Bloomberg Daybreak: December 23, 2022 - Hour 1 (Radio)

starring COVID cases threatened China's economy. People taking planes, trains, and automobiles are hoping a window storm does not play Gridge with holiday travel plans, plus a fire on a New York ferry. I'm Michael bar More Ahead, I'm John stash Shower, That jets Lutheran Street continued to struggling offense and a home lost to Jacksonville. The Rangers beat the Islander.

That's all 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 and Francisco Syrius x M one nineteen and around the world Old on Bloomberg Radio dot Com and via the Bloombird Business Up. Good morning, I'm Nathan Hagar and I'm Karen Moscow, and US stock index futures are little change this morning. We checked the markets all day long here on Bloomberg Radio

with SNP futures that will change down. Future is higher up to tens of upper center sixty points and nowsday futures down about a tenth of upper center nine points. Tenure Treasury down five thirties seconds. He had three point six nine percent and a yield on the two year at four point to seven per cent. Nathan Karen, So we're kind of treading water this morning. After stock snapped

a three day wind streak yesterday. The latest strong economic data are validating the case of the Federal Reserve can keep tightening monetary policy. That's set a down beat tone for the week. Tech stocks in particular, on course for

their worst December since the dot com bubble burst. Namura's head of cross At Strategies, Matthew Rose, says, it's a sign of a broader market trend, getting of that addiction to zero interest rate, free ride on risk, and that's why I think is going to be the year of credit, because most investors haven't had to contemplate rising implied in actual default rates, you know, eroding credit markets, widening credit spreads. So it's gonna be an interesting education and path for investors.

Matthew Row with Namura says growth stocks will be the biggest pain trade in Well Nathan Investors get more data to digest today, just ahead of the holiday weekend, and Bloomberg has any down to Judas has a preview. In October, consumer spending adjusted for inflation posted the largest increase since the start of the year. Today's rape board could tell a different stories. Inflation chips away at household finances. Preliminary data show November retail sales dropped by the most in

nearly a year. Also on today's data agenda, new home sales, Nat Del Judace Bloomberg Day breaks right, Vinnie, thank you. I'm really get one more notable data point at ten am, Wall Street time with the University of Michigan Consumer Sentiment Index. That report has proved to be a market mover in recent months. Let's turn to markets in Asia, now, Karen, we saw weakness across several markets. They're ahead of the weekend. Bloomberg's Brian Curtis has more on that story. Asian equities

tracked lower after a slump in US technology stocks. Strong US economic data strengthened the case for the Fed to continue raising interest rates as tech index led the falls, but weakness was also seen in Japan, Australia and South Korea. Elsewhere, oil headed for a big weekly gain. Has China shift away from COVID zero bolster the outlook for demand? Brian Curtis, Bloomberg Daybreak Right, Brian, thank you. Meanwhile, in China, a complete reversal in COVID policy is not having the effect

officials initially intended. COVID infections are soaring and keeping people at home, causing US slump and travel and economic activity. People in Beijing and other major Chinese cities have been hit by an exit wave of infections that they're being encouraged to return to work even if they're sick. Now, let's turn to a major note in politics in this country. Karen.

The House committee investigating the January sixth attack on the US capital has released its final report on the insurrection, and it cast the blame on former President Donald Trump, specifically for inciting violence to try to hold onto power. The eight hundred fourteen page report details Trump's efforts to pressure state officials and the Justice Department overturned the election.

The committee also recommends that Congress establish a mechanism that would formally bar Trump and others identified in the report from holding any government or military office under the fourteenth Amendment. Well turning to Tesla, now, Nathan, after offloading a massive sum of Tesla's shares this here, CEO Elon Musk says he will not be selling shares for a while. Bloomberg Steve Rappaport joins US Live. But that story Steve, good morning,

Good morning, Karen. And Nathan. Musk sold almost forty million dollars of Testla shares, mostly to fund his purchase of Twitter. Now he's ready to take a break. I'm not selling any stock for I don't know, but quote a minimum eight seens or twenty four months, so you can count on me. Like most no stock sales will probably out of twenty five or something. Musk's declaration was in response to a question from longtime investor Ross Gerber, who challenged

the CEO's leadership of the electric vehicle maker. Shareholders seemed pleased with the announcement, with test Less stock rising as much as three and a half percent in pre market trading. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks, Let's turn to Crypto now. In the latest on f t X and Sam Bankman Freed, the Crypto Exchanges former CEO was released on a massive bail package after he

made his first U S court appearance yesterday. That deal includes a twodred fifty million dollar personal or cognizance bond that was secured by his parents home in California. One federal prosecutor called it one of the largest pre trial bonds in US history. Sam Bankman Freed is facing fraud charges over the collapse of f t X. His next court appearance is scheduled for January three, well as the

ft X saga plays out. Nathan SEC chair Gary Bnsler is saying the agency's patients is wearing thin for digital asset exchanges and other firms that shir gets regulations. Don Krisner joins US with that story. In an interview yesterday, SEC chair Gary Gensler said the agency's patients is wearing thin for digital asset exchanges and other firms that shirt gets regulations. Gensler said the runway is getting shorter to

