WEBVTT - Bloomberg Daybreak: March 3, 2022 - Hour 1 (Radio) 0:00:02.920 --> 0:00:06.279 Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg 0:00:06.360 --> 0:00:10.680 Daybreak for Thursday, March three. Coming up this hour, Russia 0:00:10.760 --> 0:00:13.920 presses ahead in Ukraine as the war enters its second week. 0:00:14.120 --> 0:00:17.079 Boyle continues, It's March higher, hitting the highest level since 0:00:17.120 --> 0:00:19.880 two thousand eight. J Pali stands pad On plants for 0:00:19.920 --> 0:00:22.600 a rate hike this month, and the January six Panel 0:00:22.640 --> 0:00:26.080 says evidence suggests crimes committed by Donald Trump. New York 0:00:26.120 --> 0:00:29.280 school chancellor says he wants to stop the exodus of students. 0:00:29.320 --> 0:00:32.280 Plus Supreme Court nominee Brown Jackson is making the Browns 0:00:32.280 --> 0:00:35.520 on Capitol Hill. I'm Michael Blarm. We're ahead of John 0:00:35.520 --> 0:00:38.400 Stage Shower Sports, the Nick Laws in Philadelphia, the Rangers 0:00:38.400 --> 0:00:41.320 beat the Blues College who wins for St? John, Seaton 0:00:41.400 --> 0:00:46.559 Hall and Rutger. That's all straight ahead on Bloomberg day 0:00:46.560 --> 0:00:51.560 Break on Bloomberg eleven, Treo, New York, Bloomberg one, Washington, 0:00:51.640 --> 0:00:55.760 d C, Bloomberg one O six one, Boston, Bloomberg nine sixties, 0:00:55.760 --> 0:00:59.720 San Francisco, Sirius x M one nineteen and around the 0:00:59.760 --> 0:01:02.560 world Old on Bloomberg Radio dot Com and via the 0:01:02.640 --> 0:01:09.760 Bloomberg Business A good morning. I'm Nathan Hagar and I'm Karen. 0:01:09.840 --> 0:01:12.920 Moscow and US Dock index futures are little changed to 0:01:13.040 --> 0:01:15.319 lower this morning. We're coming up to five oh one 0:01:15.319 --> 0:01:17.240 on Wall Street, and we check the markets every fifteen 0:01:17.280 --> 0:01:20.120 minutes throughout the trading day. On Bloomberg right now, S 0:01:20.200 --> 0:01:22.920 and P futures are down two and a half points 0:01:22.920 --> 0:01:25.120 and DOWN futures are down four, so they're both pretty 0:01:25.160 --> 0:01:28.640 much little changed. Nasdack futures lower, down thirty seven. The 0:01:28.760 --> 0:01:31.800 decks in Germany's down about seven tenths of upper set ten. 0:01:31.880 --> 0:01:34.560 Your treasury up one thirty second, the yield one point 0:01:34.600 --> 0:01:37.160 eight seven percent, the yield on the two year one 0:01:37.160 --> 0:01:40.920 point five zero percent, and Nimex screwde oil is up 0:01:40.959 --> 0:01:43.840 too and a half percent. Nathan Karen will have more 0:01:43.840 --> 0:01:45.640 on the markets in a minute, but first, the war 0:01:45.680 --> 0:01:48.960 in Ukraine is now into its second week. Russian forces 0:01:49.000 --> 0:01:51.720 are pressing head with their offensive, firing missiles at the 0:01:51.760 --> 0:01:54.920 capital of Kiev. Moscow's also stepped up a campaign to 0:01:54.960 --> 0:01:58.480 take cities in the south. Ukraine's president Vladimir Zelinski says 0:01:58.560 --> 0:02:03.080 Russian troops will be met with force. Wherever they go. 0:02:03.600 --> 0:02:07.000 They will be destroyed they will not have common they 0:02:07.040 --> 0:02:09.839 will not have food, They will not have one quiet moment, 0:02:11.480 --> 0:02:17.600 Receive only one thing. Resist fifth resistant President Vladimir z 0:02:17.639 --> 0:02:20.720 Linski's telling Russian troops to go home. Ukraine is set 0:02:20.760 --> 0:02:23.840 for a second round of talks with Moscow today. Meantime, 0:02:23.919 --> 0:02:27.160 Nathan United Nations is ramping up its rhetoric on Russia. 0:02:27.240 --> 0:02:30.760 The U n Secretary General is demanding Moscow removed troops 0:02:30.840 --> 0:02:34.760 from Ukraine. Bloomberg said, Baxter has the story. An overwhelming 0:02:34.760 --> 0:02:39.320 majority of the General Assembly back Russian condemnation one four 0:02:39.480 --> 0:02:43.600 five against thirty five abstain. Secretary General Antonio Guterres says 0:02:43.639 --> 0:02:49.760 the world demands peace. People in Ukraine desperately needs peace, 0:02:50.560 --> 0:02:55.800 and people around the world this is Representatives from Ukraine 0:02:55.800 --> 0:02:58.600 and Russia are headed to the Belarus Poland border today 0:02:58.639 --> 0:03:01.400 for a second round of talks, and Secretary of State 0:03:01.440 --> 0:03:04.120 Anthony Blinkol has headed to Europe for talks with NATO 0:03:04.200 --> 0:03:07.880 allies in San Francisco. I'm at Baxetor Bloomberg daybreak. Thanks 0:03:07.880 --> 0:03:10.520 sad Russian finances, they're feeling more pain this morning. The 0:03:10.560 --> 0:03:13.200 country's credit rating has been cut to junk by both 0:03:13.280 --> 0:03:16.400 moodies and Fitch ratings. Both wren that sanctions could undermine 0:03:16.440 --> 0:03:20.240 Russia's capability and willingness to service debt. Well, oil continues. 