WEBVTT - Bloomberg Daybreak: October 11, 2022 - Hour 2 (Radio) 0:00:01.720 --> 0:00:04.800 For the Bloomberg Interact Dave Burgers Studios. This is Bloomberg 0:00:04.880 --> 0:00:08.720 day Break for Tuesday, October eleven two. Coming up this hour, 0:00:09.000 --> 0:00:12.200 stocks drop and yields rise on concerns the Fed will 0:00:12.240 --> 0:00:15.080 remain hawkish. The Bank of England is forced to expand 0:00:15.120 --> 0:00:18.200 its emergency measures to tackle chaos in the bond market. 0:00:18.400 --> 0:00:21.680 The routing chip stocks continues around the world, and G 0:00:21.840 --> 0:00:25.320 seven leaders way their response to Russia's missile barrage on Ukraine. 0:00:25.520 --> 0:00:27.720 The woman has been arrested in the fatal attack on 0:00:27.760 --> 0:00:31.160 a man on a Bronx busts a feisty debate between 0:00:31.200 --> 0:00:34.720 the two Senate candidates in Ohio. I'm Michael lar More Ahead, 0:00:35.080 --> 0:00:38.120 I'm John Stashnoward Sports that Chiefs Rallied the top the Raiders. 0:00:38.159 --> 0:00:40.760 The Yankees begin their playoff series with Cleveland and its 0:00:40.760 --> 0:00:45.720 opening night for the Rangers. That's all s Trady Haad 0:00:45.760 --> 0:00:49.360 on Bloomberg Daybreak on Bloomberg eleven, Free on New York, 0:00:49.520 --> 0:00:54.200 Bloomberg nine one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.480 --> 0:00:58.680 Bloomberg nine sixties and Francisco Sirius x M one nine 0:00:58.680 --> 0:01:01.600 team and around the World. Old on Bloomberg Radio dot 0:01:01.600 --> 0:01:08.320 Com and via the Bloomberg Business. Good morning, I'm Nathan 0:01:08.360 --> 0:01:11.640 Hagar and I'm Farren Moscow and US dot index futures 0:01:11.680 --> 0:01:13.840 are lower this morning. We are coming up to six 0:01:13.840 --> 0:01:15.520 oh one on Wall Street. Let me check the markets 0:01:15.560 --> 0:01:18.640 every fifteen minutes throughout the trading day on Bloomberg. Right now, 0:01:18.760 --> 0:01:21.600 S and P futures are down thirty six points down, 0:01:21.640 --> 0:01:24.320 features down two hundred fifty four and as dack futures 0:01:24.360 --> 0:01:27.600 down one hundred seven and the ten year treasury is 0:01:27.640 --> 0:01:30.480 down eighteen thirty seconds. You three point nine five percent, 0:01:30.560 --> 0:01:32.800 and they yield on the two year four point three 0:01:32.920 --> 0:01:36.360 two percent. Nathan here in this morning's driving futures follows 0:01:36.360 --> 0:01:39.760 four straight losing sessions on Wall Street. This morning, yields 0:01:39.760 --> 0:01:42.400 on two year treasuries are trading at their highest level 0:01:42.440 --> 0:01:45.400 since two thousand seven. Ten year yields are flirting with 0:01:45.440 --> 0:01:48.440 four percent, and the thirty years surge two it's highest 0:01:48.480 --> 0:01:52.880 since Jordans Cohn is chief investment officer at a c 0:01:53.120 --> 0:01:55.640 M Funds. A lot of these areas of the market 0:01:55.720 --> 0:01:58.280 and the fixed income market are really getting colder. Sold 0:01:58.320 --> 0:02:00.920 here come down quite a bit. Are much higher than 0:02:00.960 --> 0:02:03.160 we've seen in years, and so I think as soon 0:02:03.200 --> 0:02:06.160 as the market gets a spense that inflation is peaking 0:02:06.760 --> 0:02:09.399 um and and ten year yields start to stabilize more, 0:02:09.720 --> 0:02:11.040 you know, I think there could be a lot of 0:02:11.040 --> 0:02:13.640 good buying opportunities. But for us, no, we're not going 0:02:13.680 --> 0:02:16.560 to put the part the horse. Jordan Cannad, a CM fund, 0:02:16.600 --> 0:02:20.160 says the mood remains fragile ahead of Thursday's inflation data. 0:02:20.520 --> 0:02:23.079 Well as for equities, Nathan, perhaps the hardest hit sector 0:02:23.120 --> 0:02:25.919 and the recent sell off has been ship stocks. In fact, 0:02:25.919 --> 0:02:28.600 more than two hundred forty billion dollars in market value 0:02:28.600 --> 0:02:31.160 has been wiped out since the White House and posts 0:02:31.200 --> 0:02:34.800 curbs on China's access to semiconductor technology. They get more 0:02:34.880 --> 0:02:38.960 from Bloomberry's Charlie Pellet. The industry sold off globally after 0:02:39.080 --> 0:02:43.840 fresh US curbs on China's access to American