Speaker 1: Live from the Bloomberg Interactive Burgers Studios is Bloomberg day
Speaker 1: Break for Tuesday, January thirty one. Coming up today, The
Speaker 1: investors remain cautious as the Fed kicks off its first
Speaker 1: policy meeting of three for the first time in a year.
Speaker 1: The I m f A raises its global economic growth
Speaker 1: outlook ubs shair slide is, the firm's investment bank underperforms
Speaker 1: its US rivals, and the White House moves to end
Speaker 1: COVID emergency measures. More Memphis police officers have been disciplined
Speaker 1: in the deadly beating Tyree Nichols, plus concealed Carree gun
Speaker 1: restrictions have been blocked In New Jersey, I'm Michael barn
Speaker 1: More Ahead, I'm John stattwer In sports Lebron James didn't
Speaker 1: play in the nets in Brooklyn. Beat the Lakers, who
Speaker 1: visit the Knicks tonight. That's all straight ahead on Bloomberg
Speaker 1: day Break on Bloomberg eleven, Freo New York, Bloomberg Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties,
Speaker 1: San Francisco, Sirius x M one nineteen and around the
Speaker 1: world on Bloomberg Radio dot Com. UM and via the
Speaker 1: Bloomberg Business add good morning. I'm Nathan Hagar and I'm
Speaker 1: Karin Moscow. Here are the stories we're following today. The
Speaker 1: Federal Reserve kicks off its first policy meeting of today
Speaker 1: and that has investors trading cautiously. Yesterday was the worst
Speaker 1: for the NASDAC one x in five weeks, while the
Speaker 1: SMP five hundred fell the most nearly two weeks. Dennis Gartman,
Speaker 1: chairman of the University of acron Endowment Investment Committee, says
Speaker 1: the Fed may be more aggressive than investors think right now.
Speaker 1: That consensus is the Fed is going to raise the
Speaker 1: overnight said funds raised by twenty five basis points. I
Speaker 1: have a sneaky suspicion they'll probably go by fifty, but
Speaker 1: time shall tell. But we have a you had a
Speaker 1: strong rally since October last year. We found some support
Speaker 1: for the SMP, We found some support for the NASDAC,
Speaker 1: but the rally head has probably exhausted itself. Dennis Gartman,
Speaker 1: the former publisher of the Gartment Letter, says he is
Speaker 1: backing away from a marginal long position and stocks overall,
Speaker 1: and he's been bearish on the market since January of
Speaker 1: last year. Nathan, there are signs of hope. For the
Speaker 1: first time in a year, the International Monetary Fund is
Speaker 1: raising its global economic growth outlook. We get the details
Speaker 1: live but the Bloomberg Steve rapp Aboard, Good morning, Steve,
Speaker 1: Good morning, Karen and Nathan. The i m F predicts
Speaker 1: gross domestic product will expand two point nine percent this
Speaker 1: year before rebounding to three point one percent in twenty four.
Speaker 1: Chief economist Pierre Olivier Gurasha tells Bloomberg TV the numbers
Speaker 1: for global growth remain well below pre pandemic levels. The
Speaker 1: worry is more with what we call core inflation that
Speaker 1: excludes energy and food prices are typically more volatile, and
Speaker 1: this core inflation measures have shown more persistent, and they
Speaker 1: have not picked yet in many countries, and they're still
Speaker 1: far away from settlement targets. So the job is not done.
