Bloomberg Daybreak: December 29, 2022 - Hour 2 (Radio)

The decks in Germany's up about two tenths of a percent. Ten year treasury up one thirty second deal three point eight seven percent. That yield on the two year four point three six percent. NIMEX screwed oil is down one percent on ninety four cents at seventy eight dollars two cents of Barrel Comic School down a tenth of a percent or two dollars fifty cents at eighteen thirteen thirty announced.

The euro one point oh six three nine against the dollar, British pound one point two zero two six, the yen one thirty three point seven three and bit growing up about half percent and about sixteen thousand, six hundred dollars. And as a Bloomberg Business flash, John all right, Karen, thanks very much. Is now all six fifty six on Wall Street. Time to take a look at stocks, some of the names that are moving in the pre market. And for that we're joined by Bloomberg Radio and TV

Markets correspondent Kritty Gupta. Here's a quiz. What stock brought a windfall of seventeen billion dollars for shorts last year or this year? You know it's your first stock, it is my first stock. I just wanted to make sure that I was right. I'm just I'm just staring at stump. The reporter Tesla is the first doc C s L a day win the pop quiz series about four point four percent this morning. Let's come back to you after an analyst kind of I will say standpard approval reconfirmation.

I would say Morgan Stanley of Adam Jonas over there, the analyst saying that he d rating in the ev company stock has created did an opportunity. He did lower his private price target to two fifty dollars from three hundred and thirty, but he is sticking to his overweight rating. Tesla shares now training about a hundred and seventeen dollars.

So basically, he's saying that those wave of analysts downgrades that I had pressured the stock in the last couple of days and arguably weeks, He's sticking to his guns here and saying, well, look that is actually making it a little bit cheaper to hop into. So nevertheless, Tesla shares t s l A up four point four percent, down a hundred and seventeen or excuse me, um training around a hundred and seventeen a share. And this is also important because it's coming after about seven days of losses.

Yesterday was its first positive day. Let see if it holds into today. Maybe in a Tesla and a peer to peer car sharing marketplace. I have a car sharing um program at my house with a teenager. It doesn't work. What's this next stock? Let's talk about the stock called Get Around g E. T R shares are up. While they were about three point three percent, they are now up about one percent. This is a stock that was initiated with an overweight rating and just a one dollar

fifty cent price target. One of those really tiny stocks but worth remembering because it's one of the only movers out there this morning over a Piper Sandler, they're saying that the platform looks well positioned to provide, to your point, pier to pier car sharing marketplace. Um. The other one I really want to point out here is the oil story, because you are seeing oil come down a little bit uh this morning, and that is having a ripple effect

into Exxon and Chevron as well. X O M is your taker DWN about seven tenths of one percent and Chevron not far behind a cv X down eight tenths of one percent. A lot of this has to do with this idea of is a Chinese reopening inflationary or disinflationary? Yeah, I mean it's interestion. We were talking about that today

because it's like, I'm kind of kind of confused. Second largest economy reopens, good, right, you know, oil run, But then you have the well we hadn't COVID spread possibly we had an oil analyst on early edition this morning bloomber Television actually talking about, well, look, China's domestic demand and is going in domestic tourism is going to wrap up from reopening, which is of course a bullish river. But the spread of COVID, to your point, could be

a bearish one. All right, Bloomberg Radio and TV Markets correspondent crittic Group to thank you, appreciated Critty and looking at stocks as the whole ahead of the open SMP futures of seventeen right now down future is up seventy four and the state futures up seventy four. And for Karen Moscow, I'm John Tucker. To stay with Just ahead, you can hear Bloomberg Surveillance live from the financial capital of the world broadcasting across below. This is w VBR

New York Bloomberg he limon Frio. I don't see any reason for the Fed to be moving that two percent target. We finally have come to grips with markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Take, She's a bloom Burn Business Lash and I'm Karen Monstcaw and futures are on the rise. This morning, led by tech Shares, we get the first word breaking news dance for today's

morning call. And here's Tatiana Darry Tatiana, good morning, Good morning, Karen, futures are holding around the highs, with the dull contracts up sixty two points, S and P s up sixteen and nastacap seventy two. The U S tenure yield is lower by one basis point to a three spot eight seven percent. This morning. Oil is down to and the dollar is weak or by about two tenths. Elsewhere. European stocks are slightly higher at this hour, while Asian markets

fell overnight. Back in the US on the economic front, today we have jobless claims at eight thirty. In early trading this morning, Tesla on the move again, shares up five percent after Morgan Stanley said hears are more attractive after the recent decline, and Netflix is up one after an upgrade at CFR eight. In other news, Get Around was initiated with an overweight at Piper Sandler and keep an Eye of Sketcher shares after Piper gave it a

neutral rating, calling its valuation fair. Live from the first and breaking news task, I'm Tatiana, Daria Karen very Tatiana, thank you and here live breaking news of your Bloomberg type squawk on your terminal ascue you a w K and as a Bloomberg Business Flash. Now here's Michael Barr with more on what's going on around the world. Michael,

