Bloomberg Daybreak: December 13, 2022 - Hour 2 (Radio)

I'm anymore as New York's gunwall remains intact for now and the city plans to honor the central Part five. I'm John Stashnar and sports the Rangers with the Devils in overtime. I win for the Nets. The Patriots one

in the World Cup semifinals begin today. That's all traded ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg nine 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. Good Morning, I'm Nathan Hager, and I'm Karen Moscow and US DOT index futures are on the rise this morning six oh one on Wall Street, and we check the markets all day long here at Bloomberg s and P futures they're up four tents of upper cents, so are Dow futures, with SMP futures up about eighteen points and DOWN futures up one undred thirty nine.

NASDACK futures up half percent or fifty nine points. The decks in Germany's up eight tens of upper cent ten year treasury of six third day seconds, you know, three point five eight percent they yield on the two year four point three seven percent. Nine X screwed oil up one point two percent of eighty seven cents at seventy four dollars five cents of barrel comic schooled up a third of upper cent or six dollars ten cents and

one thousand, seven hundred nine dollars forty cents an ounce. Nathan, all right, Karen, We'll continue following the markets throughout the day here on Bloomberg, But first we begin with the arrest of disgraced f t X founder Sam Bankman Freed. We get the latest live with Bloomberg's Steve Rappaport. Good morning, Steve, Good morning, Nathan and Karen. Authorities in the Bahamas took Bankman Freed into custody after the US government filed criminal charges.

Prosecutors planned to unseal their case against him this morning. The New York Times reports charges will include wire fraud, securities fraud, and money laundering. Ballet crypto founder and CEO Bobby Lee Chunk tells US Bankman Freed's arrest is a sigh of relief for the crypto business. There's your the perspective that he's been successfully lobbying the governments, the politicians, and he's been having good media treatment over the last few weeks. So there's been a lot of hate and

anger that why aren't they arresting him sooner. Bankman Freed was scheduled to testify remotely before the House Financial Services Committee today. Instead, he's expected to appear in court as the U S seeks his extradition. Live in New York, I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you. A reaction is pouring in this morning to Sam Bankman Freeds arrest. Token Bay Capital founder Lucy Gasmarrian says it's

good news for the crypto industry. Just this seems to be, you know, in process, which I think is welcome by those in the in the crypto industry. It's actually moved very swiftly. I mean that this is actually all happening in just over a month, so they've definitely moved very quickly. And Lucy Yasmararian also says this case could define regulations

for crypto exchanges going forward. And we'll have much more on the arrest of Sam Bankman Freed coming up in just a few minutes here, But first we want to turn to the economy and the inflation outlook. We are just two and a half hours away from the week's first important data point cp I for November, and it comes just one day before the feds final policy decision of the year. Bloomberg's Michael McKee begins our team coverage.

Inflation may have peaked, but November CPI report will show it's still running about three times it's pre pandemic Pace shelter the cost of housing will remain a big driver, although private reports show rents and home prices declining. It takes a long time for that to be reflected in the CPI data. Service industries are still raising prices driven by a shortage of works pushing up wages. Prices of used cars and medical care services are expected to decline.

Apparel prices will also likely drop for a third month amid high inventory at heavy discounting heading into the holiday season. Anything short of a massive surprise will defect the FEDS Wednesday decision on interest rates, but it will offer policymakers clues to the trajectory of inflation next year. Michael McKee, Bloomberg Daybreak. Thanks to Michael, If history is any indication, today's CPI report will move markets, and we continue our

team carbage at Bloomberg Markets. Reporter Valerie title tiping Organistrating US had a note saying they could see ten percent SMP rally if the CPI comes in soft, and when you look at that, you know that's not too surprising. Last month's soft printsall five point five percent jump in the SMP. The last six prints and cp I have all had a three percent swing in the SMP index.

So the volatility around the data today it's huge, if not maybe larger than the actual rate decision tomorrow, and Bloomberry's Valery title says markets get you need to expect a fifty basis point hike from the Fed tomorrow. Well, many on the street expect a rally if inflation cools Karen, but not. Jeffrey Gunlake, the Double Line Capital CEO, predicts any rally likely won't last. We're probably going to see a bounce in markets between now and maybe a month

from now as as money as rotated. There's been a lot of tax loss selling that's going on in recent weeks, and I think that may reverse, but I think that that's going to be short lived. And then I think we do see renewed bear market uh in at least in risk asset's not so much in bonds. Double Line CEO Jeffrey Gunlack says rate hikes from the Fed will likely make a recessionary year. Well, we're watching shares of Oracle this morning, Nathan. They're up more than two and

a half percent in early trading. The software company reporting quarterly sales that top analysts estimates. The company's Cerner digital health records unit outperformed, and that helped Oracle overcome softer demand for its information technology services. And Speaking of technology, Karen ELW. Musk is making news this morning with two of his companies. The Washington Post is reporting that Twitter

has dissolved its Trust and Safety Council. Paper says Musks have done years of investments interest in safety and Twitter and the two months he's owned the company, and Bloomberg News has learned Musk SpaceX is offering to sell insider shares at a price that would raise the company's valuation

