Bloomberg Daybreak: December 8, 2022 - Hour 2 (Radio)

Yorkers to avoid the Triple Demick. Plus, New Jersey Governor Murphy is out of the hospital, left of surgery. On Michael bar More Ahead, I'm John Stay Shower and Sports. Aaron Judge resigned with the Yankees, the Mets at a picture wins for the Knicks, Nets Rangers in St. John.

That's all s Train ahead on Bloomberg Daybreak on Bloomberg eleven Free on New York, Bloomberg N one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine Team and around the world old on Bloomberg Radio Dot Carmen the Bloomberg Business. Good morning. I'm Nathan Hagar and I'm Karen Moscow, and

US stock index futures are mostly higher this morning. Sex So went on Wall Street and we check the markets all day long here at Bloomberg radios and p futures of four points or a tenth of a percent. Our futures that will change and nasday futures have two ten percent or twenty four points. Tenure treasury down eight thirty seconds. You three point four or four percent yield on the two year four point to seven percent. Nathan 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 gage often used to predict recessions, is it's most inverted since the nineteen seventies. David Harden is 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 hopes. I think maybe they're wanting that under their Christmas tree, if you will and and so I think this starts 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 Hankstang game more than three percent in today's session, and we get the recap from Bloomberry, Yvon 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 cut in 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's biggest insurers to buy bonds after retail investors offload to cash from their fixed income investments. In Hong Kong, I'm Von Man Bloomberg Daybreak, All right, Von, thank you. Meantime in China, a senior health advisers warning the vast majority of the population could 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 sixty of the population could get infected in the first wave. Well 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. Let's get the details live with the Bloomberg Steve Rappaport, Good morning, Steve, 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 in debt Twitter took on as part of his acquisition of the platform. The banks, led by Morgan Stanley, put up their own cash to carry the entire debt package. Because of the decline and credit markets, Musk's tumultuous start

at the helm of Twitter didn't help 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. All right, Steve, Thanks. 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. We get the details from Amy Morris in our Bloomberg ninety one 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 f t 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 except for the thirteen Bank mun 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 Amy Moore as Bloomberg Daybreak, All right, Amy, thank you, and now it's not the

only news on disgraced former executives this morning. Late yesterday, former theropised president and chief operating officer Ram Sunny Malwani but sentenced to prison, and Bloomberg said, Baxter has the story. The sentence coming from US District Judge Edward Davola and San Jose thirteen years for defrauding investors and patients of Pharanos. Dogwani 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 and making for an interesting

picture of corporate America. And now we're learning X on mobiles awarding its employees in the US pay increases above inflation. Just weeks after posting record profit. Bloomberg's Charlie p Hellett has more. It underscores just how strong two has been for the fossil fuel industry. A lot of sectors, like

technology and finance are cutting jobs. Sources tell Bloomberg workers will receive an average salary bump of nine percent 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 Pealty Bloomberg day Break, Great, 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 the management over a stamped contract. A New York Times spokesperson said the company was disappointed that the News guild was threatening to strike. In futures this morning are higher, s and P future is a five points or a tenth of a percent down. Futures are a little changed and ASDAC futures have a quarter percent or twenties six points

straight ahead. We have your latest local headlines plus the check of sports, and this is Bloomberg Karen, Thanks six o seven on Wall Street. Fifty degrees in Central Park. Should stay sunny and cool today with highs in the low fifties, but getting ready for a big change at the end of the week and the possibility potential for some snow. It's bringing Michael bar for Look what else is going on in New York and around the world. Yes,

I said it the S word. Thanks, You're welcome. You're having Tocalist pushing efforts to keep New Yorkers healthy with winter and the holiday is just ahead. Hocal says people need to take precautions because COVID cases are taking up alongside r s V in children and influenza. Are not all the woods. That thread is real and we have cases. Remember this. We're watching this intensely. The winter is often a tough time for the most vulnerable, but Hocal promises

New Yorker 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 norm. That everybody gets sick Governor Hocal said as the state will provide testing vaccines and nearly eight thousand ventilators set 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. Adams, speaking at a faith based summits in New York, says, all we do is kick 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 off the dysfunctionality of

our cities across the America. 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 in immigrants. The White House says President Joe Biden will announce the thirties six billion dollar bailout for the Central States Pension Fund, helping to shore 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 unions, averting a possible strike that threatened to cripple the economy. However, four of the unions involved rejected the contract. New Jersey Governor Phil Murphy had minor

surgery yesterday and his 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 kansaas tumor Murphy had removed from his kidney. In Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries, Michael Barr and This Bloomberg Nathan Thanks Michael.

