WEBVTT - Bloomberg Daybreak: January 7, 2022 - Hour 2 (Radio) 0:00:00.720 --> 0:00:05.840 By from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:00:05.880 --> 0:00:09.840 day Break for Friday, January seven two. Coming up this hour, 0:00:10.119 --> 0:00:13.480 the Northeast faces its first major winter storm of the year. 0:00:13.720 --> 0:00:17.520 Fall Street awaits the highly anticipated December jogerport A top 0:00:17.560 --> 0:00:20.200 fedeficial waighs in on rate heights as soon as March, 0:00:20.640 --> 0:00:23.279 and game stop surges on news that's getting into non 0:00:23.280 --> 0:00:26.720 fungible tokens. Road crews are busy treated streets for the 0:00:26.760 --> 0:00:30.080 snowy morning commute plus its sentencing day in Georgia with 0:00:30.160 --> 0:00:32.200 three white men at the murder of a mod Aubrey, 0:00:32.440 --> 0:00:35.479 I'm Mike ol Blarm more ahead, I'm stay Sharon. Sports, 0:00:35.479 --> 0:00:37.600 A big comeback is shot at the Buzzer and the 0:00:37.720 --> 0:00:40.720 nixt beat the Celtics. The Devil's won, the Rangers walk. 0:00:44.120 --> 0:00:48.680 That's all straight ahead on Bloomberg day Break on Bloomberg eleven, Treeo, 0:00:48.800 --> 0:00:54.120 New York, Bloomberg Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.280 --> 0:00:58.800 Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:59.160 --> 0:01:01.960 and around the world Old on Bloomberg Radio dot Com 0:01:02.000 --> 0:01:09.440 and via the Bloomberg Business. Good Morning, I'm Nathan Hagar 0:01:09.840 --> 0:01:12.880 and I'm Karen Moscow and US futures are higher this 0:01:12.959 --> 0:01:15.560 morning ahead of today's johnser Ford. We're coming up to 0:01:15.600 --> 0:01:17.240 six oh one on Wall Street, and we checked the 0:01:17.280 --> 0:01:20.560 markets every fifteen minutes throughout the trading day. On Bloomberg, 0:01:20.560 --> 0:01:22.880 Guess and D futures have eight points down, futures up 0:01:22.880 --> 0:01:25.920 forty one as day Future is up twenties three. Tenure 0:01:25.959 --> 0:01:28.600 Treasury that'll change. They had one point seven two percent. 0:01:28.680 --> 0:01:31.360 They yield on a two year point eight seven percent 0:01:31.480 --> 0:01:35.360 and bitcoin at forty two thousand, two hundred dollars. Nathan, 0:01:35.400 --> 0:01:37.639 all right, Karl, we'll have more markets in a minute. First, 0:01:37.640 --> 0:01:39.880 a snow storm continues to blank at much of the 0:01:39.880 --> 0:01:42.399 Northeast this morning. Let's get the details and how may 0:01:42.400 --> 0:01:45.760 affect the roads from Bloomberg Meteorologist Rob Caroline. Good morning, Rob, 0:01:45.840 --> 0:01:47.880 Good morning, Nathan. The storm that's in the process of 0:01:47.960 --> 0:01:50.360 developing off the coast of southern New England. While it's 0:01:50.400 --> 0:01:53.080 already brought some snow to the district in Baltimore, though 0:01:53.080 --> 0:01:55.440 the storm is about done there, they'll have very little 0:01:55.440 --> 0:01:57.840 additional accumulations. In fact, the sun will be coming out 0:01:57.880 --> 0:02:00.920 quickly this morning. New York City henty at aditional accumulations 0:02:00.920 --> 0:02:03.360 this morning or under two inches. The snow should be 0:02:03.400 --> 0:02:05.880 done in the Tri State area by about midday, and 0:02:05.880 --> 0:02:07.920 as we head up into Boston there, the storm is 0:02:07.960 --> 0:02:10.800 only getting going now. We'll be dealing with snow heavy 0:02:10.919 --> 0:02:13.640 times through the morning commute and into the midday hours. 0:02:13.919 --> 0:02:16.600 It looks like Boston's probably gonna receive the highest totals 0:02:16.600 --> 0:02:19.600 from this storm. Okay, Rob, so what kind of accumulations 0:02:19.639 --> 0:02:22.040 are we thinking we're gonna get from this storm? Well, Nathan, 0:02:22.080 --> 0:02:24.160 there aren't going to be any additional accumulations of snow 0:02:24.200 --> 0:02:26.440 in the district of Baltimore. The New York City area 0:02:26.520 --> 0:02:28.959 probably comes in around three, maybe as high as six 0:02:28.960 --> 0:02:31.920 inches in some spots. It's Boston that gets the jackpot. 