WEBVTT - Bloomberg Daybreak: January 19, 2022 - Hour 1 (Radio) 0:00:03.680 --> 0:00:07.240 My from the Bloomberg Interactive Brooker Studios is Bloomberg day 0:00:07.240 --> 0:00:11.119 Break for Wednesday, January nineteen two. Coming up this hour, 0:00:11.680 --> 0:00:14.160 Stocks Paris sell off in the wake of a surgeon, 0:00:14.280 --> 0:00:17.800 Treasury Yields, Bank of America, and Morgan Stanley prepared to 0:00:17.880 --> 0:00:22.200 report earnings. The five G rollout disrupts flights around the world, 0:00:22.560 --> 0:00:24.440 and the White House looks to reign in the nation's 0:00:24.480 --> 0:00:28.200 biggest tech companies. Rudy Giuliani is among other Trump lawyers 0:00:28.200 --> 0:00:31.240 subpoena and in the Capitol Riot broad plus COVID cases 0:00:31.280 --> 0:00:34.280 are falling in New Jersey. I'm Michael varn More Ahead, 0:00:34.840 --> 0:00:36.880 I'm John stash Our in sports, Second day of the 0:00:37.000 --> 0:00:39.680 Row and Nick's old Last Minnesota one by two the 0:00:39.680 --> 0:00:45.440 Islanders one in a shootout. That's all straight ahead on 0:00:45.640 --> 0:00:49.120 Bloomberg day Break on Bloomberg eleven three on New York, 0:00:49.240 --> 0:00:54.000 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.160 --> 0:00:58.680 Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:59.000 --> 0:01:01.920 and around the world. Don Bloomberg Radio dot Com and 0:01:02.120 --> 0:01:08.759 via the Bloomberg Business Stor. Good morning, I'm Nathan Hagar 0:01:09.160 --> 0:01:12.720 and I'm Karen Moscow and US futures are higher, rebounding 0:01:12.760 --> 0:01:15.240 from a sharp sell off over night. We're coming up 0:01:15.240 --> 0:01:16.840 to five oh one on Wall Street, and we checked 0:01:16.840 --> 0:01:19.919 the markets every fifteen minutes throughout the trading day. On Bloomberg, 0:01:20.280 --> 0:01:22.640 SNP Future is up seven points at owth Future is 0:01:22.720 --> 0:01:25.919 up twenty nine. Nasday futures up fifty two. The decks 0:01:25.920 --> 0:01:28.760 in Germany's up about two tenths of uppercent ten year 0:01:28.800 --> 0:01:31.600 Treasury down three thirties seconds, yield one point eight eight percent. 0:01:31.680 --> 0:01:34.399 That yield on the two year one point oh five percent. 0:01:34.880 --> 0:01:37.160 Nine X Screwed oil is at one point three percent, 0:01:37.240 --> 0:01:39.440 up a dollar twelve at eighty six dollars fifty five 0:01:39.520 --> 0:01:43.000 cents of barrel, and bitcoin this morning at forty one thousand, 0:01:43.120 --> 0:01:45.679 six hundred dollars. Nathan, Well, Karen, it is all about 0:01:45.720 --> 0:01:48.360 the markets this morning. As you said, stock futures did 0:01:48.360 --> 0:01:51.120 fall sharply overnight, but they are rebounding. Let's get the 0:01:51.160 --> 0:01:53.840 very latest live with Bloomberg's John Tucker. Good morning, John, 0:01:53.880 --> 0:01:56.280 and good morning Nathan Nassey. Futures fella as much as 0:01:56.320 --> 0:01:58.640 one percent will rend right now. There are up three 0:01:58.680 --> 0:02:02.320 tenths of a percent for investors fed rate hikes baked 0:02:02.360 --> 0:02:04.919 into the cakes starting in March, and now there speculation 0:02:04.960 --> 0:02:08.320 the Central Bank will deliver more than a quarter percentage 0:02:08.320 --> 0:02:11.160 point hike at that meeting. A more hawk is fed 0:02:11.240 --> 0:02:14.480 wing on stocks, especially tach shares lately. But as ZAC 0:02:14.520 --> 0:02:18.160 one hundred sank two point six percent yesterday from its 0:02:18.200 --> 0:02:21.520 November peak, the tech heavy nastack has fallen nine point 0:02:21.639 --> 0:02:24.960 six percent. That is just shy of the correction. Live 0:02:25.000 --> 0:02:27.920 to New York on John Tucker Bloomberg Daybreak. All right, John, 0:02:27.919 --> 0:02:29.760 thank you what we saw the US sell off spread 0:02:29.800 --> 0:02:31.760 to Asia over a night, and we get the recap 0:02:31.800 --> 0:02:36.120 from Bloomberg's Juliette Sally and Singapore. Good morning, Juliette, Good morning, Karen. 0:02:36.160 --> 0:02:39.200 The MSCI Asia Pacific Index fell for a fifth session, 0:02:39.240 --> 0:02:42.640 as longest losing streaks since March. Japanese equities led the 0:02:42.680 --> 0:02:45.919 decline as the topics closed lower by almost three percent. 