Speaker 1: Live from the Bloomberg Interactive Burgers Studios is Bloomberg Daybreak
Speaker 1: for Monday, January ten two. Coming up this hour, Golden
Speaker 1: Opposite forecast for tightening for the five make forecast while
Speaker 1: grated the Omicron variant as millions of workers call out,
Speaker 1: six White House makes plans to impose export restrictions on Russia,
Speaker 1: and earnings get underway this week with results from Big Banks.
Speaker 1: The deadly blaze is being described as one of the
Speaker 1: worst fires in New York City modern history. Plus tributes
Speaker 1: come in for comedian Bob Saget, I'm Mike la Bard Ahead,
Speaker 1: I'm John Stash, Darn sports, the Jets and Giants lost
Speaker 1: as the NFL regular scenes that ended, the Raiders, Steelers
Speaker 1: and forty Niners grabbed the last playoff spots. That's all
Speaker 1: straight Ahead on Bloomberg day Break on Bloomberg Element Treo,
Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one, O
Speaker 1: six one, Boston, Bloomberg nine Sixties, San Francisco, Sirius x
Speaker 1: M one nine Team and around the world. Old on
Speaker 1: Bloomberg Radio dot Com and via The Bloomberg Business and
Speaker 1: Good Morning, I'm John Tucker and I'm Karen Moscow and
Speaker 1: US futures are little change this morning. We're coming up
Speaker 1: to five oh one on Wall Street and we check
Speaker 1: the markets every fifteen minutes throughout the trading day. On
Speaker 1: Bloomberg again, S and P futures are little change, so
Speaker 1: are down futures. NASDACK futures are lower and they're jumping
Speaker 1: around as well, down about ten points right now. The
Speaker 1: Dacks in Germany's down a quarter percent. Tenure Treasury down
Speaker 1: eight thirties seconds. You at one point seven nine percent
Speaker 1: in a yield on the two year point eight eight percent.
Speaker 1: John and Karen. Fed policy remains front and center last
Speaker 1: week's Fed minutes in the US jobs report, we're market
Speaker 1: moving events. Now we have a big call on the
Speaker 1: future of interest rates. Let's get the latest from Bloomberg's.
Speaker 1: We need a young we need a good morning, Good morning,
Speaker 1: John Goldman. Sex expects the FED to raise interest rates
Speaker 1: four times this year and begin the balance sheet runoff
Speaker 1: process in July. The firm had previously expected the balance
Speaker 1: sheet run off to start in December, and it's all
Speaker 1: due to a stronger labor market and hawkish signs from
Speaker 1: those December minutes. FED officials have been signaling a quicker
Speaker 1: move to titan policy and Golden And says that could
Speaker 1: lead to faster policy normalization than we've seen before. I'm
Speaker 1: rened a young bluebirth daybreak all right, rened to thank you.
Speaker 1: And Inflation also remains in focus, and veteran investor Mark
Speaker 1: Mobias says traders are under pricing the risks. He tells
Speaker 1: us that the reacent spike and treasury yields has room
Speaker 1: to run. I think they can go much much higher.
Speaker 1: They've got to equal what we're seeing with inflation at
Speaker 1: the end of the day, because people are not going
Speaker 1: to be buying treasuries if they see that they only
Speaker 1: getting two or three percent, but inflation is seven eight
Speaker 1: nine percent, so at the end of the day, those
Speaker 1: rates have to go off. Those comments are Mark Mobias
Speaker 1: come after hawkish minutes from the feds December meeting underscore
Speaker 1: the case for faster rate hikes and speaking of inflation,
Speaker 1: it's the main event this week's economic calendar. Here with
Speaker 1: more is Bloomberg's Vinnie del Judais. The Labor Department issues
Speaker 1: the consumer price indecks on Wednesday, and the data could
Speaker 1: put more pressure on the federal reserve the race interest
Speaker 1: rates as soon as March. Bloomberg Economics, as December CPI
Speaker 1: will register a seven percent year over your increase as
Speaker 1: COVID nineteen related supply short to just persist, fielding the
Speaker 1: worst inflation since the nineteen eighties. This week's data on
Speaker 1: December producer prices and import prices will probably offer a
Speaker 1: similar narrative. Beneat Dell, Judais, Bloomberg day break right, Vinny,
Speaker 1: thank you. All Economic forecasts are also falling prey to
Speaker 1: the Macron variant. The new COVID strain is now posing
Speaker 1: a new test to growth, and Bloomberg said, Baxter has
Speaker 1: the story. It is posing something on which employers have
Speaker 1: no control, absentee ism because of illness, people calling in sick.
Speaker 1: What started as a holiday flight cancelation has now become
Speaker 1: a reality in factories, grocery stores, and ports again testing
Speaker 1: supply chains top to bottom. The widespread absentee is um
Speaker 1: is already constraining output and several economists have downgraded their
Speaker 1: first quarter forecasts. How bad, how long it may take
Speaker 1: several weeks to assess? In San Francisco, I'm at Baxter,
Speaker 1: Bloomberg Gay Break Dank said on Capitol Hill. Democrats are
Speaker 1: pushing for another round of virus aid. How Speaker Nancy
Speaker 1: Pelosi says, go to add relief aid to a package
Speaker 1: to government funding legislation. Now, the administration has not made
Speaker 1: a formal request for more funding, but it is clear
Speaker 1: from the opportunity that is there and the again the
Speaker 1: challenge that is there from the resilience of this virus.
Speaker 1: Speaker Pelosi making the comments on Face the Nation from
Speaker 1: CBS heard Sundays on Bloomberg Radio. It's an interesting data
Speaker 1: on vaccines coming out of Asia this morning. John Singapore
Speaker 1: says it saw the few as deaths among those with
Speaker 1: Maderna's vaccine and the most deaths among those with Signifac shot.
Speaker 1: Nearly undred virus deaths recorded in the city state last
Speaker 1: year were among unvac senated individuals. And Gia politics also
Speaker 1: in focus this morning ahead of meetings between the US
Speaker 1: and Russia. But White House and US allies may impose
Speaker 1: export restrictions on Moscow if Vladimir Putin seizes more of Ukraine.