Speaker 1: Gassia says, there are still some challenges to get on
Speaker 1: our way to sustainable recovery. Live in New York. I'm
Speaker 1: Steve Rappaport, Bloomberg Daybreak. Thank you, Steve. Turning to corporate
Speaker 1: earnings now getting the first results from European banks, and
Speaker 1: shares of ubs are down three and a half percent
Speaker 1: of the Swiss Bank reported profit above estimates. Revenues at
Speaker 1: the investment bank fell by twenty four percent, and compensation
Speaker 1: costs rose. UBS CEO Ralph Hammers says, well, things are
Speaker 1: looking up. Clients remain conscious. We see positive news coming
Speaker 1: from China. We see positive news coming on on on,
Speaker 1: also inflation. We see some light life back in the
Speaker 1: elaborage capital markets, which is normally a leading indicator. However,
Speaker 1: all early, all early movements, so I don't think there
Speaker 1: was a trend there yet. So for the moment, I
Speaker 1: do think that our clients are hopeful, but in a
Speaker 1: wait and see pattern. UBS CEO Ralph Hammers tells us
Speaker 1: the bank plans to buy back more than five billion
Speaker 1: dollars of shares this year. Stay tuned for more of
Speaker 1: that interview coming up shortly on Bloomberg Daybreak. Well back
Speaker 1: here in the US, Nathan, we get earning from thirty
Speaker 1: companies in the S and P five hund today and
Speaker 1: then includes oil behemoth ex On mobile, we get a
Speaker 1: preview from Bloomberg's Tom Busby after a record profit made
Speaker 1: in last Sumber's third quarter, when prices at the gas
Speaker 1: pump at all time highs the nation's biggest oil company,
Speaker 1: is expected to see earnings fall by as much as
Speaker 1: twenty six percent. That's on lower oil and natural gas prices. Still,
Speaker 1: full year profits expected to top fifty seven and a
Speaker 1: half billion, blowing away the previous record set back in
Speaker 1: two thousand eight. For the just finished quarter, look for
Speaker 1: adjusted earnings per share of three dollars thirty cents on
Speaker 1: net income of thirteen point five billion dollars. I'm Tom
Speaker 1: busby Bloomberg Daybreak. Thanks Tom, let's turn to the pandemic
Speaker 1: now and policy out of d C. The White House
Speaker 1: will end a pair of COVID nineteen emergency declarations in May.
Speaker 1: Amy Morris explains what it means from our Bloomberg newsroom
Speaker 1: in Washington. The COVID nineteen National Emergency and Public Health
Speaker 1: Emergency will be extended to May eleventh and then lifted.
Speaker 1: Millions of Americans have received free COVID tests, treatments, and vaccines,
Speaker 1: and not all that will be free anymore. It will
Speaker 1: also mean the end of Title forty two, which allows
Speaker 1: border agents to expel migrants at ports of entry without
Speaker 1: the chance to ask for asylum, and the continuous enrollment
Speaker 1: provision of medicaid will expire. The CDC says five people
Speaker 1: in the US die each day from COVID nineteen in Washington,
Speaker 1: I maybe Morris Bloomberg Daybreak right, Amy, thank you my
Speaker 1: US China relations also in focus this morning, the Biden
Speaker 1: administration is stepping up its crackdown on the Chinese industrial sector.
Speaker 1: Bloomberg News has learned it's considering whether to cut off
Speaker 1: Hahwei Technologies from all of its American suppliers, that includes
Speaker 1: chip makers like Intel and Qualcom. Whahwei is long suspected
Speaker 1: of ties to the Beijian government and the Chinese military.
Speaker 1: Meantimecare and economic data out of China today point to
Speaker 1: more growth. China's manufacturing and services expanded in January for
Speaker 1: the first time in four months. Bloomberg Daybreak Asia anchor
Speaker 1: Brian Curtis has more from Hong Kong. The COVID reopening
Speaker 1: had a big effect, so did the boost in travel
Speaker 1: and spending during the Lunar New Year holiday that powered
Speaker 1: the Non Manufacturing index to fifty four point four, well
Speaker 1: up on December and higher than the estimate of fifty two.
Speaker 1: The official p m I rose to fifty point one
Speaker 1: from forty seven in December, slightly beating estimates of an
Speaker 1: even fifty. Not too shabby overall in that many businesses
Speaker 1: closed for the holiday and good for the global economy,
Speaker 1: but still a rather uneven path going forward, you know,
Speaker 1: Kong Bryan Curtis, Bloomberg daybreak, right, Brian, thank you, And
Speaker 1: it's the end of an era in the aviation industry.
