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

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Speaker 1: Bloomberg day Break for Thursday, January two. Coming up this hour,

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Speaker 1: the call for higher interest rates from the Fed grows

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Speaker 1: louder Lyle Brainerd heads to Capitol Hill for her Senate confirmation.

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Speaker 1: Hearing traders prepare for another reading on inflation this morning,

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Speaker 1: and a big name on Wall Street tells staff to

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Speaker 1: get booster shots or get out. House Minority Leader McCarthy

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Speaker 1: says he will not cooperate with Capitol Riot panel. Plus,

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Speaker 1: New York subways are getting a big chunk of federal

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Speaker 1: COVID funds. I'm Michael Barr. More Ahead, I'm John Stashon Ford.

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Speaker 1: The Knicks beat twas to reach five hundred, the Nets

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Speaker 1: one big in Chicago. St John's lost at Yukon in overtime.

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Speaker 1: That's all straight ahead on Bloomberg day Break on Bloomberg

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Speaker 1: Element Trio, New York, Bloomberg Washington, d C, Bloomberg one

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Speaker 1: O six one, Boston, Bloomberg nine sixties, San Francisco, Sirius

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Speaker 1: x M one nine team, and around the world along

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Speaker 1: Bloomberg Radio dot Com and via The Bloomberg Business or

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Speaker 1: Good Morning. I'm Nathan Hagar and I'm Karen Moscow, and

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Speaker 1: US DOT index futures are a little change this morning.

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Speaker 1: We're coming up to five oh one on Wall Street,

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Speaker 1: and we checked the markets every fifteen minutes throughout the

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Speaker 1: trading day on Bloomberg. Right now, S and P futures

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Speaker 1: are little changed, and so are DOWN futures and nasdack futures.

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Speaker 1: The decks in Germany is down less than a tenth

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Speaker 1: of upper cent and the tenure Treasury down to thirty seconds.

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Speaker 1: He at one point seven five per cent, Nathan, Karen,

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Speaker 1: we begin with more calls for higher interest rates. Now

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Speaker 1: at least four FED officials are calling for liftoff as

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Speaker 1: early as March. Here's Minneapolis FED President Neil cash Kari.

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Speaker 1: If you look at financial market indicators of where you

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Speaker 1: financial markets tank, inflation is going over the long term.

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Speaker 1: Over the long term, their solving in the camp, and

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Speaker 1: inflation is going back to historical levels of around two percent.

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Speaker 1: So that's I mean, I don't overweight that. That's one

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Speaker 1: data point that we paid tention to, but that at

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Speaker 1: least gives us some confidence. Minneapolis Fed President Neil cash

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Speaker 1: Kari made the comments at a town hall in Minnesota.

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Speaker 1: Other FED presidents are also calling for faster tightening. San

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Speaker 1: Francisco's Mary Daily wants to start in March. Patrick Harker

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Speaker 1: of Philadelphia wants at least three hikes this year, and St.

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Speaker 1: Louis chief Jim Bullard sees as many as four on

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Speaker 1: the calendar. Well, Nathan, the FEDS looking to fight the

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Speaker 1: hottest inflation and nearly four decades, and today we get

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Speaker 1: more data on prices. Economists forecast the producer price and

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Speaker 1: next for December will post a record annual increase of

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Speaker 1: nine point eight percent. Bloomberg's Vindale Juda's reports inflation is

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Speaker 1: rattling main street. The cost of living is rising at

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Speaker 1: the fastest Paceince n Based on December consumer price data,

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Speaker 1: November producer prices meantime scored the largest you rey or

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Speaker 1: increased so far, up nine point six And yet Boomberg

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Speaker 1: Economics he's hope forecasting producer prices topping out this quarter

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Speaker 1: based on Factreet data and noting order backlocks and supply

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Speaker 1: fired delivery glaze peaked in May. Vine Bloomberg day break,

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Speaker 1: All right, Vinnie, Thanks, As the FED fights inflation, the

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Speaker 1: Biden administrations working to fill vacant seats at the Central Bank,

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Speaker 1: and it looks like it's getting close. We get more

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Speaker 1: from Bloomberg's Doug Prisner. The director of the National Economic Council,

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Speaker 1: Brian Deese, told reporters the White House is working closely

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Speaker 1: with congressional leadership to finalize the list. As we previously reported,

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Speaker 1: Sarah bloom Raskin as a leading contender for the vice

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Speaker 1: chair of Supervision, but earlier this week, the top Republican

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Speaker 1: on the Senate Banking Committee, Pat Toomey, said he has

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Speaker 1: serious concerns about the possible nomination of Raskin. There are

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Speaker 1: two additional openings, were told. Economist Philip Jefferson is a

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Speaker 1: likely nominee, and FED Governor Lyle Brainerd has been nominated

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Speaker 1: as FED vice chair. Today, she'll have her confirmation hearing

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Speaker 1: in New York on Doug Prisner Bloomberg Daybreak. All right, Douck,

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Speaker 1: thank you. In that confirmation hearing for Lyle brainer it

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Speaker 1: will be front and center this morning. We get a

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Speaker 1: preview now from Bloomberg's Minchael McKee. Governor Brainer's nomination hearing

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Speaker 1: maybe a bit more contentious than the reception. Fed Chair

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Speaker 1: Powell got on Tuesday, Banking Committee senators were largely content

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Speaker 1: to get Powell's views on the economy and inflation and

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Speaker 1: the implications for interest rates. Brainerd, however, is likely to

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Speaker 1: face tougher questions about the future of FED policies involving

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Speaker 1: diversity and climate change. She has advocated for both positions

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Speaker 1: Republicans don't see as part of the Central Banks mandate.

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Speaker 1: She will defend those efforts as vital to the Fed's

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Speaker 1: ability to boost growth and promote financial stability, and although

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Speaker 1: the questioning may be tougher, Brainard, like Powell, is expected

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Speaker 1: to win confirmation. Michael McKee Bloomberg Daybreak. All right, Mike, thanks,

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Speaker 1: Let's turn our attention to the pandemic now. Daily COVID

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Speaker 1: cases remain high, but there are signs the omicron wave

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Speaker 1: could be easing. The most serious illness continues to be

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Speaker 1: among the unvaccinated. The CDC says almost all teens that

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Speaker 1: need intensive care have not received shots. Bloomberg's said, Baxter

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Speaker 1: has the story. The CDC says this bolsters the research

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Speaker 1: that says the fiser regiment of works and reventing severe

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Speaker 1: disease and team it says preventing nine eight per cent

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Speaker 1: of the I c U visits and ninety four percent

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Speaker 1: of hospitalizations. The sample sizes and teams are too small

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Speaker 1: for the CDC to translate it to older populations, but

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Speaker 1: what it does say is that having a very sixteen

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Speaker 1: is preventable. CDC says the reports of deaths were all

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Speaker 1: unvaccinated in San Francisco. I'm at Baxter Bloomberg Daybreak, all right,

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Speaker 1: and thank you. Well. As COVID cases remain high, so

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Speaker 1: does the cost of N ninety five masks. The CDC

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Speaker 1: has considered changing its guidance to advise using only N

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Speaker 1: ninety five and K N ninety five face coverings that

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Speaker 1: send prices surging on sites like Amazon. In one case,

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Speaker 1: a pack of forty kN nine five mass now costs

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Speaker 1: eighty dollars. That's sixty bucks higher than it was in November.

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Speaker 1: Well meantime on Wall Street, Karen, another firm is requiring

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Speaker 1: booster shots to get back to the office. Let's get

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Speaker 1: the latest live from Bloomberg's Rnita Young. Good morning, Rnina,

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Speaker 1: Good morning. Nathan Blackstone is the latest financial firm telling

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Speaker 1: US staff to get a booster shot as soon as

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Speaker 1: possible or get out of the office. The company is

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Speaker 1: also requiring staff to be tested on site three times

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Speaker 1: a week. Last year, black Stone asked employees to return

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Speaker 1: to offices full time by June, but when COVID cases

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Speaker 1: later skyrocketed across the country, it gave staff the green

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Speaker 1: light to work from home. Now, black Stone once employees

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Speaker 1: back in the office on January that's two weeks from tomorrow.

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Speaker 1: Live in New York. I'm gonna need a Young Bloomberg daybreak.

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Speaker 1: I need to thank you. And finally, politics is and

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Speaker 1: focus across the pond. This morning, Boris Johnson has apologized

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Speaker 1: for what's being called party Gate, but the UK Prime

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Speaker 1: Minister still remains under heavy pressure. They got live to

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Speaker 1: London and get the latest of the Bloomberg's You and

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Speaker 1: Pot's good morning You and good morning Karen and Nathan.