0:02:31.919 --> 0:02:34.200 There'll be four to seven inches in the Boston metro area, 0:02:34.440 --> 0:02:36.320 and there will be some area southwest of Boston that 0:02:36.360 --> 0:02:40.040 could have over nine I'm Rob Caroline Bloomberg. Daybreak. All right, Rob, 0:02:40.040 --> 0:02:42.000 thank you, and I'll be checking in with you all morning. 0:02:42.040 --> 0:02:44.160 But first we turn to the markets. We're capping off 0:02:44.200 --> 0:02:47.679 a volatile week with a highly anticipated jobs report for December. 0:02:47.919 --> 0:02:51.320 Estimates call for payroll gains of four hunt seven thousand. 0:02:51.560 --> 0:02:55.120 Here with Moore is Bloomberg Economics correspondent Michael McKee. Two 0:02:55.240 --> 0:02:58.200 questions hanging over the December payrolls report. Will there be 0:02:58.240 --> 0:03:01.240 an omicron effect? And how the FEDS see the report 0:03:01.240 --> 0:03:04.040 in the context of policy moves. The survey week was 0:03:04.040 --> 0:03:06.680 in the first half of December, before the COVID variant 0:03:06.760 --> 0:03:10.880 dominated the news or infections. ADP says it didn't affect 0:03:10.919 --> 0:03:13.520 hiring all that much, reporting a big gain in leisure 0:03:13.520 --> 0:03:16.680 and hospitality jobs, but the I s M Services Index 0:03:16.919 --> 0:03:20.880 suggests services hiring slowed during the month. The December fifteen 0:03:20.919 --> 0:03:24.280 FED minutes released this week show policymakers felt then the 0:03:24.360 --> 0:03:27.440 US was close to full employment. If that's ratified by 0:03:27.440 --> 0:03:30.000 the monthly jobs report, it may mean the Fed is 0:03:30.040 --> 0:03:34.320 ready to start raising rates. Michael McKey, Bloomberg Daybreak, All right, Mike, thanks, 0:03:34.320 --> 0:03:36.920 So when it comes to FED policy, St. Louis President 0:03:37.040 --> 0:03:39.920 Jim Bullard's weighing and he's enforcing the view rate hikes 0:03:39.960 --> 0:03:44.000 could start this spring. The FC could also begin raising 0:03:44.000 --> 0:03:47.480 the policy rate as early as the March meeting in 0:03:47.600 --> 0:03:51.279 order to be in a better position to control inflation. 0:03:51.520 --> 0:03:53.400 Jim Bullard made the comments to the c f A 0:03:53.520 --> 0:03:55.880 Society in St. Louis. Traditionally, he has been one of 0:03:55.880 --> 0:03:58.640 the most hawkish members of the FED. Jobs matter to 0:03:58.640 --> 0:04:01.600 the Fed, Nathan, but so does the pandemic. Coronavirus cases 0:04:01.640 --> 0:04:04.360 continue to come in her record highs and testing remains 0:04:04.360 --> 0:04:08.040 a challenge. Abbot Laboratory CEO Robert Ford tells US he's 0:04:08.040 --> 0:04:11.440 renting up production of COVID tests. We've seen obviously a 0:04:11.440 --> 0:04:15.920 new variant, a pretty highly transmissible variant, in combination with 0:04:15.960 --> 0:04:17.880 a period of the year where there's a lot of travel, 0:04:18.600 --> 0:04:22.039 Thanksgiving and Christmas, people wanted to get together. Uh, the 0:04:22.080 --> 0:04:25.719 combination of those two factors really had a pretty unprecedented 0:04:25.760 --> 0:04:29.480 demand here. Abbot CEO Robert Ford said the company expects 0:04:29.520 --> 0:04:32.479 to produce seventy million tests this month. Well. Meantime, Karen, 0:04:32.520 --> 0:04:34.560 the White House, and the US Postal Service are making 0:04:34.600 --> 0:04:38.000 final plans to deliver five hundred million test kits to households. 0:04:38.040 --> 0:04:40.160 That's according to The Washington Post, which says they want 0:04:40.160 --> 0:04:42.119 to start shipping tests by the middle of this month. 0:04:42.320 --> 0:04:45.440 An official announcement could come next week. From New York 0:04:45.440 --> 0:04:48.279 to l A Nathan, major metro areas across the country 0:04:48.279 --> 0:04:50.800 are getting hit hard by COVID. Some of the details 0:04:50.800 --> 0:04:54.640 now from Bloomberg's at Bachelor Beginning in Chicago, almost nine 0:04:55.200 --> 0:04:57.839 of the city's ICU beds are occupied. To this canceled 0:04:57.880 --> 0:05:00.440 classes for a third day because of case is and 0:05:00.880 --> 0:05:04.720 disagreement with teachers over COVID tests. Meanwhile, New York City 0:05:04.760 --> 0:05:07.800 expects to have two and a half million more at 0:05:07.839 --> 0:05:10.800 home tests in hand today, but they are