WEBVTT - Bloomberg Daybreak: February 28, 2022 - Hour 2 (Radio) 0:00:03.320 --> 0:00:06.640 Live from the Bloomberg Interacted Brooker Studios. This is Bloomberg 0:00:06.680 --> 0:00:11.320 Daybreak for Monday, February two. Coming up this hour, Talks 0:00:11.400 --> 0:00:14.400 between Ukraine and Russia set for this morning. Global team 0:00:14.440 --> 0:00:17.680 coverage on the conflict straight ahead, equity sell off, treasury 0:00:17.760 --> 0:00:20.840 yields fall, and the dollar strengthen. Says the West isolates 0:00:20.880 --> 0:00:24.239 Russia and oil source has more sanctions cause fears of 0:00:24.280 --> 0:00:27.960 an energy crisis. It's a milestone for coronavirus man dates 0:00:27.960 --> 0:00:31.000 in New York State, plus North Korea's ramping up tensions 0:00:31.000 --> 0:00:34.480 while the world is focused on Ukraine. Michael Blower. More ahead, 0:00:34.600 --> 0:00:37.200 I'm John stash Our and sports the Nixon Rangers, both 0:00:37.240 --> 0:00:39.840 Boss games with the Gardener shoutout win for the Islanders, 0:00:39.880 --> 0:00:44.960 a big East loss for St. John's. That's all straight 0:00:45.000 --> 0:00:49.200 ahead on Bloomberg day Break on Bloomberg eleven, TREEO, New York, 0:00:49.360 --> 0:00:54.080 Bloomberg nine one, Washington, d C, Bloomberg one O six one, Boston, 0:00:54.240 --> 0:00:58.760 Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:59.120 --> 0:01:01.920 and around the world. Old on Bloomberg Radio dot Com 0:01:01.960 --> 0:01:08.480 and via The Bloomberg Business And Good Morning. I'm Nathan 0:01:08.480 --> 0:01:11.960 Hagar and I'm Karen Moscow. Low Little stocks are tumbling 0:01:11.959 --> 0:01:14.200 and havens are rising. This morning, We're coming up to 0:01:14.240 --> 0:01:15.760 six o one on Wall Street, and we check the 0:01:15.760 --> 0:01:18.760 markets every fifteen minutes throughout the trading day. On Bloomberg 0:01:18.840 --> 0:01:21.080 right now, futures are lower but off their loads of 0:01:21.120 --> 0:01:24.680 the morning. SNP futures are down fifty five points down, 0:01:24.680 --> 0:01:27.679 futures down three hundred sixty nine, and nasday futures down 0:01:27.720 --> 0:01:31.039 one hundred seventy six. Ten year treasury up twelve thirty seconds. 0:01:31.080 --> 0:01:33.720 He had one point nine one percent, and they yield 0:01:33.720 --> 0:01:37.160 on the two year one point five zero percent. Nathan, Karen, 0:01:37.200 --> 0:01:39.399 we begin with the latest out of Eastern Europe. Officials 0:01:39.440 --> 0:01:42.319 from Ukraine are meeting with Russia now and Belarus is 0:01:42.319 --> 0:01:45.640 preparing to send troops into Ukraine. Amy Morris kicks off 0:01:45.640 --> 0:01:49.520 our global team coverage from our Bloomberg newsroom in Washington. 0:01:49.840 --> 0:01:53.080 Hours after Vladimir Putin pled his country's nuclear forces on 0:01:53.160 --> 0:01:57.960 higher alert. Ukrainian officials planted negotiations near the border with Belarus, 0:01:57.960 --> 0:02:00.280 but the Washington Post is quoting an un aimed you 0:02:00.360 --> 0:02:03.920 as official that Belarus is preparing to send troops into 0:02:04.080 --> 0:02:07.600 Ukraine as soon as today to help Russia. Senator Mark 0:02:07.600 --> 0:02:10.760 Warner on the Senate Intelligence Committee tells NBCs meet the press, 0:02:11.040 --> 0:02:14.240 Vladimir Putin may have miscalculated. And when you are an 0:02:14.240 --> 0:02:17.880 authoritarian leader and you have less and less inputs and 0:02:17.919 --> 0:02:20.280 you're only hearing from people that want to say to 0:02:20.320 --> 0:02:23.760 the boss, heye, you're right, I think that leads to misconpulation. 0:02:23.919 --> 0:02:26.000 I think that is what has happened in the case 0:02:26.040 --> 0:02:28.720 of his invasion in Ukraine. The US is now advising 0:02:28.720 --> 0:02:32.440 its citizens to consider leaving Russia immediately, with President Biden 0:02:32.480 --> 0:02:35.200 set to speak with allies on the crisis later today 0:02:35.240 --> 0:02:38.280 in Washington. I may be Morris Bloomberg daybreak. All right, Amy, 0:02:38.320 --> 0:02:41.240 thank you now. More on that meeting between Russia and Ukraine, 0:02:41.240 --> 0:02:44.720 and Ukrainian leader of Vladimir Zelenski is questioning whether much 0:02:44.760 --> 0:02:49.080 may come of the talks. I'll say, frankly, like always, 0:02:49.240 --> 0:02:51.320 I don't believe that much in the result of this meeting. 