Bloomberg Daybreak: December 21, 2022 - Hour 1 (Radio)

in an apparent subway accident. Plus New York Mayor Adams says, spread the love, not the virus during the holidays. I'm Michael blar More, I'm John Stashward, sports donning baseball news, Carlos Grea changed his mind, be sunning with the Mets,

the next one the Rangers, and Devil's Law. That's all s traded ahead on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine team and around the world Old on Bloomberg Radio dot Com and via The Bloomberg Business.

Good morning. I'm Nathan Hagar and I'm Karen Moscow. US DOT index futures are on the rise this morning, and we checked the markets all day long here on Bloomberg. S and P futures are of twenty five points of seven tens of uppercent. Death Future is up about eight tens of upper cent or two hundred fifty eight points, and Azdak future is up sixtensive upper cent or seventy two points ten your treasury, that'll change, you'll three point six eight percent and they yield on the two year

four point to two percent. And I'm ex screwed. Oil is up one percent this morning. Nathan, all right, Karen, thank you. We'll get back to the markets in a moment, but we begin this morning with a couple of major stories in politics. First, Ukrainian President Vladimir Zelinski is leaving Ukraine for the first time since Russia's invasion. He will address Congress in person in the nation's capital. Bloomberg Government reporter Jack Fitzpatrick says it is a big moment in

the debate over a to the war torn country. It's the big deal. There have been some questions about really where House Republicans come down in the firmness of their support for Ukraine. To have a joint address to Congress and in person addressed especially, would be a very significant moment at a pivotal time, because these kinds of agreements are going to be a bit more difficult when it's a Republican House and a Democratic Senate, So any sort of show of unity with them there would be a

very significant thing. Bloomberg Governments Shack Fitzpatrick reports President Biden will announce two billion dollars in additional assistance to Ukraine, plus a delivery of Patriot missile batteries to Ukraine. Meantime, Nathan and Donald Trump's tax returns are back in focus. A House committee is voted to officially release the former president's tax information to the public. Bloomberg's Amy Morris has

a details from our studios in Washington. The Houseways and Means Committee signed off on a motion to release Trump's tax returns to the House of Representatives. Chairman Richard Neil says personal information will be redacted. This was not about being punitive, it was not about being malicious, and there

were no leaks from the committee. The analysis found Trump was able to use questionable deductions and aggressive tax strategies to minimize his tax bills, and that the I r S did not audit Trump for two years while he was in office, despite a program that makes the auditing of sitting president's mandatory. Republicans say releasing the information sets a dangerous precedent in Washington. I'm anymore, as Bloomberg daybreak,

All right, Amy, thank you. Now, let's turn to Elon Musk and the latest in his sanga as head of Twitter. Musk now says he will step down as CEL once a replacement is found, Bloomberg said, backs to reports, It comes as the Federal Trade Commission deepens its investigation into Twitter's use of user data. The Federal Trade Commission has interviewed two former senior executives of Twitter already regarding privacy and data security. Now practices is the issue, and whether

it's complying with a twenty eleven consent order. Since Elon Musk has taken over, the FDC has shown it as not afraid to levy ft defines. It did find Facebook a record five billion dollars over the Cambridge Analytica data scandal. This can't be welcome news from Musk, who has fired many of his oversight team and attorneys. Musk, by the way, says he will oversee the software and servers teams in San Francisco. I'm at Baxter Bloomberg daybreak. All right, and

thank you. As a turmoil at Twitter continues, Tesla shares are declining and ARC Investment CEO Cathy Wood is scooping them up. Exchange traded funds backed by ARC bought slightly more than four d forty five thousand shares of the company since early October. This is the first quarter and seven that ARC has been a net buyer of Tesla. Right now, shares are higher in early trading. They're up

about two and a quarter percent. All right, Let's turn from Twitter down to Crypto Karen and the latest on Sam Bankman Freed, the ft X co founder, could be making his way state signed from the Bahamas as soon as today. Bloomberg Steve Rappaport joins US Live with that story. Good morning, Good morning, Nathan, and Karen. Spf is halfway through the process of returning to the US, having signed

his surrender documents. According of the Island's acting Commissioner of Corrections. Today, Bankman Freed will sign a waiver of extradition before FBI agents are expected to take him away on a private flight. Bankman Freed initially vowed to fight extradition to the US to face fraud, money laundering, and other charges related to the collapse of his firm. His change of heart tied in part to the possibility of getting released on bail.

