WEBVTT - Bloomberg Daybreak: March 30, 2022 - Hour 1 (Radio) 0:00:02.560 --> 0:00:05.880 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:05.960 --> 0:00:09.760 day Break for Wednesday, March two. Coming up this hour, 0:00:10.039 --> 0:00:13.000 questions this morning over RUSSI has promised to scale back 0:00:13.080 --> 0:00:17.360 military operations. The January six Committee discovers big gaps and 0:00:17.440 --> 0:00:21.239 former President Trump's phone logs US future slump after four 0:00:21.320 --> 0:00:23.919 straight days of games, and hackers pull off one of 0:00:23.920 --> 0:00:27.840 the biggest crypto heist ever. Three Buffalo police officers were shot, 0:00:27.880 --> 0:00:30.480 plus the White House wam block President Trump's daughter and 0:00:30.600 --> 0:00:34.240 son in law from testifying before House Committee. Michael barn 0:00:34.360 --> 0:00:37.720 More and John stashdown Sports Kevin Durant led the Nets 0:00:37.760 --> 0:00:40.440 to victory over the Pistons, Chris Cryder and the Rangers 0:00:40.520 --> 0:00:45.320 with a road win at Pittsburgh. That's all straight ahead 0:00:45.400 --> 0:00:49.120 on Bloomberg day Break on Bloomberg Element Tree on New York, 0:00:49.280 --> 0:00:54.000 Bloomberg one, Washington, d C, Bloomberg one, O six one, Boston, 0:00:54.160 --> 0:00:58.680 Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:59.040 --> 0:01:01.760 and around the world. Go on Bloomberg Radio dot Com 0:01:01.880 --> 0:01:08.440 and via the Bloomberg Business Set. Good morning, I'm Nathan 0:01:08.440 --> 0:01:11.880 Hagar and I'm kmeron Moscow and US futures are lower 0:01:11.880 --> 0:01:13.800 this morning. We're coming up to five o one on 0:01:13.800 --> 0:01:16.040 Wall Street, and we check the markets every fifteen minutes 0:01:16.080 --> 0:01:19.240 throughout the trading day on Bloomberg. Right now, SNP futures 0:01:19.280 --> 0:01:23.360 are down seventeen points, DAL futures down one seven and 0:01:23.480 --> 0:01:27.319 NASDAG futures down the seventy two. The ten year treasury 0:01:27.360 --> 0:01:30.080 is up to thirty seconds l two point three eight 0:01:30.120 --> 0:01:33.880 percent yield on the two year two point three zero percent. 0:01:34.319 --> 0:01:36.920 NI back screwed oil is up two point four percent, 0:01:37.000 --> 0:01:39.160 up two dollars fifty two cents and a hundred six 0:01:39.160 --> 0:01:42.080 dollars seventy four cents of barrel. The euro one point 0:01:42.160 --> 0:01:45.360 one three against the dollar. Nathan, Well, Karen, we'll have 0:01:45.400 --> 0:01:47.280 more on markets in a minute, but first let's get 0:01:47.280 --> 0:01:49.560 to the latest on the war in Ukraine. Russia is 0:01:49.600 --> 0:01:52.840 promising to scale back military operations near the capital city 0:01:52.840 --> 0:01:55.080 of Kiev and the city of churning of but there's 0:01:55.120 --> 0:01:58.800 still reports of showing near both cities. President Biden was 0:01:58.840 --> 0:02:01.240 asked whether he thinks the war resending or Rush is 0:02:01.440 --> 0:02:05.240 just buying time. We'll see. I don't read anything into 0:02:05.360 --> 0:02:08.160 until I see what their actions are. We'll see if 0:02:08.160 --> 0:02:10.640 they follow through and with their suggesting, the President Biden 0:02:10.680 --> 0:02:13.040 spoke at the news conference with the Prime Minister Singapore. 0:02:13.120 --> 0:02:16.920 Ukrainian President Vladimir Zelenski also has his doubts. Got more. 0:02:18.000 --> 0:02:19.880 We can say that the signals we hear from the 0:02:19.919 --> 0:02:23.520 talks are positive, but these signals can't silence the explosions 0:02:23.520 --> 0:02:26.680 of Russian shells. President Zelensky says their grounds not to 0:02:26.760 --> 0:02:29.639 trust Russia. A regional governor says the city of Churnhead 0:02:29.680 --> 0:02:33.160 was shelled all night despite Russia's promises, and the United 0:02:33.240 --> 0:02:36.200 Nations now says more than four million refugees have fled 0:02:36.280 --> 0:02:40.200 Ukraine Back in the US, Nathan new revelations tied to 0:02:40.280 --> 0:02:42.760 last year's attack on the Capitol. There are more than 0:02:42.960 --> 0:02:46.400 seven hours of gaps in White House telephone logs from 0:02:46.440 --> 0:02:49.960 the afternoon of January