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Speaker 1: I offer my heartfelt apologies Boris Johnson's words. As he

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Speaker 1: faced angry lawmakers in the British House of Commons, the

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Speaker 1: Prime Minister attempted admitting that he had attended a party

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Speaker 1: of about forty people in the Downing Street garden during

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Speaker 1: a lockdown in At the time, meeting more than one

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Speaker 1: person from another household was illegal. Johnson maintains he thought

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Speaker 1: the gathering was at work events in London. I'mun screen

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Speaker 1: by day break, okay you and thanks right now. SMP

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Speaker 1: futures are little changed. Own futures are down three points,

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Speaker 1: NASTACK futures up eight. Straight ahead, your latest local headlines

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Speaker 1: and a check of sports. This is Bloomberg and it's

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Speaker 1: five oh seven on Wall Street where thirty five degrees

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Speaker 1: in Central Park already dealing with an accident. It's at

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Speaker 1: the northbound Garden State Parkway in your exit nine D.

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Speaker 1: Details coming up in traffic. But first we bring in

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Speaker 1: Michael Barr for a look at what else is going

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Speaker 1: on in New York and around the world. Good morning, Michael,

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Speaker 1: Good morning Nathan. House Minority leader Kevin McCarthy says he

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Speaker 1: will not cooperate with the panel investigating the Capitol riot.

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Speaker 1: McCarthy claims the investigation is not legitimate and is accusing

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Speaker 1: the panel of abuse of power. The panel asked McCarthy

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Speaker 1: to volunteerily testify about his conversations with then President Trump

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Speaker 1: as the riot was under way. Senator Mitch McConnell lashed

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Speaker 1: out at President by and after the President in Atlanta

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Speaker 1: spoke strongly in favor of voting rights legislation. Senator McConnell

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Speaker 1: has recently been called out by the White House for

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Speaker 1: supporting voting rights in the past, but more recently refusing

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Speaker 1: to let the Senate even debate such bills. The Senate

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Speaker 1: Minority leader is accusing Biden of dividing the country. He

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Speaker 1: promised to unite the demon os Americans who disagree with him.

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Speaker 1: He compared, listen to this a bipartisan majority of senators

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Speaker 1: too literal traitors. McConnell says, after knowing Biden for years,

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Speaker 1: he did not recognize the man at the podium. Tuesday,

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Speaker 1: Senate Majority Leader Chuck Schumer says he will try to

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Speaker 1: break a log jam on two Democrat drafted voting rights

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Speaker 1: bills and again debate on the Senate floor. This week.

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Speaker 1: Schumer told all of Senate Democrats that he plans to

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Speaker 1: use a procedural gambit to prevent Republicans from blocking the

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Speaker 1: beginning of debate. Democratic senators are trying to get fellow

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Speaker 1: Senators Joe Manchin and Kristen Cinema on board to vote

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Speaker 1: to abolish the Philippus. Schumer says there have been serious,

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Speaker 1: long and intense discussions with the two moderate Democrats. We're

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Speaker 1: not there yet. I wouldn't want it to loot anybody

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Speaker 1: to think the new this is easy, um, but we're

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Speaker 1: trying to come to a place where fifty Senators can

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Speaker 1: support two bills. Senator Schumer also says New York City

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Speaker 1: subways and commuter rails are getting a big chunk of

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Speaker 1: federal COVID nineteen relief funds. Schumer says the m t

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Speaker 1: A as received six billion dollars part of more than

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Speaker 1: fourteen point five billion dollars in overall federal relief aid.

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Speaker 1: It will be dispersed in an a lump sum rather

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Speaker 1: than given out gradually in much smaller amounts as this

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Speaker 1: customer rate. The m t A has projected it will

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Speaker 1: have a one point four billion dollar budget deficit by

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Speaker 1: five because of the pandemic. Global news twenty four hours

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Speaker 1: a day on air and on Bloomberg Quick Take, powered

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Speaker 1: by more than twenty seven hundred journalists and antalists more

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Speaker 1: than a hundred twenty countries. At Michael bar this is Bloomberg, Nathan,

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Speaker 1: Thanks Michael. We're coming up to five ten on Wall Street.

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Speaker 1: That's time for the Bloomberg Sports Update. Good morning, John

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Speaker 1: Stas alright, good morning. The eight and halfway through the

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Speaker 1: regular season, the Knicks were twenty and twenty one. They

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Speaker 1: had the same record at that point last year, when

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Speaker 1: they then went twenty one and ten and finished fourth

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Speaker 1: in the East. Knicks began the second half with an

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Speaker 1: easy win at the Garden, where they had been struggling,

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Speaker 1: but if not won five in a row, they get

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Speaker 1: to five hundred one o eight to eighty five over Dallas,

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Speaker 1: all five Knicks starters and double figures, led once again

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Speaker 1: by R. J. Barrett, he scored thirty two points. Half

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Speaker 1: of the Knicks won by twenty three of the Nets,

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Speaker 1: and a late start in Chicago won by twenty six

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Speaker 1: one thirty eight one twelve broken out scored the Bulls

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Speaker 1: by twenty just in the third quarter. Kevin Durant scored

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Speaker 1: twenty seven. James Harden had twenty five with sixteen as six.

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Speaker 1: Tough loss for St. John's fell in overtime at Yukon

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Speaker 1: eighties six seventy eight too much Adamo's Sagano for the

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Speaker 1: Huskies twenty six points, eighteen rebounds, six blocks, shots for

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Speaker 1: hum too and oh in the Atlantic ten a one

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Speaker 1: point when at rose Hill over gu Quane. Giants doner

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Speaker 1: John Marra met the media the day after he fired

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Speaker 1: coach Joe Judge. Yes, we've gone through this process far

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Speaker 1: too often in recent years after having a lot of

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Speaker 1: years of stability, and it's not a fun process at all. Um.

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Speaker 1: There is nothing more painful to me, uh than making

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Speaker 1: that long walk down the hallway, uh to tell somebody,

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Speaker 1: particularly a good person, uh like Joe um, that we're

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Speaker 1: making a change. It's gut wrenching for me. Mara, his

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Speaker 1: brother Chris, and co owner Steve Tish began zoom interviews

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Speaker 1: with the Giants. General manager John met yesterday with Buffalo

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Speaker 1: assistant GM Joe Shoon and Adrian Wilson, a former Pro

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Speaker 1: Bowl safety that works for Arizona Giants had seven other

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Speaker 1: GM candidates. Hope to have a hired next week and

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Speaker 1: then begin to look for a new coach. John stash

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Speaker 1: were Bloomberg Sports Nathan all right, John, thank you right now.

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Speaker 1: SMP futures are up a point, death futures up to

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Speaker 1: NASTACK futures higher by almost seven points. Consumer prices up

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Speaker 1: seven percent year over year as we await producer price

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Speaker 1: data this more. I'm talk inflation next with Bloomberg Surveillance

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Speaker 1: host Tom Keen. This is Bloomberg Bloomberg eleven three oh

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Speaker 1: weather cloud sum sun today his and below forties will

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Speaker 1: be in the upper thirties, clearing and breezy tomorrow. By Saturday,

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Speaker 1: low twenties for highs. Right now, it's thirty five degrees. Markets,

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Speaker 1: headlines and breaking news twenty four hours a day at

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Speaker 1: Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quicktape.

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Speaker 1: He's a Bloomberg Business Flash and I'm Karen Moscow. This

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Speaker 1: updates brought to you by SEI Crises emphasized character and partnership,

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Speaker 1: one mission, one community, SEI Go to se i C

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Speaker 1: dot com slash I m S. European stocks are slipping.

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Speaker 1: US stock index futures are little changed as investors digest

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Speaker 1: the latest reading on US inflation and assess vets on

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Speaker 1: timing for the first Federal Reserve eight increases in the

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Speaker 1: pandemic era. We checked the markets every fifteen minutes throughout

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Speaker 1: the trading day on Bloomberg. Right now, SNP futures are

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Speaker 1: a little change, so we're down in nasdack futures. The

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Speaker 1: decks in Germany's down a tenth of upper set ten.

