Bloomberg Daybreak: December 12, 2022 - Hour 2 (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. I'm John Stash Howard Sports. The Giants got blown out by Philadelphia,

the Jets lost in Buffalo, the Nicks beat Sacramento. That's all s traded 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 Sirius x M 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 do index futures around the rise this morning six on one on Wall Street, and we check the markets all day long here at Bloomberg, with SMP futures up nine points or a quarter percent, AL futures up sixty two points or two tents of uppercent, and nasday futures are up three tents of uppercent or thirty six points. The decks in Germany is down about two tents of uppercent. Ten.

Your treasury of fourteen thirty seconds, you know, three point five two percent, and the yield on the two year four point three each two percent. Nathan Karen, we begin with a big week for central bank decisions, both here and abroad. We get the preview this morning from Bloomberg Smichael McKee. Are you ready for risk? We have a host of major market moving events this week. Tuesday, usc 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, Bluemberg daybreak Right, Mike, thanks well. So far the juries out on whether central banks are winning the war on inflation, but Treasury Secretary Jennet 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 who feel good about their finances. In an interview as 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 get here sixty minutes from CBS Sunday nights at ten on Bloomberg. Support for Ukraine will be high on the agenda, Karin, 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 at China on the coming days. The move follows up on President Biden's meeting with Shandy's President she Jan Paying last month to g Tway. The two countries have plenty of disagreements, including over Taiwan and US move to limit China's economic and technological influence. Oh Yeah, moves on 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 said. Baxter 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 a democracy and the peaceful transfer of power. Less than two weeks until the curtain comes down in San Francisco, I'm at Baxter

Bloomberg day Break, Thanks and turning to the markets. Now, we have a couple of deals to kick off the week, including breaking news in the biotech industry. We get the latest live with Bloomberg. Steve A. Rappaport. Good morning, Steve, Good morning Karen and Nathan. What a difference in our makes. It is now a deal. Mgen will buy Horizon Therapeutics at a hundred sixteen dollars and fifty cents per share cash.

That is the largest acquisition for the company to date, and it is almost twenty dollars higher per share than Horizon Therapeutics closing price on Friday. Once again, it is now official and Jen will buy Horizon Therapeutics in what will be the company's largest acquisition to date. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you. We also have an acquisition involving Microsoft. That company has agreed to buy a stake in the London

Stock Exchange Group. The deal gives Microsoft a four equity holding as part of a new long term strategic partnership, part of a broader ten year agreement to help the London Stock Exchange owner developed data, analytics and cloud infrastructure using Microsoft products. Well staying in London, now, Nathan, we have a couple of major stories this morning centered on

the UK economy. There's fresh growth data from the UK as the country rapples with widespread strikes, and we go to London and get the latest live at the Bloomberg's James to Wilcock, Good Mornings, James, Good morning from a frosty UK. Karen. The economy here expanded nor point five percent in October as business would covered 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 cancel 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 bloom Bag daybreak,

All right, James, thank you. And in banking news this morning, Reuter's is reporting Morgan Stanley plans to cut investment bankers annual bonuses in Asia by as much as fifty percent this year. According to the report, the scale of those cuts in the Asia business could possibly be replicated in the US and Europe. Sub futures of eight points, Stafle futures of fifty two, Nastack futures higher by thirty two points. Straight ahead, your latest local headlines and a check of sports.

This is Bloomberg Sounds six oh seven on Wall Street. One degrees in Central Park, sunny but chilly today. High is only near forty degrees getting down to the upper twenties tonight. And Amy Morris is here now with more on what's going on in New York and around the

world on this chilly morning, Thank you Nathan. More than thirty years after the bombing of pan amp Like one oh three over Lockerbee, Scotland that killed two hundred seventy people, including thirty eight New Jersey residents, suspect is now in US custody. Bert Ammerman's brother Tom from New Jersey, says there is no closure. Two daughters at the time, six and four, a 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 are considering raising the transit system's base fair a couple of times by

to just over three dollars. It would be the first time they've talked about raising fair since the pandemic begin. Safety upgrades are coming to railroad crossings in the Hudson Valley. Senator Chuck Schumer has unveiled new plans to spend more than one hundred million dollars on those improvements. Schumer also wants to invest money in Newcastle to build a bridge. It is the largest oil spill in Keystone pipeline history, more than five eight thousand gallons of crude. Officials say

they've got to contain for now. Warren Martin is executive director of Kansas Strong, a nonprofit organization that educates people about the oil and gas industry. This oil 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 remediation process that takes place to clean up all the oil to

analyze a pipeline. Industry insiders believe the pipeline will be up and running again around December twenty NASA's Oriyan spacecraft splashed down on the Pacific off the coast of Mexico yesterday, bringing a successful end to a twenty five day test flight that sent an unscrewed vehicle around the Moon and back to Earth. Artemis one helps paved the way for NASA's program to return humans to the surface of the Moon.