six, and those gaps coinside at 0:02:49.960 --> 0:02:53.440 the same time protesters swarm the US capital. Amy Morris 0:02:53.440 --> 0:02:57.639 has details from our Bloomberg newsroom in Washington. The committee 0:02:57.680 --> 0:03:00.680 investigating the insurrection found a big gap from a little 0:03:00.720 --> 0:03:04.000 after eleven am to about seven pm in the logs 0:03:04.080 --> 0:03:07.560 provided by the National Archives, but there is evidence that 0:03:07.600 --> 0:03:10.800 the president did talk with people inside the Capitol that day, 0:03:11.000 --> 0:03:15.000 including Kevin McCarthy, Jim Jordan's, and Mike Pence calls that 0:03:15.080 --> 0:03:17.720 don't show up on the White House logs. Now, the 0:03:17.720 --> 0:03:20.720 committee is trying to determine if the President bypassed the 0:03:20.720 --> 0:03:24.040 White House system by using a burner phone or his 0:03:24.160 --> 0:03:28.200 AIDS cell phones in Washington. I maybe more as Bloomberg daybreak. 0:03:28.280 --> 0:03:30.720 Okay me, thank you. Let's take a look at markets now. 0:03:30.760 --> 0:03:34.880 Beginning with treasuries, the tenure yield briefly dropped below it's 0:03:34.920 --> 0:03:39.600 two year equivalent yesterday for the first time since that inversions, 0:03:39.680 --> 0:03:42.600 leading to growing calls about the likelihood of a recession 0:03:42.680 --> 0:03:45.480 in the US, but Aaron Brown at Pimco says those 0:03:45.480 --> 0:03:49.680 concerns may be premature. It has been a good predictor 0:03:49.720 --> 0:03:52.440 in the past that recession is coming, but I don't 0:03:52.480 --> 0:03:55.360 think that really tells you anything new. We knew that 0:03:55.440 --> 0:03:59.000 we're relate cycle, and typically the yield curban birds and 0:03:59.040 --> 0:04:01.720 then it takes anywhere from eighteen twenty four months to 0:04:01.760 --> 0:04:05.040 actually move into a recession. So we're still quite a 0:04:05.080 --> 0:04:08.960 ways out until potentially we're going to enter into a recession. 0:04:09.240 --> 0:04:12.600 Pimco fund manager Aaron Brown says, it is more critical 0:04:12.640 --> 0:04:15.480 to look at why the yield curve is inverting. Meantime, 0:04:15.520 --> 0:04:17.320 all eyes are on the Fed. We will hear more 0:04:17.360 --> 0:04:19.640 from the Central Bank later today. Tune in for an 0:04:19.680 --> 0:04:23.480 exclusive interview with Richmond Fed President Tom Barkin. That's coming 0:04:23.520 --> 0:04:25.839 up at ten thirty am All Street Time today on 0:04:25.880 --> 0:04:28.560 Bloomberg Radio and Television. Well, Nathan, when it comes to 0:04:28.680 --> 0:04:31.360 stocks who are coming out four straight days of games, 0:04:31.400 --> 0:04:34.040 the S and P five Hybread closed above the hundred 0:04:34.120 --> 0:04:37.040 level for the first time since mid January. Right now, 0:04:37.080 --> 0:04:39.600 it's down just three percent from an all time high. 0:04:39.880 --> 0:04:43.240 Luca Paolini, as chief strategist at Picked and Asset Management, 0:04:43.600 --> 0:04:46.720 Marcus were significantly were sold for the number of reasons, 0:04:46.760 --> 0:04:50.719 of course, the wor in Ukraine, the federal reserves, weekend data, 0:04:51.160 --> 0:04:53.880 and now everything seems to be not as bad as 0:04:54.240 --> 0:04:56.080 it was, and so I think that there is this 0:04:56.200 --> 0:04:59.960 kind of sort of really friendly LOOKA Paolini at Pick 0:05:00.040 --> 0:05:03.599 Ted Asset Management says despite the rally, he remains conscious. 0:05:03.920 --> 0:05:07.200 Bank of America is also staying cautious. Karenet's analysts worn 0:05:07.200 --> 0:05:10.200 in eleven percent Surgeon stocks over the past two weeks. 