going for 0:05:10.880 --> 0:05:14.560 the reopening of schools. In Los Angeles cases of Sideline, 0:05:14.600 --> 0:05:18.120 more than eight hundred police and firefighters in Alaska, airlines 0:05:18.160 --> 0:05:22.040 cut one twenty flights yesterday and according to flight Aware 0:05:22.320 --> 0:05:26.720 and industry wide, almost two thousand flights because of employee 0:05:26.760 --> 0:05:30.440 illness combined with weather in San Francisco. I'm at Baxter 0:05:30.480 --> 0:05:33.279 Bloomberg daybreak, all right, thank you. With flights canceled, the 0:05:33.279 --> 0:05:37.400 travel industry is under pressure again. Marriott president Stephanie Leonard says, 0:05:37.440 --> 0:05:40.320 these are real challenges, but they won't derail the recovery. 0:05:40.640 --> 0:05:43.600 And while there was bumps from Delta, the business came 0:05:43.640 --> 0:05:46.640 back very clear, very quickly when we got past that variant. 0:05:46.800 --> 0:05:50.279 We're anticipating the same thing with with O Macron that 0:05:50.400 --> 0:05:52.120 we will see some bumps in the recovery, and it 0:05:52.160 --> 0:05:54.719 depends we have dirty brands in a hundred and forty countries, 0:05:54.760 --> 0:05:56.840 so we'll see some bumps that we don't think it's 0:05:56.839 --> 0:06:00.200 going to stop the recovery. Marriott president Stephanie Lennar. It's 0:06:00.200 --> 0:06:03.120 made the comments in an interview on Bloomberg Television. Shares 0:06:03.120 --> 0:06:05.200 of Marriott are trading near an all time high to 0:06:05.279 --> 0:06:08.800 start the year. O Macron continues to impact the workplace, Nathan. 0:06:08.839 --> 0:06:11.559 Bank of America is the latest company pushing back return 0:06:11.640 --> 0:06:13.880 to office plans, and we get the story from Bloomberg's 0:06:13.880 --> 0:06:17.559 Turlie Pillett. The company encouraged its US employees to work 0:06:17.600 --> 0:06:21.240 remotely through the week starting January tenth, is the bank 0:06:21.360 --> 0:06:24.600 evaluates its next move. This according to an internal memo 0:06:24.920 --> 0:06:28.040 the firmhood earlier advised workers to stay home through at 0:06:28.080 --> 0:06:31.360 least this week. In the memo, the bank also continued 0:06:31.400 --> 0:06:35.520 to encourage staff to get fully vaccinated and receive booster shots, 0:06:35.920 --> 0:06:40.280 stopping short of implementing a full mandate. In New York, 0:06:40.360 --> 0:06:43.839 Charlie Pellett Bloomberg Daybreak, Thanks Charlie. In the markets today, 0:06:43.839 --> 0:06:47.719 the turbo charged worlds of cryptocurrencies and meme stocks have collided. 0:06:47.760 --> 0:06:50.560 Bloomberg News has learned game Stop plans to launch a 0:06:50.600 --> 0:06:53.200 marketplace for non fungible tokens by the end of the year. 0:06:53.520 --> 0:06:56.599 Companies also in talks with crypto and blockchain companies about 0:06:56.800 --> 0:06:59.719 which tokens could be used on the platform. Shares of 0:06:59.760 --> 0:07:04.640 game Stop are up in early trading. Futures are higher, 0:07:04.839 --> 0:07:08.560 SMP futures up almost nine points, staff futures up, NASTACK 0:07:08.640 --> 0:07:11.840 futures hired by thirty points. The tenure treasury little changed. 0:07:12.160 --> 0:07:14.520 The yield on the tenure note one point seven two 0:07:15.280 --> 0:07:18.640 straight ahead local headlines, check of sports and this wintry weather. 0:07:18.800 --> 0:07:25.239 This is Bloomberg at six o seven on Wall Street. 0:07:25.320 --> 0:07:28.560 Is indeed snowing still twenty nine degrees in Central Park 0:07:28.600 --> 0:07:30.760 and a number of accidents that Peter Van will have 0:07:30.840 --> 0:07:34.000 details on for you shortly. First Michael Barr with what 0:07:34.040 --> 0:07:35.960 else is going on in New York and around the world. 