Global News twenty four hours a day on air, and Don Bloomberg Quick Take, powered by more than twenty journalists and analysts in more than one twenty countries. I'm Amy Morris. This is Bloomberg, Nathan. Thank you, Amy. Six o nine on Wall Street. Time for the Bloomberg Sports Update, brought to you by Trice stayed out he Here's John stash Our. Thanks DAF and everyone knows. Gonna be a tough Sunday for the Jets and Giants. Showing enough, both teams lost.

Jets were in it in Buffalo. Their defense again played well, but for the second straight week, the offense produced only one touchdown the Bills on twelve Mike White in defeat twenty seven of forty four. He took a beating sat four times twice he had to leave the game, and after the game, White went to the hospital with injured ribs, a precautionary measure. A Jet bright spot was rookie running back Zonovan Whitey games seventy one yards scored the Jets

and only touchdown. As for the Giants, never in it at met Live Philadelphia score touchdowns on the first three possessions of Giants illegal punt didn't help matters. The final is forty eight to twenty two, most points. The Eagles have scored in a road game with the Giants since nineteen seventy one, and Philly's already in the playoffs in NFL Best twelve and won six and oh on the road. Bryan day Boles Giants winless in the last four games

winning it's when you're losing this humbling. Um Love was like this, you own it. It'll 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 on Sunday night. Yeah, that's the game in Washington, moved to prime time. The two teams had the same record. The winner will own the tiebreaker. They're in a battle with Seattle, three teams buying for two playoff spots. Giants got some help yesterday when the Seahawks lost at home

to Carolina. Next day hot their fourth trade win. They played great defense in all four at the Garden beat Sacramento. Who's a good team this year? One twelve ninety nine. R J Barrett, Julius Randall both with twenty seven points all twenty seven for randall come in the first half. Third quarter we got ejected, picking up two technicals. Low scoring Battle of New Jersey Seaton Hall forty five Rutgers forty three. No one scored more than ten points. Both

teams were six and four. Paul Silas has passed away at seventy nine, played sixteen seasons for five NBA team. John Stash Bloomberg Sports. Thanks John, Bloomberg Sports has brought to you by Audie. Don't let someone else drive off in the Audi model. You've always wanted to visit your local Tri state Audie dealer to get behind the wheel of yours today, or visit Outie Offers dot com for more information. SMP futures now up ten points, staff futures

up sixty eight. NAS deck futures are higher by thirty eight points ten. Your treasury is up fifteen thirty seconds. The yield on the benchmark three point five two percent six twelve on Wall Street. This is Bloomberg Daybreak on a week that is going to be focused on central banks here and around the world. It's bringing David Rosenberg ahead of all these decisions. The founder in chief economist and strategists at Rosenberg Research. David, it's good as always

to speak with you. Give us your expectations on what we could see first off from the Federal Reserve on Wednesday. Well, I think that the Fed is a pretty easy call in terms of what they're gonna do on rates. Fifty basis points is baked in the cake. I think the only issue is going to be the tone of the press statement, the cadence at the post meeting press conference by Powell, and of course the markets will be fixated

on the dot plots. But I'd say that now that the futures markets already priced for the terminal rate at five percent, which is what the Fed's are already signaled. Uh. I don't really know what the potential is going to be for any big surprise. We have heard a pretty strong drumbeat, particularly from FED Chairman Powell, the latest from the Brookings Institution speech about the need to keep rates higher for longer. Do you think the market has gotten

that message? Well, I guess it's like the debate about transitory What does for longer really mean? I think people tend to think that once the Fed pauses, uh, the the pivot or the rate cut happens like the next month. It rarely, if ever, happens that smoothly. Usually the lag is about six months, And interestingly enough, the markets are priced for the fit to be done at five by May, and the futures markets pricing in two rate cuts by the end of the year, which by and large would

follow the historical script. So I don't think that longer necessarily has to mean the Fed is going to be keeping rates of five percent for twelve or twenty four months. To be hired for longer will mean getting the five percent if they get there, and in keeping it there for a couple of quarters as they assess how the

economy and the inflation backdrop is performing. Let's just say one thing, Okay, we heard from Janna Yellen in the past few days, not just once, but twice in the course in sixty minutes, where she's coming out and saying that she doesn't expect inflation just be lower. She's saying it's going to be much lower. And I don't think that, you know, she meets with Powell frequently. I don't think she'd be going out with comments like this without his

