1 00:00:03,680 --> 00:00:07,240 Speaker 1: My from the Bloomberg Interactive Brooker Studios is Bloomberg day 2 00:00:07,240 --> 00:00:11,119 Speaker 1: Break for Wednesday, January nineteen two. Coming up this hour, 3 00:00:11,680 --> 00:00:14,160 Speaker 1: Stocks Paris sell off in the wake of a surgeon, 4 00:00:14,280 --> 00:00:17,800 Speaker 1: Treasury Yields, Bank of America, and Morgan Stanley prepared to 5 00:00:17,880 --> 00:00:22,200 Speaker 1: report earnings. The five G rollout disrupts flights around the world, 6 00:00:22,560 --> 00:00:24,440 Speaker 1: and the White House looks to reign in the nation's 7 00:00:24,480 --> 00:00:28,200 Speaker 1: biggest tech companies. Rudy Giuliani is among other Trump lawyers 8 00:00:28,200 --> 00:00:31,240 Speaker 1: subpoena and in the Capitol Riot broad plus COVID cases 9 00:00:31,280 --> 00:00:34,280 Speaker 1: are falling in New Jersey. I'm Michael varn More Ahead, 10 00:00:34,840 --> 00:00:36,880 Speaker 1: I'm John stash Our in sports, Second day of the 11 00:00:37,000 --> 00:00:39,680 Speaker 1: Row and Nick's old Last Minnesota one by two the 12 00:00:39,680 --> 00:00:45,440 Speaker 1: Islanders one in a shootout. That's all straight ahead on 13 00:00:45,640 --> 00:00:49,120 Speaker 1: Bloomberg day Break on Bloomberg eleven three on New York, 14 00:00:49,240 --> 00:00:54,000 Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 15 00:00:54,160 --> 00:00:58,680 Speaker 1: Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 16 00:00:59,000 --> 00:01:01,920 Speaker 1: and around the world. Don Bloomberg Radio dot Com and 17 00:01:02,120 --> 00:01:08,759 Speaker 1: via the Bloomberg Business Stor. Good morning, I'm Nathan Hagar 18 00:01:09,160 --> 00:01:12,720 Speaker 1: and I'm Karen Moscow and US futures are higher, rebounding 19 00:01:12,760 --> 00:01:15,240 Speaker 1: from a sharp sell off over night. We're coming up 20 00:01:15,240 --> 00:01:16,840 Speaker 1: to five oh one on Wall Street, and we checked 21 00:01:16,840 --> 00:01:19,919 Speaker 1: the markets every fifteen minutes throughout the trading day. On Bloomberg, 22 00:01:20,280 --> 00:01:22,640 Speaker 1: SNP Future is up seven points at owth Future is 23 00:01:22,720 --> 00:01:25,919 Speaker 1: up twenty nine. Nasday futures up fifty two. The decks 24 00:01:25,920 --> 00:01:28,760 Speaker 1: in Germany's up about two tenths of uppercent ten year 25 00:01:28,800 --> 00:01:31,600 Speaker 1: Treasury down three thirties seconds, yield one point eight eight percent. 26 00:01:31,680 --> 00:01:34,399 Speaker 1: That yield on the two year one point oh five percent. 27 00:01:34,880 --> 00:01:37,160 Speaker 1: Nine X Screwed oil is at one point three percent, 28 00:01:37,240 --> 00:01:39,440 Speaker 1: up a dollar twelve at eighty six dollars fifty five 29 00:01:39,520 --> 00:01:43,000 Speaker 1: cents of barrel, and bitcoin this morning at forty one thousand, 30 00:01:43,120 --> 00:01:45,679 Speaker 1: six hundred dollars. Nathan, Well, Karen, it is all about 31 00:01:45,720 --> 00:01:48,360 Speaker 1: the markets this morning. As you said, stock futures did 32 00:01:48,360 --> 00:01:51,120 Speaker 1: fall sharply overnight, but they are rebounding. Let's get the 33 00:01:51,160 --> 00:01:53,840 Speaker 1: very latest live with Bloomberg's John Tucker. Good morning, John, 34 00:01:53,880 --> 00:01:56,280 Speaker 1: and good morning Nathan Nassey. Futures fella as much as 35 00:01:56,320 --> 00:01:58,640 Speaker 1: one percent will rend right now. There are up three 36 00:01:58,680 --> 00:02:02,320 Speaker 1: tenths of a percent for investors fed rate hikes baked 37 00:02:02,360 --> 00:02:04,919 Speaker 1: into the cakes starting in March, and now there speculation 38 00:02:04,960 --> 00:02:08,320 Speaker 1: the Central Bank will deliver more than a quarter percentage 39 00:02:08,320 --> 00:02:11,160 Speaker 1: point hike at that meeting. A more hawk is fed 40 00:02:11,240 --> 00:02:14,480 Speaker 1: wing on stocks, especially tach shares lately. But as ZAC 41 00:02:14,520 --> 00:02:18,160 Speaker 1: one hundred sank two point six percent yesterday from its 42 00:02:18,200 --> 00:02:21,520 Speaker 1: November peak, the tech heavy nastack has fallen nine point 43 00:02:21,639 --> 00:02:24,960 Speaker 1: six percent. That is just shy of the correction. Live 44 00:02:25,000 --> 00:02:27,920 Speaker 1: to New York on John Tucker Bloomberg Daybreak. All right, John, 45 00:02:27,919 --> 00:02:29,760 Speaker 1: thank you what we saw the US sell off spread 46 00:02:29,800 --> 00:02:31,760 Speaker 1: to Asia over a night, and we get the recap 47 00:02:31,800 --> 00:02:36,120 Speaker 1: from Bloomberg's Juliette Sally and Singapore. Good morning, Juliette, Good morning, Karen. 48 00:02:36,160 --> 00:02:39,200 Speaker 1: The MSCI Asia Pacific Index fell for a fifth session, 49 00:02:39,240 --> 00:02:42,640 Speaker 1: as longest losing streaks since March. Japanese equities led the 50 00:02:42,680 --> 00:02:45,919 Speaker 1: decline as the topics closed lower by almost three percent. 51 00:02:46,400 --> 00:02:49,240 Speaker 1: Sony shares fell the most since October two thousand and 52 00:02:49,280 --> 00:02:52,239 Speaker 1: eight after news that its rival Microsoft plans to buy 53 00:02:52,240 --> 00:02:56,359 Speaker 1: Activision Blizzard for sixty eight point seven billion dollars. Shares 54 00:02:56,400 --> 00:03:00,360 Speaker 1: of some other Asian game related stokes climbed amid speculation further. 55 00:03:00,400 --> 00:03:03,799 Speaker 1: Industry m and a Chinese developers also rose in Hong 56 00:03:03,880 --> 00:03:07,120 Speaker 1: Kong after the PBOC pledge to use more monetary policy 57 00:03:07,160 --> 00:03:10,520 Speaker 1: tools to aid the economy and ease credit stress, and 58 00:03:10,560 --> 00:03:13,680 Speaker 1: bonds in New Zealand and Australia joined the global route 59 00:03:13,919 --> 00:03:17,160 Speaker 1: in Singapore. Julie at Sally Bloomberg Daybreak. All right, Juliette, 60 00:03:17,160 --> 00:03:19,360 Speaker 1: thank you. It is a different picture in Europe this morning, 61 00:03:19,400 --> 00:03:22,240 Speaker 1: where early losses have flipped agains. Let's go to London 62 00:03:22,280 --> 00:03:24,440 Speaker 1: get the latest live from Bloomberg's You Win, Parts, You 63 00:03:24,560 --> 00:03:27,120 Speaker 1: and what's the latest. Good morning, Nathan and Karen. Stocks 64 00:03:27,120 --> 00:03:29,399 Speaker 1: in Europe pairing a set off this morning with two 65 00:03:29,400 --> 00:03:32,720 Speaker 1: hours into the trading session and retailers helping to propel 66 00:03:32,840 --> 00:03:36,000 Speaker 1: markets higher. There's a luxury theme to the gainers today 67 00:03:36,040 --> 00:03:40,080 Speaker 1: after Richmond and Burbery Group both beats expectations. Montclair and 68 00:03:40,120 --> 00:03:43,720 Speaker 1: Gucci owner Caring gaining today up more than three percent. 69 00:03:44,000 --> 00:03:47,040 Speaker 1: Your stocky hundred currently three tenths of one percent higher. 70 00:03:47,240 --> 00:03:49,840 Speaker 1: Live in London, I'm your part, Splomberg Daybreak, You and 71 00:03:49,920 --> 00:03:52,760 Speaker 1: thank you. Inflation and also a front end center in Europe. 72 00:03:52,800 --> 00:03:55,880 Speaker 1: Prices in the UK unexpectedly searched at the fastest piece 73 00:03:55,880 --> 00:03:58,880 Speaker 1: in thirty years. Consumer prices rose at an annual rate 74 00:03:58,920 --> 00:04:01,880 Speaker 1: of five point four percent in December. That asked pressure 75 00:04:01,920 --> 00:04:04,280 Speaker 1: to the Bank of England to raise interest rates again 76 00:04:04,400 --> 00:04:07,200 Speaker 1: next month. When it comes to the pandemic in the UK, Karen, 77 00:04:07,280 --> 00:04:09,960 Speaker 1: it looks like COVID restrictions could be lifted soon. Prime 78 00:04:09,960 --> 00:04:12,760 Speaker 1: Minister Boris Johnson will reportedly announce the lifting of rules 79 00:04:12,800 --> 00:04:15,520 Speaker 1: in England today. It's according to the Financial Times, which 80 00:04:15,520 --> 00:04:17,800 Speaker 1: says work from home guidance and the use of COVID 81 00:04:17,839 --> 00:04:21,000 Speaker 1: passes are expected to end well. Back here in the US, 82 00:04:21,120 --> 00:04:24,520 Speaker 1: Nathan Bank earnings continue to roll in. Bank of America 83 00:04:24,600 --> 00:04:27,520 Speaker 1: and Morgan Stanley reporting results this morning, and we get 84 00:04:27,520 --> 00:04:31,479 Speaker 1: a preview from Bloomberg the global finance corresponding Shannali Bask. 85 00:04:31,880 --> 00:04:34,120 Speaker 1: Most of the big banks have reported earnings, and what 86 00:04:34,240 --> 00:04:37,279 Speaker 1: it's shown is that trading is falling below expectations and 87 00:04:37,320 --> 00:04:40,880 Speaker 1: the consumer is not jumping back as fast as expected. 88 00:04:41,200 --> 00:04:43,919 Speaker 1: We'll look for both of those figures today when Morgan Stanley, 89 00:04:43,960 --> 00:04:47,000 Speaker 1: the biggest stock trading shop on Wall Street, reports earnings 90 00:04:47,080 --> 00:04:49,839 Speaker 1: at a tough time for equities trading, and Bank of 91 00:04:49,880 --> 00:04:53,919 Speaker 1: America reports earnings with a consumer in mind. Um Shnelly 92 00:04:54,000 --> 00:04:57,559 Speaker 1: Bassk Bloomberg Daybreak, All right, Shanali Banks outside of Wall Street. 93 00:04:57,600 --> 00:05:00,240 Speaker 1: Airlines are in focus this morning. The rollout of five 94 00:05:00,320 --> 00:05:03,400 Speaker 1: G wireless service in the US is disrupting flight schedules 95 00:05:03,440 --> 00:05:06,520 Speaker 1: around the world. Let's get the latest live from Bloomberg. 