WEBVTT - Bloomberg Daybreak: March 18, 2022 - Hour 1 (Radio) 0:00:01.040 --> 0:00:03.840 A five from the Bloomberg Interactive Burger Studios. This is 0:00:03.840 --> 0:00:07.560 Bloomberg day Break for Friday, March eighteen two. Coming up, 0:00:07.600 --> 0:00:10.680 the Tower President invite and speaks with China's Shi Jinking 0:00:10.760 --> 0:00:13.039 in an effort to help end the war in Ukraine. 0:00:13.240 --> 0:00:16.280 Kentdagon morens that Russia may threaten to use nuclear weapons 0:00:16.280 --> 0:00:19.239 if it's invasion of Ukraine is stalled. Investors brace for 0:00:19.280 --> 0:00:21.919 more volatility as the trading week comes to a close 0:00:22.079 --> 0:00:25.760 and the Dirner requests FDA approval for a fourth COVID shot. 0:00:25.880 --> 0:00:28.800 Former New York Governor Clomo says he's opened to running 0:00:28.840 --> 0:00:31.360 for his old job. Plus Sarah Palin is appealing or 0:00:31.440 --> 0:00:34.160 loss in the deformation suit against The New York Times' 0:00:34.240 --> 0:00:37.320 Michael Laaren More ahead, I'm John Staddar in sports Islanders 0:00:37.320 --> 0:00:40.159 stopped the Rangers at the Garden and Sat Peter's stunned 0:00:40.240 --> 0:00:44.680 Kentucky in the n C Double Day Tournament. That's all 0:00:44.720 --> 0:00:48.640 straight ahead on Bloomberg day Break on Bloomberg Element Trio, 0:00:48.760 --> 0:00:53.080 New York, Bloomberg one, Washington, d C, Bloomberg one O 0:00:53.240 --> 0:00:57.680 six one, Boston, Bloomberg nine sixties, San Francisco, Syrius x 0:00:57.880 --> 0:01:00.920 M one, nineteen and around the world old on Bloomberg 0:01:01.000 --> 0:01:07.840 Radio dot com and via the Bloomberg Business. Thank good 0:01:07.840 --> 0:01:11.040 Friday morning. I'm Nathan Hagar and I'm Karen Moscow, and 0:01:11.160 --> 0:01:13.960 futures are lower this morning. We're coming up to five 0:01:13.959 --> 0:01:15.639 o one on Wall Street, and we check the markets 0:01:15.680 --> 0:01:18.600 every fifteen minutes throughout the trading day on Bloomberg SMP 0:01:18.800 --> 0:01:21.040 futures down twenty three points to down, futures down a 0:01:21.120 --> 0:01:24.880 hundred sixty four NASDACK futures down d the decks in 0:01:24.959 --> 0:01:28.880 Germany's down half percent. Ten year treasury up four thirty seconds, 0:01:29.040 --> 0:01:31.280 l two point one five percent, and they yield on 0:01:31.360 --> 0:01:34.440 the two year one point nine two nim X screwed 0:01:34.520 --> 0:01:37.080 oil is up seven ten percent or seventy two cents 0:01:37.080 --> 0:01:40.000 and a hundred three dollars seventy cents of barrel. The 0:01:40.080 --> 0:01:44.440 euro one point one zero six seven against the dollar. Nathan, 0:01:44.520 --> 0:01:46.319 all right, Karen, we'll have more on the markets in 0:01:46.400 --> 0:01:48.720 just a minute, but first, this could be a pivotal 0:01:48.760 --> 0:01:51.760 day in Russia's war with Ukraine. In just a few hours, 0:01:51.840 --> 0:01:54.360 President Biden holds his first call in months with one 0:01:54.400 --> 0:01:58.280 of Vladimir Putin's closest allies Chinese president she Jin Ping. 0:01:58.920 --> 0:02:02.440 This comes as Russia's forces appear bogged down outside Ukraine's 0:02:02.480 --> 0:02:05.560 capital city, Kiev. We get more from Bloomberg's Amy Morris 0:02:05.600 --> 0:02:10.560 in Washington. While the UK Ministry of Defense believes Russia's 0:02:10.680 --> 0:02:13.840 invasion has stalled on all fronts, that has not stopped 0:02:13.880 --> 0:02:18.040 the intense battles and shelling around schools, hospitals, and residential areas, 0:02:18.280 --> 0:02:21.840 leading US officials to believe war crimes have been committed. Now, 0:02:21.840 --> 0:02:25.760 President Biden meets today with China President shi Jinping. Secretary 0:02:25.800 --> 0:02:28.800 of State Anthony Lincoln says Biden will issue a warning 0:02:28.840 --> 0:02:32.919 to Beijing that helping Russia will have consequences. We believe China, 0:02:32.960 --> 0:02:35.280 in particular has a responsibility to use its influence with 0:02:35.320 --> 0:02:39.080 President Putin and to defend the international rules and principles 0:02:39.080 --> 0:02:43.160 that it professes to support. Instead, it appears that China 0:02:43.240 --> 0:02:45.680 is moving in the opposite direction. This as the Pentagon 0:02:45.760 --> 0:02:48.720 warns Russia may threaten to use nuclear weapons if their 0:02:48.760 --> 0:02:52.200 invasion of Ukraine is stalled. In Washington, I'm Maymy Morris, 0:02:52.240 --> 0:02:54.720 Bloomberg daybreak, All right, Amy, thank you. Well. As stiff 0:02:54.760 --> 0:02:58.560 defense from Ukraine and economic sanctions raised speculation of nuclear 0:02:58.600 --> 0:03:02.160 threats from Russia. Simer, Secretary of Defense and CIA director 0:03:02.280 --> 0:03:06.520 Leon Panetta says diplomatic talks won't be enough to deter Putin. 