not of approval. So I think that really points towards a less hawkish bias out of the FED online day in my opinion, interesting, do you think the FED has gone far enough with the fight against inflation? Do you think it's gone too far? Well? I think that the truth is always in the yield curve, always the much maligned yield curve. You know, it's interesting that all the economists of the analysts and strategists never have a problem

with the yield curve. When the FET is easing into a steep yeel curve, of course, that just paves the way for unrelenting positive economic growth and reflation. But all of a sudden, you know, when the FETE starts to tighten in versus the yel curve, we have this big debate about the veracity of the yeld curve. It's used to only work for most ball Street strategists in one direction.

But the fat is tightening, has been tightening into an inverted yeel curve at the extent that we hadn't seen since Paul Bulker uh in, and we already know what happened in two Okay, we had a steep recession, uh and we had inflation melt. So I think that's going to be the prognosis. So you're gonna ask me to the FED overdo it. Well, Look, if their goal along was to cause the conditions for a contraction and aggurate demand to cure the inflation battle, well this is exactly

we're going to be getting. So I'm not going to say that the FETE has overdone it. This is probably what their goal was, tightened aggressively into an inverted yel curve. The ball market hasn't screaming uncle for months now, and we're going to get the recess and inflation in every recession, even in those god awful staturation periods of the nine seventies. In recessions, demand destruction overtakes. Whatever an elastic supply we have an inflation melts. And that's the story for now.

The other story that we heard from Treasury Secretary Yelling in that interview last night was that she doesn't think necessarily that there has to be a recession for the FED to get the fight done against inflation. Of course, the yield curve is as adverted as it's been since the early eighties. So who's getting it wrong, David, Well, she didn't say, Well, she actually said that inflace that recession is still a risk. But I mean, what do you want, really, she's a politician, Uh, she works for

the administration. You really expect her to come out and say, oh, we're going to have recession for sure in the coming year. To me, actually, the fact that she even said that there is a risk that we have recession, that was what was important. But you can't expect a cabinet remember to come up and say we're going to have recession

for sure next year. Who does that? Um? But the reality is that if we emerge without a recession, given the message from the bond market, the extent of the inversion of the bond market, whatever part of the curve you want to look at, if we escape lit to recession, it will be the first time that's ever happened. And tell me how well the refrain of it will be different this time? How well has that worked more investors

in the past. All right, we're gonna go too. Well, right, Well, we're going to continue this conversation in the next few minutes here with David Rosenberg, founder and chief economist at Rosenberg Research. Want to get your thoughts, David as well on what we could get from the final inflation print before that FED decision on Wednesday, and as well as the other central banks coming out with policy decisions of

their own. So stay with us here on Bloomberg day Break because we keep the conversation going here with David Rosenberg, the founder in chief economist at Rosenberg Research. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Outland at Bloomberg Quick Take. This is a Bloomberg Business Flash, and I'm Karen Moscow. This updates brought to you by the

Jewish Communal Fund. For fifty years, philanthropists at all levels have turned to JCFS donor advice funds to streamline their charitable giving. Visit j c f n Y dot org. U stock index futures on the rise this morning, and we check the markets all day long here at Bloomberg with SNP Future is up about twelve points or three tens of a percent down. Future is up sixty six or two tents of up percent, and NASTAG futures up

thirty nine or a third of uppercent. The tenure Treasury up sixteen thirty seconds L three point five one percent at a yield on the two year four point three one percent. Nimex screwed oil is down seven tenths per cent or forty seven cents at seventy dollars fifty six cents of barrel Comex golled down three tenths per cent or found dollars twenty cents at eighteen oh five fifty announced for watching shares of Horizon Therapeutics this this morning

at more than fourteen percent in early training. As we've been reporting, it's being purchased by am Gen and a cash deal worth almost twenty eight billion dollars. That's a Bloomberg business flash. Now here's Amy Morrish with more on what's going on around the world. Amy Karen Olivian. Man suspected in the night eight bombing of pan amp Like one oh three over Scotland is in US cost to

the Department of Justice. Spokesman says the alleged operative expected to make an initial appearance in the U S. District Courts Court for the District of Columbia. A US helicopter rate has killed two Islamic state officials in Syria. U S Central Command says one of the people killed in yesterday's raid was a provincial official in Eastern Syria who was involved in plotting and carrying out the terrorist groups operations.