start following rules and register with the agency. He also said the casinos in this wild West are non compliant intermediaries. Gensler also declined to identify firms facing scrutiny or common on where the probe of ft X may go next. In New York, I'm Doug Prisoner Bloomberg daybreak. All right, Doug, thank you. Finally oil has headed for a substantial weekly gain as Russia says it may cut crude production in response to the price cap imposed by the G seven

on its exports. Right now, nimex s crudes up two point one percent at seventy nine dollars fourteen cents of barrel. Straight ahead, your latest local headlines span the check of Sports. This is Bloomberg. It's fifty five degrees right now in Central Park, raining, but rain is gonna end early, and then temperatures are gonna sink like a stone this afternoon, down to the low teens. Tonight, let's gonna look at some of the other stories making news in New York

and around the world with Bloomberg's Michael Barre. You're ready for this deep freeze. Michael h No, but yeah, but neither are two million Americans. But it's going to affect many people because of this massive winners storm rolling across the country. Here in the Try State area, temperatures the forecast to plummet around thirty degrees in just hours, freezing any rain already on the roads. Strong winds, snow, and

flooding are also part of the storm. This woman lives in lynden Hurst, New York, where she says there was flooding from heavy rain just last week. I do get nervous as far as losing power and just trying to manage what we're gonna do, as far as eating and just making sure we have the heat on. Hundreds of flights have already been canceled or delayed in the Tri State area. Meanwhile, President Biden more Americans to take the storm seriously. It goes from Oklahoma all the way to Wyoming,

and Wyoming the main and it's a real consequence. So I encourage everyone everyone please heat the local warning, the President says, it's not like a snow day when you were a kid. This is serious stuff. Hundreds of New York City commuters had to be evacuated from a Staten Island Ferry after a fire broke out on board last evening. Officials say there were no major injuries, but at least

five people are being treated for smoke inhalation. Officials say workers quickly detected the fire, activated a high texaspression system, and sealed the flames behind air tight doors. F D n Y Deputy Chief Frank Lee praised the crew members for their response. This is the way the system is supposed to happen. When is it June fire? Just supposed to notify the coast guard and then you're supposed to make sure that you seal it and get the people out of the way. So everybody acted the way that

the way I would expect him to. The f D mmise Frank leaps as passengers filed downstairs and evacuated onto other ferries which had race to help. A Connecticut judge denied Info Wars host Alex Jones's motion seeking a new trial and the overturning of a jury verdict requiring him to pay hundreds of millions of dollars to families of victims of the Sandy Hook Elementary School shooting for years. Jones described the twenty twelve shootings in Newtown as a hoax.

Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan. All right, Michael, thank you. Coming up to five ten on Wall Street time for the Bloomberg Sports Update. Good morning, John Stash, Good morning, Nathan. Didn't seem as if this was possible, but things have

gone from bad the worst for the Jets. Young quarterback Zach Wilson lost his job to Mike White, got it back when White got hurt, lost his job again last night, got bench late third quarter, and the fans who brave the weather when wild when Wilson was removed in favor of Chris Straveler. Wilson was the second pick of the draft s. Traveler is the former Winnipeg Blue Bomber who wasn't drafted at all. Jacksonville one in the rain at MetLife nineteen to three, and both teams are now seven

and eight, But the Jaguars are read on. If they win their last two games, they're going to the playoffs. The Jets fading fast. They've lost four in a row. Their season, which was going so well earlier, will almost certainly ended a couple of weeks, and then the Jets will have to side what to do with Wilson. Giants play tomorrow in Minnesota. Philadelphia brings its thirteen and one record into Dallas. Gardner Minshew will quarterback the Eagles for

the injured Jalen Hurts. Lamar Jackson's gonna miss a third straight game for Baltimore. At the Garden, Rangers and Islander goes back at the York point for tro Check at the circle, back up top for Fox. Straight away, Fox drive to the far circle. Fox still with it, passes the Spanah Jack quickly Panero frelay in New York. They call. They were also tied at two and then three, and that's when Kapocaco scored within a three minutes left. Rangers

won five to three. They held the Islanders only eighteen shots, and the Rangers were won eight of their last nine, while the Isles have lost five of the six, nix of one, eight of nine. Host Chicago tonight, Nets go for an eighth win in a row home game with first place Milwaukee. John Stashieller Bloomberg Sports name. All right, John, thank you. The Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the

autie model you've always wanted. Visit your local tri state autie dealer to get behind the wheel of yours today, or visit outie Offers dot com for more information. Not a whole lot of movement in the stock market this morning. SMP futures are up one point down futures up fifty eight, NASTACK futures are down ten points. A little bit of activity in the bond space, though, with the tenure Treasury down six thirty seconds, the yield three point seven zero percent.

Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius, XAMP, the Bloomberg Business app, and Bloomberg dot com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar. Futures are holding steady this morning as we await inflation data later today. There is concern in this market. It could be yet another reason for the Federal Reserve to harden its resolve to continue

pursuing aggressive policy. That's sort of the sentiment that we got from the latest economic data just yesterday, with the making the case that the FED could keep hiking interest rates without breaking the back of the economy. That put text stocks on course for their worst December since the bursting of the dot com bubble two decades ago. Investors

will be focused today on the core PCE deflator. That is a key inflation measure tracked by the FED, and of course fighting inflation is the focus for this central bank and central banks around the world. Really as we head into three of just about every central bank that we track has been making the case that they will continue raising interest rates and keeping them higher for longer to get inflation under control. Let tsake a look at

some other stories we're following this morning. The State Department, says US Treasury Secretary of State, I should say Anthony Blincoln discussed COVID transparency in a recent call with China's

foreign minister. He stressed the importance of Beijing being forthright about a growing COVID nineteen outbreak in the country, invest in the foundations of our strength at home, align with our partners and allies, compete with China, so that we can defend our interests and realize our vision for the future. Secretary of State Anthony B. Lincoln also discussed the war

in Ukraine in a call with China yesterday. And now let's head oh Ver to Jeff, you senior E. M. E a strategist at b N Y Melon to take a look at this market this morning and I get a look at the path ahead in three Jeff, good morning. It seems like every data point that comes across the tape, Uh, just adds to the volatility. Is that kind of what you're looking for as we limp our way to the rest of this year, So we have to bear in mind other year end conditions as well. You know these

sometimes however, you know, just often no quite volatile. But at the same time, Uh, there's been quite a that's being quite a lot going on, you know, heading into a year, and as well in the policy surprises, and I think the market just needs to reassess, you know, how easy or how loose that local central banks are going to be. And I think the question is, while the answer is unquestionably um, it's not going to be asked to do his market hope, Well, what is your

assessment of how things go. It seems like the latest economic data that we're getting here does seem to bolster the case that the Federal Reserve can continue tightening, although some of the data have been mixed. What's your take on where the data could go from here? Well, the question is that where does the growth data go from here? Where does the housing data go from here? Versus where

does the inflation data go from here? And these two could be very different things, right, So, I think that's what the markets are concerned about. Yes, something activity numbers are slowing, and the housing markets and clearly uh you know slashing you know, the amer or if not a

bit more. At the same time, if we are look forward to call PPE today, you know, these are good indicators for inflation underlying demand if they come in in line with expectations, are slightly hard than expectations, you know, then I said, we'll just say we still have an inflation mandate and heading into next year, prices are using but not using at the paste that they'd like. So we reaffirm our view that I'm not going to hike aggressively further beyond five them, but they probably may need

to stay at five for longer than expected. Do you expect that the PC the flator that we get today is going to bolster that case further. I mean, we have seen signs in this economy that it looks like the FED is winning the battle. I mean it's not where it needs to be, where it wants to be,

but the trend is moving steadily downward. When it comes to inflation, well, I think you am just going to hit the nail on the head there, you know, winning the battle, and that you need to, you know, win the war against inflation, right, and that is a global circumstances and there could be the furthest things in the tail you know when when it comes inflation as well learned. But the other guests in the point of volatility is

a look at what's happened to ECB pricing yesterday. We're up at three and a half percent already tightening in Europe and if you look at what the bo J didn't a surprisingly speaking that this is still in one world to artist economies, you tightening as well. So even if the FED stands still um then markets need to take into acount global conditions. And the fact is Europe and Japan are tightening more than expected right Only China is probably on the other side, you know, right now,

but due to growth concerns that to worry too. So you've got China growth on the one hand and global tightening on the other. Then there's a small wonder that risk appetitis a bit soggy right now in our last thirty seconds here where do you look for opportunity against tighter central banks? So it's still a real rate in emerging markets, you know, we look at the flows them

into like Brazil, Mexico and Indonesia. Indonesia and the had a central bank decision in a yesterday probably the only place in Asia right now which is already above the head of the FED. And we'll stay comfortably above the Fed. We're seeing a lot of external and players having their exposures to the bond market, things like that. I think they will continue have positive real rates. I think that's the bottom line. Thanks so much, jeff Happy holidays. We

don't speak again, Jeffrey. You senior strategists at b n Y melon with us this morning. Right now, SMP futures are of four point staff futures of seventy three and nastaic futures trimming their declines now down still but only by two points. Stay with us. You're listening to Bloomberg, Gaming, markets, headlines and breaking news twenty four hours a day at Bloomberg dot com. The Bloomberg Business at Hand at Bloomberg Quick Take. This is a Bloomberg Business flash and I'm

Karen Moscow. US stock index futures aren't steady ahead of inflation data. Do out later this morning. We checked the markets all day long here on Bloomberg, but SNP future is up six points, or about two tens of uppercent. Down futures have eighty nine points or three tens of uppercent, and NASTACK future is little change. The decks in Germany's have half percent. Ten year treasury down six thirty seconds, you have three point seven zero percent, and they yield

in the two year four point to seven percent. Nine x Screwed oil is up two point four percent of a dollar eighty three at seventy nine thirty one cents of barrel comics gold up six tens percent or ten dollars ninety cents at eighteen o six twenty an ounce.

