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Speaker 1: By from the Bloomberg Interactive Brooker Studios. This is Bloomberg

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Speaker 1: day Break for Friday, February eleventh, two Coming up this hour,

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Speaker 1: US futures fall, adding to yesterday's in fleation fueled sell off,

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Speaker 1: Pullman Sacks Opposites Fed forecast predicting seven rate hikes this year.

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Speaker 1: The UK economy shows strength, expanding by the most since

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Speaker 1: World War Two, and the International Energy Agency horns oil

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Speaker 1: prices may be heading higher. Former Governor Plomo is filing

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Speaker 1: a complaint against New York's attorney general. Plus tensions heightened

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Speaker 1: about the trucker's blockade at the US Canadian border. I'm

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Speaker 1: Michael barn More Ahead, John stashon Sports than Nets, trade

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Speaker 1: in James Arne to Philadelphia, then lost their tenth in

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Speaker 1: a row, the Knicks with a surprising win at Golden State.

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Speaker 1: That's all trading ahead on Bloomberg Daybreak on Bloomberg eleven,

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Speaker 1: Free on New York, Bloomberg one, Washington, d C, Bloomberg

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Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco

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Speaker 1: Sirius x M one nineteen and around the world Bloomberg

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Speaker 1: Radio dot Com and via the Bloomberg Business good morning.

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Speaker 1: I'm Nathan Hager and I'm Karen Moscow, and global stocks

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Speaker 1: are lower on this Friday morning. We're coming up to

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Speaker 1: five out one on Wall Street, and we check the

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Speaker 1: markets every fifteen minutes throughout the trading day. On Bloomberg.

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Speaker 1: Right now, S and P futures are down twenty five

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Speaker 1: points down, futures down one forty seven, NASDAC futures down

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Speaker 1: one dred eleven. The decks in Germany's down nine tenths

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Speaker 1: of upper sent Can your treasury up seven thirty seconds

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Speaker 1: yield two point zero zero percent. They yield on the

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Speaker 1: two year one point five nine percent. Nine x Screwed

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Speaker 1: oil is up seven tenths per cent, or sixty two

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Speaker 1: cents at ninety dollars fifty two cents of barrel, and

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Speaker 1: the euro one point one five against the dollar. Nathan,

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Speaker 1: we'll caring. The drop in futures follows yesterday's inflation fueled

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Speaker 1: sell off. We saw the NASTAC one d lead the declines.

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Speaker 1: Bonds were hit hard after the CPI report that showed

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Speaker 1: inflation running at its highest pace in four decades. Emily

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Speaker 1: Hill is a founding partner at Bowersock Capital Partners. I

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Speaker 1: think there was a hope out there that inflation was

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Speaker 1: moderating or at least that inflation was peaking, and the

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Speaker 1: numbers that looked like betting. So the market is now

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Speaker 1: pricing in, you know, much higher and likelihood of a

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Speaker 1: simpy basis point and creating race in marsh which I

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Speaker 1: don't think of a in a huge surprise. Emily Hill

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Speaker 1: with Bowersock Capital Partners made the comments on Bloomberg Business Week.

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Speaker 1: Catch the program weekdays at two pm. E. Stern on

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Speaker 1: Bloomberg Radio, Well, Nathan, we saw the selling an equity

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Speaker 1: spill over to Asia overnight, and we get the recap

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Speaker 1: from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good

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Speaker 1: morning Karen. Silver know its dropped in New Zealand and Australia,

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Speaker 1: where the three A yield hit its high since twenty nineteen.

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Speaker 1: The MSCI Asia Pacific Index ex Japan, which was closed

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Speaker 1: for a holiday, dropped the most in two weeks, dragged

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Speaker 1: lower by textoks amid the rise in yields. Elsewhere, Chinese

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Speaker 1: banks extended a record amount of loans in January, providing

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Speaker 1: a boost to a slowing economy. Six D and twenty

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Speaker 1: six billion dollars of new loans lent in the month,

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Speaker 1: beating economy median estimate at the highest level in Donna

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Speaker 1: going back to nine ninety two in Singapore. Juliette Sally

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Speaker 1: Bloomberg Daybreak. All right, juliet thanks So this is all

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Speaker 1: a response to higher interest rates, and the call for

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Speaker 1: more rate hikes this year is growing Bloomberg. Ornita Young

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Speaker 1: joins US Live to pick up that angle on the story.

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Speaker 1: Good morning, Granita, Good morning. Nathan Goldman. Sachs now sees

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Speaker 1: the Fed raising interest rates seven times this year. It's

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Speaker 1: earlier prediction was five, and the Bank expects the Fed

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Speaker 1: to lift rates by twenty five basis points in each

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Speaker 1: of its meetings this year to tame the hottest inflation

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Speaker 1: in four decades. Traders are also pricing in seven Fed

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Speaker 1: hikes this year, sending global bond yield soaring. Data yesterday

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Speaker 1: showed US consumer prices posting the biggest jump since Live

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Speaker 1: in New York. I'm Ranita Young, Bloomberg Daybreak, Rania, thank you.

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Speaker 1: There's also growing speculation the Fed may off for a

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Speaker 1: fifty basis point rate hike at next month's meeting. St

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Speaker 1: Louis FED President Jim Bullard, who votes on rates this year,

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Speaker 1: says he faver's three hikes by July, with one them

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Speaker 1: being a half point move for Richmond FED President Thomas

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Speaker 1: Barkin is less convinced of the need for a big move,

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Speaker 1: open to it conceptually, sure, I mean there will be

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Speaker 1: times where we'll need to do that. There'll be times

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Speaker 1: in the past we have done do I think there's

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Speaker 1: a screaming need to do it right now. I'd have

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Speaker 1: to be convinced on that. Richmond FED President Thomas Barkin

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Speaker 1: made the comments at an event at the Stanford Institute

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Speaker 1: for Economic Policy Research. We meantime caring the FEDS feeling

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Speaker 1: pressure from Congress, The top Republican on the Senate Banking

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Speaker 1: Committee wants an overhaul of the Federal Reserves regional bank system.

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Speaker 1: Senator Pat Toomey of Pennsylvania says the twelve regional banks

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Speaker 1: were formed to manage economies in their districts, but that's

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Speaker 1: no longer the case. One of the things that concerns

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Speaker 1: me is maybe in the absence of having a compelling

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Speaker 1: monetary policy purpose, they seem to be wandering onto other

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Speaker 1: fields that they like to play on. But which have

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Speaker 1: nothing to do with the Fed's mission and its purpose

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Speaker 1: of things like climate change, things like social justice. Senator

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Speaker 1: Pat Toomey spoke with David Weston on Bloomberg's Balance of Power.

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Speaker 1: Can catch that program weekdays at noon Eastern on Bloomberg

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Speaker 1: Radio and Television. The Economy also and Focus Overseas Nathan

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Speaker 1: Data this morning show the UK economy expanded last year

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Speaker 1: by the most into World War two, and we get

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Speaker 1: the latest Live in London, but Bloomberg's You and Parts,

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Speaker 1: Good Morning You and Good Morning Karen and Nathan. The

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Speaker 1: seven point five percent expansion in UK GDP is the

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Speaker 1: largest since ninety one and made Britain the fastest growing

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Speaker 1: advanced economy in twenty one, but at the end of

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Speaker 1: the fourth quarter GDP was still lower than before the

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Speaker 1: pandemic struck. The figures that we welcomed by by Minister

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Speaker 1: Boris Johnson, who is grappling with a brutal cost of

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Speaker 1: living crisis and political difficulties. They also kicked the Bank

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Speaker 1: of eng and focused on curbing surging inflation, with more

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Speaker 1: interstrate hikes likely in the coming months. Live in London,

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Speaker 1: I'm You and Part Sploo Boyd daybreak, All right, you

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Speaker 1: and thank you. Energy prices are also in focus this

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Speaker 1: morning after a warning from the International Energy Agency. It

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Speaker 1: says oil prices could head higher because chronic supply issues

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Speaker 1: threatened to increase tightness and volatility. Checking all prices right now,

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Speaker 1: name Excruise up six for center fifty four cents at

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Speaker 1: ninety dollars forty two cents of barrel. Brent is up

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Speaker 1: a half percent at nine eight cents. Well, let's switch

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Speaker 1: gears now, Nathan and talk space, specifically the race to Mars.

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Speaker 1: Space X founder Elon must says the f A amy

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Speaker 1: grant environmental approval at the company's South Texas launch site

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Speaker 1: as soon as next month. That could pave the way

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Speaker 1: for a starship launch this year. And Bloomberg's Ed Ludlow

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Speaker 1: is on the ground in the Lone Star stayed with

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Speaker 1: the very latest. This was classic elon the big picture

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Speaker 1: that life on Earth won't be here forever and the

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Speaker 1: time to act is now. He reimagined a life on

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Speaker 1: Mars where starship carries communities cargoes of people to another

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Speaker 1: planet to establish a base. He's confident that the f

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Speaker 1: A will give an environmental approval for Starship to be

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Speaker 1: able to launch potentially as soon as March, and he

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Speaker 1: said that in terms of the technology, the Starship system

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Speaker 1: could be ready to launch in a couple of months.

