WEBVTT - Bloomberg Daybreak: February 23, 2022 - Hour 2 (Radio) 0:00:01.360 --> 0:00:04.080 Live from the Bloomberg in Director Burger Studios. This is 0:00:04.120 --> 0:00:08.760 Bloomberg day Break for Wednesday, February two. Coming up this hour, 0:00:08.960 --> 0:00:12.360 President Biden's first round of Russia sanctions hits the markets 0:00:12.440 --> 0:00:15.720 with a whimper. SMP future Stage a comeback after falling 0:00:15.760 --> 0:00:19.479 into correction Territory, a shift in the pandemic. Apple drops 0:00:19.480 --> 0:00:23.120 its mass requirement at most retail stores, and Barklays posts 0:00:23.120 --> 0:00:26.279 its highest annual profit on record. New York State is 0:00:26.280 --> 0:00:29.400 an investing sixty million dollars to beep up cyber security, 0:00:29.480 --> 0:00:32.479 plus National Guard troops head to Washington, d C. For 0:00:32.520 --> 0:00:36.560 possible trucktor protests. I like more than I'm John stash 0:00:36.560 --> 0:00:38.800 Our and sports. The Yankees announced they will honor one 0:00:38.800 --> 0:00:41.239 of their former great players, the Islanders, with a win 0:00:41.440 --> 0:00:46.800 in Seattle. That's all straight ahead on Bloomberg day Break 0:00:47.040 --> 0:00:52.880 on Bloomberg ELEMENTARYO, New York, Bloomberg, Washington, d C, Bloomberg 0:00:52.880 --> 0:00:56.640 one oh six one, Boston, Bloomberg nine sixty, San Francisco, 0:00:57.000 --> 0:01:00.200 Sirius x M one nineteen and around the world Old 0:01:00.240 --> 0:01:03.960 on Bloomberg Radio dot Com and via The Bloomberg Business. 0:01:07.400 --> 0:01:10.320 Good morning, I'm Nathan Hager. And I'm Karen. Moscow and 0:01:10.480 --> 0:01:13.120 US futures are bouncing back this morning. We're coming up 0:01:13.160 --> 0:01:14.840 to six oh one on Wall Street, and we check 0:01:14.840 --> 0:01:17.920 the markets every fifteen minutes throughout the trading day. On Bloomberg. 0:01:18.040 --> 0:01:20.760 Right now, S ANDP futures are up thirty points at 0:01:20.760 --> 0:01:23.720 DOWN futures up two hundred four NAS day futures have 0:01:23.959 --> 0:01:27.679 one hundred thirty five, or about one percent. The dads 0:01:27.720 --> 0:01:29.959 in Germany's of nine tenths of upper cent. The ten 0:01:30.040 --> 0:01:33.000 year treasury down seven thirty seconds. They yield one point 0:01:33.080 --> 0:01:35.240 nine six percent. They yield on the two year one 0:01:35.280 --> 0:01:38.280 point five nine percent nine Next. Screwed oil is down 0:01:38.319 --> 0:01:40.720 seven tenths percent or sixty six cents, and ninety one 0:01:40.760 --> 0:01:43.479 dollar twenty five cents of barrel comic school down six 0:01:43.560 --> 0:01:46.080 tents percent or ten dollars eighty cents at eighteen ninety 0:01:46.120 --> 0:01:49.080 six sixty announced in the euro one point one three 0:01:49.400 --> 0:01:51.720 eight against the dollar. Nathan Well, Karen, we begin this 0:01:51.760 --> 0:01:54.240 morning with the latest developments out of Ukraine. The country 0:01:54.280 --> 0:01:57.720 plans to declare a nationwide state of emergency as tensions 0:01:57.720 --> 0:02:01.640 with Russia mount. President Biden has unveiled sanctions against Moscow 0:02:01.680 --> 0:02:04.280 as Secretary of State Anthony B. Lincoln calls off a 0:02:04.320 --> 0:02:07.280 meeting with Russia's foreign minister. Amy Morris has more from 0:02:07.320 --> 0:02:11.640 our bloombergs room in Washington. The latest sanctions target Russia's 0:02:11.639 --> 0:02:14.240 sale of sovereign debt abroad and the country's elites in 0:02:14.320 --> 0:02:17.280 response to what Biden calls the start of Putin's invasion 0:02:17.280 --> 0:02:21.760 of Ukraine. We have no intention of fighting Russia. We 0:02:21.800 --> 0:02:25.200 want to send an unmistakable message though at the United States, 0:02:25.200 --> 0:02:29.440 together with our allies, will defend every inch of NATO territory. 0:02:29.800 --> 0:02:32.160 This as Secretary B. Lincoln says, his meeting with Serage 0:02:32.280 --> 0:02:35.480 Lavrov is canceled because, in his words, doesn't make sense 0:02:35.520 --> 0:02:38.560 to go forward at this time. Ukraine's foreign minister says 0:02:38.600 --> 0:02:41.680 their plan is to use every diplomatic tool possible to 0:02:41.800 --> 0:02:46.600 deter Russia and prevent further escalation. Their plan, b he says, 0:02:47.080 --> 0:02:51.320 is to fight in Washington. I'm Aymy Morris Bloomberg Daybreak, Amy, 0:02:51.360 --> 0:02:54.360 thank you reaction pouring in over the conflict with Russia. 