1 00:00:01,400 --> 00:00:04,640 Speaker 1: Live from the Bloomberg Interactor Burger Studios. This is Bloomberg 2 00:00:04,720 --> 00:00:08,760 Speaker 1: day Break for Wednesday, February two. Coming up this hour, 3 00:00:09,000 --> 00:00:12,400 Speaker 1: President Biden's first round of Russia sanctions hits the markets 4 00:00:12,480 --> 00:00:15,000 Speaker 1: with a whimper, S and p future stage a comeback 5 00:00:15,080 --> 00:00:18,640 Speaker 1: after falling into correction Territory a cheft in the pandemic. 6 00:00:18,680 --> 00:00:22,119 Speaker 1: Apple drops its mass requirement at most retail stores and 7 00:00:22,200 --> 00:00:25,960 Speaker 1: Barclay's posts its highest annual profit on record. New York 8 00:00:26,000 --> 00:00:28,480 Speaker 1: State is an investing sixty million dollars to beef up 9 00:00:28,520 --> 00:00:32,159 Speaker 1: cyber security, plus National Guard troops head to Washington, d C. 10 00:00:32,440 --> 00:00:36,720 Speaker 1: For possible trucker protests. I'm like, I'm John stash Our 11 00:00:36,800 --> 00:00:38,920 Speaker 1: and sports. The Yankees announced they will honor one of 12 00:00:38,960 --> 00:00:42,199 Speaker 1: their former great players, the Islanders, with a wind in Seattle. 13 00:00:44,159 --> 00:00:48,720 Speaker 1: That's all straight ahead on Bloomberg day Break on Bloomberg eleven, Treo, 14 00:00:48,840 --> 00:00:53,239 Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh 15 00:00:53,280 --> 00:00:57,760 Speaker 1: six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x 16 00:00:57,920 --> 00:01:00,960 Speaker 1: M one nineteen and around the world orld on Bloomberg 17 00:01:01,040 --> 00:01:08,160 Speaker 1: Radio dot Com and via The Bloomberg Business and Good Morning, 18 00:01:08,160 --> 00:01:11,399 Speaker 1: I'm Karen Moscow. I'm Nathan Hagar. Bloomberg Daybreak brought to 19 00:01:11,440 --> 00:01:14,759 Speaker 1: you by SEI. Crises bring out the vest in people, character, 20 00:01:14,840 --> 00:01:18,399 Speaker 1: community Partnership Together is one SEI go to se I 21 00:01:18,480 --> 00:01:21,560 Speaker 1: C dot com, slash, I M S and US futures 22 00:01:21,560 --> 00:01:24,080 Speaker 1: are bouncing back this morning five o one on Wall Street. 23 00:01:24,120 --> 00:01:26,440 Speaker 1: We checked the markets every fifteen minutes throughout the trading 24 00:01:26,520 --> 00:01:30,040 Speaker 1: day on Bloomberg SMP futures up thirty six points down, 25 00:01:30,080 --> 00:01:32,640 Speaker 1: futures up two hundred thirty three and ASDAC futures up 26 00:01:32,680 --> 00:01:36,240 Speaker 1: one hundred seventy one. Ten year Treasury down eight thirty seconds, 27 00:01:36,280 --> 00:01:39,200 Speaker 1: yield one point nine six percent. Yield on the two 28 00:01:39,280 --> 00:01:42,160 Speaker 1: year one point six one per cent. Ni nex screwed 29 00:01:42,200 --> 00:01:44,559 Speaker 1: oil is down one point one percent on a dollar 30 00:01:44,680 --> 00:01:48,040 Speaker 1: two at ninety eight cents of barrel. Nathan Well, Karen, 31 00:01:48,080 --> 00:01:50,880 Speaker 1: We begin this morning with the latest developments on Ukraine. 32 00:01:50,920 --> 00:01:54,720 Speaker 1: President Biden has unveiled sanctions against Russia. As Secretary of 33 00:01:54,720 --> 00:01:57,680 Speaker 1: State Anthony B. Lincoln calls off a meeting with Russia's 34 00:01:57,680 --> 00:02:00,720 Speaker 1: foreign minister. Amy Morris has the latest from our Bloomberg 35 00:02:01,360 --> 00:02:04,880 Speaker 1: newsroom in Washington. The latest sanctions target Russia's sale of 36 00:02:04,920 --> 00:02:07,760 Speaker 1: sovereign debt abroad and the country's elites in response to 37 00:02:07,800 --> 00:02:10,880 Speaker 1: what Biden calls the start of Putin's invasion of Ukraine. 38 00:02:11,080 --> 00:02:15,000 Speaker 1: We have no intention of fighting Russia. We want to 39 00:02:15,040 --> 00:02:18,480 Speaker 1: send an unmistakable message, though, that the United States, together 40 00:02:18,520 --> 00:02:22,400 Speaker 1: with our allies, will defend every inch of NATO territory. 41 00:02:22,760 --> 00:02:25,079 Speaker 1: This as Secretary b Lincoln says his meeting with sarage 42 00:02:25,240 --> 00:02:28,440 Speaker 1: Lavrov is canceled because, in his words, doesn't make sense 43 00:02:28,480 --> 00:02:31,520 Speaker 1: to go forward at this time. Ukraine's foreign minister says 44 00:02:31,560 --> 00:02:34,600 Speaker 1: their plan is to use every diplomatic tool possible to 45 00:02:34,720 --> 00:02:39,520 Speaker 1: deter Russia and prevent further escalation. Their plan, b he says, 46 00:02:40,040 --> 00:02:43,160 Speaker 1: is to fight in Washington. I maybe more as Bloomberg 47 00:02:43,200 --> 00:02:46,560 Speaker 1: daybreak amy thank you reaction pouring in over the conflict 48 00:02:46,560 --> 00:02:49,560 Speaker 1: with Russia. We spoke with former US Ambassador to Poland, 49 00:02:49,600 --> 00:02:52,840 Speaker 1: Stephen Mall. He says this first round of sanctions might 50 00:02:52,880 --> 00:02:56,120 Speaker 1: not be enough to deter a further invasion. I think 51 00:02:56,160 --> 00:02:58,480 Speaker 1: we're going to be looking at over the next days 52 00:02:58,960 --> 00:03:02,919 Speaker 1: weeks uh incremental move by by Russia to see how 53 00:03:03,000 --> 00:03:06,560 Speaker 1: far if you get. In meeting, the objective that fruiting 54 00:03:06,680 --> 00:03:09,120 Speaker 1: is laid out I don't know that there's any station 55 00:03:09,639 --> 00:03:14,079 Speaker 1: that the US could impose that would would stop them 56 00:03:14,120 --> 00:03:17,160 Speaker 1: from going all the way through with what Frutin is clearly, 57 00:03:17,160 --> 00:03:20,080 Speaker 1: said former U s Amboussador. Stephen Mall spoke at their 58 00:03:20,120 --> 00:03:23,679 Speaker 1: Washington corresponded Joe Matthew on Bloomberg Sound on Catch the 59 00:03:23,680 --> 00:03:27,160 Speaker 1: program weekdays at five pm Eastern on Bloomberg Radio. So 60 00:03:27,280 --> 00:03:30,000 Speaker 1: these latest developments have the SNP five hundred starting the 61 00:03:30,040 --> 00:03:32,680 Speaker 1: day correction Territory care and the index is down more 62 00:03:32,720 --> 00:03:35,760 Speaker 1: than ten percent from its January record. Walter Todd, his 63 00:03:35,840 --> 00:03:38,880 Speaker 1: chief investment officer at Greenwood Capital. I think it's important 64 00:03:38,880 --> 00:03:41,160 Speaker 1: in times like these for US is just to kind 65 00:03:41,160 --> 00:03:43,360 Speaker 1: of you try to step back and look at you know, 66 00:03:43,640 --> 00:03:46,720 Speaker 1: try to maybe dig in on some individual names and 67 00:03:46,880 --> 00:03:49,320 Speaker 1: you know, earning stories that we're still getting despite all 68 00:03:49,360 --> 00:03:51,840 Speaker 1: these headlines kind of whipping things around. And I think, 69 00:03:51,960 --> 00:03:54,480 Speaker 1: you know, it can present opportunities for companies maybe that 70 00:03:54,560 --> 00:03:57,080 Speaker 1: have just reported that maybe don't have it that much 71 00:03:57,120 --> 00:04:00,480 Speaker 1: exposure to this situation directly that you know, getting caught 72 00:04:00,560 --> 00:04:03,400 Speaker 1: up in this this macro trate. Walter Todd at Greenwood 73 00:04:03,440 --> 00:04:05,560 Speaker 1: Capital says the market is still watching the FED. He 74 00:04:05,600 --> 00:04:08,160 Speaker 1: expects the Central Bank to gradually raise rates and then 75 00:04:08,200 --> 00:04:10,280 Speaker 1: pick up the pace of tightening in the second half 76 00:04:10,320 --> 00:04:12,680 Speaker 1: of the year. Nathan, We still have a smattering of 77 00:04:12,720 --> 00:04:15,240 Speaker 1: earnings to talk about this morning. After results from Home 78 00:04:15,320 --> 00:04:18,040 Speaker 1: Depot yesterday, we get numbers from Home Improvement a retailer 79 00:04:18,160 --> 00:04:21,320 Speaker 1: Lowe's to get a preview from Bloomberg's. Tom Busby lots 80 00:04:21,320 --> 00:04:24,359 Speaker 1: of caution ahead of Lowe's fourth quarter earnings on worries 81 00:04:24,440 --> 00:04:26,960 Speaker 1: that revenues at the nation's number two do it yourself 82 00:04:27,040 --> 00:04:29,880 Speaker 1: chain may be impacted by the same higher costs and 83 00:04:30,040 --> 00:04:33,839 Speaker 1: supply chain problems that weighed on Home Depot's results. One 84 00:04:33,920 --> 00:04:37,520 Speaker 1: key for investors is whether Lowe's changes the initial upbeat 85 00:04:37,560 --> 00:04:40,560 Speaker 1: out look it gave them back in December. Bloomberg consensus 86 00:04:40,560 --> 00:04:43,039 Speaker 1: calls for adjustin earnings per share of a dollar seventy, 87 00:04:43,080 --> 00:04:46,719 Speaker 1: revenues of twenty point eight nine billion dollars and same 88 00:04:46,760 --> 00:04:50,760 Speaker 1: source sales up about two point two Tom Busby, Bloomberg 89 00:04:50,839 --> 00:04:53,559 Speaker 1: daybreak All right, Tom. Thanks. In Europe this morning, shares 90 00:04:53,560 --> 00:04:56,360 Speaker 1: of Barkley's are up a nearly two percent. The British 91 00:04:56,360 --> 00:05:00,000 Speaker 1: bank posted its highest annual profit on record. Barkley's dealmaker 92 00:05:00,000 --> 00:05:01,359 Speaker 1: has had a busy end of the year and that 93 00:05:01,440 --> 00:05:04,279 Speaker 1: helped off set a slump in trading activity. Turning to 94 00:05:04,320 --> 00:05:06,880 Speaker 1: the pandemic, now, Nathan, we're seeing a shift in retails 95 00:05:06,920 --> 00:05:10,160 Speaker 1: approach to COVID. Apple is dropping its masks requirement in 96 00:05:10,279 --> 00:05:13,080 Speaker 1: most stores across the US. We get this story from 97 00:05:13,080 --> 00:05:17,120 Speaker 1: Bloomberg Charlie Pellett. The company announced the changes to employees 98 00:05:17,160 --> 00:05:21,000 Speaker 1: at eligible stores and has updated its website to reflect 99 00:05:21,040 --> 00:05:25,840 Speaker 1: which locations aren't no longer requiring masks. Apple, however, will 100 00:05:25,920 --> 00:05:30,000 Speaker 1: continue to recommend that customers wear masks and will provide 101 00:05:30,040 --> 00:05:34,480 Speaker 1: them upon request. Employees, say, Apple retail workers will still 102 00:05:34,520 --> 00:05:38,239 Speaker 1: be required to wear masks. Apple locations in New York 103 00:05:38,279 --> 00:05:42,000 Speaker 1: have made masks optional for customers who are fully vaccinated. 