1 00:00:03,040 --> 00:00:06,279 Speaker 1: Buy from the Bloomberg Interactor Brooker Studios. This is is Bloomberg 2 00:00:06,360 --> 00:00:11,200 Speaker 1: Daybreak for Tuesday, February two. Coming up this hour, stocks 3 00:00:11,320 --> 00:00:14,880 Speaker 1: jump on reports Russia's pulling back troops from Ukraine. Ball 4 00:00:14,920 --> 00:00:18,480 Speaker 1: Street braces for the latest report on inflation. US authorities 5 00:00:18,520 --> 00:00:21,960 Speaker 1: probe Wall Street firms over block trades, and Microsoft wants 6 00:00:22,000 --> 00:00:24,479 Speaker 1: employees back in the office by the end of the month. 7 00:00:24,640 --> 00:00:28,240 Speaker 1: New York fires over a thousand city workers who refused 8 00:00:28,280 --> 00:00:31,560 Speaker 1: to get vaccinated. I'm John Tucker. The story straight ahead, 9 00:00:31,760 --> 00:00:34,320 Speaker 1: I'm John stash Our and sports another loss for the Knicks. 10 00:00:34,360 --> 00:00:36,599 Speaker 1: They fell in overtime, the Nets one to end their 11 00:00:36,640 --> 00:00:46,559 Speaker 1: long bloomom Street. That's all straight ahead on Bloomberg day 12 00:00:46,560 --> 00:00:51,560 Speaker 1: Break on Bloomberg Element Trio, New York, Bloomberg one, Washington, 13 00:00:51,640 --> 00:00:55,720 Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 14 00:00:55,760 --> 00:00:59,760 Speaker 1: San Francisco, Sirius x M one nineteen and around the 15 00:00:59,760 --> 00:01:02,560 Speaker 1: world Old on Bloomberg Radio, dot Com and via the 16 00:01:02,640 --> 00:01:10,440 Speaker 1: Bloomberg Business. Good morning, I'm Nathan Hager and I'm Karen 17 00:01:10,520 --> 00:01:13,399 Speaker 1: Moscow and US Dot Index. Futures are climbing on our 18 00:01:13,520 --> 00:01:15,800 Speaker 1: ports from the Ukraine border. We're coming up to six 19 00:01:15,880 --> 00:01:17,640 Speaker 1: and one on Wall Street. We checked the markets every 20 00:01:17,640 --> 00:01:20,640 Speaker 1: fifteen minutes throughout the trading day on bloomberg S and 21 00:01:20,720 --> 00:01:23,880 Speaker 1: P futures of fifties seven points this morning, down future 22 00:01:23,920 --> 00:01:26,120 Speaker 1: is up three D twenty one and noasday futures up 23 00:01:26,120 --> 00:01:29,200 Speaker 1: two D sixty four. The ten year treasury down thirteen 24 00:01:29,280 --> 00:01:32,400 Speaker 1: thirty seconds, yield two point zero three percent, yield on 25 00:01:32,440 --> 00:01:35,280 Speaker 1: the two year one point five nine percent. Nathan Well, Karen, 26 00:01:35,319 --> 00:01:38,200 Speaker 1: we begin with the latest developments involving Russia and Ukraine. 27 00:01:38,200 --> 00:01:40,880 Speaker 1: There are reports that Moscow will pull back some troops 28 00:01:40,920 --> 00:01:44,920 Speaker 1: from the Ukrainian border after it says military drills are completed. 29 00:01:45,120 --> 00:01:49,040 Speaker 1: Amy Morris has the latest from our bloombergroom in Washington. 30 00:01:49,360 --> 00:01:52,400 Speaker 1: The Interfax news service says some units will begin returning 31 00:01:52,400 --> 00:01:56,040 Speaker 1: to their permanent basis after they complete their military exercises, 32 00:01:56,080 --> 00:01:59,680 Speaker 1: which are expected to wrap up on February. Russia is 33 00:01:59,760 --> 00:02:03,360 Speaker 1: con nuing it's largest drills in years in Belarus, drills 34 00:02:03,400 --> 00:02:06,800 Speaker 1: that raised US and European alarm about a possible military 35 00:02:06,800 --> 00:02:10,680 Speaker 1: assault on Ukraine. The Kremlin has consistently denied it plans 36 00:02:10,680 --> 00:02:14,360 Speaker 1: an attack. This as Russian Foreign Minister Sergey Lavrov says 37 00:02:14,520 --> 00:02:18,280 Speaker 1: he supports continuing diplomatic efforts with the West. In Washington. 38 00:02:18,360 --> 00:02:21,200 Speaker 1: I'm Amy Morris, Bloomberg Daybreak, Amy, Thank you. The news 39 00:02:21,240 --> 00:02:23,720 Speaker 1: is bringing relief to Marcus this morning. There are hopes 40 00:02:23,800 --> 00:02:27,560 Speaker 1: that President Vladimir Putin is indeed stepping away from a conflict. 41 00:02:27,639 --> 00:02:30,280 Speaker 1: We spoke with retired Brigadier General Mark him At about 42 00:02:30,280 --> 00:02:33,920 Speaker 1: this situation. We really don't know how he can step 43 00:02:34,160 --> 00:02:36,040 Speaker 1: down from this, and I think it may well be 44 00:02:36,160 --> 00:02:38,720 Speaker 1: that he's a looking for an opportunity to step down 45 00:02:38,840 --> 00:02:41,720 Speaker 1: and back off. But it's pretty vulnerable at this point, 46 00:02:41,760 --> 00:02:44,800 Speaker 1: no no doubt about it. Retired Brigadier General Mark Himis 47 00:02:44,840 --> 00:02:48,160 Speaker 1: spoke at their Washington. Corresponded Joe Matthew on Bloomberg Sound 48 00:02:48,240 --> 00:02:51,040 Speaker 1: On Catch the program weekdays at five pm Eastern on 49 00:02:51,040 --> 00:02:54,280 Speaker 1: Bloomberg Radio. Okaren, we saw jump in equities following those 50 00:02:54,280 --> 00:02:56,360 Speaker 1: developments on the board of Ukraine. Let's get the very 51 00:02:56,400 --> 00:02:59,359 Speaker 1: latest on the market action in Europe live with Bloomberg's 52 00:02:59,360 --> 00:03:03,160 Speaker 1: Max Rams in London. Good morning, Macks, morning, Nathan and Karen. Yes, 53 00:03:03,240 --> 00:03:06,040 Speaker 1: a real risk on moved during the European session this morning. 54 00:03:06,040 --> 00:03:08,480 Speaker 1: We were looking at losses ahead of the European cash 55 00:03:08,520 --> 00:03:11,880 Speaker 1: equity open but now strong gains. Around three hours into 56 00:03:11,919 --> 00:03:14,440 Speaker 1: the trading day the stock six hundred up one point 57 00:03:14,480 --> 00:03:17,480 Speaker 1: one percent. We see similar price action happening for US 58 00:03:17,520 --> 00:03:19,680 Speaker 1: futures too, up one point four percent on SMP five 59 00:03:20,120 --> 00:03:23,800 Speaker 1: min futures. NASDAC features up one point nine percent. So 60 00:03:24,000 --> 00:03:26,600 Speaker 1: we also see strength in Russian assets the rouble and 61 00:03:26,639 --> 00:03:30,200 Speaker 1: to move away from Haven's treasuries declining the US tenure 62 00:03:30,280 --> 00:03:33,280 Speaker 1: yield rising five basis points two point three percent. The 63 00:03:33,320 --> 00:03:35,920 Speaker 1: yield their bit of weakness coming through the dollar down 64 00:03:36,000 --> 00:03:38,440 Speaker 1: two tenths of a percent on the Bloomberg Dollar Spot 65 00:03:38,520 --> 00:03:41,640 Speaker 1: Index and dipping on gold down nine tenths of eight 66 00:03:41,680 --> 00:03:45,280 Speaker 1: percent one eight hundred and fifty five dollars per troy ounce. 67 00:03:45,600 --> 00:03:48,520 Speaker 1: Live in London, Max Ramsey, Bloomberg Daybreak. Thanks Max. The 68 00:03:48,600 --> 00:03:52,320 Speaker 1: markets have certainly been impacted by geopolitical tensions, but risk 69 00:03:52,360 --> 00:03:54,960 Speaker 1: tied to inflation and the third may not be fully 70 00:03:55,080 --> 00:03:58,240 Speaker 1: priced in yet. As according to Federated Global Chief Equity 71 00:03:58,280 --> 00:04:01,800 Speaker 1: Strategies Phil Orlando, all of this is weighing on the 72 00:04:01,880 --> 00:04:04,840 Speaker 1: market to start the new year. We felt that there 73 00:04:04,880 --> 00:04:08,120 Speaker 1: would be some risk the market the you know, drop 74 00:04:08,280 --> 00:04:12,680 Speaker 1: twelve percent or so in the first three weeks, we've bounced, 75 00:04:12,800 --> 00:04:16,559 Speaker 1: but we are bracing for another move lower in coming 76 00:04:16,600 --> 00:04:20,680 Speaker 1: weeks and months. Federated Global Chief equity strategist Phil Orlando 77 00:04:20,760 --> 00:04:23,520 Speaker 1: says a drop of ten to twenty percent for equities 78 00:04:23,560 --> 00:04:27,400 Speaker 1: as quote probably a healthy correction. We're watching oil retreat 79 00:04:27,440 --> 00:04:30,320 Speaker 1: from its science level since care and its traders way 80 00:04:30,360 --> 00:04:32,560 Speaker 1: in apparent cooling in the Ukraine crisis. There are also 81 00:04:32,640 --> 00:04:35,640 Speaker 1: prospects are increased supply on the horizon. Checking prices now, 82 00:04:35,760 --> 00:04:38,200 Speaker 1: nimex cruds down two point nine percent or two dollars 83 00:04:38,240 --> 00:04:40,840 Speaker 1: seventy four cents at ninety two seventy cents of barrel. 84 00:04:41,080 --> 00:04:44,640 Speaker 1: Brent is down two point seven percent at ninety three cents. 85 00:04:45,000 --> 00:04:47,279 Speaker 1: On the economic front, Nathan, it's another day to focus 86 00:04:47,400 --> 00:04:50,400 Speaker 1: on inflation. We get the producer price index for January 87 00:04:50,520 --> 00:04:53,680 Speaker 1: this morning, and economists predicted rose nine point one percent 88 00:04:54,040 --> 00:04:55,920 Speaker 1: on a year of a year basis. We get more 89 00:04:55,960 --> 00:04:59,560 Speaker 1: from Bloomberry's viny deal judas US inflation is running hot. 90 00:05:00,000 --> 00:05:03,080 Speaker 1: In December, the producer price index rose nine point seven 91 00:05:03,160 --> 00:05:05,880 Speaker 1: percent on a year over year basis, the second largest 92 00:05:05,960 --> 00:05:10,000 Speaker 1: increase in data back to There's evidence though we could 93 00:05:10,080 --> 00:05:13,520 Speaker 1: soon be in store for some moderation. Bloomberg Economics, this 94 00:05:13,720 --> 00:05:16,680 Speaker 1: costs may if peaked at the intermediate level of production, 95 00:05:16,960 --> 00:05:19,440 Speaker 1: and the outlook suggests the headline number could be close 96 00:05:19,480 --> 00:05:22,680 Speaker 1: to peaking. Viney Dolls. You nice, Bloomberg debris. All right, Vinney, 97 00:05:22,720 --> 00:05:25,040 Speaker 1: thank you, and we'll get more on today's PPI reports 98 00:05:25,080 --> 00:05:28,039 Speaker 1: shortly when we speak live with Morgan Stanley Chief US 99 00:05:28,080 --> 00:05:31,119 Speaker 1: economist Ellen Zenner. It's coming up at six fifteen am 100 00:05:31,160 --> 00:05:33,400 Speaker 1: Wall Street Time. Now. Wall Street banks are also in 101 00:05:33,480 --> 00:05:36,600 Speaker 1: focus this morning. There's word US authorities are investigating how 102 00:05:36,640 --> 00:05:39,039 Speaker 1: they handle block trades. We get the story from Bloomberg's 103 00:05:39,040 --> 00:05:42,320 Speaker 1: Lisa Matale. Bloomberg News has learned the inquiry is looking 104 00:05:42,360 --> 00:05:46,040 Speaker 1: into how banks, including Morgan Stanley, execute block trades with 105 00:05:46,200 --> 00:05:48,680 Speaker 1: help from outside market makers. It's part of a long 106 00:05:48,800 --> 00:05:52,760 Speaker 1: running probe into stock transactions typically big enough to move markets. 