WEBVTT - Bloomberg Daybreak: April 8, 2022 - Hour 2 (Radio) 0:00:02.080 --> 0:00:04.720 Five from the Bloomberg Interact. Dave Brooker Studios. Is is is 0:00:04.880 --> 0:00:09.080 Bloomberg Daybreak for Friday, April late. Coming up to sour 0:00:09.400 --> 0:00:12.559 economic pressure ratchets up on Russia. We are live in 0:00:12.600 --> 0:00:15.200 Europe with the latest. Jenny Yellen's push for a global 0:00:15.200 --> 0:00:18.480 tax agreement suffers a setback. The war hits food supply 0:00:18.600 --> 0:00:21.560 as prices serge at the fastest pace ever, and Elon 0:00:21.640 --> 0:00:24.079 Musk is set to address the staff at Twitter after 0:00:24.120 --> 0:00:27.000 taking a stake in the company. New York lawmakers struck 0:00:27.040 --> 0:00:29.720 a two hundred twenty billion dollar budget deal. Plus today 0:00:29.840 --> 0:00:33.880 President Bike will celebrate future Supreme Court Justice Jackson. Michael 0:00:33.880 --> 0:00:37.200 barn Or Ahead, I'm John stashdown towards the season opening 0:00:37.280 --> 0:00:39.159 win for the Mets, A big win for the Rangers, 0:00:39.159 --> 0:00:41.320 and they'll play the second round of the Masters today. 0:00:44.040 --> 0:00:47.880 That's all straight Ahead on Bloomberg Daybreak on Bloomberg eleven, 0:00:47.960 --> 0:00:52.240 Free on New York, Bloomberg one, Washington, d C, Bloomberg 0:00:52.240 --> 0:00:55.760 one O six one, Boston, Bloomberg nine sixties, San Francisco, 0:00:56.160 --> 0:00:59.080 Sirius x M one nineteen and around the world on 0:00:59.200 --> 0:01:02.600 Bloomberg Radio dot com and via the Bloomberg Business Act. 0:01:07.880 --> 0:01:11.040 Good morning. I'm Nathan Hagar and I'm Karen. Moscow and 0:01:11.160 --> 0:01:14.160 US Dock Index futures are higher to end the week. 0:01:14.240 --> 0:01:15.880 We're coming up to six oh one on Wall Street, 0:01:15.920 --> 0:01:18.000 and we checked the markets every fifteen minutes throughout the 0:01:18.040 --> 0:01:21.039 trading day. On Bloomberg S and P futures up about 0:01:21.040 --> 0:01:24.240 ten points, Dow futures up ninety six, Nasadack future is 0:01:24.319 --> 0:01:27.319 up thirty two, the ten year treasury down four thirty seconds, 0:01:27.560 --> 0:01:30.040 held two point six seven percent. They yield on the 0:01:30.120 --> 0:01:33.240 two year two point five one percent, and NIMEX screwed 0:01:33.319 --> 0:01:35.839 oil is up nine ten percent at ninety six dollars 0:01:36.240 --> 0:01:38.480 five cents a barrel. Nathan, all right, Karen, we'll have 0:01:38.520 --> 0:01:40.480 more on the markets in a minute. First, the latest 0:01:40.520 --> 0:01:43.440 on the war Ukraine says dozens of civilians have been 0:01:43.520 --> 0:01:46.560 killed in a Russian attack on a railway station in Dennette. 0:01:46.920 --> 0:01:50.040 Russia denies it. Meantime, the un A General Assembly has 0:01:50.120 --> 0:01:53.080 voted to suspend Russia from the Human Rights Council, and 0:01:53.160 --> 0:01:57.160 that's just the first step, Bloomberg said. Baxter reports. Secretary 0:01:57.200 --> 0:02:00.240 of State Antony Blanken says exactly the right move. When 0:02:00.360 --> 0:02:03.760 US Ambassador the U N Lynda. Thomas Greenfield says, the 0:02:03.800 --> 0:02:07.400 body must proceed with investigation and punishment. It's about the 0:02:07.440 --> 0:02:11.960 credibility of the U n Right now, the world is 0:02:12.040 --> 0:02:16.360 looking to us. They're asking if the United Nations is 0:02:16.440 --> 0:02:20.840 prepared to meet this moment. Greenfield calls it an historic 0:02:21.000 --> 0:02:24.640 moment with work left to be done. In San Francisco, 0:02:24.680 --> 0:02:27.400 I'm at Baxter Bloomberg Daybreak. All right, and thank you well. 0:02:27.400 --> 0:02:29.919 For the first time, the European Union has now targeted 0:02:30.000 --> 0:02:33.520 Russia's crucial energy revenues. We go live to London and 0:02:33.520 --> 0:02:36.400 get the latest at Bloomberg's Max Ramsey, Good morning, Max, 0:02:36.960 --> 0:02:39.400 Morning to you, Karen and Nathan. Yes, the European Union 0:02:39.440 --> 0:02:42.960 has banned co imports from Russia. As you say, this 0:02:43.040 --> 0:02:46.600 is a significant step. It's the first move targeting energy 0:02:46.720 --> 0:02:50.120 revenue from the European Union the sanctions. The sanctions package 0:02:50.320 --> 0:02:54.119 also includes a preventions on Russian trucks and ships from 0:02:54.240 --> 0:02:57.400 entering the EU it Previously there were no sanctions on energy. 