WEBVTT - Bloomberg Daybreak: October 11, 2022 - Hour 1 (Radio) 0:00:00.720 --> 0:00:04.800 From the Bloomberg Interact Dave Berger Studios. This is Bloomberg 0:00:04.880 --> 0:00:08.680 day Break for Tuesday, October eleven two. Coming up this hour, 0:00:09.000 --> 0:00:12.240 stocks drop and yields rise on concerns the Fed will 0:00:12.240 --> 0:00:15.080 remain hackish. The Bank in England is forced to expand 0:00:15.120 --> 0:00:18.280 its emergency measures to tackle chaos in the bond market. 0:00:18.400 --> 0:00:21.560 The route in chip stocks continues around the world, and 0:00:21.640 --> 0:00:24.680 he Seven leaders way their response to Russia's missile garage 0:00:24.680 --> 0:00:27.160 on Ukraine. The woman has been arrested in the fatal 0:00:27.160 --> 0:00:29.720 attack on a man on a Bronx Bux. Plus a 0:00:29.840 --> 0:00:33.360 feisty debate between the two Senate candidates in Ohio. I'm 0:00:33.360 --> 0:00:36.440 Michael barr More, Ah, I'm John Stash Howard sports that 0:00:36.560 --> 0:00:39.080 Chiefs Rallied the Top the Raiders. The Yankees begin their 0:00:39.120 --> 0:00:42.040 playoff series with Cleveland and the Topeny Night for the Rangers. 0:00:44.520 --> 0:00:47.400 That's all s traded ahead on Bloomberg day Break on 0:00:47.520 --> 0:00:52.000 Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, 0:00:52.479 --> 0:00:56.080 Bloomberg one oh six one, Boston, Bloomberg nine sixties and 0:00:56.120 --> 0:00:59.720 Francisco Sirius x M one nine Team and around the 0:00:59.760 --> 0:01:02.520 World Old on Bloomberg radio dot com and via the 0:01:02.560 --> 0:01:09.640 Bloomberg Business app. Good morning, I'm Nathan Hager and I'm 0:01:09.680 --> 0:01:13.119 Karen Moscow and US dot Index futures are lower this morning. 0:01:13.160 --> 0:01:14.880 We're coming up to five o one on Wall Street 0:01:14.920 --> 0:01:17.080 and we check the markets every fifteen minutes throughout the 0:01:17.080 --> 0:01:19.440 trading day on Bloomberg. U S and P future is 0:01:19.480 --> 0:01:22.960 down thirty four points now futures down two eight and 0:01:23.040 --> 0:01:27.640 NASTAG futures down. In ten year treasury down fifteen thirty seconds, 0:01:27.680 --> 0:01:30.319 you know, three point nine four percent, and they yield 0:01:30.360 --> 0:01:33.200 on the two year four point three two percent, and 0:01:33.319 --> 0:01:36.360 nine x screwed oil is down two point seven percent 0:01:36.520 --> 0:01:40.759 Nathan Karen. Today's dropping futures follows four straight losing sessions 0:01:40.800 --> 0:01:43.640 on Wall Street this morning. Yields on two year treasuries 0:01:43.680 --> 0:01:46.640 are trading at the highest level since two thousand seven, 0:01:46.720 --> 0:01:49.760 and ten yere yields are flirting with four percent thirty 0:01:49.840 --> 0:01:54.040 years searched to their highest since. Jordan Cohn is chief 0:01:54.080 --> 0:01:57.080 investment officer at a c M Funds. A lot of 0:01:57.120 --> 0:01:59.160 these areas of the market and the fixed income market 0:01:59.200 --> 0:02:02.160 are really getting older soldier that come down quite a bit. 0:02:02.280 --> 0:02:04.800 Yields are much higher than we've seen in years, and 0:02:04.840 --> 0:02:06.520 so I think as soon as the market gets a 0:02:06.640 --> 0:02:10.680 spense that inflation is peaking um and and tenure yield 0:02:10.720 --> 0:02:13.000 start to stabilize more, you know, I think there could 0:02:13.000 --> 0:02:15.720 be a lot of good buying opportunities. But for us now, 0:02:15.760 --> 0:02:17.359 we're not going to put the part before the horse. 0:02:17.600 --> 0:02:19.520 Jordan Conn of a c M fund says, the mood 0:02:19.600 --> 0:02:23.040 remains fragile. I had a Thursday's inflation data. Well. As 0:02:23.040 --> 0:02:25.679 for equities, Nathan, perhaps the hardest sector hit in the 0:02:25.760 --> 0:02:28.359 recent sell off has been chip stocks. In fact, more 0:02:28.360 --> 0:02:31.480 than two hundred forty billion dollars in market value has 0:02:31.520 --> 0:02:34.040 been wiped out since the White House impost curbs on 0:02:34.120 --> 0:02:37.960 China's access to semiconductor technology. They get more from Bloomberg's 0:02:38.000 --> 0:02:42.000 Charlie Pellett. The industry sold off globally after fresh US 0:02:42.080 --> 0:02:46.280 