kriti: i am kriti gupta. we started with green on the screen. a cpi report encouraged buying into the equity market and we paired a lot of those gains. we are still in the green with session highs 3.2% on the s&p 500. look at this. not only are stocks going up, so our bonds. the idea is a repricing of what the fed policy rate might be. we will dive into that with michael mckee. as the yields comes down, so does the dollar. weakness by about 1%. the flipside is you are seeing a boost into commodities. the move lower in equities is not translated into oil, brent crude about $81 a barrel. jon: a lot of those energy stocks higher on the day. what has been interesting is the cool off we have seen in technology stocks since the opening bell. meta, the parent of facebook, was up 6.5% and now 4.5%. the cool off has not been helped by the continuing selling pressure in tesla. right now, the ev player's shares down 3%. the market cap was around $500 billion today. crown holdings up over 3%. the company avoiding a proxy fight with carl icahn, so investors

kriti: it really is. see that in the equity market and the bond market and the commodity market. walk us through the cross asset picture. manus: there you go, you have the equity market and we have it punching us through. you have this risk on narrative in the equity markets. kriti: let's talk about the asia story, at the core you hit the nail on the head, the idea that is the china story. we are seeing the commodities picture and i would argue the correlation is showing up in the asia-pacific index, up 1.3%. the ripple effect is catching my eye. asia has been rallying but europe and the united states are not following by the same margin. that story ends today in the preliminary trading. euro stocks futures up zero 0.4%. manus: let's get back to the credit suisse story. $4.3 billion capital increase giving the ceo the funds needed to carry out the restructuring. investors agree to abide 98.2% of the stock on sale. we are joined from singapore. the capital increase is in. the buffers are stop, the larders

this is bloomberg. ♪ kriti: this is "bloomberg markets," i'm kriti gupta.long musk sold $3.5 billion of tesla shares bringing the total amount of $40 billion this year. this coincides with him losing the top spot as the world's richest man, the break it down, is bailey, this is a lot to digest. when the twitter acquisition was going on tesla stock took a hit. by extension the s&p 500, the 8th largest member of the index. walk us through the impact. guest: a big concern, the latest thing investors and analysts are first -- are focusing on is the last sale is the final sale of tesla shares. focusing on think -- leading tesla, spacex, twitter. a lot of people are questioning if he is the right man for the job. if you can lead tesla going forward again, this is an environment where ev competition is knocking at the door. you have somebody concerns about what lies ahead for the company. you see the stock down 12% for the week, underperforming the s&p. before today's harsh selloff it was trading higher for the week. kriti: not instilling confidence across wall st

kriti: another selloff on our hands. you are seeing $4 trillion of options expiring across the board. a lot of that happened at the opening but one trillion or 2 trillion will be happening. the s&p 500 dow 1.7% -- down that 1.7% -- down 1.7%. the 10 year yield still higher on the day. as the two year yields come down, putting weight on the dollar but not enough. the dollar unchanged on the day. crude is where the action is, 3 million barrels is with the u.s. government is looking to get bids for in february that prices are coming down. $79 a barrel is the rent crude -- brent crude trading mark. jon: all 11 subgroups of the s&p 500 in the red at this hour. the energy stocks you are referencing on what is happening with crude, but on -- but under pressure. cautious comments on names on some groups. as interest rates go up and recessionary fears grow, this has been a big question about the quality of earnings heading into 2023. darden, the parent of olive garden with some pressures worrying investors. technology has been hi

kriti: david, hopped in on the concept of rate cuts. easing you see is because of the pricing in rate cuts is the market getting that wrong? david: not necessarily market pricing is a -- based on scenarios. many forecasters see higher recession odds than we do. i do not inspect they would likely cut. market pricing should reflect that. i think chair powell could reflect -- could imply whether or not they would cut without a recession because inflation is softening. my own sense would be that they at would not be good enough to have cuts. not enough to see it in 2023. it is possible it would have an impact on work it pricing but if they insist on keeping the funds rate higher for longer it is a good idea in voucher it will have a large impact. kriti: a crucial point on disinflation i will ask you a question, david, we ask michael mckee this early this morning. is the disinflation we see right now transitory? david: it is somewhere in between. these are not one-off things these are themes developing that will last i think all through 2023

