WEBVTT - Bloomberg Daybreak: March 8, 2022 - Hour 2 (Radio) 0:00:02.680 --> 0:00:05.920 Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:05.960 --> 0:00:09.479 Dave Break for Tuesday, March eight. Coming up this hour, 0:00:09.760 --> 0:00:12.560 U s lawmakers make plans to ban Russian oil as 0:00:12.640 --> 0:00:15.840 crude prices continue to climb. Moscow threatens to cut off 0:00:15.880 --> 0:00:18.600 natural gas applies to Europe. Sticker shock at the pump 0:00:18.640 --> 0:00:21.079 as US gas prices hit an all time record and 0:00:21.160 --> 0:00:23.160 the S and P five hundred comes off its worst 0:00:23.239 --> 0:00:26.520 day since Octloober of New York City prepares for the 0:00:26.520 --> 0:00:30.520 possibility of cyber attack by Russia. Plus President Bible sign 0:00:30.560 --> 0:00:35.120 and executive order regulating cryptocurrency. Michael Larger, More ahead, I'm 0:00:35.159 --> 0:00:37.720 John stas Shower and sports, A big night for Julius 0:00:37.800 --> 0:00:40.959 Randolly led the next the Victory and Sacramento the Islanders 0:00:41.040 --> 0:00:46.559 lost to Colorado. That's all straight Ahead on Bloomberg day 0:00:46.560 --> 0:00:51.560 Break on Bloomberg Elementary on New York, Bloomberg one, Washington, 0:00:51.640 --> 0:00:55.760 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 0:00:55.760 --> 0:00:59.760 San Francisco, Sirius x M one nineteen and around the 0:00:59.760 --> 0:01:02.520 world Old on Bloomberg Radio dot Com and via The 0:01:02.640 --> 0:01:10.000 Bloomberg Business. Good Morning, I'm Karen Moscow. I'm Nathan Hagar. 0:01:10.040 --> 0:01:12.800 Bloomberg Daybreak brought to you by Interactive Brokers Simple i 0:01:12.959 --> 0:01:15.720 b k R Global Trader app. Deposit in your local 0:01:15.760 --> 0:01:18.440 currency and trade stocks in the US, Europe and Asia. 0:01:18.560 --> 0:01:21.280 Start your free trial at I b k R dot com, 0:01:21.319 --> 0:01:24.839 Slash Global Trader and US futures are higher this morning 0:01:24.840 --> 0:01:27.800 after the biggest one day loss for stocks since it 0:01:27.880 --> 0:01:29.600 is six o one on Wall Street. We checked the 0:01:29.600 --> 0:01:32.520 markets every fifteen minutes throughout the trading day on Bloomberg. 0:01:32.760 --> 0:01:35.600 Right now, SMP futures are out fifteen points down, Future 0:01:35.640 --> 0:01:38.559 is up eighty NASDACK futures up twenty one. The decks 0:01:38.560 --> 0:01:41.560 in Germany's up six tenths of percent ten. Your treasury 0:01:41.560 --> 0:01:44.240 down nineteen thirty seconds. You have one point eight four percent, 0:01:44.280 --> 0:01:46.920 and they yield on the two year is at one 0:01:46.959 --> 0:01:50.240 point six zero percent. NIMEX screwed oil is up two 0:01:50.280 --> 0:01:54.760 point eight percent at two dollars sixty seven cents of barrel. Nathan, Okay, Karen, 0:01:54.800 --> 0:01:56.680 We'll have more on the markets in a minute, but first, 0:01:56.720 --> 0:01:59.440 the latest on the war in Ukraine. Russia is threatening 0:01:59.440 --> 0:02:01.480 to cut off down tro gas supplies to Europe through 0:02:01.480 --> 0:02:04.320 the Nord Stream one pipeline fence in response to sanctions 0:02:04.320 --> 0:02:07.560 for the US, Europe and their allies. Russian President Vladimir 0:02:07.560 --> 0:02:10.200 Putin says the war will continue until all his demands 0:02:10.200 --> 0:02:13.520 are met, but Ukrainian President Vladimir Zolenski says it's not 0:02:13.680 --> 0:02:16.560 that simple. This is another ultimatum and we are not 0:02:17.040 --> 0:02:20.480 prepared for ultimatums. What needs to be done is for 0:02:20.639 --> 0:02:24.120 President Putting to stop talking, start the dialect, instead of 0:02:24.560 --> 0:02:28.399 living in the informational bubble without oxygen. I think that's 0:02:28.400 --> 0:02:31.760 why he is Ukrainian President Zolenski spoke to ABC News. 0:02:31.960 --> 0:02:34.360 Russia and Ukraine say they will talk again today about 0:02:34.480 --> 0:02:37.720 establishing humanitarian quarters for civilians. The head of the u 0:02:37.840 --> 0:02:40.440 n's refugee agency says the number of people fleeing the 0:02:40.440 --> 0:02:43.800 fighting has now topped two million. Meantime, on Capitol Hill, 0:02:43.919 --> 0:02:46.840 Nathan lawmakers are working to ramp up pressure on Moscow. 