0:02:51.560 --> 0:02:54.000 But let them try so that not a single citizen 0:02:54.040 --> 0:02:57.079 of Ukraine has any doubt left that I, as President 0:02:57.560 --> 0:03:00.639 used every chance to stop the war. You've a small one. 0:03:01.000 --> 0:03:04.360 Ukrainian President Vladimir's Lenski is asking foreigners to join his 0:03:04.480 --> 0:03:08.080 forces in response to Latia, will allow citizens to voluntarily 0:03:08.160 --> 0:03:11.079 travel to Ukraine to fight Russia. The meantime, care in 0:03:11.120 --> 0:03:13.560 the United Nations Security Council has voted to hold a 0:03:13.680 --> 0:03:16.639 rare General Assembly meeting today over the crisis in Ukraine. 0:03:16.639 --> 0:03:19.600 Bloomberg's Ed Baxter has the story, this is an attempt 0:03:19.600 --> 0:03:23.200 by the Nations to further isolate Russia. US Ambassador to 0:03:23.240 --> 0:03:26.280 the U n Lynda Thomas Greenfield says the urgent response 0:03:26.360 --> 0:03:30.280 came as Vladimir Putin put his nuclear program on high alert, 0:03:30.480 --> 0:03:34.000 even though he is invading a country with no nuclear 0:03:34.040 --> 0:03:38.880 weapons and is under no threat from NATO, a defensive 0:03:38.880 --> 0:03:43.360 alliance that will not fight in Ukraine. The only vote 0:03:43.360 --> 0:03:46.320 against holding the assembly was Russia, but it does not 0:03:46.440 --> 0:03:50.440 count as a veto because it's considered a procedural meeting. 0:03:50.960 --> 0:03:54.120 In San Francisco, I'm at Baxter Bloomberg Daybreak. All right, 0:03:54.120 --> 0:03:56.000 and thank you well. Western Nations have a great to 0:03:56.080 --> 0:03:59.520 unleash new sanctions to further isolated Russia's economy, and Bloomberg's 0:03:59.520 --> 0:04:03.200 down Tuck continues our Global team coverage live in New York, 0:04:03.320 --> 0:04:06.360 John Karen. Some Russian banks will be excluded from the 0:04:06.440 --> 0:04:09.880 Swift messaging system, which is used to conduct trillions of 0:04:09.920 --> 0:04:14.360 dollars worth of transactions. The European Commission President or Sela Underland, 0:04:14.520 --> 0:04:18.080 made the announcement over the weekend. Cutting banks off will 0:04:18.120 --> 0:04:22.360 stop them from conducting most of their financial transactions worldwide 0:04:22.640 --> 0:04:27.279 and effectively block Russian exports and inputs. The decision to 0:04:27.279 --> 0:04:30.200 cut off banks from Swift marks a rapid escalation for 0:04:30.200 --> 0:04:32.520 the US and its allies, who has said such a 0:04:32.520 --> 0:04:35.680 move was a nuclear option. In Russia's central Bank will 0:04:35.680 --> 0:04:39.240 now also be prevented from deploying its international reserves. The 0:04:39.279 --> 0:04:41.560 decision to hit the central bank is a first for 0:04:41.600 --> 0:04:44.320 an economy the size of Russia's. It could lead to 0:04:44.400 --> 0:04:48.159 massive bank runs and shake Russia's financial system to the core. 0:04:48.600 --> 0:04:51.880 Live in New York, I'm John Sucker, Bloomberg Daybreak. All right, John, Thanks, 0:04:51.880 --> 0:04:53.599 and we are seeing the conflict in Ukraine have a 0:04:53.680 --> 0:04:56.760 major impact on equities and the Russian ruble. This morning. 0:04:56.760 --> 0:05:00.520 Bloomberg's Max Ramsey continues our global team coverage line from London. 0:05:00.560 --> 0:05:03.600 Good morning, Max, Good morning Nathan and Karen. Yes, these 0:05:03.600 --> 0:05:06.039 sanctions bringing a big risk off move and a lot 0:05:06.080 --> 0:05:08.760 more volatility. We are off session lows, but still to 0:05:08.800 --> 0:05:12.279 the downside across European stocks before one point three percent 0:05:12.320 --> 0:05:14.480 on the stock six hundred, the foot See one hundred 0:05:14.520 --> 0:05:17.200 down one percent, and the docks in Germany leads losses, 0:05:17.240 --> 0:05:20.520 down two point two percent. Russia's stock market has not 0:05:20.720 --> 0:05:23.280 opened today, but in the assets that are trading real 0:05:23.400 --> 0:05:27.080 paralysis as sanctions hit the country's financial system. The ruble 0:05:27.160 --> 0:05:29.480 hit an all time low against the dollar earlier. Right 0:05:29.520 --> 0:05:32.719 now trading at around a one one hundred to the dollar. 