WEBVTT - Bloomberg Daybreak: March 1, 2022 - Hour 2 (Radio) 0:00:02.440 --> 0:00:06.880 Live from the Bloomberg Interactive Burger Studios is Bloomberg Day Breakfast, Tuesday, 0:00:06.920 --> 0:00:11.360 March one. Coming up this hour Russia's steps up shelling 0:00:11.400 --> 0:00:14.400 of key cities in Ukraine. We are live with the latest. 0:00:14.640 --> 0:00:18.080 More companies abandon ties to Russia as Moscow becomes increasingly 0:00:18.160 --> 0:00:21.400 isolated and the war becomes a key focus for President. 0:00:21.480 --> 0:00:24.360 Finded in Tonight's State of the Union address, New York 0:00:24.400 --> 0:00:27.040 Mayor Adams says the NYPD has been too slow in 0:00:27.080 --> 0:00:31.040 designating hate crimes. Plus Hong Kong Scope nineteen talody rate 0:00:31.280 --> 0:00:33.160 is now one of the highest in the world. I'm 0:00:33.159 --> 0:00:36.280 like to blomber more ahead. I'm John Stashower and sports blowout. 0:00:36.320 --> 0:00:38.519 Loss for the Nets, easy win for the Devil's in 0:00:38.560 --> 0:00:42.080 a marathon bargaining session to try and end the baseball lockout. 0:00:44.080 --> 0:00:47.880 That's all straight ahead on Bloomberg Day Break on Bloomberg 0:00:47.960 --> 0:00:51.880 eleven three O New York, Bloomberg one, Washington, d C, 0:00:52.240 --> 0:00:56.640 Bloomberg one O six one, Boston, Bloomberg nine sixties, San Francisco, 0:00:57.000 --> 0:01:00.200 Sirius x M one nineteen and around the world Old 0:01:00.200 --> 0:01:03.920 on Bloomberg Radio dot Com and via The Bloomberg Business. 0:01:07.319 --> 0:01:10.160 Good Morning, I'm Nathan Hagar and I'm Karen Moscow, and 0:01:10.200 --> 0:01:13.440 global stocks are retreating again this morning. We're coming up 0:01:13.440 --> 0:01:15.000 to six one on Wall Street, and I checked the 0:01:15.040 --> 0:01:17.920 markets every fifteen minutes throughout the trading day on Bloomberg 0:01:18.080 --> 0:01:21.280 SMP futures down twenty five points down, futures down one 0:01:21.720 --> 0:01:24.840 seventy seven, and Nazdag futures down eight. The docks in 0:01:24.880 --> 0:01:27.440 Germany is down two point one percent. The ten year 0:01:27.480 --> 0:01:31.240 treasury up thirty seconds, yield one point seven four percent, 0:01:31.319 --> 0:01:33.680 and they yield on the two year at one point 0:01:33.760 --> 0:01:36.560 three one percent. Nathan, Karen, we'll have more in markets 0:01:36.560 --> 0:01:39.200 in a minute, but we begin in Ukraine. Russia has 0:01:39.360 --> 0:01:42.400 escalated shelling overnight in key cities as a large Russian 0:01:42.480 --> 0:01:45.800 convoy moves slowly toward the capital of Kiev. Amy Morris 0:01:45.840 --> 0:01:49.760 has the latest from our Bloomberg newsroom. In Washington, Senators 0:01:49.800 --> 0:01:52.360 held a closed door briefing on the Russian invasion of 0:01:52.480 --> 0:01:55.960 Ukraine last night, where Ukraine's ambassador sent our country needs 0:01:55.960 --> 0:02:00.000 more military weapons. Republican Senator Met Romney says the US 0:02:00.040 --> 0:02:02.880 hand provide some help. We continue to have the capacity 0:02:02.920 --> 0:02:07.400 to get armament and and nourishment two fighters in Ukraine. 0:02:07.880 --> 0:02:10.919 That's done not by US directly. Democratic Senator Chris Coon 0:02:11.000 --> 0:02:14.520 says they're bracing now for a humanitarian crisis. Suspect Russia 0:02:14.560 --> 0:02:17.600 will try and starve the population of Keith. We have 0:02:17.680 --> 0:02:21.360 to be prepared to provide significant humanitarian relief. New satellite 0:02:21.360 --> 0:02:25.519 images today show a forty mile long Russian military convoy 0:02:25.600 --> 0:02:29.480 just north of Kiev. In Washington, I'm Amy Morris, Bloomberg Daybreak. 