In sports, in the NFL, the Bills beat the Jets, the Giants lost to the Eagles, Ravens and forty Niners win. In hockey, the Caps and Bruins win, And in the NBA, the Nicks beat The King's Global News twenty four hours a day on aeron on Bloomberg Quick Take, powered by more than journalists and analysts in more than one twenty countries. I'm anymore as and this is Bloomberg. Nathan all right, Amy, thank you to six three on Wall Street. I'm Nathan Hagar.

This is Bloomberg day Break, brought to you by ancient accountants and advisors, the right fit tax and accounting firm that you need to succeed. Visit the man ancient dot com slash v i P to learn more. That's ancient dot com slash v i P. And we're back with David Rosenberg, now founder, chief economist and strategists at Rosenberg Research, as we look ahead to the FED decision and all the other central banks later on this week. Ahead of that, David of course, we get one last read on inflation

in tomorrow's Consumer Price Index. We had producer prices come in a little bit hotter than expected last week, though still trending lower. Does that inform what we could see from the consumer data tomorrow, Well, I don't think so. I know that a lot of shall we say, pundits we're pointing to the outsized pp I number on Friday, but the entire delta between the actual and the expected on the p p I and the core came from this bizarre four seasonally adjusted surge in financial sector fees.

Outside of that, the headline and core pp I word inline with consensus estimates, the consensus for this week headline and core plus point three seems uh. Seems right for me. But I would say that what's more important is the outlook for inflation and the big break we've been seeing in the past several months. Finally, is the deflation we're now seeing in rental rates in real time uh, and

that will morph into a real significant slowing in. It will fill bottleneck for the CPI data, which is the o E R and the rental rents um To me, that's going to be more important for this week's number on the c P. I I think plus point three is probably about right. I don't think it's going to have a big market impact. So does that have any impact then on the rate trajectory for the Fed heading into twenty three, Well, I think that you know what's at play here isn't so much the near term. The

Feds laid down its cards. They need to see multi month um slowing in inflation, core inflation. So as risk managers, they're probably going to continue to raise rates into the early part of next year. I think they'll pause. The only debate, the only debate. The debate isn't five percent terminal that's in the market. The debate is what or not the Fed is going to after pauses, which is inevitable after a tightening cycle, especially one as precious like this.

Is when do they start to cut rates. And you'll start to cut rates once they start to see inflation go down significantly over a multi month period and when they start to see get employment rate begin to hook up. And I think that will be the story in the second happen next year. And I said before the markets are priced the two rate cuts by the end of next year, that's where the debate. The debate is really at this point, when does the FED start the eventual

easing cycle and by how much. My sense is that just like in the aftermath of every easing cycle, tightening cycle, just like when we just saw the rate cut cycle is probably gonna come a little earlier. And as they say, you know, the harder they go to the heart of they fall. I know you can't convince anybody today that the Fed is going to be easy policy aggressively in the second happen next year, but I think that is

a very good chance that it will. It's gonna be very interesting to see what, if any clarity we get from the Fed when the decision comes on Wednesday, and of course the news conference from Chairman Powell Wednesday afternoon. David Rosenberg of Rosenberg Research, thanks for your insights ahead of all that this morning. Great having you on with us. Got your morning stop stories just ahead, plus the check of markets. First. Bloomberg Meteorologist robbed Carolyn with your forecast,

Clouds give way to sunshine today is slow pressure. Heads out to see the weather improves across the Tristate area. Temperatures today up close to forty degrees clear tonight thirty. It's gonna be colder in the suburbs. I press you linger across the area. Marble have more sunshine, heights near forty clear tomorrownight to thirty, sunny skies for Wednesday with

temperatures close to forty. I'm Rob Caroline with your three day forecast on Bloomberg eleven three oh broadcasting live from the Bloomberg Interactive Broker's studio in New York, Bloomberg elov In Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one O six one does San Francisco, Bloomberg N 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 Wall Speak. Good morning.

I'm Nathan Hagar and I'm Karen Moscow, and we're nearly three hours away from the open of US trading. It's time for the five things that you need to notice start your day. Brought to you by I B k R. Investment Advisers switched to Interactive Brokers for lowest cost global trading and turnkey custody solutions, no ticket charges, and no conflicts of your interests at ibk r dot com slash r i a first. US futures are higher this morning

as we enter a big week for central banks. The FED, ECB and Bank Aving letters said 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. Bloomberg's Finnydale Judais reports 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 Show November's Producer price and Bick Top forecast. Moreover, Street anticipates this week's date on US consumer prices will

show no significant let up any TERRYL. Judaicce Bloomberg Daybreak, 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 high prices. I believed by the end of next year, you will seem which lower inflation if there's not an anticipated suck. Secretary 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 Deale News. This morning, Nathan, we had breaking news within this half hour, am Jen announcing his biggest acquisition ever, and we get the latest live with Bloomberg. Steve Rappaport, Good morning, Steve, Good morning. That's right, Karen and Nathan, it's official. The biotech giant is buying Horizon Therapeutics for sixteen dollars in

fifteen cents per share in cash. That offering about twenty higher than the closing price of Horizon stock on f Day. The deal values Horizon at about twenty seven point eight billion dollars on a fully diluted basis. Pre Market movement is mixed following the announcement, with Horizon up about fourteen percent, while Mgen is down more than two percent. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Alright, Steve, thank you.

