WEBVTT - Bloomberg Daybreak: February 16, 2022 - Hour 2 (Radio) 0:00:03.080 --> 0:00:06.359 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:06.440 --> 0:00:11.840 Daybreak for Wednesday, February. Coming up this hour, President Biden 0:00:11.840 --> 0:00:15.600 warns the threat remains that Russia will invade Ukraine. Investors 0:00:15.600 --> 0:00:19.200 await minutes from the fans latest policy meeting. UK inflation 0:00:19.280 --> 0:00:23.080 unexpectedly accelerates for a fourth straight month, and Disney drops 0:00:23.120 --> 0:00:27.040 its mass mandate for a fully vaccinated theme. Podcast Sandy 0:00:27.080 --> 0:00:30.160 Hook families win a settlement with gunmaker Runnington A New 0:00:30.240 --> 0:00:33.680 York state's mask mandate ends today. I'm John Tucker. Those 0:00:33.720 --> 0:00:37.120 stories straight ahead. I'm John Stash Howard Sports. The Rangers 0:00:37.120 --> 0:00:39.600 wanted to shoot at the Islanders and Devils both lost, 0:00:39.640 --> 0:00:44.960 so did the US Olympic hockey team. That's all straight 0:00:45.000 --> 0:00:49.200 ahead on Bloomberg day Break on Bloomberg eleven, Frio, New York, 0:00:49.360 --> 0:00:54.080 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.240 --> 0:00:58.760 Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:59.120 --> 0:01:01.920 and around the world Old on Bloomberg Radio dot Com 0:01:01.960 --> 0:01:08.800 and via The Bloomberg Business. Good Morning, I'm Nathan Hagar 0:01:09.440 --> 0:01:12.720 and I'm Karen Moscow. And futures are lower this morning, 0:01:12.760 --> 0:01:14.960 and we check the markets every fifteen minutes throughout the 0:01:15.000 --> 0:01:18.800 trading day on Bloomberg SMP Future as well. They're little 0:01:18.920 --> 0:01:21.720 change now, but little change to lower down about shoe 0:01:21.840 --> 0:01:24.720 down futures are about the same, down twenty two and 0:01:24.800 --> 0:01:27.640 nasdack futures down eleven right now, the ten year treasury 0:01:27.680 --> 0:01:30.880 up one thirty second hell two point out three percent. Nathan, 0:01:31.000 --> 0:01:32.680 all right, Karen, we'll have more on the markets in 0:01:32.720 --> 0:01:35.199 just a minute. But first, President Biden says a Russian 0:01:35.240 --> 0:01:38.640 attack against Ukraine is still very much a possibility. He's 0:01:38.640 --> 0:01:42.600 warning that sanctions against Russia won't come without pain for Americans. 0:01:42.800 --> 0:01:46.480 Amy Morris has the latest from our Bloomberg newsroom in Washington. 0:01:47.040 --> 0:01:50.760 President Biden says the sanctions envisioned by his administration against 0:01:50.880 --> 0:01:55.200 Moscow would create long term consequences that would undermine Russia's 0:01:55.240 --> 0:01:58.960 ability to compete economically and strategically. So, he says, the 0:01:59.000 --> 0:02:02.000 administration is all so taking steps to alleviate pressure on 0:02:02.200 --> 0:02:07.040 US energy markets and offset rising prices. Russian desizement bade 0:02:07.080 --> 0:02:10.120 that would also have consequences here at home. But the 0:02:10.160 --> 0:02:15.120 American people understand that defending democracy and liberties never without cost. Meanwhile, 0:02:15.160 --> 0:02:17.680 some Ukrainian banking and government websites were hit with a 0:02:17.680 --> 0:02:21.040 denial of service attack. The US has offered to help investigate. 0:02:21.320 --> 0:02:24.920 Russian officials have repeatedly denied any plans to attack Ukraine. 0:02:25.240 --> 0:02:28.280 In Washington, I maybe Morris Bloomberg daybreak, All right, Amy, 0:02:28.320 --> 0:02:31.360 thank you. Meanwhile, a standoff over one of President Biden's 0:02:31.400 --> 0:02:34.000 nominees to the Federal Reserve is putting all of them 0:02:34.000 --> 0:02:37.160 in limbo. Republicans on the Senate Banking Committee are blocking 0:02:37.240 --> 0:02:40.320 Sarah bloom Raskin's confirmation. They say they want to know 0:02:40.440 --> 0:02:43.680 more about a special master account that the Kansas City 0:02:43.680 --> 0:02:47.000 Fed granted to a Colorado based fintech while Raskins served 0:02:47.000 --> 0:02:50.160 on its board. Republican Senator Bill Haggard Ay sits on 0:02:50.200 --> 0:02:52.880 the Banking Committee. The more than thirty five questions where 0:02:52.960 --> 0:02:55.640 