WEBVTT - Bloomberg Daybreak: April 19, 2022 - Hour 1 (Radio) 0:00:02.920 --> 0:00:05.880 Live from the Bloomberg indirector Workers studios. This is Bloomberg 0:00:05.960 --> 0:00:09.480 day Break for Tuesday, April nineteen two. Coming up this hour, 0:00:09.760 --> 0:00:13.039 Ukraine says Russia's assault on the don Voss region is underway. 0:00:13.320 --> 0:00:16.000 Most major US airlines are no longer requiring mess on 0:00:16.120 --> 0:00:19.200 domestic flights. A top FED official says a seventy five 0:00:19.200 --> 0:00:22.280 basis point hike may be in play, and Netflix, IBM, 0:00:22.320 --> 0:00:25.320 and Johnson and Johnson all report earnings today. New York 0:00:25.400 --> 0:00:27.440 Mayor Adam says the city is not ready yet to 0:00:27.440 --> 0:00:29.760 bring back into her mask Man dates. Plus, there's a 0:00:29.840 --> 0:00:32.760 rise in migrants, excepting across the US Mexico border. I 0:00:32.920 --> 0:00:35.480 like la bar more ahead, I'm done finished ower sports. 0:00:35.520 --> 0:00:37.400 Yankees are in Detroit that I've met, have a double 0:00:37.440 --> 0:00:40.360 lead with the Giants, NBA playoff wins for Philaelpia Dallas 0:00:40.400 --> 0:00:44.720 and Golden Space. That's all straight ahead on Bloomberg day 0:00:44.720 --> 0:00:49.680 Break on Bloomberg E Living three O, New York, Bloomberg one, Washington, 0:00:49.800 --> 0:00:53.880 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 0:00:53.880 --> 0:00:57.920 San Francisco, Sirius x M one nineteen and around the 0:00:57.920 --> 0:01:02.080 world on Bloomberg Radio dot com via The Bloomberg Business. 0:01:07.760 --> 0:01:11.080 Good morning, I'm Karen Moscow. I'm Nathan Hagar. Bloomberg Daybreak 0:01:11.120 --> 0:01:13.920 brought to you by hc Waynewright. Register now for the 0:01:14.120 --> 0:01:18.880 hc W Global Investment Conference, a hybrid event one to six. 0:01:18.959 --> 0:01:22.800 Go to hc W Events dot Com. HCW reserves the 0:01:22.840 --> 0:01:26.080 right in discretion to accept the reject registration or admission. Well. 0:01:26.200 --> 0:01:29.600 US futures are lower this morning, and we're at five 0:01:29.600 --> 0:01:31.360 oh one on Wall Street, and we checked the markets 0:01:31.360 --> 0:01:34.280 every fifteen minutes throughout the trading day. On Bloomberg SMP 0:01:34.440 --> 0:01:37.200 Future is down five points. Dal Future is a little 0:01:37.280 --> 0:01:40.800 change NOWADAY Future is down forty five ten. Your treasury 0:01:40.840 --> 0:01:44.080 down eleven thirty seconds, YEL two point eight nine per cent. 0:01:44.280 --> 0:01:47.000 Nathan Karen will have more on the markets in a minute. First, 0:01:47.080 --> 0:01:48.680 we need to bring you the latest on the war. 0:01:48.880 --> 0:01:53.080 Rusha's assault on Ukraine's don Boss region has begun. Ukrainian 0:01:53.080 --> 0:01:56.040 President Vladimir Zelinski says they will not give up without 0:01:56.040 --> 0:01:59.680 a fight. Amy Morris has details from our bloombergs room 0:01:59.720 --> 0:02:03.240 and Wash Shington. Zelinsky said Russian forces have launched a 0:02:03.280 --> 0:02:05.760 new campaign to conquer the dun Boss region in the 0:02:05.800 --> 0:02:09.640 east of Ukraine. A significant part of the entire Russian 0:02:09.720 --> 0:02:12.960 army is now concentrated on this offensive. No matter how 0:02:12.960 --> 0:02:15.760 many Russian troops are driven there, we will fight. Meanwhile, 0:02:15.800 --> 0:02:19.079 the US military will start training Ukrainian troops on how 0:02:19.080 --> 0:02:22.079 to operate the howitzers that the US is sending Ukraine. 0:02:22.280 --> 0:02:25.920 Pentagon spokesman John Kirby that training will occur outside of 0:02:26.000 --> 0:02:28.959 Ukraine and then then we reintroduced back into their country 0:02:29.000 --> 0:02:31.720 to train their colleagues. This as the remaining defenders of 0:02:31.720 --> 0:02:35.120 Mariopol are surrounded by Kremlin forces, but they have not 0:02:35.280 --> 0:02:39.520 surrendered that keyport city in Washington. I'm Amy Morris Bloomberg daybreak, 0:02:39.600 --> 0:02:41.720 All right, Amy, thank you about President Joe Biden will 0:02:41.760 --> 0:02:45.840 hold a call with key allies later today to discuss Ukraine. Meanwhile, 0:02:45.880 --> 0:02:48.880 the US has