104 00:05:42,320 --> 00:05:45,360 Speaker 1: The Iphonemaker also is ramping up for the return of 105 00:05:45,640 --> 00:05:50,400 Speaker 1: in store classes in New York. Charlie Pellett, Bloomberg Daybreak. 106 00:05:50,520 --> 00:05:52,920 Speaker 1: All right, Charlie, thanks. It's a different story in Asia 107 00:05:53,000 --> 00:05:55,800 Speaker 1: when it comes to battling the pandemic. Infections continue to 108 00:05:55,920 --> 00:05:58,600 Speaker 1: rise in Hong Kong and that has the city expanding 109 00:05:58,640 --> 00:06:01,960 Speaker 1: fiscal stimulus measure. We get the latest from Bloomberg Daybreak, 110 00:06:01,960 --> 00:06:05,120 Speaker 1: Asia anchor Brian Curtis. In the annual Hong Kong budget, 111 00:06:05,200 --> 00:06:08,200 Speaker 1: Financial Secretary Paul Chen said Hong Kong would offer thirteen 112 00:06:08,560 --> 00:06:12,240 Speaker 1: dollar payments to residents. The economy expanded six point four 113 00:06:12,279 --> 00:06:16,200 Speaker 1: percent in twenty one, but he forecast that two g 114 00:06:16,279 --> 00:06:18,279 Speaker 1: d P would fall to a range of two to 115 00:06:18,360 --> 00:06:20,719 Speaker 1: three and a half percent. In the meantime, the government 116 00:06:20,720 --> 00:06:23,880 Speaker 1: has rolled out more details on mass testing residents some 117 00:06:24,000 --> 00:06:26,960 Speaker 1: three times over the next month, and the leading lawmaker, 118 00:06:26,960 --> 00:06:29,840 Speaker 1: Michael Teen, says that Hong Kong should impose a strict 119 00:06:29,960 --> 00:06:33,240 Speaker 1: citywide lockdown for nine days to reign in the outbreak. 120 00:06:33,640 --> 00:06:36,320 Speaker 1: Teen says a lockdown would be preferable to stringing along 121 00:06:36,440 --> 00:06:41,760 Speaker 1: drastic social distancing restrictions, restrictions that he says are strangling business. 122 00:06:42,040 --> 00:06:44,960 Speaker 1: Brian Curtis, Bloomberg Daybreak, A right, Brian, thank you. On 123 00:06:45,000 --> 00:06:48,359 Speaker 1: another note out of Asia this morning, HSBC City Group 124 00:06:48,360 --> 00:06:51,080 Speaker 1: in Baggat, China say they will close all of their 125 00:06:51,080 --> 00:06:54,840 Speaker 1: retail branches in Hong Kong temporarily on Saturday's beginning in March. 126 00:06:54,960 --> 00:06:57,599 Speaker 1: The move comes as Hong Kong's scrambles to contain its 127 00:06:57,600 --> 00:07:01,000 Speaker 1: worst COVID outbreak yet s and the futures right now 128 00:07:01,040 --> 00:07:03,719 Speaker 1: up thirty seven point. Staff futures up tune to thirty 129 00:07:03,720 --> 00:07:06,520 Speaker 1: five and nastack futures are higher by a hundred seventy 130 00:07:06,560 --> 00:07:09,600 Speaker 1: five points. The tenure treasury is down eight thirty seconds. 131 00:07:09,640 --> 00:07:12,120 Speaker 1: The yield one point nine six percent in the yield 132 00:07:12,160 --> 00:07:15,080 Speaker 1: on the two year one point six one straight to 133 00:07:15,120 --> 00:07:17,560 Speaker 1: head your latest local headlines in the check of sports. 134 00:07:17,600 --> 00:07:24,440 Speaker 1: This is Bloomberg and it's south five oh seven on 135 00:07:24,440 --> 00:07:26,800 Speaker 1: Wall Street where fifty eight degrees in Central Park Route 136 00:07:26,800 --> 00:07:30,080 Speaker 1: twenties closed between eighteenth and twentieth avenues, and Paterson will 137 00:07:30,080 --> 00:07:32,560 Speaker 1: tell you why in traffic. Just ahead. First, Michael bar 138 00:07:32,720 --> 00:07:34,200 Speaker 1: is here with more on what's going on in New 139 00:07:34,280 --> 00:07:36,760 Speaker 1: York and around the world. Good morning, Michael, Good morning Nathan. 140 00:07:36,840 --> 00:07:39,440 Speaker 1: Tensions between Russia and the West have led New York 141 00:07:39,560 --> 00:07:44,120 Speaker 1: State to tackle cyber security. Governor Kathy Hokel says the 142 00:07:44,240 --> 00:07:47,880 Speaker 1: Joint Security Operations Center will open in Brooklyn to help 143 00:07:47,960 --> 00:07:51,560 Speaker 1: combat cyber attacks in the state. Vocal said the state 144 00:07:51,640 --> 00:07:54,480 Speaker 1: would set aside almost sixty two million dollars in the 145 00:07:54,520 --> 00:07:59,280 Speaker 1: twenty three state budget for stronger cyber security measures. We 146 00:07:59,440 --> 00:08:02,600 Speaker 1: truly live the digital world. You think about all your transactions, 147 00:08:03,080 --> 00:08:05,600 Speaker 1: how you access money, how you pay your bills, how 148 00:08:05,680 --> 00:08:10,120 Speaker 1: you make purchases and medical records. Even our power grids, NIPUMP, 149 00:08:10,360 --> 00:08:14,000 Speaker 1: our transportation systems, the m t A UH, they're all 150 00:08:14,120 --> 00:08:19,920 Speaker 1: vulnerable to cyber attack if we don't take precautionary measures. 151 00:08:20,280 --> 00:08:23,240 Speaker 1: Governor Hucle was joined by several mayors to announce the 152 00:08:23,320 --> 00:08:26,200 Speaker 1: Joint Security Operations Center, which will be the first of 153 00:08:26,240 --> 00:08:29,720 Speaker 1: its kind in the nation, including New York Mayor Eric Adams. 154 00:08:30,080 --> 00:08:34,400 Speaker 1: No Fugison down in Graci Mansion speaking with the former 155 00:08:34,440 --> 00:08:38,719 Speaker 1: mayor talking about the pandemic and other issues that we're 156 00:08:38,800 --> 00:08:42,800 Speaker 1: facing the city, and he was clear, s is Eric, 157 00:08:43,600 --> 00:08:48,439 Speaker 1: your real crises is going to be cyber security. Mayor 158 00:08:48,480 --> 00:08:50,880 Speaker 1: Adams went on to say the difference between a minor 159 00:08:51,040 --> 00:08:54,760 Speaker 1: cyber attack, disruption, and a catastrophe can be in a 160 00:08:54,800 --> 00:08:57,800 Speaker 1: matter of minutes. New York City began its push to 161 00:08:57,840 --> 00:09:01,839 Speaker 1: remove subway writers using the ranted system for shelter. It's 162 00:09:01,880 --> 00:09:04,640 Speaker 1: part of a strategy to produce crime and restore confidence 163 00:09:04,679 --> 00:09:08,400 Speaker 1: in subways. In yp D, Transit Chief Jason Wilcox said 164 00:09:08,480 --> 00:09:12,719 Speaker 1: during mt A committee hearings yesterday, the Departments of Homeless 165 00:09:12,760 --> 00:09:16,840 Speaker 1: Services and of Health and Mental Hygiene have gone out 166 00:09:16,840 --> 00:09:19,959 Speaker 1: to talk with writers who lack housing and help them 167 00:09:19,960 --> 00:09:23,240 Speaker 1: find shelter. Former President Trump has run out of appeals 168 00:09:23,240 --> 00:09:25,840 Speaker 1: to keep the January six Committee from seeing his White 169 00:09:25,880 --> 00:09:29,360 Speaker 1: House records. The Supreme Court denied Trump's attempt to shield 170 00:09:29,440 --> 00:09:32,679 Speaker 1: several hundred pages of records. New York is paving the 171 00:09:32,720 --> 00:09:35,280 Speaker 1: way for a hemp farmers to get ahead start on 172 00:09:35,320 --> 00:09:38,040 Speaker 1: growing marijuana for legal sales that are expected to begin 173 00:09:38,160 --> 00:09:41,680 Speaker 1: next year. Governor Cafee Hokel signed legislation that lets hemp 174 00:09:41,679 --> 00:09:45,960 Speaker 1: farmers apply for two year licenses to grow pot. Licensees 175 00:09:46,040 --> 00:09:49,240 Speaker 1: can start planning the spring. Global News twenty four hours 176 00:09:49,240 --> 00:09:52,160 Speaker 1: a day on air and on Bloomberg Quicktake, powered by 177 00:09:52,160 --> 00:09:55,160 Speaker 1: more than twenty seven journalist and analysts more than a 178 00:09:55,200 --> 00:09:59,079 Speaker 1: hundred twenty countries. Michael Barr, this is Bloomberg. Nathan Okay, Michael, 179 00:09:59,120 --> 00:10:05,679 Speaker 1: thank you. Come up to five Town Wall Street time 180 00:10:05,720 --> 00:10:08,360 Speaker 1: for the Bloomberg Sports Up Take A Morning John stand Morning, 181 00:10:08,440 --> 00:10:12,679 Speaker 1: Nathan n three. The Yankees traded Roberto Kelly to Cincinnati 182 00:10:12,720 --> 00:10:15,079 Speaker 1: for Paul O'Neill. Swap about fielders turned out to be 183 00:10:15,120 --> 00:10:17,760 Speaker 1: a great Yankee trade. O'Neil a mainstay on four World 184 00:10:17,880 --> 00:10:21,559 Speaker 1: championship team. George Steinbrenner called him a warrior since retirement 185 00:10:21,559 --> 00:10:23,959 Speaker 1: many years. In the Yankee broadcast, both the team and aunted. 