Bloomberg Daybreak: December 14, 2022 - Hour 2 (Radio)

of tomorrow's Bank of England decision. F t X co founder Sam Bankman Freed plans to fight extradition to the US, and the US plans to add more than thirty Chinese companies to its trade blacklist Hi maybe more as a three alarm fire at a police evidence warehouse may burn for days. Flags or half staff. Remembering Sandy Hook ten years ago, I'm John stashtown Swards, another big baseball free agent signing. The Islanders and Devil's both lost the World

Cup semifinals in today. That's alls Training ahead on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg N one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine sixties and Francisco Sirius XM one nine team and around the world Old on Bloomberg Radio dot Com

and via the Bloomberg Business app. Good morning, I'm Nathan Hagar and I'm Karen Moscow, US not Index futures are a little change this morning six o one on Wall Street, and we check the markets all day long year on Bloomberg Radio. S and P futures that will change. So are down futures now. Zack Future is moving lower now down about a tenth of upper cent or seventeen points. The decks in Germany is down three quarters of a percent.

The ten year treasury up one thirty second deal three point four and nine percent, and they yield on the two year four point one eight percent, Nathan Karen. A big week for critical economic events continues today with the Federal Reserve's final policy decision of the year. Let's get our coverage started with a preview from Bloomberg Economics correspondent Michael McKee. Fed officials are going to raise the nation's bench park lending rate by half a percentage point today.

The question is what will they do next? After two consecutive soft CPI reports, investors are lowering 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 media 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 overconfidence on Wall Street? Michael McKee Bloomberg Daybreak. All right, Mike, thank you well after today. The feds 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 happening to inflation. What's happened to real h o'connory. 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 made the comments in an interview with Bloomberg's Kathleen Hey. Stay tuned for complete coverage of today's fan decision on a special edition

of Bloomberg Surveillance. It all begins at one thir pm All Street time on Bloomberg Radio and Television, Karen. The FED decision comes after a key gauge of consumer prices posted its smallest gain in more than a year, and that fueled the surgeon stocks. At yesterday's opening bell, the SMP five hundred rows as much as two point eight percent before pairing those gains to close higher by three quarters of a percent. Garge Chowdry is Black Rock's head

of Ice Shares investment strategy. Policy is working 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 black Rocks. Garg Choudry notes, overall CPI increased one percent from the prior month, bringing inflation to an annual

rate of seven point one percent. Well, inflation is also a front end center in the UK, Nathan, with fresh data out of tomorrow us a Bank of England decision and we go to London and get the latest or the Bloomberg's Human Parts. Good morning Huan, Good morning Karen Nathan. Another of the world's biggest economies is seeing a softening of inflation. Consumer prices in the UK rose ten point

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 in Big Daybreak, are you in Thanks. Let's turn now to the latest developments on Sam Bankman free.

The FTX co founder apparently plans to fight extradition to the US and Bloomberg Steve Rappaport is 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 appeals 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 Process cuter Damian 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. And if history is an indicator, Bankmn 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 run of hearings on the ft X collapse is coming up today in the Senate. New f t 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 by Democratic Committee member Brad Sherman, who says Sam Bankman Freed's downfall points to a need for more crypto regulation. When you're dealing with an enterprise, purpose of which is to come up with a currency system that allows you to evade American financial law. Then you're going to be dealing with people who are going to evade American financial law. Corgresson, Brad Sherman, and Andy Barr both were guests on Bloomberg

Sound On with Joe Matthew. Catch the program Like Davis at five pm Eastern on Bloomberg Radio. Now, let's turn to some geopolitical news this morning. Karen, we're seeing rising tensions again between the world's two economic superpowers, the Biden administrations putting 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. And another note on China, Nathan, Bloomberg News has learned Chinese leaders are planning to proceed with a closely watched economic policy meeting in Beijing tomorrow. The decision comes as COVID infections surge across the capitol. Senior Chinese officials meet every December topplot out economic policy for the coming year. Straight ahead, your

latest local headlines, plus a check of sports. And this is Bloomberg in teren six O seven on Wall Street. Thirty two degrees in central parts. Gonna be sunny, but continued chili today with highs only near forty degrees, back down to the low thirties tonight. Amy Morris is here with more on what's going on in New York and around the world. Morning Amy, Good Morning Nathan. A three alarm fire has led to 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 Madri says the workers saw flames that appeared to have started on one of the evidence shelves, and they called for help. They saw a fire, They alerted the police Department personnel inside. Everyone backed out was alerted. Fire officials say everything inside the facility was either lost or damaged. The fire is expected to burn