0:02:46.400 --> 0:02:49.240 Sony shares fell the most since October two thousand and 0:02:49.280 --> 0:02:52.239 eight after news that its rival Microsoft plans to buy 0:02:52.240 --> 0:02:56.359 Activision Blizzard for sixty eight point seven billion dollars. Shares 0:02:56.400 --> 0:03:00.360 of some other Asian game related stokes climbed amid speculation further. 0:03:00.400 --> 0:03:03.799 Industry m and a Chinese developers also rose in Hong 0:03:03.880 --> 0:03:07.120 Kong after the PBOC pledge to use more monetary policy 0:03:07.160 --> 0:03:10.520 tools to aid the economy and ease credit stress, and 0:03:10.560 --> 0:03:13.680 bonds in New Zealand and Australia joined the global route 0:03:13.919 --> 0:03:17.160 in Singapore. Julie at Sally Bloomberg Daybreak. All right, Juliette, 0:03:17.160 --> 0:03:19.360 thank you. It is a different picture in Europe this morning, 0:03:19.400 --> 0:03:22.240 where early losses have flipped agains. Let's go to London 0:03:22.280 --> 0:03:24.440 get the latest live from Bloomberg's You Win, Parts, You 0:03:24.560 --> 0:03:27.120 and what's the latest. Good morning, Nathan and Karen. Stocks 0:03:27.120 --> 0:03:29.399 in Europe pairing a set off this morning with two 0:03:29.400 --> 0:03:32.720 hours into the trading session and retailers helping to propel 0:03:32.840 --> 0:03:36.000 markets higher. There's a luxury theme to the gainers today 0:03:36.040 --> 0:03:40.080 after Richmond and Burbery Group both beats expectations. Montclair and 0:03:40.120 --> 0:03:43.720 Gucci owner Caring gaining today up more than three percent. 0:03:44.000 --> 0:03:47.040 Your stocky hundred currently three tenths of one percent higher. 0:03:47.240 --> 0:03:49.840 Live in London, I'm your part, Splomberg Daybreak, You and 0:03:49.920 --> 0:03:52.760 thank you. Inflation and also a front end center in Europe. 0:03:52.800 --> 0:03:55.880 Prices in the UK unexpectedly searched at the fastest piece 0:03:55.880 --> 0:03:58.880 in thirty years. Consumer prices rose at an annual rate 0:03:58.920 --> 0:04:01.880 of five point four percent in December. That asked pressure 0:04:01.920 --> 0:04:04.280 to the Bank of England to raise interest rates again 0:04:04.400 --> 0:04:07.200 next month. When it comes to the pandemic in the UK, Karen, 0:04:07.280 --> 0:04:09.960 it looks like COVID restrictions could be lifted soon. Prime 0:04:09.960 --> 0:04:12.760 Minister Boris Johnson will reportedly announce the lifting of rules 0:04:12.800 --> 0:04:15.520 in England today. It's according to the Financial Times, which 0:04:15.520 --> 0:04:17.800 says work from home guidance and the use of COVID 0:04:17.839 --> 0:04:21.000 passes are expected to end well. Back here in the US, 0:04:21.120 --> 0:04:24.520 Nathan Bank earnings continue to roll in. Bank of America 0:04:24.600 --> 0:04:27.520 and Morgan Stanley reporting results this morning, and we get 0:04:27.520 --> 0:04:31.479 a preview from Bloomberg the global finance corresponding Shannali Bask. 0:04:31.880 --> 0:04:34.120 Most of the big banks have reported earnings, and what 0:04:34.240 --> 0:04:37.279 it's shown is that trading is falling below expectations and 0:04:37.320 --> 0:04:40.880 the consumer is not jumping back as fast as expected. 0:04:41.200 --> 0:04:43.919 We'll look for both of those figures today when Morgan Stanley, 0:04:43.960 --> 0:04:47.000 the biggest stock trading shop on Wall Street, reports earnings 0:04:47.080 --> 0:04:49.839 at a tough time for equities trading, and Bank of 0:04:49.880 --> 0:04:53.919 America reports earnings with a consumer in mind. Um Shnelly 0:04:54.000 --> 0:04:57.559 Bassk Bloomberg Daybreak, All right, Shanali Banks outside of Wall Street. 0:04:57.600 --> 0:05:00.240 Airlines are in focus this morning. The rollout of five 0:05:00.320 --> 0:05:03.400 G wireless service in the US is disrupting flight schedules 0:05:03.440 --> 0:05:06.520 around the world. Let's get the latest live from Bloomberg. 0:05:06.600 --> 0:05:09.640 Junita Young. Good morning, Granita, Good morning, Nathan. Airlines fear 0:05:09.680 --> 0:05:12.880 if five V services are too close to airports they 0:05:12.920 --> 0:05:16.880 could interfere with key safety systems, so they're adjusting their schedules. 