Speaker 1: Boeing will deliver its final seven forty seven today. A
Speaker 1: cargo version of the jumbo Jack will be turned over
Speaker 1: to Atlas Air Futures lower this morning, your latest local
Speaker 1: headlines straight ahead, This is Bloomberg, Thank you, Caring. It's
Speaker 1: thirty eight degrees in Central Park, might say an early shower,
Speaker 1: especially north of the city. Otherwise partly sunny today, Temperatures
Speaker 1: in the low forties. You can see a few flurries
Speaker 1: tonight as we get down to the upper twenties. Time.
Speaker 1: How to take a look at some of the other
Speaker 1: stories making news in New York and around the world
Speaker 1: with Bloomberg's Michael Bark Morning, Michael good More, Nathan two
Speaker 1: more Memphis police officers have been put on leave, and
Speaker 1: the Tyree Nichols beating death. It marks the sixth and
Speaker 1: seventh officers off the job. Also, two E M T
Speaker 1: s and a driver have now been fired. Congresswoman Gwen Moore,
Speaker 1: a Democrat from Wiskonsin and member of the Black Congressional Caucus,
Speaker 1: discusses police reform efforts in Congress. Moore was asked whether
Speaker 1: any movement on reform can happen in a Republican controlled outs.
Speaker 1: There are be an opportunity to do that because you know,
Speaker 1: when you start talking about a lot of crimes, a
Speaker 1: lot of this is occurring in sort so called red
Speaker 1: state UH and in places not governed by Democrats who
Speaker 1: are in charge, he would say, but this would be
Speaker 1: something we'd be able to bring to their attention. Congresswoman
Speaker 1: Moore spoke with Joe Matthew on Bloomberg sound on, which
Speaker 1: can be heard at five PM. A federal judge in
Speaker 1: New Jersey block to state law restricting the carrying of
Speaker 1: concealed firearms in parks, restaurants, bars, and their public places
Speaker 1: from going into effect. The judge issued a temporary restraining
Speaker 1: order against the law in a suit brought by gun
Speaker 1: rights advocates who are challenging its constitutionality. New Jersey has
Speaker 1: banned guns from public places after last year's Supreme Court ruling.
Speaker 1: The US is reaffirming ties with a key Asian ally.
Speaker 1: The top Pentagon official is in South Korea for talks
Speaker 1: to discuss growing threats from Pyongyang. In Soul, Defense Secretary
Speaker 1: Lloyd Austin described improved efforts to protect the Korean peninsula.
Speaker 1: As things continue to evolve, our alliance continues to strengthen,
Speaker 1: and and UH we look for ways to strengthen that
Speaker 1: extended the turns. Secretary Austin says we have more than
Speaker 1: twenty eight thousand uniformed personnel in South Korea. The worst
Speaker 1: suicide bombing in over four years tour through a mosque
Speaker 1: in a high security compound in northwestern Pakistan's Peshawar City,
Speaker 1: killing at least eighty people and leaving dozens wounded. Former
Speaker 1: President Donald Trump is suing journalist Bob Woodward for releasing
Speaker 1: recordings of interviews that he gave to the journalist in
Speaker 1: twenty nine and Trump claims he never agreed to those
Speaker 1: tapes being shared with the public. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than twenty seven hundred journalists analysts more than
Speaker 1: a hundred twenty countries. I'm Michael Barr. This is Bloomberg Nathan.
Speaker 1: Thanks Michael, time for the Bloomberg Sports Update, brought to
Speaker 1: you by Tri stayed Out. Good morning, John Stash, Good morning, Nathan.
Speaker 1: Lebron James is only visit to New York. Obviously a
Speaker 1: hot ticket chanced to see the guy who's on the
Speaker 1: verge of the coming of the NBA's all time leading score.
