WEBVTT - Bloomberg Daybreak: January 12, 2022 - Hour 1 (Radio) 0:00:03.560 --> 0:00:06.800 Live from the Bloomberg Interactor Burger Studios. This is is Bloomberg 0:00:06.920 --> 0:00:10.840 day Break for Wednesday, January twelve two. Coming up this hour, 0:00:11.240 --> 0:00:14.960 J Powell offers reassuring words on inflation. Price pressure has 0:00:15.000 --> 0:00:18.160 remained in focus for this morning CPI report, Johnson and 0:00:18.239 --> 0:00:22.160 Johnson's vaccine gets another side effect warning and Biogen share 0:00:22.200 --> 0:00:25.279 slide after the government limits coverage for its Alzheimer's drug. 0:00:25.520 --> 0:00:28.920 Governor HOCl says New York COVID rates are plateauing. Plus 0:00:29.040 --> 0:00:31.960 President Biden makes a pitch to get rid of filibuster rules. 0:00:32.159 --> 0:00:36.080 I'm Michael larn More Ahead, I'm John stand Shown sports giants, 0:00:36.080 --> 0:00:38.959 fans gat their wish, the team fired, Joe Judge will 0:00:39.000 --> 0:00:41.360 be a new coach, and G. M. Nixon nets both 0:00:41.440 --> 0:00:46.760 late tonight. That's all straight Ahead on Bloomberg day Break 0:00:46.960 --> 0:00:51.480 on Bloomberg eleven, Free on New York, Bloomberg on Washington, 0:00:51.600 --> 0:00:55.680 d C, Bloomberg one oh six one Boston, Bloomberg nine sixties, 0:00:55.720 --> 0:00:59.920 San Francisco, Sirius XM one nine Team, and around the world. 0:01:00.000 --> 0:01:03.520 Old on Bloomberg Radio dot Com and via The Bloomberg Business. 0:01:07.680 --> 0:01:10.640 Good Morning, I'm Nathan Hagar, and I'm Karen, Moscow and 0:01:10.800 --> 0:01:14.200 US futures are moving higher this morning ahead of today's 0:01:14.200 --> 0:01:16.320 inflation data. We're coming up to six o one on 0:01:16.400 --> 0:01:18.440 Wall Street, and we checked the markets every fifteen minutes 0:01:18.480 --> 0:01:21.800 throughout the trading day on bloomberg S ANDP futures up 0:01:21.840 --> 0:01:25.120 about nine points down, futures up sixty two, NASTACK futures 0:01:25.200 --> 0:01:28.759 up forty nine. The decks in Germany's up half percent. 0:01:29.080 --> 0:01:31.320 Ten year treasury down to thirty seconds, he at one 0:01:31.360 --> 0:01:33.760 point seven four percent. They yield on the two year 0:01:33.880 --> 0:01:37.720 point nine zero percent. Nim X. Screwed oil is up 0:01:37.720 --> 0:01:39.759 six tents percent or forty nine cents at eighty one 0:01:40.080 --> 0:01:43.640 seventy one cents a barrel, and Bitcoin this morning at 0:01:44.360 --> 0:01:46.800 eight hundred dollars. Nathan, Well, Karen, we're coming up the 0:01:46.840 --> 0:01:49.279 first game for U S stocks in more than a week. 0:01:49.440 --> 0:01:52.640 The rebound came after j. Powell's confirmation hearing, where the 0:01:52.640 --> 0:01:55.360 Fed chair look to reassure senators about the central banks 0:01:55.360 --> 0:02:00.240 plans to tackle inflation. If we see inflation persisting at 0:02:00.280 --> 0:02:03.880 high levels longer than expected, then then we will, you know, 0:02:03.920 --> 0:02:06.200 then will if we have to raise interest rates more 0:02:06.280 --> 0:02:08.800 over time, we will. We will use our tools to 0:02:08.800 --> 0:02:11.520 get inflation back. Powell told senators the Fed is on 0:02:11.600 --> 0:02:14.519 course to start raising interest rates and reduce its eight 0:02:14.520 --> 0:02:17.960 point eight trillion dollar balance sheet. Well, Nathan Powell received 0:02:17.960 --> 0:02:21.480 a relatively warm reception from the Senate Banking Committee. Arkansas 0:02:21.560 --> 0:02:24.160 Republican Congressman French Hill was glad to see a heavy 0:02:24.200 --> 0:02:27.919 focus on inflation. This issue of getting inflation under control 0:02:28.280 --> 0:02:31.800 UH and taking action from a monetary policy is should 0:02:31.840 --> 0:02:36.280 be the principal issue, not climate change, not bank regulatory opinions, 0:02:36.480 --> 0:02:41.239 but their monetary policy responsibility. Arkansas Congressman French Hills spoke 0:02:41.320 --> 0:02:44.680 at our Washington corresponded Joe Matthew on Bloomberg Sound on 0:02:44.880 --> 0:02:48.240 Catch the program weekdays at five pm Eastern on Bloomberg Radio, 0:02:48.440 --> 0:02:51.040 and inflation will remain