Bloomberg Daybreak: December 28, 2022 - Hour 2 (Radio)

dig out from the Blizzard of the Century. Plus new details from the January six panel on Rudy Giuliani. I'm Michael Barre Ahead, John Stash Howard sports an amazing knife for Luke and Donston's he led Dallas to an overtime will over the next the Islanders won the Rangers long.

That's all straining Ahead on Bloomberg day Break on Bloomberg Elving Free on New York, Bloomberg ninety nine one, Washington d C Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the World Old on Bloomberg Radio dot Com and via the Bloomberg Business app. And good morning. I'm John Tucker and I'm Karen Moscow. US Dock index futures are now

on the rise this morning. We check the markets all day long year on Bloombergs, and P futures are now adding to their gains up eight points or two tens of up percent. DAL futures have a quarter percent or ninety one points and NASDACK futures showing strength up to tens of uppercent or eighteen points. The decks in Germany as it will change ten. Your treasury up five thirty seconds, you know, three point two percent, and the yield on

the two year four point three percent. John and Karen, we're gonna begin with the latest on Southwest travel problems. The CEO of the yourline now issuing a public apology, Bob Jordan released a video statement and to Southwest once

again canceled flights across the country. I want everyone who is dealing with the problems we've been facing, whether you haven't been able to get to where you need to go or you're one of our heroic employees caught up been a massive effort to stabilize the airline, to know is that we're doing everything we can to return to a normal operation. Southwest that you know, Bob Jordan's says the airline that is optimistic it's going to be back

on track before next week. Well, John, Southwest is responsible for almost three quarters of flight cancelations in the US, and that's drawing ire from government officials. Bloomberry. Steve Rappaport joins US Live with the details. Steve, good morning, Good morning, Karen and John. Southwest and the White House agree on

one thing, the mass disruptions are unacceptable. But as the airline attempts to catch up, Transportation Secretary Peat Boutagage wonders why the competition had a much easier time recovering from

last week's storm. This weather event affected everybody, and we understand that you can't control the weather, but there is no satisfying explanation for why all of the other airlines are recovering and moving in the right direction while Southwest is still as we speak, canceling a majority of their flights. Today's travel forecast has more of the same. The flight tracking site flight Aware shows Southwest with over cancelations. Live

New York, I'm Steve Rapp Report Bloomberg Daybreak. All right, thanks Steve. Another major story we're following this morning. The White House says he is going to comply with and enforce the Supreme Court's ruling on Title forty two. Bloomberg's ad Baxter has more in this report. Title forty two is a Trump era control on border immigration. It was due to expire when the challenge went all the way

to the Supreme Court. The court says it will stay in effect while that occasion goes forward, potentially into June. So the Biden administration now says it will enforce the rule, although it says lifting it is way overdue. The White House says it will prepare for eventually being able to lift the restrictions and in orderly form, even as it continues to enforce them. Now in San Francisco, I'm at Baxter Bloomberg Daybreak, All right, and thank you all. Some

more details this morning on Donald Trump's taxes. Bloomberg News has learned that years and the former president's tax returns will be released Friday. Key identifying information, such as account numbers, will be blacked out. The documents will be the first complete look at the former president's tax records for the years he was running for office and in the White House man turning the markets Now, Hong Kong was the

performer in Asia overnight. More easing of COVID restrictions self fuel a gain of one of the half percent on the Hanksang Index. Hong Kong is scrapping Levenza public gatherings and no longer requiring proof of vaccination for entry into some locations. The Hong Kong's easing follows China's decision to abandon its COVID zero policy and reopen its borders John and it's now prompting a global response. Countries are considering whether to test or restrict travelers from China. Have you

get more from Bloombergy's island one in Shanghai. Japan was the first to say that it's going to require a negative COVID tests upon o arrival for mainland Chinese residents, but the US is also considering new precautions as well. This is based on concern about a new variant emerging out of China that ever since the Bision announced that is the longer going to quarantine arrivals from January eight,

and that's also going to start issuing passports again. Bloomberg's Island One says, US officials are raising questions about transparency of China's data on the spread of the virus, and back here in the US, futures are mixed too higher right now uh for a down day on Walster yesterday. SMP five hundred has fallen more than six percent this month, almost twenty percent on the year. In Miller Tabak equity strategist Matt Maley says the bear market isn't over yet.

The biggest problem I think that we face is that when whenever the market gets to an extremely overvalued level like it did at the end of two thousand twenty one this time last year, the bear market always lass longer than just a year or so. It's usually last

eighteen months or even a little bit longer. Miller Tabac equity strategist Matt Mayley sees the SMP five hundred going down to at least thirty well so far this year, John Tesla is the third worst performing stock in the SMP five hundred and the tailspin and share shows no sign of abating anytime soon. Share has fell more than eleven percent yesterday, and we get the story from Bloomberg

Charlie Pellett. So far this year, the stock is down sixty nine percent, and with the latest declines that marks their longest losing streak since twenty eighteen. As a report of a plan to temporarily halt production at its China factory rekindled fears about demand risks, Tesla had its seventh straight decline and its steepest one day dropped since April.

