Bloomberg Daybreak: November 29, 2022 - Hour 1 (Radio)

counterfeit goods. Plus, the Senate bill protecting same sex marriage is set to pass today. On Michael bar More, I'm John Stashwar Sports. The Red Hot Devils beat the Rangers, Nets beat the Magic and its winner go home for the US today at the World Cup. That's all s

train ahead on Bloomberg Daybreak on Bloomberg. He Live in Free on New York Bloomberg nine one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine Team and around the world Old on Bloomberg Radio dot Com and via The Bloomberg Business. Good Morning, I'm Nathan Hagar and I'm Karen Moscow.

In the US futures are mostly higher this morning. We're coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP futures up about E. Floyd's down futures are little changed. NASDACK futures at forty three. The decks in Germany is down at quarter percent, and the tenure treasury up to thirty seconds. Heel three point six seven percent yield on the two year four point four three percent. Nathan, Okay, Karen.

We'll get back to the markets in a minute, but first you want to update you on the situation in China. Health officials have held their first briefing since protests over COVID restrictions began last week. Bloomberg's Rebecca Chung Wilkins has the latest from Hong Kong. We saw quite muted, if any activity overnight. UM we feel very heavy police present in a lot of major Chinese cities like Beijing and Shanghai. UM and and part that did need needed to quite

a reduced effort. UM the briefing. Quite frankly, save Ore has steered away from really covertly talking about the protest but there did seem to be a somewhat sort of softening in tone from authorities, acknowledging that some of the implementation of COVID controls has been relatively strict. Bloomberg's Rebecca Cheung Wilkins reports China plans to speed up vaccinations for the elderly, but it's stopping short of enacting mandates. Well Nathan.

Stocks in Asia surged as unrest over COVID curbs ease. Hong Kong's Hang Sang Index rally more than five percent, Well stocks in China gain three percent. Let's get the recaul from Bloomberg's Juliet Sally and Singapore Good Morning, Juliette, Good Morning Nathan, and Karen Shares rallied in Hong Kong and on the mainland as some investors speculated that the protests may hasten has shift away from COVID zero policies. Traders also took hard from the lifting of China's multi

year ban on share sales by builders. China's Tendia government bondi ULD advanced to its highest level in a year, as support measures announced for the property sector danted hopes of further monetary policy easing, and the Japanese end rose, as did an index of emerging market currencies in Singapore. Juliette Sally Bloomberg Daybreak. Okay, Juliet thanks, Now, let's take a look at US China relations now or the response to a Jings crackdown on protests so far has been muted,

Bloomberg said. Baxter has the story. The US has spoken very strongly in the past about human rights, and now National Security Council spokesman John Kirby says, a watchful eye here. We're watching this closely as you might expect we would, and again we continue to stand up and support the right of peaceful protests. Um and I think we're going to watch this closely and we'll see where things go. Kirby says the Biden administration does not expect the protest

to affect the supply chain or global economy. In San Francisco, I'm at Baxter Bloomberg Daybreak, All right, and thank you. Meantime, President in Biden and how Speaker Nancy Pelosi are moving to prevent a shutdown of the U S freight railroad systems. Amy Morris has details from our Bloomberg newsroom in Washing ten, President Biden asked Congress to intervene to block a strike. VOWS is preparing to take up a bill to impose

a labor settlement despite some union's objections. Belosi says they're making the move reluctantly, but they have to avoid what she calls a catastrophic nationwide strike, which could hurt the economy by crippling supply chains. A coalition of more than four hundred business groups sent a letter to congressional leaders urging them to step in. The strike deadline is December nine in Washington. I'm anymore as Bloomberg daybreak. All right, Amy, Thanks.

Another major impact on the economy in recent months has been higher interest rates, and now FED officials are stressing the Central Bank is not done hiking. Here's New York Fed President John Williams further typing ente policy should help restore balance between demand and supply and bring inflation back to two percent over the next few years. It will take some time, but I'm fully confident that will return

to a sustaining period of prison bill. New York Fed President John Williams made those comments at a virtual event hosted by the Economic Club of New York. At the same time, St. Louis FED President Jim Bullard said, as financial markets are underestimating the chance of more aggressive policy next year, they're counting the first two fifty basis points as if that was a tightening of monetary policy. But really that's just getting up to the long run neutral