186 00:10:24,040 --> 00:10:28,320 Speaker 1: On auguste number one will have his number retired. O'Neil 187 00:10:28,400 --> 00:10:30,640 Speaker 1: called at his greatest honor. Meanwhile, if and when the 188 00:10:30,679 --> 00:10:32,840 Speaker 1: lockout ends, the Yankees might be in pursuit of a 189 00:10:32,880 --> 00:10:36,280 Speaker 1: big free agent. ESPN reports there is growing belief that 190 00:10:36,320 --> 00:10:38,920 Speaker 1: Freddie Freeman is not going to resign with Atlanta and 191 00:10:38,920 --> 00:10:41,679 Speaker 1: the Yanks are in pursuit. Brian Flores, who in his 192 00:10:41,840 --> 00:10:45,360 Speaker 1: racial discrimination lost to an alleged that while coaching the Dolphins, 193 00:10:45,360 --> 00:10:48,400 Speaker 1: owner Stephen Ross offered him bonus money for each game 194 00:10:48,440 --> 00:10:51,480 Speaker 1: the team lost, now has made another allegation on HBO's 195 00:10:51,520 --> 00:10:54,400 Speaker 1: Real Sports. Flora has said that after he got fired 196 00:10:54,400 --> 00:10:57,280 Speaker 1: in Miami, they offered a millions to sign a non 197 00:10:57,360 --> 00:11:01,560 Speaker 1: disparagement agreement and he refused. Went four million dollars settlement 198 00:11:01,640 --> 00:11:05,160 Speaker 1: in the gender discrimination lawsuit plat by the US women's 199 00:11:05,240 --> 00:11:08,880 Speaker 1: national soccer team twenty eight pointiffs, including Carly Lloyd. It 200 00:11:09,080 --> 00:11:13,400 Speaker 1: is historical moment, and you know, just like all the 201 00:11:13,400 --> 00:11:18,360 Speaker 1: players prior to me, the pioneers who helped make things 202 00:11:18,400 --> 00:11:21,320 Speaker 1: better for when I came into the game. We're doing 203 00:11:21,360 --> 00:11:24,160 Speaker 1: the same and just really proud of the group. I mean, 204 00:11:24,240 --> 00:11:27,400 Speaker 1: we've started this journey six seven years ago and it's 205 00:11:28,040 --> 00:11:30,160 Speaker 1: going forward. The women will now get the equal phase 206 00:11:30,240 --> 00:11:32,840 Speaker 1: the man. The Islanders, who began the season with thirteen 207 00:11:32,920 --> 00:11:35,680 Speaker 1: road games, back on the road for five. First off Seattle, 208 00:11:36,040 --> 00:11:38,679 Speaker 1: Zach Parisi scored wice. The Islands won five to two. 209 00:11:39,000 --> 00:11:42,480 Speaker 1: John spatually were Bloomberg Sports. Thank you, John Red headline 210 00:11:42,559 --> 00:11:46,000 Speaker 1: just crossing the Bloomberg terminal. Ukraine seeks to declare a 211 00:11:46,120 --> 00:11:49,800 Speaker 1: nationwide state of emergency. Will get the very latest details 212 00:11:49,880 --> 00:11:52,840 Speaker 1: all the latest developments on what's happening in Ukraine and 213 00:11:52,920 --> 00:11:57,400 Speaker 1: the latest sanctions on Russia. Bloomberg's executive editor for international Affairs, 214 00:11:57,480 --> 00:12:00,880 Speaker 1: Rosalind Matheson joins US next s andp futures right now 215 00:12:01,080 --> 00:12:04,719 Speaker 1: up twenty eight and a half points. This is Bloomberg 216 00:12:07,320 --> 00:12:09,720 Speaker 1: Bloomberg eleven three oh Weather turning partly sunny and breezy 217 00:12:09,760 --> 00:12:11,959 Speaker 1: today with highs in the mid sixties. By tomorrow will 218 00:12:12,000 --> 00:12:14,199 Speaker 1: only be in the upper thirties, with a wintry mess 219 00:12:14,240 --> 00:12:17,520 Speaker 1: expected tomorrow night, turning over into rain on Friday, low forties. 220 00:12:17,640 --> 00:12:24,320 Speaker 1: Right now fifty eight degrees. Markets headlines and breaking news 221 00:12:24,400 --> 00:12:27,000 Speaker 1: twenty four hours a day at Bloomberg dot com, the 222 00:12:27,080 --> 00:12:31,160 Speaker 1: Bloomberg Business Outland at Bloomberg Ucktape. This is a Bloomberg 223 00:12:31,240 --> 00:12:40,199 Speaker 1: business lash and I'm Karen. Moscow and European equities are 224 00:12:40,280 --> 00:12:43,360 Speaker 1: rising along with US Dock index futures as investors assess 225 00:12:43,400 --> 00:12:47,000 Speaker 1: the limited initial Western sanctions against Russia amid the Ukraine 226 00:12:47,000 --> 00:12:49,760 Speaker 1: and standoff. And we checked the markets every fifteen minutes 227 00:12:49,760 --> 00:12:53,200 Speaker 1: throughout the trading day on Bloomberg. SNP futures up thirty 228 00:12:53,240 --> 00:12:55,959 Speaker 1: foints this morning. Down futures have one d nineties seven 229 00:12:56,280 --> 00:12:59,880 Speaker 1: Nasaday futures have on the docks in Germany is a 230 00:13:00,040 --> 00:13:02,800 Speaker 1: eight tenths of upper cent pen. Your treasury down seven 231 00:13:02,840 --> 00:13:05,439 Speaker 1: thirty seconds, yield one point nine six percent. They yield 232 00:13:05,440 --> 00:13:08,319 Speaker 1: on the two year one points a zero percent. Nim 233 00:13:08,400 --> 00:13:10,560 Speaker 1: X Scrude oil is down one percent or eighty four 234 00:13:10,600 --> 00:13:13,360 Speaker 1: cents and ninety one dollar seven cents of barrel comic 235 00:13:13,400 --> 00:13:15,760 Speaker 1: school down six tenths per cent or eleven dollars twenty 236 00:13:15,760 --> 00:13:18,880 Speaker 1: cents at eighteen ninety six twenty announce the euro one 237 00:13:18,880 --> 00:13:21,320 Speaker 1: point one three five three against the dollar. British found 238 00:13:21,360 --> 00:13:23,840 Speaker 1: one point three six oh five and the NIS at 239 00:13:23,840 --> 00:13:26,920 Speaker 1: one fifteen point oh three bitcoin this morning, moving higher 240 00:13:27,160 --> 00:13:30,080 Speaker 1: at thirty eight thousand, eight hundred ninety dollars. That's a 241 00:13:30,080 --> 00:13:32,920 Speaker 1: Bloomberg Business flash. Now here's Michael Barr with more on 242 00:13:33,000 --> 00:13:36,000 Speaker 1: what's going on around the world. Michael, good morning, Good morning. Care. 243 00:13:36,000 --> 00:13:40,840 Speaker 1: Intentions over Russia and Ukraine continue. Russian lawmakers authorized President 244 00:13:40,880 --> 00:13:44,800 Speaker 1: Vladimir Putin to use military force outside its country. President 245 00:13:44,880 --> 00:13:48,720 Speaker 1: Joe Biden and European leaders responded by slapping sanctions on 246 00:13:48,880 --> 00:13:52,559 Speaker 1: Russian oligarchs and banks. Putin has massed one hundred fifty 247 00:13:52,559 --> 00:13:56,160 Speaker 1: thousand troops on three sides of Ukraine. Jury deliberations are 248 00:13:56,200 --> 00:13:58,120 Speaker 1: set to begin to day in the case against three 249 00:13:58,160 --> 00:14:02,480 Speaker 1: former Minneapolis police officers involved in George Floyd's depth. They 250 00:14:02,520 --> 00:14:06,040 Speaker 1: are charged with depriving Floyd of his civil rights by 251 00:14:06,160 --> 00:14:09,719 Speaker 1: failing to administer aid when officer Derek Schouwin pressed his 252 00:14:09,800 --> 00:14:12,200 Speaker 1: knee into Floyd's nack for more than nine minutes. In 253 00:14:12,240 --> 00:14:15,480 Speaker 1: the NHL, the Islanders won global news twenty four hours 254 00:14:15,480 --> 00:14:18,480 Speaker 1: a day on air and on Bloomberg Quicktake, powered by 255 00:14:18,520 --> 00:14:22,680 Speaker 1: more than twenty seven under journalist analyst in more than countries. 256 00:14:22,840 --> 00:14:25,440 Speaker 1: Michael bar this is Bloomberg. Nathan. All right, Michael. Thanks, 257 00:14:25,440 --> 00:14:27,880 Speaker 1: It's five nineteen on Wall Street Live from the Bloomberg 258 00:14:27,880 --> 00:14:31,040 Speaker 1: Interactive Broker Studios. This is Bloomberg Daybreak because we continue 259 00:14:31,040 --> 00:14:33,720 Speaker 1: to follow the latest developments around Ukraine. Were joined by 260 00:14:33,760 --> 00:14:37,920 Speaker 1: Bloomberg's executive editor for International Government, Rosalind Matheson and ros 261 00:14:37,960 --> 00:14:40,240 Speaker 1: The latest development just crossed as a red headline on 262 00:14:40,240 --> 00:14:43,520 Speaker 1: the Bloomberg terminal moments ago. Ukraine is seeking to declare 263 00:14:43,520 --> 00:14:48,640 Speaker 1: a nationwide state of emergency. What do we know so far? Well, 264 00:14:48,640 --> 00:14:51,280 Speaker 1: that's right, we're just seeing this information come out now. 265 00:14:51,440 --> 00:14:55,239 Speaker 1: Any state emergency has to be approved by the parliament, 266 00:14:55,240 --> 00:14:59,240 Speaker 1: which could possibly happen pretty quickly, but one would allow 267 00:14:59,560 --> 00:15:04,960 Speaker 1: localuthorities to do if perhaps restrict movement of people very 268 00:15:05,040 --> 00:15:10,040 Speaker 1: much closer to Eastern Ukraine, for example, restrict mass gatherings 269 00:15:10,040 --> 00:15:13,520 Speaker 1: that could include protests, put kurfews on, and just generally 270 00:15:13,560 --> 00:15:16,640 Speaker 1: manage people a bit more closely in this time of 271 00:15:16,720 --> 00:15:19,920 Speaker 1: heightened tension with Russia. Of course, it comes after the 272 00:15:20,000 --> 00:15:24,320 Speaker 1: Russian president recognized those two self proclaimed the separatist republics 273 00:15:24,400 --> 00:15:27,520 Speaker 1: in Eastern Ukraine, and that gives him the right, he says, 274 00:15:27,600 --> 00:15:30,600 Speaker 1: to send troops into those areas if he decides to 275 00:15:30,760 --> 00:15:33,960 Speaker 1: do so so, Certainly you can see an escalation in 276 00:15:33,960 --> 00:15:37,480 Speaker 1: that area in the prospect that Ukrainian troops individuals could 277 00:15:37,520 --> 00:15:40,920 Speaker 1: be getting very close to Russian troops there before too long. Yeah, 278 00:15:40,920 --> 00:15:43,800 Speaker 1: and this is coming after the Ukrainian president up to now, 279 00:15:43,880 --> 00:15:47,120 Speaker 1: Vladimir z Olinsky, had been projecting sort of calm, trying 280 00:15:47,160 --> 00:15:50,960 Speaker 1: to keep tensions tamped down. Given that the President of 281 00:15:51,040 --> 00:15:54,960 Speaker 1: Russia has now recognized these republics and has the authorization 282 00:15:55,000 --> 00:15:58,200 Speaker 1: to move troops in. Is this idea that the nationwide 283 00:15:58,440 --> 00:16:01,360 Speaker 1: state of emergency declaration could be a sign that Ukraine 284 00:16:01,400 --> 00:16:07,280 Speaker 1: thinks that tensions could get even worse here. Well, that 285 00:16:07,400 --> 00:16:09,640 Speaker 1: the top line from the Ukrainian officials is still that 286 00:16:09,720 --> 00:16:12,240 Speaker 1: they don't think an invasion of their country by Russia 287 00:16:12,360 --> 00:16:15,320 Speaker 1: is imminent or even likely. They still say they don't 288 00:16:15,360 --> 00:16:18,440 Speaker 1: think that Russia has the troops in place to do so. 289 00:16:18,600 --> 00:16:21,960 Speaker 1: It's possibly also about just managing the mood and situation 290 00:16:22,480 --> 00:16:26,120 Speaker 1: at home and being able to keep people from danger 291 00:16:26,560 --> 00:16:31,320 Speaker 1: directly in those areas by restricting their movements, particularly at night. 