Bloomberg Daybreak: January 6, 2023 - Hour 1 (Radio)

on Monday. Plus, today marks the two year anniversary of the US Capitol Riot Michael Laaren. More ahead, I'm John Stas Showard Sports. The NFL makes a decision on the Bill's Bengals game the Rangers one in Montreal, losses for

the Devil's and Islanders. That's all train ahead on Bloomberg Daybreak on Bloomberg eleven three on New York Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XAM one nineteen and around the world Bloomberg Radio dot Com and via the Bloomberg Business. At good Morning, I'm Nathan Hagar and I'm Karen. Moscow and US Dock Index futures are little change this morning. We check the markets all day long here on Bloomberg

with SNP and DAL futures both little change. Nasday futures no dragging down a quarter percent or twenty eight points. Tenure Treasury down five thirty seconds. You have three point seven three per cent and the yield on the two year four point four seven percent. Nathan, Karen. We'll have more on markets and today's jobs report in just a minute, but first we are heading into the fourth day of the new Congress and the House remains without one key

job filled. That would be speaker. Republican leader Kevin McCarthy is still shy the votes needed to take the gavel, and Amy Morris has the latest from our Bloomberg newsroom in Washington that's adjourned last night after a historic eleventh vote, about twenty Republicans still refusing the cast their ballots for McCarthy, saying they want change in Washington. McCarthy has already agreed to a rules change allowing just one member to call

for a vote to oust the sitting speaker. Andy agreed to allow for more members of the Freedom Caucus to serve on the House Rules Committee, but so far. Matt Rosedale of Montana says it's not enough. We need to have change. We need to fix this broken system. Republican Congressman elect Mike Lawler of New York says the party can't let a small group of members dictate terms for everyone else. The Freedom Caucus thought that Kevin's support would start to fold, uh, and that has not happened. House

lawmakers reconvene at noon today in Washington. I'm Amy Morris, Bloomberg Daybreak. All right, Amy, thank you. It will be following the next round of votes throughout the day here on Bloomberg Radio. Meantime, another major event in Washington takes place at eight thirty am Wall Street time. That's when the December JOMPS report is released. Economy is forecast again of two hundred two thousand jobs and an unemployment rate holding study at three point seven percent. Here with Morris,

Bloomberg Economics corresponded. Michael McKee, economist, think hiring will slow dramatically and unemployment will jump higher. Just not yet. Even though the Fed has been raising rates aggressively, it hasn't slowed the economy enough to affect the labor market. FED officials say that shows no recession is imminent. They also worry it means continued inflation pressure. There are not enough workers for open jobs, which means employers have to raise wages.

That's particularly true for service industries, and that makes December service industry jobs and earnings key numbers for FED officials as they decide how high they have to push interest rates. Michael McKee, Bloomberg, Gabriak, and Mike the Fed will be paying close attention to today's jobs reports. St. Louis President James Bullard says interest rates are getting close to a level that could be high enough to bring down inflation.

The point of this is that we've gone all the way back now to the pre inflation shock level of inflation expectations. UH macro theories tell us that that boat is very well for the future of an actual inflation. So this is a good signal for disinflation in St. Louis. FED President Jim Bullard is one of the more hawkish members of the FED, but he is not a voting member on the f o MC this year. Still, Nathan, higher interest rates are not yet having a major impact

on the economy. And that's the view from Carlyle Managing Director and head of Global Research Jason Thomas. The economy seems to be heading for an iceberg in the form of higher interest rates. Those higher interest rates have really not taken effect as yet for most borrowers. It's really the December nineteen reference date. So as of Q one three floating rate corporate borrowers are going to face UH debt service costs that are about fifty to sixty higher

than they experienced just six months ago. Carlyles Jason Thomas expects the Fed to raise rates by twenty five basis points at each of its next two meetings. Have you that's in line with expectations on the street. Well. The prospect of higher rates Karen helped send stocks lower yesterday.

All three major indexes lost at least one percent after hiring numbers surpassed estimates in the A, d P, and jobless claims, reports Sam Stovall, as chief investment strategist at c f R A. It seems as if we are heading into three the way a lot of strategists have been predicting where it's going to be A tale of two halves, where the first half is likely to be challenging with high volatility, retest of the October low, maybe

even a new low set. But then investors look across the valley and we start to see a recovery in the second half. C A. Sam Stovall says the FED could pivot and start cutting rates around December. Well. Turning to the ft X saga now, Nathan us authorities are renting up pressure on the inner circle of fd X co founder Sam Bankman Freed, and we get the latest live at Bloomberg Steve Rappaport at Steve good Morning, Good morning, Karen,

and Nathan. The plot thickens as prosecutors turn their attention to another associative, Bankman Freed. They're investigating former ft X engineering director ni Shot Singh and what role, if any, he played in the crypto company's demise. Singh has not been accused of wrongdoing, and it's unclear if he's cooperating. Prosecutors already have two people from SPFS Orbit in their corner, Caroline Ellison and Gary Wang, pled guilty to fraud and