kriti: this is bloomberg markets.vernight has been the bank of japan widening the bands of their yield curve control. on the surface, that seems like a currency story. i'm going to argue it is an equity story, too. the stocks are moving to buy a ticket in the opposite direction, let us see if there's something to that. phil orlando joins us with his perspective. connect the dots for us. why should an equity investor care about the boj? phil: because if the yen is going to strengthen against the dollar, that makes the dollar weaker. u.s. multinational companies tend to do 40 to 50% of their business overseas. the weaker dollar is better. for their ability to sell goods overseas, that tends to be inflationary, and that is something the federal reserve here has a very concerned about. we are in an interrelated market , watching the movements between the yen, euro, the pound and the dollar, critically important for what is going on in domestic u.s. markets. jon: let us stay on the subject of inflation, one of the most dom

kriti: let's stick to that.ow do you tackle something like that when prices and wages as well all expected to be sticky? when you see inflation coming down on things like services and rent, etc., what does that mean for the canadian consumer going into next year? erik: there's is a double whammy affect. you're not only facing the higher prices of goods and services, but some interest rate hikes themselves are getting into areas like mortgage interest rate costs and rents moving forward. as we move into the next year, the canadian economy is expected to slow. most analysts are expecting a technical recession at the beginning of next year. that should bring the economy, economic growth and momentum to slow down. that should pull off inflationary pressures. moving into next year we are not sure we will see inflationary pressures start to slow with the stickiness in the core measures. the bank of canada may have to raise rates again at its january 25 meeting. jon: can you walk us through where the market position wa

kriti: this is bloomberg markets.witter users have voted for elon musk to step down as the company ceo based on the online poll posted sunday. 58% of users said they favor and exit. will there be fallout? let's try to answer that question for us. if this happens and he steps down, who could potentially replace him? ed: we take him at face value and he followed up in another tweet on the result on the pole and it's hard to distinguish between candidates and satire. there is the fix it team, the trio of silicon valley who helped him when he first bought twitter and they were kind of having an active role through the engineering talent and were attending meetings with elon musk and traveled to new york to talk with advertisers. it's possible and they were asking if they should take on the role. we don't know if he's joking. we put in a request for comment from elon musk and the others and they have not replied as to whether they are being serious or not area we know that elon musk has said he wants a technologist, someon

kriti: this is "bloomberg markets," i am kriti gupta.ve headlines from washington dc, mitch mcconnell saying senators are about to get a deal from the -- on the rail vote. it will avert a 2 billion-dollar a dana hull to the american --a day hault to the american economy. this could be very contentious, if the deal does not go through you can see a strike on december 5 or december 9 depending on union votes. this is very contentious for the democratic 5 -- party and requires bipartisan support in the senate to get through. sticking with the washington story, president biden set to hold a press conference with french president emmanuel macron today. discussing a number of issues with trade in the top of the agenda -- agenda. >> saying the u.s. ships act and the inflation reduction act were not properly recorded with european economies and create an absence of a level playing field. he is covering the press conference and the -- those are fighting words from emmanuel macron. how will they move passes when it comes to the relations with the

kriti: this is bloomberg "markets.just listening to dances suu kyi of richard bernstein advisors from earlier today. -- dan suzuki of richard bernstein advisors from earlier today. joining us now to break all this down is just minton. let's talk specifically about this more arguably tradable event than the fed. 3% on cpi data. not necessarily something we have seen on fed day. walk us through the numbers. >> typically, if you look at the last couple of months, usually the s&p 500 is going to swing 3% in either direction. if anything, we should expect there to be more volatility tomorrow, once we get those cpi numbers. sometimes, typically the way futures react once those numbers hit at 8:30, usually they go in the way you would expect to say it comes in hotter or cooler than expected. but by the time market closes, it's not necessarily the way you think like october, posting a gain of more than 4%. if you look back at november, the s&p 500 actually rallied and posted its best cpi day on record according to data from bl

kriti: it almost has a legging effect. think about the other major economy that to go to reopen and that is the u.s. i think it was may 2020, the first real things happening in new york city. one of the big issues for the federal reserve was we need to stay e-cig because we do not know when we will go back into lockdown. delta and omicron contributed to that lag. and i wonder if that is contributing to the lag for the pboc. it is something you cannot predict because of these false starts in china. alix: great to see you both. coming up, if china's economy is this week, what does that mean for european growth? germany is heavily dependent on exports to china. we will talk more about that with anna titareva. this is bloomberg. ♪ guy: europe has a number of achilles heels. very you can have two, but that is maybe the limit -- maybe you can have two, but that is maybe the limit. one for germany has been exposure to russian gas, the second exposure to the chinese economy. we are now seeing portrayed data out of china, both impo