Speaker 1: But he played forty four minutes in an overtime lost
Speaker 1: Saturday in Boston and now has a sore foot. So
Speaker 1: no Lebron in Brooklyn, and then that's took advantage. They
Speaker 1: beat the Lakers four, Kyrie Irving twenty six points, Patty
Speaker 1: Mills and Camp Thomas both off the bench for twenty one.
Speaker 1: It's not known if Lebron is gonna play tonight the
Speaker 1: Lakers visit the Knicks. Four NFL teams still looking for
Speaker 1: a head coach. Meanwhile, coordinator switched Kellen Moore, coach the
Speaker 1: Cowboys offense the last four years. The day after his
Speaker 1: departure in Dallas, he joined the staff of the l
Speaker 1: A Chargers that a FC championship game in Kansas City
Speaker 1: will be remembered for the penalty in the final seconds
Speaker 1: on the Bengals, Joseph Aside late hit out of bounds
Speaker 1: of Patrick Mahomes that allowed the Chiefs to get close
Speaker 1: enough to kick a game winning field one. And I
Speaker 1: had the support of my teammates, and I just gotta
Speaker 1: I gotta like Samson, I gotta learn from experience, and um,
Speaker 1: I gotta know that to get close to that quarterback
Speaker 1: whennews close to that silent differs anything that could possibly
Speaker 1: closed the penalty in the situation like that, I gotta
Speaker 1: do better to do one. Cincinnati teammate Jermaine Pratt was
Speaker 1: caught on video criticized you know say he did later apologize.
Speaker 1: Hockey Hall of Famer Bobby Hall has passed away at
Speaker 1: eighty four on the ice. One of the all time greats,
Speaker 1: twelfth time All Star in Chicago, two time m v P.
Speaker 1: Hull was also accused multiple times of domestic violence and
Speaker 1: of making racist comments. John stash Our Bloomberg Sports Live
Speaker 1: from coast to coast, from New York to San Francisco,
Speaker 1: Boston to Washington, d C. Nationwide on Sirius XAMP, the
Speaker 1: Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: Good morning, I'm Nathan Hagar. Let's hear more now from
Speaker 1: our interview with the CEO of UBS, Ralph Hammers. The
Speaker 1: Swiss bank reported earnings this morning that mostly fell flat.
Speaker 1: UBS underperformed its US counterparts, equities revenue slumped, and the
Speaker 1: bank failed to match gains from its peers in fixed
Speaker 1: income trading. It's the first glimpse and how European investment
Speaker 1: banks performed during the most recent quarter. Ralph Hammers says
Speaker 1: last year was marked by a challenging macroeconomic environment. Let's
Speaker 1: get more on the UBS CEOs thoughts and the path ahead.
Speaker 1: In a conversation with Bloomberg's Manus Cranny Blahamas, CEO of
Speaker 1: ubscot to see you this morning, said a numbers, buy back, dividend,
Speaker 1: all glowing headlines, but if you look at the net income,
Speaker 1: it's driven by interesting five percent bump from interest income.
Speaker 1: Is this the peak of interest income? Can it squeeze higher? Well? So, indeed,
Speaker 1: we had a very good set of numbers in the
Speaker 1: fourth quarter, and not only on the income side, but
Speaker 1: specifically also in the an aligning flow side. Twenty three
Speaker 1: billion of that new fee generating assets eleven billion of
Speaker 1: net new money nine billion of net new deposits, basically
Speaker 1: showing the trust of our customers to basically place the
Speaker 1: money with us and for us to help them manage it.
Speaker 1: On the back of that, clearly with lower market values
Speaker 1: on the fee income that was a bit lower, but
Speaker 1: the interest income really came through. It is very much
Speaker 1: the dollar effect and the space Frank effect now as well.
Speaker 1: On the dollar effect, we feel most like and most
Speaker 1: likely peaked. However, there's more to come on euro and
Speaker 1: certainly also on the swift rank. Just two weeks ago
Speaker 1: it was the feeling that maybe we're near the top
Speaker 1: of these central bank in terms of the hiking cycle.
