Bloomberg Daybreak: December 1, 2022 - Hour 2 (Radio)

House committee now has President Trump's tax returns. On Michael blarm More Ahead, I'm John Standstoward. Sports another home loss for the Knicks, beaten by the Bucks, the Nets beat the Wizards, the Rangers one in Ottawa. That's all trended

ahead on Bloomberg day Break on Bloomberg. He Living Free on New York Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world Bloombird Radio dot Com and via the Bloombird Business app the Thursday Morning. I'm Amy Morris, I'm Nathan Hagar futures are moving lower this morning. We're coming up to six o one on Wall Street, and we check the markets every fifteen minutes

starting the trading day. On bloomberg SMP futures are down down five points, Stown features down sixty nine, NASTAC futures are lower by thirty seven points ten. Your treasury is a little changed now. The yield three point six zero percent yield on the two year four point three two percent. Nimex screws up six tenths per center forty five cents at eighty one dollars A barrel comes gold is up one point seven percent, up thirty dollars fifty cents. It's

seventy announced. The euro one point zero four two two against the dollar, the yen one thirty six point four four Amy Nathan, we begin with market moving remarks from JPL, the FED chair signaling the Central Bank will back off its aggressive base of interest rate hikes as soon as this month. The time for moderating the pace of rate

increases may come as soon as the December meeting. Given our our progress in tightening policy, the timing of that moderation is far less significant than the questions of how much further we will need to raise grades to control inflation. Powell's remarks solidified bets the Fed will downshift to a fifty basis point rate hike on December four, after delivering four straight seventy five basis point moves. Like what, the

markets surged on Powell's comments. Say. The SMP five hundred rallied more than three percent to close it a two month high. The NASTAC one hundred jumped four point four percent, and with the Dow's seven hundred thirty seven point advanced, that index is now up from its September low. That

meets the definition of a bull market. Sobadra ra Joppa's head of US rate strategy associate a general, So, I think if you have a picture where inflation is starting to moderate, then they might be willing to kind of be patient, keep rates steady for the domainder of next year UH and then start to orchestrate a soft landing. Sbadra Japa expects rates to stay elevated not only next year, but into and we saw the Wall Street rally spill into markets overseas. Stocks in Europe are up about a

half percent. Equities in Asia advanced overnight extending gains after their best monthly rally in twenty four years. Let's get the recap from Bloomberg's Juliet Sally in Singapore. Good morning, Juliette, Good morning, Nathan and Amy. After capping a fifteen percent gain in November, the m s ci Asia Pacific Index jumped as much as two and a half percent Thursday to in August high and is inching closer towards a

bull market. Gauges in China, Hong Kong and Taiwan led gains after a top Chinese officials said efforts to combat the virus entering a new phase, with the omicron variant weakening and vaccination rates rising. Meanwhile, Beijing some restrictions, lifting the on and the yen traded at a three month high in Singapore. Juliette Sally Bloomberg Day Break, Juliet Thanks. COVID policies remained front and center in China, and we're seeing more signs Beijing may be willing to soften its

stance on virus restrictions. Bloomberg Executive editor Paul Dobson has more from our Singapore bureau today. We learned that in Beijing, some people may be allowed to quarantine at home instead of going to quarantine camps, which is obviously good news because people would much rather be in the comfort of their own homes given the choice a lot of the time. Um and and it might give them a little bit more confidence to go out at about when when COVID

isn't around incremensity, that's good news. But directionally that's very good news because you know, the market is waiting for China to take these decisive steps, you know, the vaccinations that are needed for the elderly, the increase in hospital beds to be able to start that process of opening up, which the rest of the world has already, you know, way ahead of Bloomberg's Paul Dobson says, it's been three years since the world's first documented coronavirus patient emerged in China,

and Nathan back here in the US, we are hearing public comments now from Sam Bankman freed for the first time, the disgraced founder and CEO of the bankrupt FDx crypto Empire is denying fraud while admitting to grievous errors in management.