0:02:54.440 --> 0:02:57.360 We spoke with former US Ambassador to Poland, Stephen mull. 0:02:57.560 --> 0:03:00.240 He says his first round of sanctions might not be 0:03:00.440 --> 0:03:03.120 enough to deter a further invasion. I think we're going 0:03:03.200 --> 0:03:06.080 to be looking at over the next days and weeks 0:03:06.600 --> 0:03:09.880 an incremental move by by Russia to see how far 0:03:10.080 --> 0:03:13.280 if you can get and meeting the objective that Brutin 0:03:13.400 --> 0:03:15.880 is laid out. I don't know that there's any section 0:03:16.360 --> 0:03:20.840 that the US could impose that would would stop them 0:03:20.840 --> 0:03:23.440 from going all the way through with what Brutin is 0:03:23.520 --> 0:03:26.720 clearly set. Former US Ambassador Stephen Malls spoke with our 0:03:26.760 --> 0:03:30.239 Washington correspondent Joe Matthew on Bloomberg Sound on Catch the 0:03:30.240 --> 0:03:33.760 program weekdays at five pm Eastern on Bloomberg Radio. Well, Karen, 0:03:33.800 --> 0:03:35.960 all these developments have the S and P five hundreds 0:03:35.960 --> 0:03:39.000 starting the day in Correction Territory. The index is down 0:03:39.040 --> 0:03:42.160 more than ten percent from its January record. Walter Todd 0:03:42.240 --> 0:03:45.000 is chief investment officer at Greenwood Capital. I think it's 0:03:45.000 --> 0:03:47.400 important in times like these for us to just to 0:03:47.480 --> 0:03:49.440 kind of you try to step back and look at 0:03:49.600 --> 0:03:51.760 you know, try to maybe dig in on some individual 0:03:52.440 --> 0:03:55.120 names and you know, earning stories that we're still getting 0:03:55.240 --> 0:03:57.920 despite all these headlines kind of whipping things around, and 0:03:57.960 --> 0:04:00.240 I think, you know, it can present opportunity is for 0:04:00.280 --> 0:04:03.080 companies maybe that have just reported that maybe don't have 0:04:03.120 --> 0:04:06.280 it that much exposure to this situation directly that you 0:04:06.320 --> 0:04:08.920 are getting caught up in this this macro train. Walter 0:04:09.080 --> 0:04:11.440 Todd at Greenwood Capital says the market is still watching 0:04:11.480 --> 0:04:13.960 the Fed. He expects the Central Bank to gradually raise 0:04:14.080 --> 0:04:15.880 rates and then pick up the pace of tightening in 0:04:15.920 --> 0:04:18.280 the second half of the year. Well, Nathan, there's still 0:04:18.279 --> 0:04:20.839 a smattering of earnings to talk about this morning. After 0:04:20.839 --> 0:04:23.360 results from Home Depot yesterday, we get numbers from Home 0:04:23.360 --> 0:04:25.760 and probit, a retailer Lows. We get a preview from 0:04:25.800 --> 0:04:29.160 Bloomberg's Tom Busby. Lots of caution ahead of lows fourth 0:04:29.200 --> 0:04:32.279 quarter earnings on worries that revenues at the nation's number 0:04:32.320 --> 0:04:34.839 two do it yourself chain may be infacted by the 0:04:34.880 --> 0:04:38.159 same higher costs and supply chain problems that weighed on 0:04:38.200 --> 0:04:42.159 Home Depot's results. One key for investors is whether Lowe's 0:04:42.320 --> 0:04:44.920 changes the initial upbeat out look it gave them back 0:04:44.960 --> 0:04:48.279 in December. Bloomberg consensus calls for adjusted earnings per share 0:04:48.320 --> 0:04:51.320 of a dollar seventy, revenues of twenty point eight nine 0:04:51.360 --> 0:04:54.840 billion dollars, and same source sales up about two point two. 0:04:55.560 --> 0:04:58.520 Tom Busby Bloomberg daybreak. All right, Tom, thank you and 0:04:58.520 --> 0:05:01.560 those those earnings just crossing the Bloomberg fourth quarter profit 0:05:01.680 --> 0:05:05.240 and sales easily bidding analysts estimates. It also boosted its 0:05:05.240 --> 0:05:08.000 forecast well In Europe this morning, carrying shares of Barkley's 0:05:08.000 --> 0:05:09.920 are up two and a half percent. The British bank 0:05:09.960 --> 0:05:13.160 posted its highest annual profit on record. Barkley's dealmakers had 0:05:13.200 --> 0:05:14.760 a busy end of the year, helping to offset a 0:05:14.800 --> 0:05:18.120 slump and