107 00:05:53,080 --> 00:05:56,239 Speaker 1: The Wall Street Journal says Goldman Sachs also has received 108 00:05:56,279 --> 00:05:59,760 Speaker 1: request for documents. That doesn't, however, mean charges will follow. 109 00:06:00,040 --> 00:06:03,799 Speaker 1: Neither the government, Morgan Stanley or Goldman Sachs are commenting 110 00:06:04,040 --> 00:06:07,600 Speaker 1: in New York A Lisa Mateo Bloomberg Daybreak, Lisa, thank you. 111 00:06:07,720 --> 00:06:10,279 Speaker 1: We have a takeover in the chip industry. This morning, 112 00:06:10,360 --> 00:06:14,240 Speaker 1: Intel is buying Tower Semiconductor for five point four billion dollars. 113 00:06:14,520 --> 00:06:16,960 Speaker 1: It's part of the company's pull into the outstourced chip 114 00:06:17,080 --> 00:06:20,480 Speaker 1: manufacturing business. Tower is based in israel An. Intel is 115 00:06:20,520 --> 00:06:23,440 Speaker 1: at one point three in early trading. Another big tech 116 00:06:23,520 --> 00:06:26,360 Speaker 1: companies making news this morning, caring, this time on policies 117 00:06:26,400 --> 00:06:29,200 Speaker 1: tied to the pandemic. Microsoft is telling its US workers 118 00:06:29,400 --> 00:06:31,599 Speaker 1: they've got to get back to their offices starting February. 119 00:06:32,279 --> 00:06:35,960 Speaker 1: Bloomberg's Charlie Pellett reports it marks a fresh attempt to 120 00:06:36,000 --> 00:06:39,320 Speaker 1: get the software makers operations back to normal as COVID 121 00:06:39,400 --> 00:06:42,920 Speaker 1: nineteen cases abate. The company says, unless they have a 122 00:06:43,000 --> 00:06:47,240 Speaker 1: special arrangement, workers should begin a thirty day transition period 123 00:06:47,520 --> 00:06:50,760 Speaker 1: to get back to the office. Microsoft and other tech 124 00:06:50,839 --> 00:06:53,760 Speaker 1: giants have struggled with how soon to get employees back 125 00:06:53,800 --> 00:06:57,880 Speaker 1: in the office. On previous deadlines were pushed back in September. 126 00:06:58,080 --> 00:07:01,719 Speaker 1: Microsoft scrapped a goal of reopening on October four because 127 00:07:01,839 --> 00:07:05,440 Speaker 1: the COVID nineteen Delta variant was raging in New York. 128 00:07:05,560 --> 00:07:08,560 Speaker 1: Charlie Pellett Bloomberg day Break. Thanks Charlie. Bloomberg day Break 129 00:07:08,560 --> 00:07:11,240 Speaker 1: brought to you by Interactive brokers their charge margin loan 130 00:07:11,320 --> 00:07:13,640 Speaker 1: rates from zero point seven five to one point five 131 00:07:13,680 --> 00:07:15,840 Speaker 1: eight percent rates subject to change. Learn more at I 132 00:07:15,960 --> 00:07:19,560 Speaker 1: b k R dot com slash compare. This is Bloomberg. 133 00:07:23,800 --> 00:07:26,240 Speaker 1: It's now six oh seven on Wall Street, seventeen degrees 134 00:07:26,360 --> 00:07:29,000 Speaker 1: in Central Park. We've got an accident on the Eastern 135 00:07:29,080 --> 00:07:32,280 Speaker 1: Cross Bronx Expressway. Details coming up in traffic First. John 136 00:07:32,320 --> 00:07:34,320 Speaker 1: Tucker with more on what's going on in New York 137 00:07:34,360 --> 00:07:36,880 Speaker 1: and around the world, John Nathan. New York City has 138 00:07:37,000 --> 00:07:41,080 Speaker 1: fired the unvaccinated workers following a deadline. The story of 139 00:07:41,120 --> 00:07:44,920 Speaker 1: this morning from Bloomberg's Jeff Bellinger. More than fourteen hundred 140 00:07:45,000 --> 00:07:47,800 Speaker 1: public sector workers in New York City were fired over 141 00:07:47,880 --> 00:07:51,760 Speaker 1: their refusal to get vaccinated before the city's mandated February 142 00:07:51,840 --> 00:07:56,600 Speaker 1: eleventh deadline. Most were Department of Education employees. The terminations 143 00:07:56,680 --> 00:07:59,200 Speaker 1: make up less than one percent of the city's three 144 00:07:59,280 --> 00:08:03,040 Speaker 1: hundred seven thousand member workforce. About half of the three 145 00:08:03,120 --> 00:08:07,000 Speaker 1: thousand employees originally at risk for being fired decided to 146 00:08:07,080 --> 00:08:11,240 Speaker 1: get vaccinated before the deadline. Mayor Eric Adams characterized the 147 00:08:11,320 --> 00:08:15,240 Speaker 1: employee's termination as quitting, saying they're choosing to leave their 148 00:08:15,360 --> 00:08:19,760 Speaker 1: jobs by not following the rules. Jeff Bellinger, Bloomberg day Break. 149 00:08:19,880 --> 00:08:23,320 Speaker 1: The Trump organization's accounting firms is a decade of financial 150 00:08:23,400 --> 00:08:27,080 Speaker 1: statements for Donald Trump can't be relied upon the firm. 151 00:08:27,200 --> 00:08:29,800 Speaker 1: Masers also says it won't do any new work for 152 00:08:29,840 --> 00:08:32,679 Speaker 1: the company. A declaration by an accounting firm that has 153 00:08:32,760 --> 00:08:35,840 Speaker 1: dropping a client of backing away from prior financial statements 154 00:08:36,200 --> 00:08:40,000 Speaker 1: is historically a red flag without company's financial condition not 155 00:08:40,200 --> 00:08:42,760 Speaker 1: what it appears to be or New York's Attorney General 156 00:08:42,840 --> 00:08:45,800 Speaker 1: is investigating what she says was a pattern of potential 157 00:08:45,880 --> 00:08:50,359 Speaker 1: fraudy involving the manipulation of valuations of key Trump properties. 158 00:08:50,960 --> 00:08:54,360 Speaker 1: High speed amtrack Trade headed from Boston to Washington with 159 00:08:54,520 --> 00:08:58,000 Speaker 1: more than one hundred passengers lost power, got stuck in 160 00:08:58,080 --> 00:09:01,280 Speaker 1: New York City for almost seven hours. The Assembler train 161 00:09:01,360 --> 00:09:04,640 Speaker 1: left Boston on time yesterday morning, but not the Hunter's 162 00:09:04,640 --> 00:09:07,720 Speaker 1: Point neighborhood of Queens. The train was moving again as 163 00:09:07,800 --> 00:09:11,480 Speaker 1: of three twenty yesterday afternoon, after a rescue engine arrived 164 00:09:11,520 --> 00:09:15,280 Speaker 1: to move it into Bingehan station in Manhattan, and the 165 00:09:15,320 --> 00:09:17,959 Speaker 1: federal judge says he'll throw out a defamation suit file 166 00:09:18,040 --> 00:09:21,800 Speaker 1: by former Alaska Governor Sarah Palin against The New York Times. 167 00:09:22,320 --> 00:09:25,480 Speaker 1: That comes. Even as jurors continued to deliberate it, the 168 00:09:25,600 --> 00:09:28,800 Speaker 1: Manhattan judge said that Palin failed to present enough evidence. 169 00:09:29,200 --> 00:09:31,839 Speaker 1: If the jury rules and pay favor of Palin, it 170 00:09:31,840 --> 00:09:34,079 Speaker 1: would then be up to the Fenderal Appeals Court to 171 00:09:34,320 --> 00:09:38,080 Speaker 1: choose between the two outcomes. And the European Union's top 172 00:09:38,160 --> 00:09:42,360 Speaker 1: diplomat says he strongly believes a nuclear accord with Iran 173 00:09:42,720 --> 00:09:46,040 Speaker 1: is in sight. An agreement would allow Ran to return 174 00:09:46,080 --> 00:09:49,640 Speaker 1: to global oil markets in exchange for rolling back significant 175 00:09:49,800 --> 00:09:53,680 Speaker 1: advancements in his nuclear activity. Global News twenty four hours 176 00:09:53,720 --> 00:09:56,520 Speaker 1: a day on Iran on Bloomberg Quicktake, powered by more 177 00:09:56,559 --> 00:10:00,480 Speaker 1: than seven hundred journalists, in analysts and more than one countries. 178 00:10:00,679 --> 00:10:03,400 Speaker 1: I'm John Tucker. This is Bloomberg, Nathan. Thank you John. 179 00:10:07,840 --> 00:10:09,559 Speaker 1: Coming up to six ten on Wall Street time for 180 00:10:09,559 --> 00:10:11,720 Speaker 1: the Bloomberg Sports That Date with John Stenn show. All right, 181 00:10:11,760 --> 00:10:14,440 Speaker 1: Nathan Nicks back home from a one in four road trip. 182 00:10:14,520 --> 00:10:16,559 Speaker 1: They blue leads, and three of those losses and the 183 00:10:16,600 --> 00:10:18,400 Speaker 1: two of them those leads were more than twenty points. 184 00:10:18,480 --> 00:10:21,000 Speaker 1: At the Garden. They were up eleven on Oklahoma City, 185 00:10:21,040 --> 00:10:22,880 Speaker 1: a team that's not very good when healthy and the 186 00:10:22,960 --> 00:10:25,240 Speaker 1: Thunder without their top two scores, but share it up 187 00:10:25,640 --> 00:10:29,559 Speaker 1: okay See came back in one seven, one three and overtime. 188 00:10:29,640 --> 00:10:32,520 Speaker 1: Two rookies led the way. Nineteen year old Josh Giddy 189 00:10:32,559 --> 00:10:35,200 Speaker 1: twenty eight points of a triple double. Trade Man scored thirty. 190 00:10:35,440 --> 00:10:37,559 Speaker 1: At least Randall had thirty and a triple double for 191 00:10:37,600 --> 00:10:39,720 Speaker 1: The Knicks have now lost nine of their last eleven. 192 00:10:40,040 --> 00:10:42,160 Speaker 1: The Nets had lost all of their last eleven. The 193 00:10:42,240 --> 00:10:45,280 Speaker 1: skid is over one O nine eight five over Sacramento. 