Speaker 1: Live from the Bloomberg Interactor Berger Studios. This is Bloomberg
Speaker 1: day Break for Friday, February seventeen. Coming up today, Hawk
Speaker 1: is Fed comments, send stocks lower ten, your treasury yields
Speaker 1: hit the highest level this year. President Biden looks to
Speaker 1: speak with Si Jinping Soon about the Chinese balloon incident.
Speaker 1: And Americans rack up nearly one trillion dollars in credit
Speaker 1: card debt. Angry New Jersey parents gathered for a school
Speaker 1: board meeting after a student committed suicide. Plus more headaches
Speaker 1: for travelers at JFK Airport. Michael bar More Ahead, I'm
Speaker 1: John Stashoward Sports. The Devil's Locked in St. Louis. The
Speaker 1: Rangers played tonight at an impressive first round for Tiger Woods.
Speaker 1: That's all straight ahead on Bloomberg day Break, The business
Speaker 1: news you need disturb your day, and just one fifteen
Speaker 1: minute podcast each pointing on Apples, Spotify, The Bloomberg Business
Speaker 1: Appen everywhere you get your podcasts. Good morning. I'm Nathan
Speaker 1: Hagar and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today. Karen. The Hawks our front end center at
Speaker 1: the FED this morning, and that is stoking fears of
Speaker 1: higher interest rates to come. Both St. Louis Fed President
Speaker 1: James Bullard and Cleveland Fed Chief Laretamester see the case
Speaker 1: for raising rates by fifty basis points at their next meeting.
Speaker 1: I think we can lock in this disinflationary trend by
Speaker 1: continuing to have policy rate increases during even though the
Speaker 1: real economies looks like it's gonna continue to grow and
Speaker 1: the labor market broadly across the country looks like it
Speaker 1: remains strong. But this juncture the incoming data have not
Speaker 1: changed my view that we will need to bring the
Speaker 1: Fed funds rate above five and hold it there for
Speaker 1: some time. Indeed, at our meeting two weeks ago, setting
Speaker 1: aside what financial market participation participants expected us to do,
Speaker 1: I saw a compelling economic case for a fifty basis
Speaker 1: point increase, which have brought the top of the target
Speaker 1: range to five percent. Both Cleveland Fed President Larettamester and St.
Speaker 1: Louis Fed Chief James Bullard are not voting members on
Speaker 1: the f O m C, but they do have influence.
Speaker 1: Right now, markets are still pricing in a twenty five
Speaker 1: basis point hike next month. Well, Nathan, those hawkish comments
Speaker 1: have stocks lower once again, this morning after dropping one
Speaker 1: point four percent yesterday. S ANDP futures are down about
Speaker 1: six tents of uppercent this morning. Ken van Lewin, CEO
Speaker 1: of Van Lewin and Company, says Mester and Bullard are
Speaker 1: rattling investors. The FED has its mandate to control inflation,
Speaker 1: and it looks like they're going to be doing that,
Speaker 1: So that's what's pushing rates up. Of course, in the
Speaker 1: markets down. Ken van Lewin notes that benchmark can your
Speaker 1: treasury yields are trading at their highest level this year.
Speaker 1: Right now there are at three point eight nine percent.
Speaker 1: Well equities are lower. Karen one stocks bucking the trend
Speaker 1: this morning. Shares of Applied Materials are up nearly one percent.