0:03:20.280 --> 0:03:23.440 It's march higher this morning, Nathan, hitting levels we haven't 0:03:23.480 --> 0:03:26.120 seen in fourteen years, and we get the latest live 0:03:26.240 --> 0:03:29.799 from Bloomberg's John Tucker, johnkle Mornay Karen. Buyers continue to 0:03:29.880 --> 0:03:33.079 shun Russian crude and traders are betting that prices will 0:03:33.160 --> 0:03:36.880 keep rising. Don't expect any help from OPEC plus after 0:03:36.920 --> 0:03:39.920 a thirteen minute meeting, they stuck to just a mild 0:03:40.080 --> 0:03:43.200 increase in production and don't expect much help from US 0:03:43.240 --> 0:03:47.160 shale producers. They say labor and material shortages are hurting 0:03:47.200 --> 0:03:50.800 their production. And it's not just oil. Commodities are rising 0:03:50.840 --> 0:03:54.680 across the board. Bloomberg's gage of raw materials is closing 0:03:54.720 --> 0:03:58.480 in on the biggest weekly gain in sixty years. Aluminum 0:03:58.560 --> 0:04:02.720 hit a record, we prices extended their meteoric rally. These 0:04:02.760 --> 0:04:05.840 commodities are not subject to sanctions, but surging freight and 0:04:05.920 --> 0:04:09.440 insurance costs are keeping buyers away. Laden New York. I'm 0:04:09.520 --> 0:04:12.640 John Tucker, Bloomberg Daybreak. Okay, John, thank you, And despite 0:04:12.720 --> 0:04:15.560 risks from Russia's invasion of Ukraine. J Powell is making 0:04:15.560 --> 0:04:18.839 the fight against inflation his top priority. The FED chair 0:04:18.880 --> 0:04:21.760 testified before a House panel yesterday, saying he supports the 0:04:21.880 --> 0:04:24.200 rate hike later this month. I do think it will 0:04:24.200 --> 0:04:26.920 be appropriate to raise our target range for the Feller 0:04:26.920 --> 0:04:29.320 funds rate at the March meeting in a couple of weeks, 0:04:29.600 --> 0:04:31.800 and I'm inclined to propose and support a twenty five 0:04:31.800 --> 0:04:34.840 basis point rate hike. And to the extent inflation comes 0:04:34.839 --> 0:04:38.119 in higher or is more persistently high than that, then 0:04:38.240 --> 0:04:41.800 we would be prepared to move more aggressively by by 0:04:42.000 --> 0:04:44.000 raising the Fellow funds rate by more than twenty five 0:04:44.040 --> 0:04:48.240 basis point. FED Chair J. Powells testifies before Congress again today, 0:04:48.279 --> 0:04:51.359 this time to the Senate Banking Committee, Nathan. The next 0:04:51.480 --> 0:04:54.240 major event for J. Powell and the Fed is Friday's 0:04:54.320 --> 0:04:57.640 jobs report. Over the past year, rapid wage growth left 0:04:57.640 --> 0:05:00.400 businesses scrambling to keep up, and in the like that 0:05:00.440 --> 0:05:03.240 trend will continue. Bloomberg's Rnida Young joins us now at 0:05:03.279 --> 0:05:06.400 the details. Good morning, Randa, Good morning Karen. The February 0:05:06.520 --> 0:05:10.160 jobs report is expected to show average hourly earnings rose 0:05:10.200 --> 0:05:13.240 a half a percent last month, pushing year over year 0:05:13.279 --> 0:05:16.440 games close to six percent, and if you exclude two 0:05:16.480 --> 0:05:20.719 pandemic distorted prints in the annual increase would be the 0:05:20.800 --> 0:05:25.440 strongest in data going back fifteen years. Some slowing is expected, 0:05:25.640 --> 0:05:29.320 but wage growth is poised to remain exceptionally strong this year. 0:05:29.800 --> 0:05:32.440 High labor costs are yet another factor the Fed will 0:05:32.480 --> 0:05:34.919 have to contend with as it works to cool the 0:05:34.960 --> 0:05:39.360 hottest inflation in a generation. In New York, I'm Nita Young, 0:05:39.360 --> 0:05:42.440 Bloomberg Daybreak. Thanks Nita, turning to politics now, we have 0:05:42.520 --> 0:05:45.599 new developments involving the January six attack on the Capitol. 