292 00:16:31,840 --> 00:16:35,080 Speaker 1: It may not necessarily suggest that they believe in invasion 293 00:16:35,520 --> 00:16:38,680 Speaker 1: is likely or imminent, but it's also about just keeping 294 00:16:38,720 --> 00:16:41,720 Speaker 1: calm at home and getting people to stay in their 295 00:16:41,720 --> 00:16:45,080 Speaker 1: houses at nighttime. In particular, what if anything, could this 296 00:16:45,200 --> 00:16:48,880 Speaker 1: say about how Ukraine thinks that Russia will react to 297 00:16:48,920 --> 00:16:52,320 Speaker 1: this first round of sanctions that was announced yesterday by 298 00:16:52,360 --> 00:16:56,000 Speaker 1: President Biden, not just the U S sanctions, but the 299 00:16:56,000 --> 00:16:58,440 Speaker 1: penalties that we're seeing come out of Europe as well. 300 00:16:58,600 --> 00:17:01,800 Speaker 1: The Nord Stream to being halted seems like a pretty 301 00:17:01,840 --> 00:17:05,400 Speaker 1: big deal. That seemed to be the biggest one of all, 302 00:17:05,440 --> 00:17:07,920 Speaker 1: as you say, was the decision by the German government 303 00:17:08,000 --> 00:17:11,800 Speaker 1: to stop the certification process for that pipeline, which has 304 00:17:11,840 --> 00:17:15,040 Speaker 1: been delayed already for quite some time. But that's a 305 00:17:15,080 --> 00:17:18,280 Speaker 1: real tangible The other sanctions were pretty limited there on 306 00:17:18,800 --> 00:17:22,080 Speaker 1: banks and individuals, many of him are ready sanctioned, at 307 00:17:22,160 --> 00:17:25,560 Speaker 1: least by the US, and so the broader market impact 308 00:17:25,600 --> 00:17:29,400 Speaker 1: on that was limited. Even efforts to curtail Rusha's ability 309 00:17:29,440 --> 00:17:32,960 Speaker 1: to borrow an international market is limited. And so you 310 00:17:33,000 --> 00:17:35,840 Speaker 1: saw markets falling yesterday on that, but then bouncing back 311 00:17:35,880 --> 00:17:38,639 Speaker 1: pretty much by the afternoon and certainly in the US 312 00:17:38,760 --> 00:17:41,280 Speaker 1: hours on the view that the fall app from those 313 00:17:41,320 --> 00:17:44,480 Speaker 1: sanctions will be minimal at least for now. Of course, 314 00:17:44,520 --> 00:17:46,159 Speaker 1: all these countries are saying that if there is a 315 00:17:46,200 --> 00:17:49,600 Speaker 1: full scale invasion of Ukraine, they will respond with much 316 00:17:49,640 --> 00:17:53,040 Speaker 1: harsher penalties that could affect the Russian economy. At the 317 00:17:53,080 --> 00:17:56,680 Speaker 1: same time, we're also hearing from President Putin saying he's 318 00:17:56,720 --> 00:18:02,240 Speaker 1: still open to diplomatic channels being open. Here, what are 319 00:18:02,440 --> 00:18:05,879 Speaker 1: the diplomatic channels Given that we've just heard from the 320 00:18:05,920 --> 00:18:09,200 Speaker 1: Secretary of Steve Anthony Blinkoln that that plan meeting tomorrow 321 00:18:09,280 --> 00:18:14,200 Speaker 1: with Russian Foreign Minister laugh Raf is off. Now, it's 322 00:18:14,200 --> 00:18:16,760 Speaker 1: certainly hard to see where those channels are because also, 323 00:18:16,800 --> 00:18:19,000 Speaker 1: of course Russias is that it doesn't see their need 324 00:18:19,119 --> 00:18:23,840 Speaker 1: for a leaders summit anytime soon either, and France also 325 00:18:23,920 --> 00:18:26,359 Speaker 1: called off a plan meeting with the Russian Foreign minister 326 00:18:26,520 --> 00:18:29,560 Speaker 1: in Paris on Friday. So some of those top level 327 00:18:30,080 --> 00:18:33,159 Speaker 1: meetings are certainly having the door shut on them, and 328 00:18:33,200 --> 00:18:36,080 Speaker 1: the question is what's happening behind the scenes. There are 329 00:18:36,080 --> 00:18:38,960 Speaker 1: a number of countries that do have conduits both into 330 00:18:39,040 --> 00:18:42,560 Speaker 1: Russia and out. One in particular is Finland, which can 331 00:18:42,600 --> 00:18:45,920 Speaker 1: carry messages between either side. So even if the top 332 00:18:46,000 --> 00:18:49,160 Speaker 1: level public staff perhaps has closed it off. We we'd 333 00:18:49,160 --> 00:18:53,240 Speaker 1: imagine there's still ways to get communications to and from Russia, 334 00:18:53,280 --> 00:18:55,760 Speaker 1: and it's probably via Finland. All right, tell only about 335 00:18:55,760 --> 00:18:58,120 Speaker 1: thirty seconds left here, Rose, what's the next step you're 336 00:18:58,160 --> 00:19:03,320 Speaker 1: looking for? As this stit for tad apparently continues well 337 00:19:03,359 --> 00:19:05,600 Speaker 1: so far, the Russian president says that even though he 338 00:19:05,680 --> 00:19:07,920 Speaker 1: has given himself the right to send what he calls 339 00:19:07,960 --> 00:19:10,960 Speaker 1: peacekeepers into eastern Ukraine, he's not going to do that 340 00:19:11,359 --> 00:19:13,400 Speaker 1: but now so we need to watch closely to see 341 00:19:13,400 --> 00:19:15,840 Speaker 1: if that changes and at any point there are Russian 342 00:19:16,200 --> 00:19:20,920 Speaker 1: forces and tanks rolling into those disputed areas of eastern Ukraine. 343 00:19:21,080 --> 00:19:24,119 Speaker 1: Also the joint drills and b LARUSA continuing, do they 344 00:19:24,160 --> 00:19:25,840 Speaker 1: put a wrap on that at some point and pull 345 00:19:25,880 --> 00:19:28,320 Speaker 1: those forces that? Those are two things to keep watching for. 346 00:19:28,800 --> 00:19:30,960 Speaker 1: Thanks for this rise as always good to get the 347 00:19:31,040 --> 00:19:34,080 Speaker 1: very latest from you. Rosalind Mathieson, our executive editor for 348 00:19:34,119 --> 00:19:37,960 Speaker 1: International Government at Bloomberg News. As we continue to monitor 349 00:19:38,040 --> 00:19:42,200 Speaker 1: reaction to the latest development from the Ukraine, UH seeking 350 00:19:42,280 --> 00:19:46,160 Speaker 1: to declare a nationwide state of emergency following the first 351 00:19:46,240 --> 00:19:50,240 Speaker 1: round of sanctions imposed by the US against Russian banks 352 00:19:50,280 --> 00:19:54,560 Speaker 1: and individuals, will continue monitoring developments throughout the day Here 353 00:19:54,640 --> 00:19:57,800 Speaker 1: on Bloomberg Radio right now, SMP futures you're up thirty 354 00:19:57,880 --> 00:19:59,960 Speaker 1: four point STAW futures of two D twenty four and 355 00:20:00,040 --> 00:20:03,280 Speaker 1: NASTAC features are higher by a hundred sixty two points. 356 00:20:03,280 --> 00:20:09,680 Speaker 1: This is Bloomberg Bloomberg eleven three oh weather. Sunny, breezy, 357 00:20:09,760 --> 00:20:14,080 Speaker 1: mid sixties today, upper thirties tomorrow, with a wintry mess 358 00:20:14,119 --> 00:20:16,920 Speaker 1: possible tomorrow night, turning over into rain on Friday, with 359 00:20:17,000 --> 00:20:19,720 Speaker 1: highs in the low forties. Right now fifty eight degrees. 360 00:20:22,119 --> 00:20:26,640 Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 361 00:20:26,760 --> 00:20:30,560 Speaker 1: Bloomberg E Living Freedom to Washington, d C, Bloomberg on 362 00:20:30,840 --> 00:20:34,040 Speaker 1: to Boston, Bloomberg one O six one to San Francisco, 363 00:20:34,119 --> 00:20:37,600 Speaker 1: Bloomberg nine six to the country, Sirius XM Cho one 364 00:20:37,640 --> 00:20:40,560 Speaker 1: nine team, and around the globe, the Bloomberg Business app 365 00:20:40,720 --> 00:20:50,520 Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's 366 00:20:50,560 --> 00:20:52,840 Speaker 1: five thirty on Wall Street. Good morning. I'm Nathan Hagar 367 00:20:53,119 --> 00:20:55,840 Speaker 1: and I'm Karin Moscow or just about four hours away 368 00:20:55,840 --> 00:20:57,800 Speaker 1: from the open of US trading. Let's get you up 369 00:20:57,840 --> 00:20:59,240 Speaker 1: to date on the news you need to know at 370 00:20:59,240 --> 00:21:02,080 Speaker 1: this hour would be again. With the latest developments on Ukraine, 371 00:21:02,400 --> 00:21:05,480 Speaker 1: the country plans to declare a nationwide state of emergency 372 00:21:05,520 --> 00:21:08,560 Speaker 1: as tensions with Russia mount and President Biden says he 373 00:21:08,680 --> 00:21:11,320 Speaker 1: is raising the number of military forces in the region. 