Bloomberg Daybreak: December 12, 2022 - Hour 1 (Radio)

its final report. I'm Amy Morris. New York subway officials are looking at hiking fairs, and the area is bracing for its first major snow event this season. John stash Allard swards the Giants got blown out by Philadelphia, the

Jets lost in Buffalo, the Nicks sacrament them. That's all trading ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius XM one nine team and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business app. Good Morning, I'm Nathan Hagar, and I'm Karen Moscow and US DOT

index futures are on the rise this morning. It is five oh one on Wall Street, and we check the markets all day long year at bloomberg S and P futures up seven points or two tenths of a percent, Dow futures up forty one points or a tenth of a percent, and NASDAIC futures are up twenty eight points

or a quarter percent. The decks in Germany is down at tenth of a percent, and the tenure Treasury is up ten thirty seconds here three point five four percent, yield on the two year four point three two percent. Nathan Karen, we begin this morning with a big week for central bank decisions, both here and abroad. Let's get a preview from Bloomberg's Michael McKee. Are you ready for risk? We have a host of major market moving events this week. Tuesday, us c P I will weigh on investors views of

what the Fed will and has to do. Wednesday, the Fed will tell us not just a rate move, but new economic forecasts and a new dot plot. How high do they think US interest rates have to go? How high will they have to go in Europe? Well, Thursday, all eyes turned to the ECB, which will also be moving rates up and offering new forecasts. What kind of recession will they see? The Bank of England has already forecast contraction, but with inflation high, they are expected to

raise rates again on Thursday. The question on thread Needle Street, when do they stop? Michael McKie blue Berg Daybreak A ry Michael, thank you well so far the juries out and whether central banks are winning the war on inflation? But Treasury Secretary Janet Yellen is optimistic. She says prices should be much lower by the end of next year. As long as there aren't any unexpected shocks to the economy,

I believe inflation will be lower. Um. I am very hopeful that the labor market will remain quite healthy so that people can feel good about their finances. In an interview with CBS IS sixty minutes, Secretary Yellen said ending Russia's war in Ukraine would be the single best thing for the global economy. She says US support for Ukraine will continue, quote as long as it takes. We're doing everything we can to bring this war to a conclusion.

Of course, we're providing considerable help um to Ukraine, both military and economic, and listeners in Washington can hear sixty minutes from CBS Sunday nights at ten on Bloomberg. Support for Ukraine will be high on the agenda, Karen, when Group of seven leaders meet virtually today. The White House says President Biden spoke with Ukrainian President vladimir's Lensky last

night to underscore his support. The US has promised thirty eight billion dollars in military aid and delivered thirteen billion in direct aid to Ukraine so far. Meantime, Nathan, the US will send a delegation to China on the coming days. The move follows up on President Biden's meeting with Chinese President Sheijin, paying last month that at the G twenty, the two countries have plenty of disagreements, including over Taiwan and US moves to limit China's economic and technological influence.

We have moves on a Capitol Hills response to last year's insurrection, Karen. The January six Committee has taken another step on its way to producing its final report, with a new subcommittee meeting. Bloomberg's Backster reports. The stated purpose of the meeting possible prosecution on criminal charges coming out of the insurrection. Congressman Adam Schiff on CBS has heard

here on Bloomberg. I think we're all certainly an agreement that there is evidence of criminality here shifts as a committee has been able to provide very important information to the d o J. But just as important, I think it makes an important statement, not a political one, but a statement about the evidence of an attack on the institutions for democracy and the peaceful transfer of power. Less than two weeks until the curtain comes down in San Francisco.

I'm at Baxter Bloomberg Gay Break, all right, and thank you all. Turning to the markets now, we have a couple of deals to kick off the week in at

one in the biotech industry. Let me get the latest live with the Bloomberg Steve Rappaport, Good morning, Steve, the Good morning, Karen and Nathan Mgen plans to buy Horizon Therapeutics at a valuation of twenty six billion dollars in what would be its largest acquisition to date, sources telling Bloomberg News, the biotech giant offered about one sixteen dollars for each Horizon share. Horizon stock closing Friday at ninety seven dollars and twenty seven cents shares jumping more than

eleven percent this morning in pre market trading. It's not a done deal yet, though people familiar with the matters say negotiations could still fall apart. Live to New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you, And we also have an acquisition involving Microsoft. The company has agreed to buy a steak in the London Stock

Exchange Group. The deal gives Microsoft a four percent equity holding as part of a new long term strategic partnership stakes part of a broader tenure agreement to help the London Stock Exchange owner developed data, analytics and cloud infrastructure using Microsoft's products. We'll staying in London now, Nathan. We have a couple of major storage that this morning centered on the UK economy. There's fresh growth data from the

UK as the country grapples with widespread strikes. Let's go to London and get the latest, Live with Bloomberg's James wild Clock. Good morning, James, Good morning from a frosty UK. Karen. The economy here expanded north point five percent in October as business recovered output loft in public holidays after the death of the Queen. But with strikes across the country affecting health, transport and education, the outlook is much grimmer.