0:07:35.960 --> 0:07:38.600 Good morning, Michael, Good morning, Nathan. Bards of the Dry 0:07:38.640 --> 0:07:42.320 State area are under a winter storm warning. The fast 0:07:42.360 --> 0:07:44.960 moving system is expected to dump up the six inches 0:07:45.000 --> 0:07:47.000 of snow by the end of the morning, but it 0:07:47.080 --> 0:07:51.600 will make the commute a mess. Emergency preparations are underway, 0:07:51.840 --> 0:07:55.600 but with record COVID cases and isolation rate, some departments 0:07:55.800 --> 0:07:59.760 are working at a disadvantage against the incoming weather. Edward Grayson, 0:07:59.840 --> 0:08:02.800 the commissioner of New York's Department of Sanitations, as he 0:08:02.840 --> 0:08:06.040 believes they'll have enough staff to prepare for the storm, 0:08:06.080 --> 0:08:10.320 but they'll have to extend shifts and work around current shortages, 0:08:10.800 --> 0:08:12.600 just like all the every other city. And see, we've 0:08:12.640 --> 0:08:15.040 been definitely hit hard in this recent wave and up 0:08:15.040 --> 0:08:19.760 taking COVID cases. Right now, we're about staffing outage. Sanitation 0:08:19.760 --> 0:08:22.320 Commissioner Grayson says, for now they will be operating in 0:08:22.360 --> 0:08:25.440 twelve hour shifts. It is sentencing day for three white 0:08:25.440 --> 0:08:28.360 men convicted of murder in the deadly chase and shooting 0:08:28.400 --> 0:08:32.000 of Amat Aubrey In November. A Georgia jury found father 0:08:32.080 --> 0:08:36.280 and son greg and Travis McMichael, and their neighbor William Bryan, 0:08:36.360 --> 0:08:40.000 guilty of murder and other crimes in the February killing 0:08:40.080 --> 0:08:43.080 of the twenty five year old black men. University of 0:08:43.120 --> 0:08:47.800 Georgia law chair Emeritus Ron Carlson says Superior Court Judge 0:08:47.840 --> 0:08:52.000 Timothy Walls me will have limited options because murder carries 0:08:52.000 --> 0:08:55.280 a mandatory life sentence in Georgia. The judges options are 0:08:55.400 --> 0:08:58.840 very narrow, but these are very important distinctions. Does he 0:08:59.000 --> 0:09:02.360 levy a sentence of life without parole or life with 0:09:02.480 --> 0:09:06.040 Pearoll Carlson with the University of Georgia says the jury's 0:09:06.120 --> 0:09:10.080 verdict sent a message that vigilante justice will not be tolerated. 0:09:10.400 --> 0:09:12.600 Former New York Governor Andrew Cuomo is sent to make 0:09:12.600 --> 0:09:16.000 a virtual appearance today before an Albany judge, prosecutors and 0:09:16.080 --> 0:09:18.719 moving to dismiss the only criminal charge filed against the 0:09:18.760 --> 0:09:22.560 Democrat in connection with the sexual harassment allegations that drove 0:09:22.640 --> 0:09:25.640 him from office. It accused Cuomo of groping an aid 0:09:25.720 --> 0:09:29.400 in the executive mansion in December of eight months before 0:09:29.400 --> 0:09:32.440 he resigned. Online sports betting in New York is a 0:09:32.559 --> 0:09:36.199 day away from reality. The New York Gaming Commission says 0:09:36.240 --> 0:09:40.080 that it has approved mobile operator licenses for Caesar's DraftKings, 0:09:40.120 --> 0:09:44.080 Van Duel and Bett Rivers Rushed Street Interactive. They can 0:09:44.120 --> 0:09:47.480 begin taking wagers as of nine am local time Saturday. 0:09:47.800 --> 0:09:50.199 Global News twenty four hours a day on air and 0:09:50.400 --> 0:09:53.480 on Bloomberg quick Take, powered by more than twenty seven 0:09:53.840 --> 0:09:56.600 journalist and analysts more than a hundred twenty countries. I'm 0:09:56.600 --> 0:10:04.400 Michael barn This is Bloomberg, Nathan. Thanks Michael. Coming up 0:10:04.440 --> 0:10:06.320 to six ten on Wall Street. Time for the Bloomberg 0:10:06.360 --> 0:10:09.400 Sports Update with John Stshower. Thanks y Thing. An absolutely 0:10:09.559 --> 0:10:12.120 epic game at the Garden. This game had everything, a 0:10:12.240 --> 0:10:14.640 big comeback, the Knicks trail of the Celtics by twenty 0:10:14.679 --> 0:10:16.880 five in the first half, they're still down eighteen and 0:10:16.960 --> 0:10:20.840 the third quarter. A tremendous individual performance. The ex Celtic 0:10:20.920 --> 0:10:24.120 Evan Corny, who had already had two thirty two point 0:10:24.160 --> 0:10:26.679 games versus Boston, went for a career at fourty one. 0:10:26.720 --> 0:10:29.280 He tied a Knicks record with ten three pointers. And 0:10:29.400 --> 0:10:32.600 this game had an amazing finished. Our shotline half court 0:10:32.679 --> 0:10:34.520 left one point five ago a tie game and one 0:10:34.520 --> 0:10:36.679 of five to Barrett one triple right way great for 0:10:36.760 --> 0:10:40.920 the win. Baker is one hit, backed