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Speaker 1: Your treasury down one thirty second. He had one point

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Speaker 1: seven four percent. The yield on the two year point

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Speaker 1: nine one percent. Nine x screwed oil is up tenth

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Speaker 1: of upper center eight cents at eighty two dollars, seventy

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Speaker 1: two cents of barrel comics goal is down to tenths

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Speaker 1: per center four dollars ten cents at eighteen twenty three

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Speaker 1: twenty announced the euro one point one four seven four

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Speaker 1: against the dollar, British found one point three seven four

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Speaker 1: or six the ends at one fourteen point five one

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Speaker 1: and Bitcoin this morning moving higher and almost forty four

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Speaker 1: thousand dollars. And that's a Bloomberg business flash. Now here's

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Speaker 1: Michael Barr with more on what's going on around the world. Uncle,

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Speaker 1: good morning, Good morning, Karen. The House Republican leader Kevin

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Speaker 1: McCarthy now says he won't co operate with the committee

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Speaker 1: investigating the Capital riot. He says the House January sixth

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Speaker 1: investigation is not legitimate. The Biden administration says it is

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Speaker 1: seeking new U n senctions against North Korea in response

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Speaker 1: to the Young Yang's latest ballistic missile test. It is

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Speaker 1: still up in the air where the Novak Djokovic will

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Speaker 1: be able to defend is Australian Open title. The Australian

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Speaker 1: Immigration Minister is still considering whether to deport the tennis

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Speaker 1: star who was not vaccinated against COVID nineteen in the NBA,

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Speaker 1: the next net Celtics and Wizards all one. In the NHL,

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Speaker 1: the Bruins won. Everybody's just winning. Blobal News not like

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Speaker 1: Global News twenty more hours a day on air and

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Speaker 1: on Bloomberg Quick Day Board by more than twenty seven

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Speaker 1: hundred journalist analysts and more than a hundred twenty countries on.

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Speaker 1: Michael bar this is Bloomberg, Nathan, Thank you, Michael. It's

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Speaker 1: five nineteen on Wall Street. We're live from the Bloomberg

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Speaker 1: Interacted Broker studios. This is Bloomberg Daybreak, where the number

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Speaker 1: of the morning is seven. Of course, that's the year

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Speaker 1: over year change in consumer prices, the latest read on inflation.

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Speaker 1: As we await even more numbers later this morning when

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Speaker 1: it comes to producer prices. Let's talk inflation now with

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Speaker 1: Tom Keane, host of Bloomberg Surveillance, joining us a little

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Speaker 1: bit early this morning. Yeah, maybe I haven't been up

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Speaker 1: this early in the last twenty four hours, and they

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Speaker 1: brought the coffee out in the pantry. Yet the coffee

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Speaker 1: is out of coffee so this morning and the coffee

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Speaker 1: is more expensive. That's part of this. It really translates,

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Speaker 1: Nathan across everything we do. The parsing of it is simple,

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Speaker 1: service sector inflation up a little bit. But most of

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Speaker 1: the economists are saying, particularly without Macron, maybe service sector

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Speaker 1: inflation won't surge forward. And it's in goods area. Forget

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Speaker 1: about energy, that's outside, but the goods area is the

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Speaker 1: big mystery. About seven point two percent or turn around

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Speaker 1: to six point eight percent. And when you look at

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Speaker 1: numbers like this, Tom, where do you look to see

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Speaker 1: whether we're going to hit peak inflation anytime soon? There's

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Speaker 1: still a debate about whether these price pressures are gonna

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Speaker 1: keep going high or whether the Fed is going to

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Speaker 1: be able to rain them in time. Well, excuse me,

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Speaker 1: that's a play coff their folks. I'm fine the the

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Speaker 1: the FED reigining and inflation is a comfortable idea. It's

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Speaker 1: much much harder than that, as we learned in the

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Speaker 1: early eighties, certainly as we lived through all of the seventies.

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Speaker 1: It's a lot more complex topic. And the answer is

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Speaker 1: there are forces, Nathan that will surprise you either up

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Speaker 1: or down, that come under the category unexpected. I would

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Speaker 1: emphasize that most of the guests we talked to when

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Speaker 1: surveillance are saying we don't know and we need to

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Speaker 1: just simply see the more data knowing they'll be surprises.

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Speaker 1: If I had to say, one surprise if you're an optimist,

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Speaker 1: if you believe the play will get better, if you

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Speaker 1: believe things will prosper, if you agree with James Diamond

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Speaker 1: of JP Morgan that we're gonna have four or four

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Speaker 1: and a half percent growth. Julian Emmanuel talking that up

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Speaker 1: on Edheiman yesterday with ever Cor I s I if

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Speaker 1: you get those kind of a confluence of good things,

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Speaker 1: maybe goods, inflation turns around and inflation starts to slow down.

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Speaker 1: Is that why we're hearing a lot of the focus

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Speaker 1: still from FED chair Powell about the supply chain bottlenecks.

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Speaker 1: We haven't seen any other time of similar situations, just

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Speaker 1: simply because of the way this pandemic is. It's original

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Speaker 1: in the pandemics and natural disaster, and you've got the

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Speaker 1: supply chain disruptions. I will say one thing tangential. It's

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Speaker 1: sort of like a Sunday evening thing, you know, when

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Speaker 1: you're watching to see the naming of the Washington football team,

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Speaker 1: and that on a Sunday evening is you want to

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Speaker 1: look at the Year of the Tiger, which is the

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Speaker 1: China New Year. And we're hearing from our China guests

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Speaker 1: that the Chinese New Year coming up in like two weeks.

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Speaker 1: I guess is another supply disruption. What's it like when

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Speaker 1: we get beyond that? And the optimists are saying the

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Speaker 1: supply disruption can ebb a little bit, but I don't

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Speaker 1: hear it going away. All right, let's talk about the

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Speaker 1: data the latest day that we're going to get this

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Speaker 1: morning from producer prices. There's talk this morning of nine

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Speaker 1: point eight percent. If we get a ten percent handle,

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Speaker 1: what could that mean? This is the p p I

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Speaker 1: and and Nathan uh this is back when the Washington

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Speaker 1: capitals didn't exist, but everybody used to hang on pp I.

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Speaker 1: There were three numbers. I'm not going to go into

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Speaker 1: him right now, but the world stopped for pp I

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Speaker 1: thirty years ago, and then it sort of went away.

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Speaker 1: You know, nobody really paid attend. Michael the only one

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Speaker 1: who paid attention was Michael McKee and then boom, Now

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Speaker 1: we pay attention, and you mentioned the nine point eight

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Speaker 1: percent statistic for final demand, which is the stuff going

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Speaker 1: out the door in the business community, and all of

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Speaker 1: a sudden it is we're studying. Should our listeners hang

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Speaker 1: on every p p I note. I don't think so.

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Speaker 1: Cp I is way more important. But you gotta listen

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Speaker 1: to the pros about these three levels of business inflation

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Speaker 1: and what those dynamics say, particularly about goods, and what

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Speaker 1: they say about the supply chain issues. Last thirty seconds

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Speaker 1: left here, Tom, what it's the main question you're gonna

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Speaker 1: be asking your guests this morning when it comes Eastern inflation. Oh,

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Speaker 1: I think on inflation, you've got to come forward and

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Speaker 1: look at the x X is the timeline that we're studying,

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Speaker 1: Jerome Powell and full disclosure myself, we're out looking at

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Speaker 1: two three, four months of data and not worried about

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Speaker 1: the next he leaf that's out there. You you've got

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Speaker 1: to extend out, Nathan. I'll be asking if if that's

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Speaker 1: the feasible way to go, if that's the right approach.

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Speaker 1: Thanks for the preview, Tom, Okay with us, I think

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Speaker 1: you did. We'll get you back on Thank you Like

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Speaker 1: Thinking two thousand twenty three. Yeah, every morning, you're gonna

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Speaker 1: come back on Tom Keene most of Bloomberg surveillance. If

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Speaker 1: you're in your car, you can catch Tom on television

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Speaker 1: six am. So hurry up and get in Bloomberg surveillance

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Speaker 1: on radio and television with Tom Keene, Lisa Brown, Wits,

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Speaker 1: and Jonathan Faroe seven to nine right here on Bloomberg

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Speaker 1: Radio and on Bloomberg Television. Head of all that. Sp

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Speaker 1: futures up almost two points, now down, futures up five

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Speaker 1: NASTAC futures are higher by four teen points. To your

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Speaker 1: treasury yield one point seven four percent. This is Bloomberg

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Speaker 1: Bloomberg eleven three oh weather cloud some sun today, low

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Speaker 1: forties for highest clearing, breezy tomorrow up for thirties. We're

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Speaker 1: only in the low twenties. First Saturday, getting ready for

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Speaker 1: Martin Luther King weekend. Currently thirty five degrees. Broadcasting live

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Speaker 1: from the Bloomberg Interactive Broker Studio in New York. Bloomberg

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Speaker 1: e living free to Washington, d C. Bloomberg on to Boston,

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Speaker 1: Bloomberg one oh six one to San Francisco. Bloomberg sixt

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Speaker 1: to the country, Sirius XM H one nine and around

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Speaker 1: the globe, the Bloomberg Business APT and Bloomberg Radio dot Com.