Speaker 1: The discussing limits on sensitive technology and electronics. Today in Geneva,
Speaker 1: senior American and Russian officials begin talks aimed at easing
Speaker 1: tensions over Ukraine. Here, Secretary State Anthony B. Lincoln, I
Speaker 1: don't think we're gonna see any any breakthroughs in the
Speaker 1: coming In the coming week, we're gonna be able to
Speaker 1: put things on the table. The Russians will do the same,
Speaker 1: both directly with US at NATO at the os UH,
Speaker 1: and we'll see if their grounds for for moving forward.
Speaker 1: Secretary State Anthony B. Lincoln making the comments on CNN's
Speaker 1: State of the Union. Turning to the markets, now, John,
Speaker 1: we have a bullish call from Julian Emmanuel, the ever
Speaker 1: Corps I s I strategist, says the S and P
Speaker 1: five hired is likely to end the year at hundred
Speaker 1: as the pandemic becomes an endemic by mid year. It's
Speaker 1: about a ten percent increase from are in levels, Immanuel
Speaker 1: says is also possible. His downside target is just south
Speaker 1: of thirty six hundred at the pandemic is prolonged or
Speaker 1: there's a hangover from spending and debt. Meantime, Karen Earning
Speaker 1: season kicks off in Earnest On Wall Street this week
Speaker 1: with more. Here's Bloomberg's Charlie Pellett. Banks will be front
Speaker 1: and Center with reports Friday from JP Morgan, Chase City Group,
Speaker 1: and Wells Fargo. They come as investors debate the strength
Speaker 1: of the economy and the federal reserves next policy moves.
Speaker 1: Seem as Shaw's chief strategist at Principal Global Investors, when
Speaker 1: we think about actually a bit of think about we
Speaker 1: were also going to think about earnings and the outlet
Speaker 1: that we have for twenty two is still a very
Speaker 1: solid recovery, still very straw economic en garment. Among some
Speaker 1: of the other names scheduled to report this week, Delta,
Speaker 1: Albertson's Infosis and KB Home in New York. Charlie Pellett,
Speaker 1: Bloomberg Daybreak, Thanks Charlie, and ahead of the cash open
Speaker 1: on Wall Street this Monday. Futures are mixed. The Dahl
Speaker 1: futures of twenty points, SIP futures, they're up two points
Speaker 1: right now. They tech have a nastic those futures down
Speaker 1: ten and a half points right now. As for treasuries,
Speaker 1: the benchmark ten year yield, it is up two basis
Speaker 1: points right now at one point seven eight percent, the
Speaker 1: two year at point eight seven percent. You're listening to
Speaker 1: Bloomberg day Break and where it's five oh seven right now,
Speaker 1: let's getting in from around the world. Here's Bloomberg's Michael Barnes. John,
Speaker 1: thank you very much. At least nineteen people were killed
Speaker 1: in New York City yesterday in a high rise apartment.
Speaker 1: Fire officials say the fire in the Bronx also injured
Speaker 1: at least sixty three people. New York Mayor Eric Adams,
Speaker 1: it's a very significant moment to have just the unification
Speaker 1: about city during this time of the tragedy, Mayor Eric Adams.
Speaker 1: As investigators say, the cause of the blaze was a
Speaker 1: malfunctioning space eater in an apartment on the third floor.
Speaker 1: New York City Fire Comissioner Daniel Nigro tells us many
Speaker 1: people are fighting for their lives because of smoke inhalation.
Speaker 1: The door to that apartment. Unfortunately, when the residents left
Speaker 1: was left open, it did not close by itself. The
Speaker 1: smoke spread throughout the building. Thus the tremendous loss of
Speaker 1: life and other people fighting for their lives right now
Speaker 1: in hospitals all over the Bronx. Commissioner Nigro says nine
Speaker 1: of the deaths were children. Republican Representative Jim Jordan of
Speaker 1: Ohio when a former President Donald Trump's closest allies and
Speaker 1: Congress has rejected a request for an interview by the
Speaker 1: House panel investigating the January sixth Capital riot. In a
Speaker 1: letter to the committee chairman, Jordan says the American people
Speaker 1: are tired of Democrats, NonStop investigations and partisan witch hunts.
Speaker 1: Republican Senator Ron Hunt said that he will Ron Johnson
Speaker 1: said that he will seek a third term in twenty two. Johnson,
Speaker 1: staunch supporter of former President Donald Trump, opposes COVID nineteen
Speaker 1: backs a nation and masked mandates. New York Democratic Congresswoman
Speaker 1: Alexandria or Cassio Cortez tested positive for COVID NINETEAM, according
Speaker 1: to her office of Cassio Cortez, who was fully vaccinated,
Speaker 1: has had a booster shot and is experiencing symptoms and
Speaker 1: is recovering at home. Tributes are pouring in for comedian
Speaker 1: Bob Saget. He played father Danny Tanner on the sitcom
Speaker 1: Full House. It's Mr Carr. What does Mr Carr say?
Speaker 1: You're right? He doesn't say anything. Sagged was found dead
Speaker 1: yesterday in his Orlando, Florida hotel room. Bob Saget, who
Speaker 1: was on a stand up tour was Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven journalist and analysts in
Speaker 1: more than a hundred twenty countries. Michael bar this is Bloomberg. Jo. Michael,
Speaker 1: thank you very much. Okay, just coming up on ten
Speaker 1: on Wall Street. That's time for the Bloomberg Sports Update.
Speaker 1: Here's John. Thanks John. The NFL regular season is over,
Speaker 1: thankfully for the Jets and Giants. They both went four
Speaker 1: and thirteen. The Jets, like last week, were at least
Speaker 1: in their game, trailed the Bills by only three midway
Speaker 1: through the fourth quarter. Buffalo went on to win seven
Speaker 1: to ten to clinch the a f C. E's. The
Speaker 1: Jets will go to next season unsure how good a
Speaker 1: quarterback they have. Rookie Zack Wilson yesterday competed only seven passes.
Speaker 1: The Jets will have the fourth and tenth picks of
Speaker 1: the draft. The Giants will have the fifth and eighth picks.
