Bloomberg Daybreak: December 15, 2022 - Hour 2 (Radio)

of Tesla. I'm 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 Stave Shower and sports the next made it five straight wins. They beat the Bowls in overtime. The

Rangers seek a fifth straight win tonight. That's all train ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XM one nineteen and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning, I'm Nathan Hagrim and I'm Kared Moscow. US Dock Index futures are lower

this morning. We checked the markets all day longing here on Bloomberg radios, and P futures down forty three points. That's down one point one percent. Down Future is down eight tens of upper cent or two hundred sixty seven points, and NASTAC future is falling down a hundred seventy three points or one and a half percent. The decks in Germany's down one point two percent, and the ten year treasury down three thirty seconds here three point four nine

percent Nathan Karen. This sell off continues after the Fed's final policy decision of the year. As expected, the Central Bank raised interest rates another fifty basis points, but German J. Powell is pushing 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 anyone.

In particular, Without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all. Jair J. Pal says the FED plans to stay the course until the job is done well stocks and after two day winning streak after Powell's or marks Nathan but Guggenheim Chief investment officer Scott Miner 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 hawk issues 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 Dianne Swunk. They are more than willing to

start coming rights if inflation comes down more rapidly. They have to send this message right now, and I think that's what they stand. They will be a political Panada. I have no doubt about j. Powell's ability to handle the politics, give what he's already been through. KPMGES, Diane Swank and Scott Minor joined us on a special edition of Bloomberg Surveillance following the FED decision, and we have even more policy decisions scaring two big ones on the

way 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 its own 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 Nomura 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 one hour from now, and just over an hour after the BOE announcement, Nathan will hear from the European Central Bank and Bloomberg's Ria 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 rate to two percent, and of course signal

discontinuation of hikes from the central bank. And Bloomber'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've heard from the Swiss National Bank this morning as well, and they raised rates, you guessed at fifty basis points, bringing the

benchmark in Switzerland to one percent. All right, let's turn to Asia now, Nathan, We're economic data are in focus. Fresh data out of Beijing shows growth slow to November. That's before the government dropped as COVID zero policy. Bloomberg Dabrick Asia anchor Brian Curtis has more from Hong Kong re hail 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 the people went out less and spent less money. Economists expect more disruption in the coming months. Brian Curtis, Bloomberg Radio. Okay, Brian, thank you. In corporate news this morning, we're watching shares of Tesla. They're down another two point six percent in the pre market after Elon Musk sold another chunk of

his steak. It's the latest Live with Bloomberg. Steve Rappaport. Good morning, Steve, Good 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. The electric automaker. Stock plummeted fifty five percent this year as investors grow concerned about Musk purchasing the platform, and with this year's sell off, Tesla's valuation dropped below five hundred billion for the time since November. Live in New York, I'm Steve Rappaport, Bloomberg Day Break, Right, Steve,

thank you. In the fallow up continues in the crypto space after the collapse of f t X, Democratic Senator Elizabeth Moore and is announcing you by partisan bill aimed 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 Wawren's bill becomes law, crypto exchanges would be required to verify customer identities the way banks and other financial institutions already do, and futures are lower. This morning, straight ahead, we have your latest local headlines, plus a check of sports, and this is Bloomberg.

Thank you. Karen at six oh seven on Wall Street, thirty four degrees in Central Park. Grab that umbrella. We got rain moving in this afternoon. We're head to the mid forties, low forties early tonight, but temperatures are gonna rise through the overnight hours of the rain continues. Amy Morris is here with what else is going on in wet New York City. At least the'll be wet later, Amy,

Oh yes it will, Nathan, thanks so much. The courts also will not be stepping into immediately stopped 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 want that plan stopped. They say police officers should not be first responders for those

who need healthcare. Crews are still looking for hot spots. Investigators still looking for the cause of a huge fire at an NYPD evidence warehouse in Brooklyn. Former police Chief Terry Monahan says everything has been destroyed. They really don't even expect anything to be salvage going there. Obviously, they're not going to oversaw until they get inside and start

looking around on Hansas items in the warehouse. We're going to be destroyed before the blaze, but some of the eleven thousand barrels in the facility are related to cold cases. New Jersey Transit spending ninety 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 a seven million dollar contract for a new ferry from Hornblower Yacht, and they agreed to a thirty four million dollar contract with Caterpillar for the new locomotives. New Jersey Governor Phil Murphy is urging parents to get their