to about one hundred forty billion dollars. Space X, based in California, currently dominates the market for commercial space launches, and we haven't known from Asia this morning, Karen Hong Kong is scrapping some of its final remaining COVID restrictions that follows China's rapid shift away from a zero tolerance approach to the virus. Hong Kong will lift a ban on international arrivals going to bars or restaurants, and will also stop requiring people to scan QR codes on their

phones to get into venues. SMP futures now up sixteen points, STYLE futures up a hundred thirty two, and NASTAC futures are higher by fifty five points straight ahead, your latest local headlines, and a check of sports. This is Bloomberg at six o seven on Wall Street. Twenty five degrees in Central Park is gonna stay sunny, but Chili today has only near forty degrees and getting back down to

the upper twenties tonight. Amy Morris is here with more on what's going on in New York and around the world. Good morning, Amy, Good morning Nathan. New York's gun law remains intact for now. The New York Times Reports and Appeals Court has temporarily halted a lower court's ruling that blocked part of the law, which bands firearms and parks public transit systems and on private property without the property

owner's permission. The stay is the third such order issued this month, as the panel considers constitutional challenges to the law, which New York enacted this year after the Supreme Court struck down the state's limits on carrying handguns in public.

A Central Park entrance will be named next week for the Central Park Five, in honor of five black and Latino teenagers who were falsely convicted of the nineteen eight nine rape an assault of a white female jogger, Sharon's Salam is mother of Usef Salam, one of the five, and tells ABC she wants to see her son's innocence literally etched in stone. We went through a hell of fi time and it wasn't very easy, you know. People were spitting at us, calling us name, sending us threats.

The gate of the exonerated will be unveiled at the park's northern edge. Another man confessed to that attack in two thousand two. While the number of felony crimes on the New York subway system is way up for the year, the head of the New York City Transit Dave Richard Davy, testified on a council hearing on public safety, saying that transit crime is actually down more than the month of

November compared to November of last year. Way too early to celebrate, but I believe there is real progress that we can trace back to the actions by the mayor and the governor now Richard Davy. They're referring to a plan from late October that put a heavier police presence in place in the subway system. Davy also testified transit officials will be pushing for judges to ban people from

the transit system when they commit certain crimes. New Jersey also allocating more than twenty four million dollars for improvements in and around public transit. The Safe Streets to Transit program and the Transit Village Program will help fund access to public transportation, and the Local Bike Way Program will

help promote cycling as an alternative mode of transportation. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty hundred journalists and analysts in more than one d twenty countries. I'm anymore is this is Bloomberg, Nathan? Thank you Amy six o nine on Wall Street. Time for the Bloomberg Sports Update, brought to you by twice stayed out and here against

John Stay shop all right, Nathan. It was October when the Devils began their scenes with a loss in Philadelphia. They had not lost a road game since in at the Garden. They led the Rangers to nothing. Five minutes in, they are up three way three one. Midway through Rangers rally. The time the game went to overtime, down the right shot for it shook meet all wait to them overtime all the er. The shut up after a bit saved

by the Orses Perkin. The Rateers win at four to three at overtime, and in the Devil's a Living Game Road which streak, the Rates wait their fourth in the role sp in New York. The Devils were coming off a home loss to the Islanders, so this is their first two game losing streak since they lost the first two games of the season. The Nets made it four strade wins, eight of the last nine, one twelve to

one hundred of Washington. Kevina rant back in his hometown, scored thirty points Guary every Both had been given the previous game on Why the Night Football so Arizona lose star quarterback Kyler Murray to an apparent tourn a cl on the third play of the game. New England scored the last twenty points took the lead on a fumble return. Patriots made the Cardinals twenty seven to thirteen, So the Pats, the Jets of the Chargers are all seven and six, a three way tie for the last a f C

playoff spot. Sixty one year old Mississippi State coach Mike Leach is in critical condition that the suffering a massive heart attack. Texas suspended its basketball coach Chris Beard after his arrest for felony domestic violence. Chris Bassett, who pitched this past season for the Mets, signed a three year deal with Toronto. Argentina stuffered that shocking loss to Saudi Arabia to kick off the World Cup. But there's one four straight since today in Qatar. It's Argentina versus Croatia

in the World Cup semifinals. John Stashid Bloomberg Sports. David all Right, John, Thanks, and Bloomberg Sports is brought to you by Audie. Don't let someone else drive off in the Audie model you've always wanted. Visit your local Tri state Audie dealer to get behind the wheel of yours today, or visit Autie Offers dot com for more information. Breaking

news just crossing the Bloomberg terminal. The Securities and Exchange Commission has unsealed its charges against f t X founder Sam bankman Fried, accusing him of defrauding investors uh TO by concealing his diversion of customer funds to crypto trading from alam To Research to the tune, allegedly of more than one point eight billion dollars. It sounds six twelve

on Wall Street. This is Bloomberg Daybreak. We want to get back to our top story this morning, the arrest of f t X founder Sam Bankman Freed and the charges just unsealed by the Securities and Exchange Commission. We are joined live now by Bloomberg Cross Asset Market editor Joanna Oustinger, who has been following this story from the get go. Joanna, good morning. We're watching headlines across the Bloomberg terminal as the Securities and Exchange Commission reveals the

accusations it is making against Sam Bankman Freed. What more can you tell us? Well, Nathan, this is not too much of a surprise really, because we always knew that the f t X and el Amita relationship was being looked at. There has been a lot of speculation about exactly what the flows were between those organizations and what might have um contravened securities law or anything like that.