technology added 0:02:43.880 --> 0:02:47.720 to a disappointing start to the earning season, stoking concern 0:02:47.840 --> 0:02:51.720 that the industry's downturn is far from over. The Philadelphia 0:02:51.800 --> 0:02:55.239 Stock Exchange Semiconductor Index fell three and a half percent, 0:02:55.600 --> 0:02:59.960 closing at its lowest level since November of the index 0:03:00.080 --> 0:03:03.040 has dropped nearly ten percent over the past three trading 0:03:03.120 --> 0:03:06.480 days and is now down more than forty so far 0:03:06.639 --> 0:03:11.080 this year. In New York, Charlie Pellett Bloomberg, debrit Al Right, Charlie, 0:03:11.120 --> 0:03:13.480 thank you. In the chip sell off continued overnight, leading 0:03:13.480 --> 0:03:16.800 stocks lower in Asia. Let's get that recap from Bloomberg's 0:03:16.840 --> 0:03:19.919 Juliette Sally in Singapore. Good morning, Juliette, Good morning, Nathan 0:03:19.919 --> 0:03:21.919 and Karen. Some of the biggest losses were in chip 0:03:21.960 --> 0:03:25.160 related equities in Japan, South Korea, and Taiwan, where traders 0:03:25.200 --> 0:03:27.480 returned from holidays to join the global sell off in 0:03:27.520 --> 0:03:31.639 semiconductor shares. Taiwan's tie X traded at November twenty twenty 0:03:31.680 --> 0:03:34.280 lows well. T SMC shares fell as much as eight 0:03:34.320 --> 0:03:36.920 and a half percent, the most on record to July 0:03:37.040 --> 0:03:39.960 twenty twenty lows. The yend traded within sight of the 0:03:40.000 --> 0:03:43.280 original level that spurred Japanese authorities to defend the currency 0:03:43.320 --> 0:03:46.160 in September, and the one slid as warri mounts at 0:03:46.200 --> 0:03:49.320 Beijing will uphold its COVID zero policy well after the 0:03:49.400 --> 0:03:53.240 Chinese Communist Party Congress this month. In Singapore, Juliette Sally 0:03:53.320 --> 0:03:56.400 Bloomberg Daybreak Right, Juliet, thanks for all in Europe. This morning, 0:03:56.440 --> 0:03:58.600 the Bank of England has been forced to expand its 0:03:58.640 --> 0:04:02.120 emergency measures. That's in response to chaos in the bond market. 0:04:02.160 --> 0:04:04.000 And we go to London and get the latest from 0:04:04.000 --> 0:04:07.520 Bloomberg's un Pass. Good morning U, Good morning Karen Nathan. 0:04:07.560 --> 0:04:10.080 It's the second time this week the UK Central Bank 0:04:10.120 --> 0:04:12.600 has moved to calm the bond market. This morning, the 0:04:12.600 --> 0:04:15.360 banking and expanded the scope of its guilt purchases to 0:04:15.400 --> 0:04:18.680 include inflation linked debts in an effort to avert what 0:04:18.760 --> 0:04:21.960 it called a fire sale. The intervention comes after a 0:04:22.000 --> 0:04:25.719 severe set off on Monday that saw UK inflation yields 0:04:25.760 --> 0:04:29.040 surging by the most on record. In London, Immune part 0:04:29.080 --> 0:04:31.560 splombog daybreak, All you and thank you. The risk of 0:04:31.560 --> 0:04:34.880 a global recession is now rising thanks to higher rates. 0:04:34.920 --> 0:04:37.320 That's according to both the head of the International Monetary 0:04:37.320 --> 0:04:41.400 Fund and World Bank President David Malpass. There's the risk 0:04:41.480 --> 0:04:44.280 and the real danger of a world recession next year. 0:04:44.520 --> 0:04:48.400 The advanced economies are are slowing in Europe. The debt 0:04:48.480 --> 0:04:52.000 levels for the developing countries are getting more and more burdensome. 0:04:52.279 --> 0:04:55.120 The rise in interest rates puts added weight on it, 0:04:55.440 --> 0:04:58.920 and inflation is still a major problem for for everyone, 0:04:59.000 --> 0:05:01.560 but especially if of the poor. Of those comments from 0:05:01.560 --> 0:05:04.120 World Bank President David Malpass are being echoed by JP 0:05:04.279 --> 0:05:08.200 Morgan's CEO, Jamie Diamond. He says serious headwinds are likely 0:05:08.240 --> 0:05:11.040 to push the U S and global economies into recession 0:05:11.120 --> 0:05:13.680 by the middle of next year. Meantime, Nathan, the Fed 0:05:13.760 --> 0:05:16.640 keeps banging the drum for higher rates still Vice chare 0:05:16.760 --> 0:05:19.520 Lyle Brainer that lays out a case for caution as 0:05:19.520 --> 0:05:22.279 a central bank works to curb inflation in light