Here live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you all. Taking a look in markets now. European stocks are advancing alongside US stock index futures. Yesterday saw the SNP five hundred clothes higher for the first time in four sessions. Equities have been on a recent skid due to concerns over central bank tightening. Ye. Speaking of central banks, Karen, this week's move from the

Bank of Japan continues to reverberate across markets. The yen is steady this morning, after yesterday's strong move, which saw the currency strengthened the most since Taking a look at the end. Right now, it's trading at one thirty one point six nine against the dollar. Bloomberg Opinion Columns. Muhammad al Arian says the bo j's move provides some stability, but also area's risk. This is the step towards normalization. The good news for them is I think that can

control the process. That's actually good news for global markets because it doesn't force selling by Japanese institutions. However, over time even this approach becomes unsustainable. Bloomberg Opinion columnist Muhammadalarian expects a slow exit from what he calls the BOJS unsustainable policy regime. Well, let's turn to China now. Nathan and has continued pivot away from COVID zero policy. Chinese workers of mild COVID are now being told to go

back to work in some cities. This is Chinese officials seek to limit the economic impact of an explosion in cases Beijing. Shift from COVID zero has been accompanied by a wave of infections in major urban centers across the country. Futures this morning are on the rise. SMP futures up

twenty three points. That's up about six tenths of uppercent, DAL futures up two thirty nine or seven tenths of uppercent and NASDACK futures up about six tenths of uppercent Your latest local headlines straight ahead this is Bloomberg experien its degrees chili this morning in Central Park. Gonna be sunny and cool today with higher forty, but wait ray

for some heavy rain to end the week. Now here's Michael bar with a look at some of the other stories making news in New York and around the world. Good morning, Michael, Good morning Nathan. N y p D officials are investigating an apparent deadly accident that took place in the subway in Manhattan. Two people were run over by several l trains yesterday. The victims were a forty four year old man and a sixty three year old woman.

It left several horror five commuters in their wake. This woman saw the bodies at the sixth Avenue stop at the time. I told some guy that was waiting for the chain across to me, I'll make this too. Their bodies on there. He was like, you're kidding, and I said, no, Look, you're stepping in blood. The officials are still investigating how the bodies ended up on the tracks, but they say they don't believe the victims were connected and their deaths

don't appear to be a crime. A last minute plead from New York City Mayor Eric Adams as holiday travelers continue to arrive, even as flue rs V and COVID nineteen cases continued to rise nationwide. Mayor Adams encourage New Yorkers to remain vigilant of the risks of these respiratory infections now under winter. How do we enjoy the holidays and spread love without spread into virus and we could have that combination. Mayor Adams encourages New Yorkers to be

sure they test before gatherings and consider masking up. Winter storm is hitting the nation at the height of the holiday travel. Bloomberg meteorologist Rob Carolin as the latest Michael some of the coldest weather we've seen in forty years now starting to work its way into the northern Plain States. Temperatures from northern Montana into North Dakota are well below zero this morning. That air is going to be headed southward.

It's gonna move down towards the Gulf of Mexico, affect Texas and much of the century United States by the end of the week, and will also affect the western Gulf Coast out ahead of this cold there. Over the next thirty six hours, we'll see a big storm developed it will go up through the central Great Lakes. That's going to produce a very significant snowstorm across parts of the central United States, with blizzard conditions possible around the

Chicago Milwaukee areas, also across western Michigan. It's gonna cause quite a bit of rain and wind out ahead of the storm. Will see that effect portions of the mid Atlantic States in the Northeast as we head through Friday, So travel will be very difficult in the Northeast and Midwest on Friday. Michael, Yes, thanks rob Global News twenty four hours a day on air and Bloomberg Quick Take powered about more than journalists antialists more than a d

twenty countries. Michael bar this is Bloomberg. Nathan. All right, Michael, thank you. It's time for the Bloomberg Sports Up Day, brought to you by try stayed out EA. Good morning, John Stash, Good morning, Nathan. The amazing Mets. Just when you thought they're freege and spending spring was over, came the stunning news earlier this morning that the Mets are now add in Carlos Carea. He had agreed last week to a thirteen year deal with the Giant. Press conference

was supposed to take place yesterday got postponed. Reportedly difference of opinion about the results of Korea is physical. The Mets swooped in got Korea for twelve years, three hundred and fifteen million. He's always been a short stop. The plan is to move them. The third base. Nets have now guaranteed eight hundred million dollars just in free agents spending. They have to pay at tax of three hundred and

eighty million justin Verlanders getting forty three million. He was at City Field to talk about coming to New York. Lived in New York for an off season. Um. I love the vibe here, I love the city, I love the people, and to have the opportunity to to come pitch in the city, um is something that I think I've I've always wanted the chance to do. The Aar and Judge press conferences today and the Bronx will be interesting to see if the Yankees announced the Judge will

become the team captain. At the Garden blowout win for the Knicks over injury Riddle, Golden Stained one thirty two, the ninety four the Knicks and one eight in a row the Hills Toronto Tonight, the Warriors played tonight in Brooklyn. The Rangers were going for an eighth straight win and Chris Cryder scored twenty two second van but Pittsburgh one three to two. The Devil's, who earlier this season had a thirteen game one is Dreeca now lost their last

six meeting by Carolina four to one. Seaton Hall lost the Big East game at Xavier seventy three to seventy. Yukon be Georgetown the Hoskins, and oh the Jets does Jacksonville tomorrow night and Zack Wilson will again be the

Jets starting quarterback. John Stashward, Bloomberg Sports, Nathan all Right, John, thank you, and Bloomberg Sports was brought to you by Audie Don't let someone else drive off and the Audi Model You've always wanted to visit your local Tri state Audie dealer to get behind the wheel of yours today, or visit Autie Offers dot com for more information. Just ahead, we'll get the latest on President Zelenski's trip to the

nation's capital. First, we look at markets and to see futures moving higher, with SMP futures up twenty three points, staff futures up two hundred forty one Nastack futures are highed by sixty four points in the tenure treasury is a little changed right now yield on the benchmark ten year note three point six eight percent. Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius Examp, the Bloomberg Business app,

and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Let's get back to our top story this morning. What could be a dramatic few hours in the nation's capital as President Zelensky goes to Washington. Bloomberg's Bruce Einhorn joins us now with more on this. Bruce, good morning. What a statement this is that the first trip that President Zelensky is going to make outside his country since the war began is to the United States.

