Bloomberg Daybreak: December 8, 2022 - Hour 1 (Radio)

Yorkers to avoid the Triple Demick. Plus, New Jersey Governor Murphy is out of the hospital, left of surgery. I'm Michael bar More ahead, I'm John Stas shown sports Aaron Judge resigned with the Yankees, the Mets at a picture

wins for the Knicks, Nets, Rangers, and St. John. That's all trendy ahead on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg 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 Carmen via The Bloomberg Business. Good morning. I'm Nathan Hagar and I'm Karen Moscow. Any West Dock Index futures are higher this morning. It is

five o one on Wall Street. We checked the markets all day long at Bloomberg Radio. Right now, SNP futures are up five points, or a tenth of upper cent. DAL futures are little change. NOWSDACK futures up two tents of upper cent or twenty three points. The decks in Germany little changed. Ten Your treasury down eight thirty seconds, held three point four or four percent. The yield on the two year is at four point to seven percent.

Nathan Well Karen. Stocks are coming off five straight days of losses, and the biggest moves have been in the bond market. The spread between the two and tenure yields, a gauge often used to predict recessions, is it's most inverted since the nineteen seventies. David Harden, his chief investment officer at Summit Global Investments, Well, I think people are still a little bit focused on the possibility of this

uh PAL pivot. I think that's in people's minds and hope, I think maybe they're wanting that under their Christmas tree, if you will. And and so I think this stats a little bit more focused on him playing Santa Claus for us, But in all reality, the bond market might

have it right. They seem to get it right a lot more often, so we have to pay attention to that move some global investments, David Harden says the main focus for traders remains sharply on the FED well in Asia overnight, Nathan Hong Kong was the top performer in the region. The Hang Sang game more than three percent in today's session, and we get the recap from Bloomberg

tivon Man in Hong Kong, Karen and Nathan. The region really only being lifted by one story in Hong Kong after reports the city is looking at scrapping rules that require masks at public venues, also cutting quarantine times from seven to five days. The reopening trade was once again on fire from a Calcasino's airlines to retail all up

on the news. This clear preference on Chinese equities and M and B is quite clear now, with sources telling us Chinese regulators have asked the nation biggest insurers to buy bonds after retail investors offloaded cash from their fixed income investments in Hong Kong. I'm Von Man Bloomberg Daybreak. Al righty Von, thank you. Meantime in China, senior health advisors warning the vast majority of the population may eventually contract COVID. The government is now taking steps toward reversing

its zero tolerance policy. The former deputy chief of China's disease control agency says six of the population could get infected in the first wave. Back here in the US, Nathan Tesla and Twitter are the names where watching bankers for Elon Musk are considering providing the billionaire with new margin loans tied to the companies, and we get the details live with Bloomberg Steve Rabbitport, Steve, good morning, Good morning, Karen,

and Nathan. The margin loans are one of several options for Musk's backers to ease the burden of the thirteen billion dollars Twitter took on as part of his acquisition of the platform. The banks, led by Morgan Stanley, put up their own cash to supply the entire debt package. Because of a decline in credit markets. Musk's tumultuous start at the helm of Twitter didn't help the cause either.

The company is estimated to face annual interest costs of about one point two billion dollars if the current debt structure remains in place. Live in New York, I'm Steve Rappaport Bloomberg Daybreak. Thanks Steve, turning to the crypto space. We could soon get more information on the epic collapse of f t X. Disgraced founder Sam Bankman Freed may appear on Capitol Hill as soon as next week. Details

from Bloomberg's Amy Morris in our newsroom in Washington. The Senate Banking Committee has asked Bankman Freed to appear on Capitol Hill December four. Lawmakers want more information about the collapse of fd X, and they want to know quote, how client funds were misappropriated, how clients were blocked from withdrawing their own money, and how you orchestrated a cover up. The House Financial Services Committee hearing is set for the thirteen. Bank Man Freed had said he might not be ready

to testify by then. Chair Maxine Water says a subpoena is quote definitely on the table in Washington. I'm maybe more as Bloomberg Daybreak, right, Amy, thank you. That's not the only news on disgraced former ecuatives this morning. Late yesterday, former Theonis President in chief operating officer Ramish Sunny Balwani was sentenced to prison, and Bloomberg said, Baxter has that story.

The sentence coming from US District Judge Edward Davola and San Jose thirteen years for defrauding investors and patients of Pharaonis Bwana ran the blood testing startup alongside its founder and chief executive officer, Elizabeth Holmes. The sentence is very close to what prosecutors had asked for a term of fifteen years. The judge said he'll decide later how much restitution must be paid. The government has asked for both to be ordered to pay about eight hundred million dollars.

