WEBVTT - Bloomberg Daybreak: November 29, 2022 - Hour 1 (Radio) 0:00:02.080 --> 0:00:05.359 Live from the Bloomberg and Directive Burger Studios. Is Bloomberg 0:00:05.440 --> 0:00:08.800 day Break for a Tuesday, November twenty nine Coming up. 0:00:08.840 --> 0:00:13.120 The markets react as the turmoil in China eases, Fed 0:00:13.160 --> 0:00:15.960 officials stress more rate hikes around the way. The Biden 0:00:15.960 --> 0:00:20.000 administration asked Congress to force a rail deal despite union objections, 0:00:20.280 --> 0:00:24.040 and Elon Musk has a public spat with Twitter's top advertiser, 0:00:24.160 --> 0:00:28.000 Apple d NYPD buses on multi million dollar operation of 0:00:28.080 --> 0:00:31.760 counterfeit goods. Plus, the Senate bill protecting same sex marriage 0:00:31.880 --> 0:00:35.120 is set to pass today. On Michael bar More, I'm 0:00:35.159 --> 0:00:38.000 John Stashwar Sports. The Red Hot Devils beat the Rangers, 0:00:38.000 --> 0:00:40.360 Nets beat the Magic and its winner go home for 0:00:40.400 --> 0:00:45.040 the US today at the World Cup. That's all s 0:00:45.040 --> 0:00:48.440 train ahead on Bloomberg Daybreak on Bloomberg. He Live in 0:00:48.479 --> 0:00:51.960 Free on New York Bloomberg nine one, Washington d C, 0:00:52.440 --> 0:00:56.000 Bloomberg one oh six one, Boston, Bloomberg nine sixties and 0:00:56.080 --> 0:00:59.680 Francisco Sirius x M one nine Team and around the 0:00:59.720 --> 0:01:02.480 world Old on Bloomberg Radio dot Com and via The 0:01:02.520 --> 0:01:10.040 Bloomberg Business. Good Morning, I'm Nathan Hagar and I'm Karen Moscow. 0:01:10.200 --> 0:01:12.960 In the US futures are mostly higher this morning. We're 0:01:12.959 --> 0:01:14.600 coming up to five oh one on Wall Street, and 0:01:14.600 --> 0:01:17.240 we check the markets every fifteen minutes throughout the trading day. 0:01:17.319 --> 0:01:20.880 On Bloomberg, SNP futures up about E. Floyd's down futures 0:01:20.920 --> 0:01:24.200 are little changed. NASDACK futures at forty three. The decks 0:01:24.240 --> 0:01:27.319 in Germany is down at quarter percent, and the tenure 0:01:27.360 --> 0:01:30.040 treasury up to thirty seconds. Heel three point six seven 0:01:30.120 --> 0:01:34.920 percent yield on the two year four point four three percent. Nathan, Okay, Karen. 0:01:34.920 --> 0:01:36.480 We'll get back to the markets in a minute, but 0:01:36.560 --> 0:01:39.000 first you want to update you on the situation in China. 0:01:39.120 --> 0:01:42.360 Health officials have held their first briefing since protests over 0:01:42.440 --> 0:01:46.600 COVID restrictions began last week. Bloomberg's Rebecca Chung Wilkins has 0:01:46.640 --> 0:01:50.520 the latest from Hong Kong. We saw quite muted, if 0:01:50.600 --> 0:01:55.120 any activity overnight. UM we feel very heavy police present 0:01:55.240 --> 0:01:58.800 in a lot of major Chinese cities like Beijing and Shanghai. 0:01:59.360 --> 0:02:02.040 UM and and part that did need needed to quite 0:02:02.040 --> 0:02:05.800 a reduced effort. UM the briefing. Quite frankly, save Ore 0:02:05.840 --> 0:02:10.160 has steered away from really covertly talking about the protest 0:02:10.240 --> 0:02:12.440 but there did seem to be a somewhat sort of 0:02:12.480 --> 0:02:16.640 softening in tone from authorities, acknowledging that some of the 0:02:16.680 --> 0:02:21.680 implementation of COVID controls has been relatively strict. Bloomberg's Rebecca 0:02:21.720 --> 0:02:24.800 Cheung Wilkins reports China plans to speed up vaccinations for 0:02:24.840 --> 0:02:28.600 the elderly, but it's stopping short of enacting mandates. Well Nathan. 0:02:28.639 --> 0:02:32.320 Stocks in Asia surged as unrest over COVID curbs ease. 0:02:32.560 --> 0:02:35.520 Hong Kong's Hang Sang Index rally more than five percent, 0:02:35.760 --> 0:02:38.480 Well stocks in China gain three percent. Let's get the 0:02:38.480 --> 0:02:41.760 recaul from Bloomberg's Juliet Sally and Singapore Good Morning, Juliette, 0:02:41.760 --> 0:02:44.200 Good Morning Nathan, and Karen Shares rallied in Hong Kong 0:02:44.240 --> 0:02:46.760 and on the mainland as some investors speculated that the 0:02:46.760 --> 0:02:50.080 protests may hasten has shift away from COVID zero policies. 