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Speaker 1: Ed Ludlow, Boca Chica, Texas for Bloomberg News. Okay, Ed,

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Speaker 1: thank you. Right now, S and P futures are down

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Speaker 1: twenty four point. Staff futures down a hundred fifty two.

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Speaker 1: NASTAC futures leading the declines this morning. They're down a

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Speaker 1: hundred nine points. The tenure treasury is up seven thirty seconds.

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Speaker 1: The yield two percent, yield on the two year right

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Speaker 1: now one point five nine percent. Straight ahead your latest

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Speaker 1: local headlines in the check of Sports. This is Bloomberg's

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Speaker 1: five oh seven on Wall Street, word forty two degrees

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Speaker 1: in Central Park. We had an accident on the southbound

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Speaker 1: Deacon past Fordham Road. To tails coming up in traffic. First,

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Speaker 1: Michael Bars here with more on what's going on in

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Speaker 1: New York and around the world on this Friday morning. Michael,

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Speaker 1: thank you very much. Nathan. It is deadline day for

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Speaker 1: thousands of New York City workers from mandatory vaccinations. If

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Speaker 1: they don't show proof of vaccination by today, they will

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Speaker 1: get fired at least of city workers are vaccinated. Meanwhile,

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Speaker 1: demonstrations are scheduled for later this morning. The mayor of Windsor, Ontario,

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Speaker 1: is trying legal action to end a trucker's protest against

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Speaker 1: COVID restrict chins truckers that blocked the bridge linking Windsor

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Speaker 1: to Detroit, a crucial point for moving autoparts and other suppliers.

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Speaker 1: Windsor Mayor Drew Dilton's the hallmark of the democracies in

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Speaker 1: which we live is that you can protest, you can

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Speaker 1: share your opinion, and we celebrate that, and that's okay.

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Speaker 1: What's not okay is to choke off the busiest border

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Speaker 1: crossing between the United States and Canada and impact thousands

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Speaker 1: and thousands of families across both countries. Mayor Dilkins says

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Speaker 1: we want this to end peacefully. Vice President Kamala Harris

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Speaker 1: will visit Newark today. It will highlight replacing lead water pipes.

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Speaker 1: Harris will be joined by New Jersey Governor Phil Murphy.

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Speaker 1: Members of the Senate Judiciary Committee met with President Biden

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Speaker 1: about his pick to be on the Supreme Court. Biden

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Speaker 1: has said he wants to pick a black woman to

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Speaker 1: replace retiring Justice Stephen Bryer. Committee member Senator Richard Blumenthal,

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Speaker 1: this choice is historic not only because it will bring

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Speaker 1: historic diversity of the court, but also the quality of

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Speaker 1: the person whom the President pullepoint I think will be

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Speaker 1: historic and will really help unite the country. Senator Bloomenthal

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Speaker 1: says Democrats are hoping for bipartisan support. Former Governor Andrew

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Speaker 1: Cuomo plans to file a complaint against New York Attorney

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Speaker 1: General Letitia James. It's over the investigation of sexual harassment

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Speaker 1: allegations that led to his resignation. By filing an ethics

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Speaker 1: complaint with the New York State Bar, Cuomo's attorney, Rita

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Speaker 1: Glavin says the probe conducted by James ignored evidence of

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Speaker 1: witness tampering. Former Alaska Governor Sarah palin As compared The

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Speaker 1: New York Times to Goliath and herself to David in

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Speaker 1: their dispute over seventeen editorial. Palin took the stand in

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Speaker 1: Manhattan Federal cord at a civil trial. She's accusing the

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Speaker 1: newspaper of damaging your reputation with an editorial linking or

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Speaker 1: campaign rhetoric to a mass shooting. Closing arguments take place

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Speaker 1: Today Global News twenty four hours a day on air

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Speaker 1: and on Bloomberg Quick Take, powered by more than twenty

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Speaker 1: seven under journalists and the list of more than twenty countries.

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Speaker 1: I'm Michael bar This is Bloomberg Naked. Thanks Michael. Going

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Speaker 1: up to five ten on Wall Street. Time for the

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Speaker 1: Bloomberg Sports Update. Good morning, John Sessharon O, Good morning Nathan.

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Speaker 1: So much for the Big Three. A little over a

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Speaker 1: year ago, James Harden joined Kevin Ranna, Kyrie Ever in Brooklyn,

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Speaker 1: but with all three in and out of the lineup

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Speaker 1: with injuries and then this season Irving not being allowed

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Speaker 1: to play home games, they only played together sixteen times,

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Speaker 1: and now Hardened is headed to Philadelphia, one unhappy point

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Speaker 1: guard traded for another. Harden goes to Philly with Paul

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Speaker 1: Millsap and coming to Brooklyn is Ben Simmons, who had

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Speaker 1: refused to play all season for the Sixers. The Nets

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Speaker 1: also gets Seth Curry, Andre Drummond and two first round

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Speaker 1: draft picks. Nets then played in Washington and lost one

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Speaker 1: one twelve. They now lost ten in a row. Then X,

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Speaker 1: who did not make a trade before the deadline, losers

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Speaker 1: of ten the last twelve with a surprising win at

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Speaker 1: Golden State, won sixteen one fourteen, Julius Randall twenty eight points,

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Speaker 1: sixteen rebounds, and x Nick was treated for an ext

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Speaker 1: net ristaff. Porzingis goes from Dallas to Washington for Spencer Dinood.

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Speaker 1: The Devils are just ended a seven game losing streak,

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Speaker 1: won seven four in St. Louis, and they scored fourteen

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Speaker 1: gold in the last two games at the Olympics of

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Speaker 1: a Kalis Schifferd completed the Super GM but finished ninth.

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Speaker 1: Shaun White was fourth in the snowboarding half Bite, final

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Speaker 1: event of his career. The baseball lockout continues, with Commissioner

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Speaker 1: Rob Manford determined to not let it drag on. I

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Speaker 1: see missing games as a disastrous outcome for the for

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Speaker 1: this industry, and we're committed to making an agreement in

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Speaker 1: an effort to avoid that one thing. The two sides

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Speaker 1: have agreed on the universal d H. No longer will

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Speaker 1: nationally pictures come to the plate. The rule was American

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Speaker 1: League only for forty eight years. John stash were Bloomberg

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Speaker 1: Sports Nick manor all right, John, thank you, SMP futures

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Speaker 1: down down twenty three point stuff futures down a hundred

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Speaker 1: forty NASTACT futures down a hundred eight points, the tenure

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Speaker 1: Treasury up eight thirty seconds, the yield one point nine

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Speaker 1: seven percent. Ben Laylor VI Toros with US next on

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Speaker 1: these markets. This is Bloomberg Bloomberg eleven three O weather

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Speaker 1: sunshine up or forties today, partly sunny and mild tomorrow

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Speaker 1: low fifties, chants of flurries or snowshowers. Super Bowl Sunday,

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Speaker 1: especially over Long Island with highs and the low thirties

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Speaker 1: currently forty two in Central Park markets. Headlines and breaking

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Speaker 1: news twenty four hours a day at Bloomberg dot Com,

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Speaker 1: the Bloomberg Business out and at Bloomberg Quicktape. This is

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Speaker 1: a Bloomberg Business flash, and I'm Karen Moscow stocks are

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Speaker 1: extending to flines along with you. West Stock Index futures

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Speaker 1: as red hot US inflation stoked bets on faster Federal

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Speaker 1: reserve interest rate hikes and it UH speculation about the

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Speaker 1: monetary policy outlook. We checked the markets every fifteen minutes

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Speaker 1: throughout the trading day on Bloomberg Guess and P futures

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Speaker 1: down twenty three points, down features down a hundred forty

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Speaker 1: Germany's down eight tenths of upper cent ten year treasury

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Speaker 1: of nine thirty seconds, he had one point nine nine

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Speaker 1: percent the yield on the two year one point five

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Speaker 1: eight percent. Nimex crude oil is at the third of

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Speaker 1: upper cent, or thirty one cents at ninety dollars, nineteen

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Speaker 1: cents of barrel comes gold down six tenths per cent

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Speaker 1: or ten dollars twenty cents. At eighteen twenty seven, announced

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Speaker 1: the euro one point one three eight seven against the dollar.

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Speaker 1: British found one point three five five two The YenS

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Speaker 1: at one sixteen point oh four bitcoin this morning at

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Speaker 1: forty three thousand, four hundred twenty dollars. That's a bloomberg

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Speaker 1: business flash. Now here's Michael Barr with more on what's

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Speaker 1: going on around the world. Michael, good morning, Good morning Karen.

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Speaker 1: Another round of diplomatic discussions over Russia and Ukraine were

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Speaker 1: held in Berlin. Diplomats from Russia, Ukraine, France and Germany

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Speaker 1: met to try and resolve the crisis. However, no breakthroughs.