for days. President Biden has signed the Historic Respect for Marriage Act, cementing federal protection for same sex and interracial marriages into law. Who do you love and would you be loyal that person you love? It's 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 it a racial marriage and same sex marriage be recognized as legal in every state. A New Wall Street Journal polls shows Florida Governor Rhnde Santis now holds an early lead over Donald Trump among GOP primary voters fifty two to thirty eight percent. In a hypothetical contest, we told you yesterday in New York is encouraging people to mask up. New Jersey won't be

putting a mandate in place. Well, now we're learning. Connecticut 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 that you should wear a mask if you show any symptoms, and you need

to get boosted if you haven't yet. The chief epidemiologist at Hartford Healthcare, however, says you really do need to wear a mask indoors as flu and COVID cases rise, and Governor Lamont has ordered all US and state flag it's to half staff today in remembrance of the victims of the Sandy Hook Elementary School killings. It was ten years ago today Adam Lanza opened fire at the school,

killing twenty children and six adults. Global News twenty four hours a day on errand on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Amy Morris. This is Bloomberg, Nathan. Thanks six o nine on Wall Street Time for the Bloomberg Sports up they brought to you by Tri State

out of your John Sanshwer, Thanks Dathan. Another example of a baseball player who turned down a contract offer, hit free agency and ended up making much more money happened with Aaron Judge Andrew Bogarts. Now Carlos Correa wants the first overall pick are the Astros. Houston offered him five years, a hundred and sixty million a couple years ago. Korea just signed with the San Francisco Giants thirteen years, three hundred and fifty million. Between Corea, Bogarts and Trey Turner.

Three shortstops just signed contracts worth nine hundred and every million. The Devil's the last month had that thirteen game win streak, have now lost their last three, beaten at home by Dallas for to one. Islanders lost in Boston for three in the shootout, Washington in Chicago and m Milestone goal turn over in fraud and cost shot they score Salle. It's eight hundred goals in the National Hockey League. K had to call two more goals in Ovechkin passes Gordy

Howe for second all time. He's still going strong at age thirty seven. That we'll see if he can break a record. Most felt was unreadable Wayne Gretzky's league leading eight hundred and ninety four career goals. Sal Thanks beat the Lakers in overtime. Utah end in New Orleans. Seven game wins make a battle the last two NBA champs. Milwaukee beat Golden State. Nick's played tonight in Chicago with the World Cup Today's defending champion France and Cinderella Morocco.

The winner plays Argentina in Sunday's final. Mississippi State is going to play its bowl, aim the school saying that's what coach Mike Leach would have wanted. Leach passed away at sixty one. Leach was a true football innovator and a true character. John's Bloomberg Sports Nathan all Right, John, thank you Bloomberg Sports Report was brought to you by Audie.

If don't let someone else drive off in the autie model you've always wanted, visit your local tri state autie dealer to get behind the wheel of yours today, or visit autie Offers dot com for more information. Ahead of the market open, ahead of the Fed decision, the final policy decision of two futures are moving just a touch lower now. We have SMP futures down six points, a

decline of about a tenth percent. NAZAC or futures are down twenty four points, that's a drop of two tenths percent, and the Dow futures right now down a tenth percent or thirty seven points ten. Your treasury is up to thirty seconds yield three point four nine percent yield on the two year four point one seven percent. Looking at the thirty year yield right now, that's at three point

five four percent six twelve on Wall Street. This is Bloomberg Daybreak, as we are now just hours away from the final policy decision from the Federal Reserve of twenty twenty two. Bloomberg Economics and Policy correspondent Michael McKee is in Washington, d c for the FEDS move on rates and the news conference, of course from chair j Powell and Mike is with us now live from our Bloomberg studios in Washington, d C. Welcome back, Mike. The wide expectation is that this is gonna be the day the