backed off any suggestion that its officials 0:02:48.880 --> 0:02:51.600 with boycott Group of Twenty meetings this week if Russia 0:02:51.639 --> 0:02:54.880 takes part. The Treasury to Irvin, says Secretary Chanted Yellen, 0:02:54.919 --> 0:02:57.839 will participate in some sessions this week well. The war 0:02:57.880 --> 0:02:59.920 has in part led the World Bank to cut its 0:03:00.000 --> 0:03:03.720 two economic outlook Karen and the Bank's chief economist Carmen 0:03:03.800 --> 0:03:07.280 Reinhart added she would not rule out further downgrades. In 0:03:07.320 --> 0:03:10.760 an interview with Bloomberg, Reinhart laid out the downside risks 0:03:10.800 --> 0:03:16.920 facing the global economy, array of disruptions from China's new lockdowns, 0:03:16.960 --> 0:03:22.079 from the impacts yet to be fully felt of the 0:03:22.160 --> 0:03:28.480 Russia Ukraine war on on food prices, on global supply chains, 0:03:28.560 --> 0:03:32.760 and if you know, bad came to worse, Uh, could 0:03:32.760 --> 0:03:35.760 there be another episode of financial contagion? The World Bank 0:03:35.840 --> 0:03:38.840 Chief economist Carmen Reinhart says growth will slow to three 0:03:38.840 --> 0:03:41.520 point two percent from a January prediction of four point 0:03:41.560 --> 0:03:45.360 one percent. Meanwhile, Nathan Saying, Louis FED President James Bullard 0:03:45.440 --> 0:03:48.160 said the FED needs to move quickly to raise rates 0:03:48.200 --> 0:03:50.800 to around three and a half percent this year. He 0:03:50.880 --> 0:03:53.560 also says that central bank should not roll out rate 0:03:53.640 --> 0:03:57.200 increases of seventy five basis points to fight inflation. I 0:03:57.240 --> 0:04:04.160 would point out that uh cycle UH where we raised 0:04:04.240 --> 0:04:07.640 the policy rate three basis points in the year, and 0:04:07.720 --> 0:04:10.880 in that cycle, UH, there was a seventy five basis 0:04:10.920 --> 0:04:14.320 points increase at one point UM. So I wouldn't rule 0:04:14.320 --> 0:04:17.280 it out, but it's not my base case here, saying 0:04:17.279 --> 0:04:20.320 theist FED president James Bullard also said that talk of 0:04:20.360 --> 0:04:23.920 a US recession is premature. Well, Bullard's hawk ish comments 0:04:23.920 --> 0:04:27.560 maybe piling onto weakness for a traditional haven currency. The 0:04:27.640 --> 0:04:30.880 Japanese yen is weaker against the dollar for a thirteenth 0:04:31.040 --> 0:04:34.120 straight day. It's extending its longest losing streak in at 0:04:34.200 --> 0:04:36.799 least a half century. Right now, the end is trading 0:04:37.040 --> 0:04:40.160 at one point three four against the dollar. Now. The 0:04:40.240 --> 0:04:43.000 latest on the pandemic Nathan and a major development in 0:04:43.040 --> 0:04:46.560 the air, The Transportation Security Administration says it will no 0:04:46.640 --> 0:04:50.600 longer enforce the COVID mask mandate on public transportation, and 0:04:50.640 --> 0:04:54.320 Bloombergette Baxter has the story. This after a Florida judge 0:04:54.320 --> 0:04:57.039 struck down the remainder of the mandate, saying the CDC 0:04:57.279 --> 0:05:00.000 went too far. The t s A says for now 0:05:00.080 --> 0:05:03.040 it will not enforce a masking bandate. White House Folks 0:05:03.040 --> 0:05:06.080 Women Jimsaki says the ruling is disappointing. We also think 0:05:06.120 --> 0:05:08.160 the mask commandate should be in place and that it's 0:05:08.160 --> 0:05:11.240 safer for individuals for flying to continue to wear masks. 0:05:11.560 --> 0:05:14.520 So the major US air carriers have now made masking 0:05:14.560 --> 0:05:18.320 optional for the time being. Delta United Southwest Alaska, American. 0:05:18.720 --> 0:05:21.359 Some of the international flights will continue to have the 0:05:21.400 --> 0:05:25.120 mandate for now. In San Francisco, I'm at Baxter Bloomberg Daybreak, 0:05:25.200 --> 0:05:27.279 All right, and thank you. Turning into corporate earnings, we 0:05:27.360 --> 0:05:29.440 hear from more than a dozen companies in the SMP 0:05:29.560 --> 0:05:33.440 five hundred today. They include IBM, Johnson and Johnson, and Netflix. 