Speaker 1: They will clearly be looking to improve an offense so
Speaker 1: in apt. The Giants on a third and nine yesterday
Speaker 1: ran a quarterback sneak rather than risk of turnover. They
Speaker 1: lost to Washington two to seven. They lost their last
Speaker 1: six games and only once that they scored more than
Speaker 1: ten points the regular season and the last minute in
Speaker 1: Las Vegas. The Chargers game from fifteen down in the
Speaker 1: last five minutes to force overtime, but the Raiders kicked
Speaker 1: a field goal on the final play to win thirty
Speaker 1: five thirty two. Had the game into the tie, both
Speaker 1: teams would have made the playoffs. Instead, only the Raiders do.
Speaker 1: They'll play Cincinnati. The Chargers are out. The Steelers are
Speaker 1: in headed for Kansas City, New England will play Buffalo.
Speaker 1: The NFC matchups are Philadelphia at Tampa Bay, the forty
Speaker 1: Niners in Dallas, Arizona at the l A Rans NBA
Speaker 1: overtime in Brooklyn. The Nets first home win since mid December.
Speaker 1: They beat the Spurs nineteen. The Warriors beat the Kazz
Speaker 1: and Clay Thompson's first game in two and a half years.
Speaker 1: A judge in Australia reinstated Novak Djokovic's visas I now
Speaker 1: he can play the upcoming Australian Open, but the government
Speaker 1: could still take further action against him and historic hired
Speaker 1: by the Yankees. Thirty four year old Rachel Balkovic will
Speaker 1: manage the Yanks Class A minor league team in Tampa.
Speaker 1: First female to have such a job. John Stash were
Speaker 1: Bloomberg Sports John by John, thanks very much and ahead
Speaker 1: of the cash show. But on Wall Street, futures in
Speaker 1: the green right now, not but much. The nastac features
Speaker 1: have just termed positive, up just six points, SMP futures
Speaker 1: six points higher, and the own futures right now they're
Speaker 1: up forty four points. Will preview the opening uh do
Speaker 1: Wall Street this morning with Lori Calvas. Seen it in
Speaker 1: just a few minutes. You're listening the Bloomberg Tay Break
Speaker 1: Bloomberg day Break being brought to you by the Breakers
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Speaker 1: Business Flash and I'm kared. Moscow and US stock Indix
Speaker 1: futures have turned higher this morning. Investors are bracing for
Speaker 1: a von market volatility as well as stimulus withdrawal. And
Speaker 1: we checked the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg S and P futures up about seven
Speaker 1: points down, futures of forty five and NASDAC futures up thirteen.
Speaker 1: The decks in Germany is down about a tenth above
Speaker 1: her sent tenure, Treasury down three thirty seconds. He had
Speaker 1: one point seven seven per set yield on a two
Speaker 1: year point eight six per set nine X screwed oils
Speaker 1: up to ten per cent or fourteen cents at seventy
Speaker 1: nine dollars, three cents of barrel call make schooled the
Speaker 1: tenth of upper cent or two dollars at seventy announced.
Speaker 1: The euro one point one three three one against the dollar,
Speaker 1: British found one point three five nine two, and the
Speaker 1: ns at one fifteen point five nine Bitcoin this morning
Speaker 1: moving lower at forty one thousand, nine hundred dollars. That's
Speaker 1: a Bloomberg business flash. Now here's Michael Barr with Moura
Speaker 1: on what's going on around the world. Michael, good morning,
Speaker 1: Good morning, Kareny and New York of mal Functioning Space
Speaker 1: Eaters sparked a fire that filled a high rise Bronze
Speaker 1: department building with thick smoke Sunday morning, killing nineteen people,
Speaker 1: including nine children, and Australian judges reinstated tennis star Novent
Speaker 1: Djokovic's visa, which was canceled last week because he is unvaccinated.
Speaker 1: Final week of the regular NFL season, the Giants lost
Speaker 1: to Washington seven. The Jets lost forty nine in the
Speaker 1: playoffs after beating the Rams four. Patriots lost to the
Speaker 1: Dolphins but still advanced. Steelers are in the post season
Speaker 1: after beating the raven sixteen thirteen Round one playoffs, Raiders
Speaker 1: and Bengals, Patriots and Bills, Eagles and Bucks, forty nine,
Speaker 1: As and Cowboys, Steelers and Chiefs, Cardinals and Rams, Packers
Speaker 1: and Titans get first round bys. In the NBA, the Nets, Wizards,
Speaker 1: and Warriors won global news twenty four hours a day
Speaker 1: on air and on Bloomberg Quickday, powered by more than
Speaker 1: twenty seven hundred journalists and analysts more than a hundred
Speaker 1: twenty countries. I'm Michael Barr. This is Bloomberg jun Michael.
Speaker 1: Thank you. It is five twenty on Wall Street. We
Speaker 1: are lying for the Bloomberg Interactive Broker Studios. This is
Speaker 1: Bloomberg Daybreak. Let's get you set up for the trading
Speaker 1: day ahead, futures inching upward. The S and P five
Speaker 1: hundred did post the worst start to a year since
Speaker 1: twenty sixteen. We're joined now by Lori Calvassin, ahead of
Speaker 1: US Equity Strategy at RBC Capital Markets. Hey, Lari, thanks
Speaker 1: for being with us. Happy new year to you. What's
Speaker 1: your overall thought on the markets? Uh? Text bearing the
Speaker 1: brunt of the cell off of the first week of
Speaker 1: trading with a hawkish till from the FED um cheaper
Speaker 1: stocks going to outperform the more expensive ones. Well, thanks
Speaker 1: for having me, As always, it's great to be here. Look,
Speaker 1: I think that last week a lot of things that
Speaker 1: we'd have been expecting to play out in the early
Speaker 1: part of two did play out, so perhaps a bit
Speaker 1: more fiercely than even we'd anticipated. And you know, I
Speaker 1: think it's important to understand that there are different markets
Speaker 1: here that look at the FED, and the equity market
Speaker 1: at least seems to be lagging in terms of its
Speaker 1: understanding of what the set is going to do this year.
Speaker 1: So I think that's one of the reasons for the
Speaker 1: ferocity of the move last year of last week rather
Speaker 1: and the unwind and tech. If you go back to
Speaker 1: right before the holidays in December, we did a poll
Speaker 1: of equity investors and we found at fifty percent we're
Speaker 1: still anticipating liftoffs by the Fed into Q of this year.