The electric vehicle maker's market valuation has shrunk to roughly three D forty five billion dollars, below that of Walmart, JP, Morgan Chase and in video in New York Charlie Pellett, Bloomberg Day Break, Thanks Charlie. Not as hard hit as Tessela an Apple starts the trading day at its lowest level since June of one. Apple has fallen almost twenty seven percent this year on concerns over iPhone production issues,

and again futures are higher. This morning, S and P Future is up about eight points and straight ahead your latest local headlines plus a check of sports, and this is Bloomberg. Thanks. Karen six said on Wall Street. We have thirty four degrees in Central Park. Let's bring in Michael barn Now with more on what else is going on in New York and around the world. John, thank you very much. Officials in New York say state and military police were sent to keep people from driving in

snow choked Buffalo. The Erie County executive says that police being positioned at entrances to Buffalo and at major intersections to enforce a ban on driving. Buffalo Mayor Byron Brown, we have plowed specifically to get people to medical appointments, chemotherapy, uh dialysis. We have done welfare checks for senior citizens and families with young children. Buffalo Mayor Brown says more

than thirty people died in the region. The GOP chairman in New York Congressman elect George Santos District is talking after the Long Island Republican admitted he lied about his personal and professional life during his successful campaign. Run. Chairman Joseph Cairo said that he was deeply disappointed and Santos may have broken the public trust, but says he will carry out the public's will when it comes to tax relief and public safety. Even if there's an investigation in

the House. He would take a two thirds majority in the Republican led House to expel Santos from office. Meanwhile, a new Congress will take power in January. Representative John Katko of New York gave his outlook on what to expect from the Congress. Well, I think the extremes on

both sides. I only know how to vote. Now call the vote now, hope yes caucus and they vote over the hope you pass it for But I think that it's gonna hit natural more give and take with the moderate wing of the Democratic Party because we're gonna have to get things done. Congressman Kantako spoke with the David Weston on Bloomberg's balance of power. We're learning more from

the transcripts of the January sixth panel. The former president's attorney, Rudy Giuliani was in daily content act with Donald Trump between November five, twenty twenty, and January fifty one, as much as ten times a day. That's according to testimony by a former New York Police commissioner, Bernard Carrick. Carrick had been police commissioner during former New York Mayor Rudy

Giuliani's second term. Global News twenty four hours a day on air and on Bloomberg Quicktake powered by more than twenty seven hundred journalists and analysted more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg, John Michael, Thank you guys. Coming up on six ten of Wall Street tigned out for the Sports Report being brought you by a tri state out of dealers, John Stasher and has the update, John Dank Morning, John Nicks went down

to Dallas. They knew they'd have to deal with mav star Luca Donsits. They didn't know. Dons within to night with the greatest triple double in NBA history, sixty points, twenty one rebounds, tennessis and heroics at the end of regulation when he went to the free throw line the MAVs down to four seconds left. He us the free throw on purpose, got the rebounds, scored the tying basket, Dallas one, and overtime one. They had trailed by nine

with thirty seconds left. Nis were shorthanded due to injuries of Jalen Brunson and r. J. Barrett. At the Garden, Rangers shut out for the second time. Washington won for nothing the Ubs Arena. The Islanders beat Pittsburgh five the one. Two goals were both Landers Lee and Matthew Barzel. Marquette beat Seaton Hall eight three sixty nine, drops the Pirates to oh and three in the Big East. Big game for the Giants Sunday against the Colts who are again

gonna start Nick Foles at quarterback. He just threw three interceptions. It's the home finale for Brian Bay Bowls team. We worked extremely hard each week to to put a good product on the field, and um, you know one of the reasons is, you know, for our fan base. Um so too. You know, play at home, Um in late December, an important game. Um, you know, it's it's important to us. I know it's important to them, and we'll do everything

we can do to be ready to go. Yeah. Game, Actually not late December, it's January one the Giant when they're in the playoff. J. J. Watt will play two more games for Arizona and then retire at age thirty three. Three time Defensive Player of the Year while with Uston, Wat to lock some day for the Pro Football Hall of Fame. John Stash Bloomberg Sport John, all right, thanks for lunch on and the Sports Report brought you by Audie. Don't let someone else drive off on the Audi model.