her answers provided were blanket. I do not recall or 0:02:55.680 --> 0:02:58.520 I'm not aware in response to questions on this. So 0:02:58.680 --> 0:03:00.360 we have not gotten to the bottom of this, and 0:03:00.400 --> 0:03:02.520 we need more information, and until we do, I'm not 0:03:02.560 --> 0:03:05.359 prepared to vote on her. Tennessee Senator Bill Haggard A 0:03:05.440 --> 0:03:08.639 spoke with our Washington correspondent Joe Matthew on Bloomberg's Sound 0:03:08.680 --> 0:03:11.800 On Catch the program's weekdays at five pm Eastern on 0:03:11.840 --> 0:03:14.320 Bloomberg Radio, Well Karen. The Fed will also be in 0:03:14.360 --> 0:03:17.079 focus today with the release of the minutes from January's 0:03:17.120 --> 0:03:20.400 policy meeting. We get more from Bloomberg's Michael McKee. Tightened 0:03:20.440 --> 0:03:22.960 Fed concern about inflation led to a sell off in 0:03:23.040 --> 0:03:26.120 bonds when the last minutes were released or repeat as possible. 0:03:26.160 --> 0:03:28.600 Investors want to know just how worried the central bankers 0:03:28.600 --> 0:03:31.200 were at their last meeting when they suggested it was 0:03:31.320 --> 0:03:34.760 almost time to raise interest rates. In particular, how far 0:03:35.000 --> 0:03:38.600 and how fast did they anticipate moving bond investors In particular, 0:03:38.640 --> 0:03:40.680 We'll be looking for any details on when and how 0:03:40.760 --> 0:03:44.320 FED officials anticipate shrinking their balance sheet. Kansas City Fed 0:03:44.360 --> 0:03:47.960 President Estra George recently warned the process could be rocky 0:03:48.080 --> 0:03:51.440 for the markets. Michael McKee, Bloomberg Daybreak, Michael, thank you. 0:03:51.480 --> 0:03:53.520 In addition to the Fed minutes, we also get the 0:03:53.520 --> 0:03:56.000 retail sales are poor for the month of January. That's 0:03:56.040 --> 0:03:58.840 coming out later this morning. Meanwhile, in the UK, inflation 0:03:58.920 --> 0:04:01.800 unexpectedly a seller rated for a fourth strade month. They 0:04:01.800 --> 0:04:03.360 go live to London and get the latest of the 0:04:03.360 --> 0:04:07.720 Bloomberg's Max Ramsey, Good Morning, Max, Morning, Karen and Nathan Yes. 0:04:07.760 --> 0:04:10.520 CPI in the year to January came in slightly hotter 0:04:10.560 --> 0:04:13.520 than economists and the Bank of England expected, at five 0:04:13.560 --> 0:04:16.320 and a half percent. It is a new thirty year 0:04:16.440 --> 0:04:19.080 high here in the UK, driven by clothing and footwear, 0:04:19.240 --> 0:04:21.279 and it comes as the UK faces a cost of 0:04:21.320 --> 0:04:24.200 living crisis. Now. The figures raised the stakes for the 0:04:24.240 --> 0:04:27.200 b are and add pressure. Investors are not ruling out 0:04:27.200 --> 0:04:30.320 a fifty basis point hike when they meet in March, 0:04:30.360 --> 0:04:33.920 an unprecedented move since the bo E gained independence back 0:04:34.000 --> 0:04:38.559 in Live in London, Max Ramsey, Bloomberg day Break, Okay, Max, 0:04:38.600 --> 0:04:41.080 thank you. Inflation in Asia is also in focus. The 0:04:41.160 --> 0:04:44.080 latest data out of China show price pressures ease last month, 0:04:44.200 --> 0:04:47.880 but factory gate prices were still elevated. Bloomberg Daybreak Asia 0:04:47.880 --> 0:04:51.120 anchor Brian Curtis has more. The producer price index rose 0:04:51.200 --> 0:04:53.800 nine point one percent from a year earlier. That was 0:04:53.880 --> 0:04:56.440 weaker than the estimate of nine point five percent, and 0:04:56.480 --> 0:04:58.920 it was down from December's reading. And the good news 0:04:58.920 --> 0:05:01.280 for policymakers is that it gives them some more room 0:05:01.320 --> 0:05:04.159 to cut interest rates. China shifted to a pro growth 0:05:04.200 --> 0:05:06.760 bias late last year. That was after the economy was 0:05:06.839 --> 0:05:10.200 hit by virus outbreaks and a slump in the property market. 0:05:10.480 --> 0:05:13.640 Consumer prices grew zero point nine percent last month from 0:05:13.640 --> 0:05:16.080 a year earlier, and that was slower than a projected 0:05:16.080 --> 0:05:20.240 one percent increase. Bryan Curtis, Bloomberg Daybreak, Brian, thank you. 0:05:20.320 --> 0:05:23.240 Turning to the pandemic, Disney is dropping its mask mandate 0:05:23.279 --> 0:05:27.000 for fully vaccinated guests at its US theme parks starting tomorrow. 