0:03:06.760 --> 0:03:09.639 Panetta said the U S should continue to arm Ukraine 0:03:09.680 --> 0:03:13.640 as Putin doubles down. This is a power game. Putin 0:03:13.800 --> 0:03:18.080 understands power. He really doesn't understand diplomacy very much. He 0:03:18.160 --> 0:03:22.200 understands power. And the only way to convince Putin that 0:03:22.360 --> 0:03:24.679 this is not going anywhere and that he should take 0:03:24.800 --> 0:03:27.200 some kind of off ramp is to continue to beat 0:03:27.280 --> 0:03:30.440 him on the battlefield. Former Defense Secretary Leon Panetta made 0:03:30.440 --> 0:03:33.400 the comments on Bloomberg's Balance of Power with David weston 0:03:33.480 --> 0:03:36.080 Catch the program of week Days at noon Wall Street 0:03:36.080 --> 0:03:39.040 Time on both Bloomberg Radio and television. The cost of 0:03:39.120 --> 0:03:42.080 ensuring Russian debt against default has dropped. This morning. Karen 0:03:42.120 --> 0:03:45.160 Bloomberg News has learned funds earmarked for interest payments on 0:03:45.200 --> 0:03:48.080 the Russian government's dollar notes were sent to the payment agent. 0:03:48.480 --> 0:03:51.440 Sources say JP Morgan Chase process the funds and sent 0:03:51.520 --> 0:03:54.120 the money onto City Group, and that is spring optimism. 0:03:54.160 --> 0:03:57.160 The bonds may still be settled in dollars. Well, Nathan, 0:03:57.160 --> 0:03:59.280 if the war and a FED rate high were not 0:03:59.480 --> 0:04:01.960 enough for in esters to handle. There could be more 0:04:02.120 --> 0:04:05.400 volatility than usual today and we get the latest live 0:04:05.480 --> 0:04:08.480 with Bloomberg's John Tucker. John, good morning, Good morning, Karen. 0:04:08.520 --> 0:04:11.160 It's the quarterly event known as triple witching. Single stock 0:04:11.160 --> 0:04:14.000 and index level options are set to expire today. At 0:04:14.040 --> 0:04:16.679 the same time, more near the money options are maturing 0:04:16.760 --> 0:04:20.479 than at any time. Since. If that's not enough, there's 0:04:20.520 --> 0:04:24.200 a rebalancing of benchmark index is a combination that tends 0:04:24.279 --> 0:04:26.880 to sparks single day volumes that rank among the highest 0:04:26.920 --> 0:04:30.120 of the year. Lori Calvacine ahead of US Equity Strategy 0:04:30.120 --> 0:04:33.560 at RBC Capital Markets. As the wild swings won't end here, 0:04:33.920 --> 0:04:36.320 I think that volatility is likely to stay elevated for 0:04:36.400 --> 0:04:40.000 quite some time. We like balanced portfolios between growth and value. 0:04:40.320 --> 0:04:42.440 We do think that growth stocks are ultimately going to recover, 0:04:42.480 --> 0:04:44.000 but we think that's going to be because markets are 0:04:44.000 --> 0:04:46.120 going to continue to price in nervousness and what high 0:04:46.200 --> 0:04:50.240 quality exposure. That's Lori Calvasine at RBC. The rebalance in 0:04:50.279 --> 0:04:53.600 the index alone could lead to thirty three billion dollars 0:04:53.600 --> 0:04:56.200 of stock trades in today's session. Line to New York 0:04:56.200 --> 0:04:59.480 on John Tucker Bloomberg Daybreak. All right, John, thanks, there's 0:04:59.480 --> 0:05:02.560 also another day of volatility in nickel trading in London 0:05:02.760 --> 0:05:05.320 this morning. Let's go live to the city get the 0:05:05.360 --> 0:05:08.360 latest of Bloomberg's You and Parts. Good morning You, Good 0:05:08.400 --> 0:05:11.160 morning Nathan and Karen. Yet another glitchy open for the 0:05:11.240 --> 0:05:13.920 nickel market today, as the price continues its retreat from 0:05:13.920 --> 0:05:17.320 an unprecedented short squeeze last week. Nickel dropped by the 0:05:17.400 --> 0:05:21.479 maximum allowed for a third straight day, nickel tumbling twelve 0:05:21.560 --> 0:05:23.680 percent to the new daily limit, a limit you've only 0:05:23.720 --> 0:05:26.599 just been increased from eight percent in the previous session. 