level of the policy rate. We've only recently moved into restrictive territory, and we're going to have to move farther in order to keep inflation under control. St. Louis Fed President James Bullard and other officials if signaled they planned to raise rates by fifty basis points next month. Well. Nathan Moore Science this morning the aggressive Fed titan and could lead to a recession. A gauge of global bonds measuring the worldwide yield curve has inverted for the first

time in at least two decades. The inversion of the yield curve has typically seen as a prediction for a recession as investors switch money to longer term bonds due to pessimism over the short term outlook. It's turn to crypto now, Karen, the fallout from f t X continues. Block five is the latest crypto firm to collapse. The digital asset Lander says it will use Chapter eleven to

recover everything it's owned by. Counterparties include Thing f t X, but black Fire acknowledged that recoveries are likely to be delayed by ft x is bankruptcy and Nathan Elon Musk is in the spotlight again this morning. The billionaire is publicly attacking Apple, which is one of Twitter's top advertisers, much as Apple has cut its Twitter advertising and threatened to bluff the social network from its app store. Kurt Wagner has more from our Bloomberg nine sixty newsroom in

San Francisco. The app store is is probably um the main way or one of the main ways that most of its users get the app get app updates. So you know, for example, I believe the app world still work on my phone, but in order to you know, get an updated version, I have an iPhone, I might have to you know, figure out a way to download that from the web. It's the kind of thing that's going to erode over time and causes a lot of people to either stop using Twitter or or you know,

possibly have to move to a different device. And so that's a huge issue. And one of the reasons I tweeted that I think Twitter needs Apple a lot more than Apple needs Twitter here, and that's because Apple has the distribution that it's at its fingertips. Bloombery Technology reporter Kurt Wagner says Elon Musk is firing back at Apple, asking whether it hates free speech. And futures this morning higher SNP futures up about seven points down. Futures they're

little change. Nasdaq futures at thirty eight. Straight ahead, your latest local headlines plus a check of sports. And this is Bloomberg. Thanks hearing. It's five oh seven on Wall Street, thirty seven degrees in Central Park westbound cross Bronx Expressway is closed at Jerome Avenue. Will tell you whine traffic shortly. First, Michael Bars here with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. The NYPD made a big bust stopping a

counterfeit goods operation. Police seized over ten million dollars in knockoff merchandise from vendors on Canal Street. During a news conference, officials set authorities had gotten several complaints in Lower Manhattan about the fake purses, sneakers and other items being sold on the streets in my PD. Chief of Patrol Jeffrey Madre spoke to ABC's have A Sidewalks were blocked, there was property everywhere. Merchandise everywhere initially impacts local businesses in

a negative manner. Chief Madre says seventeen people were arrested and three truckloads of counterfeit items received. Five new Haven, Connecticut police officers were charged yesterday in a June incident that left a thirty six year old man paralyzed. Prosecutors say Randy Cox was handcuffed and not wearing a seat belt when he flew head first into the back of a police transport van when the drivers suddenly stopped. New Haven Mayor Justin Elker new Haven is committed to accountability

for all individuals involved in this tragic incident. Baron Elkers says the officers were charged with reckless endangerment and cruelty. Meanwhile, cons his family is filed a one hundred million dollars civil suit against the officers and the city. A Senate bill protecting same sex marriage cleared another procedural hurdle last night. An amendment to respect for Marriage Act would ensure it does not infringe on religious rights and protections. Passage of

the legislation is expected today. Former Vice President Mike Penn said Donald Trump showed poor judgment for dining last week at his Smarlango resort with rapper Ya and well known white nationalist Nick Fluentis. Penn says his former boss should denounce their hateful rhetoric without qualification. President Trump was wrong, uh to give a white nationalist, um um, an anti semid and Holocaust denier a seat at the table, and I think you should apologize. Penn spoke to News Nation.

New Jersey Democratic Governor Phil Murphy says his administration has launched a review of its handling of the COVID nineteen pandemic. The governor, in a statement says the administration hired the regional law firm and a management consulting firm. A report is expected in late three. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven journalists analysts more than a hundred

twenty countries. Michael Bart, this is Bloomberg NA. Sorry Michael. Thanks, Come up to five ten on All Street time for the Bloomberg Sports Update, brought to you by Price stayed Out. Good morning, John stash Our morning, Nathan First beating the season between the Devils and Rangers, who were in the NHL's Final four last season. Devil's haven't even been to the playoffs since Steith has an eight team, but no doubt who the better team has been so far this season.

