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Speaker 1: Live from the Bloomberg Interactive Burger Studios. This is is Bloomberg

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Speaker 1: day Break for Tuesday, January two. Coming up this hour.

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Speaker 1: Stocks are under pressure again after yesterday's wild comeback on

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Speaker 1: Wall Street, fed policy and focus, as the Central Bank

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Speaker 1: begins at two day meeting. Microsoft kicks off tech earnings

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Speaker 1: on the heels of solid results from IBM, and the

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Speaker 1: US puts thousands of troops on alert in Eastern Europe.

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Speaker 1: New York Mayor Adams is reviving the controversial anti crime

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Speaker 1: unit amid gun violence. Plus former New York Assembly Speaker

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Speaker 1: Sheldon Silver has died. I'm Michael Blomber. More ahead, I'm

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Speaker 1: John Stas Shower's fourth the nixt lost by two, the

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Speaker 1: Rangers wanting to shootout St. John's been seating Hall. And

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Speaker 1: it's the quarterfinals of the Australian Open. That's all straight

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Speaker 1: ahead on Bloomberg day Break on Bloomberg eleven Trio, New York,

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Speaker 1: Bloomberg one, Washington, d C, Bloomberg one, O six one, Boston,

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Speaker 1: Bloomberg nine sixties, San Francisco, Sirius x M one nineteen

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Speaker 1: and around the world from Bloomberg Radio dot Com and

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Speaker 1: via the Bloomberg Business or good morning. I'm Nathan Hagar

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Speaker 1: and I'm Karen Moscow, and US future is pointing to

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Speaker 1: more volatility this morning. We're coming up to six o

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Speaker 1: one on Wall Street, and we check the markets every

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Speaker 1: fifteen minutes throughout the trading day. On bloomberg S and

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Speaker 1: P Future is down forty seven points down Future is

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Speaker 1: down two hundred two and NASDAG futures down two hundred

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Speaker 1: twenty seven. The decks in Germany's up half per cent,

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Speaker 1: the ten year treasury down three thirties seconds. He had

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Speaker 1: one point seven eight percent, and they yield on the

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Speaker 1: two year one point one percent. Nine meg Screwed oil

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Speaker 1: is up eight ten percent or sixty six cents at

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Speaker 1: eighty three dollars ninety seven cents a barrel. Comic School

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Speaker 1: down two tens percent or three dollars ninety cents at

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Speaker 1: eighteen forty thirty. Announced the euro one point one to

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Speaker 1: eight one against the dollar and bitcoin at thirty six thousand,

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Speaker 1: four hundred dollars. Nathan Karen, US stocks are under more

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Speaker 1: pressure this morning after yesterday's wild turnaround on Wall Street.

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Speaker 1: Let's get the very latest live with Bloomberg's John Tucker.

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Speaker 1: Nathan Global anquities wiped out almost three trillion dollars yesterday.

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Speaker 1: That's before a dramatic reversal, So the US benchmarks ending

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Speaker 1: in the green. Jeremy Seguel and at the Wharton School

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Speaker 1: says these moves shouldn't come as a surprise, you know,

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Speaker 1: when the market has gone up as much as it

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Speaker 1: has since March of two thousands. This is still not

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Speaker 1: a big dip. But I don't think the pain is

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Speaker 1: over yet. Jeremy Seguel says that says the nasdack will

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Speaker 1: fall from its November high. Volatility is the name of

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Speaker 1: the game. The vix is up for a sixth session today.

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Speaker 1: It briefly jumped to the highest level since October twenty

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Speaker 1: before receding. The question facing advantags now is whether any

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Speaker 1: slide is a buying opportunity or pretends wider stress across

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Speaker 1: more asset classes. Live in New York, I'm John Tucker,

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Speaker 1: Bloomberg Daybreak, Right, John, thank you, My US futures aren't

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Speaker 1: the only thing falling today. Stocks in Asia saw some

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Speaker 1: heavy selling overnight, and we get the recount from Bloomberg's

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Speaker 1: Juliet Sally in Singapore. Good morning, Juliette, Good morning, Karen.

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Speaker 1: The m c I Asia Pacific Index fell the most

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Speaker 1: since December to reach its lowest level since November twenty.

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Speaker 1: Japan's Topics index closed down one into correction. Territory South

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Speaker 1: Koreas Cosby is nearing a bear market. He dropped more

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Speaker 1: than two and a half percent. In Soul. Australian sulks

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Speaker 1: fell to Meylo's and bondy Old searched after stronger than

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Speaker 1: expected inflation data boosted bets on rate increases in Singapore.

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Speaker 1: Juliette Sally Bloomberg Daybreak Juliet Thanks. The recent sell off,

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Speaker 1: along with last week slump, is being pinned on concerns

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Speaker 1: over tighter monetary policy. We get more clues on that

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Speaker 1: this week as the Fed kicks off its two day

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Speaker 1: policy meeting. Bridgewater Associates founder Ray dal Leo says the

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Speaker 1: Central Bank is still too slow. The Federal Reserve has

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Speaker 1: been behind the curve slower to type monetary policy and

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Speaker 1: as a result, we're now starting to see the rise

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Speaker 1: in interest rates to be able to deal with that.

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Speaker 1: As that happens, all assets compete with each other. That

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Speaker 1: means all the other assets have to adjust. We're in

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Speaker 1: a process of making that kind of adjustment. Bridgewater Associates

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Speaker 1: founder Ray down Leo made the comments in an interview

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Speaker 1: with David Rubinstein on peer to peer conversations. Catch the

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Speaker 1: show coming up next week on Bloomberg Television. Well, Nathan,

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Speaker 1: outside of the fed traders are watching for tech earnings

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Speaker 1: this week, and today we get results from Microsoft here

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Speaker 1: with more is Bloomberg's Tom Busby. The big focus for

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Speaker 1: investors the software giants Azure cloud computing unit and web

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Speaker 1: based versions of its office software. Also of note holiday

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Speaker 1: sales of its Xbox gaming console and video games. Just

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Speaker 1: last week, Microsoft announced its biggest acquisition ever, a nearly

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Speaker 1: sixty nine billion dollar deal to acquire Activision Blizzard. Bloomberg

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Speaker 1: forecasting revenue topping fifty billion dollars for the first time

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Speaker 1: ever and adjusted earnings of two dollars thirty two cents

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Speaker 1: a share for the second quarter. Tom Busby Bloomberg Daybreak

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Speaker 1: and tom results are already out from IBM. That company

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Speaker 1: reported revenue that beat estimates, has shares up nearly three

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Speaker 1: percent in the free market. Bloomberg's Charlie Pellett has more.

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Speaker 1: IBM got a boost from strong demand in its software unit,

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Speaker 1: which includes IBMS hybrid cloud offering. IBM software unit, the

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Speaker 1: biggest business group, grew eight point two percent. The consulting unit,

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Speaker 1: formerly known as Global Business Services, reported a thirteen percent

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Speaker 1: increase compared with the year prior. The results were the

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Speaker 1: first since IBM completed the spinoff of a large portion

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Speaker 1: of its legacy infrastructure services unit in November into a

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Speaker 1: new company in New York. Charlie Pellett Bloomberg Daybreak. All right, Charlie,

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Speaker 1: thank you. Bitcoin also in focus after yesterday's wild swings.

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Speaker 1: Have we get the latest Life from Bloomberg's ni A Young,

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Speaker 1: Good morning Radia, Good morning Karen. Yesterday headlines were all

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Speaker 1: about the crypto crash, but bitcoin snapped a five day slide,

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Speaker 1: and this morning the world's largest crypto is trading lower

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Speaker 1: once again. Analyst from Bloomberg's Life blog say, don't read

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Speaker 1: too much into today's modest decline. While Bitcoin appears to

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Speaker 1: be trading in correlation with stocks, and let's note that

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Speaker 1: turns in the digital asset came before those in stocks,

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Speaker 1: both on the way down and back up. Right now,

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Speaker 1: Bitcoin is trading around thirty seven thousand. Live in New York.

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Speaker 1: I'm Renita Young, Bloomberg day Break, Nita, thanks, Let's make

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Speaker 1: a hard turn to geo politics now, where Russia and

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Speaker 1: Ukraine remained front and center. The US is putting eight

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Speaker 1: troops on heidened alert. Has tensions swirl over a possible

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Speaker 1: Russian invasion, Bloomberg said, Baxter has the very latest Pentagon

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Speaker 1: spokes When John Kirby says on both sides of the Atlantic,

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Speaker 1: the United States has taken steps to heighten the readiness

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Speaker 1: of its forces at home and abroad, so they are

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Speaker 1: prepared to respond to a range of contingencies, and White

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Speaker 1: House spokes when Jansaki says it could come at any time.