Fed starts to ease up on the gas. You know, it's kind of funny. I was talking about this earlier. It's like we're all going to a show, but members of the cast have been out telling us the plot for quite some time. The FEDS decision to go fifty basis points well telegraphed, and nothing in the CPI report yesterday changed that. I think they also are going to make the case that there are going to be additional rate increases, and they will have new economic forecast and

the new dot plot out. So even though we know what the rate move is going to be, there's gonna be plenty for the market to digest after j Pal

is done. And I guess there's a little bit of a question, isn't there going into this meeting about whether the data we've seen on inflation, the ease from the peak back in June, is going to be enough for Chairman Powell to start to at least hint at UH more long term easing up later on in three, or whether Chairman pal is going to keep up that hawk ish message and sort of fight this market that's looking

for that pivot. I would likely come down on the side of fight the market, because the Fed can always change its mind. But if you let the market start to believe you're going to cut rate sometime in three, then there's a lot of people are gonna figure, well, i'll just price that in now, and then that takes away the monetary policy impact on inflation that they're trying

to have. So I think he'll be as ambiguous as possible and say something like we're going to leave rates for an extended period um to try to convince people that there's no there's nothing on the horizon right now in terms of rate cuts. That's something that they will decide as the year goes along. So it doesn't sound then like you're expecting that we're going to get much in the way of changes to the language in the

final f y MC statement. I don't think. So there's not a lot of percentage change for UH for gain for them in doing that. They will adjust the economic outlook economic analysis a little bit to reflect the latest data. It will be interesting to see what they say about inflation after the CPI report, Probably something along the lines of inflation improved, but there are still pressures out there,

something something like that. But the rest of it is probably going to be pretty much word for word what we have seen in the past several statements. What are you looking for, Mike, in terms of the projections on unemployment, the tightness in the labor market that's been so vexing

for this FED over the last few months. That'll be an interesting thing to look at it when we get the summary of economic projections, because of course the FIT had been forecasting that we would get to four and a half percent or so on unemployment by the time they were finished. Well, they're almost finished, probably raising rates, and unemployment really hasn't moved significantly. So do they expect

still expect a big move in unemployment? And uh? If so, then the question would be why, you know, given that this is the last policy decision of the year, it's kind of interesting to sort of think about what the effect of this really aggressive rate tightening over this last year has done. In two I mean we haven't really experienced uh, this kind of rapid increase in interest rates in decades. Mike. Yeah. The old saying is that the

policy works with long and variable lags. And that's true because many of the decisions that you make based on buying UM costs are borrowing costs rather are things that are are more expensive and take longer to to decide on, say moving house or buying a car, buying appliances, that sort of thing. So it does take a while for the borrowing costs to reach the end consumer of it, even though they get priced into the markets right away.

And so, uh, the ft isn't sure yet how much of an impact it has had, and most of that will probably come first second quarter of next year, and so we'll see, uh, we we will see this caution from them about how high they need to go because they don't know yet what they've already done. Our last thirty seconds here, Mike, what's the main point you're looking to hear from Chairman Powell today? Well, I think everybody kind of wants to know where we are in a timeline.

Do we continue to raise rates at every meeting? Uh? Does does that slow down? Um? And then I think everybody wants to know whether he is going to support Morocco or France playing in the World Cup at exactly the time the FED is meeting. So so a lot of people are gonna be torn between flipping between those two things. On Toll, Well, we know that there isn't gonna be any lag to your productivity today Bloomberg's Michael, Yeah, you're probably gonna be watching it. You're gonna have like

two eyes, one on Pal, one on the game. Thanks as always, Mike with us this morning from Washington ahead of the FED decision and the j Pal news conference that Mike will be watching with the game on his smartphone. Bloomberg Radio and Television hasn't for you covered a special edition to Bloomberg Surveillance. Starting at one thirty Wall Street time. You're listening to Bloomberg Daybreak this morning, markets headlines and breaking news twenty four hours a day at Bloomberg dot Com,

the Bloomberg Business at Hand at Bloomberg Cricktake. This is a Bloomberg Business Flash and I'm Karen Moscow. US Dog index futures have turned lower as investors debate weather inflation has east enough to encourage the fed to slow monetary tightening. We checked the markets all day long here on Bloomberg Radio. S and P futures they're done about nine points right now, down to tens of upper cent. DAL futures down to tens of upper cent or sixty three points, and NASDAC

features down three tons percent or thirty six points. The decks in Germany's down eight tenths of upper cent ten. Your treasury, little change, you'll three point four nine percent they yield on a two year four point one eight percent. Nine X screwt oil is up one percent or seventy three cents at seventy six dollars, twelve cents of Barrel comic school down four tens per cent or six dollars ninety cents in eighteen eighteen sixty announced. And that's a

bloom Burg business flash. Now here's Amy Morris with Moore on what's going on around the world. Amy, thank you, Karen. Lawmakers have hammered out a deal in a framework to fund the government this fiscal year, helping to avert a shutdown. The House luct committee investigating last year's attack on the US Capitol will hold its final session on Monday, and