Speaker 1: So the idea of March hikes coming into play. I
Speaker 1: know that's been popular and fixing come circles for a while,
Speaker 1: but it is something the equity market has been late
Speaker 1: to digest, and I think that's, frankly, just one of
Speaker 1: the reasons why we've seen this ferocious unwind in tech
Speaker 1: SOX because, as you mentioned, when rates are rising, expensive
Speaker 1: stocks underperform, and tech is where the most expensive valuations are.
Speaker 1: Even after the route we saw last week, we got
Speaker 1: the forecast from Goldman Sachs this morning four rate rises
Speaker 1: this year. What's your view, um, I think that's similar
Speaker 1: to what our economists have been talking about. I mean
Speaker 1: they were telling us back in early December, Frankly, that
Speaker 1: you know, they thought there was a fifty fifty chance
Speaker 1: of a Mark March hike, and our rate strategy team
Speaker 1: had been saying that they thought the Fed was on
Speaker 1: a more aggressive tightening path than than the market understood.
Speaker 1: They've been saying that for quite some time as well. Um,
Speaker 1: so it's not really that much of a shock to us.
Speaker 1: But again, I do think there's some additional digestion that
Speaker 1: the equity market um is going to have to do.
Speaker 1: So I don't think that this you know, this, this
Speaker 1: this route and tech frankly doesn't seem to me like
Speaker 1: it's done yet. Is there any thought that maybe the
Speaker 1: projections for the rate rises might be overdone, that the
Speaker 1: hawk is till might not be as hawk gish, and
Speaker 1: that could actually wind up being a positive for risk assets. Well, yeah,
Speaker 1: I've been hearing equity investors, you know, since you know,
Speaker 1: my December meetings were we've really been focusing on the
Speaker 1: year head outlook, questioning whether or not the FED should
Speaker 1: be so aggressive. And there's been a couple of things
Speaker 1: that people have pointed to in my conversations. At least
Speaker 1: one has been the economic disruption from Omicron and does
Speaker 1: not to say people are embarrassed on the economic outlook,
Speaker 1: but just saying there's a certain fragility um that they've
Speaker 1: been surprised that the FED would want to get so
Speaker 1: aggressive in the middle of um you know, sort of
Speaker 1: wait and see how it plays out, is what a
Speaker 1: lot of people have told me. Others, frankly, have said, Look,
Speaker 1: we expect inflation to start to moderate later this year.
Speaker 1: We expect supply chain pressures to moderate by midyear. Why
Speaker 1: does the FED need to be so aggressive if that's
Speaker 1: already set to happen, um. So I think that's really
Speaker 1: what a lot of equity investors have been struggling with
Speaker 1: and why they've been behind the curve, so to speak.
Speaker 1: A new year's started, another earning season. What among the
Speaker 1: things you'll be watching for it to maybe indicate a
Speaker 1: broader trend. So, you know, it's interesting. We always start
Speaker 1: out with the financials, and the financials have had quieter
Speaker 1: run cutting into this reporting season, so I'd say the
Speaker 1: bar is pretty high there, um. But you know, putting
Speaker 1: the financials aside, you know, I'm looking to see what
Speaker 1: the color is on demand, what's the color on supply chain,
Speaker 1: and the timing of improvement is COVID and the o
Speaker 1: maicon wave delaying that and pricing power. Um Our analysts
Speaker 1: have come into this year very comforted by the fact
Speaker 1: that that their companies can manage through O Macron and
Speaker 1: that pricing power is strong to come back supply chain
Speaker 1: and inflation pressures. UM. But we do need to see
Speaker 1: if that is continuing to hold in this latest commentary. Alright,
Speaker 1: time to put you on the spot with some projections
Speaker 1: you're in for you still sticking to your your in projections.
Speaker 1: We're still sticking to the five thousand fifty target. UM.
Speaker 1: We've had that in place for quite some time. UM.
Speaker 1: It actually we had put our targets out early last year,
Speaker 1: and so we did revise it earlier to that number already. UM.
Speaker 1: And look, I think bottom line, it still sends the
Speaker 1: message we want to send, which is that this is
Speaker 1: going to be an up here in the stock market.
Speaker 1: We don't think it's going to be as easy um
Speaker 1: as what we got last year. We're not surprised by
Speaker 1: the early year volatility. But the good news is this
Speaker 1: volatility is coming early in the year and there's time
Speaker 1: to recover from it. Yeah, what's what's the biggest risk
Speaker 1: you see at this moment? So you know, I have
Speaker 1: been concerned about the quantitative tightening talk. UM. That was
Speaker 1: not something that was on our radar a few months ago.
Speaker 1: It's something we have had to rapidly pull onto our
Speaker 1: radar um. I think that in the multiple compression that
Speaker 1: you do often see with rate height cycles is something
Speaker 1: to keep in mind. We've been anticipating a very strong
Speaker 1: Earns backdrop to offset that um, but I do think
Speaker 1: that's really probably where the risk is. Boys A pleasure,
Speaker 1: Thank you, lo Lorie Calvassin ahead of US Equity strategy
Speaker 1: at RBC Capital Markets with us this Monday morning. Down
Speaker 1: futures right now seventeen points higher, SMP futures a point higher,
Speaker 1: and the st futures they've been fluctuating of in and
Speaker 1: out of gains right now eleven points lower, or the
Speaker 1: NASTAC futures. You're listening to Bloomberg day Bread and the
Speaker 1: Bloomberg weather for it. Today mostly saw a breezy, colder
Speaker 1: at the Heights aperture about thirty so I partly clowned
Speaker 1: a chance of snow showers during the evening, breezy, much
Speaker 1: colder after midnight, the lows dipping down into the mid teens.
Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York,
Speaker 1: Bloomberg E Living Freedom to Washington, d C. Bloomberg one
Speaker 1: to Boston, Bloomberg one O six one to San Francisco,
Speaker 1: Bloomberg N sixty to the country, Sirius XM Chado one
Speaker 1: ninet and around the globe the Bloomberg Business at and
Speaker 1: Bloomberg Radio dot com. This is Bloomberg Day Breaks five
Speaker 1: thirty on Wall Street. Good morning, I'm John Tucker and
Speaker 1: I'm Karen Moscow, and we're just about four hours away
Speaker 1: from the open of US trading. Let's catch you have
Speaker 1: to date on the news you need to know at
Speaker 1: this hour. US futures are little change this morning. To
Speaker 1: start the week, the S and P five hundred is
Speaker 1: down one nine percent so far this year and as
Speaker 1: the worst start since to tech having NAVSDAC one hundred
Speaker 1: is down four and a half percent. It all comes
Speaker 1: as traders anticipate higher interest rates, and Goldman Sachs is
Speaker 1: ramping up its forecast on that front. Bloomberg's Reny too
Speaker 1: Young joins us now with more. Karen Goldman Sachs expects
Speaker 1: to Fit to raise interest rates four times this year
Speaker 1: and begin the balance sheet runoff process in July. That's
Speaker 1: moved up from a previous forecast of December. It's all
Speaker 1: because of a stronger labor market and hawk is signs
Speaker 1: from the Central Bank's latest meeting. Goldman says the Fed
Speaker 1: is set to normalized policy faster than we've ever seen before.
Speaker 1: I'm really need a young Bloomberg daybreak, all right, thanks
Speaker 1: for need a Treasury yields they continue to climb, with
Speaker 1: a tenure benchmark moving closer to two Garfield Reynolds covers
Speaker 1: rates for Bloomberg News to missing can come in this quarter,
Speaker 1: and if it does, us through that two percent, it
Speaker 1: could go significantly higher before anybody calls the hoop because
Speaker 1: there's a little bit too much complacency out there about
Speaker 1: just how how Bloomberg Scarfield Reynolds is. This week's reports
Speaker 1: on inflation CPI on Wednesday, p p I on Thursday
Speaker 1: will be key for the bond market, and geo politics
Speaker 1: is also in focus this morning, John, Ahead of meetings
Speaker 1: between the US and Russia, Bloomberg News has learned the
Speaker 1: White House in US allies may and pose export restrictions
Speaker 1: on Moscow if Latimir Plutin seizes more of Ukraine. We
Speaker 1: get the latest from Bloomberg's Maria Today. Oh so far.
Speaker 1: You know some of the lines that we've gotten here
Speaker 1: is pretty much the same kind of mood music that
Speaker 1: we've heard for weeks now, kind of saying, you know,
Speaker 1: the United States, there's two ways here, one in which
Speaker 1: Russia d escalates and we go for a diplomatic solution.
Speaker 1: If there's no diplomatic solution to the Ukraine tension, then
Speaker 1: we could see immediate and huge, massive repercussions on the
Speaker 1: Russian economy. And of course Russia still playing this very tough,
Speaker 1: saying we're not going in to talk to Concede and
Speaker 1: Bloomberry's Maria Today, O says talks are ongoing in Geneva.
Speaker 1: They'll be followed by NATO meetings in Brussels later this week.
Speaker 1: S and P futures that will change this morning. So
Speaker 1: our down future is nowsday futures down four team now.
Speaker 1: So they've been moving around a bit this morning. The
Speaker 1: decks in Germany is down about a tenth of upper
Speaker 1: cent ten year treasury down four thirty seconds. You had
Speaker 1: one point seven seven percent yield on the two year,
Speaker 1: point eight to six percent in bitcoin this morning at
Speaker 1: nine hundred dollars straight. I had your latest local headlines,
Speaker 1: plus a check of sports, and this is Bloomberg. Thanks
Speaker 1: three on Wall Street. Hand, Let's bring in Michael Parnhow
Speaker 1: with more on what else is going on in New York.
Speaker 1: Hand around the world, John, thank you very much, Sarah.
Speaker 1: New York Mayor Eric Adams says it's one of the
Speaker 1: worst fires in modern city history. Nineteen deaths, nine of
Speaker 1: them are children up babies that we lost, and we
Speaker 1: all filling this and we're going to be here for
Speaker 1: his community. Adam says the blaze that broke out at
Speaker 1: a high rise apartment building and the ROVINX also injured
Speaker 1: at least sixty three people. New York Governor Kathy hokel
Speaker 1: we are indeed a city and shock to see it
Speaker 1: in a mother's eyes as I held her who lost
Speaker 1: her entire family. New York Fire Commissioner Daniel Ninegro the
Speaker 1: marshals have determined, through physical evidence and through firsthand accounts
Speaker 1: by the residents that this fire started in a bedroom
Speaker 1: in a portable electric heater. Commissioner nine Gros says the
Speaker 1: blaze began in a third floor apartment and smoke quickly spread.
Speaker 1: Representative Alexandria Ocassio Cortez in New York has tested positive
Speaker 1: for COVID nineteen. According to her office, Ocassio Cortez, who
Speaker 1: was fully vaccinated and had a booster shot, is experiencing
Speaker 1: symptoms and recovering an home. Ohio Representative Jim Jordan indicated
Speaker 1: that he won't voluntarily testify to the House Committee invest
Speaker 1: getting the riot at the US Capitol, writing the inquiry
Speaker 1: isn't fair minded and objective, you know. Letter to committee
Speaker 1: Chairman Benny Thompson, the Ohio Republican says the committee's request
Speaker 1: that he appear is far outside the bounds of any
Speaker 1: legitimate inquiry, violates core constitutional principles and would serve to
Speaker 1: further a road legislative norms. Jordan is one of former
Speaker 1: President Donald Trump's congressional allies and has publicly acknowledged talking
Speaker 1: on the phone with Trump January six, as rioters stormed
Speaker 1: the Capitol. Bob Sagett, the actor comedian known for his
Speaker 1: role in Full House and host of America's Funniest Home Videos,
Speaker 1: died while on a stand up tour. Detectives who found
Speaker 1: Saget's body in Orlando, Florida, in a hotel room say
Speaker 1: there were no signs of foul play or drug use.
