Bloomberg Daybreak: December 16, 2022 - Hour 1 (Radio)

economy into recession. And we check the markets all day long here on Bloomberg SMP futures down more than one percent, down fifty four points, Dow and NASDACK future is also down more than one percent, with Dow futures down four hundred twelve points and nastack futures down a hundred twenty one. Can your treasury down twelve thirty seconds? He on three point four nine percent and they yield on the two year at four point to five percent, And that's a

Bloomberg Business flash. Nathan all right, Karen, thanks for coming up to five fifty six on Wall Street's side for our daily Bloomberg lob Brief exploring legal issues in the news, and today we focus on a New York aw that temporarily lifts the statute of limitations on civil sexual abuse and harassment claims, and it is expected to lead to a flood of lawsuits. Hundreds of alleged victims of sought legal advice in recent days, and companies are calling outside

attorneys to prepare for potential claims. That's according to interviews with lawyers from across the country. Lawsuits have already been filed against former president Donald Trump, comedian Bill Cosby, and billionaire Leon Black over allegations they assaulted women decades ago, which their lawyers deny. For more, Bloomberg's June Grosso speaks with legal reporter Eric Larson kind of plaintiff sua company to hold them accountable for alleged abuse even if the

alleged abuser is deceased. Yes, in fact, that has already happened. In the case of Atlantic Records, part of Warner Music Group. Warner Music is being dued because the Atlantic Record founder allegedly decades ago, more than forty years ago, sexually abused women.

So now the company, you know, saying that they're looking into these allegations, interviewing people who may have been around back then, saying that many of the individuals who would have been witnessing our deceased or in their eighties or nineties. So clearly this case there's a good illustration of how difficult it might be for some of these defendants to

defend themselves. Notably the suit against Bill Cosby. You know, it also named NBC Universal Media as a defendant because it aired the Cosby Show in a different World, you know, to Echather the cousby starting. So NBC Universal is accused of especially turning a blind eye to cause these conducts for years. A similar claim made against one of the

music groups. Of course, both companies are expected to fit those very strongly in court, and a lot of these claims are expected to be settled before a lawsuit is even filed, to avoid the publicity associated with it. So plaintiff lawyers best chance is before they even filed the suit,

That's right. That's why a few of the lawyers, I suppose to you said that what we end up seeing in court, actual lawsuits that are filed are really just going to be the tip of the iceberg, and that a lot of these claims are are going to be resolved before anything becomes public, and that as these plane emplawyers know, you know, some of these claims may be so serious that a company will simply want to settle them just to keep them from becoming public. That they

can use that as part of their settlement strategy. So I'm not sure if that increases the amount of money that they get paid or whatnot. I'm sure that every settlement is going to be handled a little bit differently, but clearly the reputational damage is potentially significant for some of these employers. If you can imagine as Bloomberg Legal reporter Eric Larson speaking with our June Grosso on this new New York law that temporarily lifts the statue of

limitations on civil sexual abuse claims. 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 podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal b law Go.

Looking ahead to the market open looks like more losses for Friday, SMP futures down fifty one points, Stown futures down three in Nastack futures are lower by a hundred thirteen points the ten. Your treasury is down thirteen thirty seconds deal three point four nine percent, yield on the two year four point to five percent, and I'm ex Scrooge down two and a half percent now down a buck one barrel comex Scold up two tenths per center, three dollars higher at seventy nine eighty per ounce. Euro

one point zero six to five against the dollar. The end one thirty seven point one two. We'll get a check of the business headlines, all the news you need to start your day. Our two of Bloomberg day Break starts right now. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, bloo Bloomberg Business

apt and at Bloomberg Quick Take three. He's a Bloomberg Business Flash and I'm Karen Moscow US not Index futures are lower this morning, along with European shares and the concerned the resolve of central banks to continue their fight against inflation will tip the economy into recession. You check the markets all day long year at Bloomberg S and P. Future is down forty eight points or one at a

quarter percent down. Futures down three hundred sixty seven points or one point one percent, and NAZDAC futures down a hundred twelve points or one percent. The decks in Germany's down about eight tents of a percent. Ten year treasury down thirteen thirty seconds, heel three point four nine percent, the yield on the two year four point to five percent.

Nine X screwed oil is down two points seven percent, down two dollars six cents at seventy four dollars five cents of barrel comics called up two tens percent or three dollars thirty cents at seventeen ninety one ten an ounce. The euro one point oh six to four against the dollar, British found one point to one six five and the ends one thirty seven point oh six. And bitcoin is down to in a quarter percent at seventy thousand dollars. And that's a bloomberg business flash. Now here's Amy Morris

with Moore on what's going on around the world. Amy, thank you, Karen. Ukrainian authorities say Russia has launched a major missile attack on energy of facilities and infrastructure are Ukrainian Air Force spokesman says Russia today fired more than sixty missiles. A huge aquarium in the center of Berlin has burst, spilling more than two hundred sixty four thousand gallons of water and debris, causing a wave of destruction at the sea life tourist attraction. They're looking into the cause,

but for now they're blaming freezing temperatures. In sports, the Caps, Bruins and Devils lose. The Rangers win. The World Cup final between Argentina and France. Is Sunday Global News twenty four hours a day on errand on Bloomberg Quick Take, powered by more than twenty hundred journalists and analysts in more than one hundred twenty countries. I'm Amy Morris. This is Bloomberg. Nathan all right, Amy, Thanks, it's two now on Wall Street. This is Bloomberg Daybreak. I'm Nathan Hagar.