in the spotlight today, Karen. When 0:02:51.080 --> 0:02:54.160 government data on consumer prices comes out this morning, we 0:02:54.200 --> 0:02:57.200 get a preview from Bloomberg's Viney Dell Judas hang onto 0:02:57.200 --> 0:03:00.880 your hacks again. Bloomberg Economics, as forecast a seven percent 0:03:00.919 --> 0:03:04.119 inflation rate year over year in November hit six point 0:03:04.160 --> 0:03:07.200 eight percent, the most nineteen two, when Paul Walker was 0:03:07.240 --> 0:03:10.600 stomping on the brakes at the Federal Reserve COVID nineteen 0:03:10.720 --> 0:03:12.800 is still an issue today as it has been for 0:03:12.919 --> 0:03:17.239 two long years. Bloomberg Economics as a Macron related bottlenecks 0:03:17.280 --> 0:03:21.000 could add further upward pressure through the first quarter. Vinnie 0:03:21.120 --> 0:03:24.080 Delnic Bloomberg day Break, Right, Vinnie, thank you. All. Prices 0:03:24.080 --> 0:03:26.440 were also front and center in Asia over night, with 0:03:26.520 --> 0:03:30.240 data showing inflation in China East in December, and Bloomberg 0:03:30.320 --> 0:03:33.600 Daybreak Asia anchor Brian Curtis as the details. The Producer 0:03:33.639 --> 0:03:36.800 Price Index rose ten point three percent from a year earlier, 0:03:36.880 --> 0:03:40.360 slowing from November's twelve point nine percent. It was well 0:03:40.440 --> 0:03:43.800 below forecasts. The government took measures to boost supplies of 0:03:43.840 --> 0:03:48.839 commodities and it cracked down on speculation, and food prices fell. Now, 0:03:48.840 --> 0:03:51.880 the CPI increased one and a half percent. That was 0:03:51.960 --> 0:03:55.440 lower than the projection of one point seven percent. O 0:03:55.600 --> 0:03:59.040 Macron is hitting the economy hard, and these softer numbers 0:03:59.080 --> 0:04:03.040 might give the PBO see more scope for easy Brian Curtis, 0:04:03.040 --> 0:04:05.760 Bloomberg day Break. All right, Brian, thank you. Let's turn 0:04:05.760 --> 0:04:08.559 to the pandemic now with a fresh focus on vaccines. 0:04:08.640 --> 0:04:11.080 We told you yesterday. Finer and Maderna are working on 0:04:11.120 --> 0:04:13.640 shots to target the omicron variant, but it looks like 0:04:13.720 --> 0:04:16.440 Dr Anthony Faucci is not on board with that plan, 0:04:16.720 --> 0:04:19.960 Bloomberg said. Baxter has the story. Dr Fauci says he 0:04:20.000 --> 0:04:22.520 feels that time should be spent developing the vaccine in 0:04:22.560 --> 0:04:26.880 the protract against the umbrella of variants past and to come, 0:04:27.200 --> 0:04:29.960 and the interact whost is will play a major role 0:04:30.480 --> 0:04:34.680 in protecting our population, at least from severe disease in 0:04:34.720 --> 0:04:39.880 the context of the ongoing massive surge of the omicron variant. 0:04:39.920 --> 0:04:42.880 He says, the third m RNA dose regiment seems to 0:04:42.880 --> 0:04:46.560 be working and preventing severe disease at this time in 0:04:46.640 --> 0:04:49.720 San Francisco. I'm at Baxter Bloomberg Day Break, All right, 0:04:49.760 --> 0:04:51.920 and thank you. All important news this morning for those 0:04:51.960 --> 0:04:54.600 who have gotten Johnson and Johnson's vaccine. We get the 0:04:54.640 --> 0:04:58.320 latest from Bloomberg's Ranita Young Ranita Karen. The FDA is 0:04:58.400 --> 0:05:01.799 revising its fact sheet for J and Jay's COVID nineteen shot. 0:05:02.120 --> 0:05:05.000 It now warns of the risk of a rare bleeding disorder, 0:05:05.240 --> 0:05:08.400 and it includes recommendations for giving J and J's vaccine 0:05:08.520 --> 0:05:12.120 to people with existing medical conditions. The FDA told J 0:05:12.240 --> 0:05:15.080 and J that reports suggests an increased risk of the 0:05:15.120 --> 0:05:18.520 bleeding disorder during the forty two days after patients received 0:05:18.560 --> 0:05:22.960 their shot. Symptoms include bruising or excessive or unusual bleeding. 0:05:23.279 --> 0:05:26.680 This revision comes a month after the CDC recommended MODERNA 0:05:26.760 --> 0:05:30.680 and viser vaccines for adults over jan Ja's shot. I'm 0:05:30.720 --> 0:05:33.479 reneeding young Bloomberg Daybreak, All right, we need to thank 0:05:33.480 --> 0:05:36.320 you vaccines. They're also in focus in Europe where there's 0:05:36.320 --> 0:05:39.359 a warning about getting too many booster shots. Let's go 0:05:39.440 --> 0:05:42.200 live to London and get the latest from Bloomberg's Max Ramsey. 