0:02:46.919 --> 0:02:48.920 They've come up with a plan to ban in boards 0:02:48.919 --> 0:02:52.160 of Russian oil into the US. Amy Morris has details 0:02:52.200 --> 0:02:56.520 from mar Bloomberg newsroom in Washington. Biden administration officials have 0:02:56.560 --> 0:02:59.320 been working out what the economic repercussions might be for 0:02:59.480 --> 0:03:02.600 U S cons sumers. The agreement would also give President 0:03:02.639 --> 0:03:05.840 Biden the power to boost tariffs on other imports from 0:03:05.919 --> 0:03:09.200 Russia and Belarus. It would seek a suspension of Russia's 0:03:09.200 --> 0:03:12.799 participation in the World Trade Organization. The White House has 0:03:12.800 --> 0:03:16.160 been noncommittal. White House Press Secretary Jen Psaki says no 0:03:16.320 --> 0:03:18.760 decision has been made yet. The best thing we can 0:03:18.800 --> 0:03:22.560 do is reduced our dependence on fossil fuels and foreign 0:03:22.560 --> 0:03:25.399 oil so that we're not worried about gas prices going 0:03:25.480 --> 0:03:28.440 up because of the whims of a foreign dictator. The 0:03:28.480 --> 0:03:31.440 House of Representatives could vote on the proposal as soon 0:03:31.520 --> 0:03:35.720 as tomorrow in Washington. I maybe more as Bloomberg daybreak right, Amy, thanks, 0:03:35.840 --> 0:03:38.360 Once again, we're seeing major market moves tied to the 0:03:38.400 --> 0:03:40.560 war in Ukraine. Let's get the very latest from Bloomberg's 0:03:40.600 --> 0:03:43.600 John Tucker Live in New York. John Nathan disruption to 0:03:43.760 --> 0:03:46.640 energy markets and brought her uncertainty sent the down, Jones 0:03:46.640 --> 0:03:50.280 and dustrial lanverage down two point four percent in Monday's session, 0:03:50.760 --> 0:03:54.640 SMB five lost nearly three percent, the NAZAC got pummeled 0:03:54.760 --> 0:03:57.680 down three point six per Well, this morning, some risk 0:03:57.840 --> 0:04:00.480 sentiment has returned the stocks and you're up along with 0:04:00.600 --> 0:04:04.160 US futures. After we reported that the European Union is 0:04:04.240 --> 0:04:07.840 considering joint bond sales to help counter the fallout from 0:04:07.880 --> 0:04:10.680 the war. Our sources say the bond sale proposal may 0:04:10.720 --> 0:04:13.680 be presented as soon as next week. On another front, 0:04:13.760 --> 0:04:17.279 the London Medal Exchange halted trading in its nickel market 0:04:17.600 --> 0:04:21.560 after an unprecedented price bike left brokers struggling to pay 0:04:21.600 --> 0:04:24.920 margin calls live in New York on John Tucker Bloomberg 0:04:25.000 --> 0:04:27.160 Day Break. All right, John, thank you. The oil prices 0:04:27.160 --> 0:04:30.120 are searching again this morning. If penalties hit Russian crew, 0:04:30.240 --> 0:04:33.640 there's likely no way to replace that production. That's according 0:04:33.680 --> 0:04:37.160 to OPEC Secretary General Mohammed Barkindo, how do we survive 0:04:37.240 --> 0:04:41.120 this crisis? There is no capacity in the world at 0:04:41.160 --> 0:04:47.240 the moment that country place seven million barrels of exports. 0:04:47.240 --> 0:04:51.520 OPEC Secretary General Mohammed Barkindo describes Russia's war against Ukraine 0:04:51.560 --> 0:04:55.080 as a humanitarian tragedy and checking prices now nine ex 0:04:55.080 --> 0:04:58.960 screwed oil is a two point nine hundred five cents 0:04:59.000 --> 0:05:01.800 of barrel is up three point one percent at a 0:05:01.839 --> 0:05:05.000 hundred twenty seven dollars a barrel, and gas prices have 0:05:05.080 --> 0:05:07.479 surged over the past two weeks. Karen, that's causing pain 0:05:07.520 --> 0:05:09.200 at the pump, but drivers say they'd be willing to 0:05:09.200 --> 0:05:11.560 pay even more if it would end the war in Ukraine. 