0:02:29.560 --> 0:02:31.680 All right, Amy, thank you. As Russia steps up attacks 0:02:31.720 --> 0:02:34.839 on Ukraine, the fighting could turn even more brutal. That's 0:02:34.840 --> 0:02:38.200 a concern we're hearing from retired Lieutenant General Ben Hodges, 0:02:38.440 --> 0:02:41.440 former commander of US Army Europe. It was two days 0:02:41.480 --> 0:02:44.240 ago the whole world saw dismissal that slammed into an 0:02:44.240 --> 0:02:46.880 apartment building, and that sort of thing is going to 0:02:47.160 --> 0:02:50.919 increase um. I think he will do whatever it takes 0:02:50.960 --> 0:02:54.760 to number one to decapitate the government uh and number 0:02:54.760 --> 0:02:59.120 two to avoid the humiliation of his forces being defeated 0:02:59.160 --> 0:03:03.360 and not able to tape. Retired Army Lieutenant General Van 0:03:03.440 --> 0:03:06.840 Hodges spoke at our Washington correspondent Joe Matthew on Bloomberg 0:03:06.919 --> 0:03:09.760 Sound on Catch the program weekdays at five pm Eastern 0:03:09.800 --> 0:03:13.399 on Bloomberg Radio. We'll caring the list of country companies abandoning. 0:03:13.480 --> 0:03:16.560 Russia's growing quickly in the mass exodus is reversing three 0:03:16.600 --> 0:03:20.480 decades of investment by Western business. Bloomberg's Rinia Young Joints 0:03:20.520 --> 0:03:22.959 US Live with the details. Good morning Grinina, Good morning Nathan. 0:03:23.040 --> 0:03:26.440 Russia's largest foreign investor, VP lead the way with its 0:03:26.520 --> 0:03:29.960 surprising announcement on Sunday that it would exit it stake 0:03:30.040 --> 0:03:33.680 in state controlled Rosneft. That move could result in a 0:03:33.720 --> 0:03:36.960 twenty five billion dollar right off and cut its global 0:03:36.960 --> 0:03:40.680 oil and gas production by a third. Shell followed yesterday 0:03:40.880 --> 0:03:44.360 saying its ending partnerships with state controlled gas prom citing 0:03:44.440 --> 0:03:49.080 Russia's quote senseless act of military aggression. In Equanoor, which 0:03:49.120 --> 0:03:52.480 is Norway's biggest energy company and majority owned by the state, 0:03:52.880 --> 0:03:55.840 also announced it will start withdrawing from joint ventures in 0:03:55.920 --> 0:04:00.240 Russia worth about one point to billion dollars. Live in 0:04:00.280 --> 0:04:02.680 New York. I'm going need a Young Bloomberg daybreak. I 0:04:02.760 --> 0:04:04.720 need to thank you. A couple of well straight titans 0:04:04.720 --> 0:04:08.200 are speaking out about the Russian invasion. JP Morgan, CEO 0:04:08.280 --> 0:04:12.200 Jamie Diamond warrants that disconnecting Russian banks from the Swift 0:04:12.280 --> 0:04:16.760 messaging system papering unintended consequences. The same she says they 0:04:16.760 --> 0:04:20.120 cannot to busie a Swift thing. Says, I can't use 0:04:20.120 --> 0:04:22.279 a communication to do busy with you. I can still 0:04:22.320 --> 0:04:23.960 do busy with you. And there are a lot of 0:04:23.960 --> 0:04:26.440 working outs in the Swift so they're different tools were 0:04:26.480 --> 0:04:30.120 used for different reasons. JP Morgan CEO Jamie Diamond made 0:04:30.120 --> 0:04:32.760 the comments in an interview with the Bloomberg's at Hammond, 0:04:32.880 --> 0:04:36.000 saying market volatility remain high as long as the war 0:04:36.080 --> 0:04:39.160 in Ukraine continues. We also caught up Karen with Citadel 0:04:39.200 --> 0:04:41.960 founder Ken Griffin. The billionaire says, this is a very 0:04:42.000 --> 0:04:45.440 critical time in geopolitics. I think we're at a very 0:04:45.560 --> 0:04:49.279 very very volve conflection point that will come down to 0:04:49.400 --> 0:04:52.400 whether or not the Russians will be satisfied by simply 0:04:52.440 --> 0:04:57.480 extending their effective borders in the Ukraine. Will they take Kiev, 0:04:58.480 --> 0:05:02.039 Will they position themselves to reach beyond the borders of 0:05:02.040 --> 0:05:06.719 the Ukraine. The last is terrifying the markets. Citadel founder 0:05:06.760 --> 0:05:08.919 Ken griff And made those comments in an upcoming interview 0:05:08.920 --> 0:05:11.760 on Bloomberg Wealth with David Rubinstein the show They've used 0:05:11.760 --> 0:05:16.240 March twenty two at nine pm Eastern on Bloomberg Radio Television. 0:05:16.240 --> 0:05:19.640 I should say sorry, oh good. Market volatility Nathan remains 0:05:19.720 --> 0:05:23.400 high as world powers step into isolate commodity rich Russia. 