1 00:00:02,759 --> 00:00:06,080 Speaker 1: Live from the Bloomberg Interactor Burgers Studios. This is Bloomberg 2 00:00:06,160 --> 00:00:10,719 Speaker 1: day Break for Friday, January. Coming up this hour. Tech 3 00:00:10,760 --> 00:00:14,280 Speaker 1: weakness again this morning, following yesterday's late day sell off. 4 00:00:14,440 --> 00:00:19,119 Speaker 1: Netflix shares plunge on subscriber disappointment, Bitcoin drops below thirty 5 00:00:19,200 --> 00:00:22,760 Speaker 1: nine thousand dollars, and JP Morgan Chase boost Jamie Diamonds 6 00:00:22,760 --> 00:00:26,119 Speaker 1: pay Following a record year. New York Mayor Adams calls 7 00:00:26,160 --> 00:00:29,480 Speaker 1: for better coordination between federal and local authorities and fighting crime. 8 00:00:29,560 --> 00:00:32,879 Speaker 1: Plus high stakes meeting between the US and Russia in Geneva. 9 00:00:33,080 --> 00:00:36,360 Speaker 1: I'm Michael Bloger. More ahead, I'm John Stash Aaron Sports. 10 00:00:36,360 --> 00:00:39,519 Speaker 1: Another home loss for the Knicks beaten soundly by the Pelican. 11 00:00:39,560 --> 00:00:44,280 Speaker 1: Is the third round underway at the Australian Opening. That's 12 00:00:44,280 --> 00:00:48,600 Speaker 1: all straight ahead on Bloomberg day Break on Bloomberg eleven, TREEO, 13 00:00:48,720 --> 00:00:53,120 Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh 14 00:00:53,159 --> 00:00:57,640 Speaker 1: six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x 15 00:00:57,840 --> 00:01:01,200 Speaker 1: M one nineteen and around the world on Bloomberg Radio 16 00:01:01,280 --> 00:01:08,400 Speaker 1: dot com and via the Bloomberg Business Set. And good Morning. 17 00:01:08,440 --> 00:01:11,480 Speaker 1: I'm Karen Moscow. I'm Nathan Hagar Bloomberg Daybreak brought to 18 00:01:11,520 --> 00:01:15,200 Speaker 1: you by SEI Crises emphasized character and partnership, one mission, 19 00:01:15,200 --> 00:01:18,080 Speaker 1: one community, Sei go to se I C dot Com 20 00:01:18,120 --> 00:01:21,279 Speaker 1: slash I M s N SMP Future is little changed 21 00:01:21,280 --> 00:01:23,200 Speaker 1: on this Friday morning at is five oh one on 22 00:01:23,240 --> 00:01:25,880 Speaker 1: Wall Street. We checked the markets every fifteen minutes throughout 23 00:01:25,920 --> 00:01:29,360 Speaker 1: the trading day. On Bloomberg SMP futures again little change down, 24 00:01:29,360 --> 00:01:33,000 Speaker 1: Future is up thirty six and nasday futures down. Sixties 25 00:01:33,080 --> 00:01:35,959 Speaker 1: seven ten year Treasury up four thirty seconds. YELD one 26 00:01:36,000 --> 00:01:38,520 Speaker 1: point seven eight percent yield on the two year one 27 00:01:39,000 --> 00:01:41,479 Speaker 1: one percent, Nathan Well Karen. The late day sell off 28 00:01:41,520 --> 00:01:44,720 Speaker 1: we saw on Wall Street yesterday spilled over to Asia overnight. 29 00:01:44,840 --> 00:01:47,840 Speaker 1: Let's get the recap from Bloomberg's Juliette Sally in Singapore. 30 00:01:47,880 --> 00:01:50,400 Speaker 1: Good morning, Juliette, Good morning, Nathan and carn. The m 31 00:01:50,440 --> 00:01:52,520 Speaker 1: s c I Asia Pacific Index fell close to two 32 00:01:52,520 --> 00:01:54,800 Speaker 1: percent over the course of the week, notching up its 33 00:01:54,840 --> 00:01:58,320 Speaker 1: worst week since November. During Friday session, the tech sel 34 00:01:58,360 --> 00:02:01,240 Speaker 1: off from Wall Street flowed through into Asia, with Japan's 35 00:02:01,280 --> 00:02:05,760 Speaker 1: Topics index flirting with correction. TSMC and Samsung shares were dumped, 36 00:02:05,800 --> 00:02:08,320 Speaker 1: weighing on the taie X in Cosby, along with Ali 37 00:02:08,360 --> 00:02:11,320 Speaker 1: Baba in Hong Kong. Alibaba shares also hurt by a 38 00:02:11,320 --> 00:02:15,560 Speaker 1: Financial Times report saying China State broadcaster has implicated Jack 39 00:02:15,600 --> 00:02:19,600 Speaker 1: Mars and Group in a corruption scandal. Australian Stokes plunged 40 00:02:19,639 --> 00:02:22,000 Speaker 1: to the lowest in seven months, while yields on the 41 00:02:22,040 --> 00:02:24,840 Speaker 1: tenure fell as much as nine basis points in Singapore. 42 00:02:24,880 --> 00:02:28,240 Speaker 1: Juliette Sally Bloomberg Daybreak, Juliette, thank you. We are seeing 43 00:02:28,240 --> 00:02:31,720 Speaker 1: weakness in NASDAK futures once again this morning, after yesterday's 44 00:02:31,720 --> 00:02:34,520 Speaker 1: plunge sent the Tech Heavy index into a correction. We 45 00:02:34,560 --> 00:02:37,079 Speaker 1: get the latest live with the Bloomberg's John Tucker, John 46 00:02:37,080 --> 00:02:39,680 Speaker 1: gole Boarding and Karen After yesterday is one point three 47 00:02:39,680 --> 00:02:42,640 Speaker 1: percent slide for the nastac TO Tech Heavy index is 48 00:02:42,680 --> 00:02:46,000 Speaker 1: now down close to twelve percent since it's November high. 49 00:02:46,320 --> 00:02:49,480 Speaker 1: Adding to the correction that's started this week, investors have 50 00:02:49,520 --> 00:02:52,440 Speaker 1: been fretting over higher interest rates from the Fed, and 51 00:02:52,480 --> 00:02:56,519 Speaker 1: now add another concern, company earnings have been shaky. Sarah 52 00:02:56,600 --> 00:02:59,440 Speaker 1: Hunt of Alpine Woods Capital Investors says this is a 53 00:02:59,480 --> 00:03:03,600 Speaker 1: time when stocks need to stand on fundamentals. Valuations are finally, 54 00:03:03,639 --> 00:03:05,720 Speaker 1: after quite a long period of time, going to start 55 00:03:05,720 --> 00:03:08,120 Speaker 1: to matter, and cash generation and balance sheets are going 56 00:03:08,160 --> 00:03:10,480 Speaker 1: to be very important as we navigate what is no 57 00:03:10,639 --> 00:03:13,640 Speaker 1: longer a very easy FED policy going forward. The earnings 58 00:03:13,680 --> 00:03:16,880 Speaker 1: reporting season so far has been uneven, highlighting the risk 59 00:03:16,960 --> 00:03:19,600 Speaker 1: that it may fail to enliven animal spirits in the 60 00:03:19,639 --> 00:03:22,400 Speaker 1: stock markets, and the Master's face a one two punch 61 00:03:22,480 --> 00:03:25,399 Speaker 1: of FED rate hikes and the possible reduction of its 62 00:03:25,600 --> 00:03:28,720 Speaker 1: eight point eight trillion dollar balance sheet in New York 63 00:03:28,720 --> 00:03:31,919 Speaker 1: on John Tucker, Bluebirk Radio and John One market veteran 64 00:03:31,960 --> 00:03:34,960 Speaker 1: says this selling is not over. Jeremy Grantham has been 65 00:03:34,960 --> 00:03:37,720 Speaker 1: calling market bubbles for decades now. The co founder of 66 00:03:37,760 --> 00:03:41,000 Speaker 1: Boston based GMO says the historic stock collapse he predicted 67 00:03:41,040 --> 00:03:44,560 Speaker 1: a year ago is underway. Grantham says even intervention by 68 00:03:44,600 --> 00:03:47,840 Speaker 1: the FED can't prevent an eventual plunge of almost fifty 69 00:03:48,760 --> 00:03:53,680 Speaker 1: this time. Trend is at most and I would expect 70 00:03:54,160 --> 00:03:56,920 Speaker 1: even if the Federal Reserve tries to do the same, 71 00:03:57,600 --> 00:04:01,320 Speaker 1: it will be hard to prevent the market from declining 72 00:04:01,360 --> 00:04:03,920 Speaker 1: to that level. Jeremy Grantham made those comments at a 73 00:04:03,920 --> 00:04:07,400 Speaker 1: Bloomberg Front Row interview Well Nathan, the prospect of higher 74 00:04:07,440 --> 00:04:10,120 Speaker 1: interest rates has been putting stocks under pressure, and now 75 00:04:10,120 --> 00:04:13,080 Speaker 1: the Fed is preparing for its next policy meeting next week. 76 00:04:13,360 --> 00:04:16,039 Speaker 1: Economy is surveyed by Bloomberg say the Central Bank will 77 00:04:16,160 --> 00:04:18,440 Speaker 1: use it to signal a March rate hike than a 78 00:04:18,440 --> 00:04:21,680 Speaker 1: balance sheet unwind soon after. Most of the forty five 79 00:04:21,680 --> 00:04:24,640 Speaker 1: economists polled said the Fed will telegraph at twenty five 80 00:04:24,680 --> 00:04:27,360 Speaker 1: basis point increase, though two of them are looking out 81 00:04:27,400 --> 00:04:30,840 Speaker 1: for a surprise fifty basis point hike. Let's turn to 82 00:04:30,880 --> 00:04:34,440 Speaker 1: corporate news Karen and a big earning surprise from Netflix. 83 00:04:34,480 --> 00:04:38,520 Speaker 1: The stock is down twenty two in early trading after 84 00:04:38,560 --> 00:04:40,760 Speaker 1: the streaming service that it expects to add just two 85 00:04:40,760 --> 00:04:44,080 Speaker 1: and a half million subscribers this quarter. Bloomberg's Charlie Pellet 86 00:04:44,160 --> 00:04:47,080 Speaker 1: reports that is well short of Wall Street estimates. It 87 00:04:47,240 --> 00:04:50,080 Speaker 1: suggests the streaming giant is entering a new phase of 88 00:04:50,200 --> 00:04:54,440 Speaker 1: slow growth. In twenty two, Netflix signed up eight point 89 00:04:54,480 --> 00:04:58,560 Speaker 1: two million customers in the fourth quarter of one, beating 90 00:04:58,600 --> 00:05:01,679 Speaker 1: Wall Street estimates, but lee into the slowest annual growth 91 00:05:01,720 --> 00:05:04,920 Speaker 1: since twenty fifteen. The company says sign ups have not 92 00:05:05,160 --> 00:05:08,320 Speaker 1: re accelerated at the pre COVID levels, blaming a tough 93 00:05:08,320 --> 00:05:12,279 Speaker 1: economy as well as lingering fallout from the pandemic. In addition, 94 00:05:12,320 --> 00:05:15,160 Speaker 1: Netflix says it's biggest shows of the current quarter don't 95 00:05:15,200 --> 00:05:20,359 Speaker 1: come out until March. In New York, Charlie Pellet Bloomberg Daybreak, Charlie, 96 00:05:20,360 --> 00:05:23,520 Speaker 1: thank you. While another stock, Darling during the lockdown era, 97 00:05:23,720 --> 00:05:26,680 Speaker 1: is also taking a hit. Pelloton lost almost a quarter 98 00:05:26,720 --> 00:05:30,000 Speaker 1: of its value yesterday after a CNBC report said that 99 00:05:30,040 --> 00:05:33,800 Speaker 1: the company is temporarily halting production of its bikes and treadmills. 