Bloomberg Daybreak: December 27, 2022 - Hour 1 (Radio)

Plus Democrats called Texas Governor Rabbits actions on migrants of dangerous stunt. I'm Michael Barr more ahead, I'm John stash Our in sports Red Hot, and that's been at nine wins in a row with a win in Cleveland. Mike White is back as the Jets starting quarterback. That's all's trendyhead on Bloomberg Daybreak on Bloomberg Eliving Free 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. Then Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning. I'm John Tucker and I'm Karen Moscow and US stock index futures are on the rise this morning, and we checked the markets all day long here on bloomberg SMP futures up twenty seven points or seven tenths of upper cent, DEAF futures up six tens of upper cent or two hundred eleven points. And as the futures up six tensive upper cent er seventy points ten, your treasury up one thirty second.

You have three point seven four percent. They yield on the two year at four point three three percent. NIMEX screwed oil is up six ten percent or forty nine cents at eighty dollars five cents of barrel comex s called up seven tens per cent or eleven dollars seventy

cents at eighteen fifteen eighty announced. The euro one point oh six five two against the dollar, the yen one thirty three point one nine, John and Karen, As we wait for stocks to begin trading here in the US on this short and trading week, Equities in Asia are higher. China continues to roll back COVID measures and that is boosting sentiment in the region. Let's get the recap from

Bloomberg Daybreak Asia anchor Brian Curtis. In Hong Kong, Asian stocks powered higher on the China news of ditching quarantine rules. Traveling consumer good stocks jumped. It was a risk on day, with US and European equity futures also higher and the dollar lower. Investors also embraced the cooling of a key inflation measure in the United States. Oil and gold also bounced. Indexes of US, Asian and global stocks still remained down about this year. It's the worst annual performance since two

thousand and eight. In Hong Kong, Brian Turtis Bloomberg day Break, Ry Brian, thank you all. And geopolitical news. US China tensions are in focus again. The US is criticizing Beijing's military drills near Taiwan this week. The National Security Council called the exercises provocative and said it will continue to help Taiwan defend itself. Last week, US lawmakers agree to a spending bill that included two billion dollars and weapons

funding for Taiwan. And back here in New York, Karen nasty bout of winter weather has resulted in twenty eight deaths and crippled parts of the state, and now President Biden has approved a disaster declaration in New York. Let's get the story this morning from Bloomberg's Michael Barr. The Buffalo area got at least four ft of snow, and moore is expected today. New York Governor Kathy Hukel, we have been to a lot of wars together, and this blizzard is the one for the ages. Certainly, it is

the blizzard of the century. Those who died around Buffalo were found in cars, homes, and snow banks. Some died while shoveling snow. Buffalo Mayor Byron Brown says they are also dealing with power outages and lack of heat. I'm myself and my family were without power. I can tell you at one point the temperature in our home got down to about forty degrees. It was very uncomfortable. We had to layer up. Mayor Brown says some people have been without power since Friday in New York. Michael Barr,

Bloomberg Daybreak. All right, Michael, thank you are The bad weather across the country is also hitting air travel hard, and we get that part of the story. Live with the Bloomberry. Steve Rappaport, it's Steve, good morning, Good morning, Karen and John. Airlines are scrambling to catch up after a winter storm canceled thousands of flights during the Christmas travel rush. The flight tracking website flight of Where shows

more than twenty hundred flights grounded today. Southwest was the worst hit yesterday, accounting for nearly seventy of the cancelations nationwide. Southwest Senior director Jim McVeigh, as the storm continued to sweep across the country, the cancelations just compiled one after another, and as a results, we end up with flight cruise and airplanes that are out of place and not in the cities that they need to be in to continue to run our operations. McVeigh says the airline is doing

everything it can to write the current challenges. Southwest stock is down about three percent in pre market trading Live in New York. I'm Steve Rappaport, Bloomberg Daybreak, Steve, Thanks and turning back to the markets were closing out the last trading week of a dismal year for equities. SMP is down more than harder hit. His been the tech heavy NASDAG, which has lost a third of its value. Jonathan Gallab is the chief US equity strategist at Credit Sweeze.

