WEBVTT - Bloomberg Daybreak: January 27, 2022 - Hour 2 (Radio) 0:00:02.800 --> 0:00:06.280 Live from the Bloomberg Interactor Broker Studios. Is Bloomberg day 0:00:06.280 --> 0:00:10.960 Break for Thursday January two. Coming up this hour. Markets 0:00:11.000 --> 0:00:14.200 react after the Fed takes a hawkish tone that's on 0:00:14.360 --> 0:00:18.239 rate hikes climb, with traders now predicting five increases. Earnings 0:00:18.320 --> 0:00:21.880 also hit sentiment as outlooks from Intel and Tesla disappoints, 0:00:22.079 --> 0:00:25.360 and Chuck Schumer promises quick action to fill Justice Stephen 0:00:25.400 --> 0:00:28.720 Brier spot on the Supreme Court. A winter storm bears 0:00:28.760 --> 0:00:31.240 down on the city, and President Biden will visit New 0:00:31.320 --> 0:00:34.480 York to focus on gun violence. On John Tucker, those 0:00:34.520 --> 0:00:37.360 stories straight ahead, I'm John stas Shower. Sports, the Heat 0:00:37.400 --> 0:00:39.640 beat the Knicks, the Nuggets beat the Nets, and they're 0:00:39.640 --> 0:00:44.520 playing the women's semifinals at the Australian Open. That's all 0:00:44.680 --> 0:00:48.600 straight ahead on Bloomberg day Break on Bloomberg eleven three 0:00:48.600 --> 0:00:53.080 on New York, Bloomberg Washington, d C, Bloomberg one O 0:00:53.240 --> 0:00:57.680 six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x 0:00:57.880 --> 0:01:00.280 M one nine Team and around the world Old on 0:01:00.400 --> 0:01:03.680 Bloomberg Radio dot Com and via the Bloomberg Business Set. 0:01:07.200 --> 0:01:10.160 Good morning, I'm Nathan Hagar, and I'm Karen, Moscow and 0:01:10.319 --> 0:01:13.440 US futures, we're looking a stage a comeback, but they're 0:01:13.520 --> 0:01:16.600 lower once again. It is currently six oh one on 0:01:16.640 --> 0:01:18.679 Wall Street and we check the markets every fifteen minutes 0:01:18.720 --> 0:01:22.000 throughout the trading day on Bloomberg. Right now, SMP futures 0:01:22.000 --> 0:01:25.280 are down twelve points down, futures down eight eight, NASDAG 0:01:25.319 --> 0:01:27.960 futures down forty eight. The decks in Germany's down seven 0:01:27.959 --> 0:01:31.280 tenths of upper cent ten year treasury up eight thirty seconds. 0:01:31.319 --> 0:01:33.200 He had one point eight three percent. They yield on 0:01:33.240 --> 0:01:36.280 the two year one point one nine percent. Ninem Ex 0:01:36.280 --> 0:01:38.759 screwed oil. It is little change at eight seven thirty 0:01:38.800 --> 0:01:41.919 four cents of barrel and bitcoin this morning at thirty 0:01:41.959 --> 0:01:45.440 six thousand, three hundred fifty dollars. Nathan Karen. Stocks did 0:01:45.520 --> 0:01:48.200 sell off overnight after yesterday's hawk is tilt from the Fed. 0:01:48.240 --> 0:01:51.040 We had seen some evidence of dip buying this morning, 0:01:51.040 --> 0:01:53.560 but as you mentioned, US futures are back in the 0:01:53.600 --> 0:01:57.040 red chair. J Powell is signaling a March interst rate hike, 0:01:57.120 --> 0:02:00.560 but stoking speculation as well about more aggressive policy in 0:02:00.600 --> 0:02:02.960 the months ahead. I think there's quite a bit of 0:02:03.040 --> 0:02:07.160 room to raise interest rates without threatening the labor market. 0:02:07.200 --> 0:02:11.880 This is, by so many measures, a historically tight labor market. 0:02:12.240 --> 0:02:14.480 The yield curve flattened on the heels of those comments 0:02:14.480 --> 0:02:16.760 from j Pal this morning, two year yields are rising 0:02:16.760 --> 0:02:19.639 while tens and thirties fall. Former Fed Vice chair Alan 0:02:19.680 --> 0:02:22.520 Blinder expects to rate hike at every meeting going forward. 0:02:22.960 --> 0:02:25.720 Think about where we are now, We're almost as zero 0:02:25.880 --> 0:02:29.600 rate four rate hike is puts you just above one 0:02:29.680 --> 0:02:32.800 per cent. That's hardly a central bank that's trying to 0:02:32.840 --> 0:02:36.560 clamp down on its economy. Former vice chair Allen Blinder 0:02:36.560 --> 0:02:38.840 says the Fed will continue to be data dependent. In 0:02:38.880 --> 0:02:41.680 this morning, money market surprising five rate hikes from the 0:02:41.680 --> 0:02:45.480 Fed this year, and US stocks sank after the Fed decision, Nathan, 0:02:45.520 --> 0:02:48.760 and that trend continued overnight with heavy selling in Asia. 0:02:48.840 --> 0:02:52.360 We get the recap from blooming Bloomberg's Juliette Sally in Singapore. 