You can already see that in hospitality, with pubs and restaurants saying Christmas party bookings are as bad as they were during COVID as people canceled due to rail strikes. The UK government is meeting this morning to discuss sending in the army to fill in for workers walking out in London. James Wilcock, Bloomberg, day break, All right, James,

thank you. And in banking news this morning, Reuter's is reporting the Morgan Stanley plans to cut investment bankers annual bonuses in Asia by as much as fifty percent this year. Scale the cuts and its Asia business could possibly reuplicated in the US and Europe, according to this report. Local headlines in the check of Sports. Next, this is Bloomberg. So five oh seven on Wall Street, we had thirty

two degrees in central parks. It's gonna stay Shuly today in the sunshine, highs only near forty degrees, and we're gonna get down to the upper twenties tonight. Welcome to winter's bringing. Amy Morris for look what else is going on in New York and around the world. Good morning Amy, Good morning Nathan. More than thirty years after the bombing of pan amp Like one oh three over lockerby Scotland that killed two hundred seventy people, including thirty eight New

Jersey residents, a suspect is in US custody. Bert Ammerman's brother Tom from New Jersey, says there's just no closure. The two daughters at the Times six and four wife. He was thirty six young. He didn't get to live his life. The suspect is expected to make a court appearance in Washington, d c. On criminal federal charges. New York subway officials are looking to avoid a budget disaster.

The Metropolitan Transportation Authority says it could face a budget gap of nearly three billion dollars by The New York Times reports they're considering raising the transit systems base fair a couple of times by just over three dollars. It would be the first time they've talked about raising fairs since the pandemic began. Forecasters say up to five inches of snow could fall on parts of northwestern New Jersey today. It is the first major snow event of the season.

Governor Phil Murphy cautioned motorists to be careful when driving north of It's, where a wintry mix of snow and ice is expected. It is the largest oil spill in Keystone Pipeline history, more than five eighty eight thousand gallons of crude. Officials say they've got the spill contained for now. Warren Martin is the executive director of Kansas Strong, a nonprofit organization that educates people about the oil and gas industry.

Spill is a little bit different than some of the past pipeline spills because it involves a body of water, and so it's not real certain how the e p A Is going to respond to that. They have to approve starting back up the pipeline, and so there's a remediing Asian process that takes place to clean up all the oil to analyze the pipeline. Industry insiders believe the

pipe will be up and running around December twentie. NASA's Orion spacecraft splashed down in the Pacific Ocean off the coast of Mexico yesterday, bringing a successful and to a twenty five day test flight that sent the uncrewed vehicle around the Moon and back to Earth. Artimist one helps pave the way for NASA's program to return humans to

the surface of the Moon. Global News twenty four hours a day on airand on Bloomberg Quick Take, powered by more than twenty d journalists and analysts in more than one hundred twenty countries. I'm Amy Morris. This is Bloomberg, Nathan Okay, Amy, thank you. Grown up to five ten on Wall Street time for the Bloomberg Sports Update, brought to you by Trice State OUTI. Good morning, John Stowns, Good morning Nathan. Everyone knew it was going to be a tough Sunday for the Jets and Giants, and sure

enough both teams lost. Jets were in it in Buffalo. Defense again played well, but for the second straight week, the offense pouced only one touchdown the Bills one twenty to twelve. Mike White in defeat seven of forty four. He took a beating twice said to leave after the game. White went to the hospital for for crostionary measures with

injured ribs. Jet bright Spot was rookie running Backsnovan ninety games seventy one yard scored the Jets only touchdown as for the Giants never ended at MetLife Philadelphia, with touchdowns on the first three possessions and a Giant's illegal punt didn't help things. Final was forty eight to twenty two, most points the Eagles have scored in a road game

against the Giants since nineteen seventy one. Philly now in NFL best twelve and one, six and oh on the road, while Brian Dabele's Giants winless in their last four games. You're winning, it's five. When you're losing this humbling. Um lose like this, you own it it. Don't make any excuses. They played well. Um, when we get to you know, have an opportunity to get ready and and play a big game on Sunday night. Yeah, that's a game in Washington.

Those two teams are tied, vying with Seattle for two wild card spots, getting some help yesterday when Seattle lost at home to Carolina. Next day, Hot their fourth win in a row. They've played great defense and all four at the Garden they beat. Sacramento is a good team this year. One nine nine R J Barrett, Julius Randall both with twenty seven points, all of those for Randall coming the first half. He got ejected in the second half, picking up a couple of technicals. Low scoring Battle of

New Jersey seating All forty five Rutgers forty three. No one either team scored more than ten points. Both teams are six and four. Paul Silas has passed away at the age of seventy nine. Played sixteen NBA seasons, won two championships in Boston. Was later a long time NBA coach John stash Were Bloomberg Sports Nathan all Right, John, thank you. Bloomberg Sports is brought to you. Buy OUTI don't let someone else drive off in the Outye model

you've always wanted. Visit your local Tri state autie dealer to get behind the wheel of yours today, or visit outie Offers dot com for more information, s andp futures right now up seven points down, futures up forty eight and nastac futures are hired by twenty six points. The tenure treasury up eleven thirty seconds yield three point five three percent. It's five twelve on Wall Street. This is Bloomberg Daybreak. At the start of a very busy week