0:02:50.320 --> 0:02:52.720 Traders also took hard from the lifting of China's multi 0:02:52.800 --> 0:02:56.240 year ban on share sales by builders. China's Tendia government 0:02:56.280 --> 0:02:58.560 bondi ULD advanced to its highest level in a year, 0:02:58.600 --> 0:03:01.760 as support measures announced for the property sector danted hopes 0:03:01.760 --> 0:03:05.000 of further monetary policy easing, and the Japanese end rose, 0:03:05.080 --> 0:03:08.519 as did an index of emerging market currencies in Singapore. 0:03:08.560 --> 0:03:12.160 Juliette Sally Bloomberg Daybreak. Okay, Juliet thanks, Now, let's take 0:03:12.200 --> 0:03:15.119 a look at US China relations now or the response 0:03:15.160 --> 0:03:18.640 to a Jings crackdown on protests so far has been muted, 0:03:18.720 --> 0:03:22.040 Bloomberg said. Baxter has the story. The US has spoken 0:03:22.120 --> 0:03:24.959 very strongly in the past about human rights, and now 0:03:25.080 --> 0:03:29.200 National Security Council spokesman John Kirby says, a watchful eye here. 0:03:29.400 --> 0:03:32.000 We're watching this closely as you might expect we would, 0:03:32.200 --> 0:03:35.280 and again we continue to stand up and support the 0:03:35.360 --> 0:03:37.760 right of peaceful protests. Um and I think we're going 0:03:37.840 --> 0:03:39.840 to watch this closely and we'll see where things go. 0:03:40.240 --> 0:03:43.400 Kirby says the Biden administration does not expect the protest 0:03:43.480 --> 0:03:47.440 to affect the supply chain or global economy. In San Francisco, 0:03:47.480 --> 0:03:50.440 I'm at Baxter Bloomberg Daybreak, All right, and thank you. Meantime, 0:03:50.480 --> 0:03:53.200 President in Biden and how Speaker Nancy Pelosi are moving 0:03:53.200 --> 0:03:56.119 to prevent a shutdown of the U S freight railroad systems. 0:03:56.160 --> 0:04:00.240 Amy Morris has details from our Bloomberg newsroom in Washing ten, 0:04:00.640 --> 0:04:03.640 President Biden asked Congress to intervene to block a strike. 0:04:03.960 --> 0:04:06.240 VOWS is preparing to take up a bill to impose 0:04:06.240 --> 0:04:10.040 a labor settlement despite some union's objections. Belosi says they're 0:04:10.040 --> 0:04:13.120 making the move reluctantly, but they have to avoid what 0:04:13.240 --> 0:04:16.800 she calls a catastrophic nationwide strike, which could hurt the 0:04:16.839 --> 0:04:20.200 economy by crippling supply chains. A coalition of more than 0:04:20.240 --> 0:04:23.320 four hundred business groups sent a letter to congressional leaders 0:04:23.440 --> 0:04:26.440 urging them to step in. The strike deadline is December 0:04:26.560 --> 0:04:30.359 nine in Washington. I'm anymore as Bloomberg daybreak. All right, Amy, Thanks. 0:04:30.360 --> 0:04:32.760 Another major impact on the economy in recent months has 0:04:32.800 --> 0:04:35.719 been higher interest rates, and now FED officials are stressing 0:04:35.720 --> 0:04:38.440 the Central Bank is not done hiking. Here's New York 0:04:38.440 --> 0:04:41.880 Fed President John Williams further typing ente policy should help 0:04:41.880 --> 0:04:45.320 restore balance between demand and supply and bring inflation back 0:04:45.360 --> 0:04:47.440 to two percent over the next few years. It will 0:04:47.480 --> 0:04:50.120 take some time, but I'm fully confident that will return 0:04:50.120 --> 0:04:52.760 to a sustaining period of prison bill. New York Fed 0:04:52.760 --> 0:04:55.320 President John Williams made those comments at a virtual event 0:04:55.320 --> 0:04:57.440 hosted by the Economic Club of New York. At the 0:04:57.480 --> 0:05:00.120 same time, St. Louis FED President Jim Bullard said, as 0:05:00.120 --> 0:05:03.679 financial markets are underestimating the chance of more aggressive policy 0:05:03.800 --> 0:05:07.479 next year, they're counting the first two fifty basis points 0:05:07.480 --> 0:05:10.120 as if that was a tightening of monetary policy. But 0:05:10.240 --> 0:05:13.000 really that's just getting up to the long run neutral 0:05:13.120 --> 0:05:16.320 level of the policy rate. We've only recently moved into 0:05:16.360 --> 0:05:19.159 restrictive territory, and we're going to have to move farther 0:05:19.320 --> 0:05:22.039 in order to keep inflation under control. St. Louis Fed 0:05:22.040 --> 0:05:24.880 President James Bullard and other officials if signaled they planned 