So the sec of course is unveiling those We also, of course are awaiting the criminal charges and um the and what the federal prosecutors will do as they unseal the case against him this morning also, so that's going to be a pretty big deal as well. And then of course there is the issue of he's being held in custody in the Bahamas penning that extradition process. So we'll have to see exactly what we'll go on with that. Is it going to be fast? Is it going to

take weeks or months? Sometimes these things take years. This one might not go on so long. But there are so many different strands of this situation right now. And just to quote from the news released from the Securities and Exchange Commission UH quoting the chairman, Gary Gensler, saying, quote, we allege that Sam Bankman Freed built a house of cards on a foundation of deception while telling investors that

it was one of the safest buildings in crypto. Of course, as you know, Joanna, Gary Gensler has been very critic goal of the crypto space and f t X in particular. What further color are you expecting when we get those criminal charges unsealed by the district Are the federal prosecutors in New York later today? Well, it'll be interesting to see exactly what they're zeroing in on. And one thing

that's interesting, this case has proceeded quite quickly. It's been only about a month, and so there have been a lot of comments about they may feel like they have very strong evidence if they're moving this fast, So it'll be interesting to see exactly what they're looking at. Are they looking at the same things as the sec Are they looking at you know, international stuff, or exactly what what different laws are they focusing on? And also is it mostly about Sam bank Man Freed or are they

going to loop in other people? There are all sorts of people who were involved in f t X and Alameda. Some of them have been a lot quieter than others. Sam bank Men Freed has been speaking a lot, so we've he's been in focus, but other people may be included as well. Yeah, to your point, Joanna, the speed at which the bankruptcy of f t X to now the arrest and charges being unsealed against the founder has

been nothing short of dramatic. What does that tell you about potentially the kind of case, uh that prosecutors could have against Sam Bankman Freed. Well, speculation is that they may have something extremely strong if they're moving this fast, if they're that confident about it, so we will have to see what they have, But it is it does seem like if they're moving this fast, you know, they might think they have something that works really well, and

we'll have to see. They also may have been worried that he would try to move to a different jurisdiction. We have seen people in the crypto space, uh, moving to different jurisdictions and even kind of going under the radar with their locations. So there's that aspect as well. But you know, it definitely seems like they wanted to move fast, even before he could testify. He was due to testify at the U. S House hearing today, the

Financial Services Committee didn't get to do that. They're still having the hearing today, They're having the Senate hearing tomorrow, but you know, without the one of the star players there. Yeah, in our last minute here, the timing of this arrest, coming just a day before the kickoff of these two days of hearings is really interesting here. What does this mean for what the hearings are going to do going forward? I guess Sam Bankman Freed isn't going to be testifying now.

Does this just sort of put the whole proceeding in Washington into a kind of a state of upheaval here. It definitely takes away some of the drama. At the same time, John Jay Ray, the third who's knew the new CEO, is going to be testifying and he will still be able to give a clearer sense of what he's been able to figure out in the meantime and exactly we have from f t X. And so there's still a lot of information we can clean out of it, and it'll still be interesting to see what the legislators

are focusing on. But definitely, uh, Sam Bankman Free's appearance would have created a lot of drama and we won't have some of that drama. Yeah, But lots more information to come out, many more questions to be answered with

these multiple investigations swirling around Sam Bankman Freed. Joanna Oustinger of Bloomberg News, thank you for keeping us up to speed on what's happening here, including the breaking news from the Securities and Exchange Commission charging f t X founder Sam Bankman Freed with quote orchestrating a scheme to defraud equity investors in f t X. We will continue following the story, of course, throughout the day throughout the next couple of days here on Bloomberg Radio, as we have

two days of hearings on Capitol Hill and of course, the multiple charges now being unsealed against sam Bankman Freed. Stay with us. You're listening to Bloomberg Day Right, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business and at Bloomberg Quicktape. This He's a Bloomberg Business lash and I'm Karen Moscow

and again of our breaking news. The SEC charging Samuel Bankman Freed with orchestrating a scheme to defraud equity investors in ft X. According to the SEC's complaints, is at least may ft X rays more than one point eight billion dollars from equity investors, including about one point one billion from approximately ninety US based investors. And this update

is brought to you by b n y Millons. Purshing learned by the world's most sophisticated wealth management and institutional firms rely on Pershing to help them improve profitability, create efficiency, attract talent, and manage risk. At Pershing dot Com. Futures this morning are on the rise. S ANDP futures up

eighteen points, or about half percent out. Futures up for ens per Center a hundred fifty one points, and ASDAC futures up half percenter about sixty points, the Dacks in Germany's up eight tens of a percent, and a tenure treasury up six thirty seconds. He had three point five eight percent. They yield on a two years at four point three seven percent. Just looking at bitcoin this morning of one and a half percent at about seventeen thousand,