That's Karen Moscow. And we've got some other stories making news this morning. So let's get right to the Beijing's rapidly spreading COVID outbreak has turned the Chinese capital into a virtual ghost town. We've seen stores close, restaurants turn empty, residents staying home either because they have COVID or afraid they'll catch it. While officials have abandoned efforts to track

case numbers. Anecdotal evidence suggest entire families and offices in Beijing have become infected in the span of just days. Safe to say, it could prove a difficult issue, to say the very least for China's less developed healthcare system.

Real issues, they're Karen, Oh, indeed, all right, Nathan, While we turn to the markets now and Bank of America, which is saying that global equity funds saw big inflows ahead of this week's f O, m C and ECB rate hikes, then hawkish comments triggered a sharp sell off in equities. Strategist led by Michael Hartnett say a policy mistake by central banks could result in a hard economic

landing next year. Well. Meantime, the largest U. S steelmaker is warning its shareholder as the recession concerns could affect demand. New Core says it's steel mills business will report considerably lower earnings in the fourth quarter due to lower shipments, and it also notes average selling prices are down well, Nathan. Amazon is making more moves in the premium video space.

It's partnering with Games Workshop Group to develop film and television productions, with initial work focusing on the Warhammer forty universe Warhammer for e K, as it's known by fans. It's a franchise that already includes popular tabletop games, over three hundred novels, and has licenses content for several successful video games. Warhammer forty K Navan. Yeah, I guess I'm gonna have to catch up with see if my kids know anything about that. I am lost when it comes

to video games. All right, let's get right back to this market check in now with Tracy mcmillion, head of Global Asset Allocations Strategy of Wells Fargo. This is no game, Tracy, as we watch this sell off continue on the back of really hawkish rhetoric from central banks, what is this

market getting set for? Yeah, so definitely markets are keying off the said latest policy decision, and you know, add to that the the CBS hawkish comments yesterday, and you know, markets are are really starting to, um, I guess recognize the reality of a recession, a recession probably here in the US and a global recession and what that means. And you know the unemployment, the earnings contraction that comes

with that. So you know what what markets are now looking at is that reality, and they don't typically bottom until the central banks are are finished tightening, so you know, we won't necessarily see a recovery as long as we're we're um, we have restrictive monetary policy, so you know, UM, we think that markets are probably in for more choppiness, UM, for a difficult ride as we move into three more chopping us or a downward trajectory. You say that the

market doesn't hit bottom until after a recession. What kind of bottom can we be looking for here? Yeah, so, um, today we have a price target at the end of three of forty four hundred on the SMP five hundred, and so you know, from where we are today, that's about fourteen percent higher. But we think that markets could go down to the mid to lower three thousands, and that's where we think that the risk reward tradeoff is

going to be much more attractive. At thirty five hundred, for example, to our rand target, that's about any five percent upside, So we'd be looking for those opportunities around the mid three thousands. If we get down to the lower three thousands, that's probably another good opportunity to put

cash to work. And we're just shy of on the SMP five hundred right now, for those keeping score, where do you see those potentials, those pockets for opportunity heading into the new year, Tracy, Yes, And heading into the new year, we're going to continue to be defensive, So that means US sets that are international assets, and we like large tap companies over mid tap companies UH and small cap companies. And we also like UM the sectors that have higher quality earnings. So that's for US UM, UH,

information technology, energy, we like healthcare. We'd stay away from consumer discretionary and reads that are more economically sensitive and within fixed income UM. We like the short term part of the curve because of those higher rates and the optionality that it provides UM, and we like long term because we are seeing these rates that are higher than they've been over the course of the last decade. Are

you looking for further earnings revision? Setting into this conversation, we just noted the new core is UH predicting considerably lower earnings, and we've had this sort of parade of companies forecasting further downward revisions for earnings. Is that something that's part of the theme for you in Yeah, I definitely is we're looking for earnings estimates to come down

quite a bit from from where they are today. UM Our earnings estimate on the SMP five hundred is two oh five, and so that is significantly below the two it's keen that is the top line estimate for analysts, and significantly below the bottoms up estimates which are still around two. So in our last minute here, Tracy, what's the possibility that we could see a Santa rally at the end of this year? Is is that just out

the window at this point? Well, I guess anything's possible, especially with very thin trading here at the end of the year. UM. Any directionality can push markets UM significantly higher or significantly lower UM. But I'd say that, you know, given the news that we've gotten over the past couple of days, we just really have gotten nothing to support a bulk case, so UM a Santa rally is probably unlikely this year. All right, Thanks as always Tracy McMillian.