96 00:05:06,600 --> 00:05:09,640 Speaker 1: Junita Young. Good morning, Granita, Good morning, Nathan. Airlines fear 97 00:05:09,680 --> 00:05:12,880 Speaker 1: if five V services are too close to airports they 98 00:05:12,920 --> 00:05:16,880 Speaker 1: could interfere with key safety systems, so they're adjusting their schedules. 99 00:05:17,120 --> 00:05:19,880 Speaker 1: British Airways has canceled a handful of full of flights 100 00:05:19,880 --> 00:05:23,440 Speaker 1: to the US. Dubais Immorans is suspending routes to several 101 00:05:23,560 --> 00:05:27,880 Speaker 1: US cities, including Chicago, Newark, and San Francisco, and Japanese 102 00:05:27,920 --> 00:05:31,080 Speaker 1: carriers are also dropping routes and will not fly some 103 00:05:31,279 --> 00:05:34,760 Speaker 1: jets to and from the US. Mainland. Airlines are concerned 104 00:05:34,760 --> 00:05:39,280 Speaker 1: about possible interference with navigation equipment that's used during landings 105 00:05:39,360 --> 00:05:42,280 Speaker 1: in poor weather. Live in New York, I'm Reneda Young, 106 00:05:42,279 --> 00:05:45,440 Speaker 1: Bloomberg Daybreak, Nita, thank you. At the White House. This week, 107 00:05:45,600 --> 00:05:48,719 Speaker 1: big tech is in focus that Biden administration is looking 108 00:05:48,720 --> 00:05:51,320 Speaker 1: at how to reign in the nation's biggest tech companies 109 00:05:51,320 --> 00:05:54,800 Speaker 1: through by partisan legislation. Amy Morris has details from our 110 00:05:54,800 --> 00:05:59,160 Speaker 1: Bloomberg newsroom in Washington. Sources tell Bloomberg News the White 111 00:05:59,200 --> 00:06:02,080 Speaker 1: Houses plan in a meeting this week to discuss curbing 112 00:06:02,120 --> 00:06:06,000 Speaker 1: the dominance of Apple, Amazon, Alphabet, and Meta. Critics of 113 00:06:06,040 --> 00:06:09,520 Speaker 1: the tech giants, along with representatives of smaller digital firms, 114 00:06:09,520 --> 00:06:12,280 Speaker 1: will be there as the White House gauges support for 115 00:06:12,320 --> 00:06:16,520 Speaker 1: this antitrust measure sponsored by Senators Amy Klobucher and Chuck Grassley. 116 00:06:16,920 --> 00:06:19,159 Speaker 1: But the big tech companies say that could harm their 117 00:06:19,160 --> 00:06:22,320 Speaker 1: products that are popular with consumers. The bill could go 118 00:06:22,360 --> 00:06:26,159 Speaker 1: before the Senate Judiciary Committee as early as tomorrow in Washington. 119 00:06:26,240 --> 00:06:28,400 Speaker 1: I maybe more as Bloomberg Day Break. All right, Amy, 120 00:06:28,440 --> 00:06:31,279 Speaker 1: thanks on Capitol Hill. Right now, it's all about voting rights. 121 00:06:31,360 --> 00:06:34,560 Speaker 1: Senate Democrats have taken up the legislation, but Republicans are 122 00:06:34,600 --> 00:06:37,880 Speaker 1: expected to block a final vote. It's all about politics 123 00:06:37,880 --> 00:06:42,400 Speaker 1: and that needs to change. According to Democratic Congresswoman Hailey Stevens, 124 00:06:42,440 --> 00:06:46,120 Speaker 1: we need seriousness stats in the halls of Washington. We 125 00:06:46,200 --> 00:06:49,040 Speaker 1: need connectivity to the people we represent, the issues that 126 00:06:49,080 --> 00:06:54,279 Speaker 1: are important to them, and solution making politics. Congresswoman Haley 127 00:06:54,279 --> 00:06:57,680 Speaker 1: Stevens of Michigan spoke with our Washington correspondent Joe Matthew 128 00:06:57,760 --> 00:06:59,880 Speaker 1: on Bloomberg Sound On. You can catch the program we 129 00:07:00,080 --> 00:07:03,320 Speaker 1: days at five pm Eastern on Bloomberg Radio. Ahead of that, 130 00:07:03,680 --> 00:07:06,800 Speaker 1: a rare news conference from President Biden is coming up 131 00:07:06,839 --> 00:07:09,960 Speaker 1: this afternoon. We'll have that for you live later today 132 00:07:10,040 --> 00:07:13,320 Speaker 1: on Bloomberg Radio. Right now, SMP futures are up seven points, 133 00:07:13,560 --> 00:07:16,360 Speaker 1: SECT futures up forty four. Straight ahead, your latest local 134 00:07:16,400 --> 00:07:23,440 Speaker 1: headlines and a check of sports. This is Bloomberg. It's 135 00:07:23,440 --> 00:07:25,520 Speaker 1: now five oh seven on Wall Street where thirty one 136 00:07:25,520 --> 00:07:27,880 Speaker 1: degrees in Central Park. We got fifteen minute delays on 137 00:07:27,920 --> 00:07:30,560 Speaker 1: the Metro North Harlem line because track work will get 138 00:07:30,560 --> 00:07:33,360 Speaker 1: the details in traffic shortly. First Michael Barr with more 139 00:07:33,400 --> 00:07:35,240 Speaker 1: on what's going on in New York and around the world. 140 00:07:35,240 --> 00:07:38,320 Speaker 1: Good morning, Michael, Good morning Nathan. The January sixth House 141 00:07:38,360 --> 00:07:42,920 Speaker 1: Committee has moved its investigation process to Trump supporters who 142 00:07:43,040 --> 00:07:46,800 Speaker 1: tried to undo the election. Bloomberg's Aad Baxter reports it 143 00:07:46,880 --> 00:07:51,160 Speaker 1: has now chapoenaed attorney's Rudy Giuliani, Sidney Powell, and Jenna Ellis. 144 00:07:51,560 --> 00:07:53,760 Speaker 1: They were the main focus of the legal teams trying 145 00:07:53,760 --> 00:07:58,080 Speaker 1: to get the election overturned in Giuliani's case, urging state 146 00:07:58,200 --> 00:08:02,960 Speaker 1: legislators to over turn voting results and spreading misinformation regarding 147 00:08:02,960 --> 00:08:06,800 Speaker 1: the election results themselves, then leading to the January six 148 00:08:06,960 --> 00:08:11,040 Speaker 1: insurrection attempt. Committee chair Benny Thompson says, in the efforts 149 00:08:11,040 --> 00:08:14,200 Speaker 1: to subvert the system, they were in direct contact with 150 00:08:14,320 --> 00:08:18,040 Speaker 1: Donald Trump in San Francisco. I'm at Baxter Bloomberg Daybreak. 151 00:08:18,120 --> 00:08:21,240 Speaker 1: New York's Attorney General last a judge to order Donald 152 00:08:21,280 --> 00:08:24,080 Speaker 1: Trump and two of his adult children to testify under 153 00:08:24,120 --> 00:08:27,040 Speaker 1: oath as part of the state civil probe into the 154 00:08:27,080 --> 00:08:31,560 Speaker 1: family real estate business. A g Letitia James has investigators 155 00:08:31,560 --> 00:08:35,960 Speaker 1: have already uncovered a pattern of potential fraudulent asset valuations. 156 00:08:36,600 --> 00:08:38,840 Speaker 1: A New York City Police officer was wounded in the 157 00:08:38,880 --> 00:08:42,040 Speaker 1: Bronx last night while apprehending a sixteen year old suspect 158 00:08:42,080 --> 00:08:44,920 Speaker 1: with a gun. Police say there was a scuffle over 159 00:08:44,960 --> 00:08:46,880 Speaker 1: the gun it went off in Both the officer and 160 00:08:46,960 --> 00:08:49,960 Speaker 1: the suspect was shot in the leg. Both have nonline 161 00:08:50,000 --> 00:08:53,280 Speaker 1: threatening injuries and were brought to the hospital. Mayor Eric 162 00:08:53,320 --> 00:08:56,080 Speaker 1: Adams at the hospital commented on a surge of gun 163 00:08:56,160 --> 00:08:59,640 Speaker 1: violence in the city. One officers shot is one officer 164 00:08:59,760 --> 00:09:05,120 Speaker 1: too many. One civilious shot is one civilian too many. 165 00:09:05,800 --> 00:09:08,680 Speaker 1: Our city must be safe. That's the promise I'm made, 166 00:09:08,720 --> 00:09:12,000 Speaker 1: and that's the promise I'm going to keep. Meanwhile, Mayor 167 00:09:12,080 --> 00:09:15,000 Speaker 1: Adams admits even he doesn't feel safe on the city 168 00:09:15,120 --> 00:09:19,319 Speaker 1: subway system. Adam's comments come after a woman was pushed 169 00:09:19,320 --> 00:09:21,200 Speaker 1: to her death in front of a New York City 170 00:09:21,200 --> 00:09:24,600 Speaker 1: subway train at Times Square over the weekend. The victim, 171 00:09:24,679 --> 00:09:27,360 Speaker 1: forty year old Michelle Go, did volunteer work for the 172 00:09:27,400 --> 00:09:30,680 Speaker 1: homeless Go add Ties to the San Francisco area. The 173 00:09:30,760 --> 00:09:33,679 Speaker 1: vigil was held for her there last night. The statements 174 00:09:33,679 --> 00:09:36,320 Speaker 1: are read from ghos family. We hope Michelle will be 175 00:09:36,320 --> 00:09:39,040 Speaker 1: remembered for how she lived and not just how she died. 176 00:09:39,920 --> 00:09:42,760 Speaker 1: She was a beautiful, brilliant, kind and intelligent woman who 177 00:09:42,840 --> 00:09:45,920 Speaker 1: loved her family and friends, love to travel the world 178 00:09:45,960 --> 00:09:49,240 Speaker 1: and to help others. The NYPD says the man accused 179 00:09:49,240 --> 00:09:51,800 Speaker 1: of push and Go is homeless. New Jersey is now 180 00:09:51,840 --> 00:09:54,440 Speaker 1: seeing a decline in COVID case rates and te neck 181 00:09:54,840 --> 00:09:58,599 Speaker 1: They're seeing hospitalizations drop. Global News twenty four hours a 182 00:09:58,679 --> 00:10:00,640 Speaker 1: day on the air and on blue Very Quick Take, 183 00:10:00,640 --> 00:10:03,160 Speaker 1: powered by more than twenty seven hundred journalists, analysts more 184 00:10:03,160 --> 00:10:06,080 Speaker 1: than a hundred, twenty countries. Michael Barr, this is Bloomberg, Nathan, 185 00:10:06,120 --> 00:10:12,960 Speaker 1: all right, Michael, thanks almost five ten on Mall Street. 