0:02:52.440 --> 0:02:55.440 Good morning, Juliette, Good morning Karen. The MSCI Asia Pacific 0:02:55.440 --> 0:02:57.919 INEX posted its biggest drop since February to hold a 0:02:58.080 --> 0:03:01.120 fourteen month lows, as a number of indexes in the region. 0:03:01.200 --> 0:03:05.160 Tajd Auno entered bad market and correction territory China's cs 0:03:05.160 --> 0:03:07.800 I three hundred twenty percent from its February pake to 0:03:08.000 --> 0:03:11.040 enter a bad market. South Koreas cost me also entering 0:03:11.080 --> 0:03:14.040 a bad market. Australia's ESSEX two hundred was down ten 0:03:14.040 --> 0:03:17.320 pa cent from its August peake to enter correction in Singapore. 0:03:17.400 --> 0:03:20.400 Juliet Sale, Bloomberg Daybreak, All right, Juliete, thank you. So 0:03:20.440 --> 0:03:22.600 how much further is the Federal Reserve willing to let 0:03:22.639 --> 0:03:25.280 stock slide? We have a prediction from the world's biggest 0:03:25.280 --> 0:03:27.560 hedge fund, and Bloomberg. Rnita Young joins US Live with 0:03:27.600 --> 0:03:30.000 the details. Good morning, Granita, Good morning Nathan. It's the 0:03:30.040 --> 0:03:34.160 burning question of the moment for market watchers. At Bridgewater Associates, 0:03:34.160 --> 0:03:37.320 co Chief investment officer Greg Jensen says the Fed could 0:03:37.360 --> 0:03:41.240 let stocks drop as much as twenty more. That would 0:03:41.280 --> 0:03:44.000 put the S and P five hundred below thirty hundred, 0:03:44.120 --> 0:03:47.320 near its pre pandemic level. Jensen says, so far, the 0:03:47.360 --> 0:03:50.360 decline over the past few weeks has been mostly healthy 0:03:50.640 --> 0:03:55.040 because it's deflated some of the bubbles, like cryptocurrencies. Live 0:03:55.080 --> 0:03:58.080 in New York. I'm Goranita Young, Bloomberg Daybreak, All right, Grania, 0:03:58.120 --> 0:04:00.600 thank you about stocks are also under pressure this morning 0:04:00.640 --> 0:04:04.000 from earnings, including disappointing results from Intel. The shipmakers out 0:04:04.000 --> 0:04:06.320 with a weak profit forecast for the current quarter, and 0:04:06.360 --> 0:04:09.360 we get the story from Bloomberg's Charlie Pillett. The report 0:04:09.560 --> 0:04:12.840 is fueling concern that the cost of CEO Pat Gelsinger's 0:04:12.880 --> 0:04:16.800 turnaround plan will weigh heavily on the chipmaker's financial performance. 0:04:17.080 --> 0:04:20.400 Though demand for server chips is helping bolster sales, the 0:04:20.440 --> 0:04:23.880 forecast ads evidence that profit is suffering from an Intel 0:04:24.000 --> 0:04:27.600 spending spree. Gelsinger, who took the helm last year, has 0:04:27.680 --> 0:04:32.080 embarked on an ambitious plan to overhaul Intel's manufacturing that 0:04:32.160 --> 0:04:35.000 includes a new factory hub and Ohio announced last week 0:04:35.160 --> 0:04:38.760 that could cost twenty billion dollars in New York. Charlie 0:04:38.760 --> 0:04:41.599 Pellet Bloomberg day Break, All right, Charlie, thank you. Shares 0:04:41.640 --> 0:04:44.280 of Tesla are also dropping this morning. They're down one 0:04:44.279 --> 0:04:47.159 in the third percent after the company posted profit above 0:04:47.279 --> 0:04:51.040 estimates but warn't supply chain problems will persist. Ed Ludlow 0:04:51.120 --> 0:04:54.039 has details from our Bloomberg nine sixty newsroom in San Francisco. 0:04:54.320 --> 0:04:57.679 Executives said that production volumes at the plant in Fremont 0:04:57.720 --> 0:05:01.120 California and in Shanghai have been a pressed for several 0:05:01.240 --> 0:05:04.520 quarters due to the ongoing supply chain crunch that includes, 0:05:04.720 --> 0:05:08.599 of course, a shortage of semiconductors, and that meant one 0:05:08.680 --> 0:05:12.920 big thing this year, Tesla will not be launching any 0:05:12.960 --> 0:05:16.359 new products. That means no cyber truck, no semi truck. 