0:05:32.920 --> 0:05:35.279 It started the year at seventy five. We also track 0:05:35.320 --> 0:05:38.479 the fallout across the energy space. BP shares down five 0:05:38.520 --> 0:05:41.240 point three percent in London trading today, they announced they 0:05:41.279 --> 0:05:44.160 would exit their steak in Russian state or state owned 0:05:44.160 --> 0:05:47.520 oil producer Rosneft. Live in London, Max Ramsey bloom Bag 0:05:47.600 --> 0:05:50.200 daybreak right, Max, thank you well. Oil is soaring as 0:05:50.320 --> 0:05:52.960 energy markets are thrown into a state of disarray. Checking 0:05:52.960 --> 0:05:55.280 prices right now now, I'm ex scrude oil is at 0:05:55.320 --> 0:05:59.000 four point two per cent, they said five cents of 0:05:59.080 --> 0:06:01.480 barrel and brent is that more than four percent as 0:06:01.480 --> 0:06:05.320 well at one ninety seven cents. Bloomber's Rerneda Young joins 0:06:05.400 --> 0:06:07.920 US live with more. Good Morning Nia, Good morning Karen. 0:06:08.000 --> 0:06:11.680 Brent Crew jumped more than seven percent overnight before pulling 0:06:11.720 --> 0:06:14.600 back to trade around one and three dollars of barrel. 0:06:14.960 --> 0:06:17.960 The oil supply is already struggling to meet demand from 0:06:17.960 --> 0:06:21.680 rebounding economies, and any disruptions from Russia, which is the 0:06:21.680 --> 0:06:26.560 world's number three producer, could exacerbate conditions. Meantime, China and 0:06:26.600 --> 0:06:30.400 other buyers have paused purchases of Russia's flagship oil Grade, 0:06:30.760 --> 0:06:34.240 and some Asian customers are frantically trying to secure more 0:06:34.400 --> 0:06:37.600 Middle Eastern crude. Live in New York. I'm gonna need 0:06:37.600 --> 0:06:39.280 a young bloom bark day break, all right, we need 0:06:39.320 --> 0:06:41.680 a thanks. There's even more fallout from the Russian invasion. 0:06:41.680 --> 0:06:44.080 The Bank of Russia more than doubled its key interest 0:06:44.160 --> 0:06:46.360 rate overnight to the highest in almost two decades. The 0:06:46.440 --> 0:06:50.800 rate will increase from nine and a half to and back. 0:06:50.800 --> 0:06:53.440 Here in the US, Nathan Fed Chair J. Powell must 0:06:53.480 --> 0:06:56.839 strike a delicate balance before Congress this week. Pawell deliver 0:06:56.920 --> 0:07:00.599 semi annual testimony on Wednesday, and unlikely in horse recent 0:07:00.640 --> 0:07:03.280 signals from his colleagues at the Federal race interest rates 0:07:03.320 --> 0:07:06.320 in March at the same time, Russia's invasion has injected 0:07:06.320 --> 0:07:10.280 a dose of uncertainty again. Futures are lower. SMP futures 0:07:10.280 --> 0:07:13.440 down fifty six points down, futures down three hundred sixty nine, 0:07:13.720 --> 0:07:16.320 Nasdack futures down one hundred eighty two. Straight ahead, your 0:07:16.360 --> 0:07:19.800 latest local headlines, plus a check of sports. This is Bloomberg. 0:07:23.200 --> 0:07:26.080 It's tring. It's six oh seven on Wall Street, twenty 0:07:26.160 --> 0:07:29.560 seven degrees in Central Park and the Sunrise Highways closed 0:07:29.560 --> 0:07:31.560 both ways in Mary because of a crash. It's at 0:07:31.600 --> 0:07:34.320 Landown Avenue. Michael Bars here with more on what's going 0:07:34.320 --> 0:07:36.160 on in New York and around the world. Michael, thank 0:07:36.200 --> 0:07:39.200 you very much, Nathan. New York's COVID nineteen restrictions in 0:07:39.240 --> 0:07:42.000 the city and around the state will be scaled back 0:07:42.000 --> 0:07:45.240 in the coming days, ending into our school mask mandates. 0:07:45.560 --> 0:07:49.720 Governor Cathy Ocle cited a recent CDC guidance that classified 0:07:49.720 --> 0:07:52.880 New York as low risk for COVID infection. There are 0:07:52.960 --> 0:07:55.880 some states, some counties in the standard where they have 0:07:55.880 --> 0:07:59.520 a higher rate of transmission. We will allow them the 0:08:00.000 --> 0:08:02.880 flexibility to determine what's best for their county. We would 0:08:02.960 --> 0:08:05.080 encourage them to take a look at this and follow 0:08:05.120 --> 0:08:08.000 the CDC, but this will no longer be a mandate. 