See how things go. And we do have the possibility for yet more of vlatility, especially today as a lot of these options contracts come doing Triple Witch and Tracy McMillian, head of Global Asset Allocations Strategy, at Wells Fargo with us this morning as we watch the selling continue around the world. SMP futures right now are down fifty three point, STAFF futures down four or five, NASTAC futures are lower by a hundred twenty five points. The decks in Germany

down just about one percent. The CACK in Paris is lower by one and a quarter percent. So it's a sell off across the board. In risk assets, tenure treasuries down thirteen thirty seconds, the old three point four nine percent yield on the two year right now four point to five percent, and nime X screwed as lower as well, down two point six percent, trading at seventy four dollars sixteen cents of barrel. Much more to come. Stay with us.

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 a Bloomberg Quick Take. She's a Bloomberg Business Flash. Hey, good morning. I'm Karen Moscow, and futures are falling this morning. We check the markets all day long here on Bloomberg Radio with SMP futures UH down one point three percent on fifty one points this morning.

Down futures down one point two percent or three hundred eighty seven points, and NASDAG futures are falling one point one percent or hundred twenty seven points. Tenure treasury down twelve thirty seconds. He on three point four nine percent. They yield on the two year four point to five percent. Nine X. Screwed oil is down two points seven percent or two dollars two cents at seventy four dollars nine

cents of barrel. And that's a Bloomberg business flash. Now here's Amy Morris with Moore on what's going on around the world. Any good morning, Thank you, Karen, good morning. The White House is encouraging Americans to get their updated COVID nineteen backs seem to prevent the spread of the virus over the winter. White House COVID nineteen Response Coordinator doctor As she Jas says COVID cases and hospitalizations are

on the rye across the country. Confidential data of about a hundred twelve thousand taxpayers inadvertently published by the I r S over the summer was mistakenly published again in late November, including names and contact information and sports the Caps, Bruins and Devils lose. The Rangers win. The World Cup

final between Argentina and Frances Set for Sunday. Global News twenty four hours a day on errand on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I maybe Morris. This is Bloomberg, Nathan, Thanks Amy. It's five twenty three on Wall Street. Good morning. I'm Nathan Hagar. This is Bloomberg Daybreak on the morning. We're talking markets. It has been quite the week for the SMP five, sharp gains

and losses tied to inflation data and the FED decision. Now, let's look at the path ahead with Bridgewater Associates co Chief investment officer Greg Jensen. He says to expect the downturn in the US and that it will last longer than previous recessions. Greg Jensen's worried the Fed maybe over tie name's he already had to say in a conversation with Bloomberg's Guy Johnson and Alex Steele. If China reopens successfully, how much of accounts weights is that to the down

draft you're talking about in Weston markets. Well, in some ways it's helpful into certain countries, it will certainly be helpful UM and and we do think while the timing on that's unknown, it'll it'll be beneficial. Although it's worth noting that China did not do the type of balance sheet actions that US European policymakers did in the sense that UM Chinese small and medium businesses are coming out of this with much worse balance sheets than they had

shut down these businesses. You've allowed them not to default on their debt, but you haven't forgiven the debt that's been piled up just to live while these business have been shut down. So you come out with much bigger overhanging China. But the other point I make is as China opens, this is not a great thing for the U For the U S and Europe. China has been a blessing in a sense to the U S and European and me because it's been such a disinflationary force

into a global inflation. China opening and the effect that's gonna have on commodity prices and competing for a raw materials in the world while the US and Europe are entering recession will probably make the central banking dilemma worse and potentially draw down, particularly the countries that don't benefit as much from Chinese growth, um draw down those economies

while China picks up. So this is not a great thing for the European and US economies, particularly the countries that don't have a tremendous amount of exports to China and and have monetary policy that is you know, has very significant inflation problems to begin with. You're seriously bumming me out. I want to go into my bed with suit cans and gold bars. So tell me what I'm supposed to go hide out in this? Why sit in

cash for the next few years? Well, I think, first off, cash at you know, at these levels are is is competitive. You know that's gonna be one of the dilemmas, right, So this year you saw it as the interest rate has changed a lot, that the change had a big effect. Now the bigger deal is going to be the level difference. Right, The yield on cash is competitive with the yield and

equity markets, with obviously the yielded bond markets. So I do think you're gonna see more people draw into cash, and it's not terrible at at those levels, it's a it's a pretty reasonable choice. Secondly, um, I do think we're at a turning point where the growth story is

going to be the bigger deal. So while we do think inflation for a variety of reasons will lag and be staker and more of a problem than While the recent inflation reports are no big surprise, you're gonna get probably a mix of inflation reports going forward, and and so where do you hide. I mean, we do think inflation next bonds are attractive long term inflation has not been priced into markets, and if the economy we gets a lot, real yields will need to fall. So we