0:05:23.680 --> 0:05:26.040 Let's get the latest on the action live with Bloomberg 0:05:26.160 --> 0:05:29.400 John Tucker, John sharing the risk of markets includes disruptions 0:05:29.400 --> 0:05:32.320 to supplies of raw materials, which threaten the stoke high 0:05:32.320 --> 0:05:36.159 inflation and hamper growth. We saw Bayer this morning warning 0:05:36.160 --> 0:05:39.320 that the Ukraine invasion poses a risk to its outlook 0:05:39.640 --> 0:05:43.480 on Those pressures may also impact monetary policy. Rhet McGonagall 0:05:43.560 --> 0:05:46.360 as chairman of Capital Link. At the end of the day, 0:05:46.480 --> 0:05:48.680 what I think is going to happen is this gives 0:05:48.839 --> 0:05:52.320 some sort of a pause to an overly hawkish fed 0:05:52.680 --> 0:05:56.200 Deutsche Bank strapped. Just say, stocks typically decline around six 0:05:56.240 --> 0:06:00.240 to eight percent after a geopolitical event before trey sing 0:06:00.240 --> 0:06:03.480 those losses in about three weeks. Aside from equities, oil 0:06:03.520 --> 0:06:06.240 pushing hires investors trying to figure out whether a possible 0:06:06.320 --> 0:06:09.600 release of strategic reserves will have much of an impact. 0:06:09.960 --> 0:06:12.600 Checking prices right now, Brent crew at a three percent 0:06:13.000 --> 0:06:15.400 at one oh one twenty seven of barrel Line to 0:06:15.440 --> 0:06:18.120 New York on John Tucker Bloomberg Daybreak. All right, John, 0:06:18.160 --> 0:06:20.560 thank you. The invasion of Ukraine will take the spotlight 0:06:20.600 --> 0:06:23.720 tonight and President Biden State of the Union address. Originally 0:06:23.720 --> 0:06:26.880 he planned to highlight the improving coronavirus outlook and rebrand 0:06:26.960 --> 0:06:30.880 his domestic policy priorities. The timing of tonight's speech creates 0:06:30.920 --> 0:06:34.200 a large opportunity for the president, according to Barbara Perry, 0:06:34.440 --> 0:06:37.680 director of Presidential Studies at the Miller Center of Public Affairs, 0:06:38.000 --> 0:06:40.880 if he sees as this moment, gives a good, solid speech, 0:06:41.160 --> 0:06:44.920 acknowledges people's pain, points out what he's done well, where 0:06:44.960 --> 0:06:48.279 his victories have been. And I think on the Ukrainian business, 0:06:48.520 --> 0:06:51.840 this could be his ish benign Berliner moment of John 0:06:51.920 --> 0:06:54.800 Kennedy is standing at the Berlin Wall in nineteen three. 0:06:54.800 --> 0:06:56.240 I don't know how to say it in Russian, but 0:06:56.600 --> 0:07:00.000 ish benign Ukrainian. Barbara Perry was a guest on Bloomberg's 0:07:00.000 --> 0:07:02.560 Balance of Power. Catch a special edition of the program 0:07:02.600 --> 0:07:04.960 tonight with live coverage of the State of the Union dress. 0:07:05.320 --> 0:07:07.919 It starts at eight thirty p m. Eastern on Bloomberg 0:07:08.000 --> 0:07:11.240 Radio and television SMP futures down down twenty five points 0:07:11.240 --> 0:07:13.720 down features down a hundred eighty six dance deck features 0:07:13.720 --> 0:07:16.600 are lower by eighty eight points. Straight ahead, local headlines 0:07:16.640 --> 0:07:23.640 and the check of sports. This is Bloomberg. It sounds 0:07:23.640 --> 0:07:25.840 six oh seven on Wall Street where thirty three degrees 0:07:25.880 --> 0:07:28.520 in Central Park got an accident in Newark's northbound Root 0:07:28.560 --> 0:07:30.800 twenty one at Mill Street. Details coming up in traffic 0:07:30.880 --> 0:07:32.920 First Michael Barr with more on what's going on in 0:07:32.960 --> 0:07:35.000 New York and around the world. Good morning, Michael, Good 0:07:35.000 --> 0:07:37.560 morning Nathan. New York City Mayor Eric Adams said that 0:07:37.640 --> 0:07:39.880 he hoped replacing the n y p d s Hate 0:07:39.920 --> 0:07:43.080 Crime Unit head will add a sense of urgency to 0:07:43.120 --> 0:07:46.120 the issue. I thought we were too slow and designating 0:07:46.600 --> 0:07:50.440 um investigating something as a particular hate crime. Mayor Adam 0:07:50.520 --> 0:07:52.760 says he wanted a new face and a new vision 0:07:52.800 --> 0:07:57.200 investigating hate crimes. Earlier this month, the NYPD reassigned Inspector 0:07:57.560 --> 0:08:00.600 Jessica Corey, head of the Hate Crime Task WARS. The 0:08:00.640 --> 0:08:04.040 decision followed a number of high profile incidents targeting members 0:08:04.280 --> 0:08:08.240 of the Asian Americans and Pacific Islanders communities, as well 0:08:08.240 --> 0:08:11.760 as an overall increase and hate crimes across the city. Meanwhile, 0:08:11.800 --> 0:08:14.600 Mayor Adams also talked