four hundred dollars. And as a Bloomberg business flash, now here's Amy Morris with Moore unless going on around the world. Amy, Thank you, Karen. President Biden expected to sign their Respect for a Marriage Act into law today. The bipartisan bill aims to protect marriage for lgbt Q and interracial couples. We await formal word of a major breakthrough and the quest to harness fusion. That experiment marks the first time scientists have been able to produce more energy from the

reaction that consumes. In sports, Monday night football in the New England Patriots beat the Cardinals. In the NBA, the Nets beat the Wizards, the Celtics win, and in hockey the Rangers beat the Devil's World Cup semifinals get underway today. Global News twenty four hours a day on airand Don Bloomberg Quick to a powered by more than twenty seven hundred journalists and analysts in more than one d twenty countries. I'm Any Morris, This is Bloomberg, Nathan, Thanks Amy six

three on Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak on a big day to day before the FEDS final policy decision of the year coming up tomorrow. The November Consumer Price Index is due out in just a little more than two hours time. Someone will be watching those numbers very closely for US. Bloomberg Global Economics and Policy correspondent Michael McKee Mike joins US Live this morning from our Bloomberg studios in Washington, d C. Mike, good morning.

What should we be looking for in the data today? Numbers? Thank you, good talking to you. When do you see all this stuff going on about crypto and do you think this is CBI is just very numbers, but it is. We are expecting a slowing of inflation. The headline rate UH supposed to be up about three tenths for the

both and it was up four tenths last month. The core is not gonna be changed three tents and three tents, but both of those because of the base effects of high inflation a year ago would bring down the h the year over year numbers, the headline number down to seven point three percent of the core six point one, and those are the kind of things that the Fed

wants to see. Uh. Interestingly enough, Uh, you've got markets now pricing in a drop, a very quick drop in inflation next year, down to around three percent by May according to inflation index swaps. So people are getting more optimistic. Yeah, how much does this cp I print inform what we could see from inflation over the next year. I mean, the economists we've been speaking to this morning are pointing out the fact, you know, most light uh appropriately that

CPI is a major lagging indicator. It is. But what's happened is a number of the categories that people thought would be transitory and warrant and now turning out to be transitory. Just stretch the definition of how long that is. And so we're seeing on the good side, goods disinflation. It's not rising nearly as fast as it was. The question then becomes what happens with services, and services are still up because of retailers having to pay uh, employees

more to get workers because there aren't enough workers. Yeah, and that puts attention on what the Fed does going forward into the next year as well, whether they need to keep rates higher for longer just to try to get this tight labor market back under control. Well, it is a coincidence of timing that we have the FED meeting tomorrow and at that meeting they're going to offer new economic forecasts, including for inflation. Now, this is the

CPI we're getting today. The Fed uses and forecasts the PC index. Uh. CPI generally runs a point or two above PC. So uh, while we the numbers won't match up, we'll see if the trend is the same in the FED forecast, if they see a fairly quick drop in inflation for two thousand twenty three, and then that will inform what they're thinking about in terms of how high they have to raise interest rates and how how long

they have to keep them there. It's only going to be a question of, uh, do they go too far, And they don't want to do that, so they'll probably tell us more. We'll see more slow down in the pace of BRAID increases as inflation drops, and we get those numbers. As we say, just a little more than two hours time. November Consumer Price Index eight thirty am Wall Street Time. You know you'll be back Mike to break down the numbers live for us as they cross

the terminal. Bloomberg Global Economics and Policy correspondent Michael McKee with us this morning from the nation's capital. Got your top stories straight ahead, But first, Bloomberg Meteorologist Rob Carolin with the weather fork with high pressure headed towards the Tristate area. Will enjoy plenty of sunshine today, just won't be very warm out high is only reaching forty later this afternoon. Skies are generally clear. Tonight will drop to

thirty in the city. Suburbs are likely closer to twenty overnight sunshine back to your forty tomorrow. Increasingly cloudy tomorrow night. Rain develops on Thursday. It may start as some wet snow. I'm Rob Carolyn with your three day forecast on Bloomberg eleven three oh broadcasting live from the Bloomberg Interactive Broker's studio in New York. Bloomberg Eving freed to Washington, d C.

Bloomberg to Boston, Bloomberg one O six one to San Francisco. Bloomberg, NIXT to the country, Sirius XM to one nine, and around the globe, the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow, and we are just about 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 Interactive Broker's.

Interacted Broker's clients are an interest of up to three point three three percent on the idle cash and their brokerage accounts. Visit id k R dot com slash interest rates to learn more. Up first, the arrest of Sam Bankman Freed, the US government criminally indicting the disgraced FTX co founder Bloomberg. Steve Rappaport joins US Live with the very latest. Steve, Good morning, Good morning, Karen and Nathan.