trading activity while turning to the pandemic. Now, Gathan, 0:05:18.160 --> 0:05:20.679 we're seeing a shift in retails approach to COVID, Apple 0:05:20.760 --> 0:05:23.359 dropping its master requirement at most stores across the US. 0:05:23.440 --> 0:05:26.440 We get the story from Bloomberg's Turley Pellett. The company 0:05:26.440 --> 0:05:30.200 announced the changes to employees at eligible stores and has 0:05:30.320 --> 0:05:34.360 updated its website to reflect which locations aren't no longer 0:05:34.520 --> 0:05:39.320 requiring masks. Apple, however, will continue to recommend that customers 0:05:39.360 --> 0:05:43.800 wear masks and will provide them upon request, employees, say 0:05:43.839 --> 0:05:47.360 Apple retail workers will still be required to wear masks. 0:05:47.720 --> 0:05:51.240 Apple locations in New York have made masks optional for 0:05:51.320 --> 0:05:55.560 customers who are fully vaccinated. The Iphonemaker also is ramping 0:05:55.640 --> 0:05:59.599 up for the return of in store classes in New York. 0:06:00.040 --> 0:06:03.200 Arlie pellin Bloomberg Daybreak, All right, Charlie, thanks. Different story 0:06:03.240 --> 0:06:05.600 in Asia when it comes to the pandemic. Infections are 0:06:05.600 --> 0:06:07.919 still rising in Hong Kong and that has the city 0:06:07.960 --> 0:06:11.440 expanding fiscal stimulus measures. We get more from Bloomberg Daybreak 0:06:11.440 --> 0:06:14.640 Asia anchor Brian Curtis. In the annual Hong Kong budget, 0:06:14.720 --> 0:06:17.680 Financial Secretary Paul Chan said Hong Kong would offer thirteen 0:06:17.760 --> 0:06:21.520 hundred dollar payments to residents. The economy expanded six point 0:06:21.560 --> 0:06:25.479 four percent in twenty one, but he forecast that two 0:06:25.600 --> 0:06:27.680 g d P would fall to a range of two 0:06:27.720 --> 0:06:29.880 to three and a half percent. In the meantime, the 0:06:29.880 --> 0:06:33.159 government has rolled out more details on mass testing residents 0:06:33.240 --> 0:06:36.440 some three times over the next month, and the leading lawmaker, 0:06:36.480 --> 0:06:39.320 Michael Teen says that Hong Kong should impose a strict 0:06:39.440 --> 0:06:42.719 citywide lockdown for nine days to reign in the outbreak. 0:06:43.160 --> 0:06:45.839 Teen says a lockdown would be preferable to stringing along 0:06:45.920 --> 0:06:51.520 drastic social distancing restrictions, restrictions that he says are strangling business. 0:06:51.560 --> 0:06:54.440 Brian Curtis Bloomberg Debreak. A right, Brian, thank you and 0:06:54.480 --> 0:06:57.320 one other note out of Asia this morning, HSBC City 0:06:57.320 --> 0:06:59.480 Group and Banga China. I'll say they will close only 0:06:59.520 --> 0:07:03.040 their retail branches in Hong Kong temporarily on Saturday's beginning 0:07:03.040 --> 0:07:05.280 in March. The move comes as Hong Kong's scrambles to 0:07:05.279 --> 0:07:09.520 contain its worst COVID outbreak yet. Futures this morning are higher. 0:07:09.600 --> 0:07:13.040 SNP futures up thirty two points and as straight ahead, 0:07:13.120 --> 0:07:17.000 we check your local headlines as well as sports, and 0:07:17.280 --> 0:07:24.880 this is Bloomberg. Thanks Karen. Six oh seven on Wall Street, 0:07:24.880 --> 0:07:26.840 fifty nine degrees in Central Park. We have a crash 0:07:26.880 --> 0:07:29.960 in New York. It's on eastbound Exit fifty seven. Details 0:07:29.960 --> 0:07:32.200 coming up in traffic First. Michael bar with more on 0:07:32.240 --> 0:07:34.120 what's going on in New York and around the world. Michael, 0:07:34.160 --> 0:07:36.680 thank you very much, Nathan. Intensions between Russia and the 0:07:36.680 --> 0:07:40.480 West have led New York State to tackle cyber security. 0:07:40.520 --> 0:07:44.400 Governor Kathy Hokel says the Joint Security Operations Center will 0:07:44.400 --> 0:07:47.320 open in Brooklyn to help combat cyber attacks in the state. 0:07:47.840 --> 0:07:50.480 Vocal said the state would set aside almost sixty two 0:07:50.480 --> 0:07:54.840 million dollars in the three state budget for stronger cyber 0:07:54.880 --> 0:07:57.880 security measures. We truly live in a digital world. You 0:07:57.920 --> 0:08:01.400 think about all your transactions, how you access money, how 0:08:01.480 --> 0:08:04.520 you pay your bills, how you make purchases and medical records. 