0:05:17.120 --> 0:05:19.880 British Airways has canceled a handful of full of flights 0:05:19.880 --> 0:05:23.440 to the US. Dubais Immorans is suspending routes to several 0:05:23.560 --> 0:05:27.880 US cities, including Chicago, Newark, and San Francisco, and Japanese 0:05:27.920 --> 0:05:31.080 carriers are also dropping routes and will not fly some 0:05:31.279 --> 0:05:34.760 jets to and from the US. Mainland. Airlines are concerned 0:05:34.760 --> 0:05:39.280 about possible interference with navigation equipment that's used during landings 0:05:39.360 --> 0:05:42.280 in poor weather. Live in New York, I'm Reneda Young, 0:05:42.279 --> 0:05:45.440 Bloomberg Daybreak, Nita, thank you. At the White House. This week, 0:05:45.600 --> 0:05:48.719 big tech is in focus that Biden administration is looking 0:05:48.720 --> 0:05:51.320 at how to reign in the nation's biggest tech companies 0:05:51.320 --> 0:05:54.800 through by partisan legislation. Amy Morris has details from our 0:05:54.800 --> 0:05:59.160 Bloomberg newsroom in Washington. Sources tell Bloomberg News the White 0:05:59.200 --> 0:06:02.080 Houses plan in a meeting this week to discuss curbing 0:06:02.120 --> 0:06:06.000 the dominance of Apple, Amazon, Alphabet, and Meta. Critics of 0:06:06.040 --> 0:06:09.520 the tech giants, along with representatives of smaller digital firms, 0:06:09.520 --> 0:06:12.280 will be there as the White House gauges support for 0:06:12.320 --> 0:06:16.520 this antitrust measure sponsored by Senators Amy Klobucher and Chuck Grassley. 0:06:16.920 --> 0:06:19.159 But the big tech companies say that could harm their 0:06:19.160 --> 0:06:22.320 products that are popular with consumers. The bill could go 0:06:22.360 --> 0:06:26.159 before the Senate Judiciary Committee as early as tomorrow in Washington. 0:06:26.240 --> 0:06:28.400 I maybe more as Bloomberg Day Break. All right, Amy, 0:06:28.440 --> 0:06:31.279 thanks on Capitol Hill. Right now, it's all about voting rights. 0:06:31.360 --> 0:06:34.560 Senate Democrats have taken up the legislation, but Republicans are 0:06:34.600 --> 0:06:37.880 expected to block a final vote. It's all about politics 0:06:37.880 --> 0:06:42.400 and that needs to change. According to Democratic Congresswoman Hailey Stevens, 0:06:42.440 --> 0:06:46.120 we need seriousness stats in the halls of Washington. We 0:06:46.200 --> 0:06:49.040 need connectivity to the people we represent, the issues that 0:06:49.080 --> 0:06:54.279 are important to them, and solution making politics. Congresswoman Haley 0:06:54.279 --> 0:06:57.680 Stevens of Michigan spoke with our Washington correspondent Joe Matthew 0:06:57.760 --> 0:06:59.880 on Bloomberg Sound On. You can catch the program we 0:07:00.080 --> 0:07:03.320 days at five pm Eastern on Bloomberg Radio. Ahead of that, 0:07:03.680 --> 0:07:06.800 a rare news conference from President Biden is coming up 0:07:06.839 --> 0:07:09.960 this afternoon. We'll have that for you live later today 0:07:10.040 --> 0:07:13.320 on Bloomberg Radio. Right now, SMP futures are up seven points, 0:07:13.560 --> 0:07:16.360 SECT futures up forty four. Straight ahead, your latest local 0:07:16.400 --> 0:07:23.440 headlines and a check of sports. This is Bloomberg. It's 0:07:23.440 --> 0:07:25.520 now five oh seven on Wall Street where thirty one 0:07:25.520 --> 0:07:27.880 degrees in Central Park. We got fifteen minute delays on 0:07:27.920 --> 0:07:30.560 the Metro North Harlem line because track work will get 0:07:30.560 --> 0:07:33.360 the details in traffic shortly. First Michael Barr with more 0:07:33.400 --> 0:07:35.240 on what's going on in New York and around the world. 0:07:35.240 --> 0:07:38.320 Good morning, Michael, Good morning Nathan. The January sixth House 0:07:38.360 --> 0:07:42.920 Committee has moved its investigation process to Trump supporters who 0:07:43.040 --> 0:07:46.800 tried to undo the election. Bloomberg's Aad Baxter reports it 0:07:46.880 --> 0:07:51.160 has now chapoenaed attorney's Rudy Giuliani, Sidney Powell, and Jenna Ellis. 