194 00:10:45,600 --> 00:10:48,240 Speaker 1: Ben Simmons, just acquired from Philadelphia, is with the Nets. 195 00:10:48,320 --> 00:10:50,360 Speaker 1: He hasn't played in the game since last summer. Nets 196 00:10:50,400 --> 00:10:52,680 Speaker 1: coach Steve Nash on when his new point guard will 197 00:10:52,720 --> 00:10:55,840 Speaker 1: make his Brooklyn dat the performance scene. You know they're 198 00:10:55,840 --> 00:10:59,319 Speaker 1: gonna want assessment and his return to play and ramp 199 00:10:59,440 --> 00:11:01,079 Speaker 1: up and all that. You know, it's been a long 200 00:11:01,200 --> 00:11:05,960 Speaker 1: period of non NBA activity, So we'll see how they are, 201 00:11:06,880 --> 00:11:08,719 Speaker 1: how they put this program together and how long the 202 00:11:09,080 --> 00:11:11,679 Speaker 1: next visit. The next tomorrow, Night Rangers US the Brons 203 00:11:11,720 --> 00:11:13,880 Speaker 1: to Night Rangers, first game in two weeks. The X 204 00:11:14,040 --> 00:11:16,320 Speaker 1: met Matt Harvey will be on a witness stand today. 205 00:11:16,320 --> 00:11:19,120 Speaker 1: A former employee the Los Angeles Angels is on trial 206 00:11:19,240 --> 00:11:22,480 Speaker 1: for contributing to Angels picture Tyler's Skaggs dying of a 207 00:11:22,559 --> 00:11:25,680 Speaker 1: drug overdose that was Gogar testimony that Harvey was involved. 208 00:11:25,880 --> 00:11:29,600 Speaker 1: Novak Djokovic's first interview since the Australian opened deportation due 209 00:11:29,600 --> 00:11:32,679 Speaker 1: to not being vaccinating, he told the BBC he understands 210 00:11:32,760 --> 00:11:35,280 Speaker 1: the severity of the pandemic, but said the principles of 211 00:11:35,640 --> 00:11:39,160 Speaker 1: decision making about his body more important than winning titles. Djokovic, 212 00:11:39,440 --> 00:11:42,319 Speaker 1: expect you to play next month's tournament in California, but 213 00:11:42,640 --> 00:11:46,360 Speaker 1: the French Open also has a vaccine endate. John Stashwardloomberg 214 00:11:46,400 --> 00:11:49,680 Speaker 1: sports stap all right, John, thanks SMP futures up sixty 215 00:11:49,760 --> 00:11:52,720 Speaker 1: two points down, futures up three hundred sixty six nastack 216 00:11:52,840 --> 00:11:56,080 Speaker 1: futures higher by two hundred seventy five points. Send your 217 00:11:56,080 --> 00:11:59,079 Speaker 1: treasury down fifteen thirty seconds, the yield close to two 218 00:11:59,160 --> 00:12:07,960 Speaker 1: point zero four percent. You're listening to Bloomberg. Bloomberg eleven 219 00:12:08,000 --> 00:12:10,480 Speaker 1: three oh weather, sunshine, lonely, low thirties Today, will be 220 00:12:10,520 --> 00:12:14,679 Speaker 1: in the upper forties on a breezy Wednesday. By Thursday 221 00:12:14,800 --> 00:12:17,120 Speaker 1: will have afternoon showers in a high close to sixteen 222 00:12:17,320 --> 00:12:25,240 Speaker 1: right now, it's only seventeen degrees. Markets headlines and breaking 223 00:12:25,320 --> 00:12:28,160 Speaker 1: news twenty four hours a day at Bloomberg dot Com, 224 00:12:28,320 --> 00:12:31,839 Speaker 1: the Bloomberg Business App, and at Bloomberg Quicktake. This is 225 00:12:31,880 --> 00:12:40,880 Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow and US 226 00:12:40,960 --> 00:12:43,880 Speaker 1: dot indise Futures on the rise this morning. We checked 227 00:12:43,880 --> 00:12:46,559 Speaker 1: the markets every fifteen minutes throughout the trading day. On 228 00:12:46,679 --> 00:12:49,959 Speaker 1: Bloomberg SNP Future is up sixty two points down. Future 229 00:12:50,000 --> 00:12:53,560 Speaker 1: is up three hundred seventy Nasdack futures up two hundred 230 00:12:53,679 --> 00:12:56,439 Speaker 1: seventy nine, or just shy of two percent decks. In 231 00:12:56,520 --> 00:12:59,920 Speaker 1: Germany's at one point six percent ten. Your treasury down 232 00:13:00,040 --> 00:13:02,880 Speaker 1: fourteen thirty seconds, held two point three percent. They yield 233 00:13:02,920 --> 00:13:05,160 Speaker 1: on a two year one point five nine percent. And 234 00:13:05,280 --> 00:13:08,240 Speaker 1: nimex screwed oil is down three percent on two dollars 235 00:13:08,559 --> 00:13:11,120 Speaker 1: five cents and ninety two dollars sixty two cents a 236 00:13:11,160 --> 00:13:14,720 Speaker 1: barrel bitcoin this morning. Forty four thousand, two hundred thirty dollars. 237 00:13:14,960 --> 00:13:17,360 Speaker 1: That's a Bloomberg Business Flash. Now here's John Tucker with 238 00:13:17,480 --> 00:13:19,679 Speaker 1: more on what's going on around the world. John and 239 00:13:19,840 --> 00:13:23,400 Speaker 1: Karen Rush's Defense Ministry say some troops won't we would 240 00:13:23,440 --> 00:13:26,800 Speaker 1: return to their bases after completing drills near the border 241 00:13:26,920 --> 00:13:31,320 Speaker 1: with Ukraine, and demonstrators against vaccine mandates halted traffic at 242 00:13:31,360 --> 00:13:34,599 Speaker 1: two major border crossings in Western Canada, even as the 243 00:13:34,679 --> 00:13:39,360 Speaker 1: Prime Minister there invoked emergency powers to end blockades. Sports 244 00:13:39,480 --> 00:13:42,640 Speaker 1: Nets and Wizards win, the Knicks and Warriors lose. Holl 245 00:13:42,679 --> 00:13:45,720 Speaker 1: the Ice, the Sharks fall to the oilers. Global News 246 00:13:45,760 --> 00:13:47,600 Speaker 1: twenty four hours a day on air on a Bloomberg 247 00:13:47,679 --> 00:13:50,760 Speaker 1: Quick Take, power Blind, more than twenty seven hundred journalists 248 00:13:50,800 --> 00:13:54,600 Speaker 1: and analysts more than one hundred twenty countries. I'm John Tucker, 249 00:13:54,760 --> 00:13:57,960 Speaker 1: and this is Bloomberg. Nathan Okay, John, thanks for coming 250 00:13:58,000 --> 00:14:00,040 Speaker 1: up to six nineteen on Wall Street Live from the 251 00:14:00,040 --> 00:14:03,760 Speaker 1: Bloomberg Interacted Broker Studios. This is Bloomberg Daybreak and Rosalind 252 00:14:03,800 --> 00:14:06,640 Speaker 1: Matheson is back with us now Bloomberg News Executive editor 253 00:14:06,720 --> 00:14:09,760 Speaker 1: for International Government for the latest on what's happening with 254 00:14:10,040 --> 00:14:13,360 Speaker 1: Russia and Ukraine. We heard John mentioned the reports that 255 00:14:13,520 --> 00:14:17,760 Speaker 1: Russia could bring some troops back after drills are completed. 256 00:14:17,840 --> 00:14:20,440 Speaker 1: What are we seeing at this point is actual troop 257 00:14:20,520 --> 00:14:24,080 Speaker 1: movement back to bases happening now? Well, there are some 258 00:14:24,320 --> 00:14:27,520 Speaker 1: videos that are being circulated by Russian media that purport 259 00:14:27,600 --> 00:14:31,080 Speaker 1: to show troops getting back on trucks, but Western officials 260 00:14:31,120 --> 00:14:34,520 Speaker 1: are saying at this early stage there's still no tangible 261 00:14:34,640 --> 00:14:38,080 Speaker 1: evidence of a pullback occurring, and certainly little clarity on 262 00:14:38,160 --> 00:14:41,480 Speaker 1: the size of what pullback might be occurring. These are 263 00:14:41,560 --> 00:14:45,520 Speaker 1: troops who seem to be based, particularly near eastern Ukraine, 264 00:14:45,720 --> 00:14:49,240 Speaker 1: near the separatist areas of Ukraine, not in b Larus, 265 00:14:49,360 --> 00:14:52,200 Speaker 1: which is a separate scenario were drawals are occurring. So 266 00:14:52,320 --> 00:14:54,920 Speaker 1: this would actually be quite meaningful if it's true, but 267 00:14:55,040 --> 00:14:57,560 Speaker 1: also that's significant in size and if they pull back 268 00:14:57,600 --> 00:15:00,400 Speaker 1: to their permanent basis. But it's earlier our yet, and 269 00:15:00,440 --> 00:15:02,680 Speaker 1: it's far too soon to say, Yeah, I suppose we're 270 00:15:02,720 --> 00:15:04,880 Speaker 1: going to be watching more closely to see what happens 271 00:15:04,960 --> 00:15:07,720 Speaker 1: with these massive military drills, some of the biggest drills 272 00:15:07,720 --> 00:15:10,520 Speaker 1: that have been happening in years that are going on 273 00:15:10,760 --> 00:15:14,400 Speaker 1: right now in Belarus. Well, that's right, and it's it's 274 00:15:14,440 --> 00:15:18,120 Speaker 1: not just exercises inside Yellow Roots, which a very large scale. 275 00:15:18,560 --> 00:15:21,400 Speaker 1: There's also naval drills occurring in the Black Sea. So 276 00:15:21,480 --> 00:15:24,920 Speaker 1: you've gotten a large number of Russian warships in the 277 00:15:25,080 --> 00:15:27,720 Speaker 1: area doing drills this week also, so you've got a 278 00:15:27,800 --> 00:15:31,480 Speaker 1: whole lot of drills really around the periphery of Ukraine, 279 00:15:31,800 --> 00:15:34,840 Speaker 1: both at sea and on land, and most of those 280 00:15:35,000 --> 00:15:38,360 Speaker 1: are due to finish this coming Sunday, at which point 281 00:15:38,440 --> 00:15:41,520 Speaker 1: Moscow has said several times it plans to bring those 282 00:15:41,600 --> 00:15:44,040 Speaker 1: troops home as well as we really need to wait 283 00:15:44,120 --> 00:15:46,560 Speaker 1: and see what does happen in the early part of 284 00:15:46,680 --> 00:15:49,480 Speaker 1: next week and where the Moscow makes good on those promises. Also, 285 00:15:49,760 --> 00:15:51,480 Speaker 1: it seems like some of the headlines that have been 286 00:15:51,520 --> 00:15:54,640 Speaker 1: coming down have come across currents raz. We heard from 287 00:15:54,760 --> 00:15:59,160 Speaker 1: the Lower House of Parliament in Moscow that they're calling 288 00:15:59,360 --> 00:16:03,080 Speaker 1: on pros than Putin to recognize the Ukraine separatist movement 289 00:16:03,520 --> 00:16:06,560 Speaker 1: in eastern Ukraine. What kind of impact could that have? 290 00:16:06,760 --> 00:16:09,840 Speaker 1: Does that sort of muddy the waters? Well, certainly it 291 00:16:10,080 --> 00:16:13,200 Speaker 1: is a concerning signal, because, of course, if Russia were 292 00:16:13,280 --> 00:16:17,600 Speaker 1: to formally recognize these separatist entities in eastern Ukraine in 293 00:16:17,640 --> 00:16:21,600 Speaker 1: the Dombas area, that potentially gives them a reason to 294 00:16:21,880 --> 00:16:25,640 Speaker 1: insert themselves