paren thank you very much. More than twenty three hundred Southwest flights are already canceled today, marking the fourth strade day of the airline has canceled more than fifty percent of its scheduled flights, and all more than thirteen thousand Southwest flights of the past week been canceled. The U S is reinstating mandatory COVID nineteen testing for airline travelers arriving from China. The CDC says the new measures follow a surgeon infections in China and a lack of transparency

from Chinese officials. A massive fire at a Cambodian hotel casino has killed about a dozen people. In the NBA, the Nets won their tenth straight, the Wizards and Warriors one. In the NHL, the Bruins Devils three one. Global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than journalists analysts in more than a d twenty countries. I'm Michael Barr, and this

is Bloomberg. Karen you. It is six forty two on Wall Street, and we turned to news and science and technology now at the Bloomberg and j I. T. Stem Report, and here's just making news and science, technology, engineering and math. South Korea's semiconductor production in November felt by the most since the global financial crisis, pointing to a further cooling of overseas demand for tech components. Chip production shrank for a fourth straight month, following fift from a year earlier,

for the largest drops ince two thousand nine. According to data from the National Statistics Office, Lithium will get less expensive in this according to a Chinese supplier or the battery metal, potentially offering some relief to electric vehicle makers sweezed by soaring costs. More supplies emerged to trim abnormally high margins for lithium producers, according to the chairman of Sina Mine Resource Group and the value of I P O, S C M and as in Israel's tech industry this

year fell substantially from one levels. Rising interest rates and economic uncertainty forced a reckoning. According to our report by p w C found they were seventy two deals in two down from one the previous year, with most of transactions taking place in the first half of the year, and as the Bloomberg and J. I. T. Stem Report, John, all right, Karen, thanks a lot, appreciated the e is

sixty four Ound Wall Street. Time to check what's going on in d C. Some of the top stories in the nation's capital include what political prognosticators are facing A mountain of unknowns for the coming year, starting with whether President Joe Biden is going to seek a second term? A great piece from Bloomberg Opinion. It raises all sorts of questions for the new year. And who better to

explore these questions with this morning? Joining us is Wendy Shiller, director of the Center for American Politics and Policy at Brown University. Always a pleasure, Professor, Thanks for being with us. President Biden, will you seek another term? There are other cliffhangers, including whether former President Donald Trump will be indicted, whether Kevin McCarthy's going to succeed in getting elected Speaker of the House. Let's start with Joe Biden. Um, how do

we divine what his plans might be? Well, he's I mean, he's a leader of the Democratic Party, as a leader of quote unquote the free world. Uh, it seems you know, very very likely that he will aside to announce that he is seeking the presidency again, if only as a placeholder. In other words, you know, the Democrats feel like they came off a good year productivity and they sort of narrowly escaped somewhat of a glooming disaster in the mid terms.

They did much better than people think. Uh, and things in the economy seem to be dire going to three then people saw a couple of months ago. So it doesn't make any sense not to run. Uh, you know, you have a whole technically a whole year file, but obviously, you know, you want people to believe that you're still going to be there after for anything that you want to get done in the next two years, So it

makes sense to announce. I mean, you can always change your mind, you can always drop out, you can always with draw. There doesn't seem to be a very solid Democratic backbencher that could take his place easily to lead the party in twenty four so it makes no sense not to run. We know he's running for president Donald Trump. Is it going to be indicted anytime soon? You know, I think there are two very strong looming issues for the country in terms of literally stability in the system. Uh.

You know, we've kind of gone through the elections. We made it through the elections, and elections seem to work for the most part, so that element of our democracy seems to be stable. But if you do not have a stable speaker at the House, you can't run the set whole coming it. If you don't have a stable majority party, you can't run the federal government. So this is really really important that Kevin McCarthy, if he's going to be speaker, gets elected smoothly and that he can

can control his party. Not to mention the debt ceiling coming up, but just for functionality, you need a functional majority party in the House. Uh. And if you indict Donald Trump, um, that may actually push the party to more unity. Republican Party against that effort. So it's sort of ironic that the thing that might destabilize one part of the sector of the country Trump supporters might actually

stabilize the leadership and the Republican Party in the House. Well, these are the two things that I'm looking at most of all. Uh. You also alluded to at the federal government set to hit the borrowing limits sometime next year, with Republicans taking control of the House. Uh, will we default on our debt? Well, that is just an extraordinarily

important concern. Uh. You know, if McCarthy can bring which the Speaker can do if he points to write people to the quote unquote Rules Committee, that's the committee that determines typically which bills can get to the House floor. If you can get the debt ceiling to the House floor, it'll pass because some Democrats will vote for it. They'll have to vote for it because they don't want Biden

administration to have to deal with the default. So the Republicans know that McCarthy knows that he can lose a good portion of his caucus if he can get the bill and the rule approved to get get the debt seiling to the floor of the House, he can have most of his party vote against it, where the Democrats are gonna face enormous pressure to vote order it just because they want to support the Biden administration economically. And the next question that's that's raised with the Republican House

impeached Joe Biden. See to me, I think that's an overreach. And I think if you've if you've been watching politics long enough, you know that new Gingridge. Eventually when he ran the House, he overreached and it costs the Republicans called him in particular, but it cost the Republicans. And I think, um, I think this is something that McCarthy