0:07:51.560 --> 0:07:53.760 They were the main focus of the legal teams trying 0:07:53.760 --> 0:07:58.080 to get the election overturned in Giuliani's case, urging state 0:07:58.200 --> 0:08:02.960 legislators to over turn voting results and spreading misinformation regarding 0:08:02.960 --> 0:08:06.800 the election results themselves, then leading to the January six 0:08:06.960 --> 0:08:11.040 insurrection attempt. Committee chair Benny Thompson says, in the efforts 0:08:11.040 --> 0:08:14.200 to subvert the system, they were in direct contact with 0:08:14.320 --> 0:08:18.040 Donald Trump in San Francisco. I'm at Baxter Bloomberg Daybreak. 0:08:18.120 --> 0:08:21.240 New York's Attorney General last a judge to order Donald 0:08:21.280 --> 0:08:24.080 Trump and two of his adult children to testify under 0:08:24.120 --> 0:08:27.040 oath as part of the state civil probe into the 0:08:27.080 --> 0:08:31.560 family real estate business. A g Letitia James has investigators 0:08:31.560 --> 0:08:35.960 have already uncovered a pattern of potential fraudulent asset valuations. 0:08:36.600 --> 0:08:38.840 A New York City Police officer was wounded in the 0:08:38.880 --> 0:08:42.040 Bronx last night while apprehending a sixteen year old suspect 0:08:42.080 --> 0:08:44.920 with a gun. Police say there was a scuffle over 0:08:44.960 --> 0:08:46.880 the gun it went off in Both the officer and 0:08:46.960 --> 0:08:49.960 the suspect was shot in the leg. Both have nonline 0:08:50.000 --> 0:08:53.280 threatening injuries and were brought to the hospital. Mayor Eric 0:08:53.320 --> 0:08:56.080 Adams at the hospital commented on a surge of gun 0:08:56.160 --> 0:08:59.640 violence in the city. One officers shot is one officer 0:08:59.760 --> 0:09:05.120 too many. One civilious shot is one civilian too many. 0:09:05.800 --> 0:09:08.680 Our city must be safe. That's the promise I'm made, 0:09:08.720 --> 0:09:12.000 and that's the promise I'm going to keep. Meanwhile, Mayor 0:09:12.080 --> 0:09:15.000 Adams admits even he doesn't feel safe on the city 0:09:15.120 --> 0:09:19.319 subway system. Adam's comments come after a woman was pushed 0:09:19.320 --> 0:09:21.200 to her death in front of a New York City 0:09:21.200 --> 0:09:24.600 subway train at Times Square over the weekend. The victim, 0:09:24.679 --> 0:09:27.360 forty year old Michelle Go, did volunteer work for the 0:09:27.400 --> 0:09:30.680 homeless Go add Ties to the San Francisco area. The 0:09:30.760 --> 0:09:33.679 vigil was held for her there last night. The statements 0:09:33.679 --> 0:09:36.320 are read from ghos family. We hope Michelle will be 0:09:36.320 --> 0:09:39.040 remembered for how she lived and not just how she died. 0:09:39.920 --> 0:09:42.760 She was a beautiful, brilliant, kind and intelligent woman who 0:09:42.840 --> 0:09:45.920 loved her family and friends, love to travel the world 0:09:45.960 --> 0:09:49.240 and to help others. The NYPD says the man accused 0:09:49.240 --> 0:09:51.800 of push and Go is homeless. New Jersey is now 0:09:51.840 --> 0:09:54.440 seeing a decline in COVID case rates and te neck 0:09:54.840 --> 0:09:58.599 They're seeing hospitalizations drop. Global News twenty four hours a 0:09:58.679 --> 0:10:00.640 day on the air and on blue Very Quick Take, 0:10:00.640 --> 0:10:03.160 powered by more than twenty seven hundred journalists, analysts more 0:10:03.160 --> 0:10:06.080 than a hundred, twenty countries. Michael Barr, this is Bloomberg, Nathan, 0:10:06.120 --> 0:10:12.960 all right, Michael, thanks almost five ten on Mall Street. 0:10:12.960 --> 0:10:14.920 Time for the Bloomberg sports up take. Good morning, John 0:10:14.920 --> 0:10:17.199 Stan Showering alright, Good morning, Nathan. Good game at the 0:10:17.240 --> 0:10:19.920 guard and the Knicks trail deptimber Wolves by twelve and 0:10:20.000 --> 0:10:22.520 the first half, but a big forty point third quarter 0:10:22.600 --> 0:10:25.760 led by Having Fournier, Knicks went up by nine. Minnesota 0:10:25.800 --> 0:10:29.120 then trailed by one. In the final minute, Town ten 0:10:29.440 --> 0:10:31.640 bounce past Towns, top of the key. A guess, Julius 0:10:31.720 --> 0:10:33.880 Raidel takes the triple left painted town The laid up 0:10:33.880 --> 0:10:37.720 off last counted for two Towns Puts the Wolves up 0:10:37.760 --> 0:10:40.480 one ten, one oh nine. What's twenty nine? Point three 0:10:40.559 --> 0:10:44.360 seconds left? Little Radio Fournier and Alley Firks miss shots 0:10:44.400 --> 0:10:47.600 on the Knicks final possession and Minnesota won one twelve 0:10:47.679 --> 0:10:50.559 to one. Ten so to home losses in two days, 0:10:50.679 --> 0:10:54.360 and it drops the Knicks back under five, scoring twenty 0:10:54.400 --> 0:10:57.480 seven points. Julius Randel had twenty one with nine rebounds, 0:10:57.520 --> 0:11:00.840 nine assists, four block shots. Kemba Walker with earned after 0:11:00.920 --> 0:11:02.840 missing the last nine games with a knee injury. He 0:11:02.880 --> 0:11:04.719 got hot in the fourth quarter finish with nineteen. It 0:11:04.840 --> 0:11:06.760 was not the best of game for r J. Barrett. 