into those areas. Of course, Russia always denies 295 00:16:26,080 --> 00:16:29,680 Speaker 1: that it militarily supports the separatists, although certainly they are 296 00:16:29,760 --> 00:16:33,200 Speaker 1: backed by Russia. But if they moved from that to 297 00:16:33,320 --> 00:16:37,640 Speaker 1: a formal recognition of the of those leaders, then ostensibly 298 00:16:37,760 --> 00:16:39,400 Speaker 1: that could give them a rationale to go in and 299 00:16:39,480 --> 00:16:42,400 Speaker 1: say that they're acting in the interests of Russia and 300 00:16:42,520 --> 00:16:45,120 Speaker 1: of those people, and that they want to be part 301 00:16:45,160 --> 00:16:48,040 Speaker 1: of Russia and therefore they are entitled to act. So 302 00:16:48,120 --> 00:16:50,800 Speaker 1: that's one situation to watch very carefully, and certainly it 303 00:16:50,880 --> 00:16:53,720 Speaker 1: just suggests again that these tensions are really far from 304 00:16:53,760 --> 00:16:56,520 Speaker 1: truly over. And I know you're watching the meeting now 305 00:16:56,600 --> 00:17:00,040 Speaker 1: under way between Russian President Putin and German chance for 306 00:17:00,240 --> 00:17:02,920 Speaker 1: the new Chancellor of Germany, all Off Schultz. Can you 307 00:17:02,960 --> 00:17:04,240 Speaker 1: tell us a little bit of what's come out of 308 00:17:04,280 --> 00:17:08,560 Speaker 1: that meeting so far? So far, it's pretty much perfunctories. Um. 309 00:17:09,119 --> 00:17:12,280 Speaker 1: You know, the Russians are using that moment to repeat 310 00:17:12,480 --> 00:17:15,960 Speaker 1: their claims that what the US and others have said 311 00:17:16,000 --> 00:17:20,480 Speaker 1: about invasion invasion scenarios is just paranoia on the part 312 00:17:20,600 --> 00:17:23,400 Speaker 1: of the US and so on. We can expect those 313 00:17:23,640 --> 00:17:26,720 Speaker 1: kind of comments to be repeated. The key thing is 314 00:17:26,760 --> 00:17:29,680 Speaker 1: whether Putin uses this moment to really come out and 315 00:17:29,760 --> 00:17:34,240 Speaker 1: say directly firsthand himself that he plans to pull troops 316 00:17:34,280 --> 00:17:37,000 Speaker 1: back and de escalate the situation. So in a way, 317 00:17:37,040 --> 00:17:39,600 Speaker 1: it's less about the optics of what happens between Germany 318 00:17:39,640 --> 00:17:41,359 Speaker 1: and Russia and to simply what comes straight from the 319 00:17:41,440 --> 00:17:45,040 Speaker 1: Russian president in this moment of visibility today. All right, 320 00:17:45,080 --> 00:17:47,600 Speaker 1: thanks for keeping us on top of what's happening in 321 00:17:47,760 --> 00:17:50,840 Speaker 1: the Ukraine situation. Roslyn Mathis and our executive editor for 322 00:17:50,920 --> 00:17:54,240 Speaker 1: International Government for Bloomberg News with us this morning. On 323 00:17:54,359 --> 00:17:56,840 Speaker 1: top of the geo politics, investors are going to be 324 00:17:56,880 --> 00:18:00,800 Speaker 1: focused on inflation in the coming hours, with the producer 325 00:18:00,880 --> 00:18:03,399 Speaker 1: price index for the month of January do out at 326 00:18:03,440 --> 00:18:05,760 Speaker 1: a thirty am Wall Street time. Ahead of that. We're 327 00:18:05,920 --> 00:18:08,280 Speaker 1: very pleased to be speaking this morning with Ellen Zentner, 328 00:18:08,600 --> 00:18:11,879 Speaker 1: chief US economist at Morgan Stanley. Ellen, it's great to 329 00:18:11,960 --> 00:18:14,159 Speaker 1: have you on with us this morning when we are 330 00:18:14,280 --> 00:18:16,840 Speaker 1: expecting a bit of a drop I think in year 331 00:18:16,960 --> 00:18:19,720 Speaker 1: over year producer prices, even as the monthly number, I 332 00:18:19,800 --> 00:18:22,240 Speaker 1: think many economists are expecting to go up. What are 333 00:18:22,280 --> 00:18:24,520 Speaker 1: you going to be looking for in terms of producer 334 00:18:24,560 --> 00:18:28,199 Speaker 1: prices this morning? Yeah, so I think, Um, I mean 335 00:18:28,240 --> 00:18:30,120 Speaker 1: it may get into a little bit, you know, too 336 00:18:30,240 --> 00:18:33,000 Speaker 1: much detail how much economists dig into this number, but 337 00:18:33,040 --> 00:18:36,080 Speaker 1: there are particular parts of the report, even though it's 338 00:18:36,160 --> 00:18:40,320 Speaker 1: it's on wholesale inflation, their particular parts that do translate 339 00:18:40,400 --> 00:18:43,880 Speaker 1: into what we can expect for consumer prices, and especially 340 00:18:43,960 --> 00:18:46,359 Speaker 1: for the PC price index, which is the one that 341 00:18:46,440 --> 00:18:49,399 Speaker 1: the FED uses it as its anchor. UM and so 342 00:18:49,520 --> 00:18:52,920 Speaker 1: we'll look for some softening there if there's something that 343 00:18:53,080 --> 00:18:55,680 Speaker 1: can help take some of the heat off of those 344 00:18:55,880 --> 00:18:57,960 Speaker 1: those PC numbers that we get at the end of 345 00:18:58,080 --> 00:19:01,200 Speaker 1: the month. But the pipeline is slow going, UM and 346 00:19:01,280 --> 00:19:04,479 Speaker 1: I think that's important here. Inflation data that comes out 347 00:19:04,520 --> 00:19:07,480 Speaker 1: of China then feeds through into our import prices, then 348 00:19:07,560 --> 00:19:10,600 Speaker 1: pp I prices at the wholesale level, and then finally 349 00:19:10,640 --> 00:19:13,920 Speaker 1: onto consumer prices UM. And so you know, we're not 350 00:19:14,040 --> 00:19:16,760 Speaker 1: at the peaks yet. We think that when we get 351 00:19:17,000 --> 00:19:19,720 Speaker 1: this month's data, which will be in hand in March, 352 00:19:20,359 --> 00:19:24,000 Speaker 1: that that will show that we have rounded the corner. 353 00:19:24,119 --> 00:19:25,840 Speaker 1: So I think we're going to continue to see some 354 00:19:25,920 --> 00:19:29,560 Speaker 1: pressures here that are probably uncomfortable. So you think that 355 00:19:29,600 --> 00:19:32,440 Speaker 1: we're going to see peak inflation sooner rather than later 356 00:19:32,520 --> 00:19:36,240 Speaker 1: or is there more pain to come? Well, you know, Nathan, 357 00:19:36,320 --> 00:19:38,280 Speaker 1: it's still going to be painful, right, But that it 358 00:19:38,480 --> 00:19:42,080 Speaker 1: is that it will be slowing. The pace of increase 359 00:19:42,560 --> 00:19:45,919 Speaker 1: will be slowing. And we think that says we around 360 00:19:45,960 --> 00:19:48,320 Speaker 1: the corner when we get that data in March and 361 00:19:48,400 --> 00:19:51,119 Speaker 1: start heading towards the second quarter. UM. It's not that 362 00:19:51,320 --> 00:19:53,560 Speaker 1: we can breathe a sigh of relief. It will look like, Okay, 363 00:19:53,680 --> 00:19:56,760 Speaker 1: this is one data point, We'll need a string of them. Um. 364 00:19:56,880 --> 00:19:59,720 Speaker 1: But a lot of the leading indicators are pointing to 365 00:20:00,000 --> 00:20:04,159 Speaker 1: inflation having peaked, and especially we can see from our 366 00:20:04,160 --> 00:20:09,200 Speaker 1: Global Supply Chains Index that the peak bottlenecks occurred in 367 00:20:09,280 --> 00:20:11,440 Speaker 1: the fourth quarter, but it takes time to start to 368 00:20:11,520 --> 00:20:15,000 Speaker 1: work through the system. So we're still talking about inflation 369 00:20:15,119 --> 00:20:18,640 Speaker 1: being incredibly high, even you know, as we get into 370 00:20:18,680 --> 00:20:22,280 Speaker 1: the middle of the year. But really appreciate your insights, Allen, 371 00:20:22,320 --> 00:20:24,800 Speaker 1: thanks again for being with us. Allen Zentner, Chief US 372 00:20:24,840 --> 00:20:28,560 Speaker 1: economist at Morgan Stanley. Karen, sorry, Nathan, thank you. We 373 00:20:28,600 --> 00:20:31,200 Speaker 1: are coming up to six thirty on Wall Street. Good morning. 374 00:20:31,320 --> 00:20:34,480 Speaker 1: I'm Karen Moscow along with Nathan Hagar, and we're just 375 00:20:34,560 --> 00:20:37,000 Speaker 1: about three hours away from the open of US trading. 376 00:20:37,080 --> 00:20:39,040 Speaker 1: Time for the five things you need to notice start 377 00:20:39,160 --> 00:20:43,000 Speaker 1: your day. Brought to you by Interactive Brokers. I b 378 00:20:43,160 --> 00:20:46,600 Speaker 1: k Our investment advisers switched to Interactive Brokers for lowest 379 00:20:46,640 --> 00:20:50,879 Speaker 1: cost global trading and turnkey custody solutions, no ticket charges 380 00:20:50,960 --> 00:20:53,399 Speaker 1: and no conflicts of your interests at ib k R 381 00:20:53,480 --> 00:20:57,560 Speaker 1: dot com slash r i a up first. Global stocks 382 00:20:57,600 --> 00:21:00,960 Speaker 1: are rising after reports at Russia's pulling back troops from Ukraine. 383 00:21:01,000 --> 00:21:04,760 Speaker 1: According to local media, Russia's defense ministry says some units 384 00:21:04,800 --> 00:21:07,960 Speaker 1: will return to their basis after completing drills in the region. 