about the city hoping to lift 0:08:14.640 --> 0:08:18.640 more COVID mandates and businesses and schools. We are trending 0:08:18.760 --> 0:08:22.040 in the right direction. And every morning when I wake 0:08:22.120 --> 0:08:26.200 up and speak with my doctors, as I stated from 0:08:26.240 --> 0:08:29.040 the beginning, we want to follow the science, and they've 0:08:29.080 --> 0:08:31.040 they have followed the science. We want to get to 0:08:31.280 --> 0:08:33.360 where at the right level we want to be. We 0:08:33.520 --> 0:08:36.280 just don't want to move too quickly. Now their children 0:08:36.320 --> 0:08:39.680 are coming back here. Adams talked with Bloomberg's Joe Matthew 0:08:39.720 --> 0:08:43.120 on balance of power. Hong Kong's COVID nineteen fatality rate 0:08:43.200 --> 0:08:45.920 is now one of the highest in the world. There 0:08:45.920 --> 0:08:48.800 has been a wave of deaths among its under vaccinated 0:08:48.880 --> 0:08:52.280 elderly population. The Senate last night took up the issue 0:08:52.320 --> 0:08:54.920 of a woman's right to an abortion. The vote to 0:08:55.040 --> 0:08:58.520 open debate on the Women's Health Protection Act failed. Republicans 0:08:58.559 --> 0:09:01.280 widely opposed the bill, and pill busted it, stopping the 0:09:01.320 --> 0:09:04.959 management from proceeding in the legislative process. Still, Democrats went 0:09:04.960 --> 0:09:07.400 ahead with a vote to put Republicans on record opposing 0:09:07.440 --> 0:09:10.120 to measure. Send a majority leader Chuck Schumer of New 0:09:10.200 --> 0:09:13.560 York says he supports the bill. We must fight to 0:09:13.800 --> 0:09:17.800 stop these insidious efforts to curtail a woman's right to 0:09:17.920 --> 0:09:21.959 access safe, legal abortion, and we must assert the federal 0:09:22.000 --> 0:09:26.800 government's role to protect this constitutional right. The bill is 0:09:26.840 --> 0:09:30.560 meant to federally safeguard abortion rights, which faces an uncertain 0:09:30.600 --> 0:09:33.160 future in the U. S. Supreme Court. People are out 0:09:33.200 --> 0:09:37.120 the party as New Orleans first full dress Marty Grass 0:09:37.200 --> 0:09:41.120 back Today, back to back parades are taking place. Masks 0:09:41.200 --> 0:09:44.719 against COVID nineteen I required only in indoor public spaces. 0:09:44.800 --> 0:09:48.319 The parades were canceled last year. Global News twenty four 0:09:48.320 --> 0:09:50.800 hours a day on here and on Bloomberg Quick Take, 0:09:50.840 --> 0:09:55.040 powered by more than journalists and analysts more than twenty countries. 0:09:55.400 --> 0:09:59.000 Michael bar this is Bloomberg nak already, Marty Gros, thank you. Michael. 0:10:03.440 --> 0:10:05.199 Down up to six ten on Wall Street time for 0:10:05.200 --> 0:10:08.000 the Bloomberg Sports update, whichown snshar. Thanks they offend. Still 0:10:08.040 --> 0:10:10.280 no labor deal. They in the baseball lockout, but at 0:10:10.320 --> 0:10:13.400 least they are trying. The two sides met until two am. 0:10:13.440 --> 0:10:15.920 Will be back at eleven this morning. They pushed back 0:10:15.960 --> 0:10:18.920 to deadline and was to be last night. If no deal, 0:10:19.000 --> 0:10:21.280 an opening day would be postponed. That deadline is now 0:10:21.360 --> 0:10:24.960 five o'clock today. Earlier, the big baseball story was Derek 0:10:25.040 --> 0:10:28.959 Jener's surprise resignation as CEO of the Miami Marlins and 0:10:29.000 --> 0:10:31.559 the parent disagreement with his boss over the direction of 0:10:31.600 --> 0:10:34.840 the franchise. Theater had a four percent ownership stake, which 0:10:34.840 --> 0:10:36.960 you will now sell off. Long Night for the Knats 0:10:37.040 --> 0:10:39.679 in Brooklyn, Toronto, scored forty two points in the first 0:10:39.760 --> 0:10:42.000 quarter and the route was on. The Raptors won one 0:10:42.080 --> 0:10:46.280 thirty three to nineties seven. Rookie Scottie Barnes scored points. 