WEBVTT - Bloomberg Daybreak: March 7, 2022 - Hour 2 (Radio) 0:00:03.880 --> 0:00:07.039 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:07.120 --> 0:00:10.600 Daybreak for Monday, March seven two. Coming up this hour, 0:00:10.840 --> 0:00:13.960 equities tumble as stock markets from Europe to Asia head 0:00:14.000 --> 0:00:16.759 for bear markets. Oil sewers on the prospect of a 0:00:16.880 --> 0:00:20.280 US ban on Russian supplies. Gold rallies to top two 0:00:20.360 --> 0:00:23.200 thousand dollars announce, and more companies join the effort to 0:00:23.239 --> 0:00:26.720 cut ties with Russia. Former New York Governor Cuomo is 0:00:26.800 --> 0:00:30.560 hinting at a political combats. Vice President Harrison marks the 0:00:30.560 --> 0:00:34.120 Bloody Sunday Anniversary in Selma. I'm Michael barn More ahead, 0:00:34.720 --> 0:00:37.120 I'm John Stas Sharon Sports rare wind for the next 0:00:37.159 --> 0:00:39.400 They beat the Clippers in l A, the Nets lost 0:00:39.440 --> 0:00:45.040 in Boston, the Rangers one in Winnipeg. That's all straight 0:00:45.040 --> 0:00:49.240 ahead on Bloomberg day Break on Bloomberg Element Trio, New York, 0:00:49.400 --> 0:00:54.120 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.280 --> 0:00:58.760 Bloomberg nine sixty, San Francisco, Sirius x M one nineteen 0:00:59.160 --> 0:01:01.880 and around the world. Old on Bloomberg Radio dot Com 0:01:02.000 --> 0:01:08.320 and via The Bloomberg Business or Good Morning. I'm Nathan 0:01:08.360 --> 0:01:11.959 Hagar and I'm Karen. Moscow and global stocks tumbling again 0:01:12.040 --> 0:01:13.800 to start the week. We're coming up to six o 0:01:13.920 --> 0:01:15.640 one on All Street, and we check the markets every 0:01:15.640 --> 0:01:18.919 fifteen minutes throughout the trading day. On Bloomberg SMP future 0:01:18.959 --> 0:01:21.480 is down seventy four points now Future is down to 0:01:21.520 --> 0:01:25.080 five fifty four and Nashtag futures down two hundred forty three. 0:01:25.520 --> 0:01:28.000 Tenure Treasury up one thirty second. He had one point 0:01:28.000 --> 0:01:29.880 seven two per cent and they yield on the two 0:01:30.000 --> 0:01:33.479 year one point four seven percent. Nathan, all right, Karen, 0:01:33.480 --> 0:01:35.080 we'll have more on the sell off in a minute, 0:01:35.080 --> 0:01:37.600 but first the latest developments in the war in Ukraine. 0:01:37.680 --> 0:01:40.040 Russia says it has agreed to a cease fire to 0:01:40.160 --> 0:01:43.640 open up humanitarian quarters in some cities, but Ukraine says 0:01:43.680 --> 0:01:46.520 Moscow is still shooting near the capital Kiev and near 0:01:46.560 --> 0:01:48.680 the port city of Mario, Pol where about two hundred 0:01:48.720 --> 0:01:53.200 thousand civilians are trapped. Ukraine's president Vladimir Zlinsky is pleading 0:01:53.200 --> 0:01:57.920 with the US and Europe for a noah fly zone. 0:01:57.920 --> 0:02:00.120 If you don't impose a no fly zone, if at 0:02:00.200 --> 0:02:02.880 least don't give us planes so that we can defend ourselves, 0:02:03.120 --> 0:02:06.840 then there can be only one conclusion. You also want 0:02:06.920 --> 0:02:09.720 us to be slowly killed. This is the responsibility of 0:02:09.760 --> 0:02:14.760 world's politicians, Western leaders today and forever. President Zelinski spoke 0:02:14.760 --> 0:02:17.239 with US President Joe Biden over the weekend. The third 0:02:17.320 --> 0:02:21.320 round of talks between Ukraine and Russia is set for today. Meantime, Nathan, 0:02:21.320 --> 0:02:24.160 the US is planning to send more aircraft to Ukraine, 0:02:24.240 --> 0:02:27.520 Bloomberg said. Baxter has the story. Secretary of State Anthony 0:02:27.560 --> 0:02:30.640 Lincoln says, the US is actively talking with NATO countries 0:02:30.639 --> 0:02:32.880 about getting help in that gets a green light. In fact, 0:02:32.880 --> 0:02:36.800 we're talking with our Polish friends right now about what 0:02:36.840 --> 0:02:39.440 we might be able to do to backfill their needs 0:02:39.480 --> 0:02:42.440 if in fact they choose to provide these fighter jets 0:02:42.480 --> 0:02:45.000 to to the Ukrainians, So the US would be directly 0:02:45.080 --> 0:02:47.920 and indirectly helping this. As he says, the world should 0:02:47.960 --> 0:02:51.360 expect a