0:11:06.760 --> 0:11:09.800 He had seven turnovers. The Islanders won only five of 0:11:09.840 --> 0:11:12.360 their first twenty games. They are hot now. They reached 0:11:12.400 --> 0:11:15.000 five hundred for the fourth three win at Philadelphia to 0:11:15.000 --> 0:11:17.160 sweep the Home at home. That's the Flyers ninth loss 0:11:17.160 --> 0:11:19.520 in a row. This game went to a shootout. There 0:11:19.520 --> 0:11:23.920 were seventeen consecutive misses before Oliver Walstrom in the ninth 0:11:24.000 --> 0:11:26.880 round finally scored the game winner for the Islanders. The 0:11:26.960 --> 0:11:29.560 Rangers back home tonight to play Toronto. Makes Advantage. Had 0:11:29.720 --> 0:11:31.560 won the fan vote to get to play in the 0:11:31.559 --> 0:11:33.560 All Star Game, except he has decided not to play 0:11:33.640 --> 0:11:36.679 personal reasons. College roops Duke lost in overtime at Florida 0:11:36.720 --> 0:11:40.000 State locally Iona one in overtime at Mandeth now fifteen, 0:11:40.000 --> 0:11:43.480 and three losses for Fordham in Manhattan. Raphaela dal on 0:11:43.559 --> 0:11:45.640 his second round match at the Australian Open, so did 0:11:45.679 --> 0:11:49.079 the women's top seed Ash Party John Stash Howard Bloomberg 0:11:49.120 --> 0:11:53.320 Sports Right, John, thank you, SMP futures now up six point. 0:11:53.360 --> 0:11:56.600 Stout futures up three nests at futures leading the games 0:11:56.640 --> 0:12:00.760 now after yesterday's declines, they're up thirty nine points. Patrick 0:12:00.880 --> 0:12:04.120 Armstrong of Plurimi Wealth is with us next. This is 0:12:04.160 --> 0:12:09.319 Bloomberg Bloomberg eleven three oh weather mix of sun and 0:12:09.320 --> 0:12:11.559 clouds today with behind your forty five degrees rain and 0:12:11.640 --> 0:12:15.520 snow showers develop overnight accumulations under an inch. Temperatures will 0:12:15.559 --> 0:12:17.600 fall through the day tomorrow. By Friday will be only 0:12:17.640 --> 0:12:24.640 in the low twenties. Markets headlines and breaking news twenty 0:12:24.679 --> 0:12:27.520 four hours a day at Bloomberg dot Com, the Bloomberg 0:12:27.520 --> 0:12:30.480 Business at and at Bloomberg Quick Tape. This is a 0:12:30.520 --> 0:12:40.000 Bloomberg Business Flash and I'm Karen Moscow stocks pairing a 0:12:40.040 --> 0:12:43.320 global sell off as earnings optimism begins to offset concern 0:12:43.360 --> 0:12:47.200 about rising VON yields. US futures reversed earlier losses and 0:12:47.240 --> 0:12:49.520 we checked the markets every fifteen minutes throughout the trading 0:12:49.600 --> 0:12:52.320 day on Bloomberg. Guess and P Futures up about five 0:12:52.320 --> 0:12:55.720 points now, futures of fifteen as deck features at thirty. 0:12:55.800 --> 0:12:57.840 The decks in Germany's up a tenth of a percent. 0:12:58.200 --> 0:13:00.640 Can your treasury down four thirty? Can see at one 0:13:00.640 --> 0:13:02.760 point eight eight percent. They yield on the two year 0:13:02.840 --> 0:13:05.760 one point oh five percent. Nimex Scrude oil is a 0:13:05.880 --> 0:13:07.960 one point two percent of a dollar three at eighty 0:13:08.000 --> 0:13:10.840 six dollars forty six cents of barrel comic schooled up 0:13:10.840 --> 0:13:13.920 a quarter percent or four dollar sixty cents. At eighteen seventeen, 0:13:13.920 --> 0:13:16.520 An ounced the euro one point one three four two 0:13:16.559 --> 0:13:18.920 against the dollar, British pound one point three six one 0:13:19.080 --> 0:13:21.880 five and the ends at one fourteen point five one 0:13:21.960 --> 0:13:24.800 and bitcoin this morning at forty one thousand, four hundred 0:13:24.880 --> 0:13:27.920 fifty dollars. That's down about two percent today. We are 0:13:27.920 --> 0:13:30.559 watching for reports on housing starts and