Bloomberg Daybreak: December 16, 2022 - Hour 2 (Radio)

a percent, or eighty seven points this morning. And we check the markets all day long here on Bloomberg Radio. The decks in Germany's down eight tens of upper cent. The tenure Treasury down twelve thirty seconds l three point four nine percent. They yield on the two year four point to five percent. Nine neck Screwed oil is down one percent on a dollar thirty nine at seventy four

dollar seventy two cents a barrel. Comics gold up a quarter percent or four dollar sixty cents at seventeen fifty announced. The euro one point oh six three three against the dollar, British found one point one eight nine. The end is at one thirty seven point oh four and Bitcoin is down two at about seventeen thousand dollars, and that's a Bloomberg business flash. Nathan. All right, Karen, thank you. It

is six fifty six on Wall Street. Bloomberg Surveillance is up next, but first we take a look at some of the names moving in the pre market. Bloomberg Radio and TV Markets correspondent Credy Gupta is with us now, Crety, I don't know what your most active security screen looks like, but I'm not seeing a whole lot of green out there this morning. Now. A lot of pain across the board, and I would argue it's almost worse because there's some

real pain in those big tech names. Surprise, surprise, and now remember very big sustainable kind of turnaround that we're looking for in the stock more or even the Santa Rally. You want your games to be pretty big, and that includes a lot of the big tech names. Of course, we are not seeing that this morning. Let me give you an example. Your Amazon shares a m z N. This morning, it is dropping by about seven tenths of

one percent. Now with the good news here is that it was much much lower, was down almost two percent earlier in the session. Some of those losses are getting paired, But this comes after JP Morgan cut its price target on the stock to a hundred and thirty dollars from a hundred and forty five, primarily due to the AWS revenue their cloud business, basically saying that that revenue is decelerating.

They're also expecting margin compression and challenging macro conditions. Sound familiar, we've kind of before quite a bit, but look, they're talking their price, talking about a hundred and thirty dollars on the stock and right now it's trading about eighty seven. So they are still bullish, just not as bullish as they used to be. Although it's interesting Creedy. We're seeing one other tech names start to move higher on a

change in an analyst recommendation. Sort of a fundamental story for meta platforms and really being rewarded in the stock market. M E t A is your ticker up about two point one percent in the pre market. Show's trading around one eighteen sixty four This morning. JP Morgan raising the recommendation on the stock once again. JP Morgan moving markets this morning, king the recommendation on the stock to overweight from neutral. Uh. Their reasoning is increased cost discipline and

a more favorable revenue outlook. Now this is really important because one of the issues that Metal Platforms has had and really when punished for from the stock, has been this idea that the metaverse and the investment that's going to take to really not just rebrand, but to really actively invest in that business model. It's going to take a lot, and they don't actually have that kind of money, uh to to really spend, given that they are still

working on essentially their social media business. But what's that the facebooks, the Instagram. Um. Nevertheless, they are saying that, look, they can make this work, and that is a good thing, especially in this environment. So meta, like I said, really getting rewarded. And remember it's in the backdrop of features down one point one percent, so this is an extra boost to see it higher by two. And just quickly, Creedy, what's going on with land Vin? That's like right up

top of the biggest gamers this morning. I'm so glad you said it, and I didn't have to because I google the French pronunciation. I was like, I can't say that like that that I'm just not even but A L A n V is your taker and actually just went public yesterday now this is really important. The shares are up forty six percent, seeing a lot of autility there. Yesterday the best stock bounces as much as fifty two hundred and so really keep an eye on these shares.

MALC Bloomberg Grady on TV Markets correspondent Creaty Good Down Future is moving lower. SMP futures down forty four down futures down three sixty eight. Nanastack futures are lower by ninety points this morning. This is Bloomberg Daybreak. I'm Nathan Hagar along with Karen Moscow. It is six fifty nine on Wall Street. Bloomberg Surveillance with Jonathan Farrell and Elisa Abramowitz 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 three old infrenational, but there these EUSt markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quick Tape three. He's a bloom Burn Business Lash and I'm Camrad Moscow. And futures are following this morning, but they are off the loads of this session. We get to the first word, breaking news dance for today's morning call, and here's Tatiana Darier. Tatiana,

good morning, Good morning, Karen. Like you said, it's still a risk off on Wall Street with down SMP features down one percent, while NAS jack is lower by six tents. The tenor Treasury yield is higher by five basis points to three spot for this morning. Oil is down to and Bitcoin also under pressure, hovering just above seventeen thousand. Else Where, European stocks are lower at this hour, while