0:05:33.560 --> 0:05:37.560 Bloomberg's Tom Busby joins us with a Netflix preview. Shares 0:05:37.600 --> 0:05:40.240 of the streaming leader have taken a real beating since 0:05:40.240 --> 0:05:43.480 its last earnings report in January, down about thirty three percent. 0:05:43.600 --> 0:05:46.719 That follows a disappointing outlook for subscriber growth amid a 0:05:46.760 --> 0:05:50.520 flood of competition, but key to its first quarter results 0:05:50.520 --> 0:05:53.120 out later today the impact of a recent price increase 0:05:53.440 --> 0:05:56.440 and the suspension of service in Russia, and both could 0:05:56.480 --> 0:05:59.600 have a negative impact on results. Still, forecast goal for 0:05:59.640 --> 0:06:02.359 two point eight million subscriber ads for a total of 0:06:02.400 --> 0:06:05.839 nearly two hundred twenty five million worldwide. Look for earnings 0:06:05.839 --> 0:06:09.240 per share of two dollars cents and revenue of seven 0:06:09.279 --> 0:06:13.880 point nine five billion dollars. Tom Busby, Bloomberg Daybreak, All right, Tom, 0:06:13.880 --> 0:06:16.560 thank you on new developments this morning on Elon Musk's 0:06:16.560 --> 0:06:19.320 forty three billion dollar pursuit of Twitter. We get the 0:06:19.360 --> 0:06:22.160 latest line from Bloomberg's renied a Young, good Morning Ready down, 0:06:22.160 --> 0:06:25.560 Good Morning Care, and Bloomberg sources say Apollo Global Management 0:06:25.640 --> 0:06:28.840 is considering backing a potential deal for Twitter and could 0:06:28.839 --> 0:06:32.279 provide Elon Musk or another bidder like private equity firm 0:06:32.520 --> 0:06:36.040 Tomo Bravo, with equity or debt to support an offer. 0:06:36.240 --> 0:06:38.800 The participation would come in the form of credit or 0:06:38.880 --> 0:06:42.919 preferred equity. Of filing from last week shows Morgan Stanley 0:06:42.960 --> 0:06:46.400 as advising Musk in his unsolicited offer to take over 0:06:46.680 --> 0:06:49.360 Twitter and to take it private, and Twitter is enlisting 0:06:49.560 --> 0:06:52.600 the help of Goldman, Saxon, JP, Morgan Chase to respond 0:06:52.640 --> 0:06:55.760 to Musk's hostile bid Live in New York, I'm rened 0:06:55.800 --> 0:06:58.120 a young Bloomberg day Break, Okay, Nita, thank you. On 0:06:58.200 --> 0:07:02.279 a bullish stock call on Musk's company, Tesla, cathy Woods 0:07:02.320 --> 0:07:05.440 Our Investment Management now expects shares of the electric carmaker 0:07:05.440 --> 0:07:10.360 to more than quadruple to forty dollars by six. Cathy 0:07:10.400 --> 0:07:12.680 Wood has long been an ardent supporter of Tesla and 0:07:12.720 --> 0:07:16.160 CEO Elon Musk. Tesla is the largest solding in woods 0:07:16.200 --> 0:07:23.920 flagship our Connovation ETF. This is Bloomberg and it's now 0:07:23.960 --> 0:07:25.920 five oh seven on Wall Street where a forty five 0:07:25.920 --> 0:07:28.679 degrees in Central Park. We are under a flood watch. 0:07:28.720 --> 0:07:30.880 It's got the hutch close from Cross County Parkway to 0:07:30.920 --> 0:07:34.080 Lincoln Avenue. Tails on all the closures coming up in traffic. 0:07:34.120 --> 0:07:36.040 First Michael Barr with more on what's going on in 0:07:36.080 --> 0:07:38.559 New York and around the world. Good morning, Michael, Good 0:07:38.560 --> 0:07:41.680 morning Nathan. Now that an indoor mask mandate is back 0:07:41.720 --> 0:07:44.880 and plays in Philadelphia, will New York City do the same? 0:07:45.320 --> 0:07:49.040 COVID nineteen case numbers are rising in several cities. Mayor 0:07:49.160 --> 0:07:52.520 Eric Adams, who had been quarantining due to having the virus, 0:07:52.600 --> 0:07:55.400 was asked about mass rules in the city. We are 0:07:55.560 --> 0:07:59.280 advising New Yorker is uh to wear a mask, but 0:07:59.400 --> 0:08:01.960 we're not at the point of mandate right now. We 0:08:02.080 --> 0:08:08.080 are hospitalizations at a steady level. Depthside of steady level, 0:08:08.920 --> 0:08:11.960 Mayor Adam says, we are encouraging New Yorkers to wear 0:08:11.960 --> 0:08:15.240 the mask if you feel uncomfortable. The Supreme Court is 0:08:15.480 --> 0:08:19.080 declining to wade into a lawsuit filed by four New 0:08:19.120 --> 0:08:22.000 York City public school employees it's over a policy that 0:08:22.040 --> 0:08:26.480 they'd be vaccinated against COVID. Nineteen Judge's ruled Amazon must 0:08:26.480 --> 