,120
Speaker 1: US and Canadian box offices for a third weekend in

657
00:34:39,200 --> 00:34:42,359
Speaker 1: a row. Walt Disney Productions made one point three eight

658
00:34:42,520 --> 00:34:46,839
Speaker 1: billion dollars worldwide since its release on December sixteenth. It's

659
00:34:46,880 --> 00:34:50,080
Speaker 1: on track to surpass the one point for nine billion

660
00:34:50,560 --> 00:34:55,040
Speaker 1: that Paramounts top Gun Maverick raped in in the year

661
00:34:55,160 --> 00:35:03,200
Speaker 1: gone by. You're listening to Bloomberg day Break, Markets, headlines

662
00:35:03,280 --> 00:35:06,239
Speaker 1: and breaking news twenty four hours a day at Bloomberg

663
00:35:06,320 --> 00:35:09,640
Speaker 1: dot Com, the Bloomberg Business Outland at Bloomberg Quick Take.

664
00:35:09,880 --> 00:35:18,920
Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow

665
00:35:19,000 --> 00:35:21,560
Speaker 1: and US do index futures are on the rise this

666
00:35:21,920 --> 00:35:25,720
Speaker 1: Morningous signs of China's recovery and resilience in Europe stoke

667
00:35:25,800 --> 00:35:28,960
Speaker 1: optimism about the global economy. And we check the markets

668
00:35:29,000 --> 00:35:31,600
Speaker 1: all day long here on Bloomberg Guess and P futures

669
00:35:31,680 --> 00:35:34,600
Speaker 1: up thirty five points or nine tens of uppercent. Down

670
00:35:34,680 --> 00:35:36,920
Speaker 1: futures up a tens of upper cent or two hundred

671
00:35:37,000 --> 00:35:39,600
Speaker 1: seventy nine points, and as Deck futures have one percent

672
00:35:40,040 --> 00:35:42,560
Speaker 1: or a hundred thirteen points, they are off the highs

673
00:35:42,600 --> 00:35:44,640
Speaker 1: of the session. The decks in Germany's have wointed a

674
00:35:44,719 --> 00:35:47,359
Speaker 1: quarter percent. Can your treasury up win in three thirty

675
00:35:47,440 --> 00:35:49,799
Speaker 1: seconds your three point seven four percent, and they yield

676
00:35:49,840 --> 00:35:52,640
Speaker 1: on the two year four point three four percent. Nimex

677
00:35:52,680 --> 00:35:54,759
Speaker 1: s crude oil is down one point one percent on

678
00:35:54,840 --> 00:35:57,160
Speaker 1: eighty four cents at seventy nine forty two cents of

679
00:35:57,239 --> 00:35:59,440
Speaker 1: barrel co makes gold up nine tenths per cent or

680
00:35:59,480 --> 00:36:02,800
Speaker 1: sixteen dollar. There's ten cents at eighteen thirty announced. The

681
00:36:02,920 --> 00:36:05,560
Speaker 1: euro one point five three nine against the dollar. British

682
00:36:05,560 --> 00:36:08,279
Speaker 1: found one point one one three the end one thirty

683
00:36:08,360 --> 00:36:10,800
Speaker 1: point five nine, and bitcoin is down at tenth of

684
00:36:10,880 --> 00:36:14,080
Speaker 1: a percent. It's at about sixteen thousand, seven hundred dollars

685
00:36:14,160 --> 00:36:16,680
Speaker 1: and that's a Bloomberg business flash. Now here's Muchael Barr

686
00:36:16,800 --> 00:36:19,400
Speaker 1: with more on what's going on around the world. Michael Karin.