186 00:10:12,960 --> 00:10:14,920 Speaker 1: Time for the Bloomberg sports up take. Good morning, John 187 00:10:14,920 --> 00:10:17,199 Speaker 1: Stan Showering alright, Good morning, Nathan. Good game at the 188 00:10:17,240 --> 00:10:19,920 Speaker 1: guard and the Knicks trail deptimber Wolves by twelve and 189 00:10:20,000 --> 00:10:22,520 Speaker 1: the first half, but a big forty point third quarter 190 00:10:22,600 --> 00:10:25,760 Speaker 1: led by Having Fournier, Knicks went up by nine. Minnesota 191 00:10:25,800 --> 00:10:29,120 Speaker 1: then trailed by one. In the final minute, Town ten 192 00:10:29,440 --> 00:10:31,640 Speaker 1: bounce past Towns, top of the key. A guess, Julius 193 00:10:31,720 --> 00:10:33,880 Speaker 1: Raidel takes the triple left painted town The laid up 194 00:10:33,880 --> 00:10:37,720 Speaker 1: off last counted for two Towns Puts the Wolves up 195 00:10:37,760 --> 00:10:40,480 Speaker 1: one ten, one oh nine. What's twenty nine? Point three 196 00:10:40,559 --> 00:10:44,360 Speaker 1: seconds left? Little Radio Fournier and Alley Firks miss shots 197 00:10:44,400 --> 00:10:47,600 Speaker 1: on the Knicks final possession and Minnesota won one twelve 198 00:10:47,679 --> 00:10:50,559 Speaker 1: to one. Ten so to home losses in two days, 199 00:10:50,679 --> 00:10:54,360 Speaker 1: and it drops the Knicks back under five, scoring twenty 200 00:10:54,400 --> 00:10:57,480 Speaker 1: seven points. Julius Randel had twenty one with nine rebounds, 201 00:10:57,520 --> 00:11:00,840 Speaker 1: nine assists, four block shots. Kemba Walker with earned after 202 00:11:00,920 --> 00:11:02,840 Speaker 1: missing the last nine games with a knee injury. He 203 00:11:02,880 --> 00:11:04,719 Speaker 1: got hot in the fourth quarter finish with nineteen. It 204 00:11:04,840 --> 00:11:06,760 Speaker 1: was not the best of game for r J. Barrett. 205 00:11:06,760 --> 00:11:09,800 Speaker 1: He had seven turnovers. The Islanders won only five of 206 00:11:09,840 --> 00:11:12,360 Speaker 1: their first twenty games. They are hot now. They reached 207 00:11:12,400 --> 00:11:15,000 Speaker 1: five hundred for the fourth three win at Philadelphia to 208 00:11:15,000 --> 00:11:17,160 Speaker 1: sweep the Home at home. That's the Flyers ninth loss 209 00:11:17,160 --> 00:11:19,520 Speaker 1: in a row. This game went to a shootout. There 210 00:11:19,520 --> 00:11:23,920 Speaker 1: were seventeen consecutive misses before Oliver Walstrom in the ninth 211 00:11:24,000 --> 00:11:26,880 Speaker 1: round finally scored the game winner for the Islanders. The 212 00:11:26,960 --> 00:11:29,560 Speaker 1: Rangers back home tonight to play Toronto. Makes Advantage. Had 213 00:11:29,720 --> 00:11:31,560 Speaker 1: won the fan vote to get to play in the 214 00:11:31,559 --> 00:11:33,560 Speaker 1: All Star Game, except he has decided not to play 215 00:11:33,640 --> 00:11:36,679 Speaker 1: personal reasons. College roops Duke lost in overtime at Florida 216 00:11:36,720 --> 00:11:40,000 Speaker 1: State locally Iona one in overtime at Mandeth now fifteen, 217 00:11:40,000 --> 00:11:43,480 Speaker 1: and three losses for Fordham in Manhattan. Raphaela dal on 218 00:11:43,559 --> 00:11:45,640 Speaker 1: his second round match at the Australian Open, so did 219 00:11:45,679 --> 00:11:49,079 Speaker 1: the women's top seed Ash Party John Stash Howard Bloomberg 220 00:11:49,120 --> 00:11:53,320 Speaker 1: Sports Right, John, thank you, SMP futures now up six point. 221 00:11:53,360 --> 00:11:56,600 Speaker 1: Stout futures up three nests at futures leading the games 222 00:11:56,640 --> 00:12:00,760 Speaker 1: now after yesterday's declines, they're up thirty nine points. Patrick 223 00:12:00,880 --> 00:12:04,120 Speaker 1: Armstrong of Plurimi Wealth is with us next. This is 224 00:12:04,160 --> 00:12:09,319 Speaker 1: Bloomberg Bloomberg eleven three oh weather mix of sun and 225 00:12:09,320 --> 00:12:11,559 Speaker 1: clouds today with behind your forty five degrees rain and 226 00:12:11,640 --> 00:12:15,520 Speaker 1: snow showers develop overnight accumulations under an inch. Temperatures will 227 00:12:15,559 --> 00:12:17,600 Speaker 1: fall through the day tomorrow. By Friday will be only 228 00:12:17,640 --> 00:12:24,640 Speaker 1: in the low twenties. Markets headlines and breaking news twenty 229 00:12:24,679 --> 00:12:27,520 Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg 230 00:12:27,520 --> 00:12:30,480 Speaker 1: Business at and at Bloomberg Quick Tape. This is a 231 00:12:30,520 --> 00:12:40,000 Speaker 1: Bloomberg Business Flash and I'm Karen Moscow stocks pairing a 232 00:12:40,040 --> 00:12:43,320 Speaker 1: global sell off as earnings optimism begins to offset concern 233 00:12:43,360 --> 00:12:47,200 Speaker 1: about rising VON yields. US futures reversed earlier losses and 234 00:12:47,240 --> 00:12:49,520 Speaker 1: we checked the markets every fifteen minutes throughout the trading 235 00:12:49,600 --> 00:12:52,320 Speaker 1: day on Bloomberg. Guess and P Futures up about five 236 00:12:52,320 --> 00:12:55,720 Speaker 1: points now, futures of fifteen as deck features at thirty. 237 00:12:55,800 --> 00:12:57,840 Speaker 1: The decks in Germany's up a tenth of a percent. 238 00:12:58,200 --> 00:13:00,640 Speaker 1: Can your treasury down four thirty? Can see at one 239 00:13:00,640 --> 00:13:02,760 Speaker 1: point eight eight percent. They yield on the two year 240 00:13:02,840 --> 00:13:05,760 Speaker 1: one point oh five percent. Nimex Scrude oil is a 241 00:13:05,880 --> 00:13:07,960 Speaker 1: one point two percent of a dollar three at eighty 242 00:13:08,000 --> 00:13:10,840 Speaker 1: six dollars forty six cents of barrel comic schooled up 243 00:13:10,840 --> 00:13:13,920 Speaker 1: a quarter percent or four dollar sixty cents. At eighteen seventeen, 244 00:13:13,920 --> 00:13:16,520 Speaker 1: An ounced the euro one point one three four two 245 00:13:16,559 --> 00:13:18,920 Speaker 1: against the dollar, British pound one point three six one 246 00:13:19,080 --> 00:13:21,880 Speaker 1: five and the ends at one fourteen point five one 247 00:13:21,960 --> 00:13:24,800 Speaker 1: and bitcoin this morning at forty one thousand, four hundred 248 00:13:24,880 --> 00:13:27,920 Speaker 1: fifty dollars. That's down about two percent today. We are 249 00:13:27,920 --> 00:13:30,559 Speaker 1: watching for reports on housing starts and building permits out 250 00:13:30,559 --> 00:13:33,240 Speaker 1: at day thirty Wall Street Time. Morgan Stanley and Bank 251 00:13:33,280 --> 00:13:36,640 Speaker 1: of America among companies schedule to report earnings today. That's 252 00:13:36,640 --> 00:13:39,360 Speaker 1: a Bloomberg business flash. Now here's Michael Barr with Moore 253 00:13:39,440 --> 00:13:41,680 Speaker 1: on most going all around the world. Michael, good morning, 254 00:13:41,880 --> 00:13:45,000 Speaker 1: Good morning, Karen. The House Committee Investigating the US Capital, 255 00:13:45,160 --> 00:13:48,240 Speaker 1: Ryan Espina At, Rudy Giuliani, and other members of Donald 256 00:13:48,280 --> 00:13:51,680 Speaker 1: Trump's legal team who filed legal challenges to the twenty 257 00:13:51,760 --> 00:13:56,959 Speaker 1: twenty election. The list includes Giuliani, Jenna Ellis, and Sydney Powell. 258 00:13:57,400 --> 00:14:00,559 Speaker 1: Secretary of State Anthony Lincoln will meet with this Russian 259 00:14:00,559 --> 00:14:04,000 Speaker 1: counterpart in Switzerland this week as tensions between the US 260 00:14:04,080 --> 00:14:07,880 Speaker 1: and Russia escalate over a possible Russian invasion of Ukraine. 261 00:14:08,280 --> 00:14:12,400 Speaker 1: Lincoln arrived in Kiev today to meet with President Volodimir Zelenski. 262 00:14:12,840 --> 00:14:15,560 Speaker 1: In the NBA, the next lost the Warriors one. In 263 00:14:15,600 --> 00:14:18,320 Speaker 1: the NHL, the Islanders won in a shootout against the 264 00:14:18,320 --> 00:14:21,480 Speaker 1: Flyers for or three the Capitol's one. The Bruins lost. 265 00:14:21,800 --> 00:14:24,280 Speaker 1: Global News twenty four hours a day on air and 266 00:14:24,480 --> 00:14:28,040 Speaker 1: on Bloomberg Quittank, powered by more than twenty seven under 267 00:14:28,120 --> 00:14:31,560 Speaker 1: journalist and analysts more than a hundred twenty countries. Michael Barr, 268 00:14:31,680 --> 00:14:34,920 Speaker 1: this is Bloomberg. Nathan. Hi, Michael. Thanks, It's five nineteen 269 00:14:34,920 --> 00:14:38,000 Speaker 1: on Wall Street Live from the Bloomberg Interactive Broker Studios. 270 00:14:38,040 --> 00:14:41,000 Speaker 1: This is Bloomberg Daybreak. As we continue to watch the 271 00:14:41,080 --> 00:14:44,760 Speaker 1: gyrations in markets this morning, We're joined by Patrick Armstrong, 272 00:14:44,880 --> 00:14:48,840 Speaker 1: chief investment officer at Klaimi Wealth. Patrick, Good morning, seeing 273 00:14:48,880 --> 00:14:51,560 Speaker 1: a little bit of recovery in the futures contracts after 274 00:14:51,680 --> 00:14:54,640 Speaker 1: yesterday sell off. Have we found a support level here? 275 00:14:56,320 --> 00:14:58,600 Speaker 1: I think earnings probably will end up being a support 276 00:14:58,640 --> 00:15:01,160 Speaker 1: for markets as we get in the reporting season. We've 277 00:15:01,160 --> 00:15:04,480 Speaker 1: seen some good results out of some luxury companies, and 278 00:15:04,680 --> 00:15:07,320 Speaker 1: it's I don't think a market where you have to 279 00:15:07,320 --> 00:15:09,800 Speaker 1: be too fearful of the FED. I think that's really 280 00:15:09,800 --> 00:15:11,760 Speaker 1: what's spooking everyone right now that the FED is going 281 00:15:11,840 --> 00:15:14,160 Speaker 1: to be hiking twenty five basis points in March. There's 282 00:15:14,240 --> 00:15:16,880 Speaker 1: small fears of fifty basis points in March, which I 283 00:15:16,920 --> 00:15:20,080 Speaker 1: don't think are going to happen. And historically, at the 284 00:15:20,120 --> 00:15:23,640 Speaker 1: beginning of a hiking cycle, that's not the time to worry. UM. 285 00:15:23,720 --> 00:15:25,640 Speaker 1: FED hikes at the beginning of the cycle because the 286 00:15:25,680 --> 00:15:29,520 Speaker 1: economy is strong, there's economic growth, there's earnings growth, and equities. 