0:05:26.920 --> 0:05:29.960 A frustrating Friday, after a frustrating week for the London 0:05:29.960 --> 0:05:32.760 Metal Exchange. They will be very pleased that tomorrow is 0:05:32.800 --> 0:05:36.039 Saturday live in London. I'm you and pots Pin Big Daybreak, 0:05:36.240 --> 0:05:37.960 are you and thank you? Back here in the US 0:05:38.040 --> 0:05:41.680 and corporate news, General Electric has slash CEO Larry Cops 0:05:41.720 --> 0:05:45.279 paypackage by ten million dollars a year. It's a surprise 0:05:45.360 --> 0:05:49.080 move in response to last year's rebooked by rebuke by shareholders. 0:05:49.240 --> 0:05:52.520 Copps total target compensation went from about twenty one million 0:05:52.600 --> 0:05:54.560 to eleven million. All right, let's take a look at 0:05:54.600 --> 0:05:57.159 some stocks moving in early trading this morning. Carrien shows 0:05:57.160 --> 0:05:59.200 of FedEx, who down about three and a half percent 0:05:59.279 --> 0:06:02.719 the delivery come but he posted quarterly profit below analyst estimates. 0:06:03.000 --> 0:06:05.799 Rising costs related to a US labor shortage and lower 0:06:05.839 --> 0:06:09.479 than expected package volume dragged on gains from pricing increases 0:06:09.520 --> 0:06:13.160 at FedEx, and shares of Game Stopper down nearly seven percent. 0:06:13.279 --> 0:06:16.320 That company reported a surprise loss during the holiday quarter, 0:06:16.800 --> 0:06:19.159 and we turned to the pandemic. Now, Nathan Maderna is 0:06:19.200 --> 0:06:22.560 asking for US government approval for a fourth COVID shot 0:06:22.640 --> 0:06:24.920 for adults. So we get the latest lie from Bloomberg's 0:06:24.920 --> 0:06:27.159 Reny to Young. Good morning Rady, Now, good morning Karen. 0:06:27.240 --> 0:06:31.040 This would cover significantly more people than Fiser's earlier request 0:06:31.160 --> 0:06:34.960 for emergency authorization for a fourth shot for those over 0:06:35.080 --> 0:06:38.160 sixty five years old. Right now, there's a heated debate 0:06:38.320 --> 0:06:42.200 over how long vaccines protect from infection and whether repeated 0:06:42.240 --> 0:06:45.960 shots are necessary to prevent severe disease and death. Meantime, 0:06:46.040 --> 0:06:49.279 Dr Anthony Fauci says the US could see COVID nineteen 0:06:49.279 --> 0:06:53.039 cases rise again and vulnerable people would likely need a 0:06:53.080 --> 0:06:56.120 fourth dose. Live in New York I'm reneed a young 0:06:56.160 --> 0:06:59.360 Bloomberg debreak rened to thank you. SMP futures right now 0:06:59.400 --> 0:07:01.680 down twenty three point. Staff futures are lower by a 0:07:01.720 --> 0:07:05.320 hundred sixty seven and Nastack futures down eight one points. 0:07:05.360 --> 0:07:08.400 The tenure treasury is up four thirty seconds, the yield 0:07:08.440 --> 0:07:11.400 two point one five yield on the two year note 0:07:11.400 --> 0:07:15.720 one point nine seven percent. Straight ahead your latest local 0:07:15.760 --> 0:07:23.240 headlines and a check of sports. This is Bloomberg. It's 0:07:23.280 --> 0:07:25.320 now five oh seven on Wall Street where fifty one 0:07:25.360 --> 0:07:28.040 degrees in Central Park already got a crash northbound Route 0:07:28.040 --> 0:07:30.440 one by Plainfield Avenue and Edison to tails coming up 0:07:30.440 --> 0:07:32.920 in traffic. First, Michael Barr is here with what else 0:07:33.000 --> 0:07:35.080 is going on in New York and around the world. 