i am romaine bostick alongside greg pennell. one of the most fascinating figures, elizabeth holmes, the founder of their nose. she was charged with defrauding investors, and after several weeks of a trial, closing arguments are expected to conclude today. she faces up to 20 years in. joining us is bloomberg's ed ludlow outside the courthouse in san jose. how close are we to actually learning the outcome of this case? ed: we are close. the defense is in the final stretch of their closing remarks. the prosecution will have a chance for a rebuttal, and then the judge will need to instruct the jury. we may have to wait until next week. we put up a chart of the private stock price, same it's $.92 in 2009, $17 per share in 2014, and the investors could not have been misled. all they wanted to know was about the commercial relationships. the defense is poking holes in this idea that theranos never had a relationship with the military. they did exist, and the language elizabeth holmes used, the prosecution didn't present. >> is it credi

romaine bostick and paul sweeney in new york.his 47 92 watch on the s&p 500. that would give us another record high for the s&p, but we are flat at 4785. romaine: a lot of nothing today. that has been the story despite the record high on monday. when you look at volumes across the board you wonder if anybody is trading this market. i am sure things will pick up next week. as far as what we saw yesterday and what we will see over the next couple of days, there may be stasis. we are still camped out around the record high. i do not know if matt told you this. the dow jones industrial average trading at a record high. paul: jon ferro does not pay attention to it. let's check in with abigail doolittle and get a complete market check. abigail: i think that is a pretty recap you just provided in terms of the s&p 500 fluctuating around all-time highs, perhaps set 70th record close if it can eke out the green close. the dow possibly the first record close since november 8, up six days in a row. that is longest daily winning streak for th

romaine bostick here, keeping in a fed.022 is going to be the fed and how they fight inflation. joining us to talk about the calculus about what the fed does next year and how they handle themselves in the face of rising inflation. it will all come down to the folks that will be voting here. three new members will be voting in three seats are yet to be filled by the biden administration. >> thanks for having me on the show. this is a favorite fast time for fed watchers. there's a couple of rules we want to remember. regardless of the changes, an important vote will stay the same and that is fed chair jerome powell. he will be leaving the fed and has already led the fed and quite a hawk is pivot -- hawkish pivot as we saw at the meeting in december. and we have three open seats at the board of governors that president biden is expected to name pretty soon. they are likely to be more dovish than the people they will be replacing. that aside, the incoming voters will have votes on some key decisions, the timing and pace of rat

romaine bostick, tim stenovec here.t, the covid crisis in the united states. the cdc basically shortening the recommended time for isolation. if you have covid symptoms, a symptomatically that, shorten your isolation to five days from 10. those are the headlines crossing the wire. emma, what more do we know about this shift in the timeline the cdc is recommending with regards to isolation? >> this is really hot off the presses news. you heard it here, possibly first. we are hearing right now from the cdc is that shorter isolation periods, so if you have covid-19, as far as the cdc has said, it does not appear to have any relation to vaccination status. anyone who has covid-19 right now has to isolate for five days , followed by another five days of wearing masks when you are around other people. this is different from the earlier guidance, that you had to isolate for 10 days if you had covid-19. the other piece of this news from the cdc today is related specifically to when you have been exposed to covid-19 and you are

tim stenovec, romaine bostick and kriti gupta.n asia. a year into it, we shut down. it was the way the laws work. the laws may exist on paper in some emerging markets. they are not followed in practice. we want to fix these businesses. we are trying to do more than just be paper investors. your ability to make those changes operationally is stymied. as a result, when we look at asia, large parts of emerging markets, we say, for the most part, not really for us. >> do you think china will become a viable market for credit investors like you? >> there are some investors like that in china already. some of our peers have operations out of hong kong. they have significant investments in china. we will agree to disagree. we think, over the next 10 years, it is not changing. eric, you can look at the headlines coming out of china every day. in the u.s., it does not feel like -- it does not feel so welcoming, right, if you are a u.s. investor and they are trying to restructure companies. >> if operating expertise is what distinguishes sv

