WEBVTT - Bloomberg Daybreak: January 10, 2022 - Hour 2 (Radio) 0:00:02.880 --> 0:00:06.440 Live from the Bloomberg Interactive Burgers Studios is Bloomberg day 0:00:06.480 --> 0:00:11.000 Break for Monday, January two. Coming up this hour, Goldman 0:00:11.080 --> 0:00:14.840 opposites forecast for tightening for the five ecdemic forecast, while 0:00:14.920 --> 0:00:17.920 cradd the omicron variant as millions of workers call out 0:00:17.960 --> 0:00:22.000 six White House makes plans to oppose export restrictions on Russia, 0:00:22.120 --> 0:00:25.200 and earnings get underway this week with results from Big Banks. 0:00:25.440 --> 0:00:27.560 The Deadly Blaze is being described as one of the 0:00:27.560 --> 0:00:30.680 worst flyers in New York City modern history. Plus tributes 0:00:30.720 --> 0:00:33.960 come in for comedian Bob Saget. I'm Michael Blower. More Ahead, 0:00:34.200 --> 0:00:36.640 I'm John Stage Sharon Sports, the Jets and Giants lost 0:00:36.680 --> 0:00:39.560 as the NFL regular season ended, the Raiders, Steelers and 0:00:39.640 --> 0:00:44.920 forty Niners grabbed the last playoff spot. That's all straight 0:00:44.960 --> 0:00:48.280 ahead on Bloomberg day Break on Bloomberg. You live in 0:00:48.280 --> 0:00:52.959 FREEO New York, Bloomberg one, Washington, d C, Bloomberg one, 0:00:52.960 --> 0:00:57.400 O six one, Boston, Bloomberg nine sixties, San Francisco, Sirius 0:00:57.560 --> 0:01:00.840 x M one nineteen and around the world lown Bloomberg 0:01:00.920 --> 0:01:08.120 Radio dot Com and via The Bloomberg Business Kay Good 0:01:08.120 --> 0:01:11.440 Morning on John Tucker and I'm Karen Moscow and US 0:01:11.560 --> 0:01:15.039 futures are little change this morning. It is coming up 0:01:15.080 --> 0:01:16.640 to six oh one on Wall Street, and we check 0:01:16.680 --> 0:01:19.600 the markets every fifteen minutes throughout the trading day on Bloomberg. 0:01:19.680 --> 0:01:21.920 Right now SNP futures that will change so are to 0:01:21.920 --> 0:01:25.600 OW futures. Nowsday futures are moving lower, down about thirty 0:01:25.600 --> 0:01:28.639 one point The decks in Germany's down about two tens 0:01:28.640 --> 0:01:31.280 of upper cent. The ten year treasury down three thirty seconds. 0:01:31.360 --> 0:01:33.920 He had one point seven seven percent. They yield on 0:01:33.959 --> 0:01:36.840 the two year point eight six percent and nine x 0:01:36.880 --> 0:01:39.319 screwed oils. It will change at seventy eight dollars eighty 0:01:39.360 --> 0:01:43.720 seven cents of barrel Bitcoin at forty one seven eight dollars, 0:01:43.800 --> 0:01:48.200 John and Karen. Fed policy remains front and center. Last 0:01:48.240 --> 0:01:51.200 week's Fed minutes, sam the US jobs report. We're market 0:01:51.240 --> 0:01:54.280 moving events. Now we have a big call on the 0:01:54.320 --> 0:01:57.960 future of the interest rates. Let's get the latest from Bloomberg's. 0:01:57.960 --> 0:02:00.800 Britney the Young, Good morning, Ritnita, Good morning John Goldman. 0:02:00.880 --> 0:02:04.040 Sex expects the FED to raise interest rates four times 0:02:04.040 --> 0:02:07.800 this year and begin the balance sheet runoff process. In July, 0:02:08.240 --> 0:02:11.040 the firm had previously expected the balance sheet run off 0:02:11.080 --> 0:02:13.520 to start in December, and it's all due to a 0:02:13.600 --> 0:02:17.400 stronger labor market and hawkish signs from those December minutes. 0:02:17.639 --> 0:02:21.119 FED officials have been signaling a quicker move to tighten policy, 0:02:21.360 --> 0:02:25.040 and Goldman says that could lead to faster policy normalization 0:02:25.080 --> 0:02:28.720 than we've seen before. I'm Reneda young Blue birth daybreak 0:02:29.000 --> 0:02:31.880 right rened to thank you well. Inflation also remains in focus, 0:02:31.960 --> 0:02:35.080 and veteran investor Mark Mobias says traders are under pricing 0:02:35.120 --> 0:02:37.519 the risks. He tells us that the recent spike and 0:02:37.560 --> 0:02:40.200 treasury yields has room to run. I think they can 0:02:40.240 --> 0:02:43.720 go much much higher. They've got to equal what we're 0:02:43.760 --> 0:02:46.280 seeing with inflation at the end of the day, because 0:02:46.320 --> 0:02:48.919 people are not going to be buying treasuries if