WEBVTT - Bloomberg Daybreak: January 25, 2022 - Hour 2 (Radio) 0:00:01.120 --> 0:00:04.519 Live from the Bloomberg Interactive Burger Studios. This is is Bloomberg 0:00:04.559 --> 0:00:08.680 day Break for Tuesday, January two. Coming up this hour. 0:00:08.960 --> 0:00:12.600 Stocks are under pressure again after yesterday's wild comeback on 0:00:12.640 --> 0:00:15.360 Wall Street, fed policy and focus, as the Central Bank 0:00:15.360 --> 0:00:18.600 begins at two day meeting. Microsoft kicks off tech earnings 0:00:18.600 --> 0:00:21.079 on the heels of solid results from IBM, and the 0:00:21.160 --> 0:00:24.320 US puts thousands of troops on alert in Eastern Europe. 0:00:24.440 --> 0:00:27.680 New York Mayor Adams is reviving the controversial anti crime 0:00:27.760 --> 0:00:30.800 unit amid gun violence. Plus former New York Assembly Speaker 0:00:30.880 --> 0:00:34.360 Sheldon Silver has died. I'm Michael Blomber. More ahead, I'm 0:00:34.400 --> 0:00:36.640 John Stas Shower's fourth the nixt lost by two, the 0:00:36.800 --> 0:00:39.559 Rangers wanting to shootout St. John's been seating Hall. And 0:00:39.600 --> 0:00:44.920 it's the quarterfinals of the Australian Open. That's all straight 0:00:44.960 --> 0:00:49.160 ahead on Bloomberg day Break on Bloomberg eleven Trio, New York, 0:00:49.320 --> 0:00:54.040 Bloomberg one, Washington, d C, Bloomberg one, O six one, Boston, 0:00:54.200 --> 0:00:58.680 Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:59.080 --> 0:01:01.960 and around the world from Bloomberg Radio dot Com and 0:01:02.160 --> 0:01:09.039 via the Bloomberg Business or good morning. I'm Nathan Hagar 0:01:09.400 --> 0:01:11.760 and I'm Karen Moscow, and US future is pointing to 0:01:11.800 --> 0:01:14.240 more volatility this morning. We're coming up to six o 0:01:14.360 --> 0:01:16.120 one on Wall Street, and we check the markets every 0:01:16.160 --> 0:01:18.840 fifteen minutes throughout the trading day. On bloomberg S and 0:01:18.880 --> 0:01:21.760 P Future is down forty seven points down Future is 0:01:21.800 --> 0:01:24.440 down two hundred two and NASDAG futures down two hundred 0:01:24.480 --> 0:01:27.600 twenty seven. The decks in Germany's up half per cent, 0:01:27.680 --> 0:01:30.000 the ten year treasury down three thirties seconds. He had 0:01:30.000 --> 0:01:32.600 one point seven eight percent, and they yield on the 0:01:32.720 --> 0:01:36.160 two year one point one percent. Nine meg Screwed oil 0:01:36.319 --> 0:01:38.480 is up eight ten percent or sixty six cents at 0:01:38.480 --> 0:01:41.360 eighty three dollars ninety seven cents a barrel. Comic School 0:01:41.360 --> 0:01:43.560 down two tens percent or three dollars ninety cents at 0:01:43.600 --> 0:01:46.560 eighteen forty thirty. Announced the euro one point one to 0:01:46.720 --> 0:01:49.639 eight one against the dollar and bitcoin at thirty six thousand, 0:01:49.720 --> 0:01:52.960 four hundred dollars. Nathan Karen, US stocks are under more 0:01:52.960 --> 0:01:56.880 pressure this morning after yesterday's wild turnaround on Wall Street. 0:01:56.960 --> 0:01:59.720 Let's get the very latest live with Bloomberg's John Tucker. 0:02:00.320 --> 0:02:04.680 Nathan Global anquities wiped out almost three trillion dollars yesterday. 0:02:05.080 --> 0:02:08.320 That's before a dramatic reversal, So the US benchmarks ending 0:02:08.400 --> 0:02:11.320 in the green. Jeremy Seguel and at the Wharton School 0:02:11.320 --> 0:02:14.320 says these moves shouldn't come as a surprise, you know, 0:02:14.360 --> 0:02:16.799 when the market has gone up as much as it 0:02:16.880 --> 0:02:20.480 has since March of two thousands. This is still not 0:02:20.880 --> 0:02:24.280 a big dip. But I don't think the pain is 0:02:24.360 --> 0:02:27.440 over yet. Jeremy Seguel says that says the nasdack will 0:02:27.440 --> 0:02:31.480 fall from its November high. Volatility is the name of 0:02:31.480 --> 0:02:34.320 the game. The vix is up for a sixth session today. 