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Speaker 1: Live from the Bloomberg Interactive Berger Studios is Bloomberg Daybreak

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Speaker 1: for Wednesday, February one. Coming up today, the Fed prepares

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Speaker 1: to deliver its first policy decision of the year. Stock

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Speaker 1: Start February coming off the best month since October, snapshare

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Speaker 1: slide as the company forecasts its first ever quarterly revenue decline.

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Speaker 1: And President Biden and how Speaker McCarthy need to discuss

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Speaker 1: the dead limit. Vice President Harris will attend today's funeral

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Speaker 1: to Tyree Nichols plus and battled Congressman Santos recuses himself

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Speaker 1: from two House committees. Michael Barr more Ahead, I'm John

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Speaker 1: Stash Aaron sports Lebron James and the Lakers beat the

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Speaker 1: Knicks in overtime. Two NFL teams named new coaches. That's

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Speaker 1: all's trendy Ahead on Bloomberg Daybreak on Bloomberg eleven three

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Speaker 1: on New York, Bloomberg Washington, d C, Bloomberg one oh

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Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius Exam

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Speaker 1: one nine team and around the world. Old on Bloomberg

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Speaker 1: Radio dot Com and via the Bloomberg Business App. Good Morning,

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Speaker 1: I'm Nathan Hagar. And I'm Cameron Moscow. Here are the

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Speaker 1: stories we're following today. We begin with today's highly anticipated

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Speaker 1: decision from the Federal Reserve. A twenty five point basis

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Speaker 1: rate hike is expected, but what will the messaging sound

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Speaker 1: like from Fed chair J Powell. We get a preview

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Speaker 1: from Bloomberg Economics correspondent Michael McKee. Investors generally think the

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Speaker 1: Central Bank will raise rates a quarter percentage point now

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Speaker 1: and again in March, but then stop. By November. Futures

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Speaker 1: markets say they'll be cutting rates. That's not a good

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Speaker 1: look for Powell and company, who worry inflation isn't beaten

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Speaker 1: yet and with China reopening could flare again. So expect

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Speaker 1: the Fed statement and Powell in his news conference to

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Speaker 1: recognize the outlook has improved, but pushed back on any

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Speaker 1: thought that means a change in policy yet. Michael McKee

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Speaker 1: Bloomberg Daybreak. All right, Mike, thanks and joined us for

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Speaker 1: live coverage of that FED decision starting at one thirty

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Speaker 1: p m. Eastern with a special edition of Bloomberg Surveillance.

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Speaker 1: Well ahead of that decision, Nathan, as we said, stock

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Speaker 1: futures are lower, and that's after a month that saw

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Speaker 1: the s and P five huttered game six percent. Katerina Semonetti,

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Speaker 1: Senior vice president and Morgan Stanley Private Wealth, says the

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Speaker 1: ft is not the most important thing for the markets

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Speaker 1: right now. We think that there is a lot more

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Speaker 1: volatility ahead and in our view, the story for twenty

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Speaker 1: three is not the story of the fat or instlation.

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Speaker 1: This is the story about the earning Since specifically earnings revision,

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Speaker 1: Katerina Semonetti had Morgan's Stanley Wealth used last month stock

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Speaker 1: rally as premature optimism. Well, earnings are disappointing. This morning,

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Speaker 1: Karen Snapp has forecast its first ever quarterly revenue decline,

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Speaker 1: and we get the story from Bloomberg's Charlie Pellett. The

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Speaker 1: company sites a florry of changes to snapchats advertising products

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Speaker 1: that may be disruptive to the social media apps business.

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Speaker 1: Snap is making changes focus on its direct response business,

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Speaker 1: adds the prompt users to take an immediate action like

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Speaker 1: buying a product or signing up for an email list. Snap,

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Speaker 1: along with competitors like metal platforms, Facebook and alphabets, Google,

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Speaker 1: are also still grappling with a change to iPhone privacy

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Speaker 1: policies from Apple that made it more difficult to personalize

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Speaker 1: and track the success of ads on their apps in

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Speaker 1: New York. Charlie Pellett Bloomberg Daybreak, All right, Charlie, thank you.