You've always wanted to visit your local try and state Audie dealer. Get behind the wheel of years today or visit Audie Offers dot com for more information. And as we look ahead to the open, up today's trading Dow futures right now point to a higher open eighty nine points higher right now, that is a three tens of percent. The smp Emuni futures eight points higher. They're up to tens of percent, and then I sa Emuni futures. They've

been fluctuating between gains and losses all morning long. Right now they're up about nineteen points, arise of about two tenths of eight percent, and tend your treasury yield three eight two. You're listening to Bloomberg day Break live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius, example of Bloomberg Business app and Bloomberg dot Com. This is Bloomberg Daybreak, and good morning. I'm John Tucker. It is the final

week of a dismal year for markets. Global equities have lost about a fifth of their value This is the largest decline since two thousand and eight on an annualized spasis also an index of global bonds that has slumped sixteen percent. So now what We're joined by Linda Distll, the Federated Herme's senior vice president and senior equity strategist. This morning gets you set up for the trading day hand the final trading day of two Hey Linda, thanks for me weather US appreciate it. At the end of

the day, it's all about earnings. Is earnings growth adequately priced in? As we start the new year? Uh well, Hi, good morning, John, and happy new year to you and to all your listeners. Pleasure to be on. That's what's gonna make it very interesting next year is what is going to happen to earnings. They've been going up steadily for years. Here consensus thinks that they'll go up again.

If if it's I's SMP earnings this year is about two dollars per share, then the consenus, which has been coming down is at last I checked, two hundred thirty four dollars. This is very tricky and very tricky then to figure out what next year will be like for the market, because we had Federated Hermes actually think to thirty four is way too high. We think Earnie's will go down maybe ten or twelve percent next year, and that is definitely not priced into the markets. So we're

kind of barished going into the new year. Um So do you see selling a hand of forst selling, especially given some of the margins well selling has been you know, has been increasing here in the back piece of this year. Uh. Earlier this month, I think we dine. I think we were done like nine percent from fort We were at forty not that long ago. Uh, and so we had a nice pullback. It's in a short term basis. You

could still get that Santa Claus rally. Santa Claus could still come even if he comes after the new year hits, because you've pulled back so much. In fact, the S and P for the quarter looks like it's going to be the second best quartersince n So basically all kinds of cross currents going on, and why we haven't had that pick up already for the Santa Cross the rally may have something to do with tax loss harvesting, which is kind of the silver lining that we're telling our clients,

you know, might as well. Do it's been horrible year. Just as you said on introduction, just about everywhere you went to, no place to hide. That can get some things out of the way. So maybe then our Santa Claster rally comes at the very beginning of the year. Yeah, if history is any guide, I'd look at some of the data from cf R A there's a pretty good chance there will be one. Um. Let me ask you

about the recession signals. How strong are they at this point and what are the imply in terms of how long and how deep any recession is going to be. Uh Yeah, another another interesting question about next year and what will unfold. Definitely, the the leading economic indicators in the US, it's one of the very best metrics to look at to say what's going to happen with with the economy, and they're pointing down. They've been right pretty much.

You know, every time I recycled over the years, they do point to an economic recession. But markets, we have to remember our forecasting mechanisms and of CEO believe there's a recession coming in. For much of people in our business belief there's a recession. So that's why we have to start asking ourselves what is priced in and the earnings maybe are not priced in yet. Maybe there is some downside, but it's not about probably whether there'll be

a recession, but how difficult will it be. And we think it's going to be a mild economic recession, only bad, you know if you're the one is losing your job. But the job market is so very strong. And I think that's something we need to remember into this recession is the balance sheets of both businesses and consumers are really quite strong. If we're heading into an economic recession, that should make it milder, uh for you, for both sides of our economy. As a stock market investor, I'm

worried about the earnings of corporate America. If interest rates have been going up steadily, which they have done year well, I have to bear in mind that cash on corporate balance sheets is really high, and if debt is a record highs on corporate balance sheets, their ability to service that debt is also near a record high. Because they were piling on debt at generational low interest rate. They

don't care if the interest rates are going up. If they have debt that's termed out for basically six to eight years, and of the debt and large gap companies is fixed, so it should be mild for this reason. Linda, thanks all, I appreciate it. You'll be back Linda Distel, senior aquity strategist at Federated Hermes, and we'll continue our conversation. At just a moment. It is five eighteen of Wall Street.

Just to hand on Bloomberg Daberg, We're gonna check out the markets, bringing the latest news of business, economics and finance. I'm John Sucker. You're listening to Boomberg Daybreak, markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Victap's

a Bloomberg Business Flash, and I'm Karen Moscow. Any West Dot Index futures are higher this morning as news of further moves by China to reopen his economy lifts investors sentiment in the final week of a dismal year from markets. We checked the markets all day long here on Bloomberg. U S and P futures up six points, are about two tenths of uppercent. OUR futures up seventy three points, or two tenths of uppercent and nastack futures up ten points or a tenth of uppercent, and a ten year

treasury of three thirty seconds. You have three point eight two percent, and that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen. The Supreme Court is keeping pandemic air limits on people seeking asylum in place for now. The courts set a February timeline for an arguments in the title