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Speaker 1: Two Democrats on the Senate Intelligence committees say the c

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Speaker 1: i A has secretly collected information about Americans. Senators Ron

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Speaker 1: Wyden and Martin Heinrich alleged the CIA has long hidden

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Speaker 1: details about the program from the public and Congress. Snowboarders

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Speaker 1: Shaun White competed in his final men's half live today

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Speaker 1: of the Beijing Olympics. You finished fourth out of the podium.

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Speaker 1: In the NBA, the Knicks beat the Warriors one sixteen,

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Speaker 1: one fourteen, the Wizards beat the Nets one thirteen, one twelve.

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Speaker 1: In the NHL, the Devils and Capitals one, the Bruins lost,

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Speaker 1: And finally, on the frozen tundra of Super Bowl fifty six,

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Speaker 1: I'm just kidding degrees. That's so five Stadium in California. Yeah.

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Speaker 1: Burg Global News twenty four hours a day on air

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Speaker 1: and on Bloomberg Quick Take Forward by more than the twenties,

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Speaker 1: with hundred journalists, antalists and more than gods. I'm Michael Bard.

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Speaker 1: This is Bloomberg Navid. At least it feels like Friday

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Speaker 1: on the Gridiron. Thank you, Michael. Five nineteen on Wall

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Speaker 1: Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg.

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Speaker 1: Daybreak might not feel so much like Friday for investors

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Speaker 1: this morning. Let's bring in Ben Laidler, Global markets strategist

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Speaker 1: at a Toro, as we continue to assess the impact

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Speaker 1: of the sky high inflation print from yesterday. Ben, good morning,

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Speaker 1: we're seeing the impact in the futures markets. How much

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Speaker 1: further do you think the sell off has to go?

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Speaker 1: I suspect not much. I don't think a huge amount

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Speaker 1: has changed here. I don't think there were too many

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Speaker 1: people looking for a lower inflation print yesterday. I mean,

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Speaker 1: obviously wasn't great, a bit stronger, maybe a bit broader

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Speaker 1: than we did hope. But I think the change is

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Speaker 1: incremental rather than sort of dramatic. I mean maybe we're

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Speaker 1: looking for, you know, a fifty basis points start to

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Speaker 1: this rate cycle rather than a win't started this rate cycle.

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Speaker 1: I don't think it's dramatic. I think what's you know.

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Speaker 1: Two things just to keep in mind here, when we

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Speaker 1: look at all the rate hikes that we've had in

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Speaker 1: the rest of the world in the last twelve months,

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Speaker 1: markets actually tend to react with some relief when that

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Speaker 1: rate cycle actually starts. So I bear that in mind

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Speaker 1: as we get sort of closer to March to sixteen UM.

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Speaker 1: And and secondly, I would actually feel better about equities

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Speaker 1: now than I did maybe a couple of weeks ago, right,

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Speaker 1: I mean, markets are cheaper, the Fed, we've priced more in,

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Speaker 1: earnings have been coming in very strong to the fourth quarter.

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Speaker 1: Economies are reopening after Omina chrom I think the glass

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Speaker 1: is definitely half full here, not half empty. It's interesting

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Speaker 1: to say that you don't think much has changed. I

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Speaker 1: mean one thing that has changed is you have Goldman

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Speaker 1: sachs now calling for seven rate hikes instead of five,

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Speaker 1: a lot more resetting of just what the Fed is

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Speaker 1: going to do this year. Do you think some of

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Speaker 1: that has been overdone? Is that your case here? Yeah,

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Speaker 1: a little bit. That's definitely a sort of pile on here.

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Speaker 1: I mean, you know who you can put the most

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Speaker 1: right hikes in their forecast. It seems to be the

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Speaker 1: sort of you know, game of the day. But you know,

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Speaker 1: whether whether it's five or six or seven, I mean

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Speaker 1: we've come a long way. I mean back in September

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Speaker 1: it was essentially none. So, so I do think you know,

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Speaker 1: we've priced a lot um and again, you know, markets

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Speaker 1: are cheaper, earnings are still strong. You know, sentiments a

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Speaker 1: bit lower, which I actually thinks contrarian positive economies are reopening. Um.

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Speaker 1: Uh you know, yes, I prefer that we did you

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Speaker 1: know that we only needed five hikes, not not potentially

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Speaker 1: sort of seven. But again, I don't think the narrative

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Speaker 1: has changed dramatically. Um. I think there are some assets

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Speaker 1: are going to do very well here. I again, I

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Speaker 1: think we've we've priced a lot when we obviously you know,

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Speaker 1: down a little bit for the year. So I have

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Speaker 1: now had more upside to my you know, my target.

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Speaker 1: So I'm actually, as I say, being a bit more positive,

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Speaker 1: not necessarily more negative. So what's your target and what

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Speaker 1: assets do you think particularly are looking most attractive right now?

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Speaker 1: So so our targets unchanged five thousand and fifty s

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Speaker 1: and P five hundred, which is a solid temper cent

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Speaker 1: from here, plus the dividend. Um, I think you know,

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Speaker 1: inflation defensive assets you know are clearly going to keep

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Speaker 1: doing well, and commodities has had the best start of

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Speaker 1: the year in living memory. I think a lot of

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Speaker 1: sort of value sectors, financials, energy, um, you know, chief evaluations,

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Speaker 1: you know, more protection on the downside, um and and

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Speaker 1: potentially more room to rerate on the upside. Uh And

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Speaker 1: and dare I say even sort of more volatile, riskier

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Speaker 1: assets like crypto, where the supply outlook is you know,

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Speaker 1: it's fixed. Um. You know, I'm pretty bullish on markets,

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Speaker 1: but this is a new investment world. You know, rates

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Speaker 1: are going up, growth will be lower, there will be

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Speaker 1: more volatility. Um. You know, returns will be lower going

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Speaker 1: forward than they how been you know historically. So I

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Speaker 1: think that you know, it's no longer just a case

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Speaker 1: of you know, get long tech and get long with

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Speaker 1: the US and toget about it. I do think you

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Speaker 1: need to look at sort of you know, there will

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Speaker 1: be different leadership, and I think it will come from

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Speaker 1: these sort of cheaper, faster growing through value sectors and

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Speaker 1: and and and overseas markets, you know, like the UK

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Speaker 1: and Europe for example. So do you think the US

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Speaker 1: continues to outperform the rest of the world even with

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Speaker 1: a more hark ish fan, Um, I would expect the

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Speaker 1: rest of the world to actually outperform. You know. I

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Speaker 1: think you still I think you're still there's still a

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Speaker 1: double digit return in the US. But I don't think

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Speaker 1: the US is going to lead as I say. I

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Speaker 1: think it's those sort of cheaper, faster growing assets, you know,

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Speaker 1: European earnings are you know, growing twice as fast as

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Speaker 1: the US at this point, and valuations are thirty percent cheaper,

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Speaker 1: and I think you're seeing variations of that story, you know,

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Speaker 1: insectors like financials and energy as well as an overseas market.

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Speaker 1: So thin the US is fine, but but I don't

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Speaker 1: think it's going to lead market up. That's thirty seconds here.

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Speaker 1: What would make you change your forecast this bullish outlook

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Speaker 1: for for style, because what would have to change for you? Yeah,

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Speaker 1: it's it's all about earnings. I mean, I think valuations

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Speaker 1: are und pressure and they're probably gonna come down, and

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Speaker 1: they're already very high, but we're looking for earning stuff

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Speaker 1: set that we just havening throws in the US and

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Speaker 1: the fourth quarter. If if those earnings numbers start falling away,

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Speaker 1: we start seeing downgrades there. That's what I'm worried about,

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Speaker 1: because that's the insurance policy to um to the valuations

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Speaker 1: which are under pressure. Here. Thanks for this, Ben, good

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Speaker 1: to get your view. Really appreciated. Ben Laidler, Global Market

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Speaker 1: Strategists at a Toro oh with us this morning, as

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Speaker 1: we watch the sell off and equities continue, we have

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Speaker 1: SMP futures down down twenty two points. Staff futures down

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Speaker 1: a hundred thirty six. Naztack futures are lower by a

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Speaker 1: hundred four points. Germany's decks down three quarters of one percent.

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Speaker 1: The hack in Paris is down one p ten. Your

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Speaker 1: treasury is up nine thirty seconds. The yield one point

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Speaker 1: nine nine percent. The yield on the two year right

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Speaker 1: now one point five eight percent. Bitcointe thousand, three hundred

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Speaker 1: dollars just a had the market does ramp up rate

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Speaker 1: vets and Elon Musk says SpaceX Starship is clear for takeoff.