0:07:35.080 --> 0:07:37.880 We made it to Friday, Michael, Yes we did. Nathan, 0:07:37.920 --> 0:07:40.280 Thank you very much and good morning. New York. Governor 0:07:40.320 --> 0:07:44.360 Kathy Hocle says that state agencies and public authorities will 0:07:44.400 --> 0:07:47.440 cease business with companies that have continued to do business 0:07:47.440 --> 0:07:51.240 with Russia. Hoc Will previously signed an executive order banning 0:07:51.240 --> 0:07:55.120 state agencies from doing business with Russian companies. Hocal's Folk 0:07:55.240 --> 0:07:58.400 and Younkers where now We're going to prohibit any state 0:07:58.480 --> 0:08:02.360 agencies and authorities from the contract with any entities that 0:08:02.360 --> 0:08:05.400 are still doing business in Russia. Governor Hocoll also said 0:08:05.440 --> 0:08:08.000 New York will also send one hundred thousand pounds of 0:08:08.040 --> 0:08:12.840 medical supplies, including masks and gowns, to Ukraine. Andrew Cuomo 0:08:12.920 --> 0:08:15.600 says he's open to running for New York governor again, 0:08:16.120 --> 0:08:20.040 it would consider creating his own political party to do so. Cuomo, 0:08:20.080 --> 0:08:23.480 a Democrat who resigned in August amid a sexual harassment scandal, 0:08:23.720 --> 0:08:26.720 delivered his second public address in as many weeks, this 0:08:26.840 --> 0:08:29.480 time to a group of clergy in the Bronx Knew. 0:08:29.560 --> 0:08:32.360 Details are emerging about the driver of a pickup truck 0:08:32.640 --> 0:08:36.640 that slammed into a college golf team van in West Texas, 0:08:36.760 --> 0:08:39.920 killing nine people. According to the NTSB, it was the 0:08:39.920 --> 0:08:42.760 failure of the left front tire of the pickup. In 0:08:42.920 --> 0:08:46.840 TSB vice chair Bruce Landsberg says, as for the driver 0:08:46.960 --> 0:08:50.280 of the pickup, a thirteen year old child was behind 0:08:50.320 --> 0:08:53.400 the wheel of the pickup truck. The NTSB s Bruce 0:08:53.520 --> 0:08:56.280 Landsberg says the spare tire failed on the pickup at 0:08:56.320 --> 0:09:00.000 seventy five hour that resulted in the truck veering into 0:09:00.160 --> 0:09:03.080 the golf team bus. At least five people died and 0:09:03.160 --> 0:09:06.840 several were injured in a chain reaction crash involving dozens 0:09:06.880 --> 0:09:10.840 of vehicles on an interstate in southeast Missouri. Police say 0:09:10.960 --> 0:09:14.120 thick fog led to the crash about a hundred fifty 0:09:14.120 --> 0:09:18.160 miles south of St. Louis. Forecasters say the multi year 0:09:18.200 --> 0:09:22.400 mega drought that's drained western US reservoirs and parched crop 0:09:22.480 --> 0:09:26.360 lands across California shows no signs of easing. The National 0:09:26.400 --> 0:09:30.160 Oceanic and Atmospheric Administration says the region faces another spring 0:09:30.160 --> 0:09:34.360 and summer of dwindling water resources and rising temperatures. Sarah 0:09:34.440 --> 0:09:37.360 Palin is appealing or loss in the defamation suit she 0:09:37.520 --> 0:09:40.719 filed against The New York Times. Palin says she was 0:09:40.800 --> 0:09:43.960 denied a fair trial. The former Alaska governor sued over 0:09:44.000 --> 0:09:46.720 an opinion piece that linked her to a deadly shooting. 0:09:46.920 --> 0:09:49.440 Global News twenty four hours a day on air and 0:09:49.640 --> 0:09:52.840 on Bloomberg Quick Take, powered by more than twenty seven 0:09:52.880 --> 0:09:55.560 hundred journalists and analysts in more than a hundred twenty 0:09:55.600 --> 0:09:59.120 countries on Michael bar this is Bloomberg. Nathan all right, Michael, 0:09:59.120 --> 0:10:05.640 thank you come up to five ten on Wall Street 0:10:05.640 --> 0:10:08.200 time for the Bloomberg Sports up date. Good morning John Session, 0:10:08.280 --> 0:10:11.559 Good morning Nathan. They are celebrated in Jersey City. A 0:10:11.600 --> 0:10:14.839 couple of months ago. St. Peter's record was three and six, 0:10:15.000 --> 0:10:17.720 lost to l i U, lost to Stony Brook, lost 0:10:17.720 --> 0:10:19.920 to St. John's by twenty one, and yet the Peacock 0:10:19.960 --> 0:10:22.400 is able to win their conference. Sturney gain entry to 0:10:22.440 --> 0:10:24.480 the n C Double A Tournament, where they pulled off 0:10:24.520 --> 0:10:28.760 a huge first round stunner, beating Mighty Kentucky eighty five, 0:10:28.840 --> 0:10:31.040 seventy nine and overtime, only the tenth time ever a 0:10:31.120 --> 0:10:34.720 fifteen seed has beaten a two arrow Banks to twenty 0:10:34.800 --> 0:10:38.160 seven point. It was amazing, you know, playing basketball. You 0:10:38.200 --> 0:10:41.600 grew up watching college basht on college basketball, the Marsh 0:10:41.600 --> 0:10:45.040 Matters tournament. So just