It says a lot about the level of support this country has given to Ukraine in its war against Russia. Yes, and it also shows them the important to that President's landscape places on making sure that that support continues going forward. The big issue that Ukraine faces in Washington is the upcoming takeover as the House represented by Republicans UM. Some Republicans have expressed skepticism about the level of support that

the US has given to Ukraine. UM. People like Marjorie Taylor Green have criticized the US and then bide administration for its support from Ukraine. UM. Quite a lot of Republicans, including the Senate Senate Leader Mitch McConnell, the leader of Republicans of the Senate UM, have expressed want support from Ukraine. That said, there is you know, there's reason for for Presidents Olinska and others to be concerned UM that UM,

they need to shore up their support in Washington. And so this speech in front of a joint session of Congress, that's give the Ukrainian president opportunity to to address some of those some of those districts. And we are expecting as well that the President Biden, during a joint news conference at the i Had House with the President of Ukraine, is going to announce that he has indeed decided to deliver a Patriot UH anti air missile systems to Ukraine

as well. Tell us more about the significance of patriots. This is something that President Zelinski has been really asking strongly for from the United States or some time. Yes, with good reason because of course Ukraine and being hit almost on a daily basis by drones, missiles coming from Russia, attacking civilian targets, attract attacking the energy, good h other infrastructure. So having the Patriot or Defense system would provide Ukraine

with a valuable tool to to fight that. Um. The Patriots would be part of a new assistance package that would be worth nearly two billion dollars that President Biden is going to be announcing today. Uh. This also comes at a time when Congress is pois approved billion dollars in new aid for Ukraine. This is part of the big homicist spending bill that Congress is likely to pass within the next few days. So um uh many many uh.

The signs of support for Ukraine at the moment, But again um, the Ukrainians do have to be concerned about just maintaining that. Um with the change in control of the House in the next few weeks. And as if the arrival of the Ukrainian president weren't enough, we have another major development coming out of Washington, something that former President Trump has been fighting for literally years. His tax

returns are about to be made public. Yeah. So um soon after the Democrats one control of Congress back in two thousand and nineteen. The housewives and needs to be uh in the to the procedure to get the former president's tax returns. Uh. Trump um has litigated that um newly ran out the block here um but ultimately uh lost on the committee does have the returns. The committee

voted yesterday on party line basis to release the returns. Uh. It'll probably still be a few days maybe people we actually um see those released because they do have to redact some things um. Uh some personal information for instanceance truly members that sort of thing. Um. However, we do have from Richard Neal, the chairman of the committee, the report about the audit that took place of the President Trump's returns while he was while his president so U

from two thousand and seventeen onwards. Um. And there was pretty sharp criticism from from Congressman Meal about how that how that transpired. According to the chairman of the Way the Needs Commute, there was almost nothing done in terms of the audit of President Trump's returned during those years, which is a contrary to standard policy, which is that the i RS does an audit of the president and

the Vice president UM. According to Meil, that didn't really happen until he made he sent a letter to to the RS in two thousand and nineteen uh and said that he needed to see this information. UM. According to Kneel, this what the shows is that there's there's a need for a bill that would require i RS to audit. Yeah, the changes to the i R s expected to come out of this fight that the president has been mounting for some time. Bruce Einhorn with us this morning for

the latest from the nation's capital. Thanks for this first. This is Bloomberg Markets headlines and breaking new ones twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at Land at Bloomberg Quick Take. This is a Bloomberg Business Flash and I'm Karen Moscow and European stocks are rising this morning alongside US stock index. Futures at the SNP five hundred close higher for the first time

in four sessions. And we check the markets all day long year on Bloomberg SMP futures up twenty four points down, futures up two hundred fifty three. That's up almost eight tenths of uppercent and Nasdack future is up sixty five or six tenths of uppercent. The decks in Germany's up eight tenths of upper sent the tenure treasury little change.