in sports. In the NHL, Alex of Etchkin reaches eight hundred career goals, the Caps won, the Devil's lost, the Bruins beat the Islanders, and in the NBA the Celtics one of the Warriors lost. Global News twenty four hours a day, powered by more than twenty journalists and analysts in more than one hundred twenty countries. I'm Amy Morris. This is Bloomberg, Nathan. Thanks Amy. It's six twenty three

on Wall Street. I'm Nathan Hager. This is Bloomberg Daybreak, and we want to bring you more of our coverage of the collapse of a f t X and the arrest of its co founder, Sam Bankman Freed. Bloomberg Washington correspondent Joe Matthew spoke with Democratic Congressman Brad Sherman about what we learned yesterday when ft X is current CEO testified before the House Financial Services Committee and the kind of punishment Sam Bankman Freed could face. What do you

think of John Ray. I think he's doing a good job. But the the barn door was open, the horses left, and the we'll see what he what he can do. Do you have an allergy to crypto just in general. And there's no wrong answers here. This isn't like a crypto show on Bloomberg or anything. But I can see you're not a fan. No, the I've been trying for five years to either banned American investment in crypto or to force the entire crypto ecosystem to follow them know

your Customer rules. They won't do that because the whole purpose of crypto, the business plan, is to be a secret currency, hence the term cryptocurrency, and to compete with the US dollar by having one advantage over the US dollar, and that is that it's a currency. They can be better used by those who engage in sanctions, evasion, tax evasion. Um based in bankman Freed will tell you about bankruptcy, court evasion, drug dealing, etcetera. Is this the moment here?

Is ft X a crypto story that is this sort of the the hook that leads to the regulation or is this just an old fashioned offshore robbery story. Um My fear is that it will be regarded as the latter. And the fact is, though, 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. Then you're going to be dealing with people who are

going to evade American financial law. Talk to us about the donation's Congressman, are you concerned the Democrats who took money from Sam Bank and Freed could bring credibility issues to this story. Are the two parties prepared to tackle this together? Well? Uh, the fact is Sam bankman Freed uh did interview last month in which he said he gave as much money to Republicans as Democrats, but the Republican money he gave the dark money organizations. And he

explained why, and it made perfect sense. He says, the press is liberal, probably is, and they would have beaten him up for giving money two Republicans. So he gives the Republican money under the table, gives the Democratic money over the table. He's an equal opportunity influence purchasers. And then uh uh Ryan Slom, the co CEO of one of the FDx enterprises, did another million dollars exclusively to Republicans. So uh, they they had one thing, keep the sec

out of the crypto world. And the point, the point I made to my colleagues today is don't come here and trash. Sam Bankman freed and then passes bill. His bill is designed to provide a little patina of regulation to crypto uh, to give authority to the CFTC, a much weaker regulatory organization, and then make people feel safe. That was Democratic Congressman Brad Sherman speaking with Bloomberg's Joe

Matthew on sound On. You can catch the show weeknights five pm Wall Street Time on Bloomberg Radio, or download the sound on podcast wherever you get your podcasts. Let's look a bitcoin right now, trading four tenths of a percent higher this morning, right around seventeen thousand, eight hundred SMP futures are down six points, Stayle futures down forty two, and Nasdaq futures are lower by twenty seven points ten.

Your treasury yield three point four nine percent. We've got your top stories, local headlines, and the full check of markets just ahead. First, let's check in with Bloomberg meteorologist Rob Carolin for your weather forecast. High pressure is in control today. We'll see sunshine, but we'll also notice that sun getting a little dimmer this afternoon. Is some high clouds move in from the west and south. Temperatures today at the forty It will become cloudy overnight thirty to

thirty five. Low pressure is headed towards the region tomorrow that will result in rain tomorrow afternoon. Element may start as wet snow forty five, rainy, breezy Friday forty five

to fift eight. I'm Rob Carolyn with your three and a forecast on Bloomberg eleven three oh broadcasting live from the Bloomberg Interacted Broker's studio in New York, Bloomberg E Living Free on to Washington, d C, Bloomberg nine one to Boston, Bloomberg one O six one does San Francisco, Bloomberg nine sixty to the country, Sirius XM T one ninet and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak, coming up to

six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow or just a three hours away from the open of US training time for the five things you need to know to start your day. Brought to you by Interactive Brokers. Interactive Broker's clients are an interest of up to three point three three on the idle cash and their brokerage accounts. Visit ibyk r dot com slash interest rates to learn more. At first, the Federal Reserve is set to decide on interest rates for

