Bloomberg, Amy Morris, FED discussed on Bloomberg Daybreak


Rangers one in Montreal losses for the Devils and islanders. That's all straight ahead on Bloomberg daybreak. On Bloomberg 11 three O New York, Bloomberg 99 one Washington D.C., Bloomberg one O 6 one Boston, Bloomberg 9 60 San Francisco, Syria's exam one 19 and around the world on Bloomberg radio dot com and via the Bloomberg business app. Good morning, I'm Nathan Hager. And I'm Karen Moscow, and U.S. stock index futures are little change this morning. We check the markets all day long here on Bloomberg with S&P and Dow futures, both little change, NASDAQ futures know, dragging down a quarter percent or 28 points, ten year treasury down 5 30 seconds you'll 3.73%, and the yield on the two year, 4.47%, Nathan. Karen will have more on markets and today's jobs report in just a minute, but first we are heading into the fourth day of the new Congress and the house remains without one key job filled. That would be speaker. Republican leader Kevin McCarthy is still shy of the votes needed to take the gavel and Amy Morris has the latest from our Bloomberg 99 one newsroom in Washington. The house adjourned last night after a historic 11th vote about 20 Republicans still refusing the cast their ballots for McCarthy, saying they want change in Washington. McCarthy has already agreed to a rules change allowing just one member to call for a vote to oust a sitting speaker, and he agreed to allow for more members of the freedom caucus to serve on the House rules committee. But so far Matt rose Dale of Montana says it's not enough. We need to have change. We need to fix this broken system. Republican congressman elect Mike Lawler of New York says the party can't let a small group of members dictate terms for everyone else. The freedom caucus thought that Kevin's support would start to fold. And that has not happened. House lawmakers reconvene at noon today. In Washington, I'm Amy Morris, Bloomberg daybreak. All right, Amy, thank you and we'll be following the next round of votes throughout the day here on Bloomberg radio, meantime another major event in Washington takes place at 8 30 a.m. Wall Street time. That's when the December jobs report is released, economists forecast a gain of 202,000 jobs and an unemployment rate holding steady at 3.7%. Here with Morris Bloomberg economic correspondent Michael McKee. Economists think hiring will slow dramatically and unemployment will jump higher. Just not yet. Even though the fed has been raising rates aggressively, it hasn't slowed the economy enough to affect the labor market. Fed officials say that shows no recession is imminent. They also worry it means continued inflation pressure. There are not enough workers for open jobs, which means employers have to raise wages. That's particularly true for service industries. And that makes December service industry jobs and earnings key numbers for fed officials as they decide how high they have to push interest rates. Michael McKee, Bloomberg daybreak, and Mike the fed will be paying close attention to today's jobs report, St. Louis president James bullard says interest rates are getting close to a level that could be high enough to bring down inflation. The point of this is that we've gone all the way back now to the pre inflation shock level of inflation expectations, macro theories tell us that that bodes very well for the future. And actual inflation. So this is a good signal for disinflation in 2023. St. Louis fed president Jim bullard is one of the more hawkish members of the fed, but he is not a voting member on the FOMC this year. Still, Nathan higher interest rates are not yet having a major impact on the economy, and that's the view from Carlisle managing director and head of global research Jason Thomas. The economy seems to be heading for an iceberg in the form of higher interest rates. Those higher interest rates have really not taken effect as yet. For most borrowers, it's really the December 19th reference date. So as of Q one 2023, floating rate corporate borrowers are going to face debt service costs that are about 50 to 60% higher than the experience just 6 months ago. Carlyle's Jason Thomas expects the fed to raise rates by 25 basis points at each of its next two meetings of you that's in line with expectations on the street. Well, the prospect of higher rates Karen helped send stocks lower yesterday all three major indexes lost at least 1% after hiring numbers surpassed estimates in the ADP and jobless claims reports. Sam stoval is chief investment strategist at CFR. It seems as if we are heading into 2023 the way a lot of strategists had been predicting where it's going to be a tale of two halves where the first half is likely to be challenging with high volatility, retest of the October low, maybe even a new low set, but then investors look across the valley and we start to see a recovery in the second half. We see Sam stovall says the fed could pivot and start cutting rates around December. Well, turning to the FTX saga now, Nathan, U.S. authorities are ramping up pressure on the inner circle of FDX cofounder Sam bankman fried and we get the latest live with Bloomberg Steve rappaport. Steve good morning. Good morning, Karen and Nathan. The plot thickens as prosecutors turned their attention to another associate of bankman freed. Their investigating former FTX engineering director nishad Singh and what role, if any he played in the crypto company's demise, Singh has not been accused of wrongdoing, and it's unclear if he's cooperating. Prosecutors already have two people from SPF's orbit in their corner, Caroline Ellison and Gary Wang pled guilty to fraud and are working with the government. The question now will sing also sing, live in New York, I'm Steve rappaport, Bloomberg daybreak. Okay, Steve, thank you. Turning to earnings now. We got a downbeat assessment from Samsung electronics overnight profit fell by the most in more than a decade in a sign that the economic slowdown may be hurting electronics demand more than expected. Samsung's operating profit plunged 69% thanks to weak demand for memory chips, smartphones and displays. And that holiday travel meltdown is prompting Southwest Airlines to revive its financial outlook before reporting earnings

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