The Euro one point six one three against the dollar, British pound one point two zero five six and the end is at one thirty two points six and bitcoin is up for tensive upper cent at about sixteen thousand, nine hundred dollars, and investors are going to be focused on the core PCE deflator, which is a key inflation measure track by the Fed. It's how to eat thirty Wall Street time, and that's a Bloomberg business flash. Now here's Michael bar with more on what's going on around

the world. Michael, good morning, Good morning, Karen. A winter storm has cost thousands of flight cancelations and homeless shelters are overflowing amid one of the most treacherous holiday travel seasons the nation has seen in decades. The House committee investigating the January sixth attack on the US Capitol delivered a scathing report and it's released yesterday. It blamed one man, former President Donald Trump, for inciting violence to try and

hold onto power. The Senate passed the one point seven trillion dollars spending bill in an effort to stop a government shutdown. In the NFL, the Jets lost to the Jaguars nineteen three. In the NHL, the Islanders beat the Rangers five three. The Bruins one in the NBA. The Wizards lost. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analysts and more than twenty countries.

I'm Michael bar and this is Bloomberg. Nathan all right, Michael, thanks, It's three on Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak. Let's get more on that spending bill one point seven trillion dollars actually passed the Senate, where a bipartisan vote after an impass on immigration policy was broken. Today the House gets its vote, probably gonna happen pretty quick, so lawmakers had beat it out of the town get

ahead of a winter storm. Bloomberg's Joe Matthews spoke with Congressman Henry Quay Are Democratic Texas about whether he thinks the measure passes. Absolutely, we are going to go ahead and pass said, and look, every bill is is put together and there are different opinions. It's not the way I wanted or somebody else might want it, but it's it's combined together and we are going to pass it. And there is money for homeland. You know. I'm very

interested on that. I said in three committed homeland defense and of course egg but talking about the border, there is money for border security here. This wouldn't have come about unless Mike Lee's amendment was was struck down or or allowed on the floor. It was struck down, and there I could get into a lot of sort of politics here about what that might have meant for the House.

But knowing that that is not there, and knowing that Title forty two is bound up in court, what is your thought right now on the status of security on the border in your district? Well, surely, uh, Title forty two looks like it's gonna go away. It's a health order, it's not an immigration order. I want that to happen.

But I wanted to extend to the administration comes up with a new policy, a policy that will allow this migrant seekers to go in in an early pathway through the ports of entry or online and asked for aside them and if they come in between parts of entries like they're doing right now, either they will be asked to go voluntarily return themselves or they're going to be deported with some sort of penalty where they cannot apply for the next five years or so for asylum. We

gotta have consequences. The problem is there are no consequences. We can add technology, we can add personnel, but you've got to have the right policy with the mixture of personnel and technology at the White House on that, well, I've always from the very beginning, and I can tell you December tenth, Uh, December tenth is when I call the transition team, the buying transistent team, and I said, hey, look, I want to offer my services. My understanding is December.

I was already telling them that people were lining up to come across. Uh. And I kept on trying to talk to them. But they have a different mindset. And unfortunately, without due respect, a lot of the people they have the White House have immigration background, which is okay, But who's listening to the men and women in green who's listening to the border community. Somebody's got to listen to

my border communities. Well, this is a tough spot here, knowing that this is going to be a court decision and not likely a legislative one. Do you have any sense of timing on when the Supreme Court comes back around on Title forty two. Uh? No, we don't you know, they ask for those briefs pretty quickly, and we'll wait

for what happens. But I'm hoping that the that the administration will come up with a policy that will have an orderly pathway for asylum speakers and consequence of debate, don't Let's Democrat Henry kay Are of Texas speaking with Joe Matthew on Bloomberg Sound On. Catch the program weeknights five pm Wall Street Time on Bloomberg Radio. Listen anytime you can download the show wherever you get your podcasts. You've got your top stories, local headlines, and checker markets. Next, first,

brace yourself for this weekend weather forecast. A tri state area under a wind advisory through ten pm tonight, the rain will taper off. Temperatures will fall from the fifties through the forties into the thirties by late today. We're partly cloudy, brees and much colder Tonight those ten of fifteen, a mixture of clouds and sun breese. For tomorrow, he's only twenty to twenty five. Christmas Day, abundant sunshine but

still cold. He's only five to thirty. 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 Elving free to Washington, d C. Bloomberg one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM Chad A one nineteen 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 Hagar. You're listening to Bloomberg Daybreak, and this is your daily reminder from Innovation Refunds to apply for a payroll tax refund if you're small to medium sized business was impacted by COVID nineteen Innovation Refunds clients have already claimed over two billion dollars in payroll refunds. Get started and get refunds dot com And Nathan, we're nearly

four hours away from the open of US trading. Let's get you up to date on the news you need

to know at this hour. US futures they're higher after stocks snapped a three day winning streaky yesterday, Anticipation of future of FED tightening is set a downbeat tone for the week, and tech stocks in particular are on course for their worst assembersons the dot com bubble burst Nowmora's head of process at Strategies, Matthew Roe, believes there'll be one trade in particular that will cause investors some pain

