Bloomberg Daybreak: December 14, 2022 - Hour 1 (Radio)

companies to its trade blacklist. I'm Amy Morris. A three alarm fire at a police evidence warehouse could burn for days, and our area is buckling up for more winter weather this week. I'm John stash Ourn sports another big baseball

free agent signing. The Islanders and Devils both lost the World Cup semifinals, and today that's all s trended ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg nine nine one, Washington d C, Bloomberg one O six one, Boston, Bloomberg nine sixties and Francisco Sirius x AM one nineteen 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. In US stock

index futures are little change this morning. It is five the one on Wall Street, and we check the markets all day long here at Bloomberg Radio. Again, U s and P futures are a little change, so are down in NASDAG futures. The decks in Germany lower down six tents of a percent. The ten year treasury of three thirty seconds heel three point four eight percent, and they yield on the two year four point one eight percent. Nathan, Karen.

It is a big week for critical economic events and it continues today with the Federal Reserves final policy decision of two. Let's get our coverage started with a preview now from Bloomberg Economics correspondent Michael McKee. Beneficials are going to raise the nation's benchmark lending rate by half a percentage point today. The question is what will they do next? After two consecutive soft CPI reports, investors are lower their bets on how high the Fed goes and for how long.

That puts the focus on policymakers. New economic and interest rate forecasts and the so called dot plot that shows where they think rates will need to be at the end of next year. In September, the median dot was at four point six markets now see them at four point three percent after rate cuts beginning in July. Investors will also focus on how chair j Pal sees the data and the outlook. Will he again warn against over confidence on Wall Street? Michael McKee Bloomberg Daybreak, All right, Mike,

thank you well after today. The Feds and next steps depend on the path of economic data, so says influential economist and Stanford University professor John Taylor. If it's fifty basis points uh at this decision, then don't lead on a twenty five or seventy five or another fifty. It depends, you know, the idea of Monterrey policies. It depends on

what's happened to inflation, what's happened to real o'connorwey. We hope we don't have another downturn and and we can avoid that if in fact, that says, look, if inflation picks up, we will take action. Stanford professor John Taylor may have a comments in an interview with Bloomberg's Kathleen Hey. Stay tuned for complete coverage of today's FED decision on a special edition of Bloomberg Surveillance. It all begins at one thirty pm Wall Street Time on Bloomberg Radio and Television.

We're caring that FED decision comes after a key gauge of consumer prices posted its smallest gain in more than a year, and that fueled a surge in stocks. At yesterday's opening bell, the SMP five hundred rows as much as two point eight percent before pairing those games to close higher by three quarters of one percent. Garg Choundry is Black Rock's head of I shares investment strategy. Policy is looking everything that the FED has been doing, as

difficult as that has been for the markets. What the inflation data today shows us that it is It is going in the right direction bike rocks. Garge Choundry notes that overall CPI increased one tenth of a percent from the prior month, bringing inflation to an annual rate of seven point and percent. Nathan Inflation is also a front end center in the UK with fresh data, I head up tomorrow's Bank of England decision and let's go alive to London and get the latest with Bloomberg's un Parts

you and good morning, Good morning Karen, Nathan. Another of the world's biggest economies is seeing a softening of inflation. Consumer prices in the UK rose ten points seven percent in November from a year earlier. That was down from eleven point one percent in the previous month and lower than forecasts. The data will be studied by the Bank of England ahead of their rate decision tomorrow, but with inflation more than five times over targets, no one is

yet calling victory in this particular battle in London. I'm you and parts Bom Big day Break, Okay you and thanks. Let's turn down to the latest developments on Sam Bankman free, the FTX co founder, he plans to fight extradition to the US. Bloomberg Steve Rappaport joins US Live with the details. Good morning Steve, Good morning Nathan and Karen. Bringing Sam Bankman freed home from the Caribbean might require help from

across the pond. The Bahamas is a British Commonwealth country, and final appe us on extradition are handled by London's Privy Council, a formal body of advisors to the Sovereign of the UK. While announcing the charges, Federal Prosecutor Damien Williams had a warning for anyone who may have helped bankman Freed, I would strongly encourage you to come see us before we come see you. If history is an indicator,

Bankman Freed may have bought plenty of time. Eight men facing drug charges in the US fought extradition from the Bahamas for more than a decade. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks well. Another round of hearings on the ft X collapse is coming up today in the Senate. New fd X CEO John Ray testified yesterday before the House Financial Services Committee. Republican Committee member Andy Barr joined us to give his

takeaway on the hearing. There was absolute concentration of control of this business, in these various businesses, in the hands of a very small group of in his in his words, grossly inexperienced and unsophisticated individuals. We also spoke with the Democratic Committee member Brad Sherman, who says Sam Bankman Phrad's downfall points to a need for more crypto regulation. When you're dealing with an enterprise the whole purpose of which is to come up with a currency system that allows

you to evade American financial law. Congressman Brad's going to be dealing with people who are going to evade American financial law. Congressman Brad Sherman and Andy Barr were guests on Bloomberg Sound Alma Joe Matthew. Catch the program weekdays at five pm Eastern on Bloomberg Radio. Right, let's turn to geopolitical news this morning, Karen, we are seeing rising

tensions between the world's two economic superpowers. The Biden administration will put China's leading maker of memory chips and more than thirty other Chinese companies on its trade blacklist that would prevent them from buying certain American technology. SMP futures down to point, Dow futures up a point, Nastack futures are lower by eight points ahead of the Fed decision. Today, local headlines and a check of sports. Next, This is Bloomberg.