curbs on China's access to American technology added to a 0:02:46.360 --> 0:02:50.200 disappointing start to the earning season, stoking concern that the 0:02:50.240 --> 0:02:54.840 industry's downturn is far from over. The Philadelphia Stock Exchange 0:02:54.880 --> 0:02:58.440 Semiconductor Index fell three and a half percent, closing at 0:02:58.520 --> 0:03:02.320 its lowest level since No member of the index has 0:03:02.400 --> 0:03:05.520 dropped nearly ten percent over the past three trading days 0:03:05.800 --> 0:03:09.280 and is now down more than forty so far this year. 0:03:09.960 --> 0:03:13.280 In New York, Charlie Pellette Bloomberg, Debrie. Al Right, Charlie, 0:03:13.320 --> 0:03:15.760 thank you, and the chip sell off continued overnight, leading 0:03:15.760 --> 0:03:18.080 stocks lower in Asia. Let's get more on that from 0:03:18.120 --> 0:03:21.480 Bloomberg's Juliette Sally in Singapore, Good morning, Juliet, Good morning, 0:03:21.560 --> 0:03:23.560 Nathan and Karen. Some of the biggest losses were in 0:03:23.600 --> 0:03:26.639 ship related equities in Japan, South Korea, and Taiwan, where 0:03:26.680 --> 0:03:29.320 traders returned from holidays to join the global sell off 0:03:29.320 --> 0:03:33.160 in semiconductor shares. Taiwan's tie X traded at November twenty 0:03:33.200 --> 0:03:35.839 twenty lows, while t s MC shares fell as much 0:03:35.840 --> 0:03:38.360 as eight and a half percent, the most on record 0:03:38.400 --> 0:03:41.720 to July twenty twenty lows began traded within sight of 0:03:41.800 --> 0:03:44.760 the original level that spurred Japanese authorities to defend the 0:03:44.800 --> 0:03:47.960 currency in September, and they want slid as warri mounts 0:03:47.960 --> 0:03:51.120 at Beijing will uphold its COVID zero policy well after 0:03:51.160 --> 0:03:54.840 the Chinese Communist Party Congress this month. In Singapore, Juliette 0:03:54.840 --> 0:03:57.480 Sally Bloomberg Daybreak, All right, Juliette, thank you well. In 0:03:57.520 --> 0:03:59.760 Europe this morning, the Bank of England has been forced 0:03:59.800 --> 0:04:02.960 to spend its emergency measures as in response to chaos 0:04:02.960 --> 0:04:04.840 and the bond market. And let's go live to London 0:04:04.880 --> 0:04:07.400 and get the latest from Bloomberg's U and Pass. Good morning, 0:04:07.400 --> 0:04:10.440 you w Good morning karenen Nathan. It's the second time 0:04:10.480 --> 0:04:12.760 this week the UK Central Bank has moved to calm 0:04:12.800 --> 0:04:15.680 the bond market. This morning, the banking that expanded the 0:04:15.680 --> 0:04:19.080 scope of its guilt purchases to include inflation linked debt 0:04:19.480 --> 0:04:22.040 in an effort to avert what it called a fire sale. 0:04:22.360 --> 0:04:25.320 The intervention comes after a severe set off on Monday 0:04:25.360 --> 0:04:28.919 that saw UK inflation yields surging by the most on 0:04:29.080 --> 0:04:32.680 record in London, Immune part Sploomberg daybreak, are you and thanks? 0:04:32.720 --> 0:04:35.400 The risk of a global recession is now rising thanks 0:04:35.400 --> 0:04:37.839 to higher rates. That's according to the head of the 0:04:37.839 --> 0:04:42.559 International Monetary Fund and World Bank President David Malpass. There's 0:04:43.120 --> 0:04:45.680 the risk and the real danger of a world recession 0:04:45.839 --> 0:04:50.040 next year. The advanced economies are are slowing in Europe. 0:04:50.160 --> 0:04:53.040 The debt levels for the developing countries are getting more 0:04:53.080 --> 0:04:56.520 and more burdensome. The rise in interest rates puts added 0:04:56.560 --> 0:04:59.640 weight on it, and inflation is still a major problem 0:04:59.720 --> 0:05:03.599 for for everyone, but especially for the poor. Those comments 0:05:03.600 --> 0:05:06.080 from World Bank President David Malpass are being echoed by 0:05:06.160 --> 0:05:10.560 JP Morgan CEO Jamie Diamond. He says here serious headwinds 0:05:10.600 --> 0:05:13.160 are likely to push the U S and global economies 0:05:13.200 --> 0:05:16.400 into recession by the middle of next year. Meantime, Nathan, 0:05:16.400 --> 0:05:19.040 the FED keeps banging the drum for higher rates. Still, 0:05:19.200 --> 0:05:21.919 Vice chair Lyle Brainerd say lays out a case for 0:05:21.960 --> 0:05:25.520 