young children updated coronavirus boosters. Murphy says children ages six months to five years old are eligible now to receive the updated vibulent vaccine, but only five and a half percent of New Jersey children between six months and four years old have completed their primary series. Russian cosmonauts canceled air spacewalk yesterday 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 SOYUS near the instrumentation and Propulsion module that was indicatives of the leak. The SOYUS spacecraft is ducked at the International Space Station and Russia's trying to figure out what is the leak and what caused the leak. The Global News twenty four hours a day on air end on Bloomberg Quick Take, powered by more than twenty journalists and analysts and more

than one hundred twenty countries. I'm Amy Morris. This is Bloomberg Nathan. Thanks Amy, six o nine on Wall Street Time for the Bloomberg Sports Update, brought to you by Price State Out. Here's John stash Our. Thanks today to the next with the start of an unusual two games series in Chicago. They played the Bulls last night and

they'll be there again tomorrow. Last night went over time Nicks pulled out the wine fifth win in a row, and Julius Randall has had a lot to do with that plane, much more like you did too years ago. Then last season when Randall struggled thirty one points, thirteen rebounds, seven assists, thirty points for Jalen Brunson. The Warriors lost at Indiana if any the NBA Jamps can't win on the road there two and thirteen, and Steph Curry left

last night with an injured shoulder. Rangers host Toronto tonight. Blue Shirts have won their last four college hoops easy went for Seaton Hall over at Drexel Battle of top twenty teams. U C l A went to Maryland one easily. The Bruins were up by twenty night at halftime. Sunday's World Cup Final promises to be a classic Argentina, with Lionel Messi looking for his elusive first championship taking on France, Who's got a chance to win back to back World

Cups That's only happened once Brazil sixty years ago. As the Jets get ready to host the Lions, Sunday, coach Rob salast 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 holding himself accountable with regards to how he

wants to attack practice. Uh, how has been performing in practice going against our defense, which I think is a pretty good defensive goal against Salah has moved Wilson from third spring up to second behind Mike White. Forty Niners bring their six game win string tonight into Seattle, chance of the Niners to clinch the NFC West. The x met Noah Synderguard signed a one year deal with the Dodgers. John Stash awards Bloomberg Sports, Nathan and the Bloomberg Sports Support.

John was brought to you by Audie. Don't let someone else drive off in the Autie model. You've always wanted to visit your local Tri state Audie dealer to get behind the wheel of yours today, or visit Autie Offers dot com for more information. Right now, SMP futures are down forty points, staff futures down two forty one, and nastack futures are lower by a hundred fifty eight points at decline of one and a third percent. As the

equity sell off continues. Following the FED decision and the hawkish tone from Chairman Pale, We're going to get more insights on the path for the FED. Danielle di Martino Booth of Quill Intelligence joins us with her thoughts. Next this is Bloomberg Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius, xamp, the Bloomberg Business App, and Bloomberg dot Com.

This is Bloomberg Daybreak. Good morning, I'm Nathan Hegerl. Let's getch you back to our top story of the morning, the Federal Reserve delivering that widely expected fifty basis point rate high and its final policy meeting of two. But if markets were expecting a pivot to lower rates anytime soon, the message from Chairman J Powell basically is don't hold your breath. Let's bring in Danielle DiMartino Booth for more insights on this. The CEO, chief strategist at Quill Intelligence

joins us Live this morning. Of course, Danielle as a former advisor as well to the President of the Federal Reserve Bank of Dallas. It's great to speak with you this morning from our Interactive Broker studios. Danielle, what was your takeaway from this hawkish tone that we continue to

get from this Federal Reserve? Well, uh, my biggest takeaway was the consensus um factor, the fact that there was so much agreement, despite the fact that everybody who submitted their dots could have changed their dot by by Tuesday night, according to the Fed's website. So they maintained that they feel that inflation is going to be problematic, even though we did see breaking that the markets celebrated UH in the consumer price index. Do you expect that consensus to hold?

It looks like the market is continuing to place it's bet that the Fed is gonna blak Indeed, it does. You initially saw kind of a violent reaction in the bond market, and then yields backed off, indicating that they still the bond market still believes that the Fed is going to be forced to pivot. I would say that the particular form of inflation that that your pals cited, that would be the core services UH CPI X shelter UH that that has ticked down for two months in

a row. My experience at the Fed tells me once they get to that third month in a row, a trend has been established, and that that will be a takeaway for the doves. And we're also going to see a rotation too much more dovish federals or of district presidents. In three cash car is coming on Lorie Logan, who's a career economist from the New York FED. She's also considered to be a dove. She's coming on as well as Austin Goulsby, and we're going to roll off some

known hawks. So I think that I think that chair Powell might be seeing descent in interesting how much descent do you think that Chairman Powell is going to be in for Do you think that the Chairman Powell himself starts to waiver a bit if we do get that sign that inflation is starting to go on the path that the Fed is looking for. Well, I certainly think that's going to be the case. At least he will continue to not to the effects of of higher interest rates.