It's a five oh seven on Wall Street where thirty one degrees in Central Park is gonna stay sunny, and Chile again today has only near forty down to the low thirties. 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. A three alarm fire has led the partial collapse of a New York Police Department evidence center in Brooklyn. The fire was first reported

by Police Department contractors working inside the Auto Pound. Acting Chief Jeffrey Maddery says the workers saw the flames on one of the evidence shelves and called for help. They they alerted the Police Department personnel inside. Everyone backed out. FD was alerted. Fire officials say everything inside the facility has either been lost or damaged, and that fire is

expected to continue burning for days. President Biden has signed the Historic Respect for Marriage Act, cementing federal protections for same sex and inter racial marriages into law. Who do you love and would you be loyal with that first you love? It's not more complicated than that. The law recognized that everyone should have the right to answer those

questions for themselves without the government interference. President Biden says the law requires interracial marriage and same sex marriage be recognized as legal in every state. Now we told you yesterday. New York is encouraging people to mask up, but New Jersey won't be putting a mask mad aid in place. Well, now we're learning kinectic. Governor Ned Lamont also says there's no need at this point for a mandate. The Hartford

Current reports. Lamont says he sees no immediate concerns, but he says you should wear a mask if you're showing any symptoms, and you should get a booster if you haven't yet. The chief epidemiologist at Hartford health Care, however, says you should wear a mask indoors as flu and COVID cases rise. Looks like we are going to get some more snow later in the week, mostly rain, with light snow in some areas. Most of that well Dland. It's going to be kind of gusty wind too. That

could make for a nasty Friday morning commute. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts in more than one d twenty countries. I'm Amy Morris. This is Bloomberg, Nathan al Amy Morris. Thank you five oh nine on Wall Street Time for the Bloomberg Sports Update, brought to you by Trice Stay Downey, Good morning, John

Stash Hour, Morning Nathan. Another example of a baseball player who turned down a contract offer, hit free agency and made a ton more money. That happened with Aaron Judge, Andrew Bogarts and now Carlos. Korea used and offered him five years a hundred and sixty million dollars. Korea just signed with San Francisco thirteen years, three hundred and fifty million. Between Korea, Bogarts and Trade Turner. Three shortstops just signed

contracts worth nine hundred and thirty million. The Devil's the last month had that thirteen game winning Streek have now lost their last three, beaten home by Dallas for to one. The Islanders lost in Boston four three in a shootout, Washington in Chicago and a milestone goal turn over in fraud and Manfustavus shots a store and its sala. It's a hundred goals in the National Hockey LEAGUEFK the call two more goals in Ovechkin passes Gordy how for second

all time. He's still going strong at age thirty seven. He had a hat trick last night. We'll see if vescan can break a record that most felt was unreachable Wayne Gretzky's eight hundred and ninety four career goals. NBA Celtics beat the Lakers in overtime Utah in the New Orleans seven game winning streak battle to the last two champs. Milwaukee beat Golden State. That Nick's play tonight in Chicago. The World Cup. It's Defendie Champ France and Cinderella Morocco.

The winner plays Argentina in Sunday's final. Mississippi State is going to play its bowl game, the school saying that's what coach Mike Leach would have wanted. Leech just passed away at sixty one. Leech was a true football innovator and a true character. John Bloomberg Sports, Thank you, John Bloomberg Sports was brought to you by Audie. Don't let someone else drive off in the Audi model you've always wanted.

Visit your local Try State Audie dealer to get behind the wheel of yours today, or visit Autie Offers dot Com for more information. Markets in a kind of wait in C mode ahead of the Federal Reserve decision later on this afternoon, we have SMP futures right now down one point down, futures down three, NASAC futures lower by eight points. That is a little changed to the downside across the board. Tenure treasury is little changed as well.