0:05:42.240 --> 0:05:45.279 Good morning, Max, Good morning Nathan and Karen. Yes, we 0:05:45.360 --> 0:05:48.279 have this warning from the European Medicines Agency. It's the 0:05:48.480 --> 0:05:52.200 key EU regulator that's saying that frequent booster shots could 0:05:52.200 --> 0:05:56.000 have negative effects on the immune system and tire people out. 0:05:56.279 --> 0:05:59.600 That's based on repeating boosters every four months. So instead 0:05:59.640 --> 0:06:03.040 they think countries should leave more time between vaccines and 0:06:03.120 --> 0:06:04.920 tie them to the start of the cold season, say 0:06:04.960 --> 0:06:08.640 following in the footsteps of flu vaccine programs. Live in London, 0:06:08.680 --> 0:06:11.520 I'm Max Ramsey, Bloomberg Daybreak, Right, Max, thank you and 0:06:11.560 --> 0:06:15.080 finally incorporate news this morning. Shares of Biogenner down more 0:06:15.120 --> 0:06:18.400 than ten percent this morning. The federal government is limiting 0:06:18.440 --> 0:06:21.320 coverage of Biogen's Alzheimer's treatment, and we get more from 0:06:21.320 --> 0:06:25.359 Bloomberg's Doug Christner. Last June, the FDA granted Biogen's drug 0:06:25.440 --> 0:06:30.479 adu Helm accelerated approval, despite objections from FDA advisors. Since then, 0:06:30.800 --> 0:06:33.080 Medicare has been paying for the treatment on a case 0:06:33.120 --> 0:06:36.440 by case basis. Now, the Centers for Medicare and Medicaid 0:06:36.480 --> 0:06:40.840 Services is curbing access. Coverage of Biogen's therapy and other 0:06:40.880 --> 0:06:45.280 emiloid targeted Alzheimer's therapies will be limited to those participating 0:06:45.320 --> 0:06:48.880 in qualifying clinical trials. The CMS said the decision was 0:06:48.920 --> 0:06:51.800 the result of a thorough analysis. It found while ad 0:06:51.839 --> 0:06:54.880 you Helm could help patients, there is also the potential 0:06:54.920 --> 0:06:57.840 for harm. In New York, I'm Doug Christner, Bloomberg Daybreak, 0:06:57.880 --> 0:06:59.400 All right, Doug, thank you right now. S and P 0:06:59.560 --> 0:07:02.479 futures up nine points, staff futures up sixty seven, nest 0:07:02.520 --> 0:07:05.640 at features higher by fifty two points, the tenure treasury 0:07:05.680 --> 0:07:08.119 is down to thirty seconds, the yield one point seven 0:07:08.200 --> 0:07:10.800 four percent, and I'm ex screwed up six tenths per cent. 0:07:10.880 --> 0:07:14.040 Or forty seven cents at eighty one sixty nine cents 0:07:14.040 --> 0:07:16.920 a barrel straight ahead, your latest local headlines and a 0:07:17.000 --> 0:07:24.040 check of sports. This is Bloomberg in six o seven 0:07:24.040 --> 0:07:26.280 on Wall Street where twenty three degrees in Central Park 0:07:26.320 --> 0:07:28.720 and still dealing with this overturn tractor trailer on East 0:07:28.720 --> 0:07:31.000 Found eighty and hack and sack the tails coming up 0:07:31.000 --> 0:07:33.960 in traffic. First Michael Laher with more on what's going 0:07:34.000 --> 0:07:36.400 on in New York and around the world. Michael, thank 0:07:36.400 --> 0:07:39.400 you very much, Nathan. Governor Kathy Oakel says the omicron 0:07:39.480 --> 0:07:43.119 fueled COVID surgey New York appears to be cresting over 0:07:43.160 --> 0:07:47.240 that peak as the rate of increased slows. Ocal says 0:07:47.280 --> 0:07:50.120 the percentage of New Yorkers that tested positive has dropped 0:07:50.240 --> 0:07:53.360 to eighteen point six percent from more than two percent 0:07:53.400 --> 0:07:56.200 in recent days. Cases are slowing down, the rate of 0:07:56.240 --> 0:07:59.920 increases slowing down, um, but they're still high. They're still high. 0:08:00.040 --> 0:08:01.840 It We are not at the end. But I wanted 0:08:01.840 --> 0:08:05.000 to say that this is to me a glimmer of hope, 0:08:05.080 --> 0:08:06.880 a glimmer of hope at a time, and we desperately 0:08:06.920 --> 0:08:09.880 need that, the governor says, in New York, City COVID 0:08:10.000 --> 0:08:13.239 rates are platte