of 0:05:22.400 --> 0:05:28.200 elevated global economic and financial uncertainty. Moving forward deliberately and 0:05:28.240 --> 0:05:31.080 in a data dependent manner will enable us to learn 0:05:31.120 --> 0:05:34.919 how economic activity, employment, and inflation are adjusting to the 0:05:35.040 --> 0:05:38.680 cumulative tightening in order to inform our assessment of the 0:05:38.720 --> 0:05:41.719 path of the policy rate. Fed Vice chare Lyle Brainer 0:05:41.800 --> 0:05:44.160 made the comments yesterday at a meeting of a National 0:05:44.160 --> 0:05:47.919 Association for Business Economics in Chicago. Well, despite that, caution 0:05:48.000 --> 0:05:50.279 care and it's too early for a FED policy pivot. 0:05:50.320 --> 0:05:53.520 That's according to strategistic Goldman Sachs, who say the economic 0:05:53.520 --> 0:05:56.320 outlook is not bad enough yet and rates markets remain 0:05:56.360 --> 0:05:59.159 too volatile. Economists predict the FED is on track to 0:05:59.200 --> 0:06:02.200 deliver its fourth straight seventy five basis point hike at 0:06:02.240 --> 0:06:05.000 next month's meeting. Now, Nathan, let's go to the latest 0:06:05.000 --> 0:06:07.640 on the war in Ukraine. Russia has launched even more 0:06:07.720 --> 0:06:09.880 strikes in the country, just a day after the most 0:06:09.960 --> 0:06:13.440 intense barrages since the early days of the invasion. President 0:06:13.520 --> 0:06:16.280 Biden will speak with group of seven leaders this morning. 0:06:16.320 --> 0:06:19.479 He's pledging to impose more costs on the Kremlin and 0:06:19.480 --> 0:06:22.520 to keep providing support to Kiev. John Herbs is a 0:06:22.560 --> 0:06:25.800 former US Ambassador to Ukraine and now Senior director of 0:06:25.839 --> 0:06:29.279 the Atlantic Council's Eurasia Center, who's objective is not to 0:06:29.320 --> 0:06:32.520 take a bit of territory Ukraine's east. It is objective 0:06:32.560 --> 0:06:36.520 today is to take political control of Ukraine. As objective tomorrow, 0:06:36.760 --> 0:06:39.039 once he has Ukraine in his pocket is to go 0:06:39.120 --> 0:06:42.560 after other states, including Allen NATO Allas. So he is 0:06:42.600 --> 0:06:45.120 coming for our NATO Allas. We are abound to defend 0:06:45.320 --> 0:06:48.840 with American troops. Former Ambassador to Ukraine John herb spoke 0:06:48.839 --> 0:06:51.919 with our Washington correspondent Joe Matthew on Bloomberg Sound on 0:06:52.240 --> 0:06:55.120 Catch the program weekdays at five pm Eastern on Bloomberg 0:06:55.200 --> 0:06:58.719 Radio and SMP futures right now are down thirty seven points. 0:06:58.800 --> 0:07:01.960 Now Future is down two seventy nastack features are lowered 0:07:01.960 --> 0:07:04.920 by a hundred twelve points, The tenure Treasury is down 0:07:04.960 --> 0:07:07.880 sixteen thirty seconds down, the heel three point nine four percent, 0:07:07.960 --> 0:07:10.480 yield on the two year four point three two percent, 0:07:10.920 --> 0:07:13.400 and nime x scrude is down too and two thirds 0:07:13.480 --> 0:07:16.120 percent at eighty eight dollars seventy one cents a barrel. 0:07:16.440 --> 0:07:19.560 Local headlines in the check off Sports. Next, this is 0:07:19.680 --> 0:07:25.760 Bloomberg six oh seven on Wall Street fifty three degrees 0:07:25.800 --> 0:07:28.680 in Central Park got an accent with the Williamsburg Bridge 0:07:28.680 --> 0:07:31.480 into the city. Details coming up in traffic. First Michael 0:07:31.480 --> 0:07:33.600 Barr with what else is going on in New York 0:07:33.600 --> 0:07:36.000 and around the world. Good morning, Michael, Good morning Nathan. 0:07:36.040 --> 0:07:38.640 A woman was arrested yesterday, And the fatal stabbing of 0:07:38.640 --> 0:07:41.320 a man during an argument aboard and mt A bus 0:07:41.320 --> 0:07:44.440 and the Bronx Lamont Barkley, who was fifty five, is 0:07:44.440 --> 0:07:46.760 the eighth person to be killed in the transit system 0:07:46.800 --> 0:07:50.280 this year. The NYPDS has Barkley gone into a verbal 0:07:50.320 --> 0:07:52.400 dispute with a man and a woman believed to be 0:07:52.560 --> 0:07:56.200 boyfriend and girlfriend on a bus Sunday night. Authorities say 0:07:56.240 --> 0:07:59.520 the argument escalated and the man stabbed Barkley multiple times 0:07:59.520 --> 0:08:02.320 in the stuff. The detectives say forty two year old 0:08:02.320 --> 0:08:05.600 Ebony Jackson was arrested in connection to the stabbing. The 0:08:05.640 --> 0:08:08.080 man is still on the loose. It was a feisty 0:08:08.120 --> 0:08:11.920 debate in Ohio last night between the two Senate candidates. 