Bloomberg Daybreak: December 15, 2022 - Hour 1 (Radio)

more shares of Tesla. I maybe Morris New Jersey Transit will spend ninety seven million dollars for new transportation, and investigators are searching for the cause of that NYPD warehouse fire in Brooklyn. I'm John Stas and sports. The Knicks made it five straight wins. They beat the Bowls in overtime.

The Ranger SECRETI straight win tonight. That's all trading ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world Old on Bloomberg Radio dot Com and via the Bloombird Business app. I'm Stephen Carrol eu lead. Good morning. I'm Nathan Hagar and I'm Karen Moscow, and US stock index futures are falling this morning. It is

five oh one on Wall Street. We check the markets all day long. Here on Bloomberg right now is in p Futures are down forty four points, sets down one point one percent. Down futures down two one, that's down nine tens of a percent, and NASDAC features down one sixty, that's down one and a third percent. And the tenure Treasury that'll change, you'll three point four seven percent. Nathan, Yeah,

the sell off continues this morning, Karen. Following the Federal Reserves final policy decision of the year, as expected, the Central Bank raised interest rates by another fifty basis points, but Chairman J. Powell pushed back at market hopes for a pivot to lower rates anytime soon. Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy. Without price stability, the economy doesn't

work for any one. In particular, Without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all. J. J. Powell says the FED plans to stay the course until the job is done well. Nathan Stock snapfter two day winning streak after Powell's remarks about Buggenheim chief investment officer Scott Minor, it says Powell's

tone should not have come as a surprise. We knew they had to be very hawkish, and the reason they had to be hawkish is that, you know, financial conditions have loosened pretty dramatically over the last six weeks. Uh. You know, the stock markets up substantially, rates her down meaningfully and so um. You know, the FED I think, felt that it needs to lean into that. And those are marks from Scott Minored at Guggenheim are being echoed

by KPMG chief economist Diane Swung. They are more than willing to start helping rights if inflation comes down more rapidly. They have to send this message right now, and I think that's where they stand. They will be a political Panada. I have no out about j. Powell's ability to handle

the politics, given what he's already been through. KPMG Day and Swunk and Scott Minored were joined joined us on a special edition of Bloomberg Surveillance following the FED decision, and we have more central bank decisions on the way, Karen, two big ones out of Europe. We begin our team coverage with Bloomberg's Lizzie Burden in London, where the Bank of England is expected to follow the FED with a

fifty basis point hike. For me, what's the most interesting thing today will be the vote split, because potentially it's going to see a lot about where we had from here in terms of tightening. Bank of America JP Morgan and Numura have pointed to the possibility of a four way split between seventy five fifty twenty five and no hike at all. It would be the first time in the bank's independent history and that might seem chaotic, but really some welcome it as a confirmation that there's no

groupthink on thread Needle Street. Bloomberg's Lizzie Burden reports the BOE decision comes down less than two hours from now, and just over an hour after the BOE announcement, Nathan we hear from the European Central Bank. Bloomberg's Maria today O continues our team coverage with details on that from Frankfurt, there was this debate would it be fifty, would it be seventy five? But of course we can't ignore that this is coming off the back of the Fed going

for fifty. The animal spirits also in Frankfort, suggesting this is now inclined towards fifty basis points that would take the deposit weight to two percent, and of course signal discontinuation of hikes from the central bank. Bloomberg's Maria today O says all but three of the fifty one economist surveyed by Bloomberg predict a fifty basis point move from the e c B. Fifty basis points seems to be

a theme for central banks. Karen, we also heard from the Swiss National Bank this morning and they raised rates, you guessed it, by fifty basis points, bringing the benchmark in Switzerland to one. Alright, we turned to Asia now, Nathan, we're economic data in focus, and fresh data out of Beijing shows growth slowed in November. That's before the government dropped as COVID zero policy. Bloomberg day Break Asia anchor

Brian Curtis has more from Hong Kong. Retail sales contracted five point nine percent in November from a year ago and that was worse than the four percent to climb. In a Bloomberg survey, Industrial output grew two point two percent from a year ago, that also missed the estimate. COVID outbreaks across the country meant that people went out less and spent less money. Economists expect more disruption in the coming months. Brian Curtis, Bloomberg Radio. Okay, Brian, thanks.