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Speaker 1: It never ruled out the option of providing assistant additional

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Speaker 1: assistance in advance of an invasion. President met with European

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Speaker 1: leaders and says they discuss severe sanctions as well as

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Speaker 1: securing the eastern flank of NATO in San Francisco. I'm

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Speaker 1: at Baxter Bloomberg day Break, and thank you. Arning to

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Speaker 1: the pandemic. Now we have encouraging news in the battle

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Speaker 1: against the oom Crown Variandviser and by On Tech say

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Speaker 1: a pair of studies confirmed three doses of their COVID

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Speaker 1: nineteen vaccine produced antibodies that can neutralize the omicron variant,

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Speaker 1: as according to lab studies published in the journal Science.

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Speaker 1: Straight Ahead your latest local headlines, plus a check of sports.

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Speaker 1: This is Bloomberg. Thanks En six o seven on Wall Street,

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Speaker 1: Clowns and thirty seven degrees in Central Park. We have

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Speaker 1: an accident on eastbound Route two eight seven and exit

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Speaker 1: ten and Ryebruck to tails coming up in traffic First

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Speaker 1: Michael Barr with more on what's going on in New

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Speaker 1: York and around the world. Good morning, Michael, Good morning Nathan.

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Speaker 1: New York City Mayor Eric Adams vows to take a

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Speaker 1: media of action to end gun violence. During his first

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Speaker 1: few weeks in office, there have been a string of

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Speaker 1: tragic and high profile crimes. We need help, we need resources,

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Speaker 1: we need back up. Adams called for the state to

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Speaker 1: enact more restrictive bail provisions and announced plans to revive

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Speaker 1: the controversial anti crime unit. They were the Playing Close units,

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Speaker 1: disbanded under former Mayor de Blasio after misconduct complaints. Malde. However,

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Speaker 1: Adams says the units will be monitored. But my fellow

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Speaker 1: New Yorker is we are going to do a lot

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Speaker 1: more than pray. We're going to turn out pain. It's

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Speaker 1: a propose. We're going to unite and take action. Mayor

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Speaker 1: Adams says his goal is to bring thousands of guns

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Speaker 1: off the streets. Meanwhile, a vigil was held outside of

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Speaker 1: Harlem Police Precinct last night in honor of the two

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Speaker 1: officers shot Friday night. Rookie policeman Jason Rivera was killed.

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Speaker 1: His partner, Wilbert Mora, is fighting for his life. Mourners

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Speaker 1: held prayers outside the thirty second precinct. A New York

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Speaker 1: State judge has rule that the state's mask mandate can't

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Speaker 1: be enforced. The mandate was reinstituted by Governor Hocul until

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Speaker 1: February one over concerns about him when you surge of

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Speaker 1: coronavirus cases. Hocal says the administration disagrees with ruling and

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Speaker 1: is pursuing every option to reverse it. Nassau County Executive

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Speaker 1: Bruce Blakeman signed an executive order challenging the state mask mandate.

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Speaker 1: After you're taking office this month. The government does not

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Speaker 1: have power unilaterally and the Health Commission does not have

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Speaker 1: power laterally to make rules that materially affect people's lives

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Speaker 1: without respect to the cloud old damage has done, especially

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Speaker 1: to our to our school children's. Nassau County Executive Blakeman

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Speaker 1: called it a great victory. Meanwhile, the state Department of

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Speaker 1: Education says it will still require masks for students and

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Speaker 1: schools while the decision is appealed. Former New York Assembly

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Speaker 1: Speaker Sheldon Silver, who was convicted on corruption charges, has

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Speaker 1: died in federal custody. He was seventy seven. The word

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Speaker 1: yet on the official cause of death. New York Mayor

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Speaker 1: Adams choice to have his first paycheck in bitcoin. It's

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Speaker 1: not looking great at least for now. He likely lost

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Speaker 1: about a thousand dollars as the cryptocurrency market fell. Adam

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Speaker 1: says though he is a long term investor. Global News

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Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,

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Speaker 1: powered by more than twenty seven hundred journalists and analysts

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Speaker 1: more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan,

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Speaker 1: Thank you, Michael. Coming up to six ten on Wall Street.

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Speaker 1: Time for the Bloomberg Sports I Think with Johnston show.

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Speaker 1: All right, Nathan's tough week for the next three games

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Speaker 1: and five nights against three of the top five teams.

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Speaker 1: In the East first stop much improved Cleveland fifty to

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Speaker 1: fifty at halftime. Kevin Love got hot in the third quarter.

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Speaker 1: He made six three pointers. Nixon the fourth wiped out

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Speaker 1: a fifteen point Deva said, but R J. Barrett missed

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Speaker 1: the three that would have put them ahead. The Calves

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Speaker 1: won three. Love scored twenty points. Barrett at twenty four.

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Speaker 1: Knicks are in Miami tomorrow and then go to Milwaukee

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Speaker 1: Rangers Kings at the Garden. The game went to a

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Speaker 1: shootout twice. A Ranger had to score to keep it going.

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Speaker 1: Both our Tommi Panarin and electis La Franae did then

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Speaker 1: did that, and then in the sixth round it was

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Speaker 1: time for the Rangers. Adam Fox, Fuck de Shots Stars,

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Speaker 1: Great Church, twin out of fuck Fu fuck Rachard celebrate

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Speaker 1: half the tals for Fox the all They're half goalsp

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Speaker 1: and the Call. Rangers won three to their nine and three.

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Speaker 1: Since New Year's Eve, St. John's and Seaton Hall made

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Speaker 1: up a game postponed by COVID, so the two games

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Speaker 1: between the three between the teams in three days. Pirates

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Speaker 1: one Saturday at the Garden. Red Storm wanted Walsh Jim

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Speaker 1: going away eighty four to sixty three, first on campus

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Speaker 1: game for seton hallss N eighty nine, a couple of

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Speaker 1: lefties played along five center at the Australian Open. Raphael

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Speaker 1: that that won the first two sets, Dennis Chapa all

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Speaker 1: of the next two and Ndal pulled it out in five.

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Speaker 1: Also on of the semifinals goes American Madison Keys women's

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Speaker 1: top seed Ash Barty crushed American Jess Pagoula six two

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Speaker 1: six Love John stash Atwards, Bloomberg Sports Nathan Okay, John,

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Speaker 1: thank you. SMP futures down down thirty nine point, staff

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Speaker 1: futures down a hundred thirty seven nasdack futures lower by

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Speaker 1: two hundred one points. That is a decline of one

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Speaker 1: point four percent ten Your treasury down four thirty seconds.

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Speaker 1: The yield one point seven eight percent. This is Bloomberg

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Speaker 1: coming up to six twelve on Wall Street. Bloomberg day

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Speaker 1: Break is brought to you by Audie. Don't let someone

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Speaker 1: else drive off in the outie model you've always wanted.

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Speaker 1: wheel of yours. Today, markets headlines and breaking news twenty

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Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg

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Speaker 1: Business at and at Bloomberg Quick Tape, He's a Bloomberg

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Speaker 1: business lash and I'm Karen Moscow u s Dock Index

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Speaker 1: futures are following this morning as investors wa concerns about

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Speaker 1: tightening monetary policy and geo political tension against positive earnings

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Speaker 1: reports to check the markets every fifteen minutes throughout the

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Speaker 1: trading day. On Bloomberg guess and P futures down thirty

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Speaker 1: eight points down, Future is down a hundred forty three

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Speaker 1: and as day futures down one seven The decks in

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Speaker 1: Germany's up eight tenths of per cent, the ten year

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Speaker 1: treasury down five thirty seconds. He had one point seven

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Speaker 1: nine percent yield on the two year one point two percent.

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Speaker 1: Nimex screwed oils up eight ten percent or sixty seven

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Speaker 1: cents at eighty three dollars ninety nine cents. A barrel

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Speaker 1: comic school down a quarter percent or four dollars eighty

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Speaker 1: cents at eighteen thirty nine forty announced. The euro one

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Speaker 1: point one two eight two against the dollar, British bound

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Speaker 1: one point three four seven three, the ends at one

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Speaker 1: four teen point one three and Bitcoin this morning, moving

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Speaker 1: lower at thirty six thousand, five hundred dollars. Also watching

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Speaker 1: in Video today, down about two and a half percent

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Speaker 1: this morning. Sources telling Bloomberg and Video quietly preparing to

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Speaker 1: abandon his purchase of arm from soft Bank Group after

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Speaker 1: making little to no progress in winning approval for the

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Speaker 1: forty billion dollar chip deal. Has a Bloomberg Business Flash.

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Speaker 1: Now here's Michael Barr with more on what's going on

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Speaker 1: around the world. Michael Karen, thank you very much. The

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Speaker 1: Pentagon says Defense Secretary Lloyd Austin has ordered about eighty

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Speaker 1: five hundred US troops on heightened alert, preparing for possible

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Speaker 1: deployment to Europe if needed, to reassure NATO allies and

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Speaker 1: the face of Russian aggression on the border of Ukraine.

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Speaker 1: Russia says though it has no plans to invade Ukraine.

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Speaker 1: North Korea appears to have fire two cruise missiles this

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Speaker 1: morning towards waters off its east coast, According to a

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Speaker 1: South Korean military official. The North has ramped up a

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Speaker 1: barrage of test this month that have rattled regional security.