0:08:12.240 --> 0:08:15.640 Democratic Congressman Tim Ryan and Republican j D. Vans were 0:08:15.680 --> 0:08:19.600 on Next Our Media. President Trump endorsed Vans. He talks 0:08:19.640 --> 0:08:23.000 about wanting to support a stronger border. He talks about 0:08:23.160 --> 0:08:25.840 wanting to be bipartisan and get things Donald. Tim, You've 0:08:25.880 --> 0:08:28.160 been in Congress for twenty years, and the border problem 0:08:28.200 --> 0:08:32.960 has got worse and worse and worse. Ryan on his opponent, JD. Vance, 0:08:34.240 --> 0:08:38.559 raised money for the legal Defense Fund of the insurrectionists. 0:08:38.840 --> 0:08:40.920 This is the kind of extremism, j D that we 0:08:41.000 --> 0:08:43.360 wholly reject. You have video post, don't even try to. 0:08:43.520 --> 0:08:47.200 The race could determine which party controls the US Senate. 0:08:47.600 --> 0:08:51.160 A pro Russia hacker group that has targeted several government 0:08:51.200 --> 0:08:55.840 websites has taken responsibility for coordinated attacks targeting dozens of 0:08:55.960 --> 0:09:00.360 US airports, including LaGuardia. John Holtquist, head of in Religence 0:09:00.360 --> 0:09:04.560 Analysis that cybersecurity firm Mandy And, says kill net has 0:09:04.600 --> 0:09:09.680 been targeting mainly US government websites and other systems globally. Previously, 0:09:09.800 --> 0:09:12.240 they've carried out attacks all over Europe. They carried had 0:09:12.280 --> 0:09:15.800 attacks in Japan. Even so, it's sort of a global problem, 0:09:16.040 --> 0:09:17.800 but you know, a lot of it is. A lot 0:09:17.840 --> 0:09:21.240 of it is tied to the war in Ukraine. John 0:09:21.240 --> 0:09:23.920 old Quist with Mandy And told ABC no flights were 0:09:23.920 --> 0:09:27.160 disrupted as a result of the attacks. The Supreme Court 0:09:27.200 --> 0:09:30.680 will here arguments today over at California animal cruelty law 0:09:30.720 --> 0:09:33.120 that could raise the cost of bacon and other pork 0:09:33.120 --> 0:09:37.600 products nationwide. Involves a California law that says pork sold 0:09:37.640 --> 0:09:41.079 in the state needs to be from pigs treated humanely. 0:09:41.559 --> 0:09:44.679 A majority of unionized railroad workers voted to reject the 0:09:44.720 --> 0:09:48.319 tentative labor agreement brokeren in Park last month by President 0:09:48.400 --> 0:09:51.360 Joe Biden. Global News twenty four hours a day on 0:09:51.480 --> 0:09:54.839 air and on Bloomberg Quicktake, powered by more than twenty 0:09:54.920 --> 0:09:57.840 seven hundred journalists and analysts. More than a hundred twenty countries, 0:09:58.200 --> 0:10:05.520 Michael Barr and this is Bloomberg Nathan. Thanks Michael. Almost 0:10:05.559 --> 0:10:07.520 six cent on Wall Street. Time for the Bloomberg Sports 0:10:07.559 --> 0:10:10.480 Update with John Stashell. All Right, the Mets postseason over 0:10:10.559 --> 0:10:13.400 and now the Yankees postseason, but gets going. Game one 0:10:13.440 --> 0:10:15.880 with Cleveland tonight will be Garrett Cole versus the Guardians 0:10:15.960 --> 0:10:19.440 cal Quantrille. Eighteen years ago. His father, Paul was a 0:10:19.520 --> 0:10:22.440 Yankee reliever, served up the David Ortiz game winning omer 0:10:22.800 --> 0:10:25.360 in Game four the Alcs that began that Red Sox 0:10:25.400 --> 0:10:27.440 come back from three nothing down. Aaron Boone met the 0:10:27.440 --> 0:10:29.840 media yesterday. I was asked if the crowd will be 0:10:29.920 --> 0:10:32.880 like it was when Aaron Judge was chasing Roger Marrick's 0:10:32.920 --> 0:10:36.840 Yankee Stadium in the playoffs. It's gonna be pretty raucous. 0:10:36.920 --> 0:10:39.680 I would imagine tomorrow night, a lot of energy in 0:10:39.679 --> 0:10:43.719 the building, a lot of anticipation, certainly when Aaron's up, 0:10:43.840 --> 0:10:46.560 because it's Aaron Judge and and what he can do. 0:10:46.640 --> 0:10:49.560 But no, I don't think it will be necessarily similar 0:10:49.600 --> 0:10:53.480 to you know, when he was sixties sixty one and 0:10:53.559 --> 0:10:55.559 stuff like that. I think it's gonna be the playoffs. 