Bloomberg Daybreak: December 9, 2022 - Hour 2 (Radio)

US lawmakers. Advocates urge a judge to stop New York mayor Adams from forcing homeless people into mental health treatment, plus a call for new sanctions on Russia and China.

Michael bar More, I'm John stash Our. In sports, the Mets have resigned Brand and Nemo, and they'll play two quarterfinal matches today at the World Come that's all strained ahead on Bloomberg day Break on Bloomberg he Live in three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius Exam one nine Team and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business.

Good Friday morning. I'm Amy Morris and Nathan Hagar. Futures are picking up some steam this morning at six oh one on Wall Street. We checked the markets all day long. At Bloomberg SMP futures right now of fifteen points now futures up eighty NASTAC futures are higher by sixty one points. Tenure Treasury is little changed now. The yield three point for eight percent yield on the two year four point

to seven percent. Nime X screwed is up one percent, up seventy one cents at seventy two dollar sixteen cents a barrel. Komes Gold is up three tenths per cent or five dollar seventy cents at eighteen o seven twenty and ounce. The euro one point zero five six two against the dollar, and the yen is at one thirty six point zero five. Amy, Nathan, we begin with the

latest on Britney Grinder. A plane carrying the w NBA Star has now landed in San Antonio, hours after the White House traded a notorious arms dealer for her release. Grinder is back on US soil, nearly ten months after she was detained in Russia for carrying cannabis oil. Republicans are criticizing the prisoner swap, calling Grinder a geopolitical pawn. Democratic Congresswoman Sheila Jackson Lee represents Grinder's hometown of Houston, Texas.

No American should be left without knowing that the full power of the United States will be behind them to bring them home. Texas Congresswoman Sheila Jackson Li says Grinder's release sends a message and puts a renewed spot lot on x Marine Paul Whalen, he's still being held in Russia. All right, we'll continue following that throughout the morning, Amy,

But let's turn now to the economy. Wall Street is closing out this week with a pair of key economic reports, November's Producer Price Index and the University of Michigan Consumer Sentiment Index. Bloomberg's Michael McKee has a preview. We're into a world of base effects with the November Producer Price Index.

Because inflation was higher a year ago. The annual rate of wholesale inflation can fall even if the monthly rate increases, and that's the expectation arise in both headline and core inflation for the month, but had dropped to the lowest annual headline inflation since May of last year, and had dropping the core to the lowest since June. That might contribute to an expected rise in the University of Michigan's per Literary Consumer Sentiment Index, a small rise but still

at a depressed level. Investors will be more interested in the surveys inflation expectations indexes. Neither one year or five year expectations are expected to change as Americans wait for proof prices are slowing rather than forecasts. Michael McKee, Bloomberg Daybreak, All right, thank you, Mike. Calls for a recession, though, are growing. Treasury Secretary Janet Yellen, however, says she still anticipates the US economy will avoid one. We get that

story from Bloomberg's Charlie Pellett. During a visit to Fort Worth, Texas. Yellen said, quote, whether or not we can avoid a recession, I believe the answer is yes. She highlighted the US pay rolls so far have avoided declines. On inflation, she said, supply chain bottle knight are clearly beginning to ease, and that's helpful. In New York. Charlie Pellett, Bloomberg Daybreak, Okay, Charlie,

thank you. Still much of Wall Street disagrees with Secretary Yellen, including the man who manages one of the biggest pension funds in the country. We caught up with Chris Ailman, chief investment officer of the California State Teachers Retirement System. I feel like a recession has to happen because in my lifetime, when the fed raiveses rates this aggressively seventy five time and time after again, the economy slows down. The inflation is from the supply chain disruptions and the war.

Maybe inflation slows down on its own. I'd be surprised that I think we've got to have a recession. Chris Alman oversees about three hundred billion dollars at the California State Teachers Retirement System. Despite calls for a recession, some of the world's biggest investors predicted stocks will see low double digit gains next year. Seventy respondents in a Bloomberg survey expect to equities to rise. That compares with n

forecasting declines. For those seeing gains, the average prediction was a ten percent return. As it happens, Amy the SMP five hundreds of about ten percent from its October lows, but one of the market's most vocal skeptics sees more losses ahead. We spoke with Morgan Stanley chief US equity strategist Mike Wilson. We don't think that this bear market is over yet, mainly because our forecast for next year

on earnings is materially below the street. Now, I know that's becoming a bit of a consensus view, but I think our forecasts are even below, uh, you know, kind of this new level that people are talking about. Morgan Stanley's Mike Wilson says there's still a case for positioning in defensive value stocks like utilities, staples, and healthcare, but not in industrials, financials, or energy. Let's look at some

of the stocks on the move this morning. Shares of Lulu Lemon down almost seven percent gross margins at the Yogo, where a maker came in below estimates. Shares a broad Coom up more than three percent. The ship maker gave an upbeat sales forecast, indicating that demand remains strong. Shares of Docu signed up twelve percent the company boosted its

revenue guidance for the full year. I think there's some new development this morning in the collapse of Crypto Exchange f t X, Sam Bankman Freed, the founders missed a key Senate deadline. Let's get the latest lie from Bloomberg. Steve Rappaport, Good morning, Snoon, Good morning, Nathan, and Amy. Bankman Freed had until five pm yesterday to respond to a letter requesting he appeared before a Senate Banking committee