I think that this problem that we've had in tech is not a sentiment problem. It's an earnings problem, and it doesn't last for three or four quarters. It last for six or eight quarters. And a lot of these big tech companies that two or three years ago we said they have modes, they're impenetrable, and we talked in those terms. Um, a lot of those companies are are getting closer to total addressable market, whether that's in handsets

or advertising or other things like that. Jonathan gallabat Credit Swiss thinks the resilient consumer will keep the U s out of recession. Well, John once a pandemic Darling. Peloton disappointed investors last month with the holiday forecast that missed estimates. Now it has a plan to help recoup some of those losses. We get the details TROUM Bloomberg's Erika Herschowitz Peloton at least the statement Monday's saying it will begin offering refurbished bikes at discounts of up to five hundred

dollars below new model prices. The price tag on a certified refurbished model will range from eleven forty five dollars. That's three hundred to five hundred dollars below current prices. The refurbished bikes come with the same twelve month limited warranty as the new ones and include delivery and set up. The company's All Access membership is sold separately. Shares a peloton or down this year, Erica Hurwitz, Bloomberg Radio thanks

Erica Shares of AMC Entertainment. They're continuing their slide. This morning they were down another seven percent, enter falling sevent percent on Thursday and Friday. The company is proposing to convert preferred equity units into common shares, along with a ten to one reverse stock split. Well, the price of oil also on the rise this morning. John China has taken more steps to unwind it's COVID zero policy, which

could increase demand. Straight ahead, we have your latest local headlines, plus a check of sports, and this is Bloomberg the Boomberg Weather for it today becoming partly study the high temperature topic out at about thirty five degrees time. Down for a look at some of the other stories making news in New York adds around the world, and for that we're joined by Bloomberg's Michael Barr Michael, good Morning,

Good Morning John. Representative Elec George Santos of New York admitted that he lied about his job experience and college education during his successful campaign for a seat in the US House. In an interview with The New York Post in w ABC radio, the Long Island Republicans said, my sins here are embellishing my resume. I'm sorry. A lot of people overstayed in their resumes or um twist a little bit, or ingrandjate themselves. I'm not saying I'm not

guilty of that. I'm just saying I've done so much good work in my career. The New York Times raised questions last week about the life story that Santos had presented during his campaign, including that he had worked for City Group and Goldman Sachs. Neither company could find any records verifying that. In Connecticut, the twenty two year veteran of the North Haven Fire Department has died from injuries he sustained while working ablaze at a four family home.

The department identified the firefighter is forty six year old mattheist Wortz. The Connecticut State Police are investigating the cause of the blaze, which displaced thirteen residents on Christmas night. The Biden administration is accusing Texas Governor Gregg Abbot of endangering lives all in the name of politics. Three buses of migrants traveled from Texas and were left in the

bitter cold outside Vice Presidents Kamala Harris's official residence. Ukraine's foreign minister has said that his nation wants a summit to end the war, but he doesn't anticipate Russia taking part. The Metro Kuleba says that his government wants a peace summit within two months at the United Nations with the Secretary General Antonio Gutera as mediator. Every war ends as a result of uh the actions taking at the battlefield

and at the negotiating table. But the balance of what will be one on the battlefield and what will be one at the table it remains to be seen. Foreign Minister Calai But also told the Associated Press that Russia must face a war crimes tribunal. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists, analysts more than a D twenty countries. Michael Barr and this is Bloomberg, John, Michael, thank you, And it's a five a way to Wall

Street time. But the sports were court being brought to you by your trime state. How do you dealer a good morning? John Stashour, Good morning, John. The Jets have four quarterbacks. They've used all four. They started three. Zack Wilson's gone from first string, down to third and up to second, back to first. Now he's back to third string or maybe fourth, and he'll be inactive for the Jets Sunday in Seattle. Mike White has recovered from his

injured ribs. He'll start with Joe Flacco, the backup Jets got. Robert Sala asked where things stand with Wilson. I still think he's got a future here. I still think he's gonna be a really good quarterback. Uh. He just he needs time to just kind of sit back and continue the development that we're trying to rekick start, if you will, after the New England game. But I still have him in our future, in our in our plans. This runs contrary to report on Fox that the Jets have decided

to move on from Wilson after this season. The Colts with their third different starting QB and one time Super Bowl hero Nick Bole through three interceptions, the Chargers won twenty to three. That clinches a NSC wild card for the Chargers. So there's one a FC spot remaining with Miami leading the Jets, Patriots, and Steelers by one game. Dolphins QB two A ton of alowas and concussion protocol as he was earlier this season, the Giants were walking

last night. They host Indianapolis on Sunday. A Giants win and they're in the playoffs. Denver four and eleven just lost by thirty seven. The Broncos fired coach na Fandel Hacket. Ninth straight win for the Red Hot Nets. Both Kevin Durant and Kyrie Irving scored thirty two and seventeen win at Cleveland that has the Nets only two games out of first place in the East. Nick looked in the three games lusing streak. Tonight there in Dallas, the Rangers

home for Washington. The Islanders host Pittsburgh and Seaton Hall is a big East game at Marquette. John stashually were Bloomberg Sports, John, all right, thanks so lun John and the Bloomberg Sports Report, brought to you by Audie. Don't let someone else drive off of the Audi model you've always wanted to visit your local try state Audi dealer to get behind the wheel of yours today, or visit

Autie Offers dot com for more information. Ahead of the market opened on Wall Street Dow futures right now there are up two D fourteen points, the ruse of about seven tenths of a percent, smp emanate futures twenty seven points higher, and that as that e many futures are seventy points higher. Volatility index the VIX slightly elevated at six.