0:08:08.400 --> 0:08:11.239 Governor Huncle also says New York will also cut back 0:08:11.320 --> 0:08:15.640 requirements to show proof of vaccination in city restaurants, gyms, 0:08:15.640 --> 0:08:18.320 and other venues. Some governors are banning the sale of 0:08:18.400 --> 0:08:21.880 Russian vodka in response to the invasion of Ukraine. It 0:08:22.000 --> 0:08:24.920 comes as New York is among states pledging to welcome 0:08:25.000 --> 0:08:27.880 Ukrainian refugees. Because we have the Statue of Liberty in 0:08:27.920 --> 0:08:30.040 our harbor. This is a point of pride for us 0:08:30.080 --> 0:08:33.199 to welcome all of them. Governor Hocal signed and executive 0:08:33.280 --> 0:08:35.600 order that will result in a review of New York's 0:08:35.600 --> 0:08:40.400 business ties, purchases, and investments possibly connected to Russian entities. 0:08:40.800 --> 0:08:43.760 North Korea says it tested cameras to be installed on 0:08:43.840 --> 0:08:47.320 a spy satellite. Today's announcement comes a day after North 0:08:47.400 --> 0:08:51.280 Korea's neighbors detected a ballistic missile launch. The U N 0:08:51.320 --> 0:08:54.280 and others view a satellite launch by North Korea as 0:08:54.280 --> 0:08:58.040 a cover for tests of missile technology. President Joe Biden's 0:08:58.040 --> 0:09:01.360 approval rating fell to a record low. A New Washington 0:09:01.360 --> 0:09:05.079 Post ABC News poll shows only thirty seven percent approve 0:09:05.120 --> 0:09:07.880 of the job he's doing. In fifty five percent say 0:09:08.000 --> 0:09:10.440 that they disapprove. Ahead of his first State of the 0:09:10.520 --> 0:09:14.439 Union address tomorrow, Judge Katangi Brown Jackson will start paying 0:09:14.440 --> 0:09:17.320 courtesy visits to U. S. Senators this week ahead of 0:09:17.320 --> 0:09:20.200 her confirmation hearing. If approved, she would be the first 0:09:20.200 --> 0:09:23.000 black woman seated on the U. S. Supreme Court. Senate 0:09:23.040 --> 0:09:26.240 Majority Leader Chuck Schumer of New York reacted to President 0:09:26.280 --> 0:09:30.280 Biden Supreme Court nominee, she is just such an outstanding nominee. 0:09:30.280 --> 0:09:33.360 It's amazed me that no one in her past who 0:09:33.400 --> 0:09:35.440 has worked with her, both when she was on the 0:09:35.480 --> 0:09:38.200 private side and then as a judge, has anything bad 0:09:38.240 --> 0:09:42.120 to say about or whether the Democrat, Republican, liberal or conservative. Senator. 0:09:42.200 --> 0:09:45.520 Schumer also says an additional six point four billion dollars 0:09:45.559 --> 0:09:48.400 an emergency aid for Ukraine will be added into an 0:09:48.480 --> 0:09:51.520 upcoming Senate budget bill. Global News twenty four hours a 0:09:51.600 --> 0:09:54.640 day on air, end on Bloomberg Quicktake, powered by more 0:09:54.679 --> 0:09:57.079 than twenty seven under journalist and analyst more than a 0:09:57.120 --> 0:10:00.560 hundred twenty countries. Michael Barr, this is Bloomberg. Thank you 0:10:00.600 --> 0:10:06.800 my call. Come up to six ten on Wall Street 0:10:06.800 --> 0:10:09.000 time for the Bloomberg Sports Update with John Stashi all 0:10:09.040 --> 0:10:11.199 Right Ethan seven days in a row, the two sides 0:10:11.240 --> 0:10:13.920 of the baseball lockout have met. The one yesterday lasted 0:10:14.000 --> 0:10:16.600 six hours, but after each one story is always the same. 0:10:16.640 --> 0:10:19.520 No real progress on the key economic hitches. They'll be 0:10:19.520 --> 0:10:22.000 back for more today, but according to MLB, if they 0:10:22.120 --> 0:10:24.480 don't emerge today with a lock out, any labor deal 0:10:24.559 --> 0:10:26.920 this season will not start on time and will not 0:10:27.000 --> 0:10:29.760 be a hundred and sixty two games at the Garden 0:10:29.840 --> 0:10:32.520 next beaten by Philadelphia one five, one on one. Joe l. 0:10:32.600 --> 0:10:34.880 M Be scored thirty seven points. He went to the 0:10:34.960 --> 0:10:38.280 free throw line twenty seven times. Two Knick centers fouled 0:10:38.280 --> 0:10:40.760 out trying to defend him, and Be made twenty three 0:10:40.760 --> 0:10:43.199 of those fell shots. And the new six are James Harden, 0:10:43.440 --> 0:10:46.240 who engineered that trade out of Brooklyn. Score twenty nine 0:10:46.280 --> 0:10:50.640 at a triple double. We're feeling good with Philly. This 