>> president biden says voters delivered a strong rebuke to republicans who falsely claimed the 22 election was fraudulent. pres. biden: there is a strong protection of election denies at every level from those seeking to lead our states and those seeking to serve in congress and those seeking to oversee the elections. there was a strong rejection of political violence and voter intimidation and there was an emphatic statement that america, people of the people prevailed. >> he doesn't think democrats

will hold onto the majority. nancy pelosi has signaled that democrats will seek to extend the federal debt ceiling during the lame-duck section -- session of congress. that avoids a dental fight with republicans. vote counting is going on and it has not been decided which party will control the house. major crypto currencies rally today after -- ceo -- says the goal is to reduce further negative effects on the fantasy of rival reptile exchange ftx. the ftx implosion wiped out $200 billion of crypto value. in the bahamas, authority of -- are investigating if there was any criminal conduct in the collapse of crypto ftx. they interviewed the cofounder and there are growing signs that ftx customers have little chance of recovering their losses.

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am john hyland. this is bloomberg. ♪ >> welcome to bloomberg markets. >> it is a turnaround story and we opened the market in the red and now the stock market near session highs up 3/10 of 1% in the green. the bull is in control even after the mozzarella we saw last week but it is not just the stock market. we are seeing a selloff in the bond market. the two-year guild hovering at 439 -- two-year guild hovering at 4.39. the question is do you start to see a continue been in the

treasury market ordeals continuing to be higher. yields on to your higher by six basis point and on the 10-year higher than five basis points and moving the dollar with it. brent crude lower. opec having a not so great outlook. 93 handle on that benchmark. >> the market also watching headlines between that china u.s. story and if there are some easy of tensions and we have seen some of the trade in you are -- new york. biogen has been on the move after its arrival had its alzheimer drug trial troubles. on the other site, we have hasbro with the debord -- a double downgrade from bank of america and analysts are arguing that hasbro overplayed its hand.

we are seeing a decline from oatly. it highlights the continuing macro headlands that are impacting companies and offsetting some of that perhaps muted reaction to stocks in other parts of the markets. >> you do have smaller stories that are making up the parts of the stock market move but you have the mark -- the bond market is doing and microscopic moves coming off key headlines. yet he had that perhaps the bond market is pricing in some of what she is saying. let's dive in be exclusive -- the exclusive interview. >> it will probably be appropriate soon to move to a slower pace of increases but what is important to emphasize, we have done a lot but we have

additional work to do both on raising rates and sustaining restraint to bring inflation down. john: let's bring in uber international economic policy correspondent mike mckee. the fact that vice chair brainard was one of the fed official to talk about the need earlier on to move faster, is there more significance in the market to these latest comments? >> perhaps her title gives her more significance but what we are seeing is a coordinated effort -- a simultaneous effort. everyone has the same message and that is the fed is not going to be cutting back on where it ends up because of that cpi report. they still think they have to raise rates and close to 5%. they can do it at a slower pace and that is what brainard went

on to say, that the fed can raise rates at a slower pace and once again in january, even at a 25 basis point move. that will be the important thing. are they saying more evidence that inflation is slowing down? are they seeing more evidence that the economy is slowing down and in which case, they can start talking about the pivot to ending their rate increases but right now, her message is the same as chris waller's in australia. kriti: put this in perspective. she used the word data dependent. over the weekend, goldman sachs said they are forecasting this massive deceleration in inflation in 2023 but where does that leave sticky wages and prices? did the vice chair comment on that? >> we don't know.

the feeling that she has and other people at the fed has is that there may not have been a dynamic change in terms of sticky wages but waits growth -- wage growth is slowing down in price growth is going down. is a slow enough to bring you back to the 2% target and that will take a lot of data to show over a period of time. mary daly put it best. data is a plural world. we need to see a number of reports. we got bad news from the new york fed. they did a survey of consumer agitations of inflation and expectations went up, that the 3.5 -- three to five year range. went up. the fed's work is not done. if people think inflation will water -- rice, they have more work to.

-- rice, they have more work to do. kriti: president bynum and chinese leader xi jinping met to talk about the importance of u.s. china relations. rocking the first in-person conversation between the leaders since the onset of the pandemic. amarena joins us -- annmarie hordern joins us. how much of a game changer is this? >> it was a lobar. -- low bar. the u.s. said they would be no deliverables and they want to set the rules of engagement and what we have learned is that there will be more communications. both xi jinping and president biden test their team to discuss issues like debt relief and health care and things when it

comes to food security around the world and on top of that and probably the most important signal of these potential warming of relationships that really deteriorated almost to an all-time low, president biden will be sending his top diplomat . antony blinken will be heading to china to follow-up up on discussions. president biden said that it was in a kumbaya but they were frank with each other and two big takeaways was that he does not see a need for a new cold war and there is no imminent intent of an attack from taiwan on china. john: i interviewed the ceo of imax and he said that the fact that it was a massless photo opportunities sent a message to them at a time when we talked about the u.s. economy and the road ahead but are there

economic incentives were both sides here to have an easy of tensions -- easing up tensions --of tensions? >> it is for china if you look at their economy because if you look at an new article, -- xi jinping is moving in a direction to try to open up the economy, saying it has better the economy and it is notable you took note of this moment because xi jinping has barely left china since covid and barely appealed -- appeared on signed -- alongside leaders lead alone not wearing a mask. when it comes to china's economy, the ascent that is for china to have better relations and that is something the chinese are very concerned and annoyed with the united states at the moment are the curbs on

