1 00:00:02,600 --> 00:00:05,880 Speaker 1: Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg 2 00:00:05,960 --> 00:00:09,960 Speaker 1: Daybreak for Friday, January fourteen two. Coming up this hour. 3 00:00:10,320 --> 00:00:13,960 Speaker 1: US futures stabilize after yesterday sell off. Tech is under 4 00:00:13,960 --> 00:00:17,439 Speaker 1: pressure as FED officials build the case for higher interest rates. 5 00:00:17,640 --> 00:00:20,319 Speaker 1: Banks are in focus. Is JP Morgan's City Group and 6 00:00:20,320 --> 00:00:23,439 Speaker 1: Wells Fargo report earnings and a major stepback for President 7 00:00:23,480 --> 00:00:27,120 Speaker 1: Biden's vaccine mandate. New Jersey Governor Murphy signs and abortion 8 00:00:27,200 --> 00:00:29,440 Speaker 1: rights bill on the state, plus a push to eliminate 9 00:00:29,480 --> 00:00:31,319 Speaker 1: the full of US to rule is all but dead 10 00:00:31,360 --> 00:00:35,320 Speaker 1: in the Senate. Michael blarn More ahead, I'm Don Stashon sports, 11 00:00:35,360 --> 00:00:38,200 Speaker 1: the Nets lost the Rangers one, the Islanders beat the Devils, 12 00:00:38,200 --> 00:00:41,880 Speaker 1: and in Australia Novak Djokovic and as Visa taken away again. 13 00:00:44,080 --> 00:00:48,640 Speaker 1: That's all straight ahead on Bloomberg day Break on Bloomberg Elimentoryo, 14 00:00:48,760 --> 00:00:53,040 Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one, O 15 00:00:53,200 --> 00:00:57,640 Speaker 1: six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x 16 00:00:57,840 --> 00:01:00,880 Speaker 1: M one nineteen and around the world Old on Bloomberg 17 00:01:00,960 --> 00:01:07,920 Speaker 1: Radio dot Com and via The Bloomberg Business. Good Morning, 18 00:01:07,959 --> 00:01:11,080 Speaker 1: I'm Nathan Hagar and I'm Karen Moscow and US DOT 19 00:01:11,120 --> 00:01:13,680 Speaker 1: index futures are on the rise this morning ahead of 20 00:01:13,760 --> 00:01:15,920 Speaker 1: big bank earnings. We're coming up to five o one 21 00:01:15,920 --> 00:01:17,880 Speaker 1: on Wall Street, and we check the markets every fifteen 22 00:01:17,920 --> 00:01:20,760 Speaker 1: minutes throughout the trading day. On bloomberg S and P 23 00:01:20,959 --> 00:01:24,240 Speaker 1: futures up ten points down, futures of ninety one, Nasdaq 24 00:01:24,319 --> 00:01:28,080 Speaker 1: futures up twenty five, Ten year Treasury down eight thirty seconds, 25 00:01:28,120 --> 00:01:30,560 Speaker 1: held one point seven three per cent, and the yield 26 00:01:30,560 --> 00:01:33,199 Speaker 1: on the two year point nine two percent. And nim 27 00:01:33,280 --> 00:01:36,479 Speaker 1: X screwed oil is up seven tenths percent. Nathan, Well, Karen, 28 00:01:36,520 --> 00:01:39,040 Speaker 1: We're coming off another day of declines on Wall Street. 29 00:01:39,080 --> 00:01:41,319 Speaker 1: The tech heavy NASDAC posted a loss of two and 30 00:01:41,360 --> 00:01:44,160 Speaker 1: a half percent. That's after several FETE officials beat the 31 00:01:44,240 --> 00:01:47,160 Speaker 1: drum for higher interest rates. It all started with Governor 32 00:01:47,240 --> 00:01:50,360 Speaker 1: Lyle Brainerd as part of her Senate confirmation hearing. Our 33 00:01:50,440 --> 00:01:54,720 Speaker 1: monetary policy is focused on getting inflation back down to 34 00:01:54,840 --> 00:01:58,480 Speaker 1: two percent while sustaining a recovery that includes everyone. This 35 00:01:58,560 --> 00:02:01,480 Speaker 1: is our most important task. Lile Brainerd says the Fed 36 00:02:01,600 --> 00:02:04,200 Speaker 1: could raise rates as soon as March. Consensus calls for 37 00:02:04,280 --> 00:02:06,960 Speaker 1: three or four hikes from the FED this year. Governor 38 00:02:07,000 --> 00:02:10,240 Speaker 1: Christopher Waller calls three increases a good baseline, at least 39 00:02:10,240 --> 00:02:12,399 Speaker 1: for now. We'll have to wait and see what inflation 40 00:02:12,480 --> 00:02:14,360 Speaker 1: looks like in the second half of the year. If 41 00:02:14,400 --> 00:02:17,040 Speaker 1: it continues to be high, the case will be made 42 00:02:17,080 --> 00:02:20,600 Speaker 1: for four, maybe five hikes. Governor Chris Waller made those 43 00:02:20,600 --> 00:02:23,440 Speaker 1: comments in an interview with Bloomberg's Kathleen Hayes. He joins 44 00:02:23,440 --> 00:02:27,400 Speaker 1: Philadelphia FED chiefs Patrick Harker and Jim Bullard of St. Louis. 45 00:02:27,480 --> 00:02:31,240 Speaker 1: They've also floated the idea for increases. Chicago Fed President 46 00:02:31,360 --> 00:02:34,639 Speaker 1: Charles Evans is more conscious he wants more inflation data 47 00:02:34,840 --> 00:02:37,400 Speaker 1: before committing to a March liftoff. We need to get 48 00:02:37,440 --> 00:02:43,000 Speaker 1: inflation back down in the ballpark of our two percent objective. UM. 49 00:02:43,040 --> 00:02:45,920 Speaker 1: I think it's probably going to be UM at the 50 00:02:46,040 --> 00:02:49,120 Speaker 1: end of this year. It's going to be elevated. It's UM. 51 00:02:49,160 --> 00:02:51,000 Speaker 1: I don't think it's gonna be three percent at the 52 00:02:51,040 --> 00:02:53,000 Speaker 1: end of this year, and I think it's more likely 53 00:02:53,040 --> 00:02:54,800 Speaker 1: to be two and a half as measured by the 54 00:02:55,240 --> 00:02:59,080 Speaker 1: personal consumption expenditure. Charles Evans will be watching that PC 55 00:02:59,360 --> 00:03:02,079 Speaker 1: inflation a closely. We get their next reading on that 56 00:03:02,200 --> 00:03:04,520 Speaker 1: coming up at the end of this month. Well, Nathan, 57 00:03:04,560 --> 00:03:06,760 Speaker 1: the White House is set to add some new faces 58 00:03:06,800 --> 00:03:09,400 Speaker 1: at the FED now. President Biden has selected as picks 59 00:03:09,440 --> 00:03:11,800 Speaker 1: to fill open seats at the Central Bank, and Bloomberg's 60 00:03:11,840 --> 00:03:14,440 Speaker 1: Ornia Young and joins us live at the Latest. Good Morning, Nida, 61 00:03:14,520 --> 00:03:17,960 Speaker 1: Good morning Karen Bloomberg. Sources say President Biden is planning 62 00:03:17,960 --> 00:03:21,200 Speaker 1: to nominate Sarah bloom Breskin to the fifth top banking 63 00:03:21,280 --> 00:03:25,799 Speaker 1: regulator spot. He'll also announce economists Philip Jefferson and Lisa 64 00:03:25,840 --> 00:03:28,800 Speaker 1: Cook has picks for governors. Cook would be the first 65 00:03:28,840 --> 00:03:31,600 Speaker 1: black woman on the fifth board and Jefferson would be 66 00:03:31,639 --> 00:03:34,800 Speaker 1: the fourth black man. The picks would also help Biden 67 00:03:34,920 --> 00:03:37,920 Speaker 1: keep his promise to improve diversity at the Central Bank. 68 00:03:38,320 --> 00:03:42,000 Speaker 1: His nominations would as well add experts focused on a 69 00:03:42,080 --> 00:03:45,240 Speaker 1: broad job market recovery as they seek to tame the 70 00:03:45,280 --> 00:03:48,800 Speaker 1: hottest inflation in a generation. Live in New York, I'm 71 00:03:48,800 --> 00:03:51,480 Speaker 1: gonna need a Young Bloomberg daybreak, Okay, Nita, thank you, 72 00:03:51,480 --> 00:03:53,360 Speaker 1: and we get more data for the FED to digest 73 00:03:53,480 --> 00:03:56,360 Speaker 1: this morning. Retail sales figures for December are do out 74 00:03:56,360 --> 00:03:58,560 Speaker 1: at eight thirty am Wall Street Time. Let's get a 75 00:03:58,600 --> 00:04:01,680 Speaker 1: preview now from Bloomberg's Mike McKee. The O Macron variant 76 00:04:01,680 --> 00:04:04,280 Speaker 1: will weigh on the retail sales numbers as many bars 77 00:04:04,280 --> 00:04:06,800 Speaker 1: and restaurants were forced to close during the holiday season. 78 00:04:07,080 --> 00:04:10,680 Speaker 1: Gasoline prices and auto sales also decline dealers struggling to 79 00:04:10,720 --> 00:04:13,840 Speaker 1: get cars, But it does appear core sales were strong, 80 00:04:13,920 --> 00:04:17,640 Speaker 1: everything from toys to supporting goods and clothing. Americans incomes 81 00:04:17,640 --> 00:04:20,719 Speaker 1: were bolstered by a government fiscal aid and rising wages, 82 00:04:20,960 --> 00:04:24,080 Speaker 1: particularly at the lower end of the income spectrum. Then 83 00:04:24,080 --> 00:04:27,719 Speaker 1: not so necessarily good news is retail sales will also 84 00:04:27,800 --> 00:04:32,200 Speaker 1: benefit from soaring inflation, as sales are reported in dollar figures. 