next year. I think it's growth stocks. I mean, I think when you look at you know, with interest rates and zero, the present value of anything is equal to what it will be in the future. Um as a discounting function. When you start to take rates up, especially for nonprofitable companies, that pretty ugly from a fundamental perspective. And Matthew Rowe and Nomura said the broader take down turn is a sign of a market trend that could continue into three The investors have some more data to

the jest Karen. Before the holiday weekend, we get the latest read on consumer spending at a thirty Wall Street time. Two hours after that we'll get the universe. Actually, I think it's about an hour and a half, isn't it, Karen, that we get the University of Michigan Consumer Sentiment Index. Oh yes, and Meanwhile, in China, reversal and COVID policy is not having the effect officials initially intended. Infections are soaring and keeping people at home, causing a slump and

travel and economic activity. Let's turn to Tesla now. After offloading a massive sum of shares in the company this year, the CEO, Elon Musk, says he won't be doing that again, at least for a while. Bloomberg Steve Rappaport joins us Live. Good Morning, State, Good Morning, Nathan, and Karen. Shares of Tesla climbed as much as three and a half percent in pre market trading after Elon Musk said he's done

offloading for now. I'm not selling any stock for I don't know a quote a minimum eighteens and twenty four months, so you can count on me. Like most most stock sales will probably on or something. Musk has made such declarations before only to sell more stock. Much of the forty billion dollars of shares he sold this year were to fund his acquisition of Twitter Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you.

Turning to Crypto Now and the latest on ft X and Sam Bankman Free The Exchange is former CEO was released on a massive bail package after making his first US court appearance yesterday, and includes a two fifty million dollar person over cognizance bond secured by his parents house in California, which one federal prosecutor called one of the

largest pre trial bonds in US history. And the House committee investigating the January six attack on the US Capital has released its final report hearing, and it casts the blame on former President Donald Trump, specifically for inciting violence to try to hold onto power. Futures this morning are higher straight ahead, your latest local headlines plus the check of sports, and this is Bloomberg. Thank you, cart One on Wall Street. Let's bring in Michael bar for look

at what's going on in New York and around the world. Michael, thank you very much. Nathan. A nasty winter storm has caused thousands of flight cancelations looting here in the New York area. Bloomberg meteorologist Rob Carollin has more, Michael, powerful winter storm continues to develop over the eastern Great Lakes

this morning. This system is going to be driving a cold front through much of the eastern part of the country this morning, where we're seeing temperatures in the fifties and sixties out ahead of the front, generally in the teens across the Ohio River Valley behind the front, and then it's in the single digits below zero across the western Ohio River Valley. All this are now going to work its way into the southeastern United States, date, the

mid Atlantic States, and the Northeast. It's also going to set up some very potent lake effects snows outside of Buffalo today, they could see anywhere from one to three ft of snowfall from today through Christmas Day. And it's also going to be accompanied by winds that are gonna be gusting in times over sixty miles an hour. This is gonna be one of the coldest Christmas is for the tree nited States, probably since coldest Christmas in the

Northeast since at least Michael, Thank you, Rob. But trip on a Staten Island ferries turned out to be anything but a normal ride. Last night. We received the nine one one call reporting a fire in the engine room of one of the Staten Island ferries. Frankly with the f d n Y says more than eight hundred passengers had to be evacuated. The Senate passed at one point seven trillion dollars spending bill in an effort to stop

a government shutdown. Democratic Senator Patrick Langhey. Most of what's in here has been put together in a by Paris in fashion funding things that we all say we agree with. Republican Senator Richard Shelby this bill. We know what it is, we know it's us. We know it's not perfect. Uh, but it's got a lot of stuff in it, a lot of good stuff. The bill includes forty billion dollars in disaster relief aid. Global News twenty four hours a day on airand on Bloomberg Quickday, powered by more than

seven hundred journalis An analysts more than twenty countries. Michael Barr, this is Bloomberg, Nathan, Michael. Thanks thirty three on Wall Street Time for the Bloomberg Sports update. Here's John stan Jauer. Thanks Nathan. Hard to believe now, but the Jets, not that long ago, we're flirting with the idea of winning the a f C East. Their season's pretty much gone down to two was four straight losses, just two wins in their last eight games, and they're in the last

place again. Last night in the Jets home finale, pretty good effort by the defense allowed Jacksonville the score, only one touchdown, but virtually no offense. Jets got an early

field goal only because of the Jaguars fumble. First half, they had three first down sixties six yards, Zack Wilson through an interception, and late third quarter Wilson Monster, the delight of the fans, got benched again, this time in favor of the undrafted former Winnipeg Blue bomber Chris Stradler, who did look good for the Jets in the preseason,

and he outplayed Wilson. He ran for fifty four yards and just over a quarter Jaguars one in the rain nineteen to three, and Wilson was asked about losing his job again. We're not doing anything offensively, and you know, I'm trying to figure it out, trying to help get the guys going. I'm trying to, you know, get myself in a little bit of rhythm, and and you know, we had nothing there, and so you know, you can't

blame him in that situation. You know, you put Chris out there, and he's obviously great with his legs and his arm and and he was able to give us a little bit of the Sparkner. Jets have now use four different quarterbacks this season. Giants played tomorrow at Minnesota. The Giants win and they get two or three teams to lose between Seattle, Detroit and Washington. Giants went to playoff. Berth that the Garden Rangers pick Dowagers five to three.