0:02:34.639 --> 0:02:37.880 It briefly jumped to the highest level since October twenty 0:02:37.960 --> 0:02:41.720 before receding. The question facing advantags now is whether any 0:02:41.760 --> 0:02:45.720 slide is a buying opportunity or pretends wider stress across 0:02:45.800 --> 0:02:49.040 more asset classes. Live in New York, I'm John Tucker, 0:02:49.240 --> 0:02:52.440 Bloomberg Daybreak, Right, John, thank you, My US futures aren't 0:02:52.440 --> 0:02:55.160 the only thing falling today. Stocks in Asia saw some 0:02:55.320 --> 0:02:58.080 heavy selling overnight, and we get the recount from Bloomberg's 0:02:58.120 --> 0:03:01.440 Juliet Sally in Singapore. Good morning, Juliette, Good morning, Karen. 0:03:01.480 --> 0:03:03.799 The m c I Asia Pacific Index fell the most 0:03:03.800 --> 0:03:07.240 since December to reach its lowest level since November twenty. 0:03:08.160 --> 0:03:13.360 Japan's Topics index closed down one into correction. Territory South 0:03:13.440 --> 0:03:15.960 Koreas Cosby is nearing a bear market. He dropped more 0:03:16.000 --> 0:03:18.880 than two and a half percent. In Soul. Australian sulks 0:03:18.919 --> 0:03:22.640 fell to Meylo's and bondy Old searched after stronger than 0:03:22.680 --> 0:03:27.160 expected inflation data boosted bets on rate increases in Singapore. 0:03:27.240 --> 0:03:30.840 Juliette Sally Bloomberg Daybreak Juliet Thanks. The recent sell off, 0:03:30.880 --> 0:03:33.640 along with last week slump, is being pinned on concerns 0:03:33.680 --> 0:03:36.800 over tighter monetary policy. We get more clues on that 0:03:36.840 --> 0:03:39.000 this week as the Fed kicks off its two day 0:03:39.040 --> 0:03:42.480 policy meeting. Bridgewater Associates founder Ray dal Leo says the 0:03:42.520 --> 0:03:45.760 Central Bank is still too slow. The Federal Reserve has 0:03:45.800 --> 0:03:50.280 been behind the curve slower to type monetary policy and 0:03:50.360 --> 0:03:53.640 as a result, we're now starting to see the rise 0:03:53.840 --> 0:03:56.520 in interest rates to be able to deal with that. 0:03:57.040 --> 0:04:00.840 As that happens, all assets compete with each other. That 0:04:00.920 --> 0:04:03.720 means all the other assets have to adjust. We're in 0:04:03.760 --> 0:04:07.480 a process of making that kind of adjustment. Bridgewater Associates 0:04:07.480 --> 0:04:09.800 founder Ray down Leo made the comments in an interview 0:04:09.800 --> 0:04:12.840 with David Rubinstein on peer to peer conversations. Catch the 0:04:12.840 --> 0:04:16.080 show coming up next week on Bloomberg Television. Well, Nathan, 0:04:16.080 --> 0:04:18.479 outside of the fed traders are watching for tech earnings 0:04:18.560 --> 0:04:21.080 this week, and today we get results from Microsoft here 0:04:21.080 --> 0:04:24.039 with more is Bloomberg's Tom Busby. The big focus for 0:04:24.120 --> 0:04:28.680 investors the software giants Azure cloud computing unit and web 0:04:28.680 --> 0:04:32.160 based versions of its office software. Also of note holiday 0:04:32.160 --> 0:04:35.480 sales of its Xbox gaming console and video games. Just 0:04:35.640 --> 0:04:39.200 last week, Microsoft announced its biggest acquisition ever, a nearly 0:04:39.279 --> 0:04:43.640 sixty nine billion dollar deal to acquire Activision Blizzard. Bloomberg 0:04:43.680 --> 0:04:46.920 forecasting revenue topping fifty billion dollars for the first time 0:04:46.960 --> 0:04:49.680 ever and adjusted earnings of two dollars thirty two cents 0:04:49.680 --> 0:04:53.440 a share for the second quarter. Tom Busby Bloomberg Daybreak 0:04:53.600 --> 0:04:56.239 and tom results are already out from IBM. That company 0:04:56.279 --> 0:04:59.520 reported revenue that beat estimates, has shares up nearly three 0:04:59.560 --> 0:05:02.600 percent in the free market. Bloomberg's Charlie Pellett has more. 0:05:02.760 --> 0:05:06.440 IBM got a boost from strong demand in its software unit, 0:05:06.480 --> 0:05:11.039 which includes IBMS hybrid cloud offering. IBM software unit, the 0:05:11.040 --> 0:05:15.320 biggest business group, grew eight point two percent. The consulting unit, 0:05:15.440 --> 0:05:19.760 formerly known as Global Business Services, reported a thirteen percent 0:05:19.880 --> 0:05:23.000 increase compared with the year prior. The results were the 0:05:23.040 --> 0:05:26.040 first since IBM completed the spinoff of a large portion 0:05:26.120 --> 0:05:30.480 of its legacy infrastructure services unit in November into a 0:05:30.480 --> 0:05:35.160 new company in New York. Charlie Pellett Bloomberg Daybreak. All right, Charlie, 0:05:35.160 --> 0:05:38.479 thank you. Bitcoin also in focus after yesterday's wild swings. 