85 00:04:32,480 --> 00:04:35,440 Speaker 1: Michael McKee, Bloomberg Daybreak. All right, Michael, thank you. All. 86 00:04:35,480 --> 00:04:38,680 Speaker 1: Earnings also come into focus today. Big banks kick off 87 00:04:38,680 --> 00:04:40,960 Speaker 1: this season with results to do out this morning at 88 00:04:40,960 --> 00:04:44,800 Speaker 1: Bloomberg Global Finance Correspondence, and Ali Bostick has more. JP 89 00:04:44,920 --> 00:04:49,240 Speaker 1: Morgan is kicking off earnings and expectations are high that 90 00:04:49,360 --> 00:04:53,440 Speaker 1: consumer loan growth is coming back and that trading will 91 00:04:53,480 --> 00:04:56,160 Speaker 1: hold up even as it starts to moderate and even 92 00:04:56,200 --> 00:04:59,200 Speaker 1: decline in many places on Wall Street. With that said, 93 00:04:59,240 --> 00:05:01,880 Speaker 1: we're also looking a city group and Wells Fargo earnings 94 00:05:02,160 --> 00:05:04,520 Speaker 1: not only to see that the consumer is returning, but 95 00:05:04,640 --> 00:05:07,120 Speaker 1: also to make sure that those banks can keep costs 96 00:05:07,440 --> 00:05:10,960 Speaker 1: down as they are more under pressure with wages rising 97 00:05:11,000 --> 00:05:14,080 Speaker 1: and more investment in technology. Wells Fargo in City Group 98 00:05:14,120 --> 00:05:17,920 Speaker 1: have regulatory risks as well that investors will want updates on. 99 00:05:18,520 --> 00:05:21,440 Speaker 1: In New York, Shnali Bastic Bloomberg Day Break. Okay, Shinnali, 100 00:05:21,520 --> 00:05:23,440 Speaker 1: thank you now to the latest on the pandemic and 101 00:05:23,560 --> 00:05:27,000 Speaker 1: a major legal setback for President Biden. The Supreme Court 102 00:05:27,040 --> 00:05:29,760 Speaker 1: has blocked his rule that would require large companies to 103 00:05:29,800 --> 00:05:33,599 Speaker 1: mandate vaccines or weekly testing for employees. We got reaction 104 00:05:33,680 --> 00:05:36,680 Speaker 1: from Labor Secretary Marty Walsh. We just have to continue 105 00:05:36,760 --> 00:05:39,159 Speaker 1: our efforts with the present laid out. You know, is 106 00:05:39,160 --> 00:05:41,000 Speaker 1: this a setback. I wouldn't say if the setback, if 107 00:05:41,000 --> 00:05:43,279 Speaker 1: it to be a disappointment is what it is. But 108 00:05:43,320 --> 00:05:45,360 Speaker 1: we're going to continue to do everything we can. I'm 109 00:05:45,360 --> 00:05:48,160 Speaker 1: going to continue everything I can as Secretary of Labor 110 00:05:48,200 --> 00:05:50,440 Speaker 1: for the United States of America to make sure every 111 00:05:50,440 --> 00:05:54,279 Speaker 1: single worker in America is safe. Labor Secretary Marty Walsh 112 00:05:54,279 --> 00:05:57,479 Speaker 1: spoke with our Washington correspondent Joe Matthew on Bloomberg Sound 113 00:05:57,520 --> 00:06:00,080 Speaker 1: On Catch the program weekdays at five pm Eastern on 114 00:06:00,080 --> 00:06:03,520 Speaker 1: Bloomberg Radio. Nathan. When it comes to vaccinated employees, City 115 00:06:03,560 --> 00:06:06,280 Speaker 1: Group is out with its data. The bank says it's 116 00:06:06,320 --> 00:06:09,160 Speaker 1: US employees have complied with its vaccine mandate, and the 117 00:06:09,200 --> 00:06:12,200 Speaker 1: bank expects more workers to comply its order or comply 118 00:06:12,320 --> 00:06:15,359 Speaker 1: with its order before today's deadline. Cities mandate is one 119 00:06:15,400 --> 00:06:17,880 Speaker 1: of the strictest on Wall Street, making COVID vaccines a 120 00:06:17,920 --> 00:06:21,039 Speaker 1: condition of employment. Meantime, Karen, the White House is ramping 121 00:06:21,120 --> 00:06:24,240 Speaker 1: up other plans to tackle the pandemic. President Biden's doubling 122 00:06:24,320 --> 00:06:26,720 Speaker 1: his order of rapid COVID tests to send to Americans. 123 00:06:26,920 --> 00:06:29,840 Speaker 1: He says he'll also distribute high quality masks. Where I'm 124 00:06:29,880 --> 00:06:32,840 Speaker 1: making high quality masks available to American people in the 125 00:06:32,880 --> 00:06:36,880 Speaker 1: American people for free. You know, I know we all 126 00:06:37,080 --> 00:06:39,880 Speaker 1: wish that we could finally be done with wearing masks. 127 00:06:39,960 --> 00:06:43,919 Speaker 1: I get it, but there is they're a really important tool. 128 00:06:44,160 --> 00:06:46,440 Speaker 1: When the President says he'll have a formal announcement on 129 00:06:46,560 --> 00:06:50,200 Speaker 1: distributing masks next week. Turning to the markets now, Nathan, 130 00:06:50,240 --> 00:06:53,000 Speaker 1: Crypto is in focus today. A dodge coin search as 131 00:06:53,080 --> 00:06:55,760 Speaker 1: much as fift percent this morning, after Elon Mush said 132 00:06:55,760 --> 00:06:58,280 Speaker 1: it can be used to buy Tesla merchandise. Muski is 133 00:06:58,320 --> 00:07:01,400 Speaker 1: a frequent booster of dogecoin on social media and is 134 00:07:01,480 --> 00:07:03,839 Speaker 1: hinted at the move for some time. And Karen Tiger 135 00:07:03,920 --> 00:07:06,479 Speaker 1: Woods is in financial news this morning. A blank check 136 00:07:06,520 --> 00:07:08,600 Speaker 1: company backed by the golf Star has filed to raise 137 00:07:08,640 --> 00:07:10,720 Speaker 1: a hundred fifty million dollars in an I p O 138 00:07:11,200 --> 00:07:13,480 Speaker 1: company plans to seek a merger target in the sports 139 00:07:13,640 --> 00:07:16,400 Speaker 1: or health tech sectors with an enterprise value of as 140 00:07:16,520 --> 00:07:23,800 Speaker 1: much as a billion dollars. This is Bloomberg. It's south 141 00:07:23,880 --> 00:07:26,120 Speaker 1: five oh seven on Wall Street where thirty nine degrees 142 00:07:26,240 --> 00:07:28,520 Speaker 1: in Central Park. Already dealing with an accident on the 143 00:07:28,560 --> 00:07:31,440 Speaker 1: westbound Gowanas by Hamilton Avenue. On details for you in 144 00:07:31,520 --> 00:07:34,320 Speaker 1: traffic First, Michael Barr is here with more on what's 145 00:07:34,360 --> 00:07:37,200 Speaker 1: going on in New York and around the world. Happy Friday, Michael, 146 00:07:37,240 --> 00:07:39,960 Speaker 1: Happy Friday to you, Nathan. New York City Mayor Eric 147 00:07:40,040 --> 00:07:43,760 Speaker 1: Adams said he is considering a temporary remote option for 148 00:07:44,000 --> 00:07:46,680 Speaker 1: the city's public schools and a stark reversal from his 149 00:07:46,800 --> 00:07:49,680 Speaker 1: position to keep kids learning in person despite a surgeon 150 00:07:49,760 --> 00:07:53,600 Speaker 1: COVID cases. We want to provide the safest place for 151 00:07:53,680 --> 00:07:57,320 Speaker 1: our children, and we want to have our children in school, 152 00:07:57,680 --> 00:08:01,480 Speaker 1: Adams says, though a substantial number of children's parents aren't 153 00:08:01,520 --> 00:08:04,680 Speaker 1: bringing their kids to school. According to city data, only 154 00:08:04,720 --> 00:08:08,560 Speaker 1: about of the city's one million students have been attending 155 00:08:08,600 --> 00:08:12,320 Speaker 1: classes since schools reopened after the winter break. On January three, 156 00:08:12,920 --> 00:08:16,720 Speaker 1: New Jersey Democratic Governor Phil Murphy, anticipating possible changes to 157 00:08:16,800 --> 00:08:19,560 Speaker 1: the Roe v. Wade ruling from the U. S. Supreme Court, 158 00:08:19,680 --> 00:08:23,440 Speaker 1: signed an abortion rights bill into state law. Murphy signed 159 00:08:23,440 --> 00:08:26,160 Speaker 1: the measure fulfilling a campaign pledge made in the lead 160 00:08:26,240 --> 00:08:29,040 Speaker 1: up to his re election victory in November. On Twitter, 161 00:08:29,160 --> 00:08:32,360 Speaker 1: Murphy posted his comments during a signing ceremony in te Neck. 162 00:08:33,160 --> 00:08:37,320 Speaker 1: Regardless of whether or not the Supreme Court overturns Roe v. Wade, 163 00:08:37,920 --> 00:08:41,080 Speaker 1: New Jersey's position and supporting the right to reproductive autonomy 164 00:08:41,679 --> 00:08:45,120 Speaker 1: will remain clear and unchanged. Governor Murphy also says, in 165 00:08:45,160 --> 00:08:48,959 Speaker 1: addition to abortion rights, the bill also specifically outlines a 166 00:08:49,120 --> 00:08:52,760 Speaker 1: right to access contraception as well as to carry a 167 00:08:52,840 --> 00:08:56,440 Speaker 1: pregnancy to term. President Biden is now casting some doubt 168 00:08:56,480 --> 00:08:59,920 Speaker 1: on whether his voting rights bill can get done. Bloomberg's 169 00:08:59,920 --> 00:09:02,760 Speaker 1: that Baxter reports. If it can be done, it will 170 00:09:02,800 --> 00:09:05,160 Speaker 1: have to be approached in a different way. After weeks 171 00:09:05,200 --> 00:09:08,480 Speaker 1: of talks with senators, Cinema and Mansion both say that 172 00:09:08,679 --> 00:09:11,600 Speaker 1: changing the filibuster rule is not an option. Need changes 173 00:09:11,679 --> 00:09:16,760 Speaker 1: to make the Senate work better, But the President says 174 00:09:16,800 --> 00:09:19,640 Speaker 1: the fight is not over. As long as I have 175 00:09:19,720 --> 00:09:22,079 Speaker 1: a breath in me, as long as I'm in the 176 00:09:22,120 --> 00:09:24,959 Speaker 1: White House, as long as I'm engaged at all, I'm 177 00:09:25,000 --> 00:09:27,960 Speaker 1: going to be fighting to change the way these legislatures 178 00:09:28,040 --> 00:09:31,200 Speaker 1: have moving. The President did meet with both before decisions 179 00:09:31,240 --> 00:09:34,560 Speaker 1: were made in San Francisco. I'm at Baxter Bloomberg Gay Break, 180 00:09:34,760 --> 00:09:37,240 Speaker 1: leaders of the far right group the oath Keepers, with 181 00:09:37,440 --> 00:09:40,800 Speaker 1: charge with conspiring to prevent the certification of Joe Biden 182 00:09:40,840 --> 00:09:43,439 Speaker 1: as president by joining in the attack on the Capitol 183 00:09:43,520 --> 00:09:47,439 Speaker 1: last year. The indictment charges Elmer Stewart Rhodes, described as 184 00:09:47,640 --> 00:09:50,160 Speaker 1: the founder of the group, and ten other individuals with 185 00:09:50,360 --> 00:09:54,080 Speaker 1: seditious conspiracy and other churches. Global News twenty four hours 186 00:09:54,120 --> 00:09:56,600 Speaker 1: a day on here and on Bloomberg quick Take, powered 187 00:09:56,640 --> 00:09:59,959 Speaker 1: by more than journalists and analysts more than a hundred 188 00:10:00,000 --> 00:10:02,840 Speaker 1: when two countries. I'm Michael Barr. This is Bloomberg. Nathan 189 00:10:03,000 --> 00:10:09,719 Speaker 1: thanks Michael almost five ten on All Street Time for 190 00:10:09,760 --> 00:10:12,480 Speaker 1: the Bloomberg Sports up. Faked Morning, John ALRK Your Morning, 191 00:10:12,559 --> 00:10:15,640 Speaker 1: Nathan is Novak Djokovic story is like when fans watch 192 00:10:15,760 --> 00:10:18,319 Speaker 1: a tennis match in their head goes back and forth. 