0:08:04.800 --> 0:08:09.120 Even our power grids, NIPEU, our transportation systems, the m 0:08:09.200 --> 0:08:14.080 t A UH, they're all vulnerable to cyber attack if 0:08:14.120 --> 0:08:18.640 we don't take precautionary measures. Governor Huckle was joined by 0:08:18.680 --> 0:08:22.120 several mayors who announced the Joint Security Operations Center, which 0:08:22.160 --> 0:08:23.960 will be the first of its kind in the nation, 0:08:24.280 --> 0:08:27.960 including New York Mayor Eric Adams No forgusing down in 0:08:28.040 --> 0:08:33.120 Gracie Mansion speaking with the former mayor talking about the 0:08:33.160 --> 0:08:37.480 pandemic and other issues that we're facing the city, and 0:08:37.520 --> 0:08:42.880 he was clear, this is Eric, your real crises is 0:08:42.920 --> 0:08:45.920 going to be cybersecurity. Mayor Adams went on to say 0:08:45.960 --> 0:08:49.480 the difference between a minor cyber attack disruption and a 0:08:49.520 --> 0:08:53.200 catastrophe can be a matter of minutes. New York City 0:08:53.240 --> 0:08:56.040 began it's pushed to remove subway riders using the transit 0:08:56.080 --> 0:08:58.920 system for shelter. It's part of a strategy to reduce 0:08:59.040 --> 0:09:02.760 crime and restore confidence in subways in mp D, Transit 0:09:02.800 --> 0:09:06.280 Chief Jason Wilcox said during mt A committee hearings yesterday. 0:09:06.559 --> 0:09:10.680 The Departments of Homeless Services and of Health and Mental 0:09:10.760 --> 0:09:14.280 Hygiene have gone out to talk with writers who lack 0:09:14.360 --> 0:09:18.360 housing and help them find shelter. Former President Trump has 0:09:18.440 --> 0:09:21.199 run out of appeals to keep the January six Committee 0:09:21.280 --> 0:09:24.440 from seeing his White House records. The Supreme Court denied 0:09:24.440 --> 0:09:28.280 Trump's attempt to shield several hundred pages of records last month. 0:09:28.280 --> 0:09:32.160 The justices voted eight one to deny Trump's temporary emergency 0:09:32.160 --> 0:09:35.959 request to delay turning over those papers. New York is 0:09:36.000 --> 0:09:38.840 faving the way for hemp farmers to get a head 0:09:38.880 --> 0:09:42.240 start on growing marijuana for legal sales that are expected 0:09:42.240 --> 0:09:45.760 to begin next year. Governor Kathy Hocal signed legislation that 0:09:45.840 --> 0:09:49.360 lets hemp farmers apply for two year licenses to grow pot. 0:09:49.760 --> 0:09:53.079 Licensees can start planning this spring. Global News twenty four 0:09:53.080 --> 0:09:55.680 hours a day on air and on Bloomberg Quicktake Power 0:09:55.760 --> 0:09:58.959 by more than undred journalists and analysts more than a hundred, 0:09:58.960 --> 0:10:01.880 twenty countries. Um che labar, this is Bloomberg, Nathan, Thank you, 0:10:01.960 --> 0:10:08.559 Michael Fall six ten on Wall Street Time for the 0:10:08.559 --> 0:10:12.040 Bloomberg Sports Dingy with John Stashower Bath in the Nree 0:10:12.200 --> 0:10:15.600 The Yankees traded Roberto Kelly, the Cincinnati for Paul O'Neill 0:10:15.800 --> 0:10:18.560 swap about fielders to not to be a great Yankee trade. 0:10:18.559 --> 0:10:22.680 O'Neil a mainstand four World Championship teams since retirement many 0:10:22.720 --> 0:10:25.040 years in the Yankee broadcast booth, the team announced on 0:10:25.080 --> 0:10:28.920 August twenty one, number twenty one, we'll have his number retired. 0:10:28.920 --> 0:10:31.560 O'Neil called with his greatest honor. Meanwhile, if and when 0:10:31.559 --> 0:10:33.839 the lockout ends, Yankees might be in pursuit of a 0:10:33.880 --> 0:10:36.920 big free agent. ESPN reports there's growing belief that Freddie 0:10:36.920 --> 0:10:39.640 Freeman is not going to resigned with Atlanta and the 0:10:39.720 --> 0:10:42.680 Yanks are in pursuit Bryan Flora Zoo and his racial 0:10:42.720 --> 0:10:45.760 discrimination lawsuit. A led that while coaching the Dolphins, owner 0:10:45.800 --> 0:10:48.360 Stephen Ross offered him bonus money for each game the 0:10:48.400 --> 0:10:52.559 team lost. Now has made another allegation on HBO's Real Sports. 