next week. Chairman Shared Brown warning he and ranking member Pat Toomey are prepared to issue with subpoena if Bankman Freed does not comply. Bankman Freed recently indicated he would testify before a House committee. It's unclear why he didn't respond to the Senate panel's request. Those spokesman for the disgraced FTX founder confirms he hired a defense attorney live in New York. I'm Steve Rappaport, Bloomberg Day Break. All right, Steve,

thank you. Right now. SMP futures are of sixteen points. That's again, of four tenths percent down. Futures are hired by eighty two NASDAK futures of fifty seven points ten. Your treasury is now down to thirty seconds YELD three point four nine percent, the yield on the two year four point to eight percent. Bitcoins trading two tenths percent. Hired around seventeen thousand, two hundred local headlines in the

Check of Sports. Next to this is Bloomberg six o seven on Wall Street, thirty eight degrees in New York. A sunny start for your weekend. We're going up to forty five today. Let's bring in Michael bar with more on what else is going on in New York and around the world. Good morning, Michael, Good morning Amy. Advocates for people with mental illnesses are urging a federal judge to stop New York City Mayor Eric adams plan to force people from the streets and into mental health treatment.

Several organizations, including the New York Lawyers for the Public Interest and the National Alliance on Mental Illness of New York City, said action was needed to stop large scale involuntarily hospitalizations. The lawsuits seeks to remove police officers as first responders for those requiring healthcare. When announcing the plan on November twenty nine, Adams called it a moral obligation

to act. The US is preparing new sanctions on Russia and China for what it describes as human rights abuses by both countries. According to official familiar with the matter, the European Union is set to boost the size of a fund finance weapons for Ukraine by at least two point one billion dollars as early as next week. Congress took a historic step to protect marriage equality. The House passed by partisan legislation semending federal protections for same sex

and interracial couples. Senate Majority leader Chuck Schumer says this bill is personal for him, as his daughter and her wife are expecting their first child. Thanks to the tireless advocacy of many many in this room and the dogged work by many of my colleagues, my grandchild will live in a world that will respect and honor their mother's marriage.

Republicans against the bill have claimed that it goes against religious freedom and this just in there's word that Kristen Cinema plans to leave the Democratic Party and will become an independent. NASA's artemous Moon mission is headed toward a Sunday splashdown in the Pacific, But first the Orion spacecraft has to survive at twenty five thousand mile per hour

five thousand degree re entry Mission Manager Mike Seraphint. On entry day, we will realize our Priority one objective, which is to um demonstrate the vehicle lunary entry conditions, as well as our Priority three objective, which is to retrieve the spacecraft NASAs Mike Seraphin and again the breaking news Kirsten's Cinema plans to change her party affiliation from Democratic too independent. Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty

seven undred journalist and analysts more than twenty countries. Michael Barren, this is Bloomberg Gaming, all right, Thank you, Michael six ten on Wall Street. John now for the sports report, brought to you by Charles try State. Audie. Here's John sash Our, all right, Amy. The Mets drafted Brandon Nimo in the first round back in two thousand and eleven.

He's developed into a solid center fielder for them, both at the play and in the field, and the Mets are keeping Nimo an eight year deal for a hundred and sixty two million dollars, which means the Mets bay rolee likely to be around three hundred and twenty million, far and away the most in baseball history. Mets have also signed veteran reliever David robertson what a few days for Baker Mayfield, once the first pick of the draft.

The week once started for Carolina, released Monday by the Panthers, claimed on waivers Tuesday by the Rams. Mayfield had one practice with his new team and then played the entire game last night and through a game when he touchdown, passed went ten seconds left. The Rams ended a six game losing streak seventeen sixteen over the Raiders. The Giants are winless in their last three games, and Sunday incomes Philadelphia had eleven and one, five and oh on the

road and led by quarterback Jalen Hurts. Five years ago, Hurts led Alabama to the National Championship. Giants coach Brian Dable that year was the Obama offensive coordinator. A lot of respect for Jalen um tremendous person first and foremost, holly competitive, extremely smart, great leader. Was the reason why he's probably at the top of the list for m v P right now. Jets Sunday visit Buffalo looking for a season sweep of the Bills. World Cup quarterfinals, beginning

this morning with Brazil against Croatia. Later the Netherlands off that went over, the U S taking on Argentina. Nix Er in Charlotte Tonight will be without Obie Top, but he's gonna miss two the three weeks of the knee injury. The Nets host at Lanta, the Rangers visit Colorado, and the Islanders played the Devils. John stash Award Bloomberg Sports Isn't he? I'm dee. Bloomberg Sports Report was 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. At six eleven on Wall Street. Next on Blueberak Bloomberg Daybreak, we speak with chief market strategist Macmyliott and Miller tay Back. This is Bloomberg six twelve on Wall Street. This is Daybreak. Stock throws yesterday as traders shifted their focus to inflation data. We are waiting for PPI data this morning. We're gonna