While we wait for federal prosecutors to unbail criminal charges against Bankman Freed, the SEC is charging him with the frauding investors. Bankman Freed was supposed to testify before a House committee about the stunning collapse of his crypto firm. Instead, he will stand before a judge today as US prosecutors begin efforts to have him extradited. Ballet Crypto founder and CEO Bobby Lee Chunk tells us the arrest shows a

need for greater oversight of the industry. We need to flesh off the bad actors, really need regulation and to show that rule of law is important and that people can't just do Willie Nilly. Bankman Freed admits he made mistakes but denies committing fraud. Live in New York, I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks. Some reaction is pouring in this morning to Sam Bankman Freed's arrest. Bloomberg's Joanna Ostinger says senior leaders in crypto or wondering

what's next for the industry. There's still a lot of nervousness and the attitude of if this can happen to something like FTX that seems so solid. People are starting to poke around and say, well, where else could there be issues? Bloomberg's Joan Oustinger says crypto prices are still stabilizing and taking a look at Bitcoin right now, it's trading up nearly one and a half percent, right around seventeen thousand, four hundred. Well, let's turn to the economy now, Nathan.

Traders have their eyes on the November consumer price indexes do out at eight thirty am Wall Street Time. Jetted mouey Had of market analysis with Brewin Dolphins says it's not all about the headline number today. The important thing is observing the trends. Also a lot of trim and patting into the right action. In terms of the headline CPI.

Important will be the core data, of course, and that could still be make a this decade, and Jenny Buie with Bruin Dolphin believes it will take some time for core CPI to come down, and today's inflation data comes just one day before the feds next policy decision. Consensus calls for the Central Bank to raise rates another fifty basis points tomorrow, no matter what comes from the CPI. Print.

In Carporrate News this morning, Nathan Shares of Oracle are on the rise this morning of two points seven percent. The software company reporting quarterly sales that beat estimates thanks to strong performance from its digital health records unit, and to of Elon Musk's companies are making headlines this morning. The Washington Post reports Twitter has dissolved its Trust and Safety council, and SpaceX is offering to sell insider shares at a price that would raise its valuation to about

a hundred forty billion dollars. That's the five things that you need to notice start your day. Brought to you by Interactive Brokers and straight Ahead, we have your latest local headlines, plus a check a sports. This is Bloomberg Excix one on Wall Street, and Amy Morris is here with the look at what else is going on in New York and around the world. Amy, Good morning, Good morning, Nathan. New York City health officials are once again urging residents

to wear a mask. New York City's Health Commissioner, Dr Ashwyn Vassan is warning there's currently a triedmic threat. We are facing unprecedented levels of flu, We're facing unprecedented levels of R s V, and we're seeing an increase in COVID cases. Health officials recommend getting a flu shot, a booster, and wearing a mask indoors in a crowded setting. To find a COVID booster or flu vaccine, to go to

Vaccine finder dot NYC. Dot gov. Brooklyn hospitals still dealing with the after effects of a cyber attack that hit them last month. The New York Times reports one Brooklyn Health continues to serve patients in some of New York's poorest neighborhoods after a cyber attack forced some critical services offline. Cyber security experts are working to get its three hospitals, Interfaith Medical Center, Brookdale Hospital Medical Center, and Kingsbrook Jewish

Medical Center fully back online. Tomorrow marks a decade since twenty children and six educators were shot dead at Sandy Hook Elementary School. Connecticut Governor Ned Lamont says more needs to be done on the state and federal level. Back in October, the governor said he wants to see more action there too many illegal guns. Lamont says he'll be proposing measures to close the assault weapons ban loopholes and helped take ghost guns off the street in the upcoming

state legislative session. New York transit officials told city lawmakers they're about four hundred cameras operating now on subway cars throughout the city. It's part of a push to increase safety and ease passenger fears. The Metropolitan Transportation authority is also paying a million dollars each month for private security guards to Rome subway platforms, in addition to a thousand

more city police officers. Global News twenty four hours a day on errand on Bloomberg, Quick Take, Power and Buy. More than twenty seven hundred journalists and analysts said more than one twenty countries. I'm Amy Morris, this is Bloomberg, Nathan. Thanks Amy, six thirty three on Wall Street time for the Bloomberg Sports up they brought to you by trying stayed outing with John Stay Show. Thanks Nathan. Wins for the Rangers and the Nets, and both have not won

four games in a row. At the Garden, thrilling win for the Rangers. They trailed the Devil's do nothing early on, they rallied to tie. They won four three on a Phillip Heel goal at two fifteenth of overtime. That hands the Devil's their first two game losing streaks since they lost the first two games of the season. It ends their eleven game road winning streets. And that's what At Washington one twelve to one hundred for Kevin Durant thirty points,

nine rebounds, six assists, Monday Night football at Arizona. Third play of the game, Cardinals quarterback Kyler Murray carted off at apparent torn a c L. Patriots and Cardinals were tied. Third quarter and the quarterbacks left like because he takes the shot to staff, he dropped back. Mr Crows, John hop Kids, crossing your side, Louis down the right side, stupid sports Hub at the call. Pats went on to wins to thirty and that's not the outcome the Jets wanted.

The Jets and Pats are both seven and six, but New England has the tiebreaker. They beat the Jets twice. The Chargers are also seven and six, three way tie for the last a SC playoff spot. The Jets Sunday host Red at Detroit. Sounds like Jets quarterback Mike White will be able to play after tests on his injured ribs. Ken Croatia pull out in another victory. They've only won once in regulation with a couple of penalty kick victories.