Almost six ten on Wall Street Time for the Bloomberg Sports that Day, brought to you by Try State. How did U s Johnstad Show? Thanks Nathan. After the news that Aaron Judge had resigned with the Yankees, some details emerged about how it all went down. Believed to be

a two horse race between the Yankees and Giants. The same Diego Padres swooped in offered Judge reported ten years, four hundred million dollars that got the attention to him Nankee owner Hall Hall Steinbrenner, who was vacationing in Italy. He got on the phone with Judge upped his offer to the nine years, three hundred sixty million that got the deal done. Yankee g M. Brian Cashman said Steinbrenner

was the Mariano Rivera of the negotiations. The Padres then used some of that money last night to sign Xander Bogart's away from the Red Soft for eleven years, two hundred and eighty million. The Mets added a picture veteran Jose Quintana. This will be his seventh team. He pitched to an e r A under three last season nixt all of a sudden playing defense. They had allowed over a hundred points in each of the first twenty three games. They allowed under ninety in the last two being Atlantic.

The Garden went thirteen to eighty nine. Big night for Julius Randall thirty four points, seventeen rebounds at Barkley's then estimated five of the last six beat Charlotte won two to one, sixteen. Kyber Yourving thirty three points, Kevin Durant had twenty nine and set Curry twenty but three of them combined for one 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. In Buffalo's win over Columbus, five goals for the Sabers, Page Thompson he ted NHL record, scoring four goals in the first period, Big East opener for St. John's eight six sixty seven win over to Paul John Stash Howard, 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. Just ahead, we'll get the latest on Elon Musk and Twitter. Could the deal be restructured for the forty four billion dollar take over. We'll get more on that shortly. First, futures are moving just a touch higher now, with SMP futures up three points, Staff futures little changed, up five points,

and NASTAC futures are higher by seventeen points ten. Your treasuries down seven thirty seconds, the yield on the benchmark three point four four percent and at six twelve on Wall Street. Good morning, this is Bloomberg Day Break. We

want to get to the latest on Twitter. Now. The saga continues with the new loan or elon Musk potentially in line to have the massive pile of debt he took on to buy the company restructured with new margin loans backed by stock from one of his other companies, Tesla. Let's bring in Bloomberg Quick Take correspondent Alex Webb for more on this news. Alex, good morning. How would this restructuring work exactly? Yes, So, as you say, he has pretty high interest payments right now on on the debt

that was raised to pay for Twitter. In fact, Bloomberg has reported that the interest costs are about one point two billion dollars a year. That's considerably more than could

has ever managed to post in free cash flow. Um. So, what this seems to be doing is that he would then take a margin loan backed by his Tesla stock, which would then presumably be at a far um more amenable interest rate UM and be able to then pay down some of those those other um uh, some of the there's other loans that he has taken UM in order from the deal. Oh say, so what could the potential impact v on Tesla's stock given that, as far as I understand it, these margin loans are going to

be backed by shares of Tesla. I'm looking at the stock in the pre market this morning, it's moving a little bit lower. Does this put Tesla under even more pressure? It's hard to see how it doesn't put down Tessa under a little bit of pressure. Of course, you know, this is still going to be a very small proportion

of the total um float of Tesla ches um. The unit stock has come down quite a lot since Elon got involved with Twitter, and it does mean that there will be a certain amount of volatility tied to Twitter's performance. You know, Twitter fails to um improve its financial performance, then there's an implication that some of the Tesla stock may go away from you know, you know, might have to sacrifice some of that tess stop extreme eventuality. But

it's a possibility. Yeah, And how are we structuring like this effect the risks that the banks themselves have taken on. From what I understand, they put a lot of their own cash into the original deal for Elon Musk to buy Twitter. Well, well, that is unclear because we don't know exactly which part of the um the debt would

be repaid. Blooms reported is po likely to be the unsecured debt um which from which Twitter pay is an interest rate of about eleven point seven five percent, But there are still other parts that, um, you know, the banks haven't been able to re sell given the the tightening conditions in in the debt market or the more difficult conditions in the debt market. So it may be that this is really about Elon Robin the banks themselves. Well,

what does this say? What what are the implications for Elon Musk's own solvency here when he's thinking about taking margin loans like this? What what does it potentially tell us about Elon musks on financial security. Well, I mean it's clearly some slightly imaginative, Um, it's in a matching way for him to generate funding. He yes, he's the richest man in the world. His wealth has still come down from um, you know, the order of two hundred and eighty billion UM a year ago to only in