100 00:05:34,160 --> 00:05:36,320 Speaker 1: Stock hit an all time high last January at a 101 00:05:36,360 --> 00:05:39,359 Speaker 1: hundred sixty six dollars a share is trading around twenty 102 00:05:39,480 --> 00:05:43,240 Speaker 1: six dollars in pre market and Karen. Bitcoin's moving lower 103 00:05:43,279 --> 00:05:45,080 Speaker 1: as well this morning. In fact, it's trading at its 104 00:05:45,080 --> 00:05:47,600 Speaker 1: lowest level in more than five months. Bitcoin hit a 105 00:05:47,680 --> 00:05:50,880 Speaker 1: high of almost sixty nine thou dollars in November. This morning, 106 00:05:50,880 --> 00:05:54,440 Speaker 1: it's around thirty nine thousand on Wall Street. Nathan JP 107 00:05:54,520 --> 00:05:57,360 Speaker 1: Morgan Chase is coming off its most profitable year on record. 108 00:05:57,400 --> 00:06:00,400 Speaker 1: As a result, it's rewarding CEO Jamie Amen and we 109 00:06:00,400 --> 00:06:03,839 Speaker 1: get the latest live from Bloomberg's Reneed, A young good Morning, Rena, 110 00:06:03,880 --> 00:06:07,280 Speaker 1: Good Morning Care, and regulatory filings show that Jamie Diamond 111 00:06:07,320 --> 00:06:10,039 Speaker 1: got a ten percent pay raise to thirty four point 112 00:06:10,080 --> 00:06:13,400 Speaker 1: five million dollars for his work last year. JP Morgan 113 00:06:13,480 --> 00:06:17,159 Speaker 1: earned forty eight point three billion in one Now. The 114 00:06:17,200 --> 00:06:20,600 Speaker 1: move is the latest time that, after compensation pressures emerged 115 00:06:20,680 --> 00:06:23,279 Speaker 1: last year from the junior ranks up through the banking 116 00:06:23,320 --> 00:06:26,799 Speaker 1: and trading hierarchy, banks are now paying their most senior 117 00:06:26,880 --> 00:06:30,080 Speaker 1: leaders more as well. Live in New York, I'm rened 118 00:06:30,120 --> 00:06:33,040 Speaker 1: a Young Bloomberg, Daybreak and Reneda. Jamie Diamonds counterpart of 119 00:06:33,040 --> 00:06:35,520 Speaker 1: Bank of America, says his bank expects growth and loan 120 00:06:35,560 --> 00:06:38,760 Speaker 1: balances in the single digits this year. Brian moynihan says 121 00:06:38,800 --> 00:06:41,120 Speaker 1: it depends on the trajectory of the U S economy. 122 00:06:41,360 --> 00:06:43,560 Speaker 1: Well rates go up, yes, four times this year is 123 00:06:43,600 --> 00:06:46,240 Speaker 1: a prediction. The reality is does that help our earnings? Yes? 124 00:06:46,400 --> 00:06:48,840 Speaker 1: But the real reality is is that's to bring the economy, 125 00:06:49,240 --> 00:06:51,320 Speaker 1: you know, to take the inflation out of the system. 126 00:06:51,440 --> 00:06:54,120 Speaker 1: And if they get it right, because the economy is 127 00:06:54,160 --> 00:06:57,320 Speaker 1: growing very fast and inflation is growing very fast, as 128 00:06:57,360 --> 00:06:59,920 Speaker 1: that slows down, we should get back to normal economy. 129 00:07:00,080 --> 00:07:02,760 Speaker 1: Bank of America CEO Brian moynihan made the comments in 130 00:07:02,760 --> 00:07:05,760 Speaker 1: an interview with Bloomberg's David west End. Right now, SMP 131 00:07:05,920 --> 00:07:09,159 Speaker 1: futures are down four points. Staff futures are up thirty three. 132 00:07:09,560 --> 00:07:12,800 Speaker 1: NASAC futures down fifty seven points. The tenure treasury is 133 00:07:12,880 --> 00:07:16,560 Speaker 1: up six thirty seconds, the yield one point seven. Straight ahead, 134 00:07:16,560 --> 00:07:18,920 Speaker 1: your latest local headlines and the check of sports. This 135 00:07:19,040 --> 00:07:24,760 Speaker 1: is Bloomberg. The South five oh seven on Wall Street. 136 00:07:24,880 --> 00:07:27,760 Speaker 1: Very cold this morning, just fifteen degrees in Central Park. 137 00:07:27,760 --> 00:07:30,680 Speaker 1: We've got an accident investigation already southbound Root one by 138 00:07:30,760 --> 00:07:33,600 Speaker 1: Route eighteen and Edison. Details coming up in traffic. First. 139 00:07:33,880 --> 00:07:35,720 Speaker 1: Michael barrs here with more on what's going on in 140 00:07:35,760 --> 00:07:38,320 Speaker 1: New York and around the world. Good morning, Michael, Good 141 00:07:38,320 --> 00:07:40,960 Speaker 1: morning Nathan. New York City Mayor Eric Adams called for 142 00:07:41,040 --> 00:07:44,960 Speaker 1: better coordination between federal and local authorities to fight urban crime. 143 00:07:45,360 --> 00:07:48,720 Speaker 1: Mayor Adams has phase high proth lyle violent crimes in 144 00:07:48,800 --> 00:07:51,600 Speaker 1: New York during his first week's in office. Adam says 145 00:07:51,680 --> 00:07:55,560 Speaker 1: law enforcement agencies should coordinate against gun violence the way 146 00:07:55,560 --> 00:07:59,200 Speaker 1: they did against terrorism after the September eleventh attacks. The 147 00:07:59,400 --> 00:08:02,320 Speaker 1: same quote nation that stopped planes from flying in our 148 00:08:02,360 --> 00:08:06,000 Speaker 1: builders must be used to stop bullets from cobbon highways 149 00:08:06,040 --> 00:08:09,160 Speaker 1: of depth in our country, particularly in black and brown 150 00:08:09,360 --> 00:08:12,800 Speaker 1: and poorer communities there. Adams spoke at the National Conference 151 00:08:12,800 --> 00:08:17,040 Speaker 1: of Mayors in Washington yesterday. Secretary of State Anthony Lincoln 152 00:08:17,040 --> 00:08:21,440 Speaker 1: will meet Russia's foreign minister in Geneva today. On Ukraine, yesterday, 153 00:08:21,560 --> 00:08:25,000 Speaker 1: President Joe Biden said Russia will pay a heavy prize 154 00:08:25,000 --> 00:08:28,440 Speaker 1: of any of its forces move across the border into Ukraine. 155 00:08:28,600 --> 00:08:33,079 Speaker 1: We met with severe and coordinated economic response that I've 156 00:08:33,120 --> 00:08:36,080 Speaker 1: discussed in detail with our allies, as well as laid 157 00:08:36,080 --> 00:08:40,720 Speaker 1: out very clearly for President Putin. President Biden earlier suggested 158 00:08:40,760 --> 00:08:44,240 Speaker 1: Western allies might struggle to react to a small scale attack. 159 00:08:44,679 --> 00:08:47,199 Speaker 1: The largest anti abortion rally in the US will take 160 00:08:47,200 --> 00:08:50,319 Speaker 1: place today in Washington. The March for Life begins as 161 00:08:50,360 --> 00:08:53,079 Speaker 1: the Supreme Court appears lankly in the coming months to 162 00:08:53,240 --> 00:08:57,760 Speaker 1: rule on states imposing tighter restrictions on abortion. The Court 163 00:08:57,840 --> 00:09:00,920 Speaker 1: is considering a Mississippi case and could returned the landmark 164 00:09:01,240 --> 00:09:04,679 Speaker 1: Roe v. Wade ruling. A jury of eighteen people who 165 00:09:04,679 --> 00:09:07,960 Speaker 1: appeared mostly white, was picked for the federal trial of 166 00:09:08,040 --> 00:09:12,560 Speaker 1: three Minneapolis police officers charged in George Floyd's killing. The 167 00:09:12,679 --> 00:09:17,360 Speaker 1: judge told potential jurors twelve and six alternates, the case 168 00:09:17,440 --> 00:09:20,480 Speaker 1: has absolutely nothing to do with race. The court declined 169 00:09:20,520 --> 00:09:24,800 Speaker 1: to provide demographic information. Michael Lee a Day, better known 170 00:09:24,840 --> 00:09:32,760 Speaker 1: as meat Loaf, has died. The singer was known for 171 00:09:32,800 --> 00:09:35,000 Speaker 1: her hits including bat Out of Hell and This One 172 00:09:35,080 --> 00:09:38,480 Speaker 1: Paradise by the Dashboard Light. Meat Loaf was seventy four 173 00:09:38,840 --> 00:09:41,240 Speaker 1: Global news twenty four hours a day on air and 174 00:09:41,400 --> 00:09:44,640 Speaker 1: on Bloomberg Quick Take, powered by more than twenty seven 175 00:09:44,679 --> 00:09:47,400 Speaker 1: hundred journalists and analysts more than a hundred twenty countries. 176 00:09:47,520 --> 00:09:50,760 Speaker 1: I'm Michael bar This is Bloomberg, Nathan, So long meat Loaf. 177 00:09:50,800 --> 00:09:57,520 Speaker 1: Thanks Michael five O nine on Wall Street. Time for 178 00:09:57,520 --> 00:10:00,480 Speaker 1: the Bloomberg Sports Update. Now, Good morning, John stash out morning. 179 00:10:00,520 --> 00:10:02,720 Speaker 1: They're just a nightmare of a week. But the Knicks, 180 00:10:02,760 --> 00:10:04,800 Speaker 1: they had won five straight home games, were at the 181 00:10:04,880 --> 00:10:08,360 Speaker 1: Garden for three games in four days, all against beatable teams. 