Asian stocks were mixed overnight. Back in the US. On the economic front, today, we have SMP Global p M s AT in early trading this morning. Meta is up two percent after an upgrade from JP Morgan siting increased cost discipline and a better revenue outlook, and Adobe is up four after earning speat estimates last night. Also in deal news, private equity firm at An International agreed to

buy max Our Technology for four billion dollars. And wrapping things up here, Delta Airlines and American Air both upgraded. At Goldman Live from the First and Breaking news desk, I'm Tatianataria, Karen, Tatiana, thank you, and here live breaking news of your bloombergy cap squawk on your terminal scue. You a w u K and that's a Bloomberg business flash. Now here's Amy Morrish with Moore on what's going on

around the world. Amy, all right, thank you, Kieren. Ukrainian authorities have reported explosions in at least three cities, saying Russia has launched a major missile attack on energy facilities and to infrastructure. One Ukrainian Air Force spokesman says Russia has now fired more than sixty missiles. The annual number of new Parkinson's disease cases in the US is likely

fifty percent higher than estimated. A new study predicts the number of Americans diagnosed with Parkinson's will reach ninety thousand this year. And sports, the Caps, Ruins and Devils lose, the Rangers win. The World Cup final between Argentina and France is set for Sunday. Global News twenty four hours a day on airand on Bloomberg Quick Take, powered by more than twenty journalists and analysts in more than one hundred twenty countries. On Amy Moore, is this is Bloomberg art? Right? Yeah?

Looking forward to back game? Maybe alright? Thank you at A sixty two on Wall Street, and we turned to news and science and technology Now with a Bloomberg n j I T Stemmer Report, and it's brought to you buy New Jersey Institute of Technology n j a 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 nj I T dot E d U slash fintech Now. Here's just making news and science, technology, engineering,

and math. Fusion power plants are possible on the electricity grid within the next decade, which could supply a limitless amount of carbon free power, according to former U S Energy Secretary Ernest Monies. The comments come after scientists in California managed for the first time to generate more energy from a fusion reaction than they needed to treat grit. The UK has begun talks on a scientific cooperation deal

with Japan it hopes to sign in May. The UK Science and Technology Minister said as the country remains blocked from Horizon, the EU S key research funding program post breaks it and trade groups representing Meta and Alphabet say they asked the Supreme Court to overturn a Texas law that would sharply restrict the editorial discretion of social media companies.

The appeal contends the law violates the First Amendment by forcing social media companies to disseminate what they see as harmful speech and putting platforms at risk of being overrun by spam and bullying. And that's the Bloomberg n j I t STEM report, Nathan. That could be a case to watch for sure. Thank you, Karen, and we're coming up to sixty four on Wall Street. Now it's time

to check what's going on in d See. Some of the top stories in our nation's capital include the Pentagon revving up Ukraine weapons aid as Russian missile barrages continue, the Senate passing a one week spending bill to avert a Saturday shut down. President Biden is saying he will visit Africa to extend US influence on the continent, and a big vote of confidence for the president from Democratic congressional leadership. Let's bring in Bloomberg government reporter Emily Wilkins

for more on some of these stories. Emily, good morning. It seems as though the bombardments from Russia on Ukraine's energy infrastructure aren't letting up, and now we are seeing movement from the Pentagon to really ramp up defenses. Yes, Nathan, I mean remember that Biden has said that the US is going to continue to supply Ukraine with weapons to fight brush up for as long as it takes. There is still a high level of bipartisan support in Washington

to continue supporting Ukraine. We expect to see that continue into the next Congress, even with some shifts and leadership. But part of the equation here is, of course, just simply the supply side of things. We've heard so much about supply chain demands and back blogs, and that is something that still affects the defense industry. And so you're seeing the Pentagon really look at its procurement process and

how it's making its acquisition offers. And they're actually Bloomberg reporting that the Pentagon is finding ways to sort of do some shortcuts to standard contracting procedures just to make sure that the US weapons supply still remains strong, UH, even as they continue to supply Ukraine with the more weapons they need. Clearly, this this fight is continuing on in Ukraine. UH, that there's not a foreseeable end date

at this point, um. And it's just you know, very notable, um that to make sure that both Ukraine and the US are having its defense needs met a the Pentagon is now doing things like having some parts delivered via contracts before the contracts terms and prices are really finalized. And this is just being done in in the light of the fact that this contract, the conflict of Ukraine might last for some time, but but the US wants to continue to be there and be supportive of Ukraine.