193 00:10:18,440 --> 00:10:22,880 Speaker 1: Last week, Djokovic, despite being unvaccinated, received a medical exemption 194 00:10:22,960 --> 00:10:25,240 Speaker 1: to play the Australian Open. He flew to Melbourne and 195 00:10:25,240 --> 00:10:27,680 Speaker 1: promptly had his visa taken away. There was a mistake 196 00:10:28,040 --> 00:10:30,960 Speaker 1: in the paperwork Monday had Judge Rein stated it. Now 197 00:10:31,080 --> 00:10:34,360 Speaker 1: the Immigration Minister, acting in what he called the public interest, 198 00:10:34,480 --> 00:10:37,760 Speaker 1: removed the visa again and now Djokovic's lawyers were said 199 00:10:37,800 --> 00:10:40,959 Speaker 1: to be planning another appeal. The tournament, which Djokovic is 200 00:10:41,000 --> 00:10:43,760 Speaker 1: one nine times, begins Monday. Nets Off the Big One 201 00:10:43,800 --> 00:10:46,240 Speaker 1: in Chicago, gave Kevin Durant the night off. Kyrie Irving 202 00:10:46,320 --> 00:10:48,439 Speaker 1: can't play home games shure enough. The Nets lost to 203 00:10:48,480 --> 00:10:51,400 Speaker 1: Oklahoma City one thirty to one. On nine, Nicks made 204 00:10:51,440 --> 00:10:53,559 Speaker 1: a trade sent to seldom use Kevin not to the 205 00:10:53,559 --> 00:10:56,160 Speaker 1: first round draft pick that originally belonged to Charlotte to 206 00:10:56,320 --> 00:10:58,880 Speaker 1: Atlanta for Cam cam Reddis, who the Hawks took with 207 00:10:58,960 --> 00:11:02,199 Speaker 1: the tenth overall pick in only twenty two. He'll be 208 00:11:02,320 --> 00:11:04,640 Speaker 1: reunited with r J. Barrett. They were teammates at Too 209 00:11:04,840 --> 00:11:08,240 Speaker 1: Nick's play in Atlanta. Tomorrow Rangers in San Jose. The 210 00:11:08,320 --> 00:11:13,280 Speaker 1: newest blue shirt helped out Alfid Eric keeps it alive, 211 00:11:13,360 --> 00:11:16,839 Speaker 1: slides it over the Heatlele for scroll, robbing all the 212 00:11:16,920 --> 00:11:20,640 Speaker 1: goal line, back out for a shot Store. The rain 213 00:11:20,679 --> 00:11:24,400 Speaker 1: Church get the first Hill goal for a braided Sneider 214 00:11:24,520 --> 00:11:27,439 Speaker 1: it his head Hill debut. Yeah, they don't have a 215 00:11:27,520 --> 00:11:30,120 Speaker 1: two topic lead over the Sharks. Jenny Albert on WP 216 00:11:30,240 --> 00:11:32,760 Speaker 1: and the Rangers speech San Jose three nothing. Chris Cryder 217 00:11:32,800 --> 00:11:34,719 Speaker 1: scored the other two goals. He's got twenty three on 218 00:11:34,840 --> 00:11:37,079 Speaker 1: the season, fourth most in the NHL. The Islanders on 219 00:11:37,160 --> 00:11:39,480 Speaker 1: a Matthew bars Ol goal with five minutes left, bet 220 00:11:39,520 --> 00:11:42,120 Speaker 1: the Devil's three to Seaton Hall, upset by De Paul, 221 00:11:42,480 --> 00:11:44,160 Speaker 1: who came in oh and five. In the Big East. 222 00:11:44,200 --> 00:11:47,600 Speaker 1: It was ninety six ninety two John Stash Award Bluebird Sports. 223 00:11:48,280 --> 00:11:50,040 Speaker 1: All right, John, thank you right now. S and P 224 00:11:50,200 --> 00:11:52,760 Speaker 1: futures are up nine points, Sound Futures up ninety one, 225 00:11:52,880 --> 00:11:56,320 Speaker 1: Nastack futures up twenty one points after a tech led 226 00:11:56,480 --> 00:12:00,079 Speaker 1: sell off yesterday. We'll talk about the Fed path with 227 00:12:00,280 --> 00:12:07,920 Speaker 1: John Sylvia Dynamic Economic Strategy. Next, this is Bloomberg Bloomberg 228 00:12:07,920 --> 00:12:10,400 Speaker 1: eleven three oh Weather turning partly sunny and breezy today 229 00:12:10,440 --> 00:12:12,640 Speaker 1: with low forties for highs, a mix of sun and clouds, 230 00:12:12,720 --> 00:12:16,520 Speaker 1: low twenties for highs. Tomorrow snow developing late Sunday with 231 00:12:16,559 --> 00:12:22,600 Speaker 1: a high near thirty five right now forty degrees. Markets, 232 00:12:22,720 --> 00:12:25,760 Speaker 1: headlines and breaking news twenty four hours a day at 233 00:12:25,800 --> 00:12:29,199 Speaker 1: Bloomberg dot com, The Bloomberg Business Out and at Bloomberg 234 00:12:29,280 --> 00:12:39,040 Speaker 1: Quicktake is your Bloomberg Business lash and I'm Camra in Moscow. 235 00:12:39,120 --> 00:12:42,079 Speaker 1: European stocks following, Asian shares lower after a slew of 236 00:12:42,120 --> 00:12:46,559 Speaker 1: Federal Reserve officials signal the combat inflation aggressively, Treasury yields rising, 237 00:12:46,600 --> 00:12:49,760 Speaker 1: the dollar falling. US futures are taking higher after the 238 00:12:49,840 --> 00:12:52,880 Speaker 1: nasdack fell to its lowest level since October. We checked 239 00:12:52,880 --> 00:12:55,400 Speaker 1: the markets every fifteen minutes throughout the trading day on 240 00:12:55,480 --> 00:12:58,200 Speaker 1: bloomberg s and p Future is up six points this morning. 241 00:12:58,280 --> 00:13:02,079 Speaker 1: Down Future is up seventy six Nasdack futures they're little 242 00:13:02,200 --> 00:13:04,640 Speaker 1: change the decks in Germany's down seven tenths of upper 243 00:13:04,720 --> 00:13:07,080 Speaker 1: cent ten year Treasury down nine thirty seconds. He at 244 00:13:07,120 --> 00:13:09,800 Speaker 1: one point seven three percent yield on the two year 245 00:13:09,920 --> 00:13:12,800 Speaker 1: point nine two percent. Non mex screwed oil is up 246 00:13:12,880 --> 00:13:15,199 Speaker 1: nine tenths percent or seventy one cents at eighty two dollars, 247 00:13:15,240 --> 00:13:17,600 Speaker 1: eighty three cents of barrel comex s gold up about 248 00:13:17,600 --> 00:13:19,440 Speaker 1: a tenth of upper cent of a dollar forty at 249 00:13:19,480 --> 00:13:23,000 Speaker 1: eighteen eighty announced. The euro one point one four six 250 00:13:23,120 --> 00:13:25,560 Speaker 1: zero against the dollar. British found one point three seven 251 00:13:25,640 --> 00:13:28,520 Speaker 1: three zero. The ends at one thirteen point nine six 252 00:13:28,679 --> 00:13:32,240 Speaker 1: bitcoin this morning, moving lower. Had forty two thou five 253 00:13:32,360 --> 00:13:35,320 Speaker 1: hundred dollars JP Morgan Chase City Group, whilst Fargo among 254 00:13:35,400 --> 00:13:38,360 Speaker 1: companies reporting earnings today. And we get a number of 255 00:13:38,400 --> 00:13:42,640 Speaker 1: economic reports today, including December retail sales. That's a Bloomberg 256 00:13:42,679 --> 00:13:45,040 Speaker 1: business flash. Now here's Michael Bart with more on what's 257 00:13:45,080 --> 00:13:47,720 Speaker 1: going on around the world. Uncle, good morning, Good morning, Karen. 258 00:13:47,800 --> 00:13:50,599 Speaker 1: President Joe Biden is all but conceding defeat for this 259 00:13:50,800 --> 00:13:54,680 Speaker 1: year on the Democrats big elections and voting rights legislation. 260 00:13:55,080 --> 00:13:58,239 Speaker 1: Biden spoke at the Capitol after a key fellow Democrats, 261 00:13:58,280 --> 00:14:01,480 Speaker 1: Senator Kirsten Cinema of theres want to dramatically announced the 262 00:14:01,559 --> 00:14:05,200 Speaker 1: refusal to go along with changing Senate rules to muscle 263 00:14:05,320 --> 00:14:10,040 Speaker 1: pass the Republican filibuster. Tennis star Novak Djokovic faces deportation 264 00:14:10,160 --> 00:14:13,599 Speaker 1: again after the Australian the government revoked his visa for 265 00:14:13,800 --> 00:14:17,559 Speaker 1: a second time. Immigration Minister Alex Hawk said today that 266 00:14:17,679 --> 00:14:21,600 Speaker 1: he used his ministerial discretion to revoke Djokovic's visa on 267 00:14:21,720 --> 00:14:25,040 Speaker 1: public interest grounds, three days before the Australian Open is 268 00:14:25,080 --> 00:14:29,000 Speaker 1: to begin. Djokovic's lawyers are expected to appeal. In the NBA, 269 00:14:29,160 --> 00:14:32,560 Speaker 1: the Nets and Warriors lost in the NHL, the Islanders 270 00:14:32,600 --> 00:14:35,680 Speaker 1: beat the Devil's, the Rangers and Bruins. One Global News 271 00:14:35,720 --> 00:14:38,080 Speaker 1: twenty four hours a day on air and on Bloomberg 272 00:14:38,160 --> 00:14:41,320 Speaker 1: Quick Take, powered by more than twenty seven under journalist 273 00:14:41,360 --> 00:14:44,040 Speaker 1: and analysts more than a hundred twenty countries. I'm Michael 274 00:14:44,120 --> 00:14:46,920 Speaker 1: mar This is Bloomberg, Nathan. Thanks Michael. We're coming up 275 00:14:46,960 --> 00:14:49,440 Speaker 1: to five twenty on Wall Street Live from the Burloomberg 276 00:14:49,560 --> 00:14:53,760 Speaker 1: Interactive Brokers Studios. This is Bloomberg Daybreak, with inflation and 277 00:14:53,880 --> 00:14:57,560 Speaker 1: the possibility of faster fed rate hikes front and center 278 00:14:57,600 --> 00:15:00,760 Speaker 1: for investors. Let's bring in John Sylvia under of Dynamic 279 00:15:00,880 --> 00:15:03,200 Speaker 1: Economic Strategy. John, it's good to speak with you on 280 00:15:03,280 --> 00:15:06,760 Speaker 1: this Friday morning as we are hearing calls getting louder 281 00:15:06,880 --> 00:15:11,320 Speaker 1: from a lot more fed voices on faster rate hikes. Potentially, 282 00:15:11,640 --> 00:15:14,200 Speaker 1: is a March lift off a done deal for you? 283 00:15:16,000 --> 00:15:19,000 Speaker 1: At this point? The answer is yes. The inflation numbers 284 00:15:19,040 --> 00:15:24,280 Speaker 1: continue to surprise. There was no deceleration and the CPI 285 00:15:24,520 --> 00:15:27,960 Speaker 1: numbers over the last month, and you're quite right. I 286 00:15:28,000 --> 00:15:31,880 Speaker 1: mean the inflation will probably feed into the retail sales 287 00:15:32,000 --> 00:15:35,520 Speaker 1: numbers that we see today. Let's get a little bit 288 00:15:35,560 --> 00:15:38,480 Speaker 1: more into that. How do you see inflation feeding into 289 00:15:38,520 --> 00:15:42,600 Speaker 1: those retail sales numbers? Well, what we saw was November's 290 00:15:42,680 --> 