0:02:57.560 --> 0:03:01.280 Germany hungry among those blocking this move given their reliance 0:03:01.280 --> 0:03:04.040 on Russian fossil fuels. Now some members want to go 0:03:04.160 --> 0:03:07.160 further and want more measures on Russian energy imports. And 0:03:07.280 --> 0:03:11.800 oil in particular, Live in London, Max Ramsey, Bloomberg Daybreak. Okay, Max, thanks, 0:03:11.800 --> 0:03:14.600 So many analysts think energy sanctions will put more pressure 0:03:14.600 --> 0:03:18.280 on Vladimir Putin. Tigar Shamali is a former policy advisor 0:03:18.320 --> 0:03:21.680 in the Treasury Department Sanctions Division. The language he understands 0:03:21.680 --> 0:03:23.560 the most is the threat of military force, and so 0:03:23.600 --> 0:03:26.200 I don't want to equate the threat of sanctions to 0:03:26.880 --> 0:03:28.960 the threat of military force when it comes to changing 0:03:29.080 --> 0:03:33.000 his behavior and compelling him to negotiate um. But it 0:03:33.120 --> 0:03:37.520 helps further the pressure and it helps most importantly limit 0:03:37.600 --> 0:03:41.520 his ability to finance his violence machine. Former Treasury advisor 0:03:41.560 --> 0:03:44.000 Hugar Shamali was a guest on Bloomberg Sound On. You 0:03:44.000 --> 0:03:46.600 can catch the program weekdays at five pm Eastern on 0:03:46.640 --> 0:03:49.920 Bloomberg Radio. Meantime, Nathan, the war in Ukraine is having 0:03:49.960 --> 0:03:52.520 a major impact on the cost of food. Global food 0:03:52.560 --> 0:03:55.160 prices are searching at the fastest pace ever as the 0:03:55.160 --> 0:03:57.880 war rates, havoc on supply chains and the Black Sea 0:03:57.920 --> 0:04:00.760 region that sent food prices to were record But the 0:04:00.800 --> 0:04:05.000 United Nations index at World costs storing last month, and 0:04:05.040 --> 0:04:07.200 we have more economic news this morning, caring as several 0:04:07.200 --> 0:04:10.240 feed officials weigh in on policy. St. Louis President Jim 0:04:10.240 --> 0:04:13.560 Bullard says he favors raising interest rates sharply to counter 0:04:13.600 --> 0:04:17.640 the highest inflation in four decades. This Taylor rule calculation 0:04:17.760 --> 0:04:19.599 is telling us that where we should be in a 0:04:19.720 --> 0:04:24.640 minimal under minimal assumptions, very generous assumptions. It's saying you 0:04:24.640 --> 0:04:26.560 should be a three and a half percent, where we 0:04:26.600 --> 0:04:30.440 actually only one third of one percent, or thirty seven 0:04:30.520 --> 0:04:33.520 and a half basis points. So you're too low by 0:04:33.560 --> 0:04:36.760 about three basis points. St. Louis Fed President Jim Bullard 0:04:36.800 --> 0:04:40.000 suggesting he backs the fifty basis point hike in May. However, 0:04:40.120 --> 0:04:43.520 Atlanta's Raphael Bostick supports increases more in line with the 0:04:43.560 --> 0:04:46.119 path laid out by the FEDS projections or dot plot. 0:04:46.520 --> 0:04:49.280 I think it's fully appropriate that we move our policy 0:04:49.760 --> 0:04:53.279 UH closer to a neutral position, but I think we 0:04:53.320 --> 0:04:55.599 need to do it in a measured way. Atlanta Fed 0:04:55.600 --> 0:04:58.200 President Raphael Bostick is a voter this year on the 0:04:58.279 --> 0:05:02.360 rate setting f o MC. Meantime, Nathan FED meetings could 0:05:02.400 --> 0:05:05.520 see some new faces on the way. Senate Banking Chairman 0:05:05.600 --> 0:05:08.279 Sheared Brown says he expects votes by the full Chamber 0:05:08.320 --> 0:05:11.640 on President Biden's for FED board nominees later this month. 