The Devils started Owen too. They are nineteen and two. Since then, they won five three at the Garden, coming back in early to nothing, Deaf said at Barkley's forty five points for Kevin Durandy missed only five shots the net speed Orlando one nine one o two to get the five hundred. Kyrie irving at a twenty. Ben Simmons, who's finally been starting to play like he did with Philadelphia,

heard his knee. He's day today. Kemba Walker, the New York native who's homecoming with the Knicks last season did not go well, has signed with Dallas. The MAVs hope he can fill the role Jalen Brunson had with them last season. Brunson out course with the Knicks. The Yankee offseason goals try and get better than Houston with the Astros already World Series champs, and they just signed three agents lover JOSEA. Brey, who spent nine years with the White Sox, head of the a L m v P.

When the Night Football Pittsburgh beat Indianapolis to seventeen. The US World Cup team playing well in the draw with England, but in reality their situation would likely be the same as it is now had they lost that game, beat Iran today, advanced Louse or have a third straight tie and they are leaving Kitar. The U S coach was Greg Berhalter. Make no mistake about it. This is a knockout game for both teams, so it's gonna be a

high level intensity. Um. You know, I love what our rands done um so far, especially the last game, a lot of commitment, UM, really good counterattacking and um, you know, we expect it to be a hotly contested game and we'll be ready for it. Starts STU o'clock. John actually were blue Berg Sports David all Right, John, Thanks, SMP futures now up nine points, Stown futures up twenty four.

Dance futures are highed by forty four points. Send your treasury is up to thirty seconds, the yield three point six seven percent. You're listening to Bloomberg Daybreak, Bloomberg Sports was brought to you by Audie Don't let someone else drive off and the Autie Model You've always wanted. Visit your local price State Audie 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 Quicktake, He's a Bloomberg Business lash and I'm Karen Moscow and US dot Index futures are pointing to a moderately stronger open as speculation mounts that unrest in shiny cities over COVID restrictions would force authorities to move faster in loosening the curves. We check the markets every fifteen minutes throughout the trading day. On bloombergs and Future is up about eleven points, Dow Future is

up thirty four, NASTAG futures up fifty. The decks in Germany is little change. Ten year treasury of too thirty seconds here three point six seven percent field on the two year four point four three percent. Nine x scrude oil is a two point three percent of a dollar seventy nine at seventy nine dollars three cents of arrow. Comic schooled up eight tenths percent or thirteen dollars fifty cents at seventeen sixty eighty announced the euro one point

three two against the dollar. British found one point two zero one three and the end is at one thirty eight point one zero. Bitcoin is up one point nine percent at sixteen five hundred dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, good morning, Good morning Karen. Chinese universities are sending students home as the ruling Communist party titans anti virus controls and tries to prevent more protests.

Crowds entered by its severe zero COVID restrictions have called for President Shi Jing Ping to resign. President Biden is asking Congress to intervene and block a railroad strike before next month's deadline. At the World Cup later today, the US faces Around in a match with straw political overtones. Around is angry after the US Soccer Federation displayed on social media uh doctor and image of the Iranian flag without the emblem of the Islamic Republic. The US must

beat around to advance. In the NFL, the Steelers beat the Colts seventeen, in the NBA, the Nets, Wizards and Celtics one, and the NHL the Devils beat the Rangers. Five three. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty journalists analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan. Okay, Michael. Thanks, It's five nineteen on Wall Street Live from the Bloomberg Interactive

Brokers Studios. This is Bloomberg Daybreak, and we want to get the latest on the situation in China with these days of protests continuing over strict COVID measures. Joining us live from Hong Kong. Now is Bloomberg Chief Asia Economics correspondent and the current and a good morning. As Michael mentioned in the news there, we have seen some pretty

strong crackdowns on these protests. At the same time, we're hearing something of a more conciliatory tone from Chinese health officials, what more can you tell us about what's happening there? So two developments across China today. And the one side of things, the protests have been subdued because there was, of course a very strict police response to those protests.