0:05:24.880 --> 0:05:27.920 to raise rates by fifty basis points next month. Well. 0:05:28.000 --> 0:05:30.520 Nathan Moore Science this morning the aggressive Fed titan and 0:05:30.560 --> 0:05:33.400 could lead to a recession. A gauge of global bonds 0:05:33.440 --> 0:05:37.080 measuring the worldwide yield curve has inverted for the first 0:05:37.120 --> 0:05:39.280 time in at least two decades. The inversion of the 0:05:39.320 --> 0:05:41.599 yield curve has typically seen as a prediction for a 0:05:41.640 --> 0:05:45.159 recession as investors switch money to longer term bonds due 0:05:45.160 --> 0:05:48.880 to pessimism over the short term outlook. It's turn to 0:05:48.880 --> 0:05:51.839 crypto now, Karen, the fallout from f t X continues. 0:05:52.040 --> 0:05:55.040 Block five is the latest crypto firm to collapse. The 0:05:55.040 --> 0:05:57.640 digital asset Lander says it will use Chapter eleven to 0:05:57.640 --> 0:06:00.760 recover everything it's owned by. Counterparties include Thing f t X, 0:06:01.000 --> 0:06:03.919 but black Fire acknowledged that recoveries are likely to be 0:06:04.000 --> 0:06:07.800 delayed by ft x is bankruptcy and Nathan Elon Musk 0:06:07.920 --> 0:06:10.320 is in the spotlight again this morning. The billionaire is 0:06:10.320 --> 0:06:13.880 publicly attacking Apple, which is one of Twitter's top advertisers, 0:06:14.120 --> 0:06:17.160 much as Apple has cut its Twitter advertising and threatened 0:06:17.160 --> 0:06:20.200 to bluff the social network from its app store. Kurt 0:06:20.240 --> 0:06:23.080 Wagner has more from our Bloomberg nine sixty newsroom in 0:06:23.160 --> 0:06:26.760 San Francisco. The app store is is probably um the 0:06:26.800 --> 0:06:29.040 main way or one of the main ways that most 0:06:29.080 --> 0:06:32.240 of its users get the app get app updates. So 0:06:32.360 --> 0:06:34.120 you know, for example, I believe the app world still 0:06:34.160 --> 0:06:35.839 work on my phone, but in order to you know, 0:06:35.880 --> 0:06:38.720 get an updated version, I have an iPhone, I might 0:06:38.800 --> 0:06:40.479 have to you know, figure out a way to download 0:06:40.520 --> 0:06:41.880 that from the web. It's the kind of thing that's 0:06:41.880 --> 0:06:43.880 going to erode over time and causes a lot of 0:06:43.880 --> 0:06:46.800 people to either stop using Twitter or or you know, 0:06:47.240 --> 0:06:49.479 possibly have to move to a different device. And so 0:06:49.920 --> 0:06:51.680 that's a huge issue. And one of the reasons I 0:06:51.720 --> 0:06:54.680 tweeted that I think Twitter needs Apple a lot more 0:06:54.680 --> 0:06:57.440 than Apple needs Twitter here, and that's because Apple has 0:06:57.440 --> 0:07:01.320 the distribution that it's at its fingertips. Bloombery Technology reporter 0:07:01.400 --> 0:07:04.520 Kurt Wagner says Elon Musk is firing back at Apple, 0:07:04.720 --> 0:07:08.440 asking whether it hates free speech. And futures this morning 0:07:08.520 --> 0:07:11.680 higher SNP futures up about seven points down. Futures they're 0:07:11.720 --> 0:07:15.120 little change. Nasdaq futures at thirty eight. Straight ahead, your 0:07:15.160 --> 0:07:18.400 latest local headlines plus a check of sports. And this 0:07:18.840 --> 0:07:25.400 is Bloomberg. Thanks hearing. It's five oh seven on Wall Street, 0:07:25.400 --> 0:07:29.240 thirty seven degrees in Central Park westbound cross Bronx Expressway 0:07:29.400 --> 0:07:32.960 is closed at Jerome Avenue. Will tell you whine traffic shortly. First, 0:07:32.960 --> 0:07:34.720 Michael Bars here with what else is going on in 0:07:34.760 --> 0:07:36.840 New York and around the world. Good morning, Michael, Good 0:07:36.840 --> 0:07:39.960 morning Nathan. The NYPD made a big bust stopping a 0:07:40.080 --> 0:07:43.960 counterfeit goods operation. Police seized over ten million dollars in 0:07:44.040 --> 0:07:48.160 knockoff merchandise from vendors on Canal Street. During a news conference, 0:07:48.200 --> 0:07:51.760 officials set authorities had gotten several complaints in Lower Manhattan 0:07:52.160 --> 0:07:55.280 about the fake purses, sneakers and other items being sold 0:07:55.280 --> 0:07:58.360 on the streets in my PD. Chief of Patrol Jeffrey 0:07:58.360 --> 0:08:01.840 Madre spoke to ABC's have A Sidewalks were blocked, there 