think that's an area that's that's reasonable. And some of the emerging markets that haven't had the inflation problem, particularly that can benefit from the tail wind from China's they reopen. Those are the types of things where they're decent opportunities. But overall, it's not great out there, and cash is not a terrible seeing assets don't always go up. Even though we've had that, um, you know, we've had that

feeling over the last decade. That's Bridgewater Associates co Chief investment Officer Greg Jensen speaking with Bloomberg's Guy Johnson and Alex Steel. You can catch more of that interview on Bloomberg dot com and on the Bloomberg Terminal. Assets are moving lower this morning. We have SMP futures down to fifty one points are one in the third percent down. Futures are lower by three undred ninety five points. That's

a decline of one point two percent. NASTAC futures are lower by one point one percent or a hundred twenty five points. The tenure treasury is down thirteen thirty seconds, yield three point four nine percent. We've got this morning's top stories, local headlines, and a fuller check of markets straight ahead. First, let's get you your Bloomberg weekend weather forecast. Ramy, breezy day across the Tri State area will have temperatures between forty five and fifty the safternoon. The rain ends

as a few showers during the evening. It'll start the clear overnight lows near thirty live in town, twenties for the suburbs. Sunshine and breezy Tomorrow, highest ranging from forty five. It will be mostly sunny colder Sunday, with a high of thirty five to your forty. I'm Rob Carolyn with your three day forecast on Bloomberg eleven three oh broadcasting live from the Bloomberg Interactive Broker Studio in New York.

Bloomberg E Living Free to Washington, d C, Bloomberg one to Boston, Bloomberg one O six one to San Francisco, Bloomberg No. Six to the country, Sirius XM Cho one nine team, and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak and it is coming up to five thirty on Wall Street. Good morning. I'm Karen Moscow, I'm Nathan Hagar. Bloomberg day Break is brought to you by se I. Imagine your

asset management firms operational infrastructure as a competitive advantage. Let se I show you how at se I C dot M slash I M S. And we are nearly four hours away from the open of US trading. Let's get you up to date on the news you need to know. At this hour. US futures are lower as concerns and linger over Central Bank tightening. Only home builders, healthcare, and oil and gas companies posted gains in yesterday's session, and the energy sector could be poised for more outsized returns

in the coming year. And as of you from Goldman Sacks headed a commodity research Jeff Curry returns, you know, so far we're headed towards somewhere around twenty three returns and in two. So this is a continuation of the strong returns that we've been seen over the last several years. Jeff Curry with Goldman Sacks believes commodities could be the

best performing asset class next year. Well, global stocks, Karen, are headed for a weekly slide as the FED, the Bank of England, and the European Central Bank all dash hopes for more devilish policy. Megan Green, Global Chief economistic Crowle Institute says, despite the hawkish tone, inflation could prove sticky. I think the Fed is really considered that it will be stickier than the market seemed to be pricing in

and I think that's reasonable. The big question is why the Fed didn't think that three months ago with their previous economic projections, And the Fed doesn't really clarify that. Megan Green with Cole Institute spoke on Bloomberg's Balance of Power with David Weston. You can catch a weekday's noon

Eastern on Bloomberg Radio and Television. Well, turning to politics now, Nathan how, Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer are saying President Biden should run for re election in four The support pushes back against some Democrats, urging the party to elevate a younger generation of leaders, saying in d C. Congress is working on two bills to limit or ban the use of TikTok. Florida Senator Marco Rubio's bill would totally ban the social media app. He

is very concerned about China's access to users private information. Well, turning to Twitter now, Nathan Elon Muski is making moves again to regulate content on the platform. Twitter is is spending me accounts as several journalists Bloomberg Steve Rappaport joins US Live with that story. Steve, good Morning, Good Morning, Karen, and Nathan Elon Musk suspended reporters from several outlets for posting real time locations of his private jet. Though tracking

planes is available through public flight data. Musk says the accounts violated Twitter's policy on doxing, a term used for exposing private information. About someone to subject them to harassment. Musk tweeted reporters received a seven day time out, adding some time away from Twitter is good for the soul. Live in New York. I'm Steve Rapp report Bloomberg Bay Break. Okay, Steve, thanks. SMP futures down fifty two points, Style futures down three

ninety nine. Now NASZAC futures are lower by a hundred twenty five points. The tenure treasury is down thirteen thirty seconds. You know three point four nine. I'm x scrudges down two point six percent at barrel. The euro is at one point zero six to five against the dollar. Local headlines and a check off sports up next. This is Bloomberg. It's five thirty one on Wall Street, and Amy Morris has more on what's going on in New York and

around the world. Amy, Good morning. Nathan Annetiquette reporting its first pediatric death of the flu. Seasoned health officials say a child under the age of nine has passed away in New Haven County. Officials are urging everyone over the age of six months old to get a flu shot as soon as possible. This as health officials are worried about a COVID surge emerging in New York City. Epidemiologist Eric Fiegelding tells ABC masking is really only part of it.

Masking is only one element of the total strategy to mitigate against COVID. There's also testing, which the White House has just announced UM free testing UM kids mailed to every address in America. Cases and hospitalizations are on the rise. After the Thanksgiving gatherings, the Senate passed a funding bill to keep the federal government operating for one more week.