in, Barrett backed 0:10:41.000 --> 0:10:44.160 in and had the Nicks tip point football game at 0:10:44.200 --> 0:10:46.640 the bush Town. Told it on w E P N 0:10:46.760 --> 0:10:49.160 r J. Barrett, who scored thirty two the other night, 0:10:49.200 --> 0:10:50.959 was having a bad game. He had shot three or 0:10:51.000 --> 0:10:53.760 four teen before hitting the game winner. The same two 0:10:53.800 --> 0:10:56.880 teams play again tomorrow night in Boston. The next way 0:10:56.960 --> 0:11:00.160 Milwaukee tonight in Brooklyn, which means Kyrie, you're being not 0:11:00.280 --> 0:11:02.839 play you know the vaccine mandate. You gotta wait till 0:11:02.840 --> 0:11:05.520 the next road game, which is Monday in Rangers on 0:11:05.559 --> 0:11:07.679 the road five streat games and not a good start 0:11:07.720 --> 0:11:10.520 for the trip. At five one loss at Vegas, Rangers 0:11:10.559 --> 0:11:13.200 only had nineteen shots on goal. The Devil's beat Columbus 0:11:13.200 --> 0:11:15.439 three to one. Jack huss In on all three of 0:11:15.559 --> 0:11:18.080 goal and two assist. Eric Shabba has just hired to 0:11:18.080 --> 0:11:21.560 be the Yankees assistant hitting coach. He's already resigned he 0:11:21.679 --> 0:11:24.920 got a better job as the Mets hitting coach. Season 0:11:24.960 --> 0:11:27.480 finales with the Giants and Jets Sunday. The Giants limped 0:11:27.520 --> 0:11:30.320 to the finish, hosting Washington. Patriots fans will root for 0:11:30.320 --> 0:11:33.000 the Jets to upset the Bills in Buffalo and New 0:11:33.000 --> 0:11:36.000 England needs will win in Miami and a Buffalo Laws 0:11:36.000 --> 0:11:38.200 to win the A s t E. John Scotch, Award 0:11:38.280 --> 0:11:41.440 Bloomberg Sports Nathan all Right, John, thanks right now. SMP 0:11:41.600 --> 0:11:44.240 futures are up almost ten point stuff futures of forty four. 0:11:44.320 --> 0:11:47.160 Danstack futures higher by thirty eight points ten, Your treasury 0:11:47.200 --> 0:11:49.640 yield one point seven two per cent, and I'm ex 0:11:49.640 --> 0:11:52.120 screwed up nine tenths per cent or seventy five cents 0:11:52.120 --> 0:11:55.880 at eighty dollars one cents a barrel. Ahead of the 0:11:56.080 --> 0:11:59.640 December payrolls report. We'll get a preview next with Bloomberg 0:11:59.600 --> 0:12:03.199 Economics correspondent Michael McKy. Stay with us. This is Bloomberg 0:12:07.720 --> 0:12:09.959 Bloomberg eleven three oh weather, the winter weather advisory and 0:12:10.000 --> 0:12:12.280 effect all morning. Could see another inch on top of 0:12:12.280 --> 0:12:14.079 the light snow this morning. The high in your thirty 0:12:14.080 --> 0:12:16.959 five degrees, mostly sunny, low thirties tomorrow rain and a 0:12:17.040 --> 0:12:23.400 high near forty on Sunday, currently snow in twenty nine markets, 0:12:23.520 --> 0:12:26.600 headlines and breaking news twenty four hours a day at 0:12:26.600 --> 0:12:30.000 Bloomberg dot Com, the Bloomberg Business at and at Bloomberg 0:12:30.080 --> 0:12:39.319 Quick Tape. This is a Bloomberg Business lash and I'm 0:12:39.400 --> 0:12:41.960 Karen Moscow. US dot index future is on the rise 0:12:42.080 --> 0:12:44.720 this morning, the dollar falling as risk taking returns to 0:12:44.840 --> 0:12:47.559 markets at the end of a turbulent week with investors 0:12:47.600 --> 0:12:50.680 wagh in US employment gains against the federal reserves policy 0:12:50.880 --> 0:12:54.240 tightening lands. We check the markets every fifteen minutes throughout 0:12:54.240 --> 0:12:57.720 the trading day on Bloomberg sp futures of eleven points 0:12:57.720 --> 0:12:59.800 this morning, down futures at forty one as day a 0:12:59.840 --> 0:13:02.080 few years of fifty one, the decks in Germany's down 0:13:02.120 --> 0:13:04.679 a tenth of upper set, and your treasury down Moneth 0:13:04.679 --> 0:13:07.040 thirty second he has one point seven two percent, a 0:13:07.120 --> 0:13:09.960 yield on the two year point eight seven percent nim 0:13:10.000 --> 0:13:12.360 X screwed oils of nine tenths percent or seventy one 0:13:12.360 --> 0:13:15.439 cents at eighty dollar seventeen cents of barrel comic school 0:13:15.440 --> 0:13:19.280 that will change at seventeen eighty nine. The euro one 0:13:19.320 --> 0:13:21.679 point one three oh two against the dollar, British bound 0:13:21.679 --> 0:13:23.720 one point three five four or five, and the NS 0:13:23.720 --> 0:13:26.440 at one fifteen point eight three And checking bitcoin this 0:13:26.520 --> 0:13:29.600 morning moving lower down one point nine percent at forty 0:13:29.679 --> 0:13:32.760 two thousand, three hundred dollars. And that's a Bloomberg business flash. 