0:05:45.839 --> 0:05:48.880 The Congressional committee investigating the incident says it may have 0:05:49.000 --> 0:05:53.160 evidence that former President Trump was part of a criminal conspiracy. 0:05:53.200 --> 0:05:56.560 Amy Morris reports from our Bloomberg nine one newsroom in Washington. 0:05:56.839 --> 0:06:00.400 The committee says Trump advisor John Eastman's emails device President 0:06:00.440 --> 0:06:03.560 Mike Pence's lawyer show evidence of obstruction of an official 0:06:03.600 --> 0:06:06.880 proceeding a felony that carries a maximum of twenty years 0:06:06.920 --> 0:06:09.479 in prison, and the emails he blames Pence for the 0:06:09.600 --> 0:06:12.520 riot and says, quote, I implore you to consider one 0:06:12.560 --> 0:06:16.000 more relatively minor violation of the Electoral Count Act and 0:06:16.040 --> 0:06:19.040 adjourned for ten days. In a court filing, the committee 0:06:19.040 --> 0:06:22.119 says Eastman knew what he was proposing would violate the law, 0:06:22.320 --> 0:06:25.719 but pushed the Vice President to do it anyway. In Washington, 0:06:25.800 --> 0:06:28.440 I'm Amy Morris Bloomberg day break. All right, Amy, thank you, 0:06:28.440 --> 0:06:30.200 But let's turn back to the markets now as some 0:06:30.320 --> 0:06:33.560 corporate items of note this morning, Shares of Snowflake are 0:06:33.600 --> 0:06:36.080 plunging their down more than twenty one percent after the 0:06:36.160 --> 0:06:39.640 software company projected slowing sales growth is expected to fall 0:06:39.680 --> 0:06:42.920 from a previous triple digit percentage base ment. Tesla is 0:06:42.960 --> 0:06:45.600 back in the news. Carreen CEO Elon Musk is challenging 0:06:45.640 --> 0:06:48.160 the United Auto Workers Union to hold a vote at 0:06:48.200 --> 0:06:51.479 his California factory. Musk says Tesla will do nothing to 0:06:51.480 --> 0:06:55.320 stop union organizers. The challenge comes after President Biden again 0:06:55.520 --> 0:06:58.839 failed to mention Tesla while promoting electric vehicles in his 0:06:58.920 --> 0:07:01.240 State of the Union address. The White House is a 0:07:01.279 --> 0:07:04.840 big supporter of labor unions. Right now, SMP futures are 0:07:04.880 --> 0:07:07.760 down almost five points, STOUT futures down twenty NASTAC futures 0:07:07.800 --> 0:07:10.320 lower by forty four points. The tenure Treasury is up 0:07:10.360 --> 0:07:13.320 to thirty seconds. The yield right now one point eight 0:07:13.440 --> 0:07:16.520 six per cent. Straight ahead, your latest local headlines and 0:07:16.520 --> 0:07:23.800 a check of sports. This is Bloomberg. It's now five 0:07:23.800 --> 0:07:25.920 oh seven on Wall Street. Got some showers this morning. 0:07:25.960 --> 0:07:28.680 Forty four degrees in Central Partners crash on the Harlem 0:07:28.760 --> 0:07:32.320 River drives southbound by h Details on that coming up 0:07:32.320 --> 0:07:35.240 in traffic. First Michael Barr with more on what's going 0:07:35.240 --> 0:07:37.240 on in New York into rappid world. Good morning, Michael, 0:07:37.320 --> 0:07:40.000 Good morning Nathan. People in New York are coming together 0:07:40.080 --> 0:07:43.880 to show support for Ukraine as the Russian invasion continues. 0:07:44.080 --> 0:07:47.480 Hundreds of people gathered at St. George, Ukrainian Catholic Church 0:07:47.520 --> 0:07:50.600 in the East Village last night to sing and pray. 0:07:51.080 --> 0:07:53.800 The church has become a focal point for the humanitarian 0:07:53.800 --> 0:07:57.960 effort by raising funds from everything from food and clothing 0:07:57.960 --> 0:08:07.120 to medical supplies. Among the worshippers, New York Governor Kathy Hokele. 