talk about that and much more. Teeth Market strategist Mac Mailie at Miller ta Back Matt, thank you for taking the time with us this morning. We're looking for the PPI data today, the CPI data next week. What are you looking for? Well, it's gonna be very very interesting to see how how the market reacts to it. I mean, obviously that the PPI number has been less important to the market, but that doesn't mean if it's way out of whack with expectations that it will be a market

mover today. But then of course next week with the CPI is going to be more important than the following day. Of course, we have the FED uh rate announcement and more importantly uh Chairman Pal's press conference. But it's interesting because this week we've been we've seen a change. You know, whether it's something that lasts for a while or not, it is going to be very very important. But you know, interest rates going down has been a good thing for

the stock market, but not this week. We saw it earlier this week when the people are starting to suddenly worry about less concerned about what the FED is gonna do and more concerned about what the Fed has done and the impact that's had on the economy and if the economy is going to fall into recession. Interest rates and stocks can fall together, and we saw even yesterday just the opposite happened. They actually the bombom bob, you

reels one up and the stock market one up. So we're seeing this this change in the correlation between the two. If that becomes, uh, something that's more prevallem, it's gonna be very very uh it's gonna be a big, big change for the marketplace. So let me ask you. You said it's been very important if that would last. What are some of the flag posts that you'll be watching for in the next few weeks and months to see

if this does last. Well. The big thing where we have to know is is that one of the missing I think misconceptions in the marketplace is that you know, is you know, if if if as long as it's a straights top out, everything's gonna be fine. Well, during a bowl market, that's that is the case. The interest rates, you know, go up for for a month or two, and then the stock market goes down. But as soon as interest rates roll over, the market goes right back up.

That's great. However, in a bear market, especially a bear market which includes a recession. Not all bear markets do include recession, but most do. The problem is that at some point in the middle of that bear market, interest rates roll over and everybody changes their focus towards the recession, and of course that that means they start worrying about the lower earnings and we're starting to see that now.

So the the you know, the flags will start to see is literally, uh, the biggest thing I think is gonna be the earnings estimates, of course for two thousand

twenty three, which have already started to come down. We're also gonna watch very very closely to see what happens in China because everybody's looking for the you know, the reopening in China, but not a very very interesting article today on Bloomberg talking about the repercussions and that how China may not be able to handle the big rise in these COVID rates now that they're changing their restrictions.

If that's the case, we may not get the big bounce back or the big reopening that people are hoping for. So I'm gonn going to change as well, and we'll be watching it with the chief market strategist, Mac Maylie at Miller Tayback. Thank you for your time, Nathan, all right, Amy, thank you. It is a six fifteen on Wall Street. Now, we want to turn to some breaking news, and we

just got from Political Playbook. In an interview with that publication, Arizona Senator Kirston Cinema, the Democrat, the junior or the senior Democrat in Arizona now says that she is changing her party affiliation too independent. Let's bringing Gregg value Are for more on this breaking news, chief US policy strategist at a GF Investments, Greg As, you know Kirsten Cinema

has an independent streak. Why change your official affiliation to independent? Well, she's got a tough primary Nathan coming up in T four and she may feel that she couldn't win the Democrats primary, so she wants to leave the party now. But I gotta tell you this is not a huge deal. Because the Democrats have a fifty one majority. It will now be tied, I guess, but even even tied Tamala Harris breaks all ties, So I don't see what kind of cloud she'll get. She'll get a little more cloud,

but I don't think it's dominant. And it's an interesting move, I think, given that Arizona just elected a Democrat for governor over carry Lake, Katie Hobbs winning there and uh, Mark Kelly still a Democrat in Arizona, the other senator from Arizona. Well, you're absolutely right. I think an awful lot of Democrats in Arizona are still angry with her for her many of her votes that were viewed as

disloyal to the White House. So she, I think saw the handwriting on the wall and decided let's make the move now and established myself as an independent. And in terms of her rationale behind this, in the interview with Politico, she said that she's not going to caucus with Republicans, suggesting that she intends to vote the same way, saying, quote, nothing will change about my values or my behavior end quotes in our last thirty seconds here, Greg, what really

changes with Kirsten Cinema Uh, leaving the Democratic Party? Not a lot. And if she does, I haven't seen the article. But if she does caucus with the Democrats, well so does Bernie Sanders show does Uh, there's a main senator also who caucuses with the Democrats. So it doesn't affect

what's going on inside the Bellway. It does affect Arizona politics, as you say, in the primary, coming up in twenty four is if we didn't have enough to think about with the presidential rays and Joe Manson the other independent

streak Democrat facing potential primary challenge as well. But Greg as always great to get your thoughts, particularly on this breaking news from Political playbook, Arizona Senator Kirston Cinema telling Politico she is registering is an independent leaving the Democratic Party. Are thanks this morning to Greg Valier, chief US policy

strategist at a GF Investments. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape. Greece's a Bloomberg Business Clash. I'm Nathan Haker. This updates brought to you by Jewish Communal Fund. For fifty years, philanthropists at all levels have turned to jcfs, don'tor advised funds to streamline their charitable giving. Visit j CF and

y dot org. Futures are on the rise, Treasuries holding steady ahead of US producer prices, one of the key final pieces of data before next week's FED decision. We checked the markets all day long for you on Bloomberg SMP futures are up thirteen points, now futures up seventy one and Nastack futures are higher by fifty one points. Ten. Your treasuries down to thirty seconds. You're three point four