they 0:02:48.919 --> 0:02:51.680 see that they only getting two or three percent, but 0:02:51.800 --> 0:02:55.120 inflation is seven, eight, nine, ten percent, So at the 0:02:55.160 --> 0:02:56.760 end of the day, those rates have to go off 0:02:57.280 --> 0:02:59.680 and those comments are Mark mobi has come after hawkish 0:02:59.720 --> 0:03:02.480 minutes from the FEZ December meeting underscore the case for 0:03:02.680 --> 0:03:06.280 faster right hikes and speaking of inflation, it's the main 0:03:06.280 --> 0:03:09.160 event of this week's economic calendar. Here with more is 0:03:09.200 --> 0:03:13.160 Bloomberg's Vineydale Judais. The Labor Department issues the consumer Price 0:03:13.200 --> 0:03:15.680 Index on Wednesday, and the data could put more pressure 0:03:15.720 --> 0:03:18.000 on the Federal Reserve the race interest rates as soon 0:03:18.040 --> 0:03:21.800 as March. Bloomberg Economics as December CPI will register a 0:03:21.840 --> 0:03:25.200 seven percent year over your increase as COVID nineteen related 0:03:25.200 --> 0:03:28.520 supply short to just persist, fielding a worst inflation since 0:03:28.560 --> 0:03:32.120 the nineteen eighties. This week's data on December producer prices 0:03:32.120 --> 0:03:35.640 and import prices will probably offer a similar narrative. Benea Dell, 0:03:35.720 --> 0:03:38.840 Judais Bloomberg day Break, any thank you at Economic forecasts 0:03:38.840 --> 0:03:41.760 are also falling prey to the omicron variant. The new 0:03:41.800 --> 0:03:44.560 COVID strain is now posing a new test of growth, 0:03:44.600 --> 0:03:47.400 and Bloomberg said Baxter has the story. It is posing 0:03:47.440 --> 0:03:51.400 something on which employers have no control. Absentee ism because 0:03:51.400 --> 0:03:54.520 of illness, people calling in sick. What started as a 0:03:54.600 --> 0:03:58.640 holiday flight cancelation has now become a reality in factories, 0:03:58.720 --> 0:04:03.240 grocery stores, and hoards, again testing supply chains top to bottom. 0:04:03.280 --> 0:04:06.760 The widespread absentee is um is already constraining output, and 0:04:06.880 --> 0:04:11.640 several economists have downgraded their first quarter forecasts, how bad, 0:04:12.080 --> 0:04:15.440 how long it may take several weeks to assess. In 0:04:15.560 --> 0:04:18.720 San Francisco, I'm at Baxter Bloomberg Gay Break, Thanks said 0:04:18.839 --> 0:04:22.359 on Capitol Hill. Democrats are pushing for another round of 0:04:22.480 --> 0:04:26.200 virus aid, how speaker Nancy Pelosis is they could add 0:04:26.279 --> 0:04:30.719 relief aid to package to government funding legislation. Now, the 0:04:30.760 --> 0:04:35.120 administration has not made a formal request for more funding, 0:04:35.720 --> 0:04:38.920 but it is clear from the opportunity that is there 0:04:39.120 --> 0:04:43.400 and the again the challenge that is there from the 0:04:43.480 --> 0:04:48.000 resilience of this virus, speaker Pelosi making the comments on 0:04:48.040 --> 0:04:51.480 Face the Nation from CBS heard Sundays on Bloomberg Radio, 0:04:51.839 --> 0:04:54.520 Well John interesting data on vaccines coming out of Asia 0:04:54.600 --> 0:04:58.240 this morning. Singapore saw the fewest deaths among those of 0:04:58.320 --> 0:05:02.119 Maderna's vaccine and the most acts among those we Signofact Shot. 0:05:02.400 --> 0:05:06.440 Nearly virus deaths recorded in the city state last year 0:05:06.440 --> 0:05:12.320 were among unvaccinated individuals. Geopolitics also in focus this morning, 0:05:12.400 --> 0:05:15.200 Karen Is meetings between the US and Russia get underway. 0:05:15.279 --> 0:05:18.640 Bloomberg News has learned the White House and US allies 0:05:19.040 --> 0:05:22.960 may impose export restrictions on Moscow if Vladimir Putin seizes 0:05:23.000 --> 0:05:27.159 more of Ukraine. They're discussing limits on sensitive technology and electronics. 0:05:27.440 --> 0:05:30.559 And today in Geneva, senior American and Russian officials begin 0:05:30.640 --> 0:05:34.279 talks aimed at easing tensions over Ukraine. Here, Secretary of 0:05:34.279 --> 0:05:36.360 State Anthony B. Lincoln, I don't think we're gonna see 0:05:36.400 --> 0:05:39.360 any any breakthroughs in the coming In the coming week, 0:05:39.440 --> 0:05:41.159 we're gonna be able to put things on the table. 