0:10:52.559 --> 0:10:55.240 Flora said that after he got fired in Miami, they 0:10:55.280 --> 0:10:58.720 offered him millions to sign a non disparagement agreement and 0:10:58.760 --> 0:11:01.880 he refused. For recently got a job as an assistant 0:11:01.880 --> 0:11:04.600 in Pittsburgh. It's twenty four million dollars settlement in the 0:11:04.760 --> 0:11:08.160 gender discrimination lawsuit brought by the US women's national soccer 0:11:08.240 --> 0:11:14.080 team for plaintiffs, including Carley Leowyd. And you know, just 0:11:14.880 --> 0:11:18.640 like all the players prior to me, the pioneers who 0:11:18.720 --> 0:11:22.200 helped make things better for when I came into the game, 0:11:22.760 --> 0:11:25.760 we're doing the same and just really proud of the group. 0:11:25.840 --> 0:11:28.640 I mean, we've started this journey six seven years ago 0:11:28.800 --> 0:11:31.520 and it's been going forward. The women will now get 0:11:31.559 --> 0:11:33.920 the equal phase the men. The Islanders began the season 0:11:33.920 --> 0:11:36.360 with thirteen road games, back on the road for five. 0:11:36.480 --> 0:11:39.599 First off Seattle, Zacaris scored twice, Iles won five to 0:11:40.040 --> 0:11:42.400 You're gone basketball having its best scenes in a while 0:11:42.400 --> 0:11:46.000 at two point big East room, John stash Award Bloombird 0:11:46.040 --> 0:11:49.040 spots All right, John, thanks right now. SMP futures are 0:11:49.080 --> 0:11:51.480 up thirty one points. Sound futures of two HUD fourteen. 0:11:51.559 --> 0:11:54.720 Nasdaq futures are higher by a hundred forty points after 0:11:54.720 --> 0:11:58.280 the SMP five hundred ended yesterday in a correction following 0:11:58.320 --> 0:12:01.400 President Biden sanctions announced spent. We'll get the latest on 0:12:01.559 --> 0:12:04.480 Ukraine with Isaac Boltanski bt I G. Next. This is 0:12:04.520 --> 0:12:09.959 Bloomberg Bloomber eleven three oh weather sunny, breezy, mid sixties 0:12:09.960 --> 0:12:13.200 today up for thirties tomorrow with a wintry mess possible 0:12:13.240 --> 0:12:15.920 tomorrow night rain Friday with highs and the low forties. 0:12:16.280 --> 0:12:23.160 Right now fifty nine degrees in Central Park. Markets. Headlines 0:12:23.200 --> 0:12:26.199 and breaking news twenty four hours a day at Bloomberg 0:12:26.280 --> 0:12:29.640 dot Com, The Bloomberg Business at Land at Bloomberg Quick Tape, 0:12:30.200 --> 0:12:39.840 He's a Bloomberg Business Flash and I'm Karen Moscow. European 0:12:39.920 --> 0:12:43.160 equities are rising along with US stock index futures on 0:12:43.240 --> 0:12:46.840 this Wednesday morning as investors assess some limited initial Western 0:12:46.920 --> 0:12:50.120 sanctions against Russia. How made the Ukraine standoff? We check 0:12:50.160 --> 0:12:53.520 the markets every fifteen minutes throughout the trading day on Bloomberg. 0:12:53.600 --> 0:12:56.959 Right now, SNP futures are up twenty seven points. Now 0:12:57.120 --> 0:13:00.640 futures have one eighty six and Nasdaq futures one hundred 0:13:00.679 --> 0:13:04.400 and twenties six. The ten your treasury down nine thirty seconds, 0:13:04.440 --> 0:13:06.880 the yield one nine seven percent. The yield on the 0:13:06.960 --> 0:13:11.000 two year one point six zero percent. NIMEX screwed oil 0:13:11.240 --> 0:13:13.160 is down about nine tenths of upper cent or eighty 0:13:13.240 --> 0:13:16.000 cents at ninety one dollar twelve cents of barrel COMEXS 0:13:16.080 --> 0:13:18.360 gold is down six tenths per cent or eleven dollars 0:13:18.360 --> 0:13:21.720 ten cents at eighteen ninety six thirty announced. The euro 0:13:21.960 --> 0:13:24.080 is at one point one three four six against the dollar, 0:13:24.160 --> 0:13:26.400 British pound one point three six so four, the yen 0:13:26.440 --> 0:13:29.680 at one fifteen point oh nine, and bitcoin at this 0:13:29.800 --> 0:13:33.120 morning moving higher at thirty eight thousand, eight hundred forty 0:13:33.200 --> 0:13:37.320 dollars and also lows as we said, reporting earnings fourth 0:13:37.400 --> 0:13:40.920 quarter profit and comp sales beating analysts estimates as a 0:13:40.960 --> 0:13:43.439 Bloomberg business flash. Now here's Michael Barrow with Moore on 0:13:43.520 --> 0:13:46.160 what's going on around the world. Buckle, Karen, thank you 0:13:46.280 --> 0:13:49.719 very much. Tensions over Russia and Ukraine continue. Ukraine will 0:13:49.760 --> 0:13:53.560 seek to impose a nationwide state of emergency. It