0:05:38.480 --> 0:05:40.800 Have we get the latest Life from Bloomberg's ni A Young, 0:05:40.800 --> 0:05:43.880 Good morning Radia, Good morning Karen. Yesterday headlines were all 0:05:43.880 --> 0:05:47.760 about the crypto crash, but bitcoin snapped a five day slide, 0:05:47.880 --> 0:05:50.960 and this morning the world's largest crypto is trading lower 0:05:51.120 --> 0:05:55.720 once again. Analyst from Bloomberg's Life blog say, don't read 0:05:55.760 --> 0:05:59.359 too much into today's modest decline. While Bitcoin appears to 0:05:59.360 --> 0:06:02.159 be trading in correlation with stocks, and let's note that 0:06:02.240 --> 0:06:05.160 turns in the digital asset came before those in stocks, 0:06:05.200 --> 0:06:08.160 both on the way down and back up. Right now, 0:06:08.160 --> 0:06:11.760 Bitcoin is trading around thirty seven thousand. Live in New York. 0:06:11.880 --> 0:06:15.040 I'm Renita Young, Bloomberg day Break, Nita, thanks, Let's make 0:06:15.080 --> 0:06:17.560 a hard turn to geo politics now, where Russia and 0:06:17.680 --> 0:06:20.520 Ukraine remained front and center. The US is putting eight 0:06:21.240 --> 0:06:24.440 troops on heidened alert. Has tensions swirl over a possible 0:06:24.520 --> 0:06:28.279 Russian invasion, Bloomberg said, Baxter has the very latest Pentagon 0:06:28.320 --> 0:06:31.360 spokes When John Kirby says on both sides of the Atlantic, 0:06:31.480 --> 0:06:34.000 the United States has taken steps to heighten the readiness 0:06:34.640 --> 0:06:37.320 of its forces at home and abroad, so they are 0:06:37.360 --> 0:06:40.360 prepared to respond to a range of contingencies, and White 0:06:40.360 --> 0:06:43.680 House spokes when Jansaki says it could come at any time. 0:06:43.760 --> 0:06:47.479 It never ruled out the option of providing assistant additional 0:06:47.520 --> 0:06:50.560 assistance in advance of an invasion. President met with European 0:06:50.640 --> 0:06:53.800 leaders and says they discuss severe sanctions as well as 0:06:54.040 --> 0:06:57.760 securing the eastern flank of NATO in San Francisco. I'm 0:06:57.800 --> 0:07:00.320 at Baxter Bloomberg day Break, and thank you. Arning to 0:07:00.360 --> 0:07:02.560 the pandemic. Now we have encouraging news in the battle 0:07:02.600 --> 0:07:05.440 against the oom Crown Variandviser and by On Tech say 0:07:05.440 --> 0:07:07.880 a pair of studies confirmed three doses of their COVID 0:07:08.000 --> 0:07:11.920 nineteen vaccine produced antibodies that can neutralize the omicron variant, 0:07:12.120 --> 0:07:14.880 as according to lab studies published in the journal Science. 0:07:15.160 --> 0:07:18.160 Straight Ahead your latest local headlines, plus a check of sports. 0:07:18.160 --> 0:07:24.720 This is Bloomberg. Thanks En six o seven on Wall Street, 0:07:24.760 --> 0:07:27.040 Clowns and thirty seven degrees in Central Park. We have 0:07:27.040 --> 0:07:29.480 an accident on eastbound Route two eight seven and exit 0:07:29.520 --> 0:07:32.240 ten and Ryebruck to tails coming up in traffic First 0:07:32.320 --> 0:07:34.240 Michael Barr with more on what's going on in New 0:07:34.320 --> 0:07:36.760 York and around the world. Good morning, Michael, Good morning Nathan. 0:07:36.760 --> 0:07:39.360 New York City Mayor Eric Adams vows to take a 0:07:39.440 --> 0:07:42.240 media of action to end gun violence. During his first 0:07:42.280 --> 0:07:44.400 few weeks in office, there have been a string of 0:07:44.440 --> 0:07:48.480 tragic and high profile crimes. We need help, we need resources, 0:07:48.760 --> 0:07:51.280 we need back up. Adams called for the state to 0:07:51.360 --> 0:07:55.200 enact more restrictive bail provisions and announced plans to revive 0:07:55.240 --> 0:07:59.280 the controversial anti crime unit. They were the Playing Close units, 0:07:59.320 --> 0:08:04.920 disbanded under former Mayor de Blasio after misconduct complaints. Malde. However, 0:08:04.920 --> 0:08:07.840 Adams says the units will be monitored. But my fellow 0:08:07.840 --> 0:08:09.800 New Yorker is we are going to do a lot 0:08:09.880 --> 0:08:12.960 more than pray. We're going to turn out pain. It's 0:08:12.960 --> 0:08:16.880 a propose. We're going to unite and take action. Mayor 0:08:16.920 --> 0:08:19.800 Adams says his goal is to bring thousands of guns 0:08:19.840 --> 0:08:22.680 off the streets. Meanwhile, a vigil was held outside of 0:08:22.720 --> 0:08:25.160 Harlem Police Precinct last night in honor of the two 0:08:25.160 --> 0:08:29.280 officers shot Friday night. Rookie policeman Jason Rivera was killed. 