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Speaker 1: This is Bloomberg Daybreak. It's five thirty on Wall Street.

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Speaker 1: Good morning. I'm Nathan Hager and I'm kerin Moscow hour,

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

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

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Speaker 1: need to know at this hour. The FED and inflation

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Speaker 1: front and center this morning. San Francisco President married Daily

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Speaker 1: in Philadelphia, FED Chief Patrick Harker have joined the ranks

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Speaker 1: of officials publicly discussing a rate hike in March. The

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Speaker 1: Central Bank is looking to fight the hottest inflation in

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Speaker 1: a generation and the need to increase rates aggressively to

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Speaker 1: do so. As according to Bridgewater Associates Investment research director

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Speaker 1: Rebecca Patterson, we think inflation is likely to be significantly

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Speaker 1: above what's discounted and of course the Fed's target, unless

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Speaker 1: they decide they're going to hike a lot more aggressively

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Speaker 1: than once priced. Rebecca Patterson at Bridgewater Associate says markets

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Speaker 1: are not prepared for just how sticky high inflation could

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Speaker 1: be and there's more inflation data on today's economic agenda. Karen,

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Speaker 1: we get the producer Price index for December and economists

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Speaker 1: forecast a record reading with a year over year increase

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Speaker 1: of nine point eight percent. Well, the report comes at

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Speaker 1: eight thirty am Wall Street Time. Nathan than ninety minutes later,

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Speaker 1: the Senate Banking to Mittie holds a confirmation hearing for

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Speaker 1: Lyon Brainerd. She's been to serve as vice chair of

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Speaker 1: the Fed and Bloomberg's Vine Down Judai's reports grain udition

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Speaker 1: economist and current member of the Federal Reserve Board. She

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Speaker 1: also held the top post of the Treasury. Her nomination

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Speaker 1: preserves continuity at the Central Bank, along with the renomination

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Speaker 1: of FED Chair Jerome Powell to a second term. Brainerd

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Speaker 1: and Powell have similar views on monetary policy stamping out inflation,

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Speaker 1: but different bank regulation. She wants to maintain tough curbs

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Speaker 1: and post after the two thousand and eight financial crisis.

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Speaker 1: Vinny del Judai s Bloomberg Daybreak. Thanks Vinny, Let's turn

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Speaker 1: our attention to the pandemic now. Daily COVID cases remain high,

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Speaker 1: but there are signs the omicron wave could be easing,

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Speaker 1: and that's reviving return to office talk, and another financial

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Speaker 1: firm is requiring booster shots to get back to the office.

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Speaker 1: Let's get the details. Line from Bloomberg's uned a young

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Speaker 1: Good morning, Ronita, Good morning, Nathan. Blackstone is the latest

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Speaker 1: firm telling us staff to get a booster shot as

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Speaker 1: soon as possible or get out of the office. It's

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Speaker 1: also requiring staff to be tested once on site three

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Speaker 1: times a week now. Last year, black Stone asked employees

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Speaker 1: to return to offices by full June full time, but

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Speaker 1: when COVID cases skyrocketed across the country, the company gave

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Speaker 1: staff the green light to work from home. Now, black

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Speaker 1: Stone once employees back in the office on January. That's

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Speaker 1: two weeks from tomorrow. Live in New York. I'm gonna

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Speaker 1: need a young Bloomberg day break, A right native, Thank you, U,

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Speaker 1: S and P. Futures at five points now and Dell

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Speaker 1: Futures up twenty three, Nasdack futures up thirty one, straight ahead,

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Speaker 1: your latest headlines, latest local headlines. This is Bloomberg. It's

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Speaker 1: five thirty three on Wall Street. We're thirty five degrees

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Speaker 1: in Central Park. We got water main breaks, including one

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Speaker 1: year exit one in the New York State Thruway. Details

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Speaker 1: coming up in traffic. First, Michael Barr with more on

429
00:23:48,400 --> 00:23:50,320
Speaker 1: what's going on in New York and around the world.

430
00:23:50,359 --> 00:23:53,080
Speaker 1: Michael Nathan, thank you very much. The US military will

431
00:23:53,080 --> 00:23:55,880
Speaker 1: deploy new help to hospitals in New York and New

432
00:23:55,960 --> 00:23:59,560
Speaker 1: Jersey as they grappled with a wave of hospitalizations driven

433
00:23:59,640 --> 00:24:02,920
Speaker 1: by the Macron variant. The White House says President Joe

434
00:24:02,960 --> 00:24:07,560
Speaker 1: Biden will announce that his administration is deploying military doctors, nurses,

435
00:24:07,680 --> 00:24:11,639
Speaker 1: and others to six hospitals and six states, including Coney

436
00:24:11,680 --> 00:24:16,040
Speaker 1: Island Hospital in Brooklyn and University Hospital in Newark. The

437
00:24:16,080 --> 00:24:19,439
Speaker 1: House panel investigating the US Capital riot as requested an

438
00:24:19,440 --> 00:24:23,280
Speaker 1: interview and records from House Minority Leader Kevin McCarthy. However,

439
00:24:23,520 --> 00:24:27,719
Speaker 1: McCarthy says he will not cooperate, claiming the investigation is

440
00:24:27,800 --> 00:24:30,800
Speaker 1: not legitimate and is accusing the panel of abuse of power.

441
00:24:31,240 --> 00:24:34,280
Speaker 1: President Biden is expected to travel to Capitol Hill today

442
00:24:34,520 --> 00:24:37,360
Speaker 1: to make an in person plead directly to those senators

443
00:24:37,359 --> 00:24:40,399
Speaker 1: and Majority Leader Chuck Schumer still hoping for a vote

444
00:24:40,440 --> 00:24:42,879
Speaker 1: on rule changes by the end of the week. On

445
00:24:42,920 --> 00:24:46,600
Speaker 1: the filibuster, Schumer told reporters there have been quote serious,

446
00:24:47,000 --> 00:24:51,399
Speaker 1: long and intense discussions with moderate Democrats Joe Manchin and

447
00:24:51,480 --> 00:24:55,439
Speaker 1: Kirsten Cinema to join other Democrats in changing the filibuster rules.

448
00:24:55,800 --> 00:24:58,280
Speaker 1: We're trying to come to a place for fifty senators

449
00:24:58,520 --> 00:25:04,119
Speaker 1: can support two bills, the Freedom to Vote Act and

450
00:25:04,440 --> 00:25:07,800
Speaker 1: UH the John Lewis Act, and would they change in

451
00:25:07,840 --> 00:25:11,200
Speaker 1: the rules so we can get the votes to um

452
00:25:11,359 --> 00:25:14,520
Speaker 1: pass these bills into world email. Senator Schumer also says

453
00:25:14,600 --> 00:25:17,320
Speaker 1: New York City subways and commuter rails are getting a

454
00:25:17,359 --> 00:25:20,800
Speaker 1: big chunk of federal COVID nineteen relief funds. The Senator

455
00:25:20,880 --> 00:25:23,720
Speaker 1: says the m t A has received six billion dollars

456
00:25:23,800 --> 00:25:26,639
Speaker 1: part of more than fourteen point five billion and overall

457
00:25:26,760 --> 00:25:30,159
Speaker 1: federal relief aid. Britain's Prince Andrew is a step closer

458
00:25:30,200 --> 00:25:33,560
Speaker 1: to facing civil charges in court. The federal judge rejected

459
00:25:33,680 --> 00:25:37,800
Speaker 1: arguments to dismiss the case by Virginia Giuffrey and alleged

460
00:25:37,920 --> 00:25:42,720
Speaker 1: victim of Jeffrey Epstein. Giuffrey claims Epstein traffic her to Andrew,

461
00:25:42,760 --> 00:25:45,600
Speaker 1: who is accused of sexually abusing her when she was

462
00:25:45,640 --> 00:25:48,480
Speaker 1: just seventeen. What's next for the Prince me The A lawyer,

463
00:25:48,480 --> 00:25:51,600
Speaker 1: Mark Stevens is The only thing that he's worse than

464
00:25:51,640 --> 00:25:54,239
Speaker 1: having Prince Andrew in the odina that he is in

465
00:25:54,480 --> 00:25:58,000
Speaker 1: already is actually to have him start to deal with

466
00:25:58,280 --> 00:26:02,480
Speaker 1: the allegations in public. Prince Andrew has repeatedly denied the allegations.

