Bloomberg Daybreak: November 10, 2022 - Hour 2 (Radio)

Hurricane Nicole as at the east coast of Florida. Plus the U says about a hundred thousand Russian soldiers have been killed in Ukraine. I'm Michael Barr more a half. I'm on Stash Shower and Sports than Nets. After naming shop Vader Permanent coach blew out, the next local hockey

teams all played tonight. That's all straight Ahead on Bloomberg Daybreak on Bloomberg Eliving, Freeo, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine, San Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio Dot Come and via the Bloomberg Business at Good Morning. I'm Nathan Hagar and I'm Karen Moscow, US not Getnecks future is on the rise this morning.

We're coming up to six oh one on Well Street, and we check the markets every fifteen minutes throughout the trading day. On bloomberg SMP futures up, Abody points, Stout futures at forty two, Nastack futures at thirty two, and a ten year treasury down four thirty seconds. He held four point one zero percent. They yield on the two year four point six one per cent. Nathan Karen us

futures are gaining after yesterday's sell off. Several factors contributed to the losses, including weak earnings from Disney, a crypto meltdown, and Republicans failing to sweep the mid terms. Jimmy Lee, as CEO at Wealth Consulting Group, the selloff that we're getting from the mid terms I think creates more opportunity.

I mean, the bottom line is we're gonna get gridlock for another couple of years, which is what we knew was going to happen anyways, and so I don't think it changes a ton of different things in terms of, you know, what legislation would have been or wouldn't have been over the next two years, and I think the focus will be then on the presidential election. Wealth consulting groups. Jimmy Lee says he's still optimistic the Fed delivers a

soft landing for the economy. Meantime, Nathan cryptocurrencies are bouncing back a bit this morning. Right now, Bitcoin is up more than three percent at sixteen thousand, two hundred sixty dollars. The digital currency hit the lowest levels in two years after Binance walked away from its plan takeover of f t x dot Com. Now the Justice Department is investigating turmoil at ft X. Bloomberg's Doug Krisner has the story a liquidity crisis has pushed f t X to the brink.

The firm's founder and CEO, Sam Bankman Freed told investors without a cash injection, the company would need to file for bankruptcy. Our sources say he said the short follows up to eight billion dollars and f t X needs four billion to remain solvent. And now we're told officials from the d o J are working with attorneys at

the SEC in investigating. Regulators are already investigating whether ft X mishandled customer funds, and they're looking into the firm's relationships with other parts of bank Man Freed's crypto empire in New York. I'm Doug Prisoner Bloomberg Daybreak. All right, Doug. Thanks. Investors and officials are calling for tighter regulation of the

crypto markets, especially after this recent meltdown. We caught up with the Commissioner of the Commodity Futures Trading Commission, Caroline Fam, and many people are saying, is this a Lehman moment? Are we looking at two thousand and eight? And frankly, that was one of the things that happened after two thousand and eight was that through strong regulation and through strong risk management, firms had to rebuild that kind of trust. And so I think that's something that the crypto sector

is going to have to look at. It's going to have to figure out how to tackle that. CFTC Commissioner Caroline Fam says there needs to be strong standards to prevent crypto contagion hitting the broader financial system. Well, the drama at ft X could drive bit going down to thirteen thousand dollars nathan As. According to strategists at JP Morgan Chase, they say the entire crypto market faces a cascade of margin calls and weeks of deleveraging up next year,

and attention this morning turns to inflation. The widely anticipated Consumer Price in next for October comes out at eight thirty a m. Wall Street Time. Let's get a preview from Bloomberg's Michael McKee. The inflation battle isn't going to be one quickly, but the Fed is looking for little victories today. Supply chains are normalizing and the increase in goods prices has been leveling off. Apparel prices, used cars,

some construction materials should see relatively smaller moves. Services is the real question a statistical quirk, and the fading pandemic should mean big drops for healthcare costs, but it takes time for rent and home prices to fade. In the CPI, they will continue to increase and keep the core elevated. As for the headline figures, we know gasoline and food have gone up, so Wall Street and the Fed will largely discount those. Michael McKee, Bloomberg Daybreak. All right, Michael,

thank you. The fan will be paying close attention to that inflation report. But Minneapolis Spent President Neil Cash Cary says calls for a pivot and policy right now are misplayed. We are a long, long, long way away from that right now, so that's why any talk of a pivot is entirely premature right now. Minneapolis Fed President Neil cash Gary says a central bank remains a laser focused on inflation. All right, let's pivot to politics now. Karen get the