You're listening to Bloomberg Game Break live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius examp of Bloomberg Business app and Bloomberg dot Com. This is Bloomberg Daybreak and good morning. I'm John Tucker. Let's take a moment now to look at

the outlook for European banks in the New Year. Two was a year dominated by central bank policy impacting financial services companies all across Europe and the world, and it looks like we could see more of the same in the new year. Inflation and energy dominate the debate in Europe, and both our top mine for the CEO of a sock Jen Bloomberg, Dandy Burger, sat down with a conversation with fred De Kudea to discuss the outlook for sock Jen and the banking industry as a whole. So let's

listen in now to that conversation. Are you concerns that as we look at the likelihood of a European recession, that this is a reap eat of two thousand, repeat of Fuche where they're going to have to hike into a recession and then quickly turn around. And I'm more positive, and our central scenario is a kind of yes, slow economy because of the increase of interest rate, but not a recession like the one we experienced into thousand and nine. First of all, for the starting point is pretty good.

The we just see no deterioration of the cost of risk. The financial sector is in good shape able to finance the economy. So yes, the central banks want to fight against inflation, it makes sense, But I think we are seeing at this stage some signs of slow down of the pace of inflation. I'm sure that the central banks will carry on monitoring all the parameters and the economies to to caliber rightly their monetary policy. What is being done is needed. But again I don't think that we

are facing the same kind of singer. There's a lot of uncertainty. External shocks can create the problem, let's face it. But in the absence of an external shock we are having, mind a slowdown. But which is that we can absorb? So what sort of shock are you concerned about? What we hit the level of changing things for you to erase that optimism, you know, geopolitical crisis, an evolution of

the conflict in Ukraine. Just if you wish the way we will fare the winter and effectively with perhaps hope free temperatures which are okay, which we mean reserves, gas reserves being preserved as much as possible will help for the next twelve months in terms of gas prices. So there are many parameters which can play a role in the in the invlation. Wage evolution. Also at this stage I see also companies which are trying to avoid entering into a cycle where wages are increasing too much, so

they want to preserve the future. So again every every month where we'll see how it goes. What about corporate Europe, do they have the strength to sustain again the wage pressure, these cost pressures. But at the same time, as we're discussing an e CV which continues to hike interest rates so higher the cost of capital becomes higher. In corporate Europe, we stand that overall, yes, I think so. Of course there will be differences. Some companies will not make it,

depending on their leverage, their competitive position. But so farward I'm is seeing is actually companies on one end which have been able to adapt. Look at the evolution of the consumption of electricity or even gas. They are making progress under the pressure to reduce their they are the usage of facite energy, they improve their efficiency. Most of them also, I think, have been able to pass in their prices the increase of the cost of and j wages.

So again, that's where it's very important in my mind to see whether we are entering and cycled and normally progressing normalization of inflation, and I think it should be fine or unfortunately, yes, inflation stays, and then it might be more difficult because at some point the consumer will not be able to absorb the price increase. So jury is out. The coming months will be critical, but there

is a path for something which is manageable. I think these coming months are also going to be some of your last at sock Gen. I mean you've now seen the longest tenure of of any banking chief in Europe. As you prepare for this economic environment, You've had to prepare the bank for a lot. What does preparation look

like this time around it? As you get ready to step down from the from the helm, well, I must say, my short term agenda is precisely to ensure that that we live a bank in good shape to my success, what does that mean? Complete the job in terms of strategic project. Because this product jacks the merger of our two French networks, The acquisition of this plan will bring benefits which are independent on the economy. On the economic cat look, we will bring the Scenergy's revenues in cost

whatever the environment is. It's a way to of course reinforce the business model. The second element, of course, is to ensure that we are entering this and certain environment with the maximum of provision. We will end up to and twenty two with a level of excente provision within our jargon you know as one as two higher than the peak of the covet. It's a scient A general CEO Frederick o'deo speaking with Bloomberg Stanley Burger is not looked for the new year. You can cage the full

conversation online at Bloomberg dot com. Five eighteen of law Street and still in a Bloomberg daybreak, we check on markets and bring you the latest the business, economics and finance. I'm John Tucker. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Outland at Bloomberg Quick Tape. This is a Bloomberg Business lash And I'm Karen Moscow along with