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Speaker 1: You're listening to Bloomberg day Break Bloomberg eleven three oh

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Speaker 1: weather sunshine up or forties today, low fifties tomorrow under

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Speaker 1: a partly sunny sky, chance for flurries or snow showers

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Speaker 1: on Sunday. Hides in the low thirties. Right now forty

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Speaker 1: two in Central Park, broadcasting live from the Bloomberg Interactive

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Speaker 1: Broker Studio in New York. Bloomberg E Living Freedom to Washington,

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Speaker 1: d C, Bloomberg nine to Boston, Bloomberg one oh six

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Speaker 1: one to San Francisco, Bloomberg nine six to the Country,

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Speaker 1: Sirius XM to the one nineteen and around the globe

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Speaker 1: to Bloomberg Business in Bloomberg Radio dot Com. This is

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Speaker 1: Bloomberg Daybreak. It's five thirty on Wall Street. Good morning.

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Speaker 1: I'm Nathan Hagar and I'm Kared Moscow. We are just

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Speaker 1: about four hours away from the open of US trading.

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Speaker 1: Let's get you up to date on the news you

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Speaker 1: need to know. At the shower, US futures extending losses

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Speaker 1: this morning. Red hot inflation as stoking vets on faster

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Speaker 1: interest rate moves from the Fed, and we get the

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Speaker 1: latest live with the Bloomberg's Ranita Young. Good morning, Ranida,

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Speaker 1: Good morning, Karen Goldman. Sachs now sees the Fed raising

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Speaker 1: interest rates seven times this year. It's earlier prediction was five.

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Speaker 1: The Bank expects the FIT to lift rates by twenty

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Speaker 1: five basis points in each of its meetings this year

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Speaker 1: to tame the hottest inflation in four decades. Traders are

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Speaker 1: also pricing in seven Fed hikes this year, sending global

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Speaker 1: bond yields soaring. Data yesterday showed US consumer prices posting

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Speaker 1: the biggest jump since Live in New York, I'm Nita Young,

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Speaker 1: Bloomberg Daybreak, Renita. Thanks In the UK, the economy expanded

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Speaker 1: last year by the most since World War Two. Gross

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Speaker 1: domestic product was up seven and a half percent, making

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Speaker 1: Britain the fastest growing advanced economy, despite growth shrinking two

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Speaker 1: tenths of a percent in December. Well loyal and focus

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Speaker 1: this morning, The International Energy Agency says crude prices may

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Speaker 1: had higher because the chronics fly issues and checking prices

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Speaker 1: right now. Nimex Screwed oil up a third of upper

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Speaker 1: cent or thirty two cents at ninety dollars nineteen cents

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Speaker 1: of barrel Brent is up to ten percent at ninety

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Speaker 1: one dollar sixty cents. We have stocks on the move

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Speaker 1: this morning. Karen shares of zillo Or up thirteen percent

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Speaker 1: earnings top estimates as a hot housing market helped the

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Speaker 1: economy wind down its home flipping business. Shares of Expedia

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Speaker 1: are up four percent. The travel company reported fourth quarter

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Speaker 1: profit the top estimates, and even the space race also

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Speaker 1: in focus today. Space x founder Elon must says his

427
00:22:29,800 --> 00:22:32,440
Speaker 1: confident his new Starship will be ready for launch this year.

428
00:22:32,560 --> 00:22:34,840
Speaker 1: The aircraft is a centerpiece of his plan to travel

429
00:22:34,920 --> 00:22:40,000
Speaker 1: to Mars this year. We're actually aiming to have around

430
00:22:40,040 --> 00:22:42,840
Speaker 1: fifty launches, so it's about a launch per week on average.

431
00:22:43,680 --> 00:22:48,360
Speaker 1: And yeah, so it's how yo we got ahead of us. Well.

432
00:22:48,400 --> 00:22:51,160
Speaker 1: Elon Must spoke at a space X event in Texas,

433
00:22:51,560 --> 00:22:54,040
Speaker 1: saying he is aiming for up to three Starship flights

434
00:22:54,080 --> 00:22:56,479
Speaker 1: a day. Each flight is expected to cost less than

435
00:22:56,560 --> 00:23:00,440
Speaker 1: ten million dollars. Again, futures are lower. SNP Future is

436
00:23:00,480 --> 00:23:02,479
Speaker 1: down twenty four points this morning. Down Future is down

437
00:23:02,520 --> 00:23:05,800
Speaker 1: a hundred forty seven nasday futures down one hundred six.

438
00:23:05,960 --> 00:23:09,080
Speaker 1: Ten year Treasury up nine thirty seconds, yield one point

439
00:23:09,240 --> 00:23:11,560
Speaker 1: nine nine percent. They yield on the two year one

440
00:23:11,640 --> 00:23:14,840
Speaker 1: point five nine percent. Comics Gold is down half percent

441
00:23:15,000 --> 00:23:18,000
Speaker 1: or ten dollars. In eighteen twenty seven, announced the euro

442
00:23:18,119 --> 00:23:21,160
Speaker 1: one point one three eight against the dollar, British pound

443
00:23:21,200 --> 00:23:23,439
Speaker 1: one point three five five four, the en at one

444
00:23:23,520 --> 00:23:26,840
Speaker 1: sixteen point oh four and bitcoin at forty three thousand,

445
00:23:26,920 --> 00:23:29,680
Speaker 1: three hundred eighty dollars. Straight to had your latest local

446
00:23:29,720 --> 00:23:34,240
Speaker 1: headlines plus a check of sports, and this is Bloomberg,

447
00:23:38,680 --> 00:23:40,760
Speaker 1: Thanks caring. It's five thirty three on Wall Street, word

448
00:23:40,800 --> 00:23:43,359
Speaker 1: forty one degrees in Central Park and accident on the

449
00:23:43,440 --> 00:23:46,920
Speaker 1: southbound Eagans causing big delays after Fordham bro details of

450
00:23:47,000 --> 00:23:49,800
Speaker 1: traffic first Michael Barr with what else is going on

451
00:23:49,840 --> 00:23:51,600
Speaker 1: in New York and around the world. Michael, thank you

452
00:23:51,720 --> 00:23:54,720
Speaker 1: very much. Nathan, Former New York Governor Andrew Cuomo will

453
00:23:54,840 --> 00:23:58,399
Speaker 1: personally file a complaint against State Attorney General Letitia James.

454
00:23:58,840 --> 00:24:03,760
Speaker 1: Cuomo's Hernie Rita Glaman says the ex governor feels strongly

455
00:24:03,840 --> 00:24:08,040
Speaker 1: there was misconduct in the manner of James's civil investigation.

456
00:24:08,480 --> 00:24:12,520
Speaker 1: According to the report, Cuomo sexually harassed eleven women, allegations

457
00:24:12,600 --> 00:24:16,080
Speaker 1: he has denied. President Joe Biden appears to be narrowing

458
00:24:16,280 --> 00:24:19,520
Speaker 1: his list of candidates for the Supreme Court, saying he's

459
00:24:19,600 --> 00:24:23,399
Speaker 1: looking at about four people to replace retiring Justice Stephen Bryant.

460
00:24:23,760 --> 00:24:27,560
Speaker 1: Biden spoke in an interview with NBC, I think, well, whoever,

461
00:24:27,640 --> 00:24:29,880
Speaker 1: I think we'll get a vote from the publican side

462
00:24:29,920 --> 00:24:32,560
Speaker 1: for the following reason. I'm not looking to make an

463
00:24:32,600 --> 00:24:36,040
Speaker 1: ideological choice. Sure, I'm looking for someone to replace Judge

464
00:24:36,080 --> 00:24:40,240
Speaker 1: Bryer with the same kind of capacity Judge Brier, with

465
00:24:40,359 --> 00:24:45,000
Speaker 1: an open mind, who understands in a constitution interperson in

466
00:24:45,040 --> 00:24:48,200
Speaker 1: a way that is consistent with the mainstream interpretation of

467
00:24:48,280 --> 00:24:51,200
Speaker 1: the Constitution. President Biden has said his nominee will be

468
00:24:51,280 --> 00:24:54,040
Speaker 1: a black woman, and he will decide on the ind February,

469
00:24:54,600 --> 00:24:57,520
Speaker 1: at least six auto plants near the US Canada border

470
00:24:57,640 --> 00:25:01,320
Speaker 1: have slashed output as the impact from a protest blocking

471
00:25:01,440 --> 00:25:05,680
Speaker 1: truck traffic into Detroit begins rippling through both nations economies.