0:08:11.520 --> 0:08:15.280 New York City has the largest Ukrainian population in the US. 0:08:15.560 --> 0:08:18.840 President Biden's picked to replace Supreme Court Justice Stephen Bryan, 0:08:19.040 --> 0:08:22.520 is making the rounds on Capitol Hill. Judge Katangi Brown 0:08:22.640 --> 0:08:26.240 Jackson met with lawmakers her confirmation. Hearings could begin soon. 0:08:26.800 --> 0:08:30.240 Japanese scientists say the omicron strain of COVID nineteen is 0:08:30.280 --> 0:08:34.800 at least more lethal than seasonal flu. Countries around the 0:08:34.800 --> 0:08:39.920 world have been relaxing mask mandates and testing requirements. Visibly annoyed, 0:08:39.920 --> 0:08:43.640 Florida Governor Rhonda Santis admonished a group of students for 0:08:43.760 --> 0:08:48.040 wearing face masks at an indoor news conference. It happened 0:08:48.040 --> 0:08:51.959 before he spoke about cybersecurity and education at the University 0:08:52.000 --> 0:08:59.160 of South Florida in Tampa. To think, we got to 0:08:59.200 --> 0:09:03.000 stop with this. The theater want fine, but this isn't 0:09:03.080 --> 0:09:05.920 This is ridiculous. Some of the students took their masks 0:09:06.000 --> 0:09:09.040 off before Governor to Santists took the podium. New Jersey 0:09:09.040 --> 0:09:11.520 Governor Phil Murphy received some good news about the state 0:09:11.520 --> 0:09:15.160 a credit rating upgrade story from Bloomberg's Charlie call It. 0:09:15.480 --> 0:09:19.760 Moody's Investors Service raised New Jersey's credit rating, giving the 0:09:19.800 --> 0:09:24.160 state its first upgrade since two thousand five after years 0:09:24.240 --> 0:09:28.400 of pension under funding and benefit increases. An upgrade can 0:09:28.480 --> 0:09:32.200 lead to reduce borrowing costs for states, as bond investors 0:09:32.200 --> 0:09:36.360 are willing to accept lower yields from issuers considered less 0:09:36.400 --> 0:09:40.720 likely to default. In New York Charlie Pellet Bloomberg pay Break, 0:09:40.840 --> 0:09:44.080 New York City School's Chancellor David Bank's pledge to bring 0:09:44.080 --> 0:09:46.800 a new normal to the U s as largest school system. 0:09:47.000 --> 0:09:49.640 He outlined a plan to reverse an exodus of students 0:09:49.640 --> 0:09:54.640 by improving digital learning, reducing bureaucracy, and expanding gifted programs. 0:09:54.840 --> 0:09:57.080 Global News twenty four hours a day on air and 0:09:57.200 --> 0:10:00.400 on Bloomberg Quick Take, powered by more than twenty seven 0:10:00.480 --> 0:10:03.199 hundred journalists and analysts in more than a hundred twenty countries. 0:10:03.480 --> 0:10:11.120 Michael BARRD this is Bloomberg, Nathan. Thanks Michael, coming. It's 0:10:11.120 --> 0:10:12.840 a five ten on Wall Street. Time for the Bloomberg 0:10:12.880 --> 0:10:15.760 Sports Updated Morning. John Stanshower All, good morning, Nathan. Familiar 0:10:15.800 --> 0:10:18.280 script for the next good start, not a good finished. 0:10:18.280 --> 0:10:22.240 Another loss now sixteen losses in the last nineteen games. 0:10:22.240 --> 0:10:24.680 In Philadelphia, Nicks didn't trail until the third quarter, but 0:10:25.120 --> 0:10:27.600 the Sixers one at once to one oh eight. They 0:10:27.600 --> 0:10:30.079 sweep the home at home. Joe l MB twenty seven twints. 0:10:30.120 --> 0:10:33.360 He took thirteen free throws. That's down from the twenty 0:10:33.480 --> 0:10:35.480 seven that he took in Sunday's game at the Garden, 0:10:35.559 --> 0:10:38.319 James Harden and his home debut in Philly twenty six 0:10:38.360 --> 0:10:40.240 points in near triple double. R J. Barrett that the 0:10:40.280 --> 0:10:43.160 Knicks with thirty Julius Randol at twenty four, but Alec 0:10:43.200 --> 0:10:46.839 Burk's and Evan four together shot three of nineteen nets. 0:10:46.880 --> 0:10:50.439 Home tonight from Miami, Kevin Durant makes his return from 0:10:50.440 --> 0:10:52.120 the knee injury that's kept him that from more than 0:10:52.200 --> 0:10:54.440 six weeks. The East eating heat last night in Milwaukee, 0:10:54.960 --> 0:10:57.520 led by fourteen, was six minutes to go to Buck's 0:10:57.600 --> 0:11:00.560 rally to win by one. At the Garden, Rangers led St. 0:11:00.559 --> 0:11:02.840 Louis to nothing, then trail three two and the third 0:11:04.640 --> 0:11:07.280 hunt toward that girl stroll a little too deep, but 0:11:07.360 --> 0:11:09.840 he puts it on call stop right off sick score 0:11:10.800 --> 0:11:15.640 Patrick Denneth from the point bit set it off barbarashop 0:11:16.440 --> 0:11:20.240 Patrick's the game at three vp MM called Chris Cryer 0:11:20.240 --> 0:11:22.280 would add a power play goal. Is thirty fifth toll 0:11:22.360 --> 0:11:24.480 the season. The Rangers beat the Blues five to three, 0:11:24.800 --> 0:11:27.360 big forty eight point second half for St. John's Red 0:11:27.400 --> 0:11:30.280 Storm beat Xaver eighty one sixty six, also the big 0:11:30.280 --> 0:11:34.120 East Seaton Hall down Georgetown sev the Hoyas r O 0:11:34.360 --> 0:11:36.400 N eighteen in the Big East, and yet the school 0:11:36.400 --> 0:11:39.080 says it is committed to it's coach, who happens to 0:11:39.080 --> 0:11:42.480 be greatest player in school history. Patrick Ewing Rutgers helped 0:11:42.480 --> 0:11:44.400 at ten C double A helps with a win at Indiana. 