John Tucker. And equities are arising with a dollar declines, a maid positive sentiment from China's rollback of COVID isolation measures and the cooling of a key inflation gauge in the US. And we checked the markets all day long here on Bloomberg with SMP futures up about twenty eight points or seven tenths of uppercent. Down future is up about seven tenths of upper cent or two hundred nineteen points and Nasdack futures up six tents of uppercent or

seventy one points. The decks in Germany's up sixtents of uppercent ten. Your treasury up one thirty second. You have three point seven four percent. They yield on the two year four point three three percent. Nimex screwed oil is up about nine tenths of upper cent or sixty eight cents at eighty dollars twenty four cents of barrel comics gold up seven tents of upper cent or eleven dollars seventy cents. Eighteen fifteen eighty announced the euro one point

six six one against the dollar. British found one point to zero six three, and that's a bloomberg business flash Shall Here's Michael Barr with more on what's going on around the world. Unchael, Good morning, Good morning, Karen. President Biden has approved New York's emergency electoration as the death toll from a pre Christmas blizzard that paralyzed the Buffalo area and much of the country has risen to twenty eight. The dead have been found in their cars, homes, and

in snow banks. Meanwhile, thousands of flights were canceled or delayed, and more are scrapped for today. South Korea sent drones across the border into North Korea. It's an unprecedented tit for tat military move after Kim joan UN's regime dispatched five unmanned aerial vehicles into its air space. Monday night football, the Chargers beat the Colts twenty three in the NBA.

The nets one Global News twenty four hours a day on air hand on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than twenty countries. Michael Barr, this is Bloomberg, John, Michael, thank you. It is now five twenty three on Wall Street. I'm John Tucker. This is Bloomberg Daybreak. The stocks are getting a boost this morning, and where that China is removing its last

COVID restrictions. Let's take a deeper dive into this story this morning with Bloomberg reporter Alan Juan, who joins us this morning from Shanghai. Alan, thanks for being with us, appreciate it. What can you tell us about what China is doing? From January eight, China is no longer going to require inbound visitors to quarantine at the hotels anymore.

I mean, basically, it's getting rid of policy that's curb travel, hurt economy, and left the country actually from the rest of the world that's said, it's still going to require travel arrivals to to show negative PCR test results taken within forty hours of departure. But you know something that's nothing competible we have right now. I mean, right now it's like about five days of the whole took quarantine

and another three days at a home monitoring. UM. I myself, I've done two long quarantines after leaving China coming Act one for fourteen days and one for ten days, and I tell you it's it's pretty brutal. So I'm actually looking forward to this change in policy. This mean COVID, uh the outbreak has gotten better in China or the government's just throwing in the towel. Now the COVID is not getting better, um and maybe Peaking and Beijing, Shanghai,

we're still in the midst of it. Uh So right now we're giving about three or four thousand, officially three or four cases of the day, which sort of flies in the face of everything we're seeing on the ground and what some of the provinces of reporting like, for example, Judge and Province, which is actually Shanghai, reported one million cases and expects another million more before it peaks. And

what we do. What we also know is that about the eighteen percent almost two and fifteen million people have already been infected and acts according to the China's National Health Commission. UH this was for the minutes of one of their meetings. Have they given in any indication that they could go back to the restrict of COVID policies? No, I I think it's over. I did. China has dismantle the whole apparatus right now, you know, there's I'm just

I'm stunning how fast everything has occurred. Right now, there's no there's no longer a need to get any kind of PC artists, and even if you want to want to get one, it's kind of hard to find. I think we've gone in the other direction, which is basically, UM, you know, let it fly. Yeah, Well, what next at this point? I mean, they're still doing monitoring, are they not? UM? You know, China is UM. You know, they're they're trying

to mitigate some of these UM. Illnesses and deaths right right now, they're they're downgrading the management of COVID zero from highest level to the second highest, meaning that they're they're they're saying that COVID isn't as bad as people think people initially thought as being treated now more like

the flu or some of some kind of cold. But they're also pledging into increase I see you beds, increase the supply of a life saving equipment like ventilators, and also they're going to retrofit some of these quarantine for quaranty of facilities. It's the hospitles that can handle COVID patients. Hey, what has been the the overall impact on the Chinese economy? Only get like twenty seconds left, Okay, it's been it's

been horrendous. I mean, right this year, a lot of economists estimated growth roughly, which is like on the lowest in decades, and normally you get about you know, five six five percent every year, and that's what they're predicting. Connection or more so, it's been devastating for the economy. It's been devastating for a lot of businesses that had to sort of impose these closed loops in order to come up business and most importantly you know it's it's

it's her summer sentiment. Okay, Alan, We're gonna have to leave it there, Bloomberg's Alan wand thanks for joining us from Shanghai just to hand top stories. But first a look at the Bloomberg weather for like cloudy, this will be drifting through the Tristead area for while this morning, but eventually it moves out him will see sunshine developed later in the day. Temperatures will be close to thirty five tonight, generally clear, sky slows overnight thirty Tomorrow we