Speaker 1: Bob Saget was six Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty seven hundred journalists and analysts more than a
Speaker 1: hundred twenty countries. Michael Laren, this is Bloomberg, John, Michael,
Speaker 1: thank you man. It's coming up up straight this time
Speaker 1: for the Bluebird Sports Update. Here's John Alright. John with
Speaker 1: season ending losses. The Jets and Giants both finished four
Speaker 1: and thirteen, so they get high draft picks. The Jets
Speaker 1: also owned Seattle's picking. The Giants have Chicago, so the
Speaker 1: two New York teams together owned four of the top
Speaker 1: ten picks. Both teams need plenty of help. The Giants
Speaker 1: need a ton of help on offense. They lost to
Speaker 1: Washington twenty two to seven. Antonio Gibson ran for a
Speaker 1: hundred forty six yards, the Giants only had a hundred
Speaker 1: and seventy seven total, only ten first downs. Jake from
Speaker 1: did have a TV pass but also a fumble two interceptions,
Speaker 1: one of them returned for score. Giants lost their last six,
Speaker 1: all by double digits. Five of the six were buy
Speaker 1: more than two touchdowns, and now general manager Dave Gettleman
Speaker 1: certain to leave His four year record was nineteen and
Speaker 1: forty six. It's not known if coach Joe Judge keeps
Speaker 1: his job. Jets lost in Buffalo twenty seven to ten,
Speaker 1: so a six and twenty seven record of the last
Speaker 1: two seeds in The playoffs begin Saturday with Las Vegas
Speaker 1: at Cincinnati. The Raiders beat the Chargers last night thirty
Speaker 1: thirty two on a field goal on the last play
Speaker 1: of overtime. A tie would have meant both teams got in. Instead,
Speaker 1: Chargers are out, Steelers are in. They play at Kansas City,
Speaker 1: New England will go to Buffalo. The NFC matchups are Philadelphia,
Speaker 1: Tampa Bay, the forty Niners in Dallas, and Arizona at
Speaker 1: the L A. Van. Alabama looks to make it seven
Speaker 1: national championships in the last thirteen years. Gimpson Tide beat
Speaker 1: Georgia last month in the SEC championship game. They'll play
Speaker 1: again tonight Indianapolis. Georgia actually a slight favorite. Overtime in Brooklyn,
Speaker 1: Nets beat the Spurs one nineteen. A judge in Australia
Speaker 1: reinstated Novak Djokovic's visa. As of now, he's free to
Speaker 1: play the upcoming Australian openly. John Stashwar Bloomberg Sports Jump John,
Speaker 1: thanks very much, five thirty seven on Wall Street. Hand
Speaker 1: that means it's time for the Tri State Business Report.
Speaker 1: For that, we're joined by Bloomberg's Ed Quarry. The Board
Speaker 1: of New York and New Jersey is working to clear
Speaker 1: a small bottleneck of container ships off the coast of
Speaker 1: Long Island. Is COVID nineteen cases among DONC workers collide
Speaker 1: with the surgeon cargo. The average weighted anchorage for container
Speaker 1: ships was four point eight days in the final weeks
Speaker 1: of one compared with an average at one point six
Speaker 1: days for all of last year. Connecticut will replace diesel
Speaker 1: powered school busses with electric vehicles by five The Connecticut
Speaker 1: Post reports it will be a massive undertaking, requiring not
Speaker 1: only the replacement of the current fleet of buses, but
Speaker 1: the construction of recharging stations to power them up. Provident
Speaker 1: Bank has elevated Anthony laba Zetta to the title of
Speaker 1: President and CEO. He was previously Director, President and Chief
Speaker 1: Operating Officer of the Jersey City based bank and Provident
Speaker 1: Financial Services, it's holding company. Andrew Bloomberg, Try State Business Report.
Speaker 1: I'm ed Corey. Thanks on Wall Street. Bloomberg Radio is
Speaker 1: on the era from San Francisco to New York, London
Speaker 1: to Hong Kong. Let's check in now with Global News
Speaker 1: team for some of the top stories heard on our
Speaker 1: three hundred affiliate radio stations around the world. I'm Steve
Speaker 1: Potas get on ten ten Wins in New York. We're
Speaker 1: talking about the part of New York and New Jersey
Speaker 1: hustling to cut into a rare bottleneck of container chips.
Speaker 1: Um Corney Tannahoe on Cathabian Olmaha. Soaring fertilizer prices, which
Speaker 1: have driven up food inflation have finally tumbled. I'm Caroline
Speaker 1: Hell Bloomberg DAB Digital Radio in London. We're reporting on
Speaker 1: the government's new solution to the cladding disaster. House builders
Speaker 1: will have to pay into a four billion pounds plodding funds.
Speaker 1: I made Corey on w w J in Detroit. I'm
Speaker 1: reporting General Motors has agreed to recognize California's authority has
Speaker 1: set its own policies on vehicle emission. Yeah, those are
Speaker 1: some of these stories are twenty seven hundred Bloomberg journalists
Speaker 1: and analysts are working on this morning around the world.
Speaker 1: It's five thirty nine on Wall Street. The following is
Speaker 1: an editorial from Bloomberg Opinion. This editorial was written by
Speaker 1: the Bloomberg Editorial Board. The new year brought an unprecedented
Speaker 1: wave of protests to the Central Asian nation of Kazakhstan.
Speaker 1: In response, the country's president claimed his government was under
Speaker 1: attack by terrorist groups that had received extensive training abroad.
Speaker 1: In fact, ordinary Kazakhs have enough reason of their own
Speaker 1: to be angry. The government would be better off addressing
Speaker 1: their legitimate grievances, both economic and political, instead of trying
Speaker 1: to suppress them. Worryingly, the Kazakh president has taken a
Speaker 1: hard line approach, calling in troops from Russia and issuing
Speaker 1: a shoot to kill order against protesters. This move will
Speaker 1: certainly backfire. One thing the demonstrations should have taught Kazakh
Speaker 1: leaders is the danger of not listening to their own people.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash
Speaker 1: Opinion or ope I n go on the Bloomberg terminal.
Speaker 1: This has been Bloomberg Opinion and Bloomberg Opinion editorials can
Speaker 1: be heard every weekday at it's time terminal customers. You
Speaker 1: can read more at opie I n go. This is
Speaker 1: Bloomberg the forecast for meteorologist Rob Caroline Burr. Mostly selly, breezy, colder,
Speaker 1: highs about thirty now, partly cloudy tonight, some snow showers,
Speaker 1: possible breezy, much colder after midnight, the low temperature dipping
Speaker 1: down the fifteen markets, headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business
Speaker 1: apt and at Bloomberg Dictape. This is a Bloomberg Business
Speaker 1: blash and I'm Karen Moscow and stocks in Europe are steady.
