Bloomberg Daybreak: November 18, 2022 - Hour 1 (Radio)

condemned North Korea's latest weapons test. On Michael lar More AHLF, I'm John Stashnoward Sports, Aaron Judge named m v P. The Titans beat the Packers, the Nets and Devils won, the Rangers and Islanders law. That's all strain ahead on Bloomberg Daybreak on Bloomberg e Living freon New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg

Business App. Good Friday Morning. I'm Amy Morris and I'm Nathan Hagar futures are pointed higher this morning. We're coming up to five oh one on Wall Street, and we check the markets every fifteen minutes during the trading day. On bloomberg SMP futures are up ten points, Staff futures up forty eight. Nastack futures are higher by thirty six points. The tenure treasury is down ten thirty seconds. The old three point eight zero percent yield on the two year

four point four eight percent. The docks in Germany is up seven tenths per cent, the CACK and Paris up six tenths of one percent. Nim X screwed is up four tenths percent or thirty cents at eighty one cents of barrel. Comex gold up two tenths percent at ten announced and the euro one point zero three seven eight against the dollar. Amy Nathan, we beget in Washington, where reaction is still pouring into Nancy Pelosi stepping down his

House Democratic leader. The move opens the way were a general generational change in leadership, Democrats now rallying behind Brooklyn native Actium Jefferies as their next leader. We spoke with former New York Congressman and Democratic Caucus Chair Joe Crowley about the shift. I think he will be cordial. I think he'll be professional. Um, they may not agree and may not even like each other, but I don't think it's gonna stop a team from doing what he thinks

is the best interest of the American people. And I think that is paramount there. Former New York Congressman Toe Crowley spoke with Our Washington corresponded Joe Matthew on Bloomberg's sound on. You can catch the show weekday afternoons at five pm Wall Street Time on Bloomberg Radio. All right, Amy, Now let's talk markets. Stocks enter this final day of the week, coming off two days of losses. All Spring Global Investments head of Active Equity and Milletti says, we

may be closing in on a bottom. If we're headed into recession, if we're headed into this environment at higher rates, higher inflation, how can really, you know, risk athics, meme stocks, cryptocurrency, things like that continue to be beater, go up or be stable. And the fact that we're finally seeing breakdowns in those markets is a welcoming sign. It means that we're getting closer to the you know, maybe to the bottoming period all spring global investments and we letting notes.

The SNPs lowest level came just last month, with a reading just shy of now weighing on markets more hawkey is talk from the Fed. St. Louis Fed President James Bullard is saying interest rates should rise to at least five percent to curb inflation. The policy rates still isn't at a zone that might be considered sufficiently restrictive. To get to this sufficiently restrictive level of policy, will need

to increase the policy rate further. St. Louis Fed President James Bullard does not appear to be alone in that assessment. Is tough talk being echoed by Minneapolis Fed President Neil Cash carry We're all united in our commitment to getting inflation back onto our two percent target. It's an open question of how far we're going to have to go with interest rates to bring that demand down into balance. We have raised interest rates a lot this year, so

there's a lot of tightening in the pipeline. We have not felt the full effects yet, and yet inflation is still very high. Minneapolis Fed President Neil Cash Carrey says the full effect of rate hikes may not be felt for a year or more. All right, let's turn to corporate news now Amy, where the focus is back on Elon Musk, the self proclaimed chief twit is finding some of his ultimatums at Twitter are falling flat. That Baxter has the story from our Bloomberg nine sixty news room

in San Francisco. The latest ultimate um to commit to the company's new hardcore work environment or leave the company. By the deadline to sign the agreement, hundreds of employees had refused, with many postings that now familiar salute, which is the sign that they are leaving the company. How this prompted must to change his work at home policy and leave it up to managers to ensure the company

that the workers are making an exce contribution. The question remains, though, how many employees either will remain or will return, whether there'll be enough to service a system in San Francisco. I'm at Baxter Bloomberg Gay break all right, thank you, Ed and wild. Musk is cutting staff in the U as it may be a different picture overseas. The e USE Internal Market Commissioner says Musk will have to increase the number of Twitter moderators in Europe. He also wants

Musk to share Twitter's algorithms. Terry Brayton made those comments in an interview with France Info. Well maybe the painted Amazon may not end any time soon. CEO Andy Jesse says the e commerce giant will be cutting jobs into next year as it adjusts to business conditions. We get that story from Bloomberg's Charlie Pellett. These represent his first public comments about the cost reduction plans roiling Amazon since reports that are planned to wipe out about ten thousand jobs.