eight percent. Diamax screws up six tenths per cent. Forty four cents one gets you a barrel of West Texas Intermediate comex gold is up three tenths per cent or five dollar sixty cents. Eighteen oh seven ten announced the euro one point zero five five four against the dollar. The end, one point nine eight Bitcoin is hired by two tenths percent, trading around seventeen thousand, two hundred. That's

a Bloomberg business flash. Now here's Michael Barr with a look at what else is going on around the world. Michael Nathan, thank you very much. We have two breaking stories. According to several media sources, Arizona Senator Kursten Cinema plans to switch from the Democratic Party to be an independent. Also, a plane believed to be carrying w n B A Star Brittney Grinder has arrived in San Antonio, Texas after

a prisoners swap with Russia. Grinder was arrested in February for illegally bringing hash oil in Vade cartridges into Russia. Thursday Night football, the Rams beat the Raiders. Seventeen sixteen FIFA World Cup action resumes today Croatia plays Brazil. The Netherlands faces Argentina. Global News twenty four hours a day on air and on Bloomberg Quicktake Power by more than hundred journalists and analysts more than a hundred twenty countries.

I'm Michael Barr, and this Bloomberg. Amy all right, thank you, Michael. It is six three on Wall Street. I'm Amy Moore. As this is Bloomberg Daybreak, brought to you by the Donor's Fun Open your free giving accounted minutes and instantly qualify for a tax deduction and choose from one point four million charitable organizations at any time. Visit the Donor's Fund dot org today and get your two tax deduction.

As we await a couple of key economic reports this morning, we want to get some insight from chief economic Economist rather chief economist Nila Richardson at an EP Research Institute. Neila, good morning, Thank you for taking the time with US inflation data. The last big piece of the puzzle we've been waiting for before the next FED meeting. How much

is this going to matter today? It matters because any information that we see that points in the direction of the lower inflation makes the Fitch job easier and it does shape some of their communication strategy. But the important distinction with the p p I from the cp I that will get it later is that it doesn't include housing and shelter cart and as we point to Chip house Glass speech, housing is a big issue for inflation as our wages. So it's missing a key piece. It's helpful,

but it's not the full picture. So what are you going to be watching for instead. Well, obviously I think housing is important, but we're not going to see that change in real time. It's a very lagged indicator. But it's to me about wages. In fact, I can again point to house Reach the speech where he said the labor market holds the key to inflation, and we saw

that in the November jobs report. We're still hovering about five percent on earnings from year over year, and ADP s own data we've seen wages stay elevated and move sideways in terms of growth, So wage pressures are still present. The labor market is still tight, and wages really arguing to be the determined factor in my view of where inflation is heading. Nila, this is a hard question, I know, But why is this labor market so complex? Why is

it so complicated? Well, we didn't, you know, mose twenty million workers, and we it's been difficult to get many of those workers back. This was a people shock, It wasn't just an economic shock. People made different decisions, and at the household level, those decisions have proved sticky. Some

people retired early. That FED has tomate two million people retired early because of the pandemic, But all kinds of other decisions were made, like to live on one income, to choose a remote job, to leave a job, to quit a part time job, and so those individual decisions have complicated the labor market in a very unique way because of the source of the shock, which was a major global health concern. Only about thirty seconds here. Has the labor market cooled off enough yet for the FED?

I don't think so. I mean, we're still seeing strong hiring and consumer facing industries. Those are the ones that were hit hardest. Those are in the ones and the greatest need. Companies, especially smaller companies that were outpaced by the large companies during the recovery, are still trying to find qualified talent. Their intensity to hire has not cooled yet, so the hiring freezes that we're seeing at larger companies are likely to be absorbed that head count by small

and medium firms who are still booking to hire. Alright, Nila, thank you so much for taking the time with us this morning. Chief economist Neila Richardson at ADP Research Institute. Checking futures now. Futures are higher across the border. S and B futures up by fourteen points, at All futures higher by seventy points now, Nasdaq futures up fifty three points. Ten year Treasury down one thirty second, the yield at three point four eight percent. Let's get a look at

today's Bloomberg weather forecast with Bloomberg Meteorologist Rob Carolyn. Pressure covers the northeastern part of the country this morning. That's why we'll have sunshine across the Tri State area today. Temperature is pretty close to forty five this afternoon. It'll be clear for the most part tonight, thirty to thirty five in town twenties and the suburbs. Tomorrow, partial sun at times size forty forty five, afternoon shower Sunday highs

forty to forty five. There maybe some wet snow mixing in Sunday evening. I'm Rob Caroline with your three day forecast on Bloomberg Even three oh broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg e Living Freed to Washington, d C. Bloomberg to Boston, Bloomberg What all six one does? San Francisco, Bloomberg Homes sixty to the country Sirius XM A one nine team, and around the globe, the Bloomberg Business and Bloomberg Radio dot Com.