long war there, and Russian President of Vladimir 0:02:51.480 --> 0:02:54.480 Putin says that he will not end the invasion until 0:02:54.639 --> 0:02:59.040 Ukraine agrees to all of his demands. In San Francisco, 0:02:59.080 --> 0:03:01.640 I'm at baxter a Berg daybreak, all right, and thank you. 0:03:01.720 --> 0:03:05.280 Russia finds itself increasingly isolated, but China this morning is 0:03:05.320 --> 0:03:08.320 declaring ties with Moscow to be quote rock solid despite 0:03:08.360 --> 0:03:11.760 President Vladimir Putin's invasion of Ukraine. China's foreign minister is 0:03:11.760 --> 0:03:13.880 also accused in the US of trying to build a 0:03:13.880 --> 0:03:17.680 new version of NATO in the Pacificithan energy markets are 0:03:17.760 --> 0:03:20.120 in focus this morning. Sources say the White House is 0:03:20.160 --> 0:03:23.440 considering whether to prohibit Russian oil imports to the US 0:03:23.639 --> 0:03:27.280 is considering a unilateral move without the participation of allies 0:03:27.320 --> 0:03:30.520 in Europe, at least initially. Secretary of State Anthony Blinken 0:03:30.560 --> 0:03:33.960 discussed the plans on CNN. We are now talking to 0:03:34.080 --> 0:03:36.920 our European partners and allies to look in a coordinated 0:03:36.960 --> 0:03:40.680 way at the prospect of banning the import of Russian 0:03:40.680 --> 0:03:44.000 oil while making sure that there is still an appropriate 0:03:44.000 --> 0:03:46.560 supply of oil on world markets. That's a very active 0:03:46.560 --> 0:03:49.320 discussion as we speak. Secretary is Day and Anthony Blanken 0:03:49.400 --> 0:03:52.480 meets with that Israeli counterpart today to discuss the situation 0:03:52.560 --> 0:03:55.400 in Ukraine, among other matters. Well, following those comments from 0:03:55.440 --> 0:03:58.080 Secretary blink and Karen, we saw oil sword to just 0:03:58.080 --> 0:04:00.600 shyve a hundred forty dollars of barrel. Right now, Brent 0:04:00.680 --> 0:04:03.200 crude is at a hundred twenty four dollars eighty five cents, 0:04:03.200 --> 0:04:05.640 while West Texas Intermediates at a hundred twenty two dollars 0:04:05.680 --> 0:04:09.040 fifty nine of barrel. Other commodities are also rallying. Gold 0:04:09.160 --> 0:04:11.880 futures jumped above two thousand dollars an ounced for the 0:04:11.920 --> 0:04:14.440 first time in more than eighteen months, while copper and 0:04:14.480 --> 0:04:17.440 palladium hit all time highs. Nicols spiked as much as 0:04:17.440 --> 0:04:20.599 thirty one per cent, while we slammed the daily upward 0:04:20.640 --> 0:04:23.240 limit for the sixth day in a row. Well commodities 0:04:23.240 --> 0:04:26.000 are surging, Nathan stocks are selling off around the world. 0:04:26.160 --> 0:04:28.320 We're seeing some of the biggest drops in Europe. And 0:04:28.400 --> 0:04:30.200 let's head to London and get the very latest from 0:04:30.240 --> 0:04:33.159 Bloomberg's un parts. Good morning U in Good morning Counter 0:04:33.279 --> 0:04:35.960 Nathan mayor stop markets from Europe's Asia heading for bear 0:04:36.000 --> 0:04:39.000 markets today, falling more than twenty percent from their highs. 0:04:39.240 --> 0:04:41.920 That's a made fairs of an inflations shock and perhaps 0:04:41.920 --> 0:04:45.120 a growth shock in the world economy. As crude source 0:04:45.240 --> 0:04:48.799 on the prospects of a ban on Russian supplies, Banks, 0:04:48.920 --> 0:04:54.440 carmakers and retailers leading losses today, Defense companies gaining, energy 0:04:54.480 --> 0:04:57.200 and mining stocks the only sectors in the green today 0:04:57.240 --> 0:04:59.600 around Europe. In London, I'm you in parts been bug 0:04:59.640 --> 0:05:01.400 day break, all right you and thanks. We also saw 0:05:01.480 --> 0:05:04.160 heavy selling in Asia overnight. Let's get the recap from 0:05:04.160 --> 0:05:07.719 Bloomberg's Juliette Sally in Singapore, Good morning, Juliette, Good morning, 0:05:07.800 --> 0:05:10.120 Nathan and Karen. The msci ASA Pacific Index was on 0:05:10.200 --> 0:05:12.080 course for a bear market, a drop of more than 0:05:12.080 --> 0:05:15.520 twenty cent from its February one peak. Japan's nick A 0:05:15.600 --> 0:05:18.000 two to five index had its worst session in a year, 0:05:18.200 --> 0:05:21.159 falling to November