inverted commas a hundred and seventy one billion today. This remains a small slice of his net worth, but of course he doesn't have that many liquid assets. Most of that network is tied up in his test stock is SpaceX stock UM and of course now Twitter itself, So he doesn't have the liquidity that the big tick sticker number would imply, and that's why he has to resort

somebody slightly more imaginative financing options. Of course, a lot of what we've seen in terms of trying to get Twitter back on a firmer financial footing is to do huge rounds of layoffs and lots of cost thing. Since Elon Musk has taken over, does that change things in terms of how a restructuring of the debt could be handled here, Yes, because if it means that the debt repayments UM are reduced, then the need to find capital

quickly and find cash flow quickly is diminished. You know, there's a little bit of a catch twenty two situation here where if he cuts jobs too quickly then uh, it poses risks to income because you've seen a lot of advertisers back away from Twitter, at least on a temporary basis. So you know, Twitter was expected before this deal was completed to have um negative free cash flow of about twenty three million dollars this year. That would have been increasing to an order of two hundred million

dollars next year. That's a long way short of the one point two billion a year that he needs to find. He is having now come in and cleared the deck at the phase where he has to work out now how to make more money, and that you know, he's likely to require adding head count, certainly in some positions, not least in engineering roles. So giving a little bit of financial flexibility might enable him to do that. All right, Alex Webb as always good to talk with you as

the Twitter Elon Musk saga continues. Alex Webb quick take, correspondent at Bloomberg News, joining US Live this morning and again Tesla shares onward that Elon Musk bankers are considering new margin loans backed by Tesla stock. Tesla's down just about two percent in the pre market. Futures little changed

this morning. SMP futures are up two points, STOW futures down one Nasdaq futures are higher by fourteen points, the tenure treasuries down six thirty seconds, the three point four or four percent, and the yield on the two year right now four point to six percent. Still ahead. We'll look at Republicans priorities when they take back the majority in the House. Next. About the conversation on the way

with GOP Congressman French Hill of Arkansas. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Attend at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow. And US dondex futures are steady after a five day routes sparked by concerns at the Federal Reserve overmain hawkish

in the face of economic headwinds. And we check the markets all day long here on Bloomberg Radio, with US and P futures up four points of a tenth of Upper sent DAL future is little changed and NASDAG future is up almost two tenths per cent or twenty points. The decks in Germany is down about four tenths of a per cent. Ten Your treasury down six thirties seconds held three point four or four percent. That yield on the two year four point to six percent. NIMEX screwed

oil is up seven tenths percent or fifty cents. It's a seventy two fifty cents of barrel. 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. At least two more classified documents have been found in possession of former President Donald Trump, his lawyers saying 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 sent 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 quick Take, powered by more than seven hundred journalists, had analysted more than

one d twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan all right, Michael, thank you. It is six three on Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak.

Well after the Georgia Senate runoff at Raphael Warnock securing the final Senate seat for Democrats, the new Congress is outlining its priorities for the new year, and Republican Congressman French Hill of Arkansas spoke with our David Weston on Bloomberg's Balance Power to discuss financial regulation priorities in the new Congress, including cryptocurrency regulation. Let's talk about the next

Congress and what you anticipate. Now you're gonna be in the majority position here, uh so you're gonna have more say over what happens. What do you want to get accomplished? You and your Committee Financial Service commedite. What do you want to get a complish in the next and the next Congress? This upcoming congress, we set the agenda in House Financial Services Committee. We have some key goals we want to pursue. First, we'd like to have a bipartisan

oversight and regulatory measure for digital assets. We'd like to take the collapse of f t X and do something positive with that by having a consensus on both sides of the hill on the right kind of regulatory proposal for the digital assets and one that will preserve that business here in the United States and preserve the ability to innovate on blockchain. We think that's key. Next, we'd love to find a solution on a permanent reauthorization of

the flood insurance program. We're on seventeen eighteen continuing resolutions there. I'd like to see a permanent reauthorization of our national flood program. It's important to our communities, homeowners, resilient communities, so that's a key feature. And look, we want to make sure our regulatory agencies like the SEC, the bank regulators, don't block capital formation. So you'll see US approve policy ideas and legislative ideas that enhance capital formation. So let's