0:13:32.760 --> 0:13:34.800 Now here's Michael bar with more on what's going on 0:13:34.880 --> 0:13:38.320 around the world. Michael Karen. The Supreme Court is taking 0:13:38.360 --> 0:13:40.839 up two major Biden administration efforts to pump up the 0:13:40.920 --> 0:13:45.720 nation's vaccination rate against COVID nineteen. The justices are hearing 0:13:45.800 --> 0:13:49.240 arguments today about whether to allow the administration to enforce 0:13:49.280 --> 0:13:53.559 a vaccine or testing requirements that applies to large employers 0:13:53.559 --> 0:13:57.640 and a separate vaccine mandate for most healthcare workers. The 0:13:57.679 --> 0:14:00.920 White House and US Postal Service are making final plans 0:14:01.080 --> 0:14:05.079 to deliver five hundred million coronavirus test kits to households. 0:14:05.400 --> 0:14:09.200 The Washington Post reports officials seek to begin shipments by 0:14:09.240 --> 0:14:12.079 the middle of January. In the NBA, the Knicks beat 0:14:12.120 --> 0:14:14.959 the Celtics one oh eight, one oh five. The Warriors lost. 0:14:15.480 --> 0:14:18.640 In the NHL, the Devil's won, the Rangers and Bruins lost. 0:14:18.800 --> 0:14:21.240 Global News twenty four hours a day on air and 0:14:21.360 --> 0:14:25.200 on Bloomberg Quick Take, powered by more than twenty journalists 0:14:25.200 --> 0:14:28.360 and analysts more than a hundred twenty countries. Michael Barr 0:14:28.360 --> 0:14:31.280 and this is Bloomberg. Nathan, Okay, Michael, thank you. It 0:14:31.400 --> 0:14:33.800 is six nineteen on Wall Street Live from the Bloomberg 0:14:33.840 --> 0:14:37.240 Get Directed Brokers Studios. This is Bloomberg Day breaking as 0:14:37.280 --> 0:14:40.520 we await the release of the December payrolls report. Were 0:14:40.600 --> 0:14:44.640 joined this morning by Bloomberg Economics correspondent Michael McKee. Mike, 0:14:44.640 --> 0:14:47.600 good morning. Seems like a lot of economists are expecting 0:14:47.640 --> 0:14:51.280 an upside surprise after this week's blowout a DP number, 0:14:51.440 --> 0:14:53.680 But as we've seen in the past, a DP doesn't 0:14:53.680 --> 0:14:57.760 always line up with what the Labor Department puts out right. Yeah, 0:14:57.760 --> 0:15:02.240 they don't match up in terms of the absolute magnitude. However, 0:15:02.280 --> 0:15:04.640 they do kind of give an idea of the level 0:15:04.680 --> 0:15:08.160 and direction that we're going in a DP. Finding a 0:15:08.200 --> 0:15:11.680 big number for the month of December probably means that 0:15:11.960 --> 0:15:15.400 Wall Street is gonna learn lean towards an upside surprise, 0:15:15.440 --> 0:15:17.120 and that's what we're seeing in the the whisper numbers on 0:15:17.120 --> 0:15:19.880 on Wall Street this morning. The market kind of looking 0:15:19.920 --> 0:15:22.840 for about five hundred thousand. We started the week with 0:15:22.920 --> 0:15:26.000 a look with expectation of the Bloomberg survey of four 0:15:26.040 --> 0:15:28.440 hundred thousands, so we've moved up to four forty seven 0:15:28.440 --> 0:15:31.480 for this morning. Uh, but again Wall Street looking for 0:15:31.520 --> 0:15:34.880 a slightly higher number. And I guess we're wondering whether 0:15:34.920 --> 0:15:36.800 we're gonna start to see a little bit of an 0:15:36.800 --> 0:15:40.280 O Macron effect in this number. I mean, uh, I 0:15:40.320 --> 0:15:44.920 think the December payrolls doesn't necessarily cover when O Macron 0:15:45.120 --> 0:15:49.240 first emerged, but we might see maybe a little bit 0:15:49.240 --> 0:15:51.280 of an effect there. You know, it's hard to be 0:15:51.600 --> 0:15:55.520 hard to tell. The Establishment survey, which counts to the 0:15:55.600 --> 0:15:59.080 number of jobs created or in this case probably jobs restored, 0:15:59.840 --> 0:16:03.240 is taken in the the around the pay period that 0:16:03.320 --> 0:16:06.280 includes