182 00:10:08,400 --> 00:10:11,000 Speaker 1: They lost all three. New Orleans led all the way, 183 00:10:11,080 --> 00:10:13,640 Speaker 1: pull the way third quarter, outscore the next thirty five 184 00:10:13,800 --> 00:10:16,360 Speaker 1: to fifteen. The final a little more respectable, but a 185 00:10:16,520 --> 00:10:19,240 Speaker 1: one oh two to ninety one lost. The Knicks coach 186 00:10:19,280 --> 00:10:24,800 Speaker 1: is Don Thibodeaux. We played hard, but we didn't play, 187 00:10:25,080 --> 00:10:27,280 Speaker 1: you know, with the toughness that we needed to in 188 00:10:27,400 --> 00:10:32,760 Speaker 1: terms of being able to fight through things. Show they 189 00:10:33,000 --> 00:10:35,520 Speaker 1: always say to being mentally tough when you face it 190 00:10:35,679 --> 00:10:39,440 Speaker 1: VERSI is not going our way. Just keep battling. You know, 191 00:10:39,880 --> 00:10:41,880 Speaker 1: your hustle can get you back into the game and 192 00:10:41,920 --> 00:10:45,319 Speaker 1: oftentimes that's what changes that very currens Wan Mitchell Robinson 193 00:10:45,400 --> 00:10:47,360 Speaker 1: was the next leading score. He and r. J. Barrett 194 00:10:47,400 --> 00:10:49,439 Speaker 1: both in the seventeen points. Clearly a big reason the 195 00:10:49,480 --> 00:10:51,319 Speaker 1: Knicks not where they were last year. The play of 196 00:10:51,480 --> 00:10:54,400 Speaker 1: Julius Randall. Last night, Randall store only four points at 197 00:10:54,480 --> 00:10:57,720 Speaker 1: one for nine. Warriors lost over time to Indiana. Another 198 00:10:57,720 --> 00:11:00,559 Speaker 1: win for league leading Phoenix in Dallas. The Sons are 199 00:11:00,640 --> 00:11:03,800 Speaker 1: thirty five and nine nets. In San Antonio. Tonight, Rangers 200 00:11:03,840 --> 00:11:07,600 Speaker 1: visit Carolina. Top two teams in the Metropolitan Division. Australian 201 00:11:07,600 --> 00:11:10,440 Speaker 1: Open Rafteryelmdal just now starting his third round match. American 202 00:11:10,559 --> 00:11:13,480 Speaker 1: Riley Opelka lost four sets to the Canadian Dennis Shop 203 00:11:13,480 --> 00:11:16,440 Speaker 1: of all of Matteo Barrettini came from two sets down 204 00:11:16,440 --> 00:11:18,920 Speaker 1: to win. Naomi Osaka is right now in the third 205 00:11:18,960 --> 00:11:21,520 Speaker 1: set of her match. Yankees will not be making any 206 00:11:21,520 --> 00:11:23,800 Speaker 1: trips to Montreal. That's the other Bay Rays who always 207 00:11:23,800 --> 00:11:26,640 Speaker 1: struggle with the track. Fans made a proposal to play 208 00:11:26,679 --> 00:11:29,400 Speaker 1: their half their home games north of the border. MLB 209 00:11:29,520 --> 00:11:33,640 Speaker 1: rejected the idea. The raised lease and Tampa runs through seven. 210 00:11:33,679 --> 00:11:35,920 Speaker 1: They could be on the move after that. John Stash 211 00:11:35,920 --> 00:11:39,000 Speaker 1: Atward Bloomberg Sports Nathan Okay, John, thanks right now. S 212 00:11:39,040 --> 00:11:41,800 Speaker 1: and P futures are down five points. Staff futures are 213 00:11:41,920 --> 00:11:45,280 Speaker 1: higher right now modestly, Sell up twenty five points. Nastack 214 00:11:45,360 --> 00:11:49,439 Speaker 1: futures still on the decline after heading into correction. Territory down. 215 00:11:49,520 --> 00:11:52,360 Speaker 1: Nastack futures are lower by almost fifty eight points. The 216 00:11:52,400 --> 00:11:55,480 Speaker 1: tenure treasury is up six thirty seconds. The yield one 217 00:11:55,520 --> 00:11:59,120 Speaker 1: point seven eight percent. Patrick Palfrey of Credit Suite joins 218 00:11:59,200 --> 00:12:06,920 Speaker 1: us next. The outlook for markets this is Bloomberg Bloomberg 219 00:12:07,000 --> 00:12:09,199 Speaker 1: eleven three oh weather sunny but cold today, HIGs only 220 00:12:09,200 --> 00:12:12,120 Speaker 1: in the low twenties, upper twenties. Tomorrow under partly mostly 221 00:12:12,160 --> 00:12:15,680 Speaker 1: Sunday skies, more clouds moving Sunday highs in the low thirties. 222 00:12:15,800 --> 00:12:24,600 Speaker 1: Right now fifteen degrees. Markets headlines and breaking news twenty 223 00:12:24,600 --> 00:12:27,439 Speaker 1: four hours a day at Bloomberg dot com. The Bloomberg 224 00:12:27,480 --> 00:12:37,760 Speaker 1: Business Atland at Bloomberg Quick tape is a Bloomberg business flash, 225 00:12:38,240 --> 00:12:40,959 Speaker 1: and I'm fair at Moscow. US Dock Index futures are 226 00:12:41,080 --> 00:12:44,280 Speaker 1: mixed this morning. European shares are falling and we checked 227 00:12:44,320 --> 00:12:46,800 Speaker 1: the markets every fifteen minutes throughout the trading day on 228 00:12:46,840 --> 00:12:49,560 Speaker 1: Bloomberg U S and P future is it'll change this morning. 229 00:12:49,559 --> 00:12:53,559 Speaker 1: Down futures up fifty one, nasdack features down thirty eight. 230 00:12:53,800 --> 00:12:56,560 Speaker 1: The decks in Germanys down one point four percent, the 231 00:12:56,559 --> 00:12:58,560 Speaker 1: ten year treasury up four thirty seconds. You had one 232 00:12:59,120 --> 00:13:02,080 Speaker 1: eight percent yield on the two year one point two percent. 233 00:13:02,440 --> 00:13:05,080 Speaker 1: Nimex scrude oil is down one percent on a dollar 234 00:13:05,120 --> 00:13:07,839 Speaker 1: fifty five at eighty four dollars a barrel. Comex school 235 00:13:07,960 --> 00:13:09,760 Speaker 1: is down four tenth per cent or eight dollars at 236 00:13:09,760 --> 00:13:12,640 Speaker 1: eighteen thirty six ninety an ounce. The Euro one point 237 00:13:12,640 --> 00:13:14,800 Speaker 1: one three four one against the dollar, British bound one 238 00:13:14,800 --> 00:13:17,160 Speaker 1: point three five six nine. The yuns at one thirteen 239 00:13:17,200 --> 00:13:20,840 Speaker 1: point nine three Bitcoin this morning also lower at thirty 240 00:13:20,880 --> 00:13:23,600 Speaker 1: eight thousand, nine hundred dollars. That's a Bloomberg business flash. 241 00:13:23,679 --> 00:13:25,800 Speaker 1: Now here's muchel Barr with Moore on what's going on 242 00:13:25,840 --> 00:13:29,240 Speaker 1: around the world. Muckle, good morning, Good morning, Karen Rock. 243 00:13:29,320 --> 00:13:33,520 Speaker 1: Superstar meat Loaf has died. He's been known for such 244 00:13:33,600 --> 00:13:36,720 Speaker 1: hits as Bad Out of l and Paradise by the 245 00:13:36,800 --> 00:13:40,960 Speaker 1: Dashboard Light. Family. Statement provided by his longtime agent says 246 00:13:41,000 --> 00:13:44,120 Speaker 1: the singer born Marvin Lee a Day died last night. 247 00:13:44,600 --> 00:13:47,120 Speaker 1: Meat Loaf was seventy four. The US plans of the 248 00:13:47,160 --> 00:13:50,520 Speaker 1: raise the federal employee minimum wage to fifteen dollars an hour. 249 00:13:50,840 --> 00:13:53,680 Speaker 1: That's according to a report from Axios. In the NBA, 250 00:13:53,800 --> 00:13:56,920 Speaker 1: the Nixon Warriors lost in the NHL. The Bruins beat 251 00:13:56,960 --> 00:13:59,920 Speaker 1: the Capital's for three Global News twenty four hours of 252 00:14:00,200 --> 00:14:02,360 Speaker 1: on a or end on Bloomberg Quick Today Power by 253 00:14:02,360 --> 00:14:04,960 Speaker 1: more than twenty seven hundred journalists and analysts more than 254 00:14:04,960 --> 00:14:08,640 Speaker 1: a d twenty countries. Michael Barr and this is Bloomberg. 255 00:14:08,679 --> 00:14:11,559 Speaker 1: Nathan alright, Michael, Thanks, It's five nineteen on Wall Street 256 00:14:11,600 --> 00:14:15,160 Speaker 1: line from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. 257 00:14:15,200 --> 00:14:18,160 Speaker 1: Want to turn right back to this market action this morning. 258 00:14:18,200 --> 00:14:20,840 Speaker 1: Patrick Palfrey is with US senior equity strategist and co 259 00:14:20,960 --> 00:14:24,800 Speaker 1: head of Quantitative Research over at Credit Sweez Patrick. It's 260 00:14:24,880 --> 00:14:27,120 Speaker 1: great to have you back with us on Bloomberg Daybreak 261 00:14:27,120 --> 00:14:31,200 Speaker 1: because we're watching sort of a stabilization now in futures contracts, 262 00:14:31,200 --> 00:14:34,720 Speaker 1: though the NASDAC is still moving lower after the UH 263 00:14:34,840 --> 00:14:38,280 Speaker 1: move into a correction. Now for the Tech Heavy index, 264 00:14:38,760 --> 00:14:41,120 Speaker 1: where is this going from here? Does this sell off 265 00:14:41,160 --> 00:14:44,640 Speaker 1: have further to go? Well, thank you for having me. 266 00:14:45,160 --> 00:14:47,920 Speaker 1: And in terms of what we're seeing for the NAZAC, 267 00:14:48,000 --> 00:14:49,760 Speaker 1: I think we're going to continue to see a little 268 00:14:49,760 --> 00:14:53,440 Speaker 1: bit of pressure for technology stocks and for high pe stocks, 269 00:14:53,440 --> 00:14:56,520 Speaker 1: and those stocks are primarily found in the NASTACK. But 270 00:14:56,600 --> 00:14:58,960 Speaker 1: I think there's plenty areas of the market where the 271 00:14:58,960 --> 00:15:05,440 Speaker 1: backdrop remains quite healthy, and there I'm talking about cyclical groups, energy, materials, 272 00:15:05,480 --> 00:15:09,320 Speaker 1: industrials and financials areas where you have valuation support in 273 00:15:09,320 --> 00:15:12,320 Speaker 1: the growth prospects still remain quite strong. So I think 274 00:15:12,320 --> 00:15:14,960 Speaker 1: it's going to be a bifurcation and performance for the 275 00:15:15,200 --> 00:15:18,240 Speaker 1: for the next several months given that backdrop. Of course, 276 00:15:18,240 --> 00:15:20,800 Speaker 1: you've probably heard the comments by now from Jeremy Grantham 277 00:15:20,800 --> 00:15:23,720 Speaker 1: over a GMO saying that we're in a super bubble 278 00:15:23,840 --> 00:15:26,200 Speaker 1: and not even the FED can stop what he sees 279 00:15:26,240 --> 00:15:30,240 Speaker 1: as a near fifty percent plunge for the SNP. What's 280 00:15:30,280 --> 00:15:34,200 Speaker 1: your reaction to that, Well, we we don't really see 281 00:15:34,320 --> 00:15:36,560 Speaker 1: the data the same way, And I think what it 282 00:15:36,600 --> 00:15:39,600 Speaker 1: comes down to is how you look at valuations for 283 00:15:39,640 --> 00:15:41,440 Speaker 1: the benchmark, and I think a lot of investors are 284 00:15:41,440 --> 00:15:46,640 Speaker 1: really focused on valuations. Evaluations look expensive when you put 285 00:15:46,680 --> 00:15:50,040 Speaker 1: into consideration, you have a lot of very expensive companies 286 00:15:50,080 --> 00:15:52,000 Speaker 1: in certain portions of the market, and that's where a 287 00:15:52,000 --> 00:15:54,280 Speaker 1: lot of the concern is. When you take a step 288 00:15:54,320 --> 00:15:56,800 Speaker 1: back and you look with a more broad brush, the 289 00:15:56,840 --> 00:15:59,480 Speaker 1: fundamentals remain quite strong. We have a GDP that's going 290 00:15:59,520 --> 00:16:03,280 Speaker 1: to