latest on the mid terms. Control the Senate now boils down to three races in Georgia, Nevada, and Arizona. This as President Biden claims the best mid term performance for an incumbent president's party in twenty years. Amy Morris has details from our Bloomberg newsroom in Washington. Democrats had a stronger night than expected, but Republicans are poised to control

the House. The President acknowledged that voters made it clear their concerns about inflation and crime, issues on which Republicans campaigned, but he says young people voted in record numbers with additional concerns, and they found a clear and unmistakable message if they want to preserve our democracy and protect the right to choose, Republicans have won two hundred six House seats. Democrats hold one eighty three, and it could take days to know the balance of power as dozens of close

races are still being counted. Some could wind up and recounts runoffs, or in court. In Washington, I'm Aymy Moore as Bloomberg Daybreak, All right, Amy, thank you. When it comes to geo politics, US China relations are back on the front burner. President Biden said he will aim to avoid any concessions to President Shi Jin Ping when they meet at the G twenty and Bloomberg said Baxter has

the story. At his news conference, Biden was asked by Bloomberg's Jenny Leonard about his trip to Asia and what his stamps will be regarding Taiwan. Taiwan doctrine has not changed at all from the very beginning, the very beginning, So I'm sure we'll discuss Taiwan. I'm sure we'll discuss a number of other issues, including fair trade. Biden repeated he wants competition, not conflict. In San Francisco, I'm at Baxter Bloomberg Daybreak, and thanks and incorporate news this morning.

It is all about Twitter again. Elon Musk has emailed the company's staff for the first time, telling them to prepare for quote difficult times ahead. According to the email reviewed by Bloomberg News, Musk says remote work will no longer be allowed. Employees will be expected to be in the office at least forty hours per week. SMP futures are higher now by eight point. Stout futures up forty two. Nastack futures a gain of forty points. Straight ahead, your

latest local headlines and a check of sports. This is Bloomberg man. It's now six oh seven on Wall Street where at forty degrees in Central parkheaded to the low sixties today, still dealing with a crash westbound Jackie Robinson Parkway at Metropolitan Avenue. Michael Barr is here with what else is going on in New York and around the world. Michael, thank you very much. Nathan. It is a rare November

hurricane for Florida. Hurricane the Coal arrived overnight, slamming Florida's East coast with heavy rain and wind gusts topping seventy five miles per hour. Homeowners describe their backyards disappearing as massive waves lashed the Dayton of Beach area, already battered by Hurricane E and six weeks ago, Florida's Governor Rond de Santis. There is a lot of acturated ground, and that means the trees that normally wouldn't go over in a storm like this will likely go over because the

ground is so wet and saturated. Nicole Now a tropical storm has knocked out power to about fifty five people. Jury deliberations start today in New York in a civil case against filmmaker Paul Haggis is accused of publicist Hailey Briest says in she reluctantly agreed to a drink at the screenwriter's apartment, then was subjected to unbalcom kisses, forced to perform oral sex, and raped as she repeatedly refused. Briest's lawyers say that this is a horror film by

Paul Haggis. Haggis says it was a consensual encounter. General Mark Milly, the chairman of the US Joint Chiefs of Staff, says that more than one hundred thousand Russians and probably forty thousand Ukrainian civilians have been killed or wounded in the war. Meanwhile, Russia ordered its troops to withdraw from the southern Ukrainian city of Curson after Kievs troops pressed forward with a counter offensive. Retired Colonel Jeff mcconslin says

withdrawal as a major embarrassment to Vladimir Putin. There have been reports for an extent period of time the Russian military leadership has urged Putin to allow them to withdraw in order to avoid a potential military disaster. Intelligence reports suggest that Putin has forbidden them to do so, and rather order them to defend the city at all costs. Retired Colonel mcconslin spoke to CBS at the UN Climate