has to think about. You know, will the House Republicans care about the twenty four presidential race or they just decide thing that they you know, they want to be in the majority and want to stay in the majority, and impeaching will mobilize their local base in the constituencies that they won. But think about the conference people from New York in particular and California, the new Republicans elected there, I'm not sure they are constituencies have the stomach to

go through an impeachment of Joe Biden. And if those are the seats that gave you the majority, then you have to wear about holding onto them. And that's going to be the calculation Macarti is gonna have to make odd number years when you are when the bulk of

candidate recruitment happens for a Senate and gubernatorial candidates. So the question arises in the next minute that we have will Republican recruitment for these races go better than they did this year well in trem And the big, big problem in the Senate races, what are the people who were endorsed by Trump, who are election deniers, who are

sort of quote unquote living in the past. There seems to be a lot of rhetoric coming out of Republican Party people saying we're gonna move forward and move forward, looking to the future. This is what positions were onto santas governor of governor elect to being reelected in Florida. Uh so, well going into the twenty four races, so we'll see how that goes. That you've got George Santos and New York who lied pretty much about everything it seems in his background, and now you've got a real

problem again, they've got a credibility problem. Is this the kind of Republican party that Independence will support in congressional races and the presidential race? And so far we saw Independence go slightly for the Democrats in two And the only way the Republicans hold on the majority is if they can moderate some of these uh these rhetorical issues and also truthful issues um and hold onto those seats they picked up. And that's the big challenge for them

and right now. You know, we have no idea how they gonna to do that. When do you always a pleasure? When doy Show a Director's Center for American Politics and Policy at Brown University. You're listening to Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktake,

He's a Bloomburn business flash and I'm kared Moscow. You guys knock into X futures on their rise this morning, led by technology shares, and we check the markets all day long here on Bloomberg s and P futures up four tens of up percent of seventeen points and down futures of two tens of upper cent or sixty eight points. NASAIC future is up seven tenths of a percent, or seventy eight points. The decks in Germany's of a tenth of upper cent and your treasury up three thirty seconds.

You have three point eight seven percent They yield on

the two year four point three five percent. Nine excret oil is down one point four percent out of dollar ten at seventy seven dollars eighty five cents of barrel comex school down two tenths percent or three dollars ten cents at eighteen twelve seventy announced the euro one point oh six three three against the dollar, British found one point two zero to eight, then one thirty three point seven five and Bitcoin this morning up half percent at

about sixteen thousand, five hundred ninety dollars. And that's a Bloomberg business flag show. Here's Michael Barr with more. I'm what's going on around the world, Michael Karen, thank you very much. Southwest is trying to recover from one of the worst airline meltdowns in US history. Passengers are still stranded all over the country. Another twenty three hundred Southwest flights have been canceled for today. The US and Italy joined an increasing number of nations requiring COVID tests for

travelers from China. Concerns are mounting over the risk of any new variants emerging from the surgeon infections in the country. In the NBA, the Nets one their tenth straight, the Wizards and Warriors one. In the NHL, the Bruins beat the Devil's three one. Global news twenty four hours a day on here and on Bloomberg Quick Take powered by more than twenty seven under journalist and analyists more than twenty countries. I'm Michael bar This is Bloomberg. Michael, thank you,

six twenty three on Wall Street. I'm John Tucker. You're listening to Bloomberg day Break. Overnight, Russia ramped up attacks on major cities in Ukraine. It comes as the Russian Foreign Minister Sergei Lavrov ruled out peace talks to in the war, that's in spite of major losses and sent backs on the battlefield for Russia. The former US Defense Secretary Market Aspert, weighing in on the conflict, he sent

down to discuss the war with Bloomberg's David Weston. Let's turn to Ukraine, which we've talked about in the past.

As you say, there was that dramatic speech from President Zelinsky before the Joint Meeting of Congress UH and I wonder what you took away from that and whether, in fact the United States should be perhaps changing its attitude toward Ukraine, because certainly President Lensky was not shy but saying he really appreciates what he's gotten, but he needed leads an a lot more things like fixed wing aircraft, things like longer range missiles. His visit was very important,

His speech was very impressive. It sent a message to the Russians, of course, that the United States was standing behind them, particularly as we head into the winter months right now. And it was a chance for Biden President buying a message the American people and for us to message the allies. And look, I think we've done a good job, but we could be doing so much more. They do need fixed wing aircraft, they do need tanks. Uh, they do need the means to conduct an offensive campaign,

to do a counter offensive. That's how you break a trench warfare type stalemate that we're kind of seeing now. That's at the operational level. At the strategic level, they need far more and greater air defenses. And look, the United States has done a lot, but we need our allies to do a whole lot more. Most of our allies have contributed less than six hundred million dollars or so in military aid. The United States tens of billions

of dollars. So if we can get more of our allies to do more of that, to provide those critical arms and pieces of equipment that I just mentioned, we can allow the Ukrainians to get on the offensive, to push the Russians out and bring this war to a quicker conclusion than than the path that looks to be