Speaker 1: The company gave a strong sales forecast thanks to increased
Speaker 1: demand for gear that makes auto and industrial chips. We
Speaker 1: get more from Bloomberg's Charlie Pellett. Applied is the biggest
Speaker 1: maker of semiconductor manufacturing equipment. It says second quarter sales
Speaker 1: will be about six point four billion dollars, that beat
Speaker 1: the average annalist estimate of six point three billion. Many
Speaker 1: of Applied Materials largest customers have slashed their budgets for
Speaker 1: new plants and equipment this year in response to a
Speaker 1: widespread glut, but its latest outlook suggests there are still
Speaker 1: bright spots in the chip industry, including automotive semiconductors in
Speaker 1: New York. Charlie Pellett Bloom Bird Day break Right, Earlie,
Speaker 1: thank you well. Let's take a look at some other
Speaker 1: stocks on the move this morning. Shares a Door dash
Speaker 1: Or a more than six percent. The food delivery company
Speaker 1: is forecasting earnings that toped estimates. Shares the DraftKings up
Speaker 1: five percent, the gambling company posting fourth quarter sales that
Speaker 1: beat estimates, And on the flip side, shares of Texas
Speaker 1: Roadhouse Or down more than six percent, the restaurant chain
Speaker 1: missing fourth quarter estimates. Let's turn to politics now, Karen,
Speaker 1: because US China relations remain on the front burner. President
Speaker 1: Biden expects to speak with President Shi Jinping soon about
Speaker 1: that Chinese balloon shot down by the US. President addressed
Speaker 1: the matter at the White House yesterday. We are going
Speaker 1: to keep our allies and the Congress contemporaries informed all
Speaker 1: we know and all we learn, and uh, I expect
Speaker 1: to be speaking with President she and I hope we
Speaker 1: have We're going to get to the bottoms. But I
Speaker 1: make no apologies for taking down that balloon. President Biden
Speaker 1: is still facing plenty of criticism from Republicans after his speech.
Speaker 1: House Armed Services Committee Chair Mike Rogers says the suspected
Speaker 1: Chinese spy balloon covered a lot of ground before the
Speaker 1: President ordered it shot down. They watched it go over Guam.
Speaker 1: Guess what. Lots of US presidents they are focused on. Asia,
Speaker 1: watched to go over Hawaii. Lots of US military presence,
Speaker 1: they're focused on Asia. We've watched the go for Alaska,
Speaker 1: by the way, last military presence, But that thing was
Speaker 1: collecting for a very long time. House Arm Services Chair
Speaker 1: Mike Rogers spoke with Our Washington corresponded Joe Matthew on
Speaker 1: Bloomberg Sound on. Catch the program weekdays at five pm
Speaker 1: Eastern on Bloomberg Radio or listen on demand wherever you
Speaker 1: get your podcasts. Will US China tensions run high here,
Speaker 1: and there's yet another thing that could complicate them even further.
Speaker 1: The White House will reportedly send its top Pentagon official
Speaker 1: to Taiwan in the coming days. That's according to the
Speaker 1: Financial Times. It's unclear how Beijing will respond. A Foreign
Speaker 1: ministry spokesman says China opposes military ties between Washington and Taipei. Well, Nathan,
Speaker 1: we turned to this week's retail sales figures, which showed
Speaker 1: Americans continue to spend despite tight policy from the Fed.
Speaker 1: Now your fresh data showing consumers have also racked up
Speaker 1: nearly one trillion dollars in credit card debt, Bloomberg said,
Speaker 1: Baxter has the story. This is definitely the result of
Speaker 1: Americans wanting to buy things and spend running smack dab
Speaker 1: into inflation. Most of the increase came in the final
Speaker 1: quarter of two and it breaks a record set in
Speaker 1: twenty nineteen, and the sixty one billion dollar up from
Speaker 1: the prior quarter was the biggest scene in data going
Speaker 1: back to nineteen ninety nine. Now, along with users just
Speaker 1: swiping and tapping more, they're also missing payments, with delinquency
Speaker 1: rates surpassing pre pandemic averages in San Francisco. I'm at
Speaker 1: Baxter Bloomberg daybreak. All right, thanks, we have fresh data
Speaker 1: on college endowment returns. They're not painting a rosy picture either.
Speaker 1: US endowment returns tumbled last year during the global market route.
Speaker 1: A new study says they lost an average eight percent
Speaker 1: on the year ending June is a reversal from an
Speaker 1: average gain of almost thirty one percent the prairie year.
Speaker 1: This is Bloomberg. We're gonna have showers ending this morning.
Speaker 1: It'll turn cloudy and breezy today. We're gonna get into
Speaker 1: the low sixties early, but temperatures will fall through the afternoon.