687
00:36:19,520 --> 00:36:22,680
Speaker 1: Republicans say control of the House today, but there's uncertainty

688
00:36:22,760 --> 00:36:26,319
Speaker 1: over who will be speaker. Representative Kevin McCarthy can only

689
00:36:26,320 --> 00:36:28,960
Speaker 1: afford to lose four GOP votes and more than a

690
00:36:29,080 --> 00:36:32,600
Speaker 1: dozen have not promised their support. In the NBA, the

691
00:36:32,680 --> 00:36:35,279
Speaker 1: next Nets and Warriors one Cavaliers beat the Bulls and

692
00:36:35,320 --> 00:36:40,840
Speaker 1: ot one four. Cleveland's Donovan Mitchell scored seventy one points

693
00:36:41,160 --> 00:36:44,720
Speaker 1: in the NHL. The Bruins one. Buffalo defensive back Tomorrow

694
00:36:44,719 --> 00:36:47,400
Speaker 1: Hamlin remains in critical condition. Earlier this morning after the

695
00:36:47,440 --> 00:36:50,960
Speaker 1: Bills say he suffered a cardiac arrest on the field

696
00:36:51,160 --> 00:36:54,280
Speaker 1: after a tackle. Monday Night's game has been postponed against

697
00:36:54,320 --> 00:36:57,200
Speaker 1: the Bengals. Global News twenty four hours a day on

698
00:36:57,440 --> 00:37:00,359
Speaker 1: air and on Bloomberg Quick Take, powered by more than

699
00:37:00,440 --> 00:37:03,560
Speaker 1: twenty seven hundred journalists analysts more than a hundred twenty countries.

700
00:37:03,920 --> 00:37:06,799
Speaker 1: Michael Barr, this is Bloomberg An Okay, Michael, Thanks, It's

701
00:37:07,320 --> 00:37:10,040
Speaker 1: two on Wall Street. This is Bloomberg day Break. I'm

702
00:37:10,120 --> 00:37:12,880
Speaker 1: Nathan Hagar along with Karen Moscow, take a look at

703
00:37:12,920 --> 00:37:15,520
Speaker 1: some of the other stories making news on this first

704
00:37:15,719 --> 00:37:19,359
Speaker 1: trading day of twenty twenty three. After a dismal year

705
00:37:19,520 --> 00:37:22,919
Speaker 1: for equity investors, Wall Street returns to a holiday short

706
00:37:22,960 --> 00:37:26,320
Speaker 1: and trading week and many of the same issues that

707
00:37:26,480 --> 00:37:29,440
Speaker 1: hobbled last year's returns. Let's get more on that from

708
00:37:29,480 --> 00:37:33,920
Speaker 1: Bloomberg's Charlie Pellett. Familiar themes include a hawkish federal reserve,

709
00:37:34,040 --> 00:37:38,720
Speaker 1: recession fears, and ongoing geopolitical concerns, and that is raising

710
00:37:38,840 --> 00:37:42,840
Speaker 1: questions about the outlook for corporate earnings. Eric Knudson is

711
00:37:43,040 --> 00:37:47,120
Speaker 1: multi asset class chief investment officer at New Burger Berman

712
00:37:47,280 --> 00:37:51,120
Speaker 1: bottom of consensus. Wall Street forecasts are still expecting earnings

713
00:37:51,160 --> 00:37:53,560
Speaker 1: in two thousand twenty three and about two hundred thirty

714
00:37:53,600 --> 00:37:56,520
Speaker 1: dollars to share up four ish per cent. Our view

715
00:37:56,680 --> 00:37:58,680
Speaker 1: is that earnings have to come down from that two

716
00:37:59,000 --> 00:38:01,920
Speaker 1: thirty dollar target. Among the companies reporting this week will

717
00:38:01,960 --> 00:38:06,919
Speaker 1: be Constellation Brands and Walgreen's Boots Alliance in New York.

718
00:38:07,040 --> 00:38:10,040
Speaker 1: Charlie Pellet Bloomberg day break, All right, Charley, thank you.

719
00:38:10,120 --> 00:38:13,560
Speaker 1: While Scion Asset Management's founder Michael Burry is adding to

720
00:38:13,640 --> 00:38:16,440
Speaker 1: the gloom about the coming year. Bury tweeted that the

721
00:38:16,600 --> 00:38:20,560
Speaker 1: US was in recession. Quote by any definition the investor

722
00:38:20,640 --> 00:38:22,920
Speaker 1: who became famous after being depicted in the movie The

723
00:38:22,960 --> 00:38:26,120
Speaker 1: Big Short. How did that any government stimulus would cause