That wants to be expected. These protests were unprecedented. They were splicitly criticizing the Communist Party and in some cases calling for President Shooting to step down. So obviously there would be a response, and that's what that is what has happened. Some of our colleagues in Beijing made the point as well that sub zero weather conditions also probably meant that the kept protesters office three. So that type

of things has gone quiet. Secondly, the government came out today with a pledge to focus on increasing the vaccination rates, and in particular increasing the vaccination right at the elderly, aged, aging and above. That's the segment of the population that is under protected at the moment, either via actual vaccination job or boosters. Now they said they would promotedvaccination in

nursing homes. They said they would use a big data for example, the target those who have not been laccinated, but they didn't detail any specifican mandates or new rules out force people to get the vaccination regardless, I think all of the development today are being taken by analysts as a kind of another step in China process towards eventually exiting COVID zeroin that it certainly happens that they're going to live with the virus or anything like that,

have the long road ahead, but it seems as though trying to maybe taking at least from of the initial steps from that journey. So it's an initial step, And or is the Chinese government signaling any further steps it could take to try to get past COVID zero. Well,

we all know the complications in this. A few weeks ago China did come out with the twenty point Plan, which probably speaking tweets and relaxed some measures, say around the duration of quarantine and testing environments to land in China and on the ground, changed up how local authorities

should deal with outbreaks of the virus. But at the same time we already to keep preaching that they don't want the virus is spread because we all know China is as I just discussed, it's under protected in terms

of its allergy population. When it comes to vaccines, It's hospital networks isn't at the kind of level it would need to be to cope with a major outbreak obvios the disease, and obviously if COVID walter run ramp and China will be dealing with a major public health issue, which of course would have also have knock on consequences and supply change. And it's about economy, so it's in

something of a difficult position. The question for Chinese how does it navigate out of this on the one hand, trying to control the spread of the virus, on the other hand, of course, allowing the economy to get back on the street. Is that it's a very difficult position for them, and that's why I think a lot of

anilets they're making the point. They seem to be making baby steps out towards towards changing up its COVID game plan that will probably become a hybrid of somewhat mitigating against the RUS will also of course allowing mobility and consumers to get back on the road again. And as we've been mentioning, many of the demonstrators have been calling on Chinese President she Jinping to resign over this we've mentioned sort of the unprecedented nature of some of these protests.

How much of a potential risk does this put on President She's leadership. Well so, the protest varied in scale and size, according to our colleagues in Beijing, CHINAI there was also a small scale protests in Hong Kong last night as well. By the way, um, you know, listening to the experts, nobody I think is of his view just yet that this is posing a major systemic straat to the government authority, righting like that, we know the

President She just of course themented his command. He was appointed key supporters into top positions, so it's not widely felt that there is a director on the government. But nonetheless it is sensitive. It is very delicate for the authorities. They on the one hand, will want to live some of the public frustration to be vented. I seem to do what we're doing by Alane, the protests to be spread the way they did in the first instance. But on the other hand, of course, they'll want to make

sure they don't spread beyond their comfort tone. That's why they heavily centered the social media posting. That's why they responded the way they did last side with those arresting with the police response. So it's very It is tricky in sensitive In China, protests against the government are not allowed, but I happened here too many experts. Experts say just yet that it's a major threat for the government. Yeah,

trying to stop protests and the virus from spreading. Thanks for this and a great having on with us as always, Bloomberg Chief Asia Economics correspondent and the current joining us live this morning from Hong Kong. S ANDP futures right now up eleven points, Staff futures up thirty nine and Nasdaq futures up fifty five points. Seeing a little bit of strengthening in the futures contracts right now. The tenure treasury is moving higher as well, up for thirty seconds,

the yield down to three point six six. You're listening to Bloomberg Daybreak Bloomberg eleven three oh Weather mostly sunny today, HIGs in the upper forties. Tomorrow we'll see rain and the breeze a little milder, high in the upper fifties. We'll be back in the mid forties. Sunny, breezy for Thursday. Right now thirty seven in central Park, broadcasting live from

the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one oh six one, to San Francisco, Bloomberg sixty to the Country Sirius XM H one nineteen and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak at It's five thirty on Wall Street. Good morning, I'm Kared Moscow, I'm Nathan Hegar. Bloomberg Daybreak is brought to you by se I Imagine your asset

management firms. Operational infrastructure is a competitive vantage. Let s e I show you how at se I C dot com slash I M S and we're just about 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 China, where officials say they're looking to speed up COVID vaccinations for senior citizens, but they're stopping short of mandates. It comes on the heels of protests to China's strict COVID policies. Craig Singleton,