472
00:25:05,920 --> 00:25:08,960
Speaker 1: The blockade started Monday as an offshoot of the Trucker

473
00:25:09,080 --> 00:25:13,000
Speaker 1: Convoy and Ottawa the protest vaccine mandate for drivers who

474
00:25:13,080 --> 00:25:17,440
Speaker 1: travel across the US border. Windsor, Ontario Mayor Drew Dilkins

475
00:25:17,720 --> 00:25:21,000
Speaker 1: wants it to end peacefully. Something has to happen, something

476
00:25:21,080 --> 00:25:23,919
Speaker 1: has to give, and if we can't gain compliance, then

477
00:25:24,000 --> 00:25:26,880
Speaker 1: we bring toe tracks in and and many police services

478
00:25:26,960 --> 00:25:29,399
Speaker 1: to help remove people who are legally blocking the roadway

479
00:25:29,480 --> 00:25:32,560
Speaker 1: leading to this crossing. Bilkins says the blockade at the

480
00:25:32,560 --> 00:25:36,160
Speaker 1: Ambassador Bridge, which links Windsor to Detroit, is the busiest

481
00:25:36,200 --> 00:25:39,359
Speaker 1: border crossing between the two countries, with four hundred million

482
00:25:39,440 --> 00:25:43,000
Speaker 1: dollars a day crossing at the border. Nevada is the

483
00:25:43,080 --> 00:25:45,960
Speaker 1: latest state to announce masks will no longer be required

484
00:25:46,000 --> 00:25:49,959
Speaker 1: in public. Governor Steve ciscilaccided downward Trends and COVID Statistics

485
00:25:50,400 --> 00:25:52,760
Speaker 1: Global names twenty four hours a day on air and

486
00:25:52,920 --> 00:25:56,399
Speaker 1: on Bloomberg Quicktake powered by more than twenty seven hundred

487
00:25:56,440 --> 00:25:59,240
Speaker 1: journalists an analists more than a hundred twenty countries. MICHAELA

488
00:25:59,240 --> 00:26:06,600
Speaker 1: bar this is Froberg HALRK. Michael, thank you. It's like

489
00:26:07,359 --> 00:26:09,280
Speaker 1: Wall Street and time for the Bloomberg Sports upthing with

490
00:26:09,359 --> 00:26:12,200
Speaker 1: John Sensick Nathan. About a week after Nets coach Steve

491
00:26:12,320 --> 00:26:15,679
Speaker 1: Nash insisted the team was not going to trade James Harden,

492
00:26:16,119 --> 00:26:19,359
Speaker 1: they traded James Harten to Philadelphia and a blockbuster trade

493
00:26:19,400 --> 00:26:22,200
Speaker 1: involving five players and the Nets getting two first round

494
00:26:22,280 --> 00:26:24,840
Speaker 1: draft pick. But at its core, it is Hardened for

495
00:26:25,000 --> 00:26:28,080
Speaker 1: Ben Simmons, two All star point guards. Harden had made

496
00:26:28,119 --> 00:26:30,479
Speaker 1: it known he was not planning to resign with Brooklyn

497
00:26:30,520 --> 00:26:33,600
Speaker 1: after the season, and Simmons so unhappy and Philly he

498
00:26:33,680 --> 00:26:36,119
Speaker 1: had refused to play a minute for the Sixers this season.

499
00:26:36,200 --> 00:26:40,119
Speaker 1: Hardened is vastly superior to Simmons offensively, but Simmons is

500
00:26:40,160 --> 00:26:43,200
Speaker 1: a six ten point guard and could rebound and defend.

501
00:26:43,680 --> 00:26:46,239
Speaker 1: The odds on the Sixers winning the NBA Championship had

502
00:26:46,280 --> 00:26:49,600
Speaker 1: dropped from twelve to one to seven one. Nets lost

503
00:26:49,640 --> 00:26:52,280
Speaker 1: in Washington one thirteen to one. Twelve that's the tenth

504
00:26:52,320 --> 00:26:54,200
Speaker 1: lost in a row. The Knicks was maybe their best

505
00:26:54,240 --> 00:26:57,480
Speaker 1: one of the season late last night one fourteen at

506
00:26:57,560 --> 00:27:00,400
Speaker 1: Golden State Devils, two nights after a five old first

507
00:27:00,440 --> 00:27:02,520
Speaker 1: period of seven to one win, scored five and the

508
00:27:02,640 --> 00:27:06,280
Speaker 1: third and won seven four at St. Louis. Controversy at

509
00:27:06,320 --> 00:27:09,480
Speaker 1: the Olympics. What a surprise. It involves Russian doping. In

510
00:27:09,560 --> 00:27:12,600
Speaker 1: that word that the fifteen year old figure skating phenom

511
00:27:12,680 --> 00:27:16,320
Speaker 1: Camilla Valieva actually tested positive for a ban drug before

512
00:27:16,440 --> 00:27:19,200
Speaker 1: the Olympics began. It's not known of Russia will keep

513
00:27:19,200 --> 00:27:22,080
Speaker 1: its gold medal in the team competition or a Valieva

514
00:27:22,119 --> 00:27:25,000
Speaker 1: can compete in the individual where she is the favorite.

515
00:27:25,320 --> 00:27:28,000
Speaker 1: After nearly a half century with the two leagues plained

516
00:27:28,040 --> 00:27:33,320
Speaker 1: by different rules, baseball is going to the Universal d A.

517
00:27:33,520 --> 00:27:36,480
Speaker 1: Jaron Rodgers named NFL m v P in his speech.

518
00:27:36,520 --> 00:27:39,240
Speaker 1: He said he has great memories of playing in Green Bay,

519
00:27:39,720 --> 00:27:42,960
Speaker 1: fueling the belief he will not return the package. Johns Dasher,

520
00:27:43,000 --> 00:27:46,399
Speaker 1: Bloombrook Sports Okay, John, thank you, five thirty seven on

521
00:27:46,520 --> 00:27:49,240
Speaker 1: Wall Street time for the Tri State Business Report. Here's

522
00:27:49,240 --> 00:27:52,760
Speaker 1: Bloomberg's head Cory the market for New York City apartment

523
00:27:52,880 --> 00:27:57,680
Speaker 1: buildings reignited. In one there were three eighties six multifamily

524
00:27:57,760 --> 00:28:02,040
Speaker 1: transactions of fifty pc from twenty According to a report

525
00:28:02,080 --> 00:28:05,719
Speaker 1: by Aerial Property Advisors. The dollar volume of those deals

526
00:28:05,800 --> 00:28:09,040
Speaker 1: was about eight billion dollars, a seventy two percent increase.

527
00:28:09,240 --> 00:28:12,119
Speaker 1: New Jersey will receive more than fifteen million dollars this

528
00:28:12,240 --> 00:28:16,560
Speaker 1: year to improve the state's existing infrastructure for charging electric vehicles.

529
00:28:16,840 --> 00:28:19,520
Speaker 1: Is funding games to expand upon the network of charges

530
00:28:19,520 --> 00:28:23,159
Speaker 1: across the state, including rural and urban areas, and as

531
00:28:23,200 --> 00:28:26,040
Speaker 1: part of the country's efforts to construct a national network

532
00:28:26,119 --> 00:28:30,520
Speaker 1: of electric vehicle chargers. Fordham University has named its new president,

533
00:28:30,760 --> 00:28:34,080
Speaker 1: Tanya Tetlow, is the first woman and first lay person

534
00:28:34,200 --> 00:28:36,800
Speaker 1: to lead the school. She broke the same two barriers

535
00:28:36,880 --> 00:28:40,000
Speaker 1: in her previous job, serving since twenty eight team as

536
00:28:40,040 --> 00:28:43,680
Speaker 1: president of Loyola University, New Orleans, one hundred ten year

537
00:28:43,720 --> 00:28:47,320
Speaker 1: old Jesuit University. That Drew Bloomberg try State Business Report.

538
00:28:47,400 --> 00:28:49,680
Speaker 1: I'm in Corey. Thanks that It's five thirty eight on

539
00:28:49,760 --> 00:28:51,760
Speaker 1: Wall Street. Bloomberg Radio is on the air from San

540
00:28:51,800 --> 00:28:54,880
Speaker 1: Francisco to New York, London to Hong Kong. Let's check

541
00:28:54,880 --> 00:28:56,560
Speaker 1: in with our global news team for some of the

542
00:28:56,640 --> 00:28:59,640
Speaker 1: top stories heard on our three hundred affiliate radio stations

543
00:28:59,680 --> 00:29:05,520
Speaker 1: around the world. I'm Steve photos Can on ten ten

544
00:29:05,600 --> 00:29:08,080
Speaker 1: Wins in New York. We're talking about how the Plaza

545
00:29:08,160 --> 00:29:11,600
Speaker 1: Hotel is offering a stay in a marvelous Missus Masal

546
00:29:11,720 --> 00:29:15,800
Speaker 1: themed suite. UNH on w h S and Logal. There's

547
00:29:15,800 --> 00:29:18,160
Speaker 1: a brunch on chicken wings coming ahead of the Super Bowl.

548
00:29:18,320 --> 00:29:20,760
Speaker 1: I'm callin head from bloom Bag dav Digital A David

549
00:29:20,800 --> 00:29:23,320
Speaker 1: lundon women porting on UK growth at seven and a

550
00:29:23,360 --> 00:29:27,360
Speaker 1: half percent in twenty one, the fastest since World War Two.

551
00:29:27,920 --> 00:29:30,840
Speaker 1: I'm ed Corey on w w J in Detroit. I'm

552
00:29:30,880 --> 00:29:34,720
Speaker 1: reporting more automakers have scaled back production because the parts

553
00:29:34,880 --> 00:29:38,960
Speaker 1: shortages stemming from a trucker protest against pandemic Man Dame

554
00:29:39,720 --> 00:29:41,720
Speaker 1: and those are some of the stories are twenty seven

555
00:29:41,800 --> 00:29:44,240
Speaker 1: hundred Bloomberg journalists and analysts are working on this morning

556
00:29:44,280 --> 00:29:46,960
Speaker 1: around the world. It's five thirty nine on Wall Street.