0:05:27.080 --> 0:05:29.680 Face coverings will be optional both indoors and out at 0:05:29.680 --> 0:05:33.000 Walt disney World in Florida and Disneyland in California. Masks 0:05:33.040 --> 0:05:35.880 will still be mandatory if you're not fully vaccinated. The 0:05:35.960 --> 0:05:38.080 major Wall Street firms are still grappling with how to 0:05:38.080 --> 0:05:40.039 bring employees back to the office as we come out 0:05:40.040 --> 0:05:42.960 of the pandemic. For Goldman Sax CEO David Solomon, he 0:05:43.040 --> 0:05:45.680 says an in person office will always be an important 0:05:45.720 --> 0:05:47.960 part of the bank's identity. We get that story from 0:05:48.000 --> 0:05:51.599 Bloomberg's Charlie Pellace, speaking from the Pivot m I a 0:05:51.720 --> 0:05:55.240 conference in Miami Beach. Solomon said the office was particularly 0:05:55.360 --> 0:05:58.839 valuable for the development of employees in their twenties, who 0:05:58.880 --> 0:06:01.520 make up about half of the firm. He noted that 0:06:01.600 --> 0:06:05.080 Goldman has established a presence in cities across the US, 0:06:05.120 --> 0:06:08.400 including in South Florida, but he said the pandemic will 0:06:08.440 --> 0:06:11.359 not prompt the Wall Street giant to provide jobs that 0:06:11.360 --> 0:06:14.800 can be done from remote locations such as Jackson Hole, 0:06:14.960 --> 0:06:19.680 Wyoming in New York. Charlie Pellet Bloomberg Daybreak, Charlie, thank you. 0:06:19.720 --> 0:06:22.760 As the debate continues on how many days workers should 0:06:22.760 --> 0:06:25.800 spend in the office, Airbnb is looking to capitalize on 0:06:25.880 --> 0:06:29.279 the work from home trend. We spoke with Airbnb CEO 0:06:29.440 --> 0:06:32.080 Brian Sewsky, but we do think more and more people 0:06:32.120 --> 0:06:34.800 are gonna work remotely over the summer with family. They 0:06:34.880 --> 0:06:37.279 might take them somewhere, get a summer rental. But we 0:06:37.320 --> 0:06:39.640 also just think that we're gonna have three day weekends 0:06:39.680 --> 0:06:42.200 a lot more frequently for people where they might work 0:06:42.240 --> 0:06:44.280 from an Airbnb on a Friday or Monday and go 0:06:44.320 --> 0:06:47.919 away for that weekend. Airbnb's Brian Chesky says his company's 0:06:47.920 --> 0:06:50.400 fourth quarter earnings, where it's best ever, shares her up 0:06:50.440 --> 0:06:53.320 more than three percent in early trading. Finally, Karen, we 0:06:53.400 --> 0:06:57.440 have a new big money maker on campus. Stanford University 0:06:57.480 --> 0:07:00.360 has edged out Harvard as the country's biggest college, Andrey's 0:07:00.360 --> 0:07:03.160 here at the California Institution raised one point three nine 0:07:03.200 --> 0:07:06.159 billion dollars last fiscal year. That was about ten million 0:07:06.240 --> 0:07:08.680 more than Harvard. They were the only two schools that 0:07:08.800 --> 0:07:11.720 raked in more than a billion. Rising stock markets helped 0:07:11.840 --> 0:07:15.200 drive the donations last year. Markets are moving a touch 0:07:15.280 --> 0:07:17.880 lower this morning, straight ahead local headlines in the check 0:07:17.880 --> 0:07:23.960 of sports. This is Bloomberg and it's now six o 0:07:24.080 --> 0:07:26.200 seven on All Street where thirty degrees in Central Park. 0:07:26.240 --> 0:07:29.520 The Sunrise Highways closed both ways. John Tuckers here with 0:07:29.560 --> 0:07:31.120 more on what's going on in New York and around 0:07:31.160 --> 0:07:33.640 the world. John, and good morning, Nathan. Yeah, it's a 0:07:33.720 --> 0:07:36.960 fiery crash this morning that has closed the Sunrise Highway. 0:07:37.240 --> 0:07:40.560 A tanker truck reportedly ran into a nearby storefront and 0:07:40.680 --> 0:07:45.000 exploded flame sprint to as many as eight stores. Starting 0:07:45.040 --> 0:07:47.320 today in New York, State will end its requirement that 0:07:47.400 --> 0:07:51.120 people entering businesses must wear masks or show proof of 0:07:51.200 --> 0:07:54.640 full vaccination. New York City mass are still required at 0:07:54.680 --> 0:07:58.600 schools and healthcare facilities, owners of stores, restaurants, theaters, or 0:07:58.640 --> 0:08:03.560 other public spaces can still require face coverings. Remington Arms 0:08:03.600 --> 0:08:06.080 will pay seventy three million dollars to families who lost 0:08:06.160 --> 0:08:09.280 loved ones in the Sandy Hook Elementary school shooting. More 0:08:09.320 --> 0:08:12.960 in the story and the Landmarks settlement from Bloomberg's Jeff Bellinger. 