WEBVTT - Bloomberg Daybreak: March 10, 2021 - Hour 1 (Radio) 0:00:04.280 --> 0:00:06.880 Live from the Bloomberg into Rector Berger Studios. This is 0:00:07.040 --> 0:00:11.160 Bloomberg day Break for Thursday, March two. Coming up this hour. 0:00:11.720 --> 0:00:14.440 Ukraine and Russia hold the highest level talks since the 0:00:14.520 --> 0:00:18.040 start of the war. Global stocks falling after yesterday's rally, 0:00:18.440 --> 0:00:22.000 Wall Street braces for another historic reading on inflation, and 0:00:22.120 --> 0:00:25.079 Amazon shares rally on a twenty for one stuff split. 0:00:25.440 --> 0:00:28.320 The first licenses to sell recreational pot in New York 0:00:28.320 --> 0:00:31.600 would go to people with marijuana related convictions. The South 0:00:31.680 --> 0:00:34.680 Korea has elected a new president. I'm Michael laugh More, 0:00:35.520 --> 0:00:37.920 I'm John stash in Sports, third straight win for the 0:00:38.000 --> 0:00:44.320 nixt st John's advances, and the baseball lockout continues. That's 0:00:44.360 --> 0:00:48.680 all straight ahead on Bloomberg day Break on Bloomberg Elevenoro, 0:00:48.800 --> 0:00:53.080 New York, Bloomberg one, Washington, d C, Bloomberg one, O 0:00:53.240 --> 0:00:57.680 six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x 0:00:57.880 --> 0:01:01.240 M one nineteen and around the world Old on Bloomberg Radio, 0:01:01.360 --> 0:01:07.880 dot Com and via the Bloomberg Business At Good Morning, 0:01:07.880 --> 0:01:11.120 I'm Nathan Hagar and I'm Karen Moscow. And US futures 0:01:11.160 --> 0:01:13.479 are lower this morning. We're coming up to five oh 0:01:13.480 --> 0:01:15.320 one on Wall Street, and we check the markets every 0:01:15.319 --> 0:01:19.040 fifteen minutes throughout the trading day. On bloomberg SMP futures 0:01:19.080 --> 0:01:21.399 down twenty two points and down futures down a hundred 0:01:21.400 --> 0:01:24.360 and nine. NASDAG future is down to ninety eight and 0:01:24.440 --> 0:01:26.800 the ten year treasury of seven thirty seconds. He had 0:01:26.800 --> 0:01:29.440 one point nine two percent yield on the two year 0:01:29.520 --> 0:01:32.600 one point six six percent, nim ex screute oil of 0:01:32.760 --> 0:01:35.560 four percent. Nathan, all right, Karen, we begin this morning 0:01:35.560 --> 0:01:37.880 with the latest on the war in Ukraine. Foreign ministers 0:01:37.880 --> 0:01:40.360 from Russia and Ukraine have met in Turkey today for 0:01:40.400 --> 0:01:43.600 the highest level talks since the war began. Ukraine is 0:01:43.680 --> 0:01:46.920 signaling it's willing to negotiate terms to end the invasion. 0:01:47.160 --> 0:01:50.880 Bloomberg's Ed Baxter has the story. It says neutrality could 0:01:50.920 --> 0:01:54.080 be part of the equation. President Zelenski's deputy chief of 0:01:54.120 --> 0:01:58.000 staff heart Zukova says that ultimately it will be solved 0:01:58.000 --> 0:02:01.560 whether Zelenski putin face to face. So we asked the 0:02:01.600 --> 0:02:05.640 world community to existance in having these direct negotiations, to 0:02:05.680 --> 0:02:09.440 sit down with at the negotiation table. Meanwhile, Pentagon spokesman 0:02:09.520 --> 0:02:12.280 John Kirby says the US doesn't think Poland's idea to 0:02:12.320 --> 0:02:15.359 supply makes the Ukraine will work. At this point, the 0:02:15.400 --> 0:02:18.519 intelligence community has assessed the transfer of mid twenty nine 0:02:18.600 --> 0:02:22.040 to Ukraine may be mistaken as escalatory, and Kirby says 0:02:22.120 --> 0:02:25.680 that would hurt Ukraine even further. In San Francisco, I'm 0:02:25.680 --> 0:02:28.320 at back, Stir Bloomberg, Gay break Andy, thank you Meantime, 0:02:28.440 --> 0:02:32.639 Ukrainian President vladimir's Lensky is accusing Russia of war crimes, 0:02:32.720 --> 0:02:35.480 as after an air strike had a maternity hospital in 0:02:35.520 --> 0:02:39.560 the besieged city of Mariopol. An aerie Obama on an 0:02:39.560 --> 0:02:42.880 maternity hospital is the conclusive evidence that what is happening 0:02:43.000 --> 0:02:46.480 is a genocide of Ukrainians Europeans. You won't be able 0:02:46.520 --> 0:02:48.800 to say that you didn't see what happened to Ukrainians 0:02:48.800 --> 0:02:53.000 and Mary Upaul you saw. You know. Consequently, you must 0:02:53.040 --> 0:02:55.720 strengthen sanctions against Russia so that it never has the 0:02:55.800 --> 0:02:59.840 chance to continue this genocide. President Zelenski says the attack 0:03:00.160 --> 0:03:03.040 three people, including