0:08:29.120 reinstate a former employee who was fired in the early 0:08:29.200 --> 0:08:32.520 days of the pandemic after leading a protest in Statn 0:08:32.520 --> 0:08:35.640 Island calling for the company to do more to protect 0:08:35.679 --> 0:08:39.760 workers against COVID. The judge rule that Amazon must offer 0:08:39.840 --> 0:08:43.880 the former worker, Gerald Bryson, his job back, as well 0:08:43.920 --> 0:08:47.760 as lost wages and benefits. The Biden administration is pledging 0:08:47.840 --> 0:08:51.440 not to litter in space. Vice President Harris said that 0:08:51.559 --> 0:08:55.360 the US no longer engage in anti satellite missile testing 0:08:55.360 --> 0:08:59.160 in space. Harris explained the testing causes debris and it's 0:08:59.280 --> 0:09:02.840 dangerous to research and facilities like the International Space Station. 0:09:03.120 --> 0:09:07.560 A piece of space debris the size of a basketball, 0:09:08.559 --> 0:09:13.200 which travels at thousands of miles per hour, would destroy 0:09:13.240 --> 0:09:18.679 a satellite. Even a piece of debris as small as 0:09:18.720 --> 0:09:24.679 a grain of sand could cause serious damage. Vice President 0:09:24.720 --> 0:09:27.120 Harris says we are the first nation to make such 0:09:27.120 --> 0:09:30.200 a commitment and called on other nations to follow. The 0:09:30.280 --> 0:09:33.400 number of migrants attempted to cross the US Mexico border 0:09:33.400 --> 0:09:36.280 has surged in recent weeks. It comes as the US 0:09:36.360 --> 0:09:39.640 prepares for even larger numbers with the expected lifting of 0:09:39.679 --> 0:09:44.160 a pandemic era order that turned away asylum seekers. Immigration 0:09:44.160 --> 0:09:47.680 authorities stopped migrants more than two hundred twenty one thousand 0:09:47.720 --> 0:09:50.840 times along the Southwest border in March, the highest in 0:09:50.920 --> 0:09:54.199 nearly two decades. Global News twenty four hours a day 0:09:54.320 --> 0:09:57.280 on air and on Bloomberg Quicktake, powered by more than 0:09:57.360 --> 0:10:00.559 twenty seven hundred journalists and analysts more than tw countries. 0:10:00.880 --> 0:10:08.320 Michael Barr, This is Bloomberg, Nathan, Michael, thank you. Count 0:10:08.400 --> 0:10:09.839 up to five ten on Wall Street time for the 0:10:09.840 --> 0:10:12.679 Bloomberg Sports Updake, Good morning, John stonsho Your morning, Nathan. 0:10:12.720 --> 0:10:14.640 First of the game two, his first round of the 0:10:14.720 --> 0:10:17.840 NBA playoffs in Philadelphia, six years a second straight route 0:10:17.840 --> 0:10:20.640 of Toronto on ninety seven, Joe l m being scored 0:10:20.640 --> 0:10:23.079 thirty one in Dallas. The MAVs were again without their 0:10:23.120 --> 0:10:26.679 star Luca Donston, but Jalen Brunson pot in a career 0:10:26.720 --> 0:10:29.360 I forty one point one one oh four over Utah 0:10:29.480 --> 0:10:32.440 to tie that series at one, Golden State by twenty 0:10:32.520 --> 0:10:36.280 over Denver. Steph Curry off the bench thirty four points 0:10:36.280 --> 0:10:38.520 in just twenty three minutes, and the Warriors go up 0:10:38.840 --> 0:10:41.920 to Zip the Celtics. Marcus Smart named Defensive Player of 0:10:41.920 --> 0:10:45.480 the Year, first guard to win since Gary Payton and 0:10:45.520 --> 0:10:48.800 Peyton went to Celtics practice in Boston to tell Smart 0:10:48.840 --> 0:10:52.199 he had won. Celtics Nets Game two tomorrow. Ian Boston 0:10:52.320 --> 0:10:55.640 Rangers on the Winnipeg Jets tonight at the Garden, Carolina 0:10:55.760 --> 0:10:58.280 one last night. So the Keynes lead the Rangers by 0:10:58.280 --> 0:11:01.360 two points as they battled the win. The Metropolitan Division 0:11:01.360 --> 0:11:04.640 Mets and Giants reigned out. Single admission doubleheader starts at 0:11:04.679 --> 0:11:06.760 three o'clock. Tyler mcguil. You have to allow a run 0:11:06.760 --> 0:11:09.000 and two starts goes in the opener Max Scherz or 0:11:09.080 --> 0:11:12.800 the nightcap his first met start at City Field. Garrett 0:11:12.800 --> 0:11:15.920 Cole for the Yankees in Detroit. Jake Garrietta retiring at 0:11:15.920 --> 0:11:18.400 age thirty six. He struggled in recent years. Arietta won 0:11:18.400 --> 0:11:20.840 the nls I Young Award and they in two thousand fifteen. 