twenty twenty levels, Hong Kong stocks falling 0:05:21.160 --> 0:05:24.040 to July twenty sixteen lows. Johina c s I three 0:05:24.120 --> 0:05:26.719 hundred entered further into bear market territory, falling for at 0:05:26.760 --> 0:05:30.080 the fourth straight session. This despite a policy statement from 0:05:30.120 --> 0:05:32.719 the Nashville People's Congress over the weekend which failed to 0:05:32.760 --> 0:05:37.000 offer meaningful support for the market. In Singapore, Juliette Sally, 0:05:37.160 --> 0:05:40.719 Bloomberg Daybreak, juliet thank you as stock shall off more analyst, 0:05:40.760 --> 0:05:43.280 you're downgrading their outlaws for US equities. We get the 0:05:43.320 --> 0:05:45.560 latest four cash live from Bloomberg's or we need a 0:05:45.600 --> 0:05:47.880 young good morning, day to Good morning, Karen. Your Danny 0:05:47.960 --> 0:05:51.520 Research predicts the SNP five will drop another eight percent 0:05:51.640 --> 0:05:53.960 to about four thousand by the end of the year. 0:05:54.360 --> 0:05:57.960 Chief investment strategist ed Yar Danny says a recession cannot 0:05:57.960 --> 0:06:01.280 be ruled out given that jump in oil prices. Every 0:06:01.360 --> 0:06:03.960 Korey s I says the SMP could fall as low 0:06:03.960 --> 0:06:07.680 as thirty seven hundred. Chief equity strategist twullion E Manual 0:06:07.880 --> 0:06:11.520 says that a drop of about fifteen percent from Friday's 0:06:11.560 --> 0:06:14.719 Clothes could trigger action from the Federal Reserve to help 0:06:14.760 --> 0:06:18.359 stabilize markets. Before the war, the media SMP target for 0:06:18.400 --> 0:06:22.040 strategists was around five thousand. Now it's at about forty 0:06:22.120 --> 0:06:26.160 three hundred. Live in New York. I'm Renita Young Bloomberg Daybreak. 0:06:26.240 --> 0:06:28.720 All right, Nita. Thanks. As the war in Ukraine intensifies, 0:06:28.760 --> 0:06:31.599 the list of companies cutting ties with Russia is growing. 0:06:31.680 --> 0:06:36.200 Let's get that from Bloomberg's Lisa Mateo, Netflix, TikTok, Samsung, 0:06:36.279 --> 0:06:39.160 and credit card operators are the latest to either cut 0:06:39.200 --> 0:06:42.680 ties or review their operations in Russia. Netflix, which has 0:06:42.680 --> 0:06:45.600 been available in Russia since two thousand sixteen, has under 0:06:45.600 --> 0:06:48.479 one million customers in the country. Over the weekend. Visa 0:06:48.520 --> 0:06:52.039 and MasterCard also said they were suspending operations in Russia. 0:06:52.120 --> 0:06:54.560 Each gets about four percent of its net revenue from 0:06:54.560 --> 0:06:58.240 business link to Russia, and yesterday American Express said it 0:06:58.360 --> 0:07:02.200 was suspending its operations in USA and Belarus. Lisa Mateo 0:07:02.320 --> 0:07:06.400 Bloomberg Daybreak A Lisa, thank you, SMP futures down down 0:07:06.480 --> 0:07:09.440 seventy six points down, futures down five D seventy nine 0:07:09.440 --> 0:07:12.280 and NASTAC futures are lower by two hundred fifty five points. 0:07:12.280 --> 0:07:15.720 The tenure treasury yield one point seven two. Straight ahead, 0:07:15.720 --> 0:07:18.320 your latest local headlines and the check of sports. This 0:07:18.640 --> 0:07:24.880 is Bloomberg. Sounds six o seven on Wall Street where 0:07:24.960 --> 0:07:27.240 sixty one degrees in Central Park. We had an accident 0:07:27.280 --> 0:07:31.120 in Bedford. It's southbounds at four. Details coming up in traffic. 0:07:31.160 --> 0:07:33.320 First Michael Barr with more on what's going on in 0:07:33.360 --> 0:07:35.280 New York and around the world. Good morning, Michael, Good 0:07:35.280 --> 0:07:38.200 morning Nathan. Former New York Governor and Drew Cuomo appeared 0:07:38.200 --> 0:07:41.120 to be hinting at a political comeback in remarks at 0:07:41.120 --> 0:07:44.480 the Brooklyn Church on Sunday. The Democrats said he acknowledged 0:07:44.520 --> 0:07:47.520 his behavior wasn't appropriate, but to cry the political sharks 0:07:47.520 --> 0:07:52.240 and Albany who use sexual harassment accusations two, in his words, 0:07:52.240 --> 0:07:56.120 effectively overturn and election. Probably no, I've gone through a 0:07:56.160 --> 0:08:00.160 difficult period the past few months. I resigned his even 0:08:00.280 --> 0:08:03.560 or the press roasted me. My colleagues were ridiculed, my 0:08:03.640 --> 0:08:08.640 brother was fired. It was ugly. It was probably the 0:08:08.680 --> 0:08:12.679 toughest time of my life. Cuomo resigned in August, days 0:08:12.800 --> 0:08:16.920 after an independent probe concluded he sexually harassed eleven women. 