0:11:44.800 --> 0:11:47.160 The Giants shed some payroll they cut running back to 0:11:47.200 --> 0:11:49.920 Monte Booker and tight end Kyle Rudolf, John Stash Even 0:11:49.960 --> 0:11:52.920 Bloomberg Sports neither all right, John, thanks SMP future is 0:11:52.960 --> 0:11:55.600 down down seven points down, futures down thirty four, NASTAC 0:11:55.640 --> 0:11:57.640 Future is lower by fifty four points to ten. Your 0:11:57.640 --> 0:12:01.360 treasury yield one point eight six sent you're listening to 0:12:01.440 --> 0:12:09.240 Bloomberg Daybreak, Bloomberg eleven three or other. Showers will end 0:12:09.280 --> 0:12:10.800 this morning. We'll get up to the low forties with 0:12:10.880 --> 0:12:13.760 a breeze mostly Sunday Tomorrow up for thirties. Will be 0:12:13.800 --> 0:12:16.280 in the mid forties, mostly cloudy by Saturday. Right now 0:12:16.440 --> 0:12:23.160 showers and forty four degrees in Central Park Markets. Headlines 0:12:23.200 --> 0:12:26.160 and breaking news twenty four hours a day at Bloomberg 0:12:26.240 --> 0:12:29.640 dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. 0:12:29.840 --> 0:12:39.120 This is a Bloomberg Business Flash and I'm Karen. Moscow 0:12:39.200 --> 0:12:42.360 stocks reversed earlier gains, with europe Stock six hundred index 0:12:42.480 --> 0:12:45.800 lower along with US stock index, futures oil soaring to 0:12:45.840 --> 0:12:47.959 the highest levels in two thousand eight, and we checked 0:12:48.000 --> 0:12:50.640 the markets every fifteen minutes throughout the trading day on 0:12:50.720 --> 0:12:53.520 bloomberg S and P Future is down eight points down, 0:12:53.559 --> 0:12:56.560 futures down forty six and nasdack Future is down fifty 0:12:56.559 --> 0:12:59.240 fo The decks in Germany's down nine tenths of upper 0:12:59.320 --> 0:13:01.800 set ten your treasury up to thirty seconds he had 0:13:01.840 --> 0:13:03.920 one point at six percent. That yield on the two 0:13:04.000 --> 0:13:06.960 year one point five percent. NIMEX Screwed oil is up 0:13:06.960 --> 0:13:09.439 two point four percent, up two dollars seventy five cents 0:13:09.440 --> 0:13:12.640 at a hundred thirteen dollars thirty five cents of barrel comexs. 0:13:12.679 --> 0:13:15.040 Gold is up six tenths per center, eleven dollars forty 0:13:15.120 --> 0:13:18.360 cents at nineteen thirty three seventy ounce. The euro one 0:13:18.360 --> 0:13:20.920 point one zero eight five against a dollar British found 0:13:20.920 --> 0:13:23.079 one point three three eight eight, the ends at one 0:13:23.120 --> 0:13:26.320 fifteen point seven three and Bitcoin moving lower at forty 0:13:26.320 --> 0:13:29.200 three thousand, two hundred fifty dollars today We are looking 0:13:29.200 --> 0:13:31.560 for the weekly report on initial jobless claims at any 0:13:31.600 --> 0:13:34.320 thirty Wall Street, time at tenants, factory orders and durable 0:13:34.360 --> 0:13:36.880 goods orders, as well as a look at service industries 0:13:37.080 --> 0:13:40.120 and best buying gap among companies. Schedule to report earnings today. 0:13:40.400 --> 0:13:42.840 As a Bloomberg Business Flash, now here's Munchael Barr with 0:13:42.920 --> 0:13:45.280 more unless going on around the world. Muncle, Good morning, 0:13:45.720 --> 0:13:49.040 Good morning Karen. The UN Refugee Agency says one million 0:13:49.040 --> 0:13:51.920 people have fled Ukraine sense Russia invaded the country a 0:13:51.920 --> 0:13:56.679 week ago. Bemal Russia fired missiles at Pieve overnight and 0:13:56.800 --> 0:13:59.880 stepped up their campaign to take cities and the coastal south. 0:14:00.520 --> 0:14:04.280 In a reversal, Russian and Belarusian athletes have been banned 0:14:04.320 --> 0:14:06.960 from the Paralympics for their country's roles in the war 0:14:07.000 --> 0:14:11.319 in Ukraine. The International Paralympic Committee announced the about face 0:14:11.679 --> 0:14:14.080 less than twenty four hours after saying it would allow 0:14:14.160 --> 0:14:18.240 Russian and Belarusian athletes to compete when the game's open tomorrow. 