Summon in Egypt. The UK's new Prime Minister, Rishi soon Act says that the war in Ukraine has shown the West that they must turn to new forms of energy Putins, a born war in Ukraine and rising energy prices across the world are not a reason to go slow on climate change. Prime Minister soon Next comments come as President Biden will head the cop Global He was twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists analysts in more

than a hundred twenty countries. Michael mar this is bloom Thanks Michael almost sixth ten on Wall Street, time for the Bloomberg Sports Update, brought to you by try stayed out here. Here's John stan Shower. All right, Nathan. After the departure of Steve Nash as Nets coach to stop assistant Jacque Vaughn took over on an interim base, but the team has played well since then on the Nets have removed the interim tag. They have signed Vaughan through

next season. The Nets general manager John marks there's a number of factors, you know why j V was the right fit. I mean, obviously I've known JV for a long time and all of us have. And then he's been a part of this culture. He's been a part of what we've been building here over the years. UM. And we look at the person he is, we look

at his connection with players. UM. I obviously look at what's happened over the last sort of four games and make it five because after the announcement came an easy win for the Nets in their first meeting of the season with the nixt blowout in Brookelyn one twelve to eighty five. Kevin Durant twenty nine points, twelve rebounds, twelve. That's this stef Curry now healthy, twenty three points in twenty three minutes. Julius Randall eleven next with Nick shot.

They're now five and six the Nets or five and seven. Milwaukee is ten and one, double overtime win at Oklahoma City and a night where the Bucks didn't use you on his son to the compo you talk ten and three where the win over Atlanta. The feeling was the Jazz we're gonna tank this season. They traded away the two best players. Lakers are just two and nine, even with Lebron, James still pointed at a high level. They lost to the Clippers and Lebron left the game with

a broin injury. Rangers looked at end a three game losing streak that included a home loss to the Red Wings. They visit Detroit tonight, the Islanders host Arizona and the Devil's host Ottawa. The Devils are going for an eighth win in a row. Aaron Judge won the Hank Garon Awards for the American League's top offensive player. Judge should add the m v P next week. John Stashward Bloomberg Sports, Nathan,

thank you John. Right now, SNP futures are moving higher by nine points South futures of fifty two Nestact futures of forty five points October consumer prices add at eight thirty Wall Street time. We preview the data for the data dependent fed Next with Bloomberg's Michael McKee and Bloomberg Sports was brought to you by Audie. Don't let someone else drive off in the Autie model you've always wanted.

Visit your local price state Audie Dealer to get behind the wheel of yours today, or visit Audie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day. At Bloomberg dot com for the the Bloomberg Business apt and at Bloomberg Quick Tape. This is

a Bloomberg Business Flash and I'm Karen Moscow. This update is brought to you by B and Y Millon's Perishing Learned why the world's most sophisticated wealth management and institutional firms rely on Perishing to help them improve profitability, create efficiency, attract talent and manage risk. At Pershing dot com, US

dot Index futures on the rise this morning. Treasuries are slipping as investors remain on edge before a report showing that could show inflation and the world's largest economy moderated for a fourth consecutive month. And we checked the markets every fifteen minutes throughout the trading day on Bloomberg Guess and p Future is up ten points this morning. Down Future is up fifty four nasdack futures up forty six. The decks in Germany little change. Ten year treasury down

four thirty seconds. He had four point one percent yield on the two year four point six one percent. Nine mex screwed oil is down about nine tenths percent, or seventy three cents and eighty five dollars ten cents of barrel comexs go down at quarter percent or four dollars at seventeen o nine seventy ounce. The euro point nine nine four three against the dollar British found one point one three eight eight and the yen one forty six point four six. And bitcoin is up almost three percent

at sixteen thousand, eighty dollars. That's a Bloomberg Business flash. Now here's Michael Barr with more on what's going on around the world. Michael, thank you very much. Karen. Hurricane Nicole made landfall early this morning along Florida's east coast, just south of Vero Beach Nicole. Now a tropical storm battered a large area of the storm we restate with

strong winds, dangerous storm surges, and heavy rain. President Biden says that he expects an official call early next year on whether he will seek re election for another four year term. Meanwhile, the struggle for control of the U. S. Senate boils down to three uncalled races Georgia, Nevada, and Arizona, with each party needing to win two of those states to secure a majority in the NBA. The nets rolled over the next one twelve eighty five, the Celtics one

in hockey. The Capital's Lost Week ten begins in the NFL. Tonight, the Falcons play at the Panthers. Global News twenty four hours a day on air and on Bloomberg Quickdake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barn this is Bloomberg. Nathan all right, Michael, thanks for coming up to six twenty on Wall Street Live from the Bloomberg Interacted Brokers Studios.