Senate Majority Leader Chuck Schumer says this gives lawmakers a little more time to pass a year long spending bill before they have to leave for their holiday break next week. Hopefully we'll finish the job passing a package that will keep the government been fully funded into next fall. The new deadline is December. A woman from Medicine, New Jersey, is among four people charged with providing financial assistance to Islamic State. Seema Rahman is charged with providing material support

to a foreign terrorist organization. Authorities say she and three others used cryptocurrency, go fund me and PayPal to raise what they call blood money. Legislation prompted by Gabby Petito's murder is waiting for President Biden's signature. Parents of the New York Native are backing the Help Find the Missing Act, which requires information on missing people to be entered into the FBI's internal database then shared with the Department of Justice.

Under state law in New York is already required to share information on the missing, but New Jersey and Connecticut or not. Global News twenty four hours a day on errand on Bloomberg quick Take, powered by more than twenty seven hundred journalists and analysts and more than one hundred twenty countries. I'm anymore is this is Bloomberg? Nathan? Thanks five three on Wall Street time for the Bloomberg Sports Update, brought to you by Try State Out. He Here's John's

all right, Nathan. So many teams have been shelling out so much money, and the Yankees did commit three hundred and sixty million dollars, but they already had Aaron Judge. The Yanks had not added any one of real significance, and now they had Carlos rodon Z r. A. Each of the last two seasons was under three thirty year old left. He comes to the Yanks with a six

year hundred and sixty two million dollar deal. Radon, once the fourth overall pick of the two thousand fourteen draft by the White Sox, spent this past season with the Giants. He could be facing them in his Yankee debut. That's who the Yanks open three season against. Nixon. Rangers have both now won five games in a row. Nick's bring that streak into a game tonight in Chicago, where they

won it overtime just two nights ago. Rangers last night beat Toronto three one at the Garden, and three of the five wins in the Street, Rangers allowed only one goal. As for the Devils, they went a span of over seven weeks, losing only three times. They've now dropped four games in the past week, beaten by Philadelphia to to one Eve, though the Devil's outshot the Flyers forty nine the four. Brock Purdy, the NFL's only undefeated quarterback, last

player taking in the draft. He's gone from third string to first his first ever road game to thirteen victory at Seattle. That's the niners seventh win in a row. They clinched the NFC West during the wind streak. They're allowing only eleven points a games. Seahawks slump continues. That helps the Giants in their quest to make the playoffs. There's an NFL triple header tomorrow and then Sunday Jets home for Red Hot Detroit. Sunday Night, the Giants visit Washington.

John Stasher, Bloomberg Sports, Nathan Okay, John stash Our, thank you for that. The Bloomberg Sports Report was brought to you by Autie. Don't let someone else drive off in the outie model you've always wanted. Visit your locals Price State Autie Dealer to get behind the wheel of yours today, or visit outie Offers dot com for more information on Wall Street. Want to keep you up to date on what's happening on the roads. There's a bad crash north

found New Jersey Turnpike ahead of exit thirteen. Several lanes closed. This is because there was a deadly accident involving a tanker fuel truck, so expect significant delays again northbound Turnpike before exit thirteen. It's now time for the Tri State Business Report. Here's Bloomberg's a cory. The state of New York is banning pet stores from selling dogs, cats, and rabbits. A new law taking effect at the end of four is meant to prevent the sale of animals raised by

commercial breeders accused of keeping them in inhumane conditions. A group of apartments at Mercedes House, a luxury residential and retail complex on Manhattan's West Side, is in contract to sell for a little more than one hundred million dollars, sources tell Bloomberg. Empire Capital Holdings is buying the one hundred sixty two rental units. Investco acquire the units years

ago for one hundred seventy million dollars. A New York based developer known for a luxury apartment complexes and formerly owning the hotel Chelsea is betting on Miami's recent boom. Should Treat Group is expanding it's Miami Presidents is The company seeks to start sales next year or to three hundred seventy eight unit condominium tower in that city. That your Bloomberg drs Dague business report. I'm d Corey. Thanks said it's coming up to five thirty seven on Wall Street.

The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board for all the acrimonies surrounding immigration. Americans generally support two goals, giving undocumented immigrants brought to the US as children a pathway to legal status and securing the border. With only days left in the current Congress, lawmakers have an opportunity to deliver

a breakthrough on both priorities. A proposal by Senators Tom Tillis and Kirsen Cinema would provide a path to citizenship for some two million undocumented immigrants known as dreamers, who have lived in the US for much of their lives. It would also extend a rule that allows for the expedited removal of border crossers for at least a year. The framework produces solid winds for each party at the

same time. Either side gets everything it wants. That's the sign of a good compromise, and Congress should get it done. 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. We're coming

up to on Wall Street now. SMP futures are down forty eight points, Stown futures down three seventy one and Nasdaq futures on the decline by a hundred thirteen points. We're gonna get much more on this market. Sell off straight ahead. Our investors pricing in a threat of recession. Tracy McMillian, head of Global Asset at Wells Fargo, joins us. Next, this is Bloomberg Live from the Bloomberg Interactive Burger Studios.