Whatever happened, why ever it happened, I had a duty added duty to all of our stakeholders, to our customers, our frederors, a head of duty for employees, for investors, and to the regulators in the world to do right by them, to make sure the right things happened to the company. And uh, they're the I'd do a good job of that. I was shocked by what happened this month, Sam Bankman. Freed made the comments by video link at

the New York Times Deal Book Summit. There are still unanswered questions about how FTX ended up with an eight billion dollar hole in its balance sheet and whether it mishandled customer funds well. Meantime, amy has standoff between two of the world's most powerful tech leaders appears to be easy. Let's get the details live from Bloomberg. Steve Rappaport, Good

Morning State, Good morning making a namy Elon. Musk is burying the hatchet with Apple CEO Tim Cook, saying the tip between the tech giants was a misunderstanding that has been resolved. The Twitter boss claimed without explanation that Apple threatened to block the platform from its app store, but yesterday Musk's confirmed he spoke with Cook and says Cook assured him Apple never even considered doing so, a number of businesses paused advertising on Twitter because of concerns about

Musk's approach to moderating content. Live in New York, I'm Steve Rappaport, Bloomberg Daybreak. All right, thank you, Steve. Now, let's get the latest on efforts to avert a crippling freight rail strike. The House has passed legislation to block a strike, sending it to the Senate, which could take action as soon as this week. The House also passed a related bill that would add seven days of paid

sickly to the rail contract. Bloomberg's Joe Matthew spoke about that with Art Wheaton, director of Labor Studies at Cornell University's School of Industrial and Labor Relations. I agree that the workers deserve the seven days off, but they need to get enough votes in the Senate for it to pass. Otherwise we have a strike. I would guess they're not going to add the seven days in the Senate. Art

Wheaton is director of Labor Studies at Cornell University. He was a guest on Sound on Herd weekdays at five pm Wall Street Time here on Bloomberg Radio. Finally, Amy as inflation pressures remain high. A new survey says New York City and Singapore are the most expensive of cities to live in. The report comes from the Economist Intelligence Unit Tel Aviv, Hong Kong, and Los Angeles round out

the top five. The survey says the cost of living in the world's largest cities rose more than eight percent over the past year. Straight ahead, we'll bring your latest local headlines and a check of sports. This is Bloomberg. Thank you, Nathan, six oh seven on Wall Street. Now, let's bringing Michael Barr to find out what else is going on in New York and around the world. Good morning Michael, Good morning Amy. New York's mt A may boost fares on subways, buses, and commuter rail lines by

five point five percent next year. It is the first time the transit provider has implemented such a hike since the MTA faces a potential three billion dollar budget deficit as weekday ridership has plantawed to about six a pre pandemic levels. The m t A tends to increase fares by four percent every two years, but Governor Kathy Hoco

postpone tho science during the pandemic. The house ways and means committee will get to look through Donald Trump's tax returns, Bloomberg said Baxter as the story the i R s as it is complied with the Supreme Court and making the returns available, did not confirm whether members of the panel have accessed them. The committee reportedly will meet today

to decide what to do with the returns. This has been a long journey, as a committee has been seeking the documents since twenty Trump had repeatedly said during the campaign that he would make the returns public, but then fought all the way to the Supreme Court. The committee has argued it needs to see the returns to draft legislation on presidential compliance with tax law. In San Francisco,

I'm at Baxter Bloomberg Daybreak. The US Appeals Court rejected the Biden administration's request to reinstate the student debt relief plan. President Biden announced in August that the government would forgive up to ten thousand dollars in student loan debt for borrowers making less than one twenty five thousand dollars a year. About twenty six million Americans have applied for student loan forgiveness.

Loyola Law University Professor Lorie Levinson. These loans are supposed to be repaid starting in January, and unless a court uphold surfieding plan, then these people who thought they would have their loans forgiven will have to start paying. Professor Lorie Levinson says the next stop is likely the Supreme Court. The New York Grid Operator warned that electricity supplies will be tied as early as twenty three as the man grows and old generators shut down, increasing the risk of blackouts.

The New York Independent System Operators says the availability of power supplies will then over the next decade as more power plants fueled by natural gas shut down and the man grows for electric vehicles and home heating. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. Michael Barr

and this is Bloombergaining. All right, thank you make for the sports report, brought to you by Try State Outy. Here's john s dash Our all right, thanks Amy. The Knicks one of their first three home games this season. Since then at the Garden, they've gone one and six beaten by the Bucks one oh nine, one oh three too much. Jana's sons in the compo thirty seven points. R J. Barrett of the Knicks with twenty six. Julius Randalls had only eight of twenty four, Jalen Brunson eight

of twenty two. Together, they were just one of twelve on three pointers the nets in Brooklyn Pete, Washington one one oh seven. That's three straight wins to move over five hundred. Kevin Durant continues his terrific season, averaging thirty per game, shooting fifty five. Durant scored thirty nine Kyrie