0:05:41.440 --> 0:05:44.680 The Russians will do the same, both directly with US 0:05:44.680 --> 0:05:47.120 at NATO at the osse UH, and we'll see if 0:05:47.120 --> 0:05:50.240 their grounds for for moving forward. Secretary of State Anthony B. 0:05:50.240 --> 0:05:53.159 Lincoln making the comments on CNN's State of the Union. 0:05:53.839 --> 0:05:55.640 We'll turning to the markets now. John, we have a 0:05:55.640 --> 0:05:58.640 bullish call from Julian Emmanuel the ever cores I s 0:05:58.640 --> 0:06:01.200 I strategists, as the S and P five hundred is 0:06:01.320 --> 0:06:04.440 likely to end the year at fifty one hundred as 0:06:04.480 --> 0:06:08.359 the pandemic becomes an endemic by mid year. That's about 0:06:08.400 --> 0:06:13.880 eight increase from current levels, Manuel says. Manuel says is 0:06:13.920 --> 0:06:16.960 also possible his downside target is just south of thirty 0:06:17.000 --> 0:06:19.359 six hundred at the pandemic is prolonged, or there's a 0:06:19.400 --> 0:06:22.960 hangover from spending and debt and meantime earning season kicks 0:06:23.000 --> 0:06:25.479 off in earnest on Wall Street this week with Moore. 0:06:25.600 --> 0:06:29.159 Here's Bloomberg's Charlie Pellett. Banks will be front and center 0:06:29.240 --> 0:06:32.479 with reports Friday from JP Morgan, Chase City Group, and 0:06:32.680 --> 0:06:35.839 Wells Fargo. They come as investors debate the strength of 0:06:35.839 --> 0:06:39.719 the economy and the federal reserves next policy moves. Seem 0:06:39.760 --> 0:06:43.919 as Shaw's chief strategist at Principal Global Investors, when we 0:06:43.960 --> 0:06:45.840 think about actually good to think about it. We were 0:06:45.839 --> 0:06:48.720 also good to think about earnings and the outlook that 0:06:48.800 --> 0:06:51.919 we have for twenty two still a very solid recovery, slimmery, 0:06:51.960 --> 0:06:55.040 strong economic environment. Among some of the other names scheduled 0:06:55.080 --> 0:06:59.880 to report this week Delta, Albertson's, Infosis and KB Home 0:07:00.480 --> 0:07:03.440 in New York. Charlie Polic Bloomburn day break. All right, 0:07:03.440 --> 0:07:05.800 thanks Charlie, and ahead of the cash up on Wall 0:07:05.839 --> 0:07:09.120 Street futures little change to this point. They've been fluctuating. 0:07:09.200 --> 0:07:13.360 DAL futures right now two points higher, SMB many futures 0:07:13.400 --> 0:07:17.320 are down five points, and the ISAC futures forty seven 0:07:17.320 --> 0:07:23.920 points lower. This is daybreak, and it's now six or 0:07:23.960 --> 0:07:26.120 seven on Wall Street. Let's bring in Michael Barr to 0:07:26.160 --> 0:07:28.720 find out what else is going on in New York 0:07:28.840 --> 0:07:31.600 and around the world. John, thank you very much, sir. 0:07:31.720 --> 0:07:34.280 At least nineteen people were killed in New York City 0:07:34.360 --> 0:07:37.560 yesterday in the high rise apartment. Fire officials say the 0:07:37.560 --> 0:07:40.840 fire and the Bronx also injured dozens of other people. 0:07:41.280 --> 0:07:44.960 New York Mayor Eric Adams, it is a very significant 0:07:45.040 --> 0:07:52.080 moment to have just a unification about city during this 0:07:52.200 --> 0:07:56.800 time of tragedy, Mayor Eric Adams. As investigators say, the 0:07:56.840 --> 0:07:59.640 cause of the blaze was a malfunctioning space eater in 0:07:59.720 --> 0:08:02.600 and a apartment on the third floor. New York City 0:08:02.600 --> 0:08:05.920 Fire Commissioner Daniel nine Grow tells us many people are 0:08:05.920 --> 0:08:09.600 fighting for their lives because of smoke inhalation. The door 0:08:09.720 --> 0:08:13.200 to that apartment. Unfortunately, when the residents left was left open, 0:08:13.200 --> 0:08:17.080 it did not close by itself. The smoke spread throughout 0:08:17.120 --> 0:08:21.200 the building. Thus the tremendous loss of life and other 0:08:21.200 --> 0:08:25.200 people fighting for their lives right now in hospitals all 0:08:25.200 --> 0:08:28.040 over the Bronx. Commissioner nine Grows says nine of the 0:08:28.080 --> 0:08:32.520 deaths were children. Republican Representative Jim Jordan of Ohio one 0:08:32.559 --> 0:08:36.320 of former President Donald Trump's closest allies