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Speaker 1: In the NBA, the nixt lost in the NHL, the

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Speaker 1: Rangers won, the Bruins and capitals lost Global news twenty

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Speaker 1: four hours a day on air and on Bloomberg Quick Take,

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Speaker 1: powered by more than twenty seven under journalists and analysts

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Speaker 1: more than a hundred twenty countries. Michael Barr, This is Bloomberg.

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Speaker 1: Nathan all right, Michael, Thanks six nineteen on Wall Street

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Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak.

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Speaker 1: We get right back to the market action now with

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Speaker 1: Daniel Morris, chief market strategist at BNP Party bo Asset Management,

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Speaker 1: as we watch futures continue to fall this morning after

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Speaker 1: the wild turnaround yesterday, and a lot of analysts were

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Speaker 1: looking for choppy waters to start this year, but were

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Speaker 1: we expecting anything like this? Dan? I think there are

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Speaker 1: two things that explain why it's been so volatila at

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Speaker 1: the beginning of the year. So number one, I mean,

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Speaker 1: we didn't anticipate over the course of the year an

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Speaker 1: increase in real interest rates and that would put pressure

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Speaker 1: on valuations, particularly for gross stalks. And the question was

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Speaker 1: really just when that would happen and how quickly. So

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Speaker 1: we have the answer to that question. It's now, and

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Speaker 1: it's very quickly. I think what's exacerbated that though, has

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Speaker 1: been the disappointment on the earning side, and not per

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Speaker 1: se and the results themselves, but on the guidance. I mean,

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Speaker 1: typically you have about twenty percent of companies when they

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Speaker 1: report getting positive guidance. So again, at the best of times,

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Speaker 1: it's not necessarily high number. But last year we know

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Speaker 1: we had earning surprises, significant earning enterprises through the whole season,

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Speaker 1: and positive guidance was around fifty or sometimes even six.

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Speaker 1: Over the last couple of weeks, it's been five percent

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Speaker 1: out of this earning season, so I think that's been

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Speaker 1: a kind of other unpleasant surprise in all of this,

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Speaker 1: I think has made this downturn a lot more here.

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Speaker 1: Do you expect this downturn to go further? And if so,

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Speaker 1: how much? Well, you know, that's always the key question.

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Speaker 1: I think the two things that make us still a

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Speaker 1: little bit cautious are number one, if you look at

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Speaker 1: valuations and again for gross talks in particular, they're certainly

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Speaker 1: lower than they were, but nowhere where you'd call cheap,

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Speaker 1: and nowhere yet the levels you are at prior to

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Speaker 1: the latest QUEI round that followed the pandemic. And secondarily,

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Speaker 1: without kind of better earning support, you do think that

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Speaker 1: there's still some nervousness. The other thing to keep in

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Speaker 1: mind is, you know you're getting more and more discussion

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Speaker 1: about even more interest rate hikes in next year. So

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Speaker 1: I've said a three four up to seven, So instill

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Speaker 1: the market until the market has settled on the number.

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Speaker 1: There the risk or the concern is going to be

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Speaker 1: that it's howire interest rates and again further pressure on

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Speaker 1: valuations and putting further pressure, I would imagine on the Fed.

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Speaker 1: Is that what you're thinking here is we're waiting for

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Speaker 1: Chairman Powell to come out with the policy decision tomorrow. Well,

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Speaker 1: this really is perhaps a lit as test. There was

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Speaker 1: always a question, you know whenever you know, we talked

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Speaker 1: about the central bank put screens, found put and so on,

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Speaker 1: and if they see a significant decline in the market,

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Speaker 1: you know, would they later in the year have paused, uh,

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Speaker 1: the interest rate hikes or the balancie runoff? Well that

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Speaker 1: that question is going to post itself. Now, how you

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Speaker 1: know much do they say particularly run balance you runoff?

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Speaker 1: Because that's been the big change over the last several

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Speaker 1: weeks that we had the last Fed minutes. You know,

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Speaker 1: how quickly they're going to do that, and you know,

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Speaker 1: we won't know what they would have said otherwise, but

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Speaker 1: you you wonder if they're going to be quite as

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Speaker 1: aggressive now given how the markets reacted. What's your calm

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Speaker 1: on what we can get from the Fed tomorrow? Um?

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Speaker 1: But I think we see the market pricing in uh,

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Speaker 1: you know, already five hikes and that could go a

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Speaker 1: bit higher. We anticipated that they're going to attempt to

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Speaker 1: one be clear that they are going to address inflation,

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Speaker 1: but at the same time, perhaps be a little bit

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Speaker 1: more cautious about how quickly they're going to do that,

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Speaker 1: to let the markets at least a jest the news

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Speaker 1: that they've had to deal with over the last few weeks.

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Speaker 1: Just to take a little outer view here, Daniel, what

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Speaker 1: are the wild swings like we saw yesterday tell you

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Speaker 1: about the health of this market right now? Well, certainly

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Speaker 1: you would like to see a bit more breadth in

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Speaker 1: the in the market itself. I think what we're always

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Speaker 1: wondering about is, you know, what point will go to

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Speaker 1: broad investors, retail investors, in tutional investors, so thinks have

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Speaker 1: fallen enough to to come back into the market and

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Speaker 1: buy the dep in a classic sense. Uh, you know,

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Speaker 1: whether we necessarily saw a sign of that yesterday, I'd

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Speaker 1: think probably not. Like I said, we really haven't seen

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Speaker 1: valuations reset to a level where stocks are cheap in

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Speaker 1: absolute terms. I think what we're seeing is, you know,

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Speaker 1: when you're transitioning from an environment really over the last

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Speaker 1: fifteen years, with the exception of the hikes under yelling

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Speaker 1: but still broadly falling interest rate environment to what we

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Speaker 1: appreciate now is secularly different. Uh. That's just going to

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Speaker 1: take some time for the markets to adjust to that,

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Speaker 1: and that implies a lot of volatility. All right, Daniel,

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Speaker 1: thank you as always good to get your insights this

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Speaker 1: morning after uh, pretty wild start to the week. Daniel

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Speaker 1: Morris's chief market strategist at BNP Party BA Asset Management,

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Speaker 1: want to pass along a red headline just across the

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Speaker 1: Bloomberg terminal. GE has reported fourth quarter revenue that missed

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Speaker 1: the average analyst estimate. Came in at twenty point three

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Speaker 1: billion dollars. The average estimate was twenty one point three

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Speaker 1: so billion dollar miss there on overall revenue in the

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Speaker 1: fourth quarter, and right now GE shares are tumbling on

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Speaker 1: the earnings right now, down seven and a half percent

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Speaker 1: in the pre market. As for the broader market, we

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Speaker 1: see futures continuing to fall, with S ANDP futures right

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Speaker 1: now down forty two points down, futures down a hundred

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Speaker 1: seventy NASTAC futures are lower by two hundred eight points,

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Speaker 1: a drop of one point four percent there, and the

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Speaker 1: tenure treasury is down five thirty seconds, the yield one

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Speaker 1: point seven eight percent. We'll have much more on the

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Speaker 1: g E earnings, plus the latest on the markets wild ride,

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Speaker 1: and the latest on the standoff over Ukraine. Five things

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Speaker 1: you need to know to start day coming up right

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Speaker 1: here on Bloomberg Daybreak Bloomberg eleven three oh Weather mostly

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Speaker 1: cloudy to start partial clearing later today with a high

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Speaker 1: in your forty, low twenties. That's all we'll get tomorrow.

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Speaker 1: By Thursday will be partly sunny, upper twenties. Currently thirty

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Speaker 1: seven in Central Park bridcasting live from the Bloomberg Interactive

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Speaker 1: Broker Studio in New York. Bloomberg E Living Freedom to Washington,

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Speaker 1: d C. Bloomberg On to Boston, Bloomberg one O six

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Speaker 1: one to San Francisco, Bloomberg Non sixty to the Country

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Speaker 1: Sirius XM Chado one nine and around the globe, the

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Speaker 1: Bloomberg Business Act and Bloomberg Radio dot com. This is

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Speaker 1: Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm

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Speaker 1: Nathan Hagar and I'm pared Moscow. We're just about three

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Speaker 1: hours away from the open of US trading. Time for

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Speaker 1: the five things you need to notice start your day.

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00:20:59,440 --> 00:21:02,200
Speaker 1: Bront to you by Interactive Brokers. Trade crypto for less

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Speaker 1: R dot com slash crypto. First, we're seeing more pressure

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Speaker 1: on US stocks this morning after yesterday's wild turnaround On

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Speaker 1: Wall Street. SNP futures are down forty four points or

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Speaker 1: one percent, and we get the details on these moves

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Speaker 1: live with the Bloomberg's John Tucker John Karen. The S

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Speaker 1: and P five hundred felt about four percent yesterday before

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Speaker 1: ending slightly higher. Volatility is climbing. The VIX just closed

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Speaker 1: shy of thirty, compared to a lifetime average just shy

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Speaker 1: of twenty, according to calculations by Bespoke Investment Group. Monday

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Speaker 1: was the sixth time since the NASDAC are raised a

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Speaker 1: four percent plus inter day decline to close higher on

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Speaker 1: the day. Strategists tracked by Bloomberger are still bullish, with

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Speaker 1: their year end average forecast for the SMP five hunded

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Speaker 1: close to five thousand. Live in New York. I'm John Tucker,

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Speaker 1: Bloomberg Daybreak. All right, John, thanks some big coins and

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Speaker 1: focus as well after yesterday is wild swings and it's

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Speaker 1: trading lower again. Today, Let's get the latest live from

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Speaker 1: Bloomberg's Rnita Young, Granita Nathan. Yesterday headlines were all about

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Speaker 1: the crypto crash, but bitcoin snapped a five days slide.