This is Bloomberg Daybreak, and we're coming up to the release of October consumer prices in just about two hours and ten minutes time. Out of that, we're joined by Bloomberg's Global Economics and Policy correspondent Michael mckeel be breaking down those numbers once they hit your Bloomberg terminal. Mike, good morning. Looking at the consensus from economists we've surveyed, it's gonna be another bump up in the month over month number and a tick down for year over year.

It seems like inflation is taking a good long while to get back under control, and it's going to and that was expected by the Fed. Uh, it is an unusual time. Inflation went up faster than it normally does. And I don't know what you called normal anymore since

it's so low for so long. But the Fed is expecting it to be a long term process, which is why J. Powell and company have said regularly they're going to raise the FED funds right to a restrictive level and leave it there for a long time, perhaps a year,

to try to bring down inflation. Uh. The numbers you referenced were the headline, though, and the Fed is not really looking at that because the reason it will tick up as energy and possibly food and on a month to month basis, and and there's nothing that FED can

do about that. They'll be looking at the core and they they've kind of got the opposite situation there where it may come in a bit lower on a month over month basis, a bit higher on a year over year basis, but the point would be more on the month to month uh the year over years obviously influenced by what happened twelve months ago. Whereas if you start to get a sequential decline for a few months in the core, then it might suggest that the FED is

starting to win the battle. But this would be the first decline in a couple of months, So if it happens, it's only the start, right, And that raises the question still about whether the FED starts to slow down on interest rate hikes. You mentioned the FED is said that it is going to get the terminal rate higher, maybe around five or a little bit above five per cent. Could we see signs in the core that make the case for the FED to think about looking and seeing

whether the rate hikes have started to have an effect. Well, the the thing you want to do is take things apart and look at take the take the report apart and look at specific categories that might be impacted. We know real estate has been hit hard, and real estate is an important sector of the economy. It's a third of the cp I. It's it's not as big a waiting in the pc which is the Fed's target indicator.

But the FED will want to see if things that are influenced by the cost of borrowing have started to slow the rate of price increases in those areas. Uh. That's that's kind of what they'll be looking for out of this report. They have another report before the next meeting. They've got the PC index before this meeting, another jobs report before this next meeting. So this won't be decisive, but it will set the tone in the markets for the conversation stions the FED will have over the next

five six weeks. Yeah, I think you alluded it to it somewhat there. I think something else that they're looking for is whether we're gonna start to see services inflation follow goods lower. That's the question, does services inflation start

to slow down? Uh? The housing prices UH goes into the core um parts of that our services, and that's gonna be something to watch UH goods prices have started to decline because supply chains have started to normalize, but service prices increases have increased, have accelerated in the last six months or so. And that's the concern. Is the problem for services that they can't find workers, and therefore UH they've got to pay up for workers and raise

their prices to come compensate for that. That's the question out there on the services side, and we'll start to get a picture of it today, but it's gonna take some time for that to level off as well. And in our last thirty seconds here, we've heard the FED also say that there more likely to go higher on rates than than trying to pull back and get into a soft landing territory. What could this cp I print

mean for the more aggressive rate hikes. Probably means more for the markets than for the Fed, because they do have a number of indicators, as they suggested, that are yet to come. UH. Their view at this point seems to be that they want to slow down the pace of increases, not cut back UH rates, but slow down the pace of increases so that they can react more quickly if we start to see recessionary signs and so unless we get a really outsized number, probably fifty stays

the basis case. Okay, Mike, thanks as always. Bloomberg's Michael McKee can be breaking down October CPI for us and just a little more than two hours eight thirty am Wall Street Time. This is Bloomberg Bloomberg day Breaks, brought to you by Jewish Communal Fund. For fifty years, philanthropists at all levels have turned to j c F Stone Advice Funds to streamline their charitable giving. Visit j c

F and Y dot org. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg Living Free to Washington, d C, Bloomberg ninety nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM chto one nineteen and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg day Break and it's six thirty on Wall Street.

Good morning. I'm Nathan Hagar and I'm Karen Moscow, and we're just about three hours away from the open of US trading time. Of the five things that you need to notice. Start your day out to you by Interactive Brokers. Interactive Broker's clients are an interest of up to three point three three on the idle cash and their brokerage accounts. Visit i vk are dot com slash interest rates to

learn more. First, US future is steady this morning after yesterday sell off today, wey gear up for October's inflation report. Phil Palumbo with Palumbo Wealth Management says, as prices run hot, we're still waiting for a market bottom. When will the bottom be put in? The Keith answer to that question is going to be when the Fed pivots. So inflation continues to be a problem, which means if Fed not ready to pivot, which means the bottom is not in.