And of course, as you know, Emily, defense spending every year is a major part of the negotiations, the debate that goes on in Washington over full year spending for the federal government. And now it looks like officially lawmakers are giving themselves just a little bit more time to iron out their differences here. Yeah, this initial temporary spending bill was going to end today, but we're not going

to have a shutdown. The House and the Senate have both passed a temporary stop gap that will lead us to December twenty three, getting a little coast closed to Christmas. There, the lawmakers say that they have come up with an agreement. We are expecting to learn more details this weekend and see it voted on next week. So there is still potential that we are going to be seen the government fully funded just in time for Christmas Eve? Is there

going to be full funding? I mean, there was some of that debate, particularly on the Republican side, that they want an even longer stop gaps so that they can take control of Congress at least in the House and put forward their own full year spending bill. Is that still part of the debate. There are certainly Republicans who want to see that happen. And let's be clear, in the House, you have Republican leader Kevin McCarthy who has said, you know that he does not support that this this

year long spending bill. He's whipping against it. He's urging his colleagues to vote, know many of them are. But it's a completely different story over in the Senate, where Mitch McConnell has said that he has a deadline of passing this funding package by next Thursday, and so he's basically leaving the door open, and a number of lawmakers, Democrats and Republicans alike, who work very closely on this package say that they want to get it done. I mean,

for certain folks like Richard Shelby, Republican Senator. He's retiring and the you know, appropriations funding the government. It's been a lot of his work in Congress and he wants to leave with a mission complete on his end. Now, last minute here, Emily, of course, we know that President Biden is planning on formally announcing a decision on re election after the holidays. It looks like he's getting even

more support ahead of that decision. Yeah, you had a number of lawmakers come out and say that they will continue to support Biden. He got two very big endorsements in his corner, how Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer. Of course, Pelosi will be stepping down as Speaker next year and stepping down from Democratic leadership, but she's still a very strong voice within the Democratic Party. Is certainly an incredibly prolific fundraiser. That's always important when

it comes to politics. Um and both of them have said recently that they would support Biden, that he did, They think he's done an excellent job, and that they hope that he does run for reelection. It's about thirty seconds left here, Emily is there's still that the same level of support from the younger generation that Pelosi is moving aside to bring forward either. Definitely are some younger lawmakers who have said that they think that Biden has

done a good job and should continue to run. You have other lawmakers who have spoken up and said, you know that they think that it is time for a younger person or Democrats to look at potential other candidates. I think at this point a lot of them have been able to serve decline being on the record just because it's still a hypothetical. At this point, Biden has not yet formally announced for even though he has alluded to multiple times that he will continue to run and

that he plans to campaign for a second term. I'm sure're gonna be a door stopping on Capitol Hill to get some of those younger lawmakers on the record. Thank you, Emily, as always, Bloomberg Government Congressional reporter Emily Wilkins with us from the nation's capital. Read more at Bloomberg dot com, ra on the Bloomberg terminal, Listen to Bloomberg Radio in Washington. Bloomberg Thank you, nine one and one oh five point

seven F M H D two futures moving lower. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Ritake. She's a Bloomburn Business Flash and I'm Karen Moscow. This update is brought to you by the Jewish Communal Fund j c F. Donor advised fund is the smart, tax efficient way to manage your philanthropy. Open a j c F fund now to lock in a two tax deduction, visit j c F n y

dot org. And US stock index futures are falling this morning, with SNP futures down forty three points or one point one percent, Dow futures down one percent or three forty six points, and NASDAC futures down eight tens of a percent or ninety one points. At ten year Treasury down thirteen thirty seconds. He on three point four nine 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. The White House is encouraging Americans to get their updated COVID nineteen vaccine to prevent the spread of the virus. Over the winter. White House COVID nineteen Response Coordinator Dr jah says COVID cases and hospitalizations are

are on the rise 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 in contact information and sports, the Caps, the Bruins, the Devils, I'll lose, Rangers win

the World Cup final between Argentina and Brandt. 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 and more than one hundred twenty countries. I'm anymore as this is Bloomberg, Nathan, Thanks Amy. It's six twenty three on Wall Street. I'm Nathan Hagar. This