are working with the government. The question now, will sing also sing live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Okay, Steve, thank you. Turning to earnings now, we've got a downbeat assessment from Samsung Electronics. Overnight profit fell by the most and more than a decade, in the sign that the

economic slowdown maybe hurting electronics demand more than expected. Samsung's operating profit plunged sixty cent thanks to week demand for memory ships, smartphones and displays, and that holiday travel meltdown is prompting Southwest Airlines to revive its financial outlook before reporting earnings. The airline canceling almost sixteen thousand flights over eight days around the holidays. Now, Southwest says it is assessing the cost of flight disruptions and compensation to passengers

for hotels and meals. Local headlines straight ahead, and this is Bloomberg, thanksparing its forty three degrees in Central Park. Can have some scattered showers this morning, but they should end by this afternoon. We'll top out near fifty degrees mid thirties tonight ahead of a cooler but nice weekend. It's time to look at some of the other stories making news in New York and around the world. For that we bring in Bloomberg's and Michael bar Happy Friday, Michael,

Happy Friday to you, Nathan. Thousands of New York City nurses are poised to strike on Monday. They are protesting staffing levels they say create unsafe conditions for patients. Five institutions, including Mount Sinai Health Systems, are still in talks toward a resolution, but about ten thousand members of the New York State Nurses Association three others have reached tentative agreements. Today it marks two years since the January six attack

on the US Capitol. Among the victims as Capitol police officer Brian Sicknik, his longtime partner is suing former President Trump and two people in the crowd that day for his death. Today and award will also be presented to Sicknecks family. Another officer who was at the Capitol that day was Harry Dunn, who says he suffers from PTSD. Dunn says, all eyes are on the Justice Department. They're the ones who can bring forth accountability. There were criminal

things that the former president has done. I don't see how you cannot hold him accountable for that day. Officer Dun's full interview while their Sunday on ABC's This Week Heard on Bloomberg, Attorney General Mary Garland says over four people pleaded guilty the federal charges and the riot. New evidence in the killings of four University of Idaho students has come to light. A newly released half of David reveals police identify the suspect, twenty eight year old Brian Coburger,

by tracking his car on surveillance cameras. Coburger made his first court appearance in Idaho yesterday to face four charges a first degree murder. He did not inter aptly and was ordered hell without bail. Russian President Vladimir Putin's proposed thirty six hours cease fire drawn a cold shoulder from the US and Ukraine, Bloomberg said Baxter as the story, President Joe Biden says hypocrisy. I'm reluctant respond anything. Prutin says,

I found it interesting. He was ready to um bomb hospitals and nurseries and hum churches, and he says Plutin is just trying to find some oxygen. Biden also says the US, Germany and France are sending some heavy artillery Ukraine that will arrive within months, in addition to the

Patriot missiles in San Francisco. I'm at Baxter. Bloomberg Daybreak Global emes 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. I'm Michael Barr. This is Bloomberg Naked. Thank you, Michael. Time now for our Bloomberg Sports Update. Fortify twice stay downey for that, we bring in John stash Our. Good morning, John,

Your morning, Nathan. Three nights after the Bills and Bengals stopped playing in Cincinnati due to Tomorrow Hamlin going into cardiac arrest, the NFL made the decision not to resume the game. Both teams will play Sunday. Finished the regular season playing sixteen games, with everyone else having played seventeen. Both teams are going to the playoffs. Both had a chance to earn the one seed and the first round by If Kansas City wins tomorrow, the Chiefs are assured

of finishing with the best win percentage. There are reports the NFL may announced today measures to diminish the significance of that. Meanwhile, we heard yesterday for the first time from Hamlin's doctor in Cincinnati, and the news from Timothy Pritz was terrific. We would like to share that there has been substantial improvement and is conditioned over the past twenty four hours. We had significant concern um about him after the injury, after the event that happened on the field,

but he is making substantial progress, Pritz said. The first question Hamlin asked was whether the Bills had won the game. Local hockey Rangers won four one at Montreal. The Islanders lost for two. In Edmonton, Devils lost to St. Louis

five three. NHL named some of the All Stars for the game next month, one from each team in the range of rep goalie Egorsister Can also named the Aisles Brock Nelson and the Devil's Jack Use College James Ruptors was coming off that when at top rank produced Scarlet Knights came home and beat Maryland sixty four to fifty, held the terms the seventeen first half points. NBA to Night Nixon. Toronto next visit New Orleans second time. This week.

Yankees divided a veteran baseball front office exact to assist GM Brian Cashman first was Brian Stabing and now former mex gm omar Maniah John Stashward Bloomberg Sports. Nathan, Thank you John, and the Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the outie model you've always wanted. Visit your local tri state autie dealer to get behind the wheel of yours today, or visit autie Offers dot com for more information. The

latest on the speakership fight on Capitol Hill. Just to head first, futures trading flat, SMP futures up a point down, futures up twenty two, NASTAC futures down fourteen points ten. Your treasury yield right now three point seven three percent. Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Syrius examp of Bloomberg Business app and Bloomberg dot Com. This is Bloomberg Daybreak.