467
00:26:02,520 --> 00:26:04,520
Speaker 1: Global Dunes twenty four hours a day on here and

468
00:26:04,640 --> 00:26:08,199
Speaker 1: on Bloomberg Quick Take, powered by more journalists and analysts

469
00:26:08,200 --> 00:26:10,119
Speaker 1: more than a hundred twenty countries on Michael Barr, This

470
00:26:10,160 --> 00:26:17,760
Speaker 1: is Bloomberg, Nathan, Thanks Michael. On Wall Street, Time for

471
00:26:17,760 --> 00:26:20,840
Speaker 1: the Bloomberg Sports Update with John Stanshower, Eanks Nathan. Finally

472
00:26:20,880 --> 00:26:22,800
Speaker 1: some home cooking for the Knicks. They had won just

473
00:26:22,920 --> 00:26:25,520
Speaker 1: six of their first seventeen that they guard, and last

474
00:26:25,560 --> 00:26:27,639
Speaker 1: night their fifth come win in a row. It was

475
00:26:27,680 --> 00:26:31,120
Speaker 1: easy over Dallas. The MAVs were without the exit Christoph

476
00:26:31,160 --> 00:26:33,639
Speaker 1: Porzungez as well as their coach, Chasing Kid, both on

477
00:26:33,680 --> 00:26:35,680
Speaker 1: the COVID list. They had won their last six for

478
00:26:35,760 --> 00:26:37,960
Speaker 1: the nixt role one oh eight to eighty five. R

479
00:26:38,080 --> 00:26:40,960
Speaker 1: J Barrets stage red hot thirty two points. Three of

480
00:26:41,000 --> 00:26:43,440
Speaker 1: his last five games. He has scored over thirty Knicks

481
00:26:43,840 --> 00:26:46,720
Speaker 1: twenty one and twenty one on the season. The Nets

482
00:26:46,720 --> 00:26:50,040
Speaker 1: in Chicago top two teams in the East. Surprisingly easy

483
00:26:50,080 --> 00:26:53,080
Speaker 1: win for Brooklyn one eight to one twelve. St. John's

484
00:26:53,080 --> 00:26:56,280
Speaker 1: went to overtime at Yukon. Husky's had an eleven nothing wrong.

485
00:26:56,359 --> 00:26:59,639
Speaker 1: They won eighty six seventy eight. Julian Schimpacny scored twenty

486
00:26:59,680 --> 00:27:01,760
Speaker 1: seven for the Red Storm. Rangers continue the road trip

487
00:27:01,800 --> 00:27:05,120
Speaker 1: tonight in San Jose, Islanders hosted Devil's Just the Isles.

488
00:27:05,119 --> 00:27:08,879
Speaker 1: Third game in over three weeks. The Australian Open begins Monday.

489
00:27:08,920 --> 00:27:11,639
Speaker 1: They delayed the announcement of the draw finally did with

490
00:27:11,720 --> 00:27:15,200
Speaker 1: Novak Djokovic actually facing a fellow serve in the first round.

491
00:27:15,240 --> 00:27:19,760
Speaker 1: Djokovic could still be deported for the no vaccine controversy.

492
00:27:19,840 --> 00:27:21,960
Speaker 1: Just a few weeks ago, the report was that the

493
00:27:22,000 --> 00:27:24,560
Speaker 1: Giants were not going to fire coach Joe Judge and

494
00:27:24,560 --> 00:27:27,480
Speaker 1: then owner John Mara. We just got to a point

495
00:27:27,560 --> 00:27:30,439
Speaker 1: where I where I thought we had dug ourselves a

496
00:27:30,480 --> 00:27:33,000
Speaker 1: whole so deep that I didn't see a clear path

497
00:27:33,080 --> 00:27:35,880
Speaker 1: to getting out of it unless we completely blew it up.

498
00:27:36,280 --> 00:27:38,679
Speaker 1: And it started all over again with a new general

499
00:27:38,680 --> 00:27:41,160
Speaker 1: manager to the new head coach. Thera has begun interviews

500
00:27:41,160 --> 00:27:43,080
Speaker 1: for the general manager's job and then they'll hire a

501
00:27:43,080 --> 00:27:46,760
Speaker 1: new coach. Mara admitted this season left him more embarrassed

502
00:27:46,800 --> 00:27:49,040
Speaker 1: than ever before. He said every time he thought they

503
00:27:49,080 --> 00:27:51,840
Speaker 1: hit rock bottom, it got worse. He admits he has

504
00:27:51,880 --> 00:27:54,919
Speaker 1: to earn the trusts of giants stand John Stash were

505
00:27:54,960 --> 00:27:57,720
Speaker 1: Bloomberg's forth thinking. Thanks John, It's five thirty seven on

506
00:27:57,800 --> 00:28:00,400
Speaker 1: Wall Street. Time for the Tri State Business Report. Here's

507
00:28:00,400 --> 00:28:03,919
Speaker 1: Bloomberg's head Corey. Apartment rents in Manhattan rose to a

508
00:28:04,000 --> 00:28:07,920
Speaker 1: December record thanks to demanded buildings that have doormen. The

509
00:28:08,040 --> 00:28:11,080
Speaker 1: Median Ramp in New York's most expensive borough, climbed sixteen

510
00:28:11,080 --> 00:28:13,639
Speaker 1: percent from a year earlier to three thousand, four hundred

511
00:28:13,720 --> 00:28:17,440
Speaker 1: seventy five dollars. Rented Buildings with doormen are now above

512
00:28:17,560 --> 00:28:21,840
Speaker 1: pre pandemic levels, sources tell Bloomberg. HSBC Holdings is in

513
00:28:21,960 --> 00:28:24,760
Speaker 1: talks to move its New York headquarters to a tower

514
00:28:24,800 --> 00:28:27,840
Speaker 1: in the Hudson Yards district. The London based bank is

515
00:28:27,880 --> 00:28:30,600
Speaker 1: considering a lease for about two hundred fifty thousand square

516
00:28:30,600 --> 00:28:34,280
Speaker 1: feet of offices at the Spiral skyscraper, being built by

517
00:28:34,320 --> 00:28:38,560
Speaker 1: Tishman Speyer on Manhattan's far west side. New Jersey Governor

518
00:28:38,600 --> 00:28:41,560
Speaker 1: Phil Murphy assigned into law, expanded tax credits and other

519
00:28:41,600 --> 00:28:45,640
Speaker 1: measures for film and digital media. Major productions to film

520
00:28:45,640 --> 00:28:49,360
Speaker 1: in New Jersey since previous credits were enacted include Spielberg's

521
00:28:49,360 --> 00:28:52,200
Speaker 1: West Side Story and the Sopranos prequel The Many Saints

522
00:28:52,200 --> 00:28:55,480
Speaker 1: of Newark. That your Bloomberg Trying State Business Report. I'm

523
00:28:55,600 --> 00:28:57,960
Speaker 1: Ed Corey. Alright, thank you. It's five thirty eight on

524
00:28:58,000 --> 00:29:00,160
Speaker 1: Wall Street. Bloomberg Radio is on the air from San

525
00:29:00,200 --> 00:29:02,880
Speaker 1: Francisco to New York, London to Hong Kong. Let's check

526
00:29:02,920 --> 00:29:04,720
Speaker 1: in with our global news team for some of the

527
00:29:04,760 --> 00:29:07,720
Speaker 1: top stories heard on our three hundred affiliate radio stations

528
00:29:07,720 --> 00:29:13,120
Speaker 1: around the world. I'm Steve Potoscan on ten ten Wins

529
00:29:13,120 --> 00:29:16,120
Speaker 1: in New York. We're talking about Manhattan red surging to

530
00:29:16,200 --> 00:29:20,040
Speaker 1: a record on demand for buildings with dormant Um grny

531
00:29:20,080 --> 00:29:23,440
Speaker 1: Tannaho on ktr H in Houston. The gasoline market is

532
00:29:23,480 --> 00:29:26,160
Speaker 1: painting a picture of tight supplies coming up this summer.

533
00:29:26,720 --> 00:29:30,000
Speaker 1: I'm Tom Mackenzie on Bloomberg d a B Digital Radio

534
00:29:30,120 --> 00:29:33,680
Speaker 1: in London. We're reporting on foreign sectary list trust seeking

535
00:29:33,680 --> 00:29:38,120
Speaker 1: a Brixit reset as negotiations with the EU resume. I'm

536
00:29:38,160 --> 00:29:41,000
Speaker 1: in Corey on w w J in Detroit. I'm reporting

537
00:29:41,040 --> 00:29:44,080
Speaker 1: a former Hilder's grocery store executive is getting into the

538
00:29:44,120 --> 00:29:46,680
Speaker 1: restaurant Bisbane. And those are some of the stories our

539
00:29:46,720 --> 00:29:49,800
Speaker 1: twenty hundred Bloomberg journalists and analyst to working on this

540
00:29:49,840 --> 00:29:53,120
Speaker 1: morning around the world. It's five thirty nine on Wall Street.