is Bloomberg Daybreak. Let's move to commodities now. It's been a tumultuous year for the asset class, marked by surging prices, tied in parts of the war in Ukraine, and set to be another banner year. That's the view from Jeff Curry, head of Commodities Research at Goldman Sachs. He expects commodities in fact, to be the best performing asset class next year. Curry sat down with Bloomberg's Alex Steel and Guy Johnson to explain, let's listen in, Yeah, is a pretty awesomely

bold call. Um, where are we in the cycle that leads you to such bullishness? Old call? Let's remember oils treating with a fifty ball, So is not even a one standard deviation. Let's just you know, I remember we just did twelve bucks to the downside last week and

rebounded six and down another two today. So um, And if I think, you know, when we look at go back to our call for a supercycle back in October, you haveent returns, you know, so far we're headed towards somewhere around twenty three percent returns and in two So this is a continuation of the strong returns that we've been seen over the last several years. I think the bottom line, when we think about what a supercycle really is, it's not this big upward trend in prices that we

have envisioned in our heads. It's a sequence of spikes. And because commodity prices perform and eken make function, they have to rebalance supply demand bring them back in a line. When they get out of line like they did at the end of one and the early part of this year. Well, market to rebalanced right now today. Why because China is being locked down, So demand came back down on top of supply. Prices class back down. But we have not

been investing in supply. Supply is stagnant. So I have to just simply ask what happens when China, the largest commodity consumer in the world, the largest oil importer in the world, begins to rebound significantly in the first part of next year. It's going to tighten all of these markets tremendously and put a lot of upward pressure on prices.

And I think the key point is, you know, you basically have the largest you know, commodity consumer in the world essentially hibernating over the course of the last year, and that's been hiding a lot of this under investment. So really the core point here under investment, we demand today, but we see sequential growth in three it begins to tighten these markets. One last point, inventorres have been exhausted, Jeff,

Let's talk about that China China narrative. We are seeing a huge one eight they are reopening, but what comes with that is likely to be a huge pickup in cases, We're starting to see data being crunched on that and the numbers look pretty bad. How should we be thinking about the China reopening therefore? Isn't going to be similar to the one that we experienced. I stop start, stop, starts, and kind of how does that work? How does that impact the commodity price? Um? I think oil is it

a testament to it. It's gonna be a really rough, bumpy start at the very beginning. But when so oil is doing like this, you know each week big violent moves because you know you're gonna have your fits and start, stops and stops. But when you take markets like oil equities are copper, they're more forward looking. They're looking into March April of next year. As a result, they don't

have that same kind of noise. And that's Jeff Curry, ahead of Commodities Research at Goldman Acts, speaking with Bloomberg's Alex Steel and Guy Johnson. You can catch more of that conversation on Bloomberg dot com and on the Bloomberg terminal this morning. Concern about rising interest rates and the outlook for policy is putting pressure on energy commodities. Looking at NIMEX, crude West Texas Intermediate is down two point one percent or a dollar fifty nine, trading at seventy

four fifty two barrel Brant. The international benchmark is down two point one percent as well, down to dollar seventy four training at seventy nine seven Future is moving lower as well. SMP futures down forty three points down, futures down three fifty two, and Nasdaq futures are lower by ninety two points ten. Your treasury yield three point four nine percent. We'll check your top stories, local headlines, and a full check of markets straight ahead. First look at

your Bloomberg weekend weather forecast. Low pressure developing south of the region responsible for the rainy, breezy weather today, are gonna reach forty five to fifty this afternoon. The rain ends, the showers during the evening actually starts the year later tonight. Loose near thirty five I pressure has headed our way

for the upcoming weekend. We're partly to mostly sending breezy Tomorrow forty sunshine, Sunday highswee thirty five to forty um 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 on to Washington, d C, Bloomberg N one to Boston, Bloomberg one O six one to San Francisco, Bloomberg No. Sixty to the Country, Serrius XM to the one nine team, and around the

globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's coming up on six thirty on Wall Street. Good morning, I'm Nathan Hager and I'm Karen Moscow. We are just about three hours away from the open of US training. It's time for the five things that

you need to notice start your day. Brought to you by I d k R Investment Advisers switched to Interactive Brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at ibk R dot com slash r i A up first. US stock index futures are lower as concerns linger over