In a statement, Jesse said, quote leaders across the company are working with their teams and looking at their workforce levels, investment they want to make in the future, and prioritizing what matters most to customers and the long term health of our businesses. Some employees posting the company message boards have been critical of Jesse being silent this week since news of the job cuts became public in New York.

Charlie pet Bloomberg Daybreak. All right, thank you, Charlie. Taking a look at some stocks on the move this morning. Shares of applied Materials are up four percent. The ship equipment maker gave a sales forecast that beat estimates. Thanks to supply chain improvements. Shares of Gap are up almost eight percent comparable sales for the third quarter, top to estimates at Gap and another retailer, Ross Stores, is up

sixteen percent. That's after boosting its full year forecast and despite of the termoil from f t X. Amy bitcoins heading for a weekly game. The tokens up about three percent this week, while engage of the leading hundred virtual coins has added about one percent. That's a sharp contrast to last week, when Bitcoin slid twenty three percent as

st Sam Bankman Freed's ft X empire collapsed. Checking Bitcoin right now, it's up four percent at sixte SMP futures are up nine points, STOUT futures up, NASAC Future is up thirty five, the tenure Treasury down ten thirty seconds, the yield three point eight zero percent. Local headlines in a check of sports. Next to this is Bloomberg. Thank you, Nathan. It is five oh seven on Wall Street. Let's bring in Michael bar with more on what else is going

on in New York and around the world. Good morning, Michael, Good morning Amy. Lake effects Snow is burying parts of the midwest and northeast. In western New York. A driving van is in effect for all of Erie County, home to nearly one million people. This is considered an extreme event, an extreme weather event that means it's dangerous. It also means it's life threatening. New York Governor Kathy Oakele says at least three ft of snow is forecast by the

end of the weekend. The word has been out nationally statewide locally to all the commercial truck drivers. You need to stay off the New York State through A and the other roads to be identified during the storm event for your protection but also the protection of other motors on the road. Governor Hokel in November of a lake effect system dumped more than five feet of snow on

western New York had left thirteen people dead. New York Governor Hokel announced that construction of a new terminal at JFK Airport would begin early next year, following a pause and the project due to the pandemic. According to a statement from Hocal's office, the new terminal, Terminal six, is a privately financed development that is expected to cost around

four point two billion dollars. The first phase is expected to be done by six New Jersey Governor Phil Murphy and his wife paid one point seventy nine million dollars in state and federal taxes in one according to a tax return summary released by his office. The Democratic governor also donated almost seven hundred thousand dollars. The couple reported federal taxable income of almost five million dollars. Murphy is

a retired senior director at Goldman Sex. North Korea has fired an intercontinental ballistic missile that landed near Japanese waters, in the second major weapons test this month that showed the potential ability to launch nuclear strikes on all of the US mainland. The U s quickly slammed the launch and vowed to take all necessary measures to guarantee the safety of its mainland and allies. South Korea and Japan, Vice President Kamala Harris and Thailand for the Asia Pacific

Economic Cooperation Leaders Summit together. The country's represented here will continue to earthe more Korea to commit. Meanwhile, China and Russia have opposed US moves to tough and sanctions against the North. A final Senate vote to pass legislation to protect the right of Thanksgiving Thanksgiving holiday rather that the same Sex marriage is going to be pushed until after

the Thanksgiving holiday. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg in all right, thank you, Michael, gotten out. But the Sports Report brought to you botch

ry stat Audi. Here's John dash Our say Andy, There'd been some talk that despite what Aaron Judge was doing hitting all those home runs, what Showy Otani was doing hitting and pitching was worthy of a repeat American League MVP Award. But in the end the vote was lopsided. Judge got twenty eight first place votes, Otani only two, and Judge in the season where he, of course had a record sixty two home runs. First Yankee outfield that

will be named m v p SS Mickey Mantle. In nineteen sixty two, the Cardinals Paul Goldsmith won in the National League. What I went for the Nets in Portland, A tip in with less than a second ago by Royce O'Neil in a one O nine, one O seven went over the Blazers. Kevin Durant scored thirty five obviously made some comments about the lack of talent around him, but O'Neil at a triple double and Ben Simmons at his best game as a Natty Sports fifteen next already

two and oh on their trip. They're playing tonight at Golden State overtime in the NHL. They'll win for the Devil's another win three two in Toronto to strich their winning streak to eleven, and OT lost for the Rangers three two in Seattle. Vincent trocha Hald tied the game of two minutes left. The Islanders lost in Nashville five to four. St. John's Now four and oh beat Nebraska by twenty in Brooklyn. Arizona State beat Michigan by twenty five.