building permits out 0:13:30.559 --> 0:13:33.240 at day thirty Wall Street Time. Morgan Stanley and Bank 0:13:33.280 --> 0:13:36.640 of America among companies schedule to report earnings today. That's 0:13:36.640 --> 0:13:39.360 a Bloomberg business flash. Now here's Michael Barr with Moore 0:13:39.440 --> 0:13:41.680 on most going all around the world. Michael, good morning, 0:13:41.880 --> 0:13:45.000 Good morning, Karen. The House Committee Investigating the US Capital, 0:13:45.160 --> 0:13:48.240 Ryan Espina At, Rudy Giuliani, and other members of Donald 0:13:48.280 --> 0:13:51.680 Trump's legal team who filed legal challenges to the twenty 0:13:51.760 --> 0:13:56.959 twenty election. The list includes Giuliani, Jenna Ellis, and Sydney Powell. 0:13:57.400 --> 0:14:00.559 Secretary of State Anthony Lincoln will meet with this Russian 0:14:00.559 --> 0:14:04.000 counterpart in Switzerland this week as tensions between the US 0:14:04.080 --> 0:14:07.880 and Russia escalate over a possible Russian invasion of Ukraine. 0:14:08.280 --> 0:14:12.400 Lincoln arrived in Kiev today to meet with President Volodimir Zelenski. 0:14:12.840 --> 0:14:15.560 In the NBA, the next lost the Warriors one. In 0:14:15.600 --> 0:14:18.320 the NHL, the Islanders won in a shootout against the 0:14:18.320 --> 0:14:21.480 Flyers for or three the Capitol's one. The Bruins lost. 0:14:21.800 --> 0:14:24.280 Global News twenty four hours a day on air and 0:14:24.480 --> 0:14:28.040 on Bloomberg Quittank, powered by more than twenty seven under 0:14:28.120 --> 0:14:31.560 journalist and analysts more than a hundred twenty countries. Michael Barr, 0:14:31.680 --> 0:14:34.920 this is Bloomberg. Nathan. Hi, Michael. Thanks, It's five nineteen 0:14:34.920 --> 0:14:38.000 on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:38.040 --> 0:14:41.000 This is Bloomberg Daybreak. As we continue to watch the 0:14:41.080 --> 0:14:44.760 gyrations in markets this morning, We're joined by Patrick Armstrong, 0:14:44.880 --> 0:14:48.840 chief investment officer at Klaimi Wealth. Patrick, Good morning, seeing 0:14:48.880 --> 0:14:51.560 a little bit of recovery in the futures contracts after 0:14:51.680 --> 0:14:54.640 yesterday sell off. Have we found a support level here? 0:14:56.320 --> 0:14:58.600 I think earnings probably will end up being a support 0:14:58.640 --> 0:15:01.160 for markets as we get in the reporting season. We've 0:15:01.160 --> 0:15:04.480 seen some good results out of some luxury companies, and 0:15:04.680 --> 0:15:07.320 it's I don't think a market where you have to 0:15:07.320 --> 0:15:09.800 be too fearful of the FED. I think that's really 0:15:09.800 --> 0:15:11.760 what's spooking everyone right now that the FED is going 0:15:11.840 --> 0:15:14.160 to be hiking twenty five basis points in March. There's 0:15:14.240 --> 0:15:16.880 small fears of fifty basis points in March, which I 0:15:16.920 --> 0:15:20.080 don't think are going to happen. And historically, at the 0:15:20.120 --> 0:15:23.640 beginning of a hiking cycle, that's not the time to worry. UM. 0:15:23.720 --> 0:15:25.640 FED hikes at the beginning of the cycle because the 0:15:25.680 --> 0:15:29.520 economy is strong, there's economic growth, there's earnings growth, and equities. 0:15:30.000 --> 0:15:32.520 It's at the end of this hiking cycle generally where 0:15:32.520 --> 0:15:35.400 they make the mistakes and they probably hike one or 0:15:35.440 --> 0:15:38.160 two more times when they should historically, And it's still 0:15:38.160 --> 0:15:40.320 a question if they'll do that. But the beginning of 0:15:40.320 --> 0:15:44.360 a hiking cycle is usually a reasonable period for risk assets. 