The yield on the benchmark ten year not three point five percent, and the yield on the two year is four point one eight percent. Nimex screwed up seven tenths percent seventy five nine cents a barrel. Comics gold down three tenths percent eighteen announced. The euro one point zero six six seven against the dollar, the end trading at the moment at one thirty five point zero three. This is Bloomberg. It's sound five twelve on Wall Street. You're

listening to Bloomberg daybreak on Fed decision Day. The final policy move of two comes our way two pm, Wall Street time ahead of it. We are very pleased to be joined by Jennifer Lee, senior economist at BMO Capital Markets. Jen are we going to get anything other than fifty basis points? It seems like that's pretty well baked into this market. Oh, good morning. You know what um we

have been. We're sticking with our fifty basis point move and our our call, and certainly yesterday's a CPI report, which um, wow, like that was when we were I can think of was wow after that's I've seen the headline increase much better than expected. I will certainly help solidify what he hinted at a couple of weeks ago. So I think we should all get ready to hear an updated version of that phrase. It's time to start

moderating the pace of great heights. And that's not probably what he's going to say again this afternoon, but I would be very cautious to know, to to expect any think to doublish. You know, it would be very much of an abrupt shift if he changes his his his views on this one number. So you're not expecting that the FED chairman is going to say wow the way you did to that CPI reported. Is that what I'm hearing from you, I think he will, you know, be optimistic.

You know, you know they they already said that about the October on CPI and hearing too. You know, having to modest UH increases in a row is encouraging. But his key freeze was UH was that he needed substantially more evidence, because you remember he said that that that November three, This was that he would take substantially more evidence to give them comfort that inslation that is actually declining. Now.

Whether two or two months is enough, um, I highly highly doubt it, um, But you know, certainly this is a step in the right direction. Are you expecting any major changes then to the language in the f O m C statement, Any idea that we could see a little bit more explicit thought from the Fed on whether they're gonna take their foot off the gas even further

from policy tightening. I think they're going to continue, you know, to to be cautious because it's it's just again, I still think it's too early to call the all clear on inflation. But at least he will he'll probably emphasize the point that rates will still need to be higher,

higher than they expecting, you know, sometime ago. So even though they're going to be moderating the pace of rate heights, you know, instead of Sunday five, you know, word of getting fifty, and we have to remember fifty is still quite a bit as well. Um. But at least the pace is starting to modest to moderately uh slow, But they probably stay higher for longer be and then they would need a lot more evidence before they're comfortable, and she starts to at least stop raising rates and then

at some point um cutting rates. But us I don't think that's gonna be part of the language or part of the vocabulary just yet. What do you think we'll get from the fens of economic projections? And how much stock do you put in those projections given how difficult it really has been to forecast this economy this year. Oh, I'll take it with a huge fistical assault. I mean, and you know it's it's it's not a crisi of criticism. It's just as he's just pointed out. I mean, it's

so difficult to make accurate calls these days. And you know, I don't think anyone was calling for such a modest CPO number, for example, But I think they're going to probably um, you know, um um lower the I want to be staries that they lower the the GP forecast a little bit as well, But certainly I will I will see this, you know, that soft landing, sort of shallow downturn call. You know, it is looking better and better, and we might see some of that playing out in

the forecast um this afternoon. Of course, one big vexing issue for this FED has been the ongoing tightness in the labor market and the concern that wage pressures will continue to feed into inflation. What do you think the FED is going to say about where unemployment needs to go to really tackle price pressures. So that is one area of which he hasn't really changed his tune too much. He continues to call the labor market very, very tight. And of this, you know, we're still seeing various very

solid job increases on a month to month basis. But the fact that job vacancies have have have been taking lower UM is good news for them. And this is all going back to the whole how I've been saying that, you know, good is bad and bad is good. You know, so they will continue to to point to the labor market and they you know, and he's actually been sort

of tweaking it, actually have a standing corrected. He teaches a little bit by saying that you know, it's um that it needs to come down a lot more and uh, you know before they can start up breathing a little bit easier as well, And so far we're not seeing that and it's going to be sometime I think before UM you know, we we see, um, some of the wage pressures ease a little bit now the the the NFIB survey I think earlier this uh this week did show that there was a smaller share of firms planning

to raise work or compa the next a few months. So that's you know, that is a step also in the right inflationary direction. Our last thirty seconds here, I'll put you on the spot a little bit. When you see inflation getting back to target. Oh, it's going to take a few years, I think. You know, we we still have you know, uh ss demand, I guess. And of course this whole labor market tightness is not going to play out. Uh, this is not helping the inflation story.

Uh um um handles, I guess. But we're gonna see we're starting to see obviously inflation coming down, but getting back towards the two ish range is probably something in in a late story. Thanks as always, Jen, great getting your thoughts. Jennifer Lee, Senior economist, BMO Capital Markets. Ahead of the final FED decision of the year two pm, Wall Street Time will find out where the Fed puts raids, and of course the news conference from Chairman Powell coming

up at two thirty. We will have it all covered for you on a special edition of Bloomberg. Surveillance begins at one thirty pm Wall Street Time. You can catch it all on both Bloomberg Radio and Bloomberg Television. Ahead of it, SMP. Future is little change down, Futures up five points, nastax, futures downten. 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.