the final time this year. Influential economist at 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 fetish determined, if the people are supportive of the Fed, if they realized 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. John Taylor spoke with Bloomberg's Kathleen Hayes. Stay tuned for coverage of today's FED decision at one thirty pm Wall Street Time on bloom Burg Radio and television. Well the Fed decision comes, Karen after Stock's got a boost from yesterday's CPI reading the key gauge of consumer prices posted its smallest monthly advance in

more than a year. But Kathryn Kaminsky, she 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 Kaminsky with Alpha Simplex says

she's closely watching the next steps. Jade Powell outlines in today's news conference, Well now, Nathan, we moved to the latest on disgraced ftx go founder Sam Bankman Freed. We're learning he plans to fight extradition to the US and Bloomberg. Steve Rappaport joins US Live with more. Steve, good morning, Good morning, Karen, and Nathan. U s authorities can lobby the Bohemian 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 up the case for years if Bankman Free takes his fight all the way to the Privy Council meantime of Bahamian judge denied Bankman Freed's request for bail, deeming him a flight risk, and extradition hearing is scheduled for February eighth,

Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, think we have a political note this morning as well, the Biden administration's ramping up tensions with China as it plans to put China's leading maker of memory chips and more than thirty other companies on the US trade blacklist that would prevent them from buying certain American technology. And that's the five things that you need to notice start your day. Brought to you by Interactive Brokers. Again, futures

are moving lower this morning. S and P Future is now down five points or about a tenth of upper cent DAL Future is down almost a tenth of upper cent or twenty nine points, and NASDAC features down two tenths per cent er twenty one points. Ten year Treasury up one thirty second deal three point four and nine percent, and they yield on the two year four point one eight percent straight ahead, your latest local headlines, plus the check of sports. Sam. This is Bloomberg. Thanks Karen sixty

one on Wall Street. Amy Morris is here now 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 Hodgen says everything inside the facility is 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 large collapse potential, which is why we backed on members out of the building. Fire is expected to keep burning for days. Lawmakers have hammered out a deal in a framework to fund the

government for the fiscal years. Senate Republican leader Mitch McConnell says they have to be done with this by December twenty two, 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 into early next year. McConnell's has a short term bill is the most likely solution and and that lawmakers will likely take up an omnibus bill in the new year. Republicans seem

to be leading toward Florida Governor Ronda Santis. A New Wall Street Journal poll shows to Santis now leading up, holding an early lead over Donald Trump among GOP primary voters fifty two to thirty eight percent, and a hypothetical contest. Advocates are calling on a federal judge to immediately pause New York City's initiative to involuntarily hospitalize those suffering from

mental health episodes. Miranda von Dalen with New York Lawyers for Public Interest says the Mayor's plan is unconstitutional and violates the Americans with disabilities at People are now scared to leave their homes because they think that they may get picked up by the police for psychiatric evaluation. New York Mayor Adams says this is not a police let initiative.

Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Amy Morris, this is Bloomberg. Nathan six thirty three on Wall Street time for the Bloomberg Sports that day, proxy by Fries state, out of your stunts, Okay, Nathan, It's great to be a free agent shortstop. Three of them just signed contracts worth a total of nine hundred

and thirty million dollars. Trade Turner to the Phillies, Andrew Bogart's to San Diego, and now Carlos Correa 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 on the ice. Devils are cooling off, lost at home to Dallas four to one, their third straight lost. Islanders in Boston, where the Bruins only lost

once all season. The Bruins won for three you know, shootout a hat trick for alex O Vets get in Washington's win. The last of the three was career goal number eight hundred. Nicks go for a fifth grade win tonight. They're in Chicago. Morocco has made it to the World Cuffs Semifinals by allowing only one goal in five games

that was an own goal. They've already upset Spain and Portugal, and today Morocco takes on defending champion France and the winner faces is Argentina in Sunday's World Cup Finals Sunday Night, huge game for the Giants in Washington. They had that tie with the commanders of the two teams are tied in the standings. Brian day Balls team winless in the last four games. 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 in 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 its last eight games that Jets Sunday host Detroit and the Lions have won five

of the last six. John Stash went Bloomberg Sports. Nathan all right, John, thank you, and 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 and State Autie dealer to get behind the wheel of yours today, or visit Autie offers dot Com for more information. Sp futures down down seven point, stuff futures down, and NASTAC futures are lower by twenty nine points six

thirty five on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve Potisk on wf L A Tampa Bay. We're talking about a possible two billion dollar sail of a St. Petersburg software company. I'm Corny Tanaho on ktr H in Houston. The cost of dessert keeps on surging ahead of holidays. I'm Kimberly Adams

and on KYW in Philadelphia. I'll be reporting on one of the world's largest banking organizations sending out recruitment emails to rival bankers facing cuts. I'm Stephen Carol and Bloomberg d a B Radio in London. We've been reporting on UK consumer price inflation slowing more than had been expected in November, but staying close to a forty one year high.