0:05:10.440 --> 0:05:13.279 Has the hallmarks of a bear market rally, and it 0:05:13.360 --> 0:05:15.800 might give way to deeper losses. We get the details 0:05:15.839 --> 0:05:19.680 from Bloomberg's Charlie Pellett. Those analysts say warning signs are 0:05:19.800 --> 0:05:25.080 flashing for a market that has climbed despite clearly weaker fundamentals, 0:05:25.120 --> 0:05:28.520 including a Federal Reserve bent on raising rates sharply this 0:05:28.640 --> 0:05:33.039 year the battle persistent inflation. The strategists cautioned that the 0:05:33.080 --> 0:05:36.480 sell off that took the SMP five hundred twelve percent 0:05:36.560 --> 0:05:40.400 from its January record is not over, and sharp rallies 0:05:40.440 --> 0:05:44.040 are typical of volatility and bear markets, with some of 0:05:44.080 --> 0:05:46.800 the biggest on record occurring in the throes of the 0:05:46.880 --> 0:05:51.320 dot com meltdown and the global financial crisis in New York. 0:05:51.400 --> 0:05:54.280 Charlie Pellett, Bloomberg day Break. Sorry Charlie, thank you. But 0:05:54.360 --> 0:05:56.360 let's look at some stocks that are moving. Shares A 0:05:56.440 --> 0:05:58.920 Lulu Lemon rose more than eight percent in late trading 0:05:58.960 --> 0:06:02.840 the Athletic, where tailor delivered a sales forecast that beat estimates. 0:06:03.160 --> 0:06:05.760 Micron shares are out more than four and a half percent. 0:06:05.839 --> 0:06:09.120 The largest US memory chipmaker, gave an upbeat forecast, a 0:06:09.240 --> 0:06:12.320 sign that demand remans strong from data center customers and 0:06:12.320 --> 0:06:15.000 on the flip side. Shares of Chewy are down thirteen 0:06:15.040 --> 0:06:17.480 and a half percent. The online retailer of pet care 0:06:17.560 --> 0:06:20.520 products put out of forecast that fell short of estimates. 0:06:20.760 --> 0:06:23.600 We're also keeping an eye on cryptocurrencies this morning, Karen, 0:06:23.680 --> 0:06:25.760 after what is being called one of the biggest crypto 0:06:25.800 --> 0:06:29.039 attacks ever, and it wasn't discovered for almost a week. 0:06:29.400 --> 0:06:32.560 Let's get the details live from Bloomberg's Fernita Young. Good morning, Granita, 0:06:32.600 --> 0:06:36.400 Good morning, Nathan. Hackers stole about six hundred million dollars 0:06:36.440 --> 0:06:40.200 from a blockchain network connected to the popular Axie Infinity 0:06:40.320 --> 0:06:43.560 online game. They drained what's known as the Ronan bridge 0:06:43.560 --> 0:06:46.240 of close to a hundred seventy four thousand ether and 0:06:46.360 --> 0:06:50.040 almost thirty million U s DC tokens. The so called 0:06:50.040 --> 0:06:53.159 bridge lets people convert tokens into ones that can be 0:06:53.240 --> 0:06:57.240 used on another network. The blockchain that supports Axie Infinity 0:06:57.480 --> 0:07:00.159 says the breach happened in March twenty three, but is 0:07:00.240 --> 0:07:03.840 just discovered yesterday. This attack is the latest to show 0:07:03.839 --> 0:07:07.719 how bridge hecks can threaten the ecosystem of decentralized apps. 0:07:08.279 --> 0:07:10.560 Live in New York. I'm re need a Young Bloomberg 0:07:10.640 --> 0:07:12.400 day break, All right, We need to thank you again. 0:07:12.480 --> 0:07:15.680 Future is lower this morning, straight ahead, your latest local headlines, 0:07:15.760 --> 0:07:23.560 plus a check of sports, and this is Bloomberg. Thanks Caring. 0:07:23.600 --> 0:07:25.559 It's five oh seven on Wall Street where thirty degrees 0:07:25.600 --> 0:07:28.520 in Central Park. Big problems on southbound Route one and nine. 0:07:28.520 --> 0:07:31.880 It is closed for an accident investigation at Woodlawn Avenue. 0:07:31.920 --> 0:07:34.480 We'll get the details in traffic First. Michael Barr has 0:07:34.520 --> 0:07:36.360 more on what's going on in New York and around 0:07:36.400 --> 0:07:38.720 the world. Good morning, Michael, Good morning Nathan. It was 0:07:38.760 --> 0:07:41.880 a wild scene up in Buffalo. Three police officers were 0:07:41.960 --> 0:07:45.840 hit by gunfire after a motorist fled a traffic stop 0:07:46.080 --> 0:07:48.480 and led them on a chase through the city streets. 0:07:48.880 --> 0:07:51.960 The suspected gunman was firing at officers from the Vehicle 0:07:52.240 --> 0:07:55.000 Authority Stay. Officers shot and wounded the driver at an 0:07:55.040 --> 0:07:58.720 intersection in front of a police station. Buffalo Mayor Byron 0:07:58.800 --> 0:08:05.120 Brown very very dangerous situation, and we are very thankful 0:08:05.880 --> 0:08:10.680 that two suspects involved in this situation are in police 0:08:10.720 --> 0:08:14.800 custody are Brown says. The officers injuries were not life 0:08:14.800 --> 0:08:17.920 threatening and no civilians on the street were hit by 0:08:18.040 --> 0:08:21.120 the flying bullets. The White House were not block former 