forty two case. Southwest CEO says he is optimistic the airline will be back on track before next week after it had to cancel thousands of flights because of the winter storm. The Vaticans has retired. Pope Benedict's health is worsening. The Vatican says Pope Frances went to see him. In the NBA, the next lost in overtime the Celtics Wizards and Warriors one. In the NHL, the Islanders won, the Capitals beat the Rangers for zip. The Bruins lost in

the shootout. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalists and analysts, more than a hundred twenty countries. Michael Barb, this is Bloomberg. Jump all right, Michael, thank you very much. It is now six twenty three

on Wall Streets. This is Bloomberg Daybreak. Let's continue our discussion this morning with Linda Disol Federated Herme's senior vice president, senior equity strategists looking at futures right now, they're in the green. Linda, can I ask you how close are we to a FED pivot and what factors are you looking at to make that decision? Uh, we don't think

we're at all close to a FED pivot. I think that's what's one thing that's gonna be very key next year is um You know, we all understand that inflation has peaked and it's probably gonna come down hard next year. But where we had Federated her we disagree with consensus is well is it going to fall to? And that has everything to do with the FED pivot. It's consensus is the core pc I, c p E, whatever you wish goes to two percent and change. We're at the

high threes by year end. We think inflation is going to be stubborn and therefore no pivot next year they're going to stay stay at a very high rate relative to what we've been used to five all year long. We're it's going to take us a while to realize that and get used to that, and so um, yeah, it's I wouldn't I wouldn't count on that for next year, which is one reason why we have pretty much a flattish year in the market. Next year. You're gonna have

to really pick your spot and investing next year. Well, it leads me to my next question. I'll put you on the spot. What do you see at the end of the year for the SMP five D next year? That's a tough call, and maybe for a race as well, with the the tenure yield. Yeah, it is a tough call. It's gonna be tough all year to try to figure out where the earnings if I if I see earnings down ten that is actually is not much compared to average. Recessions may be done twenty or even on earnings. The

ps been priced to earnings. Racier has been hit fairly significantly. If I give myself, you know, a high teams multiple, I'm looking at four thousand SMP for next year. We had thirty nine for this year and for months, and looks like we're going to come in close to that. That is a flat year pretty much basically. But underneath the surface, you're gonna want to look for fat pitches. I find bonds have the yields now creeping up again, up towards four percent level. Bonds punished as we all

know very badly. This year could be a very interesting year for bonds as we really settle into the notion that this is going to last longer than what we would all like in terms of the higher rates of inflation, slower growth, slower economic earnings, economic growth, earnings growth. You'll get some yield on the long end. Stuff front end will keep it, keep you in a good yield position, and then look for those pockets of value where you're really getting some excellent what I like to call fat

pitches next year. Areas like home builders, banks, medals, and energy still looking really really good to us throughout next year, but you can have to pick your spot. Yeah, what about the commodities, Gold as as a hedge with respect to inflation hasn't really performed up to its filling this year. But other spaces beyond the equities and bonds, Yeah, beyond equities, and I mean the metals in the mining um areas in terms of commodities. Gold as an inflation hedge, as

you suggested, hasn't really worked this year. Um inflation, if inflation you believe, inflation is said to come down and probably to come down hard, and you really don't need to be worrying about that. Where we might worry about inflation and where something like God would come into play, as if our dollar would come crashing down. And it's been extremely strong all years, so it can get a

bit weaker. But again again just very very patient. Outside the US, maybe it's just difficult, and I really want to say this to the group, is that China and Europe could be uh could go either way next year. Linda Alfoice employers are appreciated. Linda Distil federated herm's senior vice spread senior equities strategist. Getting is set up for the trading day ahead, just to have the morning's top stories your local headlines. The first Today's Bloomberg weather for

our cast is Rob Caroline. It's gonna turn into a partly to mostly sunny day with temperatures rising up to about forty to forty five and cloudy in issued depart the area fairly early on this morning. Were partly clounie Tonight loose thirty to thirty five down into the twenties stone of the suburbs. It'll be partly to mostly sunny tomorrow with highs around forty five, partial sunshine Friday, temperatures

between forty five and 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 three on to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country. Sirius XM had a one nine tea and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak that's coming up

on six thirty Ball Street. Good morning, I'm John Tucker and I'm Karen Moscow. We're nearly three hours away from the open of US trading. Time for the five things that you need to notice start your day, brought to you by Innovation Refunds. Are you looking for ways to grow your business get back the money that you may be eligible to receive through the Employee Retention Credit. Sign up now before it's too late. See if your business qualifies for e r C assistants at get Refunds dot com. First,

the latest on Southwest travel woe. CEO Bob Jordan is now issuing a public apology after the airline canceled thousands of flights yet again. Our plan for the next few days is to fly a reduced schedule and reposition our people and planes, and we're making headway and we're optimistic

to be back on track before next week. Southwest CEO Bob Jordan's says he's doing everything he can to return to normal operations, and Southwest is responsible for almost three quarters of flight cancelations in the US that is drawing the ire of government officials. Now Bloomberg Steve Rancifort shows US Live with the latest on that story. Steve, good morning,