pick up a couple of as we could. Let's start with FTX in the crypto situation. As I understand it, before you get to the new Congress, you're plan on having some hearings in the current Congress. In the Lame Ducks edition, do we know whether Sam bankman Fried is gonna show up or not as he told you? And if he doesn't, will you compel him? Well, he tweeted that he wasn't going to appear, and I think 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 with Andrew Ross Sorkin and make all these Twitter appearances, he can appear before our committee. I would certainly encourage Patrick mckenry and Share Waters to work together to compel him to appear. We want answers to what happened at ft X. Do you have a sense, Congressman going past ft X Once you figure out what happened, what sorts of regulation may be appropriate from Congress or

doesn't have to come from the regulators. Well, I know. Reggie Torrez, a member of Congress from New York, wrote Chairman Ginsler, blaming the f t X collective collapse on him, that he has all the power to have properly handled this and he didn't exercise it. So there is concerned about what authorities the regulators have and what authorities they

don't have. I think we ought to have a legislative solution define what a digital asset is and provides some transparency and clarity for consumers, investors, and innovators on blockchain as to what the rules are. We have a functional regulation system in our country, whether you're a commodity or a security, whether you're to be regulator as an investment or something else, and we need to clarify that so

that America remains an innovative place for blockchain. And that was Republican Congressman French Hill of Arkansas speaking with David Weston on Bloomberg's Balance of Power. You can get the full interview on Bloomberg dot Com and on the Bloomberg terminal. Don't forget to tune into Balance of Power weekdays on Bloomberg Radio. It begins at noon Wall Street time. Bloomberg Daybreak is brought to you by ancient accountants and advisors, the right fit tax and accounting firm that you need

to succeed. Visit them at Ancient dot Com slash v I P to learn more. That's ancient dot Com slash v I P futures just to touch higher Right now, S and P futures are up five points, NASTAC futures up nineteen. We'll get a look at your top stories, plus your local headlines in a full check of markets. Just to head first, here's Bloomberg meteorologist Rob Carolin with

a look at the weather forecast. There'll be some passing flowning this today, but all in all, the triest Toady area should end up partly sunny today with temperatures between fifty and fifty five. This afternoon, we're partly cloudy loves in the city overnight near thirty five, will be in the twenties and the suburbs. I pressure holds on through tomorrow, partial sun forty five, partly to mostly cloudy for Saturday forty five, and there's a chance of rain of wet

snow on Sunday. I'm Rob Caroline with your weekend forecast on Bloomberg eleven three oh broadcasting live from the Bloomberg Interactive Broker's studio in New York, Bloomberg elving to Washington, d C, Bloomberg one to Boston, Bloomberg one O six one to San Francisco, Bloomberg sixty to the Country, Syria's xm J A one nine team, and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak six on Wall Street. Good morning, I'm Nathan

Haggard and I'm Karen Moscow. We're nearly three hours away from the open of US trading. Time for the five things that you need to note to start your day. Brought to you by Interactive Brokers I b k R. Event Trader offers a new way to trade futures. Use event contracts to trade your opinion on yes or no questions and key CME futures markets. Learn more at event trader dot Interactive Brokers dot com up first US DOT

Index futures are mostly higher this morning. Songs are coming off five straight days of losses, and the spread between the two year and ten year yields is the most inverted since the nineteen seventies. PGM chief investment strategist and head of Global Bonds, Robert Tipps says he sees moderate earnings risk on the horizon, which is hewing 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 and PGMs. Robert Tipps says he expects the bond market to continue performing well as the FED raises rates in Asia. Overnight, Karen Hong Kong's Hanks, saying Index game more than three percent. That's after local media reported Hong Kong is considering scrapping outdoor mask mandates and easing COVID 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. Bloomberry Steve Rappaport trains US Live with more in that story. 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 that 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. Okay, Steve. Thanks.

Another corporate note this morning, former Farness president and chief operating officer Remesh Sunny Balwani has been sentenced to thirteen years in prison after the company's founder Elizabeth Holmes was sentenced to eleven years for well Nathan Turning to another disgraced venture, ft X founder Sam Bankman Freed maybe appearing on Capitol Hill next week. Republican Arkansas Representative french Hill says having Sam Bankman Freed 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 Ross Sorkin and make all these Twitter appearances, he can appear before our committee. Congressman french Hill may the comments on Bloomberg's balance of power catch the program weekdays at noon and Wall Street time on