He's a Bloomberg Business Flash and I'm kared Moscow and futures are little change this morning as we await the Federal Reserve interest rate decision. At a ten year treasury is up three thirty seconds. You have three point four nine percent. The yield on the two year four point one eight percent, and I'm ex scret oil is of three quarters of a percent, or fifty seven cents at seventy five dollars ninety six cents a barrel. That's a Bloomberg Business Flash. Now here's Amy Morris with Moore on

what's going on around the world. Amy, thank you, Careen. Lawmakers have hammered out a deal on a framework to fund the government this fiscal year, put in Congress on track to avert a shutdown. The House Select Committee investigating last year's attack on the U S Capitol will hold its final session on Monday. They plan to vote on

criminal referrals and sports. In the NHL, Alex Ovechkin reaches eight hundred career goals, Caps win, Devil's lose, Islanders beat the Bruins, and in the NBA the Celtics when the Warriors lost. Global News twenty four hours a day on Erin on Bloomberg quick Take, powered by more than twenty d journalists and analysts and more than one hundred twenty countries. I'm Amy Morris, this is Bloomberg. Nathan Okay, Amy, thank you for coming up to five twenty three on Wall Street.

I'm Nathan Hagar. This is Bloomberg Daybreak. The collapse of f t X and the arrest of its co founder Sam bankman Fried have raised questions about what comes next for crypto regulation. The new CEO of f t X, John Ray, test to find before the House Financial Services Committee yesterday on the company's finances. After that hearing, our Washington correspondent Joe Matthew spoke with one of the members of the committee, Republican Andy Barr. Let's listen in to

that conversation. Now, pretty remarkable testimony today from John Ray. Did you learn anything new? I think we did. We knew this was a huge scandal. We knew that this was one of the greatest frauds in America and investment history. But what we learned was that this was a total

and complete failure of all internal controls and governance. As uh the new CEO, Mr Ray pointed out, there was absolute concentration of control of this business, in these various businesses, in the hands of a very small group of in his in his words, grossly inexperienced and unsophisticated individuals, who who failed to implement virtually any of the systems or control is necessary for a company that is entrusted with other people's assets. And um, you know, the result is

a million creditors. And if you think of some of the other scandals in American business history and Ron the accounting scandal, or the Bernie made Off scandal, you know, you you had a number of individuals hurt, but the size and scale of the victims of this fraud are enormous and really overshadow those those other scandals. Well, you brought up this lack of accounting if if I can

even use that term in your exchange with John Ray today. Left. Listen, there's a whole lot of uh, financial statements that are either not audited or not available. Is that fair to say? That's? Um? In your declaration, you stated that you did not believe that those audited financial statements were reliable. Can you elaborate on why you believe that to be the case. Well, we've lost a billion dollars right of customer money, So by definition, I don't trust a single piece of paper

in this organization. Are you surprised, Congressman, by how little John Ray knows after a couple of weeks of of investigating, and how little he trusts still at this point, Well, no, because this was an unprecedented case of mismanagement and fraud where there was a gross lack of documentation. UM. But both in terms of you know, a lack of financial statements to begin with, and and then the nancial statements that are available and the word audited, Uh, he doesn't

have confidence that they are reliable. UM. And so I think The major point that he was making was that there's there's simply a lack of documentation, utter lack of record keeping was what he said. And and no internal controls UM and and the fact that there was so much commingling of assets UH and use of customer funds for UM risky trading UH and also UM for you know, diversion to things like the f t X Foundation, which was not core to the business, the various affiliates of

the f t X Foundation. There Again, this was a man Sam Bankman Freed who basically stole money from unwinning investors and diverted it into risky trading or other of political or charitable causes. The resulted in massive losses for those investors. And that was Republican House Financial Services Committee Member Andy Barr speaking with our Washington correspondent Joe Matthew on Bloomberg Sound On. You can catch the show weekdays at five pm Wall Street time on Bloomberg Radio. Stick

with us for more on the hearing. Next hour, we'll bring you Joe's conversation with Democratic Congressman Brad Sherman, who also sits on the Financial Services Committee. Bloomberg Day Break is brought to you by se I. Imagine your asset management firms operational infrastructure as a competitive advantage. Let se I show you how at se I c dot com slash i MS. Looking ahead to the FED decision and the market open this morning, futures aren't showing a whole

lot of movement. SMP futures are higher, but by just two points now, futures up twenty two. Nastic futures on the rise by three points ten. Your treasuries up to thirty seconds now the yield three point four nine percent. We'll get you your top stories and local headlines coming up first. Bloomberg Meteorologist Rob Carolyn with the weather forecast. I pressure has control. The patterns for today. Will have sunshine. This morning, we'll load to some high cloudiness moving in

from the west and southwest. This afternoon. Highs will be up around forty. It'll become cloudy overnight flows thirty to thirty five. Rain arrives tomorrow afternoon. Well inland. It may start us some wet snow heighs near forty five, rainy, breezy Friday forty five to fifty for the high. 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 E Living Freedom to Washington, d C, Bloomberg one to Boston, Bloomberg one oh six one does San Francisco, Bloomberg sixty to the Country, Sirius XM chto one nine team, and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. We're coming up to five thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moskee, and we're just about four hours away from the open of US trading. Let's get you up to day on the news you