Thursday Night football in Green Bay, Tennessee won twenty seven to seventeen. Ryan Tannehill outplay at Aaron Rodgers twenty two of twenty seven, three hundred and thirty three passing yards, two touchdowns. Derrick Henry Scorey also threw a TV pass and the Titans have won seven or last eight. Packers have lost six of the last seven. The Eagles have signed veteran defensive tackle and Dominck ensue. Sunday's Brown's Bills game moved out of snowy Buffalo. It'll be played indoors

in Detroit. John stash Ellard Bloomberg Sports Team, all right, thank you, John. Futures are higher snpup fourteen points, DAL futures of seventy four NASDAC features of five D one. This is Bloomberg. The Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in

the OUTI model you've always wanted. Visit your local try state autie dealer to get behind the wheel of yours today, or visit Autie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business out and at Bloomberg Quicktape. This is a Bloomberg Business lash. I'm Nathan Hagar. Futures

are moving higher this morning. Stocks are looking to snap two days of losses triggered by a realization the Federal Reserve and other major central banks see no reason to pause rate hikes anytime soon. We checked the markets every fifteen minutes during the trading day on Bloomberg S and p futures right now are up seventeen points. Staff futures up a hundred three. Nastack futures are highed by sixty

four points. The docks in Germany, cac and Paris both up one percent right now ten Your treasury is down nine thirty seconds the old three point seven nine percent yould on the two year four point four seven percent. Nime X screws up almost a half percent of thirty seven cents at eighty two. One of barrel comics gold is up two tenths percent, three dollars seventy cents higher atounts. The euro is trading at one point zero three seven

two against the dollar right now. The British pound one point one five a en one thirty nine point nine three tenday, I'm all street time. We get existing home sales and the October leading index. It's Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Good morning, Michael, Good morning Nathan. North Korea has fired an intercontinental ballistic missile that landed near

Japanese waters. It's the second major weapons test this month that showed a potential ability to launch nuclear strikes on all of the US mainland. The Biden administration told a judge Saudi Crown Prince Mohammed Ben Solomon cannot be sued in the US over the murder of journalists Jamal Khogi because as a head of a government, he is immune. If the judge adopts the US finding, it would effectively end the lawsuit filed by Kashogis fiance. Same in the NBA,

the Nets lost. In the NHL, the Rangers lost to the Kraken and OT three two. The Devil's won their eleventh straight, this one in OT against the Maple Leaves three to The Islanders lost the Bruins one. Capitals lost in a shootout to the Blues five four. In football, the Titans down the Packers seventeen. In baseball, the Yankees Aeron Judge won the a L M v P. The

Cardinals Paul Goldschmidt won the nl Honor. Global Needs twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than hundred twenty countries. Michael Barr, this is Bloomberg gaming, all right, Thank you, Michael. It is five twenty on Wall Street. We're live from the Bloomberg Interactive Broker Studios.

This is Bloomberg Daybreak. How Speaker Nancy Pelosi stepping down from her leadership position as Republicans prepared to take over the majority in the House of Representatives. We are jointed now by chief US policy strategist Greg Valia at a GF Investments. Greg, good morning. Do you thank you for taking the time with us today. Were you at all surprised by Pelosi's decision? No, not at all, Like good morning, Amy, I think that she had telegraphed this for several months

that she wouldn't continue as as Speaker. But there are other factors, obviously her husband's attack, her very frosty relations with Kevin McCarthy, but maybe most importantly, a desire to start elevating a new generation of republic of Democratic leaders. Yes, she did say it was time for a new generation to lead the Democrats. Who would that be, Well, Hakeem Jeffreys number one. It looks like he is the odds

on favorite to become speaker. There are others, but I think Jefferies is going to be a pretty easy victor in the voting for speaker, I was gonna want ask you about that. I is wondering if this could cause even more of a rift within the Democratic Party where progressives and more moderate Democrats might wind up going head to head over those leadership positions, or is this an opportunity for them to unify. I think it's an opportunity

to unify. But at the same time, this is going to be a very very partisan new session of Congress starting in January, when Kevin McCarthy, of course, is the speaker. I think that the focus on investigations, especially into Joe Biden's affairs, is going to poison the well pretty quickly. Greg, let's talk about that. Um Republicans ready to put forth their new agenda. One of their issues is going to be investigating President Biden in relation to his son, Hunter