should be mostly sunny. Hi's reaching partly cloudy thirty to thirty five tomorrow night, turning mile their Thursday, but sunshine has a reach forty five to fifty. I'm Rob Carolyn with your three day forecast on Bloomberg eleven three oh broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C, Bloomberg ninety one to Boston, Bloomberg one O six one does San Francisco, Bloomberg sixty to the Country Sirius xm ch A one

nineteen and around the globe. The Bloomberg Business app and Bloomberg Radio dot com. This is Bloomberg Daybreak and we are coming up to five thirty on Wall Street. Good morning, I'm Ter in Moscow and John Tucker. We're being brought to you by your daily reminder from Innovation Refunds to apply for a payroll tax refund if you're smaller and 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 we're just about four hours away from the open of US trading. Let's get you have to date on the news you need to know at this hour. US features and stocks overseas are higher this morning. The boost and sentiment comes as China scraps more COVID rules now, Beijane plans to and it's quarantine rules early next month. Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong. This marks

the end of China's three years of COVID isolation. People arriving in China will only need a negative COVID test within forty eight hours. Of departure. Up until now, arrivals had to quarantine for eight days. The government said it would handle visa applications for foreigners for everything from business and study to family reunions, and outbound tourism will also resume quickly. This could be very good for Europe and other destinations. Travel and consumer good stocks jumped in Hong Kong.

Brian Curtis Bloomberg Gay Break thanks Brian Stocks and Shanna Game more than one percent overnight. That's giving a lift to US futures as we closed out the last trading week of the year. It's been a dismal two for bowls with the SMP nive hundred downboard. But Credit Squeez, the US equity strategist out that gallup seems a rebound

for next year. If you do have oil lift off and then you actually get some upside in the more commodity sensitive stuff like the MP name and the service names, the sector is going to be a really big surprise. It's absolutely topic. That's Jonathan Gallub at Credit Sweez. He predicts the SP five will close ATTI next year. Well, another major story we're following this morning, John the bad weather continuing to hamper air travel across the country. We

get the latest live at the Bloombergy Steve Rappapore. It's Steve, good morning, Good morning, Karen and John. It's a good thing Sam it doesn't fly Southwest, Otherwise he may have never left the North Pole. The account the airline accounts for roughly sevent of cancelations nationwide yesterday. Southwest stock is down about three percent in pre market trading. Senior director Jim McVeigh explains the storm caused a ripple effect, leaving

the airline to play catch up. As the storm continued to sweep across the country, the cancelations just compiled one after another, and as a results, we end up with flight crews and airplanes that are out of place and not in the cities that they need to be in to continue to run our operations. McVeigh says Southwest is doing everything it can to write the challenges it faces. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you. The price of oil is on the rise

this morning. China has taken more steps to unwine it's COVID zero policy, which could increase demand and freezing weather across the US has led to refinery closures in the Texas Gulf Coast area. Checking oil right now and I'm nex screwed. Is up one straight ahead your latest local headlines plus a check of sports and this is bloom work. Thanks scaring one wall streets. Time to bring in Michael

Barr with more. What else is going on in New York cans around the world, Ton, Thank you very much, Sarah. President Biden has approved a state of emergency as a winter nightmare continues in western New York. At least twenty eight people have died in the Buffalo area. New York. Governor we still have scores and scores of vehicles that were abandoned when people left during the storm. Governor Cathy

Hoco called it the blizzard of the century. Representative elect George Santos admitted he did not tell the truth about his job experience and college education during his successful campaign for her House seat. The Long Island Republicans spoke in an interview with City and State airing on ABC seven about questions on his campaign website that he was Jewish. I owe his joke. I'm Catholic, but I'm also Jewish.

Uh and I've made that joke is growing up. I grew up fully aware that my grandparents were Jewish, came from from a Jewish family, and they were refugees to Brazil, and that was always the story I grew up with, and I've always known it very well. Santos says he campaigned talking about the people's concerns, not his resume. The Biden administration is calling out the governor of Texas, saying

it was a cruel and dangerous stunt. Bus load the migrants arrived in Washington, d C. On Christmas even sixteen degree weather without warning, at the official residents of Vice President Kamala Harris. Ukraine's foreign minister is calling for a peace sumone at the u N to end the war. Dmitro Culeba, speaking to the Associated Press, as the summit should be with the u N Secretary General as mediator.