287 00:15:30,000 --> 00:15:32,520 Speaker 1: It's at the end of this hiking cycle generally where 288 00:15:32,520 --> 00:15:35,400 Speaker 1: they make the mistakes and they probably hike one or 289 00:15:35,440 --> 00:15:38,160 Speaker 1: two more times when they should historically, And it's still 290 00:15:38,160 --> 00:15:40,320 Speaker 1: a question if they'll do that. But the beginning of 291 00:15:40,320 --> 00:15:44,360 Speaker 1: a hiking cycle is usually a reasonable period for risk assets. 292 00:15:44,400 --> 00:15:48,320 Speaker 1: So what is your expectation of what the market should 293 00:15:48,320 --> 00:15:51,360 Speaker 1: be pricing in from the FED? What's your view on 294 00:15:51,600 --> 00:15:55,840 Speaker 1: where the Fed's gonna go with policy tightening. So they're 295 00:15:55,880 --> 00:15:58,200 Speaker 1: going to hike in March. I think it'll be twenty 296 00:15:58,200 --> 00:16:00,960 Speaker 1: five basis points. I don't think they want to lose 297 00:16:01,000 --> 00:16:03,800 Speaker 1: credibility by going to fifty, because at the narrative they've 298 00:16:03,840 --> 00:16:06,080 Speaker 1: been building is twenty five basis points is coming in 299 00:16:06,160 --> 00:16:08,160 Speaker 1: March now, and I think fifty may be viewed as 300 00:16:08,200 --> 00:16:10,640 Speaker 1: a little bit of a knee jerk reaction, which you 301 00:16:10,760 --> 00:16:13,680 Speaker 1: wouldn't want from a central bank. We've probably got another 302 00:16:13,800 --> 00:16:16,720 Speaker 1: three hikes after that, unless the economy is really strong, 303 00:16:16,960 --> 00:16:19,600 Speaker 1: and then maybe you get another four hikes after March, 304 00:16:19,680 --> 00:16:22,280 Speaker 1: even if the economy continues to be very strong. So 305 00:16:22,360 --> 00:16:24,520 Speaker 1: it's it's going to be data dependent as we get 306 00:16:24,520 --> 00:16:27,960 Speaker 1: through the summer. I think we've probably got three hikes 307 00:16:28,000 --> 00:16:30,400 Speaker 1: in by the time we get to September, for sure, 308 00:16:30,640 --> 00:16:33,960 Speaker 1: and if the economy is stronger than consensus, it might 309 00:16:34,000 --> 00:16:37,480 Speaker 1: even be more. But you don't mind owning risk assets 310 00:16:37,520 --> 00:16:40,240 Speaker 1: when the economy is strong generally, But that kind of 311 00:16:40,320 --> 00:16:44,120 Speaker 1: hiking schedule. What's your view on where treasury yields could 312 00:16:44,120 --> 00:16:47,600 Speaker 1: go from here? They are starting to move up pretty significantly. 313 00:16:48,680 --> 00:16:50,880 Speaker 1: You don't want to own duration um, so you want 314 00:16:50,920 --> 00:16:53,320 Speaker 1: to be underweight duration. You don't want to own treasuries 315 00:16:53,480 --> 00:16:55,760 Speaker 1: you don't want to own duration and your equities, which 316 00:16:55,800 --> 00:16:59,000 Speaker 1: means the highest multiple companies that don't have earnings yet 317 00:16:59,040 --> 00:17:00,960 Speaker 1: and aren't going to have earned for years to come. 318 00:17:01,560 --> 00:17:05,639 Speaker 1: I think that's the one pocket that's probably continuing to 319 00:17:05,720 --> 00:17:08,280 Speaker 1: be at risk. UM. I think treasury yields moved past 320 00:17:08,320 --> 00:17:12,240 Speaker 1: two percent, and as the FED funds futures start to 321 00:17:12,280 --> 00:17:16,120 Speaker 1: price for two percent in three I think you're going 322 00:17:16,160 --> 00:17:19,840 Speaker 1: to have a steeper yield curve than what the markets 323 00:17:19,880 --> 00:17:23,160 Speaker 1: pricing in right now. And inflation at seven percent, that's 324 00:17:23,200 --> 00:17:25,480 Speaker 1: going to come down. But I think we have years 325 00:17:25,520 --> 00:17:28,480 Speaker 1: in front of us where inflation remains above the FED 326 00:17:28,520 --> 00:17:31,040 Speaker 1: target rates. So I think two year ten year yields 327 00:17:31,440 --> 00:17:34,560 Speaker 1: moving above two and the continuing slow grind higher as 328 00:17:34,600 --> 00:17:37,360 Speaker 1: the FED ones down its balance sheet. So with the 329 00:17:37,400 --> 00:17:40,080 Speaker 1: steepening yield curve that you're looking for here, you're not 330 00:17:40,160 --> 00:17:43,840 Speaker 1: looking for the possibility of recession coming out of this recovery, 331 00:17:43,880 --> 00:17:47,440 Speaker 1: are you. I don't think we should be worried about 332 00:17:47,480 --> 00:17:50,879 Speaker 1: recession right now. We're still in above normal growth. I 333 00:17:50,880 --> 00:17:52,760 Speaker 1: think the US economy is probably going to grow about 334 00:17:52,760 --> 00:17:55,720 Speaker 1: four and a half percent this year. UM. The Fed 335 00:17:55,800 --> 00:17:59,880 Speaker 1: inevitably has caused almost all the previous recessions. Um Powell 336 00:18:00,080 --> 00:18:02,080 Speaker 1: talked about this, and I think they're aware of that, 337 00:18:02,240 --> 00:18:05,919 Speaker 1: and they're letting the economy run hot. They did that 338 00:18:05,960 --> 00:18:08,280 Speaker 1: all last year and now we're seeing this what happens 339 00:18:08,280 --> 00:18:11,400 Speaker 1: from that. But I think they won't hike too far 340 00:18:11,560 --> 00:18:14,800 Speaker 1: this time. Those may be famous last words because central 341 00:18:14,800 --> 00:18:18,520 Speaker 1: banks always hiked too much towards the end. But policymakers 342 00:18:18,560 --> 00:18:22,680 Speaker 1: know the consequences of their actions and previous recessions. I 343 00:18:22,680 --> 00:18:25,919 Speaker 1: think they're well equipped to make sure they can manage 344 00:18:25,960 --> 00:18:29,840 Speaker 1: it and maybe smooth out, slowdown rather than provoke a recession. 345 00:18:30,320 --> 00:18:32,240 Speaker 1: So in our last minute here, Patrick, where are you 346 00:18:32,280 --> 00:18:36,439 Speaker 1: looking for opportunity? As we've continue to game out what 347 00:18:36,520 --> 00:18:40,760 Speaker 1: the Fed's gonna do. I think you want to be 348 00:18:40,840 --> 00:18:45,000 Speaker 1: in value inequities. Cyclical value still make sense to me. Um. 349 00:18:45,040 --> 00:18:47,720 Speaker 1: A lot of value companies are trading at six to 350 00:18:47,840 --> 00:18:51,080 Speaker 1: ten times earnings. We haven't bought them yet. I'll wait 351 00:18:51,160 --> 00:18:53,840 Speaker 1: for the Morgan Stanley results, but I think the banks 352 00:18:53,840 --> 00:18:57,240 Speaker 1: are looking really cheap. JP Morgan, Goldman, Sachs really sold 353 00:18:57,240 --> 00:19:00,440 Speaker 1: off on their trading revenues, and that's always a while card. 354 00:19:00,480 --> 00:19:03,280 Speaker 1: I think once we get through reporting season. If those 355 00:19:03,320 --> 00:19:05,320 Speaker 1: banks stay at current levels, I think those will be 356 00:19:05,359 --> 00:19:09,240 Speaker 1: good opportunities um and should be beneficiaries of their steepening 357 00:19:09,320 --> 00:19:12,479 Speaker 1: yielder that I expect. All right, thanks for this, Patrick. 358 00:19:12,560 --> 00:19:16,000 Speaker 1: Of course, we will be getting those final bank results 359 00:19:16,040 --> 00:19:19,560 Speaker 1: from Bank of America and Morgan Stanley just a couple 360 00:19:19,640 --> 00:19:23,720 Speaker 1: hours here. Patrick Armstrong, chief investment officer at Plurimi Wealth 361 00:19:23,840 --> 00:19:27,159 Speaker 1: with us this morning as we continue to track the 362 00:19:27,200 --> 00:19:30,920 Speaker 1: recovery we're seeing in futures contracts after yesterday's sell off. 363 00:19:31,000 --> 00:19:34,720 Speaker 1: Right now, SMP futures are up seven points, STAFF futures 364 00:19:34,760 --> 00:19:38,600 Speaker 1: up thirty six, and NASDAC futures leading the games. Right now, 365 00:19:38,640 --> 00:19:41,800 Speaker 1: they're higher by forty seven points ten. Your treasury now 366 00:19:41,840 --> 00:19:45,080 Speaker 1: down three thirty seconds, the yield at one point eight percent, 367 00:19:45,119 --> 00:19:46,640 Speaker 1: in the yield on the two year right now, one 368 00:19:46,680 --> 00:19:52,520 Speaker 1: point zero five percent Bitcoin right around forty dollars. Just ahead, 369 00:19:52,520 --> 00:19:55,280 Speaker 1: we'll have more on the markets, fed, beets and airlines. 370 00:19:55,320 --> 00:19:58,600 Speaker 1: Grapple with the five G rollout as we check your 371 00:19:58,720 --> 00:20:02,560 Speaker 1: top stories of the morning right here on Bloomberg Daybreak. 372 00:20:02,720 --> 00:20:09,120 Speaker 1: Good morning, Bloomberg, eleven three oh weather, mix of sun 373 00:20:09,119 --> 00:20:11,080 Speaker 1: and clouds and a high here forty five degrees today, 374 00:20:11,160 --> 00:20:15,600 Speaker 1: rainage snow showers overnight. Temperatures will fall through tomorrow. By 375 00:20:15,680 --> 00:20:18,359 Speaker 1: Friday will only be in the low twenties. Currently thirty 376 00:20:18,359 --> 00:20:24,480 Speaker 1: one degrees in Central Park. Broadcasting live from the Bloomberg 377 00:20:24,520 --> 00:20:27,920 Speaker 1: Interactive Broker Studio in New York. Bloomberg E Living for 378 00:20:28,000 --> 00:20:32,480 Speaker 1: you to Washington, d C. Bloomberg to Boston, Bloomberg one 379 00:20:32,480 --> 00:20:35,679 Speaker 1: O six one does San Francisco, Bloomberg nine six to 380 00:20:35,720 --> 00:20:39,320 Speaker 1: the country, Sirius XM Channel one nine and around the globe, 381 00:20:39,400 --> 00:20:43,399 Speaker 1: the Bloomberg Business and Bloomberg Radio dot Com. This is 382 00:20:43,400 --> 00:20:52,040 Speaker 1: Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. 