we can do that with romaine bostick. romaine: good morning.in the premarket, keep an eye on uber. there was news out of the european union formalizing new rules for gig workers, effectively reflect -- effectively reclassifying them as employees. southwest airlines, they had their investor day yesterday. a lot of analysts scratching their head, concerned about some of the commentary about the inability to return to those 2019 fund mental levels per passenger seat mile. jeffrey's downgrading to hold. a lot of concerns about some of the inflationary pressures and what that is going to do to a business model that is very tied to a lower-cost environment. lucid group down about 6%. the company which just went public about five months ago is now going to sell convertible debt on top of that. a little bit of dilution on the shares in the premarket. we did get some earnings, including this morning, cvs health out with earnings. more important leak, they are reinstating the dividend and a buyback, the first buyback and dividend announcements we have go

taylor: that is a voice we are all familiar with, our very own romaine bostick. we want to pivot to the reporter behind that story, break down for us what you notice in this, the winners come the losers, the changes that may be the retail industry really needed. >> what we saw is that retailers with enough scale, enough money, really went after this vision of intertwining stores and e-commerce. a jewelry store taking that big purchase and putting it online. things like retailers using in-store employees to help e-commerce shoppers. it has jumpstarted the whole shift where stores and e-commerce sinners are intertwining. caroline: which companies did really well during this transition and which did not? matt: stores like target, walmart, costco, general merchandise companies, department stores are still struggling. a company like macy's is spending a lot of money trying to transform. but big companies that have a lot of money to spend really have the advantage. katie: how much to see how much control do ceos really have over margins? matt: what we are seeing is tha

romaine bostick, my coanchor on "the close" joining us.re stateside, it was all about the shock out of the fed yesterday. what was more shocking other than the lack of movement in yields was the bid that come into technology stocks. that looks like it is going to continue. apple shares leading the pack in terms of significance, up about 0.7%. now all the talk will be do we drop the confetti on a $3 trillion market cap. nvidia up 2% in the premarket. a lot of the chip stocks that started to get sold last month are really getting a bid. keep in mind when you talk about performance in the markets this year, there's still 16 days left in the year, as well as 11 trading days. chip stocks are your leader here , even within the s&p 500, among the 24 subgroups. tesla back about 1000. flip up the board. there are a few stories that have nothing to do with the fed and the macro picture here. at&t getting an upgrade over at morgan stanley to overweight. those shares higher in the premarket. fiscal fourth-quarter earnings were phenomenal. revenue grow

guy: that was -- kailey: that was romaine bostick with that great report.the day really does relate to retail and the earnings that we got after the bell yesterday. nike, the picture is so interesting. the u.s., great, china, not so much? >> yes, and with those cases, the differences between the lockdowns in europe or the covid policies in either place as opposed to these looser restrictions in the u.s., that's going to have a different impact on retail, specifically the consumers far more exposed to that kind of consumer driven economy and the united states is at the key of that. through the lens of the proxy of the broader spending, we do what tom keene would do and put it on a logarithmic scale. what you need to know for the radio audience here is that the line continues to go up in a straight shot and the question here is is it a question of simply spending ability from consumers or is it actually a margin supply chain earnings story? we did some math here and said the stock is actually far more receptive and sensitive to the revenue story rather than t

romaine: from bloomberg world headquarters in new york, i'm romaine bostick. we saw a little bit of a comeback in u.s. equities. investors taking some comfort -- so far, the omicron variant is not going to be as bad as feared. we will dig into that cautious optimism because even as markets turn more upbeat, experts warn it is too soon to draw conclusions. vaccine mandates being declared in some hospitals are taking measures to take the stress off the health care system. we will hear first hand from caroline hyde and the u.k. about international travel. we will talk about what's going on from a scientific perspective. but traders right now are waiting to see what comes next. sonali: really trying to avoid some of the intraday movement. but from an absolute trader point of view, it looks like the classic reopening trade. with the stocks, looking at the transportation index, the key outperformer. united, up, american, gel -- delta, jetblue, all up. broader travel, even cruises are up 8%. expedia, if we are thinking about booking trips, up 7% as well. let's get so