Senior China. Fellow at the Foundation for Defensive Democracy says President Hijin Ping might not have many options for easing restrictions. I suspect going forward, the big problem that's going to be that the CCP has not articulated a clear path out of zero. COVID Ing has so closely staked his legacy on the notion that China's pandemic response has been better than the West, that narrative would be really damaged

if China lifted these controls. Craig Singleton with the Foundation for the Defensive Democracies is a guest on Bloomberg Sound On Catch the Show weekdays at five pm Eastern on Bloomberg Radio. Meantime, Careen. The US is taking note of China's response to the protest. National Security con spokesman John Kirby talked about it yesterday. People should be allowed the right to assemble and to peacefully protests policies or laws

or dictates that they take issue with. National Security Council spokesman John Kirby says the White House does not expect the protests to affect supply chains. All the while, Nathan Stocks in Asia searched with the unreshed over COVID curbs easing. Hong Kong's Hang Sang Index rarely more than five percent, while stocks in China game three percent. US futures rose and European stocks also opened higher. Looking at the broader economy, Karen FED officials are stressing more rate hikes are on

the way to curb inflation. New York Fed President John william says it will take some time to get the price stability, and St. Louis President Jim Bullard says markets should expect aggressive tightening into next year. We've only recently moved into restrictive territory, and we're gonna have to move

farther in order to keep inflation under control. St. Louis Fed President Jim Bullard and other officials have signaled they planned to raise rates by fifty basis points next month, and E Gauge of global bonds is revealing aggressive FED tightening could lead to our recession. Nathan Engage, measuring the worldwide yield curve, has inverted for the first time in

at least two decades. The inversion is typically seen as a sign of pending recession, and in politics today, can President Biden and House Speaker Nancy Pelosi, are moving to prevent a shutdown of the nation's freight railroads. The White House is asking Congress to intervene. The House is preparing to take up a bill that would impose a labor settlement. And futures this morning are higher. SNP futures up twelve points now, futures at forty seven and NASTAG futures up sixty.

Straight ahead, your latest local headlines plus the check of sports, and this is Bloomberg. Thankscing thirty three on Wall Street, thirty seven degrees in Central Park. Still got that closure westbound cross Bronx to Jerome Avenue. Michael Barr is here with what else is going on in New York and around the world. Michael, thank you very much. Nathan. New York City police busted a massive counterfeit operation last night, hauling away ten million dollars worth of bogus merchandise and

arresting seventeen people, one bystandard whitnes us. The sudden takedown, how you sol is yd jumping out unmarked cars, mark cars, patty wagons. They got the clear the whole thing from here to here. And these guys used to sit up all night roll its, watches, everything you can imagine, East Laurent, all of this stuff. In planning the raid, police worked with luxury goods manufacturers who examined the merchandise in advance

to certify it was counterfeit. In my PD, Chief of Patrol Jeffrey Madre, she will look at the property and say, this is this is not authentic, This is a knock off bag, this is a fake pass neath this. Chief Madre says. Those arrested are now facing charges such as trademark counterfeiting property over a thousand dollars, which is a felony offense. A white supremacist will spend the rest of his life in prison for killing ten black shoppers and

workers in a Buffalo grocery store. Last May, nineteen year old Peyton Gendron pleaded guilty to several charges, including murder and hate motivated domestic terrorism charges which carry an automatic sentence of life without parole. Garnel Whitfield's mother was shot and killed in the supermarket. Whitfield is calling on lawmakers to act. I want them to call out white supremacy. I want them to treat it like the cancer that

it is. Garnel Woodfield who watched the court proceedings, says Gendron had no emotion, he had no regret, and had no remorse. A Senate bill protecting same sex marriage cleared another procedural hurdle last night, with the passage of the legislation expected today. Vote allows the Senate to move ahead with an amendment to the measure that ensures it does not infringe on religious rights and protections. The Respect for Marriage Act would federally recognize same sex marriages and ensure

benefits for all married couples. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Thank you, Michael. On Wall Street. Time for the Bloomberg Sports out Day, brought to you by Tri State. How

do you use Banks? Faith and the Rangers got their first up close look at the Devil's who began the season oh and two, but our nineteen and two since they began last night. Down to nothing O, Tommy Pair and Mika's advantage ad with Ranger goals in the first three minutes with the Devils with two in the first period, two more in the second empty, yet at the end

they won five three at the Garden. The Nets, after the slow start of Claude back to five hundred, they beat Orlando at Barkley's one oh nine one oh two. Kevin Durant was superb forty five points. He shot nineteen of twenty four, but the Nets loft Ben Simmons doing knee injuries. Day to day. Kemba Walker has been last season with the Knicks, signed with Dallas Baseball free agent Sonning Jose ah Breo with the World champions Eastern Astros. When of the football a couple of subpar a FC