0:05:11.839 --> 0:05:15.000 We get the details from Bloomberg's Lisa Mateo. Gas prices 0:05:15.160 --> 0:05:18.360 are soaring, but many drivers are saying will pay more 0:05:18.400 --> 0:05:21.040 at the pump. That's according to a Quinnipiac poll, which 0:05:21.040 --> 0:05:25.000 found seventy one percent of Americans would support banning Russian 0:05:25.000 --> 0:05:28.000 oil even if it leads to higher gas prices. The 0:05:28.120 --> 0:05:31.320 national average for gas has reached four dollars and seventeen 0:05:31.400 --> 0:05:34.200 cents a gallon, according to Triple A. That tops the 0:05:34.279 --> 0:05:37.920 nationwide monthly record of four dollars and ten cents set 0:05:37.960 --> 0:05:40.240 back in two thousand and eight. In New York, I'm 0:05:40.320 --> 0:05:43.560 Lisa Mateo Bloomberg Daybreak, Right, Lisa, thank you well. As 0:05:43.560 --> 0:05:47.080 we're rages in Ukraine, top US intelligence officials are coming 0:05:47.080 --> 0:05:49.880 out with their annual threat assessment. The Office of the 0:05:49.880 --> 0:05:53.599 Director of National Intelligence sees a grim global outlook thanks 0:05:53.640 --> 0:05:56.920 to Russia and China. Bloomberg's Reedy Young joins US Live 0:05:56.960 --> 0:05:59.120 with the details. Good Morning, Ready Down, Good morning, Karen. 0:05:59.200 --> 0:06:02.000 The threat as Smith says China is developing one of 0:06:02.040 --> 0:06:05.920 the greatest nuclear weapons forces in history, while Russia will 0:06:05.960 --> 0:06:09.799 exploit every opportunity to undermine the US and its allies. 0:06:10.120 --> 0:06:13.360 The nation's top intelligence chiefs will testify about their report 0:06:13.400 --> 0:06:16.600 before the House Committee today. The assessment is used by 0:06:16.680 --> 0:06:21.120 Congress as a baseline to make critical decisions advanced legislation 0:06:21.320 --> 0:06:24.320 and craft budgets, but since it was written before Russia 0:06:24.360 --> 0:06:28.279 invaded Ukraine, lawmakers will likely press intelligence chiefs for the 0:06:28.320 --> 0:06:32.000 most current assessments during today's hearing. Live in New York, 0:06:32.080 --> 0:06:34.840 I'm reneed a young Bloomberg Daybreak, Nita. Thanks. When it 0:06:34.880 --> 0:06:36.800 comes to the assessment for markets, it's all about the 0:06:36.839 --> 0:06:39.240 fallout from the war and the future of FED policy. 0:06:39.279 --> 0:06:42.160 The Fed meets one week from today. Morgan Stanley CEO 0:06:42.240 --> 0:06:44.800 James Gorman says the Central Bank should still start rate 0:06:44.839 --> 0:06:47.440 hikes despite the war. Speaking in Sydney, he said the 0:06:47.440 --> 0:06:50.280 Fed needs to contain prices but also be careful not 0:06:50.320 --> 0:06:53.279 to tip the economy into recession. Well. In corporate news, 0:06:53.320 --> 0:06:57.160 Apple is holding its first product unveiling of twenty two. 0:06:57.240 --> 0:06:59.520 The event Cake software is expected to be its biggest 0:06:59.560 --> 0:07:02.240 year ever in terms of new devices. The company is 0:07:02.240 --> 0:07:04.880 poised to announce its first low cost iPhone SCU with 0:07:04.960 --> 0:07:09.080 five G capabilities, a new iPad Air and updated Max 0:07:09.120 --> 0:07:12.679 with Apple made ships. Again, futures are higher this morning 0:07:12.720 --> 0:07:15.160 and straight ahead your latest local headlines, plus a check 0:07:15.200 --> 0:07:24.120 of sports. And this is Bloomberg. He's scaring six seven 0:07:24.120 --> 0:07:26.520 on Wall Street, forty degrees in Central Park. The Morris 0:07:26.520 --> 0:07:29.800 exis Gladstone branch of New Jersey trans It's still suspended. 0:07:29.960 --> 0:07:32.080 The tails coming up in traffic. First Michael bar with 0:07:32.160 --> 0:07:33.800 more on what's going on in New York and around 0:07:33.800 --> 0:07:36.240 the world. Good morning, Michael, Good morning Nathan. New York 0:07:36.280 --> 0:07:39.840 City is preparing for the possibility of a cyber attack 0:07:39.960 --> 0:07:45.160 by Russia. The city's chief Technology Officer, Matthew Fraser says 0:07:45.360 --> 0:07:48.200 it could happen. We see the rights pop up periodically, 0:07:48.640 --> 0:07:51.560 though specifically associated to this heightened sense. We've seen an 0:07:51.640 --> 0:07:55.000 uptick um, but we're not aware of any campaign that's 0:07:55.040 --> 0:07:59.320 explicitly targeting the city itself. Tech officer Frazier says New 0:07:59.360 --> 0:08:01.600 York is on the old tra high alert following US 0:08:01.640 --> 0:08:04.760 and posed sanctions against Russia for where its ongoing invasion 0:08:04.800 --> 0:08:08.080 of Ukraine. The fear is Russia will try to retaliate. 