0:14:18.600 --> 0:14:20.880 In the NBA, the Knicks lost. In the NHL, the 0:14:20.960 --> 0:14:23.880 Rangers won. Global news twenty four hours a day on 0:14:24.080 --> 0:14:27.680 air and on Bloomberg Quicktake, powered by more than twenty 0:14:27.760 --> 0:14:30.320 seven hundred journalist and analysts in more than one d 0:14:30.440 --> 0:14:33.840 twenty countries. I'm Michael bar This is Bloomberg Nathan. Thanks Michael. 0:14:33.880 --> 0:14:36.280 It's five nineteen on Wall Street Line from the Bloomberg 0:14:36.320 --> 0:14:40.080 Intracted Broker Studios. This is Bloomberg Daybreak, and our executive 0:14:40.160 --> 0:14:43.200 editor for International Government, Rosalind Matheson is with us this 0:14:43.280 --> 0:14:45.640 morning as the war in Ukraine enters its second week. 0:14:46.120 --> 0:14:48.320 Ros Good morning, if you could get us up to 0:14:48.400 --> 0:14:51.000 speed on the latest we're hearing on developments on the ground. 0:14:52.080 --> 0:14:55.560 What we're hearing is again a sustained and concentration of 0:14:55.680 --> 0:14:59.120 effort in the southern part of Ukraine, the city of 0:14:59.120 --> 0:15:04.000 Tisson of cool falling, and now reports that Russian naval 0:15:04.120 --> 0:15:07.480 vessels are moving towards the port of Odessa. Of course, 0:15:07.480 --> 0:15:11.040 that's a really key city and port um in the 0:15:11.080 --> 0:15:14.280 south of Ukraine, that's really the gateway for trade in 0:15:14.320 --> 0:15:18.240 commodities and other things into many other parts of Europe. 0:15:18.280 --> 0:15:22.480 And very sustained fighting going on in the vicinity of 0:15:22.520 --> 0:15:26.440 Odessa and Mario Paul another city that's also there. So 0:15:26.880 --> 0:15:30.120 we're seeing signs of progress one of a better world 0:15:30.160 --> 0:15:33.400 by Russian forces on the ground in the south. That's 0:15:33.480 --> 0:15:36.720 even as they remain quite bogged down in the north, 0:15:37.200 --> 0:15:41.440 still no movement closer to Kiev, the capital, even though 0:15:41.480 --> 0:15:44.880 there's been shelling overnight in both the capital Kiev and 0:15:45.040 --> 0:15:49.480 the second biggest city in Ukraine, Hakiv. So we're seeing 0:15:49.960 --> 0:15:53.560 movement in the south pretty much the status quo in 0:15:53.600 --> 0:15:56.520 the north, but certainly the sense that Russia is making 0:15:56.560 --> 0:15:59.600 some progress in capturing some key cities here. Well. With 0:15:59.720 --> 0:16:02.320 Russia making that kind of progress, particularly in the south, 0:16:02.400 --> 0:16:06.320 what could it tell us about the potential strategy from 0:16:06.480 --> 0:16:09.640 Russia as it continues this campaign. What could be coming next. 0:16:11.200 --> 0:16:15.320 What we're expecting is further aerial bombardment, in particular efforts 0:16:15.400 --> 0:16:19.000 to squeeze these cities. It's very clear that Ukrainians who 0:16:19.000 --> 0:16:21.560 are based in the south in these places are unable 0:16:22.000 --> 0:16:24.320 to get out or certainly struggling to get out. At 0:16:24.320 --> 0:16:27.320 this point. There's no corridor really for them to leave 0:16:27.400 --> 0:16:30.840 safely and for food and medicine to come the other way. 0:16:30.960 --> 0:16:33.560 So what you're seeing is these cities coming into sort 0:16:33.560 --> 0:16:36.920 of states a relative desperation at this point as we 0:16:37.040 --> 0:16:40.360 enter the second week of this conflict, many smaller towns 0:16:40.640 --> 0:16:43.840 in the east of Ukraine have been destroyed and villages 0:16:44.240 --> 0:16:47.920 bombed and destroyed altogether, so people are there unable to go. 0:16:48.120 --> 0:16:50.760 So do you get a point where things become so 0:16:50.840 --> 0:16:53.560 desperate in those places that people decide to give up 0:16:53.840 --> 0:16:56.520 the fight? So far, the resilience of the Ukrainian people 0:16:56.560 --> 0:16:59.840 and their military has probably shocked the Russians in terms 0:16:59.840 --> 0:17:01.960 of what they thought their progress would be so far, 0:17:02.320 --> 0:17:05.640 and we're certainly seeing that desperation signs of that playing out, 0:17:05.720 --> 0:17:09.480 as more than a million refugees have now fled the country. 