0:05:16.400 --> 0:05:19.160 And the logic that Elon must put behind that was 0:05:19.240 --> 0:05:21.280 that if they don't have the parts to build or 0:05:21.360 --> 0:05:24.320 ramp up production of their existing products, then they shouldn't 0:05:24.360 --> 0:05:28.679 move quickly onto new products going forward. Ed Lovelow, Bloomberg News, 0:05:28.880 --> 0:05:31.599 San Francisco, and thank you the teker and age continue 0:05:31.640 --> 0:05:34.440 to roll in today. Up next to Apple reports this afternoon, 0:05:34.480 --> 0:05:37.360 and we get a preview from Bloomberg's Tom Busby. Well. 0:05:37.360 --> 0:05:40.080 The big question for Apple's first quarter results how big 0:05:40.120 --> 0:05:43.320 were holiday sales of its new iPhone thirteens, as well 0:05:43.320 --> 0:05:46.279 as the iPad Mini, the MacBook Pro, the Apple Watch 0:05:46.360 --> 0:05:50.560 Series seven, and it's updated air party or phones. Also 0:05:50.920 --> 0:05:54.320 whether that global computer chip crunch and supply chain bottlenecks 0:05:54.360 --> 0:05:58.280 impacted sales and production. Bloomberg economist forecast revenue during the 0:05:58.320 --> 0:06:02.200 all important holiday quarter top one D nineteen billion dollars, 0:06:02.240 --> 0:06:05.040 more than half of that from sales of iPhones on 0:06:05.160 --> 0:06:08.120 non adjusted earnings of a dollar ninety a share tom 0:06:08.160 --> 0:06:11.320 Busby Bloomberg Daybreak Thanks Tom. Earnings in Europe are also 0:06:11.320 --> 0:06:13.680 in focus. Shares of Deutsche Bank OR up almost five 0:06:13.680 --> 0:06:16.400 and a half percent. Germany's largest lender, says it will 0:06:16.440 --> 0:06:19.400 quote significantly exceed its revenue guidance for the coming year. 0:06:19.560 --> 0:06:22.200 Deutsche Bank saw gains in debt trading and its mergery 0:06:22.400 --> 0:06:25.479 our merger advisory business in the fourth quarter. And turning 0:06:25.480 --> 0:06:28.360 to politics now, Nathan President Biden looks poised to make 0:06:28.400 --> 0:06:30.880 a mark on the Supreme Court. We're told Justice Stephen 0:06:30.920 --> 0:06:33.159 Bryer plans to retire at the end of this term. 0:06:33.600 --> 0:06:36.160 Senate Majority Leader Chuck Schumer is leading tributes to the 0:06:36.240 --> 0:06:39.520 high courts. Most senior liberal, he was a model jurist. 0:06:39.720 --> 0:06:42.960 He had huge impact on people's lives in terms of 0:06:43.040 --> 0:06:47.719 voting rights, women, women's rights, and reproductive rights, in terms 0:06:47.760 --> 0:06:50.240 of the environment, and maybe most of all, on the 0:06:50.279 --> 0:06:53.640 a c a UH, the Affordable Care Act, making sure 0:06:53.640 --> 0:06:57.000 it's state. Senator Schumer is promising a quick timetable to 0:06:57.040 --> 0:07:00.279 confirm Brier's successor. President Biden has promised in aim a 0:07:00.279 --> 0:07:03.880 black woman to the High Court. And right now, SMP 0:07:04.000 --> 0:07:07.279 futures are down six point, Staff futures down fifty four. 0:07:07.400 --> 0:07:11.000 Nasdaq futures are lower by eighteen points. The tenure treasury 0:07:11.080 --> 0:07:14.800 is up nine thirty seconds. The yield one yield on 0:07:14.840 --> 0:07:17.400 the two year one point one nine. Local news and 0:07:17.440 --> 0:07:23.600 to check of sports. Next, this is Bloomberg at six 0:07:23.640 --> 0:07:26.040 oh seven on Wall Street where eighteen degrees in Central Park. 0:07:26.120 --> 0:07:28.720 Still dealing with big delays on the northbound Connecticut Turnpike 0:07:28.800 --> 0:07:32.000 with two tractor trailers involved in an accident. John Tucker 0:07:32.080 --> 0:07:33.560 is here with more on what's going on in New 0:07:33.640 --> 0:07:35.840 York and around the world. John and Na said, we're 0:07:35.840 --> 0:07:38.680 watching a powerful snow storm that's sent to sweep up 0:07:38.720 --> 0:07:42.960 the East Coast starting tomorrow. At Bloomberg, Meteorologist Rob Carolin 0:07:43.120 --> 0:07:46.080 joins us with the very latest. Good morning, Rob, John. 0:07:46.120 --> 0:07:48.000 The computer model is still not an agreement on the 0:07:48.040 --> 0:07:50.760 storm coming up for Saturday. The US model takes it 0:07:50.800 --> 0:07:53.040 out to see while most of the international models have 0:07:53.120 --> 0:07:55.920 a fairly significant storm for the Triston area. I think 0:07:55.960 --> 0:07:58.200 that's why the National Weather Surfaces put a winter storm 0:07:58.240 --> 0:08:00.920 watch up for Friday evening through sat. Sturday evening for 0:08:00.960 --> 0:08:03.679 the coast, including the city in Long Island and Westchester County, 0:08:03.680 --> 0:08:06.480 New York. Looks like the snow will arrive by mid 0:08:06.520 --> 0:08:08.920 to day and afternoon tomorrow. In the Tristate area, should 0:08:08.920 --> 0:08:10.960 be done by Saturday evening. Right now, two to six 0:08:10.960 --> 0:08:15.640 inches looks likely. John Bloomberg Meteorologist Rob Carolyn, Thanks check 0:08:15.720 --> 0:08:18.360 your flight this morning, and it's not because of the weather. 