In Corporate News this morning, we're watching shares of Tesla after Elon Musk sold another chunk of his steak in the company. It's got the latest Live with Bloomberg Steve Rappaport, Good morning, Stave. You had morning, Nathan and Karen Well. It wouldn't be a newsday without a mention of Musk and his latest move, the Tesla founder unloading another three point six billion dollars in company shares. Musk already sold off eighteen billion in stock this year to finance his

acquisition of Twitter and the electric automaker. Stock plummeted this year as investors grow concerned about Musk purchasing the platform. With this year sell off, Tesla valuation dropped below five hundred billion dollars for the first time since November. Live in New York. I'm Steve Rappaport Bloomberg Day Break Right, Steve, Thanks, and Tesla shares are down two point seven percent in

early trading. Meanwhile, the fallout continues in the crypto space after the collapse of f t X. Democratic Senator Elizabeth Lawren is announcing if by partisan bill aim to crack down on digital currencies used in money laundering. This is all about what we need to do right now, and we need to stop the money laundering. We need to stop the cheating that's going on in crypto, and that means just getting a set of rules in place. Same kind of transaction, same kind of risk, means we've got

to have the same rules. And it also means we've got to have a cop on the beat who was well enough financed. And if Senator Lawrensville becomes law, crypto exchanges will be required to verify customer identities the way banks and other financial institutions already do. Straight ahead your latest local headlines and this is Bloomberg. Thanks Karen. It is thirty three degrees in midtown Manhattan. We got rain moving in this afternoon, heading to the mid forties. It

will turn breezy tonight, evening lows in the forties. Temperatures will rise overnight as rain continues. Time now to look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Amy Morris. Good morning, Amy, all right, Good morning Nathan. The courts will not step into immediately stop New York Mayor Eric adams plans to force mentally ill people from

the streets and into treatment. The judge found no evidence that irreparable harm would occur before he issues his final ruling on the practice in a couple of weeks. Advocates for people with mental illnesses. When it stopped, they say police officers should not be first responders for those needing healthcare. Crews are still looking for hot spots as investigators search for the cause of a huge fire at an NYPD evidence warehouse in Brooklyn. Former police Chief Terry Monahan says

everything's been destroyed. They really don't even expect anything to be salvageable in there. Obviously, they're not going to oversaw until they get inside and start looking around on hands and some items in the warehouse, We're going to be destroyed. Anyway before the blaze, but some of the eleven thousand

barrels of evidence were related to COLT cases. New Jersey Transit is spending nineties seven million dollars to buy a new ferry, sixty new busses, and rebuild thirty five locomotives, and jay dot com reports the board exercised an option with New Flyer to buy sixty more articulated buses. They awarded seven million dollars in contracts to Hornblower Yacht for a new ferry, and they'll contract with Caterpillar for the new locomotives. The Transits Board of Directors signed off on

the plan yesterday. New Jersey Governor Phil Murphy is urging parents to get their young children updated coronavirus booster shots. Murphy says children ages six months to five years old are eligible now to get those vaccines, but only five and a half percent of New Jersey children between the ages of six months and four years have completed their primary series. Russian cosmonauts can'ts to plan spacewalk yesterday when they noticed a leak outside their spacecraft. NASA officials talked

about it. We noticed a visible stream of flakes coming from the aft of the Sayers near the instrumentation and propulsion module that was indicative of the spacecraft is ducked at the International Space Station Russia. Still trying to figure out what it is and what caused it. Global News twenty four hours a day on airin Don Bloomberg Quick Take, powered by more than journalists and analysts in more than one countries. I'm anymore is this is Bloomberg, Nathan, Thank

you Amy. Time now for the Bloomberg Sports Upday, brought to you by Tri stayed out. He here's John Stanho. Good morning, John, Good morning. Eat the next with the start of an unusual two games series in Chicago. Played the Bulls last night and they'll be there again tomorrow. Last night went overtime, Nicks pulled out the win on their fifth win in a row, and Julius Randalls had a lot to do with that plane. Much more like you did two years ago then last season when he struggled.

Randalls scored thirty one at thirteen b bound seven assist thirty points. Here Jalen Brunson. The Warriors lost at Indiana, defending NBA champs. Can't went on the road. They're two and thirteen and Steph Curry left last night when injured shoulder. Rangers host Toronto Tonight. Blue Shirts have won their last four college hopes easy went for Seaton Hall over Drexel battle of top twenty teams. U C l A went to Maryland and won easily, up by twenty nine at

a half. Sunday's World Cup Final promises to be a classic Argentina, with Lionel Messi looking for his elusive first championship taking on France, who has a chance to win back to back World Cups. It's only happened once, and that was Brazil sixty years ago. As the Jets get ready to host the Detroit Lyons, Sunday, coach Rob Sala asked about quarterback Zack Wilson, who lost his starting job. Been doing a great job, he he has. He's been

deliberate in his approach over the last three weeks. Um, he's been pulled himself accountable with regards to how he wants to attack practice. Uh, how he's been warming in practice going against our defense, which I think is a pretty good defensive goal against. Salvo has moved Wilson from third string up the second behind Mike White, the forty Niners bring their sixth game winning straight tonight into Seattle.