0:08:13.600 --> 0:08:15.600 It is a settlement that could open the door to 0:08:15.760 --> 0:08:19.600 more lawsuits seeking to hold gun companies liable for mass shootings. 0:08:19.800 --> 0:08:22.760 The money will be divided among nine families who lost 0:08:22.800 --> 0:08:25.960 loved ones in the twenty twelve shooting in Newtown, Connecticut, 0:08:26.040 --> 0:08:29.720 that left twenty children and six staff members dead. Remington 0:08:29.840 --> 0:08:33.040 did not admit liability in the settlement. Adam Lanza, the 0:08:33.080 --> 0:08:35.640 twenty year old Sandy Hook gunman, used an a R 0:08:35.720 --> 0:08:39.560 fifteen style rifle made by Bushmaster, a company that was 0:08:39.600 --> 0:08:43.960 owned by Remington. Jeff Bellinger, Bloomberg day Break Boeing seven 0:08:43.960 --> 0:08:47.720 eighties seven Dreamliners suffered a new blow. US regulators say 0:08:47.760 --> 0:08:52.120 they'll step up inspections of each jet before delivery, since 0:08:53.000 --> 0:08:56.800 the companies grappled with structural glitches that turned its popular 0:08:56.800 --> 0:08:59.679 wide body jet into a drain on cash. More than 0:08:59.760 --> 0:09:02.200 one under ten of the carbon fiber aircraft have been 0:09:02.240 --> 0:09:06.280 built but left undelivered while the issues are resolved, and 0:09:06.320 --> 0:09:09.560 the York Democratic Representative Kathleen Rice says she won't run 0:09:09.600 --> 0:09:12.960 for re election after nearly eight years in office. The 0:09:13.000 --> 0:09:16.320 fifty seven year old Rice, who represents parts of Long Island, 0:09:16.440 --> 0:09:19.360 didn't say what she planned to do next. She joins 0:09:19.440 --> 0:09:21.800 dozens of her colleagues that are retiring or running for 0:09:21.840 --> 0:09:24.920 other public office ahead of the twenty twenty two mid 0:09:25.040 --> 0:09:28.520 term elections, where Democrats of here they could lose control 0:09:28.760 --> 0:09:32.640 of the House and New Jersey betters they wagered a 0:09:32.760 --> 0:09:37.440 record onety three point seven million dollars on the Super Bowl. 0:09:37.760 --> 0:09:41.680 That's up from the prior year, even with bets being 0:09:41.679 --> 0:09:44.480 taken in neighboring New York. For the first time, sports 0:09:44.520 --> 0:09:47.440 betting is exploded across the U s. Sence the Supreme 0:09:47.440 --> 0:09:50.520 Court allowed states outside of Nevada to offer it. In 0:09:51.360 --> 0:09:55.360 eighteen and Global News twenty four hours a day on 0:09:55.440 --> 0:09:57.760 air hand on Bloomberg Quicktake. We're powered by more than 0:09:57.760 --> 0:10:00.480 twenty seven hundred journalists and analysts in more than one 0:10:00.520 --> 0:10:04.920 hundred twenty countries. I'm John Tucker is Bloomberg. Nathan. Thanks John. 0:10:09.360 --> 0:10:11.280 Almost six ten on Wall Street tim for the Bloomberg 0:10:11.320 --> 0:10:13.320 Sports upthing with john Ston John May you think ever? 0:10:13.480 --> 0:10:16.840 The hockey shootouts Rangers and Bruins at the Garden US 0:10:16.960 --> 0:10:19.800 and Slovakia and Beijang Rangers one there as they scored 0:10:19.840 --> 0:10:21.760 on their first two attempts at the shoot album makers 0:10:21.760 --> 0:10:23.960 advantage and then r Timmy Finner and then six straight 0:10:24.080 --> 0:10:27.520 misses before ki Andre Miller scored, given the Rangers of 0:10:27.600 --> 0:10:30.000 two thrilling to the one win their first gave me 0:10:30.040 --> 0:10:32.600 two weeks at the Olympics, US led to one final 0:10:32.679 --> 0:10:36.480 minutes scene ready to advance in the semifinals. Slovakia scored 0:10:36.520 --> 0:10:38.480 in the U s went over five and the shootout 0:10:38.720 --> 0:10:41.719 gets eliminated after going three and oh on the preliminary rout. 0:10:41.800 --> 0:10:44.760 After the NHL Islanders of Devils both lost by the 0:10:44.840 --> 0:10:46.960 same six to three score. Both gave up three goals 0:10:46.960 --> 0:10:49.400 in the third period of the Isles in Buffalo, the 0:10:49.440 --> 0:10:52.240 Saves Sabers scored three times in the last three minutes. 