Central Bank tightening. Only home builders, healthcare, and oil and gas companies posting gains in yesterday's session, and the energy sector could be poised for more outsized returns in the coming year. That's the view from Goldman Sachs had a commodity research Jeff Curry returns one. You know, so far we're headed towards somewhere around twenty three returns in INO. So this is a continuation of the strong returns that

we've been seen over the last several years. Jeff Curry with Goldman Sachs believes commodity is could be the best performing asset class next year. Last for global stocks, Karen, they're headed for a weekly slide as the Fed, Bank of England and European Central Bank dash hopes for more debbish policy. Megan Green, Global Chief econom Mr Crowle Institute says,

despite the hawkis rhtoric 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 Croll Institute made the comments on Bloomberg's Balance of Power with David Weston. You can catch the show weekdays at

noon Eastern on Bloomberg Radio and Television. Well Attorney to Politics Down Nathan how Speaker Nancy Pelosi, and send a Majority Leader Chuck Schumer are saying President Biden should run for re election in four to support pushes back against some Democrats, urging the party to elevate a younger generation of leaders. Staying in d C, Karen, Congress is working on two bills that would limit or ban the use of TikTok. Florida Senator Marco Rubio's vill would totally ban

the social media app. He's concerned about China's access to users private information. We Attorney to Twitter Now, Nathan Elon Musk is making moves again to regulate content on the platform Twitter, suspending the accounts of several journalists and Bloomberg. Steve Rapp Report joins US Live at 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, term used for exposing private information about someone with the intent to subject them to harassment. Musk tweeted reporters received the seven daytime out, adding some time away from Twitter is good for the soul. Live in New York, I'm Sneeve Rapp report Bloomberg Daybreak. Okay, Steve, thank you. That's the five things you need to know to start your day.

Brought to you by Interactive Brokers S ANDP. Futures are down forty two points. Staff futures down three two. Straight ahead your latest local headlines in the check of sports. This is Bloomberg sixty one on Wall Street. Amy Morris is back with us for what's going on in New York and around the world. Good morning, Amy, Good morning Nathan. Connecticut is reporting its first pediatric death of this flu season. 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 also worried about a COVID surge emerging in New York City. Epidemiologist Eric Figel Dang tells ABC masking is really just part of it. Masking is only one

elements of the total strategy to mitigate against COVID. There's also testing, which the White House has just announced, UM free testing, UM Kids snailed to every address in America. Cases and hospitalizations are on the rise. After Thanksgiving gatherings, the Senate passed to funding bill to keep federal government operating for another week. Senate Majority Leader Chuck Schumer says this gives lawmakers a little more time to pass a year long spending bill before they leave for that holiday

break next week. Hopefully we'll finish the job. Passing a package will keep the government fully funded into next fall. The new deadline is December. A woman from Edison, New Jersey, is among four people charged with providing financial assistance to Islamic State. Seema Raman 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 signature. Now. Parents of the New York native are backing the help Find the Missing Act, which requires information on missing people to be entered in the FBI's internal database and then shared with the Department of Justices public database. Under state law in New York is already required to share information on the missing.

New Jersey and Connecticut are not Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven journalists and analysts in more than one d twenty countries. I'm Amy Moore, as this is Bloomberg, Nathan, Thank you Amy, almost on Wall Street time for the Bloomberg Sports Update, brought to you by Tri State. Out of your thanks, Dave had 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 Reddon's e r A. And each of the past two seasons was under three thirty year old left he come to the Yanks for a six year, one hundred and sixty two million dollar deal. Raddon, once the fourth overall pick of the draft back in two thousand fourteen by the White Sox met this past season with the Giants, he could be facing them in his Yankee debut. That's

for the Yanks open season against Nixon. Rangers of both now won five games in a row. The Knicks bring that streak into a game tonight in Chicago, where they won in overtime just two nights ago. Rangers just beat Toronto three one at the Garden. In three of the five wins in the Street, Rangers allowed only one goal. As for the Devil's, they went a span of over seven weeks, losing on three times. They've now dropped four games in the past week, beaten by Philadelphia two to one.