0:10:50.760 --> 0:10:54.840 is my second name month. Uh, but just my body 0:10:54.880 --> 0:10:57.120 feel great and then it feels great. How to choke 0:10:57.200 --> 0:10:59.120 his way honesty and a really really long time. So 0:10:59.360 --> 0:11:03.840 it's just my hop my finnigins in the rim extra stuff. Um, 0:11:03.960 --> 0:11:06.400 this was really great Nick's not doing so hot. They've 0:11:06.400 --> 0:11:08.559 lost fifteen or the last eighteen and the worst of 0:11:08.600 --> 0:11:10.960 the NBA over that time. Lakers not much better, lost 0:11:11.000 --> 0:11:14.080 at home to New Orleans by twenty eight. Dallas came 0:11:14.120 --> 0:11:16.080 from nineteen down in the second half to win at 0:11:16.080 --> 0:11:18.800 Golden State. Rangers were also at the Garden. Quiet night 0:11:18.840 --> 0:11:21.040 for the Blue Shirts. They lost to Vancouver five to two. 0:11:21.040 --> 0:11:24.320 The Islanders afford nothing win at Anaheim. Bad loss for St. 0:11:24.360 --> 0:11:26.280 John's with the Big East Tournament coming next week to 0:11:26.360 --> 0:11:29.600 Red Storm fell at the Fall ninety four Javon Freeman 0:11:29.679 --> 0:11:32.679 Liberty score thirty nine for the Blue Demons. Manhattan lost 0:11:32.720 --> 0:11:35.480 the Fairfield. I wanna beat Ryder. The Gales have dominated 0:11:35.520 --> 0:11:37.800 the MAC, but they'll need to win the upcoming tournament 0:11:37.840 --> 0:11:39.760 to gain entry to the n C Double. As in 0:11:39.800 --> 0:11:42.640 Austrian Steps, Straka came from five shots down to win 0:11:42.679 --> 0:11:46.080 the Hunda Gulf in Palm Beach. John Stash at Bloomberg Sports, 0:11:46.280 --> 0:11:49.240 thank you, john SMP futures down down fifty three points down, 0:11:49.240 --> 0:11:51.920 futures down three to fifty three. Nanstack futures lower by 0:11:51.960 --> 0:11:55.560 a hundred seventy four points. Oil surging this morning. Nimex 0:11:55.559 --> 0:11:58.959 screwed up four and a half percent. The latest on Ukraine. Next, 0:11:59.040 --> 0:12:01.439 with Bloomberg's rons Athosen, we'll look at the oil market 0:12:01.480 --> 0:12:03.800 as well with Stephen Schork of the Short Group. This 0:12:04.160 --> 0:12:09.600 is Bloomberg Bloomberg eleven three oh weather sunny, breezy, mid 0:12:09.640 --> 0:12:13.360 thirties today, partly sunny, mid forties tomorrow him your fifty. 0:12:13.480 --> 0:12:22.400 Mostly sunny by Wednesday. Currently twenties seven degrees in Central Park. Markets, 0:12:22.520 --> 0:12:25.600 headlines and breaking news twenty four hours a day at 0:12:25.600 --> 0:12:29.040 Bloomberg dot com. The Bloomberg Business at and at Bloomberg 0:12:29.080 --> 0:12:38.880 Quicktape is a Bloomberg business lash and I'm fair in Moscow. 0:12:38.920 --> 0:12:41.720 This update brought to you by Interactive Brokers trade crypto 0:12:41.800 --> 0:12:44.199 for less coin with commissions as twelve to eighteen basis 0:12:44.200 --> 0:12:46.360 points and no hidden spreads their mark ups. Learn more 0:12:46.640 --> 0:12:51.440 at ibkr dot com. Slash crypto equities are following sovereign 0:12:51.480 --> 0:12:55.360 bonds rallying. Commodities are surging a bit heightened uncertainty after 0:12:55.440 --> 0:12:59.960 Western nations escalated sanctions on Russia for the invasion of Ukraine, 0:13:00.000 --> 0:13:02.079 and we checked the markets every fifteen minutes throughout the 0:13:02.120 --> 0:13:05.080 training day on bloomberg S and p Future is down 0:13:05.080 --> 0:13:07.680 a sixty point, so they're well off their lows of 0:13:07.679 --> 0:13:10.160 the morning, down one point four percent right now. Now 0:13:10.240 --> 0:13:12.679 Future is down four hundred eight and NASDACK futures down 0:13:12.720 --> 0:13:16.040 one ninety five. The decks in Germany is down to 0:13:16.280 --> 0:13:18.800 and a quarter percent. The ten year treasury of fourteen 0:13:18.840 --> 0:13:22.000 thirty seconds yield one point nine one percent. They yield 0:13:22.080 --> 0:13:25.480 on the two year one point five percent. Nimex crude 0:13:25.480 --> 0:13:27.559 oil is up four and a half percent of four 0:13:27.559 --> 0:13:30.640 dollars eleven cents at ninety five dollars seventy cents a barrel. 