385 00:21:08,280 --> 00:21:10,840 Speaker 1: That's led to a relief rally on Wall Street. Wakim 386 00:21:10,880 --> 00:21:15,040 Speaker 1: Clement is head of investment Strategy at Liberium Capital. The 387 00:21:15,160 --> 00:21:18,880 Speaker 1: market is launching what looks like a classic relief rally 388 00:21:19,000 --> 00:21:22,359 Speaker 1: this morning. It's basically pot based rally by now, with 389 00:21:22,680 --> 00:21:26,680 Speaker 1: the energy sector the least beneficial of this given the 390 00:21:26,880 --> 00:21:30,640 Speaker 1: declining oil prices, and Wakium Clement at Liberium Capital says 391 00:21:30,680 --> 00:21:32,800 Speaker 1: crude is coming off an eight year high this morning 392 00:21:32,840 --> 00:21:35,720 Speaker 1: and checking prices now NIME ex Scrude oil is down 393 00:21:35,840 --> 00:21:38,400 Speaker 1: three percent. It's a ninety two dollars fifty nine cents 394 00:21:38,400 --> 00:21:40,879 Speaker 1: of barrel. Brent is down two point eight percent at 395 00:21:40,960 --> 00:21:43,760 Speaker 1: ninety three dollars eighty cents. Well, markets certainly have been 396 00:21:43,800 --> 00:21:47,040 Speaker 1: affected by geopolitical tensions, Karen, But there are other factors 397 00:21:47,160 --> 00:21:50,359 Speaker 1: not fully priced in yet. According to Federated Global Chief 398 00:21:50,400 --> 00:21:55,000 Speaker 1: equity strategists Phill Orlando, I think playing defense is absolutely 399 00:21:55,119 --> 00:21:58,840 Speaker 1: worked one right here to use the football analogy. And 400 00:21:58,880 --> 00:22:03,199 Speaker 1: it's not just risk. You've got this fighting inflation UH 401 00:22:03,359 --> 00:22:08,639 Speaker 1: to forty year highs. We're bracing for a significant hawk 402 00:22:08,840 --> 00:22:12,840 Speaker 1: is change in Feller reserve policy. Federated Global's Fill Orlando 403 00:22:12,920 --> 00:22:15,360 Speaker 1: says a drop of ten to twenty percent for equities 404 00:22:15,480 --> 00:22:19,400 Speaker 1: is quote probably a healthy correction. Well, speaking of inflation concerns, Nathan, 405 00:22:19,480 --> 00:22:22,439 Speaker 1: we get another reading on US prices this morning. Economist 406 00:22:22,480 --> 00:22:26,080 Speaker 1: forecast January's producer price index rose nine point one percent 407 00:22:26,440 --> 00:22:28,959 Speaker 1: on a year over year basis. That data is out 408 00:22:28,960 --> 00:22:31,080 Speaker 1: at eight thirty am Wall Street time. I mean the 409 00:22:31,240 --> 00:22:33,440 Speaker 1: M and A front. This morning, Intel has agreed to 410 00:22:33,480 --> 00:22:36,639 Speaker 1: acquire Tower Semiconductor for about five point four billion dollars, 411 00:22:36,720 --> 00:22:40,520 Speaker 1: part of the companies push into the outsourced chip manufacturing business. 412 00:22:40,560 --> 00:22:43,639 Speaker 1: Intel's up about one percent in early trading, and Nathan, 413 00:22:43,720 --> 00:22:46,600 Speaker 1: Wall Street banks are also in the spotlight. There's word 414 00:22:46,680 --> 00:22:49,480 Speaker 1: that U S authorities are scrutinizing how Morgan Stanley and 415 00:22:49,560 --> 00:22:52,760 Speaker 1: other big banks handle block trades. Bloomberg News has learned 416 00:22:52,800 --> 00:22:55,760 Speaker 1: it's part of a long running probe into stock transactions 417 00:22:55,800 --> 00:22:58,800 Speaker 1: typically big enough to move markets. Neither the government nor 418 00:22:58,920 --> 00:23:01,840 Speaker 1: Morgan Stanley are commenting. And that's the five things you 419 00:23:01,960 --> 00:23:04,080 Speaker 1: need to notice start your day. Brought to you by 420 00:23:04,520 --> 00:23:08,440 Speaker 1: Interactive Brokers. Futures are moving higher this morning. S and 421 00:23:08,480 --> 00:23:12,200 Speaker 1: P futures up ninety two points, now futures three hundred 422 00:23:12,280 --> 00:23:15,840 Speaker 1: seventy and NASDACK futures up two hundred seventy nine. That's 423 00:23:15,880 --> 00:23:19,439 Speaker 1: up almost two percent. Ten. Your treasury down thirteen thirty seconds, 424 00:23:19,520 --> 00:23:21,520 Speaker 1: the l two point oh three percent, and the yield 425 00:23:21,600 --> 00:23:24,520 Speaker 1: on the two year one point five eight percent, and 426 00:23:24,640 --> 00:23:26,960 Speaker 1: the euro one point one three four six against the 427 00:23:27,000 --> 00:23:30,480 Speaker 1: dollar Bitcoin forty four thousand, two hundred dollars. Straight to head, 428 00:23:30,520 --> 00:23:33,080 Speaker 1: your latest local headlines, plus the check of sports. This 429 00:23:33,680 --> 00:23:39,920 Speaker 1: is Bloomberg. All right, Karen, thank you. It is six 430 00:23:40,440 --> 00:23:42,760 Speaker 1: on Wall streets, still at seventeen degrees in Central Park 431 00:23:42,800 --> 00:23:45,439 Speaker 1: today is building on the g WB. Details coming up 432 00:23:45,480 --> 00:23:47,960 Speaker 1: in traffic. First John Tucker with more on what's going 433 00:23:48,000 --> 00:23:49,920 Speaker 1: on in New York and around the world. Good morning, John, 434 00:23:50,000 --> 00:23:53,440 Speaker 1: Good morning Nathan, the Trump organization's accounting firm says it 435 00:23:53,480 --> 00:23:56,960 Speaker 1: will no longer stand by the financial statements for Donald Trump. 436 00:23:57,359 --> 00:24:00,840 Speaker 1: The story this morning from Bloomberg's Kaylee lions the firm. 437 00:24:00,920 --> 00:24:04,120 Speaker 1: Maser says a decade of financial statements for Donald Trump 438 00:24:04,240 --> 00:24:06,520 Speaker 1: can't be relied upon and that it won't do any 439 00:24:06,600 --> 00:24:09,480 Speaker 1: new work for the company. A declaration by an accounting 440 00:24:09,520 --> 00:24:11,880 Speaker 1: firm that it is dropping a client and backing away 441 00:24:11,960 --> 00:24:16,000 Speaker 1: from prior financial statements is historically a red flag for investors, lenders, 442 00:24:16,119 --> 00:24:19,000 Speaker 1: or other parties that a company's financial condition is not 443 00:24:19,200 --> 00:24:21,760 Speaker 1: what it appears. It also can be a signal to 444 00:24:21,800 --> 00:24:25,240 Speaker 1: regulators and other authorities that wrongdoing may have occurred. It 445 00:24:25,359 --> 00:24:28,159 Speaker 1: comes as New York's Attorney general is investigating what she 446 00:24:28,240 --> 00:24:31,600 Speaker 1: says was a pattern of potential fraud involving the manipulation 447 00:24:31,720 --> 00:24:36,040 Speaker 1: of valuations of key Trump properties. Kaylee Lines, Bloomberg Debrey, 448 00:24:36,119 --> 00:24:39,680 Speaker 1: New York Governor Kathy Hoklan Mayor Eric Adams are denouncing 449 00:24:39,720 --> 00:24:42,080 Speaker 1: the murder of thirty five year old Christina Lee as 450 00:24:42,119 --> 00:24:44,399 Speaker 1: the latest in the string of attacks on people of 451 00:24:44,600 --> 00:24:47,719 Speaker 1: Asian descent. Please say she was stamped at death inside 452 00:24:47,760 --> 00:24:51,040 Speaker 1: her Lower Manhattan apartment by a homeless man who followed 453 00:24:51,080 --> 00:24:54,200 Speaker 1: her from the street into her building. Residents gathered in 454 00:24:54,359 --> 00:24:57,359 Speaker 1: Chinatown to remember her and speak out against the killing. 455 00:24:57,960 --> 00:25:01,359 Speaker 1: As a father five daughters escape as to even know 456 00:25:01,600 --> 00:25:04,359 Speaker 1: that these kind of incidents they're carrying out there. The 457 00:25:04,480 --> 00:25:07,600 Speaker 1: killing happened weeks enter, another woman of Asian descent was 458 00:25:07,720 --> 00:25:09,159 Speaker 1: killed by a man who pushed her in front of 459 00:25:09,200 --> 00:25:13,600 Speaker 1: an oncoming subway train at the Times Square station. Demonstrators 460 00:25:13,640 --> 00:25:16,800 Speaker 1: against vaccine mandates haulted traffic at two major border crossings 461 00:25:16,840 --> 00:25:20,720 Speaker 1: in Western Canada, even as Prime Minister Justin Trudeau used 462 00:25:20,720 --> 00:25:24,520 Speaker 1: a law giving his government emergency powers to end blockades. 463 00:25:25,000 --> 00:25:28,240 Speaker 1: The main border post in Alberta and Manitoba were closed, 464 00:25:28,520 --> 00:25:31,000 Speaker 1: with a commercial traffic to the US blocked by semi 465 00:25:31,040 --> 00:25:34,679 Speaker 1: trailers and farm equipment. New York City fire more than 466 00:25:34,720 --> 00:25:37,159 Speaker 1: a thousand workers who failed to comply with the city's 467 00:25:37,200 --> 00:25:41,159 Speaker 1: COVID nineteen vaccine mandate. The over fourteen hundred workers who 468 00:25:41,359 --> 00:25:44,200 Speaker 1: lost their jobs represent less than one percent of the 469 00:25:44,240 --> 00:25:48,280 Speaker 1: city workforce and are far fewer terminations than expected. The 470 00:25:48,359 --> 00:25:51,120 Speaker 1: city sent notices in late January up to four thousand 471 00:25:51,200 --> 00:25:53,639 Speaker 1: workers saying they had to show proof they got at 472 00:25:53,720 --> 00:25:56,440 Speaker 1: least two doses of the vaccine or else they'd lose 473 00:25:56,520 --> 00:25:59,440 Speaker 1: their jobs. Of those fire at sixty four percent work 474 00:25:59,480 --> 00:26:02,480 Speaker 1: for the city's education department. And the judge says he'll 475 00:26:02,520 --> 00:26:06,080 Speaker 1: dismiss a libel lawsuit that former Alaska Governor Sarah Palin 476 00:26:06,480 --> 00:26:09,159 Speaker 1: filed against The New York Times. The judge math the 477 00:26:09,240 --> 00:26:13,119 Speaker 1: announcement well a jury continued to deliberate globally. Is twenty 478 00:26:13,160 --> 00:26:15,320 Speaker 1: four hours a day on Aerin on Bloomberg Quick Take, 479 00:26:15,440 --> 00:26:18,600 Speaker 1: power Blind, more than twenty seven hundred journalists and analysts. 480 00:26:18,960 --> 00:26:22,200 Speaker 1: It more than one hundred twenty countries. I'm John Tucker 481 00:26:22,840 --> 00:26:29,719 Speaker 1: is Bloomberg. Nathan all right, John, thank you coming out 482 00:26:29,760 --> 00:26:31,960 Speaker 1: to six thirty six on Wall Street. And John Sanshire 483 00:26:32,000 --> 00:26:34,800 Speaker 1: has the Bloomberg Sports Update next day than another blown lead, 484 00:26:34,800 --> 00:26:37,080 Speaker 1: another loss, So more of the same for the NIXT 485 00:26:37,160 --> 00:26:39,080 Speaker 1: dent the Garden. They let Oklahoma City most of the 486 00:26:39,119 --> 00:26:42,480 Speaker 1: way at one point by eleven, thunder came back one seven, 487 00:26:42,560 --> 00:26:45,680 Speaker 1: one three and overtime. Okay, see the worst offense and 488 00:26:45,720 --> 00:26:48,000 Speaker 1: team of the NBA, and they were without their top 489 00:26:48,080 --> 00:26:50,640 Speaker 1: two scores, and yet they had little trouble storing against 490 00:26:50,680 --> 00:26:54,040 Speaker 1: the Naked especially their rookies trade Man and John Gidey, 491 00:26:54,080 --> 00:26:57,080 Speaker 1: who combined for fifty eight points. Julius Randall had thirty 492 00:26:57,119 --> 00:26:59,239 Speaker 1: in his first triple double the year. Manuel quickly had 493 00:26:59,240 --> 00:27:01,280 Speaker 1: a chance to send the game to a second O 494 00:27:01,400 --> 00:27:03,840 Speaker 1: team MR Game time three and the Knicks have now 495 00:27:03,960 --> 00:27:07,000 Speaker 1: lost nine of their last eleven. Their coach is Tom Thibodeau. 