We also have an acquisition involving Microsoft. The companies agreed to buy a stake in the London Stock Exchange Group. The deal gives Microsoft a four percent equity holding, is part of a new long term strategic partnership between the firms. And in Geo Political News, Nathan the US will send a delegation at China on the coming days. The move follows up on President Biden's meeting with Chinese President Sheijin

Paining last month at the G twenty. And that's the five things you need to know to start your day, brought to you by Interactive Brokers. Futures this morning are on the rise. SNP futures they're up about twelve points, are up three tens of uppercent. Down futures up sixty six points or two tents of upper cent and as DEEG futures up a third of upper cents. Straight ahead your latest local headlines, plus a check of sports. And

this is Bloomberg. Thanks Karen sixty one on Wall Street and Amy Morris has more on what's going on in New York and around the world. Good morning, Amy, Good morning Nathan. President Biden and Treasury Secretary Janet Gallen affirmed US support for Ukraine yell and telling CBS IS sixty minutes that American support will continue quote as long as it takes. We're doing everything we can to bring this ward. With conclusion, of course, we're providing considerable help um to Ukraine,

both military and economic. The US has 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, but 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'll be fighting

to fund other major infrastructure initiatives. New York is building the next generation of our public brands, its system that is going to help keep our city growing, which 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 medical marijuana shop in Amity. The first majority of customers are expected to pre order those products, then pick up those orders as they would in any 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 airand 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. Thank you, Amy. Six thirty three on Wall Street, Time for the Bloomberg Sports Update, brought to you by Trice Stayed out of

here again. It's John stash Out, Okay, Nathan. Jets and Giants pretty much in the same boat. Exceeded expectations for much of the season, but both struggling the past month, stuck on seven wins, both very much in battles for wild card playoff spots. Jets in Buffalo trying to beat

the Bills for the second time. They won the Stacks more first downs, more possession time, They gained eighty seven more yards for the Bills won the game, which one to twelve to costly second half bumbles for Robert Sala's team. Thought defensider a really nice job in both situations minimizing the damage. But two turnovers are always gonna When you lose turnover bell, you're you're you're not giving yourself a chance to one. The ball Jets have lost three the

last four, all on the road. The next two games are against Detroit and Jacksonville. Those teams were much improved. The Lions just beat the Vikings, Detroits won five the last six, and the Jaguars just won at Tennessee by two touchdowns. The John Giances next game next Sunday night in Washington. That game will go a long way in determining whether they make the playoffs. The Giants winless in their last four, crushed at MetLife by legaland in Philadelphia

forty eight to two. Eagles scored six touchdowns, three in each half. Big days we built Jalen Arts and Miles Sanders, and the Eagles already in the playoffs. They're twelve and one. The Cowboys are ten and three. Nearly lost, but would have been a massive upset, but Dallas scored late to beat Houston forty nine. Ers stay hot one by four

touchdowns over now under five hundred Tampa Bay. Tom Brady beaten by Brock Purdy, who was making his first NFL started the garden next one or fourth row one twelve ninety nine over Sacramento. John Stashillard Bloomberg Sports na Okay, John, thanks for Bloomberg Sports Fronts. You buy Audie, don't let someone else drive off in the outie 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. SMP features now up eleven points, staff futures are higher by fifty eight and NAZAC futures on the rise by thirty seven points six thirty five on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve potoskan K and X in Los Angeles. We're talking about Rivians rapping plans to

team with Mercedes to build electric vans in Europe. Um Corney, Danaho on k Fabian Omaha. There's no timeline for the restart of the Keystone pipeline in Nebraska. I'm Kimberly Adams and on w b Z in Boston. I'll be reporting on Twitter once again attempting to launch its premium service. I'm Stephen Carol and Bloomberg DAB Radio in London. We've been reporting on the UK preparing to top its co reserves as cold weather pushes power prices to a record high. I'm Ed Corey on w w J in Detroit. I'm

reporting auto books who's announced layoffs. Those are some of the stories our twenty hundred Bloomberg journ list analysts working on this morning around the world. It's sixty 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 census 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 has 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, and you can hear Bloomberg Opinion commentaries every weekday. At this time, terminal customers can read more at O P I n GO. SMP futures up eleven points.