In fact, at the at the presser yesterday afternoon, Powell actually said, you know, we expect, we can we can foresee that shelter inflation that is problematically sticky, we can

foresee that that's going to turn in. He still looked through that, however, and bear in mind, given the FEDS unemployment forecast that we saw in in the Summary Economic projections yesterday, there's every chance, I mean, we've never not gone into recession with that level of an increase in the unemployment rate that is part of the FEDS forecast. So the FED is as close as it's possibly ever been to acknowledging and saying we're going to continue tightening

into recession. Yeah, and one of the big messages we heard yesterday from Chairman Powell is that there's a bigger risk from under tightening than there is from overtightening. It seems like he has history in mind here, Danielle. What is the history that the chairman is looking at and does that really inform the kind of inflation that we're

seeing in this economy. Well, you know, that's what the critical question is because when the policy error was first made when lb J was president and William mc chesney Martin blinked and was softer on the rate path than he should than he should have been, and then he was followed by mega doves who were politically malleable his you know, his nemesis, Arthur Burns uh, and they couldn't

get really control of inflation at the time. That was a time when unions were extremely powerful, uh in the United States, when labor had more sway as opposed to where we are today. And as we see one company after another after another announcing layoffs, despite the fact that we're this close to the holidays, only about thirty seconds left here. Danielle, as we mentioned, you're a former advisor to the Dallas FED President. If you were in that

role now, what would you be advising? Well, I would be trying to communicate a little bit better that I want to get inflation down. And but I am more sympathetic than what I sound like. I am to the fact that somebody losing their job is a heck of a lot worse than somebody battling inflation. But they're gonna try and look past that for the long term prosperity

of the U. S. Economy, for the common good. Yeah, I'm gonna be really interesting to see the messaging going into three and the potential impact of policy on this UH persistent inflation. We continue to see, Danielle di Martino Booth of Quill Intelligence as always, great to have you on with us this morning here on Daybreak, daniel d. Martino Booth, the CEO, Chief Strategist over at Quill Intelligence.

Right now, SMP futures are down thirty nine points. Staff futures down two thirty seven, NASTAC futures are lower by a hundred fifty seven points, The ten your treasury is down to thirty seconds, yield three point four eight percent, and the yield on the two year right now four point to three percent. This is Bloomberg Good Morning, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at Land at Bloomberg Victap.

This is a Bloomberg Business Flash, and I'm Karen Moscow. This update brought to you by b and Why Mellin's Perishing Learned Why the world's most sophisticated wealth management and institutional firms rely on Perishing to help them improve profitability, create efficiency, attract talent and manage risk at Pershing dot Com.

And futures are lower this morning, with S and P futures down forty points down, futures down two two NASDAG futures are down one hundred sixty and the ten year treasuries down to thirty seconds, held three point four eight percent, yield on the two year four point to three percent. And as a Bloomberg Business Flash. Now, here's Amy Morris with Moore on what's going on around the world. Amy, thank you. Karen Biser has an agreement to sell its

anti viral medication patchle of It in China. This has sources tell Bloomberg the White House will reopen a program today allowing 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 was ordered to stand trial for attempted murder. Prosecutors say David de Pep has a list of other targets, including California Governor Gavin Newsom

and actor Tom Hanks. And sports in the NBA, the Wizards and Warriors lose the NIXT win the World Cup Finals, set for Sunday, Argentina will be taking on France Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than journalists and analysts in more than one d twenty countries. I'm Amy Morris, This is Bloomberg. Nathan Thanks Amy six three. Now on