Good morning, I'm Nathan Hagarn. While we wait for the December payrolls report on this job's Friday, there is still one key position on Capitol Hill that has yet to be filled that would be Speaker of the House. We're heading into a fourth day of the D eight Congress, and at this point it is still tough to say whether lawmakers can resolve the mismatch between Kevin McCarthy, the House GLP leader, and those twenty or so Republicans standing

in the way of his gavel. Once again, we're joined by Greg Valier Live this morning, chief US policy strategist at a GF Investments. Uh. Is it starting to feel like Groundhog Day? Where you said, Greg, you bet, Mason, it's sort of like the inmates have taken over the asylum, and unfortunately this could drag on for many, many more days. I think you wrote a note earlier this week talking about the extraordinary concessions that Kevin McCarthy has made to

try to hold on to actually get the gavel. Are there any other concessions he can make at this point? No, there's not much else. I mean, he's agreed to humiliating restraints on the role of a speaker, and the irony here, Nathan, is that moderate Republicans in the House are a guest and they may turn against McCarthy. A lot of moderates we're saying late yesterday that they could never accept this

kind of concession. The other irony is that even with this concession, there's a hardcore of four or five very adamant House Conservatives who would not vote for McCarthy under any circumstances. So I don't see where the concession gets him other than diminished support among moderates. Well, let's get to your first point there about moderate Republicans potentially providing a backlash against McCarthy for the concessions he's made. Uh, let me pin you down a little bit on that.

Are you actually hearing from certain moderates who are saying that they may withhold or withdraw their support for McCarthy as this process plays out. I'm not sure they're there yet. I think they would like to get some assurance that, uh, this isn't as radical as it looks. But to answer your question, yes, there are some who are willing to withhold their support if one vote, if one lone House member says I want to try to remove the speaker,

that's that's just no way to run a railroad. And when it comes to those four or five seeming members who just aren't going to vote for McCarthy under any circumstance, does that lead to an opening for someone else's potential

alternative to step forward. Well, A good point. There's been a lot of other names outed this week, as you know, including Jim Jordan's and especially Steve Scalise, but Skalis, who is quite popular in the House, is part of the leadership, and I think those four or five holdouts probably would

would hold it against him. There are all sorts of other rumors about maybe a bipartisan deal with the Democrats, which I think is quite unlikely, maybe floating the name of another possible Canada, maybe changing the rule you need two hundred eighteen votes, maybe reducing that by having some members stay off the floor, all sorts of hail Mary's. But I think the bottom line is that they're still not there, and I don't think they'll get a deal today.

And we've talked before about what the potential this could mean for the debt ceiling fight later on this year, getting appropriations passed later on this year as well, if we continue to see this kind of fractiousness. We're starting to hear as well from some lawmakers who are saying this stalemate could potentially risk US national security because Congress can't move till they get this matter resolved is is that taking things too far? Is there something to that? No,

there's something to that. I mean it's easy to say Congress doesn't matter, but no, there are things that are really important. In the short term. What if there's a foreign policy crisis that needs immediate funding. What if the flooding continues in California it's quite severe as you know, maybe there's a need for aid to California. And the long term, the issue is going to be budget stuff. It will be the death ceiling, it'll be a possible

default crisis. These are serious issues and if the if the House is this NEWTD, it's going to be difficult to deal with those issues. Does this have any implications for in terms of the politics, the way the parties are viewed after this fight, It will be interesting to see the polls. I haven't seen any of this week. I suspect will be sort of a pox on both your houses mentality, but in in to be you're realistic,

I mean, this will blow up on Republicans. I think they are looking pretty bad, especially compared to Nancy Pelosi, who did a pretty good job as House Speaker. So no, I think as we go into the election, it would hurt Republicans in the House. The Senate is different. Of the seats up in the Senate favor the Republicans in this cycle, but I think the House could get a major pushback from voters if this is not resolved. And we'll see if We'll be checking back with you next

week if this isn't resolved. Thanks as always for your time, Greg Valier, Chief US policy strategist at a GF Investments. The House gets back in session once again. Noon Wall Street time for day four, round twelve of voting for the Speaker of the House. SMP futures right now up three points, SOUND futures up thirty nine. NAS Deck futures

down four points as investors await December payrolls. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow and US knock Index futures are little change as traders race for US jobs numbers do later that will help shart the path forward for Federal Reserve

monetary tightening. We checked the markets all day long here on Bloomberg SMP futures are a little change down, futures up a tenth of a percent or thirty one points, and NASDAG future is now little change ten. Your treasury down four thirty seconds. You have three point seven three percent they yield on the two year four point four seven percent. NIMEX screwed oil is up one percent or seventy four cents at seventy four dollars forty one cents of barrel, and the euro one point oh five one