Speaker 1: By tonight, we'll be down in the upper twenties. Not
Speaker 1: gonna look at some of the other stories making news
Speaker 1: in New York and around the world. Good morning, Michael
Speaker 1: bar Good morning, Nathan Angry. Parents in New Jersey pack
Speaker 1: to school board meeting for the Central Regional High School
Speaker 1: OOL in Bayville, where a teenager died by suicide last
Speaker 1: week after a video allegedly captured her being bullied by
Speaker 1: four classmates. Those four students are now facing criminal charges,
Speaker 1: and the district superintendent has resigned. Parents like this man
Speaker 1: say it's time for the school board to listen to
Speaker 1: the community. His school system is currently in their national
Speaker 1: spotlight for halliblasons. This school system has and is failing
Speaker 1: our students. This administration is failing our students. I feel
Speaker 1: that everything in this district is handled in a reactionary
Speaker 1: in e jerk way when it's too late before the meeting.
Speaker 1: Acting Superintendent Dr. Douglas Corbett says the district is working
Speaker 1: with police and state officials in connection with the death
Speaker 1: of the fourteen year old student by suicide who had
Speaker 1: been cyber bullied. Of course, consequences followed, but I can't
Speaker 1: tell the victim's parents what those consequences are. Superintendent Corbett
Speaker 1: also says a thirty member crisis team is ready to
Speaker 1: respond to the concern of parents and students. The parents
Speaker 1: of a twelve year old New Jersey boy are grieving
Speaker 1: after their son collapsed and died during football practice in Newark.
Speaker 1: The tragedy occurred last week during a youth team's workout.
Speaker 1: Elijah Jordan Brown Garcia went with his ten year old
Speaker 1: brother to his wrecked team practice last Friday. He was
Speaker 1: running some drills when he collapsed at West Side Park.
Speaker 1: It took more than a half hour for e MS
Speaker 1: to arrive, but by then it was too late. The
Speaker 1: family is calling for CPR training for all coaches involved
Speaker 1: in youth sports. A terminal at JFK Airport will remain
Speaker 1: closed today. A power outage yesterday at Terminal one caused
Speaker 1: flight delays and cancelations. This woman was among passengers left stranded.
Speaker 1: We're getting news like all the other terminals are open,
Speaker 1: just this one. A footnote to the story of flight
Speaker 1: from Auckland to JFK made a U turn and went
Speaker 1: back to New Zealand after traveling about nine thousand miles.
Speaker 1: Passengers on the flight spent sixteen hours in the air
Speaker 1: to fly back to Square One. Arizona Appeals Court has
Speaker 1: rejected Republican carry Links challenge of her defeat in the
Speaker 1: Arizona governor's race to Democrat Katie Hobbs. The court denied
Speaker 1: a request to throw out election results in the state's
Speaker 1: most populous county and hold the election again. Global News
Speaker 1: twenty four hours a day, powered by more than hundred
Speaker 1: journalists analysts in over a hundred twenty countries. I'm Michael Barr.
Speaker 1: This is Bloomberg Nathan. Thanks Michael, time for the Bloomberg
Speaker 1: Sports update, brought to you by Try State Out. He
Speaker 1: Good morning, John Stansharn, Good morning. Eighth than the NBA
Speaker 1: regular season about three forts over, but now is the
Speaker 1: All Star Breaks. Sunday's game is in Utah for the
Speaker 1: first time in thirty years. Le Bron James and Yanniston's
Speaker 1: the Compo are the captains. They will not pick the
Speaker 1: squads until just before tip off the next Julius Randall
Speaker 1: will play. Jalon Bronson hopes to get a late invite
Speaker 1: because there are three Eastern Conference All Stars with injuries.
Speaker 1: DeMar De Rhodon and Jalen Brown have both missed the
Speaker 1: last couple of games, and Jani's last night had to
Speaker 1: leave with a sprained wrist. The Bucks one in Chicago.
Speaker 1: They've won twelve in a row. Phoenix lost to the
Speaker 1: l A Clippers. Kevin Durrant, now a member of the Sun's,
Speaker 1: reflected on his time with the net There was a
Speaker 1: lot of ups and downs, but I love the crime
Speaker 1: so and everybody, and broken the load of the crime too.
Speaker 1: So I built the family over there as they're gonna
Speaker 1: always be a part of my journey. So we didn't
Speaker 1: accomplish what we wanted to accomplish as far as winning
Speaker 1: a championship, just like I told him, But I enjoyed
Speaker 1: the crime kat. He added that once Kyrie Irving was traded,
Speaker 1: the Nets were a team without an identity. He still injured.