Speaker 1: U Stock Index futures are little change. Investors bracing for
Speaker 1: a bond market volatility and stimulus withdrawal. We checked the
Speaker 1: markets every fifteen minutes throughout the trading day on Bloomberg.
Speaker 1: Right now, SMP futures again little change, so are down
Speaker 1: futures NASDAG futures are lowered, down about two tenths of
Speaker 1: upper cent or twenty four points. The decks in Germany's
Speaker 1: down a tenth of upper cent. The ten year treasury
Speaker 1: down two thirties seconds. He had one point seven seven
Speaker 1: per cent yield on the two year point eight six
Speaker 1: percent Ninemex screwed oils down a tenth of upper cent
Speaker 1: or ten cents is seventy eight dollars seventy nine cents
Speaker 1: of barrel comex schooled up a tenth of upper cent
Speaker 1: or two dollars at seventy announce the Euro one point
Speaker 1: one three to eight against the dollar, British pound one
Speaker 1: point three five eight three the ends at one fifteen
Speaker 1: point five eight, and Bitcoin this morning at forty one thousand,
Speaker 1: nine hundred dollars. That's down about nine tenths of upper cent.
Speaker 1: That's a Bloomberg business flash. Now here's Michael Barr with
Speaker 1: more on what's going on around the world. Michael Karen,
Speaker 1: thank you very much. At least nineteen people were killed
Speaker 1: in New York City Sunday in the High Ryan's apartment
Speaker 1: fire in the Bronx. Investigators say m L functionings a
Speaker 1: seaters sparked the blaze. Chicago school leaders are canceling classes
Speaker 1: for a fourth day. The dispute continues with the teachers
Speaker 1: union over remote learning and COVID nineteen protocols. In the
Speaker 1: final week of the regular NFL season, the Giants lost
Speaker 1: to Washington. The Jets lost the forty nine are in
Speaker 1: the playoffs after beating the Rams. The Patriots lost to
Speaker 1: the Dolphins but still advanced. The Ravens lost to the Steelers.
Speaker 1: Round one playoff games Raiders and Bengals, Patriots and Bills,
Speaker 1: Eagles and Bucks, forty Niners and Cowboys, Steelers and Chiefs,
Speaker 1: Cardinals and Rams, Packers and Titans get byes. In the NBA,
Speaker 1: the Nets, Wizards and Warriors won, and Australian judges reinstated
Speaker 1: tennis star Novak Djokovic's visa, which was canceled last week
Speaker 1: because he is unvaccinated. Global news twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty seven hundred journalists and analysts more than a
Speaker 1: hundred twenty countries. I'm Michael Barr. This is Bloomberg, John, Michael,
Speaker 1: thank you. Five nine Wall Street were live for the
Speaker 1: Bloomberg Interactive Broker's Studios. On the virus front, the latest
Speaker 1: numbers of worldwide cases exceeding three hundred points six million.
Speaker 1: Deaths have surpassed five point four eight million people. Let's
Speaker 1: get an update now from G. Gronville, professor at the
Speaker 1: Johns Hopkins Bloomberg School Public Health joining us this morning. Professor,
Speaker 1: Happy new year, the new year to you, Thank you
Speaker 1: very much for being with us this morning. We have
Speaker 1: numerous reports of hospitals across the country being understaffed as
Speaker 1: more workers get COVID. Can you give us an update
Speaker 1: from where you stand just how dire things are at
Speaker 1: this point? Yes, I mean much of the serious situation
Speaker 1: is really because we have so many unvaccinated people um
Speaker 1: and because omicron is good at infecting people who are vaccinated,
Speaker 1: it doesn't cause nearly as severe disease as UM as
Speaker 1: in people who are unvaccinated, But it is taking people
Speaker 1: out of the workforce, is making them ill, and so
Speaker 1: it's cre eating um. It's making a bad situation worse.
Speaker 1: Because we've been in this for nearly two years now.
Speaker 1: You know where there are deaths in the vaccinated, it
Speaker 1: seems the bulk of them are with non m r
Speaker 1: and A vaccines. Is that clear to you? And is
Speaker 1: it pretty clear at this point that the type of
Speaker 1: vaccine really does matter. The m RNA vaccines have had
Speaker 1: really amazing efficacy and so UM for people who have
Speaker 1: had the Johnson Johnson one dose vaccine. It's recommended that
Speaker 1: you get a booster and a booster with UM, we'll
Speaker 1: get an additional dose and then maybe a booster on
Speaker 1: top of that. Uh, you know, to get the full
Speaker 1: m RNA vaccine update because it definitely has a higher efficacy. Yes,
Speaker 1: we had a report this morning on Bloomberg there's a
Speaker 1: Cypriot scientist defending his assertion that there's a new strand
Speaker 1: of COVID nineteen existing out there. It combines the characteristics
Speaker 1: of the delta omicron variants. Do you have any thoughts
Speaker 1: on that? Um, there's a lot of controversy over that person.
Speaker 1: So let's wait and see. We've got enough problems on
Speaker 1: the table to start, you know, before and getting some
Speaker 1: more on the table. Yeah, it's I wonder where we
Speaker 1: go from here from from your perspective in terms of
Speaker 1: getting people vaccinated new variants, what should we expect at
Speaker 1: this point? Well, I mean every time the virus replicates
Speaker 1: is an opportunity for more variants to form, and so um,
Speaker 1: you know, you don't want to uh be all doom
Speaker 1: and gloom, but you know, amcon may not be the
Speaker 1: last one, and so we need to think about this
Speaker 1: as being have a longer term strategy. People need to
Speaker 1: get vaccinated. Children need to get vaccinated. And if I
Speaker 1: could wave a magic wand I would, I would vaccinate
Speaker 1: all the case and twelve children right now so that
Speaker 1: they are better protected. UM. And also I would I
Speaker 1: would make everyone who has not had a booster shot,
Speaker 1: you know, make that appointment. Um. That those are some
Speaker 1: of the best things that you can do right now
Speaker 1: to protect yourselves. The there are codes of the being
Speaker 1: exposed to sours covid to the virus doesn't always result
Speaker 1: in infection. We've been keen to understand why any any
Speaker 1: thoughts of that. Yes, this the other day I spoke
Speaker 1: to a nine year old man who had been boosted
Speaker 1: and who tested positive and was really annoyed with his
Speaker 1: family who wouldn't let him go to work. So you know,
Speaker 1: everybody's experience is a little bit different. Um. Unfortunately, some people,
Speaker 1: even with the vaccine, have had more serious called more
Speaker 1: cold like flu life symptoms. UM. But you know it's uh,
Speaker 1: it's it is definitely variable. People have different immune responses
Speaker 1: and people are expose the different amounts of the virus
Speaker 1: as well, so there are too many variable stabilities apart.