In San Francisco, I'm at Baxter Bloomberg daybreak, all right, and thank you. In the labor market, inflation plus a battle for talent and now cost cutting efforts are making for an interesting picture of corporate America. Now we're learning ex On Mobile is awarding its US employees pay increases above inflation. Just weeks after posting record profit. Bloomberg's Charlie Pellett reports it underscores just how strong two has been for the fossil fuel industry, while other sectors like technology

and finance are cutting jobs. Sources tell Bloomberg workers will receive an average salary bump of nine on. Those who got promoted will see an additional five percent increase. A spokeswoman four X on Mobile says in aggregate it is Exxon's biggest salary award in fifteen years. In New York, Charlie Penalty Bloomberg daybreak. All right, Charlie, thanks, and it's a different labor story at the New York Times. More than a thousand employees are preparing to stage a one

day walk out today. It escalates a standoff with management over a stalled contract. A New York Times spokesperson said the company was disappointed that the news guild was threatening to strike again. Futures are higher this morning, with S and P futures up seven points. Straight ahead, your latest of local headlines, plus a check of sports. And this is Bloomberg. Thanks hearing. It's five oh seven on Wall Street. We're fifty one degrees in central Park should be nice today, Sonny,

and mild highs in the low fifties. I'm gonna get down to the mid thirties tonight. It's gonna be a little cooler as we head into the weekend. Now, let's bringing Michael bar with a look at what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. Governor Kathy Hocle is pushing efforts to keep New Yorkers healthy with winter in the holidays just ahead.

Hocal says people need to take precautions because COVID cases are ticking up alongside R s V and children and influenza are not all the woods. The threat is real and we have cases. I remember this. We're watching this intensely. The winter is often a tough time for the most vulnerable, but Hocal promises New York will be ready. Complacency is our enemy. That is my biggest fear, that people are

so desensitized and feeling that well, it is the norm. Yes, it has become our norm, but it does not have to be the norm that everybody gets sick. Governor Hocal says the state will provide to sting vaccines and nearly eight thousand ventilators said to be sent to hospitals that need them. Mayor Eric Adams says the system to provide affordable housing is broken, not just in New York City but all over the country. Adam, speaking at a faith based summit in New York, says, we all just need

to stop kicking the can down the road. There's no desire to come and bring you together and say you have all of this property, why don't you come with a real housing plan. There's no desire to fix it. People are making money up the dysfunctionality of our cities across the America. A frustrated Adam says, we know at the beginning of the year we are going to fail a large number of people, and they're primarily black and

brown and immigrants. The White House as President Joe Biden will announced a thirties six billion dollar bailout for the Central States Pension Fund, helping to show up one of the nation's biggest multi employer plans. The President angered some of his labor allies last week by signing legislation imposing a contract he personally helped to negotiate between freight railroads and their union's averting a possible strike that threatened to

cripple the economy. However, four of the twelve unions involved rejected the contract. New Jersey Governor Phil Murphy had minor surgery yesterday and is recuperating at home. The Governor's office did not specify what the surgery was for, but said it was a medical procedure. Officials also said it was not related to the cancer. It's tumor. Murphy had removed

from Miss Kidney. In Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. Michael barrb this is Bloomberg. Ne alright, Michael, thank you almost five ten on Wall Street time for the Bloomberg Sports Update, brought to you by twice State Out. Good morning, John Stosh hour, Good morning Nathan. After the news that Aaron Judge had resigned with the Yankees, some

details and merge about how it all went down. Believed to be a two horse raised between the Yanks and Giants, the San Diego Padres swooped in at the eleventh hour offered Judge are reported ten years, four hundred million dollars that got the attention of Yankee owner house Kleinebrenner, who was vacationing in Italy. He got on the phone with Judge up to his offer to the nine years, three

hundred and sixty million that got the deal done. Yankee GM Brian Cashman said Steinbrenner was the Marianna Rivera of the negotiations. The Padres then used some of that money last night to sign Xander Bogart's away from the Red Sox for eleven years, two hundred and eighty million Winter meetings and with eighteen players having signed contracts worth a total of one point six billion, the Mets out of

the picture of veteran Jose Quintana. This will be his seventh teen He pits to an e r A under three. Last season, Nick's all of a sudden playing defense. They had allowed over a hundred points at each of the first twenty three games, they allowed under ninety in the last two. They've beat Atlanta at the Garden one thirteen to eighty nine. Big game for Julius Randall thirty four points, seventy rebounds, five assists at Barkley's nets made it five.

The last six beat Charlotte one two to one, sixteen Pymrie irving thirty three points, Kevin Durant had twenty nine and Seth Prairie twenty and the three of them together had twenty three assists. Big third period for the Rangers, they scored four times and a span of less than six minutes, and they beat Vegas, the top team in the West, five to one. Big East opener for St. John's and eighty six sixty seven win over De Paul John stash Award Bloomberg Sports Nathan, Thank you John, and

Bloomberg Sports was brought to you by Audie. Don't let someone else drive off and the OUTI model you've always wanted. Visit your local Tri state Audie dealer to get behind the wheel of yours today, or visit Outie Offers dot com for more information. Five eleven on Wall Street. Just ahead on Bloomberg Daybreak, we'll get more on China's moves away from COVID zero. First SMP futures are up four points, staff futures up nine NASTAC futures are higher by twenty

four points. The tenure treasury is down seven thirty seconds deal three point four or four percent yield on the two year four point to seven percent. That is an inversion of eighty three basis points. It's five twelve on Wall Street. This is Bloomberg Daybreak, and we want to turn out to what's happening in China and the optimism we're seeing in markets there, with even more signs that the government in Beijing is putting COVID zero in the past.