caution as the Central Bank works to curb inflation in 0:05:25.600 --> 0:05:30.719 light of elevated global economic and financial uncertainty. Moving forward 0:05:30.920 --> 0:05:34.280 deliberately and in a data dependent manner will enable us 0:05:34.320 --> 0:05:38.320 to learn how economic activity, employment, and inflation are adjusting 0:05:38.320 --> 0:05:41.880 to the cumulative tightening in order to inform our assessment 0:05:41.960 --> 0:05:44.680 of the path of the policy rate. Fed Vice Chair 0:05:44.760 --> 0:05:47.280 Lyle Brainerd made the comments yesterday at a meeting of 0:05:47.320 --> 0:05:51.400 the National Association for Business Economics in Chicago. Despite some 0:05:51.480 --> 0:05:54.480 coution Karen, it's too early for a FED policy pivot. 0:05:54.520 --> 0:05:57.720 That's according to strategistic Goldman Sachs, who say the economic 0:05:57.720 --> 0:06:00.920 outlook is not bad enough yet and eight markets remain 0:06:01.000 --> 0:06:03.839 two volatile economist predict the FED is on track to 0:06:03.880 --> 0:06:06.920 deliver its fourth straight seventy five basis point hike at 0:06:06.960 --> 0:06:09.320 next month's meeting. Now, let's get the latest on the 0:06:09.400 --> 0:06:12.919 war in Ukraine. Nathan Russia has launched even more strikes 0:06:12.920 --> 0:06:15.279 in the country, just a day after the most intense 0:06:15.320 --> 0:06:18.760 barrages since the early days of the invasion. President Biden 0:06:18.760 --> 0:06:21.040 will speak with a group of seven leaders this morning. 0:06:21.040 --> 0:06:23.760 He's fledging to impose more costs on the Kremlin and 0:06:23.839 --> 0:06:27.040 to keep providing support to Kiev. John Herbs is a 0:06:27.080 --> 0:06:30.320 former US Ambassador to Ukraine and now Senior director of 0:06:30.320 --> 0:06:33.919 the Atlantic Council's Eurasia Center. Who's objective is not to 0:06:33.960 --> 0:06:37.479 take a bit of territory Ukraine's east. Is objective today 0:06:37.520 --> 0:06:41.159 is to take political control of Ukraine. Is objective tomorrow 0:06:41.400 --> 0:06:43.680 once he has Ukraine in his pocket, is to go 0:06:43.760 --> 0:06:47.200 after other states, including Allen NATO Allas. So he is 0:06:47.240 --> 0:06:49.760 coming for our NATO Allas, we are about to defend 0:06:49.960 --> 0:06:53.520 with American troops. Farmer. Ambassador to Ukraine John Herbs spoke 0:06:53.560 --> 0:06:56.719 with our Washington correspondent Joe Matthew on Bloomberg's sound on 0:06:56.800 --> 0:06:59.920 Catch the program weekdays at five pm eastern on Bloomberg right. 0:07:00.600 --> 0:07:03.520 SMP futures right now are down thirty two points. Staff 0:07:03.520 --> 0:07:05.880 futures down two or to thirty eight. Nastack futures are 0:07:05.880 --> 0:07:09.240 lower by nine points. The tenure treasury is down fifteen 0:07:09.279 --> 0:07:13.000 thirty seconds. The yield three point nine four nimex crew 0:07:13.080 --> 0:07:15.600 trading at eighty eight dollar sixty four cents of barrel. 0:07:15.920 --> 0:07:18.760 Local headlines and the check of sports up next. This 0:07:19.240 --> 0:07:24.840 is Bloomberg. He's out five oh seven on Wall Street 0:07:24.840 --> 0:07:27.680 work fifty four degrees in Central Park. Got an issue 0:07:27.720 --> 0:07:30.960 in Neptune, New Jersey. Route thirty five is closed both 0:07:30.960 --> 0:07:33.720 ways by Lake Avenue. Tell you why shortly. First, Michael 0:07:33.720 --> 0:07:35.160 bars here with what else is going on in New 0:07:35.240 --> 0:07:37.560 York and around the world. The morning Michael, Good morning Nathan. 0:07:37.560 --> 0:07:39.760 A woman has been arrested in the fatal stabbing of 0:07:39.760 --> 0:07:42.560 a man during an argument aboard and mt A bus 0:07:42.600 --> 0:07:45.440 in the Bronx. Lamont Barkley, who was fifty five, is 0:07:45.480 --> 0:07:48.200 the eighth person to be killed in the transit system 0:07:48.240 --> 0:07:51.440 this year. The NMPDS has Barkley got into a verbal 0:07:51.480 --> 0:07:53.480 dispute with a man and a woman believed to be 0:07:53.560 --> 0:07:57.160 boyfriend and girlfriend on a bus Sunday night. Authorities say 0:07:57.200 --> 0:08:00.400 the argument escalated and the man stab Barkley multiple times 0:08:00.400 --> 0:08:03.880 in the stomach. Detectives