joining s -- ours is at the low end kriti gupta -- edward ludlow and kriti gupta. i don't think -- inevitably, there was gonna be a glut. micron is in the commodity business and at some point, it was going to struggle with samsung doing what it would doing, that time has come. ed: micron is telling us we are in cyclical downturn but that downturn is worse than feared and it will go on longer based on the fourth guidance the company -- forward guidance the company gave. laptops, they were never really the chips in short supply. if you look at the commentary from the executives, this is the worst glut for these chips in 13 years. the things that were in short supply are more basic than that. there is evidence that the end user, which is the eight -- end customer, they have stopped ordering. because the man is in their but we have known that for some quarters -- demand is not there but we have known that for some quarters. there is no consumer -- confidence hit by higher rates and higher inflation and this complete reversal of used car prices. there is evidence in the

kriti: interpreted as extreme we hawkish. going into this decision, economists widely consensus said they would actually hike by 25 basis points, but the market was actually pricing in only about 19 basis points. you are also seeing yield on the front end rise as well, even though the curve was flattening. what is tough for the rba is they are kind of stuck between a rock and hard place, the idea the housing market is actually really tumbling and they are dealing with adjustable-rate mortgages, one that could slow the entire economy far faster than any other housing market in the entire world, and that will be the crucial story while they are also balancing still high inflation. we are looking at 6.9% cpi data year over year. we are really looking at a long-term target of 2% to 3%, so they are nowhere near that. what do you do when you have this extremely hawkish inflation that just will not quit at a time when many people are saying maybe this is the last hike on the docket for the rba? >> it does feel like many people are l

kriti gupta is tracking that for us.take a look at but the stock market is doing, third day of gains, up half of 1%. i wouldn't call it a massive move. 2% gains in the session highs yesterday after the cpi report. muted volatility might be a good thing going into the federal reserve but remember it's different from past meetings because traditionally you see more of a risk off move ahead of the fed decision. more optimism on light volume, it is december after all. two year yield bonds catching a bit on the basis points for the 10 year yield that isn't doing a ton. i think the question here is what it for the dollar because as yields come down it feels like that's what it means. let's zoom out to talk about what it has been doing in the last year. one of the big stories is simply what creates a bear market case for the dollar and a lot of it does come from when the policy expectations are stalled and since they have been in the fed swaps, you see this weakening that will be crucial when we talk about what is priced in for

let's get over to kriti gupta. across the ocean here you can see s&p futures are up with outperformer is in the small caps that will be a theme into 2023, remember, you want a broad rally to have a sustainable turnaround. we have early signs of that this week. russell futures are up 7/10 of 1% and across the atlantic in europe you mentioned london closed, the rest of europe is indeed open with the stoxx 600 higher on the day. you are seeing the commodity effect coming from the china story, the reopening story, kind of having an effect. euro-dollar is at 106. this is important because as you start to see the case for the dollar building it will go into those cyclical currencies. the euro is one of them. the others are those aussie canadian dollar currencies that are stronger on the day following the story you are seeing in brent crude and the entire complex higher. forgive me, i got a bit wonky, you know i have to, the bond market is still not changed at the moment, closed over in london as well, we have a chart tha

we will see you more through the week, kriti gupta sweeping in from new york.tory as the reopening in china, it will be jagged, the hang seng is up over 8% at this juncture. mike wilson has delivered there. raised to overweight, and they have been equal weight since january 2021. it's been out for a little while, but that is what you call a monster move, isn't it? dani: the interesting part is the other side of this trade, which is -- this does relate to the china story somewhat, because if china comes back, there is more demand for oil, commodities move higher. that enforces inflation, so in a roundabout way, can you really by u.s. equities and follow this treasury rally in a scenario where china is back and has demand? manus: and it is all about the oil and commodity restock. you see that in iron ore, which is up 4.4% on the commodity page. the yuan strength, the high betas responding to the reaction function, and the aussie dollar is also prevalent on that board. it is about a belief that it will reopen, but it will not be a one-way trade. dani: not a one-wa

we are joined by kriti gupta. how does this work?w this financing saga has been in the works for a while. the original plan for elon musk was that $13 billion would be financed by the banks and done through debt. some of that has been taken off because elon musk had found other investors with private equity, a lot of big names and that helped him finance the $44 billion deal. then comes the debt picture where you are starting to see big banks like morgan stanley, socgen saying that there is that $13 billion of debt. we will service it and advertise it so make sure other people can get in on this. pretty exciting yield but because of the risk involved with twitter and the saga around elon musk, there has been hesitance to hold onto that debt. for that reason, the banks are very risk exposed and what they are trying to do here is say we want to get rid of this risk and switch it for margin loans backed by tesla stock which is a far more reliable companies in their eyes. tom: those banks have had to hold onto the package. so if you were