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Speaker 1: Snap shares down more than fourteen percent in early trading,

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Speaker 1: and there's some other stocks in the move this morning,

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Speaker 1: including Advanced micro Devices up more than three percent. The

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Speaker 1: chipmaker gave it better than feared sales forecast for the

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Speaker 1: first quarter, and shares of electronic arts down more than

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Speaker 1: ten percent. The video GameMaker gave a disappointing outlook thanks

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Speaker 1: to a six week delay releasing a highly anticipated Star

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Speaker 1: Wars game, and the earnings continue to roll in today, Karen.

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Speaker 1: With more than two dozen companies in the sporting meta

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Speaker 1: platforms headlines today's list, we get a preview from Bloomberg's

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Speaker 1: Tom Busby. Well. The big focus for investors today not

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Speaker 1: so much plans for and costs related to its ambitious

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Speaker 1: metaverse initiative, but on advertising revenue on Facebook and Instagram.

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Speaker 1: Analysts predict a sales decline of six percent that would

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Speaker 1: be the third decrease in as many quarters, for earnings

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Speaker 1: per share of two dollars twenty six cents revenues of

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Speaker 1: thirty one point six five billion dollars. Tom Busby, Bloomberg Daybreak,

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Speaker 1: All right, Tom, thanks So the phone out continues from

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Speaker 1: last month's malfunction at the New York Stock Exchange. Investors

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Speaker 1: are trying to recoup their losses, but it might not

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Speaker 1: be easy. Let's get the details Live with the Bloomberg

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Speaker 1: Steve Rappaport, Steve, good morning, Good morning, Karen and Nathan.

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Speaker 1: Losses from that Wall Street snap who could amount to

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Speaker 1: millions of dollars. With thousands of claims piling up, the

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Speaker 1: Stock Exchange sets aside half a mill each month to

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Speaker 1: cover unexpected disruptions. People familiar with the matters say the

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Speaker 1: claims will likely exceed that amount under NYSC rules. Yesterday

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Speaker 1: was the deadline to evaluate the claims and decide how

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Speaker 1: much to pay. The Exchange blames human error for the

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Speaker 1: malfunction that canceled thousands of train transactions, affecting hundreds of securities.

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Speaker 1: Live in New York. I'm Steve, rep Report, Bloomberg day Break,

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Speaker 1: Thank you. Step in India today, the sell off in

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Speaker 1: a Donnie stock continues as a Donnie Enterprises plunges by

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Speaker 1: thirty percent. All ten of the stocks tied to billionaire

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Speaker 1: Gatama Donnie are slumping today. The sell off has now

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Speaker 1: reached more than eighty billion dollars across the group's equities.

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Speaker 1: That's after short seller Hindenburg issue to report accusing a

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Speaker 1: Donny of inflating revenue. We'll back here in the US

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Speaker 1: Nathan Politics f in focus. President Biden and House Speaker

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Speaker 1: Kevin McCarthy are set to meet at the White House

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Speaker 1: to discuss raising the dead limit. We get a preview

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Speaker 1: from Amy Morris and our Bloomberg newsroom in Washington. A

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Speaker 1: White House memos as the President will pose two questions

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Speaker 1: to McCarthy, including quote will the Speaker commit to the

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Speaker 1: Bedrock principle that the United States will never default on

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Speaker 1: its financial obligations. The President will also ask when will

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Speaker 1: House Republicans release their budget with details on what budget

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Speaker 1: cuts the GOP wants in exchange for raising the dead ceiling.

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Speaker 1: McCarthy dismissed the memo as political games. President Biden has

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Speaker 1: repeatedly said he would not negotiate over raising the death limit.

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Speaker 1: In Washington, I'm Amy Morris, Bloomberg Daybreak. Thank you, Amy.

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Speaker 1: Let's turn to the presidential race now and more signs

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Speaker 1: of a slow start for Donald Trump. The latest filing

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Speaker 1: show the former president has raised less than ten million

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Speaker 1: dollars since he announced his third presidential run in November.

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Speaker 1: Well at the same time, Nathan, the Republican presidential field

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Speaker 1: is about to get bigger. A source towns Bloomberg News

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Speaker 1: that former South Carolina Governor Nikki Hayley plans to announce

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Speaker 1: she's running for president two weeks from today. Hayley served

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Speaker 1: as former President Trump's ambassador to the United Nations. Straight Ahead,

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Speaker 1: your latest local headlines, plus a check of sports, and

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Speaker 1: this is Bloomberg. It is twenty six degrees in Central Park.