That's a gain of three tenths percent. Dow futures up fifty eight or two tenths percent rise in the Nasdaq futures are hired by a third percent, or thirty eight points ten. Your treasury is up sixteen thirty seconds the old three point five one percent yield on the two year four point three one percent six thirty eight on Wall Street straight Ahead on daybreak, the latest from the nation's capital continued US support for Ukraine and will the

January six committee bring out criminal referrals. Bloomberg Government Congressional Reporter Jack Fitzpatrick joins US Next Markets Headlines and breaking news twenty four hours a day at Bloomberg dot Com for Bloomberg Business Out and at Bloomberg Quicktake. This is

a Bloomberg Business Flash, and I'm Karen Moscow. This update brought to you by the Donors faund open your free giving account in minutes and instantly qualified for a tax deduction, then choose from one point four million charitable organizations at any time. Visit the donors found dot org today and get your twenty two tax deduction. Futures this morning are on the rise. We get to the first word breaking news desk for today's morning call, and here's Bill Maloney. Bill,

good morning, and good morning, Karen. That's right. US futures with a bid right now at death futures up sixty two points. Sesame is game twelve and as that futures are higher by forty four. The US ten yel at three point five two percent, Gold is down three, oil is in the red, and bitcoin is trading lower by point percent. Hong Kong l two point two percent overnight, while your PM markets are posting modest losses this morning.

And back in the US on the economic front, at two o'clock, the monthly budget statement in deal news, people familiar so that am Jine will buy Horizon Therapeutics for about twenty six billion and Microsoft will purchase a four percent steak in the LC group. In the news, ribbing and scrapping plans to make a lecture vans in Europe

with Mercedes and wrapping things up. Best Buy was raised neutral at Goldman Sachs, Curtis Wright cut the equal weight up Morgan Stanley, and under Armour was raised to buy over at Stephle Live from the first breaking news scam, Bill Maloney care Herery Bill, thank you and to hear live breaking news of your Bloomberg time squawk on your terminalscue you a w K and that's a Bloomberg business flash. Now here's Amy Morris with Moore on what's going on

around the world, Amy Karen. Florida Governor Rhnda Santis has thanked his South Florida donors. It was a closed door meeting in Miami yesterday, we're sources tell Bloomberg News. Santis noted how his victory in Florida could be a blueprint for Republicans in the future. Georgia Congresswoman Arjorie Taylor Green told the New York Young Republicans Club over the weekend that the January six attack on the U. S. Capitol quote would have been armed if she informer Trump adviser

Steve Bennett had planned it. Green appears to be pushing back against claims that she was involved in that plan and sports in the NFL, the Bills beat the Jets, the Giants lost to the Eagles. The Ravens and forty Niners both win. In hockey, the Caps and Bruins win, and in the NBA, the Knicks beat The King's Global News twenty four hours a day on air, and Don Bloomberg quit take We're out powered by more than twenty seven hundred journalists and analysts in more than one d

twenty countries. Karen all right, Amy, thank you at A six two on Wall Street, and we turned to news and science and technology now at the Bloomberg and j I. T. Stammer Report, it has brought to you buy New Jersey Institute of Technology and j I T offers New Jersey's first undergraduate degree in fintech tank driven finance focused What will you make at n j I T. Learn more at n j I T dot E d U slash Fintech Now. Here's is making news and science, technology, engineering,

and math. And China COVID is rapidly spreading through households and offices after the country's pandemic rules were eased. That's led to turmoil and poorly prepared hospitals. Some facilities are struggling to find enough staff, and others are suspending non COVID treatments. Scientists in California have made a breakthrough a nuclear fusion technology, producing more energy than consumed in a

reaction for the first time. Bloomberg News has learned. The achievement was made at the Department of Energies Lawrence Livermore National Laboratory near San Francisco. Lasers were used to bombard hydrogen isotopes held in a superheated plasma state in order to fuse them into helium, releasing a neutron and carbon free clean energy in the process. Scientists have been experimenting with the technology for decades, but getting the process to

produce more energy than it consumes has been elusive. And as you've been reporting, Van Automotive is walking away from plans to jointly build electric vans in Europe with Mercedes Benz. Van will no longer pursue the memorandum of understanding signed with the German an automaker in September, which includes plans to invest in and jointly operate an existing Mercedes Van's plant. And that's to Bloomberg and j I t Stem report