Good morning, John, and Karen. The Department of Transportation in a tweet called Southwest woes unacceptable, adding d O T will investigate whether the mass cancelations were controllable and if Southwest is complying with its customer service plan. That's likely little comfort though for tens of thousands of Southwest passengers not going anywhere today with more than flights grounded. The Biden administration wants to know why rival airlines had a

much easier time recovering from last week's storm. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks, we'll training to a couple of political notes now. The Biden administration says it will comply with and enforced the Supreme Court's ruling on Title Fort h Uo, and Bloomberg News has learned that years of Donald Trump's tax returns will be released Friday by a House committee. It marks the first complete look at the former president's tax records

since he declared his run for the White House. In and to markets now, US futures, they're higher right now, following it down to Wells fore SMP five hundred is full and more than six percent this month and almost of the year. In Asia, more easy of COVID restrictions help fuel the gain of one and a half percent on Hong Kong's Hang Sang Index overnight. Well John is

Hong Kong and China is COVID restriction. Some countries are considering whether to test or restrict travelers from China and Hong Kong Chief Executive John Lee says scrapping COVID rules was not a rush. Decision is not sudden. They will always come a day when we have to make big decision about normalization. That effectually what we are doing now. Chief Executive John Lee says Hong Kong has prepared for the easing of COVID restrictions for months by vaccinating much

of the population. That's the five things you need to know to start your day, brought to you by innovation refunds. And again, futures are higher this morning. S and P futures they're up six points or about two tens of uppercent. Death futures up to tens of upper center seventy eight points, and as deck futures they're up about a tenth of upper cent. Straight ahead, your latest local headlines plus the check of sports and this is Bloomberg. Thanks Wall Street.

Time to bring in Michael Barr with more of what else is going on in New York and around the world. John, thank you very much. Sarah. Officials in New York City, State and military police were sent to keep people from driving and snow choked Buffalo. More than thirty people died in the region. Buffalo Mayor Byron Brown was asked about reports of looting. There was looting that took place in different parts of the city. I call the looters the lowest of the low people that shouldn't even be able

to look themselves in the mirror. They should be ashamed of themselves. Mayor Brown says crews are keeping an eye on a warmer weather later in the week that could bring a thread of flooding as the snow melts. More testimony from the January six panel is providing more details evolving former New York Mayor Rudy Giuliani. According to testimony for Max New York Police Commissioner Bernard Carrick, Giuliani spoke to former President Donald Trump as much as ten times

a day about possible litigation. Kerrick says the conversations took place between November five of twenty and January fifteenth. One. GOP leaders on Capitol Hill are mostly muted. After the latest statement from Congressman elect George Santos, the Long Island Republican described what he called embellishing large portions of his background during his successful congressional run. Santos spoke on Fox

News last night with Tulsea Gambert. I made a mistake, and I think humans are flawed and we all make mistakes. Tulsee Um, I think we can all look at ourselves in the mirror and admit that once in life we made a mistake. I'm having to admit this in national television for the whole country to see. The Republican chairman in his district said, Santos may have broken the public's trust, but he'll do the public's will when it comes to

tax relief and public safety. Scientists are transforming pig livers to look and act like human ones. It's part of a quest to ease the nation's organ shortage. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analysts more than a d twenty countries. Michael Barr, this is Bloomberg Jump Michael, Thank you is now sixty four Wolfsbrief and that's signed by the Bloomberg Sports Report,

being brought to you by your try state Outia. The other Good morning, John Sansha Gay morning John the next started a Texas swing. In Dallas. Jalen Brontson missed the game against his old team injured hip, and then two minutes in r J Barrett heard his finger. Quinn Grimes pitched head. He scored thirty three Julius Randol at eighteen rebounds and then next led by nine with thirty seconds to go. They led by two with four seconds left.