You'll three point six eight percent yield on the two year four point to two percent nine Max screwed oil up win and a quarter percent of ninety seven cents at seventy seven dollars twenty cents of barrel co Max School little change. In eighteen twenty four thirty announced the euro one point six two two against the dollar, British pound one point two one three one, the yen one

point six four. Bitcoin is little changed at about sixteen thousand, eight hundred dollars, and we're watching shares of Nike up almost this morning. It posted another quarter of inventory build up a but quarterly sales exceeded Wall Street estimates and as a Bloomberg business flash now here Smuckel bar with Moore on what's going on around the world. Unchal, Good morning,

Good morning, Karen. The House Ways A Means Committee voted to release former President Trump's tax information to the public. So far, we have learned that dozens of audit triggers littered Trump's tax returns. According to Congress's top nonpartisan tax lawyers, there are questionable private jet expenses and large, unsubstantiated charitable deductions,

yet none of them have been seriously owned it. Ukrainian President voladimir's Lensky is making his way to Washington for a summit with President Joe Biden and to address Congress Today. In the NBA, the Next beat the Warriors one thirty two ninety four, the Wizards one. In the NHL, the Rangers and Devils lost. Global News twenty We're hours a day on here or and on Bloomberg Quick take powered by more than journalists and analysts more than twenty countries.

Micha La Barre and this is Bloomberg. All right, Michael, thank you. This five twenty three on Wall Street. I'm Nathan Hagar and this is Bloomberg day Break. Now let's get back to elon Musk and Twitter that Saga isn't going away, but now after a rocky few weeks as CEO, looks like Musk is indeed going to do as promised in hand over the reins at the social network, but he won't be going too far. Let's bring in Alex Webb, who has been following the Twitter Musk saga very closely.

Are Bloomberg Quick Take correspondent back with us this morning and Alex I love the headline on this piece on the terminal from our colleague Kurt Wagner. Elon Musk is finally running out of gas at Twitter. What are your thoughts on how things have gone over the last seven weeks? Gosh, yeah, he's been a It's been a month or two, hasn't it. Yeah, the he's stepping down the CEO. Is he leaving the company? He's going to be running the engineering and server teams.

If you look at what's happened to headcount at Twitter, they had seven half thousand employees when he joined. That's dropped by about through firings and departures by about five thousand. What is left will presumably mostly server and engineering teams. So he's in a situation where he's going to sit down the CEO, but he's still going to be running a large trunk of the company. He's still going to be the controlling shareholder breathing down the neck of whoever

is the actual CEO. UM I suspect this is more about how the company is presented outwardly. Not least it's advertisers. Those are its customers. Those are the people that it's been losing. Um. As our colleagues reported last week, they put us in the room with some of the meetings that Elon Musk has had with advertisers. Those meetings don't

always seem to have gone particularly well. Um, he needs somebody who was experienced sitting in front of brands, in front of ad agencies and going, here's why it's worth advertis is gonnaur platform. You don't need to worry about these risks. Please give us your money. Um. I suspect that is the sort of person who's going to be looking to hire while he gets on behind the scenes, to the extent that Elon must never be t really behind the scenes trying to fix um some of the

problems he sees with the company. Well, we've had a couple of names bandied about in the reporting and walk us through a couple of potential CEOs. Whether those are the kind of people that Elon Musk might have in mind to address some of those issues that you just outlined. So the you know, the name that seemingly a lot of people would like is Cheryl Sandberg. You know, she built much of the advertising model at Google. She built the advertising model at Facebook. Now meta, would she be

willing to work for Ellen? Well, you know, she has worked for a founder CEO in the shape of Ellen, in the shape of Mark Zuckerberg, who has, you know, clearly his own management style. There are other names in there as well that like to Jay, I'm Jason Calicanus and David Sachs, who have perceived as being very close to Musque. They had come in to help run the company when he first took over. They you know, Jason Calicanus certainly has put his hand up in the air

and saying he would like the job. You know, there are I think there's still plenty people out there who would like to do it. Is there anybody who could do a better job than him who would like to do it, Well, that's a slightly different question, but I don't think he will be short of candidates. Yeah, and

we're gonna be watching it. It's gonna be probably quite some time before a new CEO finally gets settled in alex Web Bloomberg Quick Take correspondent will be checking back with you, I'm sure as we continue watching all the developments over at Twitter. Right now, SMP futures are up twenty four points, down futures up two hundred fifty two, Nastaic futures up sixty four points, and Tesla shares up

two point six percent. On the Musque News will get your morning stop stories local headlines in the fuller check of markets. First, Today's Bloomberg weather forecast. Some high cloudy has headed our way today and end up being partly sunny with temperatures near forty this afternoon. Will cloud up overnight. Those thirty to thirty five large storm developing in the central part of the country will lead to rain developing

across the Tri state area. Tomorrow afternoon. It'll be breezy fifty to fifty five, rainey, windy near fifty tomorrow night. Rain ends Friday fifty five. Much colder this weekend. 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 eleving Freedom to Washington, d C, Bloomberg nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM to a one nine team, and around the globe, the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak and it's coming up to five thirty on Wall Street. Good morning. I'm Karen Moscow, I'm Nathan Hager.

Bloomberg Daybreak, brought to you by Innovation Refunds, is your daily reminder to apply for a payroll tax refund if you're smaller medium sized business was impacted by COVID nineteen. Innovation Refunds clients already claimed over two billion dollars in payroll tax refunds. Get started at get refunds dot com and were 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 shour. We begin

with a couple of major stories and politics up. First, Ukrainian President Vladimir Zelenski is leaving Ukraine for the first time since Russia's invasion to address Congress in person in the nation's capital. Bloomberg Government reporter Jack Fitzpatrick says it's a big moment in the debate over aid to the country. There have been some questions about really where House Republicans come down in the firmness of their support for Ukraine.