0:08:17.520 --> 0:08:19.960 It's the next chapter for New York City about the 0:08:20.000 --> 0:08:23.920 COVID pandemic. Starting today, the city is dropping several mandates, 0:08:23.920 --> 0:08:29.400 including masks in schools and vaccination requirements for businesses. Also, today, 0:08:29.440 --> 0:08:33.800 restaurants would no longer ask for proof of vaccination before entering. Meanwhile, 0:08:33.840 --> 0:08:36.640 COVID nineteen deaths are about to hit the six million 0:08:36.679 --> 0:08:40.400 mark in the world. It is another tragic reminder about 0:08:40.440 --> 0:08:44.000 the deadliness of the pandemic. Even as masks are dropping 0:08:44.320 --> 0:08:47.240 and businesses are reopening around the globe, the US is 0:08:47.320 --> 0:08:51.160 nearing one million deaths alone. Vice President Kamala Harris was 0:08:51.200 --> 0:08:54.320 in Solma, Alabama, to mark the anniversary of a defining 0:08:54.320 --> 0:08:57.720 moment in the fight for equal voting rights. On March seven, 0:08:57.960 --> 0:09:02.280 nineteen sixty, white state troopers beat in tear gas black 0:09:02.360 --> 0:09:06.120 voting rights marchers attempting to cross the Edmund Pettis Bridge. 0:09:06.240 --> 0:09:10.079 Harris vowed to push for federal legislation that guarantees voting 0:09:10.160 --> 0:09:16.600 rights across the country. States past anti voting lawns laws 0:09:16.640 --> 0:09:21.040 that banned drop boxes and restrict early voting. Vice President 0:09:21.080 --> 0:09:24.240 Harris says the bravery of those fifties seven years ago 0:09:24.880 --> 0:09:28.480 is a reminder that freedom and democracy can never be 0:09:28.600 --> 0:09:32.080 taken for granted. Seven people are dead after tornado swept 0:09:32.080 --> 0:09:35.280 through central Iowa. Iowa Governor Kim Reynolds talked about the 0:09:35.360 --> 0:09:38.319 hundreds of volunteers who showed up to help. We show up, 0:09:38.679 --> 0:09:40.800 we take care of our family, we take care of 0:09:40.840 --> 0:09:43.920 our neighbors, and we take care of our community. Governor 0:09:43.920 --> 0:09:46.440 Reynolds says the deadly tornado had winds of up to 0:09:46.480 --> 0:09:50.280 one hundred sixty five. Global News twenty four hours a 0:09:50.360 --> 0:09:53.280 day on air and on Bloomberg Quick Tank, powered by 0:09:53.280 --> 0:09:56.000 more than seven hundred journalists and analysts more than a 0:09:56.040 --> 0:09:59.360 hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, 0:09:59.360 --> 0:10:05.800 Thank you, Michael, six on nine on Wall Street time 0:10:05.840 --> 0:10:08.600 for the Bloomberg Sports Update with John Stashwen Nathan Nix 0:10:08.640 --> 0:10:10.680 In l A. They jumped in front of the second quarter. 0:10:10.760 --> 0:10:13.640 I'm scoring the Clippers thirty four to eight. Team. Forgive 0:10:13.760 --> 0:10:16.280 Nick fans if they were not celebrating yet. During this 0:10:16.400 --> 0:10:19.840 stretch of seven straight losses sixteen losses in the last 0:10:19.960 --> 0:10:22.800 nineteen games, Nicks that sizeable leads Seemingly every game, they 0:10:22.880 --> 0:10:25.559 kept blowing the leads. This time they did not. They 0:10:25.559 --> 0:10:29.400 beat the Clippers one three. R. J. Barrett twenty four points, 0:10:29.400 --> 0:10:32.880 Emmanuel Quickley had twenty one. The coach Tom Thibodau from 0:10:32.880 --> 0:10:35.600 the All Star break on we played well in the 0:10:35.640 --> 0:10:38.920 Miami game, we played well. In both Philadelphia games. We 0:10:39.000 --> 0:10:41.160 played well. We don't have anything to show for it. Actually, 0:10:41.200 --> 0:10:45.720 unfortunate part, we didn't close it out right. And tonight 0:10:45.800 --> 0:10:49.440 we played well from start to finish, and so hopefully 0:10:49.440 --> 0:10:51.880 we can build on it and play tonight in Sacramento 0:10:52.000 --> 0:10:54.520 to answered their first two game winning streaking, almost two 0:10:54.520 --> 0:10:57.640 months after the Nets couldn't stop Jason Tatum in Boston. 