on right now. Well, that's just what I want to ask about going on the offensive, as you just said, because I think in some quarters that might be thought, well, this is turning sort of into a stalemate and this will go on for a long time, become chronic. It looks like perhaps that's what letter of Putin wants. If the Ukrainies are not winning this war, are they losing it ultimately? Now not necessarily, but again the country would remain occupied. And what we don't want is another frozen

conflict like we have in Georgia or Moldova. So the Ukrainians have the momentum right now. We need to supply them. And you're right, put And strategy is to weait us out. I mean, that's why he is. He is hammering uh Ukrainian cities, infrastructure, energy resources with ballistic missiles and drones. He wants to break the back, break the will of the Ukrainian people. We now see he's putting in barbo if you will, on countries that put a price cap on oil. He wants to freeze them out, frees us

out a little bit. Also, he is playing for time, thinking that we will we will wobble, we will weaken, and look, there's some truth to that in the past, we've seen that. So it's important that we hold on. But at the same time give Ukraine what they need to win. They have the will, they have, the courage, they had the resolve. They've been showing a great deal of grit and success on the battle field. We need

to help enable that. How important our drones in this ca battle on both sides, the drone technology and of course counter drone technology as well, critically important. But you see the Ukrainians not using them to conduct long range strikes hundreds of miles in the Russian territory to attack air fields from which Russians are launching bombers, so they're

using the great skill. And of course the Russians are using the Iranian drones at the pummel uh Ukrainian infrastructure, so we need to give them the means to provide adequate air defenses against those so that again we can protect the Sivellans in Ukraine and Silvellian infrastructure and that's form a defense secretary market Askeper is speaking to David weston Bloomberg's Balance of Power. You can catch that show

weekdays at neon Bloomberg Radio and Television. Come I up next this morning's top stories, plus your local headlines, and check on the markets right now ahead of the cash open down Futures sixties six points higher. First, let's get a look at today's Bloomberg weather for a cast, and to do that for us, here's Rob Caroline. Some clowning. This will be drifting down from the north and west today,

but we should see some sunshine through those clouds. Temperatures up to fifty this afternoon, apparently cloudy over night thirty to thirty five and the city twenties in the suburbs partial sun close to fifty tomorrow. The outlook for Saturday cloudy with rain late today fifty to fifty five. It looks rainy for New Year's Eve that rain. Who's out

Sunday we turned partly sunny. I'm Rob Carolyn with your weekend forecast on Bloomberg eleven three oh broadcasting live from the Bloomberg Interactive Broker Studio in New York Bloomberg in Living Free On to Washington, d C, Bloomberg one to Boston, Bloomberg one O six one to San Francisco, Bloomberg sixty to the country, Sirius XM H one nine ten, and around the globe, the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak. It's coming up on six thirty

Wall Street. Good morning. I'm John Tucker and I'm Karen Moscow. We are nearly three hours away from the open of US trading. Time for the five Things that you need to know to start your day, brought to you by Innovation Refunds. Your business may be eligible to receive a payroll tax refund. The application takes around eight minutes eight minutes or less to see if you're small to medium sized business may be eligible for a refund of up to twenty six thousand dollars per employee kept on the

payroll during the pandemic. Find out it get refunds dot com first. As COVID cases climbed in China, the US plans to require COVID testing for travelers from the country. Officials are concerned about new variants in China's lack of transparency with COVID data. Italy will also begin testing arrivals from China and wants other European countries to do the same. And we have news on the war in Ukraine this morning. The Russian Foreign Ministers Sergey lam Roth says Moscow will

not enter into negotiations to end the war. This comes as Russia launched another missile barrage of major cities in Ukraine. The former Defense Secretary Mark Asper says the US can and should provide further support for Ukraine. It's important that we hold off at the same time give Ukraine what they need to win. They have the will, they have, the courage, they had, the resolved they and showing a great deal of grit and success on the battlefield. We

need to help enable that. Former Defense Secretary Market Asper speaking with David Weston on Bloomberg's Balance of Power. Catch the show weekdays at noon on Bloomberg Radio and Television. Well to Ball Street Now John where layoffs are front and center. Goldman Sax is working on a fresh round

of staff cuts. CEO David Solomon made the announcement and as you're on message to staff, saying the cuts will be unveiled in a matter of weeks and looking at markets right now, US futures they are higher following two days of losses. COVID concerns out of China weighing on some of the sentiment, but Jonathan Gollub, head of US equity strategy at Credit sweets so steady wages can provide some stability next year. Wages don't look like they're gonna

fall as much for the average consumer. They're going to get a stronger wage increase. The things they buy are and we are going to go off as much as their wages, and yet jobs are really plentiful. Jonathan Gollub with Credit sweet says he thinks there will be positive market movement early next year. And travel meltdown has stranded thousands of passengers has led to more flight cancelations. John