0:08:01.880 --> 0:08:07.680 was property everywhere. Merchandise everywhere initially impacts local businesses in 0:08:07.720 --> 0:08:11.200 a negative manner. Chief Madre says seventeen people were arrested 0:08:11.240 --> 0:08:15.320 and three truckloads of counterfeit items received. Five new Haven, 0:08:15.320 --> 0:08:18.840 Connecticut police officers were charged yesterday in a June incident 0:08:19.200 --> 0:08:22.720 that left a thirty six year old man paralyzed. Prosecutors 0:08:22.720 --> 0:08:25.480 say Randy Cox was handcuffed and not wearing a seat 0:08:25.480 --> 0:08:27.960 belt when he flew head first into the back of 0:08:28.000 --> 0:08:32.080 a police transport van when the drivers suddenly stopped. New 0:08:32.080 --> 0:08:37.040 Haven Mayor Justin Elker new Haven is committed to accountability 0:08:37.080 --> 0:08:40.680 for all individuals involved in this tragic incident. Baron Elkers 0:08:40.720 --> 0:08:44.960 says the officers were charged with reckless endangerment and cruelty. Meanwhile, 0:08:45.040 --> 0:08:47.640 cons his family is filed a one hundred million dollars 0:08:47.720 --> 0:08:51.720 civil suit against the officers and the city. A Senate 0:08:51.760 --> 0:08:55.600 bill protecting same sex marriage cleared another procedural hurdle last night. 0:08:56.000 --> 0:09:00.160 An amendment to respect for Marriage Act would ensure it 0:09:00.240 --> 0:09:04.319 does not infringe on religious rights and protections. Passage of 0:09:04.360 --> 0:09:08.120 the legislation is expected today. Former Vice President Mike Penn 0:09:08.120 --> 0:09:11.480 said Donald Trump showed poor judgment for dining last week 0:09:11.480 --> 0:09:14.880 at his Smarlango resort with rapper Ya and well known 0:09:14.880 --> 0:09:18.680 white nationalist Nick Fluentis. Penn says his former boss should 0:09:18.679 --> 0:09:23.200 denounce their hateful rhetoric without qualification. President Trump was wrong, 0:09:23.559 --> 0:09:28.920 uh to give a white nationalist, um um, an anti 0:09:28.960 --> 0:09:31.960 semid and Holocaust denier a seat at the table, and 0:09:32.280 --> 0:09:35.480 I think you should apologize. Penn spoke to News Nation. 0:09:35.880 --> 0:09:39.120 New Jersey Democratic Governor Phil Murphy says his administration has 0:09:39.160 --> 0:09:42.280 launched a review of its handling of the COVID nineteen pandemic. 0:09:42.679 --> 0:09:45.520 The governor, in a statement says the administration hired the 0:09:45.559 --> 0:09:49.000 regional law firm and a management consulting firm. A report 0:09:49.080 --> 0:09:52.839 is expected in late three. Global News twenty four hours 0:09:52.840 --> 0:09:55.880 a day on air and on Bloomberg Quicktake, powered by 0:09:55.880 --> 0:09:58.520 more than twenty seven journalists analysts more than a hundred 0:09:58.559 --> 0:10:06.480 twenty countries. Michael Bart, this is Bloomberg NA. Sorry Michael. Thanks, 0:10:06.480 --> 0:10:08.120 Come up to five ten on All Street time for 0:10:08.120 --> 0:10:10.360 the Bloomberg Sports Update, brought to you by Price stayed Out. 0:10:10.440 --> 0:10:13.160 Good morning, John stash Our morning, Nathan First beating the 0:10:13.200 --> 0:10:15.800 season between the Devils and Rangers, who were in the 0:10:15.880 --> 0:10:18.559 NHL's Final four last season. Devil's haven't even been to 0:10:18.600 --> 0:10:20.320 the playoffs since Steith has an eight team, but no 0:10:20.440 --> 0:10:23.200 doubt who the better team has been so far this season. 0:10:23.240 --> 0:10:26.400 The Devils started Owen too. They are nineteen and two. 0:10:26.480 --> 0:10:28.640 Since then, they won five three at the Garden, coming 0:10:28.640 --> 0:10:31.439 back in early to nothing, Deaf said at Barkley's forty 0:10:31.520 --> 0:10:34.160 five points for Kevin Durandy missed only five shots the 0:10:34.200 --> 0:10:36.480 net speed Orlando one nine one o two to get 0:10:36.480 --> 0:10:39.360 the five hundred. Kyrie irving at a twenty. Ben Simmons, 0:10:39.400 --> 0:10:41.800 who's finally been starting to play like he did with Philadelphia, 0:10:41.880 --> 0:10:44.880 heard his knee. He's day today. Kemba Walker, the New 0:10:44.960 --> 0:10:47.600 York native who's homecoming with the Knicks last season did 0:10:47.600 --> 0:10:50.920 not go well, has signed with