0:10:57.640 --> 0:10:59.960 He poured in fifty four points. He had thirty four 0:11:00.000 --> 0:11:03.079 in the second half. Red Hot Celtics won one six 0:11:03.320 --> 0:11:05.720 one twenty. They've won fourteen of their last sixteen, while 0:11:05.720 --> 0:11:08.640 the Nets have lost seventheen of their last twenty have 0:11:08.760 --> 0:11:11.720 dropped under five hundred. Kevin Rant led Brooklyn with thirty seven, 0:11:11.720 --> 0:11:15.760 went over twenty five thousand career points, three in NBA 0:11:15.840 --> 0:11:17.800 history to do that. Solid went to the Rangers, two 0:11:17.840 --> 0:11:19.720 goals in the first period, two more in the third. 0:11:19.720 --> 0:11:22.240 They won four one at Winnipeg, pair of goals for 0:11:22.320 --> 0:11:25.000 Chris cry At a numbers thirty seven and thirty eight. 0:11:25.040 --> 0:11:28.080 Baseball players made a concession in an effort to end 0:11:28.080 --> 0:11:30.840 the lockout, giving their blessing to rule changes like a 0:11:30.880 --> 0:11:34.079 pitch clock and a reduction of shifting, but the economic 0:11:34.160 --> 0:11:36.560 issues remained. In fact, MLB says the two sides are 0:11:36.559 --> 0:11:39.840 now further apart another week's worth of regular season games. 0:11:39.960 --> 0:11:43.880 Racis we get cancer, John Statuetward blue Burn sports nap okay, John, 0:11:43.920 --> 0:11:45.960 thanks right now, it's in p Futures are down seventy 0:11:45.960 --> 0:11:49.199 one points down. Futures down five forty one nastack futures 0:11:49.200 --> 0:11:52.400 lower by two hundred forty seven points ten. Your treasury 0:11:52.400 --> 0:11:55.120 little changed at one point seven three percent yield West 0:11:55.120 --> 0:11:58.120 Texas Intermediate crewed up six point one percent a hundred 0:11:58.160 --> 0:12:01.760 twenty two dollars seventies. Sense of barrel. You're listening to 0:12:01.760 --> 0:12:09.000 Bloomberg Day right Blomberg eleven three oh weather increasing cloud 0:12:09.040 --> 0:12:11.880 showers and thunderstorms today with a high near seventy degrees, 0:12:11.920 --> 0:12:15.880 mostly sunny, breezy, cooler tomorrow upper forties for highs mid 0:12:15.920 --> 0:12:24.080 forties by Wednesday. Right now in Central Park Markets, headlines 0:12:24.120 --> 0:12:27.079 and breaking news twenty four hours a day at Bloomberg 0:12:27.160 --> 0:12:30.480 dot com, The Bloomberg Business at and at Bloomberg Quick Take. 0:12:30.760 --> 0:12:40.160 This is a Bloomberg Business slash and I'm Karen Moscow. 0:12:40.200 --> 0:12:43.200 This update, brought to you by Interactive Brokers Global Analysts, 0:12:43.200 --> 0:12:46.240 helps you find new global investment opportunities. To diversify your 0:12:46.280 --> 0:12:50.560 portfolio and discover undervalued companies that may have greater growth potential. 0:12:50.640 --> 0:12:53.599 Try ib k our Global Analysts today at ibk R 0:12:53.720 --> 0:12:57.360 dot com slash g A. Major stock markets from Europe 0:12:57.400 --> 0:12:59.760 to Asia are heading for bear markets, following more than 0:12:59.800 --> 0:13:01.880 two any percent from highs and maid fears of an 0:13:01.880 --> 0:13:05.000 inflation shock is crude oil source on the prospect of 0:13:05.000 --> 0:13:07.600 a ban on Russian supplies. We check the markets every 0:13:07.600 --> 0:13:10.439 fifteen minutes throughout the trading day on Bloomberg S and 0:13:10.480 --> 0:13:13.000 P Future is down about eighty points down Future is 0:13:13.040 --> 0:13:16.240 down five nine five NASDAG Future is down at two 0:13:16.320 --> 0:13:19.599 hundred sixty two. That's down one point nine percent. The 0:13:19.679 --> 0:13:22.079 docks in Germany is down three and a third percent. 0:13:22.120 --> 0:13:24.400 The ten year treasury little change at one point seven 0:13:24.440 --> 0:13:27.120 three percent, yield on the two year one point four 0:13:27.200 --> 0:13:30.120 seven percent. Nine X Scrude oil is at five point 0:13:30.160 --> 0:13:32.439 eight percent, up six dollars seventy cents at a hundred 0:13:32.480 --> 0:13:34.920 twenty two dollars thirty eight cents of barrel co MIxS. 0:13:34.960 --> 0:13:36.960 Gold is at one point nine percent or thirty six 0:13:36.960 --> 0:13:39.920 dollars eighty cents at two thousand three dollars forty cents announced. 