Even the Devil's outshot the Flyers forty nine four. Rock Purty, the NFL's only undefeated quarterback, last player taking to the draft, He's gone from third string to first In his first ever road game victory at Seattle. That's the nine or seventh win a row in that streak. They're allowing only eleven points of game. San Francisco clinches the NFC West. The Seahawks slump continues. That helps the Giants and their

quest to make the playoffs. There's an NFL tripleheader. Tomorrow Sunday the Jets home for Red Hot Detroit, and then Sunday night the Giants a big game at Washington's Dashower. Bloomberg Sports Nathan bry to Jui out he don't let someone else drive off in the Auti bottel. You've always wanted to visit your local price, Get outi Dealer to get behind the wheel of yours today, or visit autie

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 Hotas kN K and X in Los Angeles. We're talking about the impact of California slashing incentives for homeowners and businesses to install rooftop solar Um horney Donahowan Ker l D and Dallas mortgage rates dropping for a fifth straight week to six point three one percent. I'm Gina

Servetti and for w b b M in Chicago. I'm talking about some McDonald's investors saying the company did not get nearly enough money from its former CEO when he agreed to return money to settle claims he was sexually involved with subordinates. I'm Caroline Head Film bloomke d A B Radium in London. We've been reporting on Gloomy UK confidence figures, the worst one in fifty years as inflation fights. I'm Ed Corey on w T A M in Cleveland. I'm reporting a former Macy store in Sheffield Township is

becoming a facility for acorn stair loops. And those are some of the stories. Are hundred Bomberg journalists and analysts are working on this morning around the world. It's coming up to six 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 acrimony 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. Neither side gets everything at wants. That's the sign of a good compromise,

and Congress should get it done. This editorial was written by the Bloomberg editor Oral 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 Man. You can hear Bloomberg opinion editorials every weekday at this time. Terminal customers can read more at O P I n go. Looking ahead to the

market open, it's looking like losses. SMP futures down forty three points, Dow futures are lower by three at fifty five, and NASTACK futures on the decline by eighty three points. Now the ten year Treasury is down thirteen thirty seconds yield three point four nine percent yield on the two year four point to four percent six thirty eight on

Wall Street. Up Next time Daybreak, we head to the nation's capital, efforts to race weapons to Ukraine, and a big vote of confidence for President Biden from Congressional leadership. Bloomberg Government's Emily Wilkins joins us next live from the Bloomberg Interactive Burger Studios. This is Bloomberg day Break for a Friday, December sixty two. Coming up, the Shower, Uncertainty in markets, over fed, tightening concerns. Democratic leaders back up.

Biden run in, a crackdown on TikTok, gains steam in Congress, and Twitter suspends some accounts covering elon Musk. I'm Any Morris. New York City is cracking down on unlicensed cannabis products, while the state is prohibiting pet stores from selling cats and DOFs. I'm John Stan Shower Sports. The Yankees have signed free agent picture Carlos Raddon, the Rangers, one of

the Devil's Lost, the Forts one in Seattle. That's all s train ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg 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 and futures this morning are following. We checked the markets all

day long here on Bloomberg Radio. S and P futures are down one at a third percent, down fifty three points down, features down what at a quarter percent or four hundred twenty points and NASDACK futures down one percent or a hundred eighteen points. The decks in Germany's down one point two percent, Tenure treasury down thirteen and thirty seconds held three point four nine percent, and they yield on the two year four point to five percent. Nine

x screwed oil is down too and a half percent. Nathan, Yeah. The selling Karen comes on concern over Central bank tightening. The SNP slid two and a half percent yesterday. Only home builders, healthcare, and oil and gas companies posted at gains, and the commodity space could be set up for more gains in the new year. That's the view of Goldman Sachs,

Head of Commodity Research Jeff Curry. What happens when China, the largest commodity consumer in the world, the largest oil imporder in the world, begins to rebound significantly in the first part of next year. It's going to tighten all of these markets tremendously and put a lot of upward pressure on prices. Jeff Curry with Goldman Sachs thinks commodities

will be the best performing asset class in well global stocks. Meantime, nathan are headed for a weekly slide as the Fed, Bank of England and European Central Bank dash hopes for more devish policy. Megan Green, Global chief economist at Crael 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 inflation will come down faster, but also expecting a recession at some point in the middle of the year and questioning how strong the Fed's resolve really is to continue keeping policy type. Megan Grain with Cruel Institute made the comments on Bloomberg's Balance of Power with David weston Catch the Show Weekdays, a new and Eastern on Bloomberg Radio and Television and Asia Overnight Careen. Market sentiment was risk off as well