0:10:46.320 --> 0:10:49.080 He made his first eleven shots. Nets still without the 0:10:49.080 --> 0:10:51.520 injured Kevin Durant, he is expected back soon. They were 0:10:51.520 --> 0:10:53.760 without tire Your Revenue hasn't played a home game all season, 0:10:54.080 --> 0:10:56.640 and Nets coach Steve Nash, who was at the arena 0:10:56.960 --> 0:10:59.280 and did his pregame presser, then had to leave for 0:10:59.400 --> 0:11:01.839 health and stay at protocol. The Nets have now lost 0:11:02.200 --> 0:11:04.959 fourteen of seventeen. Irving did leave them to a victory 0:11:05.040 --> 0:11:08.120 last weekend in Milwaukee, and then he spoke about being 0:11:08.440 --> 0:11:11.960 perhaps being allowed to play home games despite being unvaccinated. 0:11:14.200 --> 0:11:17.360 You know, just remain impatient and just seeing where things 0:11:17.480 --> 0:11:19.000 end up in it's next week or so were the 0:11:19.040 --> 0:11:21.360 next two weeks. I'm not too sure, but I know 0:11:21.400 --> 0:11:24.440 as much as you do. And uh, I just I 0:11:24.480 --> 0:11:26.559 want to say this is that I'm very appreciative to 0:11:26.600 --> 0:11:31.040 all thottles that are question behind the scenes to make 0:11:31.440 --> 0:11:33.560 our world a better player. City is going to start 0:11:33.559 --> 0:11:36.640 allowing unvaccinated fans into the arena, but that may not 0:11:36.720 --> 0:11:38.800 mean Irving will then be allowed to play Devil's a 0:11:38.840 --> 0:11:41.320 seven or two out of Vancouver Fordham Meat. You match 0:11:41.400 --> 0:11:45.000 John stash Award Bloomberg's fool Stapen. John thanks SMP. Futures 0:11:45.040 --> 0:11:47.800 down down twenty seven points down, futures down two dance 0:11:47.880 --> 0:11:50.920 at futures lower by nine points. The tenure treasury now 0:11:51.000 --> 0:11:54.480 up twenty seven thirty seconds, or a yield one point 0:11:54.640 --> 0:11:57.520 seven three percent yield on the two year one point 0:11:57.600 --> 0:12:02.200 to nine percent. Stay this you're listening to Bloomberg Day Brown. 0:12:07.640 --> 0:12:10.000 Bloomberg Day Break is brought to you by Audie. Don't 0:12:10.080 --> 0:12:12.560 let someone else drive off in the Audi model You've 0:12:12.559 --> 0:12:15.920 always wanted. Visit a tri state Audie dealer to get 0:12:15.920 --> 0:12:23.559 behind the wheel of yours today. Markets, headlines and breaking 0:12:23.559 --> 0:12:26.440 news twenty four hours a day at Bloomberg dot Com, 0:12:26.559 --> 0:12:30.200 the Bloomberg Business Out and at Bloomberg Quicktape. He's a 0:12:30.200 --> 0:12:41.040 Bloomberg Business Flash. But I'm Karen Moscow and futures this 0:12:41.160 --> 0:12:44.560 morning are falling. There's a fresh wave of volatility that's 0:12:44.600 --> 0:12:47.920 hitting global markets as the conflict in Ukraine intensifies them 0:12:47.920 --> 0:12:51.720 in mounting penalties against Russia. Stocks in Europe are falling 0:12:51.760 --> 0:12:54.840 as well, bonds gaining, oil pushing higher. Check the markets 0:12:54.840 --> 0:12:58.280 every fifteen minutes throughout the trading day on Bloomberg. Right now, 0:12:58.320 --> 0:13:01.640 it's in P futures down twenty eight points down, futures 0:13:01.679 --> 0:13:05.560 down one ninety and nasday futures down one hundred and 0:13:05.600 --> 0:13:07.840 the ten year treasury of twenty three thirty seconds, the 0:13:07.880 --> 0:13:09.880 a one point seven four percent, the yield on the 0:13:09.920 --> 0:13:12.920 two year one point three one percent. Nine mex Screwed 0:13:13.000 --> 0:13:15.679 oil is up three point two percent of three dollars 0:13:15.720 --> 0:13:17.920 eight cents at ninety eight dollars eighty cents a barrel 0:13:18.120 --> 0:13:20.360 comes called up one point three percent of twenty four 0:13:20.400 --> 0:13:23.600 dollars fifty cents at nineteen twenty five announced. The euro 0:13:23.760 --> 0:13:26.160 one point one one seven seven against the dollar, British 0:13:26.160 --> 0:13:28.200 pound one point three four two one, the ens at 0:13:28.200 --> 0:13:31.920 one fourteen point eight one, and bitcoins higher up more 0:13:31.960 --> 0:13:34.040 than four and a half percent at forty three thousand, 0:13:34.120 --> 0:13:37.320 five hundred fifty dollars. Chevron doubling at share by back 0:13:37.360 --> 0:13:39.560 to as much as ten billion dollars a year. Pledging 0:13:39.600 --> 0:13:42.199 at shareholders will see the benefits of high oil prices 0:13:42.240 --> 0:13:45.880 by locking and spending at historically low levels and reducing costs. 