comes 0:13:53.600 --> 0:13:56.920 after Russian lawmakers author eyes President Vladimir Putin to use 0:13:56.960 --> 0:14:01.120 military force outside his country. Jury deliberations are set to 0:14:01.120 --> 0:14:03.679 begin to day in the case against three former Minneapolis 0:14:03.760 --> 0:14:07.520 police officers involved in George Floyd's death. They are charged 0:14:07.520 --> 0:14:11.120 with depriving Floyd of civil rights by failing to administer 0:14:11.240 --> 0:14:14.360 aid when officer Derek Schouwin pressed his knee into Floyd's 0:14:14.400 --> 0:14:16.920 neck for more than nine minutes. In the NHL, the 0:14:16.960 --> 0:14:20.040 Islanders won global news twenty four hours a day on 0:14:20.240 --> 0:14:23.720 air and on Bloomberg Quittake, powered by more than twenty 0:14:23.800 --> 0:14:26.680 seven under journalist and analysts more than a hundred twenty countries. 0:14:27.040 --> 0:14:29.880 Michael bar This is Bloomberg. Nathan Okay, Michael. Thanks. At 0:14:29.920 --> 0:14:32.520 six nineteen on Wall Street Live from the Bloomberg Interacted 0:14:32.520 --> 0:14:36.360 Broker Studios. This is Bloomberg Daybreak and Isaac Boltanski is 0:14:36.360 --> 0:14:38.520 with a structor of policy research at bt i G 0:14:38.680 --> 0:14:42.760 as we continue to follow developments around Ukraine. Isaac, it's 0:14:42.760 --> 0:14:44.720 good to have you with us this morning. I want 0:14:44.760 --> 0:14:47.800 to get your reaction to the latest development we've seen 0:14:47.840 --> 0:14:52.280 that Ukraine is planning to impose a thirty day nationwide 0:14:52.400 --> 0:14:55.400 state of emergency. What if any impact could that have 0:14:55.600 --> 0:14:59.280 on the tensions with Russia. I think that it tells 0:14:59.360 --> 0:15:01.680 us that we are still in the early innings of 0:15:01.720 --> 0:15:04.840 this story and that it's probably going to get worse 0:15:04.920 --> 0:15:07.600 before there's any potential for it to get better. And 0:15:07.600 --> 0:15:11.240 I think that's a fair assumption given where tensions are generally, 0:15:11.280 --> 0:15:14.200 but as well as the fact that we're seeing pretty 0:15:14.240 --> 0:15:18.440 coordinated sanction actions from the US and its allies, which 0:15:18.440 --> 0:15:20.800 I think are going to be part of this story 0:15:20.880 --> 0:15:25.000 going forward and lead to potentially anything from cyber attacks 0:15:25.040 --> 0:15:27.440 to of course whatever Putin will do on the ground. 0:15:28.040 --> 0:15:30.880 So you don't think that the sanctions as rolled out 0:15:31.160 --> 0:15:35.480 so far from the US and Europe will have the 0:15:35.600 --> 0:15:39.560 deterrent effect that the Allies and the US had been 0:15:39.560 --> 0:15:44.280 telegraphing that they helped sanctions would have. Yeah. Look, I 0:15:44.280 --> 0:15:47.440 don't think there's a detailed set of instructions for exactly 0:15:47.440 --> 0:15:50.160 how to implement sanctions of this nature in the face 0:15:50.200 --> 0:15:52.400 of what Russia is doing. But from my seat, the 0:15:52.440 --> 0:15:56.640 White House prioritized coordination for this first tranch to show 0:15:56.840 --> 0:16:01.080 united front rather than bringing down the proverbial hammer. You know, 0:16:01.120 --> 0:16:04.720 the first trunch of of sanctions announced by the US 0:16:04.880 --> 0:16:07.920 is meaningful, but we should really think about its being 0:16:07.960 --> 0:16:12.440 preliminary rather than final. The US, and for that matter, 0:16:12.480 --> 0:16:14.760 It's Allies, still have a fair amount of dry powder 0:16:14.840 --> 0:16:18.240 left if this crisis escalates. And and that's one of 0:16:18.240 --> 0:16:20.720 the questions that we're hearing here in d C, which 0:16:20.760 --> 0:16:23.880 is what's next in terms of what can be done, 0:16:23.880 --> 0:16:28.000 either administratively or legislatively. Now, based on what you are hearing, 0:16:28.040 --> 0:16:32.960 what's the expectation, what is Washington bracing for in terms 0:16:33.000 --> 0:16:37.480 of the next move from Russia. You know, I think everyone, 0:16:37.680 --> 0:16:39.960 at least in my conversations will make the point that 0:16:40.000 --> 0:16:43.160 no one knows what Vladimir Putin will do other than 0:16:43.240 --> 0:16:46.160 Vladimir Putin. There is a belief that there will be 0:16:46.560 --> 0:16:51.080 further escalation of tensions on the ground and more movement accordingly. 