0:08:18.880 --> 0:08:22.720 United says it's experiencing an I T outage and teams 0:08:22.720 --> 0:08:25.840 are working to get it resolved. President Biden will promote 0:08:25.880 --> 0:08:29.480 his administration's efforts to fight gun crime in New York 0:08:29.560 --> 0:08:32.839 next week with Mayor Eric Adams, who's confronting a spade 0:08:32.920 --> 0:08:35.920 of violence, including the shooting deaths of two police officers. 0:08:36.240 --> 0:08:39.080 The President will try to highlight increase federal funding for 0:08:39.160 --> 0:08:42.840 state and city law enforcement. A floria of meetings regarding 0:08:42.920 --> 0:08:46.199 Russia and Ukraine appear to have made a bit of progress. 0:08:46.480 --> 0:08:50.840 The story from Bloomberg's Aad Baxter. NATO Secretary General John 0:08:50.880 --> 0:08:54.040 Staltenberg is urging a direct meeting with Russia. We are 0:08:54.080 --> 0:08:59.200 prepared to listen to Russia's concerns. Real conversational how to 0:08:59.360 --> 0:09:03.720 uphold strength and the amount of principles all European insecuted 0:09:03.880 --> 0:09:07.959 that we have old as well. In Paris, direct meetings 0:09:07.960 --> 0:09:10.960 with high level diplomats from Ukraine and Russia, both saying 0:09:11.320 --> 0:09:14.079 marginal improvement, have set up another meeting in two weeks 0:09:14.080 --> 0:09:16.960 in Berlin, and the US has delivered a letter to 0:09:17.040 --> 0:09:20.840 Russia with proposals to end the standoff. In San Francisco, 0:09:20.880 --> 0:09:23.680 I'm at Baxter Bloomberg Daybreak, New York's mt A looking 0:09:23.679 --> 0:09:26.160 at ways to prevent people from falling. You're jumping out 0:09:26.160 --> 0:09:29.600 of subway tracks. A test force plans to explore sensors 0:09:29.640 --> 0:09:33.520 and platform doors. Homeless person this month killed a woman 0:09:33.559 --> 0:09:36.040 by pushing her onto the tracks in front of an 0:09:36.080 --> 0:09:39.600 oncoming train at the Times Square station. And Amazon dot 0:09:39.679 --> 0:09:43.200 Com was unable to escape a lawsuit filed by convicted 0:09:43.280 --> 0:09:46.040 murder in New York who claims the company's refusal to 0:09:46.120 --> 0:09:49.679 hire him as a delivery driver was discrimination. A judge 0:09:49.800 --> 0:09:52.920 rule that Henry Franklin's crime had no bearing at whether 0:09:52.960 --> 0:09:56.160 he could deliver groceries. Global News twenty four hours a 0:09:56.240 --> 0:09:59.040 day on Aaron on Bloomberg Quicktake power by more than 0:09:59.080 --> 0:10:01.960 twenty seven hood journalists and analysts in more than one 0:10:02.360 --> 0:10:10.840 twenty countries. I'm John Tucker. This is Bloomberg Nathan all Right. John. Thanks, 0:10:10.840 --> 0:10:12.480 coming up to six ten on Wall Street. Time for 0:10:12.520 --> 0:10:15.560 the Bloomberg Sports update. Here's John all Right. Nathan. Nick's 0:10:15.600 --> 0:10:18.439 unable to beat the Heat in Miami. Trailed by fourteen 0:10:18.440 --> 0:10:20.439 in the first quarter, by twenty eight and the third. 0:10:20.480 --> 0:10:23.040 The final a little more respectable. But Miami, who leads 0:10:23.080 --> 0:10:26.000 the East one at one ten to nineties six. The 0:10:26.080 --> 0:10:28.920 Heat had four players scored twenty or more, Duncan Robinson 0:10:28.960 --> 0:10:31.800 at twenty five. He made seven three pointers. The Knicks 0:10:31.880 --> 0:10:34.760 leading score was Obi Toppin with eighteen. Not a loss 0:10:34.800 --> 0:10:36.720 for the Nets in Brooklyn, where they are just twelve 0:10:36.800 --> 0:10:39.200 and thirteen. They were without the entire Big three as 0:10:39.280 --> 0:10:41.800 James Harden sat out for the minor ham spring injury. 