724
00:38:26,200 --> 00:38:29,280
Speaker 1: a second spike in inflation? Well, let's look at another

725
00:38:29,480 --> 00:38:33,520
Speaker 1: government overseas. Karen, there's more trouble this morning for UK

726
00:38:33,800 --> 00:38:38,080
Speaker 1: Prime Minister Rieshi Sunac. British rail workers are walking off

727
00:38:38,160 --> 00:38:39,759
Speaker 1: the job for much of this week. They're going to

728
00:38:39,880 --> 00:38:44,440
Speaker 1: strike for five days starting tomorrow. Nurses and ambulance drivers

729
00:38:44,760 --> 00:38:47,520
Speaker 1: are also planning to strike later this month, the unions

730
00:38:47,520 --> 00:38:52,399
Speaker 1: are demanding bigger pay hikes to deal with that record inflation. Well, Nathan,

731
00:38:52,480 --> 00:38:56,160
Speaker 1: we're also watching China US relations this morning. China's new

732
00:38:56,200 --> 00:38:59,920
Speaker 1: foreign minister is offering praise for Americans after stepping down

733
00:39:00,080 --> 00:39:03,280
Speaker 1: his ambassador to the US. It's designed that ties between

734
00:39:03,280 --> 00:39:06,560
Speaker 1: the two nations appear to be improving, just by tensions

735
00:39:06,600 --> 00:39:09,960
Speaker 1: over Taiwan. The Foreign minister tweeted that he was deeply

736
00:39:10,040 --> 00:39:13,480
Speaker 1: impressed by so many hard working Americans. He pledged to

737
00:39:13,560 --> 00:39:16,319
Speaker 1: help build a stronger relationship with the U. S. All right,

738
00:39:16,400 --> 00:39:19,120
Speaker 1: let's turn back to this market this morning. We're getting

739
00:39:19,200 --> 00:39:23,279
Speaker 1: the trading year kicked off here with gains pretty much

740
00:39:23,280 --> 00:39:26,000
Speaker 1: across the board, but we do still have many of

741
00:39:26,080 --> 00:39:29,279
Speaker 1: those issues that Charlie Pellett mentioned in that report just

742
00:39:29,400 --> 00:39:32,239
Speaker 1: a few minutes ago. Let's bring in Joe Quinlan to

743
00:39:32,400 --> 00:39:34,640
Speaker 1: get this trading year started, head of c I O

744
00:39:34,760 --> 00:39:38,480
Speaker 1: Market Strategy at Meryl and Bank of America Private Bank. Joe,

745
00:39:38,560 --> 00:39:41,239
Speaker 1: good morning, it is green on the screen that just

746
00:39:41,400 --> 00:39:43,960
Speaker 1: about every investment you can think of is Is this

747
00:39:44,160 --> 00:39:50,080
Speaker 1: the Santa Claus rally come maybe a week or so late, perhaps, Nathan,

748
00:39:50,200 --> 00:39:52,240
Speaker 1: that we we missed out on it, but you know, January,

749
00:39:52,320 --> 00:39:55,080
Speaker 1: the inflows are pretty strong anyways, in the equities of

750
00:39:55,160 --> 00:39:58,320
Speaker 1: the institution, some of the repositioning, so we're also a

751
00:39:58,400 --> 00:40:01,080
Speaker 1: good start at least early arring here. But there, as

752
00:40:01,120 --> 00:40:03,799
Speaker 1: you just mentioned, a lot of choppiness volatility to work

753
00:40:03,880 --> 00:40:05,560
Speaker 1: through in the next couple of months, so you know,

754
00:40:05,680 --> 00:40:08,600
Speaker 1: buckle up. It's so really rough out there. Yeah, what's

755
00:40:08,640 --> 00:40:13,200
Speaker 1: gonna be the biggest catalyst for that roughness that we

756
00:40:13,280 --> 00:40:16,160
Speaker 1: could be in store for? Well, the early on will

757
00:40:16,200 --> 00:40:19,560
Speaker 1: be the employment report on Friday. How strong is the economy,

758
00:40:19,680 --> 00:40:23,040
Speaker 1: the labor market is earning, shlack building the tone from