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Speaker 1: Endalysts from Bloomberg's Markets Live blogs say don't read too

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Speaker 1: much into today's modest decline. Though. While Bitcoin appears to

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Speaker 1: be trading in correlation with stocks, turns in the digital

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Speaker 1: asset came before those in stocks, both on the way

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Speaker 1: down and back up, and right now Bitcoin is trading

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Speaker 1: at thirty six thousand. Live in New York. I'm Rnita Young,

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Speaker 1: Bloomberg Day Break, Reny to thank you. The slump and

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Speaker 1: risk assets is being blamed on forecast for Fed policy

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Speaker 1: and again more clues on that this week is the

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Speaker 1: Fed kakes off at two day policy meeting today and

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Speaker 1: Karen earnings are front and center as well. Microsoft reports

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Speaker 1: results this afternoon on the heels of upbeat numbers from IBM.

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Speaker 1: The shares are up almost two percent after the best

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Speaker 1: sales growth in ten years. On the flip side, General

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Speaker 1: Electric earnings out moments ago missed and GEES shares are

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Speaker 1: down seven percent. And taking a turn to geo politics, now,

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Speaker 1: it's all about rush in Ukraine. The Boding administration has

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Speaker 1: put as many as eighty five hundred troops on alert

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Speaker 1: for deployment in Eastern Europe. Former Obama campaign foreign policy

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Speaker 1: advisor David to Fury says Vladimir Putin is a threat.

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Speaker 1: Until the last six months, people didn't really recognize the

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Speaker 1: threat that Putin posed to Ukraine and to our other

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Speaker 1: allies in Eastern Europe. And I think people in both

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Speaker 1: parties are waking up to that now. Former Obama campaign

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Speaker 1: foreign policy advisor David ta Fury spoke with our Washington

430
00:23:26,840 --> 00:23:29,480
Speaker 1: correspondent Joe Matthew on Bloomberg Sound On, and that's the

431
00:23:29,560 --> 00:23:31,360
Speaker 1: five things you need to know to start your day,

432
00:23:31,440 --> 00:23:38,440
Speaker 1: Brought to you by Interactive Brokers. This is Bloomberg pleeks

433
00:23:38,480 --> 00:23:42,280
Speaker 1: staring sixe on Wall Street, thirty seven degrees in Central Park,

434
00:23:42,400 --> 00:23:44,439
Speaker 1: and Michael Barr is here with more on what's going

435
00:23:44,520 --> 00:23:46,879
Speaker 1: on in New York and around the world. Good morning, Michael,

436
00:23:46,960 --> 00:23:50,000
Speaker 1: Good morning Nathan. New York Mayor Eric Adams says the

437
00:23:50,040 --> 00:23:53,240
Speaker 1: recent violence is reminiscent of the city's dark days in

438
00:23:53,280 --> 00:23:56,600
Speaker 1: the nineteen seventies and eighties. New York is feel as

439
00:23:56,760 --> 00:24:01,480
Speaker 1: if a sea of violence is engulfing our city. Adams

440
00:24:01,560 --> 00:24:04,040
Speaker 1: has announced the city will step up efforts to seize

441
00:24:04,040 --> 00:24:07,960
Speaker 1: illegal guns and institute a multi pronged plan to tackle

442
00:24:08,040 --> 00:24:11,480
Speaker 1: the issue. Adams and his blueprint to end gun violence

443
00:24:11,600 --> 00:24:14,560
Speaker 1: is bringing back playing closed units where the violence has

444
00:24:14,640 --> 00:24:18,520
Speaker 1: been highest. These units were disbanded under the previous administration,

445
00:24:18,560 --> 00:24:21,560
Speaker 1: but the mayor is bringing them back and promising that

446
00:24:21,720 --> 00:24:26,080
Speaker 1: they will be monitored. Gun violence is a public health crisis.

447
00:24:26,760 --> 00:24:30,920
Speaker 1: There's no time to wait, Mayor Adams. As A vigil

448
00:24:31,040 --> 00:24:33,000
Speaker 1: was held last night in front of the thirty second

449
00:24:33,040 --> 00:24:35,959
Speaker 1: Precinct for the two officers shot in Harlem last night

450
00:24:36,040 --> 00:24:39,639
Speaker 1: a last Friday, one officer, Jason Rivera, died as partner

451
00:24:39,760 --> 00:24:43,560
Speaker 1: Wilbert Mora is fighting for his life. The suspected gunman

452
00:24:43,640 --> 00:24:47,360
Speaker 1: Lashawn McNeil night of his injuries yesterday in a Harlem hospital.

453
00:24:47,760 --> 00:24:50,520
Speaker 1: A New York State Supreme Court judge ruled Governor Kathy

454
00:24:50,600 --> 00:24:54,680
Speaker 1: Hokele's masked mandate is unconstitutional. The rule was sent to

455
00:24:54,800 --> 00:24:59,760
Speaker 1: expire February one. Nassau County Executive Bruce Blakeman signed an

456
00:25:00,000 --> 00:25:03,520
Speaker 1: necative order challenging the state mask mandate after taking office

457
00:25:03,560 --> 00:25:06,480
Speaker 1: this month. It's a great victory for the people of

458
00:25:06,520 --> 00:25:08,800
Speaker 1: the State of New York. It's a great victory for

459
00:25:08,880 --> 00:25:11,640
Speaker 1: our school children, and it's a great victory for both

460
00:25:11,680 --> 00:25:14,800
Speaker 1: the Constitution of the United States and the constitution of

461
00:25:14,880 --> 00:25:17,520
Speaker 1: the State of New York. Nassau County Executive blake Men

462
00:25:17,600 --> 00:25:20,280
Speaker 1: as the state Department of Educations as it will still

463
00:25:20,400 --> 00:25:24,320
Speaker 1: require masks for students in schools while the decision is appealed.

464
00:25:24,840 --> 00:25:27,760
Speaker 1: Three Baltimore firefighters were killed and the fourth remains in

465
00:25:27,760 --> 00:25:30,719
Speaker 1: a critical condition after being trapped in a fire inside

466
00:25:30,720 --> 00:25:34,639
Speaker 1: of acan home that collapsed. Baltimore Mayor Brandon Scott, this

467
00:25:35,040 --> 00:25:38,920
Speaker 1: is a gut wrench in tragedy for our city, for

468
00:25:39,040 --> 00:25:42,960
Speaker 1: our fire department, and most importantly for the families of

469
00:25:43,040 --> 00:25:46,119
Speaker 1: our firefighters. Scott says the blaze is now one of

470
00:25:46,200 --> 00:25:50,200
Speaker 1: the deadliest in the city's history. Former New York Assembly

471
00:25:50,280 --> 00:25:53,440
Speaker 1: Speaker Sheldon Silver, one of the most powerful figures in

472
00:25:53,520 --> 00:25:57,479
Speaker 1: state government for two decades before his conviction on corruption charges,

473
00:25:57,800 --> 00:26:00,879
Speaker 1: has died in federal custody. So Vera had been serving

474
00:26:00,920 --> 00:26:03,800
Speaker 1: his sentence at the Federal Medical Center in Massachusetts. The

475
00:26:03,880 --> 00:26:06,440
Speaker 1: Manhattan Democrat who told the judge he prayed he would

476
00:26:06,480 --> 00:26:09,040
Speaker 1: not die in prison, was serving a more than six

477
00:26:09,160 --> 00:26:13,040
Speaker 1: years sentence. Sheldon Silver with seventy seven Global News twenty

478
00:26:13,080 --> 00:26:15,880
Speaker 1: four hours a day on air and on Bloomberg Quicktake,

479
00:26:16,119 --> 00:26:18,880
Speaker 1: powered by more than twenty seven hundred journalists and analysts

480
00:26:18,960 --> 00:26:21,080
Speaker 1: more than a hundred twenty countries. I'm Michael Barr. This

481
00:26:21,119 --> 00:26:28,440
Speaker 1: is Bloomberg. Nathan Okay, Michael, thank you. Almost six thirty

482
00:26:28,480 --> 00:26:31,920
Speaker 1: six on Wall Street. John Stash here the Bloomberg Sports Update. Alright,

483
00:26:32,000 --> 00:26:34,280
Speaker 1: Nathan nice. Comeback by the Knicks in Cleveland. They trailed

484
00:26:34,280 --> 00:26:36,520
Speaker 1: by fifteen, and the fourth quarter rally to tie the game,

485
00:26:36,600 --> 00:26:40,119
Speaker 1: but the Calves one ninety three damage done in the

486
00:26:40,200 --> 00:26:42,720
Speaker 1: third when Kevin Love kept hitting three pointers. He scored

487
00:26:42,760 --> 00:26:45,159
Speaker 1: twenty points with six threes. R J Parrett of the

488
00:26:45,200 --> 00:26:47,199
Speaker 1: Knicks with twenty four. Another went for the Rangers at

489
00:26:47,240 --> 00:26:49,720
Speaker 1: the guard. Another goal for Chris Cryder came with two

490
00:26:49,800 --> 00:26:52,760
Speaker 1: seconds left of the first period. Crider nine goals in

491
00:26:52,880 --> 00:26:55,359
Speaker 1: his last six games, leads the league with thirty. The

492
00:26:55,480 --> 00:26:57,159
Speaker 1: Kings led to to one, the Rangers tied it with

493
00:26:57,200 --> 00:26:59,640
Speaker 1: thick minutes left. They won three two and I shootout.