two against the dollar. And that's a Bloomberg business flash. Now here's Michael Barr with Moore on what's going on around the world. Michael, good morning, Good morning, Karen dou His house reconvenes later today. As the speaker fight drags into a fourth day, Kevin McCarthy is trying to strike an agreement with GOP dissidents. A major storm that slammed into California has led to flooding down the trees and power outages across the state. Doctors say the mar Hamlin

is beginning to awaken and is showing substantial improvement. The Buffalo Bill Safety went into Carniac arrest during Monday Night football doctor Say Hamblin's first question was did we win? Meanwhile, the NFL canceled the game between the Bills and Bengals. In hockey, Devils and Islanders lost, Ranges Bruins and Capitols one in the NBA, the Celtics one. 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 is Bloomberg. Nathan love to hear that from mar Hamlin. Did we win? What a great partnersis? Thank you, Michael. It's on Wall Street, Nathan Hagar and this is Bloomberg Daybreak. When you hear someone say things are moving toward an iceberg usually doesn't mean anything good. And Carlisle, head of Global Research, Jason Thomas says that's where he thinks the US economy is headed. Thomas expects corporations to remain under

pressure as the Federal Reserve keeps hiking interest rates. It's got the details from Jason Thomas. Now he spoke with Bloomberg's David and Glass and Evon Man. Can they use economy of void to recession. What do you think? Maybe, but but it does seem unlikely. And that's really because of the the the economy seems to be heading for an iceberg in the form of higher interest rates. Those higher interest rates have really not taken effect as yet

for most borrowers. It's really the December nineteen reference date. So as of Q one floating rate, corporate borrowers are going to face UH debt service costs that are about fifty to six higher than they experience just six months ago. So I do think we're going to see increased levels of financial distress. Um, I'm speculative, great barrow. And of course that's going to cause a lot of management teams

to change their behavior. Rather than a growth orientation, they're going to start to think about cost cutting and and this seems to me precisely how a recession gets propagated. And then, you know, you still have the likes of some FED speakers like Estra George, you know, speaking and saying, you know, she aspects the FED fundraise to be over five percent and stay there for much of four What with forced the FED to pivot? Then do you think, Jason, you know, all this talk of a pivot really seems

so premature. As you alluded, I think that the FED right now is very concerned that inflation is going to remain stuck above four percent. Inflation has come down, obviously, price pressures have eased, the supply chain crisis is effectively over, but you still have lots of reasons to again fear that that inflation is going to remain elevated relative to the two percent target. First, you have wage growth at

low skill levels. There there is still significant labor shortages low skill levels, earnings are growing at about a seven percent annualized rate overall wage growth, again consistent with roughly

four percent inflation. And then, I think most consequentially, you still have management teams that got a taste for pushing price through over the past couple of years and are still looking to increase prices where possible, And I think really the only way for the FED to deter those additional rounds of price increases is to impress upon management teams that those price increases are going to result in

lost sales or lost market share. And and again the only way to do that is to further restraint demand.

So on the whole yes, I do expect another basis points at the February first meeting, perhaps another basis points thereafter, but that policy rate five five and a quarter percent perhaps is going to be sustained into and I think that's where markets are going to be very surprised that that could mean some additional upside for the dollar in the new term, but then also again more financial distress among speculative grade borrowers as they're forced to pay these

higher floating rate interest costs for for a longer period than they anticipate. And that's the head of Global Research at the Carlisle Group, Jason Thomas, speaking with Bloomberg's David Englais and Avon Man. You can catch that full conversation on Bloomberg dot com and always on the Bloomberg terminal.

SMP Future is right now up one point ahead of December Jobs, Dow futures up twenty one, nanastack futures down nine points ten, your treasuries down five thirty seconds, the yield three point seven three percent, yield on the two year four point four seven percent, name X cruise up nine percent at seventy four dollars thirty five cents of Barrel Comics gold is little change, down ninety cents eighteen

thirty nine seventy announced. Up next, the latest on Kevin McCarthy's seemingly unending bid to be House speaker, plus what to expect from the December payrolls report that's coming up in thirty seconds. First, I'll look at your Bloomberg weather forecast. Scattered showers across the Tri State area today, They'll be tapering off this afternoon. We'll find temperatures between forty five

and fifty Later today, it'll become partly cloudy. Overnight low thirty five downtown, twenties in the suburbs, partial sunshine for tomorrow heiste forty five. It will be clear thirty to thirty five Tomorrow night. Sunday morning sun afternoon clouds in higher forty to forty five. I'm Rob Carolyn with your three day forecast. I'm Bloomberg eleven three oh broadcasting live

from the Bloomberg Interactive Broker Studio in New York. Bloomberg elving three to Washington, d C. Bloomberg to Boston, Bloomberg one oh six one to San Francisco, Bloomberg nine sixty to the country Sirius XM H one nine and around the globe, the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak and it's coming up to five

thirty on Wall Street. Good morning. I'm Karen Moscow, I'm Nathan hey Ger in Blueberg Daybreak is brought to you by Innovation Refunds to see if your small or medium sized business could be missing out on an opportunity. Was your business impacted by COVID nineteen and one, It may qualify for the employee Retention credit. The professionals that Innovation Refunds can help your business recover from the pandemic. See how much could be waiting for your business at get

