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Speaker 1: Live from the Bloomberg Interactor Berger Studios. This is Bloomberg

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Speaker 1: day Break for Friday, February seventeen. Coming up today, Hawk

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Speaker 1: is Fed comments, send stocks lower ten, your treasury yields

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Speaker 1: hit the highest level this year. President Biden looks to

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Speaker 1: speak with Si Jinping Soon about the Chinese balloon incident.

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Speaker 1: And Americans rack up nearly one trillion dollars in credit

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Speaker 1: card debt. Angry New Jersey parents gathered for a school

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Speaker 1: board meeting after a student committed suicide. Plus more headaches

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Speaker 1: for travelers at JFK Airport. Michael bar More Ahead, I'm

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Speaker 1: John Stashoward Sports. The Devil's Locked in St. Louis. The

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Speaker 1: Rangers played tonight at an impressive first round for Tiger Woods.

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Speaker 1: That's all straight ahead on Bloomberg day Break, The business

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Speaker 1: news you need disturb your day, and just one fifteen

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Speaker 1: minute podcast each pointing on Apples, Spotify, The Bloomberg Business

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Speaker 1: Appen everywhere you get your podcasts. Good morning. I'm Nathan

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Speaker 1: Hagar and I'm Karen Moscow. Here are the stories we're

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Speaker 1: following today. Karen. The Hawks our front end center at

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Speaker 1: the FED this morning, and that is stoking fears of

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Speaker 1: higher interest rates to come. Both St. Louis Fed President

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Speaker 1: James Bullard and Cleveland Fed Chief Laretamester see the case

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Speaker 1: for raising rates by fifty basis points at their next meeting.

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Speaker 1: I think we can lock in this disinflationary trend by

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Speaker 1: continuing to have policy rate increases during even though the

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Speaker 1: real economies looks like it's gonna continue to grow and

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Speaker 1: the labor market broadly across the country looks like it

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Speaker 1: remains strong. But this juncture the incoming data have not

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Speaker 1: changed my view that we will need to bring the

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Speaker 1: Fed funds rate above five and hold it there for

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Speaker 1: some time. Indeed, at our meeting two weeks ago, setting

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Speaker 1: aside what financial market participation participants expected us to do,

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Speaker 1: I saw a compelling economic case for a fifty basis

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Speaker 1: point increase, which have brought the top of the target

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Speaker 1: range to five percent. Both Cleveland Fed President Larettamester and St.

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Speaker 1: Louis Fed Chief James Bullard are not voting members on

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Speaker 1: the f O m C, but they do have influence.

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Speaker 1: Right now, markets are still pricing in a twenty five

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Speaker 1: basis point hike next month. Well, Nathan, those hawkish comments

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Speaker 1: have stocks lower once again, this morning after dropping one

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Speaker 1: point four percent yesterday. S ANDP futures are down about

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Speaker 1: six tents of uppercent this morning. Ken van Lewin, CEO

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Speaker 1: of Van Lewin and Company, says Mester and Bullard are

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Speaker 1: rattling investors. The FED has its mandate to control inflation,

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Speaker 1: and it looks like they're going to be doing that,

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Speaker 1: So that's what's pushing rates up. Of course, in the

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Speaker 1: markets down. Ken van Lewin notes that benchmark can your

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Speaker 1: treasury yields are trading at their highest level this year.

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Speaker 1: Right now there are at three point eight nine percent.

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Speaker 1: Well equities are lower. Karen one stocks bucking the trend

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Speaker 1: this morning. Shares of Applied Materials are up nearly one percent.