0:13:46.080 --> 0:13:48.440 As a Bloomberg business flash, now here's Michael bar with 0:13:48.520 --> 0:13:51.600 more on what's going on around the world. Michael Karen, 0:13:51.640 --> 0:13:54.079 thank you very much. A forty mile convoy of Russian 0:13:54.080 --> 0:13:58.280 tanks another vehicles just threatening Ukraine's capital, Keith as an 0:13:58.280 --> 0:14:02.800 intense shelling attacks are got to the country's second largest city. Meanwhile, 0:14:02.840 --> 0:14:05.120 both sides looked to resume talks in the coming days 0:14:05.120 --> 0:14:08.560 aimed at stopping the fighting. Major League Baseball has extended 0:14:08.600 --> 0:14:12.040 its deadline for reaching a labor deal to today at 0:14:12.120 --> 0:14:15.400 five pm, for salvaging opening day as scheduled in March, 0:14:15.480 --> 0:14:18.880 thirty feet locked out players and team owners engaged in 0:14:18.920 --> 0:14:22.560 a series of intense negotiations that began yesterday and stretched 0:14:22.600 --> 0:14:25.600 into early this morning in the NBA, the Nets lost 0:14:25.640 --> 0:14:28.560 in the NHL, the Devil's and Bruins won, the Capitol's lost. 0:14:28.800 --> 0:14:31.320 Global news twenty four hours a day on air and 0:14:31.480 --> 0:14:35.200 on Bloomberg Quicktake, powered by more than twenty seven undred 0:14:35.240 --> 0:14:38.160 journalists and analysts more than a hundred twenty countries. I'm 0:14:38.200 --> 0:14:41.120 Michael Barren. This is Bloomberg, Nathan. Thanks Michael. At six 0:14:41.200 --> 0:14:44.280 nineteen on Wall Street Life from the Bloomberg Interactive Brokers Studios. 0:14:44.320 --> 0:14:47.600 This is Bloomberg Daybreak and Bloomberg's Maria Today. Oh is 0:14:47.640 --> 0:14:50.440 with us now from Warsaw, Poland, as we continue following 0:14:50.520 --> 0:14:53.640 fast moving developments in the war in Ukraine, including Maria. 0:14:53.760 --> 0:14:57.080 This redheadline that just crossed the Bloomberg terminal minutes ago. 0:14:57.360 --> 0:15:00.680 The European Union now seeking to block seven Russian banks 0:15:00.680 --> 0:15:04.480 from the Swift messaging system, including VTB. This would come 0:15:04.520 --> 0:15:07.440 on top, of course, of the sanctions on several other 0:15:07.520 --> 0:15:11.040 Russian banks, including spur Bank, the second largest bank in Russia. 0:15:11.080 --> 0:15:14.640 What are the implications of this ratcheting up of potential 0:15:14.640 --> 0:15:19.120 sanctions against Russia's financial sector. Well, I think before we 0:15:19.120 --> 0:15:21.040 get to the implications, we have to look at what 0:15:21.080 --> 0:15:24.320 happened yesterday night. The nature of this war in Ukraine 0:15:24.400 --> 0:15:28.600 completely changed. This was an escalation on all fronts. We've 0:15:28.600 --> 0:15:33.480 seen Russia essentially taken aim at residential buildings. There's nothing 0:15:33.480 --> 0:15:36.400 to do with military points or military targets. We've seen 0:15:36.480 --> 0:15:40.280 Russia this morning staying the operation, meaning the invasion and 0:15:40.320 --> 0:15:43.720 the war is going to continue until we achieve our 0:15:43.720 --> 0:15:46.080 targets and our goals. We know what that means, get 0:15:46.160 --> 0:15:49.480 rid of the government in Ukraine, the weaponize the country 0:15:49.520 --> 0:15:52.480 and of course bring it closer to the Russian sphere 0:15:52.480 --> 0:15:56.600 of influence. And yesterday it was a brutal night of fighting. 0:15:56.680 --> 0:15:59.440 It is for the Ukrainian military, which is holding up 0:15:59.440 --> 0:16:01.280 has been sick states and what you send on what 0:16:01.360 --> 0:16:04.680 you feel is that there's almost this desperation, running out 0:16:04.680 --> 0:16:07.560 of time, running out of patients from the Kremlin that 0:16:07.600 --> 0:16:09.840 they expected this is going to be an easy forty 0:16:09.880 --> 0:16:14.040 eight hour award without turning into a week long conflict. 