Wall Street, I'm Nathan Hagar. This is Bloomberg Daybreak, and we turn again to the collapse of the cryptocurrency exchange f t X and what it means for the outlook for digital currencies. This week on Capitol Hill, the new CEO of f t X, John J. Ray, testified about the practices inside the company that he found disturbing that the absence of record keeping, employees would communicate invoicing and expenses on on slack, which is, you know, essentially a uh,

you know, a way of communicating for chat rooms. And after John Ray testified to the House and the Senate, Bloomberg Shinali Basset spoke with Oklahoma Republican Congressman Frank Lucas about steps Congress can take to protect investors. Something I wonder about is when you listen to the hearing testimony of John Ray, the new CEO of f t X, are you finding that you can find any closure for your constituents or any path forward? I wish I could say that, but clearly this is a multi bid indollar

mess that's going to continue. When Mr Ray pointed out to us that the bookkeeping system was rudimentary off the shelf small business software being used to manage a multi billion dollar enterprise. When you discussed the lack of strong board management and the various enterprises, the ability of the CEO to loan himself money out of the company. Uh,

it was horrified. But that's what this rings about. Get to the to the bottom of the mess so we can figure out how to make sure from Congress's perspective, this doesn't happen again. Has it changed your view of the entire crypto industry or do you view this as a one off of that. Well, I've always been a little suspicious of crypto, Not so much from the perspective of the professional investors, but there are a lot of little people out there who put their money into this

who've been pulled in. I said in thirty two of my town meetings this summer, only invest the money you don't need. It's the wild West right now in crypto. Unfortunately, there was a gunfight and the investors may have lost. You asked him the hearing also why certain assets were left out of the bankruptcy. Do you feel that those assets should have been included. Well, ultimately, the investors will want as much of their money back as they can possibly get. And when Mr Ray could identify a billion

dollars that they had pretty well tied down. But if public reports are really that needs six or seven billion may not be accounted for you. I'm very unnerved, and I also wanted to know because is the international nature hundreds some enterprises scattered around the world in ft X, how how that would act. Would would prudent regulators perhaps in the United States and other countries have assets and countries where perhaps the regulation one suppertinent they want to

draw up on that. Those are all questions that ultimately will be answered. But it's important to people who put some maybe their life savings I hope not, but put real money into this what now appears to be a fraud. Among your peers on this committee, there seems to be a debate here about the role of the SEC when it comes to enforcement of the crypto industry and laying out the rules of the land here. What do you feel is the right role for the SEC versus the CFTC.

As you've also previously spent time on the Agriculture Committee, chaired the Egg Committee. When we head Mr former Senator Corsign under Oath about his debaucle CFTC is a proactive entity. You come to them with ideas and concepts. They proactively make rules and regulations. Securities Exchange Commissioners are reactive. They come in after the fact. It's two different cultures, two

different perspectives. We'll see when all this sorts out. The incoming chair amount of the Financial Services Committee, Pafrid McHenry, is very focused on bringing order to the crypto industry. Uh, we'll see what form that takes, but it will involve both and financial services. And we've got to make sure that this kind of a mess can't happen again. And that was Republican Congressman Frank Lucas of Oklahoma speaking with Bloomberg shin Alli Bassik. You can catch the full interview

on Bloomberg dot com and on the Bloomberg terminal. Checking bitcoin right now, It's down eight tenths percent on the session. Just shove seventeen thousand, seven hundred. Bloomberg Daybreak is brought to you by the Jewish Communal Fund j CFS. Donor Advised Fund is the smart tax sufficient way to manage your philanthropy. Open a JCF fund now to lock in two tax deduction. Visit j CF and why dot org. We have your top stories of the morning, plus local

headlines and a full checker market straight ahead. First, Bloomberg Meteorologist Rob Caroline Claudian dry this morning. Can't say that for the ride home this afternoon, with dealing with rain later in the city. Today, temperatures up to about forty five, rainy, breezy, Tonight forty five. Tomorrow rainy and breezy. The rain may be heavier time, especially Tomorrow morning high forty five to fifty.

Sunshine returns on Saturday, high forty five. Sunday chilly Sunday with a higher thirty five to forty Rob Caroline with your weekend forecast on Bloomberg eleven three oh broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg Elving Freedom to Washington, d C, Bloomberg ninety nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine 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 coming up on six thirty on Wall Street. Good morning, I'm Nathan Hagger and I'm Karen Moscow. We're just about three hours away from the open of US trading. Time to the Five Things that you need to notice start your day. Brought to you by I v k R Investment Advisers switched to Interactive Brokers for lowest cause, global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at ib k R dot com slash r

i a first. The sell off continues this morning after the FED raised interest rates by another fifty basis points. At the same time, Chairman j. Powell is dampening hopes were 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 says the Fed will stay the course until the job is done. Mel Stocks stamp the two day winning Street Karen. Following those remarks from Chairman pal Sylvia Jablansi, the CEO of Defiance ct F, says, for investors, the FED share knocked

the wind out of their sales. The market I think was disappointed by of 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 defined CTF says she was more optimistic about a Santa Claus rally before Powell's news conference. Well, Nathan,