sewing, while upstate figures are tracking behind 0:08:13.280 --> 0:08:16.160 the city by a couple of weeks. New Jersey Governor 0:08:16.160 --> 0:08:19.640 Phil Murphy reinstated a public health emergency to respond to 0:08:19.680 --> 0:08:23.400 the omicron fueled surge in COVID cases. The executive order 0:08:23.480 --> 0:08:27.920 allows for existing orders, like requiring masking in schools and 0:08:28.160 --> 0:08:31.920 daycare settings to remain in effect. Murphy spoke about COVID 0:08:31.960 --> 0:08:34.719 during his State of the State address yesterday. Just as 0:08:34.720 --> 0:08:37.400 we thought we had finally gotten ahead of COVID, the 0:08:37.480 --> 0:08:41.200 omicron variant came along. O. Macron is doing its best 0:08:41.240 --> 0:08:44.000 to stop us in our tracks and push us back. 0:08:44.720 --> 0:08:47.720 We will not let it, Governor Murphy says. For now. 0:08:47.760 --> 0:08:52.160 The health Emergency declaration is effective immediately and will expire 0:08:52.280 --> 0:08:55.600 after thirty days. At least fourteen of the seventeen victims 0:08:55.640 --> 0:08:58.520 from Sunday's deadly high rise apartment fire in the Bronx 0:08:58.760 --> 0:09:02.520 have now been identified. Victims range in age from five 0:09:02.559 --> 0:09:05.760 to fifty years old. The Medical Examiners offices all of 0:09:05.840 --> 0:09:09.280 those killed died from smoke in realation. Last night, a 0:09:09.360 --> 0:09:12.440 vigil was held outside the building for the victims. President 0:09:12.480 --> 0:09:16.040 Biden challenge Senators to stand against voter suppression, urging them 0:09:16.120 --> 0:09:18.679 to end the filibuster rule in order to pass voting 0:09:18.760 --> 0:09:22.880 rights legislation. President Biden spoke in Atlanta, Jim Crew two 0:09:22.920 --> 0:09:27.800 point oh was about two insidious things. Voter suppression an 0:09:27.800 --> 0:09:31.760 election subversion. It's no longer about who gets to vote, 0:09:32.200 --> 0:09:35.800 It's about making it harder to vote. Meanwhile, Republicans Senate 0:09:35.880 --> 0:09:38.560 Leader Mint McConnell is promising to create a log jam 0:09:38.640 --> 0:09:41.920 for Democrats if they vote to override the filibuster rule. 0:09:42.160 --> 0:09:45.480 We're ready to have this vote. We think it's time 0:09:45.760 --> 0:09:48.960 for those who want to break the Senate to stand 0:09:49.040 --> 0:09:52.440 up and try to break the Senate. And let's see 0:09:52.440 --> 0:09:56.719 where everybody stands. Senator McConnell spoke to reporters after a 0:09:56.800 --> 0:09:59.480 GOP lunch and Global News twenty four hours a day 0:09:59.520 --> 0:10:01.720 on air. Down Bloomberg Quick Take, powered by more than 0:10:02.040 --> 0:10:05.560 seven hundred journalist and analysts more than twenty countries. Michael Barr, 0:10:05.600 --> 0:10:12.640 this is Bloomberg, Nain, Michael, thank you almost six cent 0:10:12.679 --> 0:10:14.719 on all Street time for the Bloomberg Sports Update with 0:10:14.800 --> 0:10:17.840 John Stown. Thanks Nathan. The firing of Joe Judge means 0:10:17.880 --> 0:10:20.040 the Giants If you include an interim head coach of 0:10:20.040 --> 0:10:22.319 few years ago. We're about to have their sixth different 0:10:22.360 --> 0:10:26.200 coach over an eight year span. The Steelers have had 0:10:26.240 --> 0:10:28.760 three coaches in the last fifty two years. The feeling 0:10:28.800 --> 0:10:30.880 was the Giants wanted to avoid having to fire a 0:10:30.920 --> 0:10:33.720 third strange coach who lasted just two seasons, but the 0:10:33.720 --> 0:10:35.719 six game losing streak to finish the year, plus some 0:10:35.800 --> 0:10:40.000 bizarre Judge postgame press conferences left them with no choice. 