Refunds dot com. And we're nearly four hours away from the open of US trading. Let's get you up to date on the news you need to know at this hour. We begin in Washington, where eleven rounds of voting have failed to elect a House speaker. Republican Leader Kevin McCarthy is still shy of the votes he needs. Former New York Congressman and Democratic Concuss chair Joe Crowley says the

process is reflecting poorly on Republicans. What it really is demonstrating is that the functionality of the Republican Conference the end up second anniversary of January six. Do you now have members of the Republican Conference who actually supported that event. I don't think it's a visual that the Republicans really one, but it seems it's when they're gonna get farmer. Congressman Joe Crowley was a guest on Bloomberg. Sound On with Joe. Matthew catched the show weekdays at five pm Eastern on

Bloomberg Radio. Well, Karen, Investors have their eyes on DC this morning. With the Labor Department set to release December Jobs Report about three hours from now, stay with us for complete coverage of the report, followed by an interview with Labor Secretary Marty Walsh that's coming up around nine

am Wall Street Time. Well, Nathan, A. Job's report won't fully reveal how interest rates are impacting the labor market, but Carlyle, head of Global Research, Jason Thomas says investors need to gear up for some economic pain on the horizon fire. Interest rates have really not taken effect as yet. We're going to see increased levels of financial distress and of course, that's going to cause a lot of management teams to change their behavior. They're going to start to

think about cost cutting. Car Lyles. Jason Thomas says he expects the FED to raise rates twenty five basis boys at each of its next two meetings, and as rates climbcarent St. Louis FED President James Bullard says they're approaching a well that could reduce inflation. Speaking yesterday, Bullard stopped short of it decating how high he wants rates to go right now, market surprising in a peak FED funds

rate of five percent this summer. Let's turn to the f t X saga now, Nathan, US authorities are ramping up pressure on the inner circle of FTX co founder Sam Bankman, Freed, and Bloombergy. Steve Rappaport joins US Live with that story. Good morning Steve, Good morning Karen and Nathan. A new name emerges in the case against f B SPF. Prosecutors are focusing on former ft X engineering director Nishad Singh.

He's not accused of wrongdoing at this time, but if authorities determined Singh played a role in the collapse of the company, a person familiar with the matter, says he could be charged later this month. Prosecutors already secured plea deals with two other associates of bankman Freed. He pled guilty this week two or not guilty rather to eight federal counts and will stand trial in October. Live in

New York, I'm Steve Rappaport Bloomberg Daybreak. All right, Steve, thank you, and again, futures are little change this morning. Straight ahead, your latest local headlines, plus a check of sports. And this is Bloomberg in Science five thirty one on Wall Street and Michael Bars here with Laura on what's going on in New York and around the world. Michael, thank you very much. Nathan. Time is running out to avoid a possible nurses strink at several New York City hospitals.

Members of the New York State Nurses Association say about ten thousand members are ready to walk out on Monday. Nurses say staffing levels have created unsafe conditions for patients. Five institutions, including Mount Sinai Health System, are still in talks toward a resolution. Three others have reached tentative agreements. President Biden will mark the second anniversary of the January

sixth insurrection. With the ceremony today at the White House, Biden will present the Presidential Civilian Award to police officers who served on that day. One of those officers as Capitol Police officer Harry Dunn, who says he suffers from PTSD. Man. I thought I had this under control, I beat this, but no, it literally just came out of nowhere and it broke me. Officer Dunn's full interview will their Sunday

on ABC's This Week Heard on Bloomberg. Meanwhile, former President Donald Trump is being blamed for the death of Capitol Police officer Brian sick Nik, who was assaulted during the Capitol riot. It's in a lawsuit from Sickneck's longtime partner that claims Trump is responsible because he riled up his supporters with false election claims and calls to take action. Vladimir Putin's proposed thirty six hours cease fire in Ukraine has drawn a cold shoulder from the US President. Biden

calls it hypocrisy. I'm reluctant respond to anything. Prutent says, I found it interesting he was ready to um bomb hospitals and nurseries and um churches and on the twenty five and New Year's and I mean I think he's trying to find some oxygen. President Biden spoke after delivering remarks on immigration yesterday. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than journalists and analysts more than a hundred twenty countries.