we have more policy decisions on the way. In Europe, the Bank of England has expected to follow the Fed with a half a point rate hike this morning, and in Switzerland, the Swiss National Bank also raised his benchmark rate by fifty basis points. In Asia, we're looking at week economic data, Karen, China's economy worsened in November before Beijing dropped its COVID zero policy. Retail sales contracted and

industrial output missed estimates. And to Corporate News. Now, Nathan, we're Twitter owner Elon Muski is selling more shares of Tesla Bloomberg Steve Rappaport joins US Live with that story. Good morning, Steve, Good morning, Karen, and Nathan. The yupp. Elon Musk is offloading three point five billion dollars in Tesla shares this week, his latest sell off to raise

cash for Twitter. Tesla stock is down this year as investors 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. Testla's troubles are costing Musk more than just money. He also lost his title as the richest person in the world. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Okay, Steve, thanks.

In a note on politics now, Senator Elizabeth Warren is announcing a bipartisan billing to cracking down on cryptocurrencies used in money laundering. The legislation would require crypto exchanges to verify customer identities as other financial institutions do. And that's the fine things you need to notice start your day. Brought to you I Interactive Brokers. We are watching shares of Tesla this morning. They're down one point eight percent

in early trading. S ANDP futures also lower, down thirty eight points. That's down about nine tenths of upper sent Down futures down seven tenths of upper cent or two hundred thirty four points, and ASDAC futures down one and a quarter percent down a hundred fifty points straight ahead, your latest local headlines at a check a sports and this is Bloomberg. Thanks caring at sixty one on Wall Street. Let's bring an Amy Morris for look at what's going

on in New York and around the world. Good morning Amy, Good morning Nathan. Investigators still trying to figure out what sparked that major fire at an NYPD warehouse in Brooklyn. Former NYPD Chief Terry Monahan says they don't expect anything to be salvageable, but they do still have some records. Everything to be documented in databases. At least what the

evidence showed should be documented somewhere. It's just that physical evidence CRUs continue to look for hot spots, 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, and at least not yet. A judge has blocked the Taxi and Limousine Commission from raising the pay of ride hailed drivers, while a lawsuit by Uber is pending. Uper argues the

pay raise would force them to raise fares. Driver advocates tell the New York times they're stunned, the court would temper rarely blocked those races. New Jersey Transit officials developing a no ride list for violent passengers who assault transit workers. A year ago, passengers who assaulted employees would face steep fines, but now the agency is working on a policy to ban disorderly writers from the transit system, including a permanent

band for any passengers who use deadly weapons. The House has passed short term government funding bill to push a government shutdown deadline back a week. On this vote, the yeas are two hundred and twenty four and the nays are two hundred and one. The motion is adopted. It funds the government until December twenty three. The short term bill now goes to the Senate. The FBA says there's

a nationwide shortage of amasa sillin. The popular antibiotic is in high demand because of more respiratory viruses in the US. Officials a part of the problem supply chain issues. 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 any more as this is Bloomberg, Nathan, thanks Amy six thirty three

on Wall Street time for the Bloomberg Sports upthing. Bront By try stayed out of here again as John Stanshower 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. Brusset high left against Caruso, certainly to the quarter crossover ocle breakers Town the three Shilen brunt Si puts takes up by nine, which twenty seven point nine ago in overtime, and that

should be it. In the Windy City Wow ESPN New York nixt beat the Balls on one point for Julius Randall and Brunson scored thirty r J Barrett at it twenty two. The Knicks of the worst three point shooting team in the NBA, and yet last night they made

eighteen of thirty four. They're up to sixth place in the East as they oddly play the Bulls again tomorrow, also in Chicago, the night after the Knicks one or fifth in a row, the Rangers will try to do likewise, they host Toronto the Devil's Night try to end a three game, losing Street the host Philadelphia NFL Tonight forty Niners in Seattle nin there's one six in a row.