grow with long term average, with a backshop with inflation, 291 00:16:03,320 --> 00:16:06,800 Speaker 1: which is pricing power to companies that to benefit. And 292 00:16:06,840 --> 00:16:09,080 Speaker 1: we have an inflation and we have an interest rate 293 00:16:09,120 --> 00:16:12,680 Speaker 1: backstop that remains very low, which is providing little alternative 294 00:16:12,720 --> 00:16:15,960 Speaker 1: for investors to move into equities. So I don't necessarily 295 00:16:16,000 --> 00:16:19,000 Speaker 1: see it broadly as problematic, but there are certain portions 296 00:16:19,040 --> 00:16:21,400 Speaker 1: that that it will be an issue though. There is 297 00:16:21,440 --> 00:16:23,360 Speaker 1: a lot of concern I think in the market about 298 00:16:23,400 --> 00:16:24,960 Speaker 1: what the FED is going to do, what it could 299 00:16:25,040 --> 00:16:28,000 Speaker 1: signal at its meeting coming up next week, a lot 300 00:16:28,080 --> 00:16:31,400 Speaker 1: of speculation that we could see a first rate hike 301 00:16:31,480 --> 00:16:33,600 Speaker 1: as soon as March. What's your view on what the 302 00:16:33,640 --> 00:16:38,200 Speaker 1: FED could come out with at its January meeting. Well, 303 00:16:38,240 --> 00:16:40,720 Speaker 1: I think ultimately what we're looking for is the pace 304 00:16:40,800 --> 00:16:42,880 Speaker 1: of which they're going to begin to raise rates and 305 00:16:43,040 --> 00:16:45,400 Speaker 1: putting that in the context of the current geel curve. 306 00:16:45,760 --> 00:16:47,360 Speaker 1: I think at the end of the day, that's our 307 00:16:47,360 --> 00:16:49,840 Speaker 1: main focus because we want to make sure that the 308 00:16:49,960 --> 00:16:54,120 Speaker 1: FED has the ability to move into ultimately stem inflation, 309 00:16:54,760 --> 00:16:57,600 Speaker 1: but we don't want to see them actually push rates 310 00:16:57,640 --> 00:17:01,000 Speaker 1: too high ward, curtails financial conditions and pushes into recessions, 311 00:17:01,040 --> 00:17:03,480 Speaker 1: so they have a delicate balancing act ahead of us. 312 00:17:03,840 --> 00:17:06,040 Speaker 1: Putting it in the conscious, the yield curve is really 313 00:17:06,040 --> 00:17:08,240 Speaker 1: what we're focused on and kind of judging their commentary 314 00:17:08,280 --> 00:17:10,639 Speaker 1: and how fast that they're willing to move. What's your 315 00:17:10,720 --> 00:17:14,240 Speaker 1: view on where the yield curve could go from here, Well, 316 00:17:14,320 --> 00:17:16,760 Speaker 1: ultimately I expect the yel curb to continue to flatten, 317 00:17:17,080 --> 00:17:18,960 Speaker 1: and it's really just a function of the fact that 318 00:17:19,000 --> 00:17:21,240 Speaker 1: if that is going to be in raising rights, it's 319 00:17:21,280 --> 00:17:25,240 Speaker 1: not problematic, although many often view it as a recessionary signal. 320 00:17:25,720 --> 00:17:28,439 Speaker 1: Um I think Ultimately, what it just depends on is 321 00:17:28,520 --> 00:17:32,840 Speaker 1: how they can you know, really balance um. You know, 322 00:17:33,640 --> 00:17:37,040 Speaker 1: the calming inflation, but yet at the same time allowing 323 00:17:37,119 --> 00:17:38,920 Speaker 1: the economy to continue to run. And a lot of 324 00:17:38,960 --> 00:17:40,679 Speaker 1: the factors which are driving in place room right now, 325 00:17:40,720 --> 00:17:43,280 Speaker 1: such as labor we would an incredibly tie labor market 326 00:17:43,600 --> 00:17:45,640 Speaker 1: and the fact that an interest rates are really low, 327 00:17:45,680 --> 00:17:47,600 Speaker 1: which is driving housing, some of those are gonna be 328 00:17:47,640 --> 00:17:51,000 Speaker 1: difficult for them to contain credit. Suez is one of 329 00:17:51,000 --> 00:17:54,680 Speaker 1: the most bullish firms on Wall Street. Patrick, what would 330 00:17:54,680 --> 00:17:56,919 Speaker 1: it take for you and your team to change your 331 00:17:56,920 --> 00:18:02,520 Speaker 1: mind on the bullish outlook for stocks? Well, ultimately, what 332 00:18:02,680 --> 00:18:04,640 Speaker 1: is leading us to be as bullish as we are 333 00:18:04,920 --> 00:18:08,680 Speaker 1: is how positive the underlying backgroup is. That includes real 334 00:18:08,760 --> 00:18:11,560 Speaker 1: economic growth, like I said earlier, growing double the long 335 00:18:11,680 --> 00:18:15,119 Speaker 1: term average, and the fact that inflation um is a 336 00:18:15,119 --> 00:18:17,840 Speaker 1: benefit to a lot of companies. You know, should inflation 337 00:18:17,920 --> 00:18:21,000 Speaker 1: remain high and that begins to erode demand, so we 338 00:18:21,040 --> 00:18:25,280 Speaker 1: see real economic estimates begin to slide, that would cause 339 00:18:25,400 --> 00:18:27,720 Speaker 1: us a level of concern and I think it would 340 00:18:27,720 --> 00:18:30,240 Speaker 1: be problematic. And then I think the second area where 341 00:18:30,240 --> 00:18:32,960 Speaker 1: we would see an issue is if is if interesting 342 00:18:33,000 --> 00:18:36,399 Speaker 1: to actually um you know materially fall from here and 343 00:18:36,400 --> 00:18:37,919 Speaker 1: and it's not an issue that we see this on 344 00:18:37,920 --> 00:18:39,920 Speaker 1: the table at the moment, but it would signal an 345 00:18:40,000 --> 00:18:42,879 Speaker 1: unhealthy backdrop, and I think that would be somewhat problematic 346 00:18:42,920 --> 00:18:45,960 Speaker 1: for stocks. In our last minute here, Patrick, I think 347 00:18:45,960 --> 00:18:50,760 Speaker 1: you mentioned UH move toward more cyclical stocks as as 348 00:18:50,800 --> 00:18:54,760 Speaker 1: a strategy. What are some surprise moves that you're that 349 00:18:54,840 --> 00:19:00,440 Speaker 1: investors could make to whether the outlook going forward? Well, 350 00:19:00,480 --> 00:19:04,040 Speaker 1: I think right now we have a um some of 351 00:19:04,119 --> 00:19:07,280 Speaker 1: a commodity boom that's taking place in light of just 352 00:19:07,320 --> 00:19:09,480 Speaker 1: the robust demand that we've seen in the bathroup. So 353 00:19:09,520 --> 00:19:12,720 Speaker 1: I think UH, energy prices, I think a lot of 354 00:19:12,760 --> 00:19:15,000 Speaker 1: materials prices. I think we have a lot of upside 355 00:19:15,040 --> 00:19:17,440 Speaker 1: left in those areas, and I think that is underpinning 356 00:19:17,440 --> 00:19:20,480 Speaker 1: the success that we're seeing those companies driving pricing power 357 00:19:20,560 --> 00:19:24,080 Speaker 1: and really helping gain operational leverage for a lot of 358 00:19:24,080 --> 00:19:27,400 Speaker 1: these companies, something that wasn't there three and five years ago, 359 00:19:27,440 --> 00:19:30,920 Speaker 1: and I think oftentimes left those sectors for dead. Really 360 00:19:30,920 --> 00:19:33,560 Speaker 1: appreciate this, Patrick, thanks again for coming on with us early. 361 00:19:33,600 --> 00:19:37,120 Speaker 1: That's Patrick Palfrey's senior equity strategist CO had of Quantitative 362 00:19:37,119 --> 00:19:41,520 Speaker 1: Research over at Credit Suez and right now SMP futures 363 00:19:41,560 --> 00:19:44,760 Speaker 1: are little changed to the upside. Doubt futures up fifty 364 00:19:44,760 --> 00:19:47,880 Speaker 1: five points. Danstack future is still lower. They're down by 365 00:19:47,920 --> 00:19:50,560 Speaker 1: almost thirty five points. The tenure Treasury is up four 366 00:19:50,640 --> 00:19:53,560 Speaker 1: thirty seconds, the yield one point seven percent, and the 367 00:19:53,640 --> 00:19:56,280 Speaker 1: yield on the two year right now one point zero 368 00:19:56,400 --> 00:20:01,680 Speaker 1: two percent. Stay with us. You're listening to Boomberg Daybreak 369 00:20:07,560 --> 00:20:10,639 Speaker 1: Bloomberg eleven three oh cold weather partly Sunday Today. Hi 370 00:20:10,760 --> 00:20:12,000 Speaker 1: is only in the low twenties, will be in the 371 00:20:12,080 --> 00:20:15,320 Speaker 1: upper twenties by tomorrow. Sunday war clouds than sun. High 372 00:20:15,320 --> 00:20:18,960 Speaker 1: in the low thirties. Right now fifteen degrees in Central Park. 373 00:20:22,240 --> 00:20:26,800 Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 374 00:20:26,920 --> 00:20:31,560 Speaker 1: Bloomberg E Living Freedom to Washington, d C, Bloomberg to Boston, 375 00:20:31,680 --> 00:20:35,080 Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg NAM 376 00:20:35,160 --> 00:20:38,439 Speaker 1: sixteen to the country, Sirius XM CHADO one nineteen and 377 00:20:38,480 --> 00:20:41,879 Speaker 1: around the globe, the Bloomberg Business at and Bloomberg Radio 378 00:20:41,960 --> 00:20:51,320 Speaker 1: dot Com. This is Bloomberg Daybreak. It's five thirty on 379 00:20:51,320 --> 00:20:54,440 Speaker 1: Wall Street. Good morning. I'm Nathan Hagert and I'm Karen Moscow, 380 00:20:54,560 --> 00:20:56,920 Speaker 1: and we're just about four hours away from the open 381 00:20:56,920 --> 00:20:58,639 Speaker 1: of US trading. Let's get you up to date in 382 00:20:58,680 --> 00:21:00,479 Speaker 1: the news you need to know. At this hour. We're 383 00:21:00,520 --> 00:21:04,160 Speaker 1: seeing more tech weakness following yesterday's a late day sell off. 384 00:21:04,200 --> 00:21:07,080 Speaker 1: We get the very latest live, but the Bloomberg's John Tucker, 385 00:21:07,200 --> 00:21:09,600 Speaker 1: John Karen that has that correction let's started this week 386 00:21:09,680 --> 00:21:12,560 Speaker 1: has gotten worse after yesterday slide. The Tech heavy index 387 00:21:12,600 --> 00:21:15,760 Speaker 1: now down close to twelve percent since it's November high, 388 00:21:16,160 --> 00:21:19,280 Speaker 1: and the list of investor concerns is growing markets face 389 00:21:19,359 --> 00:21:21,639 Speaker 1: of one two punch of FED rate hikes and the 390 00:21:21,680 --> 00:21:25,400 Speaker 1: possible reduction of its eight point eight trillion dollar balance sheet, 391 00:21:25,720 --> 00:21:29,080 Speaker 1: and earning season so far has been uneven, highlighting the 392 00:21:29,160 --> 00:21:31,320 Speaker 1: risk that may fail to do the heavy lifting for 393 00:21:31,400 --> 00:21:35,240 Speaker 1: stocks when the Federal Reserve ends it's stimulus You New York. 394 00:21:35,280 --> 00:21:38,639 Speaker 1: I'm John Tucker, Boonberg Radio and John. Adding weakness to 395 00:21:38,640 --> 00:21:40,959 Speaker 1: the tech sector this morning is Netflix. The shares are 396 00:21:41,000 --> 00:21:44,520 Speaker 1: down twenty one percent this morning on disappointing subscriber growth. 