A goal to assist with Barkley good Rowe Capo Cacos whore the go ahead goal with under three minutes left. Home games with the Knicks and Nets. Tonight, Nicks against Chicago. The Nets Welcome in Milwaukee, John Stactually where Bloomberg Sports, Nathan and Bloomberg Sports is brought to you by Audie. Don't let someone else drive off in the Audi model

you've always wanted. Visit your local Frice State autie dealer to get behind the wheel of yours today, or visit Outie Offers dot com for more information on Wall Street. That's time for the Tri State Business Report. Let's check in with Bloomberg's head Cory. New York has outlawed the manufacture and sale of cosmetics that involve new animal testing. The new law takes effect on January first. Violators will be fined up to five thousand dollars plus another thousand

a day if violations continue. Governor Kathy Hokels signed the measuring to law Thursday evening. Empire State Building owner Empire State Realty Trust has purchased a rental apartments building and no hoe, funded partly by the sale of two office buildings in the area. Cranes reports Empire State Realty closed on the purchase of a full service or rental apartment asset on Mulberry for one fifteen million dollars. Google is leveraging its partnership with Samsung to launch its first three

D AD in New York's Times Square. The tech giant wants to appeal to young millennials and gen z by showcasing the ad on a three D billboard. It's part of Google's ongoing The Future Is Unfolding campaign with Samsung, which began in threw Bloomberg Trying State Business Report. I'm Ed, Corey, Thank you Ed. It is on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. As the demise of the

ft X crypto empire unfolds. Lawmakers and regulators are grappling with a question, what, if anything, should they try to do to civilize a market so rife with abuse. Some might be tempted to sit back and hope the crypto market will simply burn out, putting an end to the

whole bizarre episode, but that would be wishful thinking. Officials need to act on the lessons of fiascos from the collapse of the terrorist stable coin to f t X to ensure that renewed speculation never threatens the broader financial system. To ensure that renewed speculation never threatens the broader financial system, clear rules would provide authorities with the framework they need to crack down on bad actors, a category into which

ft X would have fallen. A few regulatory fixes should prevent crypto from becoming a systemic threat to seditorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or opi and 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, and terminal customers may have seen this

red headline just cross the Bloomberg terminal. Nearly thirty seven million people in China may have been infected with COVID nineteen on a single day this week. That is according to estimates from the Chinese government's top health authority. Minutes from an internal meeting of the Chinese National Health Commission say as many as two hundred forty eight million people nearly eighteen percent of the Chinese population likely contracted the

virus in the first twenty days of this month. If that's accurate, the infection rate would dwarf the previous daily record of about four million infections set in January two. But again, the new estimate nearly thirty seven million people infected with COVID in just one day in China, according to the Chinese government. This is Bloomberg Markets, Headlines and breaking news twenty four hours a day at Bloomberg dot Com,

the Bloomberg Business at and at Bloomberg Quick Take. This is a Bloomberg Business Flash and I'm Karen Moscow us not Index Future as they're higher ahead of inflation data that's du out later this morning, amid concerned and maybe yet another reason for the Fed to heart and its resolve to pursue aggressive policy. And we check the markets all day long here on bloomberg S and P future is up about twelve points or three tens of upper cent.

Down futures up almost four tenths of upper center a hundred twenty four points, and as dack futures have three tents of upper cent or thirty two points. The decks in Germany's up half percent. Ten year treasury down five thirty seconds, you have three point six nine percent, and they yield on a two year four point to seven percent.

Nimex screwed oils up two point one percent of a dollar sixty six at seventy nine dollars thirteen cents of barrel comics gold up six ten percent or ten dollars ninety cents at eighteen oh six ten anounced the euro one six one seven against the dollar, British found one point two zero six seven, then one two point six one, and bitcoin it's up half percent at about sixteen thousand,

nine hundred dollars. And that's a Bloomberg business flash now here's Michael Barr with more on what's going on around the world. Michael, Karen, thank you very much. Frigid air making its way east across the United States, with several states issuing blizzard warnings. Meteorologists of warning the conditions could create bomb cyclone conditions and spots. The weather is also

caused widespread travel disruptions. The Senate passed the one point seven trillion dollars spending bill yesterday and an effort to stop a government shut down. The bill now heads to the House, where it is expected to pass. In the NFL, the Jets lost to the Jaguars three. In the NHL, the Islanders beat the Rangers five three the Bruins one.