I'm d Cory on w w J in Detroit. I'm reporting GM wants to make sure it has the minerals it needs to be a major player in electric vehicle Those are some of the stories our hundred Bloomberg journalists and analysts are working on this morning around the world. It's six thirty 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 tantalizing 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 feet 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 commentaries every weekday at this time, terminal customers can read more at O P I n go. As we look ahead to the market open and the final Federal Reserve decision of twenty twenty two, futures are taking a leg lower. We have SMP futures right now down eight points down, futures are down fifty five and NASDAC futures are lower

now by thirty three points ten. Your treasury is little changed now, the yield just shy of three point five percent yield on the two year four point one eight nim X scrudgs moving higher. That's on one percent or seventy six cents at seventy thirteen of barrel for West Texas Intermediate Comx skolled down four tenths percent at eighteen eighteen fifty announced straight ahead on daybreak, we head to the nation's capital. The f t X fallout new tensions

with China and our Republicans fading former President Trump. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quicktake. This is a Bloomberg Business clash and I'm Karen Moscow, and futures are lower this morning. We go to the first word breaking news dash for today's morning call, and here's Bill Maloney. Bill, good morning,

and good morning, Karen. That's right. Modest losses in the US futures right now at down futures down forty six point says to be dropped seven and and as the futures are lower by twenty nine, the US ten yield at three point five percent, Gold is down six, Oil is trading in the green, and bitcoin is a little changed. Japan rose point seven percent overnight, while your pre markets are in the red this morning, and back in the US. On the economic Frontay thirty, the import price in next

and at two o'clock the eff MC rate decision. In other news, the i e A said that oil prices may rally next year as sanctions squeeze Ussian supplies and wrapping things up Hilton was cut to neutral over at C Group, Martin mary And was cut the equate at Morgan Stanley, and Liberty Global was cut to neutral over at Goldman Sachs. Live from the First Breaking News doscom do maloney care? All right, Phil, thank you to hear live breaking news over your Bloomberg type squawk on your terminal.

Sc 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, all right, thank you. Care and 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 one week. A new report from the CDC says long COVID played a part in more than thirty deaths in

the US. Most who died from long COVID were older white men and sports. In the NHL, alex Ovechkin reaches eight hundred career goals as the Caps one the Devil's lost, the Bruins beat the Islanders. In the NBA, the Celtics one of the Warriors lost Global news twenty four hours a day on errand on Bloomberg Quicktake, powered by more than twenty hundred journalists and analysts in more than one hundred twenty countries. I'm Amy Morris. This is Bloomberg, Karen right, Amy,

thank you. It is sixty two on Wall Street and we turned to news and science and technology now with the Bloomberg n j i T STEM Report. It has brought to you buy New Jersey Institute of Technology and j i T offers New Jersey's first undergraduate degree in fintech tech driven finance focused. What will you make at n j I T. Learn more at n j I T dot edu slash fintech. Now, here's just making news

and science, technology, engineering and maths. A dust devil sound like on Mars Will announcer Rover by chance had its microsphone microphone on when a whirling tower of red dust passed directly overhead. Recording the racket, scientists yesterday released the first of its kind audio. It's about ten seconds of not only rumbling gossip up to twenty five miles per hour, but the pinning of hundreds of dust particles against the

rover perseverance. Bloomberg News has learned that Apple is preparing to allow alternative app stores on its iPhones and iPads in the coming months. The historic pivot is a response to EU laws set to take effect in four aimed at leveling the playing field for third party developers. Regulators have accused Apple and Google of wielding too much power as gatekeepers are the biggest mobile app stores. And Elon Musk is no longer the richest person in the world.

He's been displaced by Bernard are No, who owns almost fifty percent of French luxury giant LVMH. According to the Bloomberg Billionaires and Dex, Musk has seen his fortune tumble by more than one hundred billion dollars since January. The Tesla, Twitter and space X boss is now worth just under a hundred sixty four billion dollars. And that's a Bloomberg and j I t Stem report. Nathan, Now, that's a lot of money to dry your tears on. Thank you, Karen.