yesterday said forty two year old 0:08:03.880 --> 0:08:06.840 Ebony Jackson was arrested in connection to the stabbing. The 0:08:06.840 --> 0:08:09.320 man is still on the loose. It was a feisty 0:08:09.400 --> 0:08:13.960 debate in Ohio last night between two Senate candidates. Democratic 0:08:13.960 --> 0:08:17.160 Congressman Tim Ryan and Republican j D. Vans were on 0:08:17.200 --> 0:08:21.280 Ohio's Next Our Media. President Trump endorsed Vans. He talks 0:08:21.320 --> 0:08:24.679 about wanting to support a stronger border. He talks about 0:08:24.840 --> 0:08:27.520 wanting to be bipartisan and get things done. Tim, You've 0:08:27.560 --> 0:08:29.840 been in Congress for twenty years, and the border problem 0:08:29.880 --> 0:08:33.959 has got worse and worse and worse. Bryan on his opponent, JD. 0:08:34.160 --> 0:08:40.200 Vans raised money for the legal defense Fund of the insurrectionists. 0:08:40.520 --> 0:08:42.600 This is the kind of extremism, j D, that we 0:08:42.679 --> 0:08:45.000 wholly reject. You have video post. Don't even try to 0:08:45.080 --> 0:08:48.880 The yat the race could determine which party controls the U. S. Senate. 0:08:49.280 --> 0:08:52.920 A pro Russia hacker group that has targeted several government 0:08:52.960 --> 0:08:57.360 websites at second responsibility for coordinated attacks targeting dozens of 0:08:57.440 --> 0:09:01.280 US airports, including LaGuardia. John On hold Quist, head of 0:09:01.520 --> 0:09:06.960 intelligence analysis at cybersecurity firm Mandian, says kill net has 0:09:07.000 --> 0:09:11.320 been targeting mainly US government websites and all the systems globally. Previously, 0:09:11.480 --> 0:09:14.319 they carried out attacks all over Europe. It carried attacks 0:09:14.360 --> 0:09:17.439 in Japan. Even so, it's sort of a global problem, 0:09:17.679 --> 0:09:19.480 but you know, a lot of it is a lot 0:09:19.520 --> 0:09:22.720 of it is tied to the war in Ukraine. Hold 0:09:22.760 --> 0:09:25.960 Quist told ABC no flights were disrupted as a result 0:09:26.000 --> 0:09:29.080 of the attacks. The Supreme Court will hear arguments today 0:09:29.080 --> 0:09:32.480 over at California animal cruelty law that could raise the 0:09:32.480 --> 0:09:35.960 cost of bacon and other pork products nationwide and involves 0:09:35.960 --> 0:09:38.480 the California law that says porks sold in the state 0:09:38.800 --> 0:09:42.880 needs to become from pigs treated humanely. A majority of 0:09:43.000 --> 0:09:47.080 unionized railroad workers voted to reject a tentative labor agreement 0:09:47.360 --> 0:09:50.760 broken in park last month by President Joe Biden. Global 0:09:50.800 --> 0:09:53.160 News twenty four hours a day on air and on 0:09:53.200 --> 0:09:56.800 Bloomberg Quicktake, powered by more than twenty seven hundred journalist 0:09:56.840 --> 0:09:59.640 and analysts more than a hundred twenty countries. Michael Barr 0:09:59.679 --> 0:10:06.800 and this is Bloomberg Nathan, Thanks Michael, going up to 0:10:06.880 --> 0:10:08.920 five ten on Wall Street time for the Bloomberg Sports 0:10:09.000 --> 0:10:11.160 Uptake and morney John stanshow Morning the eighth and the 0:10:11.200 --> 0:10:14.120 Mets post season is over. Now the Yankees post season 0:10:14.240 --> 0:10:16.800 begins Game one with Cleveland ten night. It'll be Garrett 0:10:16.800 --> 0:10:20.680 cole Ver says the Guardians cal Quandrill eighteen years ago. 0:10:20.760 --> 0:10:23.400 His father, Paul was a Yankee reliever who served up 0:10:23.400 --> 0:10:26.320 the David Ortiz game winning omer in Game four the 0:10:26.320 --> 0:10:29.000 Alcs that began that Red Sox come back from pretting 0:10:29.000 --> 0:10:32.079 nothing down. Aaron Boone met the media yesterday was asked 0:10:32.080 --> 0:10:34.240 if the crowd will be like it was when Aaron 0:10:34.360 --> 0:10:37.480 Judge was Jason Roger Magankee Stadium in the playoffs. It's 0:10:37.520 --> 0:10:41.800 gonna be pretty raucous. I would imagine tomorrow night, a 0:10:41.800 --> 0:10:45.280 lot of energy in the building, a lot of anticipation, 0:10:45.480 --> 0:10:48.360 certainly when Aaron's up because he's Aaron Judge and and 0:10:48.760 --> 0:10:50.880 what he can do. But no, I don't think it 0:10:50.880 --> 0:10:54.760 will be necessarily similar to you know, when he was 0:10:54.960 --> 0:10:57.520 sixty sixty one and stuff like that. I think it's 0:10:57.520 --> 0:11:00.199 gonna be the playoffs, the three other division series, all 0:11:00.240 --> 0:11:03.720 just that intro Division, Phillies and Brains in Atlanta, Mariners 0:11:03.760 --> 0:11:06.920 and Astros in Houston thirty nine year old justin Verland. 