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Speaker 1: These early morning flurries will give away to sunshine today

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Speaker 1: and hid the upper thirties. We get down to the

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Speaker 1: upper twenties tonight under a partley cloudy sky. Time not

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Speaker 1: to take a look at some of the other stories

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Speaker 1: making news in New York and around the world with

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Speaker 1: Bloomberg's Michael Barr, Good Money, Michael, Good Morning. Nathan. Vice

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Speaker 1: President Harris plans to speak at Tyree Nichols funeral today

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Speaker 1: in Memphis. Nichols died three days after he was beaten

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Speaker 1: by police. Also attending today's funeral will be Reverend Al Sharpton.

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Speaker 1: People from around the world watch the video tape of

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Speaker 1: a man on all unprovote being beat to death by

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Speaker 1: offices of the law. Reverend Sharpton, along with Nichols family,

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Speaker 1: say the nation needs to make sure laws are changed

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Speaker 1: to prevent this from happening again. The House is set

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Speaker 1: to vote as early as today on the resolution to

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Speaker 1: remove Democrat Ilhan Omar from the Foreign Affairs Committee. Speaker

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Speaker 1: Kevin McCarthy has persuaded at least two Republican holdouts to

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Speaker 1: support the move. The Rules Panel advanced to the House

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Speaker 1: floor resolution saying that the accusations that Omar, who is Muslim,

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Speaker 1: had used anti Semitic tropes in past comments, for which

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Speaker 1: she has since uponlogized. Embattled New York Congressman George Santos

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Speaker 1: said that he will temporarily step away from his House

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Speaker 1: committee assignments. The Long Island Republican says that he is

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Speaker 1: facing investigations over his personal and campaign finances, as well

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Speaker 1: as calls for his resignation. Speaking to reporters, Santos said

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Speaker 1: he will be cleared. I have nothing at hide. Santos

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Speaker 1: was assigned to the Committee on Small Business and the

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Speaker 1: Committee on Science space and technology. Travel conditions remain a

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Speaker 1: mess today because of a monster storm stretching from Texas

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Speaker 1: to West Virginia. It is expected to dump more snow, ice,

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Speaker 1: and rain. Texas Governor Greg Abbott defending the state's grid,

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Speaker 1: local outages are not a reason to say that there

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Speaker 1: is a problem with a power grid. The power grid

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Speaker 1: is functioning just fine as we speak. Air travel also

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Speaker 1: has impacted, with hundreds of flights nationwide canceled today. Yesterday

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Speaker 1: more than nine hundred were canceled. The Administration will supply

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Speaker 1: Ukraine with longer range artillery and ammunition as part of

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Speaker 1: a new two billion dollar package of military assistance. That's

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Speaker 1: according to a person familiar with the matter. Ukraine's biggest

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Speaker 1: allies have so far said though they won't send Finder

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Speaker 1: jets to Kiev. Global News powered by more than hundred

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Speaker 1: journalists and analysts and over one twenty countries. Michael bar

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Speaker 1: This is Bloomberg. Nathan Michael, thank you time now for

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Speaker 1: the Bloomberg Sports update, brought to you by Tri stayed Out.

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Speaker 1: Good morning, John stash Our, Good morning, Nathan Lebron. James

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Speaker 1: says he loves playing at the garden. Hadn't done it

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Speaker 1: in three years, injured two years ago when the Lakers

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Speaker 1: came to town. Suspended last year. Also didn't play Monday

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Speaker 1: night in Brooklyn due to a sore foot, but he

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Speaker 1: played last night. He played forty three minutes, scored twenty

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Speaker 1: eight points with eleven rebounds, and tennisis led the Lakers

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Speaker 1: to a one overtime win over the Knicks. Much has

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Speaker 1: been made of Lebron about to break Kareem Abdul Jabbar's

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Speaker 1: career scoring record. It's gonna happen soon. He only needs

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Speaker 1: eighty nine more points. But last night, James moved past

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Speaker 1: Mark Jackson and Steve Nash and into fourth all time

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Speaker 1: in assists. It's amazing because, um, that's just you know,

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Speaker 1: what I love to do and getting my guys involved,

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Speaker 1: and you know, um, I'm trying to put the ball

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Speaker 1: have been another grade group that allows me to um,

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Speaker 1: of past nets plates to night in Boston College. It

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Speaker 1: was big win for much improved Fordham Rams now eighteen

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Speaker 1: and four at rose Hill and opted off St. Louis,

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Speaker 1: who came in the top the Atlantic ten. Two NFL

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Speaker 1: teams have new coaches. Sean Payton spoke with several teams.