00:15:46,359 Speaker 1: numbers were a little bit less than expected, and particularly 291 00:15:46,520 --> 00:15:50,560 Speaker 1: in some of the discretionary areas such as appliances, furniture, 292 00:15:51,160 --> 00:15:54,240 Speaker 1: and department stores were down in November and down over 293 00:15:54,280 --> 00:15:56,760 Speaker 1: the last three months. And I think it's important to 294 00:15:57,680 --> 00:16:01,520 Speaker 1: remember that the retail sales number is a nominal number, 295 00:16:02,120 --> 00:16:05,520 Speaker 1: so the pace of inflation does suggest that real spending 296 00:16:05,680 --> 00:16:08,000 Speaker 1: is probably going to slow down, at least in the 297 00:16:08,080 --> 00:16:11,520 Speaker 1: first half. I wanted to ask you a little bit 298 00:16:11,520 --> 00:16:13,600 Speaker 1: more about that as well. Because I think we're probably 299 00:16:13,680 --> 00:16:16,880 Speaker 1: going to see some effect of holiday spending in this 300 00:16:17,080 --> 00:16:22,960 Speaker 1: number as well, aren't we what happens when that goes away? Yeah, 301 00:16:23,080 --> 00:16:25,560 Speaker 1: that's that's going to be a tough one. Holiday spending 302 00:16:25,640 --> 00:16:28,000 Speaker 1: going away. There's probably a lot of pent up demands 303 00:16:28,080 --> 00:16:31,880 Speaker 1: you can imagine with people being sort of cooped up 304 00:16:32,440 --> 00:16:35,240 Speaker 1: because of the shutdowns, they wanted to have that emotional 305 00:16:35,360 --> 00:16:38,280 Speaker 1: release they go out shopping. But the first quarter of 306 00:16:38,360 --> 00:16:41,480 Speaker 1: the year tends to be a slower consumer spending number. 307 00:16:42,000 --> 00:16:44,440 Speaker 1: And I'll go back to your earlier point, Um, with 308 00:16:44,600 --> 00:16:48,080 Speaker 1: the FED raising interest rates, Now that's going to impact 309 00:16:48,200 --> 00:16:52,240 Speaker 1: some of this discretionary spending once again because um, as 310 00:16:52,280 --> 00:16:57,000 Speaker 1: you know with appliances, furniture, um, sometimes electronics, people actually 311 00:16:57,080 --> 00:17:00,520 Speaker 1: put those on financing plans, so there will be that 312 00:17:00,640 --> 00:17:04,120 Speaker 1: negative hit as well. We're seeing some wage pressure as well. 313 00:17:04,320 --> 00:17:07,159 Speaker 1: What impact does that that have when it comes to 314 00:17:07,440 --> 00:17:09,960 Speaker 1: retail spending in the health of the consumer more generally? 315 00:17:10,000 --> 00:17:16,320 Speaker 1: Are we heading into a wage inflationary spiral in some way? Well? Unfortunately, 316 00:17:17,000 --> 00:17:22,639 Speaker 1: the foundations of a lot of economics is that sooner 317 00:17:22,720 --> 00:17:25,760 Speaker 1: or lay to workers wake up to the fact that 318 00:17:25,840 --> 00:17:29,920 Speaker 1: inflation has accelerated, and then they pushed their wage demands 319 00:17:30,040 --> 00:17:32,920 Speaker 1: to follow those inflation numbers, so there is a wage 320 00:17:33,080 --> 00:17:36,560 Speaker 1: price borrow. I do expect that what we will see 321 00:17:36,720 --> 00:17:40,920 Speaker 1: is higher nominal wages going forward, but unfortunately, you know, 322 00:17:41,480 --> 00:17:44,680 Speaker 1: the pace of inflation still exceeds to gain an average 323 00:17:44,720 --> 00:17:49,200 Speaker 1: hourly earnings and UH as as was mentioned in Bloomberg 324 00:17:49,240 --> 00:17:53,560 Speaker 1: several weeks ago by Mike McKee, UM, real wage gains 325 00:17:53,560 --> 00:17:57,800 Speaker 1: are actually declining. So that's that's a tough scenario. Workers 326 00:17:57,800 --> 00:18:00,119 Speaker 1: are going to try to catch up, UM, so there 327 00:18:00,160 --> 00:18:03,080 Speaker 1: will be some wage price FIRA. Yeah, and in some 328 00:18:03,160 --> 00:18:05,119 Speaker 1: ways the Feds trying to catch up as well. Right 329 00:18:05,160 --> 00:18:09,240 Speaker 1: when do you start to see some actual dampening effect 330 00:18:09,359 --> 00:18:12,919 Speaker 1: on inflation from the policy moves at the markets pricing 331 00:18:13,000 --> 00:18:18,400 Speaker 1: in here? Well, historically it takes some time, a good 332 00:18:18,480 --> 00:18:23,119 Speaker 1: three six nine months before any impact on the actual 333 00:18:23,200 --> 00:18:28,000 Speaker 1: inflation numbers comes from the Fed raising interest rates. I 334 00:18:28,080 --> 00:18:31,679 Speaker 1: would expect that, you know, inflation probably will moderate by 335 00:18:31,720 --> 00:18:35,040 Speaker 1: the second quarter of this year. UM it still ends 336 00:18:35,160 --> 00:18:38,920 Speaker 1: up UM. When you look at the overall case of 337 00:18:39,160 --> 00:18:43,600 Speaker 1: the CPI, you're still looking at something like three and 338 00:18:43,680 --> 00:18:48,840 Speaker 1: a half to four consumer prices in UM, so there's 339 00:18:48,960 --> 00:18:54,280 Speaker 1: some sustained inflation pressure going forward. In our last thirty 340 00:18:54,320 --> 00:18:57,800 Speaker 1: seconds here, what do you see moderating that inflation in 341 00:18:57,920 --> 00:19:01,000 Speaker 1: the second quarter? Is it gonna be apply chain issues 342 00:19:01,040 --> 00:19:03,840 Speaker 1: sort of working themselves out? What's your what's your case there? 343 00:19:05,240 --> 00:19:08,119 Speaker 1: My case is both supply and demand. You're quite right. 344 00:19:08,440 --> 00:19:11,399 Speaker 1: Supplies issues are seemed to be working on. If you 345 00:19:11,480 --> 00:19:15,399 Speaker 1: look at the I S M delivery numbers, those numbers 346 00:19:15,440 --> 00:19:18,360 Speaker 1: seem to be declining, so there is some improvement there 347 00:19:18,520 --> 00:19:22,480 Speaker 1: and delivery, and I think overall arrogant demand the US 348 00:19:22,520 --> 00:19:25,919 Speaker 1: economy will moderate as well. So it's both the supply 349 00:19:26,080 --> 00:19:28,879 Speaker 1: and demand story. Thanks John, good having you on with 350 00:19:29,040 --> 00:19:31,840 Speaker 1: us this morning. John Sylvia is the founder of Dynamic 351 00:19:31,960 --> 00:19:35,920 Speaker 1: Economic Strategy. Looking ahead to the market, open futures are 352 00:19:36,119 --> 00:19:38,760 Speaker 1: moving a bit higher. We see SMP futures up seven 353 00:19:38,800 --> 00:19:40,719 Speaker 1: and a half points right now, Dow futures are up 354 00:19:40,720 --> 00:19:43,280 Speaker 1: eighty three points, DANCEDACK futures on the rise by ten 355 00:19:43,440 --> 00:19:46,880 Speaker 1: points ten. Your treasuries down ten thirty seconds, the yield 356 00:19:47,000 --> 00:19:49,080 Speaker 1: one point seven three percent in the yield on the 357 00:19:49,119 --> 00:19:53,040 Speaker 1: two year right now point nine to just ahead, we 358 00:19:53,240 --> 00:19:55,399 Speaker 1: get you set for bank earnings and a legal setback 359 00:19:55,440 --> 00:19:58,359 Speaker 1: for President Biden's vaccine mandates all coming up as we 360 00:19:58,480 --> 00:20:01,480 Speaker 1: check your top stories of the morning right here on 361 00:20:01,600 --> 00:20:09,080 Speaker 1: Bloomberg Daybreak. Daybreak is brought to you by the Breakers. 362 00:20:09,160 --> 00:20:11,280 Speaker 1: This winter, a warm welcome awaits you. The Breakers is 363 00:20:11,320 --> 00:20:14,280 Speaker 1: committed to making your stay even better with exceptional experiences, 364 00:20:14,280 --> 00:20:17,480 Speaker 1: gracious service, and unparalleled seaside glamor. To learn more, visit 365 00:20:17,520 --> 00:20:24,399 Speaker 1: the Breakers dot com. Today broadcasting live from the Bloomberg 366 00:20:24,480 --> 00:20:27,879 Speaker 1: Interactive Broker Studio in New York, Bloomberg E Living for 367 00:20:28,000 --> 00:20:32,359 Speaker 1: you to Washington, d C, Bloomberg to Boston, Bloomberg one 368 00:20:32,440 --> 00:20:35,600 Speaker 1: oh six one, to San Francisco, Bloomberg nine six to 369 00:20:35,680 --> 00:20:38,760 Speaker 1: the country Sirius XM chto one nine ten, and around 370 00:20:38,800 --> 00:20:42,320 Speaker 1: the globe the Bloomberg Business and Bloomberg Radio dot Com. 371 00:20:42,760 --> 00:20:51,760 Speaker 1: This is Bloomberg Daybreak. It's five thirty on Wall Street. 372 00:20:51,800 --> 00:20:54,720 Speaker 1: Good morning. I'm Nathan Hagar and I'm kerin Moscow. How 373 00:20:54,760 --> 00:20:56,920 Speaker 1: we're just about four hours away from the open of 374 00:20:57,040 --> 00:20:58,880 Speaker 1: US training. Let's get you up to date on the news. 375 00:20:58,920 --> 00:21:01,520 Speaker 1: You need to know what this show. Our US futures 376 00:21:01,720 --> 00:21:05,280 Speaker 1: are now little changed following yesterday's sell off, which saw 377 00:21:05,320 --> 00:21:08,040 Speaker 1: the nasdack drop two and a half percent. The FEDS 378 00:21:08,080 --> 00:21:10,680 Speaker 1: push for a higher interest rates to combat inflation is 379 00:21:10,720 --> 00:21:14,480 Speaker 1: growing louder. Governor Christopher Waller tells US at least three 380 00:21:14,560 --> 00:21:17,560 Speaker 1: hikes this year is a good baseline. It really depends 381 00:21:17,560 --> 00:21:20,399 Speaker 1: on what happens with inflation. I mean, if inflation just 382 00:21:20,960 --> 00:21:23,520 Speaker 1: is stubbornly high through the first part of this year, 383 00:21:23,640 --> 00:21:25,159 Speaker 1: first half of this year, we're gonna have to do 384 00:21:25,240 --> 00:21:27,680 Speaker 1: a lot more. But that's what that's our job, and 385 00:21:27,760 --> 00:21:29,879 Speaker 1: that's what we're committed to do, and if we have 386 00:21:30,000 --> 00:21:32,359 Speaker 1: to do more rate hikes, will do it. FED Governor 387 00:21:32,440 --> 00:21:35,480 Speaker 1: Chris Waller tells Our Kathleen