Speaker 1: Hopes to make his son's debut next month. Devils lost
Speaker 1: in St. Louis four to just their fourth regulation road lost.
Speaker 1: The Rangers are just behind the Devil's in the standings.
Speaker 1: They've won six in a row. They played tonight and Edmonton.
Speaker 1: Tiger was his first tournament in seven months at Riviera
Speaker 1: in l A. Of course he's very familiar with and
Speaker 1: Tiger finished strong. Bernie the last three holes shot two
Speaker 1: under sixty nineties, five shots behind the co leaders Maxioma
Speaker 1: and Keith Mitchell. Tim McCarver has died. He was eight one.
Speaker 1: After long playing career, he was on the Mets broadcast
Speaker 1: booth for sixteen years. He also called twenty three World
Speaker 1: Series for three different networks. John stash Award Bloomberg Sports
Speaker 1: Live from coast to coast, from New York to San Francisco,
Speaker 1: Boston to Washington, d C. Nationwide on Sirius, XAMP, the
Speaker 1: Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: Good morning, I'm Nathan Hagar. Let's take the pulse of
Speaker 1: the auto industry. Now, it has been quite the year
Speaker 1: for the sector and General Motor CEO Mary Barra says
Speaker 1: demand for expensive trucks remains strong and that's allowing GM
Speaker 1: to invest heavily in the future electric vehicles. In an
Speaker 1: exclusive interview with Bloomberg's David Weston, CEO Mary Barra laid
Speaker 1: out GM's path toward electrification while meeting demand for those
Speaker 1: gas powered vehicles. Let's bring you part of that conversation. Now,
Speaker 1: you've talked about I think a million vehicles by five
Speaker 1: e vs. Right by that point, you believe you will
Speaker 1: know or be in alcohol investment mode, that is to
Speaker 1: say you'll start being to turn to profit. Well, we've
Speaker 1: talked about I said, you know, we think our margins
Speaker 1: at that point for our ev business will be in
Speaker 1: the low single digits without i RA, a high er
Speaker 1: with IRA. But we'll still be investing because as I said,
Speaker 1: you know, we have I talked about the three battery
Speaker 1: plants we have in the not too distant future, will
Speaker 1: be announcing a fourth. But we see other investments will
Speaker 1: make their and there's still parts of the portfolio that
Speaker 1: we have an announced that will continue to add. So
Speaker 1: you know we're going to be getting the right EVY
Speaker 1: portfolio to cover the market uh through that period, so
Speaker 1: it will extend beyond twenty but once we ramp up
Speaker 1: some of these battery plants and they're running at full rate.
Speaker 1: That's what allows us on those you know, the products
Speaker 1: we have to start to really improve those margins. Are
Speaker 1: you seeing the demand you need in order to get
Speaker 1: to the levels you need for electric vehicles and people
Speaker 1: wanting these well so far, you know, our our Hummer
Speaker 1: our GMC Hummer e V is sold out. In fact,
Speaker 1: we're not even taking orders. I can't wait till I
Speaker 1: can turn that order bank on again. The lyric is
Speaker 1: doing well. By the end of first quarter, will have uh.
Speaker 1: You know, we believe delivered our our first year limited
Speaker 1: edition and and you know, vecin taking orders for the
Speaker 1: second model year and we've seen really strong interests there. Uh. Similarly,
Speaker 1: we have a quarter of a million hand raisers for
Speaker 1: the Equinox of Chevrolet Equinox and the Blazer e V
Speaker 1: and the Silverado UM that's the one that will be
Speaker 1: out in just a handful of weeks and against strong interests,
Speaker 1: were very very confident that will sell all of those
Speaker 1: this model year's UM sales uh and then some so
Speaker 1: really strong demand and I think it's because of our products,
Speaker 1: because they can more off the ultiam platform. We didn't
Speaker 1: have to make compromises in what the performance or the range.