Irving at its twenty seven. Rangers in Ottawa had the lead, looking for more of the Rangers control of the draw, send it back up with Savannah Jat up the middle, leaves the back into the far wing for VC spins to his forehead and backhands upon and at the Savannah Jat. Savannah Jat slings it to the newer point and lingery with a and they store Prider was in front. I think he deflected it and the Rangers take up three ESPN New York CALLI it was Grider is eleven goal

he at fifty two. Last year, the Rangers beat the Senators three to one. College Jus Rutgers lost in Miami s one Big ten a c C Challenge. The two conferences split six games Tuesday and split six more last night, Indiana beating North Carolina, who began the season right number one Tario's and now lost three in a row. Australia, Argentina and Poland all earned their way into the World Cup knockout round. France had already flints and four more

spots up for grabs today. In guitar, the Giants will have a visitor at the facility today and old fred O'Dell Beckham, the ex Giant, has not played this season, now said to have recovered from the torn a c l suffered in the Super Bowl while he was with the Rams. The Cowboys also very much interested in signing Jack. That's Stashward Bloomberg Sports Team. All right, thank you, John.

Futures are lower s and P features down one, pot Dal futures down forty seven, NAZAC features down twenty four points. Much more to come on this Thursday morning edition of Bloomberg Daybreak. Stay with us. This is Bloomberg, The Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off and the Audi model you've always wanted.

Visit your local Tri state autie dealer to get behind the wheel of yours today, or visit Autie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Outland at Bloomberg Quick Tape, She's a Bloomberg Business Lash.

I'm Nathan Hagar. Futures are moving just to touch lower after Yesterday's surge following FED Chair Powell's remarks at the Brookings Institution confirming the pace of interest rate hikes will slow. We checked the markets every fifteen minutes during the trading day on Bloomberg SMP futures right now are down four points, STOW futures down six five. Nasty futures are lower by thirty four points. The tenure Treasury is up one thirty second deal three point six zero percent build on the

two year four point three two percent. IMAX Screwed is up eight tenths percent, up sixty three cents eighty one dollar nineteen cents for a barrel of West Texas Intermediate Comex gold is up one eight percent, up thirty one an ounce, the euro one point zero four two one against the dollar. The end is at one thirty six point four two. Bitcoins down almost a ten percent, just shy of seventeen thousand, one hundred. That's a Bloomberg business flash.

And now here's Michael Barr McK more on let's going on around the world. Michael Nathan, thank you very much. A House committee can now get a look at six years of Donald Trump's tax returns. It comes a week after the Supreme Court cleared the way for their release. More Chinese cities are easing some anti virus restrictions as police patrol their streets to head off protests demonstrators, and several cities demanded an end to controls that can find

millions of people to their homes. In the NBA, the next lost, the Nets beat the Wizards the Celtics one. In the NHL, the Rangers won at the World Cup four games to including Germany against Costa Rica. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven un your journalist and analysts, more than twenty countries Michael Laren, this

is Bloomberg Amy. All right, thank you, Michael. It's six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. FED Jair J. Powell signaled the Federal Reserve will slow the pace of interest rate increases next month, while stressing borrowing costs will need to keep rising for some time to beat inflation. We welcome global market strategist Brian Leavitt with Investco. He joins us now. Brian,

good morning to you. What's your takeaway from Fed chair Powell's speech. You know, it's funny the market loved it. Um to your rates came down pretty significantly. I'm not sure that the said I'm not sure J. Powell intended for that type of reaction from the market, but it does suggest to me that we are getting closer to the end of the tightening cycle and markets aren't gonna wait till the actual pause. Markets will start to sniff out a change in policy, and and that's how a

recovery will commence. So it may already be taking place again. I don't think the Fed wanted that type of reaction, um, but it's a process that we're we're moving through and and should set the stage for a recovery in so you don't expect a recession, then well you may have a recession. Um. I liken it to nineteen eighty one, where inflation did peak in nineteen eighty Volker raised rates

through the end of the year. You still had a recession in eighty one, but the markets had already priced in a lot of it, had already been down twenty seven percent and started to sniff out the recovery. So actually in that recession, markets were positive. So you may still have a recession, but the markets are going to lead it, lead us out of it. And so the markets are already looking towards what that recovery maybe rather than focus on a recession which is likely already priced in.