This is Bloomberg Daybreak. It's coming up on six thirty on Wall Street. Good Friday morning. I'm Amy Morris, I'm Nathan Hagar. Were nearly three hours away from the open of US trading time for the five things you need to notice start your day. Brought to you by Interactive Brokers. The clients are in interest of up to three point

three on the idle cash and their brokerage accounts. Visit ib kr dot com slash interest rates to learn more of First, a plane carrying w NBA star Britney Grinder has now landed in San Antonio, hours after the White House traded an arms dealer for her release. Grinder's back on US soil nearly ten months after her detention in Russia. The release puts a renewed spotlight on retired Marine Paul Wheeland,

who remains imprisoned in Russia. White House Press Secretary Karine Jean Pierre says negotiations for his release are ongoing, but she says Russia won't budge. We did not want to lose the opportunity before us to secure the release of one of them, and so that was the choice, one

or none. Now, the White House says they are still working to secure Paul Wheeland's release and to the markets now Nathan, where US features are higher ahead of today's inflation data that produce surprise index will be one of the final readings before next week's SPED decision. We get a preview from Bloomberg's vineing Del Judais. November's producer price and dex rose eight percent here over a year, the smallest increase since June one, money that is still well

above the federal reserves, overall inflation target. What's going on? Bloombrig Economics notes goods prices are moderating as domestic and global demand slow and supply chain glazes. The strong dollar is also an issue. Next week we get data on November consumer prices. Beneat dryl Judai s Bloombergday Break. Okay, Vinny, thanks that the spike calls for recession. Some of the

biggest investors predict stocks will see gains next year. Of respondence to a Bloomberg survey, expect equities to rise that compares with forecasting declines. However, that's not the view from Morgan Stanley Chief investment Officer Mike Wilson. He has turned to barish again, saying value stocks are a risk. So I don't think there's as much of a distinction between value and growth at this stage of the economic cycle,

unless you're talking about the defensive parts value. Morgan Stanley Chief investment Officer Mike Wilson expects the S and P five D to resume declines relatively soon and no developments. This morning, Amy and the collapse of crypto exchange f t X. Sam Bankman freed the founders missed a key Senate deadline, and we get the latest live with Bloomberg

Steve Rappaport, Steve, Good morning, Nathan and Amy. Bankman Freed had until five pm yesterday to respond to a letter requesting he appeared before a Senate Banking committee next week. The chairman and ranking member Pat to me are prepared to issue with subpoena if he doesn't comply. Bankman Freed recently indicated he would testify before a House committee, though it's unclear why he's remaining silent on this one. However, he has retained a defense attorney. Live in New York,

I'm Steve Rappaport, Bloomberg Daybreak. Thank you, Steve. That's the five things you need to know to start your day, brought to you by Interactive Brokers. Ahead of Producer price data, futures moving high, er S ANDP futures up fourteen points, Staff futures up seventy six and Naszak futures are on the rise this morning by fifty five points. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg. Thank you. Nathan at six thirty one on

Wall Street. Let's bring in Michael Barr with more on what else is going on in New York and around the world. Good morning, Michael, Good morning Amy, and we have breaking news. Arizona Senator Kirsten Cinema plans to switch from the Democratic Party to become an independent. We spoke with Bloomberg's Greg Valley a few moments ago on what this means for the Senate. This is not a huge

deal because the Democrats have a fifty one majority. It will now be tied, I guess, but even even tied, Kamala Harris breaks all ties, So I don't see what kind of cloud she'll get. She'll get a little more cloud, but I don't think it's dominant Bloomberg's Greg Valley. There's a call for a federal judge to stop a plan by New York City Mayor Eric Adams to force people

from the streets and into mental health treatment. Advocates for people with mental illnesses say that the policy dangerously perm it's the involuntarily the tension of individuals who seem to have a mental illness. The lawsuit seeks to remove police officers as first responders for those requiring healthcare. The Department of Justice is asking a federal judge to hold former President Trump's team in contempt over the Mara Lago case.

The o J says Trump's office failed to fully comply with a may subpoena to return all classified documents in his possession. The US is preparing new sanctions on Russia and China. It's for human rights abuses by both countries. Again. Our top story, Arizona Senator Kristen Cinema plans to switch from the Democratic Party to become an independent global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists and analysts and more than

one hundred twenty countries. I'm Michael Barr, and this is Bloomberg Amy. All right, thank you, Michael. Six on Wall Street. Now for the sports report, brought to you by Try State Audi. Here's John stash Our. All right. I mean, this is why the Mets fans were so happy when

Steve Cohen bought the team. Deep pockets. The Mets, already with the highest payroll, added to it by keeping free agent center fielder Brandon Nemo an eight year contract for a hundred and sixty two million dollars, and the Mets have also thrown ten million at Veteran leaver David Robertson had two stints with the Yankees. Finished last season with the Phillies l a Rams Havn, perhaps the worst season

ever for defending Super Bowl champion. They were looking at a seventh straight lost trail the Raiders by thirteen, who were under four months left, but Baker Mayfield, two days after being acquired by the Rams, led them on too long touchdown drives. He threw a game winning TV pass with ten seconds left from the Rams one seventeen sixteen college hoops heartbreaking loss for Rutgers. Ohio State hit a three pointer with a second left beat the Scarlet Knight

sixty seven sixty six. They'll hand out the Heisman Trophy tomorrow in New York. The favorite to win his USC quarterback Kayleb Williams Army Navy game tomorrow in Philadelphia. Jason Garrett, former Cowboys coach, Giants assistant, now finalist to be the new coach at Stanford. The World Cup down of the final a with one surprise team that's Morocco, never before a quarterfinal, is playing Portugal tomorrow ahead of the much anticipated game between France and England. Today it's Brazil against