0:10:52.640 --> 0:10:54.800 Devil's Blue a three one League felt to Tampa Bay. 0:10:54.840 --> 0:10:57.760 Also last night, Sidney Crosby careers gold under five hundred 0:10:58.000 --> 0:11:00.400 for Pittsburgh and NBA blowout read odd Cell thinks one 0:11:00.400 --> 0:11:04.040 than a night that a row in Philadelphia by James 0:11:04.040 --> 0:11:06.200 Harden watched from the Philly bench. He has an injured 0:11:06.240 --> 0:11:09.160 Answering said he was happy to leave Brooklyn. Harden was 0:11:09.200 --> 0:11:12.920 asked about playing with Kyrie Irving, who had has refused 0:11:12.960 --> 0:11:15.840 to get vaccinated, only recently started playing and only in 0:11:15.960 --> 0:11:21.880 road Gamesman car really good friends. Uh, you know, whatever 0:11:21.880 --> 0:11:24.360 he is going through, he is still going through as 0:11:24.400 --> 0:11:27.600 his personal preference. But it definitely didn't impact the team 0:11:27.679 --> 0:11:30.959 because originally, you know, obviously me, Kyrie and Katie on 0:11:31.040 --> 0:11:34.120 the court, you know, and winning covers up a lot 0:11:34.120 --> 0:11:36.360 of that. Net's play a road game tonight, but it's 0:11:36.360 --> 0:11:38.880 in New York against the next vaccine mandate, means wherever 0:11:38.960 --> 0:11:41.200 he can't play college hoops. Fordham lost other win for 0:11:41.240 --> 0:11:44.520 Iona the one Olympic disappointment in hockey, but the US 0:11:44.559 --> 0:11:48.200 one gold and silver freestyle ski johns Cash Etward Bloomberg 0:11:48.240 --> 0:11:51.640 Sports all right, John, Thanks. Futures down two tenths per 0:11:51.640 --> 0:11:54.520 cent across the board of SMP. Futures down seven points down, 0:11:54.600 --> 0:11:57.760 Futures down sixty three. Nastic features are lower by twenty 0:11:58.000 --> 0:12:01.800 five points ten. Your treasury yield two point zero three percent. 0:12:02.080 --> 0:12:08.920 This is Bloomberg Bloomberg eleven three oh weather increasing clouds 0:12:09.000 --> 0:12:11.599 up for forties today, Late day showers possible tomorrow with 0:12:11.640 --> 0:12:14.840 the high near sixty early high Friday in the mid fifties. 0:12:14.840 --> 0:12:17.880 Temperatures will fall through the day Right now twenty nine 0:12:17.920 --> 0:12:24.880 in Central Park markets, headlines and breaking news twenty four 0:12:24.880 --> 0:12:27.920 hours a day at Bloomberg dot Com, the Bloomberg Business 0:12:27.960 --> 0:12:31.600 Out and at Bloomberg Quick Tape He's a Bloomberg Business 0:12:31.640 --> 0:12:40.240 Flash and I'm para in Moscow. And the global stock 0:12:40.360 --> 0:12:43.600 rally is stalling as traders struggle to evaluate the risk 0:12:43.640 --> 0:12:46.480 of geopolitical tension in Ukraine and the impact of rising 0:12:46.520 --> 0:12:50.280 inflation on central bank policies. US dot indext futures are 0:12:50.360 --> 0:12:52.760 lower and we check the markets every fifteen minutes throughout 0:12:52.760 --> 0:12:55.760 the trading day on Bloomberg Guess and P futures down 0:12:55.920 --> 0:12:59.200 about eight points down, futures down sixties six, NASDACK futures 0:12:59.200 --> 0:13:02.040 down twenty the decks in Germany as it will change, 0:13:02.040 --> 0:13:04.280 the ten year treasury up one thirty second yell two 0:13:04.320 --> 0:13:07.040 point oh three set yield on the two year one 0:13:07.080 --> 0:13:09.960 point five six per cent. NIMEX screwed oil is up 0:13:09.960 --> 0:13:12.200 eight ten percent or seventy three cents at ninety two 0:13:12.240 --> 0:13:15.120 dollars eighty cents in barrel comic School. That will change 0:13:15.120 --> 0:13:18.160 in eighteen fifty six thirty ounce, the euro one point 0:13:18.160 --> 0:13:20.679 one three seven seven against the dollar, British pound one 0:13:20.679 --> 0:13:23.319 point three five six seven, the ends in one fifteen 0:13:23.360 --> 0:13:27.160 point six nine, and Bitcoin movement higher at forty four thousand, 0:13:27.160 --> 0:13:30.440 two hundred dollars. And that's a Bloomberg business flash. Now 0:13:30.480 --> 0:13:33.240 here's John Tucker with more on what's going on around 0:13:33.240 --> 0:13:36.240 the world. John and Morning Karen. President Biden says it's 