541
00:29:53,440 --> 00:29:57,080
Speaker 1: The following is an editorial from Bloomberg Opinion. U S

542
00:29:57,120 --> 00:30:01,320
Speaker 1: consumer prices rose seven percent in New one, the largest

543
00:30:01,320 --> 00:30:04,440
Speaker 1: twelve month gain in nearly forty years. The good news

544
00:30:04,520 --> 00:30:07,040
Speaker 1: is that the Federal Reserve can no longer be accused

545
00:30:07,080 --> 00:30:10,360
Speaker 1: of playing down the risks of inflation. Its policy stance

546
00:30:10,400 --> 00:30:13,840
Speaker 1: has moved briskly from patients to concern with the hint

547
00:30:13,840 --> 00:30:17,200
Speaker 1: of alarm in recent months. To its credit, the Central

548
00:30:17,200 --> 00:30:20,560
Speaker 1: Bank has pulled off this abrupt shift in messaging without

549
00:30:20,840 --> 00:30:24,920
Speaker 1: royal lane. Financial markets investors have calmly penciled in for

550
00:30:25,240 --> 00:30:28,280
Speaker 1: interest rate hikes this year. That sounds about right, but

551
00:30:28,400 --> 00:30:31,160
Speaker 1: with the pandemic far from contained, the Fed needs to

552
00:30:31,240 --> 00:30:34,360
Speaker 1: keep an open mind amid so much uncertainty. The Central

553
00:30:34,360 --> 00:30:38,520
Speaker 1: Bank shouldn't box itself into a fixed policy. Instead, it

554
00:30:38,560 --> 00:30:42,160
Speaker 1: should stay ready to tighten or loosen policy as conditions evolve.

555
00:30:42,360 --> 00:30:46,640
Speaker 1: Moving forward, flexibility will be key. This editorial was written

556
00:30:46,640 --> 00:30:49,760
Speaker 1: by the Bloomberg Opinion Editorial Board. I'm David Shipley. For

557
00:30:49,840 --> 00:30:52,720
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash

558
00:30:52,720 --> 00:30:55,720
Speaker 1: Opinion or OPA and go on the Bloomberg Terminal. This

559
00:30:55,960 --> 00:30:59,080
Speaker 1: has been Bloomberg opinion and you can hear Bloomberg opinion

560
00:30:59,160 --> 00:31:02,360
Speaker 1: editorials every weekday. At this time, terminal customers can read

561
00:31:02,400 --> 00:31:05,400
Speaker 1: more at O, P I N go. Right now, SMP

562
00:31:05,520 --> 00:31:08,120
Speaker 1: futures are up four points down, futures up twenty one

563
00:31:08,200 --> 00:31:11,240
Speaker 1: NASTACK futures are hired by twenty nine points, so futures

564
00:31:11,280 --> 00:31:14,200
Speaker 1: contracts scanning a little bit attraction at the moment. Check

565
00:31:14,280 --> 00:31:18,040
Speaker 1: in next with Christina Hooper, Chief Global Market Strategists at Investco.

566
00:31:18,240 --> 00:31:24,120
Speaker 1: This is Bloomberg Bloomberg eleven three oh Weather. Mix of

567
00:31:24,160 --> 00:31:26,880
Speaker 1: sun and clouds today low forties for highs clearing breezy,

568
00:31:26,960 --> 00:31:29,320
Speaker 1: upper thirties. Tomorrow. We have a mix of sun and

569
00:31:29,360 --> 00:31:33,000
Speaker 1: clouds Saturday and highs only in the low twenties currently

570
00:31:33,120 --> 00:31:39,959
Speaker 1: thirty five degrees. Markets, headlines and breaking news twenty four

571
00:31:40,040 --> 00:31:43,080
Speaker 1: hours a day at Bloomberg dot Com, The Bloomberg Business

572
00:31:43,080 --> 00:31:47,160
Speaker 1: at and at Bloomberg quick tape. He's a Bloomberg business flash,

573
00:31:53,080 --> 00:31:55,680
Speaker 1: and I'm Karra in Moscow. US DOT index futures are

574
00:31:55,720 --> 00:31:58,600
Speaker 1: now higher as investors digest the latest reading on US

575
00:31:58,640 --> 00:32:01,480
Speaker 1: inflation and assess vet on timing for the first federal

576
00:32:01,520 --> 00:32:04,400
Speaker 1: reserve rate increases in the pandemic era. We check the

577
00:32:04,400 --> 00:32:07,280
Speaker 1: markets every fifteen minutes throughout the trading day on bloomberg

578
00:32:07,440 --> 00:32:09,960
Speaker 1: S and p Future is up five points. Now Future

579
00:32:10,000 --> 00:32:12,200
Speaker 1: is up thirty one, asdag future is up twenty eight.

580
00:32:12,480 --> 00:32:14,960
Speaker 1: The decks in Germany that will change ten Your treasury

581
00:32:15,000 --> 00:32:17,200
Speaker 1: down one thirty second. You have one point seven four

582
00:32:17,240 --> 00:32:19,960
Speaker 1: percent yield on the two year point nine one per

583
00:32:20,000 --> 00:32:22,240
Speaker 1: cent nimex s herd oil is that will change at

584
00:32:22,240 --> 00:32:24,960
Speaker 1: eighty two dollars sixty six cents of arrol comex school

585
00:32:24,960 --> 00:32:27,400
Speaker 1: down a quarter percent or five dollars. At eighteen twenty

586
00:32:27,440 --> 00:32:30,600
Speaker 1: two thirty announced the euro one point one four six

587
00:32:30,680 --> 00:32:33,280
Speaker 1: zero against the dollar. British found one point three seven

588
00:32:33,280 --> 00:32:35,800
Speaker 1: four zero. The end is a one fourteen point five

589
00:32:35,880 --> 00:32:39,680
Speaker 1: five and Bitcoin this morning is moving higher at forty

590
00:32:39,720 --> 00:32:42,960
Speaker 1: three thousand, nine hundred dollars. That's a Bloomberg business flash.

591
00:32:42,960 --> 00:32:45,040
Speaker 1: Now here's Michael Barr with more on months going on

592
00:32:45,120 --> 00:32:47,960
Speaker 1: around the world. Michael Karen, thank you very much. HOWSE

593
00:32:48,000 --> 00:32:51,480
Speaker 1: minority leader Kevin McCarthy says he will not cooperate with

594
00:32:51,520 --> 00:32:55,240
Speaker 1: the panel investigating the US Capital riot. McCarthy claims the

595
00:32:55,280 --> 00:32:59,040
Speaker 1: investigation is not legitimate and is accusing the panel of

596
00:32:59,120 --> 00:33:02,959
Speaker 1: abuse of power. Senate Democrats are aiming launched debate on

597
00:33:03,080 --> 00:33:05,400
Speaker 1: voting rights, even though there is no guarantee the bill

598
00:33:05,480 --> 00:33:08,680
Speaker 1: will come to a vote. Today, President Joe Biden will

599
00:33:08,680 --> 00:33:10,880
Speaker 1: meet with the Democrats at the Capital, even though the

600
00:33:10,960 --> 00:33:14,880
Speaker 1: legislation is now blocked by a Republican filibuster. It's unclear

601
00:33:14,920 --> 00:33:17,240
Speaker 1: whether the Novak Djokovic will be able to defend is

602
00:33:17,280 --> 00:33:21,800
Speaker 1: Australian open title. The Australian Immigration Minister is still considering

603
00:33:21,840 --> 00:33:24,200
Speaker 1: whether to the port the tennis star who is not

604
00:33:24,320 --> 00:33:28,480
Speaker 1: vaccinated against COVID nineteen in the NBA, the Knicks, Nets,

605
00:33:28,480 --> 00:33:31,640
Speaker 1: Celtics and Wizards all one in the NHL, the Bruins.

606
00:33:31,640 --> 00:33:34,800
Speaker 1: One Global used twenty four hours a day on air

607
00:33:34,880 --> 00:33:38,080
Speaker 1: and on Bloomberg Quicktake, powered by more than twenty seven

608
00:33:38,160 --> 00:33:40,880
Speaker 1: under journalist and analysts more than a hundred twenty countries.