In Luca, Don sage at the free throw long some classes at the play class Clarks time most bolstosion Mike Green on MSG. So we missed the free throw on purpose, got the rebound, tied the game share enough Dallas one on one. Amazing night for Don's at sixty points one rebounds. Tennis says greatest triple double NBA history. The Garden Rangers lost to Washington for nothing. The Caps Darcy Camper stopped

all thirty two Rangers shots. Last time. The Rangers were shut out back in October by the Islanders, who just bake Pittsburgh five to one. It's their first two game win streak in a month. Is Carlos Korea gonna bring a Maddie was gonna be a giant until the red flag arose and mis physical and now the Mets are concerned about an ankle injury. They reported they want to restructure the contract, and there's word Korea not in agreement with that, and now other teams said to be looking

to sign Korea. I'm Stasholler, Bloomberg Sports. John. All right, John, thanks very much, and the Sports report brought you by Audie. Don't let someone else drive off of the Audi model you've always wanted. Visit your local trying state autie dealer to get to behind the wheel of viewers today, or visit Audie Offers dot com for more information. You're listening to Bloomberg Daybreak. Yeah, it's our six thirty fives on Wall Street. Bloomberg Radios on the year from San Francisco

to New York, London to Hong Kong. Let's check in now with our global news team some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve Polas Scott k f A D in Omaha. We're talking about how the winter blast is pushing wheat prices sharply high. I'm Jeff Bellinger and on Cogo in San Diego, I'll be talking about Apple stock closing at the lowest levels since June of last year.

I'm Kimberly Adams and on WBC in Boston, I'll be reporting on Activision Blizzard video game employees seeking a union in Boston. I'm Stephen Carol and Bloomberg d A B Radio and London, We've been reporting on the market reaction to Hong Kong lifting more of its COVID restrictions. I'm Gina Servetti and for w T A M. In Cleveland, I'm reporting that power bills are likely to jump even higher as wholesale prices surge in parts of the country

during the worst of a recent brutal cold snap. And those are some of these stories there Bloomberg journalists and analysts are working on this morning around the world. It is now six thirty seven on Wall Street. That is time for our daily Bloomberg Real Estate Report. And here we're then, is Bloomberg's Denise PALLAGRENI watch for housing demand and home prices to bounce back as mortgage rates eventually

start to trend lower. People who are thinking that the world is coming to an end, here, it's not that bad. There's a natural floor to how low house prices can go because we don't have the same amount of supply we had done. Jerry Howard is CEO of the National Association of home Builders. There's still a great deal of pent up demand. I think that, combined with growth in

other areas of the economy, they bring us back in two. Howard, though, also warns too many regulations are preventing builders from being able to build much affordable housing. That's a good example of this problem is San Diego were over fifty. That's five oh percent of the cost of building a new home is in regulatory compliance. That's absolutely ridiculous, and that's why San Diego County has housing halves and housing have knots.

And that's the Bloomberg Real Estate Report. Under these pelegrading thanks Denise Solana. The cryptocurrency that was back by falling crypto moguls SAM bankmt free tumbling today their concerns that large holders may be about to offload the token Slanta, dropping as much as twelve percent today. It was trading close to nine percent lower this morning in London trading. Other tokens so modest declines either that slipped about one

point three percent. Then you had to Bitcoin right now that is down about two tenths of a percent at sixteen thousand, six hundred sixty eight dollars for token. There you are listening the Bloomberg Tame, break markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Out and at Bloomberg Quicktape. This is a Bloomberg Business lash. I'm Karen Monsal. Futures are on

the rise this morning. We go to the First Word breaking news desk for today's morning call, and here's Tatiana Darry Tatiana, good morning, Good morning, Karen. The futures holding to some modest games here, with dog contracts up to eighty three points, s andps up seven and NASDAK up twelve. The U S tenure yield the lower by about two

basis points at three spot a two percent. Oil is down half a percent, and the dollar is slightly weaker for a third session here Elsewhere, European stocks are a little changed at this hour, while Asian shares were mixed overnight. Back in the US. On the economic front, today, home sales at ten and an early trading this morning, we're seeing a rebound in Tesla shares after seven days of losses. The stock is hired by about three percent in the

pre market. In the healthcare space, at John's Therapeutics jumps as much as after gill Lead agreed to acquire all remaining rights to immunotherapy and among cryptocurrencies, Salana dropped as much as twelve percent this morning, bringing it's year today decline to nine percent this year so far. Lie from the First Breaking News Desk. I'm Tatiana Daria Karen Alry Tatianna. Thank you and your life breaking news of your Bloomberg type squawk on your terminal rescue you a w K,

that's a Bloomberg business lash. Now here's Michael Barr with more on what's going on around the world. Michael Karen about Southwest flights have been canceled for today, Monday and Tuesday. The airline scrapped more than five thousand flights because of the winter storm. President Biden said his administration would comply with the Supreme Courts order keeping in place sweeping coronavirus

border controls under Title forty two. The Vatican says the health of retired Pope Benidet has undergone a worsening in the last hours, and that doctors are monitoring the nine year olds condition. In the NBA, the next loss in overtime the Celtics Wizards and Warriors one. In the NHL, the Islanders one. The Capitals beat the Rangers for ZIP.

The Bruins lost in the shootout. Global News twenty four hours a day on here and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Bar. This is Bloomberg. Karen alright, Michael Bar, thank you. At at six forty two on Wall Street, returned to news and science and technology now with the Bloomberg and j I t. Stem Report, And here's just making news and science, technology, engineering and math.