Nathan Okay, Karen, thank you. At a six forty four 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 Treasury Secretary Janet Yellen predicting lower inflation

next year and continued US support for Ukraine. In an interview with CBS IS sixty minutes, we're providing considerable help um to Ukraine, both military and economic, and Secretary Yellen says that support for Ukraine will continue quote as long as it takes Meantime, the White House says it will keep negotiating to free retired Marine Paul Wheeland from Russia after securing the release of basketball star Britney Griner. Spokesman

John Kirby was on ABC's This Week. There was a very serious, specific proposal made to the Russians to try to get both of them out together, and it just didn't land anywhere. Didn't go anywhere with the Russians. But former Secretary of State Mike Pompeo tells Fox News Sunday the prison your swamp for arms dealer Victor boot may have played into Russia's hands. There is no doubt that today,

not just Vladimir puttin but all the bad guys, the Iranians. Uh, there's who hold Americans and detenency that if you take a celebrity, the chance of getting one of your bad guys back out of American control is greater. Also making news the January six committee considering criminal referrals over the attack at the Capitol Committee Democrat Adam Schiff was on CBS, is Face the Nation if we do make referrals, who

want to be very careful about how we do them. Um, but I think we're all certainly an agreement that there is evidence of criminality here and we want to make sure that the Justice Department is aware of that. And JP Morgan Chase CEO Jamie Diamond is weighing in on the chance for cooperation in Washington with the return of

divided governments. Diamond was also on Face the Nation on both parties the kind of the wing nuts didn't get elected and there are so the rational thing in cos I was gratified by the thought they want to make progress and I think they can make progress. Face the Nation, Fox News Sunday and this week and all be heard every Sunday on Bloomberg Radio and our listeners in Washington. Can here sixty minutes from CBS every Sunday night on Bloomberg.

Let's bring in Bloomberg Government Congression reporter Jack Fitzpatrick for more on some of these stories, including some interesting comments there from a Treasury secretary yelling on sixty minutes not

just on Ukraine support but her thoughts on inflation. Very interesting to get that ahead of the FED meeting this week, Jack, Yeah, it's notable, not only because she said she expects inflation to be lower by the end of three but also made a point of saying she does not think that a recession would be necessary to sort of break the cycle of inflation. So obviously she's not on the FED board.

But to hear the Treasury Secretary I say something that is very clearly not in the Paul Vulker inspired line of thinking is a pretty significant thing. And a lot of the inflation outlook, I have to imagine depends on what happens in the war in Ukraine, and the Secretary was asked about that as well, saying support will continue quote as long as it takes. I wonder how much of that's going to play into this G seven virtual meeting.

That's happening today as well. Yes, that that does seem to be the relevant timing, and it's also worth noting she said her expectations on inflation UH slowing down are in the context of if there are no other major supply shocks, and obviously the war in Ukraine is something that made this all a tougher situation with inflation. But yes, with the G seven meeting, there clearly is another push by the US just to reiterate that the support is there,

more support is coming. I would note that, you know, the president, President Biden has asked Congress for another thirty eight billion dollars or so to be attached to a year end government funding bill that's all Ukraine aid related. He's gotten pretty good feedback from leadership in both parties UH, and obviously in the early days of trying to institute this price cap with G seven countries in the EU on Russian oil purchases, UH, they seem to have thought it.

It's it's necessary to reiterate the support and emphasize the consistency of support for Ukraine. I want to turn to UH, what's happening on Capitol Hill More domestically, we're getting close to the end game for the House January six committee, and there seems to be a lot more talk about whether they're going to be criminal referrals coming out of the committee's report. How much does that matter? It definitely matters,

the members have said that's an important thing. A couple of our colleagues reported that there was a discussion on Sunday among members of the panel in which there were presentations made four referrals. Uh, this could list. This could be a list of people, including the former president Donald Trump and other top associates of his who maybe refer for criminal prosecution to the Justice Department. It's not binding, It's not something where the Panel tells the Justice Department

what to do and makes demands. But at the very least, regardless of what the Justice Department ends up deciding to do, it would be a very powerful message, depending on exactly what message they sent to you know, especially if they were to uh present a referral for prosecution of a former president in particular. Indeed, alright, as always, thanks for this, Jack Bloomberg. Government Congressional reporter Jack Fitzpatrick with us from

the nation's capital. Read more about these stories on bloomberg dot com. Or on the Bloomberg terminal, and a reminder you can follow all the latest on Bloomberg Radio in Washington, Bloomberg and one oh five point seven FM HD two STP Futures hire by nine points right now, Down futures of forty three dancet at futures higher by thirty six points. Tenure Treasury is up sixteen thirty seconds, the yield close