557
00:29:47,440 --> 00:29:51,200
Speaker 1: The following is an editorial from Bloomberg Opinion. A further

558
00:29:51,360 --> 00:29:55,240
Speaker 1: spike in US inflation in January, prices rose seven point

559
00:29:55,320 --> 00:29:58,520
Speaker 1: five percent compared with the previous year. Was the last

560
00:29:58,560 --> 00:30:01,120
Speaker 1: thing the Federal Reserve that the Sea as a weighs

561
00:30:01,160 --> 00:30:05,040
Speaker 1: its next monetary policy moves. The central Bank had led

562
00:30:05,120 --> 00:30:08,480
Speaker 1: investors to expect a very gradual increase in interest rates

563
00:30:08,560 --> 00:30:12,080
Speaker 1: starting next month. Already under pressure to move faster and

564
00:30:12,240 --> 00:30:15,120
Speaker 1: more boldly, the FED will now need to think hard

565
00:30:15,160 --> 00:30:19,080
Speaker 1: about its plans and messaging. But the new inflation numbers

566
00:30:19,360 --> 00:30:22,560
Speaker 1: surprising as they were the most analysts don't call for

567
00:30:22,680 --> 00:30:27,120
Speaker 1: a wholesale shift in strategy just yet. Rather, the Fed

568
00:30:27,240 --> 00:30:29,640
Speaker 1: needs to show that it's paying attention to the data

569
00:30:29,840 --> 00:30:32,440
Speaker 1: and is alert to the risks of doing too much

570
00:30:32,880 --> 00:30:37,680
Speaker 1: as well as too little. Open mindedness, patience, and gradualism

571
00:30:37,840 --> 00:30:41,360
Speaker 1: will remain key to its success. This editorial was written

572
00:30:41,400 --> 00:30:44,680
Speaker 1: by the Bloomberg Opinion Editorial Board. I'm David Schipley. For

573
00:30:44,800 --> 00:30:47,600
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash

574
00:30:47,640 --> 00:30:51,200
Speaker 1: opinion or op and go on the Bloomberg terminal. This

575
00:30:51,480 --> 00:30:54,520
Speaker 1: has been Bloomberg Opinion, and you can hear Bloomberg opinion

576
00:30:54,600 --> 00:30:57,680
Speaker 1: editorials every weekday. At this time. Terminal customers can read

577
00:30:57,720 --> 00:31:00,760
Speaker 1: more at OPI nd go as of be futures down

578
00:31:00,800 --> 00:31:02,960
Speaker 1: twenty three point, staff futures down a hundred thirty eight.

579
00:31:03,080 --> 00:31:06,040
Speaker 1: NASTAC futures down a hundred two points, the tenure treasury

580
00:31:06,080 --> 00:31:09,280
Speaker 1: of nine thirty seconds, the yield one point nine nine

581
00:31:09,440 --> 00:31:14,680
Speaker 1: per cent. What's inflation doing to demand for chocolate as

582
00:31:14,720 --> 00:31:17,960
Speaker 1: we get closer to Valentine's Day? I love a report

583
00:31:18,000 --> 00:31:23,640
Speaker 1: on that shortly. This is Bloomberg Bloomberg eleven three oh

584
00:31:23,680 --> 00:31:28,080
Speaker 1: weather sunshine upper forties today, low fifties tomorrow, Snow possible,

585
00:31:28,200 --> 00:31:30,640
Speaker 1: especially over Long Island on Sunday with hines the low

586
00:31:30,760 --> 00:31:38,560
Speaker 1: thirties right now forty one in Central Park Markets, headlines

587
00:31:38,640 --> 00:31:41,600
Speaker 1: and breaking news twenty four hours a day at Bloomberg

588
00:31:41,680 --> 00:31:45,080
Speaker 1: dot Com, the Bloomberg Business at and at Bloomberg Quick Tape.

589
00:31:45,280 --> 00:31:54,280
Speaker 1: This is a Bloomberg Business Flash, and I'm Karen Moscow

590
00:31:54,480 --> 00:31:57,719
Speaker 1: stalks are extending their declines along with US stock index

591
00:31:57,800 --> 00:32:00,840
Speaker 1: futures as red haw US inflation still that's on faster

592
00:32:01,040 --> 00:32:04,400
Speaker 1: Federal reserve interest rate hikes amid speculation about the monetary

593
00:32:04,480 --> 00:32:07,040
Speaker 1: policy outlook. We checked the markets every fifteen minutes throughout

594
00:32:07,040 --> 00:32:10,280
Speaker 1: the trading day on Bloomberg SMP future is down twenty

595
00:32:10,320 --> 00:32:13,120
Speaker 1: two points this morning. Down futures down one hundred thirty nine.

596
00:32:13,480 --> 00:32:16,040
Speaker 1: NAS day futures down at ninety five the decks in

597
00:32:16,120 --> 00:32:19,120
Speaker 1: Germany's down seven tenths of upper set tack in Paris

598
00:32:19,200 --> 00:32:21,160
Speaker 1: down one point one percent, and the foot Sea one

599
00:32:21,240 --> 00:32:23,640
Speaker 1: hundred is down three quarters of a per set pen.

600
00:32:23,720 --> 00:32:26,480
Speaker 1: Your treasury up eight thirty seconds yield one point nine

601
00:32:26,560 --> 00:32:28,880
Speaker 1: nine percent. They yield on the two year one point

602
00:32:28,960 --> 00:32:31,960
Speaker 1: five nine percent. Ni Max Screwed oil is up half

603
00:32:32,040 --> 00:32:34,360
Speaker 1: per cent or forty five cents and ninety dollars thirty

604
00:32:34,400 --> 00:32:37,080
Speaker 1: three cents a barrel co makes gold down half percent

605
00:32:37,200 --> 00:32:39,440
Speaker 1: or nine dollars sixty cents at one thousand, eight hundred

606
00:32:39,480 --> 00:32:42,760
Speaker 1: twenty seven dollars eighty cents announced. The euro one point

607
00:32:42,800 --> 00:32:45,360
Speaker 1: one three nine four against the dollar British found one

608
00:32:45,400 --> 00:32:48,160
Speaker 1: point three five six three, the ns at one sixteen

609
00:32:48,240 --> 00:32:51,440
Speaker 1: point oh one and Bitcoin this morning moving lower at

610
00:32:51,520 --> 00:32:54,640
Speaker 1: forty three thousand, five hundred dollars. Today we are looking

611
00:32:54,680 --> 00:32:57,080
Speaker 1: for a report on consumer sentiment. It's out at ten

612
00:32:57,120 --> 00:33:00,400
Speaker 1: o'clock Wall Street time, and good Year and under Armor

613
00:33:00,480 --> 00:33:04,120
Speaker 1: among companies that are scheduled to report earnings today. That's

614
00:33:04,120 --> 00:33:06,800
Speaker 1: a Bloomberg business lash. Now here's Michael Barrow with more

615
00:33:06,880 --> 00:33:09,400
Speaker 1: on what's going on around the world. Michael Karen, thank

616
00:33:09,440 --> 00:33:13,440
Speaker 1: you kindly. The US reasserted its intention to impose swift,

617
00:33:13,560 --> 00:33:17,560
Speaker 1: severe costs on Russia if the Kremlin takes any aggressive

618
00:33:17,680 --> 00:33:22,360
Speaker 1: acts against Ukraine. Meanwhile, Germany and France pushed forward diplomatic efforts.

619
00:33:22,800 --> 00:33:26,440
Speaker 1: There are now multiple trucker blockades along the US and

620
00:33:26,680 --> 00:33:30,760
Speaker 1: Canada border. US officials are urging their Canadian counterparts to

621
00:33:30,920 --> 00:33:34,240
Speaker 1: end the disruption along the Ambassador Bridge, a key trade

622
00:33:34,360 --> 00:33:39,240
Speaker 1: route for automakers between Windsor, Ontario and Detroit. Protesters are

623
00:33:39,600 --> 00:33:44,960
Speaker 1: against the mandates for COVID. Snowboarder Shaun Why competed in

624
00:33:45,080 --> 00:33:48,080
Speaker 1: his final men's half five today the Beijing Olympics. He

625
00:33:48,120 --> 00:33:50,840
Speaker 1: finished fourth out of the podium. The US has won

626
00:33:50,920 --> 00:33:53,960
Speaker 1: four gold medals and ten medals overall. In the NBA,

627
00:33:54,080 --> 00:33:56,800
Speaker 1: the Knicks beat the Warriors won sixteen, one, fourteen, The

628
00:33:56,880 --> 00:33:59,920
Speaker 1: Wizards beat the Nets one, thirteen, one, twelve. In the NHL,

629
00:34:00,000 --> 00:34:02,600
Speaker 1: all the Devils and Capitols won, the Bruins lost. And