Michael Barr, this is Bloomberg Nathing. Thank you, Michael. Five thirty three on Wall Street Time for the Bloomberg Sports Update, brought to you by Trice State out of Here's John Stadshow. Thanks Nathan. Great news from Damar Hamlin's doctors in Cincinnati. The Buffalo Bill safety showing quote remarkable ahead of schedule improvement,

said to be neurologically intact and responsive. Bill's quarterback Josh Allen met the media in Buffalo, and for the first time, I was asked what it was like being on the field this past Monday. You can never put yourself in that situation until it happens. Um. I want to think, are the coach mentioned it earlier? But our training staff for going out there not knowing what's going on, but going through a checklist, working as a single sales Synbia

like saving his life. Hamlin's doctors said his first question was whether the Bills had won the game. As it turns out no one did. The game was of course stopped, and the NFL and out did will not be resumed. The game add significance and a f see playoffs seeding. There are reports the NFL is considering some changes in light of that regular season and Sunday last game for the Jets, limping to the finish with a five game

wising spink. They visit Miami, who has also lost five in a row, but the Dolphins can make the playoffs with a win. And in New England lost in Buffalo. The Giants locked into the six scenes, so they're game in Philadelphia meaningless for them. Coach Brian day Ball has refused to say whether that means he'll sit out guys like Daniel Jones and say Kwan Barkley. It's a huge game for the Eagles. They've lost their last two. They need a win to gain the NFC's one seed, or

they could be the five seed. Rangers won four one at Montreal. Losses for both the Devils and Islanders. John stash Award Bloomberg Sports all Right, John thank you, and the Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off and the outie model you've always wanted. Visit your local price state autie dealer to get behind the wheel of yours today, or visit

autie offers dot com for more information. SMP futures up a point right now down futures up nineteen NASTAC features are lower by twelve points. Tenure treasure yield three point seven three percent three five thirty five. I should say on Wall Street it's time for the Tri State Business Report. For that, we bring in Bloomberg's that Cory New Jersey has taken in thirty one billion dollars in sports bets

just four years after it became legal. The Post reports that's the most of any state in the country for that time period, but Jersey's lead is dwindling fast. New Yorkers are showing interest in sports gambling. In two more than fourteen billion dollars in bets were made in that state. The new two billion dollar terminal A at New Work

Liberty Airport opens next Thursday. The new terminal was originally supposed to welcome flyers December eight but the opening was delayed last month due to last minute issues identified in the facility's fire alarm and security systems. New York Governor Kathy Hokele has signed a bill into law that would ban p FASS in clothing by the end of the year. The chemicals are a known andocrine disruptor prevalent in clothing and other everyday aspects of life, from takeout containers to

nonstick cookware. That your Bloomberg Try State Business Report mym Ed Corey, Thank you. Edit's five thirty six on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Say this for the new Republicans in Congress. They made history. Now they

need to start making an agenda. This week, a handful of far right House Republicans revolted against the party's leading candidate for Speaker, Kevin McCarthy, denying him the majority he needed to win. It was the first time in a century that House lawmakers failed to elect a speaker on the first ballot. The House can't take up business without a speaker, which means a small group of right wing extremists is holding Congress hostage. This is what happens when

a political party effectively ignores public policy. After a campaign that emphasized cultural war issues over an actual governing agenda, House Republicans have found themselves in power without a plan. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Boomberg dot com, slash opinion or OPI n go on the Bloomberg Terminal. These has been Bloomberg Opinion and you can hear Bloomberg opinion

editorials every weekday. At this time, terminal customers can read more at O P I n go. In corporate news this morning, Tesla has made another round of price cuts on its Model three and Model Y electric vehicles in China. Starting price for a locally built Model Y SUV has been slashed to thirty eight thousand dollars. That is forty three percent cheaper that you can find it in the US. Tesla has been cutting prices as it faces renewed competition

in China. Stay with us, we'll get you a preview of the December payrolls report what it could mean for the path ahead for federal reserve policy. Drew Madis, chief investment strategist at Medlife Investment Management, joins us on this job's Friday. In the minutes ahead, you're listening to Bloomberg day Break, good morning markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com. A Bloomberg business at hand. At Bloomberg Quick Tape, this is a

Bloomberg business lash and I'm parent Moscow. European shares and Wall Street futures are struggling to maintain gains as traders of race for US jobs numbers that are due later this morning that will help chart the path forward for Federal Reserve monetary tightening. We check the markets all day long here on Bloomberg. SNP futures that will change now Future is up tenth of a percent or thirty three points, and nedsday futures are little change when the decks in

Germany also little change. Ten your treasury down three thirty seconds. You have three point seven two percent the yield on the two year four point four seven percent. Nimex screwed oil is up seven tenths per cent, or fifty three cents at seventy one cents a barrel. Comex School that will change in eighteen forty seventy announce the euro one point oh five one two against the dollar, British on one five six and one thirty four point to nine,

and bitcoins down three tens of percent. It said about sixteen thousand, seven ninety dollars and that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen. The House which turns today to try again to end the stalemate over choosing to speak here after days of voting with no conclusion. Party leader Kevin McCarthy is determined to win over enough of hello Republicans and has offered the Conservative holdouts rule changes