China's decision to abandon its COVID zero policy and reopenous borders has prompted a global response. Countries are considering whether to test or restrict travelers from China. Beijing's policy reversal has triggered nationwide COVID outbreaks. Both the US and Japan are weighing new restrictions on people arriving from China. Customers have failed cryptocurrency exchange f t X IT filed student

Delaware Bank c Court. They're hoping to be first in line to recover some of the billions lost in the meltdown of Sam Bankman Freed's digital asset Empire. The suit asked to judge to give customers who came in priority over other ftx creditors. And here's a Tesla now on their longest losing streaks since tween. Elon must Electric carmaker fell even for the seventh straight decline. A report of a plan to temporarily halt production at Tesla's factory and

China has led to concerns about falling demand. Tesla is now down sixty this year. And that's the Bloomberg n j I T STEM report. John, all right, thanks Karen. It is now sixty three on Wall Street. Time to check what's going on in d c U. Some of the top stories on our nation's capital include, Well, Southwest Airlines does expect more flight cancelations for at least another few days, the government questioning whether airline is complying with

its customer service plan. President Biden will comply with the Supreme Courts Border immigration ruling Donald Trump's tax returns. They are sent to be at least tomorrow by a House committee. And then you have power cast surging six thousand percent. That signals staring us home heating bills that come. Let's take a deeper to have into some of these stories this morning with Terry Haines. He's the founder of Panji, a Policy. Terry, thanks for being with us again this morning.

Appreciate it. Let's start with Southwest. Have you ever been stranded in an airport? You know how bad this could be? Where is the U. S. Transportation Department in all of this? I'm trying to figure out who owns this, who's responsible? Terry? Good morning, John, And uh, the government will do do whatever you can to make sure the Southwest is responsible for this, but uh, in this case, it's probably Jimmy Carter's fault. And uh, I say that because the airlines

were federally deregulated. Regulation. Terry, did you just say regulation is good? No? No? Well yes, I'm regulation is sure? Why not? But the you know, and but you know this stuff is complicated. Does the secretary Transportation Secretary Botages has already decided, you know, according to an interview that he had with NBC that this has crossed the line from an uncontrollable weather situation to something that is the

airline's direct responsibility. I think where we come down on this is eventually is is it's going to be some of both. D O T will investigate, the Congress will investigate. I have two issues, one of which is, uh, you know, kind of the weather act of God stuff which wouldn't even be picked up by a flight compensation regulation, which we we haven't had in this country since uh, the

flight conversation tariff, which we haven't had since UM. The other part of it, though is Southwest itself does say it was culpable because it's crew scheduling tools, other scheduling or have been a problem as well as the the airline is set up, which is uh a kind of hop scotch configuration which is very different to the kind

of hub and spoke networks that other airlines have. So you know, if consumers, particularly people who had these tickets and had these flights, should not look for complete satisfaction, I think they are eventually like that. He gets some satisfaction, and what the airlines are likely to see is beefing up of flight compensation regulations and also pushing on technology to make sure that their crews, their pilots, and their planes are much better managed than apparently they are today.

It might also reflect a broader problem with just employment, I mean, just cruise not showing up. Oh I think so. Yeah, I mean one of the things that you're quite right to bring that up. One of the things that steath Less said is it is that they were having a terrible time with their crew scheduling the crew, but the crews themselves weren't showing up. So so that that's going to have to be looked at. And again, I don't think there's there's gonna be any quicker or easy fixed

to any of that. And you run into kind of management union issues on top of that as well. So, uh, this is not an easy situation to fix by any means. We had a ruling from the Supreme Court untitled forty two. As a result, the administration says it is going to comply with the border immigration ruling from the High Court. Does Biden now on this, and uh, what kind of

position does this put the administration in? Well, Uh, the the administration does own it to some extent, but at the same time, they're they're busily trying to offload their ownership onto the Congress by saying, well, you know, Congress needs to send us something that's immigration, immigration reform. That's fair enough. It's been ten years or more since Congress has even tried to seriously address immigration reform. It is

it is long overdue in the media. But I have little confidence that that that, particularly a split Congress, is going to be able to do that. They always run up against the the run up on the on the rock, on the shoal of talking about path to citizenship and what they mean and how they should be structured. Uh, that's always a huge problem. Uh, the administration is not going to be able to provide a lot of leadership in this regard or or you know, kind of front

load whatever the solution is. They don't want to go out on that limb. So what's going to happen is that, you know, the Supreme Court's decision has some has some good practical effect, although it's it's very imperfect because it helps manage the border. I'm not defending the policy by saying so, I'm just saying there's a practical effect here.