494
00:26:59,680 --> 00:27:02,760
Speaker 1: There said six rounds. Adam Fops the game winner, nice

495
00:27:02,800 --> 00:27:05,200
Speaker 1: rebound for St. John's. Two days after a home lost

496
00:27:05,280 --> 00:27:07,760
Speaker 1: to Seaton Hall, the Red Storm beat the Pirates easily

497
00:27:07,840 --> 00:27:11,679
Speaker 1: eighty four sixty three, Aaron Wheelers seventeen points, ten rebounds.

498
00:27:11,760 --> 00:27:14,280
Speaker 1: Due to COVID, the game was played on campus in

499
00:27:14,440 --> 00:27:17,360
Speaker 1: South Orange, where Seaton Hall had not played since nineteen nine.

500
00:27:17,800 --> 00:27:20,680
Speaker 1: Raphael Nadal into the semifinals. The Australian openly won a

501
00:27:20,760 --> 00:27:23,720
Speaker 1: five center with the Canadian Dennis Chapaval of Ash Party,

502
00:27:24,080 --> 00:27:25,920
Speaker 1: trying to be the first Native Ausee to win the

503
00:27:25,960 --> 00:27:29,360
Speaker 1: women's single since nineteen seventy seven, she has been dominant,

504
00:27:29,600 --> 00:27:32,919
Speaker 1: took out American Jess Pacoola six to six. Love Madison

505
00:27:33,040 --> 00:27:36,239
Speaker 1: Key has won her quarter final back Baseball players made

506
00:27:36,280 --> 00:27:38,320
Speaker 1: a couple of concessions as the two sides meant to

507
00:27:38,359 --> 00:27:40,440
Speaker 1: try to end the lockout. New Mets manager of Buck

508
00:27:40,480 --> 00:27:44,280
Speaker 1: Show Walter wondering winner if there will be spring training,

509
00:27:44,440 --> 00:27:47,720
Speaker 1: hoping for the best. I think the players are two

510
00:27:47,840 --> 00:27:52,240
Speaker 1: and uh, I'm gonna get into handicap and the walkout.

511
00:27:52,359 --> 00:27:55,359
Speaker 1: But you know, we're trying to prepare for all scenarios,

512
00:27:55,400 --> 00:27:59,320
Speaker 1: no one scenarios no one that it's probably completely to

513
00:27:59,400 --> 00:28:02,720
Speaker 1: be completely sum We're gonna try. We'll find out tonight

514
00:28:02,800 --> 00:28:05,480
Speaker 1: who's going into the Baseball Hall of Fame. David Ortiz

515
00:28:05,640 --> 00:28:09,920
Speaker 1: is expected to make it. Actually, we're Bloomberg Sports, all right, John,

516
00:28:09,960 --> 00:28:12,399
Speaker 1: Thanks sixty seven on Wall Street. Time to take a

517
00:28:12,440 --> 00:28:14,080
Speaker 1: look at stocks, some of the names moving in the

518
00:28:14,160 --> 00:28:17,440
Speaker 1: pre market. Bloomberg Radio on TV. Markets correspondent Creedy Goopta

519
00:28:17,560 --> 00:28:20,639
Speaker 1: joins us now starting off Credy with a big deal

520
00:28:20,760 --> 00:28:23,760
Speaker 1: that's no longer a done deal in the chip sector. Yeah,

521
00:28:23,880 --> 00:28:26,200
Speaker 1: let's just start off with Nvidio n v D as

522
00:28:26,240 --> 00:28:28,840
Speaker 1: your taker. Down three point two percent in the pre market.

523
00:28:28,920 --> 00:28:31,960
Speaker 1: This is coming afternows that they're quietly preparing to abandon

524
00:28:32,040 --> 00:28:35,359
Speaker 1: their purchase of ARM from soft Bank after making little

525
00:28:35,400 --> 00:28:38,160
Speaker 1: to no progress and winning approval for the forty billion

526
00:28:38,200 --> 00:28:40,880
Speaker 1: dollar chip deal, as according to people familiar with the matter,

527
00:28:41,080 --> 00:28:44,480
Speaker 1: scoop from our folks over in San Francisco. This is

528
00:28:44,560 --> 00:28:46,520
Speaker 1: important because we know and Video has been dealing with

529
00:28:46,520 --> 00:28:48,800
Speaker 1: a lot of regulatory scrutiny both in the US and

530
00:28:48,960 --> 00:28:51,600
Speaker 1: the UK. So this is a deal that has struggled

531
00:28:51,640 --> 00:28:53,680
Speaker 1: to take off and now looks like they are willing

532
00:28:53,760 --> 00:28:56,120
Speaker 1: to call it quits. So once again, down three point

533
00:28:56,200 --> 00:28:59,040
Speaker 1: two n v d A. Moving on though, too, an

534
00:28:59,120 --> 00:29:01,760
Speaker 1: earning story once again, Nathan, We're getting into the thick

535
00:29:01,800 --> 00:29:03,840
Speaker 1: of it, into the thick of earning season here. We're

536
00:29:03,840 --> 00:29:07,320
Speaker 1: gonna kick it off with International Business Machines otherwise known

537
00:29:07,400 --> 00:29:11,480
Speaker 1: as IBM, reporting a revenue last night that beating analysts

538
00:29:11,520 --> 00:29:15,000
Speaker 1: estimates void by strong demand in the software unit, including

539
00:29:15,040 --> 00:29:19,120
Speaker 1: IBMS hybrid cloud offering, signaling the company's efforts to transform

540
00:29:19,400 --> 00:29:21,840
Speaker 1: the one hundred and ten year old tech giant. Well

541
00:29:22,160 --> 00:29:24,960
Speaker 1: they're working out. Those shares are up one point nine

542
00:29:25,000 --> 00:29:27,480
Speaker 1: percent in the pre market, Nathan, And as you know,

543
00:29:27,560 --> 00:29:30,120
Speaker 1: we've got a lot of earnings just this morning to

544
00:29:30,160 --> 00:29:33,400
Speaker 1: get to him. Yeah, this morning, General Electric missing Wall

545
00:29:33,440 --> 00:29:36,520
Speaker 1: Street sales estimates a ges R ticker down six point

546
00:29:36,560 --> 00:29:38,840
Speaker 1: two percent, This comes after their grappling with supply chain

547
00:29:38,920 --> 00:29:41,320
Speaker 1: pressures the effects of the O macron variant. This is

548
00:29:41,440 --> 00:29:44,240
Speaker 1: not a good look for the CEO, Larry Colepy is

549
00:29:44,320 --> 00:29:46,520
Speaker 1: planning to break up the conglomerates starting next year, and

550
00:29:46,560 --> 00:29:49,160
Speaker 1: it looks like it's not coming from a position of strength.

551
00:29:49,240 --> 00:29:51,760
Speaker 1: So certainly a company to watch. In a similar vein

552
00:29:52,160 --> 00:29:54,680
Speaker 1: J and J, which is also the ticker and the

553
00:29:54,760 --> 00:29:56,920
Speaker 1: company name, down one and a half percent in the

554
00:29:56,960 --> 00:29:59,720
Speaker 1: pre market. They also reported earnings this time though the

555
00:29:59,760 --> 00:30:02,960
Speaker 1: guy it's beat the average analysts estimate. But why is

556
00:30:03,000 --> 00:30:05,320
Speaker 1: this dock down? It's because they're saying a good chunk

557
00:30:05,400 --> 00:30:08,240
Speaker 1: of their sales growth came from their vaccine sales. Now

558
00:30:08,280 --> 00:30:10,600
Speaker 1: we know this is a problem that we've seen with Maderna,

559
00:30:10,640 --> 00:30:13,000
Speaker 1: that we've seen with Fiser that because all of their

560
00:30:13,080 --> 00:30:15,400
Speaker 1: growth is coming from vaccines. As more and more people

561
00:30:15,480 --> 00:30:17,760
Speaker 1: get vaccinated, the question is where is that next leg

562
00:30:17,800 --> 00:30:19,520
Speaker 1: of growth going to come from. So J and J

563
00:30:19,680 --> 00:30:21,680
Speaker 1: once again down one and a half percent. I'll wrap

564
00:30:21,720 --> 00:30:24,800
Speaker 1: it up here, Nathan with Microsoft, because they're the big

565
00:30:24,840 --> 00:30:27,760
Speaker 1: company to watch after the bell m s FT is

566
00:30:27,800 --> 00:30:30,160
Speaker 1: your ticker down one point one percent in the pre market.