383 00:20:52,080 --> 00:20:55,040 Speaker 1: I'm Nathan Hager and I'm camerin Moscow and we're just 384 00:20:55,119 --> 00:20:57,800 Speaker 1: about four hours away from the open of US trading. 385 00:20:57,880 --> 00:20:59,199 Speaker 1: Let's get you up to date on the news. You 386 00:20:59,240 --> 00:21:00,960 Speaker 1: need to know what this hour, and it's all about 387 00:21:01,000 --> 00:21:04,960 Speaker 1: the markets this morning. Stock future has fell sharply overnight, 388 00:21:05,000 --> 00:21:07,560 Speaker 1: but are now rebounding. We get the very latest live 389 00:21:07,600 --> 00:21:10,359 Speaker 1: with the Bloomberg's John Tucker. John, Good morning, Good morning, 390 00:21:10,440 --> 00:21:13,320 Speaker 1: Karen bench Whore. Treasury yields look poised to surge past 391 00:21:13,320 --> 00:21:16,280 Speaker 1: two percent now. Traders are bidding the Federal Reserve could 392 00:21:16,280 --> 00:21:19,840 Speaker 1: go for a supersized rate hike. In March, higher yields 393 00:21:19,840 --> 00:21:23,040 Speaker 1: were weighing on equities, especially tech stocks, but as that 394 00:21:23,280 --> 00:21:26,920 Speaker 1: down almost ten percent from its November high, that would 395 00:21:26,920 --> 00:21:30,280 Speaker 1: be a correction. Investors wondering if the sell off has 396 00:21:30,320 --> 00:21:33,600 Speaker 1: gone too far. This morning, overnight NASDEK futures fell as 397 00:21:33,640 --> 00:21:36,520 Speaker 1: much as one percent, and now they are up thirty 398 00:21:36,600 --> 00:21:40,160 Speaker 1: nine points. Live in New York. I'm John Tucker Bloomberg Daybreak, 399 00:21:40,359 --> 00:21:42,920 Speaker 1: and John. Investors are also gonna be paying close attention 400 00:21:42,960 --> 00:21:45,800 Speaker 1: today to bank earnings. Morgan Stanley and Bank of America 401 00:21:45,880 --> 00:21:49,359 Speaker 1: report before the opening bell. That's after disappointing trading results 402 00:21:49,400 --> 00:21:53,120 Speaker 1: from Goldman Sax yesterday. Well Nathan looking to disguise now. 403 00:21:53,160 --> 00:21:56,000 Speaker 1: The rollout of five G wireless service in the US 404 00:21:56,160 --> 00:21:59,400 Speaker 1: is disrupting airline flight schedules around the world. We get 405 00:21:59,400 --> 00:22:02,720 Speaker 1: the latest Law five from Bloomberg's Ranita Young. Good morning, Nida, 406 00:22:02,800 --> 00:22:05,960 Speaker 1: Good morning Karen. Airlines fere if five G services are 407 00:22:05,960 --> 00:22:09,920 Speaker 1: too close to airports, they could interfere with key safety systems, 408 00:22:09,960 --> 00:22:13,240 Speaker 1: so they're adjusting their schedules. British Airways has canceled a 409 00:22:13,280 --> 00:22:16,159 Speaker 1: handful of flights to the US. Dubai zimmer It's is 410 00:22:16,240 --> 00:22:19,800 Speaker 1: suspending routes to several US cities, including Chicago, New York, 411 00:22:19,840 --> 00:22:23,679 Speaker 1: and San Francisco, and Japanese carriers are also dropping routes 412 00:22:23,880 --> 00:22:26,359 Speaker 1: and will not fly some jets to and from the 413 00:22:26,480 --> 00:22:29,920 Speaker 1: US mainland. Live in New York. I'm Ranita Young, Bloomberg 414 00:22:29,960 --> 00:22:32,040 Speaker 1: Day Break Now, Nita, thank you. Some news out of 415 00:22:32,040 --> 00:22:35,280 Speaker 1: Washington this morning. The Biden administrations exploring ways to reign 416 00:22:35,320 --> 00:22:39,280 Speaker 1: in the nation's biggest tech companies, possibly through antitrust legislation. 417 00:22:39,480 --> 00:22:41,600 Speaker 1: Bloomberg News has learned the White House will meet this 418 00:22:41,640 --> 00:22:43,760 Speaker 1: week with critics of big tech. A bill in the 419 00:22:43,800 --> 00:22:47,320 Speaker 1: Senate could limit the dominance of companies like Google, Apple, Amazon, 420 00:22:47,480 --> 00:22:51,040 Speaker 1: and Meta and on Capitol Hill, Nathan Senate to Democrats 421 00:22:51,080 --> 00:22:54,639 Speaker 1: are poised a hand Resident Biden another defeat. Lawmakers have 422 00:22:54,680 --> 00:22:58,040 Speaker 1: taken up voting rights legislation that has very long odds. 423 00:22:58,280 --> 00:23:01,800 Speaker 1: Republicans are opposed to a measure and expected are expected 424 00:23:01,840 --> 00:23:04,679 Speaker 1: to block a final vote on it. Futures this morning 425 00:23:04,880 --> 00:23:08,480 Speaker 1: are higher. SNP futures up seven points. Dal Future is 426 00:23:08,560 --> 00:23:11,280 Speaker 1: up thirty four nasdag Future is up thirty seven. The 427 00:23:11,359 --> 00:23:13,639 Speaker 1: decks in Germany's up at tenth of a percent. The 428 00:23:13,680 --> 00:23:16,560 Speaker 1: ten year treasury down three thirty seconds had one point 429 00:23:16,640 --> 00:23:19,040 Speaker 1: eight eight percent. They yield on the two year one 430 00:23:19,080 --> 00:23:22,159 Speaker 1: point oh five percent. Nimax screwed oils up one and 431 00:23:22,200 --> 00:23:24,280 Speaker 1: a half percent of a dollar twenty seven at eighty 432 00:23:24,320 --> 00:23:27,359 Speaker 1: six dollars seventy cents of barrel Bitcoin this morning at 433 00:23:27,400 --> 00:23:30,359 Speaker 1: forty one thousand, five hundred dollars. Straight ahead your latest 434 00:23:30,359 --> 00:23:34,080 Speaker 1: local headlines plus a check of sports. This is Bloomberg, 435 00:23:38,440 --> 00:23:40,360 Speaker 1: Thanks Perien. It's five thirty three on Wall Street. We're 436 00:23:40,440 --> 00:23:42,480 Speaker 1: thirty two degrees in Central Park and still the only 437 00:23:42,520 --> 00:23:44,960 Speaker 1: with fifteen to twenty minute delays on the Harlem Line. 438 00:23:45,000 --> 00:23:48,479 Speaker 1: Metro North. Details and traffic shortly. First Michael Barr with 439 00:23:48,640 --> 00:23:50,439 Speaker 1: what else is going on in New York and around 440 00:23:50,440 --> 00:23:52,520 Speaker 1: the world. Michael, thank you very much. Nathan and New 441 00:23:52,600 --> 00:23:55,200 Speaker 1: York City police officer was injured in the Bronx last 442 00:23:55,280 --> 00:23:58,320 Speaker 1: night while apprehending a sixteen year old suspect with a 443 00:23:58,359 --> 00:24:01,639 Speaker 1: gun after a scuffold and went off. Both the officer 444 00:24:01,720 --> 00:24:03,639 Speaker 1: and the suspect were shot in the leg and we 445 00:24:03,640 --> 00:24:07,000 Speaker 1: will recover. Mayor Eric Adams rushed to the hospital, who 446 00:24:07,000 --> 00:24:10,560 Speaker 1: thank police officers for the arrest. Adams called for reforming 447 00:24:10,640 --> 00:24:16,080 Speaker 1: laws involving gun crimes. Anytime there's a gun involved, we 448 00:24:16,280 --> 00:24:19,760 Speaker 1: have to look at that in a serious fashion, and 449 00:24:19,840 --> 00:24:23,280 Speaker 1: now we're not doing that. Meanwhile, Mayor Adams admits even 450 00:24:23,320 --> 00:24:26,440 Speaker 1: he doesn't feel safe on the city's subway system. Over 451 00:24:26,480 --> 00:24:28,800 Speaker 1: the weekend, a woman was pushed to her death in 452 00:24:28,800 --> 00:24:31,760 Speaker 1: front of a New York City subway train beneath Times Square. 453 00:24:32,000 --> 00:24:35,440 Speaker 1: Even before the killing, Adams administration and announced plans to 454 00:24:35,480 --> 00:24:38,399 Speaker 1: boost the presidents of police officers in the subway. The 455 00:24:38,440 --> 00:24:42,000 Speaker 1: House Committee investigating the US Capitol Ryot sapoena and Rudy 456 00:24:42,040 --> 00:24:45,199 Speaker 1: Giuliani and other members of Donald Trump's legal team who 457 00:24:45,280 --> 00:24:49,880 Speaker 1: filed legal challenges to the election. The panel is demanding 458 00:24:49,920 --> 00:24:54,480 Speaker 1: information and testimony from Giuliani, Jenna Ellis, and Sidney Powell. 459 00:24:54,960 --> 00:24:58,480 Speaker 1: The New York Attorney General's office has hit civil investigation 460 00:24:58,560 --> 00:25:03,480 Speaker 1: has uncovered evidence former President Donald Trump's company use fraudulent 461 00:25:03,640 --> 00:25:07,920 Speaker 1: or misleading asset valuations to get loans and tax benefits. 462 00:25:08,240 --> 00:25:11,760 Speaker 1: Attorney General Letitia James's office made the filing last night. 463 00:25:12,119 --> 00:25:14,879 Speaker 1: Later today, Senate Democrats were trying to vote on changing 464 00:25:14,920 --> 00:25:18,320 Speaker 1: the filibuster rule to pass two voting rights bills. The 465 00:25:18,359 --> 00:25:21,440 Speaker 1: filibuster change will almost certainly fail, but it is not 466 00:25:21,640 --> 00:25:24,800 Speaker 1: stopping Senate Majority Leader Chuck Schumer from forcing to vote 467 00:25:25,119 --> 00:25:28,720 Speaker 1: on something as important as voting rights. If Senate Republicans 468 00:25:28,760 --> 00:25:30,760 Speaker 1: are going to oppose it, they should not be allowed 469 00:25:30,800 --> 00:25:32,640 Speaker 1: to sit in their office. They got to come down 470 00:25:32,720 --> 00:25:36,800 Speaker 1: on the floor and defend their opposition. Republicans insist there 471 00:25:36,960 --> 00:25:40,600 Speaker 1: is nothing to fix. Despite GOP states passing new voting laws, 472 00:25:40,880 --> 00:25:43,520 Speaker 1: New Jersey is now seeing a decline in COVID case 473 00:25:43,680 --> 00:25:47,560 Speaker 1: rates in t Neck. They're saying hospitalizations drop. Global News 474 00:25:47,640 --> 00:25:50,160 Speaker 1: twenty four hours a day on air and on Bloomberg 475 00:25:50,240 --> 00:25:53,240 Speaker 1: Quick Take, powered by more than twenty seven hundred journalists 476 00:25:53,240 --> 00:25:55,800 Speaker 1: and analysts more than a hundred twenty countries. Michael bar 477 00:25:55,960 --> 00:26:04,560 Speaker 1: this is Bloomberg. Nathan alright, Michael, Thanks on Wall Street. 