0:17:09.640 --> 0:17:12.760 Is Europe ready for this kind of influx these crowds 0:17:12.840 --> 0:17:17.680 of Ukrainians heading their way? Certainly, the the European Union 0:17:17.680 --> 0:17:20.320 seems to be doing as much as it can, funneling 0:17:20.359 --> 0:17:23.680 resources and help further to the east to assist those 0:17:23.680 --> 0:17:26.679 countries who are receiving the bulk of people. That includes 0:17:26.720 --> 0:17:29.920 countries like Poland, of course, but also the EU centrally 0:17:30.000 --> 0:17:32.760 doing things like expert out in the ability of Ukrainians 0:17:32.800 --> 0:17:35.359 to work in the European Union, to be able to 0:17:35.359 --> 0:17:38.800 move around without too much difficulty, and that's a little 0:17:38.800 --> 0:17:41.080 bit unusual for the EU, we should say, which as 0:17:41.119 --> 0:17:43.480 often as a block rappled with how to take a 0:17:43.480 --> 0:17:47.800 collective approach to migration crisis that we've seen come in 0:17:47.880 --> 0:17:51.480 previous years and indeed decades, and a tendency in some 0:17:51.520 --> 0:17:54.000 countries at least to say, well, we don't want to 0:17:54.040 --> 0:17:56.560 have too many people come here because of the economic 0:17:56.600 --> 0:17:59.000 burden that would place on us. At least in this 0:17:59.119 --> 0:18:02.399 early stage, it's very much open arms or around. Whether 0:18:02.480 --> 0:18:07.120 that continues, particularly the exodus picks up even more, remains 0:18:07.160 --> 0:18:09.520 to be seen. But right now it's doing as much 0:18:09.560 --> 0:18:12.320 as they can, and of course we're watching the impact 0:18:12.400 --> 0:18:15.760 of sanctions as well, the credit reading of Russia being 0:18:15.800 --> 0:18:19.920 cut and assets of oligarchs being seized. Are we seeing 0:18:19.960 --> 0:18:24.560 any evidence that this financial war that's taking place with 0:18:24.680 --> 0:18:28.919 Russia's having any impact on the ground. Doesn't appear to be. 0:18:29.000 --> 0:18:32.280 If anything, it's expediting things, because that's the Russian president 0:18:32.359 --> 0:18:38.080 wants to get his stated goals in Ukraine achieved sooner 0:18:38.160 --> 0:18:41.160 rather than later. So if it makes him perhaps more erratic, 0:18:41.760 --> 0:18:45.480 more dangerous, more willing to do things, that might be 0:18:45.560 --> 0:18:48.800 a repercussion on the ground. In Russia. You're seeing a 0:18:48.840 --> 0:18:53.359 strong sense of resignation amongst ordinary Russians that the difficulties 0:18:53.359 --> 0:18:57.000 they're now facing in their daily lives to access certain goods, 0:18:57.000 --> 0:18:59.560 to make certain purchases, to even move around the train 0:18:59.600 --> 0:19:02.120 station with their bank cards which may not be working 0:19:02.680 --> 0:19:05.040 at the moment. There seems to be quite a lot 0:19:05.080 --> 0:19:08.960 of disquiet amongst the upper echelons in terms of oligarchs, 0:19:08.960 --> 0:19:11.520 but no sign at least so far that that's translating 0:19:11.640 --> 0:19:15.280 into immediate risk for putting himself. Thanks for keeping us 0:19:15.359 --> 0:19:18.320 up to speed on all this rose as always Rosalind Mathison, 0:19:18.359 --> 0:19:21.359 our executive editor for International Government for Bloomberg News, as 0:19:21.400 --> 0:19:25.000 we continue monitoring developments in the war in Ukraine. Now 0:19:25.080 --> 0:19:28.280 intoday eight, looking ahead to the market open this morning 0:19:28.280 --> 0:19:30.399 on Wall Street, futures are moving a bit lower. We 0:19:30.440 --> 0:19:33.240 have SMP futures now down nine and a half point, 0:19:33.280 --> 0:19:36.400 Staff futures are lower by sixty six and NASTAC futures 0:19:36.440 --> 0:19:39.200 on the decline by almost sixty two points. The tenure 0:19:39.240 --> 0:19:41.640 treasury is now up one thirty second the yield one 0:19:41.680 --> 0:19:44.960 point eight seven percent. The surge in crude continues, with 0:19:45.040 --> 0:19:48.040 Brent a one a hundred fifteen dollars eight cents of 0:19:48.040 --> 0:19:51.159 barrel for the international benchmark. West Texas Intermediate's up two 0:19:51.200 --> 0:19:54.280 point three percent a hundred thirteen dollars twelve cents. We'll 0:19:54.280 --> 0:19:56.360 have more on the oil surge and will we see 0:19:56.400 --> 0:19:59.720 a wage surge in the February jobs report. All that 0:20:00.000 --> 0:20:01.960 it up as we check your top stories of the morning. 