Philip Palumbo with Palumbo Wealth says investors should not focus on when inflation has peaked, but should consider where it settles. Well. The Fed is going to be paying close attention to that CPI report Karen at eight three am Wall Street Time, But Minneapolis Fed President Neil cash Cary says, no matter how it shakes out, it is premature to consider a pivot in policy. Financial markets seem to believe that inflation should fall back down towards our two percent target over

the next couple of years. I hope they're right. I know that we're gonna do what we need to do to bring inflation back down. Minneapolis President Neil cash Cary says the Fed's goal is still to achieve a soft landing. Well. Turning to crypto Now Nathan, Bitcoin hit a two year low after Binance walked away from its takeover of ft x dot com. JP Morgan strategists say that drama could

drive bitcoin down to thirteen thousand dollars. Nick Carter with Castle Island Ventures tells us the collapse of f t X shatters industry confidence. Is really one of the most shocking exchange collapses in the history of the industry. One of the worst days in the history of the industry. We're bracing ourselves for the real fallout. Yesterday it was kind of the red wedding, but today is we're taking

on the bodies. Nick Carter with Castle Island Ventures speculates that f t X founder Sam Bankman Freed could face criminal liability. Still, it is unclear if there was any

wrongdoing by Bankman Freed. Well, the Justice departments looking now into the term will surrounding f t X Karen Commodity Futures Trading Commission Chief Caroline Fam tells Bloomberg tighter regulation is needed in crypto, strong global standards to make sure that there are no gaps in the international regulatory framework where you can see risks like this bread CFTC Commissioner Caroline Fam says the cryptosector must consider strong regulation to

rebuild trust and in politics this morning, Nathan, President Biden is claiming the best mid term performance for an incumbent president in twenty years, but still control of the Senate remains up for grabs. The President says his planned right now is to seek re election in four That's the five things that you need to know to start your day. Brought to you by Interactive Brokers, and this is Bloomberg.

Thank you. Carrying at sixty on Wall Street, fortygrees in Central Park headed to the low sixties today we gotta crash on the westbound Grand Central Parkway at Jewel Avenue in Queens. Michael bars here with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. Hurricane Nicole made landfall along the East

coast of Florida this morning. The rare November hurricane had already led officials to shut down on airports and theme parks and ordered evacuations that included former President Donald Trump Samara Lago Club. Florida's governor around the sentis the windfield from the storm's very large, and we expect impacts the stretch far beyond the center track, including tropical storm force

winds as far near north as Jacksonville. Governor de Sentists warned that Nicole's storm surge could further aroad many beaches hit by Hurricane Ian in September. Nicole now a tropical storm is forecast ahead into Georgia and the Carolinas later. The Chairman of the Joint Chiefs of Staff, Mark Milly, says well over one hundred thousand Russian soldiers and as many as forty thousand Ukrainian civilians have been killed are

wounded in the war. Meanwhile, Russia has announced the retreat from Curson, a regional capital in southern Ukraine that it seized early in the war. Retired Colonel Jeff McCaslin says that a pull out from the city would be a major setback from Moscow, a Russian with raw would not only be a major embarrassment to Mr. Putin, but also Ukraine to win back territory in the Zapparitia region as

well as southern Ukraine. This will position Keiva his forces to seek to recover all of Crimea, which it lost in two thousand and fourteen, as well as allowing them to stop the flow of fresh water into Crimea. Retire

Colonel mcconslin's old CBS. There have been reports that the Russian military leadership had urged Putin to allow them to withdraw in order to avoid a potential military disaster, but Putting said no. Now that w n B A star Britney Grinder has been moved to a Russian penal colony to serve out her nine years sentence, President Biden gave an update on the case. Biden says that he hopes now with the U s midterms over with Moscow will be willing to talk more seriously about a prisoner swamp.