0:05:11.800 --> 0:05:14.720 To get the details from Bloomberg's Charlie Pellett. He thinks 0:05:14.720 --> 0:05:16.919 that will happen after the Senate's two week break. The 0:05:16.960 --> 0:05:20.120 Ohio Democrats said he also hopes Biden will have nominated 0:05:20.160 --> 0:05:23.640 a new vice chair of supervision by then. Brown said 0:05:23.640 --> 0:05:26.760 he expects Lisa Cook, a pick for FED governor or 0:05:26.920 --> 0:05:30.279 Lele brainer nominated as vice chair, to be the first 0:05:30.320 --> 0:05:34.320 to be confirmed. Republicans have lined up in opposition to Cook, 0:05:34.520 --> 0:05:38.320 but four Republicans back Brainerd in the Banking Committee in 0:05:38.440 --> 0:05:41.599 New York. Charlie Bloomberg Day Break. All right, Charlie, thank you. 0:05:41.640 --> 0:05:43.719 At the Treasury Department this morning, there may be a 0:05:43.760 --> 0:05:47.240 setback for Janet Yellin's push for a global tax agreement. 0:05:47.400 --> 0:05:50.080 Let's get the latest on that live from Bloomberg's John Tucker, 0:05:50.160 --> 0:05:53.200 John Nathan. It looks like big business is not backing 0:05:53.240 --> 0:05:57.479 the plan. Executives at eight major US based multinational corporations 0:05:57.520 --> 0:06:01.080 interviewed Black Bloomberg said that forn't too much remains unknown 0:06:01.120 --> 0:06:04.480 about the deal. Transit Secretary Yelling counting on their support, 0:06:04.760 --> 0:06:07.600 which could be critical to help win passage in Congress. 0:06:07.960 --> 0:06:11.080 Corporate leaders agree the groundbreaking global deal that Yelling secured 0:06:11.160 --> 0:06:14.640 last year could deliver important benefits by helping to reduce 0:06:14.680 --> 0:06:17.680 disputes and prevent trade wars, but they also called the 0:06:17.720 --> 0:06:20.880 plan overly complex. Live in New York, I'm John Tucker, 0:06:21.000 --> 0:06:23.320 Bloomberg Daybreak. All right, John, thank you about turning to 0:06:23.360 --> 0:06:26.000 corporate news. Now it's all about Twitter again this morning, 0:06:26.080 --> 0:06:28.560 just days after announcing a stake in the company, Elon 0:06:28.640 --> 0:06:31.039 Musk is reportedly set to address the staff, and we 0:06:31.080 --> 0:06:33.400 get the details live from Bloomberg's or need a young 0:06:33.440 --> 0:06:35.920 good morning Ready down, Good morning, Karen. Twitter is planning 0:06:35.960 --> 0:06:38.200 to host Elon Musk for a qu a day session 0:06:38.240 --> 0:06:41.719 with employees. That's according to company messages obtained by The 0:06:41.720 --> 0:06:45.680 Washington Post, which says there are internal outcries over Musk's 0:06:45.680 --> 0:06:49.200 appointment to Twitter's board of directors. Town hall meetings like 0:06:49.279 --> 0:06:52.000 this they're not new to Silicon Valley, but it's rare 0:06:52.040 --> 0:06:54.760 to host a board member at one. Twitter is hoping 0:06:54.800 --> 0:06:58.120 to calm any anxiety workers have about Musk's impact on 0:06:58.279 --> 0:07:01.520 company culture by giving them the chance to ask him anything. 0:07:02.080 --> 0:07:05.200 Live in New York. I'm Renita young Bloomberg daybreak. Okay, 0:07:05.240 --> 0:07:08.200 we need to thank you. SMP futures now up ten points, 0:07:08.240 --> 0:07:11.880 Stafle futures up nine, Nasdaq futures up thirty four points 0:07:11.880 --> 0:07:15.040 in the tenure treasury yield two point six seven percent. 0:07:15.400 --> 0:07:19.480 Local headlines next, plus a check of sports. This is Bloomberg. 0:07:23.160 --> 0:07:25.200 It sounds six so seven on Wall Street where forty 0:07:25.280 --> 0:07:27.520 nine degrees in Central Park. We got an accident on 0:07:27.560 --> 0:07:31.200 northbound FDR Drive at seventy nine. More coming up in traffic. First, 0:07:31.240 --> 0:07:33.400 Michael Barr with what else is going on in New 0:07:33.480 --> 0:07:35.840 York and around the world. Michael, thank you very much, Nathan. 0:07:35.880 --> 0:07:38.840 New York Governor Kathy Hokel and legislative leaders struck a 0:07:38.880 --> 0:07:43.080 two hundred twenty billion dollar budget deal that promises a 0:07:43.160 --> 0:07:46.239 little less pain at the pump, help for working parents, 0:07:46.240 --> 0:07:49.760 and new tax breaks. It is balanced and appairs a 0:07:49.840 --> 0:07:54.320 bold vision with a fiscally responsible approach. Very important to me. 0:07:54.960 --> 0:07:57.960 We are making historic investments that will make different people's 0:07:58.000 --> 0:08:01.560 lives right now, but also more portly. These are legacy 0:08:01.600 --> 0:08:05.480 achievements to be noted for years to come. Governor Hokel 0:08:05.520 --> 0:08:08.119 says the budget includes a