496 00:27:07,800 --> 00:27:11,080 Speaker 1: The Oacahoma City's playing hard for playing well that you know, 497 00:27:11,160 --> 00:27:13,080 Speaker 1: the Chicago geting the head to leave most of the game, 498 00:27:13,280 --> 00:27:15,960 Speaker 1: you know, the same thing. So we knew we were 499 00:27:15,960 --> 00:27:17,639 Speaker 1: gonna be challenge for the thing that they do well. 500 00:27:17,680 --> 00:27:21,000 Speaker 1: As they tried the ball uh into the paint very effectively. 501 00:27:21,800 --> 00:27:24,399 Speaker 1: So when we got the challenge for us, you know, 502 00:27:24,520 --> 00:27:28,080 Speaker 1: the guards set into the paint created heaven and it 503 00:27:28,240 --> 00:27:30,600 Speaker 1: was a problem. So it's the Nets tomorrow night. Next 504 00:27:30,640 --> 00:27:33,760 Speaker 1: blew out Sacramento at Parkley's one O nine five. Finally 505 00:27:33,800 --> 00:27:36,200 Speaker 1: end they're losing speak at eleven. Bruce Brown led the 506 00:27:36,280 --> 00:27:38,320 Speaker 1: Nets nineteen point six to Weet down and six, says 507 00:27:38,440 --> 00:27:40,680 Speaker 1: James Harden, just traded by the Nets to Philadelphia, will 508 00:27:40,680 --> 00:27:43,400 Speaker 1: not debut for the Sixers until after the All Star 509 00:27:43,520 --> 00:27:45,640 Speaker 1: break due to his hamstring injury, and he's also out 510 00:27:45,720 --> 00:27:49,520 Speaker 1: of Sunday's All Star Game, replaced by Cleveland center Jared Allen. 511 00:27:49,600 --> 00:27:52,320 Speaker 1: The Nets traded Allen last year as part of the 512 00:27:52,359 --> 00:27:54,720 Speaker 1: deal began Hard. Rangers finally back on the ice tonight, 513 00:27:54,760 --> 00:27:57,600 Speaker 1: their first game in two weeks. They host Boston Odell Beckham, 514 00:27:57,640 --> 00:28:00,280 Speaker 1: who had messy divorces with the Giants, and the Round 515 00:28:00,680 --> 00:28:03,040 Speaker 1: gets the Super Bowl ring with the Rams without knee 516 00:28:03,080 --> 00:28:06,400 Speaker 1: injury suffering. Sunday is reportedly a torn ad l which 517 00:28:06,440 --> 00:28:08,760 Speaker 1: would be the second in three years on the same knee, 518 00:28:08,840 --> 00:28:11,600 Speaker 1: and Becan is going to be a free agent. Johns 519 00:28:11,600 --> 00:28:15,600 Speaker 1: Ferisht Bloomberg Sports, All right, John, thank you sixty seven 520 00:28:15,640 --> 00:28:17,240 Speaker 1: on Wall Street. Time to take a look at stock, 521 00:28:17,359 --> 00:28:19,600 Speaker 1: some of the names moving in the pre market. Bloomberg 522 00:28:19,680 --> 00:28:23,000 Speaker 1: Radio on TV Markets correspondent Creedy Gupta is with us 523 00:28:23,080 --> 00:28:26,480 Speaker 1: on a risk on morning on geo politics. But a 524 00:28:26,560 --> 00:28:30,160 Speaker 1: lot going on in the chip space this morning, Creedy, Yeah, 525 00:28:30,200 --> 00:28:32,359 Speaker 1: good morning, Nathan. You are seeing some green on the 526 00:28:32,400 --> 00:28:34,119 Speaker 1: screen when it comes to the broader market. But to 527 00:28:34,240 --> 00:28:36,200 Speaker 1: your point, oh so, I'm an a action happening in 528 00:28:36,200 --> 00:28:39,240 Speaker 1: the chip space. Let's start off here with Intel agreeing 529 00:28:39,320 --> 00:28:42,760 Speaker 1: to acquire Tower semi conductor this is a basically a 530 00:28:42,800 --> 00:28:46,000 Speaker 1: circuit maker of four semi conductors. Is the Israeli company 531 00:28:46,360 --> 00:28:49,240 Speaker 1: in the deal for about five point four billion dollars. 532 00:28:49,320 --> 00:28:52,760 Speaker 1: As part of CEO, pat Gel Singers pushed into outsourcing 533 00:28:53,120 --> 00:28:57,440 Speaker 1: the chip manufacturing business. So Intel investor seeming very happy 534 00:28:57,800 --> 00:29:00,080 Speaker 1: with that news. I n TC is your taker one 535 00:29:00,080 --> 00:29:03,240 Speaker 1: and a half percent. Now, Tower Semiconductor doesn't trade on 536 00:29:03,320 --> 00:29:06,120 Speaker 1: the US exchange. It does trade on the Israeli exchange, 537 00:29:06,440 --> 00:29:09,080 Speaker 1: and it is rallying about forty percent on that t. 538 00:29:09,560 --> 00:29:12,760 Speaker 1: S E M space I T is the ticker for 539 00:29:12,920 --> 00:29:15,520 Speaker 1: that stock, but it's not the only deal in towns 540 00:29:15,600 --> 00:29:19,280 Speaker 1: move from chips over up two drinks? Why not? Post 541 00:29:19,320 --> 00:29:22,640 Speaker 1: Super Bowl talks between Monster Beverage is the maker of 542 00:29:22,760 --> 00:29:26,560 Speaker 1: energy drinks of course, UM and Corona Brewer Constellation Brands 543 00:29:26,800 --> 00:29:29,960 Speaker 1: about a combination while those talks are progressing us according 544 00:29:30,040 --> 00:29:33,160 Speaker 1: to people familiar with the matter, UM coming from Bloomberg reporting, 545 00:29:33,200 --> 00:29:35,280 Speaker 1: of course, So M n s T which is Monster 546 00:29:35,400 --> 00:29:38,800 Speaker 1: Beverage up three percent, Coca Cola, which I believe has 547 00:29:38,800 --> 00:29:41,360 Speaker 1: a steak in Monster Beverage KO up five tenths of 548 00:29:41,400 --> 00:29:45,520 Speaker 1: a percent, and Constellation Brands STZ down one tenth of 549 00:29:45,560 --> 00:29:47,080 Speaker 1: a percent. But you're not seeing a ton of volume 550 00:29:47,120 --> 00:29:48,840 Speaker 1: in the stocks though, so keep an eye on it, 551 00:29:49,240 --> 00:29:52,760 Speaker 1: all right, we'll do. And also seeing some surges on 552 00:29:53,120 --> 00:29:56,480 Speaker 1: earnings as well. Yeah, the earnings are still rolling in. 553 00:29:56,880 --> 00:29:59,600 Speaker 1: Arista Networks is the big one here. The shares are 554 00:29:59,680 --> 00:30:02,320 Speaker 1: jump being about just as I have ten nine point 555 00:30:02,400 --> 00:30:05,520 Speaker 1: nine percent in pre market trading. This comes after, of course, 556 00:30:05,560 --> 00:30:08,640 Speaker 1: the cloud networking company gives a quarterly revenue forecast that 557 00:30:08,800 --> 00:30:12,080 Speaker 1: exceeds those analysts expectations. A n E T is your 558 00:30:12,080 --> 00:30:15,840 Speaker 1: ticker there. Um. What's interesting is that the earnings kind 559 00:30:15,840 --> 00:30:18,520 Speaker 1: of reaction is so big, especially for a cloud networking company. 560 00:30:18,600 --> 00:30:21,040 Speaker 1: The standards are very high when it comes to cloud. 561 00:30:21,080 --> 00:30:23,840 Speaker 1: I'm gonna end here, Nathan, within another company once again, 562 00:30:23,840 --> 00:30:26,400 Speaker 1: we're gonna go full circle back to Semi's with of course, 563 00:30:26,480 --> 00:30:28,880 Speaker 1: a note coming out from Cowen, which does rate advanced 564 00:30:28,960 --> 00:30:32,200 Speaker 1: micro Devices a m D outperform, saying that the focus 565 00:30:32,280 --> 00:30:35,040 Speaker 1: is shifting to solid, long term and multiple growth factors 566 00:30:35,120 --> 00:30:39,640 Speaker 1: now that the semiconductor company has completed its Silent acquisition. 567 00:30:39,720 --> 00:30:42,560 Speaker 1: So those words of confidence fueling a m D shares 568 00:30:42,640 --> 00:30:45,120 Speaker 1: this morning up four percent in the pre market. Nathan, 569 00:30:45,400 --> 00:30:47,920 Speaker 1: what's going on? In chips. Okay, Bloomberg Radio and TV 570 00:30:48,040 --> 00:30:51,200 Speaker 1: Markets correspondent create Coopeda with the pre market update and 571 00:30:51,320 --> 00:30:53,000 Speaker 1: as we take a look at stocks as a whole 572 00:30:53,400 --> 00:30:56,240 Speaker 1: ahead of the open on this Tuesday morning. Definitely risk 573 00:30:56,360 --> 00:31:01,320 Speaker 1: on on geopolitics. Positive headlines coming out of the crisis 574 00:31:01,440 --> 00:31:04,040 Speaker 1: over Ukraine. Right now, SMP futures are up sixty four 575 00:31:04,080 --> 00:31:07,160 Speaker 1: points down, features up, cream at seventy nine, Nasdaq futures 576 00:31:07,200 --> 00:31:10,160 Speaker 1: leading the games right now two points or two percent. 577 00:31:10,280 --> 00:31:13,400 Speaker 1: The tender Treasury down fifteen thirty seconds, with the yield 578 00:31:13,440 --> 00:31:16,920 Speaker 1: close to two point zero four per cent. You're listening 579 00:31:16,960 --> 00:31:24,200 Speaker 1: to Bloomberg Daybreak number eleven three oh weather sunshine, low 580 00:31:24,320 --> 00:31:27,880 Speaker 1: thirties today, upper forties by tomorrow with a breeze, could 581 00:31:27,920 --> 00:31:30,480 Speaker 1: have some afternoon showers at the high close to sixty 582 00:31:30,840 --> 00:31:40,600 Speaker 1: by Thursday. Right now seventeen degrees. Markets headlines and breaking 583 00:31:40,640 --> 00:31:43,520 Speaker 1: news twenty four hours a day at Bloomberg dot Com, 584 00:31:43,640 --> 00:31:47,280 Speaker 1: the Bloomberg Business and at Bloomberg Quick Tape. He's a 585 00:31:47,320 --> 00:31:56,600 Speaker 1: Bloomberg Business Flash and I'm Cameron Moscow. Any West. Nott 586 00:31:56,640 --> 00:32:00,840 Speaker 1: Index futures are jumping this morning. Nest Egg features are 587 00:32:00,920 --> 00:32:03,280 Speaker 1: higher by more than two percent. We got to the 588 00:32:03,320 --> 00:32:06,280 Speaker 1: first Word Breaking news desk for today's morning call. Here's 589 00:32:06,320 --> 00:32:09,560 Speaker 1: Bill Maloney, Bill, good morning, and good morning Ken. That's right. 