to three point five. This is Bloomberg Markets, headlines and breaking news twenty four hours a day, at Bloomberg dot com, the Bloomberg Business Out and at Bloomberg Quick Tape. This is a Bloomberg Business Lash and I'm Karen Moscow. This update brought to you by SEI. Asset managers don't get results that are off the charts when their solutions are off the shelf. Learn how sci is operating platform can turn infrastructure into a competitive advantage At sc sc dot com,

slash tech and futures are higher this morning. We check the markets all day long here at Bloomberg, with SMP futures up about eleven points or three tents of uppercent. Down futures are up fifty one points, almost two tenths of up percent, and Nowasdack futures up thirty eight or about a third of uppercent, the decks in Germany's down

two tenths of uppercent. The tend your treasury of fourteen thirty seconds yield three point five two percent, and the yield on the two year four point three two percent. Nim Ex Screude oil is down nine tents of upper cent or sixty two cents at seventy dollars four cents in barrel called my school down a quarter percent or four dollars ten cents at eighteen o six sixty. Announced the euro one point oh five six seven against the dollar, British found one point to q and again one thirty

six point seven eight. And as a Bloomberg business flash, Nathan Karen, thank you to six fifty six on Wall Street. Bloomberg Surveillance is up next, but first you bring in Bloomberg Radio and TV markets correspondent Crety grouped to take a look at some of the names moving in the pre market on a merger Monday, and what a merger I'm a Monday it is in the healthcare space, particularly

creating a massive merger Monday. Let's start with Horizon Therapeutics looks like am Gen is saying it's agreeing to buy the company for about twenty seven point eight billion dollars done share price a hundred and sixteen dollars and fifty cents per share in cash, Nathan, that is a forty eight percent premium to where they were trading when the deal was closed. Though, massive news for Horizon Therapeutics hz n P is your taker there, and of course for

am Jen. You gotta watch those shares a mg N so Horizon rallying about fourteen percent this morning, quite hitting that one and sixteen fifty mark, so really keep an eye for the arbitrage there, but you also want to keep an eye on am Gen once again. A mg N is your taker classically, as it's kind of the acquisition or if you will, is down about three point one percent. Remember this is the biggest ever acquisition for am Gen. They have beat out Santa Fee and Johnson

and Johnson, which we're both actually bidding. Remember, Horizon is a company that gets a lot of its revenue from Tempeza,

which is basically treatment for painful autoimmune conditions. This isn't an era where a lot of people are looking to evolve past COVID and say, you know what, we need to really be investing in therapies at address cancer that address other rare diseases, and Amgen really getting ahead of that move and we could be getting closer to another m and a deal in the tech space as well. We are it Rude really is a merger Monday a kupa software that when you want to keep an eye

on CEO up is your taker there. The shares are up about twenty two percent in the pre markets. Comes after Bloomberg News reported that tom A Bravo is an advanced talks to acquire the company after outbidding Vista Equity Partners. For those of you who don't know what Koopa software is, it basically provides business spend management software helps companies track manage the purchasing of goods and services. So some of

their customers include Nestlee, a group On, among others. We're still waiting on what the actual share price might be, but one of the top shareholders in Kopa right now, HMI Capital, is very vocal and so this should be about nine five dollars a share. Will actually see if that deal gets there. For now, shares of training. Like I said about around the seventy five dollar mark, so something to keep an eye on. It sounds like it's going to keep you busy throughout this m and a Monday.

We've also got some new analyst recommendations to talk about as well. We do very quickly call calm here c Q or Q C O M excuse me. Shares actually down two point four percent. Wells Fargo really the cause behind this, giving the stock it's only negative analyst rating, saying that they expect continued under performance for smartphone names. Not exactly a vote of confidence you want on a merger Monday, Yeah, certainly not. Thanks as always and welcome back,

Bloomberg Radio and TV Markets correspondent. Pretty good keeping an eye on the movers in the pre market. Stocks as a whole moving higher as investors wait a slew of central bank decisions. This week. We have SMP futures up ten points, staff futures of Nasdaq futures are higher by thirty five points. You've been listening to Bloomberg Daybreak. I'm Nathan Hager alongside Karen Moscow six fifty nine on Wall Street. Bloomberg Surveillance starts right now live from the financial capital

of the world, broadcasting across the globe. This is w BBR New York Bloomberg, even tho the Fed doesn't want to actually grasp the nettle and tighten finally,