0:08:21.160 --> 0:08:24.320 President Donald Trump's daughter and son in law of Aunca 0:08:24.400 --> 0:08:27.960 Trump and Jared Kushner from testifying to the House committee 0:08:27.960 --> 0:08:32.160 investigating the January six Capital riot. White House spokeswoman Kate 0:08:32.200 --> 0:08:37.120 Beddenfield says the constitutional protections of executive privilege should not 0:08:37.280 --> 0:08:40.640 be used to shield from Congress or the public information 0:08:40.920 --> 0:08:45.240 about an attack on the Constitution itself. Kushner is expected 0:08:45.280 --> 0:08:48.800 to appear voluntarily before the committee this week. A team 0:08:48.840 --> 0:08:52.599 of US airplane accident investigators and technical experts could have 0:08:52.760 --> 0:08:55.760 to China as soon as this week to help unravel 0:08:55.840 --> 0:08:58.680 the mysterious crash of a Boeing seven thirty seven jet 0:08:58.920 --> 0:09:02.079 earlier this month. All one thirty two people on board 0:09:02.080 --> 0:09:05.480 the China Eastern jet were killed. President Joe Biden signed 0:09:05.480 --> 0:09:08.400 a law making lynching a federal hate crime. The President 0:09:08.480 --> 0:09:11.680 said racial hate isn't an old problem. It's a persistent one. 0:09:11.960 --> 0:09:16.720 Hate never goes away. It only hides. It hides under 0:09:16.720 --> 0:09:21.240 the rocks. Given just a little bit of oxygen, it 0:09:21.320 --> 0:09:26.680 comes roaring back out, screaming President Biden. An American astronaut 0:09:26.720 --> 0:09:29.400 who spent nearly a year on the International Space Station, 0:09:29.520 --> 0:09:31.880 is coming back to a world that has seen some 0:09:31.960 --> 0:09:35.880 dramatic changes. Mark Vanda High will be returning to Earth 0:09:35.960 --> 0:09:38.360 and for a time it wasn't clear that the Russians 0:09:38.360 --> 0:09:40.280 would give him a ride home because of the war 0:09:40.320 --> 0:09:44.800 in Ukraine. Before departing the I S S, Russian cosmonaut 0:09:44.800 --> 0:09:50.480 Anti Scarpolof talked about continued cooperation in space. People have 0:09:50.640 --> 0:09:55.560 problem on us on orbit. Yeah, like, uh, You'm not 0:09:55.640 --> 0:09:59.640 like one crew Scarpolof and Vanda High or due to 0:09:59.720 --> 0:10:02.800 land in Kazakhstan. This morning Global News twenty four hours 0:10:02.840 --> 0:10:04.800 a day on the air, end on Bloomberg Quick Take 0:10:04.840 --> 0:10:07.280 Forward by more than seven hundred journalists, analysts more than 0:10:07.280 --> 0:10:10.080 a hundred, twenty countries. Michael Barr, This is Bloomberg, Nathan, 0:10:10.120 --> 0:10:16.640 Thanks Michael. Just about five ten on Lall Street, Time 0:10:16.679 --> 0:10:19.640 for the Bloomberg Sports Upday. Good morning, John Stanshown, Good morning, Nathan. 0:10:19.720 --> 0:10:23.880 Regular seasons winding down, playoff positions being jockeyed. Four Rangers 0:10:23.920 --> 0:10:26.040 would love to have home ice advantage of the first rally. 0:10:26.080 --> 0:10:28.760 Only lost six regulation home games all season. They're battling 0:10:28.840 --> 0:10:31.280 with Pittsburgh and they beat the Penguins three to two 0:10:31.360 --> 0:10:33.720 to move one point ahead. Frank Petronto and Raynge Schneider 0:10:33.800 --> 0:10:37.240 scored second period Chris Cryder early in the third fifth 0:10:37.320 --> 0:10:39.600 goal of the season for Crider. Islanders won four three 0:10:39.600 --> 0:10:42.480 at Columbus, the Nets had to come from behind. In Brooklyn, 0:10:42.480 --> 0:10:46.000 they meet Detroit one thirty three. Kevin Durant scored forty 0:10:46.080 --> 0:10:48.360 one point at the Garden. N I T semi frontal 0:10:48.400 --> 0:10:50.600 wins from Xavier in Texas, A and M. They'll play 0:10:50.640 --> 0:10:53.160 tomorrow for the championship. Could be the last n I 0:10:53.280 --> 0:10:54.959 T game in New York, at least for a while. 0:10:55.040 --> 0:10:58.440 Until last year, the tournament always ended at MSG. Now 0:10:58.480 --> 0:11:00.960 they're gonna move it to other cities and Florida could 0:11:01.040 --> 0:11:02.800 not be win for the met over the Marlins. Other 0:11:02.840 --> 0:11:06.160 home run for Francisco Lindor disappointment in his first season 0:11:06.160 --> 0:11:08.920 as the Mattie's had four home runs in twenties spring 0:11:08.920 --> 0:11:12.240 training at bats Yankees fourteen to two over the Phillies. 