To have a joint address to Congress and in person addressed especially, would be a very significant moment at a pivotal time, because these kinds of agreements are going to be a bit more difficult when it's a Republican House

and a Democratic Senate. Bloomberg, Jack Fitzpatrick or force at President Biden plans to announce two billion dollars in assistance to Ukraine, and meantime, Karen a. House committees voted to officially release former President Donald Trump's tax information to the public. The actual returns will come out in a few days. Analysis so far shows the former president used questionable deductions

and aggressive tax strategies to minimize his bills. And now to Elon Musk, Nathan, the head of Twitter, says he will step down as CEO when a replacement is found. This comes as the FTC deepens its investigation into Twitter's use of US your data. The extradition of Sam Bankman freed from the Bahamas, is picking up steam. Karen, the FTX co founder, could be making his way stateside today Bloomberg. Steve Rappaport joins US Live Steve, good morning, Good morning,

Karen and Nathan. FBI agents are expected to escort Sam Bankman, freed on a private flight back to the US after he signs a waiver of extradition in court. SPF has been held at the notorious Fox Hill Prison on the outskirts of Nasau Sin's that judge denied his request for bail. The possibility of making bail here reportedly played a role in his decision to no longer contest extradition to face numerous charges related to the collapse of his crypto firm.

Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Al Right, Steve, Thanks, We're taking a look at markets now. European stocks are advancing alongside US stock index futures. Yesterday saw the SNP five hundred clothes higher for the first time in four sessions, and this week's move from the Bank of Japan continues to reverbrate. The yen is studying against the dollar, trading at one thirty one point six eight. Bloomberg Opinion columnist Muhammad al Arian has more on the b O j

surprise decision. There's no doubt in my mind that this is the spectables normalization, but they're trying to make it a weedly long process as unexciting as possible so that it doesn't force selling font bie Japanese institutions. That's the big risk. Bloomberg Opinion columnist Muhammad al Arian says the move provides some stability, but does carry risk. At SMP futures right now, we're up twenty four points, DAL futures up. Tune in fifty seven, Nastact futures higher by sixty four points.

Straight ahead, your latest local headlines and the check of sports. This is Bloomberg on Wall Street. We bring in Michael Barr for a look at what's going on in New York and around the world. Michael Nathan, thank you very much. New York City police are investigating an apparent accident that

happened in the subway in Manhattan. The victims of forty four year old man and the sixty three year old woman had been hit by an L train shortly but the conductors of two subsequent trains did not notice the victims and also struck them on the tracks. This woman, who was at the sixth Avenue stop. At the time, New Yorkers were tough. We don't care a lot about but it's like sometimes you know, it takes a little time just to like play attention to something. Officials don't

believe the victims were connected. A last minute plea from New York City Mayor Eric Adams as holiday travelers continued to arrive, even as flu, rs V and COVID cases continued to rise nationwide. Mayor Adams encouraged New Yorkers to remain vigilant of the risks of these respiratory infections now into winder this year, particularly around the flu from the from the briefing we receive, the numbers are higher than

this traditionally is around this year. When you combine it with the other elements that we're facing, the other rs VS, COVID nineteen and just make it extremely challenging for New York to Mayor Adams encouraged New Yorkers to mask up. A large swath of the US is bracing for a dangerous mix of cold, howling winds, and blizzard conditions. It's already hammering the Northwest and is expected to disrupt plans

for millions of holiday travelers. The Taliban has renegged on a promise they made when they took over Afghanistan in August of last year. Their Ministry of Higher Education now says women will no longer be allowed to attend public or private university. State Department spokesperson ned Price. The Taliban made promises to the people of Afghanistan and to the international community that schools would reopen. They claimed that this was a matter of procedures and arrangements and would be

quickly reversed. Now we hear the opposite Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries on Michael Barr, this is Bloomberg, Nathan, Thanks Michael. By thirty three on Wall Street Time for the Bloomberg Sports Update, brought to you by tri State out of here. All right, Nathan, to think that the Mets under previous ownership, we're always considered to be cheap,

not anymore. Not with Steve Cohen. They were already looking at a payroll about three hundred sixty million dollars. They had shelled out money that saw season to keep free agents Edwin Diaz and Brandon Neimo. They added Justin Verlander and five others, and now they're adding Carlos Korea. He's not going to the Giants as was announced last week. A little unclear what happened. Yesterday's press conference in San

Francisco was canceled. In Korea has coming to the Mats twelve years, three hundred and fifteen million, These close friends with Mets short stop Francisco Lindoor. The plan is to move Korea to third base. It's like what the Yankees did once with Alex Rodriguez. Matt Carpenter, who had some Yankee heroics this past season, signed with San Diego. Forty two year old billionaire Matt Eshiba has a deal to buy the Phoenix Suns and the w NBA Mercury for

four billion dollars. At the Garden, nixt maybe eight wins in a row, easily over Golden State one thirty two to ninety four. Manual quickly off the event for a team I twenty two points, Jalen Brunson scored twenty one, Quentin Grimes nineteen, r. J. Barrett eighteen, and another home game tonight against Toronto. The Rangers seven game win streak ended in Pittsburgh three to two. Chris Pryder both the Ranger goals. Slumping Devils lost at Carolina for to one.