Bloomberg Radio. And that's the five things you need to know to start your day, brought to you by Interactive Brokers. And again, futures are higher this morning with S and P. Futures up about seven points, up about two tens of upper cent DWAL future is little change and NASDAIC futures up to tens of upper cent or twenty four points. Say ahead, your latest local headlines plus a check of sports, and this is Bloomberg. All right, Karen, thank you, six

thirty one on Wall Street. Let's bring in Michael bar with a look at what's going on in New York and around the world. One skin, Good morning, Michael, Good morning, Nathan. New York Governor Kathy Oakle says complacency is our enemy when it comes to fighting COVID, the flu and r s V. And step up this time, step up in December and January, get us through February, get us through the worst times by just if you're gonna see somebody

that's in a vulnerable situation, just get tested. Governor Hokel says New York will be ready with testing and vaccines. New Jersey Governor Phil Murphy is recovering at home after his office says 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 kancerous 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. Adam 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're going to fail a large number of people, and they're primarily black and brown and immigrants, and we know it. Frustrated, Adams says, we spend billions

of taxpayer dollars for the broken issues we created. Months after the FBI sees records marked classified from Mara Lago, more sensitive documents are surfacing, this time in the storage unit said to be used by former President Trump in Florida. Loyola law professor Lori Levinson it is clear that the judges have gone to Trump and his lawyers and said searching 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, Global Needs twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists analyists more than a hundred twenty countries. Michael Barr, this is Bloomberg Natham. Thanks Michael, six thirty three on Wall Street time for the Bloomberg Sports up.

They brought to you by Trice State Out of Here's John Stapshot. All right, Nathan Yankee. Fans obviously relieved with the news that Aaron Judge staying in New York, and now they want to know who might be Yanks add they need a left fielder where it is that might be the Pirates Brian Reynolds or a return of Andrew Bennintinni. They like that a starting pitcher. Carlos Radon's name has been mentioned, but he's looking for a lot six years,

hundred eighty million. The money being thrown around his staggering Much court was made of Judge being the poster boyd for betting on yourself by turning the Yanks down last spring. He ended up with almost a hundred fifty million dollars more. How about Xandrew Bogart's Red Softs last spring up for him? Six years, hundred twenty million. Like Judge, he passed had a strong season. Bogart signed last night with San Diego

eleven years, two hundred and eighty million. The Red Sox lost Bogarts, but they signed veteran reliever Kenny Jansen and Japanese outfielder Massataka Yoshida. The Mets signed veteran picture Jose Quintana for two years. Last season, Quintana had the lowest home run aloud rate in the National League. Next and NET both one and all mix over Atlanta one thirteen to eighty nine the ELBA Hawks to thirty eight percent

shooting for Julius Randall thirty four points, seventeen rebounds. Net's got thirty three from Kyrie Irving, Kevin Der Anthony Beach Charlotte to one sixteen. The Rangers in Vegas won one third period when the Rangers scored four times three in a span of under two minutes. They won five to one. St. John's beat to Paul eighties six sixty seven Yukon one at Florida. By twenty one, the Huskies are ten down. Oh John Stashia War Bloomberg Sports Nathan Think John stash

Our Bloomberg Sports was brought to you by Autie. Don't let someone else drive off in the Outye model you've always wanted. Visit your local try state Autie dealer to get behind the wheel of yours today, or visit Outie Offers dot com for more information. It is now six thirty five on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate

radio stations around the world. I'm Courtney Donahoe on kt r H in Houston. Exon is giving its staff big pay bumps, says profit Source. I'm Gina Servetti and for KCBS in San Francisco. I'm reporting that if you think you're going to throw a New Year's Eve party at an Airbnb, maybe not. I'm Jeff Bullinger and on Cogo in San Diego. I'll be talking about the big tech companies that are building an enterprise cloud system for the Pentagon.

I'm Kimberly Adams are on KYW in Philadelphia. I'll be reporting on thousands of New York Times employees preparing the Stagia one Day walkout. I'm Caroline Head and bloom bagh d A B. Dam Landon. We've been reporting on Van God pulling out of the world's largest climate finance alliance that was spearheaded by the former Bank of England Governor Mart Conny. I'm at Tory on w w J in Detroit. I'm reporting youth car prices across the country fell again

in November. And those are some of the stories our twenty hundred Bloomberg journalists and analysts are working on this morning around the world. Now let's go to the Green Business Report, and here's Bloomberg's Jeff Bellinger. This is the Bloomberg Green Report. Hopes for wider adoption of electric vehicles have been fueled in part by declines in battery prices. It was a trend that went on for a decade,

but at ground to a halt this year. Bloomberg Neft's annual Lithium ion battery price survey found there was a seven percent increase in average pack prices and twenty two It is the first increase in the history of the survey. Several things are driving the price hikes and The biggest factor is rising material costs. The prices of nickel and cobalt have eased recently, but they are still higher than

they were a year ago. Lithium prices may be about to turn, but they are still higher than they've been in recent years. Strong battery demand is another issue, because there's a lad again how fast new supply can be brought online. Bloomberg Neft's energy storage team expects prices to remain elevated through next year, then begin to fall in four is more raw material supply comes online. Jeff Blinger,