Dallas. The MAVs hope 0:10:50.920 --> 0:10:53.360 he can fill the role Jalen Brunson had with them 0:10:53.440 --> 0:10:56.439 last season. Brunson out course with the Knicks. The Yankee 0:10:56.440 --> 0:10:59.200 offseason goals try and get better than Houston with the 0:10:59.280 --> 0:11:02.520 Astros already World Series champs, and they just signed three 0:11:02.559 --> 0:11:05.240 agents lover JOSEA. Brey, who spent nine years with the 0:11:05.240 --> 0:11:06.800 White Sox, head of the a L m v P. 0:11:07.960 --> 0:11:11.640 When the Night Football Pittsburgh beat Indianapolis to seventeen. The 0:11:11.760 --> 0:11:14.679 US World Cup team playing well in the draw with England, 0:11:14.720 --> 0:11:17.080 but in reality their situation would likely be the same 0:11:17.120 --> 0:11:19.439 as it is now had they lost that game, beat 0:11:19.520 --> 0:11:23.720 Iran today, advanced Louse or have a third straight tie 0:11:23.840 --> 0:11:26.559 and they are leaving Kitar. The U S coach was 0:11:26.600 --> 0:11:28.800 Greg Berhalter. Make no mistake about it. This is a 0:11:28.880 --> 0:11:31.719 knockout game for both teams, so it's gonna be a 0:11:31.800 --> 0:11:34.760 high level intensity. Um. You know, I love what our 0:11:34.800 --> 0:11:37.880 rands done um so far, especially the last game, a 0:11:37.880 --> 0:11:42.680 lot of commitment, UM, really good counterattacking and um, you know, 0:11:42.720 --> 0:11:45.720 we expect it to be a hotly contested game and 0:11:45.800 --> 0:11:48.240 we'll be ready for it. Starts STU o'clock. John actually 0:11:48.280 --> 0:11:51.160 were blue Berg Sports David all Right, John, Thanks, SMP 0:11:51.320 --> 0:11:54.280 futures now up nine points, Stown futures up twenty four. 0:11:54.400 --> 0:11:57.480 Dance futures are highed by forty four points. Send your 0:11:57.520 --> 0:12:00.720 treasury is up to thirty seconds, the yield three point 0:12:00.800 --> 0:12:08.360 six seven percent. You're listening to Bloomberg Daybreak, Bloomberg Sports 0:12:08.480 --> 0:12:10.319 was brought to you by Audie Don't let someone else 0:12:10.400 --> 0:12:13.000 drive off and the Autie Model You've always wanted. Visit 0:12:13.080 --> 0:12:15.280 your local price State Audie Dealer to get behind the 0:12:15.320 --> 0:12:18.319 wheel of yours today, or visit Autie Offers dot com 0:12:18.440 --> 0:12:24.839 for more information, markets, headlines and breaking news twenty four 0:12:24.880 --> 0:12:27.920 hours a day. At Bloomberg dot Com the Bloomberg Business 0:12:27.960 --> 0:12:32.000 Out and at Bloomberg Quicktake, He's a Bloomberg Business lash 0:12:38.080 --> 0:12:40.679 and I'm Karen Moscow and US dot Index futures are 0:12:40.720 --> 0:12:44.000 pointing to a moderately stronger open as speculation mounts that 0:12:44.120 --> 0:12:48.160 unrest in shiny cities over COVID restrictions would force authorities 0:12:48.200 --> 0:12:50.719 to move faster in loosening the curves. We check the 0:12:50.760 --> 0:12:53.760 markets every fifteen minutes throughout the trading day. On bloombergs 0:12:53.760 --> 0:12:56.439 and Future is up about eleven points, Dow Future is 0:12:56.520 --> 0:12:59.439 up thirty four, NASTAG futures up fifty. The decks in 0:12:59.520 --> 0:13:02.199 Germany is little change. Ten year treasury of too thirty 0:13:02.280 --> 0:13:05.040 seconds here three point six seven percent field on the 0:13:05.120 --> 0:13:08.040 two year four point four three percent. Nine x scrude 0:13:08.040 --> 0:13:09.880 oil is a two point three percent of a dollar 0:13:09.960 --> 0:13:12.360 seventy nine at seventy nine dollars three cents of arrow. 0:13:12.640 --> 0:13:15.240 Comic schooled up eight tenths percent or thirteen dollars fifty 0:13:15.280 --> 0:13:18.600 cents at seventeen sixty eighty announced the euro one point 0:13:18.800 --> 0:13:21.439 three two against the dollar. British found one point two 0:13:21.520 --> 0:13:23.800 zero one three and the end is at one thirty 0:13:23.880 --> 0:13:26.439 eight point one zero. Bitcoin is up one point nine 0:13:26.440 --> 0:13:30.480 percent at sixteen five hundred dollars. That's a Bloomberg business flash. 