Chance of the Niners that clinch the NFC West. Their quarterback now is rookie Rock Purdy, though the Niners listing as questionable rib and oblique injuries X Matt Noah Synder guards signed with the Dodgers. John Stashwarre 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 autie model you've always wanted. Visit your local price state autie dealer to get behind the wheel of yours today, or visit outie offers dot com for more information. SMP futures down forty three points, a drop of one point one percent following the FED decision. DAL futures down two hundred seventy nine points. In NASDAC futures on the decline by a hundred fifty five points. That's the drop of one point three percent. The tenure treasury is down

one thirty second. The yield three point four eight percent yield on the two year four point to four percent. Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius Examp, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

You are listening to Bloomberg day Break. Good morning. I'm Nathan Hagar on a morning following some tough medicine from Federal Reserve chair Jerome Powell to a market that has been hoping for lower interest rates next year, Pal says there is still a ways to go to get inflation under control. And later this morning the European Central Bank in the Bank of England get their turn in the spotlight. Let's get more insights now. Simon French is with US

chief economist at PAMR Gordon Simon, good morning. Were you surprised by the hawkish tone from Chairman Powell? Good morning? Nice and h No, I wasn't. If I'm honest, I think the while we've seen a rollover in both core and headline U S insation, I think it's still uncomfortably

high from any people on the FMC. And what was I was really struck by in the summary of economic projections is quite how much FMC participants still see the risks to their inflation forecasts as skewed to the high side, and the risks therefore of more interest rate increases during the the market is pricing. But let's make no mistake that Jerom Powell is taking on the bond market, which

is not believing of that policy action. Is this a FED that's trying to steer the market then towards tighter conditions to kind of do some of the work for the Fed. I think you're absolutely right. Financial conditions across a broad set of metrics have have loosened in recent weeks.

On those simply on extraly market evaluations moving higher, a bit of a sell off on the US dollar loosening, the kind of financial conditions that Jerom Powell the FED actually want to snuff out core inflation in the US economy. Were thinking wages, shelter rents, the type of persistent wage pressures that actually monetary policy is better at addressing, and he is worried that that job becomes harder than more the market tries to front run any either plateau ng

or subsequent cuts in in the FED funds rate. So yeah, absolutely, I think he's uncomfortable with pricing. And yesterday's dynamics were designed to lean into that. So then where does that leave market expectations for where rates could go from here? Does that open the possibility of a little bit of wiggle room for this FED, even as at least rhetorically

it's saying that rates aren't going to come down anytime soon. Well, it wants to be data dependent, It wants to go meeting to meeting with were certainly in the era and not just for the FED but for all major central banks of stopping forward guidance, with stopping guide markets explicitly

beyond the next scheduled meeting. And I think in an environment where we're all guessing, look, we can have sophisticated models, we can have well created communications, but all of us in markets, economists, central bankers are guessing how persistent this bout of inflation the types that we haven't seen for

forty years? Hopps, this new will be so Yes, when you're talking about riggle room, I do think FMC members put a high value on having the ability to say, look, the data has changed, so are expected pathway has changed, and you need to price that into your m your expectations for what the risk free rate looks like during does the FED set us up for the central bank

decisions that we're going to be getting today. I mean, we've already heard from the Swiss National Bank with a fifty basis point move of its own, and there's an expectation in the market for fifty from the ECB and the b o E this morning. Safety and numbers mate and safety in numbers, and that is if you don't know what your transmission mechanism is from monkey policy through

to the real economy. If you're worried about being picked on because you're an outlier, you're seen as behind the curve, then actually moving as a herd as the central banks appear to be doing is probably the list least risky option here. So yes, the fact that we see four of the major central banks, potentially by the end of today,

all moving fifty basis points um. That is an indication of where they are psychologically and know where they are in terms of their interpretations of the data, trying to minimize their errors rather than being certain of the correct stance. Only about thirty seconds left here, Simon, But the European banks have a lot of different inflation dynamics compared to the US don't they, particularly given the war in Ukraine. Yeah, it's all about supply driven energy lead inflation. In Europe.

There's no real signs of demand search like you've got in the US. Very different backdrop for the ECB, and that suggests their terminal rates for much policy will be considerably lower than the federal reserves because it's just different inflation they're dealing with much less responsive to raising the

bank right man. We get those decisions from the Bank of England in just a little bit less than two hours time seven am Wall Street time, and then the European Central Bank an hour and fifteen minutes after that at eight fifteen. Lots to dig into, lots of central bank moves. Great to get your thoughts this morning, Simon again,

thanks for being with us. That was Simon French, chief economist at PAMRA Gordon SMP futures following the Fed's decision down forty five points, a drop of one point one percent, DAL futures down two and NASTAC futures leading the declines, down nearly one point four percent, a drop of a hundred sixty one points. The tenure Treasury is down one

thirty second yield three point four eight percent. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Atland at Bloomberg Quicktake, This is a Bloomberg Business flash, and I'm kared Moscow US DOT Index futures and European shares following after the Federal Reserve rebuffed expectations for a dubish Tilton said interest rates will go higher for longer. We checked the markets all day long here on Bloomberg Guess and

P futures They're down about forty seven points. You're down one point two percent down futures down nine tens of upper cent or three hundred eight points, and NASDAG futures down one and a half percent on one d seventy one points. The docks in Germany's down one at a third percent ten, Your treasury down one and one thirty second. The yel three point four eight percent yield on the

two year four point to four percent. Nine. Mex scrude oil is down about two tens of upper cent or seventeen cents at seventy seven twelve aparrel coll Max School down one point eight percent on thirty two dollars thirty cents. It's sventeen eighties six forty announced. The euro one point six one nine against the dollar, British found one point three zero the end one thirty six point seven too. And Bitcoin this morning is down a tens of a percent.