0:15:44.400 --> 0:15:48.320 So what is your expectation of what the market should 0:15:48.320 --> 0:15:51.360 be pricing in from the FED? What's your view on 0:15:51.600 --> 0:15:55.840 where the Fed's gonna go with policy tightening. So they're 0:15:55.880 --> 0:15:58.200 going to hike in March. I think it'll be twenty 0:15:58.200 --> 0:16:00.960 five basis points. I don't think they want to lose 0:16:01.000 --> 0:16:03.800 credibility by going to fifty, because at the narrative they've 0:16:03.840 --> 0:16:06.080 been building is twenty five basis points is coming in 0:16:06.160 --> 0:16:08.160 March now, and I think fifty may be viewed as 0:16:08.200 --> 0:16:10.640 a little bit of a knee jerk reaction, which you 0:16:10.760 --> 0:16:13.680 wouldn't want from a central bank. We've probably got another 0:16:13.800 --> 0:16:16.720 three hikes after that, unless the economy is really strong, 0:16:16.960 --> 0:16:19.600 and then maybe you get another four hikes after March, 0:16:19.680 --> 0:16:22.280 even if the economy continues to be very strong. So 0:16:22.360 --> 0:16:24.520 it's it's going to be data dependent as we get 0:16:24.520 --> 0:16:27.960 through the summer. I think we've probably got three hikes 0:16:28.000 --> 0:16:30.400 in by the time we get to September, for sure, 0:16:30.640 --> 0:16:33.960 and if the economy is stronger than consensus, it might 0:16:34.000 --> 0:16:37.480 even be more. But you don't mind owning risk assets 0:16:37.520 --> 0:16:40.240 when the economy is strong generally, But that kind of 0:16:40.320 --> 0:16:44.120 hiking schedule. What's your view on where treasury yields could 0:16:44.120 --> 0:16:47.600 go from here? They are starting to move up pretty significantly. 0:16:48.680 --> 0:16:50.880 You don't want to own duration um, so you want 0:16:50.920 --> 0:16:53.320 to be underweight duration. You don't want to own treasuries 0:16:53.480 --> 0:16:55.760 you don't want to own duration and your equities, which 0:16:55.800 --> 0:16:59.000 means the highest multiple companies that don't have earnings yet 0:16:59.040 --> 0:17:00.960 and aren't going to have earned for years to come. 0:17:01.560 --> 0:17:05.639 I think that's the one pocket that's probably continuing to 0:17:05.720 --> 0:17:08.280 be at risk. UM. I think treasury yields moved past 0:17:08.320 --> 0:17:12.240 two percent, and as the FED funds futures start to 0:17:12.280 --> 0:17:16.120 price for two percent in three I think you're going 0:17:16.160 --> 0:17:19.840 to have a steeper yield curve than what the markets 0:17:19.880 --> 0:17:23.160 pricing in right now. And inflation at seven percent, that's 0:17:23.200 --> 0:17:25.480 going to come down. But I think we have years 0:17:25.520 --> 0:17:28.480 in front of us where inflation remains above the FED 0:17:28.520 --> 0:17:31.040 target rates. So I think two year ten year yields 0:17:31.440 --> 0:17:34.560 moving above two and the continuing slow grind higher as 0:17:34.600 --> 0:17:37.360 the FED ones down its balance sheet. So with the 0:17:37.400 --> 0:17:40.080 steepening yield curve that you're looking for here, you're not 0:17:40.160 --> 0:17:43.840 looking for the possibility of recession coming out of this recovery, 0:17:43.880 --> 0:17:47.440 are you. I don't think we should be worried about 0:17:47.480 --> 0:17:50.879 recession right now. We're still in above normal growth. I 0:17:50.880 --> 0:17:52.760 think the US economy is probably going to grow about 0:17:52.760 --> 0:17:55.720 four and a half percent this year. UM. The Fed 0:17:55.800 --> 0:17:59.880 inevitably has caused almost all the previous recessions. Um Powell 0:18:00.080 --> 0:18:02.080 talked about this, and I think they're aware of that, 0:18:02.240 --> 0:18:05.919 and they're letting the economy run hot. They did that 0:18:05.960 --> 0:18:08.280 all last year and now we're seeing this what happens 0:18:08.280 --> 0:18:11.400 from that. But I think they won't hike too far 0:18:11.560 --> 0:18:14.800 this time. Those may be famous last words because central 0:18:14.800 --> 0:18:18.520 banks always hiked too much towards the end. But policymakers 0:18:18.560 --> 0:18:22.680 know the consequences of their actions and previous recessions. I 0:18:22.680 --> 0:18:25.919 think they're well equipped to make sure they can manage 0:18:25.960 --> 0:18:29.840 it and maybe smooth out, slowdown rather than provoke a recession. 