for investors and for central banks. We are joined live this morning by Lori Calvacina, the head of US equity strategy at RBC Capital Markets. Lori, it's great to speak with you this morning ahead of a very busy week for central banks. You've got the FED on Wednesday and then a bunch of other decisions on Thursday. What kind of market reaction are you expecting from what we could see from the central bankers this week? All right, well,

thanks for having me as always naked. Um. Look, I think you know, the sort of the decision by the FED is pretty well understood at this point, but I think there's always equity investors are a tune to what the commentary is and sort of the color on where

things are going forward. And as I talked to investors, you know, I really do sense that they would like to be talking about something other than the FED in three so they would like to know I really kind of you know that we're we're still silt set on set,

closer to the end than the beginning of this hiking cycle. Um. I think if you get anything less, any advocation otherwise, I think that we are going to see rocky markets, and I do worry that, you know, we we do see a federal reserve that doesn't like having seen equity markets recovered as much as they have, and so there's always the risk in my mind that the FED could

try to talk things down a bit. Well, a lot of the talk we've been hearing from the FED up two now is that rates are going to have to stay higher for longer. Do you think the market has gotten that message. I think the market has gotten that message, but it is still a debate of exactly how high and exactly how long. Um So I think, you know, there is still some uncertainty in investors mind at exactly what the right level is. And I'll just give you a good, you know, good example, and this is more

on inflation than rates. But I was not talking to investors in Europe last week, and I found generally that most people are thinking of an inflation rate that's stay sticky in the US and around four percent, which seems a bit higher than what I've heard from talking to US based investors. So I do think there is still some room for debate and room for the market to really try to figure out some of those issues in

terms of specific levels going forward. So that is interesting because we did get the commentary just last night broadcast on sixty minutes from Treasury Secretary Janet Yelling with her expectation that inflation could drop pretty significantly by the end of next year. What's it gonna take for that to filter into this market? You know, I think that that is something that equity markets would very much like to see. And I think that, you know, I I sort of

told the investors I spoke with last week. I've talked to plenty of investors in the US have been doing the work on different inputs of inflation, different things that are associated with inflation, different leading indicators of inflation, trying to make the taste that things have been peaking and that things are set to moderate. Um. So again, I

think it's it's starting to get there. But I think it really is just a question of getting into the new year and really seeing that said rhetorics start to shift in a more significant way. Of course, we're going to get one last read on inflation tomorrow and the consumer price index before the FED decision. You're expecting any market volatility off the back of the CPI print. I think unfortunately. UM, there's always some market volatility, either heading

in or coming after. And I will tell you, Nathan, I think that we're just at a time in the year when nerves are really thin, people are a little bit on edge, and there's tremendous amount concerned about the outlook for three. So in general, when I'm looking at kind of these bigger, you know, sort of news events, I'm looking at them, you know, it's more of potential sources of reasons for investors to take profits and things

to sell off. In terms of twenty three, you mentioned earlier that markets would like to be speaking about anything other than the FED in three. What are you looking at in terms of other catalysts that they could move

markets and affect your outlook into the next year. Well, you know what was really interesting May than last week I heard a lot about recent dollar weakness, and again I was talking about for the European based investors UM, and then I was also hearing you know, a fair amount about China reopening that story UM, and also just the idea that Europe has been out performing the US.

So I think those are potentially you know, sort of new themes that investors could continue to gravitate towards next year. But I have to tell you, if you think about the US versus Europe, the US still looks extremely expensive. UM. So we're basically looking for a flat market next year. And I view that issue of expensive US valuations versus Europe is just another overhang at headwinds that you excualies have to contend with. What are you looking for in

terms of earnings for next year? We got a couple of notes just overnight, UH with the idea that earnings revisions may need to come down even further next year. Could that be a potential headwind for stocks? I think so. I think it is a complicated matter. We are at one which is well below the bottom up insensus, which has still been tracking up round two thirty to thirty one UM, and we have seen some strategists are down

in our neighborhood. Others are looking for more flattish type earnings. UM. I do think that that is a headwind simply because it creates volatility and individual stocks investors need certainty on multiples before they're comfortable coming into By that being said, we do typically see that most cuts and percentage terms are completed by April in most years of earning downgrades.

And additionally, if you look at the rate of revisions to the upside, we typically see that the SMP five hundred bottoms three to six months before estimates on individual companies stopped going down. So I think it's something that adds to volatility that need to reduce forecast. But I don't think it necessarily tells us we have to make a new low in the first half of the year. I want to get more on what's affecting your outlook

for the next year. Of course, it's something that a lot of analysts are talking about the expectation for what investments could do in three So we're going to continue this conversation with Lori Calvacina, the Ahead of US Equity strategy at RBC Capital Markets, in just the next few minutes.