It's at about seventeen thousand and seven hundred dollars. We continue to watch shares of Tesla down about three percent in early trading after Elon muscle at three point six billion dollars of shares. And we have a busy morning for economic data. Among the reports we're getting November retail sales and the weekly report on initial jobless claims. That's a Bloomberg business flash. Now here's Amy Morris with Moore on what's going on around the world. Amy, good morning,

good morning, and thank you. Karen Fiser has an agreement to sell its anti viral medication batchel of It in China. This as sources tell Bloomberg, the White House will reopen a program today to allow people in the US to order batches of at home COVID tests for free. The intruder accused of attacking how speaker Nancy Pelosi's husband has

been ordered to stand trial for attempted murder. Prosecutors say David de Pop has a list of their targets, including California Governor Gavin Newsom and after Tim, Tom Hanks and sports. In the NBA, the Wizards and Warriors lose the NIXT win. The World Cup Final is set for Sunday, when Argentina takes on France Global News twenty four hours a day on air rand on Bloomberg quick Take, bowered by more than twenty d journalists and analysts in more than one

hundred twenty countries. I'm Amy Morris. This is Bloomberg, Nathan, Thank you, Amy. It's coming up to five four on Wall Street on Nathan Hagar, this is Bloomberg Daybreak. The collapse of f t X has left investors asking what's next for the crypto exchange and the industry at large. The new CEO of f t X, John J. Rays, has to find on Capitol Hill this week with a blunt explanation for the collapse. This isn't uh, you know,

sophisticated whatsoever. This is just plain old embezzlement. And after that testimony from John Ray, Guggenheim Chief investment Officer Scott Miner joined Bloomberg's Tom Keene and Lisa Abramowitz to warn of war shoes to drop after the f t X fallout. Still mind, it is confident the currency digitalization will proceed. But what he had to say, you are acclaimed as a student of what we're living in crypto in bitcoin. Do you have confidence that system can move forward? I do, Tom.

You know, a year ago we were talking about crypto and there were approximately nineteen thousand coins, to which my comment was, this is mostly crap and there's going to be a washout and and just like the Internet bubble, Uh, you know, we will have survivors. And uh, you know, the digitalization of currency UH is just in its infancy and uh you know how this evolves now UH is going to require, you know, a regulatory framework to legitimize it. And I think we will move forward and I think

this will be transformative to the general economy. Lisa would like to weigh in here, Mr No, I don't want to weigh in this per se, but there is a question of whether the whole FTX phenomenon really was born out of the easy money policies, and whether there are a lot more shoes to drop in the financial stability aspect of this. As everyone talks soft landing and as we talk about disinflation, how much less of a chance is there of that outcome which I know you've been

talking a lot about in terms of the collapse. Yes, some sort of you know, more financial disruptions, shakeouts that things going to zero that were overnight that we're worth tens of millions of dollars. Sure, I mean, look, I think there's there's more to come, Lisa. Uh. And the reason is that you know that this is just like any number of periods where we've had easy money and a lot of speculation, and so the weakest players fall first, and so crypto is obviously something that was crazy. N

f T s were I never quite understood them. I love the normal did of me was just great. But the you know, you look at um, you know, look at what happened uh in with the Bank of England. Uh, you know, we averted. I think a global financial crisis there by their quick response. So I think another shoe to drop them. I can't tell you where it is. And that was Goggenheim Chief investment Officer Scott Minerd speaking on Bloomberg surveillance You can hear the full interview on

Bloomberg dot com. Catch more conversations just like that one by subscribing to the daily Bloomberg Surveillance podcast. Let's just take a quick look at bitcoin as we continue to follow the crypto crisis. It's down nine percent right now, trading right around seventeen thousand, seven hundred. We'll get your morning stop stories, local headlines, and the check of markets. Next. First we check in with Bloomberg meteorologist Rob Caroline. Cloudy

skies across the Tri State area today. Rain will arrive for the afternoon forty five. Well, and it may start as a little bit of wet snow as sleep, but quickly goes over to rain. Where rainy breezy Tonight forty five. Rain Tomorrow breezy highs forty five to fifty, Sunshine Saturday forty five. I pressure will produce sunshine Sunday highs thirty five to forty. I'm Rob Carolin with your weekend forecast.