Hayes he sees a scenario 388 00:21:35,640 --> 00:21:38,240 Speaker 1: where the FED raises race as much as five times 389 00:21:38,320 --> 00:21:40,680 Speaker 1: this year. Well meantime, Karen, the White House is set 390 00:21:40,720 --> 00:21:43,000 Speaker 1: to add some new faces at the FED. President Biden 391 00:21:43,040 --> 00:21:44,800 Speaker 1: has made his picks to fill open seats at the 392 00:21:44,840 --> 00:21:47,359 Speaker 1: Central Bank, and Bloomberg Jornia Young joins US Live with 393 00:21:47,440 --> 00:21:50,240 Speaker 1: the latest. Good Morning, Na, Good morning, Nathan Bloomberg. Sources 394 00:21:50,280 --> 00:21:53,439 Speaker 1: say President Biden is planning to nominate Sarah bloom Reskin 395 00:21:53,520 --> 00:21:56,719 Speaker 1: to the FITS top banking regulator spot. He'll also announce 396 00:21:56,800 --> 00:22:00,760 Speaker 1: economists Philip Jefferson and Lisa Cooks picks for governors. Cook 397 00:22:00,800 --> 00:22:03,080 Speaker 1: would be the first black woman on the fifth board 398 00:22:03,320 --> 00:22:06,200 Speaker 1: and Jefferson would be the fourth black man. The picks 399 00:22:06,240 --> 00:22:09,439 Speaker 1: would help Biden keep his promise to improve diversity at 400 00:22:09,480 --> 00:22:12,280 Speaker 1: the Central Bank. Live in New York, I'm ren need 401 00:22:12,320 --> 00:22:14,520 Speaker 1: a young Bloomberg daybreak Ney to thank you. We get 402 00:22:14,560 --> 00:22:17,240 Speaker 1: more data for the Fed to digest this morning. Retail 403 00:22:17,320 --> 00:22:20,000 Speaker 1: sales figures for December or do out at eight thirty am. 404 00:22:20,040 --> 00:22:23,160 Speaker 1: Wall Street Time economist forecast a monthly decline of one 405 00:22:23,240 --> 00:22:25,840 Speaker 1: tenth of upper cent, and today also marks the unofficial 406 00:22:25,880 --> 00:22:28,479 Speaker 1: start of fourth quarter earning season. Karen, we get results 407 00:22:28,560 --> 00:22:31,919 Speaker 1: from three major banks this morning. Bloomberg's Larry Kowsky has 408 00:22:31,960 --> 00:22:35,000 Speaker 1: a preview. Loan growth that eluded large US banks for 409 00:22:35,119 --> 00:22:37,919 Speaker 1: most of twenty one is expected to make an appearance 410 00:22:38,119 --> 00:22:42,280 Speaker 1: sign that the economy is recovering. JP Morgan Chase reports first, 411 00:22:42,359 --> 00:22:45,879 Speaker 1: followed by Wells Fargo and City Group. Investment banking fees 412 00:22:45,960 --> 00:22:49,359 Speaker 1: maybe a highlight for JP Morgan. According to Bloomberg Intelligence, 413 00:22:49,720 --> 00:22:52,520 Speaker 1: Wells Fargo is expected to show a modest rise in 414 00:22:52,600 --> 00:22:56,040 Speaker 1: net interest income. Borrowing growth in its card business will 415 00:22:56,119 --> 00:23:00,320 Speaker 1: be in focus. At City Larry Kowsky Bloomberg Day Break, Larry, 416 00:23:00,320 --> 00:23:02,360 Speaker 1: thank you, and turning to politics now. It's a major 417 00:23:02,440 --> 00:23:05,840 Speaker 1: setback for President Biden's vaccine mandate. The Supreme Court has 418 00:23:05,880 --> 00:23:08,840 Speaker 1: blocked a rule that would require large companies to require 419 00:23:08,960 --> 00:23:12,760 Speaker 1: vaccines are weekly testing for employees. The ruling limits Biden's 420 00:23:12,800 --> 00:23:16,400 Speaker 1: options for increasing the country's vaccination rate. The CDC says 421 00:23:17,240 --> 00:23:20,639 Speaker 1: of the country is fully vaccinated and just of that 422 00:23:20,760 --> 00:23:24,520 Speaker 1: group have received a booster shot. S andp futures are 423 00:23:24,760 --> 00:23:27,520 Speaker 1: little change this morning to Future is up fifty nine 424 00:23:27,640 --> 00:23:30,760 Speaker 1: Nasdack Future is now down about eighteen straight and had 425 00:23:30,800 --> 00:23:33,800 Speaker 1: your latest local headlines plus a check of sports. And 426 00:23:34,119 --> 00:23:39,520 Speaker 1: this is Bloomberg all right, Karen, thank you. It is 427 00:23:39,600 --> 00:23:41,639 Speaker 1: five thirty three on Wall Street where at forty degrees 428 00:23:41,680 --> 00:23:43,639 Speaker 1: in Central Park and still dealing with the accident in 429 00:23:43,720 --> 00:23:47,240 Speaker 1: Brooklyn westbound Gwanas at Hamilton Avenue. Michael Barr is here 430 00:23:47,280 --> 00:23:48,760 Speaker 1: with more on what's going on in New York and 431 00:23:48,840 --> 00:23:51,119 Speaker 1: around the world. Michael, thank you very much. Nathan. New 432 00:23:51,240 --> 00:23:54,200 Speaker 1: York City Mayor Eric Adams is now considering allowing the 433 00:23:54,280 --> 00:23:57,399 Speaker 1: nation's largest school district to return to some form of 434 00:23:57,520 --> 00:24:00,040 Speaker 1: virtual instruction, as the city weather is a way of 435 00:24:00,080 --> 00:24:03,879 Speaker 1: of coronavirus cases. Adams says that he still believes the 436 00:24:03,960 --> 00:24:06,440 Speaker 1: safest place for children to be is in school, but 437 00:24:06,600 --> 00:24:10,680 Speaker 1: that there are a substantial number of children missing classes. 438 00:24:11,119 --> 00:24:16,280 Speaker 1: I am working closely with the UH president of the 439 00:24:16,480 --> 00:24:19,840 Speaker 1: u f T. I think that people AS's surprised to 440 00:24:19,920 --> 00:24:23,720 Speaker 1: see how well we're doing. This is not Chicago, this 441 00:24:23,920 --> 00:24:27,000 Speaker 1: is New York. Mayor Adams was referencing Chicago, where the 442 00:24:27,119 --> 00:24:30,480 Speaker 1: nation's third largest school district canceled five days of classes 443 00:24:30,560 --> 00:24:33,840 Speaker 1: because of disagreements with the teachers union over COVID nineteen 444 00:24:33,880 --> 00:24:37,560 Speaker 1: safety protocols. New Jersey Democratic Governor Phil Murphy signed a 445 00:24:37,640 --> 00:24:40,320 Speaker 1: bill in shrining the right to an abortion into state law. 446 00:24:40,880 --> 00:24:45,360 Speaker 1: Murphy on his government Twitter post says New Jersey's position 447 00:24:45,600 --> 00:24:49,320 Speaker 1: in support of the right to reproductive autonomy will remain 448 00:24:49,440 --> 00:24:53,359 Speaker 1: clear and unchanged. This is a victory, yes, but not 449 00:24:53,560 --> 00:24:58,760 Speaker 1: necessarily a conclusion. Under our states laws, you folks now 450 00:24:58,880 --> 00:25:02,879 Speaker 1: have the statutory right to reproductive freedom. Governor Murphy signed 451 00:25:02,920 --> 00:25:05,359 Speaker 1: the bill as a Supreme Court rulingco to come in 452 00:25:05,480 --> 00:25:07,840 Speaker 1: June in a case in which the Court was asked 453 00:25:07,880 --> 00:25:10,920 Speaker 1: to overturn Roe v. Wade. President Joe Biden is all 454 00:25:11,000 --> 00:25:14,200 Speaker 1: but conceding defeat for this year on the Democrats big 455 00:25:14,240 --> 00:25:17,919 Speaker 1: elections and voting rights legislation pushed back involved the President 456 00:25:18,000 --> 00:25:21,159 Speaker 1: trying to change the filibuster rule, including from within his 457 00:25:21,240 --> 00:25:26,040 Speaker 1: own party. Moderate Democrats like Arizona Senator Kirsten Cinema disagree 458 00:25:26,119 --> 00:25:29,840 Speaker 1: on changing it. What is the legislative filibuster other than 459 00:25:29,880 --> 00:25:33,680 Speaker 1: a tool that requires new federal policy to be broadly 460 00:25:33,760 --> 00:25:38,240 Speaker 1: supported by senators representing a broader cross section of Americans? 461 00:25:38,840 --> 00:25:42,879 Speaker 1: Guardi Senator Cinema says the current filibuster rule lessens the 462 00:25:42,960 --> 00:25:46,480 Speaker 1: chances of one party to get complete control. Global News 463 00:25:46,560 --> 00:25:49,280 Speaker 1: twenty four hours a day on air and on Bloomberg 464 00:25:49,359 --> 00:25:52,440 Speaker 1: Quick Tank, powered by more than seven under journalist and 465 00:25:52,440 --> 00:25:55,320 Speaker 1: analysts more than a hundred twenty countries. Michael Barr, this 466 00:25:55,480 --> 00:26:03,240 Speaker 1: is Bloomberg, Nathan. Thanks Michael on Wall Street. Time for 467 00:26:03,280 --> 00:26:05,840 Speaker 1: the Bloomberg Sports Update with John Sesshi. All right, Eivan 468 00:26:05,840 --> 00:26:08,440 Speaker 1: Novak Djokovic was in the Australian Open. He got a 469 00:26:08,480 --> 00:26:11,399 Speaker 1: medical exempt to to play his fight being unvaccinated, and 470 00:26:11,440 --> 00:26:14,160 Speaker 1: then he was out and then back in and as 471 00:26:14,200 --> 00:26:17,640 Speaker 1: of now he's again out. The Immigration Minister using personal 472 00:26:17,760 --> 00:26:21,719 Speaker 1: powers canceled Djokovic's visa in what he called the public interest, 473 00:26:21,800 --> 00:26:26,000 Speaker 1: but Djokovic's lawyers are expected to appeal again. Then, Net 474 00:26:26,119 --> 00:26:27,760 Speaker 1: said to win in Chicago when they had the Big 475 00:26:27,800 --> 00:26:29,800 Speaker 1: three all on the floor for just a second time, 476 00:26:29,840 --> 00:26:32,200 Speaker 1: but in Brooklyn it was only James Hart and Kevin 477 00:26:32,240 --> 00:26:34,680 Speaker 1: Durant got the night off. Kyrie Irving can't play home games. 478 00:26:34,960 --> 00:26:37,119 Speaker 1: Pardon scored twenty six, but no one else had more 479 00:26:37,160 --> 00:26:40,439 Speaker 1: than thirteen. The Nets lost to Oklahoma City one thirty two, 480 00:26:40,480 --> 00:26:43,000 Speaker 1: one on nine the mixed plate. Tomorrow in Atlanta, they 481 00:26:43,080 --> 00:26:45,440 Speaker 1: just made a trade with the Hawks. They sent Kevin 482 00:26:45,520 --> 00:26:47,960 Speaker 1: Knox in the first round draft pick and got back 483 00:26:48,119 --> 00:26:50,560 Speaker 1: Cam Reddish. The Rangers won three, noting at San Jose 484 00:26:50,800 --> 00:26:53,760 Speaker 1: to Gore goals for Chris Pryder, who, along with Adam Fox, 485 00:26:53,920 --> 00:26:55,400 Speaker 1: was just named to play in the All Star Game, 486 00:26:55,440 --> 00:26:58,560 Speaker 1: the shutout for Igor Sisterkin in his return from Covid. 