letting that sink game, knowing that 0:10:45.240 --> 0:10:47.200 the game was over, we got it just overally good. 0:10:47.200 --> 0:10:48.839 It was the biggest upset of the day, not the 0:10:48.880 --> 0:10:51.240 only one. Twelveth seed in New Mexico State knocked off 0:10:51.320 --> 0:10:54.560 Yukon and Richmond upset Iowa. Since seeding began in nineteen 0:10:54.600 --> 0:10:57.920 seventy nine, Richmond has won nine times as a twelve 0:10:57.960 --> 0:10:59.720 seed or lower. No other school has done it more 0:10:59.720 --> 0:11:02.400 than four were times at the Garden. Islanders got a 0:11:02.440 --> 0:11:04.400 Kyle palm Mery go with less than privments to play 0:11:04.400 --> 0:11:06.280 and beat the Rangers two to one. The Ranger goal 0:11:06.640 --> 0:11:09.360 the forty the year for Chris Rider. Twenty one of 0:11:09.360 --> 0:11:11.439 those have been on the power play NIX and nets 0:11:11.480 --> 0:11:14.440 both at home games. Tonight, Yankees play the Pirates in Bradenton. 0:11:14.480 --> 0:11:17.920 They're brief the opener. The Giants have released veteran safety 0:11:17.960 --> 0:11:20.640 Logan Ryan Big. NFL trade went down last night. Green 0:11:20.679 --> 0:11:23.600 base and Star wide receiver Davante Adams to Las Vegas 0:11:23.960 --> 0:11:26.079 for first and second round draft picks, and Adams is 0:11:26.120 --> 0:11:28.760 already breed to a new five year contract with the Raiders. 0:11:29.040 --> 0:11:32.680 Brown's quarterback Baker Mayfield has requested a trade upset that 0:11:32.720 --> 0:11:36.280 Cleveland showed interest in acquiring to Shaun Watson. Watson is 0:11:36.320 --> 0:11:39.280 expected to be dealt by Houston, but to either Atlanta 0:11:39.440 --> 0:11:42.880 or New Orleans. John stash Ower, Bloomberg Sports, Nacren all Right, 0:11:42.920 --> 0:11:45.640 John thanks SMP futures now down twenty five point, Staff 0:11:45.640 --> 0:11:48.400 futures down a hundred seventy eight, Nastack futures down eighty 0:11:48.440 --> 0:11:51.280 seven points ten your treasure. You have four thirty seconds. 0:11:51.320 --> 0:11:55.200 The yield two point one five percent. President Biden set 0:11:55.240 --> 0:11:58.720 to call China's shi Jin Ping on the war in Ukraine, 0:11:58.760 --> 0:12:01.800 will preview it next with Bloomberg's and the current in 0:12:01.920 --> 0:12:08.640 Hong Kong. This is Bloomberg Bloomberg eleven three oh weather 0:12:08.679 --> 0:12:10.960 clouds and Patchee fog give way to sunshine today behind 0:12:11.000 --> 0:12:13.840 in your seventy degrees, periods of rain Tomorrow low sixties, 0:12:14.120 --> 0:12:17.600 upper fifties, partly sunny by Sunday right now fifty one 0:12:17.679 --> 0:12:23.960 and partly cloudy in Central Park Markets. Headlines and breaking 0:12:24.000 --> 0:12:26.880 news twenty four hours a day at Bloomberg dot Com, 0:12:27.000 --> 0:12:30.559 the Bloomberg Business at and at Bloomberg Quick Tape. He's 0:12:30.559 --> 0:12:39.720 a Bloomberg Business Flash and I'm Karen Moscow. Futures are 0:12:39.760 --> 0:12:42.880 lower this morning, SMP futures down twenty eight points down, 0:12:42.920 --> 0:12:45.920 futures down a hundred ninety two, Nastack futures down ninety eight. 0:12:46.000 --> 0:12:48.480 The ten year treasury up four thirty seconds, YELD two 0:12:48.480 --> 0:12:51.280 point one five percent held on the two year one 0:12:51.280 --> 0:12:54.720 point nine one. Nimex screwed oils up seven ten percent 0:12:54.840 --> 0:12:56.959 or seventy cents at a hundred three dollars sixty three 0:12:56.960 --> 0:13:00.360 cents of barrel and Bitcoin this morning is at forty thousand, 0:13:00.440 --> 0:13:03.319 five hundred seventy dollars, down four tens per set. That's 0:13:03.320 --> 0:13:05.839 a Bloomberg business flash. Now here's Michael Barrow with more 0:13:05.920 --> 0:13:08.000 on what's going on around the world. Muncale, Good morning, 0:13:08.120 --> 0:13:11.240 Good morning, Karen. World leaders called for an investigation of 0:13:11.320 --> 0:13:15.559 Russia's repeat attacks on civilian targets in Ukraine. Meanwhile, rescue 0:13:15.559 --> 0:13:18.040 workers search for survivors in the ruins of a theater 0:13:18.400 --> 0:13:23.600 that was serving as a shelter in Meryupole. Top seeds Gunzaga, Baylor, 0:13:23.679 --> 0:13:25.960 and Kansas have advanced to the second round of the 0:13:26.080 --> 0:13:28.839 n C Double Amen's basketball Tournament. On a day a 0:13:28.960 --> 0:13:32.400 number two seed was dispatched, the f team's seeded St. 0:13:32.440 --> 0:13:36.640 Peter's Peacocks and Living Color beat Kentucky eight five seventy 0:13:36.720 --> 0:13:39.480 nine in overtime. In the NHL, the Islanders beat the 0:13:39.559 --> 0:13:42.480 Rangers to one. The Capital's one global news twenty four 0:13:42.480 --> 0:13:44.800 hours a day on air and on Bloomberg quick Take, 0:13:44.840 --> 0:13:47.880 powered by more than twenty seven hundred journalists and analysts 0:13:47.920 --> 0:13:50.360 more than a hundred twenty countries. I'm Michael Barr. This 0:13:50.480 --> 0:13:52.800 is Bloomberg David. All right, Michael, thank you for coming 0:13:52.880 --> 0:13:54.839 up to five nineteen on Wall Street Live from the 0:13:54.880 --> 0:13:58.640 Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak. As we 0:13:58.679 --> 0:14:01.760 continue our global team in coverage of the war in Ukraine. 0:14:01.760 --> 0:14:05.040 Were joined this morning from Hong Kong by Bloomberg Chief 0:14:05.040 --> 0:14:09.160 Asia Economics correspondent and the Current and from Brussels Bloomberg's 0:14:09.160 --> 0:14:11.400 Maria Today, Oh is with us as well, and what 0:14:11.520 --> 0:14:14.520 could be a pivotal day in the war in Ukraine 0:14:14.520 --> 0:14:17.679 as we're awaiting a call, the first call in months 0:14:17.720 --> 0:14:21.040 between President Joe Biden of the United States and Chinese 0:14:21.120 --> 0:14:24.800 President shi Jinping. Is part of the US president's overall 0:14:24.840 --> 0:14:28.040 effort to try to put global pressure on Russia to 0:14:28.120 --> 0:14:30.400 try to stop Ukraine. So, and I'll start with you 0:14:31.200 --> 0:14:34.240 from the perspective of China. Obviously we know what the 0:14:34.240 --> 0:14:37.360 president is looking to achieve when it comes to this 0:14:37.440 --> 0:14:40.760 call today with a president she what is China hoping 0:14:40.760 --> 0:14:43.480 to get out of it? But China is so far 0:14:43.680 --> 0:14:47.960 hasn't condemned the invasion of Ukraine, not or has it 0:14:48.080 --> 0:14:51.480 even described it as an invasion. It is kind of 0:14:52.320 --> 0:14:54.680 tried to thread the middle ground. On the one hand, 0:14:54.720 --> 0:14:58.120 it has spoken about the need to respect sovereignty and independence, 0:14:58.480 --> 0:15:01.520 and it has called for a peaceful ending to the conflict. 0:15:01.560 --> 0:15:03.680 On the other hand, out that has also backed up 0:15:03.720 --> 0:15:06.880 some of Russia's allegations against the West and the US 0:15:06.960 --> 0:15:09.520 and the like. And I think what most people will 0:15:09.560 --> 0:15:12.800 be hoping for out of its call tonight is at 0:15:12.880 --> 0:15:15.160 least some clarity in terms of where China will be 0:15:15.200 --> 0:15:17.960 going next in in this conflict. I mean, are they 0:15:18.000 --> 0:15:20.680 going to go full bore and support Russia and in 0:15:20.720 --> 0:15:23.920 which case, of course, that risk sanctions on China's own economy, 0:15:24.240 --> 0:15:26.720 or will they come out and start explicitly calling for 0:15:26.720 --> 0:15:29.680 peace and explicitly calling for a way out of this contact. 0:15:29.720 --> 0:15:32.600 We had a six hour meeting between officials in Rome 0:15:32.680 --> 0:15:35.600 earlier this week that we're described as constructive. This is 0:15:35.600 --> 0:15:38.120 the first call between Biden and Sheets in the last November, 0:15:38.360 --> 0:15:40.560 so I think there is a lot you know, expectations 0:15:40.640 --> 0:15:42.000 might be low, but there's still a lot of writing 0:15:42.000 --> 0:15:43.760 in terms of what signals will come out of it 0:15:43.800 --> 0:15:47.240 for China's next steps. A Marie of today on in Brussels, 0:15:47.280 --> 0:15:48.520 I'll turn to you because I know you've been in 0:15:48.640 --> 0:15:53.400 very close contact with Ukrainian diplomats. What's the European perspective 0:15:53.440 --> 0:15:56.320 on this call this morning? Look, I think, of course 0:15:56.520 --> 0:15:59.360 they keep a very close eye because