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Speaker 1: The company gave a strong sales forecast thanks to increased

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Speaker 1: demand for gear that makes auto and industrial chips. We

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Speaker 1: get more from Bloomberg's Charlie Pellett. Applied is the biggest

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Speaker 1: maker of semiconductor manufacturing equipment. It says second quarter sales

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Speaker 1: will be about six point four billion dollars, that beat

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Speaker 1: the average annalist estimate of six point three billion. Many

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Speaker 1: of Applied Materials largest customers have slashed their budgets for

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Speaker 1: new plants and equipment this year in response to a

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Speaker 1: widespread glut, but its latest outlook suggests there are still

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Speaker 1: bright spots in the chip industry, including automotive semiconductors in

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Speaker 1: New York. Charlie Pellett Bloom Bird Day break Right, Earlie,

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Speaker 1: thank you well. Let's take a look at some other

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Speaker 1: stocks on the move this morning. Shares a Door dash

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Speaker 1: Or a more than six percent. The food delivery company

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Speaker 1: is forecasting earnings that toped estimates. Shares the DraftKings up

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Speaker 1: five percent, the gambling company posting fourth quarter sales that

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Speaker 1: beat estimates, And on the flip side, shares of Texas

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Speaker 1: Roadhouse Or down more than six percent, the restaurant chain

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Speaker 1: missing fourth quarter estimates. Let's turn to politics now, Karen,

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Speaker 1: because US China relations remain on the front burner. President

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Speaker 1: Biden expects to speak with President Shi Jinping soon about

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Speaker 1: that Chinese balloon shot down by the US. President addressed

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Speaker 1: the matter at the White House yesterday. We are going

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Speaker 1: to keep our allies and the Congress contemporaries informed all

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Speaker 1: we know and all we learn, and uh, I expect

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Speaker 1: to be speaking with President she and I hope we

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Speaker 1: have We're going to get to the bottoms. But I

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Speaker 1: make no apologies for taking down that balloon. President Biden

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Speaker 1: is still facing plenty of criticism from Republicans after his speech.

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Speaker 1: House Armed Services Committee Chair Mike Rogers says the suspected

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Speaker 1: Chinese spy balloon covered a lot of ground before the

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Speaker 1: President ordered it shot down. They watched it go over Guam.

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Speaker 1: Guess what. Lots of US presidents they are focused on. Asia,

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Speaker 1: watched to go over Hawaii. Lots of US military presence,

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Speaker 1: they're focused on Asia. We've watched the go for Alaska,

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Speaker 1: by the way, last military presence, But that thing was

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Speaker 1: collecting for a very long time. House Arm Services Chair

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Speaker 1: Mike Rogers spoke with Our Washington corresponded Joe Matthew on

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Speaker 1: Bloomberg Sound on. Catch the program weekdays at five pm

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Speaker 1: Eastern on Bloomberg Radio or listen on demand wherever you

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Speaker 1: get your podcasts. Will US China tensions run high here,

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Speaker 1: and there's yet another thing that could complicate them even further.

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Speaker 1: The White House will reportedly send its top Pentagon official

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Speaker 1: to Taiwan in the coming days. That's according to the

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Speaker 1: Financial Times. It's unclear how Beijing will respond. A Foreign

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Speaker 1: ministry spokesman says China opposes military ties between Washington and Taipei. Well, Nathan,

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Speaker 1: we turned to this week's retail sales figures, which showed

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Speaker 1: Americans continue to spend despite tight policy from the Fed.

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Speaker 1: Now your fresh data showing consumers have also racked up

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Speaker 1: nearly one trillion dollars in credit card debt, Bloomberg said,

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Speaker 1: Baxter has the story. This is definitely the result of

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Speaker 1: Americans wanting to buy things and spend running smack dab

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Speaker 1: into inflation. Most of the increase came in the final

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Speaker 1: quarter of two and it breaks a record set in

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Speaker 1: twenty nineteen, and the sixty one billion dollar up from

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Speaker 1: the prior quarter was the biggest scene in data going

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Speaker 1: back to nineteen ninety nine. Now, along with users just

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Speaker 1: swiping and tapping more, they're also missing payments, with delinquency

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Speaker 1: rates surpassing pre pandemic averages in San Francisco. I'm at

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Speaker 1: Baxter Bloomberg daybreak. All right, thanks, we have fresh data

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Speaker 1: on college endowment returns. They're not painting a rosy picture either.

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Speaker 1: US endowment returns tumbled last year during the global market route.

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Speaker 1: A new study says they lost an average eight percent

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Speaker 1: on the year ending June is a reversal from an

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Speaker 1: average gain of almost thirty one percent the prairie year.

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Speaker 1: This is Bloomberg. We're gonna have showers ending this morning.