0:10:55.559 --> 0:10:59.079 Three other division series just that Intra Division Phillies and 0:10:59.120 --> 0:11:02.240 Braves in Atlanta, Mariners and Astros in Houston. Thirty nine 0:11:02.280 --> 0:11:04.920 year old Justin Verlanders starts for the Astros. Out a 0:11:04.960 --> 0:11:07.760 brilliant regular season, Padres and Dodgers in l A. The 0:11:07.800 --> 0:11:10.840 Dodgers won the season series with San Diego fifteen to four. 0:11:11.240 --> 0:11:13.880 The Mets offseason underway. There are a lot of decisions 0:11:13.880 --> 0:11:15.520 to be made. The Mets could have as many as 0:11:15.559 --> 0:11:18.520 ten free agents and the list will include Jacob de Graham, 0:11:18.720 --> 0:11:21.720 Edmund Diaz, and Brandon Nimo. Well. Last saw the Rangers. 0:11:21.720 --> 0:11:24.720 They were losing to Tampa Bay and the Stanley Cupconference 0:11:24.800 --> 0:11:27.199 final Rangers in lightning tonight at the Guard in the 0:11:27.280 --> 0:11:29.839 beginning new season wild Monday Night at a Calf Week 0:11:29.920 --> 0:11:33.679 five Raiders led in Kansas City seventeen nothing back to 0:11:33.800 --> 0:11:36.600 in the Chiefs. Patrick Mahomes and Travis Kelsey hooked up 0:11:36.640 --> 0:11:39.600 for four touchdowns. Raiders scored what looked like the game 0:11:39.640 --> 0:11:41.480 time TV. With four and a half minutes left, they 0:11:41.480 --> 0:11:43.640 went for two. It failed. Chiefs held on to win 0:11:43.800 --> 0:11:47.440 thirty at twenty one. John Stashower Bloomberg Sports, Lincoln Okay, 0:11:47.520 --> 0:11:51.000 John thanks SMP Futures moving lower now down thirty five points, 0:11:51.040 --> 0:11:55.200 about one percent down. Futures sound sixty one, net futures 0:11:55.360 --> 0:11:58.240 lower by a hundred seven points ten. Your treasury now 0:11:58.280 --> 0:12:01.120 down eighteen thirty seconds, the up to three point nine. 0:12:02.240 --> 0:12:09.400 This is Bloomberg Bloomberg eleven three O. Weather sunshine today 0:12:09.400 --> 0:12:12.120 with a high near seventy degrees mostly Sunday. Tomorrow year 0:12:12.160 --> 0:12:16.240 seventy showers, chance for a thundershower Thursday back near seventy 0:12:16.280 --> 0:12:23.120 though right now fifty three in Central Park markets, headlines 0:12:23.160 --> 0:12:26.160 and breaking news twenty four hours a day at Bloomberg 0:12:26.240 --> 0:12:29.600 dot Com, the Bloomberg Business Append at Bloomberg Quick Tape. 0:12:30.160 --> 0:12:39.120 He's a Bloomberg Business flash and I'm kared. Moscow stocks 0:12:39.120 --> 0:12:42.079 are falling, pressured by rising treasury yields and signs that 0:12:42.160 --> 0:12:44.640 company earnings are set to disappoint, a gauge of the 0:12:44.679 --> 0:12:47.000 dollar climbing to the highest this month. And we checked 0:12:47.000 --> 0:12:49.719 the markets every fifteen minutes throughout the trading day. On 0:12:49.840 --> 0:12:53.200 Bloomberg SMP future is down thirty six points, down, features 0:12:53.200 --> 0:12:56.240 down two hundred sixty six and nowsday futures down one 0:12:56.280 --> 0:12:59.719 hundred six. The decks in Germany's down one point. Can 0:12:59.760 --> 0:13:02.440 your Treasury down sixteen thirty seconds. He had three point 0:13:02.600 --> 0:13:05.360 nine four per cent yield on the two year four 0:13:05.400 --> 0:13:08.360 point three too percent nine Max Screwed oil is down 0:13:08.400 --> 0:13:10.559 two and a half percent, down two dollars thirty cents 0:13:10.559 --> 0:13:12.959 at eighty eight dollars eighty four cents of barrel call 0:13:13.040 --> 0:13:14.960 Max schal down a third of per cent, or six 0:13:15.000 --> 0:13:17.680 dollars ten cents a sixty and sixty nine twenty announced 0:13:18.000 --> 0:13:20.680 the euro point nine six nine seven against a dollar 0:13:20.720 --> 0:13:23.199 British found one point one zero three seven and a 0:13:23.320 --> 0:13:26.679 yet five point seven three. And looking at bitcoin, it's 0:13:26.720 --> 0:13:29.920 down nine tenths of a percent at nineteen thousand dollars. 