China, of course 0:15:59.480 --> 0:16:02.640 is a huge geo political agent, and of course it 0:16:02.720 --> 0:16:06.360 could really help Russia if they do deliver these weapons 0:16:06.400 --> 0:16:09.200 that they it was reported Russia had asked for. But 0:16:09.720 --> 0:16:12.680 I think for the European Union is very important, almost 0:16:12.680 --> 0:16:14.840 as important as it is for the United States to 0:16:14.880 --> 0:16:17.560 get a clear sense in terms of what does Russia 0:16:17.600 --> 0:16:19.720 want out of this Excuse me, China went out of 0:16:19.720 --> 0:16:22.120 this conflict and what role are they going to play 0:16:22.640 --> 0:16:25.640 going forward for the Europeans. They also believe that, frankly, 0:16:25.800 --> 0:16:28.320 the Chinese do not have an interest in getting involved 0:16:28.320 --> 0:16:31.400 in here, because of course there would be repercussions. The 0:16:31.440 --> 0:16:34.360 European Union has a trade deal with China which is 0:16:34.400 --> 0:16:37.720 waiting for approval. Many would tell you by the way, China, 0:16:37.800 --> 0:16:40.880 no China or conflict in Ukraine. This trade deal between 0:16:40.960 --> 0:16:43.880 China and the EU is dead because this relationship is 0:16:43.920 --> 0:16:46.880 getting very frosty from the two sides. But you know, 0:16:46.920 --> 0:16:49.280 they really have an interest in finding out what is 0:16:49.280 --> 0:16:52.600 it that China wants to war plan around Ukraine. The 0:16:52.600 --> 0:16:54.720 other thing, of course, that I would note, Um, you 0:16:54.800 --> 0:16:57.640 mentioned the conversation that I had with a deputy to 0:16:57.720 --> 0:17:01.000 the Ukrainian President Lanski earlier today, and he told me 0:17:01.160 --> 0:17:05.080 just minutes ago, I hope that China is smart enough 0:17:05.200 --> 0:17:08.119 to know that they'll get nothing out of stepping in 0:17:08.280 --> 0:17:11.480 in Ukraine. China is a wise country and they won't 0:17:11.480 --> 0:17:14.200 want to get involved. So that is also the language 0:17:14.200 --> 0:17:17.240 coming out from the Ukrainian side, and I'll turn it 0:17:17.280 --> 0:17:21.720 back to you. Obviously, there's a very close relationship between 0:17:22.040 --> 0:17:26.080 China and Russia. We have this Defense Department assessment that 0:17:26.200 --> 0:17:30.200 if Russia continues to get bogged down in Ukraine, that 0:17:30.640 --> 0:17:34.719 Russia could threaten to use nuclear weapons. What kind of 0:17:34.840 --> 0:17:39.080 leverage does China have to try to avoid that kind 0:17:39.400 --> 0:17:44.240 of strong rhetoric, that sort of threat from Russia. Well, 0:17:44.280 --> 0:17:47.560 both sides have been growing the economic linkages in recent years, 0:17:47.560 --> 0:17:50.520 on the one hand of Russia selling China energy and 0:17:50.560 --> 0:17:53.400 the wheat. On the other hand, of course, Shina selling 0:17:53.480 --> 0:17:57.040 Russia lots of merchandise. Good recently, just before the Olympic 0:17:57.080 --> 0:18:00.920 Games that started February, the kind of brought a peak 0:18:00.960 --> 0:18:03.120 to their relations when they put out a communication saying 0:18:03.480 --> 0:18:06.919 there's no limits to friendship between both sides. All of 0:18:06.960 --> 0:18:09.640 that being said as though, this is where it gets 0:18:09.640 --> 0:18:12.480 complicated for China because it will not want to get 0:18:12.560 --> 0:18:15.600 caught up in the Western sanctings. Number one, for its 0:18:15.640 --> 0:18:19.080 banks or its companies. Number two, it likes to be 0:18:19.160 --> 0:18:22.000 seen as playing a global a good global citizen on 0:18:22.040 --> 0:18:25.560 the world stage, regardless of one's use of its internal politics. 