0:11:12.240 --> 0:11:15.680 Fourth homer for Kyle Agashayoka. NFL Commissioner Roger get El 0:11:15.720 --> 0:11:18.040 met the media at the owners meetings in Palm Beach. 0:11:18.040 --> 0:11:22.040 Asked about the league possibly suspending quarterback des Shaun Watson 0:11:22.200 --> 0:11:25.880 is still facing twenty two civil lasses for sexual misconduct. 0:11:25.920 --> 0:11:29.040 Are people were working on it. Obviously, you know these 0:11:29.040 --> 0:11:33.560 are serious chargets, so we're looking at this seriously. UM. 0:11:33.640 --> 0:11:37.079 We now have obviously at least resolution from the criminal 0:11:37.120 --> 0:11:40.680 side of it. Obviously there's still civil charges that are 0:11:40.720 --> 0:11:44.000 going on, so our investigators hopefully will have access to 0:11:44.040 --> 0:11:46.959 more information. Watson was recently traded to Cleveland. Whead have 0:11:47.000 --> 0:11:50.120 got a massive new contract. John stash Allard Bloomberg Sports 0:11:50.200 --> 0:11:53.360 Nathan Okay, John, Thanks SMP Future is now down fifteen points. 0:11:53.360 --> 0:11:56.280 SA futures down a hundred nastact futures are by seventy 0:11:56.280 --> 0:11:58.360 one point send your treasury or two point three eight 0:11:58.360 --> 0:12:01.680 percent the two year at two points read zero spread 0:12:01.679 --> 0:12:08.439 of seven basis points. This is Bloomberg Bloomberg eleven three O. 0:12:08.480 --> 0:12:11.080 Weather cloudy. Today's showers possible this afternoon, a high near 0:12:11.120 --> 0:12:13.680 fifty degrees. We could get up near seventy tomorrow with 0:12:13.720 --> 0:12:17.640 more afternoon showers, upper fifties, partly sunny and breezy by Friday. 0:12:17.720 --> 0:12:23.360 Right now thirty degrees in Central Park markets. Headlines and 0:12:23.480 --> 0:12:26.440 breaking news twenty four hours a day at Bloomberg dot 0:12:26.520 --> 0:12:29.680 com for the Bloomberg Business out and at Bloomberg Quick Tape. 0:12:29.920 --> 0:12:39.160 This is a Bloomberg Business Lash and I'm Karen. Moscow 0:12:39.200 --> 0:12:42.640 stocks are falling, energy prices are rising. Is optimism about 0:12:42.640 --> 0:12:45.840 a de escalation of the war in Ukraine fades. Europe 0:12:45.880 --> 0:12:48.680 stock six hundred, snapping a three day winning streak after 0:12:48.720 --> 0:12:51.840 surging to the highest level in five weeks. Yesterday, US 0:12:51.880 --> 0:12:54.839 stock index futures are slipping amid warnings that gains of 0:12:54.880 --> 0:12:57.360 the past two weeks have the hallmarks of a bear 0:12:57.440 --> 0:12:59.920 market rally. We checked the markets every fifteen minutes throughout 0:12:59.920 --> 0:13:02.480 the trading day. On Bloomberg, Guess and p Future is 0:13:02.520 --> 0:13:05.719 down fourteen points down, futures down eighty nine, vast deck 0:13:05.760 --> 0:13:08.480 features down sixty five. The decks in Germany's down one 0:13:08.520 --> 0:13:11.559 point three percent ten Your treasury up one thirty second 0:13:11.640 --> 0:13:14.199 yeld two point three nine percent, yield on the two 0:13:14.280 --> 0:13:17.439 year two point three one percent. NIMEX screwed to oil 0:13:17.600 --> 0:13:20.040 is up two point seven percent of two dollars eighty 0:13:20.040 --> 0:13:22.440 two cents at a hundred seven dollars six cents of barrel. 0:13:22.679 --> 0:13:25.280 Comax school is up three tens percent or six dollars 0:13:25.320 --> 0:13:28.560 ten cents. At nineteen twenty four twenty announced the euro 0:13:28.679 --> 0:13:31.440 one point one eight against the dollar, British bound one 0:13:31.440 --> 0:13:33.760 point three one four or five, the yen at one 0:13:33.800 --> 0:13:37.480 twenty one point six eight, and bitcoin this morning is 0:13:37.559 --> 0:13:40.080 down about a third of a percent at forty seven thousand, 0:13:40.160 --> 0:13:43.360 three hundred ten dollars, and confidence in the Euro Area 0:13:43.360 --> 0:13:45.679 economy fell to the weakest level in a year as 0:13:45.760 --> 0:13:49.400 Russia's invasion of Ukraine fan fears of rising prices. A 0:13:49.480 --> 0:13:52.280 sentiment engaged by the European Commission declined to a hundred 0:13:52.280 --> 0:13:54.880 eight point five in March from one hundred fourteen point 0:13:54.920 --> 0:13:58.040 one the previous month, and inflation expectations jumped to the 0:13:58.120 --> 0:14:02.640 Hyacinths records began. And that's a bloomberg business flash. Now 0:14:02.720 --> 0:14:05.000 here's Michael Barr with more on what's going on around 0:14:05.000 --> 0:14:08.439 the world. Michael, good morning, Good morning, Karen. Russia's pledged 0:14:08.480 --> 0:14:12.400 to scale back some military operations in Ukraine is drawing skepticism. 