0:10:40.000 --> 0:10:42.960 Reaction from one time Giant Ryan Clark now on ESPN 0:10:43.120 --> 0:10:46.160 NFL animal, if you're going to keep the integrity of 0:10:46.200 --> 0:10:48.760 what your organization is supposed to be, then Joe Judge 0:10:48.800 --> 0:10:51.080 can't continue to be the head coach of the New 0:10:51.160 --> 0:10:53.720 York Giants. This is a team that lost six games 0:10:53.760 --> 0:10:55.920 by double digits to finish the season. This is the 0:10:55.960 --> 0:10:58.840 team that kneeled the ball on third and nine from 0:10:58.920 --> 0:11:00.760 their own five yard and this was a team that 0:11:00.840 --> 0:11:03.280 was no longer competing. And the one thing that good 0:11:03.280 --> 0:11:05.840 scene to do is they reflect coaching. So the Giants 0:11:05.840 --> 0:11:08.080 down need a coach and general manager, and makes sense 0:11:08.120 --> 0:11:10.400 to get the GM first. It appears that for both 0:11:10.480 --> 0:11:13.319 jobs they will look to bring in someone from outside 0:11:13.360 --> 0:11:16.280 the organization. That's something their fans have wanted. But the 0:11:16.320 --> 0:11:18.840 strange season with the Islanders first thirteen games all on 0:11:18.880 --> 0:11:21.120 the road. Team that almost played for the Stanley Cup 0:11:21.200 --> 0:11:23.800 last season, had eleven game losing streak. Their last eight 0:11:23.800 --> 0:11:26.280 games have been postponed due to COVID and now set 0:11:26.320 --> 0:11:29.160 to play the Devil's tomorrow and Islander coach Barry Trot's 0:11:29.480 --> 0:11:32.120 test had positive and he just returned from time off 0:11:32.360 --> 0:11:34.120 after the death of his mother. Next to night go 0:11:34.200 --> 0:11:35.840 for a fifth grade home win. It would get them 0:11:35.880 --> 0:11:38.720 back to five hundred. Dallas comes into the Garden righting 0:11:38.760 --> 0:11:40.800 the six game win streak. The Nets have lost five 0:11:40.800 --> 0:11:43.160 of their last seven. They visited Chicago. The Bulls won 0:11:43.240 --> 0:11:46.280 last night by forty six. They've got the best record 0:11:46.320 --> 0:11:49.880 in these John Stash, Edward Bloomberg Sports, Nathan Okay, John, 0:11:49.880 --> 0:11:52.240 thank you, s and p Futures now up almost six points, 0:11:52.240 --> 0:11:54.680 Stuff features up forty five. Dance that futures are higher 0:11:54.679 --> 0:11:57.040 by almost thirty eight points. The tenure treasury is gonna 0:11:57.040 --> 0:12:00.320 down one thirty second, the yield one point seven four. 0:12:01.000 --> 0:12:08.679 You're listening to Bloomberg day Break and it's brought to 0:12:08.720 --> 0:12:10.880 you by Autie. Don't let someone else drive off in 0:12:10.920 --> 0:12:13.160 the outie model. You've always wanted to visit a tri 0:12:13.320 --> 0:12:21.280 state area autie dealer to get behind the wheel of yours. Today, 0:12:21.920 --> 0:12:25.320 markets headlines and breaking news twenty four hours a day 0:12:25.400 --> 0:12:28.400 at Bloomberg dot com, the Bloomberg Business Out and at 0:12:28.400 --> 0:12:38.200 Bloomberg Quick Tape is a Bloomberg Business Flash, and I'm 0:12:38.240 --> 0:12:42.640 Karen Moscow. European stocks are moving higher this morning, and 0:12:42.720 --> 0:12:46.640 treasury yields are steady ahead of that key reading on inflation. 0:12:46.800 --> 0:12:49.839 US DOCK Index futures are moving higher, and we check 0:12:49.880 --> 0:12:52.480 the markets every fifteen minutes throughout the trading day on 0:12:52.559 --> 0:12:54.760 Bloomberg S and p Future is up seven point to 0:12:54.800 --> 0:12:57.880 down futures of forty six nasdack futures at forty five 0:12:58.240 --> 0:13:00.640 the decks in Germany's up a third of percent. Ten 0:13:00.720 --> 0:13:03.559 year treasury down one thirty second yield one point seven 0:13:03.559 --> 0:13:05.920 four percent. That yield on the two year point nine 0:13:06.040 --> 0:13:09.319 zero percent. Nine X screwed oils up seven tents per cent, 0:13:09.400 --> 0:13:11.800 or fifty four cents at eighty one seventy six cents 0:13:11.800 --> 0:13:15.200 of barrel Comic school that will change at eighteen seventeen 0:13:15.240 --> 0:13:18.319 forty announce the euro one point one three six two 0:13:18.360 --> 0:13:21.320 against the dollar. British found one point three six three three, 0:13:21.360 --> 0:13:24.040 the ends in one fifteen point four one, and bitcoin 0:13:24.160 --> 0:13:28.200 this morning moving higher at two eight hundred dollars. And 0:13:28.240 --> 0:13:30.400 we do get that CPI report at a thirty Wall 0:13:30.440 --> 0:13:33.400 Street time at you. The FED releases its page book 0:13:33.440 --> 0:13:36.000 and that's a Bloomberg business flash. Now here's Michael Barr 0:13:36.040 --> 0:13:39.360 with