0:13:30.520 --> 0:13:32.640 Now here's Michael Barr with more on what's going on 0:13:32.760 --> 0:13:35.600 around the world. Michael, good morning, Good morning Karen. Chinese 0:13:35.720 --> 0:13:39.120 universities are sending students home as the ruling Communist party 0:13:39.240 --> 0:13:43.680 titans anti virus controls and tries to prevent more protests. 0:13:44.200 --> 0:13:47.760 Crowds entered by its severe zero COVID restrictions have called 0:13:47.800 --> 0:13:50.880 for President Shi Jing Ping to resign. President Biden is 0:13:50.880 --> 0:13:54.640 asking Congress to intervene and block a railroad strike before 0:13:54.720 --> 0:13:57.920 next month's deadline. At the World Cup later today, the 0:13:58.040 --> 0:14:01.079 US faces Around in a match with straw political overtones. 0:14:01.400 --> 0:14:04.760 Around is angry after the US Soccer Federation displayed on 0:14:04.960 --> 0:14:08.320 social media uh doctor and image of the Iranian flag 0:14:08.440 --> 0:14:11.640 without the emblem of the Islamic Republic. The US must 0:14:11.640 --> 0:14:14.360 beat around to advance. In the NFL, the Steelers beat 0:14:14.400 --> 0:14:17.800 the Colts seventeen, in the NBA, the Nets, Wizards and 0:14:17.880 --> 0:14:20.440 Celtics one, and the NHL the Devils beat the Rangers. 0:14:20.480 --> 0:14:23.280 Five three. Global News twenty four hours a day on 0:14:23.520 --> 0:14:26.520 air and on Bloomberg Quick Take, powered by more than 0:14:26.600 --> 0:14:30.080 twenty journalists analysts more than a hundred twenty countries. Michael 0:14:30.160 --> 0:14:32.920 Barr and this is Bloomberg. Nathan. Okay, Michael. Thanks, It's 0:14:32.960 --> 0:14:35.520 five nineteen on Wall Street Live from the Bloomberg Interactive 0:14:35.520 --> 0:14:38.080 Brokers Studios. This is Bloomberg Daybreak, and we want to 0:14:38.120 --> 0:14:40.240 get the latest on the situation in China with these 0:14:40.480 --> 0:14:45.360 days of protests continuing over strict COVID measures. Joining us 0:14:45.400 --> 0:14:48.720 live from Hong Kong. Now is Bloomberg Chief Asia Economics 0:14:48.800 --> 0:14:52.560 correspondent and the current and a good morning. As Michael 0:14:52.600 --> 0:14:55.720 mentioned in the news there, we have seen some pretty 0:14:55.880 --> 0:14:59.240 strong crackdowns on these protests. At the same time, we're 0:14:59.280 --> 0:15:03.240 hearing something of a more conciliatory tone from Chinese health officials, 0:15:03.280 --> 0:15:05.080 what more can you tell us about what's happening there? 0:15:06.080 --> 0:15:08.960 So two developments across China today. And the one side 0:15:09.000 --> 0:15:11.720 of things, the protests have been subdued because there was, 0:15:11.840 --> 0:15:15.160 of course a very strict police response to those protests. 0:15:15.600 --> 0:15:19.600 That wants to be expected. These protests were unprecedented. They 0:15:19.680 --> 0:15:22.760 were splicitly criticizing the Communist Party and in some cases 0:15:22.840 --> 0:15:26.120 calling for President Shooting to step down. So obviously there 0:15:26.120 --> 0:15:28.080 would be a response, and that's what that is what 0:15:28.160 --> 0:15:30.360 has happened. Some of our colleagues in Beijing made the 0:15:30.400 --> 0:15:34.360 point as well that sub zero weather conditions also probably 0:15:34.400 --> 0:15:37.440 meant that the kept protesters office three. So that type 0:15:37.440 --> 0:15:40.960 of things has gone quiet. Secondly, the government came out 0:15:41.040 --> 0:15:45.880 today with a pledge to focus on increasing the vaccination rates, 0:15:45.920 --> 0:15:49.240 and in particular increasing the vaccination right at the elderly, aged, 0:15:49.280 --> 0:15:52.480 aging and above. That's the segment of the population that 0:15:52.760 --> 0:15:57.000 is under protected at the moment, either via actual vaccination 0:15:57.080 --> 0:16:00.560 job or boosters. Now they said they would promotedvaccination in 0:16:00.680 --> 0:16:04.080 nursing homes. They said they would use a big data 0:16:04.080 --> 0:16:06.880 for example, the target those who have not been laccinated, 0:16:07.080 --> 0:16:11.200 but they didn't detail any specifican mandates or new rules 0:16:11.240 --> 0:16:15.680 out force people to get the vaccination regardless, I think 0:16:15.760 --> 0:16:18.400 all of the development today are being taken by analysts 0:16:18.560 --> 0:16:21.880 as a kind of another step in China process towards 0:16:22.520 --> 