Biden's foreign business deals. What does that tell you about the Republican agenda as they go as they take the majority in the House. Well, I think it's it shows that there's not a lot legislatively they can do with a margin of three seats four seats, but they can have subpoena power, and I think it will be more than just an investigation of Joe Biden, and maybe an investigation of our very porous border between the US and Texas. It may be an investigation of the origins of COVID,

of Joe Biden's withdrawal from Afghanistan. The list will go on and on, and I think these investigations may overshadow any attempt to get much legislation enacted. Let me ask you a sidebar question to that, and it's a little esoteric, but bear with me. When the electorate watches the House, manufactur or not manufacturer, but work on issues like those investigations correct, instead of working on things like, you know, gas prices, inflation, you know, the bread and butter issues

that affect voters. Does that eventually impact their vote two years later, I'm thinking way out there it could. I mean, the Republicans have won are done fairly well in this election by saying that they're going to go after excessive spending inflation. There are a lot of really legitimate policy issues. But if they focus not on that but on simply these investigations, it could backfire on them. Politically, Republicans hold a slim majority in the House, Democrats hold a slim

majority in the Senate. Does that tell you anything about the electorate itself in the US. Yeah, pretty divided, isn't it. I think that that that voters, though, to me, send an important, too important signals. Number one, I think that the the electorate favors moderates. I think if you get too extreme on the left or the right, that makes a candidate vulnerable. Number two. I thought the most encouraging thing in this election was that there was no significant

voter fraud. I and many people were worried for the last few months that we could have a repeat of the very contentious election, would charges a fraud afterwards? That hasn't happened. That's very encouraging. Only thirty seconds here, Greg, do you anticipate gridlock in the coming Congress or perhaps a forced cooperation among lawmakers? Mostly gridlock? I think that for the markets that's a good story. Many people in the markets think that gridlock is good because it means

they do less harm. And I think on issue after issue, they're just going to spin their wheels, right, Chief US policy strategist Grad Value at a g F Investments. It is always a pleasure. Thank you very much for joining us on this Friday morning. Looking ahead at the next

Congress and the Republican majority. Looking at futures now s and P futures of fourteen points del futures of seventies seven nasdath futures of forty nine ten year treasury down nine thirty seconds, the yield at three point seven nine two year yield at four point four eight percent, much more still to come. On this Friday morning edition on Bloomberg Daybreak, we'll be checking the markets and bringing you the latest news and business economics and finance. Stay with us.

This is Bloomberg. Bloomberg Daybreak is brought to you by the New York Community Trust. Your name will live on as a champion of the causes you care about four years to come through a charitable bequest to the New

York Community Trust. Learn more at Philanthropist dot NYC. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Free On to Washington, d C, Bloomberg ninety nine one to Boston, Bloomberg one O six one do San Francisco, Bloomberg M sixteen to the Country, Sirius XM CHADO one nine team and around the globe. The Bloomberg business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning.

I'm Nathan Hager, I'm Amy Morris. Bloomberg Daybreak is brought to you by s EI Asset managers don't get results that are off the charts when are solutions are off the shelf. Learn how SEI is operating platform can turn infrastructure into a competitive advantage at se I C dot com slash tech. And we're about four hours away from the open of US trading. Amy, let's get you up to date on the news you need to know at

this hour. Beginning in Washington, where Democrats are weighing Nancy Pelosi's replacement as House Democratic leader, party is rallying behind Brooklyn, New York native Hakim Jeffreys. Former New York Congressman and Democratic Caucus Chair Joe Crowley spoke with us about the shift and leadership. He's a great orator, he has great skills, he's very smart, and uh, I think he knows how to build coalitions and that's what's so critical of being congress.