0:11:06.920 --> 0:11:08.880 It will start for the Astros coming off a brilliant 0:11:08.920 --> 0:11:11.960 regular season, Padres and Dodgers and l A. The Dodgers 0:11:12.360 --> 0:11:15.440 won the season series with San Diego fifteen to four. 0:11:15.800 --> 0:11:18.720 The Mets offseason underway, a lot of decisions to be made. 0:11:18.720 --> 0:11:20.959 Mets could have as many as ten free agents and 0:11:21.040 --> 0:11:24.000 the list will include Jacob de Graham, Edwin Diaz and 0:11:24.120 --> 0:11:26.440 Brandon Nimmo and the last other Rangers. They were losing 0:11:26.440 --> 0:11:28.840 to Tampa Bay and the Stanley Cup Conference Final Rangers 0:11:28.840 --> 0:11:31.360 in lightning tonight at the Garden, the beginning to do 0:11:31.480 --> 0:11:34.319 season wild Monday Night at the Calf, Week five, Raider 0:11:34.360 --> 0:11:37.439 has led the chief seventeen nothing. Casey came back, Patrick 0:11:37.440 --> 0:11:40.840 Mahomes and Travis hel Kelsey Cook hooked up for four touchdowns. 0:11:41.120 --> 0:11:43.559 Raiders scored with the game time TV with four and 0:11:43.600 --> 0:11:45.480 half minutes left, they went for two to get it. 0:11:45.760 --> 0:11:49.600 Chiefs held on to win thirty ton stash were Bloomberg Sports, 0:11:49.640 --> 0:11:52.880 Nathan john thanks SMP Futures Down Down twenty nine points, 0:11:52.880 --> 0:11:55.559 South Futures Down Tuner fifteen nest At futures are lowered 0:11:55.559 --> 0:11:58.720 by eighty two points to ten. Your treasuries down fourteen 0:11:58.800 --> 0:12:03.960 thirty seconds, yield three point nine four. This is Bloomberg 0:12:07.240 --> 0:12:08.880 Bloomberg Day Break, brought to you by the New York 0:12:08.920 --> 0:12:11.080 Community Trust. Your name will live on as a champion 0:12:11.080 --> 0:12:13.040 of the causes you care about for years to come 0:12:13.080 --> 0:12:15.880 through a charitable request to the New York Community Trust. 0:12:16.000 --> 0:12:23.440 Learn more at Philanthropists dot n YC. Markets headlines and 0:12:23.600 --> 0:12:26.880 breaking news twenty four hours a day at Bloomberg dot com, 0:12:26.960 --> 0:12:30.120 the Bloomberg Business At and at Bloomberg Quick Tape. This 0:12:30.480 --> 0:12:39.240 is a Bloomberg Business lash and I'm Carrot Moscow and 0:12:39.360 --> 0:12:42.920 stocks are falling, pressured by rising treasury yields and signs 0:12:42.920 --> 0:12:45.480 that company earnings are set to disappoint. Engage of the 0:12:45.480 --> 0:12:48.120 dollar climbing to the highest this month. The mood is 0:12:48.559 --> 0:12:51.600 fragile ahead of Thursday's US inflation data, with a case 0:12:51.640 --> 0:12:54.280 for another seventy five basis point rate high likely to 0:12:54.320 --> 0:12:57.400 be strong if the reading comes in higher than forecast. 0:12:57.480 --> 0:12:59.480 And we check the markets every fifteen minutes throughout the 0:12:59.480 --> 0:13:03.360 trading day on Bloomberg. SNP futures down twenty eight points down, 0:13:03.360 --> 0:13:06.720 futures down two hundred five nasdack futures down eighty five. 0:13:06.800 --> 0:13:09.160 The decks in Germany's down eight tens of a percent. 0:13:09.480 --> 0:13:12.160 Ten year treasury down fourteen thirty seconds, you know, three 0:13:12.200 --> 0:13:14.640 point nine four percent they yield on the two year 0:13:14.760 --> 0:13:18.040 four point three one percent. NIMEX screwed oil is down 0:13:18.080 --> 0:13:20.679 two point six percent on two dollars thirty seven cents 0:13:20.679 --> 0:13:23.440 at eighty eight dollars seventy five cents of barrel comes 0:13:23.440 --> 0:13:25.559 golled down two tens per cent, or two dollars ninety 0:13:25.600 --> 0:13:29.080 cents at sixteen seventy two thirty announced the euro point 0:13:29.160 --> 0:13:31.840 nine seven one five against the dollar British found one 0:13:31.880 --> 0:13:34.559 point one zero seven zero and the yen one forty 0:13:34.600 --> 0:13:36.719 