So stay with us here on Bloomberg day Break. Right now, SMP futures are higher by seven points, down futures of forty Nasdaq futures on the rise by twenty six points this morning, and you're listening to Bloomberg day Break, markets headlines and breaking news twenty four hours a day at Bloomberg dot Com. The Bloomberg business outland at Bloomberg quick tape. This is a Bloomberg business lash and I'm Karen Moscow

and US DOT index futures are higher this morning. The dollar are racing in advance at the start of a pivotal week for monetary policy decisions from the Federal Reserve, European Central Bank and a host of their peers. We checked the markets all day long on Bloomberg radios and P futures up about seven points of almost two tens of upper Cental futures up forty two points or a tenth of upper cent, and nasday futures of twenty three points or two tenths of upper cent. The decks in

Germany's down the most, two tenths of uppercent. Ten year treasury up twelve thirty seconds. You have three point five three percent, and they yield on the two year four point three two percent. Nine next, Screwed oil is down six tenths per cent or forty cents, and seventy dollars sixty two cents of arrol coll Max School there is down four tenths per cent or seven oll There's fifty cents and eighteen o three thirty announced the euro one point oh five five nine against the dollar. British found

one point two two seven too. He had one thirty six point seven zero and bitcoins down a tensive a percent at about sixteen thousand, nine hundred dollars. And that's a Bloomberg business flash. Now here's Amy Morris with Moore on what's going on around the world. Any good morning, all right, thank you, Karen. Good morning to you. Some other news you'll need from around the world. O Libyan man suspected in the ninety eight bombing a fan amp like one oh three over Scotland is now in US custody.

A Department of Justice spokesperson says the alleged operative expected to make an initial appearance in the U. S District Court for the District of Columbia. The operator of the Keystone Pipeline system says they've finally gotten that breach under control for now after spilling more than five d eighty eight thousand gallons of crude into Mill Creek in Kansas. And sports, the NFL Bills beat the Jets, Ravens and forty Niners win, and in hockey the Caps and Bruins

both win. Global news to win four hours a Day on errand on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm anymore is this is Bloomberg Nathan okay, Amy, thank you for coming up to five twenty four on Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak, and Lorie Calvacina is back with us as promised head of US Equity Strategy at RBC Capital Markets. Laurie, I want

to get more on your view into three. We did a survey here Bloomberg News just a few days ago on the outlook, and seventy one percent of respondents you got back to us said they see stocks rising in three, the average around ten percent. They're thinking most of that gain is going to happen in the second half. Is that of you? You share? Hi? So, so listen. I think it's a fantastic question. I think your survey respondents are probably a little bit more optimistic from the south

side strategy community. I've been one of the more constructive ones on the next one. Outlooks with her aready one hundred target, which at the time we priced it was about a three percent game, so that was against late

November levels. But I will say the sort of view that markets are going to have a rocky start to the year and do better in the second half of the year, that is a view I share, um But one risk to that view is, frankly, that that is also a pretty consensus view, not just among your survey respondents, but among the south side strategy community right now. Um. So, I think we have to see how much of this

gets priced in in December. That's always something that happens when we roll over into in the year, and of course we have to see what the new stories are for the next year. But I do think we've got, you know, some issues to work through. Ultimately, I do think markets will be on stronger footing at the end of the year, but we've got a little bit of work to do to get there. I guess some of the issues I can think of to work through would include the war in Ukraine and how the reopening in

China is going to work out. What are some other potential head wins. Do you see those as major headwinds for this market? You know, I do see a Russia Ukraine is a major overhanging you know, I think I'm still digesting what's going on in China in terms of how that that impacts US equity markets. But the reality is that if you put those political issues aside, we've

got plenty of other issues. Um. I think you know, as I mentioned in the last segment, the US doesn't look cheap right now, um, not just versus European equities, but also we don't really look that appealing in the US equity market relative to bonds. And I will say that is something you know that just about any sort of crocess that indicator that I can run, I simply don't see a compelling case through US equities at this moment in time. And we've seen that in the past

that has impacted money clothed into the respect about st classes. Um. So I think that's one big issue we've got. I think another issue, you know, sort of related to earnings. But I think just the onsete of a more challenging economy is something that equity investors are going to have difficulty dealing with. Because we have been talking about the idea of consumer and corporate resilience for so long. I think that's going to engender discussions about whether or not.

We're on the precess of a deeper, longer, more lasting, durable type recession. And I'll just give you one sat Nathan. Historically, when you're in at you know, sort of GDP environments or zero to two percent in real terms on average and on a medium basis, the pop market is flat. So markets don't like that sort of very sluggish type growth environment that's anticipated right now if you look at

consensus forecasts. No, it is going to be very interesting to see how the federal reserve outlook for next year plays into what sell side and buy side strategists are thinking. When it comes to Lori Calvacina as always great to get your thoughts, Thanks again for being with us. Lori Calvacina, head of US Equity Strategy at RBC Capital Markets. Right now, SMP futures are up six points, down futures up forty five,

and NASTAC futures are higher by twenty one points. The tenure Treasury is up thirteen thirty seconds the three point five three percent Ahead of this week's FED decision and the inflation data. We'll get this morning's top stories and local headlines straight ahead. First, a look at today's Bloomberg Weather Forecast. Watch out for some slippery spots this morning, well north and west of the city. It looks like drier weather's headed our way and cloudiness will be giving

way to sunshine. We'll climb up to about forty today, clear skies Tonight the thirty downtown will be in the teens. In the suburbs, sunshine Tomorrow, We're close to forty, clear skies the thirty tomorrow night. High pressure will keep it

sunny through Wednesday, with heights around forty. I'm Rob Caroline with your three day forecast on Bloomberg eleven three oh broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg Elving Free to Washington, d C. Bloomberg nine to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine six to the country, Sirius XM to A one nine te and around the globe, the Bloomberg Business apt and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's live