374 00:21:11,560 --> 00:21:14,680 Speaker 1: To get the very latest from Bloomberg, said Baxter, President 375 00:21:14,760 --> 00:21:17,560 Speaker 1: Biden says he has no plans to fight Russia militarily 376 00:21:17,680 --> 00:21:20,240 Speaker 1: in Ukraine, but the red line is at the boundaries 377 00:21:20,240 --> 00:21:23,359 Speaker 1: of NATO countries. I have authorized additional movements of U 378 00:21:23,400 --> 00:21:27,600 Speaker 1: S forces and equipment already stationed in Europe to strengthen 379 00:21:27,600 --> 00:21:32,000 Speaker 1: our Baldic allies Stone, Latvia, Lithuania. Meanwhile, the first sanctions 380 00:21:32,000 --> 00:21:34,520 Speaker 1: White House folks, when John Psaki says, are just the 381 00:21:34,520 --> 00:21:38,760 Speaker 1: first step. Their designed to have a squeezing impact over 382 00:21:38,800 --> 00:21:41,160 Speaker 1: the course of time. And we have many more escalatory 383 00:21:41,200 --> 00:21:43,480 Speaker 1: steps that we could take. And they say no future 384 00:21:43,480 --> 00:21:46,800 Speaker 1: talks with Russia are planned. In San Francisco, I'm at 385 00:21:46,800 --> 00:21:49,880 Speaker 1: Baxter Bloomberg daybreak, All right, ed, thank you. President Biden's 386 00:21:49,920 --> 00:21:52,280 Speaker 1: first round of sanctions on Russia hit the markets with 387 00:21:52,359 --> 00:21:56,320 Speaker 1: a whimper. Global stocks are rising this morning after yesterday's slumps. 388 00:21:56,320 --> 00:21:59,520 Speaker 1: On the SMP five hundred clothes in correction territory down 389 00:21:59,520 --> 00:22:02,560 Speaker 1: ten per scent from its January highs. Still, the next 390 00:22:02,680 --> 00:22:05,040 Speaker 1: round of sanctions could bite a bit harder. That's according 391 00:22:05,040 --> 00:22:08,400 Speaker 1: to Saxo Bank Chief Investment Officer Stean Jacobson. The next 392 00:22:08,440 --> 00:22:11,120 Speaker 1: step off from this will be very serious in terms 393 00:22:11,119 --> 00:22:14,400 Speaker 1: of the issues of that and the connection inside to 394 00:22:14,400 --> 00:22:16,879 Speaker 1: to Russia. As someone who goes to Russia, I know 395 00:22:17,000 --> 00:22:20,320 Speaker 1: the Russians of course live with this, but I also 396 00:22:20,400 --> 00:22:23,400 Speaker 1: know that the business people that I know when talked 397 00:22:23,400 --> 00:22:26,440 Speaker 1: to in Russia are certainly impacted by this and field 398 00:22:26,480 --> 00:22:28,920 Speaker 1: this is a constrained on the way to do business. 399 00:22:29,080 --> 00:22:32,080 Speaker 1: Stean Jacobson at Saxo Bank says the Federal Reserve should 400 00:22:32,080 --> 00:22:34,879 Speaker 1: still be the primary focus for markets right now. On 401 00:22:34,920 --> 00:22:37,439 Speaker 1: the earnings front, this morning, Nathan shares it Barclays up 402 00:22:37,440 --> 00:22:39,959 Speaker 1: more than two percent, the British bank posting its highest 403 00:22:39,960 --> 00:22:42,640 Speaker 1: annual profit on record, and we're also watching Apple shares 404 00:22:42,640 --> 00:22:45,320 Speaker 1: in the pre market. They're hired by nearly one percent. Karen, 405 00:22:45,359 --> 00:22:48,400 Speaker 1: the iPhone maker, dropped its mask requirement for customers at 406 00:22:48,400 --> 00:22:52,000 Speaker 1: most US retail stores. That follows reduced COVID cases and 407 00:22:52,080 --> 00:22:55,480 Speaker 1: changes in local mandates. Apples staff will still be required 408 00:22:55,520 --> 00:22:58,680 Speaker 1: to wear masks, and in Hong Kong, HSBC City Group 409 00:22:58,720 --> 00:23:01,480 Speaker 1: and Bank of China say they will temporarily close all 410 00:23:01,520 --> 00:23:05,000 Speaker 1: of their retail branches on Saturday's beginning in March. The 411 00:23:05,040 --> 00:23:07,760 Speaker 1: move comes as Hong Kong scrambles to contain its worst 412 00:23:07,760 --> 00:23:11,800 Speaker 1: outbreak of COVID, and futures this morning are on the rise. 413 00:23:12,000 --> 00:23:14,840 Speaker 1: SMP futures have thirty three points and down futures have 414 00:23:14,840 --> 00:23:19,600 Speaker 1: two hundred nine NASDACK futures have one ten year treasury 415 00:23:19,720 --> 00:23:22,640 Speaker 1: down eight thirty seconds, yield one point nine six percent 416 00:23:22,720 --> 00:23:25,200 Speaker 1: and a yield on the two year one point six 417 00:23:25,280 --> 00:23:28,600 Speaker 1: zero percent. The euro one point one three five four 418 00:23:28,640 --> 00:23:31,520 Speaker 1: against the dollars. Straight ahead, your latest local headlines plus 419 00:23:31,560 --> 00:23:39,040 Speaker 1: a check of sports. This is Bloomberg, all right, Karen. 420 00:23:39,080 --> 00:23:41,920 Speaker 1: Thanks three On Wall Street, fifty nine degrees in Central Park, 421 00:23:42,000 --> 00:23:45,200 Speaker 1: stilldily with an accident investigation on Route twenty. It's closed 422 00:23:45,200 --> 00:23:48,240 Speaker 1: in Patterson. Details coming up in traffic. First Michael Barr 423 00:23:48,240 --> 00:23:49,720 Speaker 1: with Moore on what's going on in New York and 424 00:23:49,840 --> 00:23:52,360 Speaker 1: around the world. Michael, thank you very much. Nathan. Tensions 425 00:23:52,440 --> 00:23:55,560 Speaker 1: between Russia and the West over Ukraine have led New 426 00:23:55,680 --> 00:23:59,640 Speaker 1: York State to tackling cyber security. Governor Kathy Hoakel says 427 00:23:59,680 --> 00:24:02,840 Speaker 1: the state will set aside almost sixty two million dollars 428 00:24:02,920 --> 00:24:06,919 Speaker 1: in the three budget for a joint security operations center 429 00:24:07,000 --> 00:24:10,120 Speaker 1: to help combat cyber attacks in the state. We can 430 00:24:10,160 --> 00:24:13,480 Speaker 1: no longer act independently, and that has been the case 431 00:24:14,000 --> 00:24:16,840 Speaker 1: where the State of New York has its plan, City 432 00:24:16,880 --> 00:24:19,720 Speaker 1: of New York has a plan, our mayors, our local 433 00:24:19,760 --> 00:24:22,480 Speaker 1: governments throughout the State of New York, and that is 434 00:24:22,520 --> 00:24:25,600 Speaker 1: not sustainable in light of the threats that we're seeing. 435 00:24:25,960 --> 00:24:29,520 Speaker 1: Governor Hocle says, the operations center will open in Brooklyn, 436 00:24:29,760 --> 00:24:32,880 Speaker 1: New York. Mayor Eric Adams and if we don't get 437 00:24:32,880 --> 00:24:39,120 Speaker 1: a handle on cybersecurity, what COVID did to our bodies, 438 00:24:39,560 --> 00:24:43,399 Speaker 1: cybersecurity is going to disrupt the anatomy of our city 439 00:24:43,600 --> 00:24:47,919 Speaker 1: and our state, and it's imperative that we took a forefront, 440 00:24:48,000 --> 00:24:51,840 Speaker 1: forward faking view of this. Mayor Adams was joined by 441 00:24:51,960 --> 00:24:55,520 Speaker 1: other mayors in the state for Governor Hocle's announcement. The 442 00:24:55,600 --> 00:24:59,520 Speaker 1: Pentagon has approved the deployment of hundreds of unarmed National 443 00:24:59,600 --> 00:25:02,920 Speaker 1: Guards troops to Washington, d C. The city is preparing 444 00:25:02,960 --> 00:25:07,440 Speaker 1: for trucker convoys that are planning protests against pandemic restrictions 445 00:25:07,440 --> 00:25:10,199 Speaker 1: beginning next week. The Pentagon says the troops will be 446 00:25:10,280 --> 00:25:14,200 Speaker 1: used to assist with traffic control. Some California truck drivers 447 00:25:14,320 --> 00:25:17,560 Speaker 1: planned to head to Washington, d C. This driver says 448 00:25:17,560 --> 00:25:20,399 Speaker 1: he expects they will gain support along the way. We 449 00:25:20,520 --> 00:25:23,800 Speaker 1: expect the convoy to grow by the thousands, and I 450 00:25:23,800 --> 00:25:25,680 Speaker 1: would imagine by the time we get to d C, 451 00:25:25,840 --> 00:25:28,360 Speaker 1: there will be tens of thousands of people that are 452 00:25:28,400 --> 00:25:30,480 Speaker 1: involved in this movement by the time we get there. 453 00:25:30,800 --> 00:25:34,640 Speaker 1: The convoys follow the recent Canadian truncker's protest of government 454 00:25:34,680 --> 00:25:38,160 Speaker 1: pandemic restrictions. President Joe Biden has said to have interviewed 455 00:25:38,200 --> 00:25:41,639 Speaker 1: at least three candidates for his Supreme Court nomination. ABC 456 00:25:41,840 --> 00:25:46,280 Speaker 1: reports on his shortlist, Katangi Brown, Jackson, Leandra Krueger, and 457 00:25:46,400 --> 00:25:50,040 Speaker 1: j Michelle Childs. Global News twenty four hours a day 458 00:25:50,160 --> 00:25:52,640 Speaker 1: on air and on Bloomberg Quick Take, powered by more 459 00:25:52,840 --> 00:25:55,520 Speaker 1: than twenty seven journalist and analysts more than a hundred 460 00:25:55,520 --> 00:25:58,960 Speaker 1: twenty countries. I'm Michael barn This is Bloomberg. Nathan. Thanks 461 00:25:59,000 --> 00:26:06,560 Speaker 1: Michael wall Street. Time for the Bloomberg Sports Update with 462 00:26:06,640 --> 00:26:09,000 Speaker 1: John Stashowen. All right, Nathan, This is always slow time 463 00:26:09,040 --> 00:26:12,040 Speaker 1: on the sports calendar, but usually there is spring training 464 00:26:12,080 --> 00:26:15,120 Speaker 1: in the anticipation that brings. Instead, we have a lockout, 465 00:26:15,119 --> 00:26:17,840 Speaker 1: and all the two sides have been meeting scenes. Each 466 00:26:17,840 --> 00:26:21,160 Speaker 1: bargaining session does not bring about any real progress. Sometime 467 00:26:21,240 --> 00:26:23,840 Speaker 1: next week they need a labor deal or they'll announced 468 00:26:23,840 --> 00:26:25,359 Speaker 1: the season is not going to start on time. The 469 00:26:25,440 --> 00:26:27,879 Speaker 1: Yankees did make an announcement one that a lot of 470 00:26:27,880 --> 00:26:30,040 Speaker 1: fans have been waiting for. No one has warned Number 471 00:26:30,040 --> 00:26:32,800 Speaker 1: twenty one since Paul O'Neill retired in two thousand one. 472 00:26:33,040 --> 00:26:36,800 Speaker 1: The Yanks will officially retire it on appropriately August twenty one. 473 00:26:37,000 --> 00:26:39,040 Speaker 1: O'Neill played eight years in the Yankee outfield and became 