two point two billion dollar 0:08:08.240 --> 0:08:12.040 homeowner tax rebate. It also has a six month suspension 0:08:12.040 --> 0:08:16.239 of the state's fuel tax and two seven million dollars 0:08:16.240 --> 0:08:19.840 in child tax credits. Former Governor Andrew cuomoms the key 0:08:19.880 --> 0:08:23.040 deadlined amount of challenge against Governor Cathy Ocle in this 0:08:23.200 --> 0:08:27.720 year's New York Democratic primary. Prospective candidates had until five 0:08:27.760 --> 0:08:32.680 pm yesterday to electronically file fifteen thousand signatures necessary to 0:08:32.800 --> 0:08:36.640 achieve a place on the Democratic primary ballot. Manhattan District 0:08:36.640 --> 0:08:40.319 Attorney Alvin Bragg says a criminal investigation and to former 0:08:40.400 --> 0:08:44.760 President Donald Trump and his business practices is continuing despite 0:08:44.800 --> 0:08:47.920 a recent shakeup in the probe's leadership. It was part 0:08:47.920 --> 0:08:50.120 of a double dose of bad legal news for Trump. 0:08:50.400 --> 0:08:53.720 New York's Attorney General wrote Letitia James also asked a 0:08:53.800 --> 0:08:56.720 court to hold Trump in contempt and find him ten 0:08:56.760 --> 0:08:59.599 thousand dollars per day for failing to comply with the 0:08:59.640 --> 0:09:03.559 subpoeni enough for documents in her ongoing civil investigation. President 0:09:03.640 --> 0:09:07.240 Joe Biden today will celebrate the confirmation of Judge Katangi 0:09:07.320 --> 0:09:11.240 Brown Jackson to the Supreme Court. Vice President Kamala Harris 0:09:11.280 --> 0:09:14.000 says she was honored to preside over the Senate for 0:09:14.120 --> 0:09:17.839 yesterday's confirmation vote. The Senate approved Judge Jackson in a 0:09:17.920 --> 0:09:21.800 fifty three seven vote, making her the first black woman 0:09:21.840 --> 0:09:25.520 to serve as a Supreme Court justice. What a glorious day. 0:09:25.559 --> 0:09:31.800 In the evening, it is, what holiest day. Vice President 0:09:31.840 --> 0:09:34.800 Harris spoke during an event at the National Art Gallery 0:09:34.880 --> 0:09:37.960 last night. One person who can't be at today's celebration 0:09:38.040 --> 0:09:41.320 is how speaker Nancy Pelosi. She tested positive for COVID yesterday. 0:09:41.640 --> 0:09:43.760 The test came less than twenty four hours after she 0:09:43.880 --> 0:09:47.079 was standing next to President Biden for bill signing. Global 0:09:47.080 --> 0:09:49.440 News twenty four hours a day on air and on 0:09:49.480 --> 0:09:53.160 Bloomberg Quick Take, powered by more than under journalists and 0:09:53.160 --> 0:09:55.839 analysts more than a d twenty countries. I'm Michael bar 0:09:56.000 --> 0:10:03.120 This is Bloomberg. Nathan. All right, Michael, Thanks six o 0:10:03.240 --> 0:10:05.400 nine on Wall Street. Time for the Bloomberg Sports Update 0:10:05.440 --> 0:10:08.240 with John Stenshaw. All right, Nathan. Since nineteen seven eight, 0:10:08.320 --> 0:10:10.319 the Mets the only one in the World Series once. 0:10:10.360 --> 0:10:12.400 But what they have done over the last fifty three 0:10:12.480 --> 0:10:15.720 years is being dominant on opening day, an incredible record 0:10:15.720 --> 0:10:18.760 of forty and thirteen. It was five one in Washington. 0:10:18.840 --> 0:10:22.160 Tyler McGill a surprise opening day starter held five score 0:10:22.200 --> 0:10:24.680 of sitnings. Eight of the nine METS starters had hits. 0:10:24.760 --> 0:10:27.520 Robinson Canoe had two, so did Peter Alonso and Marc Anna. 0:10:27.880 --> 0:10:31.000 Tonight in d C, it's Max Scherzer's METS debut, facing 0:10:31.000 --> 0:10:33.480 his old team who at the Skies now clear Yankees 0:10:33.520 --> 0:10:35.880 and Red Sox set to open their seasons today at 0:10:35.880 --> 0:10:39.240 the Stadium. Garrett cole versus Nasa. Evaldi also this afternoon 0:10:39.320 --> 0:10:41.360 round two of the Master's Tangier Woods as a late 0:10:41.440 --> 0:10:44.000 DA time which gives him a chance to recover from 0:10:44.000 --> 0:10:46.160 his first competitive round in a year and a half. 0:10:46.240 --> 0:10:49.199 It was a very impressive one oh one under par seven. 