Speaker 1: Specifically the Fed. Paul Krugman joined this, yes, and he said,
Speaker 1: be careful, stop getting over your skis and overconfident on inflation.
Speaker 1: Are you overconfident and picked on inflation? Um, we may
Speaker 1: have picked on inflation, but it doesn't mean that these
Speaker 1: center banks will not further increase some rates. Just to
Speaker 1: be sure, I do think that they are very clear
Speaker 1: in terms of what they want to achieve. They really
Speaker 1: want to get the structural inflation down and that could
Speaker 1: come along with a real deceleration of economic growth. I
Speaker 1: think the recipe is that we rather have a short
Speaker 1: term pain with a long term gain then not being
Speaker 1: tough enough in order to get that inflation back to
Speaker 1: that level. And that is what I think central banks
Speaker 1: have in their minds. In the fourth quarter, you had
Speaker 1: some short term pain. The piece of down seventeen per
Speaker 1: cent transactions we downe in nineteen percent? Is that the
Speaker 1: worst is that? Is that the deer of the side
Speaker 1: lining of wealth engine clients. Well, if you look at
Speaker 1: at the different components on the wealth management side. So
Speaker 1: first what is important is that you see that the
Speaker 1: trust is there and that clients come to you that
Speaker 1: busically shows that we have the right professional services, we
Speaker 1: have the right products, we have the right advice, we
Speaker 1: can take them through a period of challenges and and clarity.
Speaker 1: That period of unclarity is still there. Right. So we
Speaker 1: see positive news coming from China, We see positive news
Speaker 1: coming on on on also inflation. We see some light
Speaker 1: life back in the leverage capital markets, which is normally
Speaker 1: a leading indicator. However, all early all early movements, so
Speaker 1: I don't think there was a trend there yet. So
Speaker 1: for the moment, I do think that our clients are
Speaker 1: hopeful but in a wait and see pattern. But there
Speaker 1: has been a move to risk on as busy debate
Speaker 1: one monthment it's going to move to risk on assets.
Speaker 1: You use the word sideline for well management clients in
Speaker 1: the fourth quarter. Are they nibbling? Are they active in
Speaker 1: acquiring risk on client wisconses. That's not what we see.
Speaker 1: We truly see that they are waiting for more clarity
Speaker 1: to come, and I think that's wise. We really want
Speaker 1: to make sure that there is more visibility. I do
Speaker 1: think that the coming weeks will bring with that more visibility.
Speaker 1: We see these center banks coming to the market. We
Speaker 1: see the New Year's, the Chinese New Year's behind us,
Speaker 1: and see whether the positivism coming from China will continue.
Speaker 1: We see corporate earnest coming through in the next couple
Speaker 1: of weeks as well. So I think the couple of
Speaker 1: the next couple of weeks from different sites will give
Speaker 1: us much more data points to get a feel for
Speaker 1: should we be risk on or not. And that's the
Speaker 1: CEO of UBS, Ralph Hammer's speaking with Bloomberg's Mannis Cranny
Speaker 1: this morning. Earnings from UVS are underwhelming investors. Revenue from
Speaker 1: the bank's Equities division felt in the latest quarter, business
Speaker 1: from foreign exchange ray send credit did grow, but at
Speaker 1: a rate around half what US banks saw in the period,
Speaker 1: And right now we're watching shares of ubs fall there
Speaker 1: down three point six percent. In Zurich, This is Bloomberg
Speaker 1: Daybreak Today, your morning brief on the stories making news
Speaker 1: from Wall Street to Washington and beyond. Look for us
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Speaker 1: You can also listen live each morning starting at five
Speaker 1: am Wall Street time on Bloomberg eleven three oh in
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Speaker 1: Bloomberg dot Com. I'm Nathan Hager and I'm Karen mall Scale.
Speaker 1: Join us again tomorrow morning for all the news you
Speaker 1: need to start your day right here on Bloomberg Daybreak