in Congress, has 0:08:36.360 --> 0:08:39.240 rejected a request for an interview by the House panel 0:08:39.440 --> 0:08:42.960 investigating the January sixth Capital riot. In a letter to 0:08:43.000 --> 0:08:46.560 the committee chairman, Jordan says the American people are tired 0:08:46.600 --> 0:08:53.000 of Democrats NonStop investigations and partisan witch hunts. Republican Senator 0:08:53.200 --> 0:08:56.000 Ron Johnson said that he'll seek a third term in 0:08:56.040 --> 0:09:01.240 two Johnson, the stoutch supporter of former President Donald Trump, 0:09:01.480 --> 0:09:05.719 opposes COVID nineteen vaccination and mask mandates. Johnson is a 0:09:05.800 --> 0:09:09.040 top target for Democrats after he narrowly won his seat 0:09:09.040 --> 0:09:13.120 in both twenty and sixteen in the key battle ground state, 0:09:13.960 --> 0:09:19.439 New York, Democratic Congresswoman Alexandria Ocassio Cortes has tested positive 0:09:19.440 --> 0:09:23.240 for COVID nineteen, according to her office, Ocassio Cortez, who 0:09:23.280 --> 0:09:26.559 was fully vaccinated and has had a booster shot, his 0:09:26.679 --> 0:09:31.400 experiencing symptoms and recovering at home. Tributes are pouring in 0:09:31.480 --> 0:09:34.760 for comedian Bob Saget. He played father Danny Tanner on 0:09:34.800 --> 0:09:40.360 the sitcom Full House. It's Mr Carr? What is Mr? 0:09:40.400 --> 0:09:45.720 Car Say? You're right? He doesn't say anything. Sage was 0:09:45.720 --> 0:09:49.480 found dead yesterday in is Orlando, Florida hotel room Bob Saget, 0:09:49.559 --> 0:09:51.560 who was on a stand up tour with sixty five 0:09:51.960 --> 0:09:54.160 Global News twenty four hours a day on air end 0:09:54.160 --> 0:09:57.880 on Bloomberg Quick Take, powered by more journalists and analysts 0:09:57.880 --> 0:10:00.120 more than a hundred twenty countries. I'm Michael Barne. This 0:10:00.200 --> 0:10:07.559 is Bloomberg. John. All right, Michael, thank you is coming 0:10:07.600 --> 0:10:09.360 up on the sixth ten on Wall Street time down 0:10:09.360 --> 0:10:12.960 for the Bloomberg Sports upthing, and that he thanks John. 0:10:13.000 --> 0:10:15.880 The NFL regular season is over, thankfully for the Jets 0:10:15.880 --> 0:10:18.560 and Giants. They both went four and thirteen. The Jets, 0:10:18.640 --> 0:10:21.360 like last week, were at least in their game, trailed 0:10:21.360 --> 0:10:23.760 the Bills by only three midway through the fourth quarter, 0:10:23.760 --> 0:10:25.880 but Buffalo went on to win twenty seven to ten. 0:10:25.960 --> 0:10:29.160 The Jets will go to next season unsure how good 0:10:29.160 --> 0:10:32.360 a quarterback they have. Rookie Zack Wilson yesterday completed only 0:10:32.480 --> 0:10:35.560 seven passes. The Jets will have the fourth and tenth 0:10:35.559 --> 0:10:37.960 picks of the draft, of the Giants will have the 0:10:38.000 --> 0:10:41.120 fifth and seventh picks. They will clearly be looking to 0:10:41.160 --> 0:10:43.679 improve an offense. So in up the Giants and a 0:10:43.760 --> 0:10:46.440 third and nine Yesterday ran a quarterback sneak rather than 0:10:46.520 --> 0:10:49.400 risk of turnover. They lost to Washington two to seven. 0:10:49.440 --> 0:10:52.080 They lost in their last six games only once scored 0:10:52.160 --> 0:10:54.319 more than ten points. The departure of g M. Dave 0:10:54.360 --> 0:10:57.120 Getleman could come today regular season and the last night 0:10:57.160 --> 0:10:59.599 in Las Vegas. The Chargers came from fifteen down in 0:10:59.600 --> 0:11:02.320 the last five minutes to force overtime, but the Raiders 0:11:02.400 --> 0:11:04.120 kicked a field goal on the final play to win 0:11:04.160 --> 0:11:06.640 thirty five thirty two. Had the game ended the tie, 0:11:07.160 --> 0:11:09.400 both teams would have made the playoffs. Instead, only the 0:11:09.480 --> 0:11:12.160 Raiders do. They'll play Cincinnati. The Chargers are out. The 0:11:12.240 --> 0:11:15.480 Steelers are in. They were helped by Indianapolis is stunning 0:11:15.520 --> 0:11:18.360 loss at Jacksonville. Pittsburgh now headed to Kansas City, New 0:11:18.360 --> 0:11:21.720 England will play Buffalo and the NFC it's Philadelphia, Tampa 0:11:21.760 --> 0:11:24.640 Bay the forty Niners in Dallas. Arizona goes to play 0:11:24.679 --> 0:11:26.640 the l A Rams over time in Brooklyn. The next 0:11:26.720 --> 0:11:30.600 first home win since mid December beat the Spurs nineteen 0:11:30.920 --> 0:11:33.679 a win for the Warriors play Thompson back Plane first 0:11:33.720 --> 0:11:35.719 time in two and a half years. A judge in 0:11:35.760 --> 0:11:38.839 Australia reinstated Novak Djokovic's visa. As of now he can 0:11:38.920 --> 0:11:42.720 play the upcoming Australian Open and Historic Hired by the Yankees, 0:11:42.800 --> 0:11:45.600 Rachel Balkovic will manage their Class A Model League team 0:11:45.600 --> 0:11:49.040 in Tampa. First female to hold such a job. John 0:11:49.040 --> 0:11:52.120 Stash Award Bloomberg Sports John Alright, thanks John, ahead of 0:11:52.120 --> 0:11:55.440 the cash open Wall Street. Little change with the futures 0:11:55.520 --> 0:11:58.319 right now at THEALN futures down to the yes of 0:11:58.360 --> 0:12:00.800 the futures fine points slower now, I don't like futures. 0:12:00.800 --> 0:12:07.040 They're fifty points lower. This is Bloomberg Daybreak being brown 0:12:07.080 --> 0:12:09.199 to by Audie. Don't let someone else drive off of 0:12:09.240 --> 0:12:11.600 the Audi model you've always wanted. Visit a try State 0:12:11.640 --> 0:12:15.600 autie dealer to get behind the wheel of yours. Today 0:12:21.160 --> 0:12:24.560 markets headlines and breaking news twenty four hours a day 0:12:24.679 --> 0:12:27.679 at Bloomberg dot Com, The Bloomberg Business at and at 0:12:27.679 --> 0:12:37.160 Bloomberg Quick Tape is a Bloomberg business lash and I'm 0:12:37.240 --> 0:12:40.120 Karen Moscow s and P Futures that will change this morning, 0:12:40.120 --> 0:12:42.080 so are to own future as well. Now stack futures 0:12:42.080 --> 0:12:44.320 are falling down about forty two and the ten ure 0:12:44.360 --> 0:12:47.000 treasuries down three thirties seconds. You had one point seven 0:12:47.080 --> 0:12:49.839 seven per cent. Fiser are paying as much as one 0:12:49.880 --> 0:12:52.839 point three five billion dollars to partner with Cambridge based 0:12:52.920 --> 0:12:57.360 Beam Therapeutics on developing drugs for rare genetic diseases using 0:12:57.480 --> 0:13:00.280 base editing, and no one's in minor green to buy 0:13:00.320 --> 0:13:02.600 Apria on a deal with an equity value of almost 0:13:02.640 --> 0:13:05.520 one and a half billion dollars. We are coming up 0:13:05.559 --> 0:13:08.360 to six eighteen on Wall Street. It is time for 0:13:08.440 --> 0:13:11.440 your daily Bloomberg a crypto update him at the Latest 0:13:11.440 --> 0:13:15.360 and Crypto News. Here's Bloomberg's rened a young Rendita Karen. 0:13:15.480 --> 0:13:18.720 Right now, Bitcoin is trading lower around forty two thousand, 0:13:18.880 --> 0:13:21.960 as Golden and Sachs predicts the Federal Reserve wal raise 0:13:22.080 --> 0:13:25.160 interest rates four times this year. That's more than the 0:13:25.200 --> 0:13:28.760 previous forecast of three hikes, but it's more than rates 0:13:28.800 --> 0:13:32.120 weighing on Bitcoin this morning, coin Desk points out the 0:13:32.200 --> 0:13:35.360 asset is approaching its so called death cross, where it's 0:13:35.360 --> 0:13:38.360 fifty day moving average drops below its two d day 0:13:38.400 --> 0:13:41.760 moving average. That's a bearish indicator, but the last time 0:13:41.760 --> 0:13:44.200 that happened in June, it was followed by a fresh 0:13:44.240 --> 0:13:48.720 bull run. Meantime, Congressional candidates are selling non fungible tokens 0:13:48.760 --> 0:13:51.920 to help finance their campaigns in the mid term elections. 0:13:52.160 --> 0:13:55.480 Democrats Trina Karani, an engineer who's running for a House 0:13:55.480 --> 0:13:59.000 seat in California, and Republican Blake Masters, who's buying for 0:13:59.040 --> 0:14:02.000 a Senate seat in Arizona, are offering n f T 0:14:02.160 --> 0:14:06.280 s as incentives for donors. And that's your Bloomberg Crypto update. 