This is Bloomberg day Break for Friday, December six. Coming up this hour, Uncertainty in markets over fed, tightening concerns. Democratic leaders track a Biden run in a crackdown on TikTok games, steam in congress, and Twitter suspends some accounts covering Elon Musk. I'm Amy Morris. New York City is cracking down on unlicensed cannabis products, while the state is prohibiting pet stores from selling cats and dogs. I'm John

stash Hour Sports. The Yankees have signed free agent picture Carlos Braddon the Rangers, one of the Devil's Lost One in Seattle. That's all s Train ahead on Bloomberg Daybreak on Bloomberg eleven Free on New York, Bloomberg nine one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nine team, and around the world on Bloomberg Radio dot com and via the Bloomberg Business App. Good morning, I'm Nathan Hagar

and I'm Karen Moscow, US knock Indise. Futures are following this morning. We checked the markets all day long here on Bloomberg Radio and SMP. Futures are down about four e two points this morning. Down futures down three fifteen. That's down about nine tenths of uppercent. NASDAG future is down about one percent or one hundred nine points. The decks in Germany's down seven tenths of upper cent ten.

Your treasury down ten thirty seconds, you know, three point for eight percent and a yield on the two year four point to five percent. Nathan Karin. This morning's drop in futures comes with concern over Central Bank tightening. The SNP slid two and a half percent yesterday. Only home builders, healthcare, and oil and gas companies posted gains. The commodity space could be set up for more gains in the new year. That's the view from Goldman Sachs, head of Commodity Research

Jeff Curry. What happens when China, the largest commodity consumer in the world, the largest oil and border in the world, begins to rebound significantly in the first part of next year, It's going to tighten all these markets tremendously and put a lot of upward pressure on prices in Jeff Kerry, Goldman Sachs thinks commodities will be the best performing asset class of global stocks. Meantime, nathan are headed for a weekly slide. Is the FED, Bank of England and European

Central Bank dash hopes for more devish policy making. Green Global chief Economistic Cruel Institute says central banks and markets seem to be working against each other. The Fed is effectively saying we're really serious guys to the markets, and

the markets keep trying to call their bluff. I think both hoping that infletion will come down faster, but also expecting a recession at some point in the middle of the year, and questioning how strong the feds res al really is to continue keeping policy tight making Grain with Cruel Institute made a comments on Bloomberg's balance of power with David weston Catch the Show weekdays at noon Eastern

on Bloomberg Radio and Television. Well in Asia overnight care in the market sentiment was risk off as well in reaction to the week central bank moves. Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong. Asian stocks traded mixed to lower as investors wrestled with Hawkey Central Banks. Shares in Hong Kong and Maitland. China reversed early losses

while US futures were relatively stable. The threat of US delisting ease for about two hundred companies from Hong Kong and China, and that aided sentiment, and China pledge to implement new measures for the property sector. Brian Curtis Spoomberg Radio Right, Brian, thanks so. Turning to politics now, top Democrats and Congress are backing Joe Biden and four How's figger.

Nancy Pelosi and sent A Majority leader Chuck Schumer both tell CNN that President Biden should run for re election, even as some Democrats urged the party to elevate a younger generation of leaders. Is a person with a great vision for our country. He's been involved for a long time, so his great knowledge of the issues and the challenges we face. In an interview on CNN, Pelosi said Biden has been a great president, and Schumer added heat support

Biden all the way. Staying indec Karen, Congress appears to be getting impatient with security concerns over China's influence on TikTok. Bloomberg said Baxter has more on that story. Congress is working on two bills that would limit or ban the use of TikTok in the US. The first is the one that passed the Senate this week, banning the use of the platform on government owned mobile phones. House Speaker Nancy Pelosi says she doesn't know if the House can

get to it this session. The second is Marco Rubio's bill that would totally ban the website. Rubio says he is very concerned about China's control and access to users private information. The move to do something is definitely picked up steam in San Francisco. I'm at Baxter Bloomberg Daybreak alreat and thanks so returning to Twitter now Elon Musk is making moves again to regulate content on the platform. Twitter is now suspending the accounts of several journalists Bloomberg

Steve Rappaport joins us live at that story. See good morning, Good morning, Karen and Nathan. People in the news business made the news when Twitter blocked accounts of reporters from The New York Times, The Washington Post, then other outlets. Elon Musk says they were denied access for tracking private jets, including his must describe sharing that information as basically assassination coordinates, even though his jet can be tracked by using publicly

available flight data. The Twitter boss then conducted a poll asking users when he should reinstate those accounts who disclosed his exact location, the majority voting to remove the bands immediately, Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve. Thanks. We have more news from one of Elon Musk's other companies, Tesla. A day after he sold more shares, Tesla announced it's ramping up suv production at its factory in Austin, Texas.