0:13:36.240 --> 0:13:40.200 still possible Russia will invade Ukraine because it's troops remain 0:13:40.240 --> 0:13:43.600 at what he calls a threatening position. Well, Disney is 0:13:43.679 --> 0:13:47.040 dropping a masked mandate tomorrow for fully vaccinated gas to 0:13:47.120 --> 0:13:50.960 its theme parks in the United States. In US, regulators 0:13:51.000 --> 0:13:54.640 say they'll stamp up inspections of every Bowing seven eighty 0:13:54.720 --> 0:13:59.280 seven Dreamliner before delivery. Sports, the Rangers beat the Bruins 0:13:59.280 --> 0:14:02.280 in the Shoe nowt The Islanders and Devils both lose. 0:14:02.440 --> 0:14:06.120 The Capital's win and the Penguins Sydney Crosby scores is 0:14:06.320 --> 0:14:10.280 five NHL goal Basketball, the Celtics beat the seventies six 0:14:10.400 --> 0:14:13.320 ers by forty eight points. Global news twenty four hours 0:14:13.360 --> 0:14:16.120 a day on irund on Bloomberg Quickday Power by more 0:14:16.160 --> 0:14:19.080 than twenty seven hundred journalists and analysts it more than 0:14:19.160 --> 0:14:22.440 one hundred twenty countries on John Tucker did He's Bloomberg? 0:14:22.520 --> 0:14:25.320 Nathan Okay? John? Thanks at six nineteen on Wall Street 0:14:25.320 --> 0:14:28.320 Line from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:14:28.440 --> 0:14:30.760 Daybreak and Tracy McMillian is with us now. She's head 0:14:30.800 --> 0:14:35.360 of Global Asset Allocation Strategy at Wells Fargo Investment Institute. Tracy, 0:14:35.440 --> 0:14:37.760 it's great to have you with us this morning. Although 0:14:37.800 --> 0:14:41.040 the market seemed to be focused on geopolitical risk right now, 0:14:41.040 --> 0:14:45.000 with futures slightly lower and headlines continuing to come down, 0:14:45.480 --> 0:14:49.040 where do you see these markets shaking out here? Do 0:14:49.120 --> 0:14:52.120 we have more risk premium to be priced in to 0:14:52.200 --> 0:14:57.680 come well? Thank you for having me this morning, Nathan. Yes, 0:14:57.840 --> 0:15:01.920 we you know, we're seeing inflation and geopolitical events both 0:15:02.040 --> 0:15:06.040 driving market volatility this week. But you know, earnings have 0:15:06.160 --> 0:15:10.000 come in very strong this quarter and we do think 0:15:10.120 --> 0:15:14.880 that you know, that is going to underpin some higher 0:15:14.920 --> 0:15:19.360 equity prices probably later in the year. But today investors 0:15:19.400 --> 0:15:21.760 are going to be watching retail sales and they're going 0:15:21.800 --> 0:15:25.400 to be watching for the FED minutes, UM for any 0:15:25.480 --> 0:15:31.880 signs that uh, you know, retail sales maybe uh weaker 0:15:31.880 --> 0:15:35.520 than expected. They're um, you know, expected to come in 0:15:36.080 --> 0:15:39.880 with a bit more strength than what we saw last month, 0:15:39.960 --> 0:15:44.400 but you know, m because consumer sentiment is deteriorating, and 0:15:44.480 --> 0:15:49.040 disposable income um has also been uh coming in a 0:15:49.040 --> 0:15:53.200 bit lower. That is possibly gonna set us up for 0:15:53.520 --> 0:15:56.680 a disappointment and retail sale. So you know, retail sales 0:15:56.760 --> 0:15:59.440 FED minutes are the things we think investors will be 0:15:59.440 --> 0:16:02.320 watching too. How do you think the FED will react 0:16:02.560 --> 0:16:05.840 to those latest data points? So obviously we got the 0:16:06.160 --> 0:16:09.360 much higher than expected producer prices yesterday, and if we 0:16:09.440 --> 0:16:12.600 do see weakness and retail sales, could that be something 0:16:12.600 --> 0:16:15.120 that moves the FED to become even more aggressive than 0:16:15.160 --> 0:16:19.840 markets are pricing in right now. Yeah, we we do 0:16:20.000 --> 0:16:24.440 think that because the Fed has seen upside surprises in 0:16:24.600 --> 0:16:28.280 both of their mandates, that does perhaps put it on 0:16:28.320 --> 0:16:31.400 a more aggressive path this year. Um. But you know, 0:16:31.480 --> 0:16:34.840 the SAD doesn't want to surprise the markets, and credit 0:16:34.880 --> 0:16:38.200 markets so far been pretty well behaved. And they don't 0:16:38.240 --> 0:16:41.680 want to risk a major disruption there. So, you know, 0:16:41.720 --> 0:16:45.200 if the SET is going to raise interest rates