0:14:12.840 --> 0:14:16.319 Ukrainian President volodimir's Lensky said there was no reason to 0:14:16.360 --> 0:14:20.360 believe Russia's announcement that it would reduce military activity near 0:14:20.400 --> 0:14:23.280 the capital of Kiev given what's happening on the ground. 0:14:23.720 --> 0:14:27.120 Thousands have died, and the UN Refugee Agency says more 0:14:27.160 --> 0:14:30.760 than four million Ukrainians have fled the country. A green 0:14:30.840 --> 0:14:33.520 light has been given to a second Boosters shot of 0:14:33.600 --> 0:14:37.560 the MODERNA and Fiser vaccines where Americans over fifty and 0:14:37.600 --> 0:14:41.520 the immune compromised. The decision comes as there's concern over 0:14:41.520 --> 0:14:44.720 a new COVID nineteen variant. In the NBA, the Nets one, 0:14:44.800 --> 0:14:48.040 the Wizards lost. In the NHL, the Rangers and Islanders won, 0:14:48.280 --> 0:14:51.280 the Bruins lost. Global News twenty four hours a day 0:14:51.360 --> 0:14:54.240 on air and on Bloomberg Quick Take, powered by more 0:14:54.280 --> 0:14:56.960 than twenty hundred journalists and analysts in more than a 0:14:57.000 --> 0:15:00.000 hundred twenty countries. Now, Michael Barr and this is Bloomberg. 0:15:00.360 --> 0:15:02.320 All right, Michael, thank you, Just about five twenty on 0:15:02.360 --> 0:15:05.480 Wall Street Live from the Bloomberg Interactive Broker Studios. This 0:15:05.600 --> 0:15:08.400 is Bloomberg Daybreak and Mark Champion is back with us 0:15:08.400 --> 0:15:11.360 this morning, Bloomberg News senior reporter for International Affairs, as 0:15:11.360 --> 0:15:14.680 we follow the latest on the war in Ukraine. Market morning. 0:15:14.720 --> 0:15:17.000 As you know, there was a lot of market optimism 0:15:17.160 --> 0:15:20.720 yesterday when Russian negotiators said that they would scale back 0:15:20.760 --> 0:15:24.120 military operations near two key cities in Ukraine. But it 0:15:24.200 --> 0:15:27.240 seems like the reaction from just about everyone around the 0:15:27.280 --> 0:15:29.880 world is we'll believe it when we see it. What 0:15:30.080 --> 0:15:34.280 are we seeing at this point? Uh? Well, there was 0:15:34.440 --> 0:15:38.920 fighting as usual overnight, with shelling in different areas around 0:15:39.000 --> 0:15:42.160 Kief and around Chenehof, which is the other city that 0:15:42.520 --> 0:15:44.360 the Russian said they were gonna pull back from, So 0:15:44.720 --> 0:15:46.520 not much sign of any change of a night. That 0:15:46.560 --> 0:15:49.000 wouldn't necessarily mean that the Russians aren't gonna do what 0:15:49.040 --> 0:15:52.800 they said. But more broadly, we know for already about 0:15:52.840 --> 0:15:57.040 two weeks now the Russians have been uh digging in 0:15:57.160 --> 0:16:01.640 around Kief uh and around Chenehoff to kind of more 0:16:01.680 --> 0:16:05.880 defensive positions UM, and that is likely to continue. They've 0:16:05.920 --> 0:16:11.200 been moving units over into Bulous, either to regroup or 0:16:11.240 --> 0:16:16.880 to replenish losses UH. And the question really is uh, 0:16:17.080 --> 0:16:19.000 you know. At the same time, the Russians have said 0:16:19.040 --> 0:16:22.280 that they are going to refocus their efforts on the east, 0:16:22.320 --> 0:16:25.880 in the Donbass region around Mariopo, which is under siege UM, 0:16:25.920 --> 0:16:28.080 and they've been doing that. And the question is whether 0:16:28.240 --> 0:16:34.000 any units that retreat UM out of uh the northern areas, 0:16:34.080 --> 0:16:36.640 whether those are then sent around to the other side 0:16:36.680 --> 0:16:38.880 of the country in the east. So is there any 0:16:38.880 --> 0:16:42.280 reason then to believe that when Russia says that it's 