0:10:41.800 --> 0:10:44.480 In Denver, scored forty two points in the third quarter 0:10:44.480 --> 0:10:48.280 of the Nuggets one to one eighteen. Rangers skate tonight 0:10:48.280 --> 0:10:51.520 in Columbus, then come home tomorrow for Henrik Lunquist night. 0:10:51.520 --> 0:10:54.439 Seaton Hall lost at home to Marquette seventy three sixty 0:10:54.480 --> 0:10:56.400 three of the five is just three and six in 0:10:56.440 --> 0:10:59.600 the Big East Ash Party continues to steam roll at 0:10:59.600 --> 0:11:01.440 the aust only at Open six one, six three at 0:11:01.480 --> 0:11:04.920 the semifinals over American Madison Keys, Party has won all 0:11:05.000 --> 0:11:08.400 twelve sets, has only lost twenty one games. American Daniel 0:11:08.480 --> 0:11:11.000 Collins playing now he's won the first set of her 0:11:11.040 --> 0:11:14.880 semifinal match. Introductory his conference of MetLife Stadium for new Giants, 0:11:14.880 --> 0:11:18.360 gentlemanager Joe Shane and owner John Mara. When asked about 0:11:18.440 --> 0:11:22.080 quarterback Daniel Jones said, we've done everything possible to screw 0:11:22.160 --> 0:11:25.800 this kid up. Shane seems happy with the incumbent QUB. 0:11:26.080 --> 0:11:27.840 I know he's a great kid. He's been in this 0:11:27.880 --> 0:11:30.880 building the last two days. I'll talk to him. There's 0:11:30.920 --> 0:11:32.800 not anybody in this building that's said a bad word 0:11:32.800 --> 0:11:35.920 about his work, Ethic, passion, you know, desire to win, 0:11:36.559 --> 0:11:37.880 and I think you got to have those traits as 0:11:37.920 --> 0:11:40.319 a quarterback. And the kid has physical ability. You know, 0:11:40.360 --> 0:11:42.640 he's got arms strength, he's athletic, he can run. So 0:11:42.679 --> 0:11:44.679 I'm really getting I'm really excited to work with Daniel. 0:11:44.720 --> 0:11:47.560 A lot of other key decisions, including hired a new coach. 0:11:47.600 --> 0:11:51.200 Shane will interview former Miami Dolphins head coach Brian Flores today. 0:11:51.440 --> 0:11:54.240 John Stashi aware of Bloomberg scores all right, John, Thanks. 0:11:54.280 --> 0:11:57.160 SESP futures down five point, Staff futures down fifty two, 0:11:57.240 --> 0:12:00.440 nests Act futures lower by eight points. Testlessar is down 0:12:00.480 --> 0:12:04.320 one point. Dan Ives of web Bush joins us Next 0:12:07.040 --> 0:12:09.320 Bloomberg eleven three oh weather high your thirty today with 0:12:09.320 --> 0:12:11.720 a winter storm watch kicking in tomorrow night, lasting into 0:12:11.760 --> 0:12:14.400 Saturday night. Two to six inches of snow possible from 0:12:14.400 --> 0:12:22.360 an over easter tomorleshigs and mid thirties low twenties for Saturday. Markets, 0:12:22.480 --> 0:12:25.559 headlines and breaking news twenty four hours a day at 0:12:25.559 --> 0:12:28.959 Bloomberg dot Com, the Bloomberg Business at and at Bloomberg 0:12:29.040 --> 0:12:37.880 Quick Tape. This is a Bloomberg Business flash and I'm 0:12:37.880 --> 0:12:40.520 par in Moscow and you have stock in Next. Futures 0:12:40.520 --> 0:12:43.160 have been jumping around a bit this morning following US 0:12:43.160 --> 0:12:46.440 sell offs marked by a hawkish federal reserve. We checked 0:12:46.440 --> 0:12:49.040 the markets every fifteen minutes throughout the trading day on 0:12:49.160 --> 0:12:52.400 Bloomberg and right now, SNP futures are a little change down. 0:12:52.440 --> 0:12:55.280 Futures are as well as well as Nest Deck futures. 0:12:55.520 --> 0:12:57.959 The decks in Germany is down half per cent the 0:12:58.040 --> 0:13:01.160 ten year Treasury up eight thirty seconds one point three percent, 0:13:01.480 --> 0:13:03.520 and they yield on the two year one point one 0:13:03.760 --> 0:13:07.000 nine percent. Nine X true oil is it'll changed at 0:13:07.040 --> 0:13:09.839 eighty seven dollars forty two cents a barrel. Comex Scholl 0:13:09.880 --> 0:13:12.400 down one point one percent, down twenty dollars forty cents 0:13:12.400 --> 0:13:15.360 at eighteen eleven sixty an ounce. The Euro one point 0:13:15.440 --> 0:13:18.040 one eight nine against the dollar, British found one point 0:13:18.040 --> 0:13:20.280 three four oh shoo, and the yen is at one 0:13:20.360 --> 0:13:24.079 fifteen point to zero Bitcoin this morning at thirty six thousand, 0:13:24.080 --> 0:13:26.720 four hundred sixty dollars. Today we are watching for the 0:13:26.720 --> 0:13:29.120 weekly report on initial jobless claims at at eight thirty 0:13:29.160 --> 0:13:31.920 Wall Street time, along with durable goods orders and pending 0:13:31.960 --> 0:13:35.000 home sales are out of ten. That's a Bloomberg business flash. 