five point six six. And look at a bitcoin, it's 0:13:36.760 --> 0:13:41.280 down eight tens of uppercent at nineteen thousand dollars. And 0:13:41.320 --> 0:13:44.040 that's a bloomberg business flash. Now here's Michael Barr with 0:13:44.120 --> 0:13:46.600 Moore on what's going on around the world. Michael, good morning, 0:13:46.679 --> 0:13:50.000 Good morning, Karen, President Biden and g Sevenly, there's will 0:13:50.040 --> 0:13:52.800 hold a virtual meeting to discuss how to support Ukraine 0:13:53.160 --> 0:13:57.480 and hold Russian President Putin accountable. For Russia's aggression. This 0:13:57.600 --> 0:14:01.000 comes as Russia recently carried out missile strying across Ukraine, 0:14:01.040 --> 0:14:04.240 hitting major cities like Kiv. The U s Supreme Court 0:14:04.280 --> 0:14:07.520 could hear arguments in a high stakes case today involving pork. 0:14:07.960 --> 0:14:11.280 The nation's twenty billion dollar pork industry is asking the 0:14:11.360 --> 0:14:14.920 justices to strike down California's Proposition twelve that would ban 0:14:15.080 --> 0:14:18.240 the sale of all pork that comes from pigs raised 0:14:18.240 --> 0:14:20.800 in spaces that aren't large enough for them to turn 0:14:20.880 --> 0:14:24.120 around in In football, the Chiefs beat the Raiders thirty 0:14:24.200 --> 0:14:27.600 twenty nine. In baseball, Game one of the a LDS 0:14:27.680 --> 0:14:30.680 begins tonight. For the Yankees, they play the Guardians. The 0:14:30.840 --> 0:14:34.000 NHL season begins tonight. The Rangers take on the Lightning. 0:14:34.280 --> 0:14:37.040 Global News twenty four hours a day on airrand on 0:14:37.080 --> 0:14:40.840 Bloomberg Quicktake, powered by more than twenty seven hundred journalists 0:14:40.840 --> 0:14:43.760 and analysts more than a hundred twenty countries. I'm Michael Barron. 0:14:43.840 --> 0:14:46.840 This is Bloomberg, Nathan. Thanks Michael. It's five nineteen on 0:14:46.840 --> 0:14:50.240 Wall Street Live from the Bloomberg Interactive Broker Studios. This 0:14:50.360 --> 0:14:53.120 is Bloomberg Daybreak and let's get more now on what's 0:14:53.160 --> 0:14:57.240 happening in Ukraine following Russia's barage on Kiva and other cities, 0:14:57.280 --> 0:14:59.520 and as the G seven gets set to meet joining 0:14:59.600 --> 0:15:04.160 us now, Bloomberg News Executive editor for International Government Rosalind mathieson, 0:15:04.440 --> 0:15:07.160 so get us up to speed on what's been happening 0:15:07.240 --> 0:15:10.560 since that barrage. I understand a lot of the attention 0:15:10.600 --> 0:15:13.920 now as far as developments on the ground is back 0:15:13.960 --> 0:15:18.680 in the so called annexed territories in the south and east. Well, 0:15:18.720 --> 0:15:22.400 that's right. So after yesterday's missile attacks which really struck 0:15:22.400 --> 0:15:27.040 across a wide swath of Ukraine from the south to 0:15:27.120 --> 0:15:30.720 the east, Dikiev also across to Levov in the west, 0:15:30.760 --> 0:15:33.960 sending the message that nowhere really in Ukraine remains totally 0:15:34.000 --> 0:15:37.640 safe at this point from Russia's reach. This morning we 0:15:37.720 --> 0:15:41.040 had fresh strikes on Zaparitzia, which is of course the 0:15:41.080 --> 0:15:45.920 area of annexed Ukraine that houses the key nuclear power plant. 0:15:45.920 --> 0:15:48.280 Has been a lot of focus on that plant since 0:15:48.280 --> 0:15:50.520 the war broke out, of course, the safety of the 0:15:50.560 --> 0:15:55.080 plant's inability to keep operating um in difficult circumstances and 0:15:55.080 --> 0:15:58.160 so on. So really we're seeing a string of attacks 0:15:58.200 --> 0:16:01.760 around that area in recent weeks. But certainly the message 0:16:01.760 --> 0:16:04.160 that we're getting from Russia as this war takes an 0:16:04.160 --> 0:16:07.400 even darker turn, is that Vladimir Putin is not going 0:16:07.440 --> 0:16:10.160 to give up. He's not he's not willing to seed 0:16:10.520 --> 0:16:14.720 the ground even as his troops struggle to retain territory 0:16:14.800 --> 0:16:19.040 inside Russia, and if anything, he's escalating via these annexations, 0:16:19.440 --> 0:16:22.560 mobilizing his troops and now of course stepping up his 0:16:22.640 --> 0:16:26.800 missile attacks, that he's certainly not ready to back down, 0:16:27.000 --> 0:16:28.800 and wanted to get a little deeper into where this 0:16:28.960 --> 0:16:32.560 could go from here. Given the pressure that Vladimir putinize, 0:16:32.560 --> 0:16:35.560 I understand his feeling from hardliners within his own country, 0:16:35.600 --> 0:16:41.080 and the continued morale issues that we've been witnessing on 0:16:41.120 --> 0:16:44.600 the part of Russian troops in Ukraine. Well, that's right. 