0:13:29.960 --> 0:13:32.439 And that's a bloomberg business flash. Now here's Michael Barr 0:13:32.480 --> 0:13:35.840 with more unless going on around the world. Michael Karen, 0:13:35.880 --> 0:13:38.199 thank you very much. Today and marks four weeks until 0:13:38.240 --> 0:13:41.200 the critical November mid term elections, which will decide which 0:13:41.200 --> 0:13:45.320 party controls Congress. US Senate candidates in Ohio held their 0:13:45.320 --> 0:13:48.319 first debate last night. The U Supreme Court could hear 0:13:48.440 --> 0:13:51.880 arguments in a high stakes case today involving pork. The 0:13:51.960 --> 0:13:55.640 nation's twenty billion dollar pork industry is asking the justices 0:13:55.679 --> 0:13:59.120 to strike down California's Prompt twelve that would ban the 0:13:59.160 --> 0:14:01.960 sale of all work that comes from pigs raised in 0:14:02.040 --> 0:14:04.720 spaces that aren't large enough for them to turn around it. 0:14:05.440 --> 0:14:09.520 In football, the Chiefs meet the Raiders thirty nine in baseball, 0:14:09.640 --> 0:14:12.840 Game one of the a LDS begins tonight. For the Yankees, 0:14:12.880 --> 0:14:16.079 they played the Guardians. The NHL season begins tonight. The 0:14:16.200 --> 0:14:19.480 Rangers take on the Lightning. Global News twenty four hours 0:14:19.480 --> 0:14:22.800 a day on air and on Bloomberg Quicktake, powered by 0:14:22.840 --> 0:14:25.440 more than twenty seven hundred journalists and analysts more than 0:14:25.480 --> 0:14:28.760 a hundred twenty countries. Michael barn this is Bloomberg. Nathan 0:14:28.760 --> 0:14:30.760 all right, Michael, thank you. It his six nineteen on 0:14:30.760 --> 0:14:34.600 Wall Street. Live from the Bloomberg Interactive Brokers studios. This 0:14:34.760 --> 0:14:38.200 is Bloomberg Daybreak, and we continue to follow developments out 0:14:38.280 --> 0:14:43.400 of Ukraine. Russia has launched fresh strikes today in southern 0:14:43.440 --> 0:14:47.840 and eastern parts of Ukraine, the so called annex territory, 0:14:47.880 --> 0:14:50.920 a day after a major barrage, one of the biggest 0:14:51.080 --> 0:14:54.920 barrages since the war began in cities to the north, 0:14:55.040 --> 0:14:58.880 including the capital Kiev. Joining us now is Bloomberg News 0:14:58.880 --> 0:15:01.880 Senior reporter for intern National Affairs, Mark Champion. As we 0:15:01.960 --> 0:15:05.080 continue to follow these developments, Mark, what more can you 0:15:05.080 --> 0:15:10.120 tell us about what's happening today. Well, it's a continuation 0:15:10.160 --> 0:15:15.480 on a lesser scale of what happened yesterday, which, as 0:15:15.480 --> 0:15:18.720 you said, was a massive series of strength in cities 0:15:18.760 --> 0:15:22.120 all across the country. UM. We haven't seen that since 0:15:22.400 --> 0:15:25.280 literally the first day of the war, when you know 0:15:25.640 --> 0:15:27.640 a huge number of missiles we used to take out 0:15:27.680 --> 0:15:31.680 airports around Ukraine. UM. But it's you know what was 0:15:31.760 --> 0:15:36.120 interesting yesterday, are you know appalling? Also yesterday was that 0:15:36.280 --> 0:15:40.160 it was very very clear that the targets were a 0:15:40.240 --> 0:15:47.200 civilians and be civilian infrastructure, power infrastructure in particular. UM. 0:15:47.480 --> 0:15:51.120 And you know this was all in retaliation for a 0:15:51.280 --> 0:15:55.240 Ukrainian attack or you know, alleged Ukrainian attack. They haven't 0:15:55.240 --> 0:16:00.200 actually claimed responsibility on the bridge that Britain built after 0:16:00.240 --> 0:16:03.200 annexing Crime in two thousand and fourteen in order to 0:16:03.200 --> 0:16:06.320 connect it to the Russian mainland. Now we're hearing reports 0:16:06.320 --> 0:16:09.560 as well from Russia that they're planning to continue with 0:16:09.640 --> 0:16:14.960 these infrastructure attacks. When we're thinking about energy and uh, 0:16:15.320 --> 0:16:19.040 civilian infrastructure. What does that say about where this war 0:16:19.240 --> 0:16:23.040 could go? Are these concerns that the Russia might lash 0:16:23.080 --> 0:16:26.800 out as Vladimi reputing is sort of painted into a corner. 0:16:26.840 --> 0:16:30.200 Are they starting to pan out here? Well, it is 0:16:30.200 --> 0:16:34.840 certainly an escalation, uh. And it is you know, an attempt. 