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Speaker 1: It'll turn cloudy and breezy today. We're gonna get into

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Speaker 1: the low sixties early, but temperatures will fall through the afternoon.

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Speaker 1: By tonight, we'll be down in the upper twenties. Not

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Speaker 1: gonna look at some of the other stories making news

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

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Speaker 1: bar Good morning, Nathan Angry. Parents in New Jersey pack

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Speaker 1: to school board meeting for the Central Regional High School

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Speaker 1: OOL in Bayville, where a teenager died by suicide last

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Speaker 1: week after a video allegedly captured her being bullied by

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Speaker 1: four classmates. Those four students are now facing criminal charges,

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Speaker 1: and the district superintendent has resigned. Parents like this man

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Speaker 1: say it's time for the school board to listen to

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Speaker 1: the community. His school system is currently in their national

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Speaker 1: spotlight for halliblasons. This school system has and is failing

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Speaker 1: our students. This administration is failing our students. I feel

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Speaker 1: that everything in this district is handled in a reactionary

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Speaker 1: in e jerk way when it's too late before the meeting.

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Speaker 1: Acting Superintendent Dr. Douglas Corbett says the district is working

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Speaker 1: with police and state officials in connection with the death

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Speaker 1: of the fourteen year old student by suicide who had

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Speaker 1: been cyber bullied. Of course, consequences followed, but I can't

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Speaker 1: tell the victim's parents what those consequences are. Superintendent Corbett

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Speaker 1: also says a thirty member crisis team is ready to

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Speaker 1: respond to the concern of parents and students. The parents

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Speaker 1: of a twelve year old New Jersey boy are grieving

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Speaker 1: after their son collapsed and died during football practice in Newark.

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Speaker 1: The tragedy occurred last week during a youth team's workout.

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Speaker 1: Elijah Jordan Brown Garcia went with his ten year old

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Speaker 1: brother to his wrecked team practice last Friday. He was

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Speaker 1: running some drills when he collapsed at West Side Park.

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Speaker 1: It took more than a half hour for e MS

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Speaker 1: to arrive, but by then it was too late. The

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Speaker 1: family is calling for CPR training for all coaches involved

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Speaker 1: in youth sports. A terminal at JFK Airport will remain

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Speaker 1: closed today. A power outage yesterday at Terminal one caused

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Speaker 1: flight delays and cancelations. This woman was among passengers left stranded.

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Speaker 1: We're getting news like all the other terminals are open,

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Speaker 1: just this one. A footnote to the story of flight

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Speaker 1: from Auckland to JFK made a U turn and went

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Speaker 1: back to New Zealand after traveling about nine thousand miles.

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Speaker 1: Passengers on the flight spent sixteen hours in the air

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Speaker 1: to fly back to Square One. Arizona Appeals Court has

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Speaker 1: rejected Republican carry Links challenge of her defeat in the

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Speaker 1: Arizona governor's race to Democrat Katie Hobbs. The court denied

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Speaker 1: a request to throw out election results in the state's

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Speaker 1: most populous county and hold the election again. Global News

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Speaker 1: twenty four hours a day, powered by more than hundred

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Speaker 1: journalists analysts in over a hundred twenty countries. I'm Michael Barr.

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Speaker 1: This is Bloomberg Nathan. Thanks Michael, time for the Bloomberg

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Speaker 1: Sports update, brought to you by Try State Out. He

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Speaker 1: Good morning, John Stansharn, Good morning. Eighth than the NBA

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Speaker 1: regular season about three forts over, but now is the

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Speaker 1: All Star Breaks. Sunday's game is in Utah for the

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Speaker 1: first time in thirty years. Le Bron James and Yanniston's

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Speaker 1: the Compo are the captains. They will not pick the

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Speaker 1: squads until just before tip off the next Julius Randall

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Speaker 1: will play. Jalon Bronson hopes to get a late invite

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Speaker 1: because there are three Eastern Conference All Stars with injuries.

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Speaker 1: DeMar De Rhodon and Jalen Brown have both missed the

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Speaker 1: last couple of games, and Jani's last night had to

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Speaker 1: leave with a sprained wrist. The Bucks one in Chicago.