0:08:29.320 --> 0:08:33.160 His partner, Wilbert Mora, is fighting for his life. Mourners 0:08:33.160 --> 0:08:36.480 held prayers outside the thirty second precinct. A New York 0:08:36.520 --> 0:08:39.600 State judge has rule that the state's mask mandate can't 0:08:39.600 --> 0:08:43.400 be enforced. The mandate was reinstituted by Governor Hocul until 0:08:43.480 --> 0:08:46.520 February one over concerns about him when you surge of 0:08:46.520 --> 0:08:50.480 coronavirus cases. Hocal says the administration disagrees with ruling and 0:08:50.760 --> 0:08:55.319 is pursuing every option to reverse it. Nassau County Executive 0:08:55.360 --> 0:08:59.760 Bruce Blakeman signed an executive order challenging the state mask mandate. 0:08:59.800 --> 0:09:02.680 After you're taking office this month. The government does not 0:09:02.800 --> 0:09:06.320 have power unilaterally and the Health Commission does not have 0:09:06.400 --> 0:09:11.880 power laterally to make rules that materially affect people's lives 0:09:12.320 --> 0:09:15.079 without respect to the cloud old damage has done, especially 0:09:15.160 --> 0:09:18.800 to our to our school children's. Nassau County Executive Blakeman 0:09:18.840 --> 0:09:21.480 called it a great victory. Meanwhile, the state Department of 0:09:21.559 --> 0:09:24.959 Education says it will still require masks for students and 0:09:25.040 --> 0:09:28.440 schools while the decision is appealed. Former New York Assembly 0:09:28.440 --> 0:09:32.000 Speaker Sheldon Silver, who was convicted on corruption charges, has 0:09:32.080 --> 0:09:34.920 died in federal custody. He was seventy seven. The word 0:09:34.960 --> 0:09:37.680 yet on the official cause of death. New York Mayor 0:09:37.720 --> 0:09:41.199 Adams choice to have his first paycheck in bitcoin. It's 0:09:41.240 --> 0:09:43.760 not looking great at least for now. He likely lost 0:09:43.800 --> 0:09:47.720 about a thousand dollars as the cryptocurrency market fell. Adam 0:09:47.800 --> 0:09:51.280 says though he is a long term investor. Global News 0:09:51.280 --> 0:09:54.520 twenty four hours a day on air and on Bloomberg Quicktake, 0:09:54.679 --> 0:09:57.440 powered by more than twenty seven hundred journalists and analysts 0:09:57.440 --> 0:10:00.720 more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan, 0:10:00.840 --> 0:10:07.760 Thank you, Michael. Coming up to six ten on Wall Street. 0:10:07.760 --> 0:10:09.920 Time for the Bloomberg Sports I Think with Johnston show. 0:10:09.960 --> 0:10:12.080 All right, Nathan's tough week for the next three games 0:10:12.080 --> 0:10:14.480 and five nights against three of the top five teams. 0:10:14.480 --> 0:10:17.439 In the East first stop much improved Cleveland fifty to 0:10:17.559 --> 0:10:20.319 fifty at halftime. Kevin Love got hot in the third quarter. 0:10:20.640 --> 0:10:23.520 He made six three pointers. Nixon the fourth wiped out 0:10:23.520 --> 0:10:26.280 a fifteen point Deva said, but R J. Barrett missed 0:10:26.280 --> 0:10:28.120 the three that would have put them ahead. The Calves 0:10:28.160 --> 0:10:32.400 won three. Love scored twenty points. Barrett at twenty four. 0:10:32.480 --> 0:10:35.040 Knicks are in Miami tomorrow and then go to Milwaukee 0:10:35.400 --> 0:10:37.640 Rangers Kings at the Garden. The game went to a 0:10:37.679 --> 0:10:40.520 shootout twice. A Ranger had to score to keep it going. 0:10:40.559 --> 0:10:43.800 Both our Tommi Panarin and electis La Franae did then 0:10:44.080 --> 0:10:45.920 did that, and then in the sixth round it was 0:10:45.960 --> 0:10:53.359 time for the Rangers. Adam Fox, Fuck de Shots Stars, 0:10:54.640 --> 0:11:03.400 Great Church, twin out of fuck Fu fuck Rachard celebrate 0:11:03.880 --> 0:11:08.199 half the tals for Fox the all They're half goalsp 0:11:08.360 --> 0:11:10.319 and the Call. Rangers won three to their nine and three. 