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Speaker 1: He's going to Denver. Peyton was still under contract with

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Speaker 1: the Scene, so the Broncos had to ship three draft

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Speaker 1: picks to New Orleans as compensation. First round pick this year,

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Speaker 1: second and third rounders next year. Also, Houston, in a

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Speaker 1: move that was expected, named Damiko Ryan's he was stand

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Speaker 1: out linebacker for the Texans. He had been coaching the

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Speaker 1: forty Niners defense. Texans have had now four coaches in

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Speaker 1: the last four years. John Stashward Bloomberg Sports Live from

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Speaker 1: coast to coast, from New York to San Francisco, Boston

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Speaker 1: to Washington, d C. Nationwide on Sirius XAMP, the Bloomberg

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Speaker 1: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 1: Good morning. I'm Nathan Hagar at the start of what

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Speaker 1: is likely to be a pivotal day in the nation's capital,

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Speaker 1: not just because of the private policy decision coming up

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Speaker 1: this afternoon from the Federal Reserve, but we're also waiting

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Speaker 1: for the kickoff of debt talks between President Biden and

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Speaker 1: how Speaker Kevin McCarthy, all aimed at trying to head

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Speaker 1: off a market crippling default that could come as soon

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Speaker 1: as this summer if something isn't done about the debt ceiling.

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Speaker 1: For more on this, we're pleased to be joined by

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Speaker 1: John Raines, director of Market Intelligence at SMP Global. John,

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Speaker 1: it's great to speak with you this morning ahead of

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Speaker 1: this meeting this afternoon between these two leaders who really

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Speaker 1: haven't had a whole lot of interaction up to this point.

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Speaker 1: How much should we expect to come out of this meeting?

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Speaker 1: Quick answer? Not much, not much. I think that they're

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Speaker 1: coming out of from two different mantage points, and I

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Speaker 1: think both sides understand the contours of this debate. This

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Speaker 1: is really more atmospherics, a good time from the go

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Speaker 1: ahead and have a discussion to actually meet. As she said,

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Speaker 1: they haven't met in this position with McCarthy speaker before,

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Speaker 1: so this is a good opportunity for that. But aside

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Speaker 1: from that, I don't expect much out of this meeting.

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Speaker 1: A whole lot of the barbs have been traded ahead

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Speaker 1: of it. We heard President Biden yesterday, uh, sort of

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Speaker 1: challenging Speaker McCarthy, show me your budget and I'll show

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Speaker 1: you mine. I mean, how does that sort of set

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Speaker 1: the tone for what's going to be coming this afternoon.

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Speaker 1: I mean, I think we're gonna see quite a bit

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Speaker 1: of this, not only in today's meeting, but I think

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Speaker 1: you're gonna be seeing this over the next few months.

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Speaker 1: I mean, in Democrats are in a strong position here

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Speaker 1: that they know that the Republicans have to coalesce around

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Speaker 1: a budget and that's gonna be very difficult for them,

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Speaker 1: considering the cuts that will have to be made to

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Speaker 1: balance the budget within ten years, which is what a

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Speaker 1: lot of their caucus wants. How do you do that

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Speaker 1: in discretionary spending alone. It's not gonna be easy to do.

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Speaker 1: And that's the reason why the Democrats are doing this,

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Speaker 1: and they're putting these Republicans in these positions because they

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Speaker 1: realize every single program that they cut that's gonna cost

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Speaker 1: him a political price. Do you expect that it's going

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Speaker 1: to be a non discretionary spending alone. I mean, we've

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Speaker 1: heard Speaker McCarthy of course, say that he thinks that

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Speaker 1: social Security and medicare should be off the table. Well,

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Speaker 1: we've heard from a number of Republicans who are saying

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Speaker 1: that things like defense should be on the table. Is

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Speaker 1: that something that could really happen cuts to defense? I

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Speaker 1: think I think there's there's a decent chance. I mean, obviously,

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Speaker 1: if you're gonna wake substantial cuts to the budget, I

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Speaker 1: think defense probably has to get on the table, just

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Speaker 1: like you saw in two thousand and eleven. I just

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Speaker 1: don't see how you can get there through social spending alone.