need to know at this hour. A big week for critical economic events continues today with the Federal Reserve's final interest rate decision of the year. Influential economist and Stanford University professor John Taylor says the Central Bank cannot afford to pause hikes too quickly. The Fed got well behind the curve in the seventies, and we don't want to

have that situation. The inflation rate increase has been over a shorter period of time is maybe eighteen months, So we can do this if the Fed is determined, if the people are supportive of the Fed, if they'd realize this is the best way to get the inflation down. It's not by waiting and dilly dally, and it's really by taking the action right now. Stanford professor John Taylor says the central banks next steps depend on the path of economic data. Stay tuned for complete coverage today's FED

decision on a special edition of Bloomberg Surveillance. It all begins at one thirty pm Wall Street Time on Bloomberg Radio and television. Well, that Fed decision, Karen, comes after Stock's got a booth. From yesterday's consumer price reading, a key gauge of inflation posted its smallest monthly advance in more than a year. But Kathryn Kaminski, chief researched strategist with Alpha Simplex, says traders should expect more bumps ahead.

People are really anticipating that this will disappear a lot quicker than say the Fed is really willing to act. They still have to figure out how to deal with such a big difference between their desired inflation number and where we already are. Kathryn Kovinsky with Alpha Simplex, says she is closely watching next steps. J Powell outlines in today's news conference, Well now, Nathan, we moved to the

latest on disgraced FTX co founder Sam Bankman Freed. We're learning he plans to find extradition to the US and Bloomberg. Steve Rappaport joins US Live with Moore. Steve, good morning, Good morning, Karen and Nathan. US authorities can lobby the Bahamian government all they want to hand Bankman Freed over, but a group of advisors in London has the final say. That's because the island is a British Commonwealth, potentially tying up the case for years if Bankman Freed takes his

fight all the way to the Privy Council. Meantime, of Bahamian judge denied bankt Free's request for bail, deeming him a flight risk. An extradition hearing is scheduled for February eighth, Live in New York. I'm Steve Rappaport, Bloomberg Day Break.

All right, Steve, thank you. On a political note this morning, the Biden administration's ramping up tensions with China, planning to put China's leading maker of memory chips, and more than thirty other companies on its trade blacklist that would prevent them from buying certain American technology. All right, let's get you have to date on how stocks are faring this morning is and P futures are higher up a tenth

of a percent. They're up three points, and our future is also up almost a tenth of upper cent, or twenty nine points, and ASDAG futures up about the same of nine points ten. Your treasury of three thirty seconds, the three point four nine percent in the yield on the two year four point one seven percent, and n i'm ex scrud oil is at one point one percent of eighty two cents at seventy six dollars twenty one cents of barrel. Try to head your latest local headlines

plus a check of sports. And this is Bloomberg. All right, Karen, Thanks, It's five thirty one on Wall Street and Amy Morris is here with a look at what's going on in New York and around the world. Amy, good morning, Good morning, Nathan. A New York Police Department evidence center in a warehouse in Brooklyn has partially collapsed after a three alarm fire broke out yesterday. Fire chief John Hodgens says everything inside the facility has either lost or damage. This building is

not really a very sturdy type of building. It's a metal building with trust construction, which has a launched collapse potential, which is why we fact on thembers out of the building.

The fire is expected to keep earning for days. Lawmakers have hammered out a deal in a framework to fund the government this fiscal years, and a Republican leader, Mitch McConnell says they have to be done by December two, intend not to be back here between Christmas and New Year's and if we can't meet that deadline, would be happy to pass a short term cr in two early next year. McConnell says a short term bill is the most likely solution and that lawmakers will likely take up

an omnibus spending bill in the new year. Advocates calling on a federal judge to immediately pause New York City's initiative to involuntarily hospitalize those suffering from mental health episodes.

Miranda Van Dalen with New York Lawyers for Public Interests says the mayor's plan is unconstitutional and violates the Americans with disabilities that people are now scared to leave their homes because they think that they may get picked up by the police and involuntarily transported to a hospital for psychiatric evaluation. New York Mayor Adams says it's not a police let initiative and officers are being trained on who would meet the criteria. Sandy Hook School massacre took place

ten years ago to day. Twenty children and six adults were killed. In June, President Biden signed a law into into law, a landmark gun legislation package bolstering mental health programs. Global News twenty four hours a day on airand on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts and more than one hundred twenty countries. Any Morris, this is Bloomberg, Nathan. Thanks Amy three on Wall Street time for the Bloomberg Sports Update, brought to

you by tri State out He here's John Stenshower. All right, Nathan, it's great to be a free agent shortstop. Three of them just signed contracts worth nine hundred and thirty million dollars. First it was Trade Turner to the Phillies, and then Xander Bogars to San Diego. Carlos Carea headed to the San Francisco Giants thirteen years, three hundred and fifty million, the Giants using money they had originally hoped to use on Aaron Judge. The Yankees remained quiet other than keeping