0:18:30.320 --> 0:18:32.240 So in our last minute here, Patrick, where are you 0:18:32.280 --> 0:18:36.439 looking for opportunity? As we've continue to game out what 0:18:36.520 --> 0:18:40.760 the Fed's gonna do. I think you want to be 0:18:40.840 --> 0:18:45.000 in value inequities. Cyclical value still make sense to me. Um. 0:18:45.040 --> 0:18:47.720 A lot of value companies are trading at six to 0:18:47.840 --> 0:18:51.080 ten times earnings. We haven't bought them yet. I'll wait 0:18:51.160 --> 0:18:53.840 for the Morgan Stanley results, but I think the banks 0:18:53.840 --> 0:18:57.240 are looking really cheap. JP Morgan, Goldman, Sachs really sold 0:18:57.240 --> 0:19:00.440 off on their trading revenues, and that's always a while card. 0:19:00.480 --> 0:19:03.280 I think once we get through reporting season. If those 0:19:03.320 --> 0:19:05.320 banks stay at current levels, I think those will be 0:19:05.359 --> 0:19:09.240 good opportunities um and should be beneficiaries of their steepening 0:19:09.320 --> 0:19:12.479 yielder that I expect. All right, thanks for this, Patrick. 0:19:12.560 --> 0:19:16.000 Of course, we will be getting those final bank results 0:19:16.040 --> 0:19:19.560 from Bank of America and Morgan Stanley just a couple 0:19:19.640 --> 0:19:23.720 hours here. Patrick Armstrong, chief investment officer at Plurimi Wealth 0:19:23.840 --> 0:19:27.159 with us this morning as we continue to track the 0:19:27.200 --> 0:19:30.920 recovery we're seeing in futures contracts after yesterday's sell off. 0:19:31.000 --> 0:19:34.720 Right now, SMP futures are up seven points, STAFF futures 0:19:34.760 --> 0:19:38.600 up thirty six, and NASDAC futures leading the games. Right now, 0:19:38.640 --> 0:19:41.800 they're higher by forty seven points ten. Your treasury now 0:19:41.840 --> 0:19:45.080 down three thirty seconds, the yield at one point eight percent, 0:19:45.119 --> 0:19:46.640 in the yield on the two year right now, one 0:19:46.680 --> 0:19:52.520 point zero five percent Bitcoin right around forty dollars. Just ahead, 0:19:52.520 --> 0:19:55.280 we'll have more on the markets, fed, beets and airlines. 0:19:55.320 --> 0:19:58.600 Grapple with the five G rollout as we check your 0:19:58.720 --> 0:20:02.560 top stories of the morning right here on Bloomberg Daybreak. 0:20:02.720 --> 0:20:09.120 Good morning, Bloomberg, eleven three oh weather, mix of sun 0:20:09.119 --> 0:20:11.080 and clouds and a high here forty five degrees today, 0:20:11.160 --> 0:20:15.600 rainage snow showers overnight. Temperatures will fall through tomorrow. By 0:20:15.680 --> 0:20:18.359 Friday will only be in the low twenties. Currently thirty 0:20:18.359 --> 0:20:24.480 one degrees in Central Park. Broadcasting live from the Bloomberg 0:20:24.520 --> 0:20:27.920 Interactive Broker Studio in New York. Bloomberg E Living for 0:20:28.000 --> 0:20:32.480 you to Washington, d C. Bloomberg to Boston, Bloomberg one 0:20:32.480 --> 0:20:35.679 O six one does San Francisco, Bloomberg nine six to 0:20:35.720 --> 0:20:39.320 the country, Sirius XM Channel one nine and around the globe, 0:20:39.400 --> 0:20:43.399 the Bloomberg Business and Bloomberg Radio dot Com. This is 0:20:43.400 --> 0:20:52.040 Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. 0:20:52.080 --> 0:20:55.040 I'm Nathan Hager and I'm camerin Moscow and we're just 0:20:55.119 --> 0:20:57.800 about four hours away from the open of US trading. 0:20:57.880 --> 0:20:59.199 Let's get you up to date on the news. You 0:20:59.240 --> 0:21:00.960 need to know what this hour, and it's all about 0:21:01.000 --> 0:21:04.960 the markets this morning. Stock future has fell sharply overnight, 0:21:05.000 --> 0:21:07.560 but are now rebounding. We get the very latest live 0:21:07.600 --> 0:21:10.359 with the Bloomberg's John Tucker. John, Good morning, Good morning, 0:21:10.440 --> 0:21:13.320 Karen bench Whore. Treasury yields look poised to surge past 0:21:13.320 --> 0:21:16.280 two percent now. Traders are bidding the Federal Reserve could 0:21:16.280 --> 0:21:19.840 go for a supersized rate hike. In March, higher yields 0:21:19.840 --> 0:21:23.040 were weighing on equities, especially tech stocks, but as that 0:21:23.280 --> 0:21:26.920 down almost ten percent from its November high, that would 0:21:26.920 --> 0:21:30.280 be a correction. Investors wondering if the sell off has 0:21:30.320 --> 0:21:33.600 gone too far. This morning, overnight NASDEK futures fell as 0:21:33.640 --> 0:21:36.520 much as one percent, and now they are up thirty 0:21:36.600 --> 0:21:40.160 nine points. Live in New York. I'm John Tucker Bloomberg Daybreak, 0:21:40.359 --> 0:21:42.920 and John. Investors are also gonna be paying close attention 0:21:42.960 --> 0:21:45.800 today to bank earnings. Morgan Stanley and Bank of America 0:21:45.880 --> 0:21:49.359