759
00:40:23,080 --> 00:40:24,960
Speaker 1: the Fed, and then we really get in the earnings

760
00:40:25,040 --> 00:40:27,920
Speaker 1: and as we just heard, earnings estimates for this year

761
00:40:28,000 --> 00:40:29,840
Speaker 1: is still too high, but they're gonna come down. Everyone

762
00:40:29,960 --> 00:40:32,520
Speaker 1: knows that. So there's a lot of kind of these

763
00:40:32,560 --> 00:40:34,759
Speaker 1: bad news is priced in, so we can, I think,

764
00:40:34,800 --> 00:40:37,680
Speaker 1: go sideways, but we need a catalyst, whether it's really

765
00:40:37,800 --> 00:40:40,880
Speaker 1: a big break in the CPI, any kind of clarity

766
00:40:40,960 --> 00:40:44,080
Speaker 1: in Ukraine. And the good news China is reflating, reopening,

767
00:40:44,120 --> 00:40:46,680
Speaker 1: so that's a positive of global growth. Well, how much

768
00:40:46,719 --> 00:40:50,000
Speaker 1: further do you think earnings need to come down? Well,

769
00:40:50,080 --> 00:40:52,800
Speaker 1: our estimate from the top of the house two earnings

770
00:40:52,800 --> 00:40:55,320
Speaker 1: from shower, so you know they're two thirty. There's a

771
00:40:55,400 --> 00:40:58,320
Speaker 1: big gap of what we think versus what the consensus

772
00:40:58,400 --> 00:41:00,919
Speaker 1: still is holding onto. So I but I do think

773
00:41:01,040 --> 00:41:03,360
Speaker 1: when you talked to a lot of big institutional investors

774
00:41:03,400 --> 00:41:06,239
Speaker 1: southen Welflus, they know estimates are coming down and that's

775
00:41:06,239 --> 00:41:09,160
Speaker 1: why it's very sector stock picking type of market, which

776
00:41:09,239 --> 00:41:12,120
Speaker 1: makes debts to the volatility and the ankst in and

777
00:41:12,200 --> 00:41:18,560
Speaker 1: around investing in equities. You mentioned the positive situation around China.

778
00:41:18,880 --> 00:41:21,799
Speaker 1: Do you expect that to continue into the new year.

779
00:41:22,200 --> 00:41:25,960
Speaker 1: Is there a possibility that as we start to see

780
00:41:26,080 --> 00:41:31,120
Speaker 1: that reopening unfold, that the virus could be something of

781
00:41:31,160 --> 00:41:35,239
Speaker 1: a black swan for the Chinese reopening. It could be

782
00:41:35,360 --> 00:41:38,840
Speaker 1: Nathan because remember you know, the Chinese were locked down forcibly,

783
00:41:39,040 --> 00:41:41,120
Speaker 1: they didn't have a choice. Now I've got a lot

784
00:41:41,120 --> 00:41:42,480
Speaker 1: of friends over there. They don't want to come out

785
00:41:42,480 --> 00:41:44,840
Speaker 1: because they fear the virus. Exactly to your point. But

786
00:41:44,960 --> 00:41:46,880
Speaker 1: I do think over the say the first half of

787
00:41:46,920 --> 00:41:49,600
Speaker 1: the year, the Chinese consumer is going to be out,

788
00:41:49,640 --> 00:41:52,919
Speaker 1: and the Chinese consumer is very important. So we're repositioning

789
00:41:52,920 --> 00:41:56,600
Speaker 1: in luxury brands, travel and leisure, energy, So I think

790
00:41:56,680 --> 00:41:58,799
Speaker 1: that's kind of the effect to follow through you're gonna

791
00:41:58,840 --> 00:42:01,759
Speaker 1: see from that Chinese consumer, we're gradually stepping out and

792
00:42:01,800 --> 00:42:05,480
Speaker 1: getting back to normal. Since you mentioned sector plays, what

793
00:42:05,600 --> 00:42:08,920
Speaker 1: other sectors are you looking at to potentially outperform in

794
00:42:10,600 --> 00:42:12,880
Speaker 1: you know, Unfortunately, it's the world we live, and we