0:13:30.840 --> 0:13:33.440 Comes gold up one point one percent of twenty one 0:13:33.440 --> 0:13:36.640 dollar sixty cents at nineteen o nine twenty announced the 0:13:36.679 --> 0:13:39.480 Euro one point one to one four against the dollar, 0:13:39.520 --> 0:13:42.160 British pound one point three four and the ends at 0:13:42.160 --> 0:13:45.640 one fifteen point five six. And checking Bitcoin this morning 0:13:45.720 --> 0:13:48.800 higher by about two point four percent. It's at thirty 0:13:48.800 --> 0:13:52.240 eight thousand, three hundred thirty dollars. That's a bloomberg business flash. 0:13:52.240 --> 0:13:54.320 Now here's Michael Barr with more on what's going on 0:13:54.440 --> 0:13:58.280 around the world. Michael, thank you very much. Karen. Right 0:13:58.320 --> 0:14:01.840 now Ukraine is all ding pea stalks, with Moscow near 0:14:01.880 --> 0:14:05.600 the Belarus border. It comes as President Vladimir Putin dramatically 0:14:05.760 --> 0:14:09.600 escalated East West tensions by ordering Russian nuclear forces on 0:14:09.760 --> 0:14:14.120 high alert in Hong Kong. They are currently grapping with 0:14:14.320 --> 0:14:18.200 the latest of the COVID mandate. Hong Kong reported a 0:14:18.240 --> 0:14:22.040 record high thirty four thousand, four hundred sixty six infections today, 0:14:22.440 --> 0:14:25.600 as deaths continue to climb. In the NBA, the Nick 0:14:25.720 --> 0:14:29.200 Celtics and Warriors lost. In the NHL, the Islanders won, 0:14:29.280 --> 0:14:32.240 the Rangers lost. Global News twenty four hours a day 0:14:32.280 --> 0:14:35.200 on air and on Bloomberg Quicktake, powered by more than 0:14:35.280 --> 0:14:38.920 twenty seven journalists, analysts and more than a hundred twenty countries. 0:14:38.960 --> 0:14:42.160 I'm Michael Bar. This is Bloomberg. Nathan Okay, Michael, thank you. 0:14:42.200 --> 0:14:44.760 At six nineteen on Wall Street Line from the Bloomberg 0:14:44.760 --> 0:14:48.800 Interactive Broker Studios. This is Bloomberg Daybreak, and Bloomberg's executive 0:14:48.920 --> 0:14:52.280 editor for International Relations, Rosalind Matheson joins us as we 0:14:52.320 --> 0:14:55.720 continue following developments in the war in Ukraine. Ros good morning, 0:14:55.760 --> 0:14:58.080 Good to have you with us. We just heard from 0:14:58.080 --> 0:15:01.360 Michael Barr that talks have begun on the Belarusian border 0:15:01.400 --> 0:15:04.800 between Ukrainian and Russian delegations. At the same time, we're 0:15:04.800 --> 0:15:08.960 hearing about continued fierce fighting in some of Ukraine's largest 0:15:09.040 --> 0:15:13.000 northern cities. What's the latest, Well, that's right, those talks 0:15:13.120 --> 0:15:16.480 which we're supposed to start on Sunday have dragged on 0:15:16.520 --> 0:15:20.640 a just now begun in a border area near Bielarus. 0:15:20.680 --> 0:15:24.160 They're at a deputy minister and a ministerial level, which 0:15:24.200 --> 0:15:27.760 is relatively low ball concerning they're supposed to be discussing 0:15:27.960 --> 0:15:31.640 terms here for some sort of peace. What they're probably 0:15:31.640 --> 0:15:33.640 going to talk about is the definition of what it 0:15:33.640 --> 0:15:36.800 would mean for Ukraine to be in quote marks neutral 0:15:37.280 --> 0:15:39.560 in all of this. And when it comes to that question, 0:15:39.600 --> 0:15:42.600 there's a huge gulf between Russia and Ukraine or what 0:15:42.720 --> 0:15:46.120 Ukrainian neutrality would look like. So really these talks are 0:15:46.120 --> 0:15:48.720 going to be pushing uphill from the very beginning to 0:15:48.760 --> 0:15:52.480 find some sort of progress at all, and expectations have 0:15:52.600 --> 0:15:55.080 to be very limited as they sit down to start 0:15:55.120 --> 0:15:58.800 their conversation. Certainly least it allows the Russian president to say, well, 0:15:58.840 --> 0:16:01.800 hang on, I am trying to talks here with Ukraine 0:16:02.000 --> 0:16:04.640 UM and trying to show some sort of negotiation. But 0:16:04.800 --> 0:16:07.280 the likelihood of some sort of progress from this talks 0:16:07.280 --> 0:16:09.880 has to be extremely low. Now when you talk about 0:16:09.880 --> 0:16:12.760 the idea of Ukrainian neutrality, we've heard from the President 0:16:12.800 --> 0:16:16.960 of Ukraine, Voladimir'szlinsky, calling for fast track admission into the 0:16:17.000 --> 0:16:21.520 European Union. What could the potential response from Europe