teams Pittsburgh one at Indianapolis four to seventeen. Jets coach Roberts Sala confirmed the obvious Mike White will start Sunday at Minnesota, but Sali said his quarterback situation is week to week and the intent is still to get Zach Wilson ready to play. Tiger Wood was gonna play in the Bahamas this weekend, He's got a foot injury had to pull out. The US World Cup team tied England, who beat Around easily sixty two, but Iran beat Wales,

who the U S could not beat. It's the US and around today and the American captain is midfielder Tyler at it. It's gonna be a tough battle. You know, we're gonna have to have a lot of energy in this game and make sure that we're mentally prepared, pay attention to all the details in the game set pieces. Um, and their midfield is quite impressive, you know, very technical midfield. And you know, for me it's always difficult to play against the technical midfield when they can control the ball

and control the game. So um, you know, we're gonna have to do our homework on on on them on the games that they played previously. Who has victory today and it's onto the knockout round, loss or a tie and they're going home. John statchd with Bloomberg Sports. Nathan all Right, John, thanks for thirty seven on Wall Street time for the Tri State Business Report with Bloomberg's Joan Donager.

The computer network at a Brooklyn hospital group crashed more than a week ago, and the post says patients from Brookdale in her Faith and Kingsbrook Jewish hospitals have been redirected for treatment and medical staffers can't access patient records. The post says that crash is a potential data security risk.

The union representing student workers at Columbia Universities demanded and received an apology for what the school newspaper says was an interruption of a union meeting by uniformed NYPD officers. The chair of the union group says officers questioned him about a suspected protest. The union is accusing the university of sending the officers to disrupt the meeting, and worries about inflation of not stopped raises at a number of

New Jersey businesses. The New Jersey Business and Industry Association survey of business leaders in the state also finds businesses saw increased sales and often larger profits this past year, but n J Spotlight says they're still worried about regulations and taxes. That's the Bloomberg Tri State Business Report. I'm John Donneger. All right, John, thank you, 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 hundred affiliate radio stations around the world. I'm Steve Potus on K and X in Los Angeles. We're talking about California based in and Out Burger taking the top spot and a survey of America's favorite burger chains on Corney Donahoe on ktr H in Houston, Jatholeene prices have fallen to their lowest level since February. I'm Gina Servetti in for w f

l A in Orlando. I'm reporting that Disney's returning CEO, Bob Iger, is revisiting some of his predecessor's more controversial decisions, including requiring reservations for guests at theme parks. I'm Stephen Carol and Bloomberg d A B Radio in London. We've been reporting I'm the Prime Minister of Rishi Sunacs saying the golden era of UK China relations is over, but

that he wants to engage with be James. I'm Joan Donnager telling w w J listeners in Detroit that General motors dealerships have a growing business repairing Tesla's Those are some of the stories our twenty seven hundred 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 Board. President Joe Biden has often described his plan to cancel some federal student loan debts as a game changer, and in one sense, this policy has proved transformative, but by making a bad system worse. Biden's plan would provide ten thousand dollars in relief to individual borrowers with annual incomes of one thousand dollars a year or less, but a federal appeals court recently ruled in favor of six Republican led states that opposed loan forgiveness.

So with its plan stalled, the administration has resorted to a fallback, extending a freeze on federal student loan payments, which has been in place since the start of the pandemic. It's difficult to overstate the folly of this decision. Freezing student loan payments made some sense during the early months of the pandemic, but there's no such justification now. Biden has decided to double down on a costly mistake. This

editorial was written by the Bloomberg Editorial Board. For more Bloomberg Union, please go to Bloomberg dot com Slash Opinion or opi nd go on the Bloomberg Terminent. This 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. SMP futures are up thirteen point, STOW futures of forty three nasdack features up six four points. This is Bloomberg and the Bloomberg Sports