795
00:42:13,040 --> 00:42:16,600
Speaker 1: still like defense defense spending globally as a growth industry

796
00:42:16,640 --> 00:42:19,600
Speaker 1: at top two trillion dollars in one. It continues to

797
00:42:19,680 --> 00:42:22,959
Speaker 1: grow cybersecurity, and then we're still hanging onto the energy trade,

798
00:42:23,040 --> 00:42:25,719
Speaker 1: just getting the under investment, the underlying demand with the

799
00:42:25,800 --> 00:42:30,560
Speaker 1: green revolution, some minerals, medals, commodities, luxury brands, travel and leisure,

800
00:42:30,920 --> 00:42:34,040
Speaker 1: still playing defense with healthcare for sure. So there's places

801
00:42:34,080 --> 00:42:36,080
Speaker 1: to put some money to work here in the early

802
00:42:36,120 --> 00:42:39,480
Speaker 1: part of this year. And you also mentioned the jobs

803
00:42:39,520 --> 00:42:42,160
Speaker 1: report is going to be the first major piece of

804
00:42:42,320 --> 00:42:44,600
Speaker 1: economic data that we have to look at before the

805
00:42:44,680 --> 00:42:48,359
Speaker 1: feds next meeting the first day of February. What's your

806
00:42:48,400 --> 00:42:52,080
Speaker 1: expectation on what we're gonna see from the labor market

807
00:42:52,320 --> 00:42:57,840
Speaker 1: given the continued UH strength that we've seen in labor

808
00:42:58,320 --> 00:43:01,480
Speaker 1: over the last several months here, Well, I expect a

809
00:43:01,520 --> 00:43:04,520
Speaker 1: pretty good, robust report, all things considered. We keep talking

810
00:43:04,560 --> 00:43:08,520
Speaker 1: about recession, recession, recession, but every company I talked to, small, medium,

811
00:43:08,520 --> 00:43:10,759
Speaker 1: and large, they're looking for workers. And we saw a

812
00:43:10,800 --> 00:43:13,680
Speaker 1: lot of headline tech workers being laid off. But none

813
00:43:13,680 --> 00:43:15,840
Speaker 1: of those folks they're already back to work, they already

814
00:43:15,880 --> 00:43:18,520
Speaker 1: have offers and they're they're they're back doing what they're doing.

815
00:43:18,640 --> 00:43:21,520
Speaker 1: So I think the market, labor market, he is not

816
00:43:21,640 --> 00:43:24,120
Speaker 1: going to cooperate with j Powe. It's it's pretty tight

817
00:43:24,239 --> 00:43:27,799
Speaker 1: still because there is a premium on holding labor, finding labor,

818
00:43:27,880 --> 00:43:30,319
Speaker 1: and that's that we haven't that hasn't passed yet. Does

819
00:43:30,400 --> 00:43:33,239
Speaker 1: that make the job more difficult for the FED? Given

820
00:43:33,360 --> 00:43:36,000
Speaker 1: that when you have a strong labor market, there's that

821
00:43:36,120 --> 00:43:40,840
Speaker 1: possibility that the wage pressures continue to put more pressures

822
00:43:40,880 --> 00:43:44,600
Speaker 1: on prices exactly in terms of the wage, it's all

823
00:43:44,600 --> 00:43:46,920
Speaker 1: about the wages, you know, average alley earnings, What are

824
00:43:46,960 --> 00:43:49,640
Speaker 1: they running at year over year, month to month, how

825
00:43:49,719 --> 00:43:52,440
Speaker 1: much we're gonna see kind of any types of union strikes,

826
00:43:52,680 --> 00:43:55,440
Speaker 1: push back from the labor market. So that's gonna be key.

827
00:43:55,719 --> 00:43:58,319
Speaker 1: Labor costs are sticky, right. There's a lot of talk

828
00:43:58,400 --> 00:44:00,680
Speaker 1: of deflation, but I don't see plation coming out of

829
00:44:00,719 --> 00:44:03,320
Speaker 1: the labor market anytime soon. And that's that's the biggest,

830
00:44:03,400 --> 00:44:06,839
Speaker 1: the biggest challenge of walking the balance between slowing knee

831
00:44:06,880 --> 00:44:09,600
Speaker 1: conomy down and bringing down wages at the same time.