more on what's going on around the world. Michael Karen, 0:13:39.440 --> 0:13:42.199 thank you very much. Democratic leaders are pushing for changing 0:13:42.240 --> 0:13:44.720 the filibuster rule and the Senate to push forward on 0:13:44.800 --> 0:13:47.880 voting rights legislation. The Senate could vote to change it 0:13:47.920 --> 0:13:51.319 as early as today. President Biden traveled to Georgia to 0:13:51.400 --> 0:13:55.040 voice his support in changing it. Former Senator Harry Reid 0:13:55.080 --> 0:13:57.840 will ly in state at the US Capitol as colleagues 0:13:57.840 --> 0:14:00.959 and friends pay tribute to the Democrat who served five 0:14:01.120 --> 0:14:03.920 terms in the Senate. Read will be honor today in 0:14:04.040 --> 0:14:07.360 the Capitol Rotunda during a ceremony closed to the public. 0:14:07.800 --> 0:14:10.960 NFL News the Giants of Cleaned House firing coach Joe 0:14:11.080 --> 0:14:14.840 Judge the day after general manager Dave Getleman retired. In 0:14:14.960 --> 0:14:18.720 the NBA, the Wizards won, the Warriors lost Global news 0:14:18.760 --> 0:14:21.800 twenty four hours a day on here and on Bloomberg Quicktake, 0:14:22.080 --> 0:14:24.920 powered by more than twenty seven hundred journalist and analysts 0:14:24.960 --> 0:14:28.320 more than a hundred twenty countries. Michael barn This is Bloomberg. 0:14:28.440 --> 0:14:31.360 Nathan Okay, Michael. Thanks at six nineteen on Wall Street 0:14:31.400 --> 0:14:35.040 Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg 0:14:35.120 --> 0:14:37.760 day Break. Let's get more now on FED share Jerome 0:14:37.800 --> 0:14:41.800 Powell's inflation fighting message as we await yet another read 0:14:42.080 --> 0:14:45.360 on consumer prices. Tom Porcelli is with US now, chief 0:14:45.480 --> 0:14:49.040 US economist at RBC Capital Markets. Of course, Tom, we 0:14:49.120 --> 0:14:52.280 heard yesterday Powell tell the Senate Banking Committee that the 0:14:52.280 --> 0:14:55.320 FED will use its tools to get inflation back, that 0:14:55.480 --> 0:14:59.000 to raise interest rates more over time they will Is 0:14:59.040 --> 0:15:05.640 the FED getting ahead of inflation? Uh no, No, I 0:15:05.640 --> 0:15:09.320 think I think they're they're they're really far behind inflation, 0:15:09.360 --> 0:15:11.800 which is why now that share Powell has to act 0:15:11.920 --> 0:15:14.960 or sound so aggressive. So no, I think that this 0:15:15.040 --> 0:15:18.240 is sort of playing catch up. Um. Actually, and so 0:15:18.680 --> 0:15:21.040 you know it's I don't know why anyone is all 0:15:21.520 --> 0:15:24.760 shocked and bothered when you hear Powell talk about or 0:15:25.120 --> 0:15:27.560 stated differently, when you don't hear anyone within the set 0:15:27.600 --> 0:15:29.120 of pushing back on the idea that you're going to 0:15:29.160 --> 0:15:31.360 see at least four rate hikes this year and start 0:15:31.440 --> 0:15:34.800 quantitative tightening this year. I mean, you know that. And 0:15:35.000 --> 0:15:37.800 what's interesting to me about the whole conversation is it's 0:15:37.880 --> 0:15:39.960 great that the market is, you know, sort of you 0:15:40.000 --> 0:15:42.480 know now embraced the idea of four hikes. But I 0:15:42.480 --> 0:15:44.000 think what people have to bear in mind is that, 0:15:44.160 --> 0:15:46.600 you know, that's just four hikes this year. I think 0:15:46.640 --> 0:15:49.120 you can see another four hikes next year. Um. And 0:15:49.160 --> 0:15:50.880 so I think that this is this is in part 0:15:51.200 --> 0:15:53.760 that the catch up element that's going on. Do you 0:15:53.760 --> 0:15:56.480 think the Powell is embracing the idea for hikes? Did 0:15:56.480 --> 0:16:01.880 you get to that point yesterday? I you know, it's 0:16:01.920 --> 0:16:04.080 always hard to get inside someone's mind, but I would 0:16:04.080 --> 0:16:07.000 say this way, Um, you know, there's he had an 0:16:07.000 --> 0:16:09.240 opportunity yesterday to push back on it, and they'll have 0:16:09.320 --> 0:16:11.840 ample opportunity over the coming weeks. I mean, there's an 0:16:11.880 --> 0:16:14.680 FOMC meeting not too far from now. You know, if if, 0:16:14.840 --> 0:16:19.080 if you, if they dislike where the markets