twenty eight on Wall Street. Good morning on Nathan Hagar and I'm Karen Moscow and We're are just about four hours away from the open of US trading. Let's get you up to date on the news you need to know at this hour. US futures are higher this morning as we enter a big week for central banks. The Fed, ECB and Bank of England are is set to make policy decisions Wednesday and Thursday, and when it comes to the Fed, the Central Bank could be poised to shift

gears at least a little. And Bloomberg's Minny Deal Judais has more. The Fed has been tightening in a big way, winding up the last four meetings with jumbo seventy basis point rate hikes to fight inflation. Higher rates risk of recession, though, and economists see the Fed opting for smaller half point hikes, mindful that efforts to steer the US economy could drive it off the road. There's room for the Fed to keep tightening. Data Friday showed November's producer price and BIXS

top forecast. Moreover, Wall Street anticipates this week's date on US consumer prices will show no significant let up. An eat del Judais, Bloomberg day break, all right, Vinny, thank you, And the Treasury is weighing in on the inflation fight. Secretary Janet Yellen is cautiously optimistic that the Fed can win its battle against HIE. Prior says, I believed by the end of next year, you will see which lower

inflation if there's not an anticipated shock. Treasury Secretary Janet Yell until sixty minutes on CBS that she's seen positive signs, including lower shipping costs and reduced lag times for deliveries. Our listeners in Washington can hear sixty minutes Sunday nights at ten on Bloomberg Well and Deal News. This morning, Nathan am Jen is on the verge of making its

biggest deal ever. Let's get the latest live at the Bloomberg Steve rapp Aboard, Good morning, Steve, Good morning, Karen, and Nathan m Jen has reportedly agreed to buy Horizon Therapeutics at evaluation of twenty six billion dollars. Assuming the deal goes through, sources tell Bloomberg Nurse negotiations could still fall apart. The biotech giant offered about one hundred sixteen dollars for each year of Horizon, roughly twenty bucks higher

than the stocks closing price on Friday. Horizon chairs continue to climb this morning in pre market trading now up thirteen percent. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks for that. And we also have an acquisition this morning involving Microsoft, that companies agreed to

purchase a stake in the London Stock Exchange Group. The deal gives Microsoft a four percent equity holding as part of a new long term strategic partnership between the firms and G and GEO Political news here Nathan, the US will send a delegation to Shine on the coming days. The move follows up on President Biden's meeting with Chinese

President Chi Jin Ping last month. At the G twenty futures this morning are in the rise s and P futures up seven points, up about two tenths of upper sent DAL future is a forty seven or a tenth of upper cent, and nasday future is of twenty five or two tenths of upper cent. Ten. Your treasury up twelve thirty seconds. You know, three point five three percent they yield on the two year four point three two percent.

Nine x Screwed oil is falling down six tents of upper cent or forty one cents at seventy sixty one cents a barrel and comax s goold is down about half percent. Straight to hand your latest local headlines plus a check of sports, and this is Bloomberg. All right, Karen, thank you. It is five thirty one on Wall Street, and Amy Morris is here with a look at what's going on in New York and around the world. Amy, thank you. Nathan, President Biden and Treasury Secretary Janet Yellen.

Affirming US support for Ukraine, Yellin tells CBS is sixty minutes. American support will continue, quote as long as it takes thing we can to bring this war to a conclusion. Of course, we're providing considerable help um to Ukraine, both military and economic. USS promised thirty eight billion dollars in military aid and delivered thirteen billion dollars in direct aid to Ukraine. Already, New York officials a broken ground on a new Metro North line. Some are making way for

other projects. After announcing Penn Station Access will provide direct train service from the Bronx to Manhattan's West Side, Senator Chuck Schumer says he's still fighting to fund other major

infrastructure initiatives. New York is building the next generation of our public transit system that is going to help keep our city growing and includes the second phase of the Second Avenue subway line to extend into Harlem and the Gateway Project, which connects underground rail tunnels between New York and New Jersey. New Haven's first adult used recreational marijuana store is scheduled to open January. Affinity Health and Wellness

already operates a medicinal marijuana shop in Amity. The vast majority of customers are expected to pre order marijuana products then pick up the orders as they would at a pharmacy. Members of the Marine Mammal Stranding Center yesterday buried the carcass of a thirty foot humpback whale that washed ashore on a New Jersey beach over the weekend. Because of the state of decomposition, they were not able to determine the cause of death. It was believed to have been

younger than ten years old. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Amy Morris, This is Bloomberg. Nathan thanks Amy five thirty three on Wall Street time for the Bloomberg Sports up they brought to you by Trice State outa John Steen show. All right, Nathan,

Jets and Giants pretty much same boat. Exceeded expectations much of this season, but both now stuck on seven wins and now very much in the battle for a wild card playoff spot. The Jets and Buffalo trying to beat the Bills for the second time. They won the stats, more first downs, more possession time, They gained eighty seven more yard but the Bills won twenty to twelve to

costly second half fumbles. For Robert Sala's team, defensive are really nice job in both situations minimizing the damage, but two turnovers are always gonna bey. When you lose turnover battle, you're you're you're not giving yourself a chance to win of for Polon, Jets have now lost three to last four, all on the road. The next two games all right against Detroit and Jacksonville, and those teams are much improved. The Lions just beat the Vikings. Detroit's won five the

last six. The Jaguars just beat Tennessee by two touchdowns. That John It's next Day next Sunday night in Washington. That game, although a long way in determining whether they make the flowoffs. The Giants winless in their last four crushed at MetLife by Legally in Philadelphia forty eight to twenty two. The Eagles scored six touchdowns kicked two field goals. Big days for Jalen Hurds and Miles Sanders. The Eagles are now twelve and one. The Cowboys are ten and three.