Report was brought to you by Audie. Don't let someone else drive off in the Audi model you've always wanted. Visit your local Trice 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 Take. This is a Bloomberg Business Flash and I'm Karen Moscow and you west

dock in next. Futures are pointing to a moderately stronger open on Wall Street as speculation mounts that unrest and Shinese cities over COVID restrictions would force authorities to move faster and loosening the curves. We check the markets every fifteen minutes throughout the trading day. On Bloomberg S and P Future is up thirteen points Down Future is up fourty Nasdaq Future is up sixty three The decks in Germany's up two tenths of uppercent ten year treasury up

eight thirty seconds, held three point six five percent. They yield on the two year four point four two percent. Nimex screwed oil is up two and a half percent of a dollar ninety one at seventy nine dollars fifteen cents, and Barrel comic scolled up eight ten percent or fourteen dollars fifteen fourteen dollars fifty cents at seventeen sixty nine eighty announced the euro one point three eight seven against the dollar. British found one point two zero two one

and they had one thirty seven point nine one. And Bitcoin is up two percent at sixteen thousand, five hundred dollars. And that's a Bloomberg business flash. Now here's Macao bar with more on what's going on around the world. Michael, Karen, thank you very much. Congress is being called to stop a looming national railroad strike, as President Biden urges lawmakers to act by and says, well, he's pro labor. The economic impact of a shutdown what hurt millions of other

working people and families. NATO chief Yan Stoltenberg accused Russian President Vladimir Putin of using winter as a weapon. Ukraine's leader born that the Kremlin is preparing new strikes to inflict more damage on the energy system. At the World Cup later today, the US faces Around in a match with strong political overtones. Around is angry after the US Soccer Federation displayed on social media a doctored image of the Iranian flag without the emblem of the Islamic Republic.

Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists analysts more than d twenty countries. I'm Michael Bart. This is Bloomberg. Nathan Okay, Michael, thanks for coming up to five forty nine on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. Re Pleased to be joined Live Now by Joe Quinlan, the head of c I O Market Strategy at Maryland Bank of

America Private Bank. Joe, thanks for being here early with us this morning as we watch sort of tentative move back into risk on the baby steps I think we're seeing coming out of China on COVID zero. I wonder how you read this market reaction to what's happening overseas well. I think yesterday was an overreaction given the news coming out with China was happening in China. Then today the same thing. I mean, the keeper investors that it's not even baby steps, Nathan, in the sense that this isn't

going to be solved overnight. China is gonna gradually, over months work with COVID nineteen zero COVID policy. So I'm gonna get too excited the good news for investors, for sure, China recognizes the problem, They're dealing with it. But this is not affleck of a switch. This is this is multi month workout period. So how do you position given that thesis that it could be a long time coming before we see a real move away from COVID zero

in China. Well, we think China's investable but really we prefer the US assets because what you're seeing with a volatility in Hong Kong and China, even in Europe it's just a Russian to dollars, so dollar did not mean at assets, and that just plays right into our thesis, whether it's equities, corporate bonds, treasury. So we have a home bias and the volatility of China is adding to

that and helping supporting that. So you don't see any risk of contagion from the possibility that things continue to move slowly in China in terms of the economy there and that potentially having an impact on the broader global economy. I think that's there's a risk for sure, Nathan, but

I think that risk has already been priced in. Look at look at oil prices, for instance, commodity prices copper, so that China slowdown is priced in, and now gradually the reflation story is going to be priced in, and that's more more upside. So I I agree with you the thesis that China is a big player slow growth. Getting your grips on the pandemic is very important, but they recognize the problem and I think they're moving away from zero COVID policy, and that's supportive of more assets

that would seem decline I eat, particularly oil. Are you looking for slower growth in terms of the FED ray hike path, slow down in aggressive policy tightening. We are, our economists are looking for recession beginning Q one next year extending into Q three. So basically all of virtually all of that's been priced in as well. But we'll see how that plays out. But for sure, monetary policies as everyone now works with the lag and you know, the hammer effect is coming very shortly in the Q

one and Q two here in the US. But I think we're we're more optimistic that we can bounce out of this. I do think if we're on the cost of a global recession, I think that the markets are are looking at the US will lead, so that that's important, like what's on the other side, the U s will lead the way forward when we look at talk about recovery in the second half of next year into twenty four.