0:11:21.200 --> 0:11:24.120 But the Cubs NFL Draft starts awake from Thursday in 0:11:24.200 --> 0:11:26.760 Las Vegas. Been a lot of quarterback movement this offseason. 0:11:26.800 --> 0:11:29.720 Will there be another move before the draft? Carolina said 0:11:29.720 --> 0:11:32.800 to be trying to acquire Baker Mayfield from Cleveland, Who's 0:11:32.800 --> 0:11:35.720 gonna do? QB and Deshaun Watson speaking of QB's latest 0:11:35.840 --> 0:11:39.559 edition of Made for TV Golf June one in Las Vegas. 0:11:39.640 --> 0:11:44.040 Tom Brady and Aaron Rodgers versus Patrick Mahomes and Josh Allen. 0:11:44.120 --> 0:11:48.240 All four are single digit handicapped golfers. Johns Dashar Bloomberg 0:11:48.240 --> 0:11:50.840 Sports David, is there nothing they can't do? Thank you? 0:11:50.960 --> 0:11:54.319 John SMP futures down six point, staff features down seventeen, 0:11:54.400 --> 0:11:57.360 nastic futures down forty five points. The tenure treasury right 0:11:57.360 --> 0:12:01.040 now down eleven thirty seconds, the old two point eight 0:12:01.160 --> 0:12:08.480 nine per cent. This is Sploomberg Bloomber eleven three oh 0:12:08.480 --> 0:12:10.880 weather flood watch till eight this morning. It'll turn mostly 0:12:10.880 --> 0:12:13.439 sunny this afternoon, breezy with highs in the mid fifties 0:12:13.520 --> 0:12:17.400 near sixty, and sunny tomorrow low sixties, mostly cloudy on Thursday. 0:12:17.520 --> 0:12:23.920 Right now rain and forty five degrees. Markets headlines and 0:12:24.080 --> 0:12:27.320 breaking news twenty four hours a day at Bloomberg dot Com, 0:12:27.440 --> 0:12:31.000 the Bloomberg Business Out and at Bloomberg Quick Tape. He's 0:12:31.000 --> 0:12:40.160 a Bloomberg Business Flash and I'm Cameron Moscow. Stocks in 0:12:40.200 --> 0:12:43.439 Europe are lower. Bond yields are climbing as markets reopened 0:12:43.480 --> 0:12:46.880 after a holiday amid hawkish comments by Federal Reserve officials 0:12:46.880 --> 0:12:50.360 and Russia's renewed campaign in eastern Ukraine. Um Stocked index 0:12:50.400 --> 0:12:52.760 futures are lower, and we checked the markets every fifteen 0:12:52.760 --> 0:12:55.520 minutes throughout the trading day. On bloomberg S and p 0:12:55.760 --> 0:12:58.640 futures are done about eight points down. Futures down twenties 0:12:58.640 --> 0:13:01.720 seven nasdack future years down fifty two the decks in 0:13:01.760 --> 0:13:05.559 Germany's down one percent. Ten year treasury down ten thirty seconds, 0:13:05.640 --> 0:13:07.719 yield two point eight nine percent. That yield on a 0:13:07.800 --> 0:13:11.160 two year two point four six percent. NIMEX screwed oil 0:13:11.280 --> 0:13:13.080 is down one and a half percent on a dollar 0:13:13.120 --> 0:13:15.440 fifty nine at a hundred six dollars sixty two cents 0:13:15.480 --> 0:13:18.160 of barrel. Comics gold is down three ten percent or 0:13:18.200 --> 0:13:21.839 six dollars twenty cents a nine thirty announced. The euro 0:13:22.000 --> 0:13:25.160 one point o eight o two against the dollar, British 0:13:25.160 --> 0:13:27.400 pound one point three zero three five, the yen at 0:13:27.400 --> 0:13:30.800 one twenty eight point three two, and bitcoin is it'll 0:13:30.920 --> 0:13:34.320 changed at forty thousand and six d eighty dollars. Today. 0:13:34.360 --> 0:13:36.800 We are watching for reports on housing starts and building 0:13:36.840 --> 0:13:39.280 permits at at eight thirty Wall Street time, and Netflix 0:13:39.360 --> 0:13:42.559 is among companies scheduled to report earnings today. That's a 0:13:42.600 --> 0:13:45.400 Bloomberg business flash. Now here's Muckle Bar with Moore and 0:13:45.559 --> 0:13:48.280 what's going on around the world, muncle, Good morning, Good 0:13:48.280 --> 0:13:52.360 morning Karen. After days of regrouping and reinforcing, the Russian 0:13:52.360 --> 0:13:55.240 military began it in phase of the war in Ukraine. 0:13:55.640 --> 0:13:59.400 Ukrainian officials said that the Kremlin's forces launched a full 0:13:59.520 --> 0:14:04.160 scale ground offensive to take control of the country's industrial heartland, 0:14:04.160 --> 0:14:07.800 the Dunbass region. Most major US airlines are no longer 0:14:07.880 --> 0:14:12.079 requiring travelers or employees where face coverings on domestic in 0:14:12.200 --> 0:14:16.240 some international flights. The decisions came after a US judge 0:14:16.280 --> 0:14:19.920 overturned to federal mandate for passengers to cover their faces. 