Speaker 1: We were able to really understand what the customers looking
Speaker 1: for in that vehicle and deliver it. You mentioned supply chains,
Speaker 1: and obviously the automotive industry in general has had a
Speaker 1: tough time because it chips in the last couple of
Speaker 1: years because it'sply chains. What did you learn from that
Speaker 1: experience and most specifically, what did you learn about what
Speaker 1: general motors needs to own, what they need to control,
Speaker 1: and what they can really shop out. I think what
Speaker 1: we saw with you know, issues of the pandemic and
Speaker 1: then all the side effects of that UM that we
Speaker 1: needed to have a more resilient supply chain. And you know,
Speaker 1: we've always from a final assembly aimed to build where
Speaker 1: we sell, and I think we need to have sourcing
Speaker 1: for the different countries we operate in UM that that
Speaker 1: is more focused, so there's you know, there's more control
Speaker 1: from that perspective. So that's what we're working to do,
Speaker 1: especially as we look at our battery supply chain, what
Speaker 1: we need to build these and also from a semiconductor perspective,
Speaker 1: so you know, we are making changes to be more
Speaker 1: robusts that I have to give a giant. Shout out
Speaker 1: to our our team because between engineering, manufacturing and our
Speaker 1: sourcing team, the miracles they worked over the last two
Speaker 1: years to enable us to build the vehicles that we
Speaker 1: did took a tremendous effort, and I want you to
Speaker 1: know that we also last year we're able to do
Speaker 1: that and our quality went up where most in the
Speaker 1: industry went down. How important is it for you to
Speaker 1: fill in all the different price points so you can
Speaker 1: reach the full range of the DEA ship consumers. It's
Speaker 1: critically important. If we want to achieve goals to get
Speaker 1: to forty fifty and beyond a percentage of all new
Speaker 1: vehicles sold to be electric vehicles, you have to get
Speaker 1: into that thirty range because that's where the bulk of
Speaker 1: the market is. And so that's why I'm so proud
Speaker 1: of the Chevrolet Equinox and the Chevrolet Blazer, both evs
Speaker 1: that are coming out this year. You know, the Equinox
Speaker 1: will be around thirty dollars and the Blazer will be
Speaker 1: in the you know, and those are very affordable vehicles
Speaker 1: and best that they're loaded with technology, safety, technology, connectivity,
Speaker 1: and I think the performance of those vehicles are just
Speaker 1: going to surprise and delight our customers. And because it's
Speaker 1: in the sweet spot of the market, we think, you know,
Speaker 1: there's gonna be a huge opportunity to sell a lot
Speaker 1: of them. As you look forward to the future, general motors,
Speaker 1: where do you think you need to spend more? Where
Speaker 1: do you think you need to spend less? Clearly we're
Speaker 1: optimizing our internal combustion business, but we found that we
Speaker 1: can do that with a lot less complexity. For instance,
Speaker 1: I'm mentioned the Chevrolet trucks that will have one engine,
Speaker 1: and so you know that allows us to do the
Speaker 1: vehicle in a very efficient manner but still meet the
Speaker 1: customer needs. Through COVID, we found we could take cost out,
Speaker 1: reduced bureaucracy um and now we've got to you know,
Speaker 1: continue to get at that, and that's why we announced
Speaker 1: with earnings, even though it was record earnings, we announced
Speaker 1: that and committed to take two billion dollars out of
Speaker 1: structural cost between twenty three and twenty four. And I
Speaker 1: know the team can do it. This is Bloomberg day
Speaker 1: Break Today, your morning brief on the stories making news
Speaker 1: from Wall Street to Washington and beyond. Look for us
Speaker 1: on your podcast feed at six am. Eastern each morning
Speaker 1: on Apple, Spotify, and anywhere else you get your podcasts.
Speaker 1: You can also listen live each morning starting at five
Speaker 1: am Wall Street Time on Bloomberg eleven three oh in
Speaker 1: New York, Bloomberg in Washington, Bloomberg one oh six one
Speaker 1: in Boston, and Bloomberg nine six in San Francisco. Our
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Speaker 1: Channel one nine, the I Heart Radio app, and on
Speaker 1: Bloomberg dot Com. I'm Nathan Hager and I'm Karen Moscow.
Speaker 1: Join us again tomorrow morning for all the news you
Speaker 1: need to start your day right here on Bloomberg Daybreak