474 00:26:39,080 --> 00:26:43,000 Speaker 1: a broadcaster. Twenty three number the yankst retired islander is 475 00:26:43,040 --> 00:26:47,480 Speaker 1: starting a five game road trip. First stop, Seattle Mayfield, 476 00:26:47,480 --> 00:26:54,320 Speaker 1: set point quite right on purpose rebounds What a beautiful play. Hey, 477 00:26:54,560 --> 00:26:57,600 Speaker 1: you're missing the net wide on purpose, So that's se 478 00:26:57,600 --> 00:27:00,159 Speaker 1: Skis could dig it in from the right there he 479 00:27:00,200 --> 00:27:04,640 Speaker 1: six four nothing. New York's epn Aisles won five to 480 00:27:04,640 --> 00:27:07,160 Speaker 1: to get his game under five hundreds. Big East Y've 481 00:27:07,200 --> 00:27:10,000 Speaker 1: gone by two over Villanova, who had beaten the Huspies 482 00:27:10,040 --> 00:27:12,879 Speaker 1: five straight times. Yukon one without its coach Dan Hurley 483 00:27:12,920 --> 00:27:16,000 Speaker 1: got ejected on the first half. Conflicting reports on when 484 00:27:16,080 --> 00:27:18,680 Speaker 1: Ben Simmons will make his Nets debut, some that it 485 00:27:18,720 --> 00:27:20,720 Speaker 1: will be soon and other that it could still be 486 00:27:20,760 --> 00:27:23,639 Speaker 1: weeks away. Simmons needs to ramp up, having not played 487 00:27:23,640 --> 00:27:26,960 Speaker 1: since last May reacted for Aaron Rodgers to that cryptic 488 00:27:27,040 --> 00:27:29,680 Speaker 1: Instagram post where he seemed to talk about his years 489 00:27:29,680 --> 00:27:32,000 Speaker 1: in Green Bay in the past tense. He said people 490 00:27:32,040 --> 00:27:34,280 Speaker 1: shouldn't read too much into it, that he was just 491 00:27:34,320 --> 00:27:38,639 Speaker 1: in a reflective mood after being in a twelve day cleans, 492 00:27:38,800 --> 00:27:41,120 Speaker 1: that he's the biggest question in the NFL offseason. Will 493 00:27:41,200 --> 00:27:43,560 Speaker 1: Rogers stayed with the Packers get traded? Here for all 494 00:27:43,560 --> 00:27:47,360 Speaker 1: the side don stash were Bloomberg's stay staking long cleans. 495 00:27:47,640 --> 00:27:50,159 Speaker 1: Thank you John seven on Wall Street time for the 496 00:27:50,200 --> 00:27:53,840 Speaker 1: Tri State Business Report with Bloomberg's dead. Cory Queens has 497 00:27:53,880 --> 00:27:57,160 Speaker 1: four of the city's top five neighborhoods where homebuyers get 498 00:27:57,240 --> 00:28:00,399 Speaker 1: the most space for their money, according to easy Street. 499 00:28:00,960 --> 00:28:04,720 Speaker 1: Ranking first is briar Wood. The median asking price for 500 00:28:04,760 --> 00:28:07,640 Speaker 1: a square foot was three hundred thirty nine dollars last month. 501 00:28:08,080 --> 00:28:10,639 Speaker 1: The only place outside Queens and the top five was 502 00:28:10,720 --> 00:28:15,240 Speaker 1: Brooklyn's Brownsville three forty eight dollars a square foot. Big 503 00:28:15,280 --> 00:28:18,479 Speaker 1: cities are beaving up security in response to an uptick 504 00:28:18,480 --> 00:28:22,840 Speaker 1: in violent crime by hiring police officers. In New York, 505 00:28:22,840 --> 00:28:26,760 Speaker 1: off City officers have long stood guard outside private businesses, 506 00:28:27,280 --> 00:28:30,200 Speaker 1: but after the pandemic hits, spending for the paid detailed 507 00:28:30,200 --> 00:28:33,000 Speaker 1: program shot up to its highest amount in more than 508 00:28:33,040 --> 00:28:37,680 Speaker 1: a decade. Delta Airlines rebuilt Terminal C, expected to open 509 00:28:37,720 --> 00:28:41,320 Speaker 1: this spring, will be defined by six do large scale, 510 00:28:41,680 --> 00:28:46,600 Speaker 1: site specific permanent artworks. That's your Bloomberg cry State Business Report. 511 00:28:46,760 --> 00:28:49,640 Speaker 1: I'm in Corey, Thank you, ad. It's eight on Wall Street. 512 00:28:49,640 --> 00:28:52,000 Speaker 1: Bloomberg Radio is on the air from San Francisco to 513 00:28:52,040 --> 00:28:54,400 Speaker 1: New York, London to Hong Kong. Let's check in with 514 00:28:54,440 --> 00:28:56,360 Speaker 1: our global news team for some of the top stories 515 00:28:56,360 --> 00:28:59,280 Speaker 1: heard on our three hundred affiliate radio stations around the world. 516 00:29:02,160 --> 00:29:05,160 Speaker 1: I'm Steve potoskan On ten Chen Wins in New York. 517 00:29:05,200 --> 00:29:09,040 Speaker 1: We're talking about Goldman Sacks seeking the clawback bonuses for 518 00:29:09,160 --> 00:29:13,200 Speaker 1: executives who leaves the company. I'm John Tucker Report, Katie R. 519 00:29:13,400 --> 00:29:16,200 Speaker 1: H in Houston. I'm reporting that Texas is emerging as 520 00:29:16,480 --> 00:29:20,320 Speaker 1: solar powers next frontier. I'm Caroline Headcom Blue Bag, d 521 00:29:20,360 --> 00:29:23,000 Speaker 1: A B, Disul, Medium and Long the Rocord Com Bartley's 522 00:29:23,120 --> 00:29:26,920 Speaker 1: record annual profit as bank takes action on former CEO 523 00:29:27,040 --> 00:29:30,960 Speaker 1: jeff Daily's show awards due to ongoing probes into his tie. 524 00:29:31,080 --> 00:29:35,240 Speaker 1: Jeffrey Epstein im D Corey on w w J in Detroit. 525 00:29:35,440 --> 00:29:39,480 Speaker 1: I'm reporting gm Ford in Testla drop sharply Tuesday on 526 00:29:39,640 --> 00:29:43,040 Speaker 1: concerns about Ukraine. And those are some of the stories 527 00:29:43,080 --> 00:29:46,800 Speaker 1: our Bloomberg journalist and analysts working on this morning around 528 00:29:46,840 --> 00:29:49,360 Speaker 1: the world. It's five thirty nine on Wall Street. The 529 00:29:49,400 --> 00:29:54,080 Speaker 1: following is an editorial from Bloomberg Opinion. This editorial was 530 00:29:54,160 --> 00:29:58,680 Speaker 1: written by the Bloomberg Editorial Board. There's plenty of blame 531 00:29:58,800 --> 00:30:03,200 Speaker 1: to go around for America's gun violence epidemic, but an 532 00:30:03,200 --> 00:30:08,080 Speaker 1: important development this month looks like a belated victory for accountability. 533 00:30:08,560 --> 00:30:12,719 Speaker 1: Last week, gunmaker Remington Arms, the manufacturer of the weapon 534 00:30:12,880 --> 00:30:16,400 Speaker 1: used in the two thousand twelve mass shooting at Sandy 535 00:30:16,400 --> 00:30:20,239 Speaker 1: Hook Elementary School, agreed to settle a lawsuit brought by 536 00:30:20,280 --> 00:30:24,320 Speaker 1: the families of nine victims for seventy three million dollars 537 00:30:24,800 --> 00:30:28,040 Speaker 1: The suit was the first successful legal action of its 538 00:30:28,120 --> 00:30:32,560 Speaker 1: kind since two thousand five, when Congress passed a controversial 539 00:30:32,600 --> 00:30:38,120 Speaker 1: shield law granting gun manufacturers broad immunity from civil liability. 540 00:30:38,160 --> 00:30:41,760 Speaker 1: For too many years, lobbyists have succeeded in blocking almost 541 00:30:41,800 --> 00:30:46,680 Speaker 1: all attempts to curb gun violence. Hopefully this breakthrough presages 542 00:30:46,880 --> 00:30:50,440 Speaker 1: the beginning of a new era. This editorial was written 543 00:30:50,480 --> 00:30:54,640 Speaker 1: by the Bloomberg Editorial Board. For more Bloomberg opinion, please 544 00:30:54,640 --> 00:30:57,760 Speaker 1: go to Bloomberg dot com slash opinion or O P 545 00:30:58,040 --> 00:31:00,760 Speaker 1: I n go on the Bloomberg term it all. This 546 00:31:01,040 --> 00:31:04,040 Speaker 1: has been Bloomberg opinion, and you can hear Bloomberg opinion 547 00:31:04,120 --> 00:31:07,720 Speaker 1: editorials every weekday. At this time, terminal customers can read 548 00:31:07,760 --> 00:31:11,120 Speaker 1: more at O P I n go, SMP futures up 549 00:31:11,160 --> 00:31:13,840 Speaker 1: thirty four point staff futures of tune or twenty nastic 550 00:31:13,960 --> 00:31:17,360 Speaker 1: futures higher by a hundred sixty three points. You're listening 551 00:31:17,400 --> 00:31:24,720 Speaker 1: to Bloomberg Daybreak Bloomberg eleven three oh Weather partly sunny, breezy, 552 00:31:24,760 --> 00:31:28,320 Speaker 1: mid sixties today, will get only into the upper thirties tomorrow, 553 00:31:28,320 --> 00:31:31,360 Speaker 1: with a wintry mess possible tomorrow night. Rain on Friday 554 00:31:31,360 --> 00:31:33,640 Speaker 1: with highs and the low forties right now fifty nine 555 00:31:33,640 --> 00:31:40,120 Speaker 1: in Central Park markets. Headlines and breaking news twenty four 556 00:31:40,160 --> 00:31:43,200 Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business 557 00:31:43,200 --> 00:31:46,880 Speaker 1: apt and at Bloomberg Quicktake. This is a Bloomberg Business 558 00:31:46,880 --> 00:31:56,960 Speaker 1: Flash and I'm Karen Moscow. European equities are rising along 559 00:31:56,960 --> 00:32:00,040 Speaker 1: with US stock index futures as investors assess and a 560 00:32:00,040 --> 00:32:04,480 Speaker 1: minute initial Western sanctions against Russia amid the Ukraine standoff. 561 00:32:04,480 --> 00:32:06,560 Speaker 1: And we checked the markets every fifteen minutes throughout the 562 00:32:06,600 --> 00:32:09,719 Speaker 1: trading day on Bloomberg. Right now, SMP futures are up 563 00:32:09,720 --> 00:32:13,280 Speaker 1: thirty points down futures have two hundred four NASTAC futures 564 00:32:13,280 --> 00:32:16,080 Speaker 1: have one hundred thirty nine. The decks in Germany's up 565 00:32:16,080 --> 00:32:18,800 Speaker 1: about eight tenths of upper set ten year treasury down 566 00:32:18,800 --> 00:32:21,240 Speaker 1: seven thirty seconds, held one point nine six per cent 567 00:32:21,560 --> 00:32:24,040 Speaker 1: yield on the two year one point five nine percent. 