Seaton Hall lost at Xavier. Mike White's ribs still injured, so it'll again be Zack Wilson at quarterback for the Jets tomorrow at MetLife against Jacksonville. Big game Saturday Philadelphia at Dallas, and the Eagles are not ruling out quarterback Jalen Hurds despite his injured shoulder. John Stashaller, Bloomberg Sports Nathan Franti BUYOUTI don't let someone else drive off in

the OUTI model you've always wanted. Visit your locals Rance State Autie Dealer to get behind the wheel of yours today, or visit autie Offers dot com for more information on Wall Street. Time for the Tri State Business Report hears Bloomberg's aad Cory comp Stack is expanding its presence in New York City with a new lease in Chelsea. The firm has been aggressively adding global office space over the

past twelve months. CEO Michael Mandel tells Globe Street dot Com it's helped new team members on board quickly while becoming fully embedded in the firm's culture. A New York State commission approved to plan this week phasing out fossil fuel burning furnaces as soon as it requires energy efficient electric heat pumps or other non combustion heating systems in every new home built in twenty five or after. The plans.

Part of New York's program to address climate change, the Biden administration is planning to use infrastructure law money to make sure every American has access to high speed internet, including in New Jersey. The first six million dollars of that commitment to the Garden State was announced this week in Trenton, New Jersey. Will eventually get one hundred million dollars. That's your Bomberg dry S date business report, I ed Corey, thanks said, It's five thirty six on Wall Street. The

following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. This week, the House committee investigating the January six riot referred former President Donald Trump for criminal prosecution. It was an unsurprising move, but lamentable. Nonetheless, there's no question that the committee, made up of seven Democrats and two Republicans found evidence that Trump behaved abominably that day. By any standard, his actions were in affront

of the Constitution and to the rule of law. Yet whether they merit criminal prosecution is another matter. The referral risks elevating Trump in the eyes of Republican voters at a moment when many seem prepared to cast him aside. The House Committee has done an admirable job of documenting Trump's reprehensible conduct on January six. The faster the country can put those sordid events in the past, the better.

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. Another story We're watching, Kathy Wood had ramped up her purchases of Tesla shares in the fourth quarter, even as concerns over

CEO Elon Musk's ability to manage businesses rise. Potentially signifying Wood's faith in the billionaire and in electric vehicles. Right now, Tesla shares are hired by two point two percent in pre market trading. The stock is also been boosted by must confirming he will resign as CEO of Twitter once the replacement is found. SMP futures right now of twenty two points, Staff futures up two and thirty eight. Nasdaq futures highed by fifty three points ten. Your treasury little changed,

the yield three point six eight percent. We'll get a fuller look of this market. What's the outlook for three? Andrew Sheets, chief cross assets strategist at Morgan Stanley, joins US Next Donde break markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com and Bloomberg Business out hand at Bloomberg Quicktape. This is a Bloomberg

Business Flash and I'm Karen Moscow. European shares are rising alongside US stock index futures after the SMP five hundred close higher for the first time in four sessions, and we check the markets all day long here on Bloomberg Radio. SNP future is up half percent or twenty points, and ASDAG futures up four tens of upper center forty eight points, and own futures up seven tenths per cent or two

hundred twenty nine points. The decks in Germany's up seven tenths of a percent, ten year treasury down one thirty second deal three point six eight percent. They yield on the two year four point to three percent. Nim X screwed oil up one point one percent of eighty two cents at seventy seven dollars, four cents of barrel comic school down two tenths per cent or two dollars eighty

cents at eighteen twenty two sixty and ounce. The Euro one point six one seven against the dollar British found one point to one to nine, and the one point seven six and bitcoin little change at about sixteen thousand, eight hundred fifty dollars. That's a bloomberg business flash. Now here's Michael Barr with Moore on what's going on around the world. Michael Karen, thank you very much. The House Ways and Means Committee voted to release former President Trump's

tax information to the public. So far, we have learned that dozens of audit triggers littered Trump's tax returns. According to Congress's top nonpartisan tax lawyers, there are questionable private jet expenses and large, unsubstantiated charitable deductions. Ukrainian President voladimir's Lenski will be in Washington and we'll meet with President Biden today. In the NBA, the Knicks beat the Warriors one two ninety four. The Wizards won. In the NHL,

the Rangers and Devils lost. Big baseball news, Carlos Correa has reportedly agreed to sign with the Mets in a twelve year, three hundred fifteen million dollar deal. Global News twenty four hours a day on air and on Bloomberg Quick Takes, powered by more than journalists and analyst countries. I'm Michael bar this is Bloomberg. Step right up in greet Carlos, Yeah, okay, Michael. Thanks. It's five forty two on Wall Street. This is Bloomberg Daybreak on Nathan Hager

along with Karen Moscow. Let's take a look at some of the other stories making news this morning. We're watching shares of FedEx. They're higher by more than four percent in early training after earnings that beat estimates. Bloomberg's Doug Krisner has arrived with the details. Profit was lifted by price increases along with cost cuts. The combination helped to

make up for a decline in package volume. FedEx also announced an additional one billion dollars of projected savings in physical three, bringing total savings to about three point seven billion dollars. Back in September, FedEx pledge to cut cost in the face of sagging volume. That's when it pulled its annual forecast. FedEx said it's been making rapid progress on its ongoing transformation while navigating a weaker demanded environment.