630
00:34:02,680 --> 00:34:06,000
Speaker 1: it could be ninety degrees for Super Bowl fifty six

631
00:34:06,120 --> 00:34:12,880
Speaker 1: Sunday at Inglewood, California. That is so five yeah, Global

632
00:34:12,960 --> 00:34:18,279
Speaker 1: News Sufi Stadium, nothing, Global News twenty four hours. It'll

633
00:34:18,360 --> 00:34:24,520
Speaker 1: hit you a day on air on Bloomberg Quick Take

634
00:34:25,280 --> 00:34:28,799
Speaker 1: Power five. More than seven hundred journalists and analysts are

635
00:34:28,840 --> 00:34:33,560
Speaker 1: more than countries. I'm Michael Bart. This is Bloomberg. Nathan Okay, Michael,

636
00:34:33,600 --> 00:34:35,600
Speaker 1: thank you. It's coming up to five fifty on Wall

637
00:34:35,640 --> 00:34:38,400
Speaker 1: Street Live from the Bloomberg Interactive Broker Studios. This is

638
00:34:38,440 --> 00:34:42,719
Speaker 1: Bloomberg Daybreak. I'm Nathan Hagar. Monday is Valentine's Day, and

639
00:34:43,000 --> 00:34:45,920
Speaker 1: just like everything else, the price of chocolate and flowers

640
00:34:46,120 --> 00:34:49,080
Speaker 1: is higher this year. Yeah, supply chain issues are hitting

641
00:34:49,160 --> 00:34:52,879
Speaker 1: Valentine's Day, but the pandemic has done nothing to damp

642
00:34:52,920 --> 00:34:56,960
Speaker 1: in America's sweet tooth. Demand for chocolate remains high nationwide

643
00:34:57,239 --> 00:35:00,359
Speaker 1: as retail sales rise by more than five percent a quarter.

644
00:35:00,719 --> 00:35:03,000
Speaker 1: The high demand, coupled with tightening supply, has led to

645
00:35:03,080 --> 00:35:06,319
Speaker 1: a sharp spike in the price of coco. So how's

646
00:35:06,320 --> 00:35:09,279
Speaker 1: it shaken out at the candy store? We sent Bloombergs

647
00:35:09,320 --> 00:35:11,920
Speaker 1: and most due to Oh Shoko Law chocolate shop in

648
00:35:12,040 --> 00:35:14,720
Speaker 1: Boston's Financial District to speak with the owner, Ed Boyer

649
00:35:15,080 --> 00:35:20,280
Speaker 1: and find out more. You know, it's an interesting twist

650
00:35:20,360 --> 00:35:23,960
Speaker 1: on the supply tack. It's getting worse. Easter is going

651
00:35:24,000 --> 00:35:27,359
Speaker 1: to be even more so, so it's getting worse. Yes,

652
00:35:27,920 --> 00:35:31,279
Speaker 1: we have several companies that have eliminated almost a third

653
00:35:31,360 --> 00:35:34,520
Speaker 1: to a half of their product line, chocolate makers, the

654
00:35:34,600 --> 00:35:39,440
Speaker 1: manufacturers themselves simply because not necessarily always because of raw materials,

655
00:35:39,440 --> 00:35:41,600
Speaker 1: some of its raw materials. A lot of it's trucking

656
00:35:42,280 --> 00:35:45,680
Speaker 1: and staffing in the factories. But it's not just one factory.

657
00:35:45,760 --> 00:35:48,680
Speaker 1: It's like everywhere are the factories that are making individual

658
00:35:48,719 --> 00:35:51,440
Speaker 1: trufles for you? And I have quite a few suppliers.

659
00:35:51,520 --> 00:35:54,879
Speaker 1: So the one company I'm speaking of in particulars out

660
00:35:54,920 --> 00:35:57,920
Speaker 1: in the Midwest, I have other factories that we deal

661
00:35:58,000 --> 00:36:01,919
Speaker 1: with in Burlington, Vermont there wholesale, and then I deal

662
00:36:01,960 --> 00:36:05,399
Speaker 1: with this company which comes from Pennsylvania. We also deal

663
00:36:05,640 --> 00:36:09,760
Speaker 1: directly with Belgium and they have had supply chain issues

664
00:36:09,840 --> 00:36:13,960
Speaker 1: as well. Staffing is a big portion of what the

665
00:36:14,120 --> 00:36:18,319
Speaker 1: issue is. Then the question is where is everybody? When

666
00:36:18,480 --> 00:36:20,920
Speaker 1: is everyone coming back? A lot of people like me

667
00:36:21,000 --> 00:36:25,759
Speaker 1: have retired, so that leaves some vacancies. So who's coming in?

668
00:36:26,640 --> 00:36:30,359
Speaker 1: What's the new business model gonna be? When you talk

669
00:36:30,400 --> 00:36:35,040
Speaker 1: about where the chocolate is coming from, Midwest, Belgium, Pennsylvania,

670
00:36:35,280 --> 00:36:37,120
Speaker 1: are you having to do any scrambling me because you

671
00:36:37,239 --> 00:36:43,960
Speaker 1: have literally thousands When you scrambling, yes, we're readapting everything

672
00:36:44,040 --> 00:36:46,640
Speaker 1: that we would do. You do this for so many years,

673
00:36:46,719 --> 00:36:48,960
Speaker 1: which I've been doing like forty. You just kind of

674
00:36:49,040 --> 00:36:50,799
Speaker 1: know and you know your market and you know what's

675
00:36:50,840 --> 00:36:53,720
Speaker 1: gonna go and how you're going to present your product.

676
00:36:54,200 --> 00:36:57,359
Speaker 1: You put in certain orders and then you're told two

677
00:36:57,400 --> 00:37:00,400
Speaker 1: months later, we're not producing that item that you chose.

678
00:37:01,120 --> 00:37:03,960
Speaker 1: Now what do you do? So when you say scramble, yeah,

679
00:37:04,040 --> 00:37:05,800
Speaker 1: you're gonna look and say, well do I need that

680
00:37:06,600 --> 00:37:09,680
Speaker 1: or do I want something else? But because we're also

681
00:37:09,920 --> 00:37:13,120
Speaker 1: stuck in the realm where Boston is not reopening. Now

682
00:37:13,239 --> 00:37:15,440
Speaker 1: you look at it go well, maybe that was a godsend.

683
00:37:15,480 --> 00:37:17,520
Speaker 1: I don't need the product because what am I going

684
00:37:17,560 --> 00:37:19,680
Speaker 1: to do with it? And we've got burnt for the

685
00:37:19,800 --> 00:37:23,239
Speaker 1: last two years. Much of your customer basis it's all

686
00:37:23,320 --> 00:37:28,279
Speaker 1: based here. Yeah, we are people using your website, yeah,

687
00:37:28,400 --> 00:37:30,160
Speaker 1: but not as much as you might think they were

688
00:37:30,239 --> 00:37:33,359
Speaker 1: doing it a lot more a year ago. Because now

689
00:37:33,440 --> 00:37:37,160
Speaker 1: everybody thinks everything's open and out in the burbs, and

690
00:37:37,200 --> 00:37:40,000
Speaker 1: why not, things are open a lot more than down here.

691
00:37:40,040 --> 00:37:42,640
Speaker 1: I mean, this is desolate. So the people who would

692
00:37:42,760 --> 00:37:46,920
Speaker 1: be working here are living in Quincy or Beverly, so

693
00:37:47,080 --> 00:37:49,640
Speaker 1: they have other options, So they're not really thinking of,

694
00:37:49,920 --> 00:37:53,359
Speaker 1: you know, necessarily find online. And is Valentine's at your

695
00:37:53,360 --> 00:38:00,719
Speaker 1: biggest day of the year? Yeah, it was, it was.

696
00:38:01,080 --> 00:38:03,520
Speaker 1: This is only about half of what we would normally do.

697
00:38:03,960 --> 00:38:06,840
Speaker 1: How you had troublesourcing the boxes the Red Heart shaper.

698
00:38:07,600 --> 00:38:10,919
Speaker 1: We knew supply chains was an issue a year ago,

699
00:38:11,840 --> 00:38:14,760
Speaker 1: and I say, we're six months in advance. I ordered

700
00:38:14,840 --> 00:38:18,600
Speaker 1: my Heart's back in June and took delivery in June,

701
00:38:19,200 --> 00:38:22,840
Speaker 1: where I normally wouldn't take delivery until January. But I

702
00:38:22,960 --> 00:38:26,120
Speaker 1: wasn't going to take that chance that because you placed

703
00:38:26,160 --> 00:38:28,520
Speaker 1: the order doesn't mean you're getting the order right. What

704
00:38:28,640 --> 00:38:33,000
Speaker 1: about prices? And you had to read your God, I

705
00:38:33,080 --> 00:38:36,560
Speaker 1: have to ask. I have one manufacturer I deal with.