They nearly lost in what would have been a massive upset, but Dallas scored late to beat Houston. Forty Niners stay Hot blowout went over Tampa Bay. Tom Brady beaten by Brock Purdy was making his first NFL start at the Garden. Next Day Hot one or fourth Row one twelve ninety nine over Sacramento. Rangers host The Devil's Tonight. John Stash or Bloomberg Sports Nathan, Thank you, John and Bloomberg Sports has brought to you by Autia. Don't let someone else

drive off in the outy model you've always wanted. Visit your local Tri state autie dealer to get behind the wheel of yours today, or visit outi Offers dot com

for more information. SMP futures right now up seven points down, futures hired by fifty two and NASDAC futures on the rise by twenty six points five on Wall Street time for the Tri State Business report with Bloomberg's ed Corey Barnberg is laid off about ten employees in New York, the German investment banks grappling with the quiet deals market these days. The staff work for Barrenberg's US unit, which

employs about eighty five people. In an emailed statement, as spokesperson said most of them worked in support functions for the four hundred thirty year old firm. G City, in Israel based commercial real estate company has agreed to sell Bridge Tower of building on Manhattan's Upper east Side for about one hundred fifty three million dollars. It's part of the group's strategic plan to sell non core assets. The transaction price is similar to the value of the building

in the company's books. Cannabis licensees will no longer be required to accept storefronts leased by the state, a move applicants who want more control over their retail locations will like. According to The Times, cannabis regulators have scrapped a rule requiring the state's first retail operators to accept storefronts as signed by the government. That your Bloomberg Dry State Business Report. I'm Ed Corey, alright, ed, thank you. It is five

thirty six on Wall Street. The following commentary is from Bloomberg Opinion. How Republicans lost their House edge in mid terms. I'm Justin Fox, the columnist for Bloomberg Opinion. Republican candidates got about fifty one percent of the votes cast for the House of Representatives in November and ended up with about fifty one percent of House seats. Seems fair. No, this is not how things worked from two thousand ten through two thousand sixteen, when Republicans won much larger shares

of House seats than votes. The disconnect was most pronounced in two thousand twelve, when democrats one point one percentage point winning vote margin resulted in a seven point six point loss in terms of seats. Jerrymandering after the two thousand ten censes played a role in this, but political scientists pointed out that Democrats were also just inefficiently distributed, dominant in big cities but present in large if ultimately losing minorities and much of the rest of the country.

Since Donald Trump was elected president in two thousand and sixteen, this distribution is shifted and the Republican edge has dwindled. I'm justin Fox. For more opinion, please go to Bloomberg dot com, Slash Opinion or O P I n go on the Bloomberg Terminal. This has been Bloomberg Opinion. Listen for Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at O P I n go.

It's now five thirty eight on Wall Street. Stay with us here on Bloomberg Daybreak for a conversation with Bloomberg's read Stevenson. He's got the big Take story on the Bloomberg Terminal this morning on Carlos Gone and the extraction crew that just made its way out of custody in Japan and is now looking for their due. Stay with us for that ahead of it. SMP futures are up seven points, staff futures up fifty five, Nasty futures up

twenty eight. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg quicktake. This is a Bloomberg business lash and I'm Karen Moscow. US not Index futures moving higher this morning. The dollar are racing in advance at the start of a pivotal week for monetary policy decisions from the FED, the European Central Bank and a host of their peers. We checked the markets all day long.

Here at Bloomberg SNP futures of eight points or two tents of uppercent. Down futures are up about the same of fifty eight points, and nastack futures have a quarter percent or twenty nine points. The decks in Germany is down about two tents of upper cent. Can your treasury up twelve thirty seconds held three point five three percent. They yield on the two year four point three two percent.

Nine x Scrude oil is down six tents percent or forty three cents at seventy dollars fifty nine cents of barrel comics gold is down half percent or nine dollars thirty cents at eighteen o one fifty announced. The euro one point oh five five nine against the dollar. British found one point to two eight six the yen one thirty six point seven three and that's a Bloomberg Business Flash. Now here's Amy Morris with Moore on what's going on

around the world. Amy, thank you, Karen. Florida Governor rond De Santis thanked some of his South Florida donors at a closed door meeting. This was in Miami yesterday, where sources tell Bloomberg News to Santis noted how his victory could be a blueprint for Republicans in the future. Scientists in California now say they've made a breakthrough in nuclear fusion technology, producing more energy than consumed in a reaction

for the very first time. The achievement was made at the U S Department of Energies Lawrence Livermore National Laboratory near San Francisco. In sports, in the NFL, the Bills beat the Jets, Giants lost to the Eagles, Ravens and forty Niners win. And hockey the Caps and Bruins win, and the NBA the Knicks beat The King's Global News twenty four hours a day on errand on Bloomberg Quicktake, powered by more than twenty seven journalists and analysts in

more than one hundred money countries. I'm Amy Morris, and this is Bloomberg. Nathan alright, Amy, thank you. It is five forty two on Wall Street. This is Bloomberg Daybreak. I'm Nathan Hagar alongside Karen Moscow. Take a look at some of the other stories making news this morning. Wall Streets focus this week will be on inflation data and the Fed, but there are still a smattering of earnings reports ahead. Let's get the details now from Bloomberg's Charlie p. Fellott.