We're joined now live from Hong Kong by Bloomberg's Rebecca Chung Wilkins. Rebecca, it's good to have you back with us this morning. I guess the latest we're hearing from top health officials in China is a warning about potentially the vast majority of the country getting infected. It sounds like a pretty significant, at least rhetorical change from what

we've been hearing from the Chinese government in the past. Absolutely, it's a very very significant shift, and it's really the first time that we've seen very high level officials in this case that a former deputy chief of China's CDC talking about the potentials of RESTful ramifications and and his

estimates are quite strikingly high. So He's saying, just in the first wave of infections, which essentially sort of we are entering right now, about six percent of the population is going to be infected with some variant of COVID. And just to put that into context, um in the US that that the estimate is currently for all of the waves is estimated around fifty So it is very,

very high. And it really does underscore the challenge for China here, which is whether or not it's health care system can really support the spread of the virus so quickly through its population. Well, what could this new stance potentially mean for China's economy. I mean, we're getting some pretty strong warnings from some of the biggest firms on Wall Street about what a move away from COVID zero could mean in terms of the potential for you know,

temporary shutdowns of businesses that sort of thing. Yes, indeed, I mean disruption from COVID outbreak, particularly knockdowns. We already sort of soared through the very weak import export data, both of which was was weaker than expect did UM and and that really is going to continue longer term accord, The hope is that it will offset the sort of longer consequences of COVID and HATS ex center which it will be weighed on the Chinese economy, particularly on consumer

demand and production as well. Um the one sort of bright spot here is that if China does effectively move away from lockdown, which has been the thing that really has a sort of styy need production, when that hit certain factories that could actually eventually sort of lead to us sustained um sustained level of production and level out, which we haven't really seen China trying to do at

a sort of countrywide level so far. Notwithstanding the macroeconomic potential here, it was really interesting overnight to see the reaction in the market, particularly with the Hang Sing in Hong Kong jumping three point four per cent. Guess that's related as well to some restrictions being used in the city right, yes, indeed, so Hong Kong. Although most of the restrictions can be lifted, we still have a masked

mandate both indoors and outdoors. So there is this speculation local media as reported citing one one source, that we may be seeing a lifting of the mask mandates outside and some of the testing regulations may be lifted, but there's still quite rigorous testing when you re enter Hong Kong. Um there's still mandatory testing when you arrived, for example, and you have to continue to go to these centers

to test. So that is how driving these moves. I will say that as much as we're seeing kind of Chinese assets in Hong Kong assets rippling of boring, they tend to be trading on the rumors. So we're having rumors of ripping through the market that this is going to be listed or that's going to be lifted, and then when we actually see the announcement, it's somehow not quite meeting those expectations, so then we saw a bit

of a pull back in the sell off. So that's so far has sort of been the characteristics of trading over the last couple of days, I'd say, But in terms of the announcements that we're hearing from the Chinese mainland and the warnings from the health officials here, I mean that sort of highlights how far behind I think China is in terms of the way they're going about this virus compared to the rest of the world, which has been warning their populations about the potential for people

being infected. Majorities being infected for quite some time. Yeah, isn't it remarkable? I mean, it is the thing that always comes up when I when I talk to people or even you know, this year was the first year I visited overseas in two years after really strict quarantine measures in Hong Kong, and it's such a different reality that people are living in, particularly in mainland China, and whether it has been such stringent restrictions on daily life.

It was just a few months ago that Shanghai City twenty six million would locked down for really two months and sometimes for longer for some people. So you know, the sort of speak to some of that frustration we saw with the protest, where a lot of visit of anger over these policies have bubbled over, and not just sort of in Beijing or Shanghai, but really in these

sort of major cities across China. So it is there is this also a social unrest element where that China is a lengthy, protracted experience of COVID restriction measures is now starting also to weigh on morale. All right, Rebecca Chung Wilkins with us live from Hong Kong from Bloomberg News. Thank you, as always for keeping US up to date

on what's happening in China. Of course, we continue to watch the world's second largest economy very closely in the implications of what their China or what their COVID stance could mean, not just for the domestic economy in China, but more broadly around the world. Looking ahead to the market open this morning, SMP futures are up three points now, Future is down one now and DASTACK futures are higher by nineteen points, so pretty much little changed across the board.

You're listening to Bloomberg Daybreak, markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Land, at Bloomberg Victap. This is a Bloomberg Business Flash and I'm Karen Moscow. US dot Index futures are higher this morning. European equities meanwhile, they're stending up four days slide is optimism over a potential downshift in Federal reserve rate hikes deflates in the face of economic headwinds.