0:08:08.360 --> 0:08:12.360 The NYPDS Deputy Commissioner John Miller. Weget that we're in 0:08:12.400 --> 0:08:16.320 a heightened threat um and we have been gearing up 0:08:16.360 --> 0:08:19.160 for that heightened threat to come along from our normal 0:08:19.240 --> 0:08:22.760 high alert to ultra high alert, and that's where we 0:08:22.800 --> 0:08:26.400 are the NYPDS. Miller says it's best to be ready 0:08:26.440 --> 0:08:29.960 just in case a homegrown terrorist strikes. President Joe Biden 0:08:30.040 --> 0:08:33.240 is expected to sign an executive order on cryptocurrency this 0:08:33.320 --> 0:08:35.920 week that will mark the first step toward regulating how 0:08:36.000 --> 0:08:40.240 digital currency is traded. The move comes as administration officials 0:08:40.240 --> 0:08:43.840 have raised concern in recent weeks about Russia's use of 0:08:43.880 --> 0:08:48.120 cryptocurrency to evade the impact of crushing sanctions. Tens of 0:08:48.200 --> 0:08:50.959 thousands of customers are without power in New York and 0:08:51.080 --> 0:08:54.080 New Jersey after a line of severe storm swept through 0:08:54.120 --> 0:08:57.360 the northeast. This man and Cedar Grove, New Jersey, spent 0:08:57.400 --> 0:09:00.679 the night at a neighbor's house after a tree alongside 0:09:00.760 --> 0:09:03.520 his home cut off his power and blocked his front door. 0:09:03.960 --> 0:09:08.520 Started rain, heard then all of a sudden, it sound 0:09:08.559 --> 0:09:14.440 like train went through and the wind was how and 0:09:14.480 --> 0:09:20.600 then he says they're waiting to see whether they can 0:09:20.640 --> 0:09:24.000 safely return to their house today. Jerry's selection begins today 0:09:24.000 --> 0:09:26.200 at the trial of four men who are accused of 0:09:26.240 --> 0:09:30.400 conspiring to kidnap Michigan Governor Gretchen Whitmer. The government says 0:09:30.400 --> 0:09:33.160 the men were upset about Whitmer's SCOVID nineteen restrictions, but 0:09:33.440 --> 0:09:37.080 defense lawyers claimed the four were groomed and cajoled by 0:09:37.200 --> 0:09:41.160 federal agents and informants. The CDC raised that SCOVID nineteen 0:09:41.200 --> 0:09:44.480 travel advisory for Hong Kong by one step to level 0:09:44.520 --> 0:09:47.199 four are very high, as the city's death rate is 0:09:47.240 --> 0:09:49.959 now the highest in the world. Global News twenty four 0:09:50.000 --> 0:09:52.559 hours a day on air and on Bloomberg Quick Take, 0:09:52.600 --> 0:09:55.559 powered by more than twenty seven hundred journalists and analysts 0:09:55.600 --> 0:09:59.040 more than a hundred twenty countries. Michael bar this is Bloomberg, Nathan, 0:09:59.160 --> 0:10:05.679 Thank you, Michael, almost six cent on moll Street. Time 0:10:05.720 --> 0:10:08.520 for the Bloomberg Sports Update with John Sinshower. All right, Nathan, 0:10:08.520 --> 0:10:11.320 biggest reason the Knicks so much better last season than 0:10:11.360 --> 0:10:13.800 this one. Julius Randall was so much better last season, 0:10:13.840 --> 0:10:16.600 and last night Randall was as good as he's ever been. 0:10:16.720 --> 0:10:19.680 Career high forty six points. He made eight three pointers 0:10:19.679 --> 0:10:22.560 and the Knicks turned the table. Somebody blown leads lately. 0:10:22.640 --> 0:10:25.440 This time they made the comeback from twenty down. They 0:10:25.440 --> 0:10:28.600 wanted Sacramento one one fifth team. The Knicks had their 0:10:28.640 --> 0:10:31.559 first two game winning streaking nearly two months. San Antonio 0:10:31.679 --> 0:10:34.080 beat the Lakers, who were playing without Lebron James. Gregg 0:10:34.120 --> 0:10:37.920 Popovich ties Don Nelson's record for most coaching day. The 0:10:37.960 --> 0:10:41.480 Islanders welcomed in the NHL's best team. Colorado moved thirty 0:10:41.480 --> 0:10:44.400 games over five hundred, scored four goals and a span 0:10:44.480 --> 0:10:46.439 of less than four and a half minutes the third period, 0:10:46.480 --> 0:10:49.200 then held on beat the Islands five to four. March 0:10:49.320 --> 0:10:55.640 Madness Championship of the Southern Conference Tournament. One time, Bothwell 0:10:55.800 --> 0:11:00.640 drive all the way in his layoup is far with 0:11:00.960 --> 0:11:06.720 four point three seconds Laft David Jean Battis drives goes 0:11:06.800 --> 0:11:14.480 up three point on the way. The US call on 0:11:14.559 --> 0:11:17.760 Learfield chatt Erga Beef Ferman sixty four sixty three and 0:11:17.800 --> 0:11:20.400 over time. The Calvin Ridley story and not all that 0:11:20.520 --> 0:11:23.680 surprising considering the growth of sports betting, now legal in 0:11:23.720 --> 0:11:26.240 many states, so accessible with a touch of the phone. 