0:13:35.000 --> 0:13:37.040 Now here's John Tucker with Moore on what's going on 0:13:37.120 --> 0:13:40.280 around the world. John and sent a. Democrats Karen planned 0:13:40.280 --> 0:13:44.520 to move swiftly to replace retiring Supreme Court Justice Stephen Bryer. 0:13:45.080 --> 0:13:48.040 Dozens of United flights delayed this morning after the airline 0:13:48.080 --> 0:13:52.920 reported a company wide technology outage. South Korea's military says 0:13:52.960 --> 0:13:55.760 North Korea Fire two is suspended. Ballistic missiles into the 0:13:55.760 --> 0:14:00.000 sea in a sixth round of weapons launches this month, sports, 0:14:00.080 --> 0:14:02.720 the Nix and Nets both lose, and on the ice 0:14:02.800 --> 0:14:05.920 the Capitals lose the Bruins fault of Colorado in overtime 0:14:06.120 --> 0:14:09.840 after the Australian opened women's semifinals as Lee Barney defeats 0:14:09.840 --> 0:14:14.120 American Madison Keys in straight Sense Global News twenty four 0:14:14.160 --> 0:14:16.800 hours a day on a round Bloomberg Quicktake, powered by 0:14:16.920 --> 0:14:19.440 more than twenty seven hundred journalist and analysts and more 0:14:19.480 --> 0:14:23.520 than one twenty countries. I'm John Tucker. This is Bloomberg, 0:14:23.680 --> 0:14:26.560 Nathan John, Thank you, six nineteen on Wall Street Live 0:14:26.600 --> 0:14:30.000 from the Bloomberg Interactor Broker Studios. This is Bloomberg Daybreak. 0:14:30.000 --> 0:14:33.160 As we watched sort of the market shifting this morning, 0:14:33.160 --> 0:14:36.280 We're continuing to keep our eyes on shares of Tesla 0:14:36.440 --> 0:14:40.000 after the electric carmaker reported earnings that came in at 0:14:40.000 --> 0:14:42.960 a record actually, but the shares this morning are lower 0:14:43.360 --> 0:14:46.640 by a little more than one percent with supply chain 0:14:46.720 --> 0:14:51.080 issues keeping the brakes on new models for Elon Muskin Company. 0:14:51.160 --> 0:14:53.800 Joining us now someone who has been very bullish on 0:14:53.920 --> 0:14:56.920 Tesla and the tech sector more broadly, Dan Ives, Senior 0:14:56.920 --> 0:15:01.040 Equity research channelist and managing director at Red Bull Securities, Dan, 0:15:01.200 --> 0:15:04.240 Good morning. Seems like the supply chain, the outlook is 0:15:04.280 --> 0:15:08.800 what's got investors attention this morning. Isn't shaking your thesis 0:15:08.880 --> 0:15:12.200 at all on Tesla going forward? Yeah, I mean, look 0:15:12.280 --> 0:15:14.040 not at all. I mean right now that they have 0:15:14.080 --> 0:15:16.960 a supply problem, on demand problem demand that Strive been 0:15:17.040 --> 0:15:21.400 supply by about and I think the big story from 0:15:21.480 --> 0:15:25.400 last night is Austin, which is the main factory now 0:15:25.440 --> 0:15:29.040 in the US that's actually open and start and produced cars, 0:15:29.040 --> 0:15:32.360 along with eight battery, which is probably the most innovative 0:15:32.360 --> 0:15:35.600 battery technology out there. You put all together, this is 0:15:35.600 --> 0:15:38.280 a knee jerk reaction and risk off market. I think 0:15:38.360 --> 0:15:43.360 ultimately investors digestive as bullish. What about the fact that 0:15:43.600 --> 0:15:46.480 Elon Musk came out in the call last night something 0:15:46.480 --> 0:15:49.640 he hadn't done the last time Tesla reported earnings and 0:15:50.000 --> 0:15:52.800 pretty much confirmed that a lot of these delayed models 0:15:52.840 --> 0:15:55.360 like Cybertruck and some of the other models coming down 0:15:55.360 --> 0:15:57.280 the pike are going to have to be delayed even 0:15:57.320 --> 0:16:02.560 longer we'll be supplied. Is an unprecedented issue that we're 0:16:02.600 --> 0:16:06.920 seeing for automakers around the world. For Tesla, they got 0:16:06.920 --> 0:16:09.800 to focus right now and ramping Model Y production and 0:16:09.880 --> 0:16:13.840 Model three because you're talking about five six, seven month 0:16:13.960 --> 0:16:16.960 weeks for those cars. The last thing you want to 0:16:17.000 --> 0:16:19.400 see them do is now trying to juggle another ball 0:16:19.440 --> 0:16:22.320 and bring Cybertruck into it. And it's a smart movie. 