0:14:06.520 --> 0:14:09.760 I'm renting young Bloomberg Daybreak. Karen, all right, we need 0:14:09.800 --> 0:14:11.960 to thank you. And that's a Bloomberg business flash. Now 0:14:11.960 --> 0:14:14.440 here's Michael Barr with Moore. I'm what's going on around 0:14:14.480 --> 0:14:17.360 the world. Michael, Karen, thank you very much. In New York, 0:14:17.360 --> 0:14:20.200 of l functioning space eaters sparked fire that filled a 0:14:20.280 --> 0:14:23.520 high rise Bronx department building with thick smoke Sunday morning, 0:14:23.920 --> 0:14:27.840 killing at least nineteen people, including nine children and Australian 0:14:27.960 --> 0:14:31.720 judges reinstated at tennis star Novak Djokovic's visa, which was 0:14:31.800 --> 0:14:35.760 canceled last week because he is unvaccinated. In the final 0:14:35.800 --> 0:14:39.000 week of the regular NFL season, the Giants lost to Washington. 0:14:39.280 --> 0:14:42.120 The Jets lost forty are in the playoffs after beating 0:14:42.120 --> 0:14:47.080 the Rams, the Patriots lost to the Dolphins but still advanced. 0:14:47.280 --> 0:14:51.040 The Steelers are in the postseason after beating the Ravens 0:14:51.320 --> 0:14:55.280 in the NBA. The Nets, Wizards, and Warriors won Global 0:14:55.320 --> 0:14:57.880 News twenty four hours a day on air and on 0:14:57.920 --> 0:15:02.360 Bloomberg Quicktake, powered by more than journalists and analysts more 0:15:02.360 --> 0:15:06.320 than one twenty countries. I'm Michael Barr, and this is Bloomberg. John. 0:15:06.520 --> 0:15:09.120 All right, Michael, thank you. It is now six twenty 0:15:09.200 --> 0:15:13.000 on Wall Street. We're live from the Bloomberg Interactive Broker Studios. 0:15:13.080 --> 0:15:17.119 This is Bloomberg Daybreak. Good morning, I'm John Tucker. Inflation 0:15:17.320 --> 0:15:20.200 had rates front and center for the markets this week, 0:15:20.760 --> 0:15:23.200 much as they have been for the past month. Goldman 0:15:23.280 --> 0:15:26.680 Sachs raising its forecast for rate hikes after last week's 0:15:26.680 --> 0:15:30.040 FED minutes and the US jobs report. And coming up 0:15:30.040 --> 0:15:33.440 this week we get fresh data on inflation. Economist predict 0:15:33.480 --> 0:15:36.800 the consumer Price Index will show annual inflation coming in 0:15:36.960 --> 0:15:40.040 at seven percent. Let's get more of the outlook for 0:15:40.120 --> 0:15:44.160 prices and rates now from Mark Mobius, the veteran investor 0:15:44.360 --> 0:15:48.200 and founder of Mobius Capital Partners, sat down last night 0:15:48.240 --> 0:15:52.160 for an interview with Bloomberg's Josef Yosef Gammel al Dean, 0:15:52.480 --> 0:15:54.480 and let's hear what he had to say. If you 0:15:54.520 --> 0:15:57.400 consider the fact that the money supply in America went 0:15:57.480 --> 0:16:03.120 up by over here, you have to expect prices to 0:16:03.280 --> 0:16:06.000 go up by that much. The good news, of course, 0:16:06.080 --> 0:16:10.320 is that technology pushes prices down, but the reality is 0:16:10.360 --> 0:16:14.520 that in fact those seven percent numbers are probably underestimating 0:16:14.880 --> 0:16:18.440 what is coming down the pike. So we can expect 0:16:19.280 --> 0:16:23.800 higher higher prices, but of course higher wages because you 0:16:23.840 --> 0:16:27.120 can see unemployment is down and people will be getting 0:16:27.120 --> 0:16:29.880 more money. So you're gonna see a balancing of these 0:16:29.920 --> 0:16:34.160 two forces as we go forward. How high can rates 0:16:34.200 --> 0:16:37.160 go and look at thirty are kind of busted through 0:16:37.240 --> 0:16:40.480 the two percent mark as well. I think they can 0:16:40.480 --> 0:16:44.000 go much much higher. They've got to equal what we're 0:16:44.040 --> 0:16:46.560 seeing with inflation at the end of the day, because 0:16:46.600 --> 0:16:49.200 people are not going to be buying treasuries if they 0:16:49.240 --> 0:16:51.960 see that they're only getting two or three percent, but 0:16:52.080 --> 0:16:55.560 inflation is seven eight nine percent, so at the end 0:16:55.600 --> 0:16:58.400 of the day, those rates have to go up. Okay, well, 0:16:58.400 --> 0:17:01.520 with higher rates, the traditional thinking would be the you know, 0:17:02.080 --> 0:17:05.080 tech would underperform, which is why we've seen quite a 0:17:05.119 --> 0:17:07.159 bit of bolatility in the NAZAC for example, but as 0:17:07.200 --> 0:17:10.000 few training sessions and then you know, have that broader rotation. 