♪ romaine: from bloomberg world headquarters in new york, i'm romaine bostick.aylor: i'm taylor riggs. katie: and i'm katie greifeld. caroline hyde is off today. taylor: for the dow and the s&p, the best week going back since february. all of this coming on a big cpi date, 6.6%. higher inflation means your real wages, romaine, you just lost 2%. romaine: some people thinking as to what the fed response is going to be here. taylor, you talk about going to the moon with regards to the meme stocks. we are going to the moon and beyond. over the next 30 minutes, we will talk about space. blue origin scheduled for another launch tomorrow. we will go to infinity and beyond by digging into the money of this booming space industry. companies are raising money by going public and taking celebrities. future plans include visiting places like mars, which could be big, katie. we will start with tomorrow's launch. taylor: the billionaire space race is back on. this launch was supposed to be earlier this week, but now we are going to see the launch of that ns 19 flight tomorrow

>> from bloomberg world headquarters in new york, i am romaine bostick. caroline hyde is off today. >> she missed a lot. a lot of rallies in stock. sending the s&p 500 back near the levels we saw just prior to thanksgiving. it has been a little bit of a roller coaster as people digest fears about omicron. they digest fears about economic growth and then they look at some of those valuations. as the market try -- try to assess what is going on with the state of the economic recovery, they have to keep their eye on a big component of that. that is labor. labor costs rise. some of that has to do with more power than the workers have these days. we will focus that on the next half hour. the unionization efforts are probably the strongest we have seen in several years if not decades. amazon and starbucks and deere are dealing with companies demanding better pay and working conditions. the worries that seem to be a bit shallow -- it continues. we are getting headlines today out of another company here dealing with workers that are saying we want a little bit mo

romaine: i'm romaine bostick. taylor: i'm taylor riggs. romaine: the omicron variant. the talk of inflation. the talk from jay powell. markets looking for the next data point to chew on, 8:34 out of washington -- that u.s. jobs report. over the next three minutes, we will talk about what to look forward to as we talk about how maybe the new variant changes some of those numbers, going forward. your going to dig into how travel restrictions affect more workers. let's start with what economists are expecting. taylor: you told me there is this cool thing called the bloomberg terminal that you can read stories on. guess what? we also combined all of the major economists on the street. i was reading the latest from morgan stanley, looking for payrolls to jump by 560. the average on-screen, about 550. unemployment rate of about 4.6%. she is looking at 4.4%. participation rate is interesting. 61.7% as we are thinking about a labor force that is trying to reenter the market. we still have near record jobs openings that we have been getting. still incredible when we are looking

haidi: romaine bostick on this urge there.ers saying in-store visits, traffic to some of these stores are down .8% compared to the same time in 2018. it seems some people still prefer to do their shopping in stores and for me, as much as i embrace online ordering, during the christmas season, it's a time of year where you want to be in a department stores and look at christmas windows and feel the festive vibe and decorations. you can't really replicate that clicking check out on your cart. vonnie: not unless you are having a drink while you do it. this is one, i was stunned to see that. one of the reasons is stores have gotten so much better at letting you order in advance and pop in to pick up your grocery or home depot goods and you can choose where they should go. target will put your bags into your car in places that you've chosen. definitely more people are ordering online. haidi: we have a list of what you need for your shopping. hear what haidi is going to be ordering online. bloomberg subscribers go to your terminal.

romaine bostick takes a look.isruption in every sector of the business but a severe blow to retailers now proving to have the most transformational industry effect. >> retailers like 9/11, it is a hurricane. romaine: physical stores closed doors and customers locked home. it turned into a year-long struggle. the struggle was insurmountable for some retail change in many of the mom and pop stores disappeared overnight. it spurred overdue change that has been increasingly seen as a net positive for global retail, which has seen at harlingen -- startling turn. >> you have the dollars to spend, retailers giving innovative products. romaine: the pandemic gave the incentives needed to commit to e-commerce. >> how they want to shop, whether that is a box on their doorstep or a drive took to a parking lot or a classic in-store trip. romaine: in china, live video streams. in mexico and russia, more secure payment systems. in brazil, instant messaging platforms offered promotions and finalizing transactions. in the u.s. cha

romaine bostick joining us now. you can catch him a little later on bloomberg television. let me start with you first. the market seems to be viewing the latest data related to omicron and the efficacy of the vaccine very positively. there seems to be this belief that three shots is going to be enough to provide protection. the point i keep making is most people do not have three shots yet. with the market being overly -- is the market being overly optimistic in terms of countering the omicron story? tim: it is a fair question. you have to think of it on two planes. the first is markets are discounting things into the future. maybe they are pricing in greater uptake. on the vaccine side, it is encouraging that we have some idea that a third shot at least of the pfizer vaccine will protect from omicron. two weeks ago, we were in a place where we were looking at the spike in protein mutations and thinking this might evade vaccines entirely. we have gone from worry about complete escape to thinking at least one of the major vaccines can help us get a handle on that. alix: you