Former New York Congressman Joe Crowley spoke with our Joe Matthew on Bloomberg Sound On. You can catch the show week days at five pm Eastern on Bloomberg Radio. Nathan out of Markets were stocks Center the last day of the week, coming off to losing days, weighing on investor's sentiment. More hawk Fed speak. Minneapolis Fed President Neil cash Carey says the inflation battle is far from over. We have raised interest rates a lot this year, so there's a

lot of tightening in the pipeline. We have not felt the full effects yet, and yet inflation is still very high. Minneapolis Fed president Al cash Carrey says the full effect of rate hikes may not be felt for a year or more. St. Louis Fed President James Bullard made similarly hawkish comments, saying interest rates should rise to at least five percent. Right Corporate News Now Amy where Twitter turn well continues. Elon Musk gave employees at ultimatum to adopt

to the company's new work environment or leave. Many are not signing on, which is reportedly putting Twitter's operations at risk. Dan Ives at Wedbush Security says Musk's leadership does not inspire much confidence for investors. It's been a circus and I think there was a view as a Tessa holder that once Musk bought Twitter, it would start to die down, but instead it hasn't. Dan Ives of Wedbush says Musk

has his hands full. He also says social media companies like Twitter have likely already seen their best periods for growth. Taking a look at some stocks on the move this morning, shares of Applied Materials are higher after giving a sales forecast, hopping estimates. Shares of Gap or up after comparable sales for the third quarter beat expectations, and despite the ft X breakdown. Amy bitcoins heading for a weekly game. And it comes after bitcoins twenty three slide last week when

Sam Bankman freeds ft X Empire collapse. Right now, bitcoins up eight ten percent. It's sixteen thousand, eight hundred twenty dollars. SMP futures are up fourteen points, DAL futures up eighty one points, nastack futures up fifty points. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg, all right, Thank you, Nathan, five thirty three on Wall Street. Now, let's bring in Michael bar with more on what else is going on in New York and around the World.

Good morning, Michael, Good morning, Aiming. A dangerous storm that has the potential to bring heavy snow to western New York is already causing problems. Power outages are already being reported in the Buffalo area. Mark poland Cars is the Ree County Executive. We've just been advised that there is a power outage of affecting two thousand, one nineteen customers in the town of West Seneca. There are scattered, scattered

outages elsewhere. Erie County Executive Mark poland Car says more than three feet of snow is forecast through the weekend. Governor Kathy Elcle says that even though heavy snowfall is nothing new, this storm might be life threatening. Be ready for the worst, have plenty of food in the refrigerator, and be ready to check in on your neighbors. Governor hucl is urging people to stay off the roads during

the storm. The New York author who claims Donald Trump raped her in the nineties filed a public copy of a battery lawsuit she plans to bring against him next week. E Gene Carroll, a former advice columnists with l magazine, will file the lawsuit on September novembery, the day after a new state law takes effect to temporarily lift the statute of limitations on civil claims for sexual offend. Says.

The finding was in federal court in Manhattan. North Korea fired and intercontinental ballistic missile that landed near Japanese waters in the second major weapons test this month. Japan's Defense minister says the missile launched this morning had the capability to reach all of the US mainland. Vice President Kamala Harris we strongly condemn these actions and we again called

for North Korea stopped further unlawful, destabilizing. Vice President Harris is in Thailand for the Asia Pacific Economic Cooperation leaders Summit. A final Senate vote to pass legislation to protect the right of same sex marriage will be pushed until after the Thanksgiving holiday. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts more than a hundred

twenty countries. Michael bar this is Bloomberg. Amy, All right, thank you, Michael. Time now for the sports report, brought to you by Try State Audi. Here's John dash Our. All right, Amy, Aaron Judge said last night he was nervous waiting to hear if he was indeed American League m VP. He won easily, got all but two first place vos judged the fourteenth Yankee to be m v P, and those fourteen have won twenty two m v P awards. Will Judge have a chance to meet a Yankee m

v P again. He needs a new contract, said last night he's hoping to sign somewhere soon. The Cardinals Paul Goldsmith one n L m v P, the guy who caught the ball in Texas that Judge hit for his sixty second home run, turned down three million dollars. It'll be sold at auction. Then that's in Portland, tiedly Royce Neil in about to get a foot court for Brooklyn. Boots it out top two ran scot. It slips a bit, spins right elbow, fadeaway is no food but tip Dan it's tipped in with FOYT seven w f A N