In New York Time, Doug Prisoner, Bloomberg Daybreak, All right, Doug, thank you well. Nike also surprised to the upside. The company reported robust sales and mad to sustain inventory pile up, and investors liked that Nike is up almost thirteen percent. Dinner really trading quite the game this morning. We're also taking a look at streaming today. Google's YouTube is reportedly in advanced talks with the NFL about an exclusive deal for the Sunday ticket subscription service. This is according to

The Wall Street Journal. There are separate reports that say negotiations for Sunday football games came down to Amazon and YouTube. Now, Amazon, you probably already know it's got the Thursday Night games. Now it looks like YouTube's about to snag Sunday's Karen. It's so interesting how things are changing, Nathan, you watch it on TV anymore? It's right, yeah. Shifting gears to the economy. This morning, we get some fresh data on the health of the consumer. The government issues are reading

a consumer confidence for December. Attend Am Wall Street Time and we go to Bloomberg Vinidale shoot us for a preview. We're just an Inflation is forcing many Americans rely on credit cards and drug down savings accounts to make ends meet. Rising interest rates are adding to the burden as the Federal Reserve fights the worst inflation in decades. The Conference Boards Priority Board covering November showed consumer confidence dropped to

a four month low. There's still one bright spot, the labor market, bolstered by a historic level of job openings. Boom breagday break Alright, Vinny, thank you. Not got a fuller look of this market this morning. We're very pleased to say we're joined by Andrew Sheets this morning, chief cross assets Strategists at Morgan Stanley and are always great to speak with you, particularly in the morning where we're seeing stocks pretty much around the world on the rise.

Is there room for this relief railey to keep running? Hey, good morning, It's great to be here with you. So we're still skeptical about this rally into the early part of next year. We think you're still going to have a decelerating economy in both the US and Europe. It's we're going to be hard for central banks to message a major shift in policy, although we do think a shift in policy is coming, and we think earnings expectations

remain too high in both the US and Europe. So, you know, I think today's price action is welcome, but we still think some some challenges lie ahead as will shift the calendar into three. How much further do you think that earnings or visions could go from here. It seems like a lot of companies have slashed their forecast heading into three already, but there does seem to be

a consensus that those earnings expectations need to come down more. Yeah, So I think this is a fascinating debate as we're going around and talking to investors about the year ahead, and I think kind of two things are true. I think there's a lot of skepticism around the bottom up estimates for the SMP five hundred for next year, which are about kind of two hundred and thirty five dollars in earnings. I think most investors think that that's too high.

And yet you know, we're four casting about one for the SMP five which at today's prices would put the market about twenty times earnings, which doesn't feel like one is the is the consensus either. If that was really what the market expected, we would be expecting it to trade lower. So I think there's there's a spread there. The market is probably skeptical, it's correct to say, of the bottom up consensus, but we don't think it's skeptical

enough yet. And I think that's still where some of the downside in the early part of the year we think could come from, especially in the view of my colleague Mike Wilson, our US equity strategist. Now, the consensus seems to be building as well that there is going to be a recession next year. What's your view on that. Is it going to be a deep recession? Is it going to be mild? How's the US going to compare to the rest of the world. Yeah, so Morgan Stanley's

economists are not forecasting recession for the US. We have growth slowing but but staying positive next year. But you know, I think that also masks some important nuance. There's still to be a large desceleration in nominal GDP U S nominal GDP is going to go from around eleven percent in the third quarter of this year down to two and a half percent by the end of next year. So you know, we think that has negative implications for earnings.

And then you know, as we were just discussing, we think earnings do go into recession, that earnings growth is negative, so the economy does better than the earnings backdrop. Maybe that is a nice mirroring of an environment we've just been in where the earnings backdrop is really outperformed the economy. What's the pivot point for central banks next year? Do you think that? I mean, that's a big part of

the debate as well. Isn't it about what the need what the Fed needs to see too, if not just slow down on interest rates, but to move toward getting them back down. Well, I think this is one of the most fascinating parts of the central bank discussion next year is that almost ken central banks pivot, can the stop raising rates without generating the type of euphoria optimism that would undo the hard work it's been trying to

do in tightening financial conditions slowing the economy. It's a little bit of this catch twenty two that almost kind of once you stop hiking, the market would view it as as easing. So so that's a really big challenge, and you know, we do think an important way to think about that is that the FED could continue to talk relatively hawkishly even if it acts less hawkishly. So we expect the Feder reserved to raise interest rates by

twenty five basis points on February one. We think that will be the last interest rate hike of the year. But in the March meeting and the meetings after that, we think the FED would continue to communicate quite a