0:10:49.240 --> 0:10:50.960 You want to play this golf course and to do 0:10:51.000 --> 0:10:55.320 what I did today to make the to hit the 0:10:55.320 --> 0:10:56.920 shufts in the right spotting line. I know where to 0:10:57.000 --> 0:10:58.200 hit it to a lot of these pins and I'm 0:10:58.200 --> 0:11:00.240 missing the correct spots and give myself good ankle. And 0:11:00.720 --> 0:11:02.280 I did that all day and I was able to 0:11:02.280 --> 0:11:03.720 make a few puts and end up in the red. 0:11:03.800 --> 0:11:06.640 Luck I am right now. Year old Korean Sun Jam 0:11:06.679 --> 0:11:08.400 shot sixty seven. He's got a one shot lead on 0:11:08.440 --> 0:11:11.440 the aussee. Cameron Smith hourly updates on Bloomberg Radio The 0:11:11.440 --> 0:11:14.080 Master's Tonight wrap up show with eleven. If the NHL 0:11:14.120 --> 0:11:16.679 season and and out, the Rangers would face Pittsburgh opening 0:11:16.679 --> 0:11:19.240 around of the playoffs. They just met the Penguins three 0:11:19.280 --> 0:11:22.000 times over the last two weeks and one all three. 0:11:22.080 --> 0:11:24.000 It was three nothing at the Guard with Igor sister 0:11:24.080 --> 0:11:27.320 Can making thirty says for his fourth shutout. First in January, 0:11:27.679 --> 0:11:30.360 Devils lost in Montreal seven to four. Final weekend of 0:11:30.400 --> 0:11:32.640 the NBA regular season. The nixed closed out tonight in 0:11:32.720 --> 0:11:36.280 Washingtonton and then Sunday against Toronto. Nets have home games 0:11:36.360 --> 0:11:42.320 tomorrow and Sunday versus Cleveland and Indiana. Johns Bloomberg Sports Nation, Okay, John, 0:11:42.360 --> 0:11:44.280 thanks right now. S and p futures are up eleven 0:11:44.280 --> 0:11:46.880 points down futures up a hundred seven nanstack futures are 0:11:46.960 --> 0:11:50.079 higher by thirty eight points. The tenure treasury down to 0:11:50.360 --> 0:11:53.800 thirty seconds. The yield two point six six yield on 0:11:53.880 --> 0:11:56.920 the two year two point five zero percent. The latest 0:11:56.960 --> 0:12:00.200 on the war and pressure on rush at next will 0:12:00.200 --> 0:12:02.920 be checking in with Greg Valier of a GF. This 0:12:03.200 --> 0:12:08.559 is Bloomberg. The Bloomberg Gay Break is brought to you 0:12:08.600 --> 0:12:10.680 by the Jewish Communal Fund j c F S donor 0:12:10.720 --> 0:12:13.160 advised fund is the smart choice to manage your philanthropy, 0:12:13.280 --> 0:12:16.120 especially in times of crisis. Make your giving impactful. Is 0:12:16.160 --> 0:12:24.800 that j c F n Y dot org markets headlines 0:12:24.840 --> 0:12:27.839 and breaking news twenty four hours a day at Bloomberg 0:12:27.880 --> 0:12:31.240 dot com, the Bloomberg Business at and at Bloomberg Quick Tape. 0:12:31.480 --> 0:12:40.760 This is a Bloomberg Business flash and I'm Karen Moscow 0:12:40.880 --> 0:12:43.600 stops ending the week on a positive note, with European 0:12:43.640 --> 0:12:46.120 equity snapping two days at a client sparked by the 0:12:46.160 --> 0:12:50.000 federal reserves plan for aggressive monetary policy tightening, and US 0:12:49.960 --> 0:12:52.280 stock index futures on the rise. We checked the markets 0:12:52.320 --> 0:12:55.360 every fifteen minutes throughout the trading day on Bloomberg s 0:12:55.400 --> 0:12:58.079 and P futures up six points down, futures up eight, 0:12:58.480 --> 0:13:01.120 nasday futures up four t and the decks in Germany's 0:13:01.160 --> 0:13:03.839 up one point two percent ten. Your treasury down three 0:13:03.880 --> 0:13:06.640 thirties seconds, yield two point six seven percent, The yield 0:13:06.679 --> 0:13:09.439 on a two year two point five zero percent. Nine 0:13:09.480 --> 0:13:12.040 max Screwed oil is up one percent or ninety seven 0:13:12.080 --> 0:13:14.760 cents at ninety seven dollars of Barrel Comic School that 0:13:14.760 --> 0:13:17.880 will change at nineteen thirty seven. Announce the Euro one 0:13:18.240 --> 0:13:20.760 eight seven seven against the dollar, British pound one point 0:13:20.800 --> 0:13:23.520 three zero five zero and again is at one twenty 0:13:23.600 --> 0:13:26.680 four point oh seven and Bitcoin lower down a tenth 0:13:26.720 --> 0:13:29.839 of a percent at forty three thousand, five d thirty dollars. 