and that's one one O nine one oh seven. Royce O'Neil's tip in Capain, a night where he had eleven points, eleven rebounds and eleven assist. Kevin ran scort thirty five. Nets come home to play Sunday, and Kyra Irving might return from his suspension Next tonight visit Golden State College of St. John's meet Nebraska by twenty for Jack's Soriano seventeen points eighteen new bounds. The Rangers scored late to tie, but lost in Seattle three two and overtime. The Islanders

lost in Nashville five to four. The Devil's favorite a hot a three two o t win in Toronto. That's the Devil's eleventh consecutive victory. Week eleven Underway, Tennessee won at green Bay seven to seventeen. The Titans are pulling away in the a f C South, while the Packers, who did win last week to into five game losing spig They are way behind in the nfcun John Stashar Boomberg Sports. All right, thank you, John. It is five thirty seven on Wall Street. Time now for the Tri

State Business Report. Here with that is Bloomberg's Joe Doneger. The redo it Met Life stadium set for next year still won't involve a grass field surface. The Post reports the stadium has told ESPN it's shopping for vendors to replace the current field with a new synthetic surface. It's a version of field turf, and that has drawn criticism from players, both from the Giants and jets worried about injury. Canadian based bag brand Herschel Supply is opening a store

in the Flat Iron Building today. Women's Where Daily says the brand operates only four stores in Canada right now, but it's planning a dozen or more in North America by the end of next year. And the part of New York and New Jersey is still the busiest in the nation despite a small drop in cargo movement. California's top ports are still working to clear up backlogs built during the pandemic, but the port beat its counterparts in l A and Long Beach for the third straight month.

That's the Bloomberg Try State Business Report. I'm Joan Donnager. Thank you, Joan. It is five thirty eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three affiliate radio stations around the world. I'm Steve on wus L A Tampa Bay. We're talking about the Win Dixie supermarket chain, exploring as sale of

the company um Corneds Donahoe. On ktr H in Houston, a quarter of Americans face the risk of a winter power emergency. I'm Ginas Servetti and for k CBS and San Francisco. I'm talking about GAP having a pretty good quarter and getting a handle on its merchandise built up. I'm Jeff Fallinger and on w TB and in Columbus, I'm reporting on the enhanced employee benefits at JP Morgan Chase. I'm Stephen Carol and Bloomberg d a B Digital Radio.

In London. We've been reporting on reaction to the bleek new reality of recession and higher taxes for the UK after the Chancellor's autumn statements, and those are some of the stories our Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg editorial boy Ward.

In one sense, investors and regulators should be grateful to Sam bankman Fried, the Erstwhild, head of the ft X Cryptocurrency Exchange, the spectacular flame out of his virtual empire has become a master class on everything that's wrong with crypto markets. Several lessons stand out that crypto denominated assets warrants skepticism, for example, that market capitalization isn't the same as value, and that accounting and consumer protections really do matter.

Whatever the potential benefits of crypto, the surrounding speculative friendly has little to do with them. On the contrary, it has mostly served to separate people from their money. As f t X has shown, lawmakers and regulators should act to keep crypto from threatening the broader financial system, and in the meantime, the message for investors and traditional finance remains simple, stay away. This editorial was written by the

Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or O P I n go on the Bloomberg Terminal. These has been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every weekday. At this time, terminal customers can read more at OPI I n go. Futures are higher SMP futures up twenty three points. DAL futures up one two points, Nasdaq futures up eight five Much more still to come on Bloomberg daybreaks. Stay with

us on this Friday morning. This is Bloomberg. The Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off and the Audi model you've always wanted. Visit your local try state Autie dealer to get behind the wheel of yours today, or visit Autie 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 Quick Tape. He's a Bloomberg

Business Flash. I'm Nathan Hager. European stocks are on the rise. US futures are pointing to a stronger open on Wall Street after two days of losses. Is triggered by Federal Reserve signals that interest rates are going to cape rising for a while. Yet we check the markets every fifteen minutes during the trading day on Bloomberg. Right now, SMP futures are up twenty points, DAL futures up a hundred

nineteen NASDAC futures are higher by seventy seven points. DAX in Germany Cacom paris both up about one percent right now ten Your treasury is down seven thirty seconds the old three point seven nine percent yield on the two year four point four seven percent. Nime X screwed little changed, up four cents at eighty one dollar sixty eight cents a baril Comex gold is up two tenths per cent three dollars eighty cents higher. Six gets you announce of gold.