Croatia and Argentina takes on the Netherlands. Nicks just beat the Hawks. Nets just beat the Hornets tonight they reversed the opponents. It's the Knicks in Charlotte and the Nets home for Atlanta. John stash Howard Bloomberg Sports. Thank you, John. The Bloomberg Sports Report was 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 autie dealer to get behind the wheel of yours today, or a

visit autie Offers dot com for more information. Futures are higher, SMP up fourteen, DAL futures up seventy points, NASDAC features up fifty two, and the ten year Treasury down to thirty seconds. It's 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

Steve Podas on K and X in Los Angeles. We're talking about Veil Resorts, saying it's on track to be fully staffed at all of its ski resorts this coming season. Um Corney Donahoe on kat R H in Houston. Amazon is launching a TikTok style seed double let shoppers Scholl for Merchandise. I'm Gina Servetti and for k CBS in San Francisco. I'm reporting that the Federal Trade Commission is

suing to stop Microsoft from buying Activision Blizzard. I'm Jeff Bellinger and on WTVN and Columbus, I'll be talking about workers at an Ohio battery plant voting to join the United Auto Workers Union. I'm at Corey on w w J in Detroit. I'm reporting former Michigan Governor Rick Schneider is leading a cyber's purity start up. And those are some of these stories are Bloomberg journalists and analysts are working on this morning around the world. It's sixty seven

on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Former President Donald Trump hasn't managed to criticize comments made by his recent private dinner guest, The rapper, formally known as Kanye West, who took to a podcast to praise Hitler and deny the Holocaust. Trump's other guests that night, the white supremacist Nick Quente's, has called for a quote total

eran victory unquote. It would be tempting to dismiss such statements as the usual rantings by the usual crazies, except that the host of this file gathering is still the odds on favorite to be the Republican nominee for president. If Trump can't bring himself to condemn such sentiments, his party needs to. Anti Semitism has no place in American politics. This editorial was written by the Bloomberg Editorial Board from

Bloomberg Opinion. Please go to Bloomberg dot com slash opinion or O P I N go on the Bloomberg terminal. This has been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every weekday at this time, and terminal customers can read more at opie I n go. Let's take a look at some of the stocks on the move this morning. Shares of Lulu Lemon down more than seven percent. Gross margins at the yoga ware maker came in below estimates.

Shares a broad Colm up three percent. The ship maker gave an upbeat sales forecast, indicating that demand remains strong, and shares of Docu Signer up eleven percent. The company boosted its revenue guidance for the full year. Meantime, carbon stock is taking a hit this morning. Shares of Carbonna down four percent, giving up some of yesterday's gains. The stock surged nearly thirty percent yesterday after we reported Carbonna is consulting with lawyers and bankers about options for managing

its dead load. Up next, on daybreak, we're gonna look at more of the movers in the markets. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Out, and at Bloomberg Quick Tape. He's a Bloomberg Business Flash. I'm Nathan Hager. This update is brought to you by the Donors Fund, a modern, innovative donor advised fund for everyone. Open a free account in minutes, with no minimums, no

transaction fees or hidden costs. Visit the Donors Fund dot org today and get your two tax deduction. Futures are moving higher on a data driven Friday. We're waiting producer prices at eight thirty Wall Street time. Head of that, SMP futures are up twelve points, staff futures up sixty one and nastic futures are higher by forty four points.

We check the markets all day on Bloomberg. Take your treasuries down one thirty second yield three point eight percent, yield on the two year four point to eight percent. Imex screws up a half percent right now thirty six cents at seventy one eighty two cents of barrel. Come X gold is up a half percent, up eight doll forty announced. The euro one point zero five six zero against the dollar the end one three bitcoins hired by

three tenths percent, trading around seventeen thousand, two hundred. That's a Bloomberg business slash. Now here's Michael Barr with more on what's going on around the world. Michael Nathan, thank you very much. Two breaking stories. Arizona Senator Kristen Cinema pass change parties. She registered from Democrat too. Independent plane believed to be carrying w n B A Star Britney Grinder, arrived in San Antonio, Texas early this morning, Grinders spent

more than nine months in Russian custody. Your family has asked for privacy for Grinder to heal. Thursday night football, the Rams beat the Raiders. Seventeen sixteen FIFA World Cup action resumes today Croatia plays Brazil, the Netherlands faces Argentina. 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. Michael Barr and this is Bloomberg, Nathan, Thank you, Michael. It

is sixty two on Wall Street. Let's turn to news and science and technology now. The Bloomberg n j I T STEM Report 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 Now. Here's what's making news and science, technology, engineering, and math.