A win tonight clinches them the NFC West. The Jets have made a change in their quarterback depth chard Zack Wilson, who went from first string all the way down to third, is now at least up to second, ahead of Joe Flacco, still behind Mike White, who will lead the Jets into a home game Sunday with Detroit. The Giants play the primetime game in Washington. The Commander is playing well despite

all the turmoil surrounding their owner, Dan Snyder. Washington Post reports Snyder is moving towards moving forward with receiving offers from those interested in buying the team from him. At the World Cup France ended Moroccos Cinderella, Ron's a Sunday's final France against Argentina. John stashiell or Bloomberg Sports nap all right, John, Thanks and Bloomberg Sports was brought to you by Audie. 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. 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 Potus got kN X in Los Angeles. We're talking about the rising cost of

write downs at Water Brothers Discovery. I'm Corney Donahoe on ktr H in Houston. Grocer say Plycross, gravy and butter are in short supplied this holiday season. I'm Gina Servetti and for k CBS and San Francisco, I'm reporting that Twitter has updated its private information policy, saying it will remove any tweets or accounts that share someone's live location going forward. I'm Kimberly Adams and on WBC in Boston. I'll be reporting on elon Musk selling more testing staff.

I'm Stephen Carol and Bloomberg d a B Radio in London. We've been reporting on a bumper day of Central Bank decisions in Europe from Switzerland, Norway, the UK. On the Eurozone, I made Cory on ww w J in Detroit. I'm rewarding Ford in a Chinese company. You're thinking about building up batter required in Michigan. Those are some of the stories. Are hundred Bloomberg journalists and analysts are working on this morning around the world. It's almost six thirty seven 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 of Fumio Kashita last week would provide Japan's self defense forces with unprecedented resources around forty three trillion yen

or fifteen 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 local technologies would allow the military to get more bang for its end. 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. Listen for Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at O P I N and go. It is six

thirty eight on Wall Street. Just a head on Bloomberg Daybreak, We'll take a look at the ft X fallout after two days on Capitol Hill. How are lawmakers feeling about cryptocurrency, if any minds changed. Plus, we'll get an update on efforts to avoid a government shut down on Capitol Hill and a new crackdown on TikTok in the Senate. Bloomberg

Government Congressional Border. Jack Fitzpatrick joins us. Next. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Picktake. This is a Bloomberg Business Flash, and I'm Karen Moscow stops following this morning following the Federal Reserve rate decision and make it to the First Word Breaking news desk for today's morning call. Here's Bill Maloney Doll,

good morning, and good morning, Karen. That's right. US futures are under pressure right now as the Fed set will go higher for longer. Yesterday, deaf Future Crontaly down two points, s to b Strop forty and and Nasdak features are lower by one five. The US ten year old at three point four nine percent, Gold is down twenty nine Oil is little changed, and bitcoin is trading lower by

point percent. Hong Kong fell one point six percent overnight, while up markets are also trading in the red this morning and back in the US on the economic Frinday thirty jobs claims, retail sales, Empire Manufacturing, and the Philly Fed.

In other news, according to a filing, Elon Musk sold it as much as twenty two million shares of Tesla this week and wrapping things up, Marriott was cut to equate over at Barkley's, Cognisant cuts underweight to JP Morgan, and A T and T was cut to equal weight over at Morgan Stanley Live from the first breaking news discom Bill Maloney care right, Bill, thank you to hear live breaking news over your Bloomberg type squawk on your terminal, A s U, A w K. That's a Bloomberg business flash.

Now here's Amy Morris with Moore unless going on around the world. Amy, thank you, Karen. The Senate wants to ban the use of TikTok on government bones and devices. A bill passed with no objections last night still needs to be passed by the House and signed by President Biden. Chances are dimming that Congress will 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. And sports in the NBA, the Wizards and Warriors lose the Knicks when the World Cup Finals set for Sunday Argentina. Take and on France Global News twenty four hours a day on Errand on Bloomberg Quick Take, powered by more than twent journalists and analysts in more than one d twenty countries. I'm Amy Moore, as this is Bloomberg. Karen right, Amy, thank you, And it is six forty two on Wall Street. Let's turn to news and science and technology now with the Bloomberg

and j I T STEM Report. It is brought to you by 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 E d U slash fintech and here's just making news and science, technology, engineering, and math. The Department of Justice as the US has seized dozens of Internet domains and charge six people in a sting intended to bring down

a network of cyber attack for higher services. The websites were used to launch or attempt to launch millions of so called d d o S attacks around the world, short for distributed denial of service d d o S attacks direct huge amounts of junk Internet track if I had a website or computer network, to knock it offline. For the fourth time this year, Elon musk Is unloaded Tesla stock. The Electric Carmakers CEO sold almost three point six billion dollars worth of shares this week. That stock

has sponged this year. Investors are concerned that musk forty billion dollar purchase of Twitter could have an impact on Tesla and Forward, and a Chinese company may build a battery factory in Michigan despite current US China tensions. The automaker and c at L are trying to take advantage