head is at, 0:16:19.400 --> 0:16:21.200 they'll push back on it. But just to be clear, 0:16:21.680 --> 0:16:24.160 We've already heard from quite a number of BEET officials 0:16:24.160 --> 0:16:28.760 and I haven't heard any pushing back on it. Good 0:16:28.760 --> 0:16:32.560 point there. What about the balance sheet unwind pal saying 0:16:32.600 --> 0:16:36.200 that that could happen sooner and faster. When do you 0:16:36.200 --> 0:16:41.840 see that's starting to happen. Yeah, so that's another dynamic 0:16:41.880 --> 0:16:44.600 that all happen this year. We we expect that it 0:16:44.640 --> 0:16:47.680 could happen even as early as the first half of 0:16:47.840 --> 0:16:50.160 the year, so it would be sort of after after 0:16:50.200 --> 0:16:53.480 the first hyke. Um. You know, I think again, this 0:16:53.640 --> 0:16:56.160 is just yet another another dynamic that I think is 0:16:56.240 --> 0:16:59.600 so interesting and so different relative to where we were 0:17:00.120 --> 0:17:02.800 after the g f C. Right, the FED is acting, 0:17:03.040 --> 0:17:05.040 and I think this is a really important point for 0:17:05.040 --> 0:17:07.879 for most people to sort of appreciate or understand. The 0:17:07.960 --> 0:17:11.240 economic backdrop today is wildly different than the economic backdrop 0:17:11.240 --> 0:17:13.640 when the FED started. You know, the process of unwanting 0:17:13.640 --> 0:17:15.840 the balance sheet back then, right like we were still 0:17:15.920 --> 0:17:19.119 enduring the jobless recovery. You know, economic activity was you know, 0:17:19.160 --> 0:17:21.760 sort of not moving along at a at a rapid pace. 0:17:22.240 --> 0:17:24.639 None of that is true today. Um, you know, we've 0:17:24.760 --> 0:17:27.680 the labor backdrop is incredibly tight. Um, We've claused that 0:17:27.840 --> 0:17:30.320 most of the lost output. So again I think no 0:17:30.359 --> 0:17:34.040 one should be surprised that this entire process is very 0:17:34.080 --> 0:17:38.640 exhilerated verse post GFC. So then is there a risk 0:17:38.920 --> 0:17:41.240 if it does get more accelerated, that we could be 0:17:41.280 --> 0:17:45.160 in line for a policy mistake from the Fed? Yeah? 0:17:45.200 --> 0:17:47.280 I think look at any time to adjusting policy, I 0:17:47.280 --> 0:17:48.719 think there's always a risk. I mean, I don't think 0:17:48.760 --> 0:17:52.120 that this this time is um uh, well, this time 0:17:52.200 --> 0:17:54.560 is somewhat unique, and I can talk about that in 0:17:54.600 --> 0:17:56.280 the moment. But but yes, I think any time the 0:17:56.320 --> 0:17:58.679 FED is adjusting policy, I think that that is always 0:17:58.680 --> 0:18:01.880 the risk. I think that the risk is bigger this 0:18:01.960 --> 0:18:04.840 time because the FT is so far behind the curve 0:18:05.359 --> 0:18:07.320 um and so if they feel that, if they feel 0:18:07.320 --> 0:18:10.159 compelled to have to sort of, you know, accelerate, you 0:18:10.160 --> 0:18:12.840 know what could have been a gentle hiking cycle, um 0:18:12.880 --> 0:18:15.800 if they started just sooner than sure, I think that 0:18:15.840 --> 0:18:18.760 there's probably more elevation. I don't know if more elevated 0:18:18.840 --> 0:18:21.880 is even the right phrase, but there's there's more risk, 0:18:22.359 --> 0:18:25.240 uh probably this go around than what we've seen certainly 0:18:25.240 --> 0:18:27.840 in recent history. In our last minute, here, Tom, what 0:18:27.880 --> 0:18:31.040 about today's CPI reading a lot of expectation for that 0:18:31.119 --> 0:18:35.680 number seven. Is that where you're at? Ye? Yes, so 0:18:35.920 --> 0:18:38.840 I think in fact, again I think let's look even 0:18:38.880 --> 0:18:42.040 beyond this report. So, yes, this report will see an acceleration. 