0:16:22.320 --> 0:16:26.040 You push you two thousand three. Right now, demand significantly 0:16:26.040 --> 0:16:30.360 on stripping supply. They got to focus on ramping Giga Austin, Brewin, 0:16:30.480 --> 0:16:33.640 in Europe, and ultimately, if you look at EVS right now, 0:16:33.680 --> 0:16:38.040 I mean the Altar, the underlying story for Tesla is bullish. 0:16:38.320 --> 0:16:41.400 As they continue extend that lead on EVS, does it 0:16:41.520 --> 0:16:45.600 become more difficult to ramp up production in Austin and Berlin? Though, 0:16:45.680 --> 0:16:49.320 when the Tesla and a lot of other automakers more 0:16:49.360 --> 0:16:53.600 broadly are dealing with these supply chain issues, no doubt. 0:16:53.640 --> 0:16:56.480 I mean, Tesla is let's say, gotten from about fifty 0:16:56.560 --> 0:16:59.920 percent growth in terms of deliveries just coming year when 0:17:00.080 --> 0:17:02.920 point four one point five million, if not for the 0:17:03.000 --> 0:17:06.679 chip shortage, that's probably closer to one point seven one 0:17:06.760 --> 0:17:09.840 point eight million. So so it's really taking off a 0:17:09.960 --> 0:17:13.679 chunk ten twelve percent of automobiles that can't be made 0:17:14.080 --> 0:17:17.000 because of the chip shortage. But again, this is something 0:17:17.000 --> 0:17:21.320 where the street understands this. It's a reality. And if 0:17:21.320 --> 0:17:23.879 you look at the ultimate demand story and what's happened 0:17:23.920 --> 0:17:26.720 on the battery technology, which is super important, that's a 0:17:26.760 --> 0:17:29.840 big part of the competitive mode. That's what investors are 0:17:29.840 --> 0:17:32.240 gonna glean at this call. And even though it's a 0:17:32.320 --> 0:17:34.040 risk off market, look at a lot of these knee 0:17:34.080 --> 0:17:37.600 jerk reactions. Microsoft after market down five percent, up four 0:17:37.680 --> 0:17:40.560 percent once that they started. So I think you're going 0:17:40.600 --> 0:17:43.680 to see that in this jittery tape. Yeah, I gotta 0:17:43.680 --> 0:17:47.160 wonder whether we're gonna see more jitters when Apple reports 0:17:47.200 --> 0:17:50.400 its earnings after the bell later this afternoon. Supply chain 0:17:50.440 --> 0:17:53.640 issues are in focus for them as well. Dan, It's 0:17:53.640 --> 0:17:57.520 gonna be a similar narrative as Tesla. Demand outstripping supply. 0:17:57.720 --> 0:18:00.680 We just can't make another five pots because coming out 0:18:00.720 --> 0:18:03.480 of China and the Asia supply chain. And I think 0:18:03.840 --> 0:18:06.800 this is just the reality investors are gonna grapple with 0:18:07.000 --> 0:18:10.560 across chips, across the tech sector. But I do believe 0:18:11.040 --> 0:18:13.520 that it's something that's already started get baked into these 0:18:13.520 --> 0:18:17.639 stocks and what we were over sold names specifically names 0:18:17.640 --> 0:18:20.600 like Tesso and Apple, and I think you could fundamentals 0:18:20.600 --> 0:18:23.920 this week in the vacuum of FED news, it's been 0:18:24.000 --> 0:18:27.600 bullish for tech. Company is a fit and beat and 0:18:27.640 --> 0:18:30.480 I think that's important going forward. So when it comes 0:18:30.480 --> 0:18:32.760 to Apple, then in our last minute here, Dan, we're 0:18:32.800 --> 0:18:36.439 coming out of the holiday sales period as well, in 0:18:36.520 --> 0:18:40.359 this reporting cycle that Apple's coming into. What's your expectation 0:18:40.480 --> 0:18:43.600 on what Apple is gonna come out with strongest product 0:18:43.680 --> 0:18:46.320 cycle in a decade in capputina, I think you look 0:18:46.359 --> 0:18:49.720 at iPhone units. We think they sold forty million during 0:18:49.760 --> 0:18:52.520 the holiday season alone. That would be the strongest holiday 0:18:52.560 --> 0:18:55.560 ever for Apple, even though they have a chip shorts 0:18:55.640 --> 0:18:59.080 that took out about ten million units. Services is the key, 0:18:59.400 --> 0:19:01.480 that's the rate, and that's worth you know, we be 0:19:01.600 --> 0:19:04.800 one point five trillion and Apple it's a safety planking 0:19:04.880 --> 0:19:07.080 name in the market storm and I think this is 0:19:07.160 --> 0:19:10.200 one that's going to ultimately be another positive data point 0:19:10.240 --> 0:19:14.200 for tech in this sort of backdrop of a FED 0:19:14.600 --> 0:19:18.600 rising rate environment where investors are seeing at risk off interesting. 