I'm Bloomberg eleven three oh broadcasting live from the Bloomberg Interactive Broker's studio in New York, Bloomberg Elomon Free to Washington, d C. Bloomberg ninety nine one to Boston, Bloomberg one all six one to San Francisco Bloomberg n sixty to the Country Sirius XM to A one nineteen and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's coming up on five thirty

on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen moscall and are just about four hours away from the open of US trading. Let's yet you have to data the news you need to know at this hour. The sell off continues this morning after the Fed raised interest race by another fifty basis points. At the same time, Chairman J. Powell is dampening hopes for a pivot to

lower rates anytime soon. The inflation data received so far from October and November show a welcome reduction in the monthly pace of price increases, but it will take substantially more evidence to give confidence that inflation is on a sustained downward path. Chair Powell said the Fed will stay the course until the job is done. Stock snapped at two day winds streak Karen following those remarks from J. Paul, Sylvia Jablonsky, CEO of Definance CTF, says for investors, FED

chair knocked the wind out of their sales. The market I think was disappointed by the FED rhetoric because he talked a lot about moving that terminal right up to five point one per cent, but also downplaying the success that we're already seeing on the impacts of the work that they've done. Sylvia Jablonski with definan CTF, says she was more optimistic about a Santa Claus rally before Powel's news conference. Well, Nathan, we have more policy decisions on

the way. In Europe. The Bank of England is expected to follow the FED with a half a point rate hike this morning, as is the European Central Bank, and in Switzerland, the Swiss National Bank also raised his benchmark rate by fifty basis points. In Asia, Karen, we are seeing some weak economic data. China's economy worse and last month, and that was before Beijing dropped its COVID zero policy. Retail sales in China contracted close to six percent over

the past year and industrial output missed estimates. But the corporate news now, Nathan, where we're talking elon Musk yet again, the new Twitter owner is selling more shares of Tesla, and Bloomberg Steve Rappaport joins US Live with that story. Steve, good Morning, Good Morning, Karen and Nathan Elon. Musk offloaded three point five billion dollars in Tesla shares this week has laid us sell off to raise cash for Twitter. Tesla stock is down this year as invests grow concerned

about his purchase of the social media platform. The electric automakers, valuation dropping below five hundred billion dollars for the first time in more than two years. Tesla's troubles cost Musk more than money. He also lost his title as the richest person in the world. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak Now Steven. Tesla shares down another two point eight percent in pre market trading this morning. Now.

A note on politics, Senator Elizabeth Warren's announced a bipartisan bill into cracking down on cryptocurrencies used in money laundering. If the bill passes into law, would require crypto exchanges to verify customers identities as other financial institutions do, and

futures this morning are lower. SNP future is down forty four points, down one point one percent, NASDAG, futures down one at a third percent, down one hundred sixty one points down, futures down eight tens of upper cent or two hundred eighty seven points, and a ten year treasury down to thirty seconds. You have three point four eight percent straight ahead, your latest local headlines, plus a check of sports, and this is Bloomberg. Thanks Karen A's five

thirty one on Wall Street. Amy Morris is here at those local headlines for New York and a look at what's going on around the world as well. Amy, Good morning, Good morning Nathan. Investigators still trying to figure out what sparked that major fire at an NYPD warehouse in Brooklyn, and former NYPD chief Terry Monahan says they don't expect anything to be salvage ale salvageable, but there are records in place. Everything to be documented in databases. At least

what the evidence showed should be documented somewhere. It's just that physical evidence that will be going cruse continue to look for hotspots. More than a day after the raging fire destroyed Biological evidence Department vehicles and hundreds of confiscated e bikes. Uber drivers in New York will not be getting higher pay, at least not yet. A judge has blocked the Taxi and Limousine Commission from raising the pay of ridehailed drivers, while a lawsuit by Uber is pending.

Uber argues the pay raise would have forced them to raise fairs. Driver advocates tell The New York Times they're stunned the court would temporarily block those races. New Jersey Transit officials developing a no ride list of violent passengers who assault transit workers. A year ago, passengers who assaulted employees would face a steep fine, but now the agency is working on a policy that would ban disorderly writers from the transit system, including a permanent band for any

passengers who use a deadly weapon. The House has passed a short term government funding bill to push a government shutdown deadline back a week. On this vote, the yea's are two hundred and twenty four and the nays are two hundred and one. The motion is adopted. It funds the government for one more week. The short term bill now goes to the Senate. The FDA says there's a nationwide shortage of amoxicillin the popular antibiotic is in high

demand because of more respiratory viruses in the US. Officials say part of the problem drug companies rely on other countries to get the ingredients, and they've been facing supply chain issues. Global News twenty four hours a day on air and on bloom A Quick Take, powered by more than twenty seven hundred journalists and analysts and more than one hundred twenty countries. I'm Amy Morris. This is Bloomberg. Nathan.