567
00:30:30,200 --> 00:30:33,000
Speaker 1: Plane to report second quarter earnings. That's their fiscal second

568
00:30:33,080 --> 00:30:36,320
Speaker 1: quarter after the Bell, expected by analysts to be the

569
00:30:36,520 --> 00:30:40,640
Speaker 1: first three month period in which sales top fifty billion dollars. Nathan,

570
00:30:40,680 --> 00:30:44,960
Speaker 1: we'll see that very busy earning season continues. Bloomberg Radio

571
00:30:44,960 --> 00:30:48,360
Speaker 1: and TV Markets correspondent Creedy Gupta. As always, thank you

572
00:30:48,480 --> 00:30:51,080
Speaker 1: for the pre market check up as we look at

573
00:30:51,160 --> 00:30:53,640
Speaker 1: markets as a whole ahead of this Tuesday morning open.

574
00:30:54,480 --> 00:30:58,760
Speaker 1: More pain perhaps future is now down fifty points down,

575
00:30:58,800 --> 00:31:01,920
Speaker 1: futures down two two. Nasdaq futures are lower by two

576
00:31:02,080 --> 00:31:05,479
Speaker 1: hundred forty eight points, a drop of one point seven percent.

577
00:31:06,120 --> 00:31:09,720
Speaker 1: The tenure down three thirty seconds, the yield one point

578
00:31:09,840 --> 00:31:14,080
Speaker 1: seven eight percent. Latest on tensions with Ukraine and more

579
00:31:14,160 --> 00:31:17,920
Speaker 1: from the nation's capital. Next with Bloomberg Government reporter Emily Wilkins.

580
00:31:18,520 --> 00:31:24,480
Speaker 1: This is Bloomberg Bloomberg eleven three oh Weather partial clearing

581
00:31:24,560 --> 00:31:27,440
Speaker 1: late today with a high near forty, sunny, breezy cold

582
00:31:27,520 --> 00:31:30,360
Speaker 1: Tomorrow has only the low twenties will make get up

583
00:31:30,400 --> 00:31:33,440
Speaker 1: to thirty on Thursday. Right now thirty seven in Central

584
00:31:33,480 --> 00:31:40,280
Speaker 1: Park Markets, headlines and breaking news twenty four hours a

585
00:31:40,360 --> 00:31:43,320
Speaker 1: day at Bloomberg dot Com. The Bloomberg Business at and

586
00:31:43,520 --> 00:31:53,240
Speaker 1: at Bloomberg quicktape truce. He's a Bloomberg Business Flash. He

587
00:31:53,400 --> 00:31:56,200
Speaker 1: good morning. I'm Karen, Moscow future is falling this morning.

588
00:31:56,280 --> 00:31:58,080
Speaker 1: Let's go to the first word breaking news dance for

589
00:31:58,120 --> 00:32:00,960
Speaker 1: today's morning call. Here's Bill Mall only bull good morning

590
00:32:01,960 --> 00:32:04,080
Speaker 1: and good morning Karen. That's right. US features are in

591
00:32:04,160 --> 00:32:06,800
Speaker 1: the red right now, with Doubt futures down two three

592
00:32:06,840 --> 00:32:09,880
Speaker 1: point s simes drop fifty seven old, Nazdek futures are

593
00:32:09,960 --> 00:32:13,040
Speaker 1: off by two seventy four, the US ten year old

594
00:32:13,040 --> 00:32:15,880
Speaker 1: at one point seven nine percent, Gold is down five,

595
00:32:15,960 --> 00:32:18,680
Speaker 1: oil is little change, and bitcoin is down by one

596
00:32:18,720 --> 00:32:22,200
Speaker 1: point five percent. Shanghai dropped two point six percent overnight.

597
00:32:22,240 --> 00:32:24,640
Speaker 1: Well UPM markets are in the green, led by one

598
00:32:24,680 --> 00:32:27,640
Speaker 1: percent gains in France and Spain. Back in the US

599
00:32:27,680 --> 00:32:30,080
Speaker 1: on the Economic find a ten o'clock consumer confidence and

600
00:32:30,280 --> 00:32:34,040
Speaker 1: Richmond fed after the bellas night, IBM had its biggest

601
00:32:34,120 --> 00:32:37,120
Speaker 1: sales jump in at least ten years. And regarding some

602
00:32:37,200 --> 00:32:40,000
Speaker 1: of the earnings this morning, at G revenue missed estimates,

603
00:32:40,240 --> 00:32:43,880
Speaker 1: J and J two JUSTUS EPs forecasts beat estimates, and

604
00:32:44,040 --> 00:32:47,520
Speaker 1: three m EPs also beat estimates. In deal News and

605
00:32:47,640 --> 00:32:50,000
Speaker 1: video is said to be planning to abandon its takeover

606
00:32:50,160 --> 00:32:53,520
Speaker 1: of arm holdings and wrapping things up. Snowflake was raised

607
00:32:53,600 --> 00:32:56,440
Speaker 1: by over at Loop Capital Marathon, Petroleum cuts to neutral,

608
00:32:56,480 --> 00:33:00,320
Speaker 1: over a Piper and Viacom CBS race to sector weight wreck,

609
00:33:00,400 --> 00:33:04,960
Speaker 1: Keybank live from the first reconduced descom boom maloney care great, Phil,

610
00:33:05,000 --> 00:33:06,479
Speaker 1: thank you, and to hear live breaking news of your

611
00:33:06,520 --> 00:33:09,840
Speaker 1: Bloomberg had Squawk on your terminal squ a wuk and

612
00:33:09,920 --> 00:33:12,520
Speaker 1: also crossing the Bloomberg with Fiser saying it started a

613
00:33:12,560 --> 00:33:16,080
Speaker 1: study of a COVID nineteen vaccine that targets the omicron variant.

614
00:33:16,320 --> 00:33:18,720
Speaker 1: That's the Bloomberg business flash. Now here's Michael Barr with

615
00:33:18,840 --> 00:33:22,040
Speaker 1: more on what's going on around the world. Michael Karen,

616
00:33:22,120 --> 00:33:24,400
Speaker 1: thank you very much. The US is putting as many

617
00:33:24,480 --> 00:33:27,920
Speaker 1: as eight troops on heightened alert for deployment to bolstered

618
00:33:28,000 --> 00:33:31,880
Speaker 1: NATO forces in Eastern Europe if needed, as Russian troops

619
00:33:32,000 --> 00:33:36,480
Speaker 1: mass on Ukraine's borders. Russia has denied and intends to invade.

620
00:33:36,960 --> 00:33:39,960
Speaker 1: In the NBA, the next lost in the NHL, the

621
00:33:40,120 --> 00:33:43,080
Speaker 1: Rangers won, the Bruins and Capitals lost. Global News twenty

622
00:33:43,120 --> 00:33:45,640
Speaker 1: four hours a day on air and on Bloomberg quickdake

623
00:33:45,960 --> 00:33:48,800
Speaker 1: powered by more than twenty seven under journalist and analysts

624
00:33:48,800 --> 00:33:51,160
Speaker 1: are more than a hundred twenty countries. I'm Michael Barr.

625
00:33:51,240 --> 00:33:57,280
Speaker 1: This is Bloomberg. The following commentary is from Bloomberg Opinion. Sorry,

626
00:33:57,320 --> 00:34:00,440
Speaker 1: stock traders, the FED won't have your back. I'm Brian Chapata,

627
00:34:00,440 --> 00:34:03,800
Speaker 1: A Calums for Bloomberg Opinion. Bad news pandemic era investors,

628
00:34:04,000 --> 00:34:05,800
Speaker 1: The Fed won't have you back as it once did.