That story from Bloomberg's Charlie Pellett. It's a sign that the electric carmaker is making up for lost time at the money losing plant. Tesla shared the new production number in a tweet. The milestone comes a week after Bloomberg News report of the CEO Elon Musk, had asked the head of the company's China division to get the Austin

factory up to speed. Extrapolated out over a year, that production rate would get Tesla to about one hundred fifty six thousand vehicles, which is still short of the annual target of two hundred fifty thousand, but the company promoted in its third quarter letter to shareholders in New York. Charlie Pellott Bloomberg day Break, All right, Charlie, thank you. A more news out of the Bahamas on disgraced ft X founder Sam Bank been freed after a judge denied

a request for bail. The former CEO made a new bail application before the Bahamas Supreme Court, as according to Reuter's. Local media reports say the bail application is said to be heard in mid January, and futures are following this morning. S and P futures down one percent down forty one points down. Futures are down three hundred points or nine tenths of a percent, and NASDAC futures down a hundred

three points are also nine tenths of a percent. Straight ahead your latest local headlines, plus a check of sports, and this is Bloomberg. I think you, Karen. It is uh forty two degrees rainy in Central Park. We expect the rain to continue through the day. It's going to breezy with high sneer fifty degrees. It will turn partly cloudy overnight though as the rain ends, as showers flows in the mid thirties. Time not it will take a look at some of the other stories making news in

New York and around the world. For that way, You're joined by Bloomberg's Amy Morris. Good morning, Amy, Good morning, Nathan. New York City cracking down on illegal, unlicensed cannabis products. Authorities have seized more than one hundred thousand items worth more than four million dollars in an effort to clear the way for licensed vendors as the state tries to legalize and tax the marijuana market. COVID cases, hospitalizations, and

deaths are all on the rise after Thanksgiving gatherings. Epidemiologist Eric Fengel Dane tells ABC that the biggest jump is in New York City. New York City is seeing the fastest surge of cases. They're not just high transmission, but they're all UH. They're also at high community levels and wastewater surging. Also in New York City. Dr Figel Dane recommends you wear a mask on public transit or when you're in public. The Senate has past a one week

government funding bill intended to avert a Saturday shutdown. Senate Majority Leader Chuck Schumer says the extension will let lawmakers finish negotiations for next year's spending. No drama, no gridlock, no government shutdown this week. It's a win for the American people. The bill gives negotiators until December twenty three to hash out agreements on the roughly one point seven

trillion dollar fiscal spending package. The state of New York is banning pet stores from selling dogs, cats, and rabbits. Pet stores fought against this bill, arguing it would effectively put them out of business. The New York Times reports the aim is to stop these so called puppy mill pipeline. The band takes effect at the end of as the

U S Africa Leaders Summit comes to a close. Secretary of State Anthony B. Lincoln reaffirmed the US commitment to providing aid for African nations impacted by famine and war. Much of this assistance has gone to African countries which have been disproportionately impacted by the drivers of hunger, COVID climate and conflicts, and by President Putin's warren Ukraine, which

has made a serious crisis much worse. Lincoln says the United States has provided more than eleven billion dollars in the past year to address global hunger and improve nutrition. Global News twenty four hours a day on air end on Bloomberg Quickdake, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Amy Morris. This is Bloomberg Nathan. Okay, Amy, Thanks. I'm now for a Bloomberg Sports update, brought to you

by Tri stayed Out. A good morning, John stennshop your morning, Nathan. The Yankees have now checked off the first two items on their off season to do list. Number one, keep Aaron Judge. Number two was at a quality starting pitcher, and they've now done that with the edition of Carlos raddan thirty year old left He gets a six year deal hundred and sixty two million. He's been at All Star twice the last two seasons, first with the White Sox in this passion with the Giants, his e r

A was under three. Next on the Yankee shopping list, could be an outfielder at the Garden. Rangers scored once in each period, the last two by Jimmy VC. They made it five wins in a row, three one over Toronto and Newark. The Devil's gonna early go from jack Us to his sixteenth, but Philadelphia got forty eight season. Carter Hart and the Flyers won two to one, and that's the Devil's fourth loss in a row. The Nicks,

who one Wednesday at Chicago, play there again tonight. Nicks have won their last five nets are winners, are four straight, eight of nine, and they're in Toronto. Steph Curry won't play for Golden State in Philadelphia. He's gonna miss a few weeks with an injured shoulder, and with him, the Warriors are under five hundred forty. Niners stay red hot.