Thanks Amy. By thirty three on Wall Street time for the Bloomberg Sports Update, brought to you by Try State. Don't he Here's John stash Our. All right, Nathan, slow start to the next season, but coming on now in Chicago looking for a fifth win in a row. The game went to overtown Brunts at high left against Carusoe. Certainly to the quarter crossover ncle breaker three sail brunt ship Clupsnixs up by nine with twenty seven point nine

ago in overtime and that should be it. In the Windy City Wow esp in New York next beat the Bulls one point for Julius Randall and Bronson scored thirty r J. Barrett and at twenty two. Nixt are the worst three point shooting team in the NBA, and yet last night they made eighteen and thirty four. Three are up to sixth place in the East as they oddly play the Bulls again tomorrow sorrow, also in Chicago, the night after the Knicks one their fifth in a row,

Rangers will try to do likewise. They host Toronto Devils try to end the three game losing streak. They host Philadelphia NFL tonight forty Niners in Seattle. Niners have won six straight win tonight clinches them. The NFC West Jets have made a change in their quarterback death charg Zack Wilson, who went from first string all the way down to third is now at least up the second string, ahead of Joe Flacco, but still behind Mike White. Will leave

the Jets into a home game Sunday with Detroit. The Giants played the primetime game in Washington, the Commanders playing well, desplaite all the turmoil surrounding their owner, Dan Snyder. Washington Post reports Snyder is moving forward with receiving offers from

those interested in buying the team from him. At the World Cup, France ended Morocco Cinderella Laurn, Sunday's Final France against Argentina, Johns Dash Award, Bloombrook Sports, Nathan FRONTI BUYOUTI don't let someone else drive off in the outie model you've always wanted. Visit your local Tri State outie dealer to get behind the wheel of yours today, or visit outie Offers dot com for more information on Wall Street time for the Tri State Business Report. For that, we

turned to bloombergs ed Cory. New York's high taxes may already be pushing wealthy residents out of the city. That's according to Controller Thomas den Napoli, and analysis by New York City's Independent Budget Office shows the number of city taxpayers who earned between one million and five million dollars fell eleven percent in two thousand twenty. New York City's business districts would get a makeover under a plan unveiled Wednesday.

The New New York Panel recommends converting office space to residential areas, making outdoor dining permanent, and improving transit. Governor Kathy Hokel and Mayor Eric Adams launched the committee seven months ago. Complaints about helicopter noise in New York City, or up exponentially from about thirty three hundred and nineteen to almost twenty six thousand last year in Manhattan, and Queen's complaints about helicopter noise this year have outnumbered those

about rats that your Bloomberg Dry State business report. I'm in Corey, Thanks that it's six on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. In announcing plans to massively increase defense spending, Japan has embarked on a military transformation.

The budget increases proposed by Prime Minister Fumio Kashita last week would provide Japan's self defense forces with unprecedented resources around forty three trillion yen or billion dollars over the next five years. Given rising security challenges in the Pacific, Japan's ambition is bold and welcome. For the new spending to be truly effective, though the government will need to

make hard choices. While flashy weapons systems have appeal, purchases of emerging, low cost technologies would allow the military to get more bang for its yen. Maintaining military spending at this level will likely require higher taxes and painful spending cuts. The government must be able to assure citizens their money is being spent wisely. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com slash opinion or O P I n

go on the Bloomberg terminal. This has been Bloomberg opinion, and you can hear Bloomberg opinion editorials every weekday at this time. Terminal customers can read more at O P I n go. It looks like we could be in line for more selling on Wall Street today after the Fed decision and the hawkish tone from Chairman Powell. We have SMP futures right now down forty two points, a drop of one percent. Down futures are lower by two

hundred sixty nine points. In NASDAC futures down one point three percent, a drop of one hundred fifty six points. Tenure Treasury is down one thirty second yeld three point eight percent, yield on the two year four point to four Nimex crudes down to tenth percent at seventy seven dollars seventeen cents a barrel. We're gonna get more reaction to the FED decision next, with Wells Fargo senior economist

Sarah House joining US Live. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow and US Dock Index futures and European shares are lower this morning after the Federal Reserve rebuffed expectations for a devilish Tilton said interest rates will go higher for longer. Check the markets all day long here on Bloomberg radios

and P futures down forty points. That's down one percent. Down future is down three quarters of a percent, or two hundred fifty nine points, and as the futures down one hundred fifty five points or one point three percent. The decks in Germany's down one point two percent. The ten year treasury down one thirty second. You have three point eight percent. They yield on the two year four point to three percent. Nine mack screwed oil little change

at seventy seven dollars twenty two cents of Barrel. Comic School down one point seven percent down thirty dollars twenty cents fifty announced the year one point oh six two zero against the dollar and the yen one thirty six point seven four. And that's a Bloomberg business flash. Now here's Amy Morris with Moore on what's going on around the world. Amy think you, Karen. The Senate wants to ban the use of TikTok on government phones and devices.

The bill was passed with no objections last night. Still needs to be passed by the House and signed by President Biden. Chances are demming that Congress will be able to take up a multibillion dollar package to renew a cluster of business tax breaks and provide a more generous child tax credit before lawmakers leave for the holidays. In sports, in the NBA, the Wizards and Warriors lose, the Knicks win.