Bloomberg Radio. All right, Jeff, thank you. On top of the big rays coming for x On Mobile employees after the company's record profit. This red headline just across the Bloomberg terminal. Regarding the oil giant, it's expanding its share buy back program to fifty billion dollars through. That's compared to an earlier plans to spend thirty billion dollars to buy back shares through next year. Right now, Exxon shares are higher by one point four percent in early trading.

Futures starting to gain some ground this morning. SMP futures are up eight points. Stown futures up thirty seven and NASDAC futures are higher by twenty seven points. Tenure treasuries down six thirty seconds, the yield three point four four percent. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quicktake. This is a Bloomberg Business clash, and I'm Karen Moscow in US dot index future is

showing a bit more strength this morning. We go to the First Word breaking news desk for today's morning call in Here's film Malodey Bill, good morning, and good morning Karen. Modest games in the US futures right now with death futures up thirty seven points, sesapes gain eight and as the futures are higher by the US ten yield at three point four or four percent, Gold is down three, Oil is in the green, and bitcoin is trading little changed.

Hong Kong jumped three point four percent overnight on more reopening signs, while your PR markets are trading in the red this morning. Back in the US on the economic Frinday thirty initial jobs claims and after the bellis night game stop sales did miss estimates and a deal. News people familiar said that Uni lever is to weighing the sale of it's US ice cream brands that may be valued at up to one point may be valued at

up to three billion. In other news, Excellent expanded Sherry purchase programs up to fifty billion through four and wrapping things up. Avalon Bay was cutting neutral over at Goldman Sachs salesforce continued ship Robert Batt and Vulcan Materials was raised to overweight over at JP. Morgan Live from the First Breaking News Descomb, Bill Maloney, Karen Rank, Bill, thanks to you here live breaking news. Over your Bloomberg type squawk on your termin I'll scu you a w K

and that's a Bloomberg business flash. Now here's Michael Barr with Moore on what's going on around the world. Michael, Karen, thank you very much. 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. Members of former President Donald Trump's team notified the FBI they had found additional documents marked as classified in a Florida

storage facility near Palm Beach. The chair of the House committee investigating last year's January sixth attack on the Capitol says the Olds report will be released December twenty one. In the NBA, the Nets, Next and Celtics all 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 journalists and analysts more than

a hundred twenty countries. I'm Michael Bar. This is Bloomberg. Karen all right, Michael Barr, thank you at six forty two on Wall Street. And let's turn to news and science and technology now with a Bloomberg and j I

T STEM Report. It has brought to you by New Jersey Institute of Technology, and j i T offers New Jersey's first undergraduate degree in fintech, tech driven finance focused What will you make at n j I T. Learn more at n j I T dot E d U slash fintech and now here's just making news and science, technology, engineering, and math. Several U S Senators are willing to subpoena f t X founder Sam Bankman Freed if he does

not choose to voluntarily answer questions. Senator Shared Brown and Patrick Toomey have asked Bank been free to test a five before hearing on cryptocurrency. Brown wrote that Bank ben Freed must answer for the failures of f t X and alometer research. The Biden administration is taking sides against Google and what's seen as a consequential case involving social media and a Supreme Court filing. The Justice Department argued that social media website should be held liable for promoting

harmful speech in some cases. The case involves a family wanting to sue Google over a terrorist attack. And Bloomberg News has learned that the Netherlands is planning new controls on exports of chip making equipment to China that could align Dutch trade rules with US efforts to restrict Beijing's access to high end technology. Washington has been pushing its allies to join efforts to cut off China. That's the