Just like four years ago and today and Guitar. It's Croatia against Argentina and the winner plays in Sunday's World Cup finals. John Stash where Bloomberg Sports, Nathan Okay, John, Thanks in Bloomberg Sports, Well, I was brought to you by Audie. Don't let someone else drive off in the Audi model you've always wanted. Visit your local Trice State Audie dealer to get behind the wheel of yours today,

or visit Autie Offers dot com for more information. It's six thirty five on Wall Street and 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 Podas, Scott k and X in Los Angeles. We're talking about how and offering to sell insiders shares value zelon Musk's SpaceX at one forty billion dollars. I'm Cornitnahoan k H

in Houston. Americans are cutting back on spending with inflation hitting the holidays. I'm Gina Servetti and for w b B, I'm in Chicago. I'm reporting that the branch of Sears focused on selling appliances in hardware, has filed for bankruptcy. I'm Stephen Carrol and Bloomberg d a B Radio in London. We've been reporting on UK wages rising it close to the fastest pace on record, maintaining pressure on the Bank of England to hike rates. I'm Ed Corey on ww

J in Detroit. I'm a boarding General Motors in Stilantist rank among the worst automakers, an average estimated real world fuel economy, and those are some of the stories. Are hundred Bloomberg journalists and analysts you're working on this morning around the world. It is sixty six on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Have you heard of chat GPT yet? It's a thrilling, fixing, ontologically mesmerizing

new technology created by the research group open Ai. In essence, chat GPTs a bot trained to generate humanlike responses to user inputs on request. It can produce basic software code, rudimentary financial analysis, amusing poems and songs, and more. Chat GPT exemplifies a widening array of artificial intelligence tools that may soon transform entire industries. As yet, policymakers seem largely

unaware of this revolution. Let alone prepared for it. They should greet it in a spirit of optimism, well being attentive to its potential risks for better and worse. Chat gpt heralds a very different world in the making. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg 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 editorials every weekday at this time, and terminal customers can read more at O P I n go. Another story we're watching, United Airlines has agreed to buy a hundred Boeing seven eight seven Dreamliners as part of a multibillion dollar order for as many as three hundred of the new aircraft. The companies say the deal includes a hundred firm orders for the wide body model, along with

options to add another hundred. The airline expects to take delivery starting in sixty eight. On Wall Street, straight Ahead, charges unsealed against f t X founder Sam Bankman free the latest from the nation's capital. Bloomberg Washington correspondent Joe Matthew This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quicktake. This is a Bloomberg Business Flash and I'm Karen Moscow and future is on

the rise. This morning, we get at the First Word Breaking news desk for today's morning call. And here's Bill Maloney. Bill, good morning, Hey, Good morning, Karen. That's right. US futures are adding to yesterday's games of down futures up a hundred and seventy four points, SIPs Game twenty and NASDAIC futures are higher by sixty three. The US ten yel at three point five nine percent, Gold is up six, oil is climbing, and bitcoin is trading higher by one

point four percent. Hong Kong rose point seven percent overnight, while up markets are also trading in the green this morning and back in the US on the Economic Frinday thirty, the U s November cp I after the Bellis Night Oracle revenues, hoped estimate shares her up three in the pre market, and the crypto space Sam Bakeman Freed was

arrested in the Bahamas. In other news, United Airlines to buy a hundred Bowing Dreamliners as well as fifty fifty six max aircraft, Bowing trading higher by two percent in the pre market, and wrapping things up, Philip Morris was cut to neutral at City Group net Up, cut to underweighted, Morgage Stanley and Newegian Cruise was cut to neutral. Right Ubs live from the first to breaking news descom Bill Maloney, care alright, Phil, thank you to hear live breaking news

of her Bloomberg type squawk on your terminal scue. 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, thank you, Karen. President Biden forming an inter agency group to fight anti Semitism and other discrimination. The group will work to quote counter anti Semitism, Islamophobia, and related forms of bias. Commuters are spending more time

in transit. Data from the research firm move It show the average post pandemic commute has increased by four minutes in New York City, Toronto and Milan. And sports Monday Night football, the New England Patriots beat the card in the NBA, the Nets beat the Wizards, the Celtics win, and in hockey, the Rangers beat the Devil's World Cup Semifinals.

Getting underway, Litter Today, Global news twenty four hours a day on air, end on Bloomberg Quick Take, bowered by more than twenty seven hundred journalists and analysts and more than one twenty countries. I'm Amy Moore, as this is Bloomberg, Karen all right, Amy, thank you at A sixty two on Wall Street, and we turned to news and science and technology Now with a Bloomberg and j I T