China faces a daunting task after abruptly giving up on COVID zero, The number of infections is expected to soar and deaths are predicted to rise over two million. The US and Europe had an ebb and flow pattern of outbreaks over months and years, but China is likely to see a wave of infections in Gulf the country all at once. The Federal Trade Commission has sued to block microsoft planned sixty nine billion dollar take over a video

game company, Activision Blizzard. The agency says it could suppress competitors to Microsoft's Xbox game console and it's growing games subscription business. And a half century after US astronauts brought it back from the Moon's surface, a minute piece of extraterrestrial rock has finally reached its intended destination, the eastern

Mediterranean island nation of Cyprus. The one point one grand piece of moon rock was on display yesterday and an exhibition commemorating the fiftieth anniversary of the last of the Apollo lunar landings and the Artemis Mission. Who's Ryan Capsule is on its way back to Earth after orbiting the Moon. That's the Bloomberg and j I T Stem report. Amy,

All right, thank you, Nathan. It is six forty three on Wall Street time now to check what's going on in d C. And some of the top stories in our nation's capital include, as we've been telling you this morning, Arizona Senator Kristan Cinema has changed parties from Democrat to Independent. You've also been hearing us talk about Britney Griner released from that Russian labor camp. We're going to get reaction to that. President Biden expected to sign their respect for

marriage at Congress past that yesterday. And then, of course, the negotiations are ongoing for the spending bill to fund the government days before the deadline to a vertic shutdown. It's a lot happening here. On the Friday morning, we bring in Bloomberg, senior Washington correspondent and the host of Sound On, Joe Matthew. Joe, good morning to you. Good morning Amy. All right, thank you Joe for being there. What is the impact of Cinema's change of heart. Well,

my goodness, the impact here. It brings us back couple of days. I need to take back some of the things I told you when I was in Georgia. Remember the whole point here to getting Raphael Warnock reelected was to get that extra breathing room. That split in the Senate, and it looks like that's gonna be going away as soon as it arrives. Uh, Joe Mansion rising. You know, we're gonna be back in this fifty fifty split essentially

with Kirston Cinema now acting as an independent. Now it's important here she says that she will not caucus with the Democrats, but will also not behave any Differently, it appears that she wants to keep her committee assignments, so we kind of have another Bernie Sanders here, but he's not but still not attending the Democratic luncheons and following the Democrat uh sort of mantra here. It's unclear exactly what that will mean for counting votes in the Senate.

But look, we have to be honest about where we're coming from here. Kirsten Cinema has been a real thorn in the side of a lot of Democrats and her reluctance to raise taxes, in her reluctance to end the filibuster in the Senate, and that's why a lot of the republic a lot of the Democratic agenda of Joe Biden's agenda like build back Better never got passed. So this may not change as much as the headline might imply,

is there any indication why she decided to do this now? Well, look, if you ask her, she'll tell you about her independent spirit and that this is what's right for the people of Arizona. But the fact of the matter is she is facing a likely primary challenge in Congressman Ruben Diego, a Democrat from Arizona to her left, who talked months ago on Bloomberg sound On about his plans to challenge her. Could really create an issue in the primary. This would mean that she would not have a head to head

challenge in the primary race. But that's not, by the way, the reason that she's talking about Paul Plickly, she says, she's not even talking about a second term yet. All right, let's shift gears now. Britney Grinder landed in Texas this morning and then headed straight into medical evaluation. Obviously, there's a lot of a mixed emotion about her release. What are you hearing, Well, that's true. I mean, the White House press briefing yesterday really brought this to the four least.

This is a really difficult balancing act for the White House to try to celebrate the release of an American who was, in their eyes wrongfully detained. Well, at the same time talking to families of other Americans still detained, like Paul Whalen. How come he didn't come home? How come he was left behind? Many are asking, you're talking about a US marine who has been stuck over there since accused of spying. I spoke with a lawyer last evening.

He was representing another American, Mark Vogel, who was over there, a teacher who has been detained there for years. Uh And and look, it's it's unclear exactly what went behind this swap, So we don't want to act like we were in the room for it, but she was swapped for a reputed arms dealer, for somebody who is in prison for trying to kill Americans. Right this this Victor boot is now back in Russia and could well help Vladimir Putin acquire arms to use in the war in

Ukraine that he can't get otherwise. So there were major national security implications at the same time as celebrating the return of American to come home. This is this is a very difficult time emotionally and politically for the White House. To see that Grinder's wife up there yesterday was a very touching moment to hear from Paul Whalen's family was too There's a lot to unpack there, but we've got a pivot now to the Respect for Marriage at It was just a big day at the White House because

Congress passed their Respect for Marriage Act. The President's about to sign it. That's huge, Well, it was. It was a huge day in the House. Is a huge day for Nancy Pelosi. She got emotional when she was in the Speaker's rostram to deliver the final tally to drop the gavel on this and couldn't actually get it out at first. It's likely the last major thing that she will do as speaker. But look, this is a big deal.

It's it's something that's approved by more than is supported by more than seventy Americans, even as a lot of Republicans voted against it on religious grounds. This is now the law of the land. It codifies same sex marriage. It removes the Defense of Marriage Act and replaces it with the Respect for Marriage Act. Alright, we got about a minute here, lawmakers still debating spending bills on Capitol here are they going to make that December sixteenth deadline?