Judge on the ice. Devil's cooling off lost at home to Dallas four one, their third straight lost. Islanders in Boston, with the Bruins have only lost once all season. The Bruins won for three in a shootout hat trick for Alex Ovechkin and Washington's win. The last of the three was career goal number eight hundred. Nicks go for a fifth straight win tonight in Chicago. Marocco has made it to the World Cup semifinals by allowing only one goal in five games. That was an own goal put in

by their own player. They've already upset Spain in Portugal. Today Morocco takes on defending champion France. The winner faces Argentina in Sunday's final. Sunday Night, huge game for the Giants in Washington. They just had that tie with the Commanders, so the two teams were tied in the standings. Brian Day Boles team winless in the last four games. It's a long season. There's quite a bit of adversity throughout it.

Maybe it's you know, for some teams, it's in the beginning, for some teams, it's the middle, for other teams at the end. You know, we're going through a little bit of it right now, and I think it's important to stay consistent um do the things that you need to do to try to win games. Washington only one loss in the last eight games. Jet Sunday host Detroit. The Lions have won five of the last six. John Stash Bloomberg Sports Nathan. Thanks John Bloomberg Sports Spot to you

by Audie. Don't let someone else drive off in the Audi 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 on Wall Street time for the Tri State Business Report. Here with that Bloomberg's Cory Commuters are spending more time on buses, trains, and metros as people travel longer distances between work and home and continue to avoid rush hour crowds in the

wake of the pandemic. The average commute increased by four minutes in New York City as well as Toronto and Milan this year compared to Bowshalth investors lost a legal fight to block the planned spinoff of its eye care business, which they alleged was an improper shifting of assets to protect the company from lawsuits. Of Superior court judge in Somerset County, New Jersey, ruled it would not be proper

to intervene because the spinoff was not imminent. New York is getting closer to welcoming a new high end skyscraper. Co Star reports One Madison Avenue, from Manhattan's biggest office landlord sl Green Realty, celebrated its topping out on Tuesday. The building which broke ground back in two thousand twenty has landed tech giants IBM as anchored tenant, Magrew Bloomberg, Trying State Business Reboard, IMD Corey, Thank you ed. It is six on Wall Street. The following is an editorial

from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Is the age of nuclear fusion finally dawning? After decades of research, scientists have been making serious progress. This week came news of the latest milestone. Scientists in California recently induced a fusion reaction that produced a net energy gain. In other words, it generated more power than it consumed. Net gain has been the elusive loadstar of

fusion research since the nineteen fifties. Realizing it should give a major boost to global research efforts and offer a tantilizing glimpse of fusion's real world possibilities. As the science advances, global cooperation will be essential, and above all, governments must avoid the sort of red tape that has needlessly held up traditional fission projects. Unlocking the power of the stars will be no easy feat. This editorial was written 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. Terminal customers can read more at O P

I N go. It is seven on Wall Street. We've been telling you about the US adding more than thirty Chinese companies to its trade blacklist, where Bloomberg News has also learned that Chinese leaders are planning to proceed with a closely watched economic policy meeting in Beijing tomorrow That comes as COVID infections continue to surge across the Chinese capital. Senior Chinese officials meet every December to plot out economic policy for the coming year. It's not five thirty eight

on Wall Street. Straight ahead. On daybreak, we'll get to the latest on the ft X saga as Sam Bankman Freed apparently plans to fight extradition from the Bahamas. We will get the update for you next from Bloomberg Cross Asset editor Joanna Ostnger. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, at Bloomberg Business at Land, at Bloomberg Quicktape. She's a Bloomberg Business Flash and I'm Karen Moscow. This update brought

to you by Sei Ya said. Managers don't get results that are off the charts from their solutions are off the shelf. Learn how sci is operating platform can turn infrastructure into a competitive advantage At s c i C dot Com, slash Tech US dot Index futures are little change this morning, Investors, debating whether inflation has eased enough

to encourage the federal reserved to slow monetary tightening. We checked the markets all day long right here on Bloomberg SMP futures Again little change and so are down in NOWNSDAG futures. The decks in Germany's down seven tenths of upper set ten. Your treasury up three thirty seconds. You're three point four nine percent. They yield on the two

year four point one seven percent. Dimex Screwed oil is at one point one percent of seventy seven cents at seventy six dollars sixteen cents of Arrol Comic School down three tenths per cent or five dollars seventy cents at eighteen nineteen seventy announced the euro one point six five eight against the dollar, British pound one point to three nine two then one thirty four point seven five and Bitcoin this morning at a third of a percent at

seventeen thousand, eight hundred dollars. And as a Bloomberg business flash, now here's Amy Morris with Moore on what's going on around the world. Amy think you care in the White House asking Congress for resources to help mitigate an influx of migrants crossing the US Mexico border. Democrats want to work with Republicans on bipartisan immigration reform as the title forty two policy is set to end in a week.