of a complex arrangement to read new tax benefits. Bloomberg News has learned that Virginia is also a possible home for the multibillion dollar facility, and as the Bloomberg n j I t STEM report Nathan, Well, that'll be one

to watch. Thank you, Karen. We're coming up to on Wall Street and it's some time to check what's going on in d C. Some of the top stories in our nation's capital include the ongoing fallout on Capitol Hill over f t X, the Senate voting to band TikTok on government owned phones, the House passing a one week stop gap to avoid a government shutdown, and President Biden

encouraging fair elections in a meeting with African leaders. Let's bring in Bloomberg Government congressional reporter Jack Fitzpatrick's for more on some of these stories. Of course, Jack, we've been following the f t X hearings very closely over the last two days on Capitol Hill, have you heard any minds change from lawmakers about crypto? Not really among the enthusiasts, the enthusiasm is still there. It may be the case that some Democrats who had concerns see those concerns as

ramped up. Brad Sherman, the Democrat from California, described crypto as a garden of snakes. But some of the people who work on these issues on the Republican side are still seemed to be pretty enthusiastic. The Senator Cynthia Lummis uh sort of went on defense and said, you know, there's a separate conversation about f t X versus broadly

about cryptocurrencies. She's worked on a bill regulating cryptocurrency. Um Patrick McHenry, who's in line to be the Financial Services Committee chair in the House next year, Republican from North Carolina, that he's still a believer in digital assets. So it doesn't seem like the kind of situation that's fundamentally changed, you know, where the support and where the concern is. Maybe it just uh ramped up the pressure for those who already had concerns. Well, where does this leave the

possibility for further regulation around crypto. Are we saying that same kind of bipartisan split when it comes to that. Uh, you know, there has been some bipartisan work on regulation. Uh. Senator Lamas has worked with and and proposed a bill with Senator Kristen gillibrand, a Democrat uh to set up a regulatory framework. Um. That that's one of a few

things that have been proposed. It's not the simplest conversation to get into, and it's difficult to see exactly how Congress works together with very narrow majorities in the House and Senate with different parties in the next Congress, So you can't exactly guarantee a lot of progress on this issue going forward. But there definitely are still key lawmakers who are interested in taking this up. They're not just trying to wash their hands of it and say, well,

clearly crypto is terrible, we have to simply crack down. Uh. There there probably is some bipartisan interest still in in creating that kind of regulatory framework. Speaking of bipartisan jack, we don't often get to say bipartisan passage in the Senate, but man, did we see that when it comes to TikTok. Yes. Uh. So, you know, on unimportant bills, usually they managed to pass things by unanimous consent in the Senate. Uh. That might be renaming a post office or something along those lines.

They actually took up and read too, by unanimous consent, pass a bill to ban TikTok on government owned phones. Uh. Clearly a bipartisan and unanimous reflection of the concerns about the Chinese owned app being on government phones. The security concerns about that pretty significant. Uh. So that that was relatively sudden in terms of it coming up to the Senate floor and being passed, but clearly that that at least that limited measure on government owned phones was something

there's a lot of support for. And it looks like where you've got a limited measure when it comes to keeping the government funded. What's the update on averting a government shutdown? Well, they're buying an extra week. Tomorrow night, Friday night is the deadline currently they are. The House just passed a week long stop gap. The Senate is supposed to take that up probably today, unless they want to work late and wait until the last minute do

it Friday, but likely today. Uh. They have a framework agreement on how to do a real government funding bill. UH. And so now they essentially just need to finish writing it, which takes a little bit of time, but the goal is to be able to do that and enacted by December twenty three, next Friday. UH. And lately it's been

good news in terms of the progress on that. So they're buying an extra week and crossing their fingers that they can finish what I'm sure would be more than a two thousand page bill by them about a minute left here, Jack. President Biden has been focused the last couple of days on Africa, the Leader's Summit. What's some of the highlights from that, Well, they emphasized fair elections.