Bloomberg and j I t Stem report. Nathan all right, Karen, thank you for coming up to sixty four on Wall Street, and it is time to check what's going on in d C. Some of the top stories in our nation's capital include Congress poking China with a boost of Taiwan and a chipspan in the must pass defense bill, President Biden to announce thirty six billion dollars for an ailing Teamsters pension fund, and Democrats demanding a plan from Elon Musk to combat hate speech on Twitter. Let's get more

on some of these stories. Now. We're joined live by Bloomberg Government congressional reporter Jack Fitzpatrick, who's been watching not just the debate around the Defense bill, but of course a must pass government funding bill before the next shutdown deadline. Jack, good morning, So what are these provisions in the defense bill they could upset China. Well, they're focused on Taiwan. One of them is that it authorizes, or would authorize,

if enacted, ten billion dollars in weapons sales to Taiwan. UH. There's also another measure that generally would restrict the use of semiconductor chips made by some Chinese companies in items used by the military. UH. Some of these provisions were scaled back a bit. There was an earlier proposal two more broadly stop the use of those chips from Chinese companies by all government contractors that would be much more aggressive,

and there was some pushback to that. The Biden administration also succeeded in getting lawmakers to take out language that would designate Taiwan a major non NATO ally, which is essentially already the U s S stance on it. But there was quite a bit of controversy with with China and the Biden administration saying maybe adding that language would go too far, so they've scaled it back in some ways.

But again, the authorization for weapons sales and some limitations on purchases of chips by Chinese companies is definitely a significant thing in this bill. Yeah, interesting to see some of the back and forth going on, given that the president has been at least trying to keep US China relations from getting even worse after that meeting last month with Chinese President She Now, Jack, I know you've been

following very closely what's going on with government funding. There's a shutdown deadline coming up in what a little more than a week. What's the latest there, Yes, the deadline

is the sixteenth, that's next Friday. Uh. The latest I've heard is that Democrats, Uh, this seems to be a joint effort between the House and Senate Democrats are are going to put out their own omnibus UH spending package that they see as more or less a bipartisan offer, even though there's still no bipartisan agreement no Republicans sign off.

So they're going to put out on Monday, the Monday before a Friday deadline, UH, their own omnibus package that they feel like potentially could pass both chambers if there's no sign off from Republican leadership. This would be an extremely long shot, and it's probably more reflective of the fact that there's a bit of a standoff just on the top lines. They haven't decided UH and agreed in a bipartisan way on how much money to spend on defense versus domestic programs UH, And until they do that,

they can't really write a real bipartisan bill. But this is at least a move by Democrats to just kind of shake the branches and see what falls out and hope that it speeds along further negotiations. All right, let's turn to the White House. Now, the self described most pro union president ever is putting a focus on union pensions today. Yes, he is going to hold an announcement today on a thirty six billion dollar bailout for the Central States Pension Fund UH that largely supports retirees and

workers from the Teamsters. Uh This is obviously notable. After uh there was some disappointment among some labor focused supporters of the president on the way the rail strike or the way to avoid a rail strike has has shaken out, with the President pushing for Congress to impose an agreement that four of the thirteen rail freight rail unions did not support. Uh so's He's going to have the president of the Teamsters, the president of the a f l

c I O Labor Secretary at this event. There does seem to be a political angle along this, with Biden sort of trying to re up his or re emphasize his general support for unions. And finally, Jack, in our last minute here, we just got word this hour of more pressure from Capitol Hill on the new CEO and owner of Twitter, Elon Musk, tell us more about that. Yeah, Adam Schiff and Mark Takano, to Democratic members of the House, sent Elon Musk a letter asking him about what they

see as a sharp rise in hate speech on Twitter. UH. They referenced a study by the Center for Countering Digital Hate, saying there's been an increase in anti Semitic and racial slurs since Musk became ci A CEO. Uh so, they they've they've asked him to respond with an outline on what he's doing about that. They also specifically flagged anti l g B t Q uh posts on Twitter. Uh So, definitely a refle action of concern at least among Democrats

on hate speech on Twitter. Alright, Bloomberg Government Congressional reporter Jack Fitzpatrick keeping us on top of all that's happening in Washington. D c n O will be looking very closely for further developments as well on the f t X situation, whether Sam Bank Ben Freed is going to be testifying on Capitol Hill next week, So looking forward to getting the update from you on that as well. You can read much more on Bloomberg dot com or

on the Bloomberg terminal. Follow all the latest on Bloomberg Radio in Washington. Bloomberg and one oh five point seven fm, h D two S ANDP Futures right now gaining some ground. They're up eleven points now. Dal Future is up sixty six. That's a gain of two tenths percent, and the NASDAC futures are higher by thirty four points. Ten. Your treasury is down seven thirty seconds, yield three point four or four percent, and the yield on the two year four

point to seven percent. You're listening to Bloomberg Gaber markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Victaque. This is a Bloomberg Business Flash, and I'm Karen Moscow watching shares of X on mobile this morning at one point seven percent in early training after it expanded its share buyback program to up to fifty billion dollars through four. Meanwhile, futures are also higher, with SMP futures up ten points.