478 00:26:04,600 --> 00:26:07,160 Speaker 1: Here's John stash Are at the Bloomberg Sports Update. Thanks 479 00:26:07,280 --> 00:26:10,520 Speaker 1: Nathan Nixon. Timberwolves at the guard and Alec Burke's took 480 00:26:10,560 --> 00:26:13,360 Speaker 1: a three point shot. The ball was in the air 481 00:26:13,520 --> 00:26:17,080 Speaker 1: as the final buzzer sounded, It missed, and Minnesota in 482 00:26:17,160 --> 00:26:19,119 Speaker 1: a wild game one twelve to one ten. The t 483 00:26:19,280 --> 00:26:21,320 Speaker 1: Wolves were up twelve in the first half. Knicks then 484 00:26:21,400 --> 00:26:24,760 Speaker 1: led by nine. Carl Anthony Town's three point play with 485 00:26:24,880 --> 00:26:27,000 Speaker 1: twenty nine seconds left proved to be the game winner. 486 00:26:27,000 --> 00:26:29,639 Speaker 1: From Minnesota. Evan four Y led the next with twenty 487 00:26:29,680 --> 00:26:32,880 Speaker 1: seven points. Julius Randall had twenty one kemba Walker nineteen 488 00:26:32,920 --> 00:26:35,520 Speaker 1: in his return from a knee injury. But this homestand 489 00:26:35,560 --> 00:26:38,320 Speaker 1: has started with two losses in two days. The Knicks 490 00:26:38,359 --> 00:26:41,600 Speaker 1: are back under five hundred. Islanders and Flyers captain a 491 00:26:41,680 --> 00:26:43,560 Speaker 1: home and home in Philly. The game was tied a one, 492 00:26:43,720 --> 00:26:46,439 Speaker 1: then two, then three at CAZy Kazki's tie and goal 493 00:26:46,520 --> 00:26:48,320 Speaker 1: for the Islands of four and a half minutes left. 494 00:26:48,359 --> 00:26:51,359 Speaker 1: They went to overtime and then the shootout, where neither 495 00:26:51,480 --> 00:26:55,640 Speaker 1: team could score. Seventeen consecutive misses. In the ninth round, 496 00:26:56,119 --> 00:26:59,919 Speaker 1: it was time for the Islanders Oliver Walstrom Walstro Alona 497 00:27:00,000 --> 00:27:06,960 Speaker 1: Carter hut Flows it down only as the winner in 498 00:27:07,080 --> 00:27:10,800 Speaker 1: the bottom of the night set. The Flyers won the 499 00:27:10,880 --> 00:27:16,320 Speaker 1: final store for the three okay heavy EPN I also 500 00:27:16,400 --> 00:27:18,560 Speaker 1: want five or six to reach five hundred. The Flyers 501 00:27:18,640 --> 00:27:21,160 Speaker 1: now last nine in a row. Rangers first home game 502 00:27:21,160 --> 00:27:23,879 Speaker 1: in over two weeks Tonight against Toronto Australian Open, second 503 00:27:23,960 --> 00:27:27,560 Speaker 1: round victories for Raphael In the Dallash Party and Naomi Osaca. 504 00:27:27,640 --> 00:27:29,680 Speaker 1: The Giants have begun a second round of interviews for 505 00:27:29,760 --> 00:27:34,280 Speaker 1: the general manager's job. These being conducted in person. First yesterday, 506 00:27:34,320 --> 00:27:37,680 Speaker 1: Buffalo assistant g M Joe shown John Stash that we're 507 00:27:37,720 --> 00:27:40,680 Speaker 1: Bloomberg Sports name. All right, John, thank you. It's five 508 00:27:40,800 --> 00:27:42,960 Speaker 1: thirty seven on Wall Street. Time for the tri State 509 00:27:43,000 --> 00:27:46,240 Speaker 1: business for fort Here's Bloomberg's head Cory. New York City's 510 00:27:46,280 --> 00:27:49,200 Speaker 1: factoring in an eight point to percent increase in property 511 00:27:49,320 --> 00:27:52,119 Speaker 1: values for next fiscal year thanks to demand for a 512 00:27:52,160 --> 00:27:55,600 Speaker 1: single family homes, co ops and congos. The city said 513 00:27:55,600 --> 00:27:58,000 Speaker 1: a value of about one point four trillion dollars for 514 00:27:58,080 --> 00:28:00,719 Speaker 1: it's more than one million properties for the fiscal year 515 00:28:00,800 --> 00:28:04,280 Speaker 1: beginning in July. A gauge of New York state manufacturing 516 00:28:04,359 --> 00:28:08,240 Speaker 1: slumped in January. Measures of orders and shipments retreated sharply, 517 00:28:08,560 --> 00:28:12,280 Speaker 1: suggesting the omicron variant caused a poolback in activity. The 518 00:28:12,359 --> 00:28:15,680 Speaker 1: Federal Reserve Bank of New York's General Business Conditions Index 519 00:28:15,760 --> 00:28:19,240 Speaker 1: Felder minus point seven from thirty one point nine a 520 00:28:19,359 --> 00:28:23,520 Speaker 1: year earlier. New Jersey businesses can now expect improve perks 521 00:28:23,560 --> 00:28:26,040 Speaker 1: on a tax break. To help ease the pain of 522 00:28:26,080 --> 00:28:29,200 Speaker 1: a camp on individual deductions for state and local taxes. 523 00:28:29,600 --> 00:28:34,320 Speaker 1: A new law allows pass through entities, partnerships, limited liability companies, 524 00:28:34,359 --> 00:28:38,600 Speaker 1: and s corporations additional tax relief that you Bloomberg try 525 00:28:38,640 --> 00:28:41,440 Speaker 1: State Business Report. I'm Ed Corey, all right, thanks, It's 526 00:28:41,440 --> 00:28:43,760 Speaker 1: five thirty eight on Wall Street. Bloomberg Radio is on 527 00:28:43,840 --> 00:28:46,280 Speaker 1: the air from San Francisco to New York, London to 528 00:28:46,440 --> 00:28:48,760 Speaker 1: Hong Kong. Let's check in with our global news team 529 00:28:48,840 --> 00:28:50,560 Speaker 1: for some of the top stories heard on our three 530 00:28:50,640 --> 00:28:56,840 Speaker 1: hundred affiliate radio stations around the world. UM Cornaho on 531 00:28:56,960 --> 00:29:00,760 Speaker 1: KTRH in Houston, the International Energy Agency. He says global 532 00:29:00,800 --> 00:29:04,760 Speaker 1: whale markets look tighter than previously thought. I'm Steve kotas 533 00:29:04,800 --> 00:29:07,800 Speaker 1: Can on w f L A Tampa Bay. We're talking 534 00:29:07,880 --> 00:29:10,840 Speaker 1: about the Oprah backed True Food Kitchen chain of health 535 00:29:10,880 --> 00:29:15,040 Speaker 1: food restaurants opening its first location in Tampa. I'm Gina 536 00:29:15,120 --> 00:29:18,320 Speaker 1: Servetti and for w c CEO in Minneapolis, we're watching 537 00:29:18,360 --> 00:29:22,320 Speaker 1: for earnings from United Health. I'm Klin headed Blueback DAV 538 00:29:22,520 --> 00:29:25,680 Speaker 1: Digital Radio in London. We're reporting on a government on edge. 539 00:29:25,720 --> 00:29:29,240 Speaker 1: Will bois Johnson face and o'confidence vote or can angry 540 00:29:29,440 --> 00:29:33,280 Speaker 1: MPs remained in I'm it Corey on w w J 541 00:29:33,400 --> 00:29:37,080 Speaker 1: in Detroit. I'm reporting ford An A d T prefasting 542 00:29:37,120 --> 00:29:39,760 Speaker 1: in a new joint venture. And those are some of 543 00:29:39,840 --> 00:29:42,680 Speaker 1: the stories are twenty dred Bloomberg journalists and analysts you're 544 00:29:42,720 --> 00:29:45,080 Speaker 1: working on this morning around the world. It's five thirty 545 00:29:45,160 --> 00:29:48,240 Speaker 1: nine on Wall Street. The following is an editorial from 546 00:29:48,360 --> 00:29:52,440 Speaker 1: Bloomberg Opinion. The recent hostage crisis at a Texas synagogue 547 00:29:52,560 --> 00:29:55,720 Speaker 1: is a reminder that anti Semitism is a growing threat. 548 00:29:55,800 --> 00:29:58,680 Speaker 1: The idea that lawmakers would block any efforts to fight 549 00:29:58,760 --> 00:30:03,000 Speaker 1: it is shameful if that's arguably what Senate Republicans are doing. 550 00:30:03,360 --> 00:30:07,320 Speaker 1: In July, Joe Biden nominated the renowned Holocaust scholar Debrah 551 00:30:07,360 --> 00:30:11,800 Speaker 1: Lipstadt to holm the State Department's office for combating anti Semitism. 552 00:30:12,040 --> 00:30:15,880 Speaker 1: Her nomination has remained stalled ever since. Republicans on the 553 00:30:15,920 --> 00:30:19,560 Speaker 1: Foreign Relations Committee appear piqued by a tweet Lipstat wrote 554 00:30:19,600 --> 00:30:23,680 Speaker 1: in March criticizing a senator in their party. But Lipstat 555 00:30:23,840 --> 00:30:26,520 Speaker 1: is no mere partisan, having tried to lawmakers on the 556 00:30:26,640 --> 00:30:29,280 Speaker 1: left as well as the right, and no one doubts 557 00:30:29,320 --> 00:30:32,800 Speaker 1: her qualifications. An author of six books on anti Semitism 558 00:30:32,880 --> 00:30:36,920 Speaker 1: and the Holocaust, she would bring unparalleled expertise and gravitas 559 00:30:37,120 --> 00:30:40,720 Speaker 1: to the position. Republicans have delayed long enough. They should 560 00:30:40,800 --> 00:30:44,320 Speaker 1: let Lipstat's nomination move to a vote. This editorial was 561 00:30:44,360 --> 00:30:47,520 Speaker 1: written by the Bloomberg Opinion Editorial Board. I'm David Shipley. 562 00:30:47,680 --> 00:30:50,120 Speaker 1: For more Bloomberg opinion, please go to Bloomberg dot com, 563 00:30:50,440 --> 00:30:53,600 Speaker 1: slash opinion or OPA and go on the Bloomberg terminal. 