0:16:51.160 --> 0:16:54.680 But from a DC perspective, I think that there is 0:16:54.800 --> 0:16:59.440 ongoing groundwork being done for another round of administrative actions, 0:17:00.040 --> 0:17:01.640 and we can talk about that to the degree that 0:17:01.680 --> 0:17:04.240 you like. But I can also tell you that lawmakers 0:17:04.240 --> 0:17:06.000 who are out of town this week are going to 0:17:06.119 --> 0:17:09.080 come back next week ready to move on some of 0:17:09.119 --> 0:17:12.600 the legislative options, especially with the state of the Union 0:17:12.600 --> 0:17:15.760 in the background and President Biden likely to focus on 0:17:15.800 --> 0:17:18.320 this issue to at least some degree. Do you think 0:17:18.359 --> 0:17:21.440 there's a possibility that we could see more coordination, more 0:17:22.000 --> 0:17:26.280 unanimity among members of Congress when it comes to sanctions 0:17:26.320 --> 0:17:28.680 that could come from Capitol Hill. It seems like there 0:17:28.680 --> 0:17:31.040 has been a lot of difficulty, at least up to now, 0:17:31.520 --> 0:17:38.320 for lawmakers to agree on a sanctions package against Ladimir Putin. Yeah, 0:17:38.400 --> 0:17:40.680 one of the leading senators on this said that we 0:17:40.680 --> 0:17:43.760 were on the one yard line. I believe before they 0:17:43.840 --> 0:17:47.080 left right near the goal line to getting a deal done. 0:17:47.080 --> 0:17:51.080 But there were some real divisions over whether actions should 0:17:51.080 --> 0:17:54.160 be taken preemptively or they should wait for Russia to move. 0:17:54.480 --> 0:17:57.440 There are also some questions about whether some of the 0:17:57.520 --> 0:18:00.960 steps would actually end up hurting our allies. Um For example, 0:18:01.000 --> 0:18:04.240 if you get a change of swift financial clearing system, 0:18:04.280 --> 0:18:07.560 it could actually imperil tens of billions of dollars of 0:18:07.600 --> 0:18:12.920 payments from Russia to creditors like Austria, Austria, France and elsewhere. 0:18:13.440 --> 0:18:15.200 You know. To me, I think that we should believe 0:18:15.240 --> 0:18:17.440 that the next few weeks in Capitol Hill will be 0:18:17.480 --> 0:18:20.320 focused on this issue, and that there is a clear 0:18:20.400 --> 0:18:26.359 path to passage for bipartisan legislation that will provide additional 0:18:26.400 --> 0:18:31.199 funding for pro Ukraine independence fighters and is going to 0:18:31.480 --> 0:18:37.600 I think, take specific target on Russian oligarchs and they're holdings. 0:18:38.240 --> 0:18:40.280 In our last thirty seconds here, Isaac, why do you 0:18:40.280 --> 0:18:43.120 think President Biden has sort of held off on dropping 0:18:43.119 --> 0:18:47.760 the hammer he telegraphed before this beginning of an invasion, 0:18:47.760 --> 0:18:50.960 as he termed it that the US would bring down 0:18:51.240 --> 0:18:55.800 severe economic penalties if Russia were to make a move 0:18:56.000 --> 0:18:59.000 like this, and it seems as though, at least as 0:18:59.040 --> 0:19:01.639 you've been saying as well, that the president's kind of 0:19:01.640 --> 0:19:04.680 holding things uh a little bit close to his vest here. 0:19:06.440 --> 0:19:09.800 My sense is that there was a decision within the 0:19:09.800 --> 0:19:14.800 White House to prioritize coordination. And just yesterday we saw 0:19:14.840 --> 0:19:20.320 the US ACT along with the European Union, the United Kingdom, Australia, Japan, 0:19:20.480 --> 0:19:25.280 and most notably of course, Germany who froze the Nord 0:19:25.400 --> 0:19:28.000 Stream to gas pipeline. And I think what the White 0:19:28.000 --> 0:19:29.720 House wanted to do, and this is a message that 0:19:29.720 --> 0:19:32.439 we've seen from them since you know, they were on 0:19:32.480 --> 0:19:37.080 the campaign trail, is they want multilateral pressure to force 0:19:37.280 --> 0:19:41.359 changes from from other countries. And so I really believe 0:19:41.440 --> 0:19:45.120 that this president, in particular, given his background, wanted to 0:19:45.119 --> 0:19:48.240 to advance the most unified front and the only way 0:19:48.280 --> 0:19:51.200 to do that was to take these initial measured STAPs. 