Bloomberg Steve Rappaport joins US Live with more. Steve, good Morning, Good Morning, Karen, and John's Southwest blames bad weather for its problems, but aviation experts say snow was only one of the elements that created the perfect storm. They point to issues like tight turnaround times, faulty phone systems, and outdated software. Analysts and unions warned for years that Southwest

needed to invest in new technology. Those warnings proved costly, as Southwest Ground did more than twenty three dred additional flights today, But Grace guys look to be clearing up for the carrier. So far, Southwest only canceled a few dozen flights for tomorrow. That's according to the flight tracking site flight Aware Live in New York. I'm Steve Rappaport Bloomberg Day Break. All right, Steve, thank you. That's the five things you need to notice start your day. Brought

to you Vy Innovation refunds and this is Bloomberg. Thanks, Wall Streets. Time to bring in Michael Barr with more what else is going on in New York and a on the world, John, Thank you very much. Sarah. The National Guard went door to door in parts of Buffalo to check on people who lost power during the area as deadly as winter storm in decades. Already, about three dozen deaths have been reported in western New York from

the blizzard. Buffalo Mayor Byron Brown again, as you know, this was a historic storm, probably the worst storm that the city has seen in over fifty years, and perhaps maybe the worst storm in recorded history. UH. Since these storms have been tracked, Mayor Brown says a travel ban has been lifted. Congressman elect George Santos of New York is under investigation by Long Island prosecutors. Revelation surface that the now embattled Republican line about his heritage, education, and

professional pedigree as he campaigned for office. Nassau County District Attorney and Donnelly, also a Republicans, said the fabrications and inconsistencies were nothing sort of stunning. The US State Department has approved a possible military sale to Taipei for anti tank munition laying systems and related equipment. It's for an estimated cost of a hundred eighty million dollars. It's opening

day to sell legal pot in New York. The first dispensary is in Manhattan at a housing works Kinnabis company in Greenwich Village. Attorney Michael Bass is co chair of the Cannabis Law Group at Abram's instrument. This is the first dispenser of a program that is still in its infancy, and I suspect the lines are going to be pretty

long for some time to come. UH as this program grows and grows attorney Michael Bass says there are limitations in terms of grams announces to what you can purchase Global News twenty four hours a day on air and on Bloomber Quick Take, powered by more than journalist analysts, more than a d twenty countries. Michael bar this is Bloomberg, John, Michael, thank you. You guys have six third three all Wall Street. Yea, that is time for the Bloomberg Sports Report. Big brought

you by your TRN State Counties Heelers. Yeah. Thanks John. That's the first NBA team this season to real off ten consecutive wins. They held on in Atlanta, one of eight, one of seven. The Hops MR game when he shot at the Nkyrie irving twenty eight points. Kevin ran at twenty six with sixteen rebounds. It's the Nets longest win streak since two thousand six. Nicks are in San Antonio tonight the Rangers visit Tampa Bay. The Devil's just lost at home to the NHL leading Bruins three to one.

College Troops St. John's lost to the Big East Xavier Fordham's Atlantic ten opener a home lost to Davidson. Yukon beat Villanova. The Huskies are fourteen and oh they are ranked second in the country. Quarterback news Derek Carr benched by the Raiders. He's been their starter for nine years with fourteen interceptions this season. Jared Stidham will replace him, and this figures the lead to Las Vegas moving car in the off season and Jets could be looking for QUB.

Washington is going back to Carson Wins replacing too or Heina Key Wentz hasn't started since Week six, and the Commanders are part of that battle for the last two NFC wild card spots. Miami and New England in it for one wild card in the a f C. They placed Sunday in Foxboro. The Dolphins QB will be Teddy Bridgewater to a Tamabaloa has his second concussion of the season. They'll play the Pin Stripe Bowl at Yankee Stadium this

afternoon Syracuse against Minnesota. The Red Sox of st seven year old Corey Cloobury want to Cy Young's with Cleveland. He spent this past season with Tampa Bay through a no hitter in the Yankees. John stash Award Sports John, all Right, thanks John. The Bloomberg Sports Report. Brown you buy Audie, don't let someone else drive off in the Audi model you've always wanted. Visit your local Tri state Audi dealer to get behind the wheel of yours today,

or visit Audie Offers dot com for more information. Right now, SMP futures up seventeen. It's now six thirty fives on Wall Street. Bloomberg Radio is on the year from San Francisco to New York, London to Hong Kong. Let's check in now with our global news team for some of the top stories heard on our three hundred at Philliget radio stations around the world. I'm Steve Potosk. On w h S and Louisville, We're talking about some negative online reactions to a test run of Taco Bell's plans for

new burritos. I'm Jeff Bellinger. And on Cogo in San Diego, I'll be talking about how Starbucks customers from California and New York accused the coffee chain of deceptively advertising its sprouted grain bagel and Kimberly Adams. And on w DZ in Boston, I'll be reporting on Goldman Sachs employees facing a new year with new job cuts. I'm Stephen Carol

and Bloomberg DAB Radio in London. We've been reporting on the European countries considering more restrictions on travelers from China as Beijing's as its COVID rules, and those are some of these stories are twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It is now six thirty seven on Wall Street. That's time for daily Bloomberg Real Estate Report. And here with that

it's bloombergs Denys Fella Greeny. Inflation is usually pretty good for real estate investments, but Rich Hill, head of real estate strategy and Research at count and Steers Capital Management, says, not this time. What is challenging for real estate stagflation. So what is stagflation? It's it's an environment where interest