0:14:20.280 --> 0:14:22.800 In MLB, the Red Sox lost The A's beat the 0:14:22.840 --> 0:14:26.400 Orioles five one in the NBA Playoffs. The Warriors beat 0:14:26.440 --> 0:14:28.600 the Nuggets to lead the series two games to zip. 0:14:28.840 --> 0:14:31.880 In the NHL, the Devil's and Capitals one Global News 0:14:31.920 --> 0:14:34.320 twenty four hours a day on air and on Bloomberg 0:14:34.400 --> 0:14:37.680 Quick Take power by more than twenty seven hundred journalists 0:14:37.680 --> 0:14:40.800 analysts more than a hundred twenty countries. Michael Barron, this 0:14:40.920 --> 0:14:43.920 is Bloomberg Nain. Okay, Michael, thank you. It's five nineteen 0:14:43.960 --> 0:14:47.120 on Wall Street Line from the Bloomberg Interactive Broker Studios. 0:14:47.160 --> 0:14:50.800 This is Bloomberg Daybreak on a morning that seems like 0:14:51.320 --> 0:14:55.360 new phases is turning out to be a theme this morning. 0:14:55.360 --> 0:14:58.160 The war in Ukraine potentially entering a second phase in 0:14:58.200 --> 0:15:01.160 the Don Boss region, and the US response to COVID 0:15:01.240 --> 0:15:05.040 nineteen entering a new phase on public transportation. Let's get 0:15:05.040 --> 0:15:08.120 into all this this morning, Bloomberg Washington correspondent Joe Matthews 0:15:08.120 --> 0:15:11.560 with US host of Sound on here on Bloomberg Radio. Joe, 0:15:11.600 --> 0:15:14.920 let's start with the war in Ukraine. As we've been mentioning, 0:15:14.960 --> 0:15:18.360 the President, Vladimir z Olinski is saying that the new 0:15:18.400 --> 0:15:21.520 phase is under way now in the Don Boss and 0:15:21.560 --> 0:15:24.560 we understand President Biden is going to be holding another 0:15:24.640 --> 0:15:28.920 call with allies to weigh the response. A lot of 0:15:28.920 --> 0:15:31.680 these calls. The latest one will happen this afternoon with 0:15:31.720 --> 0:15:36.400 the leaders of France, Germany, Italy, Japan, Canada, Poland, Romania, 0:15:36.440 --> 0:15:39.120 the UK. They're gonna be talking about the war effort 0:15:39.560 --> 0:15:42.880 and specifically coordinating the delivery of weapons. You know, we've 0:15:42.920 --> 0:15:45.720 been sending weapons to Ukraine, not just the US but 0:15:45.760 --> 0:15:48.960 our European allies now for a couple of months, Nathan, 0:15:49.040 --> 0:15:53.200 and and the repeated refrain that we hear from Kiev 0:15:53.400 --> 0:15:57.280 is we need more, better, faster. A lot of this 0:15:57.360 --> 0:15:59.680 stuff is taking time to get there. And now that, 0:15:59.760 --> 0:16:03.320 as you point out, President Zelenski is calling this, uh 0:16:03.400 --> 0:16:06.640 the new phase, the battle for done Boss has begun. 0:16:06.760 --> 0:16:09.240 There is a new urgency to get some of the 0:16:09.280 --> 0:16:12.920 heavier equipment in the hands of Ukrainian forces. What kind 0:16:12.960 --> 0:16:15.480 of equipment show are we talking about here? We've heard 0:16:15.480 --> 0:16:18.000 the talk in the past about fighter jets. It seemed 0:16:18.040 --> 0:16:21.920 like that was off the table. What what, what sort 0:16:22.000 --> 0:16:24.800 of equipment could we be looking at? Those fighter jets 0:16:24.840 --> 0:16:26.400 appear to still be off the table, by the way, 0:16:26.440 --> 0:16:29.160 the big twenty nines from Poland that never got to Ukraine. 0:16:29.160 --> 0:16:33.720 Although we have been apparently clearing helicopters m I seven teams, 0:16:33.760 --> 0:16:38.080 which are Russian helicopters. We already gave several earlier this year. 0:16:38.080 --> 0:16:41.720 More on the way. But the idea with these weapons, Nathan, 0:16:41.920 --> 0:16:44.400 is to create some distance. This is gonna be a 0:16:44.440 --> 0:16:47.880 slightly different strategy now as we head into open warfare 0:16:48.520 --> 0:16:51.600 in rural country sort of areas as opposed to the 0:16:51.640 --> 0:16:55.920 street to street city fighting. Howitzer's are a major component 0:16:56.000 --> 0:16:58.920 of this. The big field cannons that can shoot projectiles 0:16:58.920 --> 