706
00:38:36,880 --> 00:38:40,400
Speaker 1: They've had two price increases of about eight percent twice

707
00:38:40,480 --> 00:38:42,920
Speaker 1: in this last year. Well, so are people gonna how

708
00:38:43,000 --> 00:38:44,200
Speaker 1: much more are they going to spend on the box

709
00:38:44,200 --> 00:38:46,479
Speaker 1: of chocolate this year? To be honest with you, really

710
00:38:46,560 --> 00:38:49,479
Speaker 1: basically the same prices as they were last year. There's

711
00:38:49,560 --> 00:38:51,960
Speaker 1: people working in town. When they come in, I don't

712
00:38:52,000 --> 00:38:54,719
Speaker 1: want people to be sticker shock and then leaving and

713
00:38:54,800 --> 00:38:57,600
Speaker 1: then going to you know, your local drugstores. But I

714
00:38:57,640 --> 00:38:59,879
Speaker 1: want them to look at this and say, Okay, that's

715
00:39:00,000 --> 00:39:02,359
Speaker 1: still reasonable. Most people that want to come in here

716
00:39:02,400 --> 00:39:04,759
Speaker 1: to go I'm glad you survived, and I'm saying no,

717
00:39:05,000 --> 00:39:07,200
Speaker 1: I'm still in the I c U unit and I'm

718
00:39:07,239 --> 00:39:12,160
Speaker 1: on a respirator. How long do you think we can survive?

719
00:39:12,600 --> 00:39:15,560
Speaker 1: I mean, so, I've had one decent month in all

720
00:39:17,400 --> 00:39:19,400
Speaker 1: in the beginning of the first year. You had p

721
00:39:19,560 --> 00:39:22,759
Speaker 1: P p Okay that covered some payroll, doesn't cover all

722
00:39:22,800 --> 00:39:25,840
Speaker 1: your expenses. I had to take out an sp A loan.

723
00:39:26,200 --> 00:39:29,239
Speaker 1: It's not a grant, so that gives you cash flow

724
00:39:29,360 --> 00:39:31,799
Speaker 1: to make bills, but you're not making anything. And then

725
00:39:31,880 --> 00:39:34,160
Speaker 1: you're doing it based on the thought that, well, you're

726
00:39:34,160 --> 00:39:37,840
Speaker 1: going to be reopening soon. That has yet to happen again.

727
00:39:37,960 --> 00:39:41,120
Speaker 1: That's Ed Boy, or owner of Shock a Lot. Technically,

728
00:39:41,239 --> 00:39:44,680
Speaker 1: Boston stores have reopened, but the financial district has almost

729
00:39:44,760 --> 00:39:47,360
Speaker 1: no foot traffic because so many people are still working

730
00:39:47,440 --> 00:39:50,480
Speaker 1: from home. I heard something similar just down the street

731
00:39:50,520 --> 00:39:53,880
Speaker 1: from a local florist. Robin's Flower Shop has long been

732
00:39:53,920 --> 00:39:57,279
Speaker 1: a popular cash and carry place on Devonshire Street and

733
00:39:57,440 --> 00:40:00,560
Speaker 1: now in the heart of downtown, crossing across from Macy's.

734
00:40:01,080 --> 00:40:03,919
Speaker 1: But today I didn't find Robin there. She's been busy

735
00:40:04,000 --> 00:40:07,360
Speaker 1: working on phone and online orders for Valentine's Day. I

736
00:40:07,480 --> 00:40:10,280
Speaker 1: caught up with her by phone. You're right in saying

737
00:40:10,360 --> 00:40:13,400
Speaker 1: downtown is very quiet, that we have a really large

738
00:40:13,560 --> 00:40:16,959
Speaker 1: online presence, dinging ons up and so as the phone

739
00:40:17,800 --> 00:40:20,839
Speaker 1: not a lot of walk. We're delivering what took up,

740
00:40:20,880 --> 00:40:24,359
Speaker 1: whatever is most convenient for our customer day. I heard

741
00:40:24,440 --> 00:40:26,640
Speaker 1: roses are going to be more expensive than usual this year.

742
00:40:26,719 --> 00:40:29,200
Speaker 1: Is that true? Are you steering people toward other flowers?

743
00:40:29,480 --> 00:40:31,800
Speaker 1: I would say if you planned the head, you're in

744
00:40:31,920 --> 00:40:35,480
Speaker 1: good stead. If you're waiting to last minute, then you'll

745
00:40:35,520 --> 00:40:38,160
Speaker 1: probably pay a little bit of a premium price for it.

746
00:40:38,600 --> 00:40:40,400
Speaker 1: Is it a difference in price for last year, like

747
00:40:40,480 --> 00:40:43,000
Speaker 1: a dozen roses last year versus this year? You know

748
00:40:43,440 --> 00:40:45,920
Speaker 1: we're setting at the same price as we were last year.

749
00:40:46,120 --> 00:40:49,320
Speaker 1: Cash and Carrie long samread will be forty dollars. It

750
00:40:49,400 --> 00:40:54,000
Speaker 1: doesn't if you're looking for something that is delivered Innova

751
00:40:54,480 --> 00:40:58,520
Speaker 1: maxilla and grains and whatnot, it is a hundred dollars

752
00:40:58,600 --> 00:41:01,239
Speaker 1: a dozen. Does it feel just like last year, or

753
00:41:01,320 --> 00:41:03,080
Speaker 1: does it feel like business is a little bit better,

754
00:41:03,120 --> 00:41:05,759
Speaker 1: a little bit worse. I would say that coming better

755
00:41:05,760 --> 00:41:07,719
Speaker 1: if people need a lot and there less. They want

756
00:41:07,760 --> 00:41:12,680
Speaker 1: to celebrate. People are not happy doing the same little

757
00:41:13,160 --> 00:41:15,200
Speaker 1: what they've been doing for the last two years during

758
00:41:15,239 --> 00:41:18,200
Speaker 1: the pandemic. They want to show their loved ones that

759
00:41:18,320 --> 00:41:22,280
Speaker 1: they're thinking of them. So I'm very positive this year again.

760
00:41:22,400 --> 00:41:26,040
Speaker 1: That's Robin Reubin, owner of Robin's Flower Shop in Boston's

761
00:41:26,080 --> 00:41:29,799
Speaker 1: Financial District. Bloomberg Television recently interviewed the head of one

762
00:41:29,840 --> 00:41:33,000
Speaker 1: eight hundred Flowers to discuss how cost pressures are affecting

763
00:41:33,040 --> 00:41:36,120
Speaker 1: the company. They have a website, one flowers dot com.

764
00:41:36,560 --> 00:41:40,239
Speaker 1: Their company in January offered weaker than expected full year

765
00:41:40,280 --> 00:41:43,960
Speaker 1: guidance since that cost increases hurt profit. Here's CEO Chris

766
00:41:44,080 --> 00:41:46,719
Speaker 1: McCann and I think what we're seeing is the inflation

767
00:41:46,800 --> 00:41:48,680
Speaker 1: of the cost pressures that many of us in the

768
00:41:48,760 --> 00:41:52,120
Speaker 1: retail industry are feeling are starting to impact the consumer.

769
00:41:52,239 --> 00:41:54,160
Speaker 1: And I think we're seeing the consumers start to pull

770
00:41:54,239 --> 00:41:56,640
Speaker 1: back a little bit. So while we had, you know,

771
00:41:56,840 --> 00:42:00,880
Speaker 1: real cost pressures this past quarter from Ocean Free inbound

772
00:42:00,920 --> 00:42:03,960
Speaker 1: freight outbound freight, labor cost pressures that we've had, and

773
00:42:04,080 --> 00:42:07,400
Speaker 1: those cost pressures have weighed heavily on one hundred flowers.

774
00:42:07,800 --> 00:42:10,279
Speaker 1: The stock is down around fifty per cent since it's

775
00:42:10,320 --> 00:42:13,880
Speaker 1: all time high reached about a year ago. Cocoa prices

776
00:42:13,920 --> 00:42:16,800
Speaker 1: are up more than eight per cent since December, and

777
00:42:16,920 --> 00:42:19,600
Speaker 1: stockpiles of cocoa at U s ports have fallen for

778
00:42:19,760 --> 00:42:24,279
Speaker 1: nearly four months, but demand remains sky high. Heading into

779
00:42:24,400 --> 00:42:28,720
Speaker 1: Valentine's Day in Boston, I'm Ann Moss to Bloomberg Daybreak.

780
00:42:29,080 --> 00:42:32,200
Speaker 1: All right, Anne, thank you. SMP futures right now are

781
00:42:32,280 --> 00:42:35,680
Speaker 1: down eighteen points down, futures down a hundred twelve, Nastack

782
00:42:35,760 --> 00:42:39,320
Speaker 1: futures are lower by ninety points. The tenure treasury is

783
00:42:39,360 --> 00:42:42,960
Speaker 1: up seven thirty seconds, the yield two point zero per cent.

784
00:42:43,520 --> 00:42:46,200
Speaker 1: Bloomberg Daybreak continues with your top stories of the morning

785
00:42:46,280 --> 00:42:49,080
Speaker 1: just ahead. This is Bloomberg