rates are rising and growth is slowing. That's exactly what played out for most of two thousand and twenty two, where the Fed had to raise interest rates to combat inflation that was at its highest level since in nten eight. On the other hand, Hill says things are looking up for real estate returns in three because we see a backdrop where growth is slowing still in two thousand twenty three, but rache are beginning to come down, so we would

call that a stagnationary backdrop. As you transition from stagflation to stagnation, that's a much better backdrop for for for real estate in general. Economist way survey'd say housing starts and building permits probably continue to fall in December, and that's the Bloomberg real estate port. I'm to these pelogreny and investors betting against Tesla are getting a big bonanza they've been waiting for, with the electric vehicle maker center

recording its worst annual performance on record. Short sellers in the company these are parish investors that stand again when the price of an asset falls. Their poised to rate market to market profits of about seventeen billion dollars, making Tesla the most profitable short trade of the year. This is all according to data from S three Partners. Tesla has a tumbled more than forty two percent in December alone,

driving into a loss of sixty eight percent this year. Well, this morning, ahead of the market opened Tesla in the pre market right now up four point eight percent. You're listening to Bloomberg Daybreak Live from the Bloomberg in directed Berger Studios. Is this Bloomberg Daybreak for a Thursday, December twenty nine coming up a shur new restrictions of travelers from China and the country scales back COVID policies. Gullman Ready for a fresh round of layoffs in the new year.

Markets look for a Santa Claus rally. It's a closed two and Russia rules out peace talks with Ukraine. Prosecutors are investigating New York Congressman elect Santos after false claims about his background. Plus the dig out continues in Buffalo. I'm Michael Blarr More Ahead, I'm John Stash Howard Sports make it ten straight for the Nets at one point when Atlanta the Devil's lost to the Bruins of Big East.

Loss for st John. That's all strady Ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg nine one, Washington, d C Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Syrius Exam one nineteen, and around the world on Bloomberg Radio dot Com and via the Bloomberg Business app. Heay, Good morning, I'm John Tucker and I'm Karen Moss. Scale

US DO index futures on the rise this morning. We check the markets all day long here on Bloomberg with SNP futures have four tens of upper cent or sixteen points. Down futures have two tens of upper cent or sixty nine points, and NAS day futures have seven tens of upper cent or seventy six points. John and Carol, Let's begin with new travel restrictions targeting China as COVID cases climb of the country. The US plans to require COVID testing for travelers coming from China. Let's get the update

in this report this morning from Bloomberg's and Baxter. The concern comes as cases spiral upward in China and with China not releasing data the US as transparency has disappeared. Health officials say they are concerned about the emergence of new variants, which tend to thrive with so many new cases. The US announcement came after news reports of two flights from China into Milan, Italy, where more than half the passengers tested positive. The passengers will be required to test

two days before making their flight. The requirement goes into effect January five, in San Francisco. I'm at Baxter Bloomberg Gay Break. All right, and thank you well. We have news on the war in Ukraine. This morning, Russian Foreign Minister Sergei lav Rov says Moscow will not enter into negotiations to end the war. The hard line stance comes as Russia launched another missile barrage on major cities in Ukraine.

Former Defense Secretary Mark Esper tells us Moscow is digging in for the long haul boot and strategies to wait us out. I mean, that's why he is hammering uh Ukrainian cities, infrastructure, energy resources with ballistic missiles and drones. He wants to break the back, break the will of the Ukrainian people. We now see he's putting up in barbo if you will, on countries that put a price cap on oil. He wants to freeze them out, free us out a little bit. Also, he is playing for Todd,

thinking that we will wobble, we will weaken. Former Defense Secretary Mark Esper spoke with David Weston on Bloomberg's Valance of Power. Catch the show week days at noon on Bloomberg Radio and Television. Yeah, let's turn to Wall Street Now another sign of maybe an economic slowdown, Glook Golden Sacks is work on a fresh round of staff cuts at Bloomberg's. Charlie Pellett reports they're likely to come in

a matter of weeks. That word from CEO David Solomon in his traditional year end message to staff, Solomon said, quote, we are conducting a careful review, and while discussions are still ongoing, we anticipate our head count reduction will take place in the first half of January. He says there are a variety of factors impacting the business landscape, including

tightening monetary conditions that are slowing down economic activity. Earlier this month, sources said the firm may seek to eliminate as much as eight percent of its workforce, or up to four thousand jobs, to contain a slump in profit and revenue in New York. Charlie Pellett Bloomberg Daybreak. All right, Charlie, thank you about the markets. Now, US futures are higher,

led by technology shares following two days of losses. Concerns are servicing over the end of Chinese COVID zero policies, But Jonathan Golub, head of US Equity strategy at Credits Suite sees positive signs for the new year. The market is of the belief that no matter what the FED says, the likelihood is that the FED is going to ultimately get closer to their inflation target. And that's a positive,

and that's what the market is ultimately fixated on. And I think that's why stocks are gonna do pretty pretty well over the next several months. Trying to thank Gala, but Credit Sue says steady wages can provide some stability in three to overseas. Stocks in Asia dropped in unison overnight. Let's get the recap now from Bloomberg Day Breck Asia anchor Brian Curtis. In Hong Kong, stocks in Asia tumbled on new concerns that China's reopening would spread COVID cases