You know, of like the big story has been the protests in China. How much of an impact has that had? Can you speak to that? Well, for right now the US markets, it's it's largely about the FED. I I don't believe that, um, you know, the two year rate or what the SMP five hundred has done has been focused on Shina because I think the expectation is the Chinese authorities will will slowly implement changes UM and and

and um placate the protesters. But I think there is a positive in that you're starting to see in cities in China as some of the restrictions ease and and that of course would be a positive sign both for global demand but also ease concerns that supply chain challenges could re emerge. Let's bring it closer to home now and talk about holiday shopping season. Have you seen any indicators from this season, even though it's fairly early on, about how what that will and how that will have

an impact. I think the most interesting thing we hear from the holiday season is from the retail saying that UM they're going to be aggressive with some markdowns in order to make sure that they're not oversupplied. I mean, that's what's interesting, is that businesses cut inventory too late during the early days of covid UM, and now they've been frantically trying to rebuild while the consumer is slowing.

So what I'm seeing from the holiday season is a consumer that's hanging in there, but signs that clear signs to me that the inflation story on goods UM is beyond us. That's past a that's story, UM. I mean, I'm sorry it two story. We've we've moved beyond the inflation and goods UM and that's a positive for for the market because it suggests again that the pause and tightening is is probably near. Now. The NAVDAC has lost more than a quarter of its value this year. What

do you see for the coming year? Rate? I think that rates and inflation are still going to remain higher than they were in the last cycle, so that's still a bit of a headwind for longer duration assets UM. I think that in a recovery, value stocks tend to outperform. Now that doesn't mean growth won't make up UM or tech stocks won't make up some of what had been lost.

But we're certainly very unlikely to go back to anywhere near the loft evaluations that we had in the prior cycle, because you would need to get back to a much lower inflation in rate environment and that just doesn't seem to be in the cards in three So from a style perspective, I would favor the more value oriented UM and heavily cyclical parts of the market. Again, assuming met a recovery as we expect plays out, and just about thirty seconds here, Brian, can you give us a little

guidance for the coming weeks and months. So my guidance would be that you're going to enter a recovery phase of the cycle. That seems the most likely next step. Most investors miss it because they tend to be focusing on the world not being good, when instead the market cares about whether things are getting better relative to expectations. My expectation as things will get better relative to expectations,

producing a good backdrop for risk assets. All right, Brian, thank you very much for taking the time with us this morning. Ending on an optimistic note. Global market strategist Brian Levitt with Investco now checking the futures markets. S ANDP futures are five points lower, delve futures sixties, seven points lower, NASDAT futures down thirty seven points. Ten year treasury unchanged, the yield at three point six percent, the two year yield at four point three. Now I'm ex

crude now nine tenths of a percent higher. That's seventy nine cents trading at eight thirty three sensor barrel. Much more to come on Bloomberg daybreak. This is Bloomberg the Bloomberg eleven three oh forecast study and breezy going up to forty five degrees, going up to fifty tomorrow A little mile They're showers return on Saturday, going up to sixty degrees. Broadcasting live from the Bloomberg Interactive Broker Studio

in New York. Bloomberg in Living free to Washington, d C, Bloomberg nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg now sixty to the country, sirius XM to A one nine and around the globe the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good Thursday morning. I'm Amy Morris and I'm Nathan Hager. We're about three hours

away from the open of US trading. Time for the five things you need to know to start your day. Out to you by Interactive Brokers. Interactive Brokers charges margin loan rates from four point three three to five point three rates subject to change. Learn more at ib kr dot com. Slash compare first fed Share. J Powell is signaling the Central Bank will ease its aggressive pace of interest rate hikes as soon as this month. The time for moderating the pace of rate increases may come as

soon as the December meeting. Given our our progress in tightening policy, the timing of that moderation is far less significant. J Pal's remarks indicate the Fed is likely to shift down to a fifty basis point hike at its next decision. Equity markets advanced sharply on Pal's comments. David could Love, founder of Mainstay Capital Management, says the more dovish tone

was appropriate for current economic conditions. I think it's a recognition too of looking at the data p M E s or in contraction territory pending home sales down thirty year over year, and we haven't felt the full impact of these rate hikes we've had. David Cutler with Mainstay Capital Management, believes Pal's calm. It's also indicate he's mindful of the Fed going too far with great hikes. Well. The SP five hundred closed up three per cent after