We've had a number of discussions so far, and uh, I'm hopeful that now that our election is over, there's a willingness to h to negotiate more specifically with US. Grinder is serving her sentence for drug possession. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven after journalist analysts more than twenty countries. Michael Barr, this is Bloomberg Natan, Thank you, Michael, coming up to six thirty six on

Wall Street time for the Bloomberg Sports Up. They brought to you by Try state Out. He here in his John Stanshew, all right, Nathan blowout ed Barkley's. The Nets jumped in front of the Knicks right off to that never let up Finals one, twelve to eighty five, with Kevin Durant scoring twenty nine points. He had a triple double. The Net's held the nixt to thirty two percent shooting there three and one. Since the Kyrie Irving suspension, they're

playing well. Since Jacques Vaughn replaced Steve Nash as the coach, the Nets are rewarded Vaughan. He's no longer the interim coach. He's been a loyal Net seven years and assistant. Vaughn was also the interim head coach at the end of twenty Right after Nash left came the reports the Nets wanted to hire em a Udoka, who the Celtics had suspended for relationship with the team employee. The Nets, already dealing with the Kyrie Sad criticized heavily for considering hiring Udoka.

Clearly we had second thoughts. Giants back to the bye, hosting Houston Sunday at Brian Dabols presser, and multiple questions about the hand injury suffered by safety's Davier McKinney had happened at an a TV accident in Cabo. It's a matter again. I feel bad for us. I feel bad for him. Um, showing not something you want to see. UM. I feel bad for the kid in particular, I mean got injured, and I feel bad for us. You know,

we lost a good player for a few weeks. The quarterbacks may not play Sunday Buffaloes Josh Allen as an injured elbow. The Ram's Matthew Stafford is in concussion protocol. John stash Awer Bloomberg Sports, Nathan all Right, John, Thanks sixty seven on Wall Street. Let's get more now on the crypto crisis with Sam Bankman Freed the one time wonder Kind, warning that the crypto exchange she founded f t X could face bankrupts if he doesn't get a get enough funds to cover a shortfall of as much

as eight billion dollars. That's after arrival by Finance backed away from a deal to come to f t X is rescue. Bloomberg Global Financial correspondent Shanali bask is back with us. You've been watching this saga very closely, Shanali, get us up to speed. So yes, if he doesn't raise the money, remember Finance had walked out of a potential deal to acquire f t X assets outside of

the United States. If he doesn't raise money, which it looks very unlikely at this point, he will have to file for bankruptcy for f t X outside of the United States. And there's a question about what happens to f t X u S, which is the entity that's inside of the United States, And all of that leads to much broader questions about what happens to the funds themselves.

Will customers be made whole? Ever, remember we are going through a series of bankruptcy processes now and f t X is largely based in the Bahamas, so any potential bankruptcy proceeding would be very difficult. And you know, I know for the last twenty four hours after and been talking to both folks in crypto, folks adventure and folks and restructuring because it's a very complicated web of money

to try to track down for all the people involved. Yeah, and we saw a bitcoin drop below sixteen thousand after Binance made that surprise announcement backing away from the ft X biot interesting though, to watch Bitcoin back above sixteen thousand this morning. What do you make of the market

moves in crypto right now? You know, it's interesting to see bitcoins still stay above fifteen thousand dollars, so you do have to still think, okay, wait a minute, this is in a full crash of the current cryptocurrency, but there is something else that's happening that is another sign

of stress in the market. And you've seen over the last twenty four hours a little bit of a decoupling here and Tether, which is one of the biggest stable coins, breaking its peg briefly briefly now remember when the lunar

collapse happened. That's also what the worry of was about stable coins, and stable coins have a more immediate link to the US dollar, so people are really, this is all those This all goes to say, people are just watching for contagion and seeing where the crypto worries can start to ripple into the broader financial system if at all. Just about thirty seconds left here we've been reporting the

Justice Department is now getting involved looking into this. Is there a risk of criminal liability for Sam Bateman Freed? It's early, but the Destice prominent is certainly taking a look at how they've used the funds and whether these funds have been used at customer funds I've been used for the purposes. Thanks jan Ali good having on with

us once again. Bloomberg Global Financial correspondent Shinali bassk As we continue to watch the crypto space and the saga surrounding f t X. Right now, Bitcoin, after dropping below sixteen thousand, is back above that sixteen thousand, handled now at sixteen thousand, four hundred seventeen dollars. Broader market pointing to games as well. All the S ANDP futures are up by thirteen points right now, down futures of sixty eight,

NASTAC futures are higher by sixty six points. Tend your treasuries down three thirty seconds the old four point zero nine percent yield on the two year four point six zero per cent. You're listening to Bloomberg day Break and Bloomberg Sports was brought to you by Autie. Don't let someone else drive off in the autie model you've always wanted.