832
00:44:10,120 --> 00:44:12,560
Speaker 1: All right, Joe, thanks for this as always in a

833
00:44:12,800 --> 00:44:15,440
Speaker 1: happy New Year to you. That's Joe Quinlan, head of

834
00:44:15,520 --> 00:44:18,320
Speaker 1: c i O Market Strategy at Meryl and Bank of

835
00:44:18,360 --> 00:44:22,600
Speaker 1: America Private Bank, looking at the market this morning. Traders

836
00:44:22,640 --> 00:44:25,719
Speaker 1: are piling back in S and P futures right now,

837
00:44:25,800 --> 00:44:28,680
Speaker 1: they're up thirty seven points. Staff futures are up two

838
00:44:28,719 --> 00:44:30,920
Speaker 1: to ninety five and Nasdaq futures are hired by a

839
00:44:31,000 --> 00:44:34,399
Speaker 1: hundred twenty two points. Seeing big moves in the bond

840
00:44:34,520 --> 00:44:36,920
Speaker 1: space as well, with the tenure Treasury up one and

841
00:44:37,040 --> 00:44:40,359
Speaker 1: three thirty seconds, the yield three point seven four percent

842
00:44:40,440 --> 00:44:42,040
Speaker 1: in the yield on the two year right now close

843
00:44:42,080 --> 00:44:45,560
Speaker 1: to four point three five. Nim X screws moving lower

844
00:44:45,600 --> 00:44:48,000
Speaker 1: now it's down one percent at seven or at seventy

845
00:44:48,080 --> 00:44:50,960
Speaker 1: nine dollars forty nine cents barrel and comes gold is

846
00:44:51,040 --> 00:44:55,960
Speaker 1: up eight tenths percent of fifteen dollars eighteen for announce

847
00:44:56,000 --> 00:45:03,760
Speaker 1: of gold. This is Bloomberg markets, headlines and breaking news

848
00:45:03,880 --> 00:45:06,440
Speaker 1: twenty four hours a day at Bloomberg dot com. For

849
00:45:06,560 --> 00:45:10,640
Speaker 1: Bloomberg Business Outland at Bloomberg Quicktake. This is a Bloomberg

850
00:45:10,719 --> 00:45:19,640
Speaker 1: business lash and I'm Karen Moscow. And futures are on

851
00:45:19,800 --> 00:45:21,960
Speaker 1: the rise this morning. We check the markets all day

852
00:45:22,000 --> 00:45:24,520
Speaker 1: long year on Bloomberg. S and P futures have thirty

853
00:45:24,600 --> 00:45:27,279
Speaker 1: eight points or one percent down. Futures have nine tenths

854
00:45:27,320 --> 00:45:29,759
Speaker 1: of upper cent or two hundred ninety seven points, and

855
00:45:29,840 --> 00:45:31,920
Speaker 1: NAS deck futures have one point two percent or a

856
00:45:32,000 --> 00:45:34,759
Speaker 1: hundred twenty eight points. The decks in Germany's have one

857
00:45:34,840 --> 00:45:38,600
Speaker 1: point four percent. Tenure treasury up one in three thirty seconds,

858
00:45:38,680 --> 00:45:40,920
Speaker 1: you have three point seven four percent. They yield on

859
00:45:41,040 --> 00:45:44,400
Speaker 1: the two year four point three four percent. Nimex screwed

860
00:45:44,440 --> 00:45:46,759
Speaker 1: oil is down one point one percent on eighty six

861
00:45:46,800 --> 00:45:49,520
Speaker 1: cents at seventy nine dollars forty cents, and barrel called

862
00:45:49,560 --> 00:45:52,040
Speaker 1: MIxS gold up eight ten percent or fourteen dollars eighty

863
00:45:52,120 --> 00:45:54,839
Speaker 1: cents at eighteen forty one and ounce. The Euro one

864
00:45:54,880 --> 00:45:57,360
Speaker 1: point five three six against the dollar, British pound one

865
00:45:57,400 --> 00:45:59,560
Speaker 1: point one nine one one the end one thirty point

866
00:45:59,640 --> 00:46:02,360
Speaker 1: six and bitcoins down a tenth of a percent at

867
00:46:02,360 --> 00:46:05,400
Speaker 1: about sixteen thousand, seven hundred thirty dollars, and as a

868
00:46:05,440 --> 00:46:08,720
Speaker 1: Bloomberg Business Flash Nathan Okay Karen thanks. It's five fifty

869
00:46:08,800 --> 00:46:11,120
Speaker 1: six on Wall Street time for a daily Bloomberg lobbrary.