0:17:10.560 --> 0:17:14.240 Are you subscribing to the broader rotation? Well, I think 0:17:14.280 --> 0:17:18.280 what's happening is that those tech companies that have not 0:17:18.400 --> 0:17:21.000 been making money, they're going to be in deep trouble. 0:17:21.400 --> 0:17:24.840 Those stops are gonna go down in price. But companies 0:17:24.880 --> 0:17:28.600 that having a very good return on capital, paying dividends, 0:17:29.000 --> 0:17:32.359 have a good profit increase. Those companies that are going 0:17:32.400 --> 0:17:36.119 to be outstanding, they're gonna be outperforming. So there's going 0:17:36.200 --> 0:17:39.440 to be a strong differentiation in the market, if you will. 0:17:39.760 --> 0:17:43.080 Mark When you look at the China story, there are 0:17:43.480 --> 0:17:46.879 some major risks that have kept quite a bit of 0:17:46.880 --> 0:17:50.480 foreign capital away, especially out of the United States and Europe. 0:17:50.760 --> 0:17:54.160 Run me through your thinking on the China opportunity set 0:17:54.200 --> 0:17:57.359 at the moment. Well, my feeling is that the crackdown, 0:17:57.520 --> 0:18:01.000 so called crackdown by the Chinese is regulators has been 0:18:01.040 --> 0:18:04.359 a good thing because there's no question there was a 0:18:04.400 --> 0:18:08.160 little bit of a wild West atmosphere in the Chinese 0:18:08.160 --> 0:18:10.360 market for quite some time. I mean, you can look 0:18:10.359 --> 0:18:13.080 at what these property companies were doing. They were not 0:18:13.160 --> 0:18:16.000 only in property. They were all over the map, buying 0:18:16.040 --> 0:18:20.160 football stadiums, etcetera, etcetera. So there had to be some 0:18:20.280 --> 0:18:25.800 kind of the crackdown and regulatory emphasis on part of 0:18:25.840 --> 0:18:29.080 the Chinese government. And I think what they're doing is 0:18:29.080 --> 0:18:31.000 a good thing from a long term point of view. 0:18:31.400 --> 0:18:33.679 Of course, from a short term point of view, it 0:18:33.760 --> 0:18:37.320 hits the index because you get the big boys like 0:18:37.400 --> 0:18:41.120 Ali Baba ten Cent coming down dramatically, and of course 0:18:41.160 --> 0:18:45.280 that affects the Chinese Index, and by the way, it 0:18:45.400 --> 0:18:49.200 also affects the Emerging Markets Index, which is down because 0:18:49.240 --> 0:18:52.680 of China. But at the end of the day, we're 0:18:52.760 --> 0:18:56.840 very interested in keeping our watch on China, particularly in 0:18:56.840 --> 0:19:01.119 the medium and small cap area. Just I believe with 0:19:01.160 --> 0:19:05.199 a more level playing field, the medium cap companies in 0:19:05.240 --> 0:19:08.360 particular will do much better than they have done before. 0:19:08.960 --> 0:19:12.440 And that's veteran investor Mark Moby is speaking with Bloomberg's 0:19:12.560 --> 0:19:15.360 Yosuf Gamal l D. And you can catch more at 0:19:15.359 --> 0:19:19.240 that conversation on the Bloomberg terminal and online at Bloomberg 0:19:19.680 --> 0:19:22.320 dot com. Ahead of the cash open on Wall Street 0:19:22.359 --> 0:19:25.520 for this Monday morning, the futures they've been fluctuating back 0:19:25.520 --> 0:19:27.760 and forth all morning long right now, the down futures 0:19:28.200 --> 0:19:30.640 they're unchanged and s and B E many futures are 0:19:30.680 --> 0:19:33.440 a six points lower, and then as their futures are 0:19:33.680 --> 0:19:38.000 sixty points lower. Overseas cyclical stocks you have like energy 0:19:38.200 --> 0:19:41.760 banks tied to the economic expansion, among the biggest gainers 0:19:41.840 --> 0:19:44.720 on the stocks. Your up six hundred. It's the offsetting 0:19:44.760 --> 0:19:47.160 declines in tech firms and some of the real estate. 0:19:47.280 --> 0:19:51.760 The treasury yields right now they are extending their climbs. 