The euro one point zero three seven six against the dollar, British pound one point nine one nine two four again one ninet two big coins three tenths percent higher at sixteen thousand, seven hundred thirty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more of what's going on around the world. Michael, thank you very much. Nathan. The Biden administration is expected to ask the Supreme Court to reinstate the original plans to cancel the student debt relief.

Biden officials are concerned that many Americans will experience a financial strain if the relief plans fizzle out. House Democrats showed support for Brooklyn native Hakim Jeffreys as their next leader to succeed speaker Nancy Pelosi after she announced that she is stepping down in the NBA. The Nets lost in the NHL. The Rangers lost to the crack in an OT three two. The Devils won their eleventh straight, this one in OT against the Maple Leafs three to

the Islanders lost the Bruins one. Capitals lost an issuet out to the Blues five four. In baseball, the Yankees Aaron Judge won the a L m v P. The Cardinals poo Goldschmidt won the NL. On her Thursday Night football, the Titans down the Packers. Seventeen Global news twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael bar this is Bloomberguinea.

All right, thank you, Michael. Five nine now on Wall Street Live from the Boomberg get Her Active Broker Studios. This is Bloomberg Daybreak. We're joined now by Charlotte Ryland COHED Investment c c l A Investment Management. Charlotte, good morning to you. Thank you for taking the time with us. The SMB SMP of about ten percent from its October lows. I want to know where you stand, is the worst over? Is this a bear market rally? I think for us

it's still like a bear market rally. I mean, clearly we're we're reacting to that slightly weaker inflation number that we had, um so that you know, it's still pretty high inflations. Point seven is not exactly out the woods, is it so? Um So it really for the next year that the question is going to be less about inflation. It's probably been much more about what's the impact of the rising interest rates, the rising the cost of living on businesses and on consumer and what's going to be

happening in terms of the earning stuff. But so I think for us it's still a question of you know, it could be a pretty difficult start next year, and I'm not sure that's fully reflected in numbers yet. We have seen talk this week from FED officials about raising those rates, keep those rates higher, trying to find inflation. Do you think a recession is inevitable? Um? I think if we're talking about Europe, I would certainly say so. And I think the UK Europe with much more difficult

position than the US. Economy. UM, And I'll our of you is that, yes, we're definitely gonna have a slowdown in the US, quite possibly a recession um. And you know, you're beginning to see you know, some science of housing market in more difficult place. You're beginning to see some big companies starting to shed labor, and mainly that's the tech companies. But even so, you know, possibly that sort of turning what has been a very tight job market.

And you know, for the consumer, yes, they've had all of those COVID savings sitting on the balance sheets, but I imagine particularly for the lower end of of the earning scale, people probably something to burn through that. You know, definitely negative real incomes is year. What opportunities do you

see ahead? Um? I mean I think it's it's much more a sort of uh, you know, stock specific basis for us rather than highly in particular set, because I mean there's more defensive end of the market has really held up well this year, so you know, the staples things like McDonald's, etcetera. UM, and those those that still continuing to print pretty good numbers, but certainly the valuations

looking a little stretched there. So for US, it's probably more some of the health care names that we think look pretty interesting and certainly you know, reasonably immune from what's going on within the economy. UM. And then there are parts of tech that are looking more interesting when

the semiconductor etcetera. Has had a dreadful year. So you know, companies like in Video for example, are beginning to look more interesting, possibly slightly two earlier the numbers yet, but you know, there are opportunities emerging in that kind of ever, things like Adobe as well. Ei there anything any places we should avoid? Um? I think we need to be really careful about anything that's got a leverage on its balance sheet. UM. Clearly with rates for the much higher

trajectory that's that's not gonna be helpful. And we still be reasonably cautious on the consumer and consumer discretionary UM. And uh, you know, I think we probably you know, we've had a great year from oil. I'm not sure that that's going to be a great year for Royal next year because I think you know, you've had that rebound from the pandemic blows and if you're into a slow record of environment that tends to be not great for world one. Go about a minute here, what about