0:13:29.920 --> 0:13:32.440 That's a Bloomberg Business flash. Now here's Michael Barr with 0:13:32.480 --> 0:13:35.320 more on what's going on around the world. Muchael Karen, 0:13:35.360 --> 0:13:37.960 thank you very much. The UN General Assembly voted to 0:13:38.000 --> 0:13:42.040 suspend Russia from the organization's leading human rights body over 0:13:42.160 --> 0:13:45.959 allegations of which prosody is in Ukraine. Meanwhile, European Union 0:13:46.000 --> 0:13:49.720 countries agreed to ban coal imports from Russia. President Biden 0:13:49.760 --> 0:13:52.560 behold a ceremony today for Katangi Brown Jackson, who was 0:13:52.559 --> 0:13:55.839 confirmed to the Supreme Court yesterday. In golf at the 0:13:55.880 --> 0:13:59.680 Master's Sun, j M leads the field after round one 0:13:59.800 --> 0:14:03.360 with five under. Tiger Woods has four shots back from 0:14:03.360 --> 0:14:06.280 the lead. Stay tuned for updates every hour on Bloomberg 0:14:06.400 --> 0:14:09.600 Radio and a special edition of Masters Tonight coming up 0:14:09.720 --> 0:14:13.120 at eleven pm Eastern. In Major League Baseball, the Mets 0:14:13.160 --> 0:14:15.880 beat the Nationals five one, and their opener the Yankees 0:14:15.920 --> 0:14:19.520 host the Red Sox today after yesterday's scheduled opener was 0:14:19.560 --> 0:14:22.480 postponed because of rain. In the NHL, the Rangers won 0:14:22.560 --> 0:14:25.600 the Devil's Lost. Global News twenty four hours a day 0:14:25.680 --> 0:14:29.000 on air and on Bloomberg Quicktake, powered by more than 0:14:29.080 --> 0:14:31.640 twenty seven hundred journalists and analysts more than a hundred 0:14:31.720 --> 0:14:36.000 twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan. Okay, Michael. Thanks. 0:14:36.040 --> 0:14:38.480 It is six nineteen on Wall Street Live from the 0:14:38.520 --> 0:14:42.480 Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and we're 0:14:42.560 --> 0:14:45.520 joined now by Greg Valier, or, chief US policy strategist 0:14:45.560 --> 0:14:49.120 at a GF Investments, as we continue following developments in 0:14:49.160 --> 0:14:52.160 the war in Ukraine. Greg, good morning. Of course, we've 0:14:52.200 --> 0:14:56.640 seen the apparent atrocities in northern Ukraine and now as 0:14:56.720 --> 0:15:01.240 Russia moves east, Ukraine is accusing the England forces of 0:15:01.440 --> 0:15:04.920 rocket attacks that have left maybe thirty civilians dead in 0:15:05.000 --> 0:15:09.480 a railway station where civilians were trying to evacuate. The 0:15:09.640 --> 0:15:12.280 Russia's denying this, but if it turns out to be 0:15:12.320 --> 0:15:14.760 the case, what does this tell you about where this 0:15:14.840 --> 0:15:19.720 war is going from here? Well, it's increasingly ugly obviously, Nathan, 0:15:19.760 --> 0:15:21.720 and I think it will stay that way for a while. 0:15:22.120 --> 0:15:24.600 But let me disagree. If I might this morning with 0:15:24.640 --> 0:15:28.720 the conventional wisdom that don Bass and Eastern Ukraine will 0:15:28.760 --> 0:15:31.880 be a stalemate or the Russians may prevail, I'm not 0:15:31.960 --> 0:15:34.720 so sure about that. I think the big problem for 0:15:34.760 --> 0:15:38.600 the Russian troops continues to be their supply lines that 0:15:39.000 --> 0:15:41.920 failed them in the move towards Kievan and may fail 0:15:41.960 --> 0:15:47.480 them again. Is I going to depend on further weapons 0:15:47.520 --> 0:15:51.360 support from Europe and from the US for Ukraine to 0:15:51.560 --> 0:15:53.960 continue to hold the line, because, as you say, we 0:15:54.080 --> 0:15:58.040 have seen some pretty remarkable resistance by Ukrainian forces over 0:15:58.080 --> 0:16:01.160 the last month or so. Yeah. Absolutely, And I do 0:16:01.280 --> 0:16:04.760 think that this lull gives a chance not just for 0:16:04.800 --> 0:16:08.480 the Russian troops to you know, remobilize, but it gives 0:16:08.520 --> 0:16:11.560 the Ukrainians a chance to get a lot more very 0:16:11.560 --> 0:16:16.200 sophisticated weapons from the US and Western Europe, a lot 0:16:16.280 --> 0:16:19.760 of defensive some offensive. I think the Ukrainian troops will 0:16:19.800 --> 0:16:23.320 be very well armed for this battle in the east. Now, 0:16:23.400 --> 0:16:27.840 you mentioned the idea of Russia remobilizing here just to 0:16:27.880 --> 