0:16:25.480 eventually exiting COVID zeroin that it certainly happens that they're 0:16:25.480 --> 0:16:27.720 going to live with the virus or anything like that, 0:16:27.720 --> 0:16:30.000 have the long road ahead, but it seems as though 0:16:30.120 --> 0:16:31.880 trying to maybe taking at least from of the initial 0:16:31.920 --> 0:16:35.000 steps from that journey. So it's an initial step, And 0:16:35.880 --> 0:16:39.880 or is the Chinese government signaling any further steps it 0:16:40.000 --> 0:16:44.360 could take to try to get past COVID zero. Well, 0:16:44.520 --> 0:16:47.240 we all know the complications in this. A few weeks 0:16:47.280 --> 0:16:50.000 ago China did come out with the twenty point Plan, 0:16:50.440 --> 0:16:54.560 which probably speaking tweets and relaxed some measures, say around 0:16:54.760 --> 0:16:57.720 the duration of quarantine and testing environments to land in 0:16:57.840 --> 0:17:02.080 China and on the ground, changed up how local authorities 0:17:02.080 --> 0:17:05.240 should deal with outbreaks of the virus. But at the 0:17:05.280 --> 0:17:07.240 same time we already to keep preaching that they don't 0:17:07.240 --> 0:17:10.000 want the virus is spread because we all know China 0:17:10.200 --> 0:17:13.680 is as I just discussed, it's under protected in terms 0:17:13.720 --> 0:17:16.280 of its allergy population. When it comes to vaccines, It's 0:17:16.359 --> 0:17:20.359 hospital networks isn't at the kind of level it would 0:17:20.480 --> 0:17:23.199 need to be to cope with a major outbreak obvios 0:17:23.200 --> 0:17:25.720 the disease, and obviously if COVID walter run ramp and 0:17:25.840 --> 0:17:28.399 China will be dealing with a major public health issue, 0:17:28.640 --> 0:17:30.919 which of course would have also have knock on consequences 0:17:30.960 --> 0:17:33.320 and supply change. And it's about economy, so it's in 0:17:33.440 --> 0:17:36.679 something of a difficult position. The question for Chinese how 0:17:36.720 --> 0:17:39.360 does it navigate out of this on the one hand, 0:17:39.400 --> 0:17:42.440 trying to control the spread of the virus, on the 0:17:42.880 --> 0:17:45.360 other hand, of course, allowing the economy to get back 0:17:45.400 --> 0:17:47.679 on the street. Is that it's a very difficult position 0:17:47.760 --> 0:17:49.080 for them, and that's why I think a lot of 0:17:49.160 --> 0:17:51.640 anilets they're making the point. They seem to be making 0:17:51.760 --> 0:17:56.320 baby steps out towards towards changing up its COVID game 0:17:56.359 --> 0:17:59.520 plan that will probably become a hybrid of somewhat mitigating 0:17:59.560 --> 0:18:02.480 against the RUS will also of course allowing mobility and 0:18:02.600 --> 0:18:04.840 consumers to get back on the road again. And as 0:18:04.880 --> 0:18:07.720 we've been mentioning, many of the demonstrators have been calling 0:18:07.840 --> 0:18:11.360 on Chinese President she Jinping to resign over this we've 0:18:11.400 --> 0:18:14.639 mentioned sort of the unprecedented nature of some of these protests. 0:18:14.720 --> 0:18:18.879 How much of a potential risk does this put on 0:18:19.320 --> 0:18:26.320 President She's leadership. Well so, the protest varied in scale 0:18:26.359 --> 0:18:29.359 and size, according to our colleagues in Beijing, CHINAI there 0:18:29.480 --> 0:18:32.000 was also a small scale protests in Hong Kong last 0:18:32.080 --> 0:18:35.440 night as well. By the way, um, you know, listening 0:18:35.480 --> 0:18:38.480 to the experts, nobody I think is of his view 0:18:38.600 --> 0:18:41.960 just yet that this is posing a major systemic straat 0:18:42.040 --> 0:18:44.200 to the government authority, righting like that, we know the 0:18:44.280 --> 0:18:47.080 President She just of course themented his command. He was 0:18:47.119 --> 0:18:51.520 appointed key supporters into top positions, so it's not widely 0:18:51.560 --> 0:18:53.359 felt that there is a director on the government. But 0:18:53.520 --> 0:18:57.960 nonetheless it is sensitive. It is very delicate for the authorities. 