They've been extending their games a bit, up a quarter percent. Down futures have sixty two points or two tenths of a percent, and NASTACK futures up twenty nine and are up about a quarter of a percent. The decks in

Germany's down three tenths of a percent. Ten. Your treasury down eight thirty seconds, held three point four or four percent, and they yield on the two year four point to seven percent nine x, Screwed Oil up one point seven percent of a dollar seventeen at seventy three dollars twenty cents, and Barrel comics gold down a tenth of upper cent

or two dollars at seventeen ninety six an ounce. The Euro one point oh five one one against the dollar, British found one point two one seven five, and the en one thirty six point seven seven bitcoin this morning. That'll change yet about sixteen thousand, eight hundred dollars. And that's a Bloomberg Business flash, Nathan. All right, Karen, thank you.

It is six fifty six on Wall Street. Bloomberg Surveillance is up next, but first we want to take a look at some of the stocks moving in the pre market. Bloomberg's Kaylee Lines joins US Live for that, and Kaylee Karen mentioned the move we're seeing an X on mobile shares on the stock buy back expansion. I wonder if that's part of what's bringing the broader market just a little bit higher right now. Yeah, it definitely could be.

I mean, this move for Exxon is relatively significant. I mean the line on the chart is straight up because it was little change in premarket trading now, it's one three quarters of one percent on this buy back. And when I say buy back, holy buy back fifty billion dollars through four. So they're returning more money to shareholders as these energy companies always seem to prioritize, and they aren't going to up their capital investment. They say that

will remain at twenty five billion dollars through seven. So raises an interesting political question considering the Biden administration has been pushing energy companies like Exxon to reinvest more profit into production to keep prices that pumped down for the American consumer. But clearly x in doing something a little different with that windfall. And it's interesting to contrast this

with what we heard from Chevron yesterday. They're allegating an extra two billion dollars to cap to capex next year to invest in more production. So a bit of a contrast here, but clearly x On investors like what they're hearing, and I guess we're seeing a little bit of a contrast from the traditional energy space to the green energy space.

We're seeing Tesla shares continuing to be under pressure this morning. Yeah, right now, they're down about one point eight percent trading it a hundred and seventy dollars a share, and I think we can chalk up most of that move to

what's going on in China. The company is going to shorten production shifts at its Shanghai factory as soon as Monday, plus they're delaying the onboarding of some new hires, So this really adds fuel to the narrative that demand for Tesla's electric vehicles in China is just simply not meeting expectations. And this is a really important market for Tesla. Made up about two of their revenue last quarter, so China

is very significant. The other Tesla related story that may be weighing on the stock is some blooperg reporting overnight that some of Elon Musk's bankers are considering providing him a new margin loan or multiple loans backed by Tesla stock to replace some of that high interest debt he layered on to buy Twitter forty four billion dollars. So that may be a risk, But China obviously more directly tied to the company's fundamentals, and I think that's what's

dragging on the stock at this point. And just quickly, Kayley, I wonder if that sort of pushes back against the broader China narrative when we're seeing the country sort of go a little bit away from COVID zero. Yeah, in Hong Kong as well, there was more reporting overnight that the government made further loosen restrictions there, so that also

is moving the markets that did so in Asia. It is also affecting some stocks here in the US, including casino operators like Las Vegas stands and when resorts there, each up about three and a half percent because they have big revenue exposure to Macau. And then some of those Chinese technology stocks with listings here the a d R s of Billy Billy, for example, which is a Chinese online entertainment and video company, are doing really well.

That stock is up ten point four percent in pre market today, and it's up a hundred and forty over the course from the start of November two now. So it just really goes to show you how sizeable some of those moves are. Yeah, no kidding, Bloomberg's Kaylee lines, thanks for this, Kayley, great have you gone with us? Looking ahead to the open, futures are moving higher. U S and P futures right now up ten points Nathan Hager alongside Karen Moscow. It is six fifty nine on

Wall Street. Stay with us. Bloomberg surveillance starts right now by from the financial capital of the world, broadcasting across the lode. This is w BBR, New York, Bloomberg E. Living Frio. We're switching from right now inflation fears for recession fears right now, but