the twelfth of the month, so uh, some people 0:16:06.320 --> 0:16:08.760 get paid weekly, some bi weekly, so basically from the 0:16:08.760 --> 0:16:11.160 first of the month to about the seventeenth. And oh, 0:16:11.200 --> 0:16:13.840 Macron didn't really take off until after that. It was 0:16:14.000 --> 0:16:17.720 starting to be in the news, but it wasn't in terms, 0:16:17.720 --> 0:16:20.280 and the case counts weren't so large. So it is 0:16:20.320 --> 0:16:24.720 also possible and this evidence maybe from a DP that 0:16:25.200 --> 0:16:26.880 we could see a higher a bit of a hiring 0:16:27.000 --> 0:16:30.920 surge in some service industry jobs because we were in 0:16:31.000 --> 0:16:34.760 a little interregnum between Delta and O Macron and people 0:16:34.760 --> 0:16:38.920 felt better about going out, which would be interesting to see. 0:16:38.960 --> 0:16:41.680 But it's been really, uh, sort of a challenge to 0:16:42.000 --> 0:16:44.400 gauge the health of the labor market, hasn't it When 0:16:44.400 --> 0:16:49.480 we've seen sort of subdued weekly jobless claims over the 0:16:49.560 --> 0:16:52.600 last several months. At the same time, though, the labor 0:16:52.640 --> 0:16:56.840 force participation rate has really been stuck. This has been 0:16:56.880 --> 0:16:59.520 one of the hardest time periods for economists to figure 0:16:59.520 --> 0:17:01.520 out what's going on because there are no models for 0:17:01.600 --> 0:17:05.160 what's happened shutting down in a direct economy and reopening it. 0:17:05.520 --> 0:17:08.800 As the pandemic continues, and you have a lot of 0:17:08.840 --> 0:17:11.800 people they call it the Great Resignation, who have decided 0:17:11.880 --> 0:17:14.119 they're gonna stay on the sidelines, either permanently or for 0:17:14.240 --> 0:17:16.800 quite some time, either because they were going to retire 0:17:16.840 --> 0:17:20.520 anyways and it's been a baby boomer thing, or because 0:17:20.720 --> 0:17:23.600 they built up enough savings from the government stimulus that 0:17:23.600 --> 0:17:25.800 they can sit on the sidelines until they feel safer 0:17:25.840 --> 0:17:27.879 about going back to work. And of course, now that 0:17:28.040 --> 0:17:29.960 school's back in session, we have a lot of people 0:17:29.960 --> 0:17:33.920 who are concerned about childcare if the schools are closed. 0:17:33.920 --> 0:17:37.080 So a lot of things contribute to making this really 0:17:37.080 --> 0:17:40.080 hard to forecast, and that points to the breakdown of 0:17:40.320 --> 0:17:44.040 ages in the labor force participation rate as well. What's 0:17:44.080 --> 0:17:46.680 the expectation going into this report about how that could 0:17:46.680 --> 0:17:50.000 break down. Well, we're looking for a tick upward to 0:17:50.160 --> 0:17:53.760 sixty one point nine in the labor force participation rate. 0:17:53.800 --> 0:17:56.639 It was almost sixty three before the pandemic began, so 0:17:56.920 --> 0:17:59.840 we've got a ways to go to catch up and 0:18:00.320 --> 0:18:03.600 probably won't be doing that anytime soon, which keeps the 0:18:03.640 --> 0:18:07.560 unemployment rate falling. The biggest departures from the labor force 0:18:07.600 --> 0:18:12.320 are those who are older and older, but the prime 0:18:12.359 --> 0:18:15.200 age workforce has started to come back, and we'll see 0:18:15.240 --> 0:18:17.919 if that trend continues. And what's the trend when it 0:18:17.960 --> 0:18:21.160 comes to wages. We've heard so many reports about businesses 0:18:21.200 --> 0:18:26.240 offering big retention bonuses and raising regular wages as well. 0:18:26.920 --> 0:18:29.240 What are we looking for there? That's the number of 0:18:29.240 --> 0:18:30.879 the FED is going to be really concerned about. Are 0:18:30.880 --> 0:18:33.080 we going to see some kind of a wage price spiral? 