Worries about how far central bankers will go to rain in inflation have kept investors on edge, and there is a great deal of uncertainty surrounding the earnings outlook. Kate Moore's head of thematic strategy at black Rock. Really, no one knows what earnings are gonna look like in I feel bad for the analysts that have to put out forecast when the uncertainty factor is so incredibly high and

you can't make either evaluation or at earnings argument. Among this week's earnings reports are Accenture, Adobe, and Oracle in New York. Charlie Pellot Bloomberg Daybreak. All right, Charlie, thank you. A two prominent strategists are warning about future profit downgrades. Morgan Samley's Mike Wilson and David Coston at Goleman SAX say earnings could contract more than expected next year. They say emergens could come under increased pressure and provide a

difficult backdrop for equities. Both Wilson and cost and see a tough start for stocks I meantime, across the pond, Care and Fresh data show the UK economy expanded in October. Businesses managed to recover output lost following the death of Queen Elizabeth. The second Gross domestic product rows five tenths percent from September, which included an extra public holiday for the Queen's funeral and a period of national morning. But when you look on a quarterly basis, GDP shrank three

tenths per cent. UK Chancellor Jeremy Hunt weighed in on the downbeat data, well, these figures confirm that this is a very challenging economic situation here and across the world, and it will get worse before it gets better. But we have a plan that will more than half inflation over the next year and if we stay the course, we can get back to the strong economic growth that

we need. Chancellor Jeremy Hunt spoke earlier this morning. The outlook could leave the Bank of England deeply divided this week over how much to raise interest rates to fight inflation. Well. Staying in the UK, Nathan, the government is planning for military staff and civil servants to cover for striking rail, health, postal and other workers in the coming weeks. Strikes your plan for almost every day through the rest of the month.

Workers are demanding pay hikes that keep up with inflation, resulting in the biggest weave of industrial strife in the UK since the eighties. This is the Big Take, the best of Bloomberg's in depth original reporting from around the globe. This is a really fast moving story that caused a lot of outrage among investors. This is so fascinating market shutdown in a way it's never done before. That's gonna

have consequences for years to come. The Big Take on Bloomberg Radio coming up to five on Wall Street and this morning's Bloomberg Big Take is on Carlo Scone, former Nissan chairman, and the price paid by the American father and son extraction team that facilitated his daring escape from Japan. Joining us now with is the author of the Big Take story this morning Bloomberg's read Stevenson read, it's good to have you with us. Thanks so much for this.

Of course, a lot of us are familiar with the Carlos Gones story, but maybe not so familiar about Michael and Peter Taylor, the father and son who helped in his extraction. Tell us more about them, well, Nathan, it was about three years ago, almost to the same month that Carlos gone. Stage is dramatic to escape out of Japan. You know, it's one of those stories that you almost never hear about in business news, and so it captured the world's attention, and uh to a certain extent, it's

been forgotten since then. You know, Going is now in Lebanon fighting to restore his reputation, although it's unlikely he'llever

be facing a judge in a court anytime soon. But the other forgotten part of the story is the cost that you know, others have paid four Carlo Stone's freedom, namely Michael Taylor and Peter Taylor, who were unexpectedly extradited from the US to Japan last year and then spent sixteen months in um the Japanese prison system, which you know, some say is much harsher than you might imagine compared

to the US. And now they're out, they're back in the US and also back in by route, and they're telling their story both in terms of the sacrifices they made, what they think they are owed for their ordeal, and as well as some you know, new details about the escape that have never been made public. Yeah, it's a really interesting story, particularly coming after the news last week about Brittney grind Or in the negotiation for her release

from Russia. Michael and Peter Taylor from your reporting, don't mince words when it comes to how they feel about the Trump and Biden administrations. Essentially, they feel like they were forgotten, weren't they by those administrations in terms of their captivity. Indeed, Um, I think, you know, it's easy to sort of maybe speculate as to why, but the fact remains that, uh, you know, nobody really stepped in when the extradition process was happening under the Trump administration.

In fact, it happened unusually quickly, and then of course, once a new administration and was in place, Um, the Biden administration also had a chance possibly to put a stop to proceedings, but that didn't happen either, and so therefore, you know, father and son were promptly shifted Japan where they pleaded guilty in a bid for leniency. Who knows whether they actually got the leniency or not, but some of the conditions they had to go through were pretty harsh.