629
00:34:06,080 --> 00:34:08,160
Speaker 1: Over the past twenty two months, the playbook has remained

630
00:34:08,160 --> 00:34:11,040
Speaker 1: constant by any dips in large US equity market indexes

631
00:34:11,040 --> 00:34:13,319
Speaker 1: and profit. But that hasn't worked in the first three weeks,

632
00:34:14,440 --> 00:34:16,799
Speaker 1: with the SMP five hundred and NASDAQ one hundred each

633
00:34:16,840 --> 00:34:19,200
Speaker 1: following by more than ten percent at one point. That's

634
00:34:19,239 --> 00:34:21,319
Speaker 1: one clear hint the stock market is coming to terms

635
00:34:21,360 --> 00:34:23,279
Speaker 1: with the reality that the FED put is disappearing in

636
00:34:23,320 --> 00:34:25,839
Speaker 1: the rear view mirror. Even after this latest swoon, It's

637
00:34:25,880 --> 00:34:28,200
Speaker 1: highly doubtful the policy makers will be knocked off course

638
00:34:28,239 --> 00:34:30,520
Speaker 1: at their meeting this week. There are four main reasons

639
00:34:30,600 --> 00:34:33,520
Speaker 1: for this. The Biden administration is okay to tightening. Extreme

640
00:34:33,560 --> 00:34:36,000
Speaker 1: hawkish calls from market watchers make the FED stated course

641
00:34:36,040 --> 00:34:38,560
Speaker 1: more palatable. The FED has been worried about market froth

642
00:34:38,600 --> 00:34:41,000
Speaker 1: for a while now, and credit markets are still calm,

643
00:34:41,320 --> 00:34:43,200
Speaker 1: so expect the Fed to use its decision this week

644
00:34:43,239 --> 00:34:44,880
Speaker 1: to signal that it will raise the Fed funds rate

645
00:34:44,920 --> 00:34:47,200
Speaker 1: from year zero in March and probably begin balance sheet

646
00:34:47,239 --> 00:34:49,800
Speaker 1: run off around mid year, dialing back accommodation in the

647
00:34:49,840 --> 00:34:53,560
Speaker 1: face that persistently elevated inflation. I'm Brian Schappata. For more opinion,

648
00:34:53,600 --> 00:34:56,000
Speaker 1: please go to Bloomberg dot com, slash Opinion or opi

649
00:34:56,080 --> 00:34:58,920
Speaker 1: and go on the Bloomberg terminal. These has been Bloomberg

650
00:34:59,000 --> 00:35:02,480
Speaker 1: Opinion and Boomer Opinion commentaries can be heard every weekday

651
00:35:02,560 --> 00:35:05,160
Speaker 1: at this time, and terminal customers can read more at

652
00:35:05,239 --> 00:35:07,800
Speaker 1: O P I N GO. It is six fifty on

653
00:35:07,880 --> 00:35:10,640
Speaker 1: Wall Street. Let's turned to news and science and technology now.

654
00:35:10,920 --> 00:35:13,520
Speaker 1: But the Bloomberg n j I T STEM report brought

655
00:35:13,520 --> 00:35:16,600
Speaker 1: to U buy New Jersey Institute of Technology, ranking top

656
00:35:16,640 --> 00:35:19,880
Speaker 1: fifty national public university by US News and World Report

657
00:35:20,120 --> 00:35:22,720
Speaker 1: and at top ten for best career placement among public

658
00:35:22,880 --> 00:35:25,440
Speaker 1: schools by the Princeton Review. More at n j I

659
00:35:25,560 --> 00:35:29,799
Speaker 1: T dot E DU Now here's this making news and science, technology, engineering,

660
00:35:29,920 --> 00:35:33,879
Speaker 1: and math. New research suggests giving extra cash to low

661
00:35:33,960 --> 00:35:38,200
Speaker 1: income mothers can change their infants brain development. Researchers say

662
00:35:38,360 --> 00:35:42,399
Speaker 1: brain measurements at age one showed faster activity and key

663
00:35:42,560 --> 00:35:46,000
Speaker 1: brain regions in infants whose low income families received three

664
00:35:46,120 --> 00:35:49,359
Speaker 1: hundred dollars plus monthly for a year, compared with those

665
00:35:49,400 --> 00:35:52,960
Speaker 1: who got twenty dollars each month. The researchers are investigating

666
00:35:53,000 --> 00:35:56,240
Speaker 1: whether the payments led to better nutrition, less parent stress,

667
00:35:56,520 --> 00:35:59,719
Speaker 1: or other benefits to the infants. Fund managers without a

668
00:35:59,760 --> 00:36:02,719
Speaker 1: c FAY qualification may perform better over the long term

669
00:36:02,800 --> 00:36:05,040
Speaker 1: than those who have taken the exams, as according to

670
00:36:05,080 --> 00:36:06,920
Speaker 1: a new study that looked at the careers and more

671
00:36:06,960 --> 00:36:11,080
Speaker 1: than six thousand managers and found persistent performance was more

672
00:36:11,160 --> 00:36:14,920
Speaker 1: likely and those without the charter and who studied technical degrees.

673
00:36:15,360 --> 00:36:18,319
Speaker 1: The c f A says other studies have opposite conclusions.

674
00:36:18,800 --> 00:36:21,960
Speaker 1: And the world's biggest, most powerful space telescope has arrived

675
00:36:22,000 --> 00:36:24,840
Speaker 1: at its observation post one million miles from Earth, a

676
00:36:24,960 --> 00:36:27,240
Speaker 1: month after it lifted off on a quest to behold

677
00:36:27,560 --> 00:36:30,920
Speaker 1: the dawn of the universe. The James Webb Space Telescope

678
00:36:30,960 --> 00:36:33,759
Speaker 1: fired its rocket thrusters for nearly five minutes to go

679
00:36:33,880 --> 00:36:37,360
Speaker 1: into orbit around the Sun at its designated location and

680
00:36:37,440 --> 00:36:40,280
Speaker 1: as the Bloomberg n j I T STEM Report. Nathan

681
00:36:40,520 --> 00:36:42,520
Speaker 1: all right, Karen, thank you. We are live from the

682
00:36:42,560 --> 00:36:45,560
Speaker 1: Bloomberg Interactive Broker Studios where it's just about six fifty

683
00:36:45,600 --> 00:36:47,520
Speaker 1: two on Wall Street time now to check what's going

684
00:36:47,560 --> 00:36:48,960
Speaker 1: on in d C. You are. Some of the top

685
00:36:49,040 --> 00:36:52,560
Speaker 1: stories include US troops put on alert to boost NATO

686
00:36:52,680 --> 00:36:56,400
Speaker 1: near Ukraine, President Biden targeting consolidation as he tries to

687
00:36:56,480 --> 00:36:59,400
Speaker 1: tackle inflation, and the president caught in a hot mic

688
00:36:59,520 --> 00:37:03,000
Speaker 1: moment with the reporter's question about the politics of price pressures.

689
00:37:03,120 --> 00:37:06,240
Speaker 1: Let's bring in Bloomberg Government reporter Emily Wilkins. Very busy

690
00:37:06,360 --> 00:37:08,960
Speaker 1: times in the nation's capital, starting off with this latest

691
00:37:09,040 --> 00:37:13,279
Speaker 1: news about troops now on standby from the Biden administration.

692
00:37:13,360 --> 00:37:16,080
Speaker 1: What's the latest on the Ukraine tensions? Emily, Yeah, the

693
00:37:16,239 --> 00:37:18,520
Speaker 1: US is putting as many eight thousands, as many as

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00:37:18,640 --> 00:37:21,320
Speaker 1: eight thousand, five hundred troops on high alert UH to

695
00:37:21,400 --> 00:37:23,880
Speaker 1: go to eastern Europe. The US is saying that this

696
00:37:24,040 --> 00:37:27,200
Speaker 1: is not a deployment, that they're not being sent to Ukraine.

697
00:37:27,239 --> 00:37:30,480
Speaker 1: They're saying this is a proportional response to what Russia

698
00:37:30,600 --> 00:37:33,279
Speaker 1: already has at the border. But Nathan, let's be clear,

699
00:37:33,440 --> 00:37:37,080
Speaker 1: this is certainly more than the Biden administration was doing previously,

700
00:37:37,239 --> 00:37:40,520
Speaker 1: signally a more aggressive stance, and really in line with

701
00:37:40,600 --> 00:37:43,520
Speaker 1: what President Biden said that you know, he does expect

702
00:37:44,160 --> 00:37:47,799
Speaker 1: an attack from Russia. Really at any point. That said,

703
00:37:47,840 --> 00:37:51,520
Speaker 1: there's still diplomatic options open, uh, and that are being

704
00:37:51,600 --> 00:37:54,440
Speaker 1: explored as far as what the US can do in

705
00:37:54,680 --> 00:37:58,960
Speaker 1: terms of sanctions, in terms of diplomacy negotiations, remember of

706
00:37:59,120 --> 00:38:00,759
Speaker 1: the US and need or is supposed to have this

707
00:38:00,960 --> 00:38:04,440
Speaker 1: written response to Russia's list of demands. Um. But at

708
00:38:04,480 --> 00:38:06,880
Speaker 1: this point, I just really think it speaks to how

709
00:38:07,000 --> 00:38:09,640
Speaker 1: high tensions are right now and how much of a

710
00:38:09,719 --> 00:38:13,400
Speaker 1: focus the White House is putting on Ukraine and Russia.

711
00:38:13,760 --> 00:38:16,279
Speaker 1: And we've heard from the Kremlin this morning morning that

712
00:38:16,480 --> 00:38:19,800
Speaker 1: this US decision to put all these troops on alert

713
00:38:20,000 --> 00:38:24,600
Speaker 1: is exacerbating tensions. Where does this leave room for diplomacy

714
00:38:24,680 --> 00:38:27,279
Speaker 1: at this point? What are you hearing on Capitol Hill?