We think that the best the United Nations could be the best venue for holding this uh this summit, because this is not about making a favor to a certain country. This is really about bringing everyone on board. Foreign Minister Kalamba Global News twenty four hours a day on a rand on Bloomberg Quittake powered by more hundred journalists and analysts more than twenty countries. Michael bar this is Bloomberg, John, Michael,

thank you. It's now four of Wall Street time for the Sports Report being brought to you by a tri state out of the Hank Morning once again to John Stashower. Good morning John. Earlier this season than nets where I mast started one in five, nine and eleven, they fired the coach, that was the whole, Kyrie Irving solo with the that's just one of Cleveland one seventeen, both Kyrie and Kevin Durant scored thirty two points. They combined to make twelve of nineteen three pointers of the nets of

one nine in a row thirteen and fourteen. Their coach, Jacques Vaughn. We came back as a group, we kind of classed to each other that it was going to be about basketball and um, hopefully not let anything interfere any outside noise, uh interfere with that. And our guys have done an unbelievable job of protecting each other and making this thing about basketball. That's way tomorrow. Atlanta Nixer in Dallas Tonight Monday night, football Chargers beat the Colts

twenty to three. L as in the playoffs. One spot left in the a f C was slumping Miami, leading the Jets, Patriots, and Steelers by one game. The Dolphins visit the Path Sunday, Miami QB two A ton of below is back in concussion protocol. The Jets Sunday visit Seattle. Mike White returns as starting QB is injured, ribs having hell. That's also a big game for the Seahawks. We're trying to make the NFC playoffs, as are the Giants. They

are in where the home win Sunday over Indianapolis. Daniel Hackett, unable to complete his first season as coach in Denver, fired with the Broncos four and eleven. The hold up in the Carlos Korea contract is an injured ankle that dates back to two thousand and fourteen. The mettre said to be trying to restructure the deal make it not all guarantee. The feeling is Korea will still become a John Stashward Bloomberg Sports done all right, Thanks so Lane

right now. DALLA futures up two hundred twenty eight points, SMP futures up eight, but NAK futures seventy two points higher. This is Bloomberg. The Bloomberg Sports Report was brought to you by Audie. You don't let someone else drive off of the Audi model. You've always want to visit your local Try and State Audie dealer to get behind the wheel of yours today, or visit Autie Offers dot com

for more information. It is now five thirty six down Wall Street, time for the Bloomberg Tri State Business Report. Here with that is Gina Servetti. The former Wellington Hotel is reportedly changing hands. The New York Post reports that Xtel is paying more than ninety four million dollars to buy the leasehold of the former Wellington from b D Hotels, and that plans might include a significantly larger building for the site at Seventh Avenue and West fifty five in Manhattan.

Lions Gates new million dollar production studio for Newark could be in line for as much as a hundred million in state subsidies. That's what the Asbury Park Presses reporting, saying the incentives are part of a development deal approved

last week. It's New Jersey's second major movie and TV production project getting the green light this year, following Netflix, which plans to build a new studio at the form or side of Fort Monmouth, and New Jersey based Harbor Freight Tools already has more than th hundred locations around the country. Now it's expanding further in its home state. And j dot com reports the family owned hardware chain will open a new store in Deptford, bringing its New

Jersey store count to almost thirty locations. That's the Bloomberg Tri State Business Report on Genus Servetti. All right, thanks seven on Wall Street Time down for the Bloomberg Green Report, and well that here's Bloomberg's Jeff Bellinger. The days of so called forever chemicals, or PIFAs are numbered at three M. The big conglomerate is dealing with regulatory pressure and lawsuits

over the substances. It announced last week that it will stop making the chemicals and discontinue their use in products by the end of the move by three marks historic break with an entire class of chemicals that were first created in researching the atomic bomb during World War Two. They helped three M develop hundreds of different products over more than seventy years. Now, things such as Scotch guard, fire fighting foam and other products are potential liabilities for

the company. Three M CEO Mike Roman acknowledges increased customer unease over p fos and says the company does not see a viable business in the future. He says the decision will allow three M to move into other higher growth opportunities. He says it is too early to discuss whether plans that manufacture p fos will be repurposed. Jeff Bullinger, Bloomberg Radio. All right, thanks a lot, Jeff, and we have green on the screen ahead of the cash open

on this Tuesday morning. Down futures right now two points that's a rise of about seven tenths of a percent this morning. And the SMP emniate futures twenty eight points higher, that's up seven tenths of a percent. The NASAK futures right now seventy one points higher, that is up six

tenths of a percent. And stay with us. Just ahead, we'll get a preview of the trading day ahead with Sam Stovall, the chief investment strategist at c f r A. This is Bloomberg Markets, headlines and breaking news twenty four

hours a day at Bloomberg dot com. The Bloomberg Business at and at Bloomberg quicktape, this is a Bloomberg business lash and I'm Karen Moscow at US not Index Futures on the rise this morning amid optimism that China's reopening will boost global growth next year, providing support for Marcus.

And we check the markets all day long here on Bloomberg S and P Future is up about twenty eight points or seven tenths of a percent, and down features up about seven tenths of upper cent or two hundred twenty four points, and now as day futures up six tenths of upper cent or sixty eight points. The decks in Germany's up seven tenths of upper cent. Ten year treasury up one thirty second, held three point seven four percent. They yield on the two year four point three three percent.