0:18:58.320 --> 0:19:01.639 They on the one hand, will want to live some 0:19:02.080 --> 0:19:04.520 of the public frustration to be vented. I seem to 0:19:04.520 --> 0:19:06.920 do what we're doing by Alane, the protests to be 0:19:07.000 --> 0:19:09.000 spread the way they did in the first instance. But 0:19:09.160 --> 0:19:10.600 on the other hand, of course, they'll want to make 0:19:10.640 --> 0:19:13.479 sure they don't spread beyond their comfort tone. That's why 0:19:13.520 --> 0:19:16.520 they heavily centered the social media posting. That's why they 0:19:16.560 --> 0:19:19.439 responded the way they did last side with those arresting 0:19:19.560 --> 0:19:22.960 with the police response. So it's very It is tricky 0:19:23.000 --> 0:19:26.240 in sensitive In China, protests against the government are not allowed, 0:19:26.960 --> 0:19:29.760 but I happened here too many experts. Experts say just 0:19:29.920 --> 0:19:32.280 yet that it's a major threat for the government. Yeah, 0:19:32.359 --> 0:19:35.560 trying to stop protests and the virus from spreading. Thanks 0:19:35.600 --> 0:19:37.560 for this and a great having on with us as always, 0:19:37.560 --> 0:19:41.320 Bloomberg Chief Asia Economics correspondent and the current joining us 0:19:41.400 --> 0:19:45.239 live this morning from Hong Kong. S ANDP futures right 0:19:45.280 --> 0:19:48.200 now up eleven points, Staff futures up thirty nine and 0:19:48.359 --> 0:19:51.959 Nasdaq futures up fifty five points. Seeing a little bit 0:19:52.000 --> 0:19:54.919 of strengthening in the futures contracts right now. The tenure 0:19:54.960 --> 0:19:57.800 treasury is moving higher as well, up for thirty seconds, 0:19:58.119 --> 0:20:01.760 the yield down to three point six six. You're listening 0:20:01.800 --> 0:20:09.960 to Bloomberg Daybreak Bloomberg eleven three oh Weather mostly sunny today, 0:20:10.040 --> 0:20:12.520 HIGs in the upper forties. Tomorrow we'll see rain and 0:20:12.600 --> 0:20:15.040 the breeze a little milder, high in the upper fifties. 0:20:15.200 --> 0:20:18.000 We'll be back in the mid forties. Sunny, breezy for Thursday. 0:20:18.119 --> 0:20:23.479 Right now thirty seven in central Park, broadcasting live from 0:20:23.560 --> 0:20:27.359 the Bloomberg Interactive Broker Studio in New York. Bloomberg E 0:20:27.440 --> 0:20:32.080 Living Freedom to Washington, d C, Bloomberg to Boston, Bloomberg 0:20:32.160 --> 0:20:35.480 one oh six one, to San Francisco, Bloomberg sixty to 0:20:35.560 --> 0:20:38.760 the Country Sirius XM H one nineteen and around the 0:20:38.800 --> 0:20:42.240 globe the Bloomberg Business app and Bloomberg Radio dot Com. 0:20:42.640 --> 0:20:51.720 This is Bloomberg Daybreak at It's five thirty on Wall Street. 0:20:51.760 --> 0:20:55.040 Good morning, I'm Kared Moscow, I'm Nathan Hegar. Bloomberg Daybreak 0:20:55.080 --> 0:20:57.280 is brought to you by se I Imagine your asset 0:20:57.320 --> 0:21:00.920 management firms. Operational infrastructure is a competitive vantage. Let s 0:21:01.000 --> 0:21:03.120 e I show you how at se I C dot 0:21:03.240 --> 0:21:05.760 com slash I M S and we're just about four 0:21:05.800 --> 0:21:08.040 hours away from the open of US trading. Let's get 0:21:08.080 --> 0:21:09.359 you up to date on the news you need to 0:21:09.440 --> 0:21:12.160 know at this hour. We begin in China, where officials 0:21:12.200 --> 0:21:15.680 say they're looking to speed up COVID vaccinations for senior citizens, 0:21:16.000 --> 0:21:18.480 but they're stopping short of mandates. It comes on the 0:21:18.560 --> 0:21:22.440 heels of protests to China's strict COVID policies. Craig Singleton, 0:21:22.600 --> 0:21:26.080 Senior China. Fellow at the Foundation for Defensive Democracy says 0:21:26.320 --> 0:21:30.440 President Hijin Ping might not have many options for easing restrictions. 0:21:30.800 --> 0:21:32.960 I suspect going forward, the big problem that's going to 0:21:33.000 --> 0:21:35.520 be that the CCP has not articulated a clear path 0:21:35.680 --> 0:21:38.800 out of zero. COVID Ing has so closely staked his 0:21:38.920 --> 0:21:41.679 legacy on the notion that China's pandemic response has been 0:21:41.840 --> 0:21:45.000 better than the West, that narrative would be really damaged 0:21:45.080 --> 0:21:48.720 if China lifted these controls. Craig Singleton with the Foundation 0:21:48.800 --> 0:21:51.680 for the Defensive Democracies is a guest on Bloomberg Sound 0:21:51.800 --> 0:21:54.320 On Catch the Show weekdays at five pm Eastern on 0:21:54.359 --> 0:21:57.359