0:16:35.240 --> 0:16:38.320 Nationalist critics of the conduct of the war in Russia 0:16:38.760 --> 0:16:44.640 have have long argued that in their kind of you know, discourse, 0:16:44.880 --> 0:16:48.080 Russia to take off the gloves UM and really attack 0:16:48.480 --> 0:16:54.040 UM Ukrainian infrastructure and cities, UM, to bring the country 0:16:54.080 --> 0:16:57.600 to a halt uh and make it difficult both to 0:16:57.640 --> 0:17:00.000 pursue the war but also for people to live their life, 0:17:00.240 --> 0:17:05.679 so that they will essentially knuckle under and put pressure 0:17:05.680 --> 0:17:09.240 on the government to um and the war. That policy 0:17:09.240 --> 0:17:12.160 has been tried by countries before, or war to etcetera. 0:17:13.119 --> 0:17:15.280 Hasn't had a lot of success in the past, and 0:17:15.359 --> 0:17:18.679 it seems rather unlikely that it will again, which is 0:17:18.680 --> 0:17:24.119 why one way in which Western military analysts and the 0:17:24.200 --> 0:17:25.880 West are looking at this is to say, but it's 0:17:25.880 --> 0:17:29.320 really an expression of desperation on the Russian side because 0:17:29.359 --> 0:17:32.520 they have not found a response to Ukraine's gains on 0:17:32.520 --> 0:17:35.639 the battlefield. So this is the way that they have 0:17:35.720 --> 0:17:39.480 to respond. Now, whether that will lead to further escalation, 0:17:40.080 --> 0:17:43.040 UM is clear. But obviously Russia is a power with 0:17:43.240 --> 0:17:46.520 large stock piles of different kinds of weapons of mass destruction, 0:17:46.840 --> 0:17:51.000 including nuclear, so that that possibility is out there. And 0:17:51.119 --> 0:17:55.719 to that point, Ukrainian President Voladimir Zelinski has been calling 0:17:55.800 --> 0:17:59.840 for even more military support from the US and allies, 0:18:00.000 --> 0:18:03.600 including air defense systems. We're getting ready for this G 0:18:03.760 --> 0:18:06.639 seven meeting that's going to be happening later this morning. 0:18:06.880 --> 0:18:11.440 What's the possibility that we could see even more military 0:18:11.520 --> 0:18:15.640 support from the allies coming out of this meeting. Well, 0:18:15.680 --> 0:18:18.760 certainly in terms of air defense. Uh, this that seems 0:18:18.800 --> 0:18:21.959 to be very you know, on the cards. Biden has 0:18:22.000 --> 0:18:26.680 said that he will send more air defense to Ukraine. 0:18:27.160 --> 0:18:29.439 UM and that is probably something that you know, most 0:18:30.520 --> 0:18:33.920 European countries can also get behind, um to the extending 0:18:34.000 --> 0:18:37.359 have air defense systems you know the kind that uh, 0:18:38.080 --> 0:18:41.800 Ukraine needs to spare so that they can send them. UM. Well, 0:18:41.840 --> 0:18:44.040 I think we're likely to see that the Germans have 0:18:44.080 --> 0:18:50.000 sent mobile systems before, which were used during the Ukrainian 0:18:50.000 --> 0:18:53.880 offensive UM and you know on in areas such as tanks, 0:18:53.920 --> 0:18:58.040 and that the Germans have been reticent. So that is uh, 0:18:58.320 --> 0:19:00.960 that's a given really, Um, you know, at the G 0:19:01.119 --> 0:19:03.880 seven itself, it seems lightly we'll we won't see any 0:19:03.880 --> 0:19:08.960 sort of signs of cracks, um you know emerging in 0:19:08.840 --> 0:19:12.600 in terms of support for Ukraine. Um you know, put 0:19:12.600 --> 0:19:15.560 in a clearly calculating that over the longer term, the 0:19:15.600 --> 0:19:20.600 medium term, he can start to drive wedges between different 0:19:21.080 --> 0:19:26.199 UH parts of the alliance that is supporting Ukraine. But 0:19:27.040 --> 0:19:30.000 that's not likely to be instant. All right, Mark as 0:19:30.040 --> 0:19:33.240 always good to get your analysis as we continue to 0:19:33.280 --> 0:19:37.560 watch these developments unfold in Ukraine. Mark Champions, Senior reporter 0:19:37.600 --> 0:19:41.159 for international Affairs for Bloomberg News. Looking ahead to the 0:19:41.200 --> 0:19:44.640 market open, the sell off continues. SMP futures are down 0:19:44.680 --> 0:19:47.439 thirty three points right now, DAL futures are down TT 0:19:47.560 --> 0:19:51.440 four and NAZZAK futures are lower by nine nine points ten. 0:19:51.480 --> 0:19:55.080 Your treasuries down sixteen thirty seconds, the yield three point 0:19:55.200 --> 0:19:58.520 nine four percent, nim X screwed lower by two point 0:19:58.640 --> 0:20:01.280 four percent now to rating at eighty eight dollars nine 0:20:01.680 --> 0:20:07.760 cents of air. All this is Bloomberg Bloomberg eleven three 0:20:07.800 --> 0:20:11.120 oh weather sunny, some apache fog possible overnight. We'll get 0:20:11.160 --> 0:20:13.440 up to near seventy degrees today, mostly sunny, the high 0:20:13.480 --> 0:20:17.120 year seventy again Tomorrow high near seventy Thursday with showers, 0:20:17.119 --> 0:20:23.160 maybe a thundershower possible right now fifty three degrees. Broadcasting 0:20:23.200 --> 0:20:26.920 live from the Bloomberg Interacted Broker's studio in New York, 0:20:27.040 --> 0:20:31.720 Bloomberg E Living free to Washington, d C. Bloomberg to Boston, 0:20:31.800 --> 0:20:35.600 Bloomberg one oh six one, to San Francisco, Bloomberg sixty 0:20:35.760 --> 0:20:39.000 to the Country Sirius XM Chadle one nineteen and around 0:20:39.000 --> 0:20:42.919 the globe to Bloomberg Business APT and Bloomberg Radio dot Com. 0:20:42.960 --> 0:20:52.080 This is Bloomberg Daybreak six thirty on Wall Street. Good morning, 0:20:52.080 --> 0:20:54.879 I'm Nathan Hagar and I'm Karen Moscow, and we're just 0:20:54.960 --> 0:20:57.479 about three hours away from the open of US trading. 0:20:57.520 --> 0:20:59.520 Time to the five things that you need to notice. 0:20:59.560 --> 0:21:03.800 Start your Dave Ronty. You buy interactive brokers. Interactive brokers 0:21:03.880 --> 0:21:05.880 clients are an interest of up to two point five 0:21:05.920 --> 0:21:08.480 eight percent on the idle cash and their brokerage accounts. 0:21:08.720 --> 0:21:11.480 That's just one of the many reasons clients use interactive 0:21:11.520 --> 0:21:15.240 brokers to trade stocks, options, futures, currencies, bonds, funds, crypto 0:21:15.359 --> 0:21:18.320 and more. Visit I pk R dot com slash interest 0:21:18.400 --> 0:21:22.200 rates to learn more. First, US futures are lower yet again. 0:21:22.320 --> 0:21:25.439 Earnings and inflation data will be key this week. Some 0:21:25.520 --> 0:21:29.080 analysts expect a significant earnings drop, but they may not 0:21:29.280 --> 0:21:32.760 come to pass if inflation eases. According to Bloomberg Intelligence 0:21:32.840 --> 0:21:36.240 Chief equity strategist Gina Martin Adams, the reality of the 0:21:36.240 --> 0:21:38.879 earning stream is an inflation has been a big pain 0:21:38.960 --> 0:21:42.520 point for earnings. Revenues have been growing, but margins have 0:21:42.640 --> 0:21:46.280 been contracting amid the rising input cost pressure, even though 0:21:46.320 --> 0:21:48.960 companies have been able to pass on some price increases, 0:21:49.240 --> 0:21:51.960 so we might be somewhat surprised by the degree to 0:21:52.040 --> 0:21:55.280 which to drop an inflation can actually soothe some of 0:21:55.280 --> 0:21:58.720 those margin pressures. Gina Martin Adams of the Bloomberg Intelligence 0:21:58.760 --> 0:22:02.280 says she expects well to earnings confusion to continue into 0:22:02.320 --> 0:22:04.959 the next quarter. Karen Chip stocks have lost more than 0:22:04.960 --> 0:22:08.080 tutor at forty billion dollars in global market value in 0:22:08.200 --> 0:22:10.520 the recent sell off after the White House and post 0:22:10.520 --> 0:22:14.679 curbs on China's access to semiconductor technology. Meantime, even the 0:22:14.680 --> 0:22:17.600 heads of the International Monetary Fund and World Bank weren't 0:22:17.600 --> 0:22:20.800 of rising risks of a global recession, and JP Morgan 0:22:20.920 --> 0:22:24.879 CEO Jamie Diamond is joining in saying serious headwinds could 0:22:24.880 --> 0:22:28.040 push the U S and global economies into recession by 0:22:28.040 --> 0:22:30.720 the middle of next year. Now the FEDS still raising rates, 0:22:30.840 --> 0:22:34.520 but Vice chair Lyle Brainerd's echoing concerns from Diamond, noting 0:22:34.520 --> 0:22:38.040 global tightening could spill back into the US. We're starting 0:22:38.040 --> 0:22:40.480 to see the effect on some sectors, but it's going 0:22:40.520 --> 0:22:43.720 to take some time for that cumulative tightening to transmit 0:22:43.800 --> 0:22:47.000 throughout the economy and for inflation to come down. FED 0:22:47.080 --> 0:22:49.600