Their seventh win in a row. It came in Seattle comes lap throws down the sideline wide at George Kettle, thirty twenty cuts, sit side, ten cut, sit side again, tops down. Said sisters came to our fifty four yard or second of two touchdown hookups between the rookie Brock Purdy and George Kittle. The Niners one one, thirteen, they've clinched the NFC West Seahawks have lost four or five. That helps the Giants who are in contention with Seattle to the last two NFC playoff spots. Washington part of

that battle. Giants go there on Sunday night. Jos the actual our Bloomberg Sports. All right, John, thank you. Bloomberg Sports was brought to you by Audie. Don't let someone else drive off in the Audi model you've always wanted. Visit your local price state Audi dealer to get behind the wheel of yours today, or visit Autie offers dot com for more information. On the road this morning, be on the lookout for a bad crash northbound New Jersey

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dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hagar. Want to get right to this market now as we end a very volatile week following some hawkish rhetoric from central banks around the world. We are joined live this morning by Jeffrey You, senior strategist at b n y Melon. Jeff,

it's good to speak with you this morning. Is this a market that's starting to come to grips with the idea that central banks mean what they say when they say that rates are going to stay higher for longer, Well, it's about time to right now. This has been within our expectations, you know, throughout you know, in our Year Ahead, we are highlighted that that said the part would be high, not extremely high, but high as in five percent at least some bucks for longer and stressing up a longer

side of things. Because I'm the FED. Once real rates higher, uh, and if inflation is going to be stubborn, you know, than rates the real rates and cannot come off and with just relying on the non moordinar side and alone, right, so you need to to push the envelope on the non north side. And were with the ECB and and I was saying, they say the economy is in a better place, so you know, demanded them. They're both on

domestic side of things. And you know from the international you know, push especially of China, the opening in that benefits to the Eurozone as well. So if the inflation risks to the upside, then you know, why not keep great them higher for longer? And I think the ECB markets adjusting higher terminal rates as well. You know, that was something that's unexpected and would also highlight way three months or four months, and the POJ might join the

fray as well. So is recession fear replacing inflation fear as the bigger risk for this market? On the contrary, right, And at this point is really really clear here, I think central banks are actually more hawkish because they are less worried about recession. Markets need to get their sequencing right. It's because economies have been so resilient such as that central banks are willing to push the envelopes a bit. Right.

The central banks have said and in the past now that some pain is needed, of course, but you know, they're not going to destroy the economy or anything, you know, and like that. It's just in short, there's a lid on demand. That because in the U S side the labor market strong and in Eurozone we've had strong fiscal support um that demand um easing has not come at

strong enopper pace. So in the central banks feel comfortable pushing things forward a bit, I mean evenly a Bank of England for example, and I think they're making a policy area here, and they're pointing to the fact that demand has been a bit more resilient than expected, and looking at the data today, you know, probably does less the case in the UK compares to the Eurozone and

in the US. But it's the fact that economies are stronger than expected which is allowing central banks to do what they're doing, rather than suddenly thinking, oh, central banks are pushing for a recession. You know, those sequence is completely wrong. So how do you read the new Summary of Economic Predictions? From the Federal Reserve. Then they're calling for higher unemployment into the next year or so it is. Is that more of a rhetorical move by the Federal

Reserve or could we see the labor market start to crack? Um. So, I don't want to be over dramatic about this, but the labor market growth is going to slow, right, So we need to look at the first derivative universities the second derivative, right, because standards are so high right now, because the labor market has been hot in many economies

around the world. Right when things begin to slow, that's what we're looking for, that inflection point when growth starts to slow, not cracking, not suddenly unemployment and rising aggressively or anything like that. So first you go employment, so um, employment growth slows and then maybe unemployment is going to start to rise. The maps and natural progression of the

slowdown that's needed, that is part of the cycle. So again going back to my first point, now that so some pain so to speak, in the which in share Powell and others than have them highlighted. Governor Bailias highlighted as well that natural parts of the process where the labor market is less hot and then inflation comes back to target. But as the dot plots have them indicated,

and you need to be consistent here. Once we get labor market down towards of normalized levels, then you no longer need restrictive rates, right, then rates can start to come down. Right. It's just we're not there yet. Uh. And this new regime we're in, I just still think the markets are still getting used to when you know, after over a decade of in a relatively use monetary policy. So in our last minute here, Jeff, what is the trajectory for markets into the new year with more central

bank tightening to come? Um So, in the market are going to be mixed? Um So, a lot of will the hinge on? So you know where central banks and end up of course, so you know that's where we start on the defensive. No, No, the war is going to play a role, but also in a China reopening

is going to play a role as well. And I think on that note, a lot of experty markets globally, you know, could benefit in Asia, you know, in Europe and of the service detector, and also in the industrial sector in the US on the margins in a mine, as for example, you know they start in competitive We've had reports today of China starting to purchase something the iron ale and bolt them as well. So those things that could be positive at Central banks will start lean

against it. But I don't think they're going to crack the Columny or Crashlade markets or anything like that. So difficult, but because position is so light, there will be opportunities happen. Thanks so much for this, Jeff great as always to get your thoughts Jeffrey Mellon or Jeffrey you, I should say it works for b n Y Melon as the

senior strategist again. Thanks Jeffer. Joining us here this morning on Bloomberg Daybreak, as we continue to watch markets move lower, SMP futures now down one point two percent to drop a forty seven points. STOW futures are lower by three hundred fifty six points. That's the decline of one point one percent. NASDAC futures down one percent or a hundred fifteen points. This is Bloomberg