0:13:40.280 --> 0:13:42.600 The euro one point eight three one against the dollar, 0:13:42.679 --> 0:13:45.240 British found one point three one four five, The yen 0:13:45.360 --> 0:13:47.960 is at one fifteen point oh six, and Bitcoin this 0:13:48.040 --> 0:13:51.000 morning is moving lower at thirty eight thousand, one hundred 0:13:51.000 --> 0:13:54.000 fifty dollars. That's a Bloomberg business flash. Now here's Michael 0:13:54.000 --> 0:13:56.200 Barr with more on what's going on around the world. 0:13:56.280 --> 0:13:59.920 Michael Karen, thank you very much. President Vladimir Putin. Said again, 0:14:00.080 --> 0:14:04.840 war will continue until Ukraine accepts his demands and halts resistance, 0:14:04.880 --> 0:14:08.560 dimming hopes for a negotiated settlement. Meanwhile, a representative for 0:14:08.679 --> 0:14:11.960 Kiev has urged the United Nations Top Court to order 0:14:12.080 --> 0:14:15.440 Russia to halt. It's a devastating invasion of Ukraine. In 0:14:15.480 --> 0:14:18.000 the NBA the next one, the Celtics beat the Nets 0:14:18.000 --> 0:14:22.080 one twenty. The Wizards won. In the NHL, the Devil's 0:14:22.080 --> 0:14:24.600 beat the Blues and overtime three to the Rangers one. 0:14:25.600 --> 0:14:29.160 Major League Baseball reacted angrily to the latest offer by 0:14:29.240 --> 0:14:33.280 locked out players when bargaining resumed yesterday. Management accused the 0:14:33.400 --> 0:14:36.520 union of backtracking and showing no sign of a breakthrough 0:14:36.800 --> 0:14:40.280 to get the derailed season back on track. Global News 0:14:40.280 --> 0:14:43.480 twenty four hours a day on air and on Bloomberg Quicktake, 0:14:43.760 --> 0:14:46.880 powered by more than twenty seven journalists and analysts more 0:14:46.880 --> 0:14:50.560 than a hundred twenty countries. I'm Michael bar this is Bloomberg, Nathan. 0:14:50.680 --> 0:14:52.800 Thanks Michael. We're coming up to six twenty on Wall 0:14:52.840 --> 0:14:55.960 Street line from the Bloomberg Interacted Broker Studios. This is 0:14:56.000 --> 0:14:59.320 Bloomberg Daybreak and Will Kennedy is with us now. Bloomberg 0:14:59.400 --> 0:15:02.680 News Executive of Editor for Energy and Commodities, as we 0:15:02.720 --> 0:15:06.000 look at this huge rally in oil, natural gas and 0:15:06.040 --> 0:15:09.800 other commodities this morning, will Good morning. When the trading 0:15:09.920 --> 0:15:13.320 started overnight, we saw that big spike just on the 0:15:13.360 --> 0:15:16.760 prospect of the US making a move on Russian oil 0:15:16.800 --> 0:15:19.600 and gas. What's the feeling in the market about where 0:15:19.640 --> 0:15:22.920 these oil prices could go from here? Good morning, make 0:15:23.160 --> 0:15:26.960 thank you for having me. Yes, what happened is that 0:15:27.320 --> 0:15:29.880 sanct you State Anthony Lincoln said yesterday that the US 0:15:30.000 --> 0:15:33.640 was considering an embargo on US oil imports. Now, the 0:15:33.760 --> 0:15:37.400 US itself imports relatively little Russian oil, but I think 0:15:37.400 --> 0:15:39.960 it's making trade is very fearful that this is going 0:15:39.960 --> 0:15:42.200 in one direction, and that a venger countries are likely 0:15:42.240 --> 0:15:47.520 to impose sanctions on Russian energy supplies. And don't forget 0:15:47.560 --> 0:15:51.280 that Russia exports five million bills a day of prude, 0:15:51.280 --> 0:15:53.800 another three million bills a day of oil products. That 0:15:53.840 --> 0:15:56.160 would have a huge impact on the global market. And 0:15:56.200 --> 0:16:00.320 that's what's happened, creating the prospect of considerable under apply 0:16:00.720 --> 0:16:04.400 and that's why we've got this extreme uh spike this morning. 