be 0:16:22.200 --> 0:16:25.880 to that. What's the likelihood that we see more diplomatic 0:16:25.920 --> 0:16:29.280 support for Ukraine. Well, that's right, and if anything, that 0:16:29.360 --> 0:16:33.360 just shows Ukraine increasingly wanting to move further towards Europe 0:16:33.400 --> 0:16:36.080 and certainly not to be what you would think of 0:16:36.320 --> 0:16:39.360 as neutral. Um And with those comments this morning, so 0:16:39.760 --> 0:16:43.000 Ukraine has asked for that several times. It's interesting they've 0:16:43.040 --> 0:16:45.320 asked for it again today. Of course, getting into the 0:16:45.320 --> 0:16:49.000 EU as a very long and arduous process. Croatia, which 0:16:49.080 --> 0:16:51.040 was the last to join it, took them ten years 0:16:51.080 --> 0:16:53.360 to get through all the steps to do so. But 0:16:53.400 --> 0:16:56.640 they might be able to take a very preliminary step, 0:16:57.280 --> 0:17:00.880 which in itself would be highly significant, even though full 0:17:00.920 --> 0:17:04.200 EU membership would be some time away. But it's certainly 0:17:04.240 --> 0:17:07.879 interesting timing that the Ukrainian president has raised that again today, 0:17:08.680 --> 0:17:10.199 and at the same time, of course, as we heard 0:17:10.240 --> 0:17:13.440 from Michael barn the news there Russia's president Vladimir Putin 0:17:13.480 --> 0:17:16.840 put his nuclear force on heightened alert over the weekend, 0:17:16.880 --> 0:17:20.200 a eye opening step. To be sure, how is that 0:17:20.240 --> 0:17:23.159 being received in Europe? How seriously are they taking the 0:17:23.240 --> 0:17:32.719 prospect of further escalation into incredibly dire weaponry. Well, certainly 0:17:32.800 --> 0:17:35.399 that's the question. I mean, he put his nuclear forces 0:17:35.440 --> 0:17:38.720 on higher alert, which doesn't suggest, of course, there any 0:17:38.800 --> 0:17:43.640 kind of nuclear action is actually imminent. What it does do, though, 0:17:43.720 --> 0:17:46.120 is again sort of throw that question into the broader 0:17:46.160 --> 0:17:49.520 security architecture for Europe. So you've got a continent that's 0:17:49.560 --> 0:17:52.840 grappling within it with a conflict right on its borders, 0:17:53.560 --> 0:17:56.399 especially out in the east. You've got NATO having moved 0:17:56.680 --> 0:17:58.679 a lot of forces and equipment there to send the 0:17:58.720 --> 0:18:02.040 message to Vladimir Pusian that you may set foot in Ukraine, 0:18:02.040 --> 0:18:04.800 but you won't step step further into Europe, and if 0:18:04.840 --> 0:18:08.760 you do, you'll be in direct confrontation with NATO forces. 0:18:09.119 --> 0:18:11.200 But the whole batch op to this has been efforts 0:18:11.280 --> 0:18:16.119 over years to sort of towards nuclear non proliferation in 0:18:16.160 --> 0:18:19.040 the region, to not have those weapons on the table, 0:18:19.400 --> 0:18:22.639 and certainly, just by even raising the alert, the Russian 0:18:22.680 --> 0:18:25.240 president sang I'm putting it potentially back on the table, 0:18:25.560 --> 0:18:28.720 and that's got to be causing significant unease in European 0:18:28.760 --> 0:18:31.600 capitals and beyond. And we're certainly seeing the unease and 0:18:31.640 --> 0:18:34.239 markets play out this morning with the rubles sinking and 0:18:34.280 --> 0:18:38.240 the flight to safety. What's the risk to the European 0:18:38.320 --> 0:18:42.520 economy of further sanctions on Russia when we're starting to 0:18:42.560 --> 0:18:46.240 see this fallout from the Russian Central Bank being sanctioned 0:18:46.240 --> 0:18:48.719 and the private banks being kicked out of the Swift 0:18:48.760 --> 0:18:52.600 financial system, Well, certainly we want to wait and see 0:18:52.600 --> 0:18:54.879 exactly which banks are going to be kicked out of 0:18:54.960 --> 0:18:57.439 Swift by the US and others, and that will give 0:18:57.520 --> 0:19:00.320 us a broader idea again of how what's bread the 0:19:00.359 --> 0:19:04.240 fallout might be on the European economies, in particularly because 0:19:04.240 --> 0:19:06.840 they're the ones that have the most exposure to Russia, 0:19:06.960 --> 0:19:10.440 lesser of course countries like the US. But we also 0:19:10.480 --> 0:19:12.400 want to see how it affects, for example, the