487 00:26:58,560 --> 00:27:01,600 Speaker 1: Ilanders beat the Devil three two. Seaton Hall upset like 488 00:27:01,720 --> 00:27:05,280 Speaker 1: the Pall, but first ever NFL playoff weekend with six 489 00:27:05,440 --> 00:27:08,920 Speaker 1: games spanning three days. It starts tomorrow with Derek Carr 490 00:27:09,000 --> 00:27:13,920 Speaker 1: and the Raiders in Cincinnati. It's an exciting time, obviously, 491 00:27:14,119 --> 00:27:17,320 Speaker 1: you know something I've dreamed of, um since I was traffed. 492 00:27:17,320 --> 00:27:18,920 Speaker 1: That's all I want to do is get the playoffs 493 00:27:19,200 --> 00:27:22,720 Speaker 1: China Championship, you know, and uh, you know the fact 494 00:27:22,760 --> 00:27:26,360 Speaker 1: that we're in the tournament is uh, it's really cool. 495 00:27:26,440 --> 00:27:28,280 Speaker 1: The Raiders have not one of playoff games with two 496 00:27:28,320 --> 00:27:31,359 Speaker 1: thousand two. The Bengals last playoff win was in nineteen ninety. 497 00:27:31,480 --> 00:27:35,160 Speaker 1: Tomorrow Night, New England at Buffalo expected to be bitterly cold. 498 00:27:35,200 --> 00:27:37,880 Speaker 1: Their first meeting in the playoffs. Its nineteen sixty three. 499 00:27:37,960 --> 00:27:40,720 Speaker 1: Three more games Sunday, Another Monday Night. John Stash at 500 00:27:40,760 --> 00:27:43,639 Speaker 1: We're Bloomberg Sports, Nathan, Thanks Sean. It's thirty seven on 501 00:27:43,680 --> 00:27:46,160 Speaker 1: Wall Street. Time for the Tri State Business Report. Here's 502 00:27:46,160 --> 00:27:49,920 Speaker 1: Bloomberg's head, Cory Daniel Ox sold the Manhattan apartment for 503 00:27:49,960 --> 00:27:53,200 Speaker 1: about one nine million dollars just two years after buying 504 00:27:53,240 --> 00:27:56,600 Speaker 1: the property for ninety five million. Source tells Bloomberg. He 505 00:27:56,680 --> 00:28:01,080 Speaker 1: purchased the Pennhouse apartment on Central Park South. In New 506 00:28:01,160 --> 00:28:04,600 Speaker 1: Jersey's student loan borrowers will get over sixty million dollars 507 00:28:04,680 --> 00:28:08,040 Speaker 1: in relief from a settlement with Navy INT and its subsidiary, 508 00:28:08,119 --> 00:28:12,160 Speaker 1: Navy and Solutions. The payments will resolve with lawsuit filed 509 00:28:12,160 --> 00:28:15,280 Speaker 1: by the state against the student loan servicing Giant. A 510 00:28:15,400 --> 00:28:18,640 Speaker 1: coalition of New York businesses says the Empire State should 511 00:28:18,640 --> 00:28:22,080 Speaker 1: be a prime beneficiary of federal funding for the domestic 512 00:28:22,200 --> 00:28:28,320 Speaker 1: semiconductor industry. Axios reports executives from several companies, including IBM 513 00:28:28,440 --> 00:28:32,840 Speaker 1: Global Founderies, Analog Devices, and Applied Materials. We're all calling 514 00:28:32,880 --> 00:28:36,000 Speaker 1: for a passage of stalled chip industry funding. They're also 515 00:28:36,119 --> 00:28:38,840 Speaker 1: calling for directing a big chunk of that money to 516 00:28:38,960 --> 00:28:42,800 Speaker 1: the New York region. That's your Bloomberg Tri State Business Report. 517 00:28:42,880 --> 00:28:45,240 Speaker 1: I'm ed Corey thinks that it's five thirty eight on 518 00:28:45,320 --> 00:28:47,520 Speaker 1: Wall Street. Bloomberg Radio is on the air from San 519 00:28:47,600 --> 00:28:50,320 Speaker 1: Francisco to New York, London to Hong Kong. Let's check 520 00:28:50,360 --> 00:28:52,280 Speaker 1: in with our global news team for some of the 521 00:28:52,360 --> 00:28:55,320 Speaker 1: top stories heard on our three hundred affiliate radio stations 522 00:28:55,360 --> 00:29:00,920 Speaker 1: around the world. I'm Steve photos Can on Chen Chen 523 00:29:01,000 --> 00:29:03,720 Speaker 1: Wins in New York. We're talking about city Groups saying 524 00:29:03,880 --> 00:29:07,480 Speaker 1: nine nine percent of its employees have complied with the 525 00:29:07,600 --> 00:29:12,960 Speaker 1: company's vaccine mandate. I'm Gourney Donahoe on kf Babian Omaha trucking, 526 00:29:13,120 --> 00:29:16,320 Speaker 1: farming and heating will get more costly as diesel surgeons. 527 00:29:17,000 --> 00:29:20,400 Speaker 1: I'm Karen Chase and for w BBM in Chicago, I'll 528 00:29:20,480 --> 00:29:23,480 Speaker 1: be reporting on American and Delta airlines trimming a flight 529 00:29:23,520 --> 00:29:26,720 Speaker 1: schedules do to a pilot pinch. I'm Tom Mackenzie on 530 00:29:26,760 --> 00:29:29,880 Speaker 1: Bloomberg d a B Digital Radio in London. We're reporting 531 00:29:29,920 --> 00:29:33,280 Speaker 1: on a surprisingly strong November g d P print, which 532 00:29:33,320 --> 00:29:37,280 Speaker 1: means the UK economy has now surpassed pre pandemic levels 533 00:29:37,440 --> 00:29:40,600 Speaker 1: for the first time. I bed Dory on w w 534 00:29:40,880 --> 00:29:44,520 Speaker 1: jays Destroid. I'm reporting last year's record high carpwriters won't 535 00:29:44,560 --> 00:29:47,479 Speaker 1: be dropping zoon. Those are some of the stories our 536 00:29:48,360 --> 00:29:51,000 Speaker 1: Bloomberg journalists and analysts are working on this morning around 537 00:29:51,040 --> 00:29:54,200 Speaker 1: the world. Midst five nine on Wall Street. The following 538 00:29:54,320 --> 00:29:58,600 Speaker 1: is an editorial from Bloomberg Opinion. Temperatures in Alaska reached 539 00:29:58,680 --> 00:30:01,720 Speaker 1: record highs in recent week, while researchers warned that a 540 00:30:01,800 --> 00:30:05,000 Speaker 1: major ice shelf in that Arctica could collapse in just 541 00:30:05,160 --> 00:30:08,640 Speaker 1: a few years time. These are signposts on a grim path. 542 00:30:09,040 --> 00:30:11,840 Speaker 1: They show that damage to the criosphere, the portions of 543 00:30:11,920 --> 00:30:15,920 Speaker 1: Earth's surface where ice predominates, is happening faster than many 544 00:30:15,960 --> 00:30:21,000 Speaker 1: people expected. Unfortunately, melting glaciers and thine permafrost themselves worse 545 00:30:21,080 --> 00:30:24,720 Speaker 1: than climate change, creating terrible feedback loops. After a year 546 00:30:24,760 --> 00:30:28,280 Speaker 1: of climate promises, two must be a year of action, 547 00:30:28,640 --> 00:30:31,960 Speaker 1: particularly in the Arctic and the ad Arctic. Cutting global 548 00:30:32,000 --> 00:30:35,200 Speaker 1: emissions is of course essential, but policy makers should also 549 00:30:35,240 --> 00:30:39,760 Speaker 1: investigate large scale technological interventions that could help slow runaway 550 00:30:39,800 --> 00:30:43,120 Speaker 1: warming at the world's poles. Such efforts could at least 551 00:30:43,200 --> 00:30:46,960 Speaker 1: weaken those feedback loops and by crucial time for emissions 552 00:30:47,040 --> 00:30:50,040 Speaker 1: reductions to take hold. This editor was written by the 553 00:30:50,040 --> 00:30:53,840 Speaker 1: Bloomberg Opinion editorial board. I'm David Shipley. For more Bloomberg opinion, 554 00:30:53,880 --> 00:30:56,720 Speaker 1: please go to Bloomberg dot com, slash opinion or op 555 00:30:56,960 --> 00:30:59,920 Speaker 1: and go on the Bloomberg Terminal. This has been Bloomberg 556 00:31:00,040 --> 00:31:02,920 Speaker 1: opinion and you can hear Bloomberg opinion editorials every weekday. 557 00:31:02,920 --> 00:31:05,560 Speaker 1: At this time, terminal customers can read more at O, P, 558 00:31:05,720 --> 00:31:08,520 Speaker 1: I N go. Right now, SMP futures are up five points, 559 00:31:08,560 --> 00:31:10,920 Speaker 1: down futures up seventy five. Dance deck futures have turned 560 00:31:10,960 --> 00:31:13,160 Speaker 1: to touch lower. They're now down three points as we 561 00:31:13,240 --> 00:31:16,880 Speaker 1: await bank earnings get a preview next with Bloomberg's global 562 00:31:16,920 --> 00:31:23,360 Speaker 1: financial correspondent Shinnali Bassek. This is Bloomberg Bloomberg eleven three 563 00:31:23,400 --> 00:31:25,880 Speaker 1: oh weather partly sunny, breezy, low forties today, mix of 564 00:31:25,960 --> 00:31:29,280 Speaker 1: sun and clouds. Tomorrow low twenties for highs late day. 565 00:31:29,360 --> 00:31:31,920 Speaker 1: Snow arrives Sunday with a high in your thirty five 566 00:31:32,000 --> 00:31:39,080 Speaker 1: currently forty degrees in Central Park. Markets, headlines and breaking 567 00:31:39,160 --> 00:31:42,000 Speaker 1: news twenty four hours a day at Bloomberg dot Com, 568 00:31:42,160 --> 00:31:45,720 Speaker 1: the Bloomberg Business app, and at Bloomberg Quicktake. This is 569 00:31:45,720 --> 00:31:55,160 Speaker 1: a Bloomberg Business flash and I'm Karen. Moscow and Europeans 570 00:31:55,160 --> 00:31:57,760 Speaker 1: stocks are following Asian shares lower after a slew of 571 00:31:57,800 --> 00:32:02,040 Speaker 1: Federal Reserve official signal Bell combat in inflation aggressively. Right now, 572 00:32:02,280 --> 00:32:05,840 Speaker 1: SMP futures are higher and NASDACK futures are a little 573 00:32:05,960 --> 00:32:09,320 Speaker 1: changes after the nasdack felt to its lowest level since October. 574 00:32:09,640 --> 00:32:11,840 Speaker 1: We checked the markets every fifteen minutes throughout the trading 575 00:32:11,920 --> 00:32:15,000 Speaker 1: day on Bloomberg. SMP future is up about six points down, 576 00:32:15,040 --> 00:32:18,080 Speaker 1: futures up seventy nine NASDACK futures that will change the 577 00:32:18,160 --> 00:32:20,880 Speaker 1: dacts in Germany's down six tents of upper cent tenure 578 00:32:20,920 --> 00:32:24,000 Speaker 1: Treasury down eleven thirty seconds, yield one point seven four percent. 