A new report from the CDC says long COVID played a part in more than thirty five hundred deaths in the US. Most who died from long COVID were older, white men and sports. In the NHL, Al Jovetchkin reaches eight hundred career goals as the Caps one the Doubl's lost, The Bruins beat the Islanders. In the NBA, the Celtics win in the Warriors Slopes global names twenty four hours a day on errand on Bloomberg Quick Take, bowered by more than twenty seven hundred journalists and analysts in more

than one hundred twenty countries. I'm anymore is this is Bloomberg, Nathan, Thank you Amy. It is forty two on Wall Street. This is Bloomberg Daybreak. I'm Nathan Hagar alongside Karen Moscow. So, like some of the other stories making news this morning, Apple is preparing to allow alternative app stores on its iPhones and iPads. We get that story from Bloomberg's Charlie Cellett.

It is part of a sweeping overhaul aimed at complying with strict European Union requirements coming in twenty twenty four. Sources say software engineering and services employees are engaged in a major push to open up key elements of Apple's platforms.

As part of the changes, customers could ultimately download third party software to their iPhones and iPads without using the company's app store, sidestepping Apple's restrictions and the up to thirty percent commission it imposed is on payments in New York. Charlie Pellic Bloombird, day break Right, Charlie Thanks Well. Elon Musk reportedly is taking drastic steps to cut costs of Twitter.

According to The New York Times, Twitter has not paid rent for its San Francisco headquarters or any of its global offices for weeks. It's also considering not paying severance packages, and has refused to pay an almost two hundred thousand bill for charter flights the week of Musk's takeover. Well, this isn't the kind of cut that Elon Musk might

like to see. Karen. He is no longer the world's richest person on the Bloomberg Billionaires Index, Elon Musk has been displaced by Bernard on No who owns almost fifty percent of the French luxury giant LVMH. According to the Billionaires Index, Musk has seen his fortune tumble by more

than a hundred billion dollars since January. The Tesla, Twitter and space X boss is now worth just under one sixty four billion dollars, enough to put him in second place now, and Tesla's stock is down more than fifty percent this year. Now to another story we're watching this morning, the case against Sam Bankman Freed, a story where no doubt going to be following for weeks, if not months

to come. Federal prosecutors and regulators are laying out fraud allegations against the ft X founder, as Bankman Freed indicates he will fight extradition from the Bahamas. Let's get the latest live now from Bloomberg News Cross Asset editor Joanna Ostinger, who's been following from the get go. Joanna, Good morning. Since last we spoke. We got the eight count indictment from federal prosecutors. What more does it tell us about the scheme Sam Bankman Freed is accused of running. Well, Nathan,

it tells us that this is pretty wide ranging. I mean we have the civil charges from the Securities and Exchange Commission, the Federal The criminal charges are now wire fraud, conspiracy to commit securities fraud, and then there are other accounts for allegedly misappropriating billions of dollars and customer funds for personal use and risky best by elan to research. So this is a pretty wide ranging case. Again, it looks like it's been done with such a speed that

they may feel like they are very strong evidence. And then of course there are even the Commodity Futures Trading Commission charges as well. So there's a lot coming at them Bank and Freed right now. And it's um, it's on a variety of fronts. Well, I have a prosecutors alleged that the arrangement worked between f t X and the Alameda Research Trading Arm. What's the what's the potential

for criminality that prosecutors are looking at here? Well, they're looking at a lot of things just regarding favored status and where the money flows went, where they might not have really where it might not have been legal, like with money used for Alameda that should have been squirreled away for f t X, for instance. There's also a little interesting factoids that Alameda was getting uh split second advantage in trading on f t X, which some people

had suspected but f t X had long denied. So there are a number of things coming out about just this close relationship and the use of funds and the use of this the whole apparatus that may be uh that may have been illegal. Now when you think about the implications for algorithmic trading, when you think about milliseconds being like years for that kind of trading, I mean, what does that say about the the the kind of

scheme that Sam bankman Fried was accused of doing here. Yeah, well, as you say, it's every little bit counts, And so if you have an edge, even if milliseconds there, if there's some little thing in the operations or an algorithms that could give an advantage in one way or the other to Alameda, that could have given them a huge advantage as opposed to the other participants in the system.

And that does seem like it's what people are looking at, what prosecutors are looking at now on top of the prosecutions, the potential regulatory complaints as well. We've got hearings still going on on Capitol Hill in Washington, d C. And some really blunt testimony from the new CEO of f t X. What were some of your takeaways from what John Ray had to say. Well, a lot of it isn't too surprising, Nathan, right, he's saying that probably they

won't be able to recoup all the customer funds. But I did think it was interesting too that he said they might be able to get more from the US ARM. There has been some speculation about exactly how much f t X US customers might get versus f t X overall, but it looks like f t X U s might be able to find some money here there, so I might do a little bit better. But in general, it seems like he's still saying, look, there's there won't necessarily be a lot if you're a customer or an investor.