0:11:10.360 --> 0:11:12.760 Since New Year's Eve, St. John's and Seaton Hall made 0:11:12.800 --> 0:11:15.040 up a game postponed by COVID, so the two games 0:11:15.120 --> 0:11:18.600 between the three between the teams in three days. Pirates 0:11:18.679 --> 0:11:21.520 one Saturday at the Garden. Red Storm wanted Walsh Jim 0:11:21.600 --> 0:11:25.600 going away eighty four to sixty three, first on campus 0:11:25.679 --> 0:11:28.040 game for seton hallss N eighty nine, a couple of 0:11:28.160 --> 0:11:30.920 lefties played along five center at the Australian Open. Raphael 0:11:30.960 --> 0:11:33.079 that that won the first two sets, Dennis Chapa all 0:11:33.120 --> 0:11:35.440 of the next two and Ndal pulled it out in five. 0:11:35.840 --> 0:11:39.439 Also on of the semifinals goes American Madison Keys women's 0:11:39.480 --> 0:11:43.199 top seed Ash Barty crushed American Jess Pagoula six two 0:11:43.400 --> 0:11:46.960 six Love John stash Atwards, Bloomberg Sports Nathan Okay, John, 0:11:47.000 --> 0:11:49.679 thank you. SMP futures down down thirty nine point, staff 0:11:49.679 --> 0:11:52.560 futures down a hundred thirty seven nasdack futures lower by 0:11:52.640 --> 0:11:55.040 two hundred one points. That is a decline of one 0:11:55.120 --> 0:11:58.480 point four percent ten Your treasury down four thirty seconds. 0:11:58.520 --> 0:12:03.079 The yield one point seven eight percent. This is Bloomberg 0:12:07.280 --> 0:12:09.440 coming up to six twelve on Wall Street. Bloomberg day 0:12:09.440 --> 0:12:11.440 Break is brought to you by Audie. Don't let someone 0:12:11.480 --> 0:12:13.920 else drive off in the outie model you've always wanted. 0:12:14.400 --> 0:12:16.360 Visit a tri state autie dealer to get behind the 0:12:16.400 --> 0:12:24.480 wheel of yours. Today, markets headlines and breaking news twenty 0:12:24.520 --> 0:12:27.320 four hours a day at Bloomberg dot Com, the Bloomberg 0:12:27.400 --> 0:12:30.920 Business at and at Bloomberg Quick Tape, He's a Bloomberg 0:12:31.040 --> 0:12:40.000 business lash and I'm Karen Moscow u s Dock Index 0:12:40.120 --> 0:12:43.800 futures are following this morning as investors wa concerns about 0:12:43.840 --> 0:12:47.600 tightening monetary policy and geo political tension against positive earnings 0:12:47.679 --> 0:12:50.439 reports to check the markets every fifteen minutes throughout the 0:12:50.480 --> 0:12:53.160 trading day. On Bloomberg guess and P futures down thirty 0:12:53.200 --> 0:12:55.439 eight points down, Future is down a hundred forty three 0:12:55.520 --> 0:12:58.760 and as day futures down one seven The decks in 0:12:58.800 --> 0:13:01.000 Germany's up eight tenths of per cent, the ten year 0:13:01.040 --> 0:13:03.400 treasury down five thirty seconds. He had one point seven 0:13:03.520 --> 0:13:06.720 nine percent yield on the two year one point two percent. 0:13:07.160 --> 0:13:09.800 Nimex screwed oils up eight ten percent or sixty seven 0:13:09.880 --> 0:13:12.040 cents at eighty three dollars ninety nine cents. A barrel 0:13:12.320 --> 0:13:14.720 comic school down a quarter percent or four dollars eighty 0:13:14.800 --> 0:13:17.679 cents at eighteen thirty nine forty announced. The euro one 0:13:17.720 --> 0:13:20.040 point one two eight two against the dollar, British bound 0:13:20.080 --> 0:13:22.160 one point three four seven three, the ends at one 0:13:22.200 --> 0:13:25.560 four teen point one three and Bitcoin this morning, moving 0:13:25.640 --> 0:13:28.559 lower at thirty six thousand, five hundred dollars. Also watching 0:13:28.600 --> 0:13:30.760 in Video today, down about two and a half percent 0:13:30.880 --> 0:13:34.240 this morning. Sources telling Bloomberg and Video quietly preparing to 0:13:34.320 --> 0:13:37.280 abandon his purchase of arm from soft Bank Group after 0:13:37.400 --> 0:13:39.599 making little to no progress in winning approval for the 0:13:39.720 --> 0:13:42.760 forty billion dollar chip deal. Has a Bloomberg Business Flash. 0:13:42.840 --> 0:13:44.880 Now here's Michael Barr with more on what's going on 0:13:44.960 --> 0:13:47.839 around the world. Michael Karen, thank you very much. The 0:13:47.880 --> 0:13:51.560 Pentagon says Defense Secretary Lloyd Austin has ordered about eighty 0:13:51.600 --> 0:13:55.720 five hundred US troops on heightened alert, preparing for possible 0:13:55.760 --> 0:13:59.439 deployment to Europe if needed, to reassure NATO allies and 0:13:59.480 --> 0:14:02.160 the face of Russian aggression on the border of Ukraine. 