In the NBA, the Wizards lost. Global news twenty four hours a day, all on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty un Michael bar This is Bloomberg, Nathan, Michael, thank you. It is five forty two on Wall Street. This is Bloomberg day Break. I'm Nathan Hagar alongside Karen Moscow with some other stories making news this morning. The State Department says Treasury. I'm sorry the State Department, says

Secretary of State Antony. I don't know why I keep trying to say Treasury, but at any rate, Secretary of State Antony Blincoln discussed COVID transparency in a recent call with China's foreign minister and stress the importance of Beijing being forthright about a growing COVID outbreak in the country. Blancoln held the news conference yesterday running through many of

his department's accomplishments and covering continuing goals. Invest in the foundations of our smith at Hall, aligne with our partners and allies, compete with China so that we can defend our interests and realize our vision for the future. And in that call with China, Secretary of State Anthony Blincoln also discussed the war in Ukraine. Well, we'rely gonna corporate news now, Nathan, and it's more trouble at Tesla. The federal government is going to investigate another accident in all

think Tesla's driver assistance programs. And we get more in that story with Bloomberg's at Baxter, the driver at the heart of last month's Thanksgiving pile up in the Bay Area on the Bay Bridge is blaming Tesla's self driving software. Nine people suffered minor injuries in an eight car collision, which also caused major traffic glaze. The driver says his Tesla s was engaged in full self driving mode from

software that he had just recently installed. He says the car suddenly came to a stop, causing a chain reaction collision in San Francisco. I'm at Baxter Bloomberg daybreak, Okay and thanks. And there's legal trouble at another tech giant this morning. Meta Platforms, the owner of Facebook, has agreed to pay seven hundred twenty five million dollars. That's to settle a long running lawsuit to claim Facebook illegally shared

user data with the research firm Cambridge Analytica. This lawsuit dates back to eighteen had followed revelations that the UK research from tied to former President Donald Trump's seen campaign, gained access to Facebook data on as many as eighty

seven million subscribers. Well with video games are probably on the top of most people's minds, considering it's a holiday season of ours to oh my gosh, the same n b A, you name it, well, Microsoft, you might be interested in this then, Microsoft is fighting back against allegations from the FTC that it's proposed sixty nine billion dollar acquisition of Activision with harm competition in the video game industry,

and a filing with the FDC yesterday. Microsoft said the tie up would create more choices for gamers and game developers. The FDC earlier this month voted to suit to block the merger between the Xbox Maker and Activision Blizzard, which produces popular video games including Call of Duty. We'll have to get our kids together to play against each other, Nathan. Yeah, they're definitely not gonna be playing with me. I'm still stuck on Wortle and I still miss Super Mario Brothers. Oh,

I love Super Mario. I'm right there with you. Yeah. Maybe they'll put one of those uh classic Eddie s s under my tree this year. But we got to get back to Tesla this morning as well. The EV shares EV car makers shares are on the rise this morning. Uh. That's after that promise from CEO Elon Musk that he's gonna stop selling his shares for at least, in his words,

the next eighteen to twenty four months. Let's bring in alex Web are Bloomberg Quick Take correspondent, go to guy at least these days when it comes to Elon Musk and Tesla, and nice to talk with you again. Alex Um is Elon Musk finally getting on board the idea that you buy low and sell high. I mean, it's hard to know what what what is driving any of his decision making it times beyond. You know, when he was selling, it was clear that he had a need

for capital. He says that he's not going to sell any more for now, but stuff changes in the course of next year. Then I wouldn't put it past him. Still decided to sell some more. He at every junk shore when he's sold, I think almost every junk train area when he has sold down his as mistake, he said, that's it. That's it, Like this time, definitely, that's it. You know. So he has covered essentially much the cost of his Twitter acquisition. Twitter has capital requirements. It's probably

covered them for a while. Next year and of next year, who knows. He says he won't be sold, but yeah, until he does. Yeah, in the meantime, I mean, we've seen the plummet in Tesla shares this year, and we've heard the pretty scathing commentary from people with or at least want to get board seats on Tesla, likes of ros Gerbert Gerber Kawasaki, and then this, Uh, I don't know if you saw this note from Dan Ives at web Bush overnight. He's been bullish on Tesla, and I

guess still is. He's still saying it's gonna outperform, but he's lowered his price target and says Tesla needs a leader, not a Ted Striker. Uh. Setting aside the eighties reference, is this airplane crashing when it comes to Elon Musk's leadership at Tesla. I mean if when you see Dan Ives being more critical about so that certainly says Rosscoeber of course colossal Tesla bull that both those guys now seem to be turning again against Master. That is something

certainly to write home about. I think that you know, ultimately he's a He's someone who was already the CEO of several companies Twitter. You know, the even given the overvaluation in terms of what he paid for Twitter is a company with less than ten percent of the market cap of a significantly depressed Tesla stock. I think if you're a Tesla investor. You are understandably concerned about the

amount of time that Musk is spending at Twitter. And then you add on top of that, you know a lot of these comments about whether he's going to sell Tessa sort they came in a Twitter space that that Elon must joined late yesterday. Well, he spent an hour on that Twitter space. He was on a Twitter space that I heard the day before about six am UK time, so it was quite late into the evening on the

West coast. You know, if he's spending an hour a day joining Twitter spaces, that's an hour day he's not spending on either running Tesla or Twitter. You know, there are some massive questions about his time management given the now almost half dozen companies, of which is the CEO. Yeah, at one point that Elon Musk has made on his Twitter feed when it comes to the trajectory for Tesla stock, he's been putting some of the blame on the FED higher interest rates and the way that that puts on

tech stocks. Is that part of the story here for Tesla, the the central bank policy story? I mean, yes, certainly, it is certainly part of the story. It is absolutely not the whole story, you know, Tesla was, by a lot of estimation significantly overvalued. You know, even now it trades at something in the twenty something times multiple in terms of forward earnings. You compare that to other car makers, you typically traded around five to six times forward earnings.