0:17:02.080 at very long trajectors twenty five miles away. These are 0:17:02.080 --> 0:17:04.960 the types of weapons that we want to get over 0:17:04.960 --> 0:17:08.240 there now that are actually in transit, along with missiles 0:17:08.480 --> 0:17:11.800 ground to air missiles that can take out Russian jets 0:17:11.800 --> 0:17:14.200 and could in fact be more effective than the big 0:17:14.800 --> 0:17:17.520 according to the Pentagon, is there still a concern Joe, 0:17:17.560 --> 0:17:21.399 that more heavy weaponry could draw the US and NATO 0:17:21.560 --> 0:17:25.360 more directly into the war. We saw that attack apparently 0:17:25.800 --> 0:17:30.640 just yesterday in Leviv, very close to the border of Poland, 0:17:30.880 --> 0:17:33.160 only about forty miles away. That's a big deal. That's 0:17:33.160 --> 0:17:36.239 been a base for refugees, for government officials, uh and 0:17:36.359 --> 0:17:40.280 for news media, the reporters all over Laviv, crossing back 0:17:40.320 --> 0:17:42.399 and forth. Of course, the president was along the border 0:17:42.440 --> 0:17:45.160 of Poland not that far from there. And so yes, 0:17:45.240 --> 0:17:48.280 there are a lot of concerns about this widening sort 0:17:48.280 --> 0:17:50.879 of conflict here. And it was just on Sunday morning 0:17:50.880 --> 0:17:54.520 that Senator Chris Coons, the Democrat from Delaware who now 0:17:54.600 --> 0:17:57.000 sits in the seat once held by Joe Biden, a 0:17:57.160 --> 0:17:59.840 very close ally to to Biden, and this White House 0:18:00.320 --> 0:18:04.320 suggested openly on Sunday Morning television that we start having 0:18:04.359 --> 0:18:09.160 the conversation about American ground troops potentially being in Ukraine. 0:18:09.200 --> 0:18:11.199 It's something that the President has drawn the line on, 0:18:11.280 --> 0:18:14.240 says he won't do it. But this conversation for being 0:18:14.280 --> 0:18:17.119 started by a Democrat is remarkable. At this time with 0:18:17.160 --> 0:18:21.000 atrocities just building up on one on top of the other, 0:18:21.080 --> 0:18:24.159 and and horrifying images coming from Ukraine, the pressure on 0:18:24.200 --> 0:18:26.840 this White House when it comes to troops could escalate 0:18:26.880 --> 0:18:28.919 in the coming weeks. And on the last minute, we 0:18:28.960 --> 0:18:31.520 have here Joe speaking of pressure on the White House. 0:18:31.560 --> 0:18:35.919 It looks like it's buckled, perhaps on the mask mandate 0:18:36.040 --> 0:18:39.440 in the air about it. This is following, of course, 0:18:39.440 --> 0:18:43.040 the Supreme Court knocking down the Biden administrations vax or 0:18:43.160 --> 0:18:46.920 mask mandate for the workplace. Uh. The CDC came out 0:18:47.000 --> 0:18:50.040 last night said the mandate is over. Before that, Press 0:18:50.080 --> 0:18:54.160 Secretary Jensaki said the dj was refewing reviewing the decision 0:18:54.200 --> 0:18:56.320 that there may or may not be a legal answer 0:18:56.359 --> 0:18:59.720 to this. She called it a disappointing decision, but it 0:18:59.800 --> 0:19:01.680 may be out of the hands of the White House now. 0:19:02.200 --> 0:19:05.520 So is there a possibility in just the last couple 0:19:05.520 --> 0:19:08.480 of seconds here that there could be uh, some pushback 0:19:08.520 --> 0:19:11.200 from the White House. There absolutely is a possibility. Once 0:19:11.200 --> 0:19:12.920 we hear from the d o J and they decide 0:19:12.920 --> 0:19:16.160 whether there's a legal option here, we'll know a little 0:19:16.160 --> 0:19:18.280 bit more about it. But this story could be over 0:19:18.359 --> 0:19:20.440 as of now. Once you once you put that mask 0:19:20.520 --> 0:19:23.600 mandate down, it's pretty hard to reinstate at Nathan. A 0:19:23.600 --> 0:19:26.479 lot of people were cheering on flights last night and 0:19:26.560 --> 0:19:29.000 some say they'll wear a mask no matter what. It's 0:19:29.040 --> 0:19:30.520 kind of like trying to put a genie back in 0:19:30.520 --> 0:19:32.840 the bottle right now, that's right. Joe Matthew, host of 0:19:32.880 --> 0:19:35.920 Bloomberg Sound On here on Bloomberg Radio, will have much 0:19:35.960 --> 0:19:39.280 more on all these stories. Then at five pm Wall 0:19:39.280 --> 0:19:42.080 Street