0:18:33.160 --> 0:18:36.240 And for that we would need to see continuing increases 0:18:36.359 --> 0:18:38.840 in wages. And it's kind of hard to know because 0:18:38.840 --> 0:18:40.920 we're still trying to get back to where we were 0:18:41.119 --> 0:18:44.119 with jobs. How much of this is a one time 0:18:44.440 --> 0:18:47.879 increase because companies are trying to entice people back to 0:18:48.480 --> 0:18:50.920 uh the office, and how much of it is an 0:18:50.960 --> 0:18:54.520 ongoing We've got to keep raising wages because we can't 0:18:54.520 --> 0:18:56.720 find anybody to work, which means we have to raise 0:18:56.800 --> 0:18:59.480 prices to pay for it. Uh. That's gonna be something 0:18:59.520 --> 0:19:02.440 to keep it out. And in our last thirty seconds here, 0:19:02.480 --> 0:19:04.920 is there a risk that a downside surprise could shake 0:19:04.960 --> 0:19:07.879 the FED when it comes to the path on policy tightening. 0:19:08.240 --> 0:19:10.920 I wouldn't worry too much about a downside surprised because 0:19:10.920 --> 0:19:13.800 the Fed's not tightening yet. It only would push back 0:19:13.880 --> 0:19:17.520 the idea of radio increase in March. But if we 0:19:17.520 --> 0:19:20.600 get a strong upside surprise, then you'll see a lot 0:19:20.640 --> 0:19:24.320 of movement towards pricing in a definite move in March. 0:19:24.720 --> 0:19:29.000 Are all right? Bloomberg Economics correspondent Michael McKee with us 0:19:29.240 --> 0:19:33.199 this morning before the release of the final UH snapshot 0:19:33.440 --> 0:19:37.680 on the US labor market. The December payrolls reporte do 0:19:37.760 --> 0:19:40.600 out at eight thirty am Wall Street Time. Stay with 0:19:40.640 --> 0:19:44.119 Bloomberg Radio and Bloomberg Television for complete coverage of the 0:19:44.200 --> 0:19:48.320 numbers and analysis, including reaction from Labor Secretary Marty Wall. 0:19:48.400 --> 0:19:50.639 She's gonna be joining us around ten am Wall Street 0:19:50.680 --> 0:19:53.200 Time on both Bloomberg Radio and television. You'll definitely want 0:19:53.200 --> 0:19:56.000 to tune in for that conversation. Looking ahead to the market, 0:19:56.040 --> 0:19:59.000 open SMP futures are up eleven points, Staff futures up 0:19:59.040 --> 0:20:02.040 fifty one. NEST future is also higher by fifty one points. 0:20:02.160 --> 0:20:08.399 It turns out this is Bloomberg Bloomberg eleven three oh 0:20:08.440 --> 0:20:11.280 Whether the winter weather advisory continues through the morning. Another 0:20:11.320 --> 0:20:15.120 inch or so of snow possible behind your thirty five 0:20:15.160 --> 0:20:18.439 degrees low thirties tomorrow rain near forty on Sunday, twenty 0:20:18.480 --> 0:20:25.760 nine degrees. Right now, broadcasting live from the Bloomberg Interactive 0:20:25.800 --> 0:20:29.640 Broker Studio in New York, Bloomberg E Living Freedom to Washington, 0:20:29.720 --> 0:20:34.000 d C. Bloomberg to Boston Bloomberg one six one to 0:20:34.080 --> 0:20:37.400 San Francisco Bloomberg and on sixty to the country Sirius 0:20:37.560 --> 0:20:40.080 XM to the one nine and around the globe to 0:20:40.200 --> 0:20:44.040 Bloomberg Business app and Bloomberg Radio dot Com. This is 0:20:44.080 --> 0:20:52.680 Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. 0:20:52.680 --> 0:20:55.840 I'm Nathan Hagar and I'm Karen Moscow. Were just about 0:20:55.840 --> 0:20:58.160 three hours away from the open of US training. Let's 0:20:58.200 --> 0:20:59.560 get you up to date on the news. You need 0:20:59.600 --> 0:21:02.919 to know what this hour. Snow blanketing the Northeast this morning. 0:21:02.960 --> 0:21:06.280 More on that coming up with Bloomberg Meteorologists robbed Caroline. 0:21:06.280 --> 0:21:09.680 But first futures are higher ahead of the December jobs 0:21:09.680 --> 0:21:12.680 Your port economists are forecasting a rebound from last month 0:21:12.840 --> 0:21:15.399 with the game of four hundred forty seven thousand jobs, 0:21:15.400 --> 0:21:18.280 and we get more from Bloomberg's Vinie Del Judas. US 0:21:18.320 --> 0:21:21.040 payroll broke mr Wall Street forecasts in November with a 0:21:21.119 --> 0:21:24.080 tepid Game just two hundred ten thousand, the weekest showing 0:21:24.160 --> 0:21:29.120 since December Bloomberg Economics as the COVID nineteen omicron variant 0:21:29.119 --> 0:21:31.840 could weigh on the December data. At the same time, 0:21:31.840 --> 0:21:35.000 weekly jobless claims remained near a half century low, running 0:21:35.000 --> 0:21:38.280 at two hundred seven thousand, and US job openings have 0:21:38.320 --> 0:21:42.879 been running at all time highs. Bloomberg Daybreak Penny thanks 0:21:42.960 --> 0:21:45.399