870
00:46:11,120 --> 00:46:13,440
Speaker 1: If exploring legal issues in the news today we look

871
00:46:13,480 --> 00:46:17,319
Speaker 1: at what the year ahead will bring for cryptocurrency regulation.

872
00:46:17,600 --> 00:46:21,360
Speaker 1: Bloomberg's David Weston spoke about that with Cornell Economics professor

873
00:46:21,600 --> 00:46:24,760
Speaker 1: s Ar Prasade, so it's worth thinking about the questions

874
00:46:24,800 --> 00:46:27,920
Speaker 1: about crypto as we headed into twenty two. David, one

875
00:46:28,200 --> 00:46:32,560
Speaker 1: was its crypto durable asset class, second crypto perhaps even

876
00:46:32,640 --> 00:46:36,560
Speaker 1: service a hedge against inflation, and third wood crypto technology

877
00:46:36,600 --> 00:46:40,399
Speaker 1: in the form of decentralized finance actually helped to democratize

878
00:46:40,440 --> 00:46:44,160
Speaker 1: finance by giving more people easy access products and services

879
00:46:44,200 --> 00:46:48,760
Speaker 1: and serves a challenge to traditional financial institutions. On the first,

880
00:46:48,840 --> 00:46:52,800
Speaker 1: the answer seems to be apparently not us. Crypto seems

881
00:46:52,800 --> 00:46:55,560
Speaker 1: to be a very volatile as a class. It seems

882
00:46:55,600 --> 00:46:59,000
Speaker 1: to be bucketed by the same macroeconomic factors as other

883
00:46:59,120 --> 00:47:02,680
Speaker 1: risky assets, but it's much riskier and certainly there is

884
00:47:02,760 --> 00:47:05,560
Speaker 1: no evidence as it now that Bitcoin or other decent

885
00:47:05,600 --> 00:47:09,480
Speaker 1: foralized cryptal currencies can serve as an effective hedge against inflation.

886
00:47:10,080 --> 00:47:12,359
Speaker 1: And then there is a question whether that technology can

887
00:47:12,440 --> 00:47:16,560
Speaker 1: really help to democratize finance by creating new financial products

888
00:47:16,600 --> 00:47:20,680
Speaker 1: and services, giving new players easy entry into the financial system,

889
00:47:20,680 --> 00:47:25,160
Speaker 1: allowing them to compete with traditional financial institutions. That promise

890
00:47:25,200 --> 00:47:27,880
Speaker 1: hasn't been realized so far. What we've seen so far

891
00:47:28,040 --> 00:47:30,720
Speaker 1: is a lot of financial engineering, a lot of people

892
00:47:30,800 --> 00:47:33,399
Speaker 1: who are not really able to take on those risks

893
00:47:33,480 --> 00:47:36,040
Speaker 1: taking on a lot of risks, and basically a lot

894
00:47:36,120 --> 00:47:39,680
Speaker 1: of retail investors getting hurt. And the one big takeaway

895
00:47:39,760 --> 00:47:43,840
Speaker 1: really is a decentralized finance. Especially Bitcoin and other decentralized

896
00:47:43,840 --> 00:47:47,319
Speaker 1: cryptocurrencies are not as decentralized as we had taught them

897
00:47:47,400 --> 00:47:51,880
Speaker 1: to be. So, for instance, there are centralized exchanges like ftx,

898
00:47:51,920 --> 00:47:55,520
Speaker 1: which is just collapsed or financed, the largest cryptical currency exchange,

899
00:47:55,840 --> 00:47:58,960
Speaker 1: where there are lots of vulnerabilities lurking. So if you