564 00:30:53,760 --> 00:30:56,760 Speaker 1: This has been Bloomberg Opinion. You can hear Bloomberg opinion 565 00:30:56,880 --> 00:30:59,760 Speaker 1: editorials every weekday. At this time, terminal customers can read 566 00:30:59,800 --> 00:31:02,680 Speaker 1: more at O, P I, n GO. SMP future is 567 00:31:02,720 --> 00:31:05,000 Speaker 1: now up almost eight points. Staff futures of forty two. 568 00:31:05,080 --> 00:31:07,600 Speaker 1: Nastack futures are highed by thirty seven points. The tenure 569 00:31:07,640 --> 00:31:10,120 Speaker 1: Treasury is down three thirty seconds. The yield one point 570 00:31:10,200 --> 00:31:13,320 Speaker 1: eight eight percent. Big bank stocks moving lower in the 571 00:31:13,400 --> 00:31:16,120 Speaker 1: pre market as Bank of America and Morgan Stanley gets 572 00:31:16,160 --> 00:31:19,240 Speaker 1: set to wrap up Wall Street Bank earnings. This is 573 00:31:19,280 --> 00:31:24,120 Speaker 1: Bloomberg Bloomberg eleven three oh weather mix of sun and 574 00:31:24,120 --> 00:31:26,120 Speaker 1: clouds today with a high your forty five rain and 575 00:31:26,160 --> 00:31:31,160 Speaker 1: snow showers, overnight temperatures falling through tomorrow by Friday highs 576 00:31:31,200 --> 00:31:38,320 Speaker 1: in the low twenties currently thirty two degrees. Markets, headlines 577 00:31:38,400 --> 00:31:41,360 Speaker 1: and breaking news twenty four hours a day at Bloomberg 578 00:31:41,440 --> 00:31:44,800 Speaker 1: dot Com, the Bloomberg Business at and at Bloomberg Quicktape. 579 00:31:45,360 --> 00:31:54,800 Speaker 1: He's a Bloomberg Business lash, but I'm pared. Moscow stocks 580 00:31:54,840 --> 00:31:58,480 Speaker 1: pairing a global sell office. Earnings optimism offsets concerns about 581 00:31:58,560 --> 00:32:02,320 Speaker 1: rising VON yields, US futures are reversing earlier losses, and 582 00:32:02,400 --> 00:32:04,680 Speaker 1: we checked the markets every fifteen minutes throughout the trading 583 00:32:04,760 --> 00:32:07,720 Speaker 1: day on Bloomberg s and P futures now up seven 584 00:32:07,800 --> 00:32:10,920 Speaker 1: points down features of twenty eight NASDAK futures up forty one. 585 00:32:11,280 --> 00:32:13,640 Speaker 1: The decks in Germany's up about two tenths of upper 586 00:32:13,720 --> 00:32:16,440 Speaker 1: cent ten year treasury down two to two thirty seconds, 587 00:32:16,520 --> 00:32:18,800 Speaker 1: the yield one point eight eight percent yield on a 588 00:32:18,880 --> 00:32:22,160 Speaker 1: two year one point oh five percent NIMEX Screwed oil 589 00:32:22,320 --> 00:32:24,239 Speaker 1: is up one point six percent, up a dollar at 590 00:32:24,280 --> 00:32:26,760 Speaker 1: thirty four at eighty six dollars seventy seven cents of 591 00:32:26,800 --> 00:32:29,080 Speaker 1: barrel comic schooled up a third of upper cent or 592 00:32:29,120 --> 00:32:32,400 Speaker 1: six dollars forty cents at eighteen eighteen eighty announced, the 593 00:32:32,520 --> 00:32:34,960 Speaker 1: euro one point one three four seven against the dollar, 594 00:32:35,000 --> 00:32:37,560 Speaker 1: British found one point three six two five, the yen 595 00:32:37,720 --> 00:32:40,440 Speaker 1: is at one fourteen point five zero, and Bitcoin this 596 00:32:40,600 --> 00:32:43,600 Speaker 1: morning moving lower at forty one thousand and three hundred 597 00:32:43,680 --> 00:32:46,520 Speaker 1: fifty dollars. That's a Bloomberg business flash. Now here's Michel 598 00:32:46,600 --> 00:32:48,920 Speaker 1: bar with more on what's going on around the world, 599 00:32:49,040 --> 00:32:52,760 Speaker 1: Uncle Karen, thank you very much. Rudy Giuliani and two 600 00:32:52,800 --> 00:32:56,040 Speaker 1: of the lawyers who helped former President Donald Trump advanced 601 00:32:56,080 --> 00:32:59,520 Speaker 1: baseless claims of fraud in the twenty election have been 602 00:32:59,560 --> 00:33:03,000 Speaker 1: subpoena by the House committee investigating the January six riot 603 00:33:03,040 --> 00:33:06,760 Speaker 1: at the US Capitol. Along with Giuliani, Sydney Powell and 604 00:33:06,880 --> 00:33:09,840 Speaker 1: Jenna Ellis were part of a legal team that spearheaded 605 00:33:09,880 --> 00:33:13,680 Speaker 1: an attempt to overturn the election results. Airlines around the 606 00:33:13,720 --> 00:33:17,400 Speaker 1: world are adjusting their schedules and aircraft deployments for flights 607 00:33:17,640 --> 00:33:20,800 Speaker 1: to the US over fears that a five G rollout 608 00:33:20,880 --> 00:33:24,240 Speaker 1: by a T and T and Verizon near American airports 609 00:33:24,280 --> 00:33:27,720 Speaker 1: could interfere with key safety systems in the NBA. The 610 00:33:27,800 --> 00:33:31,320 Speaker 1: next loss the Warriors won in the NHL the Islanders 611 00:33:31,360 --> 00:33:34,120 Speaker 1: won in a shootout against the Flyers for three, the 612 00:33:34,240 --> 00:33:37,680 Speaker 1: Capitol's one, the Bruins lost. Global News twenty four hours 613 00:33:37,720 --> 00:33:40,680 Speaker 1: a day on air and on Bloomberg Quick Tank, powered 614 00:33:40,720 --> 00:33:43,480 Speaker 1: by more than twenty seven hundred journalists and analysts more 615 00:33:43,520 --> 00:33:47,040 Speaker 1: than a hundred twenty countries. I'm Michael Barr. This is Bloomberg. 616 00:33:47,160 --> 00:33:49,760 Speaker 1: Nathan Okay, Michael, thank you. It's five forty nine on 617 00:33:49,840 --> 00:33:52,680 Speaker 1: Wall Street Live from the Bloomberg Interact and Brokers Studios. 618 00:33:52,760 --> 00:33:55,360 Speaker 1: This is Bloomberg Daybreak. As we get set to wrap 619 00:33:55,480 --> 00:33:58,680 Speaker 1: up bank earning season this morning. Bank of America and 620 00:33:58,800 --> 00:34:01,240 Speaker 1: Morgan Stanley are the final two of the Big Wall 621 00:34:01,280 --> 00:34:03,720 Speaker 1: Street six. So about their fourth quarterbooks. They will do 622 00:34:03,840 --> 00:34:06,520 Speaker 1: that before the opening bell. Ahead of that, we're joined 623 00:34:06,520 --> 00:34:09,200 Speaker 1: by Ken Leon, director of Equity Research at c f R. 624 00:34:09,280 --> 00:34:12,560 Speaker 1: A Ken good morning, taking a look at shares of 625 00:34:12,600 --> 00:34:16,880 Speaker 1: Bank America and Morgan Stanley. They're both lower ahead of 626 00:34:17,239 --> 00:34:20,080 Speaker 1: earnings this morning. Is that sort of a residual effect 627 00:34:20,120 --> 00:34:24,560 Speaker 1: of what we saw from Goldman Sachs yesterday. Well, it's 628 00:34:24,600 --> 00:34:27,200 Speaker 1: also about the market and the it's really the macro 629 00:34:27,480 --> 00:34:30,280 Speaker 1: risk and we've gone from a bowl to a bear case. 630 00:34:30,480 --> 00:34:34,160 Speaker 1: All of a sudden, the banks were down, probably because 631 00:34:34,560 --> 00:34:38,040 Speaker 1: maybe the bears think the best results happened in one 632 00:34:38,680 --> 00:34:42,520 Speaker 1: uh COVID might stay around longer in two, which could 633 00:34:42,600 --> 00:34:46,520 Speaker 1: hurt bank earnings and rates. Rising rates help banks and 634 00:34:47,360 --> 00:34:50,600 Speaker 1: uh JP Morgan Friday said, well, maybe it doesn't help 635 00:34:50,680 --> 00:34:53,719 Speaker 1: us on that interest earnings until later this year. I'll 636 00:34:53,760 --> 00:34:55,719 Speaker 1: stay with the bowl case, which is we still have 637 00:34:55,800 --> 00:35:00,320 Speaker 1: a strong US economy that's gonna spur loan growth. And 638 00:35:00,719 --> 00:35:05,480 Speaker 1: also capital markets aren't going to repeat a record year 639 00:35:05,520 --> 00:35:09,000 Speaker 1: in one, but it's going to remain very active with 640 00:35:09,080 --> 00:35:12,480 Speaker 1: a strong pipeline. And I think finally a rate rise 641 00:35:12,560 --> 00:35:15,040 Speaker 1: from the Fed called three or four times this year 642 00:35:15,120 --> 00:35:18,440 Speaker 1: and maybe into next year, is a strong earnings engine 643 00:35:19,080 --> 00:35:22,960 Speaker 1: fueling that interesting come for the banks. UM. Banks are 644 00:35:23,040 --> 00:35:26,720 Speaker 1: over capitalized, investors are going to get return of capital 645 00:35:26,800 --> 00:35:30,160 Speaker 1: at dividends and buy backs. UM so, But right now, 646 00:35:30,280 --> 00:35:32,520 Speaker 1: you know the bears are there. You know the outlook 647 00:35:32,600 --> 00:35:37,800 Speaker 1: is cloudy, particularly on macro and UM you know policy 648 00:35:37,840 --> 00:35:42,160 Speaker 1: and regulations. The last point here, that's another day less 649 00:35:42,239 --> 00:35:46,840 Speaker 1: with earnings, but with the appointees from President Biden's administration, 650 00:35:47,360 --> 00:35:50,600 Speaker 1: you have more of a consumers uh staff thing. If 651 00:35:50,680 --> 00:35:54,480 Speaker 1: you will of key positions at the f D I C, 652 00:35:55,280 --> 00:35:58,560 Speaker 1: the O c C, and and others. How does that 653 00:35:58,640 --> 00:36:01,319 Speaker 1: bookcase supply to Bank of America when they report later 654 00:36:01,440 --> 00:36:05,680 Speaker 1: this morning, I would expect that consumer loan growth has 655 00:36:05,840 --> 00:36:07,839 Speaker 1: got to be a big part of their story. Will 656 00:36:07,920 --> 00:36:11,840 Speaker 1: the consumer be there for Bank of America? The consumer 657 00:36:11,880 --> 00:36:13,960 Speaker 1: will be there, but it's going to be more looking 658 00:36:14,040 --> 00:36:18,120 Speaker 1: ahead to the first quarter in two. What we'll see 659 00:36:18,160 --> 00:36:21,160 Speaker 1: in the fourth quarter results again is that consumers have 660 00:36:21,360 --> 00:36:28,479 Speaker 1: really healthy balance sheets where they haven't really seen any 661 00:36:28,560 --> 00:36:32,240 Speaker 1: delays and paying off credit balances. So from Bank of America, 662 00:36:32,800 --> 00:36:37,280 Speaker 1: they're large card businesses. The loan volumes of spending. Obviously 663 00:36:37,320 --> 00:36:41,440 Speaker 1: it's the holiday season in there was exceptionally high double 664 00:36:41,520 --> 00:36:45,920 Speaker 1: digit in terms of growth year over year, But consumers 665 00:36:46,000 --> 00:36:48,279 Speaker 1: are paying off their balances and banks make money on 666 00:36:48,440 --> 00:36:53,239 Speaker 1: service charges when you have loan balances. UM, we think 667 00:36:53,239 --> 00:36:57,120 Speaker 1: it'll get back to normalized levels, perhaps by the second 668 00:36:57,200 --> 00:37:01,200 Speaker 1: quarter of two. If you look at this from the FED, 669 00:37:01,719 --> 00:37:04,600 Speaker 1: the personal saving rate during the pandemic got as high 670 00:37:04,640 --> 00:37:08,320 Speaker 1: as eighteen and in November we were back to the 671 00:37:08,440 --> 00:37:13,640 Speaker 1: normalized historic levels of seven percent. What about the cost 672 00:37:13,760 --> 00:37:16,680 Speaker 1: picture for these banks? We just heard this morning that 673 00:37:17,040 --> 00:37:21,400 Speaker 1: JP Morgan Chase is raising pay for junior bankers again 674 00:37:21,640 --> 00:37:24,040 Speaker 1: for a second time. Is that going to be repeated 675 00:37:24,080 --> 00:37:29,239 Speaker 1: across the sector? Well, there are three factors. One, you know, 676 00:37:29,360 --> 00:37:34,960 Speaker 1: particularly for investment bankers, is trying to keep talent. Second 677 00:37:35,280 --> 00:37:40,160 Speaker 1: is there's a labor shortage. So even at the bank branches, 678 00:37:40,239 --> 00:37:44,200 Speaker 1: we saw a Wells Fargo increase the minimum wage from 679 00:37:45,400 --> 00:37:48,680 Speaker 1: increased it from eighteen to twenty two. And the last 680 00:37:48,680 --> 00:37:51,600 Speaker 1: part of expects, which is up is that the banks 681 00:37:51,680 --> 00:37:55,840 Speaker 1: have to invest in technology to be competitive today, but 682 00:37:55,960 --> 00:37:59,200 Speaker 1: really for tomorrow, you know, with all the disruptors from 683 00:37:59,360 --> 00:38:03,560 Speaker 1: fintech companies. So um, yeah, we're gonna live with higher expense. 684 00:38:03,680 --> 00:38:07,960 Speaker 1: But again, um, we think right now the market's gloomy 685 00:38:08,040 --> 00:38:10,600 Speaker 1: on the revenue picture for banks, and we think it's 686 00:38:10,600 --> 00:38:13,120 Speaker 1: gonna be another good year. You know, the last thirty 687 00:38:13,200 --> 00:38:15,800 Speaker 1: seconds here, what about for Morgan Stanley, Will the boom 688 00:38:15,840 --> 00:38:18,319 Speaker 1: in deal making in one make a difference for them? 689 00:38:18,360 --> 00:38:24,200 Speaker 1: Only about thirty seconds left. So Morgan Stanley, like Golden Sax, 690 00:38:24,280 --> 00:38:26,799 Speaker 1: gonna you know, ranked number one or two in most 691 00:38:26,840 --> 00:38:29,200 Speaker 1: of the areas of the kapital markets. It's gonna have 692 00:38:29,400 --> 00:38:33,440 Speaker 1: another really strong year for underwriting and I P O 693 00:38:33,600 --> 00:38:37,080 Speaker 1: S and but gold I'm sorry. Morgan Stanley has the 694 00:38:37,200 --> 00:38:39,799 Speaker 1: largest wealth business, which gives them a little bit more 695 00:38:39,880 --> 00:38:43,840 Speaker 1: of a predictable recurring revenue. So I think we're going 696 00:38:43,880 --> 00:38:47,600 Speaker 1: to finish up with Morgan Stanley a little more sanguine 697 00:38:47,680 --> 00:38:51,000 Speaker 1: than the Bears view that we saw yesterday. All Right, Ken, 698 00:38:51,160 --> 00:38:53,480 Speaker 1: thanks for this. Ken Ley on his director of equity 699 00:38:53,560 --> 00:38:56,440 Speaker 1: research at CFR. A we hear from Bank of America 700 00:38:56,560 --> 00:38:59,600 Speaker 1: right around sixty five Wall Street Time. Then Morgan Stanley 701 00:38:59,640 --> 00:39:01,960 Speaker 1: reports at seven thirty. Will have complete coverage here on 702 00:39:02,000 --> 00:39:05,879 Speaker 1: Bloomberg Radio. Karen Nathan is four on Wall Street Time 703 00:39:05,920 --> 00:39:08,080 Speaker 1: for the Bloomberg Law Report. Let's get to the legal 704 00:39:08,200 --> 00:39:14,440 Speaker 1: stories we're watching this morning. From Bloomberg's Jeff Bellinger. The 705 00:39:14,560 --> 00:39:17,520 Speaker 1: National Labor Relations Board will reconsider a Trump you re 706 00:39:17,600 --> 00:39:22,200 Speaker 1: precedent allowing workplace arbitration agreements to include clauses requiring workers 707 00:39:22,280 --> 00:39:25,400 Speaker 1: to keep the proceedings confidential. Federal court records in New 708 00:39:25,480 --> 00:39:28,680 Speaker 1: York indicate canterfits Gerald and a former vice president who 709 00:39:28,719 --> 00:39:31,960 Speaker 1: said she was fired for rejecting her boss's sexual advances, 710 00:39:32,080 --> 00:39:35,640 Speaker 1: agreed to end her job discrimination lawsuit. The Southern District 711 00:39:35,719 --> 00:39:38,240 Speaker 1: of New York rule, the Key Bank must face trial 712 00:39:38,360 --> 00:39:41,200 Speaker 1: on claims by two former employees who claimed they were 713 00:39:41,280 --> 00:39:45,839 Speaker 1: fired in retaliation for opposing a sexually hostile environment. Bloomberg 714 00:39:45,960 --> 00:39:50,080 Speaker 1: Law everything you need, all on one legal research platform, 715 00:39:50,239 --> 00:39:54,839 Speaker 1: including guidance analysis and Bloomberg market Intelligence. Find out more 716 00:39:54,920 --> 00:39:58,839 Speaker 1: at Bloomberg Law dot com. Jeff, thank you now. Another 717 00:39:58,920 --> 00:40:01,759 Speaker 1: legal story where Wa Shing brings us to religious rights 718 00:40:01,840 --> 00:40:04,440 Speaker 1: At the Supreme Court, justices have agreed to hear a 719 00:40:04,560 --> 00:40:06,920 Speaker 1: case from a football coach who lost his job at 720 00:40:06,960 --> 00:40:10,520 Speaker 1: a public high school after repeatedly praying with his players 721 00:40:10,600 --> 00:40:13,280 Speaker 1: on the fifty yard line after games. It's the second 722 00:40:13,360 --> 00:40:15,600 Speaker 1: time the cases come to the Supreme Court, giving the 723 00:40:15,680 --> 00:40:19,920 Speaker 1: courts conservative majority a new chance to bolster individual religious 724 00:40:20,040 --> 00:40:22,840 Speaker 1: rights and relax the separation of church and state. For 725 00:40:22,960 --> 00:40:25,800 Speaker 1: We're in the case, Bloomberg's June Grasso speaks to Caroline 726 00:40:25,840 --> 00:40:29,400 Speaker 1: Mala Corbin, a professor at the University of Miami School 727 00:40:29,400 --> 00:40:32,279 Speaker 1: of Law. So tell us what the Ninth Circuits said 728 00:40:32,360 --> 00:40:36,919 Speaker 1: and turning down his appeal. So he argued that being 729 00:40:37,000 --> 00:40:40,480 Speaker 1: denied the opportunity pray in front of the students, in 730 00:40:40,600 --> 00:40:43,440 Speaker 1: front of the crowds violated both his speech rights and 731 00:40:43,600 --> 00:40:47,320 Speaker 1: religious rights, and the Ninth Circuit rejected that based on 732 00:40:47,480 --> 00:40:52,160 Speaker 1: the Establishment Clause. The Establishment Clause required some separation between 733 00:40:52,400 --> 00:40:56,760 Speaker 1: church and state. And one arena where it's still pretty 734 00:40:56,920 --> 00:41:00,640 Speaker 1: vital is in the public schools, to make sure that 735 00:41:00,840 --> 00:41:03,880 Speaker 1: the state, the school, or people who work for the 736 00:41:03,960 --> 00:41:11,520 Speaker 1: school don't force students into uncomfortable religious exercises. And the 737 00:41:11,600 --> 00:41:14,360 Speaker 1: school said, and the court agreed, if we allowed you 738 00:41:14,480 --> 00:41:17,600 Speaker 1: to continue these prayers, you would be basically violating the 739 00:41:17,719 --> 00:41:22,239 Speaker 1: Establishment Clause. And so that is a compelling reason for 740 00:41:22,360 --> 00:41:27,200 Speaker 1: the government to limit your own free exercise. This means 741 00:41:27,280 --> 00:41:31,240 Speaker 1: that four justices want to hear this case, perhaps more. 742 00:41:32,120 --> 00:41:34,520 Speaker 1: Does it seem like they would only be taking this 743 00:41:34,719 --> 00:41:38,520 Speaker 1: case in order to reverse the Ninth Circuit. I fear 744 00:41:38,680 --> 00:41:42,399 Speaker 1: that might be the case. This Supreme Court has been 745 00:41:42,600 --> 00:41:49,319 Speaker 1: steadily eroding, if not eviscerrating, Establishment Clause protections. The one 746 00:41:49,480 --> 00:41:53,840 Speaker 1: area where they still survived was in the school context. 747 00:41:54,200 --> 00:41:57,840 Speaker 1: Under existing law, this should have been a very easy 748 00:41:57,920 --> 00:42:02,480 Speaker 1: case and he should lose, which he did in the 749 00:42:02,600 --> 00:42:05,879 Speaker 1: Ninth Circuit Court of Appeals. And I fear they took 750 00:42:06,000 --> 00:42:10,680 Speaker 1: this case as a vehicle for eliminating those strong Establishment 751 00:42:10,719 --> 00:42:14,880 Speaker 1: Clause protections in public schools, as well as University of 752 00:42:14,920 --> 00:42:18,759 Speaker 1: Miami law Professor Caroline Mala Corbin speaking at the Bloomberg 753 00:42:18,800 --> 00:42:22,200 Speaker 1: Student Grosso. Catch more of that interview, plus analysis of 754 00:42:22,280 --> 00:42:24,759 Speaker 1: the latest legal news by listening to the Bloomberg Law 755 00:42:24,840 --> 00:42:27,640 Speaker 1: Show at ten pm Eastern Time or subscribing to the 756 00:42:27,680 --> 00:42:31,520 Speaker 1: Bloomberg Law Podcast, and attorneys can find exceptional legal research 757 00:42:31,560 --> 00:42:35,400 Speaker 1: and business development tools at Bloomberg Law dot com. Future 758 00:42:35,480 --> 00:42:38,239 Speaker 1: is moving higher this morning, S and P futures up 759 00:42:38,400 --> 00:42:41,839 Speaker 1: seven points and still ahead on Bloomberg Daybreak at check 760 00:42:41,880 --> 00:42:44,040 Speaker 1: on the business headlines and all the news you need 761 00:42:44,160 --> 00:42:46,759 Speaker 1: to start your day. And this is Bloomberg