kriti gupta giving us the latest on all things musk. let's look at some key things we're going to be watching out for the rest of today. 1:30 p.m. u.k. time, we have u.s. initial jobless claims. this is a market that is very jittery, vulnerable to any movement, that will be closely watched. in the ecb's villaroy will be speaking at the toulouse school of economics. also today, some 2000 london bus drivers are due to strike, the latest stoppages that have hobbled public transportation in the u.k. later we will have results from costco, and chipmaker broadcom, important for the retail and chipmaking sector. this is bloomberg. ♪ the only smart bed in the world that actively cools, warms and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number. dani: more incremental news when it comes to covid zero easing, a line breaking that shanghai will be scrapping covid test requirements for dining services. this comes off the back of reports that hong kong

kriti gupta laid it out for us. kriti: it is dramatic to the point that the stoxx 600 is unchanged. are seeing more action in the need -- u.s. and the outperformance is crucial because there are macro stories, this one coming out of the asia, the idea of what the chinese open would look like and i would argue it is creating a defensive bid. futures are outperforming given the holiday jazz, it is outperforming the s&p 500 to the tune about 7/10 of 1% where futures are up only 4/10 of 1% and let's see that holds -- let's see if that holds and tesla is a big part of the story as we see the rebound of that stock. as we talk about the china story, the oil story is relevant and use -- you have food trading at a 77 -- crude shading at a 77 handle. at the end of the day, if you are worried about covid and a deja vu of 2020, it will show up in the bond market and accrued market and they will be -- the crude market and they will move in sync. if you are worried about the micro-risk, you will likely see a bid into the bond market as opposed to yields higher and oil higher. they are moving in t

kriti gupta his joining us with that. kriti: thin liquidity and light volume.en i checked in with you. the russell 2000 up 2/10 of 1%. the stoxx 600 up 3/10 of 1% but the stock market around the world is kind of on autopilot. it is almost at the whim of the dollar. this has been the theme you have seen all year long. you look at the one year chart, every time you see the dollar strengthened, interest rates are going to be driving the trade. the stock market drops and we are seeing the futures do the same. every tick higher is moving the stock market higher and lower. as we see a pullback in the bloomberg dollar index, futures are thriving. there is a ripple effect that goes beyond that. the 10 year yield comes to mind. the 10 year yield is down two basis points. it has been unchanged the last two days. to see that move pushing the dollar down and the dollar, by the way, weaker against all currencies except one and that is the japanese yen. overnight, the boj boosted their purchases which weakened the currency once again. 133.75 handle on the yen. as we see the

matt: i am matt miller, in for kriti gupta today.e are trading at session lows on the s&p right now. you can cs down at 4006 right now. the u.s. 10-year yield up more than 10 basis points right now, at 3.5883. we are seeing a little more strength in the dollar. those two are headwinds for risk assets. as they move higher, if they increase from your, expect to see more pain in equities. almost 3% down for crude. a drop in crude, even as, at least this morning, we were looking at more openings in china. it should have been risk on, and it looks like it is going the other direction. jon: let's take a deeper look at some individual movers. you are right that the general tone at this hour has been largely negative most sectors impacted by that. there are some other reality checks. within the retail sector weakness today from viad corp as they once again are warning about their outlook in the ceo is announcing his retirement. the other issue out there is valuations. you have deutsche bank with cautious comments today on starbucks because o

what do you think had 10 kriti? can england start? and bobby, and france. ok. big stretch thing is that i was a fun spot on. the put full month slumber is one of those. but full months is that you see along the for your walk up and i'm not using the was he had a very easily along the side of the walk up when that is one player that is playing the challenge to put his face on that edition. like i will say model, don't i 96 like oh, mile your 94? my tails 90. redone in 198, but it was absolutely phenomenal. we know that he's from a c name. i was in a level that he's out of any league. if you are going to put only one player was can all play to limit them up. you are not doing the guy a favor is if somebody will go because he's the 1st time ever ever. that france, england, if played not call stage, no final on them. yeah. and england, if we look at us with a well deserved to be at the final, but after eliminating quite dodge out of money, they had quite uneasy past so that so when they were facing the study and that was the biggest challenge, they feel that they f