Jake Sullivan brought this up and said that it's not about a specific warning, but they wanted to express that there are elections coming up and they want to emphasize the importance of free and fair elections. A lot of talk about investment, about more than fifty billion dollars in US investment in Africa over the next three years. UH. And of course you you saw the presidents stay at the hotel where this happened to watch the Morocco France

World Cup game. Uh not not exactly the most important part, but investment and free and fair elections really the big two prongs there. Yeah, and you know, Morocco is part of Africa, of course, so the focus certainly there as well. Bloomberg Government Congressional reporter Jack Fitzpatrick joining us live from

the nation's capital. Read more on all these stories at Bloomberg dot com or on the Bloomberg terminal, and follow all the latest on Bloomberg Radio in Washington, Bloomberg and one oh five point seven FM, HD two S ANDP futures right now down thirty eight points, Staff futures down two hundred forty one and nastack futures while we're by

a hundred forty nine points. You're listening to Bloomberg Daybreak, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape. This is a Bloomberg Business Flash, but I'm Karen Moscow. Futures are lower this morning following the Federal Reserve interest rate decision, and we check the markets all day long

here on Bloomberg Radio. S and P futures. They're done about nine tens of percent, down about thirty eight points. Down features down seven tenths of upper center two hundred thirty four points. And Nasdack future is really leading to declines here, down one at a quarter percent. They're down about one forty eight points. The attacks in Germany is

down one point one percent. Ten year treasury up two thirty seconds, you know, three point four six percent, and they yield on the two year four point to two percent. Nine Max scrude oil is up tenth of per cent, or eleven cents at seventy seven dollars, thirty nine cents of barrel co MIxS goal down one point six percent, down twenty nine dollars seventy cents a seventeen eighty nine twenty announced the Euro one point six to one against

a dollar, British pound one point to three four three. Again, it's at one thirties six point six zero. Bitcoin is down six tenths. It's said about seventeen thousand, seven hundred dollars, and that said Bloomberg Business Flash Nathan, all right, Karen, thank you to six fifty six on Wall Street. Bloomberg Surveillance is up next. First, we want to take a look at some of the stocks moving in the pre market with Bloomberg Radio and TV Markets correspondent Pretty Gupta

with a fed driven sell off this morning. Creedy still though, we got to talk about Tesla and the sell off from once again from Elon Musk. Some individual stories, Nathan. They say that this holiday time things are going to slow down. That's kind of when something sneak past us or attempt to. Nevertheless, Tesla shares t s L as your ticker down one point six percent in the pre market. This comes after the CEO Elon Musk, still three point six billion dollars worth of Tesla stock. This is fourth

time selling shares this year. And on top of that, Cathy would also bought some shares in the e V makers. I remember we've been talking law about how Elon Musk is going to be financing some of the Twitter debt. Perhaps this is a part of his one of his moves, but nevertheless, his personal wealth is certainly taking a hit and he is looking for that cash and Tesla NEP shares as a result taking that hit this morning down

at one point six percent. Another mover you want to keep an eye on is Novavax n V a X shares down about ten percent in the pre market. This is a biotech firm offering a hundred and twenty five million dollars worth of shares and on hive million dollars worth of convertible bonds, saying it's agreement to supply COVID vaccines to the UK have been halves a little bit of share dilution there in addition to some of the UK covid news as well that you are starting to remember.

Novavax was one of the more later contenders to get approved for the COVID vaccine, including out after I say, the fives vaccine and the Maderna vaccine as well as Johnson. Johnson's Novavac didn't quite get in on that boom that others did as well. Nathan, we can't uh start the morning. We'll talking about bitcoin in some capacity. Twenty for me to the bitcoin minor Core Scientific CEO r z is your taker. Up about thirty four percent in the pre market.

A massive move here for one of its largest creditors, be Riley Financial issued an open letter on Wednesday laying out a proposal for the company to avoid bankruptcy, basically giving them a lifeline after the chaos of f t X and all the ripple effects there, so some massive news on that front. Nathan, I'm gonna leave you with this last one. Verizon VZ is your Taker shares popping

about one point four percent. Morgan Stanley is the winner here, upgrading it to overweight and downgrading A T and T on the other hand, to equal weight, saying in a note that North American telecom services sector faces a bounced outlook heading into next year. But Verizon is very clearly their picks. So VZ up one point two percent, and then you have to look at A T and T as well, and those shows actually down one seven percent. The taker is just the letter T. Some Morgan Stanley

moving the market this morning. Yeah, interesting to see some analyst moves uh under the hood of the broad sell off that we've got after the FED decision. Bloomberg Radio and TV Markets correspondent Credy Gupta with us as always this morning, futures as a whole down thirty six points for the SMP futures down. Futures are lower by two or twenty four points. NASSECT futures down one hundred forty two points. This is Bloomberg Daybreak. I'm Nathan Hager alongside

Karen Moscow. It is six fifty nine on Wall Street. Bloomberg Surveillance starts right now by from the financial capital of the world, broadcasting across the globe. This is w b b R, New York Bloomberg. He living Frio. I wouldn't see us considering RAID cuts until the committee is confident that inflation is moving