609
00:33:41,080 --> 00:33:44,280
Speaker 1: I'm Michael barn This is Bloomberg, Nathan. Okay, Michael, thanks

610
00:33:44,320 --> 00:33:46,840
Speaker 1: for Kono to nine on Wall Street Live from the

611
00:33:46,840 --> 00:33:50,760
Speaker 1: Bloomberg Interactor Broker Studios. This is Bloomberg Daybreak, and investors

612
00:33:50,760 --> 00:33:53,440
Speaker 1: are looking for ways to win in an era of

613
00:33:53,560 --> 00:33:57,000
Speaker 1: higher inflation. Let's bringing Christina Hooper, now chief Global market

614
00:33:57,080 --> 00:34:00,840
Speaker 1: strategist at invest Goal. Christina, we're seeing future sort of

615
00:34:00,960 --> 00:34:04,720
Speaker 1: fluctuate this morning is traders try to assess this time

616
00:34:04,760 --> 00:34:07,280
Speaker 1: of rising inflation, where do you see this market going?

617
00:34:08,480 --> 00:34:12,359
Speaker 1: So I actually expect this market to go up this year, um,

618
00:34:12,400 --> 00:34:15,680
Speaker 1: but I have to give that qualification that I expected

619
00:34:15,680 --> 00:34:18,319
Speaker 1: to be far more muted in terms of returns than

620
00:34:18,400 --> 00:34:22,799
Speaker 1: what we saw last year because we are entering more

621
00:34:22,880 --> 00:34:26,000
Speaker 1: of a slow down phase of the economic cycle. We're

622
00:34:26,040 --> 00:34:29,680
Speaker 1: withdrawing monetary and fiscal stimulus is here. It's not going

623
00:34:29,719 --> 00:34:31,600
Speaker 1: to be enough to end the cycle. We're not going

624
00:34:31,600 --> 00:34:35,320
Speaker 1: into recession, but we are going to see some modest

625
00:34:35,360 --> 00:34:40,319
Speaker 1: deceleration in growth still above trent um, but but modest deceleration.

626
00:34:40,520 --> 00:34:44,360
Speaker 1: And I think that results in a convergence in asset

627
00:34:44,400 --> 00:34:50,240
Speaker 1: class returns and likely an outperformance of growth over value. Okay,

628
00:34:50,280 --> 00:34:54,760
Speaker 1: so growth over value where else are you looking for opportunity? Well,

629
00:34:54,800 --> 00:34:58,400
Speaker 1: in emerging markets. Now, this is an area where we

630
00:34:58,400 --> 00:35:02,120
Speaker 1: need to be discerning um it's appropriate to to actively

631
00:35:02,200 --> 00:35:05,799
Speaker 1: manage that space, but there is certainly potential this year

632
00:35:05,840 --> 00:35:10,759
Speaker 1: for emerging markets could be to emerging markets what one

633
00:35:11,080 --> 00:35:15,440
Speaker 1: was to develop markets in terms of experiencing a robust reopening.

634
00:35:15,920 --> 00:35:21,320
Speaker 1: As vaccination programs proliferate and as we see vaccination levels

635
00:35:21,360 --> 00:35:25,919
Speaker 1: go up, even a macron um could be positive in

636
00:35:26,040 --> 00:35:30,040
Speaker 1: terms of spreading immunity rather quickly in emerging markets. I

637
00:35:30,040 --> 00:35:33,560
Speaker 1: don't expect it to happen overnight, but I do expect

638
00:35:33,600 --> 00:35:37,320
Speaker 1: emerging markets to accelerate this year in terms of economic growth.

639
00:35:37,840 --> 00:35:41,759
Speaker 1: In terms of what the FED could do with monetary policy,

640
00:35:41,800 --> 00:35:46,040
Speaker 1: are you looking for acceleration of rate hikes when it

641
00:35:46,120 --> 00:35:49,719
Speaker 1: comes to reining in these price pressures? Do you think

642
00:35:49,760 --> 00:35:53,840
Speaker 1: we could see more rate hikes sooner? I know the

643
00:35:53,920 --> 00:35:57,719
Speaker 1: FED is talking tough, but I still anticipate only three

644
00:35:57,800 --> 00:36:00,560
Speaker 1: rate hikes this year. And my rationale is that the

645
00:36:00,600 --> 00:36:03,239
Speaker 1: FED has made it clear to less that it is

646
00:36:03,239 --> 00:36:06,759
Speaker 1: going to be using three tools this year rather than too.

647
00:36:07,000 --> 00:36:11,600
Speaker 1: Not only are we having tapering and an acceleration of tapering. UM.

648
00:36:11,680 --> 00:36:16,239
Speaker 1: But we also anticipate that the FED actually starts shrinking

649
00:36:16,320 --> 00:36:19,680
Speaker 1: its balance sheet this year. UM So having three levels

650
00:36:19,760 --> 00:36:25,080
Speaker 1: instead of two takes pressure off using rate hikes as

651
00:36:25,239 --> 00:36:29,839
Speaker 1: the most as the primary monetary policy tool this year.

652
00:36:30,040 --> 00:36:33,319
Speaker 1: So I anticipate three UM. I still hold out hope

653
00:36:33,360 --> 00:36:36,000
Speaker 1: that it won't happen in March because I think the

654
00:36:36,080 --> 00:36:38,719
Speaker 1: FED wants to be data dependent and we don't know

655
00:36:38,760 --> 00:36:41,000
Speaker 1: exactly how a macron plays out. I think it's a

656
00:36:41,000 --> 00:36:44,480
Speaker 1: short term negative, but it's still a negative. UM So

657
00:36:44,760 --> 00:36:47,120
Speaker 1: I still hold that hope that we see any rate hike,

658
00:36:47,400 --> 00:36:50,799
Speaker 1: although those hopes are fading. Does that raise the possibility

659
00:36:50,800 --> 00:36:53,279
Speaker 1: that we could see continued price pressure and does that

660
00:36:53,320 --> 00:36:56,200
Speaker 1: have you looking for hedges? Well, I do believe a

661
00:36:56,320 --> 00:37:00,560
Speaker 1: macron does exacerbate price pressure, but only in the short term.

662
00:37:01,000 --> 00:37:04,880
Speaker 1: UH So that could um. I still believe we're likely

663
00:37:04,920 --> 00:37:09,080
Speaker 1: to see inflation peak by the middle of two and

664
00:37:09,320 --> 00:37:12,279
Speaker 1: slowly start to get better. Um. We are seeing the

665
00:37:12,320 --> 00:37:16,000
Speaker 1: economy normalize. Um that is going to be the path

666
00:37:16,080 --> 00:37:20,520
Speaker 1: for two as this turns from a pandemic to endemic

667
00:37:20,880 --> 00:37:24,600
Speaker 1: and uh and that is part and parcel of the normalization,

668
00:37:25,040 --> 00:37:28,520
Speaker 1: is that we will see um pent up demands slowly

669
00:37:28,560 --> 00:37:32,319
Speaker 1: burn Um, we will see elevated household savings slowly burned.

670
00:37:32,360 --> 00:37:34,799
Speaker 1: So a lot of the conditions that have caused high

671
00:37:34,840 --> 00:37:39,480
Speaker 1: inflation should be alleviated. We only have about thirty seconds

672
00:37:39,520 --> 00:37:41,680
Speaker 1: left here, but we're going to see earning season kick

673
00:37:41,719 --> 00:37:43,560
Speaker 1: off in earnest at the end of the week. Do

674
00:37:43,600 --> 00:37:46,040
Speaker 1: you see fundamentals coming more into play when it comes

675
00:37:46,080 --> 00:37:50,959
Speaker 1: to stock valuations? Well, certainly, fundamentals often come more into

676
00:37:51,000 --> 00:37:54,640
Speaker 1: play when we go through earning season. Uh. And there

677
00:37:54,680 --> 00:37:57,160
Speaker 1: are going to be some surprises. We're already getting some

678
00:37:57,200 --> 00:38:01,480
Speaker 1: more warnings in terms of the impact of omicron um. Definitely,

679
00:38:01,640 --> 00:38:05,520
Speaker 1: fundamental will matter um, But this should be a good

680
00:38:05,520 --> 00:38:09,800
Speaker 1: earning season in general. All Right, Christina Hooper, as always,

681
00:38:09,840 --> 00:38:12,920
Speaker 1: thanks for the insights. Really appreciate it. Christina Hooper is

682
00:38:13,120 --> 00:38:17,719
Speaker 1: chief Global market Strategist at Investco. Karen, sorry, Nathan, thank you.