0:19:52.160 --> 0:19:55.359 The ten year yield one seventy six, the two year 0:19:55.440 --> 0:19:58.760 yield right now, the US at point eight six percent, 0:19:59.480 --> 0:20:08.120 and your sitting the Bloomberg Degree. The Bloomberg Weather from 0:20:08.200 --> 0:20:12.160 meteorologist Rob Caroline. Sunshine, breezy, colder today, the high thirty 0:20:12.480 --> 0:20:16.120 that's the night part of the cloudy, some snow showers possible, breezy, 0:20:16.320 --> 0:20:19.480 turning a lot colder after Budnes the low temperature fifteen 0:20:22.000 --> 0:20:26.520 broadcasting live from the Bloomberg Interacted Broker Studio in New York. 0:20:26.640 --> 0:20:31.320 Bloomberg Living Freedom to Washington, d C. Bloomberg on to Boston, 0:20:31.440 --> 0:20:34.680 Bloomberg one O six one to San Francisco, Bloomberg N 0:20:34.880 --> 0:20:38.159 sixteen to the country. Sirius XM CHADO one nineteen and 0:20:38.240 --> 0:20:41.600 around the globe, the Bloomberg Business APT and Bloomberg Radio 0:20:41.720 --> 0:20:50.760 dot Com. This is Bloomberg Daybreak at six thirty on 0:20:50.880 --> 0:20:54.399 Wall Street. Good barning. I'm John Tucker and I'm Parent Moscow. 0:20:54.520 --> 0:20:56.480 We are just about three hours away from the open 0:20:56.480 --> 0:20:58.159 of US trading. Let's get you up to date in 0:20:58.200 --> 0:21:00.440 the news you need to know at this hour. US 0:21:00.520 --> 0:21:03.720 futures are extending their losses now to begin the week. 0:21:03.960 --> 0:21:06.400 In the SNP five dred is down one point nine 0:21:06.400 --> 0:21:09.960 percent so far this year. That's the worst starts in 0:21:10.000 --> 0:21:12.320 to tech heavy NASDAC one hundred is down four and 0:21:12.359 --> 0:21:15.600 a half percent. It all comes as traders anticipate higher 0:21:15.640 --> 0:21:18.680 interest rates and Goldman Sax is ramping up its forecast 0:21:18.720 --> 0:21:20.919 on that front. Bloomberg's re need a young joins US 0:21:20.920 --> 0:21:24.199 now with more Karen Goldman SAX expects the Fed to 0:21:24.320 --> 0:21:27.359 raise interest rates four times this year and begin the 0:21:27.400 --> 0:21:31.000 balance sheet runoff process in July. That's moved up from 0:21:31.000 --> 0:21:33.960 a previous forecast of December. It's all because of a 0:21:34.000 --> 0:21:37.119 stronger labor market and hawk is signs from the Central 0:21:37.119 --> 0:21:40.320 Bank's latest meeting. Goldman says the Fed is set to 0:21:40.359 --> 0:21:44.679 normalized policy faster than we've ever seen before. I'm rened 0:21:44.720 --> 0:21:48.040 a young Bloomberg Daybreak, thanks for reneed a. Treasury yields 0:21:48.080 --> 0:21:51.200 they continue to climb with a ten year benchmark moving 0:21:51.280 --> 0:21:55.639 closer to two. Garfield Reynolds covers rates for Bloomberg News 0:21:56.320 --> 0:21:59.280 insing can come in this quarta and if it does 0:21:59.359 --> 0:22:02.720 bust through that with the same it could go significantly 0:22:02.800 --> 0:22:06.280 higher before anybody calls the Holt because there's a little 0:22:06.320 --> 0:22:10.120 bit too much complacency out there about just how how 0:22:10.840 --> 0:22:14.720 Bloomberg's Garfield Reynolds is this week's reports on inflation CPI 0:22:14.880 --> 0:22:17.840 on Wednesday and pp I on Thursday will be key 0:22:17.960 --> 0:22:21.160 for the bond market. Well. John Geo Politics is also 0:22:21.240 --> 0:22:24.360 and focuses wearing. Ahead of meetings between the US and Russia, 0:22:24.440 --> 0:22:27.160 Bloomberg News has learned the White House in US allies 0:22:27.240 --> 0:22:31.560 may impose export restrictions on Moscow if lavemrar Putin seizes 0:22:31.640 --> 0:22:34.840 more of Ukraine. To get the latest from Bloomberg's Marietta Today, 0:22:34.840 --> 0:22:36.399 Oe so far, you know, some of the lines that 0:22:36.440 --> 0:22:38.600 we've gotten here is pretty much the same kind of 0:22:38.600 --> 0:22:41.040 mood music that was heard for weeks now, kind of saying, 0:22:41.080 --> 0:22:43.640 you know, the United States, there's two ways here, one 0:22:43.680 --> 0:22:45.840 in which Russia de escalates and we go for a 0:22:45.880 --> 0:22:49.840 diplomatic solution. If there's no diplomatic solution to the Ukraine tension, 0:22:49.920 --> 0:22:53.960 then we could see immediate and huge, massive repercussions on 0:22:54.040 --> 0:22:56.639 the Russian economy. And of course Russia still playing this 0:22:56.800 --> 0:22:59.920 very tough saying we're not going into talks to conceive 0:23:00.440 --> 0:23:03.840 and Bloomberg's Maria today, oh says talks are ongoing in Geneva. 0:23:03.920 --> 0:23:07.280 They'll be followed by NATO meetings in Brussels later this week. 0:23:07.920 --> 0:23:10.520 S and P futures are a little change to lower 0:23:10.560 --> 0:23:13.880