900
00:47:59,040 --> 00:48:02,440
Speaker 1: cannot trade or custody crypto assets in a durable way,

901
00:48:02,480 --> 00:48:04,800
Speaker 1: in a secure way, it doesn't seem to me that

902
00:48:04,920 --> 00:48:07,120
Speaker 1: this is going to be really dutable asset class for

903
00:48:07,160 --> 00:48:10,440
Speaker 1: the future. And that was That's why Pasade, economics professor

904
00:48:10,480 --> 00:48:14,160
Speaker 1: at Cornell University, speaking with Bloomberg's David weston catch Balance

905
00:48:14,200 --> 00:48:16,799
Speaker 1: of Power with David weston weekdays from noon to two

906
00:48:16,840 --> 00:48:19,880
Speaker 1: Wall Street Time here on Bloomberg Radio. And attorneys can

907
00:48:19,920 --> 00:48:23,160
Speaker 1: find exceptional legal research and business development tools at Bloomberg

908
00:48:23,239 --> 00:48:26,000
Speaker 1: Law dot com and on the Bloomberg terminal at b

909
00:48:26,160 --> 00:48:29,719
Speaker 1: Law Go. Karen Well Nathan some other legal stories were

910
00:48:29,760 --> 00:48:33,520
Speaker 1: watching this morning. South Korea is finding Tesla two point

911
00:48:33,600 --> 00:48:37,120
Speaker 1: two million dollars. The penalty comes from alleged violations of

912
00:48:37,239 --> 00:48:41,680
Speaker 1: advertising law. South Korea's Fair Trade Commission says Tesla falsely

913
00:48:41,800 --> 00:48:45,400
Speaker 1: promoted and exaggerated the driving range and charging speed of

914
00:48:45,440 --> 00:48:48,520
Speaker 1: its electric cars, as well as the estimated savings on

915
00:48:48,640 --> 00:48:51,480
Speaker 1: fuel costs and in India, kre in the new year

916
00:48:51,520 --> 00:48:54,239
Speaker 1: will see a bevy of legal hearings, including fights over

917
00:48:54,360 --> 00:48:58,839
Speaker 1: same sex marriage and antitrust issues focused on Google. Later

918
00:48:58,920 --> 00:49:01,720
Speaker 1: this week, India's top court here's pleased by gay couple

919
00:49:01,760 --> 00:49:05,360
Speaker 1: seeking legal recognition of same sex marriages under India's Statute

920
00:49:05,480 --> 00:49:09,000
Speaker 1: for Marriage, and Google's run in with India's antitrust laws

921
00:49:09,040 --> 00:49:12,080
Speaker 1: will play out before the National Company Law of Pellet Tribunal.

922
00:49:12,160 --> 00:49:15,040
Speaker 1: This week, Google is challenging a two D seventy four

923
00:49:15,080 --> 00:49:18,800
Speaker 1: million dollar penalty for allegedly abusing its dominant position on

924
00:49:18,880 --> 00:49:22,959
Speaker 1: its Android mobile software and app store. Right now, SMP

925
00:49:23,120 --> 00:49:25,560
Speaker 1: futures are up thirty six point staff futures are hired

926
00:49:25,600 --> 00:49:27,840
Speaker 1: by two eighty five, and NASTAC futures are on the

927
00:49:27,960 --> 00:49:30,720
Speaker 1: rise by a hundred twenty two points ten. Your treasury

928
00:49:30,800 --> 00:49:32,719
Speaker 1: is up one and four thirty seconds for yield of

929
00:49:32,760 --> 00:49:37,480
Speaker 1: three point seven. Nimex crude is sinking now, down one

930
00:49:37,920 --> 00:49:39,839
Speaker 1: per cent or a dollar thirty eight at seventy eight

931
00:49:39,920 --> 00:49:43,360
Speaker 1: dollars eighty eight cents a barrel. We'll check your business

932
00:49:43,400 --> 00:49:46,120
Speaker 1: headlines all the news you need to start your day.

933
00:49:46,239 --> 00:49:49,120
Speaker 1: Our two of Bloomberg Daybreak starts right now