in reaction to the week's central bank moves. Bloomberg Daybreak Asia anchor Brian Curtis has the details from Hong Kong. Asian and stocks traded mixed to lower as investors wrestled with Hawckey Central Banks. Shares in Hong Kong and mainland 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, Bloomberg Radio, Brian Thanks. Turning to politics now, top Democrats and Congress are backing Joe Biden in twenty four how Speaker Nancy Pelosi and Said a Majority leader Chunk 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 in DC, Karen, Congress appears to be getting impatient with security concerns over China's influence on TikTok. Bloomberg said, Baxter has 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. Housepeaker 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, al right, and thanks. Turning to Twitter now, Elon Musk is making moves again to regulate content on the platform. Twitter is an now suspending the accounts of several journalists and Bloomberg. Steve Rappaport joins US Live. But that story Steve, good morning, Good morning, Karen and Nathan. People in the news business made the news when Twitter blocked the counts of reporters from The New York Times, The Washington Post

and 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. Okay, Steve, thanks. We have more news. When from Elon Musk's other company, Tesla, A day after he sold more shares, Tesla announced it's ramping up SUV production at its Austin, Texas factory. We get 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 and 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 Pellett Bloomberg Day Break Right, Charlie Thanks and 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. That's according to Reuter's. Local media reports say the bail application is said to be heard in mid January. SMP futures are down forty nine

points this morning. Down futures down three D eight seven, NASDAG futures down one eight and the euro one point oh six to seven against the dollar. Bitcoin this morning is down to in a quarter percent as seventeen thousand dollars. Straight ahead, we have your latest local headlines, plus a check of sports, and this is Bloomberg. Thanks Caring at

six oh seven on Wall Street. Rain continuing forty four degrees in Central Park are only going up to near fifty today and we're not going to see this rain go away until later on this evening as we get down to the mid thirties. Amy Morris has more on what's going on in New York and around the world. Amy, Good morning, Good morning, Nathan. New York City is 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 following Thanksgiving gatherings. Epidemiologist Eric figel Ding says 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 waste water surging. Also in New York City. Dr figel Ding tells ABC that you should wear a mask on public transit or whenever you're out in public. The Senate has passed a one week government funding bill intended to avert a Saturday shutdown. Senate Majority Leader Chuck Schumer says the extension will let lawmakers

finished negotiations for next year's spending 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 dollars of fiscal three spending. The state of New York is banning pet stores from selling dogs, cats, and rabbits. Pet stores fought against this bill. They argue it would effectively

put them out of business. The New York Times reports the aim is to stop the so called puppy mill pipeline. The band takes effect at the end of as the U s Africa Leader Summit comes to a closed, Secretary of State Day blink and reaffirmed the US commitment to providing aid for African nations impacted by famine and conflict.

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 war in 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 improved nutrition.

Global News twenty four hours a day on Aaron Don Bloomberg Quicktake, powered by more than twenties seven hundred journalists and analysts in more than one twenty countries. I'm Amy Morris. This is Bloomberg, Nathan. Thanks Amy six O nine on Wall Street time for the Bloomberg Sports updap Ronto by tries stayed out. He here's John stash Our. All right, thanks 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 initiative. Carlos Raddon, thirty year old left. He gets a six year deal for a hundred and sixty two million. He's been an All Star twice the last two seasons, first with the White Sox and then this passion with the Giants. His e r A was under three. Next on the Yankee shopping list could be an outfielder. As the Garden Rangers scored once in each period, the two by Jimmy VC.

They made it five wins in a row, three one over Toronto and New York. The Devil's got an early go from Jack used his sixteens, but Philadelphia got forty eight saves from Carter Hart. The Flyers won two to one, and that's the Devil's fourth loss in a row. The Knicks, who won Wednesday in Chicago when overtime play there again tonight. Nick won their last five. The Nets are winners of four straight, eight of nine, and they're in Toronto. Steph

Curry won't play for Golden State in Philadelphia. He's going to miss a few weeks with an injured shoulder, and the defending NBA champs are under five hundred with Curry

now they're gonna be without him. Forty Niners. Meanwhile, stay red hot their seventh win in a row in Seattle, comes laugh throws down the sideline wide off at George Kettle Turty twenty cuts it side head, cuts it side again, cuts down, said fred Our second of two touchdown hook ups between the rookie brock Park Purdy, who continues to win with George kill the Niners. They've clinched the NFC West Seahawks mean, well, I've lost four out of last five.