Nimex screwed oils up one point one percent of eighty six cents at eighty dollars, forty two cents of barrel Comics gold up seven tenths of upper cent or twelve dollars at eighteen sixteen announced the euro one point oh six x three against the dollar. British found one point two zero six two The gains at one thirty three point three too. And bitcoin this morning is a tenth of a percent. It's at sixteen thousand, eight hundred fifty

six dollars. And that's a Bloomberg Business flash. Now here's Michael Barr with Moore on what's going on around the world. Call Karen, thank you very much. The death soul from a pre Christmas blizzard that paralyzed the Buffalo area and much of the country has risen to twenty eight in Western New York. The dead have been found in their cars, homes, and in snowbanks. Meanwhile, President Biden approved an emergency doctloration

for Western New York. The Biden administration criticized Beijing's military drills near Taiwan this week as provocative. It insists it will continue, hoping the government in tai Paid defend itself. Monday Night football, the Chargers beat the Colts three in the NBA. The NETS one Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven journalists and analysts more than a hundred twenty countries. Michael bar this is Bloomberg, John, Michael,

thank you. Or the smp F I've had. It is on track for its worst annual performance since two thousand and eight. It's the last trading week of the year. Futures right now are climbing, and let's get you set up for the trading day head now with Sam Stowball, the chief of investment Strategist at c f R. A honor to have you Sam. Good morning, Um, Good morning John. With history as our guide, is uh Santa Rally still

in the currents? Sure, the Santa Rally has come into existing of all years since World War Two, causing the SMP to go up by about one point three percent. So I would tend to say that, based on Friday's action, based on today's futures, that we have a very good chance of if Santa Claus Rally. Where do you suppose we're going to end the year in terms of percentage

gains or I should say percentage losses for the broader index? Well, it's still gonna be UH one of the ten negative years going back to I looked to because that's when SMP started computing its sector level indices. So it will end up being most likely the third worst year behind two thousand and two and two thousand and eight. Uh. And interesting, this is the only year since two thousand and two in which we had one sector that was

positive and everybody else negative. What sector was that? That was real estate back in O two of four point one, very different from energy of more than fifty percent so far this year with every other sector in the red. And if there's a positive that can be taken from this is that the S and P was up nearly twent in two thousand and three. Um. Does negative sentiment

change simply because we turned the calendar to a new year? Well, I think you you do get some return to a more positive sentiment because in a negative year, you're going to have a lot of tax loss selling, and so if you continue to see a lot of red, then I think that adds to the dampening effect of market performances,

which then adversary effects his confidence. So I would tend to say that, you know, if we start two thousand and twenty three on an up note, then I would tend to think that that could help to buoy the sentiment. Will earnings be better than feared? Well, good question. I think the number is Uh. The SMP has in the last fifty two out of fifty three quarters has posted

actual returns that exceeded end of quarter estimates. The only difference this time is that we are looking for an earnings recession, because the fourth quarter of two thousand and twenty two, as well as the first two quarters of three, are expected to post year on year declines, and historic looking at operating earnings, they have been coincident with the start of recessions, whereas with gap earnings they've been a bit of a lag. So an earnings recession, can you

still have a positive year? Yes? Actually, a lot of studies have shown that when earnings zag, the market tends to zig. The recent being that investors are forward looking uh and they are looking across the valley. Expectations are we could see earnings up by ten point three percent in the fourth quarter of two thousand and twenty three, and then up by more than ten percent for all

of two thousand and twenty four. So I think there is a good possibility that once we get past the undulations of the first half, that we do end up

with a positive two thousand and twenty three. Can you further break down some of the sectors and the expected performance that you're looking for, Well, looking for pretty good earnings growth for the consumer discretionary category, one of the areas in which we're expecting to see double digit games, whereas energy, not surprisingly is expected to post double digit losses.

UM or I should say, really year on your declines, they're still going to post earnings, but the percentage change year on year is expected to be down, primarily because they're up by about a hundred and six in two thousand and twenty two. So really sort of a hodgepodge of of where the earnings growth is likely to be seen. And we all know the mess that we saw with tech this year. Have the moats around some of those stronger tech names have they been removed? Well, maybe not removed,

but certainly drained a little bit. UM. I think it's more a question of the enthusiasm, not necessarily the moat that has been drained. A lot of these companies still, um are very strong in what they do. Uh. The question is how much are investors willing to pay for them? I mean, this wasn't like two thousand in which investors thought that trading at sixty times forward earnings was still attractive. UM. I mean we're looking at technology, which is trading in

the mid to low twenty multiple area. Now, UM, so in two thousand and twenty three, tech is expected to post only about a three percent earnings increase versus a similar number for the SMP five hundred. It says, I mentioned before discretionary financials and industrials that are expected to post double digit advances. Hey, Sanford, your perspective was sort of the poster child for active management. Well, poster child

maybe in a negative way. UM. If you go to uh sp d j I dot com that's the SMP Dow Jones indices, you'll see their SPIVA report SMP index versus active UH and find that the indexes consistently outperform UH the active managers UH, certainly on a large cap basis, but also mid and small cap as well. So it's it's certainly been a very challenging period for the active managers.