590 00:32:09,640 --> 00:32:12,680 Speaker 1: US teachers are surging right now on reports that some 591 00:32:12,920 --> 00:32:16,560 Speaker 1: Russian troops are returning to their basis. Just currently up 592 00:32:16,600 --> 00:32:18,920 Speaker 1: four hundred points, says if he's gained sixty seven, well, 593 00:32:19,000 --> 00:32:22,920 Speaker 1: nasdeck features gained by three hundred and thirteen. The US 594 00:32:23,080 --> 00:32:25,240 Speaker 1: ten year the two point oh four percent, Gold is 595 00:32:25,280 --> 00:32:28,360 Speaker 1: down sixteen, Oil is under pressure, but bitcoin is up 596 00:32:28,400 --> 00:32:31,120 Speaker 1: by five percent up and markets are also in the 597 00:32:31,200 --> 00:32:33,000 Speaker 1: green this morning and back in the US on the 598 00:32:33,040 --> 00:32:37,360 Speaker 1: economic Frinday thirty, the producer price INDECKS and Empire Manufacturing 599 00:32:37,800 --> 00:32:40,360 Speaker 1: After the bellis night, Ariska Networks reported shares are up 600 00:32:40,400 --> 00:32:43,360 Speaker 1: ten percent pre market, and a deal news Intel agreed 601 00:32:43,440 --> 00:32:47,240 Speaker 1: to buy Tower Semiconductor for five point four billion. Wrapping 602 00:32:47,320 --> 00:32:50,120 Speaker 1: things up, A kosh was cut to inline over at 603 00:32:50,160 --> 00:32:53,040 Speaker 1: ever Corps Live from the first Breaking News thats gom 604 00:32:53,120 --> 00:32:55,200 Speaker 1: Bill malloney can all right, Bill, thank you to here 605 00:32:55,280 --> 00:32:57,600 Speaker 1: live breaking news of your Bloomberg type squawk on your 606 00:32:57,720 --> 00:33:00,320 Speaker 1: terminal scue. You a w K and that's a Bomberg 607 00:33:00,400 --> 00:33:03,040 Speaker 1: business flash. Now, Here's John Tucker with more on what's 608 00:33:03,080 --> 00:33:06,200 Speaker 1: going on around the world. John Good Morning, Karen Brushes. 609 00:33:06,280 --> 00:33:09,440 Speaker 1: Defense Ministry says some troops would return to their bases 610 00:33:09,920 --> 00:33:13,200 Speaker 1: if they're completing drills near the border with Ukraine. Elon 611 00:33:13,320 --> 00:33:16,360 Speaker 1: Muss gifted almost six billion dollars worth of Tesla stock 612 00:33:16,440 --> 00:33:20,240 Speaker 1: to charity. It's one of the largest philanthropic donations in history. 613 00:33:20,840 --> 00:33:24,440 Speaker 1: And demonstrators against vaccine mandates halted traffic at two major 614 00:33:24,520 --> 00:33:28,200 Speaker 1: border crossings in Western Canada, even as Prime Minister Trudeau 615 00:33:28,360 --> 00:33:32,320 Speaker 1: invoked emergency powers to end the blockades. And a sports 616 00:33:32,400 --> 00:33:35,560 Speaker 1: Nets and Wizards win, the Knicks and Warriors lose on 617 00:33:35,680 --> 00:33:38,360 Speaker 1: the ice, the Sharks fall to the oilers. We have 618 00:33:38,400 --> 00:33:40,560 Speaker 1: global news twenty four hours a day on the arand 619 00:33:40,560 --> 00:33:43,640 Speaker 1: on Bloomberg Quicktike. We're powered by more than twenty seven 620 00:33:43,720 --> 00:33:47,480 Speaker 1: hundred journalists and analysts. It more than one hundred twenty countries. 621 00:33:47,760 --> 00:33:50,720 Speaker 1: I'm John Tucker. This is Bloomberg. Karen, all right, John, 622 00:33:50,760 --> 00:33:52,880 Speaker 1: thank you. It is sixty nine on Wall Street, and 623 00:33:52,920 --> 00:33:55,280 Speaker 1: we turned to news and science and Technology Now with 624 00:33:55,360 --> 00:33:58,520 Speaker 1: a Bloomberg and j I t Stem report. It's run 625 00:33:58,600 --> 00:34:01,200 Speaker 1: to you buy New Jersey Insto Your Dove technology ranked 626 00:34:01,200 --> 00:34:04,360 Speaker 1: a top fifty national public university by US News and 627 00:34:04,440 --> 00:34:07,960 Speaker 1: World Report in a top fifty college for undergraduate entrepreneurship 628 00:34:08,080 --> 00:34:11,279 Speaker 1: studies by the Princeton Review. Learn more at n j I, 629 00:34:11,400 --> 00:34:15,600 Speaker 1: T dot ETU. Now Here's what's making news and science, Technology, engineering, 630 00:34:15,680 --> 00:34:18,840 Speaker 1: and math. Hong Kong said it's overwhelmed by a growing 631 00:34:18,880 --> 00:34:21,640 Speaker 1: O maicron outbreak, but there are no plans for a 632 00:34:21,719 --> 00:34:25,279 Speaker 1: citywide lockdown to bring the number of cases back to zero. 633 00:34:25,600 --> 00:34:27,880 Speaker 1: Hong Kong is searching for more hotels to use as 634 00:34:27,960 --> 00:34:32,080 Speaker 1: isolation facilities. The American West Mega drout deepen so much 635 00:34:32,200 --> 00:34:34,439 Speaker 1: last year that it's now the driest and at least 636 00:34:34,520 --> 00:34:37,399 Speaker 1: one thousand, two hundred years, and is the worst case 637 00:34:37,480 --> 00:34:41,520 Speaker 1: climate change scenario playing out live, according to a study 638 00:34:41,560 --> 00:34:44,320 Speaker 1: in the journal Nature, Climate Change, or Dramatic drawing in 639 00:34:45,120 --> 00:34:47,520 Speaker 1: one about as dry as two thousand two and one 640 00:34:47,560 --> 00:34:50,240 Speaker 1: of the driest years ever recorded for the region, pushed 641 00:34:50,239 --> 00:34:53,000 Speaker 1: the twenty two year drought past the previous record holder 642 00:34:53,040 --> 00:34:55,720 Speaker 1: for Mega droughts in the late fifteen hundreds. The study 643 00:34:55,760 --> 00:34:59,000 Speaker 1: calculated that forty of this Mega drout can be attributed 644 00:34:59,080 --> 00:35:03,160 Speaker 1: to human caused climate change, and Facebook claims it no 645 00:35:03,239 --> 00:35:07,120 Speaker 1: longer collects and profits off users faces through controversial facial 646 00:35:07,200 --> 00:35:11,000 Speaker 1: recognition technology. Texas isn't buying it, though the state student 647 00:35:11,040 --> 00:35:14,799 Speaker 1: Meta Platforms overclaims it's Facebook and Instagram platforms are still 648 00:35:14,880 --> 00:35:18,480 Speaker 1: monetizing people's faces without their consent, as well as holding 649 00:35:18,520 --> 00:35:22,840 Speaker 1: onto a facial geometry database compiled over a decade. Metas 650 00:35:23,480 --> 00:35:26,240 Speaker 1: says the claims are without merit, and as the Bloomberg 651 00:35:26,360 --> 00:35:29,320 Speaker 1: and j I t Stem report. Nathan, Thank you, Karen 652 00:35:29,360 --> 00:35:32,000 Speaker 1: more live from the Bloomberg Interactive Brokers studios where at 653 00:35:32,040 --> 00:35:34,399 Speaker 1: six fifty on Wall Street Time Now to check what's 654 00:35:34,400 --> 00:35:36,479 Speaker 1: going on in d C. Some of the top stories 655 00:35:36,520 --> 00:35:38,759 Speaker 1: in our nation's capital include the Senate waiting support for 656 00:35:38,880 --> 00:35:41,640 Speaker 1: Ukraine as Russia reportedly pulls some troops back, the White 657 00:35:41,680 --> 00:35:44,200 Speaker 1: House looking to avoid gas price shocks in the event 658 00:35:44,239 --> 00:35:48,360 Speaker 1: of an invasion, and President Biden's team apparently seeing limits 659 00:35:48,480 --> 00:35:51,680 Speaker 1: to trade talks with China. For more, we're joined from 660 00:35:51,719 --> 00:35:54,520 Speaker 1: our Bloomberg Gang nine one studios in the nation's capital 661 00:35:54,560 --> 00:35:57,520 Speaker 1: by Bloomberg Washington correspondent Joe Matthew the most of Bloomberg 662 00:35:57,640 --> 00:36:00,120 Speaker 1: Sound On. Joe. Great to have you with us this 663 00:36:00,280 --> 00:36:02,880 Speaker 1: morning as we're seeing a relief rally from markets on 664 00:36:02,960 --> 00:36:05,640 Speaker 1: these reports that Russia could be pulling Trump some troops back. 665 00:36:05,760 --> 00:36:08,000 Speaker 1: What's the level of relief at the White House and 666 00:36:08,080 --> 00:36:10,600 Speaker 1: on Capitol Hill. Well, it's a good question. Everyone's waking 667 00:36:10,680 --> 00:36:12,960 Speaker 1: up to these headlines. There's just been a stream of 668 00:36:13,040 --> 00:36:16,840 Speaker 1: headlines on the terminal here coming from Moscow this morning, Nathan, 669 00:36:16,920 --> 00:36:19,640 Speaker 1: and it's it's about withdrawal. This is good. This is 670 00:36:19,800 --> 00:36:23,080 Speaker 1: the exact type of scenario that we have been hoping for. 671 00:36:23,320 --> 00:36:26,120 Speaker 1: But you know, there is a great deal of distrust 672 00:36:26,200 --> 00:36:28,200 Speaker 1: when it comes to Vladimir Putin, so we're gonna have 673 00:36:28,320 --> 00:36:31,200 Speaker 1: to wait to see actions beyond words here. And also 674 00:36:31,320 --> 00:36:33,160 Speaker 1: keep in mind that while some of the drills have 675 00:36:33,440 --> 00:36:37,040 Speaker 1: ended here and units from Russia's Western and Southern military 676 00:36:37,120 --> 00:36:39,960 Speaker 1: districts are apparently packing up their equipment. They're loading trains, 677 00:36:40,000 --> 00:36:42,959 Speaker 1: the Washington Post reminds us there are still some major 678 00:36:43,040 --> 00:36:45,759 Speaker 1: drills left. More than thirty Russian Navy ships are doing 679 00:36:45,880 --> 00:36:49,879 Speaker 1: live fire exercises in the Black Sea, complete with air cover, 680 00:36:50,080 --> 00:36:52,400 Speaker 1: which does not sound like they're packing up their toys 681 00:36:52,440 --> 00:36:54,719 Speaker 1: here as they prepare for what's being described as a 682 00:36:54,840 --> 00:36:58,320 Speaker 1: major naval exercise. Nathan, Russia has about forty ships and 683 00:36:58,400 --> 00:37:01,360 Speaker 1: total in the Black Sea about five hundred combat aircraft 684 00:37:01,440 --> 00:37:04,319 Speaker 1: within range of Ukraine. So this is not over yet. 685 00:37:04,960 --> 00:37:07,480 Speaker 1: But if we see a continuation, according to circular av 686 00:37:07,560 --> 00:37:10,279 Speaker 1: Rov this beginning of a pullback, this could be a 687 00:37:10,440 --> 00:37:13,840 Speaker 1: very important day for geopolitics. Now, obviously we've seen a 688 00:37:13,920 --> 00:37:17,040 Speaker 1: lot of headlines, as you say, across the Bloomberg terminal 689 00:37:17,200 --> 00:37:23,120 Speaker 1: overnight after we got briefing on Capitol Hill from White 690 00:37:23,160 --> 00:37:25,800 Speaker 1: House National Security Advisor Jake Sullivan. Do we know what 691 00:37:25,960 --> 00:37:28,840 Speaker 1: came out of that? And what about this intelligence that 692 00:37:29,080 --> 00:37:32,400 Speaker 1: Russia could invade as soon as this week? Well, you know, 693 00:37:32,560 --> 00:37:35,520 Speaker 1: that's what we had been hearing that there were reports, 694 00:37:35,600 --> 00:37:37,920 Speaker 1: at least this did not come from Bloomberg, but reports 695 00:37:37,960 --> 00:37:40,000 Speaker 1: that it would be Tuesday, that it might be Wednesday, 696 00:37:40,040 --> 00:37:44,440 Speaker 1: and in fact, uh President Zelenski in in Ukraine actually 697 00:37:44,480 --> 00:37:47,160 Speaker 1: made a joke about that yesterday, which turned the markets 698 00:37:47,200 --> 00:37:49,799 Speaker 1: as he was being ironic about making Wednesday a day 699 00:37:49,840 --> 00:37:51,719 Speaker 1: of unity since everyone seems to know when this is 700 00:37:51,760 --> 00:37:54,200 Speaker 1: going to happen. Look, that was best based on the 701 00:37:54,320 --> 00:37:57,520 Speaker 1: best intelligence we had with regard to what we were 702 00:37:57,600 --> 00:38:01,120 Speaker 1: hearing through back channels, and also knowing that Russia has 703 00:38:01,320 --> 00:38:04,560 Speaker 1: a window here to operate if they were to invade, 704 00:38:04,560 --> 00:38:06,760 Speaker 1: they need to do that while the ground is still frozen. 