Who check the markets all day long here at Bloomberg Radio and U S and P futures, they're up about three points, up about a tenth of upper cent. Dow futures are little changed, and NASDAC futures up two tenths per cent or nineteen points ten. Your treasury down eight thirty seconds. You have three point four or four percent. They yield on the two year four point to seven percent, And I'm ex screwed. Oil is up one percent or seventy one cents at seventy two seventies three cents of barrel.

And that's a Bloomberg business flash. Now here's Michael Barr with Moore on what's going on around the world. Michael, good morning, Good morning Karen. At least two more classified documents have been found in possession of former President Donald Trump. His lawyers say they discovered the material while searching a storage unit in West Palm Beach, Florida. The House is set to take a final vote on protections for same sex marriages. Today's vote will send the legislation to President

Joe Biden. In the NBA, the Nets, Knicks and Celtics were winners, the Wizards and Warriors lost. In the NHL, the Rangers, Bruins and Capitals All one Global News twenty four hours a day on air and on Bloomberg Quicktake powered by more than twenty seven under journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan. Thanks Michael. It's five three on Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak and we're watching

shares of biopharmaceutical company Prometheus Biosciences this morning. They're up about six percent in the pre market that they surged yesterday by an enter day record of more than two hundred percent. That's after the company announced two midstage studies and it's a experimental drug for inflammatory bowel disease. CEO Mark McKenna joined Paul Sweeney and Matt Miller on Bloomberg Radio yesterday to discuss the news. Let's listen to that conversation. Now,

what a story. Talk to us first about the breakthrough. Today is a momentous day for patients who are suffering from IBD. This is a chronic disease where they wax in wayne to switching from drug to drug trying to find relief, and the upens this point. Most of the drugs in the category only provide ten to remission um. So we can do better for these patients and today, the data that we showcased was um uh you know, set a new high water march four drugs in this

category across efficacy and safety. Can you give us the layman's version of how it works? There's three ways to to bring innovation to this category. Number one is UM novel targets where there's actually a genetic assot ciation to the disease. UM. You know, you everyone on the audience probably understand how important this is in other disease areas like oncology. UM. Number two with precision medicine being able to use the diagnostic to identify the right patient for

the right drug. And the third is rational combinations being able like in oncology, being able to combine two different agents to get superior efficacy. What we showcase today is that on a mono therapy so meaning that the TL want a drug by itself, showed superior clinical remission the current UM standard of care UM most analysts were looking at TENDI fifteen percent clinical remission and we deliver twenty.

This is a global for super control trial. And what we're doing is we're taking the playbook out of oncology and we have a diagnostic. So in addition to having a really great drug, we have a diagnostic that helps predict who's likely to respond to this drug. So you can just imagine. Um, you know, healthcare costs is always a focus, right, how do you actually bring down cost

while to getting best the best patient care. So with with data in hand, we are moving forward to engage with the FDA and other regulatory bodies outside the US and we'll initiate phase three studies UM and next year. UM. So we need to conduct phase three studies and you see in crowns and we look, we look to activate those next year. What's the next step for a company like yours when you have this kind of breakthrough time to market, path to market? How does that all work

for a company like yours? Yeah, so we haven't guided this specific time to market, but what I would say is that most analysts have us UH commercializing the drug in the second half of twenty six the first half of twenty seven. UM. Look, we we set all along UM that we have two objectives. Number one is we want to get these drugs to patients as fast as possible. UM. We believe that we are the potentially the best hope

to bring meaningful clinical omission to these patients. Number two is we want to maximize shareholder value, and we have a a very strong balance sheet. We are well positioned to be able to execute on the phase three independently. With this data in hand, it really sets us apart from other t O one A programs as well as the rest of quite frankly, the rest of the class. And that was Prometheus Biosciences CEO Mark McKennis speaking with

Bloomberg's Paul Sweeney and Matt Miller. You can catch that full interview on the tape podcast as well as on Bloomberg dot com and always on the Bloomberg terminal. Again. Shares of Prometheus Biosciences up six percent in early trading. Bloomberg Daybreak is brought to you by SEI. Built on advanced technologies and fifty years of innovation, SEI offers asset managers a comprehensive and flexible operations outsourcing platform. Go to

se i C dot com slash managers straight ahead. Here on Bloomberg Daybreak, we'll get you this morning's top stories, plus your local headlines and a check of markets. But first let's bring in Bloomberg meteorologist Bob Carolin for Rob Carolyn for a look at the high pressure is pushed close enough to the area that will turn partly sunny. Today will find temperatures between fifty and fifty five. It will be partly cloudy close to thirty five over night

twenties in the suburbs. Tomorrow partial sun of locol or high forty five clouds, a few peaks of sunshine on Saturday for the clouds went out, hies near forty five and rain or wet snow possible times on Sunday forty five. I'm Rob Carolyn with your weekend forecast on Bloomberg eleven three oh broadcasting live from the Bloomberg Interactive Broker's studio

in New York. Bloomberg E living free to Washington, d C, Bloomberg nine nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the country, Sirius XM Chado one nineteen and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's on Wall Street. Good Morning. I'm Nathan Hagar and I'm Karen Moscow, and we're about four hours away from the open of US trading. Let's get you

have to date on the news. You need to know what this sour u s Dock index future is little change to hire this morning. Stocks coming off five straight days of losses and the spread between the two year and ten year yields is the most inverted since the nineties seventies. PGM Chief investment strategist in head of Global Bonds, Robert Tipps says he sees moderate Arnie's risk on the horizon,

which is skewing the balance away from equities. Normally, you'd have equity returns expected to be much higher than bonds. The bonds have really been rerated here. The Fed is going to need to be careful not to torpedo the economy, but they know that. PGMs Robert Tipps says he expects the bond market to continue performing well as the Fed raises rates well in age overnight care in Hong Kong was the top performer in the region. The Hang Sang