0:16:44.640 --> 0:16:47.120 You can see a real chorus coming from Russia. In 0:16:47.160 --> 0:16:51.720 recent weeks, military bloggers, military hardliners and others criticizing this 0:16:51.760 --> 0:16:55.520 war quite publicly saying that they frustrated at the way 0:16:55.560 --> 0:16:58.440 it's going, at the level of organization, obviously the shambolic 0:16:58.600 --> 0:17:01.840 command structure has come to to play in Russia, and 0:17:01.880 --> 0:17:05.200 really sort of disappointed that Russia hasn't made better ground, 0:17:05.200 --> 0:17:07.800 and that's put a lot of pressure of Vladimir Putin 0:17:07.880 --> 0:17:11.159 to show progress of some description and certainly not to 0:17:11.200 --> 0:17:13.840 be seen to be backing down. So the missile strikes 0:17:13.920 --> 0:17:18.320 yesterday during drawing some praise from those quarters inside Russia, 0:17:18.359 --> 0:17:21.000 and that really reinforces the fact again that it's very 0:17:21.040 --> 0:17:23.959 difficult to find an off ramp at this point, because 0:17:24.359 --> 0:17:27.639 any sort of exit does require the Russian president to 0:17:27.760 --> 0:17:29.400 some extent to be able to say that he got 0:17:29.480 --> 0:17:32.720 something for all of this and claims some kind of victory, 0:17:32.720 --> 0:17:36.080 however small that might be. In equally, Ukraine's not going 0:17:36.119 --> 0:17:39.159 to seed territory in order to make that happen. So 0:17:39.200 --> 0:17:41.760 we're really at a at a difficult point in this conflict, 0:17:42.080 --> 0:17:45.159 and that puts attention, of course on the US and 0:17:45.200 --> 0:17:48.000 the G seven leaders. After President Biden just a few 0:17:48.040 --> 0:17:50.480 days ago had said that the US was looking for 0:17:50.760 --> 0:17:53.960 that off ramp for Vladimir Putin. Now the G seven 0:17:54.000 --> 0:17:56.120 is getting ready to meet in just a couple hours. Here, 0:17:56.119 --> 0:17:58.920 what are you looking for their? Well, what we're expecting 0:17:58.960 --> 0:18:02.840 a continued state monts obviously of unity for Ukraine, of 0:18:02.880 --> 0:18:07.359 support for Ukraine, pledging to continue to send Ukraine financially, 0:18:07.520 --> 0:18:10.720 which is really helping the government to continue to operate, 0:18:10.760 --> 0:18:14.159 but also to provide them weapons. What they are cautious 0:18:14.200 --> 0:18:17.760 about is providing the sorts of ever more powerful weapons 0:18:17.800 --> 0:18:20.720 that Ukraine says on a daily basis that really now 0:18:20.800 --> 0:18:23.760 needs to press its advantage, and that sort of NATO's 0:18:23.800 --> 0:18:27.920 standard weaponry, tanks, fighter jets um and the very long 0:18:28.000 --> 0:18:31.000 range missile systems that they're asking for. And there's been 0:18:31.040 --> 0:18:33.480 a lot of caution about sending any of that in because, 0:18:33.520 --> 0:18:35.960 of course, the fear is that that would be seen 0:18:36.000 --> 0:18:39.760 as a direct provocation of the Russian president, perhaps NATO 0:18:39.960 --> 0:18:44.040 really putting itself into this confrontation, and in a climate 0:18:44.040 --> 0:18:47.359 where the Russian president is dangling the potential use of 0:18:47.440 --> 0:18:49.960 nuclear weapons is at a place you want to go to. 0:18:50.040 --> 0:18:53.720 So it's unlikely to be tangible statements in terms of 0:18:53.760 --> 0:18:57.840 more advanced weapons, but certainly expressions of continued support for 0:18:58.080 --> 0:19:01.280 Ukraine in its fight against Russia, and will of course 0:19:01.359 --> 0:19:05.080 be monitoring that G seven meeting and passing along any 0:19:05.119 --> 0:19:08.920 developments as they come in. Bloomberg's Rosalind Matheson, our executive 0:19:09.000 --> 0:19:12.560 editor for International Government, keeping