But the stay is very narrow. The stay that the Streme Court put up was really only to address the question of whether states could intervene here and insist on UH stricter enforcement. So the Supreme Court itself is not going to be a cure all for immigration policy or

Titles forty two policy at all. Eventually, Congress is going to have to try to deal with this, and UH, you know, anybody that's concerned about the border UH and border enforcement, border security and in a rational immigration policy in this country. UM, I think it's going to be disappointed over the next few months because a new Congress fighting over a variety of other things including spending, potentially

debt ceilings and other things. UM, is not going to really be able to deal with that, I think in a in a quicker easy way. But I'd look for some of those centrists the John Kako on earlier, and he's quite right to say some of the centrists will be dealing with this too. Terry a pleasure. Thanks, that's all we have time for a founder of pange At policy.

You can read more about these stories on Bloomberg dot com or the Bloomberg terminal, and also a reminder you can follow all the latest on Bloomberg Radio in Washington. That's Bloomberg at one or five point seven. FM h D two is Bloomberg Day, Brighten Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quick Take. This is a Bloomburn business flash. And I'm Karen Moscow Futures on

the rise this morning. We check the markets all day long here on Bloomberg. But SNP Future is up about eleven points or three tens of uppercent. Down Future is up three tens of upper cent or a hundred four points, and NASTAC futures have two tens of uppercent or twenty four points. The decks in Germany is little change ten. Your treasury up four thirty seconds. He'll three point two percent, the yield of the two year four point three three percent.

NIMEX screwed oil is down a third of u percent, or twenty six cents at seventy nine dollars twenty seven cents of barrel comes Gold down seven tenths percent or eleven dollars ninety cents at eighteen eleven, twenty announced the euro one point six five one against the dollar, British pound one point to zero eight six and the n one thirty three point eight two and Bitcoin this morning down a tenth of a percent at about six seventy dollars.

And it's a Bloomberg business flash. John, all right, thanks a lot, Karen. It is now six fifty six on Wall Street. That's time to take a look at stock, some of the names that are moving in the pre market. And for that we're joined by Bloomberg Radio and TV markets correspondent Pretty Gupta. So after a big fall, I guess,

bargain hunters, what's what's the story with Tesla? Yeah, a little bit of dip buying here, and it's interesting because there's no real fundamental driver today outside of it's been dropping for seven days straight, so it was due for a little bit of love. T s l A is your taker. They're up about three point four percent in the pre market, not too shabby, but I will say

there was quite a bit of heavy volume. I want to say round five five ish, uh a m New York time, and which has still kind of kept the stock moving. And I think that's a really big story. But once again we're talking about the pressures here that are on Tesla stock. Yesterday they reported that their Shanghai production, for example, this coming from out of Reuter's might take a hit as well. Their delivery numbers across e V space have really been lower as well. So Tesla facing

all sorts of pressure right now. But today really does feel like a dip buyer story. Joining indication Elon Muski is going to focus on his Tesla company and not other stuff. Um, there might be. I mean that seems to be the hope at least, and you did see in the New Years is he like one of his resolutions is to like stop being loony. I can't speak to that. I don't have access to his diary admittedly, but uh, I have to say this kind of Twitter

saga there is if you're starting to read something. The analyst notes the idea here that if Twitter is indeed looking for a new CEO, that will kind of return Tesla shares back to back to its former glory, if you will, If Elon Musk can actually revert his his attention back to the company, but that is still a process that may take months. So quite a little bit of optimism baked into that. Okay, this next stock that you're looking at. This is kind dark. It is dark,

but important. Nonetheless, So we have a Supreme Court decision on a law called Title forty two, essentially lets the government quickly expel people people who could have been eligible for asylum, for example, using the health emergency created by the spread of COVID nineteen so um, basically the migrant crisis at the southern borders. So you know, you can send them back, but first you gotta lock them up

in theory. And here's where it gets a little bit dark, because it is having a very real read through into the markets here with prison operators like Course Civic and Geo Groups. Says c x W is stocked for Court Civic. Those shares are down about two percent in the pre market Geo Group as well. Geo down about two percent as well. And this comes after the U. S. Supreme Court basically said that those pandemic ara border restrictions will

remain in effect. Now this comes in the context of a previous comment that Course Civic had made saying that the termination of that law could result in an increase in the number of people apprehended into pained by their key customer ice. But since that to law is not being terminated, it doesn't bode well for the prison system, and therefore lower those shares are lower. Okay, I get it. Um, no judgments here. SMP futures right now are ten points higher.

Critty Bloomberg Radio on TV Markets corresponded, Critty Gupta, thanks for being with us, and again, SMP futures up ten the Dow futures up one four For Karen Boscow, I'm John Tucker. This is Bloomberg day Break Live from the financial capital of the world, broadcasting across the glow. This is WVDR New York Bloomberg. He lived in Frio. We flipped two. Good news is good news and bad news is bad news. The worst won't happen by the end of the year. I have somewhere