Speaker 1: But amicon does appear to be milder for people who
Speaker 1: are vaccinated than not yea. And in terms of public
Speaker 1: policy at this point, what would you like to see
Speaker 1: from the government. Well, I think um much has been
Speaker 1: made about the availability of testing, and we need to
Speaker 1: have better testing and people need to get the results faster,
Speaker 1: that's for sure. But we UM the vaccine, we need
Speaker 1: to have more people um, you know, promoting it. UM
Speaker 1: it's it really is life saving and it could help
Speaker 1: our hospitals, um not be so overwhelmed. The other thing
Speaker 1: we need to do is make sure to give the
Speaker 1: support all we can to to hospitals. And because right
Speaker 1: now this is uh, this is too much of a
Speaker 1: crush on on them and and it's been going on
Speaker 1: for too long. Usually always a pleasure, appreciate it. Usually Groundville,
Speaker 1: professor at the Johns Hopkins Bloomberg School of Public Health,
Speaker 1: Karen all right, John, thank you. It is five fifty
Speaker 1: four on Wall Street time for our daily Bloomberg Law Brief,
Speaker 1: exploring legal issues in the news, and today we're looking
Speaker 1: at the sentencing of Elizabeth Holmes, the youngest female self
Speaker 1: made billionaire, faces as long as twenty years behind bars
Speaker 1: after being found guilty of fraud at paraph knows the
Speaker 1: blood testing startups she founded, but the thirty seven year
Speaker 1: old is likely to appeal her conviction for more in
Speaker 1: the case, June Grasso speaks to Bloomberg legal reporter Joel Rosenblad. So,
Speaker 1: now we assume she's going to appeal. Sitting through the trial,
Speaker 1: did you notice any points, any obvious points of appeal? This,
Speaker 1: to me is a very interesting question and a very
Speaker 1: important point. The short answer is no, I think there's
Speaker 1: nothing for her to appeal here. The judge went out
Speaker 1: of his way to let Elizabeth Holmes and the government
Speaker 1: hash out differences in the middle of trial. He allowed
Speaker 1: the defense to raise every argument that they wanted to,
Speaker 1: to the point where it got long. Yet the judge
Speaker 1: just let it play out kind of very slowly and
Speaker 1: very carefully. And I think that this was very specifically
Speaker 1: designed to not allow for any issues to appeal. And
Speaker 1: the way the verdict broke down, with her being acquitted
Speaker 1: on some charges, found guilty on others, and a deadlocks
Speaker 1: jury on three counts indicates that they walked through the
Speaker 1: accounts from one by one very carefully mapped out the
Speaker 1: verdict form what they were required to do under the rules,
Speaker 1: and I think that time that they spent on that
Speaker 1: to now carefully they worked through it makes for I
Speaker 1: think zero issue on appeal. She's sing twenty years on
Speaker 1: each count, but that's not going to happen. So what
Speaker 1: might descendants be. Well, as you know, the TN sumble
Speaker 1: way within the guidelines. But she is going to spend
Speaker 1: time in prison for sure. My early assessment was that
Speaker 1: she would spend being a first time offender and the
Speaker 1: white collar criminal, probably between three and five years. A
Speaker 1: closer look at that, and some conversation with experts tells
Speaker 1: me something different. One of the counts was for a
Speaker 1: hundred million dollars. She was fun guilty of in one
Speaker 1: instance defrauding an investor of one hundred million dollars. The
Speaker 1: money matters, and it bumps up by statute the amount
Speaker 1: of time that she may end observing, and I think
Speaker 1: she's going to spend a minimum of five years in
Speaker 1: prison and maybe even a bit more, and most likely
Speaker 1: will she be held in one of those pushy minim
Speaker 1: security prison camps like the so called Camp Cupcake. That's right,
Speaker 1: I mean, as far as prisons go, it's going to
Speaker 1: be a comfortable setting. There's a lot of speculation that
Speaker 1: she would have time to write a book or a screenplay.
Speaker 1: It'll be a big change for her though. Even after
Speaker 1: their nose, she has had a baby with Billy Evans,
Speaker 1: who's an heir to a hotel fortune. And you can
Speaker 1: tell just doing trial she's being picked up in a
Speaker 1: car and driven to an estate where she's staying and
Speaker 1: living a very extremely luxurious lifestyle that's going to be gone.
Speaker 1: And as Bloomberg Legal reporter Joe Rosenblatt speaking with June Grasso.
Speaker 1: Catch more of that interview plus analysis of the latest
Speaker 1: legal news by listening to the Bloomberg Law Show at
Speaker 1: ten pm Eastern Time or subscribing to the Bloomberg Law Podcast.
Speaker 1: And attorneys can find exceptional legal research and business development
Speaker 1: tools at Bloomberg Law dot com. Futures this morning, S
Speaker 1: and P futures are little change, so are down futures
Speaker 1: and Nasdaq futures are lower, down about forty four points.
Speaker 1: The ten year treasury down three thirties seconds, YELD one
Speaker 1: point seven seven per cent, and they yield on the
Speaker 1: two year point eight six percent. NIMEX Scrude oil little
Speaker 1: change down five cents at seventy eight dollars eighty five
Speaker 1: cents a barrel still ahead on Bloomberg Daybreak and check
Speaker 1: on the business headlines and all the news you need
Speaker 1: to start your day. And this is Bloomberg.