0:16:04.440 --> 0:16:07.040 Now it's come back down a bit, since it still 0:16:07.040 --> 0:16:09.880 remains at very elevated levels of well above a hundred 0:16:09.880 --> 0:16:13.280 and twenty dollars a barrel here in London um. But 0:16:13.680 --> 0:16:17.720 the future to actually really depends on what those sanctions 0:16:17.720 --> 0:16:21.080 and oils look like if they materialize. Even if they 0:16:21.080 --> 0:16:23.960 don't materialize, though, if we have this concern in the 0:16:24.000 --> 0:16:27.520 market that there could be destabilization, does the run up 0:16:27.520 --> 0:16:30.720 in prices sort of become a self fulfilling prophecy. I 0:16:30.720 --> 0:16:33.200 think that's an extremely important point you make, Nathan. What 0:16:33.240 --> 0:16:36.040 we've seen since the Russian invasion of Ukraine is that 0:16:36.120 --> 0:16:37.840 a lot of people in the oil market have been 0:16:37.920 --> 0:16:40.840 very wary of buying Russian at all. And there are 0:16:40.840 --> 0:16:43.840 several reasons for that. Most importantly the prospect of getting 0:16:43.840 --> 0:16:48.760 involved in or embroiled in tougher sanctions. Secondly, there's been 0:16:48.760 --> 0:16:51.320 a reluctance by banks to finance trade in Russian oil. 0:16:51.360 --> 0:16:54.080 And Thirdly, a lot of people think it's inappropriate to 0:16:54.320 --> 0:16:57.360 buy Russian considering what's going on in Ukraine. And you 0:16:57.400 --> 0:16:59.200 put that all together, and we've got somewhat as of 0:16:59.240 --> 0:17:03.320 bias strikes, so we're getting this supply shortfall in any case, 0:17:03.440 --> 0:17:06.560 But as politicians and put the emetric as they say, 0:17:06.600 --> 0:17:10.840 more sanctions are coming, that becomes more acute. At the 0:17:10.880 --> 0:17:14.680 same time, we have seen major oil companies like Shell 0:17:14.720 --> 0:17:18.400 buying Russian oil and pretty steep discounts in the run 0:17:18.480 --> 0:17:22.120 up here that even before sanctions potentially could be put 0:17:22.160 --> 0:17:26.160 in place. When we have Russian oil being being sold 0:17:26.160 --> 0:17:29.880 at a major discount compared to Brent and West excess intermedia, 0:17:29.960 --> 0:17:32.399 what kind of impact does that have. Well, this is 0:17:32.400 --> 0:17:34.919 a very interesting case. Shells that, as you say, they 0:17:34.960 --> 0:17:38.600 bought a cargo and a very steep discount on Friday, 0:17:38.640 --> 0:17:41.359 and that discount exists because there were so few people 0:17:41.440 --> 0:17:44.920 willing to buy Russian oil. The Eules grade, as it's called, 0:17:44.960 --> 0:17:48.159 the main export grade that goes to Europe. There were 0:17:48.240 --> 0:17:51.080 very few bias for Eules and Shell stepped in. But 0:17:51.520 --> 0:17:56.280 what was interesting was the reaction afterwards. The Ukrainian Foreign 0:17:56.280 --> 0:18:00.280 Minister said some very provocative things on Twitter about how 0:18:00.440 --> 0:18:04.359 the oil must smell of blood, and Shell was forced 0:18:04.359 --> 0:18:08.159 to put out two statements afterwards justifying its decision and 0:18:08.240 --> 0:18:11.720 saying that it had been taken in conjunction with after 0:18:11.760 --> 0:18:15.680 consultations with governments. Um I think it may have made 0:18:15.720 --> 0:18:18.960 people wary about buying Russian oil. Um, so there are 0:18:19.000 --> 0:18:21.840 buyers out there, but just how many we'll see later 0:18:21.920 --> 0:18:24.160 today when we look at the latest trades in Russian 0:18:25.359 --> 0:18:27.600 If we are sanctions were to be put in place, 0:18:27.640 --> 0:18:31.080 either by the US or you know, coordinated fashion, what 0:18:31.160 --> 0:18:36.119 kind of reconfiguration of the global supply chain in oil 0:18:36.280 --> 0:18:40.080 could we see? Well, China would probably be buying a 0:18:40.080 --> 0:18:42.000 lot more Russian oil at the moment, I buy some 0:18:42.160 --> 0:18:45.320 food pipeline from Far Eastern terminals, but it would probably 0:18:45.320 --> 0:18:47.800 be shipping more oil all the way from the Black Sea, 0:18:48.240 --> 0:18:52.000 even the Baltic Sea. Likewise, India big oil consumer, so 0:18:52.040 --> 0:18:54.440 you're gonna see You're going to see an Eastwood drift 0:18:54.480 --> 0:18:56.960 in Russian oil and that oil would be have to 0:18:56.960 --> 0:19:00.320 be replaced probably by Europe and the US taking more 0:19:00.320 --> 0:19:03.440 oil in the Middle East. So you would see changes 0:19:03.480 --> 0:19:05.480 in the flows of oil around the world that all 0:19:05.520 --> 0:19:09.680 our sources supply in the Atlantic basin Africa for example, 0:19:09.760 --> 0:19:13.320 but you know globally, supplies all the already very tight 0:19:13.400 --> 0:19:17.119 even before the war in Ukraine, uh, you know outpit 0:19:17.160 --> 