0:11:26.320 --> 0:11:30.200 Ridley the Falcon star wide receiver admitted to making bets 0:11:30.280 --> 0:11:33.360 on NFL games, including bets on his team to win, 0:11:33.800 --> 0:11:36.480 although they were games he was not playing in regardless 0:11:36.760 --> 0:11:39.720 hit with a suspension of at least all of two 0:11:39.760 --> 0:11:44.880 it will cost Redley eleven billion. John Stallard bloomboo spoort Okay, John, 0:11:44.920 --> 0:11:47.840 thanks right now. SMP futures are higher up fourteen points, 0:11:47.840 --> 0:11:50.559 sound futures up eighty six dants AT futures on the 0:11:50.640 --> 0:11:52.960 rise by nine points. The ten Your treasury is down 0:11:52.960 --> 0:11:56.520 twenty one thirty seconds. The yield one point eight four 0:11:56.679 --> 0:12:00.000 per cent reaction to the market moves on the Warren Ukraine. 0:12:00.200 --> 0:12:02.720 Next with a Leisha levine of the n Y Melon. 0:12:03.480 --> 0:12:09.600 This is Bloomberg coming up to six twelve on Wall Street. 0:12:09.600 --> 0:12:11.800 Bloomberg day Break is brought to you by Audie. Don't 0:12:11.880 --> 0:12:13.920 let someone else drive off in the outie model. You've 0:12:13.920 --> 0:12:16.599 always wanted. Visit your tri state area autie dealer to 0:12:16.640 --> 0:12:18.960 get behind the wheel of yours today. Visit Autie offers 0:12:19.040 --> 0:12:25.000 dot com, markets, headlines and breaking news twenty four hours 0:12:25.000 --> 0:12:27.959 a day at Bloomberg dot Com and Bloomberg Business at 0:12:28.080 --> 0:12:37.359 and at Bloomberg Ticktape. Chris is a Bloomberg business lash, 0:12:37.760 --> 0:12:40.880 and I'm paren Moscow. We're seeing stocks in Europe trimming 0:12:41.040 --> 0:12:44.520 their advance, and so our Nasdack futures. We check the 0:12:44.559 --> 0:12:47.600 markets every fifteen minutes throughout the trading day. On Bloomberg 0:12:47.720 --> 0:12:51.480 SMP futures remain higher, up eleven points down futures up 0:12:51.520 --> 0:12:55.199 sixty five. On Nasdack futures are lower, little change now 0:12:55.240 --> 0:12:58.040 down about five. The decks in Germany is up half 0:12:58.160 --> 0:13:01.040 per set. Can your treasury down to twenty one thirty seconds? 0:13:01.040 --> 0:13:03.280 He had one four percent. They yield on the two 0:13:03.360 --> 0:13:06.599 year one point six one percent nine Extrade oil is 0:13:06.679 --> 0:13:09.040 up two point nine percent of three dollars fifty five 0:13:09.080 --> 0:13:12.320 cents and a hundred two eight cents of barrel comics. 0:13:12.360 --> 0:13:14.760 Gold is up nine tenths percent, or eighteen dollars thirty 0:13:14.800 --> 0:13:18.720 cents at an ounce. The euro one point eight nine 0:13:18.760 --> 0:13:21.079 six against the dollar, British pound one point three one 0:13:21.160 --> 0:13:24.360 one six, they nsit one fifteen point six six, and 0:13:24.480 --> 0:13:28.160 Bitcoin this morning is moving higher, up two point seven 0:13:28.200 --> 0:13:31.640 percent at thirty eight thousand, eight hundred sixty dollars. That's 0:13:31.679 --> 0:13:34.200 a Bloomberg business flash. Now here's Michael bar with more 0:13:34.280 --> 0:13:37.520 unless going on. Around the world. Michael Karen, thank you 0:13:37.640 --> 0:13:40.440 very much. Russia's top energy official threatened to cut off 0:13:40.520 --> 0:13:44.040 natural gas flows from the North Stream one pipeline. It 0:13:44.200 --> 0:13:48.000 escalates economic tensions with Europe as the war in Ukraine continues. 