0:14:02.520 --> 0:14:05.439 Russia says though it has no plans to invade Ukraine. 0:14:06.120 --> 0:14:09.240 North Korea appears to have fire two cruise missiles this 0:14:09.360 --> 0:14:12.280 morning towards waters off its east coast, According to a 0:14:12.320 --> 0:14:15.920 South Korean military official. The North has ramped up a 0:14:15.960 --> 0:14:19.560 barrage of test this month that have rattled regional security. 0:14:19.920 --> 0:14:22.120 In the NBA, the nixt lost in the NHL, the 0:14:22.200 --> 0:14:25.520 Rangers won, the Bruins and capitals lost Global news twenty 0:14:25.560 --> 0:14:28.600 four hours a day on air and on Bloomberg Quick Take, 0:14:28.920 --> 0:14:31.800 powered by more than twenty seven under journalists and analysts 0:14:31.880 --> 0:14:34.880 more than a hundred twenty countries. Michael Barr, This is Bloomberg. 0:14:35.000 --> 0:14:37.480 Nathan all right, Michael, Thanks six nineteen on Wall Street 0:14:37.520 --> 0:14:41.680 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. 0:14:41.760 --> 0:14:43.560 We get right back to the market action now with 0:14:43.720 --> 0:14:47.680 Daniel Morris, chief market strategist at BNP Party bo Asset Management, 0:14:47.960 --> 0:14:50.840 as we watch futures continue to fall this morning after 0:14:50.920 --> 0:14:54.720 the wild turnaround yesterday, and a lot of analysts were 0:14:54.760 --> 0:14:58.280 looking for choppy waters to start this year, but were 0:14:58.320 --> 0:15:02.440 we expecting anything like this? Dan? I think there are 0:15:02.480 --> 0:15:05.400 two things that explain why it's been so volatila at 0:15:05.400 --> 0:15:07.200 the beginning of the year. So number one, I mean, 0:15:07.240 --> 0:15:10.120 we didn't anticipate over the course of the year an 0:15:10.160 --> 0:15:12.480 increase in real interest rates and that would put pressure 0:15:12.640 --> 0:15:16.120 on valuations, particularly for gross stalks. And the question was 0:15:16.240 --> 0:15:18.560 really just when that would happen and how quickly. So 0:15:18.840 --> 0:15:21.040 we have the answer to that question. It's now, and 0:15:21.120 --> 0:15:24.560 it's very quickly. I think what's exacerbated that though, has 0:15:24.640 --> 0:15:27.720 been the disappointment on the earning side, and not per 0:15:27.800 --> 0:15:30.480 se and the results themselves, but on the guidance. I mean, 0:15:30.560 --> 0:15:35.000 typically you have about twenty percent of companies when they 0:15:35.080 --> 0:15:38.280 report getting positive guidance. So again, at the best of times, 0:15:38.320 --> 0:15:41.920 it's not necessarily high number. But last year we know 0:15:42.040 --> 0:15:45.280 we had earning surprises, significant earning enterprises through the whole season, 0:15:45.400 --> 0:15:48.720 and positive guidance was around fifty or sometimes even six. 0:15:50.240 --> 0:15:53.080 Over the last couple of weeks, it's been five percent 0:15:53.560 --> 0:15:55.400 out of this earning season, so I think that's been 0:15:55.440 --> 0:15:58.040 a kind of other unpleasant surprise in all of this, 0:15:58.160 --> 0:16:00.200 I think has made this downturn a lot more here. 0:16:00.960 --> 0:16:03.960 Do you expect this downturn to go further? And if so, 0:16:04.120 --> 0:16:08.240 how much? Well, you know, that's always the key question. 0:16:08.280 --> 0:16:09.760 I think the two things that make us still a 0:16:09.840 --> 0:16:12.000 little bit cautious are number one, if you look at 0:16:12.120 --> 0:16:15.280 valuations and again for gross talks in particular, they're certainly 0:16:15.400 --> 0:16:18.120 lower than they were, but nowhere where you'd call cheap, 0:16:18.160 --> 0:16:21.440 and nowhere yet the levels you are at prior to 0:16:21.920 --> 0:16:26.160 the latest QUEI round that followed the pandemic. And secondarily, 0:16:26.240 --> 0:16:29.600 without kind of better earning support, you do think that 0:16:29.720 --> 0:16:31.880 there's still some nervousness. The other thing to keep in 0:16:31.960 --> 0:16:34.080 mind is, you know you're getting more and more discussion 0:16:34.120 --> 0:16:36.800 about even more interest rate hikes in next year. So 0:16:36.840 --> 0:16:39.520 I've said a three four up to seven, So instill 0:16:39.560 --> 0:16:41.840 the market until the market has settled on the number. 