568 00:32:24,480 --> 00:32:26,760 Speaker 1: Nine Max Screwed oil is down six tenths percent or 569 00:32:26,800 --> 00:32:29,280 Speaker 1: fifty seven cents at ninety one dollar thirty four cents. 570 00:32:29,320 --> 00:32:31,840 Speaker 1: Of Barrel Comic School there is down half percent or 571 00:32:31,880 --> 00:32:35,200 Speaker 1: ten dollars twenty cents at eighteen ninety seven twenty announced 572 00:32:35,280 --> 00:32:38,160 Speaker 1: the euro one point one three five five against the dollar. 573 00:32:38,240 --> 00:32:41,040 Speaker 1: British found one point three five nine three and again 574 00:32:41,160 --> 00:32:44,440 Speaker 1: is at one fifteen point oh seven bitcoin this morning, 575 00:32:44,520 --> 00:32:47,200 Speaker 1: moving higher at thirty eight thousand, eight hundred eighty dollars. 576 00:32:47,480 --> 00:32:50,000 Speaker 1: That's a Bloomberg Business flash. Now here's Michael Barr with 577 00:32:50,120 --> 00:32:53,720 Speaker 1: more on what's going on around the world. Buchael Karen, 578 00:32:53,760 --> 00:32:56,680 Speaker 1: thank you very much. Ukraine will see to impose an 579 00:32:56,680 --> 00:32:59,520 Speaker 1: ancient wife state of emergency over the rising tensions with 580 00:32:59,560 --> 00:33:02,640 Speaker 1: the Russia. Him. It comes after Vladimir Putin moved what 581 00:33:02,760 --> 00:33:06,960 Speaker 1: he called peacekeeping troops into Ukraine. President Biden as imposed 582 00:33:06,960 --> 00:33:11,640 Speaker 1: stricter sanctions against Russian banks, business elites, and their families. 583 00:33:12,040 --> 00:33:15,920 Speaker 1: Senior Biden administration officials say the Transportation Department is a 584 00:33:15,960 --> 00:33:19,120 Speaker 1: warning about four hundred fifty million dollars in grants for 585 00:33:19,360 --> 00:33:23,320 Speaker 1: port related projects to ulster capacity and improved the movement 586 00:33:23,480 --> 00:33:26,520 Speaker 1: of goods. The U S economy continues to be affected 587 00:33:26,600 --> 00:33:30,320 Speaker 1: by congested supply chains in the NHL. The Islanders won 588 00:33:30,720 --> 00:33:33,440 Speaker 1: global news twenty four hours a day on air and 589 00:33:33,640 --> 00:33:37,000 Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred 590 00:33:37,040 --> 00:33:39,520 Speaker 1: journalists and analysts, are more than a hundred twenty countries. 591 00:33:39,760 --> 00:33:42,520 Speaker 1: I'm Michael Barr, and this is Bloomberg. Nathan Okay, Michael, 592 00:33:42,560 --> 00:33:44,280 Speaker 1: thank you. We're coming up to five forty nine on 593 00:33:44,360 --> 00:33:47,560 Speaker 1: Wall Street Live from the Bloomberg Interactive Broker Studios. This 594 00:33:47,760 --> 00:33:50,760 Speaker 1: is Bloomberg Daybreak and we're joined now by Daniel Morris, 595 00:33:50,880 --> 00:33:55,000 Speaker 1: chief market strategist at BNP Party by Asset Management. Daniel, 596 00:33:55,000 --> 00:33:56,880 Speaker 1: it's good to speak with you this morning. After the 597 00:33:57,080 --> 00:34:01,240 Speaker 1: S and P fell into a correction on the president's 598 00:34:01,400 --> 00:34:04,880 Speaker 1: sanctions announcement this morning, seeing a bounce back, do you 599 00:34:05,000 --> 00:34:07,320 Speaker 1: think this market's found bottom or could it have further 600 00:34:07,400 --> 00:34:12,800 Speaker 1: to fall? I think it'd be quite brave to to 601 00:34:12,960 --> 00:34:14,680 Speaker 1: predict what's going to happen in terms of the market 602 00:34:14,719 --> 00:34:19,840 Speaker 1: reactions and it because inherently with political events, essentially by definition, 603 00:34:19,840 --> 00:34:22,600 Speaker 1: they're impossible to predict and impossible to time. So we're 604 00:34:22,640 --> 00:34:25,120 Speaker 1: more in await and c mode to the point where 605 00:34:25,160 --> 00:34:27,000 Speaker 1: we get a bit more clearly about how things are 606 00:34:27,360 --> 00:34:29,319 Speaker 1: are going to progress. So to say here that it's 607 00:34:29,360 --> 00:34:32,320 Speaker 1: necessarily bottom, I think would would not be prudent. So 608 00:34:32,760 --> 00:34:35,680 Speaker 1: what range are you looking for for the SMP five 609 00:34:36,160 --> 00:34:39,600 Speaker 1: right now? We don't necessarily have a range of mind. 610 00:34:39,640 --> 00:34:42,120 Speaker 1: But I think it is worth keeping in mind that 611 00:34:42,200 --> 00:34:45,839 Speaker 1: when you do have a political upsets, you do tend 612 00:34:45,960 --> 00:34:49,320 Speaker 1: number one, to get quite quick and quite strong reactions 613 00:34:49,400 --> 00:34:51,759 Speaker 1: from the markets that at some point do reverse. But 614 00:34:51,880 --> 00:34:55,520 Speaker 1: it's knowing when that that reversal point comes that's the challenge. 615 00:34:55,880 --> 00:34:57,759 Speaker 1: But at this point, if you know, if we saw 616 00:34:57,840 --> 00:35:01,640 Speaker 1: another percentage points down than the range of volatility that 617 00:35:01,719 --> 00:35:05,080 Speaker 1: we have, that certainly would be in line with previous experiences. 618 00:35:05,480 --> 00:35:08,120 Speaker 1: So are you looking for further volatility based on what's 619 00:35:08,160 --> 00:35:11,800 Speaker 1: happening right now? That's all about the one thing we 620 00:35:11,840 --> 00:35:13,960 Speaker 1: can say for sure that we're going to get. Uh, 621 00:35:14,239 --> 00:35:16,680 Speaker 1: you know, I think it is a reasonable assumption that 622 00:35:16,719 --> 00:35:18,480 Speaker 1: it will take a while for this to play out, 623 00:35:18,960 --> 00:35:21,600 Speaker 1: And with the swings and news and sentiment that we've 624 00:35:21,640 --> 00:35:24,400 Speaker 1: already had over the last days and weeks, I think 625 00:35:24,440 --> 00:35:27,600 Speaker 1: we do anticipate that continuing. So volatility is probably the 626 00:35:27,640 --> 00:35:29,879 Speaker 1: one certainty out of us. Do you think this market 627 00:35:30,000 --> 00:35:32,080 Speaker 1: volatility is the kind of thing that shakes the FED 628 00:35:32,160 --> 00:35:36,640 Speaker 1: from its rate path? I think what's really going to 629 00:35:36,719 --> 00:35:39,120 Speaker 1: matter more is, you know, to what be you see 630 00:35:39,160 --> 00:35:41,799 Speaker 1: to pass through in inflation, And if we look at 631 00:35:41,840 --> 00:35:44,320 Speaker 1: what's happened with bond yields, either with boon yields or 632 00:35:44,320 --> 00:35:47,600 Speaker 1: with treasury yields. I think it hints at why it's 633 00:35:47,640 --> 00:35:50,279 Speaker 1: not so clear how those markets in particular react to 634 00:35:50,360 --> 00:35:52,680 Speaker 1: the situation. You know, on one hand that you would 635 00:35:52,680 --> 00:35:55,960 Speaker 1: anticipate kind of a flight to safety, UH this being 636 00:35:56,000 --> 00:35:57,880 Speaker 1: a risk off move and a rallying boon yields and 637 00:35:57,920 --> 00:35:59,440 Speaker 1: treasury yields. But on there the hand, of course, we 638 00:35:59,480 --> 00:36:01,759 Speaker 1: had to think about the impact on inflation through our 639 00:36:01,880 --> 00:36:03,560 Speaker 1: all prices. So I think that's what they're going to 640 00:36:03,600 --> 00:36:08,000 Speaker 1: be focusing on to assess how sustained the increases. You know, 641 00:36:08,040 --> 00:36:10,640 Speaker 1: if things, of course, ideally are resolved quickly, then you 642 00:36:10,640 --> 00:36:13,680 Speaker 1: would anticipate all prices would come back down. But it 643 00:36:13,800 --> 00:36:15,480 Speaker 1: is going to be that inflation element that's going to 644 00:36:15,560 --> 00:36:19,600 Speaker 1: really trigger their decisions. What's your expectation on what the 645 00:36:19,719 --> 00:36:22,840 Speaker 1: FEDS path is at this point? Do you think we 646 00:36:22,920 --> 00:36:25,479 Speaker 1: could see an aggressive move next month? And what about 647 00:36:25,480 --> 00:36:29,759 Speaker 1: the rest of the year. We do actually anticipate UH 648 00:36:30,719 --> 00:36:32,680 Speaker 1: hikes at most of the meetings for next year, but 649 00:36:32,800 --> 00:36:34,880 Speaker 1: you know, that's in fact what the market has already 650 00:36:34,920 --> 00:36:37,880 Speaker 1: priced in. But I think do realize that the inflationary 651 00:36:37,880 --> 00:36:40,879 Speaker 1: pressure is clearly stronger and longer than they anticipated. That's 652 00:36:40,880 --> 00:36:44,360 Speaker 1: going to necessitate a more aggressive response. Uh, And I 653 00:36:44,440 --> 00:36:47,200 Speaker 1: think they're going to be focusing primarily on the US 654 00:36:47,280 --> 00:36:50,279 Speaker 1: labor market and the impact of that on wages and 655 00:36:50,360 --> 00:36:53,760 Speaker 1: then on inflation, more necessarily than what's happening in Europe. 656 00:36:54,120 --> 00:36:56,640 Speaker 1: Are you looking for a risk of an energy shock 657 00:36:56,680 --> 00:36:59,640 Speaker 1: given where we are with oil prices right now and 658 00:36:59,760 --> 00:37:05,320 Speaker 1: that spilling over into equity markets, I'm not necessarily, And 659 00:37:05,400 --> 00:37:08,160 Speaker 1: I think the risk clearly is more in Europe than 660 00:37:08,239 --> 00:37:10,040 Speaker 1: it is going to be in the US, So if 661 00:37:10,120 --> 00:37:12,200 Speaker 1: we are a bit more cautious, it would likely be 662 00:37:12,320 --> 00:37:15,440 Speaker 1: more in European equities necessarily on US equities. I mean, 663 00:37:15,480 --> 00:37:18,080 Speaker 1: certainly you've had a big rally in all prices, but 664 00:37:18,280 --> 00:37:21,120 Speaker 1: you know, a commensurate increase from here to the point 665 00:37:21,200 --> 00:37:23,640 Speaker 1: that it would really start to in fact growth, you know, 666 00:37:23,880 --> 00:37:26,040 Speaker 1: always a possibility, but we think that's a fairly low 667 00:37:26,120 --> 00:37:28,919 Speaker 1: probability scenario at this point. So in our last thirty 668 00:37:29,000 --> 00:37:32,799 Speaker 1: seconds here, what are you looking for? Any potential contagion 669 00:37:32,920 --> 00:37:36,920 Speaker 1: risk from sanctions on Russias spilling over into other emerging markets? 