around the world. There may be a day that investors embraced the reopening, but today was not that day. Equity benchmarks in Japan, Hong Kong, Australia, and South Korea all falling around one percent. Australian tenure government bond yields rose, that Donna was weaker, and the yen put on games. You know, Hong Kong. Brian Curtis Sploomberg day Break. All right, Brian, thank you, But we also have news out of the Bank of Japan this morning, the b o J announcing

two additional rounds of unscheduled bond purchase operations. The move fights back against traders betting the b o J will further relax it's yield curve control policy. While taking a look at the end right now still rising against the dollar at one thirty three point eight two I. Meanwhile, oil is lower this morning, being time to concerns over COVID cases surgeon in China. As we look at Brent crew the international benchmark right now down a dollar seven

of barrel at eight two nine. Well. Travel turmoil continues again this morning, John. The travel miltdown that's stranded thousands of passengers has led to more flight cancelations at Southwest Ploomberg. Steve Rappaport joins US Live with more. Steve, good morning, Good morning, Karen and John. As Southwest grounds more than twenty dred additional flights today, analysts and unions say this

nightmare could have been prevented. They warned for years the carrier was playing a dangerous game by not investing in new technology. Those prophecies proved a disaster for Southwest as it struggles to recover from last week's storm. Rival airlines are mostly back to normal operations. The White House and lawmakers want to know why Southwest can't pick up the pace. Live in New York, I'm Steve Rapp, report Bloomberg Day Break. All right, thanks Steve, and we have a couple of

notes this morning on Elon buss companies. Let's start with Twitter, which is restored service hours after thousands of users reported glitches. More than nine thousand users from San Francisco to Hong Kong reported problems accessing the service, and Elon mus telling Tesla employees to ignore it. Stock market craziness, as he puts it. His comments come as analysts turned bullish on the stock. Morgan Stanley this morning says d rating um

in the company stock has created a buying opportunity. Most active in the pre market right now Tesla at four point eight percent. This is Bloomberg and it brings us to six or seven of Wall Street. And let's get the news from around the world and in New York. And for that we see good morning to Bloomberg's Michael Barr John, thank you very much. Buffalo lifted a travel ban just after midnight. It was put in place in the aftermath of the Christmas weekend blizzard that left the

city buried under more than four feet of snow. Mayor Byron Brown conditions are such that the driving band can be lifted. We're going to keep a travel advisory in place because there will still be heavy equipment doing work. Dozens of Buffalo area residents died in the storm. New York Congressman elect George Santos is under increasing scrutiny. Prosecutors at the federal and state levels are taking a closer

look at the Republican. His lies about his past have reportedly led to a federal probe into his finances, with questions now servicing about seven hundred thousand dollars used to fund his campaign. The prosecutor in Nassau County says she is looking into numerous fabrications and inconsistencies. Nearly two years after New York legal ees recreational marijuana, New York City's first dispensary is opening against doors to the public today.

The Housing Works Cannabis Company in Lower Manhattan is a nonprofit that supports the homeless. Attorney Michael Bass says to be aware of certain restrictions under the new laws. It's gonna be very long lives. And my concern is people may lose patients in these lines and just go over to New Jersey to buy cannabis products and bring it back to New York. Well, if you do that, you've committed a federal cry trafficking the cannabis across state lives.

So I urged folks, please don't do that. Attorney Bass also says there are limitations in terms of Grahams Announces to what you can purchase in New York. The fallout continues over the crisis at the southern border. After the Supreme Court led Title forty two stay in place for now. People in El Paso, Texas are protesting the extension of Title forty two. The Pandemic era policy allows the US to expel migrants back across the order without an asylum hearing.

Bye Bye twenty twenty two. Ahead of the Big Ball drop in New Year's Eve, Good Written's Day was held in Times Square. Visitors could write down what they want to leave in the past. This man is a cancer survivor five nosed in January this year and went through chemo radiation surgery, and many others retired of COVID Global News twenty four hours a day on air end on Bloomberg Quick Take power by more than twenty seven under

journalist and analyists more than a hundred twenty countries. Michael Barr, this is Bloomberg, John, Michael, thank you. It is now six ten uh Wolves free. Yeah. I signed out for the Bloomberg Sports Report being brought you by your Try State autie dealers. Let's get the ump date from John Stashire Morning John, Good morning John, and Nets and Hawks. We're in Atlanta Hops with without three injured starters, Nets

riding along wind streak. They had a double digit lead, but then the Hopps rallied five the gate one four the rand uptime moving left stop for the time head away called for th D one O six four w f a n Atlanta Mr shot to win it at the buzzer and the Nets made it ten wins in a row. It's their longest win streak in sixteen years. One oh eight one oh seven Kyrie every twenty eight points.

Fifteen of those came in the fourth quarter for Kevin Duran twenty six point sixteen rebounds, eight assists, Nets look to keep the street going. Saturday at Charlotte. Knicks, coming off that overtime lost in Dallas, played tonight in San Antonio, and since winning seven row, the Knicks have lost their last four. Devils beating the New Work by the NHL leading Bruins three to one. Rangers visit Tampa Bay tonight. The Islanders are home for Columbus St. John's hostin Xavier.