683
00:38:17,880 --> 00:38:20,439
Speaker 1: It is five fifty three on Wall Street. It's time

684
00:38:20,440 --> 00:38:22,440
Speaker 1: for the Bloomberg the Law Report. Let's get to the

685
00:38:22,480 --> 00:38:25,319
Speaker 1: legal stories we are watching this morning from Bloomberg. Jaff

686
00:38:25,360 --> 00:38:32,520
Speaker 1: Bellinger National taxpayer Advocate Aaron Collins, as taxpayers and tax

687
00:38:32,560 --> 00:38:36,000
Speaker 1: professionals will face the most challenging filing season. Ever, she

688
00:38:36,080 --> 00:38:38,520
Speaker 1: says there are new complexities at a time when the

689
00:38:38,560 --> 00:38:42,239
Speaker 1: I r S is dealing with institutional obstacles. Ocean says

690
00:38:42,239 --> 00:38:45,319
Speaker 1: truck drivers must comply with the agency's vaccine or test

691
00:38:45,360 --> 00:38:48,799
Speaker 1: wool unless their employer proves that they drive alone and

692
00:38:48,840 --> 00:38:51,840
Speaker 1: are rarely inside buildings. A lack of funds for local

693
00:38:51,840 --> 00:38:55,000
Speaker 1: call centers is delaying efforts to publicize the new nine

694
00:38:55,080 --> 00:38:58,959
Speaker 1: eight eight National Suicide Prevention hotline number that goes live

695
00:38:59,120 --> 00:39:02,879
Speaker 1: this summer. Bloom Bird Law everything you need, all on

696
00:39:02,880 --> 00:39:08,399
Speaker 1: one legal research platform, including guidance analysis and Bloomberg market intelligence.

697
00:39:08,560 --> 00:39:12,759
Speaker 1: Find out more at Bloomberg Law dot com. All right, Jeff,

698
00:39:12,760 --> 00:39:16,600
Speaker 1: thank you. Now another legal story we're watching. Sixteen top universities,

699
00:39:16,640 --> 00:39:19,800
Speaker 1: including Yale, Columbia and m I T are being sued

700
00:39:19,840 --> 00:39:24,240
Speaker 1: for allegedly conspiring to manipulate the admissions system. They're accused

701
00:39:24,239 --> 00:39:27,960
Speaker 1: of holding down financial aid for students and benefiting wealthy applicants.

702
00:39:28,160 --> 00:39:31,720
Speaker 1: The antitrust class suit accuses universities of a long running

703
00:39:31,719 --> 00:39:35,400
Speaker 1: scheme to collectively adopt a formula for determining an applicant's

704
00:39:35,400 --> 00:39:39,080
Speaker 1: ability to pay tuition. That's instead of competing freely over

705
00:39:39,160 --> 00:39:42,160
Speaker 1: financial aid by trying to attract students through more generous

706
00:39:42,200 --> 00:39:45,440
Speaker 1: aid offers. The plaintiffs also claim that more than half

707
00:39:45,480 --> 00:39:49,439
Speaker 1: of the schools have given preferential treatment to wealthy applicants

708
00:39:49,719 --> 00:39:52,000
Speaker 1: for more in the case Bloomberg's ding grasshow speaks to

709
00:39:52,000 --> 00:39:55,160
Speaker 1: antitrust Expert Harry First, a professor at n y U

710
00:39:55,239 --> 00:39:59,520
Speaker 1: Law School, explain how the exemption from anti trust violations

711
00:39:59,560 --> 00:40:04,439
Speaker 1: for school as that practice need blind admissions fits in here.

712
00:40:05,120 --> 00:40:07,920
Speaker 1: So the first questions they fall within the exemption so

713
00:40:08,200 --> 00:40:11,719
Speaker 1: that they have a complete defense to an in trust suit.

714
00:40:12,480 --> 00:40:16,479
Speaker 1: And the plaintiffs seemed to be arguing two things. First

715
00:40:16,480 --> 00:40:21,319
Speaker 1: of all, they've broken the very first part of the statute,

716
00:40:22,160 --> 00:40:27,360
Speaker 1: which says that it applies to institutions of higher education

717
00:40:27,440 --> 00:40:30,520
Speaker 1: at which all students admitted are admitted on a need

718
00:40:30,600 --> 00:40:35,600
Speaker 1: blind basis. So basically they say, give us a break.

719
00:40:36,280 --> 00:40:40,960
Speaker 1: All of these schools consider money when they're making the decisions.

720
00:40:41,040 --> 00:40:45,560
Speaker 1: And they go through this in some detail, and it's

721
00:40:45,560 --> 00:40:48,400
Speaker 1: not pretty in some ways. I mean, you know, it

722
00:40:48,400 --> 00:40:51,399
Speaker 1: shows the extent to which the schools actually do seem

723
00:40:51,480 --> 00:40:56,279
Speaker 1: to consider the means of applicants in deciding who they

724
00:40:56,320 --> 00:41:00,520
Speaker 1: are going to admit in certain circumstances and do it

725
00:41:00,600 --> 00:41:04,319
Speaker 1: on a you know, an institutionalized basis. So even if

726
00:41:04,320 --> 00:41:09,080
Speaker 1: the plaintiffs prove the schools are outside of the antitrust exemption,

727
00:41:09,560 --> 00:41:12,960
Speaker 1: they still have to show their violating the antitrust laws.

728
00:41:13,040 --> 00:41:16,280
Speaker 1: How did they go about that? That's going to depend

729
00:41:16,320 --> 00:41:20,359
Speaker 1: on proving that there was an agreement on price. Now

730
00:41:20,440 --> 00:41:24,080
Speaker 1: they're using a common formula. What does that mean they're

731
00:41:24,120 --> 00:41:27,080
Speaker 1: agreeing on price? Do they deviate from the prices? Will

732
00:41:27,120 --> 00:41:30,919
Speaker 1: be subject of some question about whether, you know, whether

733
00:41:30,960 --> 00:41:35,680
Speaker 1: it's an agreement on price, and then whether there justifications

734
00:41:35,719 --> 00:41:39,279
Speaker 1: for what they do are in the language of any

735
00:41:39,280 --> 00:41:44,360
Speaker 1: trust pro competitive design. In the end that schools might argue,

736
00:41:44,520 --> 00:41:46,560
Speaker 1: this is a designed so that we can compete with

737
00:41:47,000 --> 00:41:49,880
Speaker 1: other schools, you know, in some way or another, and

738
00:41:50,000 --> 00:41:53,719
Speaker 1: don't exhaust all our money on certain applicants and don't

739
00:41:53,719 --> 00:41:56,800
Speaker 1: get a diverse class. And so a lot of hurdles

740
00:41:56,840 --> 00:42:00,480
Speaker 1: yet to go through the basic story of you know,

741
00:42:00,960 --> 00:42:05,400
Speaker 1: we purport to be needs blind, but we're privileged, baited

742
00:42:06,040 --> 00:42:08,520
Speaker 1: and as n y U law professor Harry First speaking

743
00:42:08,560 --> 00:42:11,200
Speaker 1: at Bloomberg Student Grasso. Catch more of that interview, plus

744
00:42:11,239 --> 00:42:13,680
Speaker 1: analysis of the latest legal news by listening to the

745
00:42:13,680 --> 00:42:17,280
Speaker 1: Bloomberg Law Show at ten pm Eastern Time or subscribing

746
00:42:17,320 --> 00:42:20,600
Speaker 1: to the Bloomberg Law Podcast, and attorneys can find exceptional

747
00:42:20,680 --> 00:42:24,640
Speaker 1: legal research and business development tools at Bloomberg Law dot

748
00:42:24,680 --> 00:42:28,360
Speaker 1: com and again US. In p futures, they are higher

749
00:42:28,400 --> 00:42:31,399
Speaker 1: this morning, up four points, Stow futures of twenties six

750
00:42:31,400 --> 00:42:34,520
Speaker 1: and Nasdaq futures of fifteen. The tenure Treasury down one

751
00:42:34,520 --> 00:42:37,440
Speaker 1: thirties second the other one point seven four percent, and

752
00:42:37,560 --> 00:42:39,880
Speaker 1: the yield on the two year point nine one percent,

753
00:42:39,960 --> 00:42:42,440
Speaker 1: and NIMEX screwed oil is little changed. Still ahead on

754
00:42:42,440 --> 00:42:44,839
Speaker 1: Bloomberg Daybreak and check on the business headlines and all

755
00:42:44,840 --> 00:42:47,319
Speaker 1: the news you need to start your day. This is

756
00:42:47,320 --> 00:42:47,920
Speaker 1: Bloomberg