397 00:21:44,600 --> 00:21:47,359 Speaker 1: We get more from Bloomberg Intelligence, Tech and media analysty 398 00:21:47,440 --> 00:21:49,600 Speaker 1: to run and nothing. The sheet was kind of looking 399 00:21:49,640 --> 00:21:52,760 Speaker 1: more at a first quarter editions of about six point 400 00:21:52,760 --> 00:21:55,000 Speaker 1: to six point three million, which would kind of then 401 00:21:55,040 --> 00:21:57,840 Speaker 1: set the tone for the whole of two. We're looking 402 00:21:57,840 --> 00:21:59,879 Speaker 1: more at like a two two and a half million, 403 00:22:00,359 --> 00:22:03,320 Speaker 1: which really now kind of I think actually a lot 404 00:22:03,359 --> 00:22:07,840 Speaker 1: of nervousness amongst investors. Detronga Nathan of Bloomberg Intelligence says 405 00:22:07,920 --> 00:22:11,000 Speaker 1: the subscriber forecast or result in Netflix's slowest start to 406 00:22:11,040 --> 00:22:13,480 Speaker 1: a new year in at least a decade. Well, Nathan, 407 00:22:13,520 --> 00:22:16,000 Speaker 1: Bitcoin is also lower today. In fact, it's trading at 408 00:22:16,040 --> 00:22:18,800 Speaker 1: its lowest level and more than five months. Bitcoin hit 409 00:22:18,840 --> 00:22:22,360 Speaker 1: a high of almost sixty nine thousand in November. This morning, 410 00:22:22,480 --> 00:22:25,480 Speaker 1: it's at thirty nine thousand dollars and on Wall Street 411 00:22:25,520 --> 00:22:27,920 Speaker 1: Care and JP Morgan Chase is coming off its most 412 00:22:28,000 --> 00:22:30,720 Speaker 1: profitable year on record, and as a result, the bank 413 00:22:30,840 --> 00:22:33,800 Speaker 1: is rewarding CEO Jamie Diamond. Let's get the latest life 414 00:22:33,800 --> 00:22:37,679 Speaker 1: from Bloomberg's Rnita Young Ronita Nathan. Regulatory filing show that 415 00:22:37,800 --> 00:22:40,919 Speaker 1: Jamie Diamond got a ten percent pay raise to thirty 416 00:22:40,960 --> 00:22:43,960 Speaker 1: four point five million dollars for his work last year. 417 00:22:44,280 --> 00:22:48,040 Speaker 1: JP Morgan earned forty eight point three billion in one 418 00:22:48,359 --> 00:22:50,560 Speaker 1: and The move is the latest in a sign that 419 00:22:50,760 --> 00:22:54,240 Speaker 1: after compensation pressures emerged last year from the junior ranks 420 00:22:54,359 --> 00:22:57,240 Speaker 1: up through the banking and trading hierarchy, banks are now 421 00:22:57,280 --> 00:23:00,760 Speaker 1: paying their most senior leaders more as well. Live in 422 00:23:00,800 --> 00:23:03,000 Speaker 1: New York. I'm gonna need a young Bloomberg day break 423 00:23:03,040 --> 00:23:05,280 Speaker 1: all right, need to thank you. And China is quietly 424 00:23:05,359 --> 00:23:08,119 Speaker 1: urging banks to increase lending after a slow start of 425 00:23:08,160 --> 00:23:10,480 Speaker 1: the year. Bloomberg News has learned that the People's Bank 426 00:23:10,520 --> 00:23:13,840 Speaker 1: of China has given so called window guidance to large 427 00:23:13,920 --> 00:23:16,679 Speaker 1: state owned lenders and regional banks. It urged them to 428 00:23:16,720 --> 00:23:21,119 Speaker 1: extend more credit to companies and households. SNP futures little 429 00:23:21,200 --> 00:23:24,840 Speaker 1: change this morning. Dal future is up forty seven NASDAG 430 00:23:24,880 --> 00:23:28,119 Speaker 1: futures down forty ten. Year Treasury up five thirty seconds 431 00:23:28,160 --> 00:23:30,800 Speaker 1: yield one point seven eight percent. Straight to head your 432 00:23:30,840 --> 00:23:34,320 Speaker 1: latest local headlines, plus a check of sports. This is Bloomberg, 433 00:23:38,440 --> 00:23:40,439 Speaker 1: Thanks Scaring. It's five thirty three on Wall Street, just 434 00:23:40,600 --> 00:23:44,520 Speaker 1: fifteen degrees one five in Central Park. We're still dealing 435 00:23:44,600 --> 00:23:47,680 Speaker 1: with the accident investigation in Edison. It's on southbound Route 436 00:23:47,720 --> 00:23:50,520 Speaker 1: one at Root eighteen. Details coming up in traffic first 437 00:23:50,840 --> 00:23:52,879 Speaker 1: Michael Barr is back with more on what's going on 438 00:23:52,920 --> 00:23:54,879 Speaker 1: in New York and around the world. Michael, thank you 439 00:23:54,960 --> 00:23:58,119 Speaker 1: very much, Nathan. Secretary of State Anthony B. Lincoln is 440 00:23:58,160 --> 00:24:00,359 Speaker 1: scheduled to sit down in a high stage meeting, but 441 00:24:00,400 --> 00:24:04,080 Speaker 1: his Russian counterpart in Geneva right now Moscow is still 442 00:24:04,119 --> 00:24:08,600 Speaker 1: insisting Ukraine will not be admitted into NATO. President Biden 443 00:24:08,640 --> 00:24:11,040 Speaker 1: said yesterday Russia will pay a heavy price if they 444 00:24:11,080 --> 00:24:15,320 Speaker 1: invade Ukraine. One military official, General Robert Abrams, says a 445 00:24:15,359 --> 00:24:18,800 Speaker 1: major conflict good result in a level of violence Europe 446 00:24:18,800 --> 00:24:23,440 Speaker 1: hasn't scene since World War Two. The sheer destruction of infrastructure, 447 00:24:23,880 --> 00:24:28,520 Speaker 1: home cities, loss of life both military and civilian, as 448 00:24:28,520 --> 00:24:32,560 Speaker 1: well as displaced civilians will directly impact not only Ukraine 449 00:24:32,720 --> 00:24:37,720 Speaker 1: in Russia, but economically will certainly affect Europe. General Robert 450 00:24:37,720 --> 00:24:40,679 Speaker 1: Abrams was a former commander of US forces in Korea. 451 00:24:41,280 --> 00:24:43,960 Speaker 1: New York City Mayor Eric Adams is calling for better 452 00:24:44,000 --> 00:24:47,840 Speaker 1: coordination between federal and local authorities to fight urban crime. 453 00:24:48,440 --> 00:24:52,720 Speaker 1: Adams says law enforcement agencies should coordinate against gun violence 454 00:24:52,800 --> 00:24:57,160 Speaker 1: the way they did against terrorism after the September eleventh attacks, 455 00:24:57,200 --> 00:25:00,320 Speaker 1: the same coordination that stopped plays from fly and our 456 00:25:00,400 --> 00:25:03,320 Speaker 1: build his must be used to stop bullets from cobbon 457 00:25:03,480 --> 00:25:06,840 Speaker 1: highways of death in our country, particularly in black and 458 00:25:06,880 --> 00:25:09,800 Speaker 1: brown and poorer communities. They are, Adams spoke at the 459 00:25:09,880 --> 00:25:13,800 Speaker 1: National Conference of Mayors in Washington yesterday. Singer meat Loaf 460 00:25:13,840 --> 00:25:20,560 Speaker 1: has died at age seventy four. He was known for 461 00:25:20,720 --> 00:25:23,600 Speaker 1: hits like that Out of l meat Loaf, whose real 462 00:25:23,680 --> 00:25:26,639 Speaker 1: name was Marvin Lee a day, sold over one hundred 463 00:25:26,640 --> 00:25:31,200 Speaker 1: million albums worldwide. Abortion opponents are gathering today in Washington 464 00:25:31,320 --> 00:25:34,119 Speaker 1: for the largest anti abortion rally in the US. The 465 00:25:34,160 --> 00:25:37,320 Speaker 1: March for Life arrives as the Supreme Court will decide 466 00:25:37,320 --> 00:25:40,080 Speaker 1: in the coming months on whether to let states impose 467 00:25:40,160 --> 00:25:43,280 Speaker 1: tighter restrictions on abortion. Remembers say that they are not 468 00:25:43,440 --> 00:25:47,439 Speaker 1: finished fighting for abortion restrictions, even if the courts conservative 469 00:25:47,440 --> 00:25:50,560 Speaker 1: majority rules in their favor later this year. Global News 470 00:25:50,560 --> 00:25:52,920 Speaker 1: twenty four hours a day on air and on Bloomberg 471 00:25:53,000 --> 00:25:55,840 Speaker 1: Quick Take, powered by more than twenty seven hundred journalist 472 00:25:55,880 --> 00:25:58,560 Speaker 1: and analysts more than a hundred twenty countries. Michael Barr, 473 00:25:58,640 --> 00:26:06,920 Speaker 1: this is Bloomberg. Nathan, Okay, Michael, thank you, And it's 474 00:26:06,920 --> 00:26:08,920 Speaker 1: now five thirty five on Wall Street. Time for the 475 00:26:08,920 --> 00:26:12,840 Speaker 1: Bloomberg Sports Update us john Shaw act Nathan not surprisingly 476 00:26:12,920 --> 00:26:15,520 Speaker 1: plenty of booze at the Garden. Nicks, for the third 477 00:26:15,560 --> 00:26:17,800 Speaker 1: time in four days, lost at home to a team 478 00:26:17,840 --> 00:26:20,400 Speaker 1: you've figured they could be. This time New Orleans Nicks 479 00:26:20,440 --> 00:26:23,240 Speaker 1: again fell behind early and then the Pelicans really put 480 00:26:23,280 --> 00:26:26,120 Speaker 1: the game away, winning the third quarter thirty five to fifteen. 481 00:26:26,160 --> 00:26:27,960 Speaker 1: The final was one oh two to ninety one. What 482 00:26:28,080 --> 00:26:31,560 Speaker 1: has happened to Julius Randall? The NBA's most improved player 483 00:26:31,640 --> 00:26:34,680 Speaker 1: last season, second team All NBA, He got a big contract, 484 00:26:35,040 --> 00:26:38,159 Speaker 1: not playing anywhere near that level. Randall last night four points. 