0:19:19.720 with having to raise production, auto prices were rising, so 0:19:19.960 --> 0:19:22.440 it's a very difficult situation and that's why you're seeing 0:19:22.440 --> 0:19:26.040 this an enormous volatility and include all prices. Yeah, we're 0:19:26.119 --> 0:19:29.680 certainly watching it play out in real time right now 0:19:29.720 --> 0:19:33.040 with Brent up five point seven percent, a hundred twenty 0:19:33.080 --> 0:19:35.480 four dollars eighty nine cents of barrel in West Texas 0:19:35.520 --> 0:19:40.520 Intermediate right now up six nine. Will Kennedy, our executive 0:19:40.640 --> 0:19:43.520 editor for Energy and Commodities of Bloomberg News, thanks for 0:19:43.560 --> 0:19:47.200 the time this morning. Appreciate the insights. Looking at the 0:19:47.440 --> 0:19:51.480 equity markets, they're falling. Sp futures down sixty three point, 0:19:51.480 --> 0:19:54.560 Staff futures down four one and nastack futures lower by 0:19:54.600 --> 0:19:58.280 two hundred twenty eight points. Little change to the tenure. 0:19:58.280 --> 0:20:01.480 It's at one point seven to yield. You're listening to 0:20:01.520 --> 0:20:09.760 Bloomberg Daybreak Bloomberg eleven three oh weather showers and thunderstorms 0:20:09.760 --> 0:20:12.919 developing today, breezy with a high near seventy. By tomorrow, 0:20:13.000 --> 0:20:15.359 will be in the upper forties under mostly sunny sky, 0:20:15.760 --> 0:20:18.359 clouds in mid forties by Wednesday. Currently sixty one in 0:20:18.440 --> 0:20:25.719 Central Park. Broadcasting live from the Bloomberg Interactive Broker Studio 0:20:25.880 --> 0:20:29.040 in New York. Bloomberg Living Free On to Washington, d C. 0:20:29.240 --> 0:20:33.080 Bloomberg on to Boston, Bloomberg one all six one to 0:20:33.200 --> 0:20:36.880 San Francisco, Bloomberg nine sixty to the country, Sirius XM 0:20:37.000 --> 0:20:39.800 to A one nineteen, and around the globe, the Bloomberg 0:20:39.840 --> 0:20:43.760 Business app and Bloomberg Radio dot com. This is Bloomberg 0:20:43.840 --> 0:20:51.800 Daybreak six thirty on Wall Street. Good morning, I'm Nathan 0:20:51.880 --> 0:20:54.960 Hager and I'm Karen Moscow, and we are just about 0:20:55.080 --> 0:20:57.880 three hours away from the open of US trading time 0:20:57.920 --> 0:21:00.239 for the five things you need to notice start your day. 0:21:00.320 --> 0:21:03.320 Brought to you by Interactive Brokers. Trade crypto for less 0:21:03.359 --> 0:21:06.159 coin with commissions just twelve to eighteen basis points and 0:21:06.240 --> 0:21:09.240 no hidden spreads or markups. Learn more at ibk r 0:21:09.320 --> 0:21:12.399 dot com, slash crypto at first. The latest on the 0:21:12.440 --> 0:21:15.919 war in Ukraine. Russia says is agreed to a ceasefire 0:21:15.960 --> 0:21:19.520 to open up humanitarian corridors in some cities, but Ukraine 0:21:19.560 --> 0:21:23.000 says Moscow is still shooting near the capital Kiev and 0:21:23.080 --> 0:21:25.760 near the port city of Mariopol, where about two hundred 0:21:25.840 --> 0:21:29.080 thousand civilians are trapped. The Mayor of Kiev of Itali 0:21:29.160 --> 0:21:33.680 Klitchko says Ukraine needs more support. We need unity, we 0:21:33.880 --> 0:21:38.920 need Prussia, we need sanctions, we need the weapons support. 0:21:39.440 --> 0:21:41.639 The mayor of Kiev was a guest on ABC's This 0:21:41.760 --> 0:21:44.840 Week or at Sundays on Bloomberg Radio. Well Maytime, Karen 0:21:44.880 --> 0:21:47.480 Global stocks are selling off an oil is soaring on 0:21:47.560 --> 0:21:50.440 the prospect of a ban on Russian supplies. Bloomberg Goose 0:21:50.480 --> 0:21:52.639 has learned the White House is considering whether to prohibit 0:21:52.720 --> 0:21:55.840 Russian oil imports into the US without the participation of 0:21:55.880 --> 0:21:59.680 allies in Europe. Here's California Democratic Congressman Adam Chef, I 0:21:59.720 --> 0:22:02.360 think is very strong by Parsons support to cut off 0:22:02.680 --> 0:22:05.960 Russian oil and gas sales to the United States. It's 0:22:06.000 --> 0:22:08.560 an affaba. I think to many of us in Congress 0:22:08.640 --> 0:22:11.359 that while we were sanctioning them and trying to cripple 0:22:11.400 --> 0:22:13.240 their economy, that we would help them in any way 0:22:13.280 --> 0:22:16.720