Nineties straight days and solitary. And uh. I also heard from Michael Taylor that you know, he tried to call his dying father and never got a chance to do so. Wow. And now they are finally out of the Japanese legal system and as you say, looking to get what they see as their due from Carlo Stone, as the former Nissan chairman tries to rebolster his reputation. What are they looking for from Carlos Stone? You've got about a minute left here. Indeed, Um, Michael Taylor never did this for profit.

He has a history of going and helping objective children other people in trouble. So at the moment, what they're really just looking for is to be made whole. Um. The escape itself costs about one point three million dollars, I'd say about a two thirds of that had been paid, so they're looking for the remainder. But then of course there are some astronomical legal costs involved in fighting the extradition and navigating the Japanese legal system. Those amount to

roughly three million dollars. So at the moment, what they're really looking for is to be made whole. And perhaps, you know, there may be a discussion about something on top of that, but that's another chapter to be written in this crazy story. Yeah, and it's a story that is really fascinating to get more details on, as you mentioned, one of those forgotten sidebars from the Carlos Going saga. Thanks for this read great having gone with us once again.

Read Stevenson and Bloomberg News, the author of this morning's Big Take on Carlos Gone and his extraction crew. You can read much more about it at Ani Big Take Go on the Bloomberg Terminal or Bloomberg dot com slash Big Take. Future is moving higher this morning. You're listening to Bloomberg Daybreak, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktake. This is a Bloomberg Business

Flash and I'm Karen Moscow. You must knock index futures higher this morning the dollar are racing on advance. We

check the markets everything. We check the markets all day long here at Bloomberg Radio with S and P futures of eleven points or about three tens of Uppercental futures up seventy eight points or two tents of upper cent, and as deck futures have forty three points are about a third of up percent to your treasury of fifteen thirty seconds, you have three point five two percent, and they yield on the two year four point three two percent.

Nine max Screwed oil is lower down nine tenths of upper cent or sixty one cents at seventy dollars, forty one cents of barrel comes. Gold is down four tenths of uppercent, down seven dollars ten cents, and one thousand,

eight hundred three dollars sixty cents. Announced the euro this morning one point oh five six were against the dollar, British pound one point to to eight five, the yannas at one thirties six point six eight, and bitcoins lower down seven tenths of upper cent at almost seventeen thousand dollars. And that's a Bloomberg business flash. Nathan Karen Thank you. It's fifty six on Wall Street Time for our daily

Bloomberg Lab Brief, exploring legal issues in the news. Today, we look at a case involving Harvard's former fencing coach and a telecom ceo. They're facing a jury over charges that they corrupted the admissions process at Harvard. In a case with echoes of the Varsity Blues admission scandal, Jack Joo, ceo of I Talk Global Communications, is accused of bribing coach Peter Brand to the tune of more than one and a half million dollars to help get his two

sons into Harvard by having them designated fencing recruits. Key point at trial is going to be whether the defendant's actions harmed Harvard. For more on the case, Bloomberg's June Grosso speaks with our legal reporter Laurel Culkins and what's the defense the explin nation for all that money? Generosity? Defense says, you know, it's the cultural thing. The Zals are wealthy and from the Chinese tradition of being generous

with their friends. And by the way, they say now, and they did not say this in any of the pre trial filings, but they told the jury on opening day. This was all alone that Peter Brand got an inheritance from his mom recently and paid everything off with interest. Of course, that also happened after he was indicted, and of course the prosecutors are going nuts, what do you mean there's no evidence that it was ever repaid. So the prosecution is actually trying to get the judge to

say they have to take all that back. And they can't tell any of that to the jury because it doesn't matter what happened after the indictments. So what's gonna be interesting to see what happened now. The defense says Joos sons were nationally ranked fencers, outstanding athletes, and good students who were admitted on their own merit, but you never know with college admissions, and the prosecution says that Jaw didn't want to take any chances that is, some

would be rejected, exactly. And you also have to recognize that the two sons are not exactly equal. They both had outstanding academics which qualified under Harvard's admissions, and then they both were competitive fencers. Shall we say the elder son actually went on to become co captain of Harvard's fencing team and was second strain all Ivy, so he clearly was talented. The younger son also competed for Harvard. He racked up, you know, some honors, but not as

much as his brother. But the other thing is with Harvard, unlike some of the other colleges, the coach can't just say this is my recruit and they automatically get in. Harvard has a kind of a whole student evaluation process, and there's an interview and a committee process, so it will very much tips the scale in your favor, but it's not a deadlock. So I think Zoo was trying to tilt that scale as much in his son's favor as possible. But a big point in the trial is

going to be was Harvard harmed? Because the zo's technically qualified for admissions on their own merit. They competitively for Harvard all four years that each boy was there, and they both paid full tuition. They didn't get any scholarships, so it's a question did Harvard get harm who's the victim? Here?

That's Bloomberg Legal reporter Laura Culkins speaking with June Grosso, and you can catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law podcast or downloading the show at Bloomberg dot com. Slash podcasts and attorneys can find exceptional legal research and business development tools at Bloomberg law dot com and on the Bloomberg terminal at b Law go right now. S and b Futures up ten points, stole Futures up seventy one,

nastac Future is hired by forty one points. Tend your treasuries up fourteen thirty seconds of the yield three point five two per cent, straight ahead and check of the latest business headlines. All the news you need to start your day. Our two of Bloomberg Daybreak starts right now.