by 0:16:45.240 --> 0:16:49.040 fifty basis points, then we think they're gonna have to 0:16:49.080 --> 0:16:52.520 start communicating that pretty soon. And we really haven't seen 0:16:52.640 --> 0:16:55.320 the FED governors come out to nor have we seen 0:16:55.520 --> 0:16:59.800 Powell or Brainerd starting to signal a fifty basis point 0:16:59.800 --> 0:17:03.280 in prease. But if we do hear, you know, anything 0:17:03.920 --> 0:17:07.400 from the governors or Powell or brainer then we need 0:17:07.440 --> 0:17:10.960 to start taking that fifty basis points pretty seriously. So 0:17:11.000 --> 0:17:13.600 what's your conviction on what the FED could do at 0:17:13.600 --> 0:17:16.200 the March meeting? Do you have conviction at this point 0:17:16.320 --> 0:17:19.320 on whether the Fed's gonna stick with twenty five or 0:17:19.480 --> 0:17:23.560 or could they go to fifty. So we think that 0:17:23.640 --> 0:17:26.160 the Fed is probably going to stick to fifty five 0:17:26.240 --> 0:17:31.399 in March again, unless they start preparing markets almost immediately. 0:17:31.640 --> 0:17:36.600 And because we really haven't heard that um coming from uh, 0:17:36.760 --> 0:17:39.840 the top level of the FED yet, we're we're sticking 0:17:39.840 --> 0:17:43.720 with twenty five for now. Okay, In terms of earnings, 0:17:43.760 --> 0:17:48.000 do you think of earnings can continue to underpin valuations 0:17:48.040 --> 0:17:54.159 even with a less accommodative central bank? So earnings, like 0:17:54.200 --> 0:17:56.879 I said, are coming in really strong this quarter, about 0:17:57.000 --> 0:18:00.280 up about twent We think that's going to model rate 0:18:00.400 --> 0:18:04.240 down to about five to ten percent this year, but 0:18:04.400 --> 0:18:08.359 we do think that will be enough to underpin higher 0:18:08.400 --> 0:18:10.800 prices by the end of the year. We think that 0:18:11.200 --> 0:18:14.399 UM by year end, the S and P five hundred 0:18:14.480 --> 0:18:17.800 should see about two hundred and thirty five per share 0:18:18.080 --> 0:18:21.560 and earnings UM, and we think that that's good upside 0:18:21.680 --> 0:18:24.960 from here. So, you know, we're telling investors to take 0:18:24.960 --> 0:18:29.600 advantage of any significant weakness and markets that we might see. 0:18:29.920 --> 0:18:33.240 You know, as we are dealing with UM, a change 0:18:33.240 --> 0:18:37.920 in sad policy and geopolitical events that are spooking investors. 0:18:38.200 --> 0:18:39.960 So in a last minute here, does that mean that 0:18:40.040 --> 0:18:42.680 make a cap tech stocks still look attractive? Are you 0:18:42.760 --> 0:18:48.200 looking for further rotation into value? So we do continue 0:18:48.240 --> 0:18:52.560 to like technology UM. We are moving up in quality 0:18:52.760 --> 0:18:57.960 and we feel like technology companies are still generally posting 0:18:58.040 --> 0:19:01.879 high quality earnings UM. We think that higher rates in 0:19:02.040 --> 0:19:05.639 technology stocks are are probably pretty priced in by this 0:19:05.840 --> 0:19:09.880 point and we don't see rates going a lot higher 0:19:09.960 --> 0:19:13.200 from where they are. So we we do think that UM. 0:19:13.240 --> 0:19:16.919 You know, as companies continue to digitalize and try to 0:19:17.000 --> 0:19:21.400 improve productivity, in the face of labor shortages. That technology 0:19:21.440 --> 0:19:24.520 is an interesting space for us. Good to get your 0:19:24.520 --> 0:19:26.679 thoughts this morning, Tracy, Thanks again for being with us. 0:19:26.720 --> 0:19:30.960 Tracy McMillian is ahead of global asset allocation at Wells 0:19:30.960 --> 0:19:35.280 Fargo Investment Institute. Looking at the markets right now, I 0:19:35.280 --> 0:19:37.960 think we can call it jittery. SMP futures are down 0:19:38.000 --> 0:19:41.000 six points, staff features down sixty two, NASTAC futures lower 0:19:41.080 --> 0:19:44.679 by thirteen points, the tenure treasury up one thirty seconds, 0:19:44.680 --> 0:19:47.480 with the yield close to two point zero four percent. 