geopolitical risks, how's that factor in? Uh, Well, I mean it's obviously been a big year for that as well, hasn't it. Um So, I mean Ukraine continues to rumble on. It doesn't seem to be escalating, which is thankful to Spike, you know that sort of the straight bombs going in to Poland. But you know, China US continues to be you know, the big issue. Um clearly sort of Biden as you having talked this this week has been being helpful or calming a little bit of those tensions, but

that that remains sort of the big issue. And I think that's going to be particularly like the semi conductor of complex, you know, that reliance that the West has on places like Taiwan, which is potentially vulnerable. I think that's going to continue to sort of drive people to sort of bring some of that key technology back home and back into a friend your nations right. Clearly, still some uncertainty out there. We're going to be watching it with you. Charlotte. Thank you so much for taking the

time this this morning. Charlotte Ryland is go ahead of investments at c c l A Investment Management. Nathan Okay Ay Thank you. It's five fifty three on Wall Street. It's time for the Bloomberg Law Report for to you buy American Arbitration Association Business disputes are inevitable result faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a d R dot org. Now, let's get to the legal stories

we're watching this morning with Bloomberg's Jeff Pellinger. The State Department announced that most US consulates and embassies overseas have returned to normal operations after local pandemic restrictions were lifted. California's Workplace Safety Agency did not include a paid sick time provision in the states permanent COVID nineteen worker protection rules.

Proposed class action accuses Loureal USA and related companies of failing to disclose the presence of toxic chemicals in hair relaxers. Bloomberg Law everything you need on one legal research platform, Guidance, Amelitis, and Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. Now, another legal story we're watching a Tesla shareholders waging a long shot battle for Elon must have returned stock options granted as part of his unprecedented fifty

five billion dollar pay package. This week, must took the stand at Delaware Chancery Court defending his pay package that helped make him the world's richest man. For more, Bloomberg's June Grosso speaks with Eric Tally, a professor at Columbia Law School, in defending the compensation plan. Current and former Tesla directors have testified that it was important to keep Musk focused on and engaged in running Tesla, but he's

basically a part time CEO. Musk agreed with the shareholders lawyer that at the time of this pay deal he was spending about fifty of his time at Tesla, at Space on Open Ai, boring, and Neuralalink, and now he testified that he's spending almost all his time reorganizing Twitter. This makes this case one of the most unprecedented executive compensation cases that we've ever seen. Quite frankly, most CEOs

don't work part time at their companies. They are full time employees, and their employees who are paid well to basically put every bit of their effort and attention into

the welfare of the company. Musk has always been a little bit mercurial in his habits, and in fact, they kind of knew that at the time, right, This was not one of these things where, you know, some of these other sideline ventures came up after the fact other than Twitter, so you know, there was a sense in which they sort of knew they were getting a guy who had divided attentions. What are the questions that the

judge has to answer to come to her decision. The two things that are going to be really important to understand is what was the content x by which the shareholders of Tesla approved this compensation package, Because it turns out that getting a shareholder vote, as long as it's a fully informed vote to approve a pay package, does a lot. It buys you a lot of real estate if you're trying to defend that pay package. But it's got to be kind of a by the book vote.

And a secondarily important issue is to what extent was the anticipated size of this compensation package within the realm of you know, kind of a reasonable amount, something that would be fair to the other shareholders of Tesla, who, after all, we're basically going to be diluting themselves a lot. As these benchmarks got met and a bunch of these options got cast out, so that part is really going to turn on you know, how hard was it to

meet these benchmarks? And so it turns out that the more likely it is that the shareholders actually they knew what they were voting on, they voted with their highs wide open, the more deference the judge is going to give to the pay package. On the other hand, if the shareholders kind of didn't know everything or felt sort of bullied or forced into this vote, then that pay package and its bareness is going to get more scrutiny in court. That's Eric Tally, Professor Columbia Law School, speaking

with Bloomberg's June Grosso. Catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law Podcast or downloading the show at Bloomberg dot com slash podcast. 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 pointing higher this morning. SMP futures are up twenty six points down, futures up a hundred fifty four. Nasdaq futures are higher

by a hundred points. The tenure Treasury is down to six thirty seconds yield three point yield on the two year four point four seven percent. Bloomberg day break continues. This is Bloomberg