0:16:41.880 --> 0:16:44.160 There the risk or the concern is going to be 0:16:44.240 --> 0:16:46.360 that it's howire interest rates and again further pressure on 0:16:46.440 --> 0:16:50.440 valuations and putting further pressure, I would imagine on the Fed. 0:16:50.640 --> 0:16:52.760 Is that what you're thinking here is we're waiting for 0:16:53.240 --> 0:16:58.560 Chairman Powell to come out with the policy decision tomorrow. Well, 0:16:58.680 --> 0:17:00.640 this really is perhaps a lit as test. There was 0:17:00.640 --> 0:17:03.000 always a question, you know whenever you know, we talked 0:17:03.000 --> 0:17:05.520 about the central bank put screens, found put and so on, 0:17:05.960 --> 0:17:08.160 and if they see a significant decline in the market, 0:17:08.240 --> 0:17:11.479 you know, would they later in the year have paused, uh, 0:17:11.560 --> 0:17:14.040 the interest rate hikes or the balancie runoff? Well that 0:17:14.200 --> 0:17:16.600 that question is going to post itself. Now, how you 0:17:16.640 --> 0:17:19.600 know much do they say particularly run balance you runoff? 0:17:19.600 --> 0:17:22.520 Because that's been the big change over the last several 0:17:22.560 --> 0:17:24.760 weeks that we had the last Fed minutes. You know, 0:17:24.840 --> 0:17:26.600 how quickly they're going to do that, and you know, 0:17:26.680 --> 0:17:28.600 we won't know what they would have said otherwise, but 0:17:28.760 --> 0:17:30.399 you you wonder if they're going to be quite as 0:17:30.440 --> 0:17:33.359 aggressive now given how the markets reacted. What's your calm 0:17:33.520 --> 0:17:37.040 on what we can get from the Fed tomorrow? Um? 0:17:37.240 --> 0:17:39.920 But I think we see the market pricing in uh, 0:17:40.119 --> 0:17:42.159 you know, already five hikes and that could go a 0:17:42.240 --> 0:17:45.480 bit higher. We anticipated that they're going to attempt to 0:17:46.080 --> 0:17:49.000 one be clear that they are going to address inflation, 0:17:49.080 --> 0:17:51.359 but at the same time, perhaps be a little bit 0:17:51.400 --> 0:17:54.200 more cautious about how quickly they're going to do that, 0:17:54.880 --> 0:17:56.720 to let the markets at least a jest the news 0:17:56.760 --> 0:17:58.560 that they've had to deal with over the last few weeks. 0:17:59.080 --> 0:18:01.520 Just to take a little outer view here, Daniel, what 0:18:01.640 --> 0:18:05.560 are the wild swings like we saw yesterday tell you 0:18:05.840 --> 0:18:11.520 about the health of this market right now? Well, certainly 0:18:11.560 --> 0:18:15.080 you would like to see a bit more breadth in 0:18:15.280 --> 0:18:17.840 the in the market itself. I think what we're always 0:18:17.880 --> 0:18:20.440 wondering about is, you know, what point will go to 0:18:20.520 --> 0:18:23.520 broad investors, retail investors, in tutional investors, so thinks have 0:18:23.600 --> 0:18:26.639 fallen enough to to come back into the market and 0:18:26.760 --> 0:18:29.080 buy the dep in a classic sense. Uh, you know, 0:18:29.119 --> 0:18:31.720 whether we necessarily saw a sign of that yesterday, I'd 0:18:31.720 --> 0:18:33.840 think probably not. Like I said, we really haven't seen 0:18:34.040 --> 0:18:36.800 valuations reset to a level where stocks are cheap in 0:18:36.840 --> 0:18:39.920 absolute terms. I think what we're seeing is, you know, 0:18:40.000 --> 0:18:43.280 when you're transitioning from an environment really over the last 0:18:43.320 --> 0:18:46.440 fifteen years, with the exception of the hikes under yelling 0:18:46.480 --> 0:18:48.879 but still broadly falling interest rate environment to what we 0:18:48.960 --> 0:18:52.000 appreciate now is secularly different. Uh. That's just going to 0:18:52.080 --> 0:18:53.840 take some time for the markets to adjust to that, 0:18:53.960 --> 0:18:56.720 and that implies a lot of volatility. All right, Daniel, 0:18:56.800 --> 0:18:59.119 thank you as always good to get your insights this 0:18:59.280 --> 0:19:02.480 morning after uh, pretty wild start to the week. Daniel 0:19:02.520 --> 0:19:06.760 Morris's chief market strategist at BNP Party BA Asset Management, 0:19:06.920 --> 0:19:09.080 want to pass along a red headline just across the 0:19:09.119 --> 0:19:12.840 Bloomberg terminal. GE has reported fourth quarter revenue that missed 0:19:12.960 --> 0:19:15.840 the average analyst estimate. Came in at twenty point three 0:19:15.920 --> 0:19:20.600 billion dollars. The average estimate was twenty one point three 0:19:20.720 --> 0:19:24.600 so billion dollar miss there on overall revenue in the 0:19:24.640 --> 0:19:27.879 fourth quarter, and right now GE shares are tumbling on 0:19:28.000 --> 0:19:30.960 the earnings right now, down seven and a half percent 0:19:31.400 --> 0:19:34.159 in the pre market. As for the broader market, we 0:19:34.359 --> 0:19:37.800 see futures continuing to fall, with S ANDP futures right 0:19:37.840 --> 0:19:40.720 now down forty two points down, futures down a hundred 0:19:40.800 --> 0:19:44.359 seventy NASTAC futures are lower by two hundred eight points, 0:19:44.400 --> 0:19:46.320 a drop of one point four percent there, and the 0:19:46.400 --> 0:19:49.520 tenure treasury is down five thirty seconds, the yield one 0:19:49.640 --> 0:19:52.480 point seven eight percent. We'll have much more on the 0:19:52.560 --> 0:19:55.480 g E earnings, plus the latest on the markets wild ride, 0:19:55.560 --> 0:19:58.800 and the latest on the standoff over Ukraine. Five things 0:19:58.840 --> 0:20:01.520 you need to know to start day coming up right 0:20:01.640 --> 0:20:09.200 here on Bloomberg Daybreak Bloomberg eleven three oh Weather mostly 0:20:09.240 --> 0:20:11.640 cloudy to start partial clearing later today with a high 0:20:11.640 --> 0:20:14.720 in your forty, low twenties. That's all we'll get tomorrow. 0:20:15.000 --> 0:20:18.200 By Thursday will be partly sunny, upper twenties. Currently thirty 0:20:18.240 --> 0:20:25.560 seven in Central Park bridcasting live from the Bloomberg Interactive 0:20:25.640 --> 0:20:29.480 Broker Studio in New York. Bloomberg E Living Freedom to Washington, 0:20:29.560 --> 0:20:33.400 d C. Bloomberg On to Boston, Bloomberg one O six 0:20:33.480 --> 0:20:36.639 one to San Francisco, Bloomberg Non sixty to the Country 0:20:36.800 --> 0:20:39.920 Sirius XM Chado one nine and around the globe, the 0:20:40.000 --> 0:20:43.879 Bloomberg Business Act and Bloomberg Radio dot com. This is 0:20:43.880 --> 0:20:52.320 Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm 0:20:52.400 --> 0:20:55.040 Nathan Hagar and I'm pared Moscow. We're just about three 0:20:55.080 --> 0:20:57.320 hours away from the open of US trading. Time for 0:20:57.400 --> 0:20:59.359 the five things you need to notice start your day. 0:20:59.440 --> 0:21:02.200 Bront to you by Interactive Brokers. Trade crypto for less 0:21:02.240 --> 0:21:04.639 coin with commissions as twelve to eighteen basis points and 0:21:04.720 --> 0:21:07.320 no hidden spreads or markups. Learn more at i dk 0:21:07.520 --> 0:21:10.800 R dot com slash crypto. First, we're seeing more pressure 0:21:10.840 --> 0:21:13.960 on US stocks this morning after yesterday's wild turnaround On 0:21:14.080 --> 0:21:17.320 Wall Street. SNP futures are down forty four points or 0:21:17.400 --> 0:21:19.520 one percent, and we get the details on these moves 0:21:19.600 --> 0:21:22.280 live with the Bloomberg's John Tucker John Karen. The S 0:21:22.359 --> 0:21:25.280 and P five hundred felt about four percent yesterday before 0:21:25.480 --> 0:21:29.520 ending slightly higher. Volatility is climbing. The VIX just closed 0:21:29.520 --> 0:21:32.760 shy of thirty, compared to a lifetime average just shy 0:21:32.800 --> 0:21:37.320 of twenty, according to calculations by Bespoke Investment Group. Monday 0:21:37.520 --> 0:21:41.520 was the sixth time since the NASDAC are raised a 0:21:41.640 --> 0:21:45.359 four percent plus inter day decline to close higher on 0:21:45.440 --> 0:21:49.040 the day. Strategists tracked by Bloomberger are still bullish, with 0:21:49.160 --> 0:21:52.520 their year end average forecast for the SMP five hunded 0:21:52.760 --> 0:21:55.760 close to five thousand. Live in New York. I'm John Tucker, 0:21:55.800 --> 0:21:58.399 Bloomberg Daybreak. All right, John, thanks some big coins and 0:21:58.480 --> 0:22:01.280