STEM report. It is brought to you buy. New Jersey Institute of Technology n j i T offers New Jersey's first undergraduate degree in fintech tech driven finance focused What will you make it? J I T. Learn more at n j I T dot edu slash Fintech now Here's It's making news and science, Technology, engineering and math. China's warning that it faces a big jump in COVID cases. The country is rapidly dismantling pandemic controls, and it's reopening

faster than some experts have anticipated. One of China's top health advisors says, if the majority of people become infected within just a few mon there will be a severe strain on the medical system. In a bid to win regulatory approval for a sixty nine billion dollar purchase of Activision Blizzard, Microsoft has offered rivals Sony Group, they're right to sell Activision Blockbuster call of Duty. It's part of

its gaming subscription service. Microsoft has publicly stated that it offered Sony a ten year deal to make Call of Duty available on the Japanese company's PlayStation console. Sony has not accepted the proposal. And Sony led a big jump in video game hardware sales in the US last month. It's the latest sign that supplies at the PlayStation five console are improving. Sony drove a jump in US games

hardware sales, and that's according to the NPD Group. Sony has said that shortages of the PlayStation five are easing as chip and logistics snarls end, and that's a bloomberg n j I t STEM report. Nathan Okay, Karen, thank you for coming up to six on Wall Street Time now to check what's going on in DC. Some of the top stories in our nation's capital include the White House calling out elon attacks on Dr Anthony Faunci on Twitter.

President Biden to sign the marriage equality bill into law. Today, ethics questions surrounding Justice bread Kavanaugh over his appearance at a Conservatives holiday party. But we have breaking news, of course, this morning the Securities and Exchange Commission unsealing charges against Sam Bankman Freed, accusing him of defrauding investors in f t X, following his arrest overnight in the Bahamas. Let's bring in Joe Matthew for more of our Washington correspondent,

host of sound On on Bloomberg Radio. Joe, of course, we got the unsealed indictment from the SEC just moments ago. What more can you tell us, Well, you know this is a charge, and we did see this coming. We we expected charges to be announced this morning by the SEC and separately by federal prosecutors in Manhattan. The SEC charging SBF Samuel Bankman Freed with defrauding investors. That's not a shock. Federal prosecutors in Manhattan at the same time

plan to unseal the case against him. Will have more to say, according to the U S attorney, But he's been arrested, and right now, this thirty year old man, whose life has changed a lot since November, is sitting in a police station in Cable Beach in the Bahamas. He will be extradited too the US. And and it's probably not a stretch for me to add to this that he's not going to be testifying today in the

hearing on Capitol Hill. That many people had come to Washington to cover, there were high stakes in this conversation before the House Financial Services Committee, appears he will be spending his day, Nathan, in a police station. Well, we do know that this hearing is still happening, at least for the House Financial Services Committee later on this morning.

What more are we expecting to get from the current CEO at f t X. Well, that's exactly what we're going to get, is the current CEO as opposed to the former one. Maxine Waters, the chairwoman, telling reporters they still plan to go through with this. It's supposed to start at ten o'clock. It's it's important, she says, for the American public to understand f t X exactly what it is and what is going on. But of course

the key witness is not going to be there. And I'll add to that, Nathan, there's a Senate committee hearing tomorrow that he was invited to speak at and and made some news over the weekend saying that he was not scheduled to be there. Uh. There there there was an ask that he appeared virtually, but now because of the arrest, it is likely that he will appear in neither. Yeah, it's interesting to get the timing of this arrest coming just before Sam Bankman Freed was scheduled to give a hearing.

What is that timing tell you, Joe, Well, look, there were a lot of questions about whether they had a real case on him, and I think at least in terms of of that perspective, this is seen as an indication that they have overwhelming evidence that they didn't wait more than a minute here essentially in terms of legal uh terms here Nathan to announce this. Uh, they've got the goods, they say on Sam Bankman Freed. He owes three billion dollars and he is likely going to be

in a lot of trouble. And in terms of the hearing itself, obviously hearings like this come a lot of times with a lot of grandstanding from lawmakers. But one are the chances that we could see uh, some actual regulation coming around crypt those actual policy changes around this space. Well, look, without being specific to this case, that it did start a sort of renew an ongoing conversation about this. I'm not sure that anyone really has the answer to that question.

The SEC has its own approach, the CFTC has its lawmakers have theirs, And the more we hear these conversations, Nathan, we're often reminded that lawmakers don't have a great understanding of how blockchain technology works or exactly what is involved in a company like f t X. A lot of Americans don't understand it. And then you back off and realize that somebody like Sam Bankman Freed was giving hundreds of millions of dollars to lawmakers, to Democratic politicians over

the years. So there are a lot of questions about how much is known and what exactly their incentives are. But it's clear that in the new Congress there's going to be a drive towards some level of regulation, just just based on on the fact that so many individual investors, retail investors have been burned on bitcoin and and other crypto technologies. John Ray, the current CEO, who's he's a

restructuring expert. He's the one who came in and said, you guys are gonna believe what's going on in here. We'll likely shot a lot more light under what happened inside that company, from the bankruptcy and beyond. Yea, And obviously there's gonna be a lot of attention on these next two days of hearings on ft X in Washington, d C. But I'm sure President Biden is hoping for a little bit of attention. On the other side of Pennsylvania Avenue, he's signing some pretty landmark legislation on a

marriage equality today. We've only got about a minute left here, Joe. Yeah. And that look, that was a big deal when that happened last week, because we're living in a time where there is so much news, Nathan, and so much of it is bad news. If you if you go back to where we were last week around that period of time, Uh, there were a lot of headlines competing for attention. But that bill came back to the Senate to codify same sex and interracial marriage. It was passed in the House.

