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

i'm kriti gupta alongside jon erlichman.ding to goldman sachs commodities will be the best performing asset class in 2023 handing investors returns of 40%. >> two years ago, in october 2020 we called for a commodity super cycle and we stand by that view. that is not an upward trend in prices. it is spike after spike after spike. it will go on and on until we have adequate investment to be able to grow supply. kriti: that is a pretty bold call from jeff currie, but not abnormal. let's bring in julia fanzeres to break it down. he has been saying this for a while. is there anything new? julia: his call has not changed at all. what is interesting are there more traders on his side now agreeing with that. there are a lot of things to back up his call for 2023. you are seeing energy equities, a lot of those companies are not taking that money and investing it. they are giving it back to shareholders. that's great news for anybody that invest in the equities. china reopening will bolster the call for oil prices, because oil prices

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

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

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

i am with kriti gupta who is excited about our final segment, the world cup final this weekend with argentinaing france. joining us is simone foxman, who has been covering in extensive detail and doing an incredible job. i would imagine the excitement is gathering as we ready -- get ready for the weekend. simone: there are a lot of argentine fans here. are way more people and qatar than there normally are. there have been hundreds of thousands more people in the country than there typically are and they were out and about, on the streets, wearing their team gear. it was very exciting. kriti: $300 billion in marketing costs when it comes to this world cup this time around. talk about the role of having the world cup be in qatar and what has made for the rest of the world. simone: when you think about it from qatar's perspective, they spent the money not just to throw a massive sporting event but to develop their country and build a metro system that didn't exist and build a new city, to expand the airport dramatically. by those standards, it showed to the world they can do this. they very much

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

i'm manus cranny in dubai with kriti gupta. i: global stocks and treasuries climb as producer price growth shown to cool. momentum weakening, china's inflation measures soften as the economy softens. xi jinping as willing to boost oil trading with saudi arabia. credit suisse completes a $4.3 billion capital raise giving the embattled swiss bank the funds it needs for restructuring. manus: good morning and welcome. we have delivered activity after day five, good to have you with me. it is all about china, the builders are on fire, the momentum is moving but there is this deep back risk in the market. we have geopolitical risk from putin, from the threats and rhetoric he uses, that is a malevolent underbelly to this risk on elsewhere. kriti: it really is. you 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 ab

kriti gupta is tracking that for us. ake 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

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

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

that is a great way to get into kriti gupta and eddie van der walt. they join us. china reopening, do you think that should be positive. yet, we have had a lot of positive news and the market has grown getting to this point. is it by the rumor sell the fact? kriti: three things to keep in mind. the first is nerdy. it is liquidity. using open interest in commodity pricing and crude collapse over the last couple of months. we are seeing less liquidity and there is less interest to trade the commodity itself and that is pulling funds the market altogether. the second factor is this idea that we have seen this china reopening story and there have been these false starts. there is also skepticism big into the market the third is that recessionary calls are getting bigger and bigger around the world. we heard this from jamie dimon, brian moynihan commit david solomon, who were big advocates in the u.s. consumer avoiding the recession now changing their turn. that creates a ceiling for the crude market. alix: if i am looking -- looking at forceful long-term policy, i am t

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

kriti gupta is with the team all week. walk us through the significance of this decision today. the question many people try to divine is if this was a hawkish titan or not. it has certainly got all the hallmarks of quite a thumbscrew. 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 e

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

bloomberg's kriti gupta has it all to highlight some of the driving trends into year end. ove my charts but i will explain them. across the atlantic the stoxx 600 not doing a ton, but stateside you are seeing more action. outperformance and nasdaq 100 futures. outperforming the s&p 500 to the tune of .4%. you're seeing a little bit of a bid coming from a little bit of optimism in tesla after adam jonas reiterated his overweight rating. he did cut the price target but to see that rebound getting more bullish into the tech space which brings me to another stock. the biggest member of the s&p 500, arguably one of the fastest growing companies across the world. i look to look at this. you're looking at a chart of apple shares, which looks like a mirror image. one of the big questions in 2023 is if you are bullish on the stock market, to what extent you have to be bullish on apple shares given china exposure, given supply chain issues, and given the slow down in consumer demand. that will be the story that does not diverge from the broader index. the other story is the other sid

kriti gupta has a check. >> the s&p 500 continues to see red on the screen it gets deeper and deeper.ut seven tents of a percent. yields are now higher by about six basis points. 3.87 on the 10 year yield. it is now following the move you are seeing which was not the story in our to echo. the dollar coming back a little bit pressuring the euro which was one of the top gainers. we are looking at a 106 handle. nothing to write home about that it is living the market. we talked about copper, oil, especially in light of china reopening. gold is a part of it. especially as we go into january and the lunar new year. watch gold and see how it performs. that could be the canary in the called mine. -- call mine. kaylee has been talking about the 60/40 portfolio nonstop and i think it's important to bring up because as we talk about the re-yield the stock market loses its appeal a little bit and you have seen this this year as the start market goes lower. of course the effect on cash off of some of these balance sheets but it's also important to look at what it is doing underneath the head. as

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

sense and we have inflation continuing to come down -- paul: let's get world and national news with kriti gupta. 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, th

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