semi -- semi conductor technology. this technology is something china needs to advance their technology and military space. you have to think that the u.s. does want to make sure that there is global growth around the world and countries are moving towards a recession and china is with the united states, the two biggest economies and then growing keeps the rest of the world growing. john: helpful context as always. annmarie hordern joining us from valley --bali. we want to put it together for the broader economy store. -- story. joining us -- we have a whole soup to digest you have a message from fed officials that there might be some slowing of higher rates but we are not done of rates going up and as, reading -- as an recorder and was talking about, there are

global recession concerns. what is your global take on where the economy is heading? >> on the growth story, it is a subpar below potential extended period of weak growth. the most interesting question for markets and investors is what is going on with inflation and i think the data we got last week and we have, in terms of leading indicators of inflation, a lot of supporting evidence that this disinflationary event is building and we are expecting to see a lot of progress in terms of inflation coming down over the next year and it is going to take time. markets are forward-looking and i think that was part of the reason why you saw that very outsize reaction -- outsized reaction. kriti: i am curious on whether that means that inflation is

here to say and it feels like the fed has departed from the capillary of transient but if you are going to see a silk -- a deceleration that will pick up from 2023, you see a deja vu element of the 1980's that increases the risk of -- recession? >> i think the recession question is really secondary in my mind. i think weak growth is the main story. whether you're going to be too tense higher or lower on growth is less relevant as to what is the direction of inflation and what is that allow the policy trajectory to become. i think the policymakers are correct in saying do not extrapolate from inflation peeking to necessarily be end of rate hikes but the same place that the rate hike -- rate

hiking process go through steps, you change the forward guidance and stock purchases of assets and start raising interest rates, the deceleration is the end of the hiking process also go through singular steps in the first step there is to slow the pace of hikes and i think we are at the moment where you are hearing from a lot of officials that -- supportive with the -- the data supporting this argument that times are finally here where we can slow the pace of increase as a first step toward something down the line. john: what that next fed meeting, and terms of hikes, with 50 basis points be your expectation? >> yes. it still is. it was great to see one good deflation surprise after a couple bad once. --ones.

jay powell has uses language in respect to rate hikes but it is on inflation that we have a ways to go to bring it lower and i don't think we will be there for at least another five months where you will see true powerful disinflation in the printed numbers for cpi. kriti: the fed geopolitics and inflation, we have covered it all. my thanks to simona mocuta. more on job cuts. amazon joining companies laying off workers as economic uncertainty boils over. we will have to details when we come back. this is bloomberg. ♪

kriti: this is bloomberg markets. the retail giant planning to cut some 10,000 corporate jobs on a move that would be in line with other tech companies that are aiming to adjust to rocky economic conditions. jeff bezos focused on his view on white companies to cut costs -- why companies should cut

costs. >> you are seeing layoffs in many sectors and people are slowing down. the probability say if we are not in a recession right now, we will be in one so my advice to people is take some risk off the table. kriti: ed ludlow has the details and amazon does a lot of things. amazon web service and where of these layoffs coming from --are these layoffs coming from? >> the layoffs could follow the devices this is closely. this is where they are focus on the echo smart speakers and the alexa for system and we understand that the retail business and hr departments are also vulnerable but as the chart

shows, the proposed layoff of 10,000 employees is less than a percent of total staff. when you put is -- it side-by-side with other layoffs, it is not the severity we have seen. john: i did reporting with -- on bloomberg's plans, highlighted that speaking to an employee, they feel like it is the fastest because cutting -- -- and -- cost-cutting cost-cutting in a long time. can we tie anything back to the new ceo? >> these are the deepest cuts that amazon has experience in this industry --history. the context is they want at the size at this time and in the first two years of the pandemic

period, and amazon hired almost a million people. the difference is the input cost headwinds are continuing to climb and andrew jesse was known for cost discipline. it didn't just impact the retail e-commerce business but started to impact the bottom line of aws and that started to erode margins. you are seeing a response that an unwinding of mega-growth -- that amazon went through. kriti: we have been having you talking about strife and meta. >> there is a week it -- a weakness in e-commerce and less interest in ad supported businesses.

you listen to the venture capitalist and all of them will tell you that with a recession on the horizon, now is the time to make decisions around cost discipline to freeze hiring. one area we are interested in is cryptocurrency and the kind of meltdown relating from ftx. it is a big employee and many of those names have gone through massive growth. think about coinbase that had headcount reduction in place. john: thanks very much. bloomberg's ed ludlow with the latest on amazon's latest potential moves on employees. we will take up -- a quick break and the latest bloomberg survey is out and what does it say about the outlook for the economy? we will have details next. stay with us. this is bloomberg. ♪

john: this is bloomberg markets. 22 point 4% is the percentage of canadian to think that housing prices could increase in the next six months. a survey suggested a turning point and home prices have dropped. some see a glimmer of hope it central banks privet and mortgage rates plateau -- pivots and mortgage rates plateau. central banks are not done but something to watch. kriti: something to watch as the housing market globally and it is something that brainard brought up.

housing prices are going down but not fast enough and that could influence whatever decision the fed takes in becoming gear. the stock markets your session highs up 4/10 of 1% on the s&p 500. stick with us. for jon erlichman, i am pretty good. -- kriti gupta. this is bloomberg.

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>> here is the first word. a suspect has been erected after three university virginia -- a virginia football players were shot and killed. two other students were wounded. the shooting took place on a bus that return soon from a field trip and the bus -- suspect was described as a former university of virginia football player. president biden and xi jinping have charted a path to better ties. they agreed to a series of goodwill gestures.