to give them more power. Several days after he went into cardiac arrest. Doctors say Bills safety to Marrow Hamlin is beginning to awaken and is showing substantial improvement. Dr say Hamlin's first question was did we win? Meanwhile, the NFL canceled the game between the Bills and Bengals. In hockey, the Devils and Islanders lost, the Rangers, Bruins and Capitol's

one in the NBA, the Celtics one. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analyst more than a hund twenty countries. Michael Bard, this is Bloomberg Naked all right, Michael, thank you. It is five forty two on Wall Street. This is Bloomberg Daybreak. I'm Nathan Hagar along with Karen Moscow taking a look at some other stories making news this morning, including a development

in the world of professional wrestling. Vince McMahon, controlling shareholder a World Wrestling Entertainment, is looking back or to get back into the day to day running of the company. Mcmanhn's proposing to put himself and to other executives back on the w w E board, and Bloomberg's Charlie Pellett has more. In a statement, McMahon, who retired last year amid allegations of sexual misconduct, is seeking to return to

w w E as chairman. He's also nominating former executives George Barrios and Michelle Wilson to the board and is seeking a strategic review of the business. The executive who ran the wrestling Giant for decades, said that with its TV rights coming up for renewal. It's a good time to review the company options in New York. Charlie Pellette bloom Bird Daybreak, Thank you Well, here's an ominous sign for consumers. More Americans are turning to credit cards to

pay everyday expenses. According to the Census Bureau, more than thirty five of households use credit cards or loans in December to cover spending needs. That's up from reading just eighteen months ago. It's a sign that households hit hard by inflation or finding their regular income is not enough to make ends meet. Meanwhile, while we wait for the December jobs report, it turns out a typical nine to

five job is not so typical anymore. New data from the International Labor Organization shows more than half the global workforce either works too much or too little. The report shows the average work week runs about forty three point nine hours. At the same time, about a third of employees have a work week of more than forty eight hours. Well a fifth work part time or less than thirty five hours a week. Nathan a very nicely for what we're going to get when it comes to the health

of the overall labor market. We're about to get our final glimpse at what jobs look like in two and the Labor Department releases December payrolls in just about oh two hours and forty five minutes now springing. Drew Maddis, chief market strategist at Medlife Investment Management, Drew, good morning.

What's the trajectory you see for job growth? Well, I'm not too far off from where the consensus is for this month's job growth numbers, but I think you know the most that story is the perfect story for where I think the important area to look at lies, which is how much are these people who are hired being

being worked? Right? Um, what we really what I'm really cautious about looking at is that hours work number because I think what may be happening is firms are hiring people that maybe they don't necessarily need because it's been so difficult to hire people for such a long period of time. So when someone becomes available, they hire them, uh, and then they don't work them as much as as maybe they would work other workers, and that work week

number begins to decline. And I think that's what we're likely to see this this month, is that we'll get a pretty good jobs number, but maybe the work week is a little on the soft side. Not At the same time, we keep hearing drew about pretty high profile job cuts in the financial sector the tech sector as well, and it's starting to raise the question about whether some of those laid off workers are going to be matched

into the jobs that are still available. Are we still expecting to see uh, something of a mismatch there when it comes to job openings and labor force participation. Well, I think you might. And I also think that, you know, one of the things to look at, particularly in a December payroll number, is you don't really want to look too hard at retail and you don't really want to look too hard at things like struction, right because there's not a lot of construction going on in the winter.

Um And so you you really I mean, not that there's got to be a core to every economics report out there, but you do want to exclude the ones that are that are more likely to be a seasonal factor adjustment rather than kind of a true job gain, um And and look beyond that to kind of things like the manufacturing sector and likewise to see what the job growth looks like. And I think they're the job

growth will be okay. Um, where I think it will turn is actually next next quarter, because a lot of companies do planning processes in the fourth quarter and then execute on them in the first quarter. And that includes planning for things like jobs. It sounds like we may have lost you their jury. You still with us? I am okay, can you hear me? It includes planning for things like jobs, job cuts, whether or not they're going

to hire people. Um. You know. So the plan that they're going to execute their putting in place now the x acute or they put in place in the fourth quarter, and they'll executed over the course of the next year. And that means if there's gonna be a turn in the jobs numbers, it's gonna come with the reports out and let's say March and April that come out for February and March. Okay, So when we start start to see that execution take place, what's the implication on what

we could see in terms of wage growth? Are we still expecting that we're going to see the kind of wage pressures that the FED doesn't want to see and they could potentially keep rates moving higher. Well, yes, I think you know that the prospects for decent wage games are likely, but you know, they are heavily concentrated in kind of lower wage industry. So you know, as we start the new year, we're gonna see things like new minimum wages going you know, minimum wages going up in

a number of states. That will have an effect on things. And we also have to bear in mind, you know, once again, a lot of the wage games are not coming from kind of like the middle upper middle class, are coming from workers who are working closer to the

minimum wage boundary. Uh. And while that may be a good thing from a societal standpoint, um, it's important to bear in mind it's not really doing a lot for kind of the higher income tears that are also struggling with inflation in order to maintain their center of living. Is there a point that the unemployment rate needs to get to an order for the FED to consider pivoting. Is there a correlation there. I'm not sure if there's a correlation, but they basically pointed to it in their