The World Cup Final is set for Sunday, Argentina. Taken on France Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty hundred journalists and analysts and more than one hundred twenty countries. I'm anymore, is this is Bloomberg? Nathan all Right? Amy thanks for coming up to two on Wall Street. You're listening to Bloomberg Daybreak. Good morning, I'm Nathan Hagar alongside Karen Moscow. Let's take a look at some of

the other stories making news this morning. While the focus has been on central banks, we do get a key economic report today. The government issues November retail sales figures this morning, and economists predict a decline, a reversal from October's advance. Bloomberg's Benny Delve Judas reports across America retail sales have been on a sea saw since midyear. October

sow the biggest game since February. November data could disappoint, reflecting on part weaker sales at car lots and restaurants. Lower gasoline prices could also subtract. Even so, Bloomberg Economics is bargain hunting in an ear of high inflation. Probably helped on Black Friday, traditional start of the US holiday shopping season. Finny Delt, Judas, Bloomberg debris Right, Vinnie, thank you. So let's turn from the economy to the video game

industry now. Microsoft said that antitrust regulators shrugged off its offer to make call of duty available to gaming rivals, including Sony, as part of its sixty nine billion dollar purchase of Activision Blizzard. They caught up with Microsoft president Brad Smith to get more details. All of these concerns have basically focused on one title, a great title, a game Call of Duty. But we've said we're prepared to

commit contractually. We're prepared to commit under a consent to career and undertaking that that will be available for Sony on comparable terms to Xbox for the next decade. So I look at this and say, this will be good for competition, and we have a solution to the one problem that seems to bother people the most. Microsoft President Brad Smith says the company needs regulatory approval in sixteen

countries for the Activision deal to go through. While staying in the tech space, now we're seeing another policy change at Twitter. The company has now suspended several accounts that tracked private chats, and Bloomberg said Baxter has that story. This is just another turn and what Elon Musk says will be an open platform. The first account to go was the ellen jet page run by Jack Sweeney. It

tracks Musk's private jet. Musk had said last month that he would not ban the account, saying it was evidence to his commitment to free speech. Well, now he has dumped all thirty Twitter accounts that Sweeney managers, including his personal account, saying that they violate Twitter policy. Sweeney's last tweet was can I get my eight dollars back in San Francisco? I'm at Baxter Bloomberg daybreak. Oh wow, thank you Ed for that. Let's turn back to the economy now.

Our top story this morning. The hawkish slow down Federal Reserve did raise interest rates another fifty basis points. That was widely expected following four straight seventy five point moves. But Chair J. Powell is making clear that the central banks fight against historically high inflation is not over. Restoring price stability is essential to set the stage for achieving maximum employment and stable prices over the long run. The

historical record cautions strongly against prematurely loosening policy. We will stay the course until the job is done, Chairman Powell, speaking there at his post decision news conference yesterday. We get more reaction live this morning by Sarah House, senior economist at Wells Fargo. Is this message being received by

this market? Sarah? It doesn't appear to be so, or at least I think there's some doubts on either the side willingness to follow through or whether the economy can withstand three HIGs at the side is still signaling that our arcticn So you know, we didn't see necessarily see the reaction in the direction that we would have expected based on this more hawkish outlook. So I think there's there's still some communication there to be done. Is sorry,

are you surprised at how hawkish? Uh? This fed continues to be? Should it continue to be this hawkish? We weren't really sup right, So our forecast heading into this meeting was that we'd see the said funds rate rise to that range of five five quarter percent that was where the median doubt was for next year, and then

it would stay there all all through the year. So really, when you look at the rhetoric from both the statement there was essentially just one word changed, but also Pal's opening remarks and even the sentiment in the press conference, it was a little different than what he and other

side officials have been stressing. So inflation is still far too high and they are going to going to stay at it until the job is done, and so I think the side was signaling even as there they were step preparing to just step down a little bit, that they were by no means done. So it's not just about the pace of policy tightening, but it's the eventual height at which the said funds reaches and how long

it stays there. Yeah, one of the big data or one of the big messages that Chairman Palpi out yesterday was there's a greater risk historically from undertightening than from overtighten. Names do you think that's the right way for this Fed to go? So? I think given that you do need that price stability for that long run sustainable health of the labor market, and the fact that the Fed has raised rags highs they have that does get them room to Christian if they if they do overtighten. I

think that supports their their view in that case. But I think part of this just comes from the FED miss on on the upside. So they got inflation wrong, um, thinking that it wouldn't be that that it wouldn't get as high as it has, and so they want to be garden sure that they don't that they're not too optimistic again on inflation and that it's going to come back to two percent in pretty pretty easy or short order. Well,

you've given that they FED got inflation wrong. What's the risk in your view that the FED gets policy wrong and goes too far with these interest rate hikes? And they're in a tough spot. So we know that monetary policy not only does it have those one variable lags, but ultimately it's a blend instrument, and so it's it's hard to fine tune. But they are getting to that stage where this past year it was all about catch up, so it was clear that policy needs to be tighter