0:19:47.880 --> 0:19:50.399 Yield on the two year one point five six as 0:19:50.440 --> 0:19:54.440 investors continue to watch headlines on the Ukraine standoff as 0:19:54.480 --> 0:19:57.320 well as waiting the release of the retail sales figures 0:19:57.359 --> 0:19:59.359 coming out in just a couple hours, and of course 0:19:59.440 --> 0:20:02.960 those fed January minutes stay with us for more. This 0:20:03.560 --> 0:20:09.480 is Bloomberg Bloomberg eleven three oh Weather clouds will increase 0:20:09.520 --> 0:20:12.320 with eyes in the upper forties today, upper fifth east tomorrow, 0:20:12.320 --> 0:20:15.160 with late day showers early high in the mid fifthiaest 0:20:15.160 --> 0:20:17.479 Friday of the temperatures will fall through the day. Right 0:20:17.480 --> 0:20:23.639 now twenty nine in Central Park, broadcasting live from the 0:20:23.760 --> 0:20:27.720 Bloomberg Interactive Broker studio in New York, Bloomberg E Looving 0:20:27.800 --> 0:20:32.320 Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one 0:20:32.359 --> 0:20:35.560 O six one to San Francisco, Bloomberg nine sixty to 0:20:35.600 --> 0:20:38.679 the Country, Sirius XM to the one ninet and around 0:20:38.720 --> 0:20:42.639 the globe the Bloomberg Business app and Bloomberg Radio dot Com. 0:20:42.720 --> 0:20:51.160 This is Bloomberg Daybreak and at six thirty on Wall Street. 0:20:51.160 --> 0:20:54.080 Good morning. I'm Nathan Hager and I'm Karen Moscow, and 0:20:54.119 --> 0:20:56.359 we are just about three hours away from the open 0:20:56.359 --> 0:20:58.840 of US trading. Time for the five Things you need 0:20:58.920 --> 0:21:01.320 to know to start your day, brought to you by 0:21:01.480 --> 0:21:04.960 Interact your Brokers Global Analysts. Global Analysts helps you find 0:21:04.960 --> 0:21:09.320 new global investment opportunities to diversify your portfolio and discover 0:21:09.480 --> 0:21:13.320 undervalued companies that may have greater growth potential. Try ib 0:21:13.440 --> 0:21:15.880 k our Global Analysts today at ib k R dot 0:21:15.920 --> 0:21:19.879 com slash g At first, the situation in Ukraine remains 0:21:19.920 --> 0:21:23.280 front and center this morning. President Biden says it's not 0:21:23.480 --> 0:21:27.040 verified that Russia's pulled troops back from the border with Ukraine, 0:21:27.240 --> 0:21:30.720 and Bloomberg's and Baxter has the story. President Biden says, 0:21:30.760 --> 0:21:33.600 so far, intelligence is not showing it, and the fact 0:21:33.640 --> 0:21:36.040 remains right now, Russia has more than a hundred and 0:21:36.080 --> 0:21:41.399 fifty thousand troops and circling Ukraine and Belarus along Ukraine's border. 0:21:41.880 --> 0:21:46.040 An invasion remains distinctly possibly. Biden says if that happens, 0:21:46.119 --> 0:21:49.639 russiall be held responsible globally for death and destruction. He 0:21:49.720 --> 0:21:52.800 says sanctioned packages are in place and that the overriding 0:21:52.800 --> 0:21:55.800 issue that governments have is the right to plot their 0:21:55.800 --> 0:21:59.760 own destinies. In San Francisco, I'm at Baxter Bloomberg Gay break, 0:22:00.000 --> 0:22:02.520 all right, thank you. Meantime, there's a standoff on Capitol 0:22:02.600 --> 0:22:06.280 Hill over President Biden's Federal Reserve nominees. Republicans on the 0:22:06.320 --> 0:22:09.600 Senate Banking Committee have questions for one of them, Sarah 0:22:09.640 --> 0:22:12.400 bloom Raskin, and her role on the board of a fintech. 0:22:12.800 --> 0:22:16.520 Raskin is the President's picked for FED Vice Chair for supervision. Well, 0:22:16.560 --> 0:22:19.560 this afternoon, Nathan, the FED releases minutes of januaries meeting 0:22:19.600 --> 0:22:23.360 on monetary policy. We get the story from Bloomberry's Vinidale Judais. 0:22:23.480 --> 0:22:26.920 Bloomberg Economics says the minutes could reveal whether the FED 0:22:27.040 --> 0:22:29.800 has an appetite for a half point March rate increased 0:22:29.800 --> 0:22:33.880 the battle inflation. Such sentiment could explain hawkish comments by 0:22:33.880 --> 0:22:38.960 FED chairs Rome Powell following January's policy meeting. Recent speeches 0:22:39.000 --> 0:22:42.520 by FED officials have also been hawkish and signal central 0:22:42.560 --> 0:22:46.399 bankers are open to aggressive action. With inflation running at 0:22:46.440 --> 0:22:50.200 the fastest patents to early nineteen eighties, The FEDS March 0:22:50.280 --> 0:22:53.480 meeting is set for the fifteenth and sixteenth Vinnie delle 0:22:53.560 --> 0:22:56.200