0:16:14.120 --> 0:16:16.520 The Ukrainians still want to continue to fight. I mean, 0:16:16.680 --> 0:16:18.760 we should make it very clear to people there is 0:16:18.800 --> 0:16:22.320 a well enormous will in the country to resist and 0:16:22.320 --> 0:16:25.200 that is being manifested and the brutality of the attacks 0:16:25.000 --> 0:16:27.920 that we expect, unfortunately that in the next forty eight 0:16:27.920 --> 0:16:32.080 hours Russia is gonna hit major targets with everything they have. 0:16:33.960 --> 0:16:37.320 And we've heard from the Ukrainian presidents as well. Voladmire Zelinski, 0:16:37.360 --> 0:16:40.720 he's been addressing the European Parliament. Uh, get us up 0:16:40.720 --> 0:16:43.480 to speed on what he's been saying and the resolve 0:16:43.560 --> 0:16:47.600 that we've been seeing from the Ukrainian government and from 0:16:47.720 --> 0:16:52.800 forces on the ground. Well, if you see Samansky, this 0:16:52.920 --> 0:16:56.880 is a man who in the past six hours has 0:16:56.960 --> 0:17:00.800 been the center of every war effort in Ukraine to 0:17:00.880 --> 0:17:03.360 try to contain the situation. For many of my Ukrainian 0:17:03.400 --> 0:17:06.399 friends that I seek to they say they go on 0:17:06.560 --> 0:17:10.080 his WhatsApp, on his telegram channel, they look at his messages, 0:17:10.160 --> 0:17:12.719 and he really drops up Moran and the country. This 0:17:12.800 --> 0:17:14.480 is someone that could have fled. I mean, this guy 0:17:14.560 --> 0:17:16.720 is rich. He could have left the country in day two, 0:17:16.760 --> 0:17:20.080 and he's decided I want to stay here till the end. 0:17:20.200 --> 0:17:22.760 So of course he's now become almost as this icon 0:17:22.960 --> 0:17:25.000 for the country. But even in Europe, you know the 0:17:25.040 --> 0:17:28.000 fact that he's post and videos every six hours to 0:17:28.080 --> 0:17:31.359 show I haven't fled, I'm not leaving, I'm staying with 0:17:31.480 --> 0:17:33.399 you and we're going to resist. For the Europeans, it 0:17:33.480 --> 0:17:35.560 was also a wake up call that the country has 0:17:35.600 --> 0:17:39.520 made a very conscious decision to fight, to defend itself, 0:17:39.560 --> 0:17:42.920 to resist, and the Europeans belief once that decision is 0:17:42.960 --> 0:17:44.879 made and we see the Ukraine can put up a 0:17:44.880 --> 0:17:46.520 fight and this is not going to be a short world, 0:17:46.600 --> 0:17:49.199 we have to help them in every capacity. And that 0:17:49.320 --> 0:17:52.520 is where the debate is heading next. What type of sanctions? 0:17:52.640 --> 0:17:55.000 What else can the European Union do? What else can 0:17:55.040 --> 0:17:56.840 the United States do? And I guess there's gonna be 0:17:56.880 --> 0:18:00.560 a real conversation about the energy sector Andrussia. Is that 0:18:00.600 --> 0:18:02.720 going to be the next street? Yeah? I wanted to 0:18:02.960 --> 0:18:05.920 get to that as well, the possibility that we could 0:18:05.960 --> 0:18:10.920 see UH sanctions targeting the Russian energy sector. As I mentioned, 0:18:10.960 --> 0:18:14.600 we've got even more ramped up sanctions on the financial sector. 0:18:14.680 --> 0:18:17.600 How much further could this go and what could the 0:18:17.640 --> 0:18:22.359 reaction be on the street in Russia. Look the reaction 0:18:22.359 --> 0:18:24.800 on the street in Russia. I have to tell you, 0:18:24.800 --> 0:18:26.680 I'm in Poland, I'm in war, So we get a 0:18:26.760 --> 0:18:29.679 very different picture here of what happens in Russia. We 0:18:29.720 --> 0:18:32.840 need to know that the Russia there is big repression 0:18:32.920 --> 0:18:34.959 of people. You just don't go out on the streets 0:18:35.000 --> 0:18:37.520 to say down, Vladimir Putting, stop the war in Ukraine. 0:18:37.520 --> 0:18:39.520 I mean when you do that, you're also taking a 0:18:39.760 --> 0:18:42.520 risk in Russia with the people of Russia. CMTV is 0:18:42.560 --> 0:18:44.240 now what you and I are seeing and where we're 0:18:44.280 --> 0:18:47.920 not reporting. The Russia government of Vladimir Putting Stilts were 0:18:47.960 --> 0:18:50.480 not the bad guys. The West is an empire place, 0:18:50.680 --> 0:18:53.320 remember that's what he said yesterday. For the Russias is 0:18:53.359 --> 0:18:57.400 a very different perspective. But we have seen, especially from 0:18:57.400 --> 0:19:00.199 the younger generation, is that they do not want to 0:19:00.240 --> 0:19:03.199 see this war happening. You know, this is Ukrainia Russia 0:19:03.240 --> 0:19:06.520 two countries that have very deep connections, very deep cultural lengths. 