Oh my gosh, Well, It depends how you qualify making it. I would get ready to start kicking the can, start start doing the can can here because it's good to be about Christmas time, and it's likely that they will

push this right up until Christmas Eve. The question is is that enough time to get an omnibus budget LA real budget and appropriations deal or is it going to be a year long continuing resolution which would not go very well for the Pentagon, for instance, because you end up handcuffing agencies to follow the budget from last year. There's a lot of sticking points here. They are not agreeing on the top line. But it was encouraging to see the National Defense Authorization Act pas US this week.

At least there is a framework for Pentagon spending that also eliminates the COVID vaccine mandate for the military. That's a big deal that is expected to pass the Senate, and that was a compromise between Democrats and Republicans. That's true, yes, and that's why it is expected to pass the Senate and the President will really have no choice but to sign it. All right, We're going to continue to watch that with you. Bloomberg's Joe Matthew, host of Bloomberg sound

on and senior Washington correspondent for Bloomberg. Thank you very much for taking the time with us this morning. There's a lot going on on Capitol Hill. You can read more about these stories on Bloomberg dot com or on the Bloomberg terminal. And a reminder, you can follow all of the latest on Bloomberg Radio in Washington. Bloomberg ninety nine one and one oh five point seven, f M HD two S and P Future thirteen points higher now, Dell futures sixty points hire NASDAC futures up fifty the

ten year treasury unchanged. Much more still to come on this Friday morning. Don't go anywhere. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quick Tape Truce. He's a Bloomberg Business lash. I'm Nathan Hagar. This update is brought to you by the Donors Fund

of Modern Innovative donor advised Fund for everyone. Open a free account in minutes, with no minimums, no transaction fees or hidden costs to the Donors Fund dot org today and get your twenty two tax deduction futures moving higher as we await producer prices in just about an hour and a half or so. We checked the markets all day long. On bloomberg SMP futures are up fourteen points, DAL future is up sixty seven and NASTAC futures are

higher by fifty four points. Send your treasury little change. The yield three point for eight percent, two year yield four point to seven percent. Nimex screws up almost a half percent at seventy one dollar. Seventy nine cents of Verari comic gold is up six tenths percent at eighteen twelve sixty announced. The Euro trades at one point zero five five six against the dollar again is at one three. Bitcoins up by four tenths percent at seventeen thousand, two

hundred fifty. That's a Bloomberg business flash, Amy Nathan, it is six fifty six on Wall three. Time to take a look at the stocks and some of the names moving in the pre market. For that, we're joined by Bloomberg's Tatiana Daria. Tatiana, thank you for taking the time with us. What you got uh yeah, I mean good morning. So I'm looking at Lulu Lemon here moving in the pre market down about a seven percent here and pointing to open lower by about twenty dollars are so per share,

and that has to do with its earnings. It posted three quarter earnings last night and a measure of a profitability key measure, the gross margin was about a percentage point lower than analysts estimated. And this is really indicative of the troubles of the whole retail industry as a whole.

Right as we know, they're working through bloated inventories, and for Lulu Lemon itself, those inventories have risen about eighty five And second, you know, it's also indicative of the challenges for corporate America as a whole as you look at increased cost versus perhaps slow and spending for from consumers and the effects of the strong dollars. So that all played into Lulu Lemus earnings here. Now, the CEO said that the company hasn't seen any significant shift in

spending among their guests. But nonetheless, this adds just to the mixed pictures on consumers that we're getting. Yes, we know they're still spending, but that's spending is slowing and Unfortunately for retail stocks that is not translating into games. If you look at that sector, it's still down about thirty percent year today. And you're seeing a rally with Docu sign too. Yes, we're seeing a thirteen percent rally in the pre market here. That also has to do

with earnings. The company reported a strong a third quarter billings and analysts are saying results were boosted by early renewals. That has gained the stock also an upgrade here. Um and you know and Allo start houting this is a good sign that growth is re accelerating at last and that this is a good showing for the new CEO. Reminder that CEO took over just in October after a tumultus period for the stock. It's still down yere today, so it's definitely one that can use some good news here.

And what do you see moving with Netflix? Well, Netflix is also up at three percent here in the pre market after gaining an upgrade and Cowen also naming it a top pick. It looks like the company is gaining fans on Wall Street with its you know, the latest turnaround plan. As a reminder, they've recently introduced a lower

priced advertising sponsored subscription tire of six and ninety nine. Uh. And this after they've had a couple of difficult earning seasons and um that spurts sort of, you know, this turnaround plan, and it seems to be working, as chairs of gained here in recent months. Uh. And as we see and Alyssa are getting more bullish. Uh and they're saying that you know, um, next year content will improve

and global growth self provides a tail wing. Alright. Bloomberg's Tatiana Daria, thank you for joining us this morning looking at stocks as a whole. Ahead of the open. SNP futures are fifteen points higher. DAL futures up by sixty eight points, NASDAK futures up fifty six points. The tenure Treasury unchanged the yield at three point for eight percent.

It's sixty nine on Wall Street. Stay with us. Bloomberg Surveillance with Jonathan Farrow and Lisa Abramawitz starts right now by from the financial capital of the World, broadcasting across the globe. This is WVBR, New York, Bloomberg eleven three. Oh. We've never seen a recession so anticipated. The first half of the year