Game more than three percent in the session. That's after local media reported Hong Kong's considering scrapping its outdoor mask mandate and easing testing requirements. Well Nathan back here in the US, Twitter and Tesla are back in the news. Bankers for Elon Musk are considering providing the billionaire with new margin loans Bloomberg. Steve Rappaport joins US Live with more on that story, and good morning, Steve, Good morning,

Karen and Nathan. Margin loans backed by Tesla stock is one option for banks to ease the high interest debt Twitter took on when Musk acquired the company. Dwindling credit markets combined with Musk's bumpy start as Twitter CEO, forced bankers to cover the thirteen billion dollar debt with their own cash, sources tell Bloomberg. Talks are focused on ways to replace the three billion dollars of unsecured debt, on which Twitter pays nearly twelve percent interest. Live in New York,

I'm Steve Rappaport, Bloomberg Day Break. All right, Steve, thank you. Another corporate note this morning. Former Tharonos President and Chief operating officer Remesh Sonny Baldwani has been sentenced to thirteen years in present. It comes after the company's founder, Elizabeth Holmes was sentenced to eleven years for fraud. Will turning to another disgraced venture here Nathan f t X founder Sam Bankman freed maybe appearing on Capitol Hill next week.

Republican Arkansas Representative french Hill says having Sam Bankman free to speak with lawmakers is a priority for the next Congress. Patrick McKendry, the ranking Republican, and Maxine Waters, the chair of the committee. They want him here personally. If he's got time to interview a deal book with Andrew Rawls Sorkin and make all these Twitter appearances, he can appear

before our committee. And we'll bring you more of our interview with Arkansas Congressman french Hill later in the program. And again. Futures this morning they are high er s and p future is a tenth of a percent of five points this morning down. Futures that will change. Nasdaq futures have a quarter percent, or about twenty seven points.

The decks in Germany's down the most two tenths of a percent ten Your treasury down seven thirty seconds, you know, three point four or four percent, and they yield on the two year four point to seven percent. Nine X Screwed oil is a three quarters of a percent of fifty four cents at seventy two fifty five cents of barrel and comex go down two tenths of a percent. Straight ahead, we have your latest local headlines plus the check of sports, and this is Bloomberg. I'm scaring one

on Wall Street. Let's bring in Michael bar for some of those local headlines in New York and what's going on around the world. Michael Nathan. New York Governor Kathy hokels as complacency is our enemy when it comes to fighting COVID, the flu, and RSV. Step up this time, Step up in December and January, get us through February, Get us through the worst times by just you can kind of see somebody that's in a vulnerable situation. Just get tested. Governor HOCl says New York will be ready

with testing, vaccines and ventilators. New Jersey Governor Phil Murphy is recovering at home after his office said that he had minor surgery yesterday. The governor's office would not say what the procedure was, except that the surgery was not related to a cancers tumor he had removed. In Mayor Eric Adams says the system to provide affordable housing is broken. Not just in New York City but all over. Adams spoke at a faith based summit in New York and all we do is kick the can down the road.

We know at the beginning of the year we want to fail his a large number of people, and they're primarily black and brown and immigrants, and we know it. A frustrated Adams says, we spend billions of taxpayer dollars for the broken issues we created. Months after the FBI seized records marked classified from Mara Lago, more sensitive documents is surfacing, this time in a storage unit said to

be used by former President Trump in Florida. Loyola Law University professor Lorie Levinson it is clear that the judges have gone to Trump and his lawyers and said search again, look harder because National Archives does believe that there are more documents out there. Searches were reportedly conducted around Thanksgiving. The House Ethics Committee is investigating Democratic Representative Alexandria Ocassio Cortes. They did not say, though, for what alleged, if any,

violations of Congressional rules. Globally used twenty four hours a day on air and on Bloomberg Quick Take powered by more than journalist and analysts in more than a hundred twenty countries. I'm Michael Barrt. This is Bloomberg, Nathan. Thanks Michael, by thirty three on Wall Street Time for the Bloomberg Sports Update, brought to you by Try State. How do

you Here's John Stas show. All right avon. Yankee fans obviously relieve with the news of Aaron Judges staying in New York, and now they want to know who might the Yanks add. They need a left fielder where it is that might be the Pirates, Brian Reynolds or a return of Andrew Benn and Tendy. They'd like to add a starting pitcher. Carlos Rodon has been mentioned, but he's

looking for a lot. Six years, hundred eighty million. The money being thrown around is stagger and much was made of Judge being the poster boy for betting on yourself by turning the Yanks down last spring. He ended up with almost a hundred fifty million dollars. More, how about Xander Bogart's The Red Sox last spring offered him six years, a hundred and twenty million, and like Judge, he passed had a strong season. Boguards signed last night with San