0:16:32.080 take the other side of the coin. Could Russia remobilize 0:16:32.120 --> 0:16:35.520 further to sort of organize better, because we have seen, 0:16:35.600 --> 0:16:37.720 at least the way this war has gone so far, 0:16:37.760 --> 0:16:42.800 a lot of evidence of disorganization by Russian forces. Could 0:16:42.840 --> 0:16:46.640 things firm up, you would think so, Considering how a 0:16:46.760 --> 0:16:50.120 nept the first month has gone for the Russian troops, 0:16:50.680 --> 0:16:53.920 I still think that there's a morale problem. I still 0:16:53.960 --> 0:16:56.880 think there's a supply problem. I mean, Russian troops didn't 0:16:56.920 --> 0:17:01.440 have enough water, fuel, food as they got close to Kiev. 0:17:01.960 --> 0:17:05.359 I'm assuming that has improved, but the ports where a 0:17:05.359 --> 0:17:08.399 lot of these supplies come have been under attacked by 0:17:08.520 --> 0:17:12.280 Ukrainian forces, so I'm not sure the supply lines are 0:17:12.320 --> 0:17:14.679 going to be solid. I want to ask you a 0:17:14.680 --> 0:17:18.120 little bit about the world response. We got that vote 0:17:18.119 --> 0:17:21.320 in the U n. General Assembly yesterday removing Russia from 0:17:21.359 --> 0:17:27.359 the Human Rights Council, and the Senate unanimously uh put 0:17:27.440 --> 0:17:30.520 these trade restrictions on Russia. Do you see that having 0:17:31.000 --> 0:17:34.719 any impact in terms of how Putin could play this 0:17:34.760 --> 0:17:37.600 war out going further. Well, I could embarrass him, but 0:17:37.640 --> 0:17:40.920 I think he's incapable of being embarrassed. I'm not sure 0:17:41.000 --> 0:17:43.439 that's going to have a big impact. I still think 0:17:43.640 --> 0:17:46.240 as we get well into this spring, and I'm sadly 0:17:46.640 --> 0:17:48.720 afraid it's going to last for a few more months. 0:17:48.720 --> 0:17:51.119 But as we get well into the spring, I do 0:17:51.200 --> 0:17:53.720 think there'll be an increased focus on the exit ramp, 0:17:54.119 --> 0:17:57.399 something that Putent can take and call you know, maybe 0:17:57.400 --> 0:17:59.880 he will be lying, of course, but call of victory. 0:18:00.320 --> 0:18:03.840 I do think there will be something involving a promise 0:18:03.920 --> 0:18:07.680 by Ukraine not to join NATO. But I increasingly think 0:18:07.720 --> 0:18:11.760 because of all of the massacres and atrocities, that the 0:18:11.880 --> 0:18:15.520 Ukrainians are very unlikely to give up any territory. That's 0:18:15.520 --> 0:18:19.320 an interesting point greg the idea of off ramps in 0:18:19.359 --> 0:18:22.639 the next few months, because we've heard from the likes 0:18:22.880 --> 0:18:26.720 of NATO Secretary General John Stoltenberg that this war could 0:18:26.720 --> 0:18:29.520 go on not just for months, but maybe for years. 0:18:29.600 --> 0:18:35.280 Where do you see potential off ramps for Russia. Well, again, 0:18:35.320 --> 0:18:38.639 it's going to have to be after more carnage. But 0:18:38.760 --> 0:18:40.960 I do think that Russia, if Russia can get a 0:18:41.000 --> 0:18:46.399 guarantee of Ukrainian neutrality, if maybe Russia will insist on 0:18:46.440 --> 0:18:49.000 a little bit of land. But that's going to be 0:18:49.040 --> 0:18:51.520 a sticking point. And you know, the other sticking point Nathan, 0:18:52.000 --> 0:18:55.000 is the end of sanctions. You just can't turn them 0:18:55.040 --> 0:18:57.480 on and off like a light switch. And I think 0:18:57.520 --> 0:19:02.080 that Putin is going to have sang since persistent even 0:19:02.119 --> 0:19:05.240 after the war ends. In our last thirty seconds here, 0:19:05.280 --> 0:19:07.520 you've got to think as well that a big sticking 0:19:07.520 --> 0:19:10.520 point is trust on the Ukrainian side, because Russia has 0:19:10.560 --> 0:19:15.320 reneged so many times in h in its past discussions. Yeah, 0:19:15.400 --> 0:19:17.640 so much of this is psychological, and I would say 0:19:17.680 --> 0:19:21.400 that morale continues to be a really big point. Russian 0:19:21.400 --> 0:19:25.160 troops are willing to die for their country. Uh, Ukrainian 0:19:25.200 --> 0:19:27.479 troops will die for their country. I'm not sure your 0:19:27.520 --> 0:19:30.679 Russian troops are