0:13:48.440 --> 0:13:51.480 Russia and Ukraine have said they will continue to hold 0:13:51.480 --> 0:13:54.920 talks on a potential ceasefire, although a third round of 0:13:54.960 --> 0:13:59.320 discussions produced little progress. US drivers are out paying more 0:13:59.400 --> 0:14:02.160 for gas lane than in any other time in history 0:14:02.480 --> 0:14:06.160 as demands surges and the war in Ukraine threatens global 0:14:06.240 --> 0:14:10.160 oil supplies. According to Triple A, the average pump prices 0:14:10.200 --> 0:14:13.680 in the US are now more than four dollars seventeen 0:14:13.720 --> 0:14:17.720 cents per gallant. California prices have surged to five dollars 0:14:17.800 --> 0:14:21.200 forty four cents a gallon. In the NBA, the nixt one, 0:14:21.280 --> 0:14:24.360 the Warriors lost in the NHL, the Islanders lost, the 0:14:24.360 --> 0:14:27.360 Bruins lost in ot to the King's Three to Global 0:14:27.400 --> 0:14:29.920 News twenty four hours a day on air and on 0:14:29.960 --> 0:14:33.280 Bloomberg Quick Tank, powered by more than twenty seven hundred 0:14:33.320 --> 0:14:36.240 journalists and analysts in more than a hundred twenty countries. 0:14:36.280 --> 0:14:40.040 I'm Michael Labar, this is Bloomberg. Nathan. Thanks Michael six nineteen, 0:14:40.080 --> 0:14:43.600 now on Wall Street Live from the Bloomberg Interactive Brokers studios. 0:14:43.680 --> 0:14:47.120 This is Bloomberg Daybreak and Alicia Levine is with us 0:14:47.120 --> 0:14:50.120 now head of Equities and Capital Market Advisory at B 0:14:50.280 --> 0:14:52.480 and y Melon Wealth Management, as we try to make 0:14:52.520 --> 0:14:54.760 sense of the violent market moves have been single the 0:14:54.920 --> 0:14:58.720 last few days on the latest headlines coming out of Ukraine. Alicia, 0:14:58.840 --> 0:15:00.600 good morning. Of course we're kind of off a big 0:15:00.640 --> 0:15:03.560 sell off in equities yesterday. Do you think this market 0:15:03.680 --> 0:15:08.520 hit capitulation? Good morning, Nathan and Grace to speak to 0:15:08.560 --> 0:15:12.600 you again. Look, I don't think we're at that capitulation 0:15:12.680 --> 0:15:16.600 moment just yet. Um, the fear and loathing is not 0:15:16.760 --> 0:15:19.640 quite there. The vix high as it is, really hasn't 0:15:20.120 --> 0:15:24.400 gone to a place which would really signal capitulation. And 0:15:24.440 --> 0:15:27.440 the other thing is the market just bouncing around in 0:15:27.520 --> 0:15:33.520 this kind of like this range between hundred. It's still 0:15:33.520 --> 0:15:36.960 in that range. It's really disconcerting is that range has 0:15:36.960 --> 0:15:41.560 been skewed to the downside and and the upside seems 0:15:41.600 --> 0:15:44.360 to be more limited, which suggests we have more to 0:15:44.400 --> 0:15:46.560 go on the downside. We're not there yet, and I 0:15:46.560 --> 0:15:49.280 think we're gonna more ugly days ahead of us before 0:15:49.320 --> 0:15:51.480 this is done. I don't I don't think this is 0:15:51.520 --> 0:15:54.040 fatal for the year. I just think that we're in 0:15:54.080 --> 0:15:57.240 a tough spot with all the uncertainty and the commodity 0:15:57.320 --> 0:16:00.960 price inflation. It does seem kind of weird. Ask what 0:16:01.200 --> 0:16:03.480 your outlook is for the rest of the year, given 0:16:04.320 --> 0:16:07.360 how much gyration we could see over the next few 0:16:07.440 --> 0:16:09.520 days and weeks. But I'm gonna put the question to you. 0:16:09.600 --> 0:16:12.360 Are you adjusting your outlook for the SMP for the 0:16:12.360 --> 0:16:15.960 rest of this year based on what's going on? So look, 0:16:16.080 --> 0:16:19.360 we we we are. Target is has does have a 0:16:19.360 --> 0:16:22.840 wider range. It is due to the downside. We see 0:16:22.880 --> 0:16:24.880 most of the risk really in the first half of 0:16:24.960 --> 0:16:30.400 the year. The Russian the Russian war with Ukraine added 0:16:30.480 --> 0:16:33.200 to the kind of uncertainty that we faced in an 0:16:33.240 --> 0:16:38.040 already squeamish market that was overvalued and worried about bed 0:16:38.080 --> 0:16:41.600 tightening with with some of the dynamics of inflation and 0:16:41.800 --> 0:16:44.920 fears of margin compression with US, and so this just 0:16:45.000 --> 0:16:48.160 made it worse. And it's also hard to model because 0:16:48.280 --> 0:16:50.760 it could change it any day. I think the biggest 0:16:50.840 --> 0:16:52.840 risk is really in the first half of the year, 0:16:53.240 --> 0:16:56.120 But we think ultimately, as long as the US doesn't 0:16:56.120 --> 0:17:00.400 go into recession, our base case is no recession, and 0:17:00.440 --> 0:17:03.960 therefore we see the market really stabilizing by midyear into 0:17:04.000 --> 0:17:06.440 the second half of the year. But it's a lot 0:17:06.560 --> 0:17:08.280 to get through in the next few weeks. You have 0:17:08.359 --> 0:17:10.639 to have a strong stomach. You can also pick up 0:17:10.640 --> 0:17:13.000 stocks here. You know, everything is getting thrown out with 0:17:13.040 --> 0:17:16.240 the bathwater, and so you want to be, you know, careful. 