Trailed by eleventh a half, the Red Storm lost eighty four to seventy nine and now eleven and three, one and two in the Big East. Fordham was twelve and one, but the Rams lost their Atlantic Tin opener at Rose Hilda Davidson fifty seven to forty three, to only fourteen points in the first half. There's college football in New York this afternoon. Syracuse and Minnesota. The pin Strike Ball at Yankee Stadium. Last night's Liberty Bowl in Memphis went

triple overtime. Kansas rally from down, but Arkansas one fifty three National Semifinals. Saturday, Michigan TCU and Phoenix, Georgia takes on Ohio State in Atlanta. Winners played January nine and l A John Statar Bloomberg Sports. John all right, John, thanks very much. The Bloomberg Sports Report brought to you by Audie. Don't let somebody else drive off on the Audi model that you've always wanted. Visit your local Tri state Audie dealer, or get behind the wheel of yours today,

or visit Audi Offers dot com for more information. Head of the cash open on Wall Street futures right now, point to uh A higher open, Dow futures up eight, SMP Evenate futures up twenty. This is Bloomberg Dame Break live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius X, then the Bloomberg Business app and Bloomberg dot Com. This is

Bloomberg Daybreak and good morning. I'm John Tucker. Well, we had concerns about the spread of COVID nineteen from China, weakening some of the risk afford site. In one of the final trading days of the year, yesterday's session, SMP five hundred lost one point two percent. Right now, let's get you set up for the trading day Ahead. We are joined by uh mak wod New Ronnie, the CEO and co founder at quant Insight. UM. With the COVID risk in the markets, you have a sense of well,

here we go again with with COVID HI. Good morning from London, John. As far as COVID in in China is concerned, all eyes are on that. But it is really a bit of a wild card um. You know, on the one hand you have opening up and some sort of resumption of economic activity. On the other hand, it's really hard to get a handle on UM you know, the impact that it's going to have on on economic activity.

So a real wild card and that really adds to the uncertainty going into two thousand and twenty three, and there's a lot of it. What can you pick up for the ashes of if anything, with the risk assets and beyond Yeah, absolutely. I mean what we do at quantu inside is we like looking at the data, and we gather millions of data points today and have this

big machine that basically processes it all. Looks at all the daily little variations we see in information on GDP and inflation and what the Fed's expected to do and and sort of relate that asset prices to help us understand what's really going on. And the two thousand two story was very clear, and that was really that the only game in town was the FED and where they

were going to stop. But what we started to see in the last few weeks is that all the indicators are showing that the importance of the FED is diminishing and the importance of the real economy and the credit cycle is increasing. Now we sort of have this weird six month period where although the FED has been tightening a lot and very quickly, US real GDP growth has actually been positive. So we've we've got positive GDP growth

into three, and it looks like Q four will be positive. Uh. And I noted with interest that Goldman's chief economists yesterday was on LinkedIn talking about their forecast for three for US real GDP growth and he had that as positive one percent. In the other corner, you have, of course, everyone talking about the inverted yield curve and how that's a very reliable predictor of recession. Uh. And so what it boils down to three is how's the real economy

going to do? And how is the credit cycle going to do? And is all this tightening we've seen from the Fed fine lead going to bite when it comes to real GDP growth. Are we going to see unemployment rise? That's the big question, and where we are right now is very unclear. I mean, if you look at US corporate bankruptcies in two thousand and twenty two, they are at a ten year low. Um, you know, the consumer has done way better than expected. Whether that's because they've

been spending on credit cards is an open question. Corporate credit spreads, which give you an idea of sort of the market expected default rate for corporate and how much pain they see next year, is not really flashing any red signs as yet. And so the net result is you've got the equity market stuff between this sort of thirty six hundred and four thousand, four thousand, one hundred sort of zone while we see what the economy does.

And so what we're doing at QI is watching the real economy data very very closely as enter where did the earnings expectations fit into all of this? Well, you know, the current earnings expectations are moderates, kind of small positive and you have a bit of a disagreement out there because a lot of the equity market bears are expecting an earnings recession in three but that is based on the view that the US economy is going to go

into recession. So again, you know, if we do get this soft landing, and some of the pundits are right that you get one percent positive real GDP growth in the Fed engineers this kind of amazing soft landing where they've managed to slow the economy down and inflation comes down and you're still growing it around one percent. Again, that speaks to more of a sideways type of equity pocket and no sort of huge type of back market that we saw this year. All right, we'll leave it there.

Mamo the Nearani, the CEO and co founder of Quanda Insight, joining us from London this morning, appreciate your time. Ahead of the cash open on Wall Street this morning. We have futures for now in the green, the down futures there's seventy points higher, that's a rise of about two tenths of a percent. S and P evening futures of seventeen that's up four tenths of a percent right now, and Tech Cavy NAZAC futures seventy nine points higher. That is a three quarters of eight percent. And look at

Nimex crewed right now. This is West Texas Intermediate, down one and a half percent off the session laws right now, down a dollar three a barrel at seventy seven seventy eight. You're listening to Bloomberg Daybreak