tim stenovec with romaine bostick and kriti gupta. biden and russian president vladimir putin. the kremlin did say he was satisfied with the outcome of the discussion. u.s. allies have been raising the alarm over a potential russian invasion of ukraine. marty schenker joins us. we learned biden is set to speak with the ukraine president sunday. based on what we know about the call between biden and putin, what do we need to look out for in the wake of the sunday call? >> what joe biden is doing is following through on what he said he would do witches consult all of the parties involved on the western side european allies and president zelensky to give first-hand feedback on what he told mr. putin and what mr. putin told him about the potential for aggression in that area. kriti: in 2014, if i had taken a dollar in exchange for rubles, i would have gotten 36 rubles. now, i would get 75 rubles. the currency has not recovered since economic sanctions were first placed in 2014. how much more damage can they do if the biden administration

tom: romaine bostick, thank you so much. he will be on "the close" this afternoon.foley has a more measured view of the guesstimates of a foreign exchange, being that rabobank, with their huge global commercial interests. this off of reuters, of everyone predicting a weak dollar. they got it wrong last year, the week four. there's been this permit weak dollar call. does it sustain this year with another consensus weak dollar view? jane: i think the market has really come around to the fact that the dollar is performing quite well. there's one metric here that i think the dollar does have to pay attention to, and that is the relationship between the dollar and the inverse relationship with emerging markets. you have this scenario now where the dollar is pretty strong. that displaces additional pressure on emerging market economies, and until you are more confident that em can rally, very difficult to imagine the dollar is going to weaken. for now, i think the dollar is going to stay strong, and really we've got to wait some time before we get a little bit more hawkis

romaine bostick -- raphael bostic making these comments, saying we are talking about accelerating maybeslow and steady rate hikes. employment is evolving in a way that is quite positive. remember the dual mandate. dr. bostic talking about the fact inflation is above the benchmark, but he is making the point they continue to focus on gold. maybe the employment box has been picked. bostic may be implying we are not there yet. alix: morgan stanley says even if we see a faster taper that does not meet we will see rate hikes immediately, still sticking to rate hikes in 2023 comment a longer period between the two. guy: the clump is probably around the beginning of the summer next year. that seems to be where most houses are now migrating. pushing out to 2023 looks like an outlier. some suggest march could be a possibility. that looks a little early judging by some of the conversations i've been listening to. alix: it in some way echoes what raphael bostic is saying. we want to finish the taper before doing anything on rates and it is in the fed's interest to wrap up the taper. still slow and

yesterday, romaine bostick asked me what was the best performing stock on the s&p 500 this year, andd that quiz miserably . this is where we have devon energy, your biggest percentage gainer for this year, a whopping 176% your to date. it is not alone. marathon oil is in second place, 145% increase. this has everything to do with that recovery rally, this kind of rebound in the commodity space and oil prices. we are talking about oil potentially heading $150. the best kind of benefactors from that are going to be your u.s. shale players, especially those that are very exposed to what is going on, particularly in drilling in the south. it has nothing to do necessarily with macro. we are talking about the omicron variant. more of the woes coming from that casino battle, sports gambling state-by-state. you have seen a lot of volatility in that stock, but that has not and what it is the index contributors. it is still big tech leading those gains. for that, i really want to look at apple. those have been gaining quite a bit and pushing the index to those record highs. we are seeing apple