We're coming into on Wall Street time now to check what's going on in d C. Some of the top stories in our nation's capital included second round of hearing is coming up today on the collapse of f t X and co founder Sam Bankman freed, the US adding more than thirty Chinese companies to its trade blacklist, President Biden welcoming African leaders in a bid to undo an image of US neglect of the continent, and a polling

shift for Republicans ahead of presidential race. Let's bring in Bloomberg Government reporter Emily Wilkins to take a look at some of these stories. Emily, I'm sure you were following the ft X hearing at the House Financial Services Committee very closely yesterday. What were your takeaways from that? Um, it was definitely an interesting hearing. I mean, certainly it the I think one of the more notable things was that the night before Sam Bateman Freed was supposed to appear,

he was arrested. Chair of the committee, Maxim Waters, was not particularly thrilled about that. She said that Americans do need to hear from SPF on exactly what happened. But they did wind up speaking with John Ray, who was

handling the company's restructuring. And the big thing that I think he said there, I don't think it comes as a surprise was the first time you've really heard it is that folks who used f t X will likely not be able to get their money back, and he expects international consumer is to fare far worse than ones

in the US. Certainly, a lot of what was happening yesterday, I think a lot of what the committee is trying to get at here is just sort of understanding what went wrong, because now the big question Washington is how does Washington need to regulate the space? How can they regulate this space? There's certainly a bipartisan interest in it. We've seen bipartisan legislation already come out looking at digital assets.

And I asked Kevin McCarthy, who's going to be the likely speaker of that House next year, about it yesterday and he said, yes, there definitely is a spot for regulation, and and certainly there's a sense that that they that they do need to move on this particular issue. Uh. And so I think that's sort of what all these hearings are just laying the groundwork for, is for eventual action on in some sort of legislation, probably of course

not this year, but but in the next year. And of course we're going to see more of those hearings coming up later today at the Senate Banking Committee. So we'll see if there's any further development there. In the meantime, Emily, we've got yet more evidence that trade tensions between the US and China aren't going away anytime soon. Uh. No, Bloomber is reporting that the Biden administration is going to add another thirty Chinese companies to a blacklist trade preventing

them from buying certain American components. These are companies that the U says that they cannot prove that aren't supporting the Chinese military, So that is part of the concern there. And this includes the makers of memory chips, including Youngstering Memory Strategies. They are a major major chip maker UM and this could potentially have serious impacts on their business. Uh. Putting companies on this list really decimated Huawei Technologies consumer

smartphone business, and it's harmed others as well. And this comes after Biden and build a really sweeping set of restrictions on China's ability to buy semi conductors and chip

making equipment in October. So it seems like the US and China we've had Biden and she talked a little more of a bit more base to base, have that one meeting, but it still seems like on the issues of tips, on the issues of semi conductors, uh, the two of them still you know, they're not seeing eye to eye on the U S I think is really trying to move to make sure that their own industries

are protected as well as some national security concerns. Yeah, it's interesting to see this latest evidence of a US Chinese trade tensions unfolding as President Biden gets ready to host a summit with Africa leaders. As you know, Emily, China has been investing very heavily in the African continent

for years. Yeah, and what the US is trying to do, no a little bit, is to catch up with that, to invite these delegations from really fifty African countries as well as the African Union and say, hey, you know you want to still be an ally, We still want

to make sure the US is helping this. This this summit that we're seeing today is the person that's kind in eight years and Biden is gonna make several announcements announcing a bid for the African Union to join the Group of twenty four is a permanent member, and for the continent al to permanent member. See on the U

S Security Council. The US is also set to announce about fifty five billion dollar investment in infrastructure, but to me and then again, that just pales in comparison to the seven hundred billion infrastructure loans that China has already made. And so there's I think a lot of sense that there does the US does need to be active in Africa. It's it's sort of another area where the US has sort of set back while China has gone invested, um built up. It's it's it's ability to help in the continent.

And I think now you're you're seeing the Biden administration they tried to focus so much on China and Beijing, and certainly they see Africa is a larger part of that relation. Yeah, so we'll be watching for developments from that summit with African leaders at President Bid will be hosting later on this afternoon over at the White House.

Bloomberg Government reporter Emily Wilkins, thank you as always keeping us on top of what's happening in d C. Read more at Bloomberg dot com or on the Bloomberg Terminal. Listen to Bloomberg Radio in Washington. Bloomberg and one oh five point seven fm h D two SMP futures right now down five points, Staff futures down thirty four. NASTAC futures are lower by twenty one points. Looking at the bond space ten your treasury is little changed right now.