0:16:42.280 --> 0:16:45.360 going to scale back, that that could be a first 0:16:45.360 --> 0:16:49.280 step towards ending this war. I think the senses that 0:16:49.920 --> 0:16:53.880 Russia's It's been very difficult to believe what Russia's said 0:16:54.280 --> 0:16:56.520 up to this point, even before the invasion, when they 0:16:56.520 --> 0:16:59.160 said that they weren't going to evade, and and here 0:16:59.160 --> 0:17:03.720 we are, Uh, that's absolutely right. The Russian defense deputy 0:17:03.720 --> 0:17:05.800 Defense minister who made the announcement, he said this was 0:17:05.840 --> 0:17:09.200 about building trust. Um. That's going to be very hard 0:17:09.240 --> 0:17:13.160 to do, and it will have to be uh trust 0:17:13.240 --> 0:17:16.040 but verify as round the Reagan used to say, um. 0:17:16.119 --> 0:17:20.560 And that is not clear yet. And unfortunately, because the 0:17:20.640 --> 0:17:24.000 Russians at the same time said that they have new 0:17:24.240 --> 0:17:26.800 goals in terms of just where they're going to focus 0:17:26.800 --> 0:17:30.240 their effort. Um, there's there's a lot of skeptical skepticism 0:17:30.280 --> 0:17:32.679 and rightly so. Do we have a sense of from 0:17:32.720 --> 0:17:36.080 the Ukrainian side, what it would take for them to 0:17:36.200 --> 0:17:38.320 trust Russia, what they would need to see on the 0:17:38.400 --> 0:17:42.399 Russian side, Well, essentially they need to see a cease fire. 0:17:42.520 --> 0:17:46.359 They need to see an agreement that Russian troops will leave, 0:17:47.520 --> 0:17:51.480 basically going back to the position where we were before 0:17:51.480 --> 0:17:55.320 the war started on February three. Um, and uh, you 0:17:55.359 --> 0:17:58.439 know that there's no sign that the Russians are willing 0:17:58.480 --> 0:18:03.720 to do that. They goals their stated goals and are 0:18:03.840 --> 0:18:07.720 considerably larger. Um. And if they were to agree to 0:18:07.800 --> 0:18:10.960 do so, it would be essentially it would amount to 0:18:11.000 --> 0:18:14.360 a defeat, which President m put in Is is highly 0:18:14.440 --> 0:18:17.720 unlikely to acknowledge. So um, there is still a pretty 0:18:17.760 --> 0:18:22.920 big divide to to cross. Um, these things get sequenced. 0:18:23.000 --> 0:18:25.240 So what the Ukraine's are trying to do is to 0:18:25.280 --> 0:18:29.360 build some kind of ceasefire humanitarian corridors now and then 0:18:29.720 --> 0:18:32.480 try and leave the really difficult issues for a bit later. 0:18:32.560 --> 0:18:35.359 But it's it's very hard to organize that because some 0:18:35.800 --> 0:18:38.160 each side has to give up some of the leverage 0:18:38.200 --> 0:18:41.800 that they have, uh you know, in order to to 0:18:41.920 --> 0:18:44.920 to do one thing without doing the other. So um, 0:18:44.960 --> 0:18:48.480 that's what we saw yesterday in istan Bull where initially 0:18:48.480 --> 0:18:50.520 there had been hoped there might be a limited cease 0:18:50.560 --> 0:18:53.120 fire and it was was not realized. Only have about 0:18:53.160 --> 0:18:55.080 thirty seconds left here mark where we heard from the 0:18:55.200 --> 0:18:57.520 u N this morning that now more than four million 0:18:57.600 --> 0:19:01.399 refugees have fled Ukraine is Europe able to handle that 0:19:01.480 --> 0:19:04.800 kind of flow. Well, you know we know from the 0:19:04.840 --> 0:19:08.520 pot and it's it's extremely politically difficult. Um and at 0:19:08.520 --> 0:19:11.679 the moment economically Europe is you know, in a difficult place. 0:19:12.359 --> 0:19:15.399 But yes, this is a block of some five hundred 0:19:15.400 --> 0:19:18.720 million people. Um, they can absorb it. It's just going 0:19:18.760 --> 0:19:21.760 to be hot. Thanks for this, as always, Mark Champion 0:19:22.160 --> 0:19:24.879 with us this morning. Mark Champion is senior reporter for 0:19:24.920 --> 0:19:29.120 International Affairs for Bloomberg News. Checking the markets this morning 0:19:29.160 --> 0:19:31.879 ahead of the Wednesday morning open, futures are pulling back, 0:19:31.920 --> 0:19:35.160 with SMP futures now down eleven points, STOW futures down 0:19:35.200 --> 0:19:38.280 seventy two, NASTAD future is down fifty nine points. The 0:19:38.320 --> 0:19:40.920 