0:19:18.640 --> 0:19:20.760 Always good to get your thoughts stand on tech. Thanks 0:19:20.800 --> 0:19:24.639 so much. Dan Ives is senior equity research channelist Managing 0:19:24.640 --> 0:19:28.440 director at Wedbush Securities, looking ahead to those Apple earnings 0:19:28.480 --> 0:19:31.640 after the closing bell today, The shares this morning are 0:19:31.720 --> 0:19:34.960 moving a touch higher. They're up about three tenths of 0:19:35.040 --> 0:19:38.159 one per cent. As for Tesla, still lower in the 0:19:38.160 --> 0:19:43.080 pre market after the forecast for no further products nor 0:19:43.080 --> 0:19:46.359 at least no new ones in this current year. Tesla 0:19:46.480 --> 0:19:49.040 shares right now down almost one and a half percent. 0:19:49.440 --> 0:19:53.360 As for the broader market, kind of shaky. SMP futures 0:19:53.359 --> 0:19:56.960 down three points down Down, futures down forty six, Nasdaq 0:19:57.080 --> 0:20:01.640 futures little changed to in your treasury one point eight 0:20:01.680 --> 0:20:07.919 three percent yield. This is Bloomberg Bloomberg eleven three oh 0:20:07.920 --> 0:20:10.880 weather high in your thirty today. Winter storm watch tomorrow 0:20:11.080 --> 0:20:14.240 tonight Tomorrow night into Saturday, two to six inches possible 0:20:14.240 --> 0:20:17.960 from the northeastern mid thirties tomorrow low twenties for Saturday 0:20:18.000 --> 0:20:25.399 eighteen degrees. Currently broadcasting live from the Bloomberg Interactive Broker 0:20:25.520 --> 0:20:28.920 Studio in New York. Bloomberg e loving free to Washington, 0:20:29.000 --> 0:20:33.320 d C. Bloomberg to Boston, Bloomberg one six one does 0:20:33.320 --> 0:20:37.080 San Francisco, Bloomberg nine sixty to the country Sirius xm 0:20:37.119 --> 0:20:40.320 Cho one nineteen and around the globe. The Bloomberg Business 0:20:40.400 --> 0:20:44.440 app and Bloomberg Radio dot com. This is Bloomberg Daybreak 0:20:49.800 --> 0:20:52.119 six thirty on Wall Street. Good morning, I'm Nathan Hagar 0:20:52.480 --> 0:20:54.879 and I'm fair in Moscow. We're just about three hours 0:20:54.880 --> 0:20:57.240 away from the open of US trading. Time for the 0:20:57.280 --> 0:20:59.680 fine things you need to notice start your day. Brought 0:20:59.720 --> 0:21:03.720 to you by Interactive Brokers Global Analysts. Global Analysts helps 0:21:03.720 --> 0:21:07.199 you find new global investment opportunities. To diversify your portfolio 0:21:07.240 --> 0:21:10.680 and discover undervalued companies. Try Global Analysts today at i 0:21:10.800 --> 0:21:13.919 v k R dot com slash g a up first. 0:21:14.080 --> 0:21:17.080 Stocks are mixed around the world this morning. That's after 0:21:17.160 --> 0:21:20.400 the Feder reserves hankish tone on interest rates. At one 0:21:20.440 --> 0:21:24.000 point NASDACK futures were down more than two percent, but 0:21:24.280 --> 0:21:26.600 they're now higher, but they've been jumping around. They are 0:21:26.680 --> 0:21:28.919 higher by about two tenths of a percent right now. 0:21:29.000 --> 0:21:31.399 Jeff Rosenberg of black Rock says the Fed has a 0:21:31.400 --> 0:21:35.200 tough job ahead. How difficult it is for the Fed 0:21:35.320 --> 0:21:39.240 to navigate to that soft landing that's implicit in those 0:21:39.359 --> 0:21:42.199 SEP forecasts, and that really raises the risks here, I 0:21:42.200 --> 0:21:45.160 think for financial markets and black Rocks. Jeff Rosenberg says 0:21:45.160 --> 0:21:48.040 the market had anticipated a more dubbish message from the Fed, 0:21:48.240 --> 0:21:50.560 and now the question, Karen, is just how many times 0:21:50.560 --> 0:21:53.040 the Fed raises rates. Let's get the latest live with 0:21:53.080 --> 0:21:56.200 Bloomberg's Rnita Young. Good morning, Ranida, Good morning Nathan. Traders 0:21:56.200 --> 0:21:59.000 are ramping up bits to see five fit rate hikes 0:21:59.119 --> 0:22:01.760 this year that would bring the Central Bank's target rate 0:22:01.800 --> 0:22:04.520