Yield just shy of three and a half percent yield on the two year fourteent nim X scrudge moving higher right now at one point two percent, or eighty nine cents at seventy six dollars twenty cents a barrel head of a FED decision coming up at two pm Wall Street time. Of course, we will have full coverage for you throughout the day. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com and Bloomberg Business Out and at Bloomberg Quicktake. This

is a Bloomburn business flash, and I'm Karen Moscow. We're watching shares of Delta this morning of three and a half percent in early training after it updated its guide ence and Bloomberg's creating Goopta will have details in just a moment. Futures are little change this morning. All SMP, NASDAC and DOW futures are all little change check markets all day long. Here on Bloomberg Tenure Treasury up one

thirty second, you have three point four nine percent. They yield on the two year four point one eight percent. Nim X Scrude oil is up one point one percent, up seventy eight cents at seventy six dollars seventeen cents of barrel COMEX School down half percent or eight dollars ninety cents at eighteen sixteen seventy announced, the Euro one point six four seven against the dollar, British bound one point to three seven four the end one thirty four point nine nine, and big going up a third of

a percent at seventeen thousand, eight hundred dollars. And that's a Bloomberg business flash. Nathan, all right, Karen, thanks six fifty six on Wall Street. Let's bring in Bloomberg Radio TV Markets correspondent Crety Gupta right now to take a look at Delta Airlines and some of the other names moving in the pre market. Let's talk about those earnings creating. Let's talk about those earnings. You know, we were coming into this morning with this background of weakening demand. The

idea here being that a lot of these companies. Jet Blue, for example, yesterday warning that there is going to be slowdown in travel that is coming. You're gonna start to seal all these recessionary calls kind of catch up with the airline industry. On the other hand, yesterday you heard that United was putting in a big order with Bow and essentially indicating their long haul investment. Well, Delta coming out and saying, well, you know what, we're gonna take

a little bit out of both other airlines playbook. We're gonna say that there's going to be some weakening demand. But they are still raising their profit outlook, and that's really what's moving the shares this morning. D a L is your ticker for Delta. Shares are about three point eight percent in the pre market. Now, this is important.

They did boost their fourth quarter earnings, but their revenue forecast was trimmed a little bit, so this is important when it comes to the short term kind of travel window looks to be pretty bullish, but it's still starting to say in the long term maybe things could kind of waiver. So some interesting numbers coming out of Delta.

I want to talk about some of the big analyst moves as well, though, Nathan, because Tesla is coming out t s l A is your ticker, and of course we know this is a stock that's been under a lot of pressure. Yesterday it was responsible for almost fifteen percent of the market. Declined this morning under pressure once again, about nine tenths of one percent, this time thanks to Goldman Sachs slashing its price target on the EV maker by almost a quarter, the broker lowing their estmis to

reflect quote software supply and demand. And this is crucial when we talk about the affordability question of Tesla, but also are people buying cars in general, and of course Tesla is going to be extra exposed to that given the type of car that they offer in the EV infrastructure. Let's talk about Marriott as well, m A R as your ticker, down one point three percent, City coming in cutting its recommendation on the stocks, and Neutral from by and downgrading a few other names in the reeds and

lodgings sector. So not thrilled again about the travel sector, a similar theme that we're hearing out of Delta and again Jet Blue from yesterday. Nathan, I want to leave you with one more Lennard L E. N Now we love to look at this company for kind of its correlation with the home building sector. If you're really bullish on the American housing market, you're going to be bullish

on the stock. By extension, l e N up one point three percent this time is actually up because Barkley's is upgrading not just Leonard but Polti Group as well. PHM is the ticker there and those shares are also higher by about one and a half percent. But Barkley's upgraded both stocks overnight, turning positive on the home builder subsector broadly, So you can really see it's a little bit of a turnaround. A lot of that pullback post. It looks like Barkley saying there's in favor again. Yeah,

lots going on in the analyst recommendation area. Will the broader market looks like it's waiting to see what the Fed does later on today. Thanks as always, Bloomberg Gradi on TV Markets correspondent Creedy Gupta SMP futures little change right now, DAL futures up five points, NASTAC futures down four points ahead of that Fed decision. Two pm. Wall

Street Time. This is Bloomberg Daybreak. I'm Nathan Hagar along with Karen Moscow, six fifty nine on Wall Street, Bloomberg Surveillance starts right now, live from the financial capital of the world, broadcasting across the globe. This is w b b R New York, Bloomberg Living Frio. We're looking at twenty three is a big transition, yet three is opening the