time, you can catch Joe on sound On, and 0:19:42.080 --> 0:19:44.280 we're gonna be checking back with him later on this 0:19:44.359 --> 0:19:48.280 morning on Bloomberg Daybreak. So stick around for that. SMP 0:19:48.400 --> 0:19:51.800 futures right now down ten points down, futures down forty five, 0:19:51.880 --> 0:19:55.639 Nasdaq futures down sixty four points. The tenure Treasury is 0:19:55.680 --> 0:19:58.679 down ten thirty seconds. The yield right now on the 0:19:58.720 --> 0:20:02.000 tenure note two point eight nine percent. You're listening to 0:20:02.119 --> 0:20:09.000 Bloomberg Day Brady Bloomberg eleventh three oh weather flood watch 0:20:09.160 --> 0:20:11.800 till eight am. It will turn mostly sunny this afternoon, 0:20:11.840 --> 0:20:14.480 breezy with a high in the mid fifties, upper fifties. 0:20:14.480 --> 0:20:17.960 Sunny Tomorrow, mostly cloudy, low sixties on Thursday. Right now, 0:20:18.080 --> 0:20:24.560 rain and forty five degrees. Broadcasting live from the Bloomberg 0:20:24.640 --> 0:20:28.160 Interactive Broker Studio in New York. Bloomberg E Living free 0:20:28.480 --> 0:20:32.359 to Washington, d C. Bloomberg nine one to Boston, Bloomberg 0:20:32.400 --> 0:20:35.520 one O six one to San Francisco, Bloomberg nome sixt 0:20:35.680 --> 0:20:38.480 to the country, Sirius XM chand A one nine and 0:20:38.560 --> 0:20:41.960 around the globe the Bloomberg Business app and Bloomberg Radio 0:20:42.040 --> 0:20:51.320 dot Com. This is Bloomberg Daybreak. It's five thirty on 0:20:51.359 --> 0:20:54.280 Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow, 0:20:54.400 --> 0:20:56.639 and we are just about four hours away from the 0:20:56.640 --> 0:20:58.520 open of US trading. Let's get you have to date 0:20:58.560 --> 0:21:00.240 of the news you need to know at this hour. 0:21:00.359 --> 0:21:03.879 We begin with the war in Ukraine, where Russia's military 0:21:03.960 --> 0:21:07.800 shell in the southern and eastern Ukraine. Overnight, President Vladimir 0:21:07.840 --> 0:21:11.320 z Lensky says Moscow is focusing its efforts on conquering 0:21:11.320 --> 0:21:15.639 the eastern the don Bus region. Russian troops begun the 0:21:15.640 --> 0:21:17.800 battle for the dome Bus for which they have been 0:21:17.800 --> 0:21:20.600 preparing for a long time. A significant part of the 0:21:20.720 --> 0:21:24.639 entire Russian army is now concentrated on this offensive. Ukrainian 0:21:24.680 --> 0:21:28.320 President vladimir's Lenski says his nation will continue to defend 0:21:28.320 --> 0:21:30.840 the region. The US President Joe Biden will hold a 0:21:30.880 --> 0:21:34.200 call with key allies Tuesday to discuss the war. The meantime, 0:21:34.240 --> 0:21:36.760 here in the US is still expected to participate a 0:21:36.760 --> 0:21:39.640 group of twenty meetings this week even if Russia attends. 0:21:39.840 --> 0:21:42.919 Treasury Secretary Janet Yellen had previously said the US may 0:21:43.040 --> 0:21:46.560 boycott some meetings should Russia participate, but a senior Treasury 0:21:46.600 --> 0:21:49.080 official says Yellen does not want Russia to stop the 0:21:49.160 --> 0:21:51.080 US and allies from the work it needs to do. 0:21:51.119 --> 0:21:54.000 At the well I mid fallout from the war, Nathan 0:21:54.080 --> 0:21:58.439 World Bank chief economist Carmen Reinhardt tells Bloomberg it's cutting 0:21:58.480 --> 0:22:03.520 its econom outlook. Will it be cut again. Certainly, wouldn't 0:22:03.600 --> 0:22:06.399 rule it out. But the point I'm making is we 0:22:06.480 --> 0:22:10.720 are living a period conceptional uncertain and World Bank Chief 0:22:10.720 --> 0:22:14.520 economist Carmen Reinhardt says it's lowering estimates for global growth 0:22:14.600 --> 0:22:17.560 from four point one percent in January to three point 0:22:17.600 --> 0:22:19.960 two percent. I Here in the US, Karen A judge 0:22:19.960 --> 0:22:22.719 has overturned the federal mandate for passengers to cover their 0:22:22.760 --> 0:22:25.880 faces on flights, and the five largest US carriers say 0:22:25.880 --> 0:22:30.080 they have dropped mask mandates on domestic and some international flights. Well. 0:22:30.160 --> 0:22:32.920 Nathan moving to tech new developments in Elon musk forty 0:22:33.000 --> 0:22:35.320