Powell's remarks. The rally extended overseas, as well as stocks in Europe and Asia advancing. In China, there is also optimism on COVID, with authorities now downplaying the severity of the virus. China's COVID czar says the country's in a new phase of the pandemic. Back in the U S. Desgrised fd X founder Sam Bankman Freed spoke publicly yesterday

denying fraud while admitting to management errors. At a duty to all of our stakeholders, to our customers, our freeditor is a head of duty to our employees, to our investors, to the regulators of the world to do right by them, to make sure the rate things happened to the company, and and do a good job of that. Sam Bankman Freed spoke at the New York Times deal Books Sunne Let's check Big Tech now Amy as standoff between two powerful CEOs appears to be easing Bloomberg. Steve Rappaport joins

US Live with that story. Good morning Steve, Good morning Nathan and Amy. It was all a misunderstanding. That's how Elon Musk described his tip with Apple CEO Tim Cook. The Twitter chief, accused Apple of threatening to boot the platform from its app store, but on Wednesday, Musk said the tech bosses spoke and the matter has been resolved, with Cook reassuring him that Apple never intended to cut ties with Twitter live in New York. I'm Steve Rappaport

Bloomberg day Break. All right, Steve. Thanks, That's the five things you need to know to start your day, brought to you by Interactive Brokers. SMP futures are now down to point down. Futures down forty eight, Nasdaq futures down twenty four points ten. Your treasuries little change, the yield three point six zero percent. You'ld on the two year four point three two percent. Straight ahead, your latest local headlines and the check off sports. This is Bloomberg. It's

sixty three on Wall Street. Let's bring in Michael bar with more on what else is going on in New York and around the world. Good morning, Michael, Good morning Amy. Fairs may rise next year for New York mt A writers. Fairs on subways, buses, and commuter real lines could go up by five point five percent next year. M t A Chief Financial Officer Kevin Willins on ABC seven. Has not been a fair increase, as you know, since April of Since then, the labor wages have increased cumulatively by

seven point four percent. M t A CFO Willens says the potential increase would push the two seventy five cost of a single subway or bus ride to two dollars ninety cents next year and three oh five in It comes as the agency is seeking additional federal, state, or city funding to help fill budget deficits. The Biden administration

student loan forgiveness plan remains on hold. The Fifth U s Circuit Court of Appeals denied a request from the federal government to temporarily reverse the lower court order that blocked rollout of the plan. Loyola Law University professor Lori Levinson says the next stop is likely the Supreme Court. The Fifth Circuit delta blow President Biden's plan to have a loan forgiveness program for student loans, but the courts have been saying that in fact, Biden did not have

the power to move forward on this. Loyola Law University Professor Lori Levinson. President Biden announced in August that the government would forgive up to ten thousand dollars in student loan debt. Closing statements are set to begin today in New York and the criminal tax evasion trial of former President Trump's family real estate business. The Trump Organization is accused of compensating certain executives through fringe benefits that were

never declared on income taxes. The Treasury Department turned over six years of Donald Trump's tax returns to a House committee after the Supreme Court cleared the way for the release. The Ways and Means Committee has been seeking the return saying it needs them to consider potential legislation on presidential compliance with tax rules and mandatory I R. S Audit policy for presidents. The Rockefeller Center Christmas Tree was officially

lit up last night in New York City. Fifty thousand led lights are on the eight two foot tall Norway Spruce in Midtown Manhattan. Christine McVeigh has died. Mcve sang lead on many of Fleetwood Mac's biggest hits, and Like Little Lies, McVeigh wrote many of the group's songs. Christine McVeigh was seventy nine Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists analysts more than a

hundred twenty countries. At Michael Barr, this is Bloomberg Gaming, all right. Thank you, Michael John now for the sports report brought to you by Price Day out. He Here's John's dash our alright, Amy. The next continue to have their struggles at home. Just one win at the Garden in the past month. We were beaten by Milwaukee one o nine one oh three honest as the Compo led the Bucks with thirty seven points, Kevin Duran led the