0:18:26.000 --> 0:18:29.200 And of course number three, China itself is pushing for 0:18:29.240 --> 0:18:31.960 a year of stability because it has a very important 0:18:32.000 --> 0:18:34.400 physical conference at the end of the year when President 0:18:34.440 --> 0:18:37.400 seesting Thing is expected to get an other terms. So 0:18:37.920 --> 0:18:41.200 the weight of all of this is expectatily towards China 0:18:41.200 --> 0:18:43.720 and making an intervention using its incluends like you ask, 0:18:43.800 --> 0:18:48.560 it's economic and it's it's alliance influence with Russia to 0:18:48.560 --> 0:18:51.119 try and bring this to an end somehow. But a 0:18:51.160 --> 0:18:54.440 big question is how will use that leverage, What kind 0:18:54.440 --> 0:18:57.960 of solution will it push to push Russia towards r 0:18:58.040 --> 0:19:00.680 and D does it not choose that pass into the 0:19:00.760 --> 0:19:04.080 double down on harsh rhetoric against the broad US West 0:19:04.080 --> 0:19:07.560 alliance and to continue to support Russia. Remember One variable 0:19:07.600 --> 0:19:10.400 to consider in this is that if China comes out 0:19:10.400 --> 0:19:12.760 of this conflict having been seen it back to the 0:19:12.760 --> 0:19:15.679 wrong horse, that of course will be judgment on the 0:19:15.680 --> 0:19:17.880 present cheating thing in the government for having gone too 0:19:17.920 --> 0:19:20.120 far and building its alliance with Russia in the first 0:19:20.160 --> 0:19:23.160 place and ultimately having to swing around to the western 0:19:23.200 --> 0:19:25.399 side of the store. There's a lot of stake for 0:19:25.600 --> 0:19:28.639 China and navigating the path out of this will not 0:19:28.760 --> 0:19:30.560 be simple, and I think that's why a lot of 0:19:30.560 --> 0:19:33.680 people are waiting now for clarity from this read out 0:19:33.720 --> 0:19:35.480 from the court side to see whether or not China 0:19:35.600 --> 0:19:38.840 is starting to move its position to the point of 0:19:39.040 --> 0:19:43.119 whether China is backing the wrong horse here Maria today, Oh, 0:19:43.200 --> 0:19:47.959 what is the Ukrainian relationship with China? Like I know 0:19:48.160 --> 0:19:51.840 Ukraine has been in recent decades moving toward a more 0:19:51.920 --> 0:19:55.560 close relationship with the West. But in terms of the 0:19:55.640 --> 0:19:59.080 Chinese relationship, what is it like between China and Ukraine. 0:19:59.520 --> 0:20:01.280 Well know, if you ask me that question, what's the 0:20:01.320 --> 0:20:04.040 relationship between Ukraine and China? My answer to you as 0:20:04.080 --> 0:20:07.240 we actually don't know, because the reality is for Ukraine 0:20:07.359 --> 0:20:10.240 this is not a top priority, is not a relationship 0:20:10.280 --> 0:20:13.879 that they actively search because over the past essentially for 0:20:14.080 --> 0:20:18.280 three years, their efforts have purely and mostly concentrated on 0:20:18.480 --> 0:20:20.800 the European Union and the United States. We've been trying 0:20:20.800 --> 0:20:23.160 to build coloration with the even recent years. I think 0:20:23.280 --> 0:20:27.439 there's a Bloomberg's and occurring with us this morning from 0:20:27.520 --> 0:20:30.320 Hong Kong. Thanks as well to Bloomberg's Maria Today Oh 0:20:30.400 --> 0:20:34.320 in Brussels. Our global team coverage on day twenty three 0:20:34.520 --> 0:20:37.600 of the war in Ukraine. Karen, all right, Nathan, thank you, 0:20:37.640 --> 0:20:40.439 and it's five thirty on Wall Street. Good morning. I'm 0:20:40.520 --> 0:20:43.320 Karen Moscow along with Nathan Hagar, and we're just about 0:20:43.359 --> 0:20:46.120 four hours away from the open of US trading. Let's 0:20:46.119 --> 0:20:47.479 get you up to date on the news you need 0:20:47.560 --> 0:20:51.160 to know at this hour. Russia's invasion continues as missiles 0:20:51.280 --> 0:20:54.720 struck western Ukraine and regions close to the border of Poland. 0:20:55.080 --> 0:20:59.360 According to new Pentagon intelligence, Russian President Vladimir Putin may 0:20:59.440 --> 0:21:02.800 soon leave be nuclear threats against the West in an 0:21:02.840 --> 0:21:06.320 attempt to project strength. Well back in Washington, Karen, President 0:21:06.400 --> 0:21:09.400 Biden his schedule to speak with China's President she jinping 0:21:09.480 --> 0:21:11.640 about the war. We get the latest from Bloomberg's head 0:21:11.640 --> 0:21:14.800 Baxter the White House is saying it gives President Biden 0:21:14.840 --> 0:21:18.280 a chance to really assess where President She stands and 0:21:18.359 --> 0:21:21.320 to step up pressure for him to cooperate. Spokes on 0:21:21.359 --> 0:21:23.520 when John Sake, saying it will give she a chance 0:21:23.560 --> 0:21:26.160