Diego eleven years, two hundred and eighty million. Red Sox lost Boguards, but they signed veteran to lead or Kenley Jansen and Japanese outfielder Massa Taka Yoshida. The Mets signed veteran pitcher pose A Kintana for two years. He's about to turn thirty four. Last season, Quintana had the lowest home run aloud rate in the National League. Nix and Nets both one at home. Knix over Atlanta one thirteen

to eighty nine. They held the Hawks to thirty eight percent shooting for Julius Randall thirty four points seventeen rebounds. The Nets got thirty three from Kyrie Irving and twenty nine for Kevin Duran. They beat Charlotte one sixteen Rangers in Vegas one one third period. Rangers scored four times because the Banda Dad the first and last, both on the power play, three goals in a span of under two minutes. The Rangers won five to one. St. John's

beat De Paul eight six sixty seven. John Stashower, Bloomberg Sports, Nathan all Right, John, thank you, Bloomberg Sports. Is brought to you by Audie. Don't let someone else drive off in the Audi model you've always wanted. Visit your local Try State Audie dealer to get behind the wheel of yours today, or visit Autie Offers dot com for more information. It's five on Wall Street time for the Tri State Business Report with Bloomberg's ed Corey Hudson Yards, Developer Related

Companies is proposing a resort with guest rooms. The plan is part of a bid for one of New York's gaming licenses. Plans also call for about twenty restaurants, a nightclub, theater, and casino with the second phase of the project on Manhattan's far West Side. Manhattan apartment rants went up a little in November after three months of declines, but the market is not returning to the hyper competitive heights of

the summer. Median rent rose about two percent from October to four thousand and ninety five dollars, third highest level ever recorded by Biller, Samuel and Douglas Eleman. Real Estate India's Tata Consultancy is accused of bias against workers who were not South Asian or are US born. The lawsuit was filed Wednesday in the U S district cord for the District of New Jersey by a former Tata employee. It's similar to prior cases against the I T Services Giant.

Back you, Bloomberg Tri State Business Report. I did, Corey alright ed? Thank you now for update on small businesses. Let's go to Bloomberg. Slee Sa Mateo with the Bloomberg Small Business Report, brought to you by Dell. I'm Lisa Mateo. Some relief for businesses affected by natural disasters. The US Small Business Administration says it will waive the interest rate for the first year on new disaster loans and extend

the initial payment deferment period automatically to twelve months. That change covers all approved disaster loans declared on or after September one through September. Hiring is on the rise. The Sea Biz Small Business Employment Index increased just over half a percent in November, reversing a downward trend for the

previous three months. The company credits the growth to strength and consumer spending and small business owners in Florida are looking forward to the Formula one Grand Prix and Miami Gardens. Last year, the event proved a helpful boost to their profits as it drew in more than two hundred and forty thousand visitors this year. It will take place at hard Rock Stadium in May. And that's the Bloomberg Small Business Report. Okay, Lisa, thank you for that. Let's take

a look at these markets now. Futures kind of quiet this morning. The action remains in the bond space, with SMP futures right now up five points, Stown futures up eleven. That's little changed. In NASDAC futures getting just a little bit of ground right now, they're up twenty seven points. That's a gain of almost a quarter percent. Tenure Treasury

is down eight thirty seconds. The three point for four percent on the benchmark yield on the two year four point to seven percent two ten spread inverted by eighty three and a half basis points. Name Excrudes up eight tenths percent at seventy two fifty six of barrel and Comics Gold is down almost two tenths percent at seventy announced. We'll get a fuller look at this market next. S D. Dwack, the chief investment officer at Flow Bank, joins us. Next

to this is Bloomberg 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 Bloomberg business lash and I'm Karen Moscow and us on the index. Futures are higher this morning. European equities, meanwhile, are extending a four days slide as optimism over a potential downshift in federal reserve rate hikes deflates in the face of some economic headwinds. You check the markets all day long

on Bloomberg Radio. Right now, SMP futures are up four points at the tenth of upper cent. DAL futures are a little changed. NASDACK future is up two tenths per center twenty five points. The decks in Germany's down almost two tenths of upper sent ten. Your treasury down eight thirty seconds. He'll three point four or four percent. They yield on the two year four point to seven percent. Nimex screwed oil is up nine tenths per cent, or sixty four cents at seventy two dollars sixty four cents

of barrel. Comex school down two tenths per cent or three dollars. That's ounce. The euro one point oh five oh two against the dollar. British found one point one zero, the unis at one thirty six point nine zero, and Bitcoin it's little changed at sixteen thousand, eight hundred dollars. And that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. The House is set to take