715
00:38:28,120 --> 00:38:31,520
Speaker 1: So lawmakers on Capitol Hill, they're actually all back home

716
00:38:31,640 --> 00:38:35,080
Speaker 1: right now, but there's still discussions, bipartisan discussions going on

717
00:38:35,600 --> 00:38:38,480
Speaker 1: about what if any sanctions the US can put on

718
00:38:38,719 --> 00:38:42,240
Speaker 1: Russia at this stage. Looking of course at financial sanctions

719
00:38:42,520 --> 00:38:46,520
Speaker 1: potentially cutting them off from the Swift banking program, as

720
00:38:46,560 --> 00:38:48,480
Speaker 1: well as sanctions that would make it harder for them

721
00:38:48,560 --> 00:38:50,840
Speaker 1: to get tips, harder for them to get US dollars,

722
00:38:51,440 --> 00:38:55,160
Speaker 1: potentially things in terms of energy um and so those

723
00:38:55,160 --> 00:38:57,440
Speaker 1: are all things that are being discussed right now, but

724
00:38:57,640 --> 00:39:01,600
Speaker 1: we're not expecting any movement from Congress until they get

725
00:39:01,680 --> 00:39:04,200
Speaker 1: back next week. So at this point, I think most

726
00:39:04,239 --> 00:39:06,680
Speaker 1: eyes are on the White House as far as how

727
00:39:06,800 --> 00:39:08,960
Speaker 1: they are going to be moving, as well as the

728
00:39:09,040 --> 00:39:13,400
Speaker 1: European allies. We know that French President has planning on

729
00:39:13,560 --> 00:39:16,640
Speaker 1: having a conversation with Putin later this week. Biden talked

730
00:39:16,640 --> 00:39:20,160
Speaker 1: with European leaders yesterday, So certainly lots of discussion going

731
00:39:20,239 --> 00:39:23,919
Speaker 1: around UH with the US and its allies. And even

732
00:39:24,000 --> 00:39:26,719
Speaker 1: with all this simmering Emily, we know the President is

733
00:39:26,920 --> 00:39:32,000
Speaker 1: keeping his eye on domestic concerns as well, most specifically,

734
00:39:32,400 --> 00:39:38,120
Speaker 1: most prominently inflation. Yeah, so President Biden did talk yesterday

735
00:39:38,120 --> 00:39:40,759
Speaker 1: a little bit about inflation. The route that the White

736
00:39:40,840 --> 00:39:43,640
Speaker 1: House is really taking right now is to say that

737
00:39:43,800 --> 00:39:48,280
Speaker 1: they want to cut down on major conglomerates of companies

738
00:39:48,719 --> 00:39:51,560
Speaker 1: and make the market more competitive, saying that that is

739
00:39:51,640 --> 00:39:54,399
Speaker 1: going to help reduce prices, both in the short term

740
00:39:54,440 --> 00:39:57,160
Speaker 1: as well as in the long term. And of course, Nathan,

741
00:39:57,200 --> 00:39:59,359
Speaker 1: the White House has floated a lot of theories about

742
00:39:59,400 --> 00:40:02,960
Speaker 1: wine fla is at its height, um, but it's maintained

743
00:40:03,000 --> 00:40:04,920
Speaker 1: at this point. It's still been an issue for the

744
00:40:04,960 --> 00:40:07,719
Speaker 1: White House, and it's clearly something that President Biden is

745
00:40:07,719 --> 00:40:10,719
Speaker 1: getting frustrated over. We saw him give a I don't

746
00:40:10,719 --> 00:40:13,319
Speaker 1: know if I can repeat the response for beatim on air,

747
00:40:14,120 --> 00:40:16,960
Speaker 1: but a tense response to a reporter that he then

748
00:40:17,040 --> 00:40:20,240
Speaker 1: had to apologize for after the reporter asked him about

749
00:40:20,280 --> 00:40:24,960
Speaker 1: inflation and the mid terms. Yeah, I guess that that moment,

750
00:40:25,080 --> 00:40:27,719
Speaker 1: that hot mic moment that I think has has gone

751
00:40:27,760 --> 00:40:30,560
Speaker 1: pretty viral at this point. What does it say about

752
00:40:31,200 --> 00:40:34,719
Speaker 1: the frustrations that the president is feeling, not just potentially

753
00:40:34,840 --> 00:40:37,600
Speaker 1: about the price pressures right now, but about his own

754
00:40:37,640 --> 00:40:42,400
Speaker 1: political standing. I mean, President President Biden's approval ratings are

755
00:40:42,480 --> 00:40:45,319
Speaker 1: really at the lowest from his entire presidency. We've seen

756
00:40:45,400 --> 00:40:49,000
Speaker 1: them consistently go down since August and his botched withdrawal

757
00:40:49,120 --> 00:40:52,840
Speaker 1: from Afghanistan that was followed by his signature social policy

758
00:40:52,880 --> 00:40:56,200
Speaker 1: and tax plan getting installed in the Senate Voting Rights

759
00:40:56,400 --> 00:40:58,520
Speaker 1: his party pushed on that and wasn't able to make

760
00:40:58,560 --> 00:41:01,840
Speaker 1: any progress in place, and is high oh Macron is

761
00:41:02,000 --> 00:41:03,920
Speaker 1: is dropping a little bit, but it's still very much

762
00:41:03,960 --> 00:41:06,880
Speaker 1: a problem. Uh. And so to a lot of extent,

763
00:41:07,040 --> 00:41:09,520
Speaker 1: the things that President Biden really set out to accomplish

764
00:41:09,520 --> 00:41:12,000
Speaker 1: in his first year, many of them remain to be done.

765
00:41:12,160 --> 00:41:14,640
Speaker 1: And time is really running out before the mid terms

766
00:41:14,880 --> 00:41:17,640
Speaker 1: where there is a very real chance that Republicans will

767
00:41:17,680 --> 00:41:20,600
Speaker 1: take the House, and and really deprived the Biden administration

768
00:41:20,640 --> 00:41:23,360
Speaker 1: of being able to move any sort of policy in

769
00:41:23,640 --> 00:41:27,720
Speaker 1: the last two years. Volatility on the geopolitical front along

770
00:41:27,800 --> 00:41:31,120
Speaker 1: with the markets. This morning, Bloomberg Government reporter Emily Wilkins,

771
00:41:31,239 --> 00:41:33,880
Speaker 1: as always, thanks for the update from DC. Read more

772
00:41:33,880 --> 00:41:36,400
Speaker 1: about all these stories on Bloomberg dot com or on

773
00:41:36,480 --> 00:41:39,160
Speaker 1: the Bloomberg terminal, and as a reminder, you can follow

774
00:41:39,200 --> 00:41:41,560
Speaker 1: all the latest on Bloomberg Radio in Washington as well

775
00:41:41,560 --> 00:41:45,480
Speaker 1: at Bloomberg and one oh five point seven FM HD two.

776
00:41:46,120 --> 00:41:48,320
Speaker 1: Just to reiterate some of the breaking news this morning,

777
00:41:48,360 --> 00:41:50,399
Speaker 1: Feiser says it has begun a study of a COVID

778
00:41:50,480 --> 00:41:53,560
Speaker 1: vaccine that targets OH Macron, exploring its use in previously

779
00:41:53,680 --> 00:41:56,799
Speaker 1: vaccinated younger and middle aged adults, as well as those

780
00:41:56,840 --> 00:42:00,799
Speaker 1: who haven't received another coronavirus shot. Shares a Fiser right

781
00:42:00,840 --> 00:42:03,600
Speaker 1: now down about one point one percent in the pre market.

782
00:42:03,640 --> 00:42:07,719
Speaker 1: We're also watching shares of G as well. UH. They

783
00:42:07,880 --> 00:42:11,359
Speaker 1: are moving quite a bit lower this morning, as their

784
00:42:11,640 --> 00:42:16,680
Speaker 1: overall fourth quarter revenue came in well shy of analyst estimates.

785
00:42:16,920 --> 00:42:19,320
Speaker 1: We'll be watching those shares throughout the morning here on

786
00:42:19,400 --> 00:42:22,719
Speaker 1: Bloomberg Radio and on Bloomberg Television, as well as as

787
00:42:22,800 --> 00:42:25,319
Speaker 1: far as the border market goes. SMP futures are down

788
00:42:25,480 --> 00:42:28,319
Speaker 1: fifty four points, Style futures down two and at thirty four.

789
00:42:28,760 --> 00:42:32,000
Speaker 1: Nasdaq futures are lower by two hundred fifty one points.

790
00:42:32,080 --> 00:42:35,080
Speaker 1: The Tangure Treasury is down to thirty seconds, the yield

791
00:42:35,120 --> 00:42:39,040
Speaker 1: now one point seven seven percent. Bloomberg Surveillance up next

792
00:42:39,120 --> 00:42:42,200
Speaker 1: with Tom Keene, Jonathan Farrow, and Lisa Abramo. It's for

793
00:42:42,360 --> 00:42:46,680
Speaker 1: Karen Moscow. I'm Nathan Hagar. This is Bloomberg