0:17:16.800 --> 0:17:19.920 But stocks that have had their multiple, their multiples come 0:17:20.000 --> 0:17:24.480 crashing down with good businesses um that have some pricing 0:17:24.520 --> 0:17:28.320 power to be pretty interesting here. So it's really tough 0:17:28.400 --> 0:17:30.080 to buy in a market like this. But this is 0:17:30.119 --> 0:17:32.960 also what we've learned that you buy when things really 0:17:33.000 --> 0:17:36.040 look terrible, and things do look pretty scary. Well, if 0:17:36.080 --> 0:17:38.679 this is turning into a stock pickers market, Alicia, what 0:17:38.760 --> 0:17:43.000 sectors are you looking at outperform right now? Look, it's tough. 0:17:43.040 --> 0:17:45.040 I mean I would I would, I would tell, I 0:17:45.080 --> 0:17:47.280 would tell most of your listeners. We I think we 0:17:47.359 --> 0:17:50.040 still have a ways to go on the downside here, 0:17:50.640 --> 0:17:53.439 So that's a tough one. But I there's several sectors, 0:17:53.520 --> 0:17:56.200 for instance, even though we're we are concerned about the 0:17:56.240 --> 0:18:01.440 low end consumer between gas prices to also the withdrawing 0:18:01.480 --> 0:18:04.280 a physical stimulus. We're worried about the low end. We 0:18:04.320 --> 0:18:07.280 think overall, if you look at the entire consumer picture, 0:18:07.680 --> 0:18:11.000 consumers in not bad shape, and we think a greater 0:18:11.040 --> 0:18:13.800 share of wallet is going to go towards travel and leisure. 0:18:14.200 --> 0:18:16.280 And in the last week or so, the travel and 0:18:16.359 --> 0:18:20.040 leisure stocks have really gotten decimated, So I mean, I 0:18:20.080 --> 0:18:23.880 think that's a place to look um. And obviously, energy 0:18:24.000 --> 0:18:27.320 we think will be a long term trend here. Hard 0:18:27.359 --> 0:18:29.199 to buy in the spice. Don't go run in and 0:18:29.200 --> 0:18:33.280 buy you know when oil is up in three weeks. 0:18:33.280 --> 0:18:37.439 But we do think that the picture around oil, the 0:18:37.480 --> 0:18:43.000 supply shortage, greater demands, will be upward pressure on oil prices, 0:18:43.119 --> 0:18:46.760 and therefore energy should do pretty well. We think some 0:18:46.800 --> 0:18:49.080 of the staple companies still look good. You know, we 0:18:49.160 --> 0:18:53.320 do see the low and consumer trading down to private label. Um, 0:18:53.400 --> 0:18:55.960 so some of those staple companies will do fairly well. 0:18:56.240 --> 0:18:58.800 And this is gonna sound very counterintuitive, but the banks 0:18:58.800 --> 0:19:03.760 have gotten decimated down mostly that you're to date, and 0:19:03.760 --> 0:19:06.280 and therefore, you know, if we're not going into a 0:19:06.320 --> 0:19:09.720 recession and defended hiking, some of the banks could be 0:19:09.800 --> 0:19:13.600 interesting here, so you know there, and of course defense 0:19:13.640 --> 0:19:16.320 defense spending in the US is probably going up eight 0:19:16.320 --> 0:19:19.960 percent in the next year in the new budget, and 0:19:20.000 --> 0:19:23.679 that also will be long term trend for for defense spending. 