That helps the Giants. They're in contention with Seattle for the last two NFC playoff spots. Also battling this Washington of the Giants visit on Sunday night. There are three NFL games tomorrow. Johns actually were Bloomberg Sports, Nathan, I take it there was a touchdown and saying yes, that's call. Yeah, indeed, thank you, John, and the Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off

in the Audi model. You've always wanted to visit your local try state Audie Dealer to get behind the wheel of yours today, or visit Audie Offers dot com for more information. Risk gussets are getting tackled this morning. SMP futures are down forty four point stout futures down three un at sixty seven NASTAC futures on the decline by

ninety three points. Good morning, Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on sirius a SIMP, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak six twelve on Wall Street. Good morning on, Nathan Hagar, Let's get you right back to the market action this morning, definite risk off. We're joined now by Michael Houston, the chief market analyst

at CMC Markets. Michael, it's great to speak with you, and it feels as though this market is coming to grips with the idea that when central banks say that rates are going to stay higher for longer they meet it. Is that the right read? Well, I think it's certainly the read that Christine Lagarde would like the markets to take away from what the ECB intends to do next year. I'm not so sure they believe Chair Pal so much. And for me, this is really a data story. Nathan Um.

I think the ECB comes across as more credible simply because there is no clear delineation between the data that's coming out of the Eurozone and the Central Bank's outlook. When it comes to rates, whereas in the US the FED is much more ahead of the curve. CPI has been coming down consistently since June, so the markets can focus on a data point and extrapolate from that whether

or not they think power is being serious. They can't really do that with Christine Legarde because there's no clear evidence that inflation in the Eurozone has peaked, even though I think it probably has. So do you think then that Chairman Powell, with his rhetoric, is trying to talk this market down and that the summary of economic projections that the FED has put forward is more of a rhetorical device than an actual the thought of where the FED thinks that the economy is actually going to go?

Is that what you're saying? Yeah, No, that is exactly what I'm saying. I think he's finding it very difficult to communicate to the markets the FED is serious about tackling inflation, because the market is looking at the numbers and thinking the FED is going to pivot sometime next year. I don't think the FED are going to pivot next year, and simply on the basis of the fact that if you look at the inflation numbers, they are trending lower.

I think the market is slowly coming to a realization that it's going to be much more difficult to do that in Europe and the UK. And I think in a way Christine Legard has actually done power a little bit of a favor because ultimately, I think when you actually look at the data in the euro Area, it's much harder to make the argument that inflation has topped out. It is easier to make the argument that inflation has

topped out in the US. It's really about how quickly it comes down and how high rights are, like, how how high rates are likely to stay. And in the ECB forecasts, they don't project that inflation is going to fall back to two much before five. I mean, that is quite sobering. So what does that mean for risk assets heading into three? Does this make the US more

investable than Europe? What's your view on the no. I mean, I think in terms of the overall trends, it's going to make it much more difficult for US markets to break out of the down trend that they've been in for quite some time. Also, yesterday's US economic data or

some great the US is heading for a slowdown. The bigger question is whether or not the FED can deliver a soft landing, and I'm not sure we're really going to know that until such times as we get the first set of earnings that come out from the US in the middle of January. I think JP Morgan on January could give us a fairly decent insight into the

health of the U s consumer. Those week retail sales numbers yesterday weren't a good look weak industrial production that those weak fairly Fed surveys EMPO manufacturing service also are pointing to a significant softening in the US economy. If you then extrapolate that across to US stocks that's export markets, namely Europe and China, then you've got to prepare yourself for the potential for some earnings downgrades, which markets aren't

necessarily pricing quite yet. So in our last minute here, Michael, what sectors are you looking for to make their way through a potential slow down or even as many market analysts see it as the potentiality for a recession next year. Well, I'm looking to basically rotate back into cash. I think it's going to be a very difficult first quarter first half of next year, and I think you could potentially see a bit of a rebound in the second half.

So for me, I'm very much buy on the dips, put money into cash simply because yields now are much more attractive. If you look at the US tenure, you know that's still around about three and a half a cent, And if you actually look at what yields are doing now, particularly in the US, the fairly stable compared to what's happening in Europe. So for me, I'm looking looking to buy dips more than anything else and sitting on cash for the first two to three months of next year.

A defensive view this morning for Michael Houston, Chief Market Analysts CMC Mike Markets, Michael, always great to get your thoughts. Thanks for this. SMP futures right now down forty three point, Staff futures down three D fifty two and Nastack futures

are lower by ninety points. Dacks in Germany down nine tenths percent, the cat in Paris is lower by one of the third percent ten Your treasuries down twelve thirty seconds, you'll three point for nine percent, Nimex crew down two point three percent at seventy thirty five of barrel, the euro one point zero six three three against the dollar, Bitcoin down two and a quarter percent around seventeen thousand. This is Bloomberg