. ♪ romain: i am romaine bostick in for jonathan ferro.n to the open starts now. >> everything you need to get started for this -- get ready for the start of u.s. trading. this is bloomberg the open with jonathan ferro. romaine: we begin today with a big focus oprah 2020 one, gearing up for 2022. >> the timing question is a big open question. >> the fed is going to be more aggressive. >> does the market pullback late 2022 as the tightening happens? >> inflation is super over heaps and will force the fed's hand. >> early next year with inflation at peak levels -- >> the problem will be the story of 2021 -- >> because we have inflation -- >> will it come down fast enough to prevent the fed from going for a rate hike -- >> critical for market outcomes next year -- >> we have a lot of facts t

i'm sure romaine bostick has some great individual movers for us. romaine: good morning.acle and cerner. this is the big corporate story of the day. a report saying cerner has been in talks with oracle to be acquired. this would be about a $30 billion deal that manages to put off. not a huge premium, but seeing cerner shares higher i about 18% in the premarket. oracle shares down about 4.5% on the day. we did get earnings last night out of fedex. they were good overall. the growth story still certainly in question, but you are seeing the story of pricing power here, able to pass on a lot of those extra costs onto consumers are you basically come of the businesses that use these packages, that was the main story. there's also a stock in play. that is part of the reason why you are seeing shares higher by 5.8% in the premarket. the company still dealing with huge labor costs, as well as an on-time delivery numbers that are well below what we are seeing with ups and some of the other competitors. executive changes over at general motors. the head of the autonomous driving un

profit bostick at the atlanta fed said -- it is driven by the pandemic. that is the key. do not know that that is going to catch on either. even if they did transitory, it does not mean -- even if they ditch transitory, it does not mean that they -- guy: he said it was the worst inflation misread that the fed has ever made. they certainly are in a different position than you are at the moment. my view of inflation is unknown. jeffrey cleveland, chief economist, thank you very much. tune into special coverage. the fed decides, that coverage starts 1:30 p.m. new york time today. 2:00 p.m. is when it really gets interesting. that is when we get the outlook from the fed. the decision from the fed. the u.k. reports the most coronavirus cases since the pandemic began. we are on that next. this is bloomberg. ♪ >> if it was not for labor votes , this government would not have been able to introduce vital health measures. guy: the u.k. opposition leader talking in the house of commissary earlier here, pointing the finger at boris johnson saying if we did not help you, you would no

romaine bostick explains. >> the pandemic shop to the global economy disrupted every sector of business was the severe blow to retail that is now proving to have the most transformational industry effect. >> retailers like the 9/11, it is a hurricane. >> in early 2020, physical stores closed their doors. customers and workers locked down at home. what was supposed to be a temporary sacrifice turned into a more than your long struggle. that struggle is insurmountable for some retail chains and many of the mom-and-pop stores seemingly disappeared overnight, but the pandemic also spurred overdue change that is increasingly being seen as a net positive for global retail, which is already seeing a startling turn from where it was in 2020. >> we have consumers who basically have the dollars to spend, retailers are giving them innovative products. >> the pandemic created the incentive many needed to fully commit to e-commerce, rather than dabbling around the edges. >> we will walk side-by-side with our guests. the business is flexible for how they want to shop. >> in china, stores started sell

bloomberg's mike mckee and romaine bostick joining us now. what do you think? as you think about the run in to the end of this week and the end of 2022, what are you hearing? romaine: i'm hearing inflation, inflation, and inflation. you can tall you want about omicron and the covid variant. that is certainly a risk here. but what is already started to show some degree of erosion to earnings, to dividends, and to market multiples is the inclusionary pressures right now . everyone is looking ahead to what we see out of the fed and the ecb, whether they really are in inflation fighting mode. if they don't get that signal, you could see a rewriting of equities to a certain extent. he's got several notes this morning saying that this is pretty much the set up right now for a potential drawdown in the markets. alix: i hear you, and i'm not saying that central banks are less important than omicron. but to me, they are still very much linked. you have to wonder, if we do go into a different kind of covid mentality, are we going to see that building on inflationary pres

romaine bostick reports. romaine: the pandemic shock disrupted every sector of business.t was the severe blow to retailers that is now proving to have the most transformational industry effects. >> retail is like the 9/11. it is a hurricane. romaine: in early 2020, physical stores closed their doors. customers and workers locked down at home. what was supposed to be a temporary sacrifice turned into more than a year long struggle to remain viable. that struggle was insurmountable for some retail chains and many of the mom-and-pop stores disappeared overnight. but the pandemic also spurred overdue change that is increasingly being seemed as a net positive for global retail, which is already seen a startling turn from where it was in may 2020. >> we have consumers who have the dollars to spend, retailers are giving them innovative products. romaine: the pandemic crated the incentive many needed to fully commit to e-commerce rather than just dabbling. >> we will walk side-by-side with our guests with the business that is flexible to how they want to shop, whether that is a d