a final vote on pretensions for same sex marriages. Today's vote will send the legislation to President Joe Biden. Members of former President Donald Trump's team notified the FBI they had found additional documents marked it's classified in a Florida's storage facility near Palm Beach. The chair of the House committee investigating last year's January six attack on the Capitol says the panel's report will be released December twenty one. In the NBA, the Nets, Knicks and Celtics were winners,

the Wizards and Warriors lost. In the NHL, the Rangers, Bruins and Capitals all one Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journal fin analysts, more than twenty countries Michael Barrett. This is Bloomberg. Nick. Okay, Michael. Thanks. It's five forty two on Wall Street. This is Bloomberg day Break. Good morning. I'm Nathan Hagar along with Karen Moscow. Let's take a look at some of the other stories

making news this morning. After the epic collapse of f t X, we are now learning the Crypto Exchange was holding talks to sponsor English Premier League teams Manchester United and Liverpool earlier this year. Let's get that story from Bloomberg's Charlie Pellett. The discussions underscore the now bankrupt company's ambitions to expand its global reach and its willingness to

spend significant sums of money to do so. Federal prosecutors in Manhattan have begun investigating ft x's collapse, a decline that included an unexplained eight billion dollar shortfall in funds, and the US Justice Department's bankruptcy watchdog has called for an independent probe. The sources say the numbers associated with each of the potential multi year deals ranged from close to one hundred million dollars to north of that. FDx

ultimately decided against sponsoring either team. In New York. Charlie

Pellette Bloomberg day Break. All right, Charlie, thanks well. On the economic front, this morning, we get the latest reading on the labor market, with the US weekly jobless claims is at an eight thirty Wall Street time economists stay claims probably edged higher last week businesses have started shrimming payrolls and anticipation of an economic slowdown, and Bloomberg's Vinydale Juda says more initial jobless claims retreated in the government's

prior weekly report, falling to two hundred twenty five thousand from a three month high of two hundred forty one thousand. Bloomberg Economics as layoffs aren't yet pervasive, but could accelerate, pushing the unemployment rate to five percent by four In November, the unemployment rate he steady at three point seven percent and near a half century low. Judas Bloomberg day Break. Okay, Vinny, thank you. Now let's get more on what could move

markets today. For that, we're joined live by s D. J. Wack, the chief investment officer at Flow Bank. S D. Good morning. I guess all out of the focus for folks like you has to be on the data. We're seeing in this economy, we've had signs of continued strength in the labor market. Do you think that's going to hold up with the claims that are due out later on this morning? Good morning. Well, we've seen that the claims numbers have held up quite well and have stayed much lower than

the probably than the FED would like to see. But we're getting more and more anecdotal evidence that the labor market is maybe not quite as tight as some of those headline numbers make it seem. And I think that's going to be comforting to the FED ahead of next week's CPI and of course the next FED meeting. Yeah, we do have that final read on inflation before that meeting coming up. We've got some pretty mixed economic data ahead of all that, the continued strength of the labor market.

At the same time, we're seeing some strength in the services set as well. How does that potentially complicate things for this fan? Well, the services numbers earlier in the weeks certainly didn't help and in part led to the ongoing sell off that we're still seeing. Um well, we've seen up until yesterday. We'll see how that, um, how that turns out today. If futures are starting to point

up a little bit UM. I think today markets are worried that uh, this underlying strength is not going to last, that we're getting more and more indicators that UM will have lagged effects in this economy, and that things will deteriorate next year. I think the market has been a little overly negative in the last couple of days. But UM, certainly we know the services are the area that stay strong. That's also the area where we're seeing the wage pressures

and the tighter labor market UM. So all of those are just one extra headache for the FED because other indicators are certainly pointing in the right direction for what the FED has been trying to achieve. Interesting that you say that you're seeing maybe a bit of an overreaction

in the markets. Of course, we've gotten all the commentary this week from the big Wall Street bank chief's warning about recession, and of course now with the twos and tens at this forty plus year inversion, what are you seeing that makes you think that this could potentially be something of an overreaction. Well, the the Yale curb in version isn't new. We've had that for a while. Yes, it's become a little more extreme, but it's certainly been

inverted for quite some time. And if you look below the headline of some of those bank bank chief commentaries, they weren't as negative as some of the headlines made it to be. There's certainly a concern, and I think everyone, especially in the US economy, you have that sort of preemptive firing that happens that trying to cut the call. That's always something that we see banks do, and so they have u not an excuse, but at least a

reason for it. Um. But as we're saying earlier, some of these services numbers and some of this other economic data is holding up, so the FED is closer to the end um of its tightening cycle. Then it doesn't mean that the recession has to be as serious as what the markets are reacting to um this week, even though we haven't seen that many data points in that direction.