That's an interesting commentary from Morgan Stanley uh speculating that the SMP could drop as much as fifteen percent in the first quarter on the balance sheet unwind Is the market paying enough attention to quantitative tightening, perhaps not in Nathan over laid with that, it's just the earnings estimates

still have to come down. And I just think margin pressure is gonna be really come home, come home the roost in Q one, in the Q two, So it's really going to separate good companies from the companies that can't manage their costs. So yeah, the margin pressures, balance sheet issues. I think that's a story the Q one Q two, And I think that's kind of like where we put in the bottom. And I don't you know

one can call a bottom. But when we get to that point where the corporations are kind of throwing in the towel on the earnings estimates, earnings in general will fall reset and then we look forward and that's where we see the rebound in the in the second half of next year. No less than a minute left here, Joe, what are you expecting to hear from Chairman Powell that major speech tomorrow and what kind of market reaction are

you looking for? Well, I think he'll you know, kind of reiterate what his Fed colleagues have said, you know yesterday, that they're not done. Um, they've got to continue to raise rate they're looking carefully at the labor market, retail spending and so forth. So I think he'll he'll err on the side of the more hawkish than dubbish. She doesn't want to give the markets any to think the hope of the pivots too early because inflation is still

too high. So he's got to be data dependent and he's got to keep pushing hard job owning and quantaine tightening, raising the bunds right to get inflation even remotely back close to the two percent, so they're not even close to two percent where we are today. Great to get your thoughts. Thanks again for being with this job. Joe Quinlin had of CEO Market Strategy at Meryl and Bank of America Private Bank, Karen Nathan. It is five fifty three on Wall Street. Time for the Bloomberg The Law Report.

Let's get an illegal stories We're watching this morning from Bloomberg's Jeff Bellinger. Public areas of the Supreme Court will reopen on Thursday. The sections were closed more than two and a half years ago at the start of the pandemic. Proposed class action filed in a New York federal court accuse this Procter and gamble of deceptively portraying the amount of laundry that can be cleaned with a single container

of pines. Stunt per gallon gas tax holiday will continue through the end of the year in Connecticut, where state lawmakers met in special session. Bloombird Law everything you need on one legal research platform, guidance analysis and Bloomberg Market Intelligence. Find out more at Bloomberg Lawn dot com. Right, Jeff, Thanks now. Another legal story we're watching during oral arguments in two cases is Supreme Court signal that will make

it harder to prosecute political corruption cases. Justices across the ideological spectrum questioned the Department of Justice targeting those who might be considered private lobbyists for so called honest services fraud. For more, Bloomberg's June Grass speaks to Bloomberg News Supreme Court reporter Greg Store, So, the justices are considering overturning the conviction for so called honest services fraud of a one time top aide to former New York Governor Andrew Cuomo.

Tell us about the arguments. This is a guy named Joseph coco Go. He was was a top aide to Andrew Cuomo and he was accused of accepting bribes on behalf of a couple of companies with contractors. And the key question in the case is there's this crucial eight month period in which he wasn't a government employee. He

had gone to work for the Cuomo campaign. And the question is whether this federal law that bars the deprivation of honest services from the public, whether that can apply to somebody who, during a crucial period was not actually

a government employee. And based on the arguments of the Supreme Wood seems to think the answer to that is, Yeah, probably not that we are worried that if we allow this law to be used against somebody over conduct that happened when they weren't a government employee, that that might mean we are criminalizing lobbying, criminalizing somebody who is on the outside of the government who is just trying to pull the strings that they have that the advanced policies

and are getting paid for doing that work. And they've been cutting back on these public corruption prosecutions for quite a while. Yeah, there's been a couple of recent cases. One the most recent one involved to allies as former New Jersey Governor Chris Christie involving the remember that George Washington Bridge Lane closing scandal. The court tossed out a couple of convictions there. Then back in sixteen, they set

aside the conviction of former Virginia Governor Bob McDonald. In that case, the court said the things he did didn't rise to the level of official action. The court in the McDonald case said that the governor could only be prosecuted for honor services bought if you did something that rose to the level of an official action. That it wasn't enough if you just arranged a meeting for somebody, that that couldn't be the kind of action that was

let you be criminally prosecuted. And that's Bloomberg News Supreme Court reporter Greg Store speaking with the Bloomberg Student Grounse. So Okay's more of that interview, plus analysis of the latest Eagle News by subscribing to the Bloomberg Law Podcast. Are 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 this morning are on the Rise.

SNP futures up about nine points. Now futures are up eight so they're little change. Nowsdack futures of fifty one. The decks in Germany little changed it as well. The tenure treasury up seven thirty seconds, Hell three point six five percent and the yield on the two year four point four two percent. And I'm x screwed oil is a two point seven percent at seventy nine dollars thirty one cents of barrel. Still ahead on Bloomberg day break and check on the business headlines and all the news

you need to start your day. And this is Bloomberg