Visit your local tri state autie dealer to get behind the wheel of yours today, or visit Outie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quicktap's a Bloomberg Business lash and I'm Karen Moscow future is on the rise this morning. Let's go to the first word breaking news dance for today's morning. All in here, Tatiana, Darry Tatiana, Good morning,

Good morning, Karen. Like you said, Features higher this morning after that steep sell off yesterday without features up eighty five point s and ps of fifteen and nas jack up sixty nine. Treasuries, however, are heading in the opposite direction, with the tenure yield up one basis point to four spot oh nine percent. The dollar is stronger for a second day, while bitcoin is up four but still trading below the key seventeen thousand handle on the economic front today,

all eyes on CPI at eight thirty this morning. In early trading, we're seeing Gribban shares up seven percent after reiterating guidance, beyond Meat up one after its numbers, and in other moves, crypto exposed stocks are rebounding after some heavy losses. Coin based robbing hood up to percent, while micro Strategy up five and wrapping things up here, Aultrea was downgraded to sell at ubs Live from the First

Breaking News desk. I'm Tatiana, Daria, Karen very Tatiana, thank you, and here lie breaking news of your Bloomberg type squad on your terminal s q U a w K. That's a Bloomberg business flash. Now here's Michael bar with more on what's going on around the world. Karen, thank you very much. Urcane the coal made landfall around three a m near Vero Beach, Florida. It has since been downgraded to a tropical storm with winds gusting to seventy miles

per hour. About fifty five thousand people are without power. Two days after the mid term elections, control of the House and Senate are still unknown. A razor thin race is unfolding in Colorado. Fewer than one hundred votes separate Republican Congresswoman Lauren Bobert and Democrat Adam Frisch in what could be a major upset for Republicans. In New York, a big win for the GOP Mike Lawler beating Congressman Sean Patrick Maloney, the chairman of the Democratic Congressional Campaign

Committee NBA. The Nets rolled over the Knicks one eighty five. The Celtics won in hockey. The Capitol's Lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven your journalist and analysts more than twenty countries. Michael Bar, this is Bloomberg. Caeron Ry. Michael bar Thank you sixty nine on Wall Street. Let's turn to news and science and technology now with a Bloomberg and j I T STEM Report brought to you.

Buy New Jersey Institute of Technology as one of the nation's of leading polytechnic universities and a top military friendly school, and j I T supports America's service members and their families. Learn more at n j I T dot E d U slash veterans and now here's just making news and science, technology, engineering, and math. A Northrop Grumm and capsule has delivered several tons of supplies to the International Space Station despite a

jammed solar panel. The shipment arrived two days after launching from Virginia. Only one of the cargo ships two round solar panels open. Following liftoff, flight controllers tried in Vain to open the stuck panel, but managed to draw enough power for the flight with just one. The European Union plans to outline proposed natural gas price controls at a meeting tomorrow. The unprecedented energy crisis is threatening to pu

the twenty seven nation block into recession. Still, the idea of price controls on gas has divided EU members and it was the largest single owner art auction in history. Christie's presided over the sale of just sixty artworks for an unprecedented one and a half billion dollars. They came from the collection of the late Microsoft co founder Paul Allen. Proceeds from the sale we'll go to philanthropy and as

a Bloomberg n j I t STEM report. Nathan, Thanks Karen, We're live from the Bloomberg Interactive Broker Studios or at six fifty on Wall Street Time Now to check what's going on in d C. Some of the top stories in our nation's capital include President Biden hailing a strong election night for Democrats in a mid term victory, lab control of the Senate now down to who wins two of the last three races, and the GOP leaning toward de Santis over Trump in four Let's bring in Bloomberg

Government congressional reporter Jack Fitzpatrick for more on some of these stories. Jack, I'm sure you, along with a lot of the rest of us, saw President Biden's comments following the mid term election results. That sounds like the message he received from voters is stay the course. Yeah. I mean, overall, it's been pretty good news for Democrats given the expectations of the first mid term being really, really tough for

the president's party. Uh. You know, it does still look like the House is likely to go Republicans way, but probably by a very narrow margin. Uh. And considering Democrats still have a chance that holding on to the Senate, even if it's a Senate with the Vice president being the tiebreaker, that's kind of a win. Or at least avoiding catastrophe for Democrats. So some of the policy takeaways are gonna be the the Yeah, voters uh may not