0:19:06.920 --> 0:19:09.800 There's people who of course travel within the border used 0:19:09.840 --> 0:19:13.280 to before the war escalated. But again the point is 0:19:13.600 --> 0:19:16.480 the Russian leadership is still focused on this war and 0:19:16.560 --> 0:19:18.600 let's stay that. Clearly, we want to hit her targets 0:19:18.640 --> 0:19:21.560 and we want to complete this mission. So again the 0:19:21.600 --> 0:19:24.160 problem is Lamor Pudding is still very much in command. 0:19:24.600 --> 0:19:27.680 The military around him has not deserted him. The audio guard, 0:19:27.720 --> 0:19:29.040 so I know, we'll talk about the rich people of 0:19:29.080 --> 0:19:30.879 Russia and will kind of pressure they can put on 0:19:30.960 --> 0:19:32.760 Lamer Britain. But the one thing we need to make 0:19:32.800 --> 0:19:35.840 clear is that rich people Russia are rich because ladymer 0:19:35.920 --> 0:19:38.840 Putting allows them to be rich, so their influence very limited. 0:19:39.560 --> 0:19:42.639 Buried today or Bloomberg News correspondent with us from Warsaw, 0:19:42.760 --> 0:19:45.800 Poland this morning. Maria. Thank you for staying on top 0:19:45.880 --> 0:19:49.159 of what's happening and giving us the perspective. They're on 0:19:49.240 --> 0:19:52.560 the eastern front of the Natal Alliance right now. SMP 0:19:52.720 --> 0:19:55.080 futures are down twenty four point, STAW futures down a 0:19:55.160 --> 0:19:57.960 hundred sixty four, NASTAC features down eighty nine points. To 0:19:58.040 --> 0:20:01.200 tain your treasury up is now the yield one point 0:20:01.240 --> 0:20:08.480 seven five. This is Bloomberg Bloomberg eleven three oh weather. 0:20:08.520 --> 0:20:12.160 Clouds in mid forties today, clearing in high your fifty tomorrow, 0:20:12.480 --> 0:20:15.600 highs your forty by Thursday, under a mostly sunny sky. 0:20:16.040 --> 0:20:22.720 Right now thirty three mostly cloudy in Central Park. Broadcasting 0:20:22.800 --> 0:20:26.520 live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.640 --> 0:20:30.080 Bloomberg e Living Freedom to Washington, d C. Bloomberg ninety 0:20:30.160 --> 0:20:33.119 nine one to Boston Bloomberg one oh six one to 0:20:33.160 --> 0:20:36.920 San Francisco, Bloomberg nine sixty to the country, Sirius XM 0:20:36.960 --> 0:20:39.240 to the one nine te and around the globe, the 0:20:39.280 --> 0:20:43.159 Bloomberg Business apt and Bloomberg Radio dot com. This is 0:20:43.160 --> 0:20:51.639 Bloomberg Daybreak, six thirty on Wall Street. Good morning, I'm 0:20:51.720 --> 0:20:54.600 Nathan Hagar and I'm Karen Moscow. We're just about three 0:20:54.680 --> 0:20:56.760 hours away from the open of US trading. Time for 0:20:56.800 --> 0:20:58.560 the five Things you need to know to start your day. 0:20:58.600 --> 0:21:01.720 Brought to you by Interactive Brokers. Interactor Brokers charged his 0:21:01.760 --> 0:21:04.520 margin loan rates from zero point seven five year cent 0:21:04.560 --> 0:21:07.040 to one point five eight percent race subject to change. 0:21:07.119 --> 0:21:09.560 Learn more at i dk R dot com slash compare. 0:21:09.960 --> 0:21:12.200 We begin with news that Moscow is stepping up shelling 0:21:12.200 --> 0:21:14.920 in Ukraine. It's also moving more troops into the country. 0:21:15.160 --> 0:21:18.199 Satellite images show a forty mile long military convoy just 0:21:18.359 --> 0:21:20.639 north of Kiev. At the same time, the Pentagon is 0:21:20.720 --> 0:21:23.000 mulling a plan to deal with Russia if it eventually 0:21:23.040 --> 0:21:26.159 decides to de escalate. Bloomberg's said Baxter, has the story 0:21:26.320 --> 0:21:30.000 a plan being called a deconfliction mechanism, and spokesman John 0:21:30.080 --> 0:21:33.200 Kirby says this could happen as Vladimir Putin has met 0:21:33.240 --> 0:21:35.399 more resistance than he expected. You got to hand it 0:21:35.440 --> 0:21:38.000 to the Ukrainians who have been fighting very hard for 0:21:38.040 --> 0:21:40.280 their country and making an impact and making a dent. 0:21:40.520 --> 0:21:44.040 Having said that, Kirby says, Putin still has more troops available. 0:21:44.119 --> 0:21:46.960 He hasn't moved all of it into Ukraine, but he's 0:21:46.960 --> 0:21:49.120 moved the majority of it. He still has a lot 0:21:49.480 --> 0:21:52.439