us apprised of all that's 0:19:12.560 --> 0:19:16.520 happening in Ukraine and the global response ros as always 0:19:16.560 --> 0:19:19.119 great to have you with us. Right looking ahead to 0:19:19.200 --> 0:19:23.639 the market open this morning, we're poised for another session 0:19:23.680 --> 0:19:28.240 of losses potentially, with SMP futures right now down twenty 0:19:28.280 --> 0:19:31.960 eight points down, futures down two eight. Nasdaq futures are 0:19:32.080 --> 0:19:36.000 also lowered, down eighty three points uh. The selling continues 0:19:36.119 --> 0:19:39.000 in the bond market as well, with the tenure Treasury 0:19:39.200 --> 0:19:42.320 down fourteen thirty seconds, with the yield at three point 0:19:42.400 --> 0:19:45.200 nine three percent, yield on the two year at four 0:19:45.320 --> 0:19:49.080 point three one p Nimex cruds plunging down two and 0:19:49.119 --> 0:19:51.359 a half percent or two dollars twenty six cents at 0:19:51.359 --> 0:19:54.439 eighty eight dollars eighty five cents of barrel, and the 0:19:54.480 --> 0:19:58.000 euro right now trading at point nine seven one zero 0:19:58.520 --> 0:20:02.560 against the dollar. Stay with us, you're listening to Bloomberg 0:20:02.760 --> 0:20:09.399 Daybreak Bloomberg eleventh three oh weather sunny today with a 0:20:09.440 --> 0:20:12.399 high near seventy degrees apache fog possible tonight, but it's 0:20:12.400 --> 0:20:14.720 gonna be mostly sunny again tomorrow with a high near 0:20:14.800 --> 0:20:18.679 seventy chance for showers Thursday. Right now fifty four in 0:20:18.720 --> 0:20:26.040 Central Park, broadcasting live from the Bloomberg Interactive Broker Studio 0:20:26.119 --> 0:20:29.320 in New York, Bloomberg E Living Freedom to Washington, d C, 0:20:29.520 --> 0:20:34.200 Bloomberg to Boston, Bloomberg on a six one to San Francisco, 0:20:34.280 --> 0:20:37.720 Bloomberg nine sixty to the country, Sirius XM Channel one 0:20:37.800 --> 0:20:40.879 nine team and around the blood the Bloomberg business in 0:20:41.000 --> 0:20:50.880 Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five 0:20:50.880 --> 0:20:53.439 thirty on Wall Street. Good morning. I'm Nathan Hager and 0:20:53.480 --> 0:20:56.280 I'm kerin Moscow and we're just about four hours away 0:20:56.320 --> 0:20:58.240 from the open of US trading. Let's get you up 0:20:58.240 --> 0:20:59.560 to date on the news. You need to know what 0:20:59.680 --> 0:21:02.520 this show our well. US futures are lower yet again 0:21:02.640 --> 0:21:06.359 after four straight and losing sessions. Earnings and inflation data 0:21:06.440 --> 0:21:09.080 will be key this week. Some analysts expect a significant 0:21:09.119 --> 0:21:11.800 earnings drop, but that may not come to pass if 0:21:11.840 --> 0:21:15.639 inflation usays. That's according to Bloomberg Intelligence Chief equity strategist 0:21:15.680 --> 0:21:18.720 Gina Martin Adams, the reality of the earning stream is 0:21:18.760 --> 0:21:21.879 an Inflation has been a big pain point for earnings. 0:21:21.960 --> 0:21:25.680 Revenues have been growing, but margins have been contracting amid 0:21:25.760 --> 0:21:28.600 the rising input cost pressure. Even though companies have been 0:21:28.640 --> 0:21:31.400 able to pass on some price increases, so we might 0:21:31.480 --> 0:21:34.400 be somewhat surprised by the degree to which to drop 0:21:34.400 --> 0:21:38.080 an inflation can actually soothe some of those margin pressures. 0:21:38.160 --> 0:21:41.840 Gina Martin Adams at Bloomberg Intelligence says she expects quote 0:21:41.840 --> 0:21:45.760 earnings confusion to continue into the next quarter. Chip stocks 0:21:45.760 --> 0:21:48.440 have been hit particularly hard in this recent sell off, Karen. 0:21:48.480 --> 0:21:51.160 More than two ordered forty billion dollars in global market 0:21:51.240 --> 0:21:53.960 values been wiped away after the White House and Post 0:21:54.000 --> 0:21:58.760 curbs on China's access to semiconductor technology. Meantime, Nathan warnings 0:21:58.800 --> 0:22:01.199 of a global down here and are growing louder. The 0:22:01.240 --> 0:22:04.480 heads of the International Monetary Fund and World Bank weren't 0:22:04.520 --> 0:22:07.879 of rising risks of a global recession, and JP Morgan 0:22:07.960 --> 0:22:12.280