579 00:32:24,120 --> 00:32:26,280 Speaker 1: That yield on the two year point nine three percent 580 00:32:26,720 --> 00:32:28,920 Speaker 1: nine x screwed oils up one point one percent of 581 00:32:29,000 --> 00:32:31,040 Speaker 1: ninety two cents at eighty three dollars four cents of 582 00:32:31,120 --> 00:32:35,280 Speaker 1: barrel comexs. Gold is little change at eighteen fifty announced 583 00:32:35,520 --> 00:32:37,800 Speaker 1: the euro one point one four or five nine against 584 00:32:37,840 --> 00:32:40,040 Speaker 1: the dollar, British found one point three seven three two 585 00:32:40,120 --> 00:32:42,640 Speaker 1: and the end at one thirteen point nine zero and 586 00:32:42,800 --> 00:32:46,120 Speaker 1: Bitcoin this morning moving lower at forty two thousand, four 587 00:32:46,240 --> 00:32:49,160 Speaker 1: hundred dollars. Such a Bloomberg business flash. Now here's Michael 588 00:32:49,200 --> 00:32:51,400 Speaker 1: Barr with more on what's going on around the world. 589 00:32:51,560 --> 00:32:54,160 Speaker 1: Michael Darren, thank you very much. President Joe Biden is 590 00:32:54,160 --> 00:32:56,960 Speaker 1: all about conceding defeat for this year on the Democrats 591 00:32:57,080 --> 00:33:00,920 Speaker 1: big elections in voting rights legislation by spoke at the 592 00:33:01,000 --> 00:33:04,960 Speaker 1: Capitol after a key fellow Democrat, Senator Kirsten Cinema of Arizona, 593 00:33:05,360 --> 00:33:08,800 Speaker 1: dramatically announced a refusal to go along with changing Senate 594 00:33:08,920 --> 00:33:13,240 Speaker 1: rules to muscle past the Republican filibuster. Tennis star Novak 595 00:33:13,280 --> 00:33:17,880 Speaker 1: Djokovic faces deportation again after the Australian government revoked his 596 00:33:18,040 --> 00:33:21,920 Speaker 1: visa for a second time. Immigration Minister Alex Hawk said 597 00:33:21,960 --> 00:33:25,840 Speaker 1: today that he used his ministerial discretion to revoke Djokovic's 598 00:33:25,920 --> 00:33:29,480 Speaker 1: visa on public interest grounds, three days before the Australian 599 00:33:29,560 --> 00:33:33,080 Speaker 1: Open is to begin. Djokovic's lawyers are expected to appeal. 600 00:33:33,400 --> 00:33:36,440 Speaker 1: In the NBA, the Nets and Warriors lost in the NHL, 601 00:33:36,600 --> 00:33:39,600 Speaker 1: The Islanders beat the Devil's, the Rangers and Bruins. One 602 00:33:40,040 --> 00:33:42,440 Speaker 1: Global News twenty four hours a day on air and 603 00:33:42,640 --> 00:33:45,200 Speaker 1: on Bloomberg Quick to take Power by more than twenty 604 00:33:45,280 --> 00:33:48,280 Speaker 1: seven hundred journalists and analysts more than a hundred twenty countries. 605 00:33:48,640 --> 00:33:51,760 Speaker 1: Michael Barr and this is Bloomberg. Nathan alright, Michael, thank you. 606 00:33:51,840 --> 00:33:54,200 Speaker 1: It's five forty nine on Wall Street Live from the 607 00:33:54,240 --> 00:33:58,840 Speaker 1: Bloomberg Interacted broker's studios. This is Bloomberg Daybreak on earnings 608 00:33:59,000 --> 00:34:02,640 Speaker 1: kickoff Friday. Fourth quarter results from the first three of 609 00:34:02,720 --> 00:34:05,880 Speaker 1: the big six Wall Street banks come out this morning. 610 00:34:06,080 --> 00:34:08,360 Speaker 1: And here with us now someone who's gonna be watching 611 00:34:08,400 --> 00:34:11,600 Speaker 1: those headlines very closely. When they crossed the Bloomberg terminal 612 00:34:11,719 --> 00:34:15,759 Speaker 1: in mirror hours. Bloomberg Global Financial correspondent Nale Bassic is 613 00:34:15,840 --> 00:34:19,480 Speaker 1: with us this morning. Socianale, JP Morgan, Chase, Wells Fargo, 614 00:34:19,680 --> 00:34:22,239 Speaker 1: City Group getting ready to report here. But really for 615 00:34:22,360 --> 00:34:26,040 Speaker 1: all the banks, it's about the return of loan growth, right, Yeah, 616 00:34:26,120 --> 00:34:29,320 Speaker 1: that's the main macro story. But every bank is so 617 00:34:29,800 --> 00:34:32,000 Speaker 1: so different. Remember when it comes to City Group and 618 00:34:32,040 --> 00:34:35,400 Speaker 1: Wells Fargo, they have been grappling with regulatory issues and 619 00:34:35,800 --> 00:34:38,360 Speaker 1: they have key changes that they want to make to 620 00:34:38,440 --> 00:34:42,080 Speaker 1: their business. City Group is exiting certain regions around the world. 621 00:34:42,120 --> 00:34:44,920 Speaker 1: When it comes to certain types of businesses like retail, 622 00:34:45,520 --> 00:34:49,000 Speaker 1: that's a costly endeavor that comes with termination fees and 623 00:34:49,280 --> 00:34:53,439 Speaker 1: other restructuring chargers, so that will last into this year. 624 00:34:53,680 --> 00:34:56,680 Speaker 1: While they will also be expected to give some updates 625 00:34:56,719 --> 00:34:59,879 Speaker 1: and what buybacks will look like. Wells Fargo will also 626 00:35:00,040 --> 00:35:02,640 Speaker 1: be expected to give some updates on what their cost 627 00:35:02,680 --> 00:35:05,640 Speaker 1: pressures look like. The headcount has been going down for 628 00:35:05,719 --> 00:35:08,040 Speaker 1: a while, whereas over JP Morgan, which will be the 629 00:35:08,120 --> 00:35:12,040 Speaker 1: first likely to report this morning, we are expecting that 630 00:35:12,840 --> 00:35:16,960 Speaker 1: their investment, banking and trading numbers, even in a moderating environment, 631 00:35:17,400 --> 00:35:21,680 Speaker 1: are expected to be quite high, and the headcount has 632 00:35:21,719 --> 00:35:26,200 Speaker 1: been rising. So it's a lot of different stories going on. 633 00:35:26,480 --> 00:35:30,319 Speaker 1: Even with some of these very traditional consumer businesses coming 634 00:35:30,400 --> 00:35:32,560 Speaker 1: back and the prospect of making more money off of 635 00:35:32,640 --> 00:35:34,759 Speaker 1: loans in higher interest rate environment. Yeah, a lot of 636 00:35:34,840 --> 00:35:40,120 Speaker 1: different storylines to thread through here, starting off with JP Morgan, though, Shannali, 637 00:35:40,400 --> 00:35:45,200 Speaker 1: let's start there. Such a big year was in terms 638 00:35:45,400 --> 00:35:48,600 Speaker 1: of deal making M and A. Is that somewhere that 639 00:35:48,680 --> 00:35:51,800 Speaker 1: JP Morgan could really shine when results come out, truly, 640 00:35:51,880 --> 00:35:54,680 Speaker 1: because you know, it's funny because Goldman Sachs is normally 641 00:35:55,040 --> 00:35:56,920 Speaker 1: last five years in a row at least the number 642 00:35:56,960 --> 00:36:01,080 Speaker 1: one in advisory for merger's acquisitions related trans actions, and 643 00:36:01,440 --> 00:36:04,200 Speaker 1: JP Morgan and Morgan Stanley have really been duking it 644 00:36:04,320 --> 00:36:07,759 Speaker 1: out for number two. JP Morgan has been number two 645 00:36:08,040 --> 00:36:11,360 Speaker 1: lately and number one when it comes to debt underwriting, 646 00:36:11,480 --> 00:36:14,640 Speaker 1: which has been a record business as well on Wall Street. 647 00:36:15,000 --> 00:36:17,520 Speaker 1: So there's a lot to like there. There's a lot 648 00:36:17,640 --> 00:36:20,640 Speaker 1: of fees that are coming in in those businesses. So 649 00:36:21,000 --> 00:36:23,560 Speaker 1: that's why I say, even though the consumers a big 650 00:36:23,719 --> 00:36:27,040 Speaker 1: story and how long it will take to rebound, investment 651 00:36:27,120 --> 00:36:31,440 Speaker 1: banking is still definitely bringing in loads and loads of 652 00:36:31,480 --> 00:36:33,600 Speaker 1: money on Wall Street and JP Morgan is a key 653 00:36:33,640 --> 00:36:36,839 Speaker 1: beneficiary of that. And you mentioned the regulatory risk still 654 00:36:36,880 --> 00:36:39,560 Speaker 1: surrounding walls, Fargo and City Group. That plays a lot 655 00:36:39,680 --> 00:36:42,920 Speaker 1: into I think we're going to be listening for really 656 00:36:43,000 --> 00:36:45,600 Speaker 1: closely when it comes to the outlook for all the 657 00:36:45,680 --> 00:36:48,879 Speaker 1: banks when we're getting into an environment where the FED 658 00:36:49,040 --> 00:36:52,799 Speaker 1: is pulling back support, the prospects of higher interest rates 659 00:36:53,040 --> 00:36:57,560 Speaker 1: and what that could mean for the US recovery going forward. Yeah, absolutely, 660 00:36:57,640 --> 00:37:00,160 Speaker 1: and and the global recovery. Really you look at a 661 00:37:00,400 --> 00:37:02,880 Speaker 1: thing like City Group and it's exit from Mexico and 662 00:37:03,560 --> 00:37:08,040 Speaker 1: the government really assuring their their citizens that you know, 663 00:37:08,120 --> 00:37:10,400 Speaker 1: they will have banking services and access to their funds. 