willing to die for Vladimir Putin. And 0:19:30.760 --> 0:19:34.440 I think the morale story is going to be increasingly crucial. Alright, 0:19:34.480 --> 0:19:37.600 Gregg Value, as always, thank you for your insights. Gregg Valuers, 0:19:37.680 --> 0:19:42.119 chief US policy strategist at a GF Investments. SMP future 0:19:42.200 --> 0:19:45.200 is now up five points, now futures up seventy four, 0:19:45.320 --> 0:19:48.720 NASTAC futures pairing some of their games now there up 0:19:48.720 --> 0:19:52.160 by only nine points, so little changed for the tech 0:19:52.160 --> 0:19:55.640 heavy NASTAC futures, just ahead of setback for a global 0:19:55.720 --> 0:20:00.479 tax deal. And Elon Musk says Ask Me Anything Twitter. 0:20:01.280 --> 0:20:04.200 Top stories of the morning. Just ahead on Bloomberg day Break. 0:20:07.760 --> 0:20:10.639 Bloomberg Daybreak brought to you by Ancient Accountants and Advisers. 0:20:10.720 --> 0:20:14.000 Challenging times call for proactive advisors who help minimize taxes, 0:20:14.040 --> 0:20:16.560 increase cash flow, and create opportunities for the future of 0:20:16.600 --> 0:20:24.159 your business. Visit Ancient dot Com cridcasting live from the 0:20:24.200 --> 0:20:28.160 Bloomberg Interactive Broker Studio in New York. Bloomberg E Loving 0:20:28.240 --> 0:20:32.800 Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one 0:20:32.840 --> 0:20:36.040 All six one does San Francisco, Bloomberg No. Sixt to 0:20:36.080 --> 0:20:38.720 the country Sirius xm ch A one nine team and 0:20:38.840 --> 0:20:42.200 around the globe, the Bloomberg Business app and Bloomberg Radio 0:20:42.320 --> 0:20:51.320 dot Com. This is Bloomberg Daybreak, six thirty on Wall Street. 0:20:51.320 --> 0:20:54.119 Good morning, I'm Nathan Hagger and I'm Karen Moscow. We 0:20:54.200 --> 0:20:56.520 are just about three hours away from the open of 0:20:56.680 --> 0:20:58.800 US trading. It's time for the five things you need 0:20:58.840 --> 0:21:00.760 to know to start your day. Brought to you by 0:21:00.840 --> 0:21:04.960 Interactive Brokers. Interactive Brokers charges margin loan rates from zero 0:21:05.000 --> 0:21:07.159 point a three percent to one point a three percent 0:21:07.280 --> 0:21:10.000 rates subject to change. Learn more at ibkr dot com 0:21:10.040 --> 0:21:14.400 slash compare First Ukraine says twenty seven civilians have been 0:21:14.480 --> 0:21:17.440 killed in a Russian attack on a railway station. We're 0:21:17.480 --> 0:21:20.840 told they were preparing to evacuate. Meantime, the UN General 0:21:20.920 --> 0:21:24.040 Assembly has voted to suspend Russia from the Human Rights Council. 0:21:24.200 --> 0:21:28.320 US Ambassador Linda Thomas Greenfield let us continue to hold 0:21:28.400 --> 0:21:35.080 Russia accountable for this unprovoked, unjust, unconscionable war and to 0:21:35.160 --> 0:21:38.320 do everything in our power to stand with the people 0:21:38.520 --> 0:21:42.720 of Ukraine. Ambassador Linda Thomas Greenfield says, it's a collective 0:21:42.840 --> 0:21:45.480 step in the right direction and for the first time caring. 0:21:45.520 --> 0:21:49.200 The European Union is targeting Russia's crucial energy reserves. The 0:21:49.240 --> 0:21:52.520 Block has agreed to ban Russian coal imports. It's also 0:21:52.600 --> 0:21:55.520 banning most Russian trucks and ships from entering the EU. 0:21:56.000 --> 0:21:58.320 Well Nathan. Meantime, the war in Ukraine is having a 0:21:58.320 --> 0:22:00.959 major impact on the cost of food. Global food prices 0:22:01.000 --> 0:22:03.239 are surging at the fastest pace ever as the war 0:22:03.400 --> 0:22:06.399 rates havoc on supply chains. The United Nations Index of 0:22:06.440 --> 0:22:10.320 World Costs or last month at the Treasury Department this morning, 0:22:10.320 --> 0:22:13.000 there's been an apparent setback for Janet Yellen. We're told 0:22:13.000 --> 0:22:15.480 big business is pushing back against your plans for a 0:22:15.480 --> 0:22:18.440 global tax agreement. Let's get the details Life from Bloombrigs, 0:22:18.480 --> 0:22:21.639 John Tucker, John Nathan the Treasury Secretary. Yellen counting on 0:22:21.680 --> 0:22:24.480 the support of corporate America for her global tax deal 0:22:24.720 --> 0:22:28.119