kriti: i'm sure a lot of people are signing off and not looking back after this year.hen you look at the stock market, futures are down .3 percent. nasdaq is down .3%. the stoxx 600, is down .61%. asia performed in the green, they performed positive. it is the last trading day of the year so it is a day of reflection. in the last five years, we have seen this complete move and sink when it comes to equities. in 2020, outperformance was a story and now if you start to zoom into what the cases been for the past two or three months, u.s. outperformance is once against the story. how much does that translate into 2023? it will be a function of what the cross assets are doing. the bond market, not doing a whole lot. the 10 year is only up .03. the u.s. dollar is down .26%. nothing to write home about, and and the new year we could have a change in the equity market. lisa: a lot of people are thinking that we could see it reverse and matt, you are outperforming. the epicenter of the crisis that was not as bad as what people expected. matt: europe never outperforms. it's perp

kriti: i am in london, a house panel released six years of donald trump's tax returns, ending a years long battle between democrats and the former president can the fight to keep his records private. the returns show that he and his businesses lost millions between 2015 and 2020. vladimir putin and xi jinping have a deepening ties between russia and china in a videoconference today. relations of the best in history and said that china is ready to expand the relationship. there are signs that beijing is struggling. a week long meltdown, southwest airlines returning to normal schedule today. nelson's stranded across the u.s. because of cancellations caused by winter storms and overwhelmed technology. for than 13,000 flights canceled in week. global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm pretty. -- i am ritika gupta. this is bloomberg. caroline: it is an extraordinary year. global bonds, the worst since 1990. we have what is interesting in bitcoin had a terrible year. the worst year since 20

. ♪ kriti: bloomberg has learned ritika: that bloomberg sex may eliminate as many as 4000 what he's. managers have been asked to identify potential cuts. the consumer banking unit suffered its deepest losses yet and there's been a slow in dealmaking. advent international has agreed to buy a weather forecaster for about $4 million. their shares are soaring. it's worth $4.6 billion and they will probe -- prioritized -- they will prioritize their function. senators want joe biden to take more action against tiktok because of national security concerns and the government needs to protect american users. earlier this week, the senate and honestly backed a bill to ban tiktok from all government issued phones and other devices. that is your latest business flash. alix: it is 23 minutes past seven on the west coast. what are you watching this morning? for us it is twitter and what elon musk is doing. >> last night, elon musk and twitter took down an account that has publicly just public information about jets. those reporters were promptly suspended. in journalist communities, you can imagin

dani: joining us now is kriti gupta. the hotshots in the u.s.ll starting to warn more and more about the economy. >> david solomon was one of the early warners on this kind of slowing economy. jamie dimon, moynahan of bank of america, they were very strong about this boisterous consumer the american economy. they were saying a recession is not their base case. you are starting to see more and more commentary from wall street's biggest ceos. starting to change their tune a little bit, saying 2023 might finally be the moment when the economy catches up to the market carnage that has been pricing in some of that recession. dani: it also seems like these warnings are going hand-in-hand with the job cuts they are announcing. >> bracing for recession is becoming a bigger and bigger thing. investment banking, even some of the trading revenue. now morgan stanley talking about 1600 job cuts. it follows about 20,000 jobs added in the last two years. you can really see them pulling back on this idea. the other banks aren't doing job cuts, but they are slow

francine: kriti gupta on investors. let's get to the bloomberg news.lice: saudi arabia's crown prince is repairing to invest in credit suisse's investment bank. the paper says prince mohammed bin salman on may invest $500 million in the lender's first spin out. other investors could include former berkeley ceo bob diamond's company. muska says apple has resumed advertising on twitter, further de-escalating a brewing war between two of the world's most influential tech companies. musk made the comments during a twitter spaces conversation over the weekend, adding that apple is still the largest advertiser on the social media network. bill hwang has asked for fraud charges to be dismissed against him. he said prosecutors engaged in deceitful conduct. hwang says he was duped into assisting investigators who gave him false hope that he wouldn't be charged. he is scheduled to go on trial next october over the collapse of the capital management company. that is your bloomberg business flash. tom: alice atkins in london, thank you. wall street banks slash. bo

she needs e kriti. and you already distinguish them.nt fans, i know in person, so that you understand that there are 320 million views of all 720,000 comments always in person. you can not. i'm talking about the most ardent. here are the most ardent ones, and they come to the club. for every performance. for each of my interviews, it doesn’t matter to everyone, it’s in the morning at 9:00 at 8:00 and they stand, then on the street. this is how the gophers wait in winter. me they give sweets that are made in honor of my songs. and you thank them for that. i thank them, i take pictures with them, hug them. i sometimes give them tickets for my concerts there. uh, reposts are made to my page, i post them. well, i mean, well, i correspond with them. many of them know my telegram many of them can write me a circle in telegram whatsapp can write on instagram when i have some cool news. i send them first. i have these contacts of mine the best fans right here who are always with me and have come a long way there for 5 years, and i send them all