be happy about inflation, but they like low unemployment. That the economy may not have been quite the weakness that Republicans thought it was for Democrats. That abortion access was a huge motivator. Uh. And that overall Democrats may not have gotten an A plus but have gotten more or less a passing grade from a lot of voters. Now, let's look at where the control or the fight for control of Congress stands at this point. I guess it's still too soon to call definitively whether either party has

control of either chamber of Congress at this point. Yes, technically, uh, we we can't exactly call the House. Uh. There have been about two hundred seven seats in the House called for Republicans. You know, it's just just looking at the competitive races, this has always appeared to lean pretty strongly their way. But a number of those competitive races have been called for Democrats. So again it looks like they're probably on track for a narrow majority on the Republican side.

But we're we're still waiting for a lot of results, especially in the West that we're kind of starting later. And then of course the Senate. If either party can win Nevada and Arizona, they would they would take the Senate. But if those are split, then we're going to be looking to that Georgia runoff in December a little bit of deja vu as as Georgia runoffs just happened to uh frequently can determined control of the Senate these last

two cycles. So it's it's going to be very close. Uh. It looks like both chambers will have extremely narrow majorities for whoever controls each one, uh, and that that probably means governing is going to be pretty tough for the next two years. Do narrow majorities mean a tough fight for leadership as we look to see what the actual makeup of the next Congress itself? Yeah, it it raises a lot of questions, especially in the House, uh, for

both parties. You know, Nancy Pelosi had it sort of left open the option that after looking at the results of this election, she would decide what her future or would be. There was a sort of a simmering expectation that if Democrats lose, especially if they lose big that she would step down. Um, you know this is this is fairly good news for Democrats. It seems to to sort of toss up in the air exactly what's going

to happen with their leadership. And it's not good news for Kevin McCarthy because if he only has a handful of votes beyond the ten vote majority in the House, it could get tricky in terms of lining up the votes to elect him speaker. Do conservative groups come to him asking for concessions ahead of time in exchange for their votes. Narrow majorities are always difficult, and it's not even just the bills that they're voting in all, it's

it's the leadership election as well. It's interesting to you see the idea that we could have a more emboldened populist wing of the Republican Party in Congress when the election results for more populist candidates who are backed by former President m uh didn't really go so well this cycle, and thinking about looking ahead to the four race, it's looking like Republicans are starting to feel a little bit

cooler on the former president. Yeah, there's it's a bit counterintuitive that on one hand, a smaller caucus is by definition a bit more of an extreme caucus because you haven't elected as many moderates from swing states, swing district. Uh. It also can embolden a group like the Freedom Caucus on the Republican side. If it's easy for one caucus to say, hey, we can take away the majority. There are enough of us so that we won't have two

eighteen votes without our votes. Uh. That that increases the possibility of certain factions really throwing their weight around within the Republican caucus if it's a very narrow majority. But yeah, one of the takeaways is that the Trump wing of the party did not do very well. There's some frustration with the with Trump's endorsement of moment Oz in Pennsylvania. We'll see what happens with Blake Masters in Arizona that

has not been called um. But again, you know, if this shifts the attention to someone like Ron de Santis that's not necessarily a moderate, it could be a shift and sort of a competing group, competing factions on the conservative side. Even if the party turns away from Trump, it's not exactly great news necessarily for the most moderate Republicans. So in the last thirty seconds here. What are you gonna be watching for as we set our attention to

the race. You heard from the President yesterday saying he's looking to see whether trumpet de Santis sort of duke it out. Yeah, I want to see, especially if Trump sticks to his announcement that he was gonna he was going to have an announcement next Tuesday about his future. It seemed like he was going to announce his presidential run and he was gearing up for in expectation that

Republicans would do well. The question of if he sticks to that schedule after a pretty disappointing mid term for Republicans would tell us something about the Trump de Santis dynamic heading towards Thanks Jack, as always Bloomberg Government Congressional reporter Jack Fitzpatrick, and you can read more about these stories on Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio when you're in Washington. Just tune into Bloomberg and one oh five point seven FM HD two.

Futures moving higher as we await October inflation data. SMP futures up eleven points, Staff futures of fifty nine Nastack Futures, hired by fifty eight Points. Bloomberg Surveillance is next, with Tom Keene, Jonathan Farrell, and Lisa Bramwitz back in New York for Karen Moscow. I'm Nathan Hagar. This is Bloomberg