Nets with thirty nine. They made Washington at Barkley's one thirteen one oh seven nets with three straight wins move over five hundred. Rangers had lost their last three, but in Ottawa goal in each period, all three assisted by Ryan Linger in the ring. Just beat the Senators three to one with backup Jaraslav Halaki in goal. It's his first win as a Ranger. A long time Pittsburgh Penguins All Star defenseman Christah Tang just suffered a stroke for

the second time. Also happened back in two thousand and fourteen when he missed two months, and Latang is expected to return at some point. The NFL game tonight Buffalo at New England. That's a game the Jets will have an interest in. The a f C East has the Bills and Dolphins at top at eight and three of the Jets are seven and four in the Patriots are six and five. The Jets on Sunday visit the nine and two Vikings. The Jets coach Rob Salon, there's a

reason why they're the record they have. They've been everybody in under vision. UM. They'd beat Miami, they'd be Buffalo, they'd be New England. They're they're very talented. UM. Offensively, they've got skill players, are very well coached. UM. Defensively, they're very veteran, very smart. They play smart sala football. So um challenge and a big one for the Giants. Sunday, Washington comes in having won six of the last seven. The Giants just lost twice and the sixth Days fan

Don Addingly has a new job. The ext Yankee grade no longer the manager in Miami. He's now the bench coach in Toronto. ESPN reports the Yankees offered to Aaron Judges eight years, three hundred million. It's believe Judge will either stay in New York or signed with San Francisco. John Stash were Bloomberg Sports in all right, Thank you, John.

It is six thirty eight on Wall Street. Time to take a look at stocks and some of the names that are moving in the pre market for that We're joined by Bloomberg Radio and TV Markets corresponded Crety Goopta Creaty, Good morning to you, Good morning Amy. We'll start off with a Dow heavyweight if we can even utter the Dow around here of the salesforce. C RM is your ticker, and shares are down about six percent in the pre market.

This comes after a pretty grim forecast that fourth quarter revenue forecast of seven point nine three billion dollars to eight three billion the analyst estimate though with eight point zero three so they're falling slightly short of that. Remember, anytime someone a company, I should say, decide to kind of decrease or forecast or cut their forecast or and sort of guidance for the future, you're it is going to weigh on the stocks. And you've seen them really

get punished lately. Um about extra margin as you start to see the slowdown. Investors very sensitive to the macroeconomic picture. But it's not just that. They also said the company's co CEO, Brett Taylor, would also step down. Nevertheless, you didn't actually have some decent numbers on the on on the balance sheet there, but it was enough to, like you said, send the shares lower and something you want to watch with the Dow because features are about flat

right now. But as given Salesforce is one of the heavyweights, it could have a little bit of ripple effect to that index. We should also look at Snowflake for example. Really stick with this the tech theme. S n o W also down by about six percent, and this is important because Snowflake was really kind of on a roll. It was really rallying with a lot of the cloud companies,

a lot of cybersecurity companies. But their story this morning is quite similar to that of Salesforce, which they're dropping after their forecast signals a massive slowdown in tech spending. And remember we heard this from crowd Strike yesterday. This idea that the big boom and big kind of chain in cloud infrastructure broadly first kind of initiated, and I would say UM gained a lot of momentum during the pandemic and then another leg of momentum after the war Ukraine.

All of that is slowing down now, so you're almost seeing a little bit of a reset and spending. As of course, a lot of companies are far more cautious of where they put their money, so Snowflake shares snow down about six percent, and remember fell down by ten percent after the bell yesterday, so you're starting to see a lot of pain for those shares. Emai, I'll wrap it up with one more here, Victoria's Secret. V s c O shares were down as much as one percent earlier.

They are now about flat in the session. But keep an eye on this one because this is really important. Their profit outlook is also trailing estimates, so you're not actually seeing this become just a tax story. It looks like in the consumer spending world, the idea of the

strength of the consumer. If Victoria's Secret is your gauge, not sending a great sign alright, Bloomberg Radio and TV Markets correspondent Creedy Gupta, thank you for that inside, Thanks for joining us and looking at stocks as a whole. Ahead of the open, futures are lower. SMP futures down three points, DAL futures down fifty seven, Nasdaq futures down twenty six points. Ten year treasury up one thirty second, the yield at three point six, the two year yield

at four point three. We continue to watch the markets for you here on Bloomberg Daybreak. Stay with us this is Bloomberg. The Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the