485 00:26:38,200 --> 00:26:40,600 Speaker 1: He shot one for nine. Among those advanced to the 486 00:26:40,600 --> 00:26:43,720 Speaker 1: fourth round of the Australian Open, meal mere catch Monovich, 487 00:26:43,760 --> 00:26:47,199 Speaker 1: who was supposed to play fellows Serb Novak Djokovic in 488 00:26:47,240 --> 00:26:50,720 Speaker 1: the first round. Djokovic's course was sent home. Two thousand fourteen, 489 00:26:50,840 --> 00:26:53,439 Speaker 1: Kevin Ollie coach you'vecott of the National Championship. He was 490 00:26:53,480 --> 00:26:55,760 Speaker 1: fired four years later in the school said it was 491 00:26:55,800 --> 00:26:57,760 Speaker 1: for n C double a violation, so they didn't know 492 00:26:57,920 --> 00:27:00,760 Speaker 1: him what was left in his contract? Ali Soon an 493 00:27:00,840 --> 00:27:05,040 Speaker 1: arbitrator agreed Yukon now owes Ali eleven million dollars. The 494 00:27:05,200 --> 00:27:08,119 Speaker 1: MLB lockout continues. The two sides of had one brief 495 00:27:08,160 --> 00:27:11,480 Speaker 1: bargaining session last month. Players quickly dismissed an owner's proposal. 496 00:27:11,800 --> 00:27:14,760 Speaker 1: The union now set to make a counter offer next week. 497 00:27:14,800 --> 00:27:17,119 Speaker 1: If there's no deal soon, they will like to make 498 00:27:17,160 --> 00:27:20,439 Speaker 1: official that spring training will not begin on time. NFL 499 00:27:20,440 --> 00:27:23,520 Speaker 1: playoffs resumed Tomorrow's running, with Cincinnati coming off its first 500 00:27:23,520 --> 00:27:26,679 Speaker 1: postseason wining thirty one years. Now at Tennessee, the Titans 501 00:27:26,680 --> 00:27:29,800 Speaker 1: get start running back Derrick Henry back from a broken foot. 502 00:27:30,119 --> 00:27:32,439 Speaker 1: Forty Niners off the upset win in Dallas now go 503 00:27:32,520 --> 00:27:36,640 Speaker 1: to Green Bay Tomorrow night might snow will definitely be cold. Sunday, 504 00:27:36,800 --> 00:27:39,560 Speaker 1: Rams and Bucks and Tampa matter. Stafford just got his 505 00:27:39,600 --> 00:27:42,640 Speaker 1: first playoff when Tom Brady is thirty five. The weekend 506 00:27:42,640 --> 00:27:45,680 Speaker 1: wraps up with Buffalo at Kansas season tost Actually where 507 00:27:45,680 --> 00:27:48,440 Speaker 1: Bloomberg Sports Nathan and John we have breaking news from 508 00:27:48,440 --> 00:27:52,679 Speaker 1: the Australian Open. Defending champion Naomi Osaka has lost in 509 00:27:52,720 --> 00:27:56,480 Speaker 1: the third round to Amanda an A Samova. Seven on 510 00:27:56,560 --> 00:27:59,119 Speaker 1: Wall Street Time Now for the Tri State Business Report. 511 00:27:59,160 --> 00:28:03,080 Speaker 1: Here's Bloomberg's ed Corey talent war means higher starting pay 512 00:28:03,119 --> 00:28:07,200 Speaker 1: for some new York lawyers. Millbank increased starting associate salaries 513 00:28:07,200 --> 00:28:10,119 Speaker 1: to two hundred fifteen thousand dollars. I made a hyper 514 00:28:10,160 --> 00:28:13,800 Speaker 1: competitive market. That bump ads ten thousand dollars to the 515 00:28:13,840 --> 00:28:17,520 Speaker 1: salary for first year associates that Millbank announced last summer. 516 00:28:17,680 --> 00:28:20,679 Speaker 1: Greenwich home listings plunged to a record low in the 517 00:28:20,720 --> 00:28:23,480 Speaker 1: fourth quarter. That with the Breggs in a buying frenzy 518 00:28:23,520 --> 00:28:26,520 Speaker 1: in the posh Connecticut town, there were just one hundred 519 00:28:26,600 --> 00:28:29,760 Speaker 1: sixty seven single family houses available at the end of 520 00:28:29,800 --> 00:28:33,320 Speaker 1: the quarter. That was down nearly sixty percent from before 521 00:28:33,359 --> 00:28:37,359 Speaker 1: the pandemic and the fewest in data going back eight years. 522 00:28:37,640 --> 00:28:40,560 Speaker 1: With the Gateway commuter rail tunnel project in New York 523 00:28:40,600 --> 00:28:43,840 Speaker 1: and New Jersey is receiving a priority boost that makes 524 00:28:43,880 --> 00:28:47,840 Speaker 1: it eligible for federal funding. The Federal Transit Administration is 525 00:28:47,920 --> 00:28:51,240 Speaker 1: raising the project a medium high from Medium low. The 526 00:28:51,360 --> 00:28:54,480 Speaker 1: rating needs to be at least medium to qualify for money. 527 00:28:54,760 --> 00:28:58,720 Speaker 1: That's your Bloomberg tried State Business report. I did, Corey, alright, ed, 528 00:28:58,760 --> 00:29:02,400 Speaker 1: thank you. It's five eight on Wall Street. Bloomberg Radio 529 00:29:02,600 --> 00:29:05,120 Speaker 1: is on the air from San Francisco to New York, 530 00:29:05,200 --> 00:29:08,040 Speaker 1: London to Hong Kong. Let's check in with our global 531 00:29:08,040 --> 00:29:10,160 Speaker 1: news team for some of the top stories heard on 532 00:29:10,160 --> 00:29:16,920 Speaker 1: our three hundred affiliate radio stations around the world. Um 533 00:29:16,960 --> 00:29:20,480 Speaker 1: Courtney Donahoe on KJR H in Houston. Mortgage rates climbing 534 00:29:20,480 --> 00:29:23,280 Speaker 1: for a fourth consecutive week, highest since the start of 535 00:29:23,320 --> 00:29:26,960 Speaker 1: the pandemic. I'm Caroline had Gone Bloomberg. Davey Digital Radio 536 00:29:26,960 --> 00:29:29,000 Speaker 1: in London were re quoting on the slump in UK 537 00:29:29,200 --> 00:29:34,040 Speaker 1: consumer confidence and December retail sells. I made Corey on 538 00:29:34,280 --> 00:29:37,160 Speaker 1: w w J in Detroit. I'm reporting Michigan plans to 539 00:29:37,200 --> 00:29:41,719 Speaker 1: become carbon neutral by two thousands fifty. And those are 540 00:29:41,760 --> 00:29:44,960 Speaker 1: some of the stories our hundred Bloomberg journalist and analysts 541 00:29:44,960 --> 00:29:47,920 Speaker 1: are working on this morning around the world. It's nine 542 00:29:47,960 --> 00:29:52,280 Speaker 1: on Wall Street. The following is an editorial from Bloomberg Opinion. 543 00:29:52,600 --> 00:29:56,360 Speaker 1: The walls are closing in on UK Prime Minister Boris Johnson. 544 00:29:56,880 --> 00:30:00,360 Speaker 1: His critics, including fellow Torris, are furious us over the 545 00:30:00,400 --> 00:30:04,160 Speaker 1: party Gate scandal involving lockdown defining gatherings held at ten 546 00:30:04,240 --> 00:30:07,680 Speaker 1: Downing Street. If Conservative members of Parliament were to trigger 547 00:30:07,680 --> 00:30:11,040 Speaker 1: a leadership contest, Johnson could very well lose. The Prime 548 00:30:11,080 --> 00:30:14,920 Speaker 1: Minister is planning for time, apparently hoping that passions were cool. 549 00:30:15,400 --> 00:30:19,040 Speaker 1: But the political environment has shifted since Johnson's election victory 550 00:30:19,040 --> 00:30:23,040 Speaker 1: in twenty nineteen, and not to his advantage. Brexits promised 551 00:30:23,120 --> 00:30:27,320 Speaker 1: benefits are invisible and its mounting burdens impossible to ignore. 552 00:30:28,000 --> 00:30:31,120 Speaker 1: The pandemic is once more threatening to overwhelm the National 553 00:30:31,120 --> 00:30:34,760 Speaker 1: Health Service. Energy costs are surging, tax increases are on 554 00:30:34,800 --> 00:30:38,160 Speaker 1: the horizon, and the labor opposition is no longer led 555 00:30:38,200 --> 00:30:43,360 Speaker 1: by a socialist. Strange things happen in politics, especially British politics. 556 00:30:43,760 --> 00:30:46,720 Speaker 1: But if Johnson prevails against these forces, it will be 557 00:30:46,760 --> 00:30:49,719 Speaker 1: a miracle. This editorial was written by the Bloomberg Opinion 558 00:30:49,800 --> 00:30:53,200 Speaker 1: Editorial Board. I'm David Shipley. For more Bloomberg opinion, please 559 00:30:53,200 --> 00:30:56,120 Speaker 1: go to Bloomberg dot com, slash opinion or OPA and 560 00:30:56,200 --> 00:30:59,840 Speaker 1: go on the Bloomberg terminal. These has been Bloomberg Opinion. 561 00:31:00,000 --> 00:31:02,840 Speaker 1: Listen for Bloomberg Opinion editorials every weekday. At this time, 562 00:31:02,960 --> 00:31:05,320 Speaker 1: terminal customers can read more at O, P, I, N 563 00:31:05,400 --> 00:31:08,400 Speaker 1: go right now. SMP futures are little changed now futures 564 00:31:08,440 --> 00:31:13,120 Speaker 1: up sixty three points, NASTAC futures down two. Netflix shares 565 00:31:13,160 --> 00:31:16,600 Speaker 1: down twenty one percent. Analysis of the earnings next with 566 00:31:16,720 --> 00:31:23,440 Speaker 1: Tuna Amobi of c f R a Bloomberg eleven three 567 00:31:23,440 --> 00:31:26,280 Speaker 1: oh weather sunny, low twenties for highs today will be 568 00:31:26,320 --> 00:31:29,280 Speaker 1: in the upper twenties Tomorrow, clouds roll in Sunday, with 569 00:31:29,400 --> 00:31:34,240 Speaker 1: highs by then in the low thirties currently just fifteen degrees. 570 00:31:37,320 --> 00:31:40,720 Speaker 1: Markets headlines and breaking news twenty four hours a day 571 00:31:40,800 --> 00:31:44,400 Speaker 1: at Bloomberg dot com, the Bloomberg Business attend at Bloomberg 572 00:31:44,440 --> 00:31:54,280 Speaker 1: Quick Tape, He's a Bloomberg Business Flash and I'm Karen Moscow. 