bit of vigilance. But the underlying data will be slowing, The inflation data will be slowing, and that will give them reasons that will give them excuses to to not hike at those meetings, to say that they continue to remain patient, that they're taking in the data as it comes, and that data is just warranting taking a little bit

more time before that next step. But it's a it's a really hard message for any central bank to deliver, and I think it's important to keep in mind as we're hearing various central bank communication that when you know, we think about the pause, when we think about the last hike, it's not going to be telegraphed. It's not going to be balloons released from the ceiling. Thanks as always, Andrew, great to get your thoughts. Andrew Sheets, chief cross assets

strategist at Morgan Stanley with us this morning. Right now, futures are pointing to a higher open. SMP futures are up nineteen points, Staff futures of two Nasdaq futures are higher by forty six points. UH steadier action in the treasury market this morning. Right now, the tenure is down one thirty second yield three point six percent. The yield on the two year is at four point to three percent.

Stay with us. You're listening to Bloomberg Day Break, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com of Bloomberg Business at Land at Bloomberg. Quicktap. This is a Bloomberg Business Flash and I'm Karen Moscow and futures are higher this morning. S and P future is up about twenty points or a half percent, Dow futures up two d twenty two points or seven tenths of up percent, and Nasdaq futures up forty six points

or four tenths of uppercent. The decks in Germany is up seven tenths of uppercent. Ten year Treasury little change the yield three point six eight percent. They yield on the two year four point to three percent. Nine X screwed oils up nine tenths percent or sixty eight cents at seventy six dollars ninety one cents a barrel. Comex schooled down two tenths per cent or two dollars seventy cents.

In eighteen twenty two, seventy announced the euro one point six one seven against the dollar, British found one point two one three two and the n one thirty one point eight one. And looking at bit coin this morning, it's lower, down about a tenth of upper said it's at about sixteen eight hundred fifty dollars and as a Bloomberg Business Flash, Nathan thanks Karen, it's five fifty six now on Wall Street time for your daily Bloomberg Law Brief,

exploring legal issues in the news. Today, we look at the House January sixth committee recommending the Justice Department prosecute former President Donald Trump for four criminal offenses. During a year and a half of investigations, the committee interviewed more than one thousand witnesses, gathered more than one million documents, and issued more than one hundred subpoenas, and today the committee is expected to release its full report. For more,

Bloomberg's June Grosso speaks with former federal prosecutor Elijenigen. You mentioned all the evidence that the committee has collected doesn't hurt prosecutors to have all that evidence out there with the public, potential witnesses, and as you mentioned, Trump's people going through it. Yes, and it cuts both ways. On the one end, if you're d o J, you're grateful. Wow, all this new evidence, almost certainly some that d o

J didn't already know. And we know that the committee got to certain key witnesses before d o J. Kathy Hutchinson being one example, Passive Maloney being another example. The text from Mark Meadows the Committee got those before d o J had them as far as we know. On the other hand, as a prosecutor, you never want other people interviewing and questioning your key witnesses. You never want there to be a massive body of previous statement that

a witness can be attacked, questioned, cross examined on. And that's what's really unusual here, because in any criminal case, the prosecution has to turn over and the defense lawyer has an obligation to scrutinize any prior statements of the witnesses. Well, here there are reams and reams volumes of that material that we're going to see fully when it all comes out in the next few days, and all of that

is fair game for defense lawyers to pick apart. So this is part of the reason there's a cost to the fact that d o J has been largely lagging behind Congress. Now there's going to be all this information out there, some of which may be used to undermine its case, which is outside of DJ's control. So the committee said it had sufficient evidence to make its criminal referral, But the Justice Department standard to indict is way way

way higher. Explain that, So d J standard to indict according to prosecutorial practice is by the textbook, you can get an indictment based on probable cause, which means more likely than not, But no responsible prosecutor charge is only based on probable cause. The guidance within d o j A is you need to be confident that you can prove your case beyond a reasonable doubt before you charge it.

That doesn't mean you only charge assured winners. There's no such thing as that, but you need to be satisfied the proof beyond a reasonable doubt. That is the highest

standard in our legal system. And of course it will be difficult, extraordinarily difficult in my view, to get a jury unanimously to come back and find a not only a formal president, but as you say, Joe's somebody who, by the time this case ever gets the trial, if ever it will be in the heat of election, might even be the fund runner, might even be the nominee. That is very, very difficult, and I think d o j can be faulted for taking this long if they

are going to indict. I don't think this needed to take two years. I don't think they needed to spend a year and a half focusing exclusively on the lowest level people to the exclusion of higher level people. And that's former federal prosecutor Ellie Hoenig speaking with Bloomberg's June Grosso. Catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or

downloading the show at Bloomberg dot com. Slash podcasts and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com or on the Bloomberg terminal at b Law Go right now. S ANDP futures are higher by nineteen points down futures of tune or seven NASTAC futures on the rise by forty four points. Send your treasury is little changed. The yield three point six eight per cent straight ahead. Check on the business headlines

all the news you need to start your day. Our two of Bloomberg Daybreak starts right now.