For at the end of this now we have a Sam bankman. Freed is still in custody in the Bahamas awaiting his next sex tradition hearing. I guess in a couple of months here. Uh, it seems as though he's going to be uh fighting extradition. In our last minute here, what are the chances that Sam Bankman Freed returns to the US anytime soon? Well, it's touching no chances, right, because there are so many variables from you know, the the judge and hearing to what the different countries decide

to choose or their strategy. But he is fighting it, which is interesting because from comments he had made before, he had said, you wanted to help out and everything. But it could be months now, it could be years, and some of that may depend on what the Bahamas want to do. The US does appear to want to get him back as soon as possible, but it's looking like, as you said, it will be at least a couple of months until that initial hearing, and then um could

be much longer from there, so I could take a while. Yeah, we've seen some other high profile figures fight extradition from UK itself and it's a Commonwealth I think of Julian Osange in particular. That's an extradition process that literally took years. So the possibility we could be following this really for quite some time. Thanks as always, Bloomberg News cross s at Editor Joanna Ostinger following the f t X, SAGA

and Sam Bankman freed forests. This morning, SFP futures right now down one point down, Future is down six and Danstack futures are lower by thirteen points Tenure Treasury is up one thirty second, the yield three point four nine percent. Bitcoins trading higher by three tenths percent right now, right around seventeen thousand, eight hundred, All this ahead of a

FED decision this afternoon. You're listening to Bloomberg day Break, markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Victaque. This is a Bloomberg Business Flash and I'm Karen Moscow and US Dock Index futures they are little change this morning. Investors debating whether inflation has eased enough to encourage the Fed to slow monetary tightening. The check the markets all

day long. Yere at Bloomberg and SNP and Dow futures are a little change, So were nasdack futures. The decks in Germany is down about three quarters of a percent. Ten Your Treasury up one thirty second, deal three point four nine percent. They yield on the two year four point one eight percent, and nim X screwed oil is up nine tenths per cent, or sixty six cents at seventy six dollars five cents of barrel. And that's a Bloomberg business flash. Nathan Okay, Karen, thanks for coming up

to five fifty six on Wall Street. It's time for our daily Bloomberg Law Brief, exploring legal issues in the news. Today we look at Indiana, which has filed two novel lawsuits against TikTok. They claimed the Chinese own social media platform misleads consumers by exposing children to inappropriate content and allowing China access to their data. Now, this is the first time a state has sued TikTok, even though the federal government has been fighting to ban the app or

reduce its affiliations with China. For more, Bloomberg's June Grosso speaks with Fred Tate. He as a law professor at Indiana University who just so happens to specialize in information privacy. The Indiana Attorney General is claiming that TikTok misleads consumers

parents about the age appropriateness of its content. Right. One lawsuit is claiming exactly what you said, and what they're really saying is that TikTok is not behaving consistent with the requirements of the Apple Store and the Androids Store, so that they're labeling of their app in terms of the age appropriateness is not accurate. And so the legal claim there is that they're misleading Apple and Androids, but at the effect is to mislead parents and you know,

people in Indiana. And then the other claim is that TikTok is claiming that it does not share data customer data with the Chinese government, and the Attorney General is alleging that they do. Now, that's not illegal to share information with the government. Lots of social media site share information with the government, including with the US government. The argument would be that it's a fraud to say you're

not sharing when in fact you are sharing. Is it going to be difficult to prove that TikTok is not describing accurately the appropriateness of its app for children, because whether there's enough notification or whether it's misleading, could that

be in the eye of the beholder. It will be very complicated to prove because it's not enough to just say it's misleading, but generally you would have to show that it's misleading and that it's material, that it's misleading in a way that consumers would care about, and then that it's either not easily detected or not easily avoided, because you know, sometimes if you're misled about something, but if you just open your eyes you can see that it's not the way it was laid out to be,

then it's okay. So they're gonna have to show a lot of things. And a related issue is is it a pattern of this or I mean, really, all filters let something through that somebody doesn't like, and so that's not going to be enough to just show, hey, you know, my ten year old son got something on TikTok that was inappropriate. You're going to have to show that this is a regular pattern and that TikTok knows about it

or isn't acting reasonably to prevent it. And I think that will actually be very hard to show, because you know, anyone who uses the Internet knows first of all that a sense is often in the eye of the beholder, and second of all that even the best filters, the best design filters, are usually evated. That's Indiana University law

professor Fred Kate speaking with Bloomberg's June Grosso. You can catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law podcast or downloading the show at Bloomberg dot com. Slash podcasts, and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b Law Go. Looking ahead to the market open and this afternoon's FED decision, the final policy decision of

futures are little change. Sp futures unchanged right now down futures up nine points, NASTAC futures down five ten, your treasury up one thirty second yield three point four nine per cent. We checked the business headlines, all the news you need to start your day. Hour two of Bloomberg Daybreak starts now.