Outie model you've always wanted. Visit your local try state autie dealer to get behind the wheel of yours today, or visit Outie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Outland at Bloomberg Quick takes a Bloomberg Business Flash. I'm Nathan Hagar. After yesterday's searche, futures are taking a bit of a breather this morning, Let's head right over to the First Bird breaking news

desk for today's morning call. Here's Bill Maloney. Good morning, Bill, Good morning Nathan. That's right modest laws in the futures after yesterday's jump. With down futures down sixty three points, subs dropped three and a half and as the futures fall by seven, the US ten year at three point six percent, Gold is up twelve, Oil is in the green,

and bitcoin is trading little change. Japan rose point nine percent over tonight, while up markets are also trading in the green this morning and back in the US on the economic Frinday dirty PC and initial jobs claims at Manufacturing p M I and at ten o'clock I s M Manufacturing After the bells Night's salesforce reported shares it down six percent in the pre market, and Snowflake Q

four product revenue forecast missed estimates. In deal news, HP is said to have expressed interest in cloud from New Tannics, and in other news, JP Morgan said US stocks to sink in the first half of three and Taiwan semi plans to make more advanced chips in the US at

the urging of Apple wrapping things up. Otis Worldwide was cut to equate at Barkley's Capital one cut underweight over at Morgan Stanley Live from the first breaking News descon Boom Maloney, Nathan, thanks Phil to get live breaking news over your Bloomberg type squawk on your terminal s Q. You a go, that's the Bloomberg business Flash. Now here's Michael Barr with more on what's going on around the world. Michael,

thank you very much, Nathan. The House voted to block a strike by the nation's railway workers, and a separate vote also adding seven days have paid sick leave. To the agreement, both bills now head to the Senate. President Joe Biden has set to welcome French President Emmanuel mccrawl to the White House today. The visit will conclude with the first state dinner of the Biden administration. In the NBA, at the next loss, the Nets beat the Wizards the

Celtics one. In the NHL, the Rangers won at the World Cup four games today, including Germany against Costa Rica. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist analyists more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan Michael. Thanks at six forty nine on Wall Street. Let's turn the news and science

and technology now. The Bloomberg n j I T STEM Report is brought to you by New Jersey Institute of Technology, ranked the top hundred national university by US News and World Report and the number one public university in New Jersey by Forbes. What will You Make It? Nj I T. Learn more at nj I T dot E d um now what it is making news in science, Technology, Engineering

and Math. Three years since the world's first documented coronavirus patient in China, the country's finally pivoting from efforts to quash the pandemic. China's covid zar says the fight has entered a new phase and the government is making some concessions, like allowing some low risk patients to isolate at home

instead of in controversial quarantine camps. The European Union's Executive arm will conduct a stress test at Twitter's headquarters earlier next early next year, as the block's digital chief, Warren Delon Musk he was had quote huge work ahead to

comply with content moderation laws. The European warning also came as Treasury Secretary Janet Yelling said Musk's purchase of Twitter would warrant a government review if themed to raise national security concerns, and another one of Musk's companies is making news. Neurallink says it aims to start putting its coin sized computing brain implant into human patients within six months. The product consists of a tiny device and electrode laced wires, along with a robot that carves out a piece of

a person's skull and implants it into the brain. That's the Bloomberg J I T Stem Report. Amy. All right, thank you, Nathan, and we're live from the Bloomberg Interactive Broker Studios, where it is six fifty one on Wall Street Time now to check what's going on in d C. Some of the top stories in our nation's capital include the House voting to avert a potential rail strike by passing a bill to make union workers accept a contract

with rail companies. A House panel can now get a look at Donald Trump's tax returns, Republicans are going to continue spending earmarks next year, and the first White House to dinner in three years is set for tonight. We welcome Bloomberg Government reporter Jack Fitzpatrick. A lot to unpack here, Jack. The House passing legislation to a vert of railroad strike. How now it's going to the Senate now. But what happens next, Well, that's the big question. And as a

question of timing and what exactly they can pass. The House actually took two votes. They passed quite easily, with two votes in favor a standard measure to require the unions essentially to accept the offer that has been made. There was then a separate vote much closer that only got three Republicans to vote in favor that would add

seven days of paid sick leave to that contract. Now in the Senate, we're hearing a lot from Bernie Sanders saying he was going to demand an amendment, demanded a measure to add those seven days of paid sick leave. Otherwise he wasn't going to allow a quick vote, And that's very important in the Senate, where things drag on. It can take a week or so to pass something