capital, jeffrey bostick clark, participated in the delivered -- in the results of the 2020 presidential election and the delay interruption of the peaceful transfer of power. the select committee believes that mr. clark had conversations with others in the federal government, including members of congress. regarding efforts to delegitimized, disrupt, or overturn the election results in the weeks leading up to january six. the select committee seeks documents and testimonies from mr. clock to obtain a complete understanding of the attempts to use the doj to disrupt the peaceful transfer of power, following the 2020 presidential race. and with whom he was collaborating inside and outside the government to advance these efforts. again the january six investigation we know as of an interview of the show last, night we know that they have had more than 250 people in the witness chair already. and as such, they may already have a pretty good idea as to who jeff clark was collaborating with. inside and outside the government on his alleged effort to use the power of the u.s. justice department

refiled bostic from the atlanta fed -- refiled bostic from the atlanta fed -- before him, rapahel bosticknta fed. >> i certainly would be supportive of a community decision to move the taper forward from where people had been expecting it, in june. kathleen: but you see, he also is throwing this in, the speed of the rate hikes. that is how randal quarles is moving the ball down the road. others are open to it. laverna master said she can see the possibility of two rate hikes. that is why jobs are so important. that is very important for the fed, to see strong jobs and say, we will speed up the taper in three weeks. juliette: not long until we look at those payroll numbers. global economics and policy editor kathleen hays with us in new york. that's get more with our guest, vikas pershad, portfolio manager at maga investments. a faster reduction of stimulus from the fed as kathleen is looking into the jobs aspect, too,, and then last week, the new omicron variant. vikas: so i have two things to say about that. number one, there is not a place in our portfolio where the thesis is contingent

jay powell, loretta mester, rafael bostick telling us on bloomberg tv they are open and ready to do it an interesting meeting, certainly from the inside. in three weeks, we will know if they speed it up. haidi: kathleen hays there. the turkish lira tumbling after the president broadly replaced his son as minister amid deepening risk in his administration over interest rate cuts. simone foxman joins us from new york. why was he removed? >> the official gazette where this came out gives very little information, but the underlying message is clear. erdogan is no longer accepting anyone in his government who has a different opinion than him about what to do on interest rates. he has endorsed the idea of cutting interest rates and excluded folks from the monetary policy committee a month ago or so. it is not a complete surprise he is out. there was speculation about it since the middle of last month, because he was seen as disagreeing with the policy of continuing to cut interest rates, which pushed the lira lower against the u.s. dollar. the new guy is much more in line with erdogan's prog

the bank of violence global head of market trading spoke just and ollie bostick and guy johnson abouthat call. >> we still believe market expectations for next year in terms of asset pricing is very positive because they are feeling comfortable -- there are enough savings to support consumers. at the same time there are some downside risks. looking at joe manchin not supporting build back better and with previous fiscal measures that also expire next year, your expecting contribution from fiscal assigned to u.s. growth to be negative next year. also now central banks are changing the reaction functions and prioritizing off-site inflation risks over downside growth risks. what we got was a super hawkish period. not only are they stopping new purchases in march, they also told us they're looking to deliver three rate hikes and they already discussed tightening. what we heard from governor waller as they are looking to deliver that after one or two rate hikes. that can also happen in 2022. there'll be a lot for the markets to digest. guy: it looks like we will have a bumpy year. in terms

rafael bostick telling me he is in favor of the faster taper. mary daly. it is all lining up. there is a meeting coming up. the fomc, we will see what they decide. when the chair is ready to look at it, we know it is a very important signal. >> how can you predict what the economy will do next? we just don't know enough about this particular variant. there is a passage in here, where are we with regards to this? the economy shutting down. >> the information vacuum with regards to omicron. people are reacting without any real scientific evidence of the threat of this variant. we know within the next two weeks, we will get scientific studies coming out of the labs on the level of neutralizing antibodies that can be created with the variant. that will be a very important piece of information. we know whether the current vaccines are strong enough to prevent serious illness, or if we have to start with a different vaccine, which is a possibility. i don't think it is a big possibility. rishaad: many of these countries making it difficult to enter. >> what they are doing is very muc