573 00:31:54,400 --> 00:31:57,960 Speaker 1: US stock index futures are mixed, while European stocks are 574 00:31:58,080 --> 00:32:01,280 Speaker 1: following as investors assess shape key company earnings in that 575 00:32:01,360 --> 00:32:05,640 Speaker 1: prospect of higher US borrowing costs. NASDAK futures are underperforming 576 00:32:05,680 --> 00:32:08,280 Speaker 1: after the tech heavy gage entered a correction yesterday. But 577 00:32:08,440 --> 00:32:10,760 Speaker 1: check the markets every fifteen minutes throughout the trading day 578 00:32:10,840 --> 00:32:14,080 Speaker 1: on Bloomberg s ANDP futures that will change. DAL futures 579 00:32:14,120 --> 00:32:17,560 Speaker 1: up sixty two, NASDAG futures down forty one. The decks 580 00:32:17,560 --> 00:32:19,840 Speaker 1: in Germany's down one point three per cent, the ten 581 00:32:19,920 --> 00:32:22,720 Speaker 1: year treasury up four thirty seconds, YELD one point seven 582 00:32:22,800 --> 00:32:24,920 Speaker 1: nine percent, The yield on the two year one point 583 00:32:25,080 --> 00:32:28,000 Speaker 1: two percent nine max Scrude oil is down one point 584 00:32:28,000 --> 00:32:30,080 Speaker 1: six percent on a dollar thirty five at eighty four 585 00:32:30,120 --> 00:32:32,960 Speaker 1: dollars nineteen cents of barrel. Comic school is down four 586 00:32:33,000 --> 00:32:35,200 Speaker 1: ten per cent or eight dollars twenty cents at eighteen 587 00:32:35,240 --> 00:32:38,240 Speaker 1: thirty six seventy announced. The euro one point one three 588 00:32:38,280 --> 00:32:40,640 Speaker 1: three seven against the dollar, British found one point three 589 00:32:40,680 --> 00:32:43,960 Speaker 1: five six nine. The yunis at one thirteen point nine zero. 590 00:32:44,320 --> 00:32:48,520 Speaker 1: Bitcoin this morning is at thirty eight thousand, nine hundred dollars. 591 00:32:48,560 --> 00:32:51,040 Speaker 1: And that's a Bloomberg business flash. Now here's Michael Barr 592 00:32:51,080 --> 00:32:54,240 Speaker 1: with more on what's going on around the world. Michael Karen, 593 00:32:54,280 --> 00:32:57,360 Speaker 1: thank you very much. US Secretary of State Anthony Lincoln 594 00:32:57,400 --> 00:33:01,280 Speaker 1: and Russian foreign ministers Sergei lab Rolph began security talks today. 595 00:33:01,720 --> 00:33:04,720 Speaker 1: It comes after President Joe Biden warned Russia would pay 596 00:33:04,720 --> 00:33:08,520 Speaker 1: a heavy price for any intervention in Ukraine. Lavrov says 597 00:33:08,600 --> 00:33:11,800 Speaker 1: Russia is grateful to the US for participating in the 598 00:33:11,840 --> 00:33:15,040 Speaker 1: security talks and expects to receive a response to its 599 00:33:15,080 --> 00:33:19,080 Speaker 1: security demands. The US plans the raise the federal employee 600 00:33:19,120 --> 00:33:22,280 Speaker 1: minimum wage to fifteen dollars an hour. That's according to 601 00:33:22,320 --> 00:33:26,120 Speaker 1: a report from Axios. Meat Loaf, born as Marvin Lea Day, 602 00:33:26,200 --> 00:33:28,840 Speaker 1: has died. The singer known for such hits as Bat 603 00:33:28,920 --> 00:33:31,720 Speaker 1: Out of Hell was seventy four breaking news out of 604 00:33:31,720 --> 00:33:35,760 Speaker 1: the Australian Open. Defending champion Naomi Osaka has been knocked 605 00:33:35,760 --> 00:33:38,480 Speaker 1: out of the women's third round in the NBA the 606 00:33:38,560 --> 00:33:41,200 Speaker 1: next and Warriors lost in the NHL. The Bruins beat 607 00:33:41,240 --> 00:33:44,400 Speaker 1: the Capital's for three Global News twenty four hours a 608 00:33:44,480 --> 00:33:47,920 Speaker 1: day on air and on Bloomberg Quicktake, powered by more 609 00:33:48,000 --> 00:33:50,320 Speaker 1: than twenty seven under a journalist and analysts more than 610 00:33:50,320 --> 00:33:53,200 Speaker 1: a d twenty countries. Michael Barn this is Bloomberg. Nathan 611 00:33:53,360 --> 00:33:55,480 Speaker 1: all right, Michael, thank you. It's five forty nine on 612 00:33:55,520 --> 00:33:58,600 Speaker 1: Wall Street Live from the Bloomberg Interactive Brokers Studios. This 613 00:33:58,680 --> 00:34:01,240 Speaker 1: is Bloomberg Daybreak. And when you want to talk about 614 00:34:01,320 --> 00:34:04,760 Speaker 1: shaky earning so far, take a look at Netflix. The 615 00:34:04,880 --> 00:34:08,440 Speaker 1: shares of the streaming giant are down twenty one percent 616 00:34:08,560 --> 00:34:11,719 Speaker 1: in the pre market. Streaming Giant reported a slow down 617 00:34:11,800 --> 00:34:13,919 Speaker 1: and subscriber growth in the fourth quarter, and it says 618 00:34:14,080 --> 00:34:16,960 Speaker 1: it is likely to continue at least into the early 619 00:34:17,000 --> 00:34:19,000 Speaker 1: part of this year. Let's bring in Tuna Amobi for 620 00:34:19,120 --> 00:34:21,840 Speaker 1: more on this. Tech media and telecom analyst at c 621 00:34:22,080 --> 00:34:25,080 Speaker 1: f R A Tuna, Good morning. Not so good for Netflix. 622 00:34:25,120 --> 00:34:27,400 Speaker 1: So with that guidance for just two and a half 623 00:34:27,480 --> 00:34:30,719 Speaker 1: million new subscribers in the current quarter really seeming to 624 00:34:30,760 --> 00:34:33,440 Speaker 1: spook investors, does it have you rethinking the stock? A 625 00:34:33,480 --> 00:34:37,720 Speaker 1: lot of analysts are starting to downgrade. Now. Good morning, Nathan, 626 00:34:37,760 --> 00:34:40,440 Speaker 1: and it's always great to be with you. Um. Absolutely, 627 00:34:40,480 --> 00:34:43,719 Speaker 1: I think the guidance for a Q one, as you 628 00:34:43,760 --> 00:34:48,200 Speaker 1: alluded to, kind of spooked spooked us as well, right, Um, 629 00:34:48,239 --> 00:34:51,400 Speaker 1: but we did maintain our target prize. Um, sorry, we did. 630 00:34:51,440 --> 00:34:56,080 Speaker 1: We maintain our by recommendation and then reduced our target price. UM. 631 00:34:57,760 --> 00:35:00,239 Speaker 1: I think what this report had done this and is 632 00:35:00,280 --> 00:35:04,520 Speaker 1: that it calls into question, um, you know, the the 633 00:35:04,680 --> 00:35:08,640 Speaker 1: pace of growth, whether that might be sustainable. Um. You know, 634 00:35:08,920 --> 00:35:11,719 Speaker 1: we were. We came into the last quarter actually with 635 00:35:11,840 --> 00:35:16,239 Speaker 1: relatively temperate expectations, but no one, um, you know, was 636 00:35:16,280 --> 00:35:19,480 Speaker 1: anticipating that the Q one guidance was going to be 637 00:35:19,520 --> 00:35:22,200 Speaker 1: as low as two point five million, which was at 638 00:35:22,280 --> 00:35:27,680 Speaker 1: least four million lower than our expectations. With that being said, 639 00:35:28,080 --> 00:35:30,480 Speaker 1: you wouldn't know the way they share the trading that 640 00:35:30,560 --> 00:35:32,920 Speaker 1: they actually beat Q from the top and bottom line, 641 00:35:33,480 --> 00:35:37,000 Speaker 1: even though the subscriber numbers eight point three million came 642 00:35:37,000 --> 00:35:40,040 Speaker 1: in a touched below the guidance of eight point five 643 00:35:40,200 --> 00:35:44,040 Speaker 1: million last quarter UM. At this point UM, it's pretty 644 00:35:44,040 --> 00:35:48,600 Speaker 1: clear to us that the next hundred million UH subscribe 645 00:35:48,640 --> 00:35:51,759 Speaker 1: audition is going to be incrementally harder than UM than 646 00:35:51,800 --> 00:35:55,000 Speaker 1: the last two hundred that Netflix has added globally, UH. 647 00:35:55,040 --> 00:35:57,880 Speaker 1: You know, granted that we still think that there's a 648 00:35:57,880 --> 00:36:01,360 Speaker 1: lot of low hanging fruit in men the international markets 649 00:36:01,920 --> 00:36:06,640 Speaker 1: across EMA and also Asia Pacific, that we think that 650 00:36:07,200 --> 00:36:10,160 Speaker 1: there's a lot of room for for growth. But what 651 00:36:10,239 --> 00:36:14,560 Speaker 1: investors are doing right now is to somewhat recalibrate UM, 652 00:36:14,600 --> 00:36:18,440 Speaker 1: you know, the expectation and begin to perhaps depression the 653 00:36:18,640 --> 00:36:22,800 Speaker 1: secular growth thesis as to whether this huge breaming valuation 654 00:36:23,239 --> 00:36:25,839 Speaker 1: is warranted. But you know, right now, we're still kind 655 00:36:25,840 --> 00:36:28,920 Speaker 1: of watching. We think that there's still some elements of 656 00:36:29,040 --> 00:36:33,040 Speaker 1: COVID overhang. As the company alluded to, it's been extremely 657 00:36:33,120 --> 00:36:37,600 Speaker 1: volatile too for forecast subscriber prediction to predict subscriber growth 658 00:36:37,680 --> 00:36:39,279 Speaker 1: coming out of a bit COVID, and this is something 659 00:36:39,320 --> 00:36:41,960 Speaker 1: we respect to UH to be a common theme as 660 00:36:42,080 --> 00:36:45,480 Speaker 1: other streaming platforms report their results. Yeah, I wanted to 661 00:36:45,480 --> 00:36:48,759 Speaker 1: ask you about the outlook for the streaming UH industry 662 00:36:48,840 --> 00:36:52,760 Speaker 1: more broadly, are those tempered expectations for subscriber growth something 663 00:36:52,800 --> 00:36:59,040 Speaker 1: that you're expecting across the competitive space? Certainly there's uh 664 00:36:59,360 --> 00:37:02,680 Speaker 1: you know, every sends to show that the next leg 665 00:37:02,760 --> 00:37:05,000 Speaker 1: of the growth is not going to be as robust, 666 00:37:05,080 --> 00:37:06,840 Speaker 1: and that's why you see a lot of the shares 667 00:37:06,880 --> 00:37:10,720 Speaker 1: of the major companies that owned streaming platforms also down 668 00:37:10,719 --> 00:37:14,760 Speaker 1: in sympathy with Netflix. UM you know. With that being said, 669 00:37:14,760 --> 00:37:18,000 Speaker 1: I think that the one positive takeaway from Netflix results 670 00:37:18,000 --> 00:37:20,840 Speaker 1: should not be lost that the US and Canada numbers 671 00:37:20,880 --> 00:37:23,520 Speaker 1: were actually way better than expected. I think there's been 672 00:37:24,120 --> 00:37:29,239 Speaker 1: questions around whether the domestic market is saturated, but but 673 00:37:29,480 --> 00:37:32,360 Speaker 1: I think this report answered that UM and kind of 674 00:37:32,440 --> 00:37:35,360 Speaker 1: help to ease the concerns. The other question is whether 675 00:37:35,400 --> 00:37:38,120 Speaker 1: the price increases that they've just announced in US and Canada, 676 00:37:38,640 --> 00:37:42,360 Speaker 1: how much that perhaps factored into their their guidance. We 677 00:37:42,440 --> 00:37:46,160 Speaker 1: think that um, you know, given the huge content investments 678 00:37:46,200 --> 00:37:48,800 Speaker 1: Netflix has made, UH, they still have a fair amount 679 00:37:48,840 --> 00:37:51,080 Speaker 1: of pricing power left, So we would not rush to 680 00:37:51,080 --> 00:37:54,600 Speaker 1: conclude that UM you know that there's any questions of 681 00:37:55,200 --> 00:37:59,040 Speaker 1: audience retention or turn because most of the shows that 682 00:37:59,080 --> 00:38:03,160 Speaker 1: they've reported view hours or significantly up. And there is no, um, 683 00:38:03,440 --> 00:38:06,320 Speaker 1: no doubt that there's still tremendous appetite out there for 684 00:38:06,920 --> 00:38:10,120 Speaker 1: for streaming content. Only about a minute left here, Tuna, 685 00:38:10,160 --> 00:38:12,680 Speaker 1: but you know, to Netflix has been spending a lot 686 00:38:13,000 --> 00:38:16,840 Speaker 1: on content, putting out the sort of blockbuster movies and 687 00:38:17,160 --> 00:38:19,759 Speaker 1: TV shows as well. Can they continue to spend that 688 00:38:19,880 --> 00:38:22,799 Speaker 1: much on the product that they put out for consumers? 