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Speaker 1: They've won twelve in a row. Phoenix lost to the

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Speaker 1: l A Clippers. Kevin Durrant, now a member of the Sun's,

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Speaker 1: reflected on his time with the net There was a

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Speaker 1: lot of ups and downs, but I love the crime

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Speaker 1: so and everybody, and broken the load of the crime too.

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Speaker 1: So I built the family over there as they're gonna

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Speaker 1: always be a part of my journey. So we didn't

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Speaker 1: accomplish what we wanted to accomplish as far as winning

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Speaker 1: a championship, just like I told him, But I enjoyed

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Speaker 1: the crime kat. He added that once Kyrie Irving was traded,

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Speaker 1: the Nets were a team without an identity. He still injured.

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Speaker 1: Hopes to make his son's debut next month. Devils lost

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Speaker 1: in St. Louis four to just their fourth regulation road lost.

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Speaker 1: The Rangers are just behind the Devil's in the standings.

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Speaker 1: They've won six in a row. They played tonight and Edmonton.

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Speaker 1: Tiger was his first tournament in seven months at Riviera

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Speaker 1: in l A. Of course he's very familiar with and

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Speaker 1: Tiger finished strong. Bernie the last three holes shot two

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Speaker 1: under sixty nineties, five shots behind the co leaders Maxioma

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Speaker 1: and Keith Mitchell. Tim McCarver has died. He was eight one.

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Speaker 1: After long playing career, he was on the Mets broadcast

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Speaker 1: booth for sixteen years. He also called twenty three World

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Speaker 1: Series for three different networks. John stash Award Bloomberg Sports

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Speaker 1: Live from coast to coast, from New York to San Francisco,

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Speaker 1: Boston to Washington, d C. Nationwide on Sirius, XAMP, the

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Speaker 1: Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 1: Good morning, I'm Nathan Hagar. Let's take the pulse of

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Speaker 1: the auto industry. Now, it has been quite the year

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Speaker 1: for the sector and General Motor CEO Mary Barra says

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Speaker 1: demand for expensive trucks remains strong and that's allowing GM

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Speaker 1: to invest heavily in the future electric vehicles. In an

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Speaker 1: exclusive interview with Bloomberg's David Weston, CEO Mary Barra laid

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Speaker 1: out GM's path toward electrification while meeting demand for those

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Speaker 1: gas powered vehicles. Let's bring you part of that conversation. Now,

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Speaker 1: you've talked about I think a million vehicles by five

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Speaker 1: e vs. Right by that point, you believe you will

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Speaker 1: know or be in alcohol investment mode, that is to

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Speaker 1: say you'll start being to turn to profit. Well, we've

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Speaker 1: talked about I said, you know, we think our margins

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Speaker 1: at that point for our ev business will be in

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Speaker 1: the low single digits without i RA, a high er

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Speaker 1: with IRA. But we'll still be investing because as I said,

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Speaker 1: you know, we have I talked about the three battery

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Speaker 1: plants we have in the not too distant future, will

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Speaker 1: be announcing a fourth. But we see other investments will

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Speaker 1: make their and there's still parts of the portfolio that

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Speaker 1: we have an announced that will continue to add. So

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Speaker 1: you know we're going to be getting the right EVY

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Speaker 1: portfolio to cover the market uh through that period, so

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Speaker 1: it will extend beyond twenty but once we ramp up

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Speaker 1: some of these battery plants and they're running at full rate.

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Speaker 1: That's what allows us on those you know, the products

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Speaker 1: we have to start to really improve those margins. Are

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Speaker 1: you seeing the demand you need in order to get

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Speaker 1: to the levels you need for electric vehicles and people

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Speaker 1: wanting these well so far, you know, our our Hummer

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Speaker 1: our GMC Hummer e V is sold out. In fact,

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Speaker 1: we're not even taking orders. I can't wait till I

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Speaker 1: can turn that order bank on again. The lyric is

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Speaker 1: doing well. By the end of first quarter, will have uh.