0:20:02.280 --> 0:20:08.720 You're listening to Bloomberg Daybreak Bloomberg eleven three oh Whether 0:20:08.800 --> 0:20:10.760 this rain will end early this morning. We'll have clearing, 0:20:10.800 --> 0:20:14.960 breezy conditions low forties for highs upper thirties tomorrow, mostly 0:20:15.000 --> 0:20:18.119 cloudie by Saturday, mid forties. Right now, rain in forty 0:20:18.160 --> 0:20:24.960 four in Central Park. Broadcasting live from the Bloomberg Interactive 0:20:25.000 --> 0:20:28.880 Broker Studio in New York. Bloomberg eving freo to Washington, 0:20:28.960 --> 0:20:32.280 d C, Bloomberg ninety nine one to Boston, Bloomberg one 0:20:32.359 --> 0:20:35.520 O six one does San Francisco, Bloomberg NAM sixty to 0:20:35.600 --> 0:20:38.800 the country, Sirius XM Chadle one nineteen and around the 0:20:38.840 --> 0:20:42.920 globe the Bloomberg Business and Bloomberg Radio dot Com. This 0:20:43.200 --> 0:20:51.760 is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. 0:20:51.760 --> 0:20:54.720 I'm Nathan Hagar and I'm Karen Moscow. We're just about 0:20:54.720 --> 0:20:57.080 four hours away from the open of US trading. Let's 0:20:57.119 --> 0:20:58.480 catch you up to date on the news you need 0:20:58.520 --> 0:21:00.639 to know. At this hour, the war in Ukraine is 0:21:00.760 --> 0:21:04.479 entering its second week. Russian forces are pressing ahead, firing 0:21:04.520 --> 0:21:07.879 missiles at the capital city of Kiev. They're also stepping 0:21:07.960 --> 0:21:11.280 up campaigns to take cities in the south. Ukraine's President 0:21:11.359 --> 0:21:14.800 Vladimir Zelenski says Russian troops are being met with force. 0:21:15.760 --> 0:21:19.439 I don't sam our army is doing everything to fully 0:21:19.480 --> 0:21:23.280 break the enemy. Nearly nine thousand Russians have been killed 0:21:23.440 --> 0:21:27.600 in one week. President Vladimir Zelenski is telling Russian troops 0:21:27.600 --> 0:21:30.000 to go home. Karen, We're seeing the war continue to 0:21:30.040 --> 0:21:33.200 have a massive impact on commodities. Let's get the latest 0:21:33.240 --> 0:21:36.399 on that line from Bloomberg's John Tucker. John Nathan Bloomberg's 0:21:36.400 --> 0:21:38.959 gauge of raw Materials is closing in on the biggest 0:21:39.000 --> 0:21:42.920 weekly game in sixty years as banks, importers, and shippers 0:21:43.240 --> 0:21:46.800 steer clear of Russian exports. Brant crude stared to near 0:21:46.840 --> 0:21:50.560 one D twenty of barrel aluminium hit a record, wheat 0:21:50.680 --> 0:21:53.280 rallied to the highest level since two thousand and eight, 0:21:53.640 --> 0:21:56.479 and the decision by OPEK plots to leave output plans 0:21:56.640 --> 0:22:00.960 unchanged as to the risk that inflation will slow the economy. 0:22:01.119 --> 0:22:04.800 Even before the invasion, US retail gasoline was at its 0:22:04.840 --> 0:22:08.120 highest level since two thousand fourteen. Live in New York. 0:22:08.160 --> 0:22:10.560 I'm John Tucker, Bloomberg Daybreak. All right, John, thank you 0:22:10.640 --> 0:22:13.840 for speaking of inflation. J Powell addresses the topic today 0:22:13.840 --> 0:22:16.639 and another round of congressional testimony. The FED share is 0:22:16.680 --> 0:22:19.720 making the fight against prices his top priority, saying he 0:22:19.800 --> 0:22:22.240 supports a right high later this month and next to 0:22:22.240 --> 0:22:24.880 the Fed after that. Karen will be Friday's jobs report. 0:22:25.080 --> 0:22:28.320 Rapid wage growth has left business is scrambling to keep up. 0:22:28.480 --> 0:22:31.120 Looks like that trend is going to continue. Bloomberg's Grenita 0:22:31.160 --> 0:22:33.480 Young joins us, but the details on that. Good morning, Granita, 0:22:33.640 --> 0:22:36.800 Good morning. The February jobs report is expected to show 0:22:36.840 --> 0:22:39.960 average hourly earnings rose a half a percent last month, 0:22:40.200 --> 0:22:43.560 pushing year over year games close to six percent, and 0:22:43.600 --> 0:22:47.720