0:18:42.480 --> 0:18:44.240 I think you've see an acceleration in the in the 0:18:44.280 --> 0:18:47.240 report thereafter. I think you can potentially see one more 0:18:47.280 --> 0:18:51.480 acceleration even two months from now, before you finally start 0:18:51.520 --> 0:18:53.679 to um, you know, sort of stabilize at least to 0:18:53.760 --> 0:18:56.159 some extent um and then you have the sort of 0:18:56.160 --> 0:18:58.840 those hard year in your calms start to eat into 0:18:58.960 --> 0:19:01.000 the year and your page. But again, I think we 0:19:01.040 --> 0:19:03.359 should brace ourselves for at least two or three more 0:19:03.359 --> 0:19:07.120 months of acceleration from here. All right, Tom Porcelli, Chief 0:19:07.200 --> 0:19:11.040 US economist at RBC Capital, thanks for your insights. As always, 0:19:11.119 --> 0:19:15.000 as we do await that CPI data. UH, the expectation 0:19:15.080 --> 0:19:18.639 of seven percent year over year price increases for consumers. 0:19:18.880 --> 0:19:21.760 Will have full coverage for you here on Bloomberg Radio. 0:19:22.080 --> 0:19:25.520 Ahead of all that, SMP futures are up almost seven points, 0:19:25.560 --> 0:19:28.320 staff futures up forty five and NASTAC futures are higher 0:19:28.560 --> 0:19:31.440 by forty four points. Little change to the tenure. Note 0:19:31.440 --> 0:19:33.639 Now the yield one point seven three percent, and the 0:19:33.720 --> 0:19:36.280 yield on the two year is at point nine zero percent. 0:19:36.720 --> 0:19:38.840 Nime X Screwed is hired by six tenths per cent 0:19:38.920 --> 0:19:42.359 or forty seven cents eighty one dollars sixty nine cents 0:19:42.359 --> 0:19:45.239 of barrel comic Good Little change down seventy cents at 0:19:45.320 --> 0:19:50.520 eighteen seventeen eighty announce straight ahead on Bloomberg Daybreaker, recession 0:19:50.640 --> 0:19:53.200 warning to go along with inflation, and a new red 0:19:53.240 --> 0:19:56.440 flag for Johnson and Johnson's COVID vaccine as we checked 0:19:56.480 --> 0:19:59.040 the five things you need to know to start your day. 0:20:00.040 --> 0:20:08.560 Right here on Bloomberg Daybreak. This is Bloomberg Bloomberg eleven three, 0:20:08.560 --> 0:20:10.160 a weather mix of sun and clouds and a high 0:20:10.240 --> 0:20:13.280 near forty today more clouds than sun Tomorrow, low forties 0:20:13.560 --> 0:20:17.000 probably the mostly sunny, breezy, and mid thirties for Friday. 0:20:17.119 --> 0:20:24.320 Right now twenty three degrees broadcasting live from the Bloomberg 0:20:24.400 --> 0:20:28.840 Interactive Brokers Studio in New York. Bloomberg Loving Freedom to Washington, 0:20:28.920 --> 0:20:32.800 d C, Bloomberg On to Boston, Bloomberg one O six 0:20:32.840 --> 0:20:36.080 one to San Francisco, Bloomberg Home sixty to the Country. 0:20:36.160 --> 0:20:39.320 Sirius XM Chado one ninet and around the globe the 0:20:39.359 --> 0:20:43.240 Bloomberg Business app in Bloomberg Radio dot com. This is 0:20:43.280 --> 0:20:51.960 Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. 0:20:51.960 --> 0:20:55.280 I'm Nathan Hagar and I'm Karen Moscow. We're just about 0:20:55.320 --> 0:20:58.400 three hours away from the open of US trading. Time 0:20:58.440 --> 0:21:00.639 for the five things you need to know to start 0:21:00.680 --> 0:21:03.960 your day. Brought to you by Interactive Brokers and Directed 0:21:03.960 --> 0:21:07.280 Brokers Global Analysts. Global Analysts helps you find new global 0:21:07.280 --> 0:21:12.280 investment opportunities, to diversify your portfolio and discover undervalued companies. 0:21:12.320 --> 0:21:15.040 Try Global Analysts today at ib k R dot com. 0:21:15.119 --> 0:21:19.919 Slash g a up first. US futures are moving higher 0:21:19.960 --> 0:21:22.440 after yesterday's rebound on Wall Street. The S and P 0:21:22.600 --> 0:21:25.840 five hundred gained almost one percent and the NASDAC grows 0:21:25.920 --> 0:21:29.240 one point four percent after J. Powell reassured senators about 0:21:29.280 --> 0:21:33.639 the Central Bank's plans to tackle inflation. Will be normalizing policy, 0:21:33.920 --> 0:21:36.680 meaning we're gonna end er asset purchases in March, meaning 0:21:36.680 --> 0:21:38.560 will be raising rates over the course of the year. 0:21:38.920 --> 0:21:41.440 At some point, perhaps later this year, we will start 0:21:41.440 --> 0:21:44.320 to allow the balance sheet to run off. J. Powell 0:21:44.359 --> 0:21:47.080 made the comments during his confirmation hearing for another term 0:21:47.119 --> 0:21:49.680 as FED share. He also made the case that inflation 0:21:49.720 --> 0:21:52.800 will slow on its own as supply chain issues ease 0:21:53.040 --> 0:21:55.600