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Speaker 1: You know, we believe delivered our our first year limited

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Speaker 1: edition and and you know, vecin taking orders for the

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Speaker 1: second model year and we've seen really strong interests there. Uh. Similarly,

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Speaker 1: we have a quarter of a million hand raisers for

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Speaker 1: the Equinox of Chevrolet Equinox and the Blazer e V

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Speaker 1: and the Silverado UM that's the one that will be

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Speaker 1: out in just a handful of weeks and against strong interests,

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Speaker 1: were very very confident that will sell all of those

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Speaker 1: this model year's UM sales uh and then some so

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Speaker 1: really strong demand and I think it's because of our products,

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Speaker 1: because they can more off the ultiam platform. We didn't

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Speaker 1: have to make compromises in what the performance or the range.

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Speaker 1: We were able to really understand what the customers looking

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Speaker 1: for in that vehicle and deliver it. You mentioned supply chains,

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Speaker 1: and obviously the automotive industry in general has had a

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Speaker 1: tough time because it chips in the last couple of

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Speaker 1: years because it'sply chains. What did you learn from that

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Speaker 1: experience and most specifically, what did you learn about what

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Speaker 1: general motors needs to own, what they need to control,

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Speaker 1: and what they can really shop out. I think what

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Speaker 1: we saw with you know, issues of the pandemic and

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Speaker 1: then all the side effects of that UM that we

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Speaker 1: needed to have a more resilient supply chain. And you know,

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Speaker 1: we've always from a final assembly aimed to build where

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Speaker 1: we sell, and I think we need to have sourcing

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Speaker 1: for the different countries we operate in UM that that

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Speaker 1: is more focused, so there's you know, there's more control

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Speaker 1: from that perspective. So that's what we're working to do,

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Speaker 1: especially as we look at our battery supply chain, what

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Speaker 1: we need to build these and also from a semiconductor perspective,

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Speaker 1: so you know, we are making changes to be more

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Speaker 1: robusts that I have to give a giant. Shout out

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Speaker 1: to our our team because between engineering, manufacturing and our

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Speaker 1: sourcing team, the miracles they worked over the last two

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Speaker 1: years to enable us to build the vehicles that we

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Speaker 1: did took a tremendous effort, and I want you to

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Speaker 1: know that we also last year we're able to do

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Speaker 1: that and our quality went up where most in the

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Speaker 1: industry went down. How important is it for you to

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Speaker 1: fill in all the different price points so you can

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Speaker 1: reach the full range of the DEA ship consumers. It's

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Speaker 1: critically important. If we want to achieve goals to get

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Speaker 1: to forty fifty and beyond a percentage of all new

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Speaker 1: vehicles sold to be electric vehicles, you have to get

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Speaker 1: into that thirty range because that's where the bulk of

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Speaker 1: the market is. And so that's why I'm so proud

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Speaker 1: of the Chevrolet Equinox and the Chevrolet Blazer, both evs

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Speaker 1: that are coming out this year. You know, the Equinox

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Speaker 1: will be around thirty dollars and the Blazer will be

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Speaker 1: in the you know, and those are very affordable vehicles

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Speaker 1: and best that they're loaded with technology, safety, technology, connectivity,

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Speaker 1: and I think the performance of those vehicles are just

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Speaker 1: going to surprise and delight our customers. And because it's

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Speaker 1: in the sweet spot of the market, we think, you know,

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Speaker 1: there's gonna be a huge opportunity to sell a lot

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Speaker 1: of them. As you look forward to the future, general motors,

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Speaker 1: where do you think you need to spend more? Where

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Speaker 1: do you think you need to spend less? Clearly we're

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Speaker 1: optimizing our internal combustion business, but we found that we

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Speaker 1: can do that with a lot less complexity. For instance,

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Speaker 1: I'm mentioned the Chevrolet trucks that will have one engine,

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Speaker 1: and so you know that allows us to do the

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Speaker 1: vehicle in a very efficient manner but still meet the

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Speaker 1: customer needs. Through COVID, we found we could take cost out,

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Speaker 1: reduced bureaucracy um and now we've got to you know,

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Speaker 1: continue to get at that, and that's why we announced

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Speaker 1: with earnings, even though it was record earnings, we announced

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Speaker 1: that and committed to take two billion dollars out of

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Speaker 1: structural cost between twenty three and twenty four. And I

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Speaker 1: know the team can do it. This is Bloomberg day

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