It was a big moment for Nancy Pelosi. They held an enrollment ceremony. Even Barney Frank came back to town for crying out loud. So look, this is a very big deal. It is. It doesn't make same sex marriage possible in every state, but every state must acknowledge it in those that do conduct same sex marriage. And to think that it's the first time ever that inwo we're talking about this replacing the Defensive Marriage Acted is an

historic thing. Absolutely, Bloomberg Washington Correspondent Joe Matthew. Of course you're gonna have a lot to talk about, interestingly during a lame duck session on sound on which you can hear every afternoon five pm Wall Street Time across Bloomberg Radio. And you can read much more about these stories on

Bloomberg dot Com or on the Bloomberg terminal. When you're in Washington, listen to Bloomberg and one oh five point seven FM h D two and again, uh stay with Bloomberg Radio for full coverage of the f t X hearing at the House Financial Services Committee later on this morning. Futures moving higher out of CPI data. Today in Washington, you're listening to Bloomberg Day Right, markets headlines and breaking news twenty four hours a day at Bloomberg dot Com,

The Bloomberg Business at Land at Bloomberg quick take. This is a Bloomberg business flash, and I'm Karen. Moscow futures rising this morning, with SMP futures up twenty two points or about six tenths of upper cent, and NASDAC and Dow future is also up about six tenths of upper cent, with Dow futures up two hundred fifteen points and NAS day future is up sixties seven. The decks in Germany's

up nine tenths of upper cent. Ten year treasury up seven thirty seconds, you know, three point five eight percent they yield on the two year four point three six percent. Nine X Screwed oil is up half percent or thirty eight cents at seventy three dollars fifty five cents of barrel comic schooled up four tens percent or six dollars

ninety cents at seventeen twenty announced. The euro one point oh five four two against the dollar, British found one point two two nine five he had one thirty seven point five four and bitcoins up one and a half percent at seven teen thousand, four hundred forty And it's a Bloomberg business flash, Navin. All right, Karen, thank you

to six fifty six on Wall Street. Bloomberg Surveillance is coming up next, but first we want to take a look at some of the names moving in the pre market with Bloomberg Radio and TV Markets correspondent Credy, Goofta and Creed. We've been watching shares of Oracle all morning. A pretty positive earning story from a tech company for

a change. Yeah, A one of the old guards I might have of a tech company left to look at Amazon, Microsoft, Apple, etcetera, Oracle, HP, Dell either as some of the old folks that kind of haven't or just now diversifying, I would say, into more and more member. Oracle specifically has been trying to break into the cloud business, something that Microsoft and Amazon Web Services and arguably Alphabet as well have kind of

the monopoly on. Nevertheless, Oracle rising quite a bit o r c L as you're taker up about three point one percent in the pre market. They did report revenue that topped the estimates. A lot of this coming from Cerner. This is the digital health records unit. It is really interest thing because it comes at a time when you're starting to see a lot of macroeconomic headwinds for a lot of other tech companies. But this digital health record unit, which by the way is a more recent acquisition that

Oracle has made, actually really helped them. Sales were up eighteen percent in this last quarter. That is massive, And of course we've got to talk about cloud revenue. This is, like you said, one of the area's Oracles trying to really expand in and claim market share in Rose about forty three percent, so they are still growing quite a bit, Nathan, trying to get back into a competition with some of

that new guard you mentioned. And we've got some pretty interesting analyst recommendations on I guess you could call him some newer guard tech names. Right, Yeah, let's talk about social media. This is sure any newer guard than mass p I n s as ere taker for pinterest shares or at about three point eight percent in the pre market,

Piper Sandler upgrading the company on multiple tail winds. Now, when we talk about upgrades, we trend to think that's based on AD revenue or the future of the AD market, which by the way, is a concept Quins again of the macroeconomic story. This time around, they're saying, actually, we're gonna upgrade them on some different reasons. They're doing it to an overweight from a neutral, saying that there's gonna

be multiple tail winds heading into three. That does include increased active users in the third quarter after five quarters of decline, so they're saying it's going to be a real shift in the trend. They also talk about greater share in the ad markets, not the ad market specifically, but just reclaiming some of that market share. And on the other side, and on the other side, we have to talk about net App. This is another big company that you have to keep an eye on. And uh,

let me just look at this taker really quickly. This there's a tricky one because net app does a lot of different things. N t A p s your ticker. It's down about just shy of four percent. So seeing a little bit of pain in that stock this morning. Morgan Stanley cutting it to underweight. The price target goes to fifty dollars from sixty six. The shares of trading on about sixty two right now, saying the backlog is smaller and estimates more at risk. So nt A pete

down about three point six percent. All right. Bloomberg Radio and TV Markets correspondent Creedy Coopta keeping US as always on top of the action in the pre market trade stocks as a whole, moving higher ahead of cp I in just about an hour and a half. S and P futures of twenty one point, staff futures of two one. Nasdaq futures are higher by sixty points. Even listening to

Bloomberg Daybreak, I'm Nathan Hagar along with Karen Moscow. Bloomberg surveillance starts well right now by from the financial capital of the world, broadcasting across the globe. This is w b b R New York Bloomberg. He lived in Trio. I think is opening the door for recession. We're expecting either flow growth or a