So are you looking at certain sectors or certain styles for opportunity in this type of environment where if if things pan out the way I think I hear you saying that they might, that the FED might start to move towards slower interest rate hikes sooner than the market might be expecting. I think the market is expecting fifty basis points next week, and I think that's what we're going to get. Whether we get another twenty five early

next year is is a possibility. But we are certainly getting towards the end of the aggressive part of the typnic cycle and potentially the tight nic cycle. The FED is going to spend a lot of time talking to us about higher for longer, and I think they're going to try to keep working to price out those rates cuts rate cuts that the market has in their numbers for the end of next year, So there's going to

be work over there. But the slowdown, we haven't seen any real catalyst for the sharp correction in markets of the last couple of days. We know that positioning got lighter again, so people just maybe got they had a couple bad days and then they figured out this was another bare market rally, let's get out. That's certainly not helping. But the picture for the FED hasn't changed so much in the last two days, and the picture for growth hasn't either. Got about thirty seconds left here ask you.

Of course, we saw that big surge in Hong Kong shares overnight on signs that there could be even further easing away from the strictest COVID zero policies. Does China look more invest well to you? Now? China does look

more investable. Um, We're seeing a couple of different actions from the Chinese policymakers, one mentioning that focus on growth to of course the reopening measures that we're seeing, although it might not be quite as simple as as the way we're looking at it right now, and of course the support for the real estate market and when you put those together is certainly looking better if they look at they kind of ease off on the regulation as well for some of the big tech it certainly makes

it a more interesting investment in environment. Thanks as always as the great getting your thoughts. Sd J. Wag, chief investment officer at Flow Bank with us this morning. STP futures right now up one point. The future is now down twenty one points. NASTACK futures higher by sixteen points. The tenure Treasury is down eight thirty seconds. The yield three point four four percent, yield on the two year

four point to seven percent. This is Bloomberg 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 Bloomberg Business lash and I'm Karen Moscow. A US DOCK Index futures are mostly higher, with SMP futures of four points or a tenth of a percent. NASDACK futures have two tens per cent or twenty four points.

Will down futures are a little change this morning. The decks in Germany is down about a third of a percent. Ten year treasury down eight thirty seconds, you know, three point four or four percent, and a yield on the two year at four point to seven percent. Nine X screwed oil is up one percent or seventy two cents at seventy two seventy three cents a barrel comic school down a tenth of upper cent or two dollars sixty

cents at seventeen. The euro one point oh five oh six against the dollar, British pound one point two one six one, and the yennis at one thirty six point nine three bitcoy this morning, lit'll change at sixteen thousand, eight hundred dollars, and sources telling Bloomberg that Unilever is weighing the sale of a portfolio of US ice cream brands that could be valued at as much as three billion dollars, and as a Bloomberg Business flash, Nathan, all right, Karen,

thank you. It's now five fifty six on Wall Street. It's time for our daily Bloomberg Law Brief, exploring legal issues in the news. Today, we're looking at a Trump business that's been convicted of criminal conduct for the first time. After a month long trial, a jury in New York has convicted to Trump organization companies Trump Corporation and Trump Payroll Corporation of all seventeen counts against them, including a scheme to the fraud, conspiracy, criminal tax fraud, and falsifying

business records. Former President Donald Trump was not charged in this case. For more, Bloomberg's June Grosso speaks with Bloomberg Legal reporter Patricia Hurtado, who covered the trial. What's the likely sentence for this verdict? Well, both of the companies now what is estimated to be a grand total of one point six million dollars and fine for not having the employees paying taxes and for being convicted. Some may say, well, that's paltry for a company like Trump Ort. Why does

it matter? But it's a huge taint on the good name and goodwill of the company that is belongs to the former president. He obviously was tweeting about it and complaining that he knew nothing of this fraud. Some people are suggesting to us that it may make it more difficult for the company to do business because some lenders and possibly partners may not want to do any business anymore with such Trump Org and its entities because of this conviction, Because why would you want to do business

with a salon? There's nothing regulatory about state law. It's it's not as rigorous as one would hope to get, and yet you know it's got a reputational harm to it. There's part of Trump's response. The case was about Alan Wisselberg committing tax for a on his personal tax returns, etcetera. Every witness repeatedly testified that President Trump and the Trump family knew nothing about his actions. But wasn't there testimony

about Trump approving these transactions and signing checks. They showed ledgers or memos where Trump was personally okay certain bonus payments, and you saw his you know, signature and initials with the Black sharky Okaine. These payments. You saw him approving certain executive getting car leases. There were three employees that testified for the prosecutors, and the testimony showed that basically Donald Trump had to and did approve and sign every

check over. And when you start thinking about what wou did Donald Trump see and what came across his death, that's obviously many of these payments, like including car payments to these leases for these Mercedes ben were approved by Donald Trump. There was also evidence that show he had had conversation with Weifelberg about getting an impartment for him that it was going to be paid for by the Trump corporation. So there were many indications that Trump knew.

That's Bloomberg Legal reporter Patricia Hurtado speaking with Bloomberg June Grosso. You can catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law podcast or downloading the show at Bloomberg dot com, Slash podcasts, and attorneys can find exceptional legal research and business development tools at Bloomberg law dot com and on the Bloomberg

terminal at the Law Go straight ahead. We'll get a check out of your latest business headlines, all the news you need to start your day. Our two of Bloomberg Daybreak starts right now