and that the labor market could withstand it. But this year is certainly going to be This upcoming year is certainly going to be more difficult as they do get into that fine tuning aspect. But that's hard to do with with such a blunt tool. So I think they're

recognizing that the risks of a downturn have increased. You saw that with the GDP projections coming down pretty noticeably and the unemployment rate numbers ticking up a little bit more and coming in you know, full percentage point above the low of the cycle that we've seen, which if historical we've never seen outside of recession, so I think you know, implicitly they are acknowledging how difficult it will be, but they are willing to withstand that downturn if it

means a story and price stability. Only about thirty seconds left here, Sarah, but we've got more data for the state of dependent FED. What's your expectation for re tell sales? So we actually think we'll see a slight increase in UM in the retail sales number, at least on the headline, but um, we have to acknowledge that this is a really volatile series. So watch the revision because that'll that will give us a picture of not just a November sales but also firma flitting on on where we've been.

But you know, we're still in a period of you know, pretty strong, pretty strong price growth and also consumers that are still very much willing to go out there and spend what that'll be interesting at the consensus on the Bloomberg terminal showing a decline in month over month retail sales. Thanks for this, Sarah, great getting your thoughts this morning. Sarah House, senior economist at Wells Fargo, joining us live this morning. Following that fifty basis point decision from the

Federal Reserve and the hawkish town from Chairman Pal. It's moving markets even lower once again this morning, with SMP futures down forty point, STAFLE futures down two hundred forty nine, and NASTAC futures low. We're right now by a hundred fifty six points. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Atland at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow and that's

updates brought to you by SEI. Built on advanced technologies and fifty years of innovation. SEI offers asset Managers, a comprehensive and flexible operations outsourcing platform. Go to s C i C dot com. Slash managers and futures are following this morning after the Federal Reserve interest rate decision. To check the markets all day long here on Bloomberg Radio. S and P futures down forty points this morning, down

a one percent. DAL futures are down seven tenths of upper cent or two hundred forty seven points and NASDAC futures down one at a third percent or one fifty nine points. The decks in Germany's down one point two percent. Ten, Your treasury down three thirty seconds, you know, three point four eight percent. They yield on the two year four point to four percent. Nine X screwed oil on the rise up to ten percent or sixteen cents at seventy

seven dollars, forty four cents a barrel. COMEXS goal down one point seven percent, down thirty dollars sixty cents at seventeen eighty eight ten announced. The euro is at one point oh six one nine against the dollar. British pound one point to three is three three, the yen has at one thirties six point seven four and Bitcoin this morning is down nine ten percent at a seventeen thousand, six hundred seventy dollars. And that's a Bloomberg business flash. Nathan,

all right, Karen, thank you. It's five fifty six on Wall Street. It's time for our daily Bloomberg Law Brief, exploring legal issues in the news, and today we look at the criminal charges against FTX co founder Sam Bankman, freed from the Justice Department, and the Securities and Exchange

Commissions civil lawsuit against Bankman freed. The SEC alleges he raised more than one point eight billion dollars, including one point one billion, from about ninety US based investors, in what the agency calls an orchestrated scheme to defraud equity investors who bought in based on the belief that f t X had appropriate controls. For more in the case, Bloomberg's June Grosso speaks to securities long expert Robert him,

a partner at Tartar, Krinsky and Drogen. The SEC is supposed to go after the securities fraud in this complaint, how did it steer clear of allegations that would raise

questions of whether the f t X traded cryptocurrencies are securities. Yes, the SEC has brought securities fraud charges in its complaints, and the way they have done that is that they have alleged that, starting in t SO way back to the very beginning of when ft X was founded, that misrepresentations were made to investors, including US investors, to induce them to invest in the equity of f p X. These are separate in the customers who traded crypto, they

were institutional investors who invested billions of dollars into f t X, and the SEC said that that is done through misrepresentations and omissions, and that's how the SEC has crafted its security SCOT complaints in this matter. How much was moved and how much was lost as result of these transactions? What would the SEC have to prove? Where the basics of what the SEC would have to prove

if this went to trial. In addition to having to prove that the representations to investors were material, the key thing that the SEC has to prove is how it's called the enter which is either intent or recklessness on the part of Banks and Freed part. And in white collar cases like this one, a person's intent or defendant's

intent is always a contested issue. And I think we've seen a preview of Banks and Free defense and prior public statements that he's given where he says that he wasn't aware that scx's customer deposits were being used to cover Almida's debts and liabilities, so he's trying to set himself pump is the defense that the underlings at the two companies were doing this and he wasn't aware of it. And that that's gonna be a tough defense to really

be successful on. And that's Robert him, partner at Charter Krinsky and Drogan, 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 s ANDP futures right now down forty two points down futures are lower by two hundred sixty one. NAZDAC futures on the decline by a hundred sixty nine points, That is a drop of one point four per cent. We have your latest business headlines, all the news you need to start your day. Hour two of Bloomberg Daybreak starts right now.