if you don't get unanimous consent to speed things up. Uh, he is trying to get as much support as possible for that more generous version with seven days of paid sick leave. John Thune, the Republican whip, is that he

doesn't think there would be sixty votes for that. So there's a question of how quickly they can take this up, how quickly they can get a unanimous time agreement to try to quickly get something to the President's desk, and if it's possible for Sanders to rally enough people around the sick leave or if he has to settle for the the standard agreement that nine out of the thirteen unions have accepted but four have not if they don't pass that sick leave part of the legislation, will there

be a strike? Uh? It's well, there wouldn't be a strike if Congress demands that this be put into place. This is how they avoid a strike is by saying, okay, the the unions have not all unanimously voted yes, but Congress acting is the thing that avoids a strike. At this point, the negotiations aren't taking care of it. And that's why President Biden, in a very significant move, has said Congress needs to step in and legally require some

sort of deal to be put into place. And the question now is if they can act quickly enough before it disrupts the freight lines, and if they choose to do the the offer that already stands or add that sick leave. Okay, let's shift gears now, Jack, the Housewives and Means Committee has Donald Trump's tax returns for the past six years. Now, what happens, Well, it's not a moment too soon, because it's just about the end of the Congress. This the Congress ends at the end of

the year or the next one begins at very early January. Uh. They essentially want to find out if he has been following the lawn to what extent he's been following the law. You probably remember the New York Times or Boarding a couple of years ago of the very low amounts that he paid down to zero in some years of personal income tax. Uh. They made the case in court that they needed this for legislating on the the issue of holding the president accountable and making sure the president follows

I R. S Law. Uh. So they're they're going to have to have a conversation about what they do. It's very late to try to pass a bill, but this is a really a matter of the public interest. Uh. And and so they're going to meet today. Lawmakers are going to meet today to discuss what they've got. And Uh. It's again, it's a bit of a race against time to ask what a democratically controlled House is going to do when they're about to hand over the majority to

the Republicans in early January. And you have a story Jack on the Bloomberg Terminal about how House Republicans plan to keep spending earmarks in place for the next year. That's actually a significant move. Yeah. You know, there was so much Republican opposition to earmarks, which had gotten a

really bad reputation. Uh. You know, a significant portion of the Tea Party wave of Conservatives was against ear marks, but the Democrats brought it back and got Republicans to to go along with it and and participate at least many of them over the last couple of years. Uh. And there have not been scandals, it has not been

very much money in the context of federal spending. They added nine point seven billion dollars in local projects specifically requested by lawmakers in the in the last omnibus that was enacted in March. And so the Republicans in the House actually voted a hundred fifty eight to fifty two, according to my colleagues Eric Kasson and Emily Wilkins in a closed door vote. Uh so that's a very strong majority.

As you saw leadership and leadership aligned Republicans pointing out that this is not quite the scandal ridden kind of bridge to nowhere process us that had been panned in the past years. And finally, jack President Biden welcoming French President Emmanuel mccron for the first White House state dinner and more than three years, what are you going to

be watching for? Well, mccron comes with some complaints. The French don't really like some of the the electric vehicle manufacturing measures meant to spur American production of electric vehicle parts that were put in place in the major reconciliation bills enacted earlier this year that Democrats got through Congress. Uh, they're still not very happy also about the us UK deal with Australia on nuclear submarines that the that France had wanted to uh be part of or really wanted

to supply the Australians with nuclear submarines. Uh. So, you know, it's overall not a terribly negative relationship with President Biden, but there are a couple key complaints that mccron brings at a time when otherwise Biden is kind of riding high given Democrats over performance compared to expectations in the November midterms. Alright, Bloomberg Government reporter Jack Fitzpatrick, always a pleasure to talk to you. Thank you very much for

taking the time this morning. You can read more about these stories on Bloomberg dot com or on the Bloomberg terminal. And a reminder, you can follow all of the latest on Bloomberg Radio in Washington, Bloomberg nine one and one oh five point seven. Fm h D two futures are lower. S and P futures down three points, DAL futures down fifty seven, NASTAC futures down twenty two. Bloomberg Surveillance with Tom Keene, Lisa Bramowitz, and Jonathan Farrow coming up next,

along with Nathan Hagar. I'm Amy Morris, and this is Bloomberg.