664 00:37:10,440 --> 00:37:12,480 Speaker 1: You know, it's a big move to have these big 665 00:37:12,560 --> 00:37:15,439 Speaker 1: banks reshape around the world and the fashion that they're 666 00:37:15,480 --> 00:37:19,800 Speaker 1: doing so and choosing the more profitable regions to operate in. 667 00:37:20,480 --> 00:37:23,560 Speaker 1: With that said, you're seeing the big getting bigger JP Morgan, 668 00:37:23,640 --> 00:37:27,000 Speaker 1: Goldman Sacks expanding heavily in Europe and around the world, 669 00:37:27,560 --> 00:37:30,919 Speaker 1: whereas UM and also making a lot of acquisitions, where 670 00:37:31,160 --> 00:37:34,160 Speaker 1: as you're seeing City Group really start to reshape and 671 00:37:34,280 --> 00:37:37,160 Speaker 1: retreat from certain regions. Now last minute here, Shinali, what 672 00:37:37,239 --> 00:37:40,920 Speaker 1: about cost overhang. There's been so much more spending just 673 00:37:41,080 --> 00:37:44,160 Speaker 1: getting top talent back to their desks and there's still 674 00:37:44,239 --> 00:37:46,439 Speaker 1: the question of whether they're actually going to be able 675 00:37:46,440 --> 00:37:49,799 Speaker 1: to physically be at their desks with a macron hanging 676 00:37:49,880 --> 00:37:52,680 Speaker 1: around exactly. It's a sticky balance for the banks because 677 00:37:52,719 --> 00:37:55,719 Speaker 1: on one hand, the costs tied to employees are going up, 678 00:37:56,200 --> 00:38:00,279 Speaker 1: but the cost tied to technology will be significant, and 679 00:38:00,640 --> 00:38:03,839 Speaker 1: we expect that the bank executives will create a lot 680 00:38:03,920 --> 00:38:07,560 Speaker 1: of discipline around telling investors that they need to be spending, 681 00:38:07,960 --> 00:38:10,120 Speaker 1: that they need to be more comfortable with spending more 682 00:38:10,239 --> 00:38:14,440 Speaker 1: to stay competitive, and that the technology costs will become 683 00:38:14,480 --> 00:38:19,680 Speaker 1: a priority in some cases ahead of talent. It's gonna 684 00:38:19,680 --> 00:38:22,560 Speaker 1: be a very interesting earning story to pass through here Bloombridge. 685 00:38:22,560 --> 00:38:25,560 Speaker 1: Shinnali Bassek, thanks for the preview as we get ready 686 00:38:25,640 --> 00:38:28,160 Speaker 1: for JP Morgan, the first out of the gate for 687 00:38:28,360 --> 00:38:31,640 Speaker 1: the Big six reporting fourth quarter results this morning just 688 00:38:31,840 --> 00:38:35,080 Speaker 1: before seven Wall Street time. We're expecting those numbers, followed 689 00:38:35,120 --> 00:38:38,880 Speaker 1: by Wells Fargo around seven am, and City Group reports 690 00:38:38,920 --> 00:38:42,360 Speaker 1: its results at eight this morning. We'll have full coverage 691 00:38:42,400 --> 00:38:46,480 Speaker 1: for you throughout the day here on Bloomberg Radio. Karen Nathan, 692 00:38:46,600 --> 00:38:48,960 Speaker 1: it is five or fifty four on Wall Street, and 693 00:38:49,000 --> 00:38:50,960 Speaker 1: let's take a closer look at the view from the FED. 694 00:38:51,080 --> 00:38:53,600 Speaker 1: Now we're hearing a course of officials at the Central 695 00:38:53,640 --> 00:38:56,160 Speaker 1: Bank talk up the prospect of three, four, or even 696 00:38:56,360 --> 00:38:59,560 Speaker 1: five interest rate hikes this year. FED Governor Christopher Waller 697 00:38:59,680 --> 00:39:03,000 Speaker 1: is among those, saying as many as five increases is possible. 698 00:39:03,280 --> 00:39:06,200 Speaker 1: He spoke late yesterday with Bloomberg's Kathleen heyes, so let's 699 00:39:06,239 --> 00:39:10,160 Speaker 1: listen into that conversation. Now, three hikes is still a 700 00:39:10,239 --> 00:39:13,480 Speaker 1: good baseline. We'll have to wait and see what inflation 701 00:39:13,560 --> 00:39:15,440 Speaker 1: looks like in the second half of the year. If 702 00:39:15,480 --> 00:39:18,080 Speaker 1: it continues to be high, the case will be made 703 00:39:18,160 --> 00:39:22,120 Speaker 1: for four, maybe five hikes. But if inflation falls back 704 00:39:22,280 --> 00:39:24,200 Speaker 1: and the second half of the year is many of 705 00:39:24,320 --> 00:39:26,920 Speaker 1: us think it will as some supply chain issues get 706 00:39:27,000 --> 00:39:30,879 Speaker 1: sorted out, then you could actually pause and not even 707 00:39:30,960 --> 00:39:32,480 Speaker 1: go to the full three. So it really is going 708 00:39:32,520 --> 00:39:34,680 Speaker 1: to hinge on the inflation data the second half of 709 00:39:34,760 --> 00:39:37,480 Speaker 1: this year. But yeah, you can't rule these things out. 710 00:39:37,800 --> 00:39:40,760 Speaker 1: Is It's sort of like do whatever it takes, especially 711 00:39:40,840 --> 00:39:43,399 Speaker 1: if you don't see inflation is starting to respond after 712 00:39:43,440 --> 00:39:45,400 Speaker 1: you do, say the first three rate hikes, going for 713 00:39:45,520 --> 00:39:48,839 Speaker 1: four and again you just said going for five maybe, Yeah, 714 00:39:48,880 --> 00:39:51,640 Speaker 1: I mean that it really depends on what happens with inflation. 715 00:39:51,800 --> 00:39:55,640 Speaker 1: I mean, if inflation just is stubbornly high through the 716 00:39:55,719 --> 00:39:57,640 Speaker 1: first part of this year, first half of this year, 717 00:39:57,680 --> 00:40:00,200 Speaker 1: we're gonna have to do a lot more. But that's 718 00:40:00,200 --> 00:40:02,800 Speaker 1: what that's our job, and that that's what we're committed 719 00:40:02,840 --> 00:40:04,719 Speaker 1: to do, and if we have to do more rate hikes, 720 00:40:04,760 --> 00:40:07,480 Speaker 1: will do it. We also have the balance sheet. We 721 00:40:07,560 --> 00:40:09,920 Speaker 1: can start letting the balance sheet run off earlier. That 722 00:40:09,960 --> 00:40:12,920 Speaker 1: will take some pressure off longer in rates and also 723 00:40:13,239 --> 00:40:16,759 Speaker 1: lead to a tightening of policy and removing some accommodation. 724 00:40:17,040 --> 00:40:19,040 Speaker 1: Could you see conditions where the Fed might do a 725 00:40:19,080 --> 00:40:21,880 Speaker 1: fifty basis point rate hike this year? That hasn't happened 726 00:40:21,880 --> 00:40:23,839 Speaker 1: in a long time, but to see if you want 727 00:40:23,880 --> 00:40:28,080 Speaker 1: to impact inflation, maybe even inflation expectations, could you see 728 00:40:28,080 --> 00:40:31,200 Speaker 1: a fifty basis point rate hike in the mix? I certainly, 729 00:40:31,200 --> 00:40:33,320 Speaker 1: even though I kind of as the datas come in, 730 00:40:33,480 --> 00:40:37,759 Speaker 1: I still favor March lift off. I don't see a 731 00:40:37,920 --> 00:40:42,440 Speaker 1: fifty basis point hike in March. We have not prevared 732 00:40:42,520 --> 00:40:46,600 Speaker 1: markets for anything that dramatic. One of our key themes 733 00:40:46,680 --> 00:40:49,800 Speaker 1: has been not to surprise markets given well enough advance 734 00:40:49,880 --> 00:40:51,719 Speaker 1: in terms of what we're trying to do, and a 735 00:40:51,800 --> 00:40:54,560 Speaker 1: fifty basis point move in March would really be a shock. 736 00:40:55,400 --> 00:40:58,080 Speaker 1: So I don't see. I can't speak for the committee, 737 00:40:58,239 --> 00:41:00,839 Speaker 1: I can only speak for myself, but I really don't 738 00:41:00,880 --> 00:41:05,120 Speaker 1: see a fifty basis point hike in March down the road. 739 00:41:05,239 --> 00:41:08,120 Speaker 1: If inflation just does not look like it's coming down, 740 00:41:08,280 --> 00:41:10,279 Speaker 1: it would certainly be in the tool kit, but it 741 00:41:10,320 --> 00:41:12,440 Speaker 1: would take a lot for us to move in that direction. 742 00:41:12,480 --> 00:41:15,120 Speaker 1: If that hasn't done a fifty basis point rate hike 743 00:41:15,200 --> 00:41:17,440 Speaker 1: in a long time. Do you have a target rate 744 00:41:17,520 --> 00:41:20,879 Speaker 1: for inflation now? Will you have a sense of one 745 00:41:20,920 --> 00:41:23,440 Speaker 1: you'll know you've done enough to rain in inflation and 746 00:41:23,520 --> 00:41:26,239 Speaker 1: to say, okay, we can at least pause now and 747 00:41:26,280 --> 00:41:29,000 Speaker 1: see what we're doing. How what kind of guidance can 748 00:41:29,040 --> 00:41:32,239 Speaker 1: you give on that? Well, like I said, uh, if 749 00:41:32,440 --> 00:41:36,440 Speaker 1: inflation has stayed higher for longer than any of us 750 00:41:36,520 --> 00:41:39,120 Speaker 1: thought it was going to we still have a lot 751 00:41:39,160 --> 00:41:42,160 Speaker 1: of expectations that inflation pressures will drop off in the 752 00:41:42,239 --> 00:41:45,600 Speaker 1: second half of this year, and my own view as 753 00:41:45,640 --> 00:41:48,239 Speaker 1: inflation would be probably by the end of the year 754 00:41:48,400 --> 00:41:52,359 Speaker 1: down around two and a half percent um. And then 755 00:41:52,480 --> 00:41:55,160 Speaker 1: once you get to that point, it's it's not as 756 00:41:55,320 --> 00:42:01,160 Speaker 1: pressing to UM to do a rapid number rapid rate hikes. 757 00:42:01,560 --> 00:42:03,320 Speaker 1: If you get inflation back down to the two and 758 00:42:03,360 --> 00:42:05,120 Speaker 1: a half number by the second half of the year, 759 00:42:05,600 --> 00:42:08,520 Speaker 1: then I think by three it'll move closer to our 760 00:42:08,560 --> 00:42:10,719 Speaker 1: target and that will take a lot of pressure off 761 00:42:10,800 --> 00:42:14,080 Speaker 1: having to raise rates. And as feder Reserve Governor Christopher 762 00:42:14,160 --> 00:42:17,279 Speaker 1: Wohler speaking with the Bloomberg's Kathleen Hayes. Catch the full 763 00:42:17,320 --> 00:42:21,359 Speaker 1: interview online at Bloomberg dot com. Checking futures right now, 764 00:42:21,560 --> 00:42:24,759 Speaker 1: SMP futures are up seven points down, futures up nine 765 00:42:24,840 --> 00:42:27,520 Speaker 1: d and nastacks features a little change the decks in 766 00:42:27,600 --> 00:42:31,040 Speaker 1: Germany's down sixtensive upper set ten year treasury down ten 767 00:42:31,080 --> 00:42:34,120 Speaker 1: thirties seconds. He at one point seven four percent and 768 00:42:34,239 --> 00:42:36,560 Speaker 1: the yield on the two year is at point nine 769 00:42:36,719 --> 00:42:40,839 Speaker 1: two per cent and still ahead. On Bloomberg Daybreak, check 770 00:42:40,920 --> 00:42:43,399 Speaker 1: on the business headlines and all the news you need 771 00:42:43,560 --> 00:42:46,400 Speaker 1: to start your day. And this is Bloomberg