chip 0:19:12.480 --> 0:19:15.680 supply chain, because a lot of chips go to Russia 0:19:15.840 --> 0:19:19.600 from Asia, not just China, but also other countries there 0:19:19.640 --> 0:19:23.320 and if that gets cut off, particularly from Taiwan and Korea. UM, 0:19:23.359 --> 0:19:25.199 you can see a flow and effect of course, on 0:19:25.240 --> 0:19:28.359 the chip supply chain um let alone, the energy issue, 0:19:28.400 --> 0:19:31.560 which is again the big question of Europe's reliance on 0:19:31.680 --> 0:19:34.639 energy supplies. Would Vladimir Putin at some point decide just 0:19:34.720 --> 0:19:37.320 to turn those supplies off. That doesn't seem to have 0:19:37.359 --> 0:19:39.440 happened yet, of course, but it's one of those dangling 0:19:39.560 --> 0:19:42.840 questions that must be in the minds of European official 0:19:42.960 --> 0:19:46.920 So there will be reverberations on the European economy either way. 0:19:46.960 --> 0:19:49.480 And of course we're coming out of a pandemic that's 0:19:49.520 --> 0:19:52.639 caused a huge amount of damage on the economy globally, 0:19:53.280 --> 0:19:55.360 so we need to see exactly how that plays out 0:19:55.400 --> 0:19:59.639 for individual sectors. Bloomberg's Rosalan Mathieson, our executive editor for 0:19:59.680 --> 0:20:02.320 Interinet Eastern Relations. As always, thanks for keeping us up 0:20:02.359 --> 0:20:06.120 to speed on what's happening uh in the crisis in Ukraine. 0:20:06.280 --> 0:20:09.359 As we continue to watch the fallout in markets, we 0:20:09.400 --> 0:20:14.000 are seeing another session where crude oil prices are surging. 0:20:14.119 --> 0:20:17.080 Brent is higher by four point nine percent. Just shy 0:20:17.119 --> 0:20:19.880 of a hundred three dollars of barrel. West Texas Intermediate 0:20:19.920 --> 0:20:22.440 also your broker's global analysts and helps you find a 0:20:22.520 --> 0:20:27.200 global investment opportunities to diversify your portfolio and discover undervalued 0:20:27.240 --> 0:20:30.240 companies that may have greater growth potential. Try ib K 0:20:30.400 --> 0:20:33.680 our Global Analysts today at ibkr dot com slash g 0:20:34.000 --> 0:20:37.120 A we've become with the latest developments in Eastern Europe, 0:20:37.160 --> 0:20:41.000 Interfacts is reporting that talks have started between Russia and Ukraine. 0:20:41.200 --> 0:20:44.679 President Vladimir's Lensky questions whether much will come of it, 0:20:44.720 --> 0:20:46.879 but he feels bound to make an attempt if it 0:20:46.960 --> 0:20:50.200 means a chance at peace. Meantime, Western nations have agreed 0:20:50.280 --> 0:20:54.120 to impose more sanctions him in isolating Russia's economy. Penalties 0:20:54.200 --> 0:20:56.680 have yet to include the energy industry. And here's the 0:20:56.680 --> 0:21:00.600 White House spokesperson Gen Saki, and ourgo sanctions are certainly 0:21:00.640 --> 0:21:02.879 on the table. We have not taken those off, but 0:21:02.960 --> 0:21:04.800 we also want to do that and make sure we're 0:21:04.800 --> 0:21:08.480 minimizing the impact on the global marketplace. White House spokesperson 0:21:08.560 --> 0:21:11.119 Jen Saki made the comments on ABC's This Week or 0:21:11.160 --> 0:21:14.439 and Sundays on Bloomberg rightioll Karen, Fears of an energy 0:21:14.480 --> 0:21:18.120 crisis do have oil surging This morning checking the latest prices, 0:21:18.200 --> 0:21:20.880 nime X crews up four point six percent of four 0:21:20.920 --> 0:21:24.600 dollars nineteen cents at seventy seven cents of barrel. Brent, 0:21:24.720 --> 0:21:27.760 the international benchmark is hired by four point nine hundred 0:21:27.760 --> 0:21:30.880 two dollars sixty eight cents, and Bloomberg's Ranita Young joins 0:21:30.960 --> 0:21:33.439 us live with more. Good morning, Granita, Good morning, Nathan. 0:21:33.440 --> 0:21:37.200 Brent crew dumped more than seven percent overnight before pulling 0:21:37.200 --> 0:21:40.120 back to trade close to a hundred and three dollars 0:21:40.119 --> 0:21:43.120 of barrel. The oil supply was already struggling to meet 0:21:43.160 --> 0:21:47.400 demand from rebounding economies, and any disruptions from Russia, which 0:21:47.400 --> 0:21:51.840 is the world's number three producer, could exacerbate conditions. Meantime, 0:21:51.920 --> 0:21:55.399