705 00:38:07,360 --> 00:38:10,200 Speaker 1: And it's a very expensive Endeavornath in keeping a hundred 706 00:38:10,239 --> 00:38:14,480 Speaker 1: and thirty thousand troops at combat ready UH positions on 707 00:38:14,600 --> 00:38:18,160 Speaker 1: the border with Ukraine. Just feeding all of those soldiers 708 00:38:18,320 --> 00:38:21,359 Speaker 1: is in itself a major outlay from Moscow. So there 709 00:38:21,480 --> 00:38:23,399 Speaker 1: is a thought here, or at least there has been, 710 00:38:23,480 --> 00:38:24,920 Speaker 1: that if it was going to happen, it would be 711 00:38:24,920 --> 00:38:27,000 Speaker 1: in the next week or two. It makes you wonder 712 00:38:27,200 --> 00:38:31,680 Speaker 1: whether this warning, these threats of UH, you know, untested 713 00:38:31,920 --> 00:38:35,320 Speaker 1: sanctions against Russia, were there to be an invasion or 714 00:38:35,400 --> 00:38:39,160 Speaker 1: even before might have gotten through. What's the thinking in 715 00:38:39,320 --> 00:38:41,960 Speaker 1: Washington is to the kind of pressure that the West 716 00:38:42,000 --> 00:38:44,799 Speaker 1: has been putting on putin Well, look, it's all coming 717 00:38:44,840 --> 00:38:46,880 Speaker 1: to a head today with the new chancellor from Germany. 718 00:38:46,960 --> 00:38:49,560 Speaker 1: He's there now, he's in Moscow. All Off Scholtz will 719 00:38:49,640 --> 00:38:53,040 Speaker 1: be meeting with his counterpart in Russia. And this is 720 00:38:53,080 --> 00:38:55,919 Speaker 1: a very critical conversation. It was exactly a week ago 721 00:38:56,000 --> 00:38:58,040 Speaker 1: that he was here in the US at the White House, 722 00:38:58,520 --> 00:39:00,800 Speaker 1: and you remember the questions, some of which we're not answered, 723 00:39:00,800 --> 00:39:03,040 Speaker 1: at least in the way that reporters wanted him to 724 00:39:03,400 --> 00:39:06,440 Speaker 1: to fully support the end of Nord's dream too if 725 00:39:06,480 --> 00:39:09,120 Speaker 1: there were a Russian invasion. President Biden's actually had to 726 00:39:09,160 --> 00:39:11,960 Speaker 1: finish his answer for him, saying that, yeah, that thing 727 00:39:12,080 --> 00:39:15,200 Speaker 1: is dead if Russia crosses the border. Uh, this is 728 00:39:15,280 --> 00:39:18,080 Speaker 1: going to be a critically important meeting today with Schultz 729 00:39:18,160 --> 00:39:20,080 Speaker 1: and Putin in the room. Is this the meeting that 730 00:39:20,640 --> 00:39:23,120 Speaker 1: that sets the off ramp is the big question right now. 731 00:39:23,280 --> 00:39:26,479 Speaker 1: Leon Panetta was telling Bloomberg yesterday on Balance of Power 732 00:39:26,560 --> 00:39:28,799 Speaker 1: with David Weston that Putin is looking for any crack 733 00:39:28,880 --> 00:39:32,960 Speaker 1: in the alliance. If he does not find it, Chancellor 734 00:39:33,000 --> 00:39:35,799 Speaker 1: Schultz could find himself in a very important position here 735 00:39:35,840 --> 00:39:39,160 Speaker 1: to steer Vladimir Putin off of this road and to 736 00:39:39,280 --> 00:39:42,239 Speaker 1: one toward a diplomatic solution. Yeah, it's gonna be very 737 00:39:42,320 --> 00:39:46,480 Speaker 1: interesting to continue watching as these diplomatic efforts continue. And 738 00:39:46,600 --> 00:39:49,880 Speaker 1: speaking of Joe, we've got some new developments when it 739 00:39:50,000 --> 00:39:53,720 Speaker 1: comes to trade talks between the US and China, Indications 740 00:39:53,840 --> 00:39:57,160 Speaker 1: that the Biden administration maybe running out of patients. Yeah, 741 00:39:57,239 --> 00:39:58,960 Speaker 1: it might be time to turn away from this one. 742 00:39:59,040 --> 00:40:02,040 Speaker 1: I mean, we're going to continue talking. According to our 743 00:40:02,080 --> 00:40:04,520 Speaker 1: White House team, Jenny Leonard reporting on the terminal that 744 00:40:05,280 --> 00:40:07,879 Speaker 1: officials are running out of patients and may, in fact 745 00:40:08,760 --> 00:40:12,000 Speaker 1: just just turn away from the talks that we were 746 00:40:12,480 --> 00:40:14,960 Speaker 1: uh involved in here. This is about the Phase one 747 00:40:15,040 --> 00:40:18,359 Speaker 1: deal that was just about this time last week, making 748 00:40:18,400 --> 00:40:20,759 Speaker 1: news that China has tens of millions of dollars short 749 00:40:20,920 --> 00:40:23,640 Speaker 1: on on some of the the exports they were set 750 00:40:23,719 --> 00:40:26,560 Speaker 1: to buy. US Trade Representative Katherine's high has been all 751 00:40:26,600 --> 00:40:29,920 Speaker 1: over this say she wants to focus on her negotiations 752 00:40:30,360 --> 00:40:33,880 Speaker 1: with Beijing, as the administration stresses the trade deal does 753 00:40:33,960 --> 00:40:37,800 Speaker 1: not address our concerns with China's state led economic system. 754 00:40:38,200 --> 00:40:41,440 Speaker 1: It is likely, Nathan, that this will be left on 755 00:40:41,520 --> 00:40:43,560 Speaker 1: the side of the road here because we're going nowhere 756 00:40:43,640 --> 00:40:47,440 Speaker 1: with our talks. They will continue, but expectations are low, 757 00:40:47,719 --> 00:40:51,560 Speaker 1: all right. Bloomberg Washington correspondent Joe Matthew with us from 758 00:40:51,640 --> 00:40:54,120 Speaker 1: the nation's capital. You can get much more on all 759 00:40:54,200 --> 00:40:58,040 Speaker 1: these stories at Bloomberg dot com or on the Bloomberg terminal, 760 00:40:58,200 --> 00:41:00,840 Speaker 1: and get much more from Joe the most of Sound 761 00:41:00,960 --> 00:41:04,880 Speaker 1: on Air's weekdays at five pm Wall Street Time on 762 00:41:05,080 --> 00:41:08,680 Speaker 1: Bloomberg Radio. You can listen in in Washington at Bloomberg 763 00:41:08,760 --> 00:41:11,680 Speaker 1: nine one and one oh, five point seven FM h 764 00:41:11,880 --> 00:41:14,239 Speaker 1: D two. Karen, all right, Nathan, thank you at A 765 00:41:14,320 --> 00:41:17,600 Speaker 1: six fifty six on Wall Street. This is Bloomberg Daybreak. 766 00:41:18,000 --> 00:41:20,960 Speaker 1: February is Black History Month, and every day this month 767 00:41:21,040 --> 00:41:24,480 Speaker 1: we are celebrating significant moments in US black history. Now 768 00:41:24,560 --> 00:41:28,279 Speaker 1: with your installment for February fifteenth, here's Bloomberg's rent a 769 00:41:28,360 --> 00:41:31,879 Speaker 1: young on this day in Black History. In nineteen sixty eight, 770 00:41:32,120 --> 00:41:35,600 Speaker 1: conductor Henry J. Lewis becomes the first African American to 771 00:41:35,719 --> 00:41:39,480 Speaker 1: lead a major symphony orchestra. He became conductor and musical 772 00:41:39,560 --> 00:41:42,400 Speaker 1: director of the New Jersey Symphony Orchestra, which is a 773 00:41:42,520 --> 00:41:46,440 Speaker 1: nationally recognized orchestra. From an early age, Lewis had a 774 00:41:46,520 --> 00:41:49,839 Speaker 1: love for music and symphony orchestra. At sixteen years old, 775 00:41:49,920 --> 00:41:52,920 Speaker 1: he joined the Los Angeles Philharmonic and became the first 776 00:41:53,040 --> 00:41:56,920 Speaker 1: black instrumentalist in a major symphony orchestra. Later on, in 777 00:41:57,040 --> 00:42:00,040 Speaker 1: nineteen eighty nine, Lewis would become the principal conductor of 778 00:42:00,080 --> 00:42:04,720 Speaker 1: the Netherlands Radio Symphony, a Dutch radio orchestra. That's today 779 00:42:04,760 --> 00:42:09,000 Speaker 1: in Black history. I'm rened to Young Bloomberg Radio. All right, 780 00:42:09,040 --> 00:42:11,720 Speaker 1: we need to thank you and futures. This morning again, 781 00:42:11,800 --> 00:42:15,080 Speaker 1: they're jumping. S and P futures up sixties six points. 782 00:42:15,440 --> 00:42:18,680 Speaker 1: Now futures have three hundred ninety and nasday futures have 783 00:42:18,840 --> 00:42:22,120 Speaker 1: three hundred one. That's up two point one percent. Ten 784 00:42:22,239 --> 00:42:24,920 Speaker 1: year Treasury down fourteen thirty seconds, yield two point oh 785 00:42:25,000 --> 00:42:27,680 Speaker 1: three percent, and they yield on the two year one 786 00:42:27,760 --> 00:42:31,920 Speaker 1: point five eight percent. NIMEX screwed oil falling down three 787 00:42:32,000 --> 00:42:35,200 Speaker 1: points seven percent, down three dollars fifty eight cents and 788 00:42:35,320 --> 00:42:38,759 Speaker 1: night eight cents of barrel, and will continue to watch 789 00:42:38,840 --> 00:42:42,160 Speaker 1: the markets on Bloomberg Surveillance with Tom Keene, Jonathan Farrow, 790 00:42:42,200 --> 00:42:45,880 Speaker 1: and Lisa Abramowitz for Nathan Hanker. I'm Karen Moscow, and 791 00:42:46,080 --> 00:42:47,279 Speaker 1: this is Bloomberg