And you know, Tesla might have some some you know, some good software, some you know, very good electric technology, but ultimately it's a car maker, and the underlying economics of that are the same as they are for other luxury car makers such as BMW or PORTION. So um, you know, he has exacerbated what has um been a consequence of rising interest rates by the way that he has managed and frankly in recent months appears to have

maybe mismanaged the company. Well, we'll see whether he holds true to that word about eighteen to twenty four months at least not moving Tesla stuck on his own with

even more share sales. As always, Alex, great to get your take on what's happening in Tesla's the The saga really does continue, Alex web Bloomberg quick take correspondent with us this morning and looking at Tesla shares in the pre market, they are higher by nearly two percent, futures are moving higher as well, kind of building on their

gains this Friday before Christmas. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomburn business flash. I'm Karen Moscow futures are higher this morning. SMP futures up fourteen points. You're up a third of up percent. AW future is up a third of percent or a hundred twenty six points, and NASDACK futures up four tens of uppercent or forty

four points. The decks in Germany's a half percent ten year treasury down five thirty seconds, held three point six nine percent. They yield on the two year four point to seven percent. Nine excret oil is up two percent, up a dollar fifty five at seventy nine dollars four cents of Barrel. Comic School is at six ten percent or ten dollars ninety cents at eighteen o six twenty announced.

The euro one point six one seven against the dollar, British pound one point two zero seven two and the end one thirty two point six too and bitcoin is up four ten percent at about sixteen thousand, eight hundred d dollars. And that's a Bloomberg Business Flash. Nathan Hagar,

Karen Moscow, thank you so much. At is five fifty six on Wall Street, and it's time for our daily Bloomberg Law Brief, exploring legal issues in the news, and we keep our focus on Elon Musk this morning, who's been at the helm of Twitter for just a couple of months now, but piled on controversy after controversy during that short tenure. Lately, it's been suspending journalists for questionable reasons.

This week, after his own Twitter poll showed almost fifty eight percent of respondents wanted him to step down, Elon Musk says he will find someone else to run the social media company. For more, Bloomberg's June Grosso speaks with Columbia Law School professor Eric Tally. Musk plans to resign as CEO as soon as I find someone foolish enough to take the job. Who would be foolish enough to take the job when they'll be CEO in name only.

It's an interesting job advertisement, to be sure, I think we have the one person who is foolish enough to take the job in that elon Buck, but it makes it even hard. Or when he said, yes, I'm gonna find a CEO, but I'm still going to be in charge of a subsidiary part of Twitter. So how does that CEO even operate when you're controlling shareholder is also running one of your division. Can the CEO discipline Mr Bosk for failure to perform? It's it's a very very

precarious situation. You know, Managing Twitter is already a pretty big ask. Managing it when you are the boss to the person who is your boss is going to be an even bigger lift. So for the extent that he does find takers, they are largely going to be sort of lieutenant to him. That's quite frankly doesn't help with some of the other challenges that Mr Bosk is facing, particularly from his shareholders and investors at other companies and notably Tesla. Here, you know, they have become much more

audibly uppity about you know, his travails over at Twitter. Uh, and whether that that entire enterprises not only to astracting him, but may also be you know, sort of contrary to the better interests of Tesla in terms of developing its markets and make sure its products are reliable and coming off the production line, you know, heading into a very very challenging period of time, and some have urged the board to replace must But is that board ever going

to do anything like that. Possibly it would be quite a challenge to do so, given what a central role he has and continues to play at Tesla. It's important to realize that that Mr mu compared to Twitter, Mr Muskie, is only about shareholder at Tesla, and that's declining, you know, every time I pick up the newspaper, So he's you know, selling off more and more shares of Tesla. So it's

not completely out of the realm of possibility. On that score as well, it's probably worth noting that Senator Warren herself has come out of the chick the tires not on musk stewardship of Twitter, but on whether he's breaching his duties to Tesla and Testla's shareholders. On some level, it speaks to the complexity of the situation that he's in.

You know, when you are so heavily connected to two companies that are not in the same industry that maybe in some cases working a cross purposes, it's going to be hard to stay out of regulator site. And that's Columbia Law School professor Eric Tally speaking with Bloomberg's June Grosso.

You can catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading the show at Bloomberg dot com, Slash podcasts, and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal. At blog Go, we have a check of the business headlines, all the news you need to start your day on our two of Bloomberg Daybreak that starts right now.