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Speaker 1: I mean, there's that one has to been out there

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Speaker 1: to say to make these type of cuts to balance

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Speaker 1: the budget, you'd have to cut eighty five cent of

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Speaker 1: social spending. That's just not gonna happen. There's just not

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Speaker 1: that much waste in the government. So if that's not

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Speaker 1: a viable option, that I think defense comes into question.

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Speaker 1: And potentially I don't think that you're going to see

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Speaker 1: made it to respending on Medicare social Security come into

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Speaker 1: the freight here. But in the future, of course, both

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Speaker 1: of those programs are gonna have to be on the

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Speaker 1: table as well. Of Course, a President Biden, you would imagine,

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Speaker 1: would be looking for a tax increases as part of

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Speaker 1: any effort to sort of bring spending into balance. I mean,

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Speaker 1: given how divided Congress is and all of Washington is, really,

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Speaker 1: I mean, what's the likelihood that we could see something

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Speaker 1: like that. I think it's pretty unlikely. It's very difficult

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Speaker 1: for me to envision a scenario where the Republicans can

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Speaker 1: sign up for tax increases. It's just it's very difficult.

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Speaker 1: They talked a little bit about in a sales tax

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Speaker 1: that's gone nowhere. I mean, of course, Biden in the

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Speaker 1: past I've talked about raising corporate taxes. Again, it's just

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Speaker 1: hard for me to see the Republicans signing up to that. Obviously,

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Speaker 1: especially with the new majority that they just achieved in

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Speaker 1: the House. Just a difficult pill for them to swallow. Well,

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Speaker 1: what about the difficulty that Speaker McCarthy could face of

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Speaker 1: bringing his Republican coalition together on anything related to getting

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Speaker 1: spending under control. I mean, he's kind of really fractious

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Speaker 1: cat because he's got to bring together and not much

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Speaker 1: of a majority to to get anything done. Really, yeah,

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Speaker 1: I mean, that's the problem here, is that he really

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Speaker 1: only has four votes to play with, doesn't he. So

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Speaker 1: even in the advent that he goes and says Listen,

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Speaker 1: we weren't able to get this accomplished. We definitely need

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Speaker 1: to raise the death ceiling. Of course, there's a lot

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Speaker 1: of conservative Republicans out there that are going to challenge

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Speaker 1: his leadership, and so therefore does he risk his job

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Speaker 1: in order to stay to principle? And that's gonna be

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Speaker 1: an important question that the Republicans are going to have

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Speaker 1: going forward. I do think there is there are ways

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Speaker 1: for them to kind of manage this, maybe with some

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Speaker 1: type of cap on spending, maybe some slight percentage decrease

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Speaker 1: in some social spending as well, but to really get

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Speaker 1: to the area that they want to get to, and

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Speaker 1: also be able to manage the difficulties politically, as you

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Speaker 1: mentioned with with mandatory spending, it's gonna be very difficult

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Speaker 1: to them to coalesce around a budget, and of course

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Speaker 1: that means it's going to be difficult as we get

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Speaker 1: to March and April and going forward for them to

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Speaker 1: actually enter in negotiations with the White House. So about

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Speaker 1: thirty seconds left here, John, is a cap on spending

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Speaker 1: enough for Republicans to agree to an increase to the

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Speaker 1: debt ceiling? You know? I think that's the sixty four

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Speaker 1: thousand all the question. I do think eventually it'll have

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Speaker 1: to come to something like that. I think there'll be

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Speaker 1: some modest decreases here and there, some caps here and there,

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Speaker 1: but ultimately, at the end of the day, we know

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Speaker 1: one thing. The American people don't like tax increases, and

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Speaker 1: they certainly don't like decreases of government's venue. This is

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Speaker 1: Bloomberg day Break Today, your morning brief on the story

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