last set of economic projections. Um, well, let let me turn it around. There's a level of inflation they'll tolerate before they start cutting interest rates. Um, And that level was not two percent you know, in the summary of economic projections, they're cutting interest rates when inflation is still well above two percent UM, and so that tells you that the toleration level, given their unemployment forecasts in the mid fours, is probably more predicated on how fast unemployment

moves rather than a than a point level. Our last thirty seconds here, Drew, is the December report a pivot point for the Fed when it comes to deciding what level of an interest rate hike we could see next month. It's one of the last data points, So it's gonna be this and the inflation numbers UM and uh, you know, maybe even the retail sales numbers, because you know, we keep waiting for the consumer to drop off. Data dependence always the way for this Federal Reserve. Thank you as always.

Drew maddis joining us on this Job's Friday, chief market strategist at MetLife Investment Management. Again, will the numbers come out? Eight thirty Wall Street time. We'll have full coverage for you ahead of a conversation with Labor Secretary Marty Wall. She'll be joining us on Bloomberg Radio and television. Tune back in for that conversation. It's set for around ninety five Wall Street time, about an hour after the payrolls print comes out. SMP futures right now up three points,

staff futures up forty NASTAC futures down eight points. This is Bloomberg Markets, headlines and breaking news, twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at Land at Bloomberg Quicktape. He's a Bloomberg business flash and I'm Karen Moscow. Isn't P futures It will changed on

this job's day. And we checked the markets all day long here on Bloomberg again us in P futures, it will change down futures up a tenth of upper cent or thirty three points, and as day futures down two tens of uppercent or twenty points. In the ten year treasury down four thirty seconds, you'll three point seven three percent. They yield on the two year four point four seven percent.

Nine X screwed oils up seven tenths percent, or forty nine cents at seventy four dollars sixteen cents of barrel and comx s called up a tenth of a percent of a dollar seventy and eighteen forty two thirty announced, and that's a Bloomberg Business Flash. Nathan Karen, thank you.

We're coming up on five fifty six on Wall Street timed down for our daily Bloomberg Labrief, exploring legal issues in the news, and today we focus on the big name elite law firm Prostcauer Rose Company is suing its former chief operating officer, Jonathan O'Brien, accusing him of swiping more than thirty four gigabytes of sensitive confidential documents, including electronic files related to the firm's financials, practice information and

billing rates. A federal judge in Manhattan's given O'Brien till five o'clock this afternoon to return any proprietary or confidential information. O'Brien denies the allegations through his attorney. For more on the case, Bloomberg's June Grosso speaks with attorney Jeff Lewis of Jeff Lewis Law. Proscauer, which is nearing it's a hundred and fifty anniversary, said the firm is unaware of any employee, much less an officer, ever acting in such

a corrupt, debased, and illegal manner. Have you heard of anything like this at any other law firm. No, I've handled trade secrets litigation cases, not in the law firm context with this kind of thing happened, uh to scruntled employee goes to work for a competitor, But I've never read such a high level employee of a big offer of doing this. In the complaint, Proskauer calls him a

crafty plotter and describes his steel list. From your look at it, has he allegedly taken information that's very important to the firm. That would be something considered like trade secrets. Absolutely, it's one thing for an employee to leave one firm and work for another. Things that reside in an employee's head stay in his head, and that's not a protectable

trade secret. But when you take a thumb drive and you bypass security and you download compensation of various partners or how various practice areas are doing within a firm, you're giving a playbook to a competitor who could use that to strategize how to pick off or take practice areas clients or partners or associates from a competing offer. Can you tell from the papers if any client information was accessed. It's pretty clear that client information was not access.

But I'll tell you one thing that I found interesting. There's a suggestion there are an accusation that he lifted a litigation hold and caused thousands of his emails to be deleted, and if true, there may be some loss there of client related data. So forgetting what he put in his pocket, in terms of what the firm lost access to, there's a lot of the emails with pending litigation that will never see the light of day because

of what this guy did. Prostauer is this billion dollar law firm, and you know it's got a great name, and what kind of a hit does it take to its reputation from something like this. Well, think about this, if you're a client and your rely on this law

firm to protect your secrets. If they can't keep their own house in order and keep their own secret secret, and one major security measure can be overturned with one person directive to an I T person, claients might become doubtful that firm's ability to safegard client data, and employees and partners of that firm may have concerned about the leadership and security of their files and whether or not their houses being under an appropriate Fashion. That's attorney Jeff

Lewis speaking with Bloomberg's June Gross. Help catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast. You can download the show by going over to Bloomberg dot com, Slash podcasts, and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b Law. Go futures flat on this Job's Friday Up. Next, we head to Day four, Kevin McCarthy

Speakership Fight, and count down to December. Pay rolls Our two of Bloomberg Daybreak starts right now.