670 00:37:38,800 --> 00:37:40,759 Speaker 1: Not likely? I mean, so far you know that the 671 00:37:40,840 --> 00:37:43,200 Speaker 1: sanctions certainly have been quite targeted, and you would anticipate 672 00:37:43,280 --> 00:37:45,840 Speaker 1: that would would be targeted in the future. So I 673 00:37:45,920 --> 00:37:48,160 Speaker 1: think at this point, you know, there are concerns about 674 00:37:48,160 --> 00:37:51,839 Speaker 1: emerging markets, say with US rates rising, and I think 675 00:37:51,880 --> 00:37:53,919 Speaker 1: that's going to be the foremost thing in investor's lines 676 00:37:53,960 --> 00:37:57,359 Speaker 1: as opposed to necessarily a spill over from Russia. Thanks 677 00:37:57,440 --> 00:37:59,839 Speaker 1: as always, good having your thoughts this morning, Daniel Moore, 678 00:38:00,120 --> 00:38:04,240 Speaker 1: chief market strategist at BNP Party bo Asset Management. Karen 679 00:38:04,760 --> 00:38:07,040 Speaker 1: Nathan at his fifty three on Wall Street time for 680 00:38:07,080 --> 00:38:09,720 Speaker 1: the Bloomberg Law Report. Let's get to the legal stories 681 00:38:09,760 --> 00:38:16,320 Speaker 1: we're watching this morning from Bloomberg's Joe Donnager. After multiple 682 00:38:16,400 --> 00:38:19,560 Speaker 1: delays and plans to return to the office, thousands of 683 00:38:19,680 --> 00:38:22,320 Speaker 1: US Labor Department workers around the country are set to 684 00:38:22,400 --> 00:38:25,200 Speaker 1: return to their desks next week. Members of Congress are 685 00:38:25,239 --> 00:38:28,160 Speaker 1: pushing the Labor Department to eliminate a practice that legally 686 00:38:28,200 --> 00:38:31,480 Speaker 1: pays workers with disabilities less than the minimum wage, and 687 00:38:31,680 --> 00:38:34,040 Speaker 1: in a blow to restaurant groups, the federal judge in 688 00:38:34,120 --> 00:38:37,760 Speaker 1: Texas has ruled a Labor Department requirement that pays tipped 689 00:38:37,840 --> 00:38:41,280 Speaker 1: workers a higher minimum wage for tasks that don't produce 690 00:38:41,360 --> 00:38:44,640 Speaker 1: tips can be enforced while a suit debating the agency's 691 00:38:44,640 --> 00:38:49,120 Speaker 1: authority moves ahead. Bloomberg Law everything you need, all on 692 00:38:49,320 --> 00:38:54,799 Speaker 1: one legal research platform, including guidance analysis and Bloomberg Market Intelligence. 693 00:38:55,000 --> 00:38:58,919 Speaker 1: Find out more at Bloomberg law dot com. All right, Joan, 694 00:38:59,000 --> 00:39:01,360 Speaker 1: thank you now. Another Eagles story brings us to the 695 00:39:01,440 --> 00:39:05,040 Speaker 1: high profile death of a major league baseball pitcher. A 696 00:39:05,200 --> 00:39:09,040 Speaker 1: jury has convicted former l A Angels communications director Eric 697 00:39:09,160 --> 00:39:12,600 Speaker 1: Kay of providing picture Tyler Skaggs with drugs that led 698 00:39:12,640 --> 00:39:17,520 Speaker 1: to his overdose death. In the trial included testimony from 699 00:39:17,760 --> 00:39:21,680 Speaker 1: five and major league players who say they received oxycodone 700 00:39:21,719 --> 00:39:25,160 Speaker 1: pills from k. He now faces a minimum twenty years sentence. 701 00:39:25,440 --> 00:39:27,840 Speaker 1: From where in the case Bloomberg June Grosso speaks to 702 00:39:27,880 --> 00:39:32,239 Speaker 1: attorney Harry Nelson of Nelson Hardeman tell us about what 703 00:39:32,600 --> 00:39:36,880 Speaker 1: the trial revealed about the culture of drug use in 704 00:39:37,000 --> 00:39:40,920 Speaker 1: the Los Angeles Angels clubhouse. You know, there were testimony 705 00:39:41,000 --> 00:39:45,120 Speaker 1: from multiple players living like Matt Harvey, for example, that 706 00:39:45,320 --> 00:39:49,160 Speaker 1: they had been using opioid paint pills for years, and 707 00:39:49,280 --> 00:39:51,640 Speaker 1: it sounded like in most cases people were players who 708 00:39:51,680 --> 00:39:55,640 Speaker 1: were playing through injuries and they were actually helped for 709 00:39:55,760 --> 00:39:58,239 Speaker 1: whatever the short term need was. It also was clear 710 00:39:58,480 --> 00:40:01,480 Speaker 1: there was a widespread aware and this that Kay was 711 00:40:01,560 --> 00:40:03,520 Speaker 1: doing this for lots of players, and that these players 712 00:40:03,600 --> 00:40:07,000 Speaker 1: had problems. Tyler Skaggs step brothers testified he helped tried 713 00:40:07,080 --> 00:40:09,920 Speaker 1: to help Tyler get off of the pills. Skaggs mother 714 00:40:10,040 --> 00:40:12,800 Speaker 1: testified that he had tried to quit several times. And 715 00:40:13,040 --> 00:40:15,040 Speaker 1: so the thing that came across to me out of 716 00:40:15,080 --> 00:40:17,400 Speaker 1: the trial was that there were no secrets. This was 717 00:40:17,440 --> 00:40:20,279 Speaker 1: not a surprise. Jeff Kay was not, you know, some 718 00:40:20,680 --> 00:40:24,120 Speaker 1: evil menace. He was really you know, embedded into the 719 00:40:24,239 --> 00:40:27,680 Speaker 1: life of the Angels team, as was the youth and 720 00:40:27,960 --> 00:40:31,480 Speaker 1: the chronic need for pain management that these pills served. 721 00:40:32,280 --> 00:40:35,600 Speaker 1: And Kay was also hooked on opioid pain pills and 722 00:40:35,920 --> 00:40:39,680 Speaker 1: also tried to kick them. Correct. Yeah, the sad irony 723 00:40:39,719 --> 00:40:42,760 Speaker 1: of this case is that Jeff Kay was was also 724 00:40:42,840 --> 00:40:45,319 Speaker 1: a victim. The only difference thing that he didn't pay 725 00:40:45,400 --> 00:40:47,879 Speaker 1: with his life as Tyler Skaggs did. Is there any 726 00:40:47,960 --> 00:40:51,839 Speaker 1: indication that this is still going on in clubhouses? Oh, 727 00:40:52,160 --> 00:40:55,880 Speaker 1: I believe this is still a problem happening throughout baseball 728 00:40:55,920 --> 00:40:59,560 Speaker 1: and other professional sports. About fifteen years ago ten fifteen 729 00:40:59,600 --> 00:41:02,440 Speaker 1: years ago, we saw the d e A do an 730 00:41:02,480 --> 00:41:07,399 Speaker 1: intensive audit of multiple professional teams, baseball teams, the football team, 731 00:41:07,880 --> 00:41:10,759 Speaker 1: and really cracking down on the doctors who at the 732 00:41:10,840 --> 00:41:13,320 Speaker 1: time back then, if we go back to the early 733 00:41:13,360 --> 00:41:16,800 Speaker 1: two thousands, were supplying players. And so what happened is 734 00:41:16,920 --> 00:41:20,680 Speaker 1: we essentially took away the legal supply because the doctors 735 00:41:20,760 --> 00:41:23,400 Speaker 1: were being accused and we're afraid of losing their licenses 736 00:41:23,680 --> 00:41:26,920 Speaker 1: by making kills easily available, and instead it was replaced 737 00:41:27,560 --> 00:41:31,680 Speaker 1: largely with a secretive network. And the only different was 738 00:41:31,800 --> 00:41:34,920 Speaker 1: that Jeff Kay had the misfortune to get counterfeit pills. 739 00:41:35,320 --> 00:41:39,120 Speaker 1: And my senses that on most teams the illegal trafficking 740 00:41:39,160 --> 00:41:44,000 Speaker 1: that's going on is with pharmaceutical grade oxycodon and other pills. 741 00:41:44,040 --> 00:41:47,239 Speaker 1: But I personally believe, and this is just anecdotals from 742 00:41:47,280 --> 00:41:49,440 Speaker 1: what I've heard from people associated with various teams and 743 00:41:49,560 --> 00:41:51,759 Speaker 1: from the call occasional calls that I get as a lawyer, 744 00:41:52,120 --> 00:41:54,280 Speaker 1: is that this is still very much a problem throughout 745 00:41:54,360 --> 00:41:58,200 Speaker 1: professional sport. And as Harry Nelson of Nelson Hardeman speaking 746 00:41:58,239 --> 00:42:00,440 Speaker 1: with The Bloomberry June hear also Okay, more of that 747 00:42:00,560 --> 00:42:03,920 Speaker 1: interview plus analysis of the latest legal news by subscribing 748 00:42:03,960 --> 00:42:06,600 Speaker 1: to the Bloomberg Law podcast or downloading this show at 749 00:42:06,640 --> 00:42:10,640 Speaker 1: Bloomberg dot com slash podcasts. Attorneys can find exceptional legal 750 00:42:10,719 --> 00:42:13,759 Speaker 1: research and business development tools at Bloomberg Law dot com 751 00:42:14,160 --> 00:42:17,560 Speaker 1: and on the Bloomberg terminal at b law Go. SNP 752 00:42:17,800 --> 00:42:21,360 Speaker 1: futures are higher this morning, up twenty nine points, to 753 00:42:21,440 --> 00:42:24,800 Speaker 1: Dow futures up one hundred and ninety nine and NASDAG 754 00:42:24,960 --> 00:42:28,760 Speaker 1: futures up one hundred thirty four. That's up about one percent. 755 00:42:28,880 --> 00:42:31,720 Speaker 1: The ten year treasury down seven thirty seconds, the yield 756 00:42:32,040 --> 00:42:34,600 Speaker 1: one point nine six percent, and the yield on the 757 00:42:34,680 --> 00:42:38,520 Speaker 1: two year one point five nine percent. Still ahead. On 758 00:42:38,719 --> 00:42:41,160 Speaker 1: Bloomberg day Break, we have a check on the business 759 00:42:41,239 --> 00:42:43,919 Speaker 1: headlines and all the news you need to start your day, 760 00:42:44,360 --> 00:42:46,120 Speaker 1: and this is Bloomberg