And just about the minute left, UH, I want you to put your account of his head on among the data this week, initial jobless claims Thursday, Waiting for the Fed, Um, are they going to have to torpedo the jobs market until we can signal all clear for for risk assets? Well, I think we're gonna see the SMP K Schiller Index come in UM lower than last time. I think that we're we are going to be UM looking at jobless

claims UM come up a bit more. I think the Fed is going to be looking at two pronged primarily looking at the PCE core, the personal consumption expenditure ex. Food and energy, because that's their primary read on inflation, and at the same time hoping that they don't do too much damage to the employment picture at the same time, so their focus is inflation, but they hope there's not a lot of collateral damage. Where does SMP five hundred

and the spot here? Yeah, is our estimate UM based on c fr A analysts, target price differentials and some technical considerations. UM. Tough first half and a better second half. Sam, always a pleasure. Thanks very much for joining us this Tuesday morning. Sam stove All the chief investment strategist at c f r A, And right now I had a market open down futures of two SMP five hundred futures

right now. Up, you're listening to Bloomberg Day break, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com and Bloomberg Business Outland at Bloomberg Quick tap. This is a Bloomburn business lass and I'm Karen Moscow along with John Tucker, and futures are higher this morning. We checked the markets all day long here on Bloomberg with SMP futures up about twenty seven points or seven

tenths of upper cent. Futures up about seven tents of upper cent or two hundred twenty four points, and NASDAG future is up six tents of upper cent or sixty two points ten. Your treasury up one thirty second. You have three point seven four percent and they yield on the two year four point three three percent. Nine X screwed oil is up nine ten percent or seventy cents, and eighty dollars twenty five cents of barrel comex gold

up seven ten percent or two dollars thirty cents. At eighteen sixteen fifty announced the euro one point six six four against the dollar, the en one thirty three point three zero, and that's a Bloomberg bus this flash John all right, Karen, thanks a lot five fifties six on Well and Street time for our daily Bloomberg Lawbrief, exploring legal issues in the news today we're looking at the Supreme Court when justice has returned to the bench in January,

if they're going to hear a case involving a Turkish bank owned and controlled by the Turkish government, that maybe President Setting Turkey's hoalk Bank is asking the justices to dismiss criminal charges against it stemming from an Alige scheme to help Iran evade economic sanctions by diverting billions of dollars in oil and gas revenue. Ever More, in the case Bloomberge June Grasso speaks to Harold Crante, professor at the Chicago Kent College of Law. I'll explain why this

case could be precedent setting. So the turkys Pake evidently helped launder somewhere close to twenty billion dollars of Iranian oil assets in contravention of our laws against doing business with Iran, and so criminal charging robotic. It's the bank here in the United States because some of the laundring

took place within the US financial system. There has never been a criminal action brought against a foreign state owned enterprise in our history, and this was really the first one, and the second Circuit held that there's no law immunizing a state owned bank for its commercial activities. The way there would be to protect the state diplomat, and so

the criminal charges could go forward. So this is really unprecedented and it's a major change which we have ripple effect around the world because usually we treats foreign governments, whether they're doing commercial activities or not, in a very special way. We have a whole statute of the Federal Sovereign Immunities Act which limits when you can even sue

state owned enterprises. But this would be saying that, well, Congress didn't say you can't have a criminal action against a state owned enterprise, and so now we have the first one and we'll see if the Supreme Court, let's just stand. My guess is that it will. But who knows what's turkeys argument for why the bank shouldn't be prosecuted.

First of all, it's unprecedented that there has never been this kind of action, and they're extrapolating from the diplomatic precedents would suggest that there is diplomatic immunity for its officers, and Congress has seen to fit that we cannot prosecute diplomats for ordinary crimes, and so they're suggesting that the

danger would be that the state owned enterprise. You basically end up limiting the kind of functional immunity that's given to the members of different countries who may be directors on the bank or maybe their relatives are working in the bank, and so this would chip away at that kind of immunity. Why do you think the Supreme Court

is going to allow the prosecution to go forward? Congress didn't precruited, and in the absence of Congressional statute from the court, we have to rely upon some other kind of analogy, such as diplomatic community to stop the prosecution and and to stop the prosecution of a bank for its commercial activities seems pretty far stretch from stopping a prosecution from a dimple match who has been accused of

a hidden run or some other criminal offense. And that's Harold Crant, a professor at the Chicago Kent College of Law, speaking with Bloomberg's June Grasso. He 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 b law go SMP futures twenty six points higher, and that our futures up two hundred twenty. You're listening to Bloomberg day Break.