0:19:23.840 --> 0:19:25.560 You know, you really have to think of this moment 0:19:25.600 --> 0:19:29.639 as a regime change, higher inflation, higher defense spending, and 0:19:29.680 --> 0:19:31.600 I think in some way some of those companies that 0:19:32.000 --> 0:19:36.080 you know, our our our fathers and our grandfather's invested 0:19:36.160 --> 0:19:37.720 in will be some of the ones that will do 0:19:37.760 --> 0:19:40.239 well coming out of this. Great to have you on 0:19:40.280 --> 0:19:43.840 this morning, Alicia, Thanks for this, really appreciate it. Alicia Levine, 0:19:43.880 --> 0:19:46.639 head of Equities and Capital Market Advisory at b n 0:19:46.800 --> 0:19:50.440 y Melon Wealth Management. Looking ahead to the market, open 0:19:50.480 --> 0:19:53.320 futures are looking a bit higher at the moment, SMP 0:19:53.480 --> 0:19:56.480 futures of fourteen, down futures of ninety two points, and 0:19:56.520 --> 0:19:59.960 ASTAT futures are just a touch higher up eight point. 0:20:00.640 --> 0:20:08.680 You're listening to Bloomberg Daybreak, and Bloomberg Daybreak is brought 0:20:08.680 --> 0:20:11.360 to you by the Jewish Communal Fund JCFS. Donor Advised 0:20:11.359 --> 0:20:14.280 Fund is the smart choice to manager, philanthropy, maker, giving, 0:20:14.400 --> 0:20:17.320 organized and tax efficient. Visit j c F and y 0:20:17.840 --> 0:20:25.800 dot Org broadcasting live from the Bloomberg Interactive Broker Studio 0:20:25.920 --> 0:20:29.080 in New York. Bloomberg E Living Freedland to Washington, d C, 0:20:29.280 --> 0:20:33.400 Bloomberg to Boston, Bloomberg one O six one to San 0:20:33.440 --> 0:20:37.000 Francisco Bloomberg and M sixteen to the country Sirius XM 0:20:37.040 --> 0:20:39.320 to A one nine team, and around the globe the 0:20:39.320 --> 0:20:43.200 Bloomberg Business app and Bloomberg Radio dot com. This is 0:20:43.240 --> 0:20:51.520 Bloomberg Daybreak six thirty on Wall Street. Good morning of 0:20:51.640 --> 0:20:54.720 Nathan Hagar and I'm Karen Moscow. We're just about three 0:20:54.800 --> 0:20:57.280 hours away from the open of US trading. It's time 0:20:57.280 --> 0:20:59.239 for the five things you need to notice. Start your 0:20:59.320 --> 0:21:03.919 day Rozzy you by Interactive Brokers. Interactive Brokers charges Martin 0:21:03.960 --> 0:21:06.480 loan rates from zero point seven five percent to one 0:21:06.480 --> 0:21:09.320 point five eight percent rates subject to change. Learn more 0:21:09.359 --> 0:21:12.600 at ibk R dot com slash compare. We begin with 0:21:12.640 --> 0:21:15.080 the war in Ukraine. Moscow is threatening to cut off 0:21:15.160 --> 0:21:18.200 natural gas supplies to Europe. That's after a third round 0:21:18.200 --> 0:21:21.320 of toss between Russia and Ukraine failed to make progress. 0:21:21.440 --> 0:21:24.719 Bloomberg's at Baxter has the latest. Russia says it has 0:21:24.720 --> 0:21:27.360 heard nothing from Ukraine that would make a change direction, 0:21:27.680 --> 0:21:31.560 and Ukraine's President Volatimer Zolensky, in an exclusive ABC interview, 0:21:31.600 --> 0:21:35.240 says Russia just wants to make threats and issue ultimatums 0:21:35.560 --> 0:21:38.480 and then talking about Vladimir Putin through a translator, not 0:21:38.640 --> 0:21:43.280 the dialog, instead of living in the informational bubble without oxygen. 0:21:43.400 --> 0:21:45.800 I think that's why he is. And U S Secretary 0:21:45.840 --> 0:21:48.359 of State Anthony Blincoln has again rejected the plea for 0:21:48.400 --> 0:21:50.480 a no fly zoh and saying it could lead to 0:21:50.800 --> 0:21:54.840 widening the war in San Francisco. I'm at Baxter Bloomberg Daybreak, 0:21:54.880 --> 0:21:57.040 all right, and thanks the developments at a Capitol Hill 0:21:57.080 --> 0:21:59.560 as well. Congress has announced the outline of a bill 0:21:59.600 --> 0:22:01.879 to our imports of Russian oil to the US. The 0:22:01.920 --> 0:22:04.280 House could vote on the proposal as soon as tomorrow. 0:22:04.800 --> 0:22:09.080 On Wall Street, US futures are higher after yesterday's sell off. 0:22:09.119 --> 0:22:11.439 We get the latest live with the Bloomberg's John Tucker, 0:22:11.600 --> 0:22:14.600 John Karen Sentiment hands the improved on the heels of 0:22:14.640 --> 0:22:18.720 our report that the European Union is considering joint bond 0:22:18.760 --> 0:22:22.200 sales to help counter the fallout from Russia's invasion of Ukraine. 0:22:22.600 --> 0:22:26.359 The possibility for the Central Bank stimulus lifting sentiment. In 0:22:26.440 --> 0:22:29.560 yesterday's session, stocks were pummeled, with an AzaC tumbling over 0:22:29.600 --> 0:22:33.080 three and a half percent. Meantime, the London Metal Exchange 0:22:33.160 --> 0:22:36.680