0:19:52.080 --> 0:19:55.000 Where we go from there, yes we will. Thanks Isaac, 0:19:55.160 --> 0:19:58.159 good having your insights this morning. Isaac Boltanski, director of 0:19:58.160 --> 0:20:02.320 Policy research at b T i G. You're listening to 0:20:02.359 --> 0:20:09.520 Bloomberg day Break Bloomberg eleven three oh weather, sunshine, breezy, 0:20:09.680 --> 0:20:13.640 mid sixties today, upper thirties, tomorrow with a wintry mess 0:20:13.680 --> 0:20:16.400 possible tomorrow night that will turn over into rain on Friday, 0:20:16.440 --> 0:20:18.400 cold rage with hides in the low forties right now 0:20:18.440 --> 0:20:25.520 fifty nine degrees. Broadcasting wide from the Bloomberg Interactive Broker 0:20:25.640 --> 0:20:29.040 Studio in New York, Bloomberg E Living free to Washington, 0:20:29.119 --> 0:20:32.680 d C, Bloomberg N one to Boston, Bloomberg one oh 0:20:32.760 --> 0:20:35.840 six one to San Francisco, Bloomberg nine six to the 0:20:35.880 --> 0:20:39.359 country Sirius xm Cho one nine and around the globe 0:20:39.440 --> 0:20:42.919 the Bloomberg Business app in Bloomberg Radio dot com. This 0:20:43.359 --> 0:20:52.119 is Bloomberg Daybreak six thirty on Wall Street. Good morning, 0:20:52.119 --> 0:20:55.320 I'm Nathan Hager and I'm Karen Moscow or just about 0:20:55.320 --> 0:20:57.760 three hours away from the open of US trading. It's 0:20:57.800 --> 0:21:00.119 time for the five Things you need to Notice Are 0:21:00.200 --> 0:21:03.600 your day brought to you by Interactive Brokers. Interactive Brokers 0:21:03.680 --> 0:21:07.080 charges Martin loan rates from zero point seven five to 0:21:07.160 --> 0:21:09.960 one point five eight percent, rates subject to change. Learn 0:21:10.000 --> 0:21:12.919 more at ib k R dot com slash compare. We 0:21:13.000 --> 0:21:15.840 begin with the latest developments on Ukraine. The country plans 0:21:15.880 --> 0:21:19.080 to declare a nationwide state of emergency, has tensions with 0:21:19.160 --> 0:21:22.280 Russia amount and President Biden says he is raising the 0:21:22.359 --> 0:21:25.000 number of military forces in the region. They get the 0:21:25.080 --> 0:21:28.480 very latest from Bloomberg, said Baxter. President Biden says he 0:21:28.520 --> 0:21:31.720 has no plans to fight Russia militarily in Ukraine, but 0:21:31.800 --> 0:21:34.400 the red line is at the boundaries of NATO countries. 0:21:34.480 --> 0:21:37.080 I have authorized additional movements of U S forces and 0:21:37.119 --> 0:21:41.760 equipment already stationed in Europe to strengthen our Baldic allies 0:21:42.000 --> 0:21:45.520 Estonia and Latvia Lithuania. Meanwhile, the first sanctions White House 0:21:45.560 --> 0:21:48.120 folks women John Saki says are just the first step 0:21:48.160 --> 0:21:52.280 their design to have a squeezing impact over the course 0:21:52.280 --> 0:21:54.720 of time. And we have many more escortory steps that 0:21:54.760 --> 0:21:56.960 we could take. And they say no future talks with 0:21:57.080 --> 0:22:01.160 Russia are planned. In San Francisco, I'm at extra Bloomberg daybreak, 0:22:01.240 --> 0:22:03.800 all right, thanks President Biden's first round of sanctions on 0:22:03.880 --> 0:22:06.760 Russia hit the markets with a whimper. Global stocks are 0:22:06.880 --> 0:22:10.040 rising this morning after yesterday slump saw the SMP five 0:22:10.119 --> 0:22:13.400 hundred clothes in correction Territory down ten percent from its 0:22:13.480 --> 0:22:16.560 January highs. Still, the next round of sanctions could bite 0:22:16.560 --> 0:22:19.520 a bit harder. That's according to Saxo Bank Chief Investment 0:22:19.520 --> 0:22:22.880 Officer Stean Jacobson, the next step off from this will 0:22:22.920 --> 0:22:25.000 be very serious in terms of the issues of that 0:22:25.480 --> 0:22:28.920 and the connection inside to to Russia. As someone who 0:22:29.000 --> 0:22:32.360 goes to Russia, I know the Russians of course live 0:22:32.440 --> 0:22:35.480 with this, but I also know that the business people 0:22:35.520 --> 0:22:38.080 that I know and talked to in Russia are certainly 0:22:38.119 --> 0:22:40.960 impacted by this and field this is comes strain on 0:22:41.000 --> 0:22:43.640 the way to do business, Stein Jacobson at Saxo Banks 0:22:43.680 --> 0:22:46.240