tenure treasury is down to thirty seconds, the yield two 0:19:40.960 --> 0:19:43.639 point four zero percent. Yield on the two year right 0:19:43.680 --> 0:19:46.760 now two point three one percent. After the brief inversion 0:19:46.840 --> 0:19:49.960 for the two's tens curve yesterday, nime x screwed up 0:19:50.000 --> 0:19:51.960 two and a half percent, or two dollars fifty seven 0:19:51.960 --> 0:19:54.399 cents at a hundred six dollars eighty one cents. The 0:19:54.440 --> 0:19:57.800 barrel just ahead. More on the trust, but verify stance 0:19:58.200 --> 0:20:00.880 when it comes to Russia and seven and the hour 0:20:01.080 --> 0:20:03.440 as seven and a half hour gap in White House 0:20:03.440 --> 0:20:08.840 phone logs. This is Bloomberg Bloomberg eleven three oh weather 0:20:08.880 --> 0:20:12.000 cloudy today, showers possible this afternoon, upper forties for highs. 0:20:12.040 --> 0:20:15.200 We'll get near seventy tomorrow with more afternoon showers possible. 0:20:15.320 --> 0:20:18.320 It'll be partly sunny, breezy, and upper fifties by Friday. 0:20:18.400 --> 0:20:25.119 Right now thirty degrees broadcasting live from the Bloomberg Interactive 0:20:25.200 --> 0:20:29.040 Broker Studio in New York. Bloomberg E Living freo to Washington, 0:20:29.119 --> 0:20:33.240 d C, Bloomberg to Boston, Bloomberg one O six one 0:20:33.359 --> 0:20:36.800 to San Francisco, Bloomberg nun sixteen to the Country, Sirius 0:20:36.960 --> 0:20:40.119 XM to one nineteen and around the globe the Bloomberg 0:20:40.160 --> 0:20:45.640 Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 0:20:50.480 --> 0:20:52.680 It's five thirty on Wall Street. Good morning. I'm Nathan 0:20:52.720 --> 0:20:55.720 Hagar and I'm Teren Moscow, where just about four hours 0:20:55.760 --> 0:20:57.840 away from the open of US trading. Let's get you 0:20:57.840 --> 0:20:59.119 have to date of the news you need to know 0:20:59.200 --> 0:21:02.119 at this hour. Russia is promising to cut back military 0:21:02.160 --> 0:21:06.480 operations near two key cities in Ukraine, including the capital Kiev. 0:21:06.840 --> 0:21:10.000 The pledge comes after the latest round of negotiations, but 0:21:10.040 --> 0:21:12.800 the US and NATO have their doubts. We're still seeing 0:21:12.880 --> 0:21:15.280 fighting to the north and west of Kiev. And here's 0:21:15.280 --> 0:21:18.520 Pentagon's spokesman John Kirby. We're not prepared to call us 0:21:18.560 --> 0:21:21.159 a retreat or even a withdrawal. We think that that 0:21:21.280 --> 0:21:23.399 what they probably have in mind is a repositioning to 0:21:23.440 --> 0:21:27.040 prioritize elsewhere. John Kirby at the Pentagon says air strikes 0:21:27.080 --> 0:21:31.640 on Kiev are still happening, so the threat hasn't radically diminished. Meantime, 0:21:31.640 --> 0:21:35.600 in Ukraine, Karen President Vladimir Zelinski also has his doubts. 0:21:36.960 --> 0:21:39.040 We are seeing all of the risks. Of course, we 0:21:39.080 --> 0:21:41.400 are not seeing grounds to trust the words coming from 0:21:41.440 --> 0:21:44.520 representatives of the country that continues fighting to destroy US. 0:21:44.640 --> 0:21:47.240 President Zelinski says there are grounds not to trust Russia, 0:21:47.280 --> 0:21:50.080 and the regional governor says the city of Chernihiv was 0:21:50.119 --> 0:21:53.800 shelled all night despite Russia's promises. The u N says 0:21:53.840 --> 0:21:56.560 more than four million refugees have now fled Ukraine. That's 0:21:56.600 --> 0:21:59.760 nearly ten percent of the population. Well, nakan Becky, where 0:21:59.760 --> 0:22:02.159 the U West we have new revelations tied to the 0:22:02.240 --> 0:22:04.640 January a six attack on the Capitol, and the House 0:22:04.640 --> 0:22:08.800 committee investigating the insurrection has questions about former President Trump's 0:22:08.840 --> 0:22:12.159 calls that day. They've uncovered a seven hour gap in 0:22:12.200 --> 0:22:15.280 the president's phone logs. The gap covers a period when 0:22:15.400 --> 0:22:18.000 lawmakers were trying to get him to stop the mob. 0:22:18.280 --> 0:22:20.800 Cryptos in focus this morning as well, caring after what's 0:22:20.800 --> 0:22:23.800 being called one of the biggest cryptocurrency attacks ever and 0:22:23.800 --> 0:22:26.280