689 00:38:23,280 --> 00:38:27,600 Speaker 1: They almost have to, especially with streaming wars now set 690 00:38:27,640 --> 00:38:31,120 Speaker 1: to further escalated this year. Um we have them spending 691 00:38:31,200 --> 00:38:34,600 Speaker 1: north of twenty billion dollars this year as well, after 692 00:38:34,719 --> 00:38:37,880 Speaker 1: almost seventeen billion last year. So this is really the 693 00:38:37,960 --> 00:38:39,799 Speaker 1: name of the game, you know, with with all the 694 00:38:40,160 --> 00:38:44,160 Speaker 1: you know, depocketed competitors out there, it's almost imperative that 695 00:38:44,200 --> 00:38:46,560 Speaker 1: you have to spend and give consumers their reason to 696 00:38:46,680 --> 00:38:48,840 Speaker 1: keep coming back. And that's why you think they've been 697 00:38:48,880 --> 00:38:52,840 Speaker 1: able to sustain the viewership growth that they have. Content 698 00:38:52,960 --> 00:38:55,920 Speaker 1: is going to always be the number one ingredients in 699 00:38:56,040 --> 00:39:00,360 Speaker 1: terms of being a formidable competitor. So it is not 700 00:39:00,400 --> 00:39:03,719 Speaker 1: a game for this faint of heart nating Yeah, a 701 00:39:03,760 --> 00:39:06,239 Speaker 1: lot of competition, not just in streaming, but maybe even 702 00:39:06,239 --> 00:39:08,680 Speaker 1: in movie theaters as well as a lot of consumers 703 00:39:09,040 --> 00:39:12,480 Speaker 1: movie goers think about at least getting back into those 704 00:39:12,760 --> 00:39:16,360 Speaker 1: cinema seats. Tuna, a MOBI analyst at c FR a 705 00:39:16,480 --> 00:39:19,840 Speaker 1: with us this morning on those Netflix earnings and taking 706 00:39:19,840 --> 00:39:21,400 Speaker 1: a look at the shares in the pre market care 707 00:39:21,440 --> 00:39:23,640 Speaker 1: and again they are down now twenty one and a 708 00:39:23,640 --> 00:39:27,560 Speaker 1: half percent. All right, Nathan, thank you. While staying with earnings, 709 00:39:27,560 --> 00:39:30,520 Speaker 1: fourth quarter results from the major Wall Street banks are 710 00:39:30,560 --> 00:39:33,359 Speaker 1: in the books, and Bank of America's coming off an 711 00:39:33,440 --> 00:39:36,600 Speaker 1: end of the year that beat most expectations. Still it 712 00:39:36,600 --> 00:39:40,480 Speaker 1: has not been completely smooth sailing for Chief executive Brian moynihan. 713 00:39:40,760 --> 00:39:43,560 Speaker 1: He says compensation is the biggest expense for the bank. 714 00:39:43,600 --> 00:39:45,920 Speaker 1: And we came up with Bank of America's CEO Brian 715 00:39:45,960 --> 00:39:49,960 Speaker 1: moynahan in a conversation with Bloomberg's David weston let's listen 716 00:39:49,960 --> 00:39:52,880 Speaker 1: and now it's a tale of many cities in the 717 00:39:53,000 --> 00:39:56,600 Speaker 1: sense that there are some businesses which, uh, you have 718 00:39:57,480 --> 00:39:59,480 Speaker 1: not as much leverage in and as they called therefore 719 00:39:59,520 --> 00:40:03,800 Speaker 1: they compensation structure maintains constantly. There's some there's bonuses overall, 720 00:40:03,800 --> 00:40:05,879 Speaker 1: we we have about thirty odd billion, thirty two thirty 721 00:40:05,920 --> 00:40:10,240 Speaker 1: three billion dollars in compensation and related expenses, benefits, compensation, bonuses, 722 00:40:10,280 --> 00:40:13,800 Speaker 1: et cetera for our team of our fifty nine billion expenses. 723 00:40:13,840 --> 00:40:16,000 Speaker 1: So it is the biggest expense by a lot. And 724 00:40:16,400 --> 00:40:18,839 Speaker 1: so the only way to really do you have to 725 00:40:19,000 --> 00:40:21,080 Speaker 1: manage that is actually how many people you have going 726 00:40:21,120 --> 00:40:23,600 Speaker 1: through it? Um. You have to be competitive, You have 727 00:40:23,640 --> 00:40:25,520 Speaker 1: to pay people. We don't want people want to work 728 00:40:25,560 --> 00:40:28,160 Speaker 1: for less. Next year, Brian's we look forward in twenty two, 729 00:40:28,200 --> 00:40:29,839 Speaker 1: we're looking at something we haven't seen in a good 730 00:40:29,840 --> 00:40:32,280 Speaker 1: long time, and that is the tightening of monetary policy 731 00:40:32,360 --> 00:40:34,839 Speaker 1: rather than the loosening monetary policy. Give us a sense 732 00:40:34,880 --> 00:40:37,239 Speaker 1: of what you're looking at. And just to be specific, 733 00:40:37,480 --> 00:40:39,600 Speaker 1: as you make projections at back in America, how many 734 00:40:39,719 --> 00:40:42,240 Speaker 1: rate hikes do you expect to have fed in two 735 00:40:42,600 --> 00:40:44,719 Speaker 1: There are two parts that one of our research team 736 00:40:45,320 --> 00:40:47,640 Speaker 1: led by Canvas Browning plat and the team is terrific 737 00:40:47,680 --> 00:40:50,880 Speaker 1: and they have four rate hikes in next year. Uh. 738 00:40:50,920 --> 00:40:54,600 Speaker 1: But internally we we model our future income off the curve. 739 00:40:54,680 --> 00:40:56,839 Speaker 1: We don't full ourselves. Let anybody make a projection, but 740 00:40:57,080 --> 00:41:01,120 Speaker 1: look inflation is here. The economy you know it's gonna 741 00:41:01,160 --> 00:41:03,680 Speaker 1: grow at six four two, so thinks six last six 742 00:41:03,719 --> 00:41:06,560 Speaker 1: and four and twenty two and to get them to 743 00:41:06,640 --> 00:41:10,200 Speaker 1: two pc growth rate and in twenty three, and think 744 00:41:10,239 --> 00:41:12,400 Speaker 1: of it. This year is making that adjustment that is 745 00:41:12,440 --> 00:41:15,520 Speaker 1: based on the tightening first the Fiscal Committy official will 746 00:41:15,719 --> 00:41:19,960 Speaker 1: uh stimulus you have stopped last year and now the 747 00:41:20,000 --> 00:41:22,680 Speaker 1: monetary stimuls to be pulled out because the economy is 748 00:41:22,800 --> 00:41:25,759 Speaker 1: as big as it was growing faster unemployments below for 749 00:41:26,560 --> 00:41:28,839 Speaker 1: you know, the conditions are right to go ahead and 750 00:41:29,080 --> 00:41:32,759 Speaker 1: actually reduce the accommodation with one big caveat does this 751 00:41:33,200 --> 00:41:35,799 Speaker 1: virus go in some direction that caused some damage that 752 00:41:35,840 --> 00:41:38,279 Speaker 1: people don't understand. And the good news is, you know 753 00:41:38,280 --> 00:41:40,440 Speaker 1: we're winning the war on the virus of vaccines and 754 00:41:40,480 --> 00:41:43,440 Speaker 1: everything you know about. So, but remember the key is 755 00:41:43,480 --> 00:41:46,480 Speaker 1: at six four two, the economy is slowing down and 756 00:41:46,520 --> 00:41:48,520 Speaker 1: part of that is the engineering that goes on to 757 00:41:48,680 --> 00:41:51,520 Speaker 1: bring it into more of a sustainable growth rate because 758 00:41:51,520 --> 00:41:54,640 Speaker 1: it was growing faster than it usually grows. And so 759 00:41:54,960 --> 00:41:57,200 Speaker 1: will rates go up? Yes, four times this year is 760 00:41:57,200 --> 00:41:59,799 Speaker 1: a prediction. The reality is does that help our earnings? Yes? 761 00:42:00,040 --> 00:42:01,960 Speaker 1: But the real reality is is that's the bring the 762 00:42:02,000 --> 00:42:05,359 Speaker 1: economy to take the inflation now the system and if 763 00:42:05,400 --> 00:42:08,800 Speaker 1: they get it right, because the economy is growing very fast, 764 00:42:08,920 --> 00:42:11,759 Speaker 1: in inflation is growing very fast. As that slows down, 765 00:42:12,000 --> 00:42:15,360 Speaker 1: we should get back to normal economy. And that was 766 00:42:15,440 --> 00:42:18,719 Speaker 1: Bank of America Chief Executive Brian moynihan speaking with the 767 00:42:18,719 --> 00:42:21,800 Speaker 1: Bloomberg's David West, and you can catch their full interview 768 00:42:21,880 --> 00:42:25,840 Speaker 1: online at Bloomberg dot com. Again, futures this morning, S 769 00:42:25,920 --> 00:42:29,440 Speaker 1: and P futures are little change down futures up fifty 770 00:42:29,680 --> 00:42:33,720 Speaker 1: three and NASDAG futures lower down fifty four. The tenuere 771 00:42:33,760 --> 00:42:35,839 Speaker 1: treasury at four third day seconds he had one point 772 00:42:35,840 --> 00:42:39,040 Speaker 1: to seven nine per cent and the yield on the 773 00:42:39,080 --> 00:42:41,400 Speaker 1: two year one point two per cent. Still ahead. On 774 00:42:41,400 --> 00:42:43,680 Speaker 1: Bloomberg day Break and check on the business headlines and 775 00:42:43,719 --> 00:42:45,960 Speaker 1: all the news you need to start your day. This 776 00:42:46,200 --> 00:42:46,880 Speaker 1: is Bloomberg