a child, and that's according to Mariopol's 0:03:03.080 --> 0:03:06.240 city council and President Zolensky is still asking NATO to 0:03:06.240 --> 0:03:08.600 set up a no fly zone Karen, but the Pentagon 0:03:08.680 --> 0:03:12.880 warns that could escalate the situation. Illinois Democrat Raja Christiana 0:03:12.919 --> 0:03:16.000 Northey sits on the House Intelligence Committee. We can't let 0:03:16.040 --> 0:03:19.120 Paton decide what we're going to do to help our 0:03:19.280 --> 0:03:23.360 friends defend their freedom. And so when President z Lensky 0:03:23.440 --> 0:03:26.200 asked us in a zoom call about a week ago 0:03:26.400 --> 0:03:29.399 to either and force a no fly zone or give 0:03:29.480 --> 0:03:31.880 him the means to do so, I think we should 0:03:31.880 --> 0:03:36.000 do whatever we can. Congressman Roger Christiana Murphy spoke with 0:03:36.040 --> 0:03:39.400 our Washington correspondent Joe Matthew on Bloomberg Sound On. Catch 0:03:39.440 --> 0:03:43.320 the program weekdays at five pm Eastern on Bloomberg Radio, Well, Nathan. 0:03:43.320 --> 0:03:45.600 The House has passed a more than thirteen billion dollar 0:03:45.640 --> 0:03:48.120 eight package for Ukraine as part of a measure to 0:03:48.160 --> 0:03:51.080 fund the US government for the coming year. Amy Morris 0:03:51.120 --> 0:03:54.440 has the details from our Bloomberg ninety one newsroom in Washington. 0:03:54.800 --> 0:03:58.320 The emergency Ukraine related spending includes six and a half 0:03:58.360 --> 0:04:01.600 billion dollars for the Pentagon. That's three billion to bolster 0:04:01.760 --> 0:04:03.800 U S troops in Europe and three and a half 0:04:03.840 --> 0:04:07.800 billion to replace weapons given to Ukraine. Coronavirus funding was 0:04:07.880 --> 0:04:10.960 taken out of the measure and domestic agencies will get 0:04:11.000 --> 0:04:13.880 their biggest increases in years under the bill. Now, it's 0:04:13.960 --> 0:04:16.000 up to the Senate to sign off on the legislation 0:04:16.040 --> 0:04:19.360 before the current stop gap measure expires Friday night. Just 0:04:19.520 --> 0:04:21.720 in case, the House also sent the Senate a four 0:04:21.800 --> 0:04:24.279 day spending bill just to buy a little extra time 0:04:24.560 --> 0:04:28.000 that one expires. March fifteen in Washington. I'm Amy Morris, 0:04:28.040 --> 0:04:31.279 Bloomberg Daybreak. Thanks Amy. The House has also approved legislation 0:04:31.360 --> 0:04:34.280 barring US imports of Russian oil. Let's get the details 0:04:34.320 --> 0:04:36.880 on that live from Bloomberg. Nitta Young, Good morning, Grinita, 0:04:36.920 --> 0:04:40.000 Good morning, Nathan. The US ban on Russian oil imports 0:04:40.160 --> 0:04:43.159 would go into effect forty five days after it's signed 0:04:43.160 --> 0:04:46.599 into law. The House legislation also takes steps to review 0:04:46.680 --> 0:04:50.520 Russia's access to the World Trade Organization, and it reauthorizes 0:04:50.520 --> 0:04:53.880 and strengthens the Magnitsky Act, which calls for sanctions on 0:04:54.000 --> 0:04:57.479 offenders of human rights. But the legislation does have a 0:04:57.560 --> 0:05:01.120 provision letting the President allows some product jacks or products 0:05:01.240 --> 0:05:04.080 rather to be imported from Russia if they're in the 0:05:04.160 --> 0:05:08.400 national interests, but they'll be subject to review by Congress. 0:05:08.839 --> 0:05:11.479 Live in New York, I'm rned a young Bloomberg Daybreak, 0:05:11.560 --> 0:05:13.479 All right, Rned to thank you. Inflation is also and 0:05:13.560 --> 0:05:16.120 focus this morning, but the relase of February is consumer 0:05:16.200 --> 0:05:19.120 price Indix. We get a preview from Bloomberg's and Michael McKee. 0:05:19.160 --> 0:05:22.160 A few weeks ago, many economists were eyeing February as 0:05:22.200 --> 0:05:24.960 the peak in the US consumer inflation. Now it's looking 0:05:24.960 --> 0:05:27.880 more like a fresh baseline. The consumer price index is 0:05:27.920 --> 0:05:31.440 forecast to rise the most since two but economists are 0:05:31.440 --> 0:05:33.719 now saying it could peak somewhere in the eight to 0:05:33.880 --> 0:05:36.880 nine percent range this month or next. The invasion of 0:05:37.000 --> 0:05:40.040 Ukraine and severe restrictions of the Russian economy will likely 0:05:40.040 --> 0:05:42.839 send the prices of staples like oil and food soaring. 0:05:43.240 --> 0:05:45.800 Without knowing how long the war will last, it's hard 0:05:45.839 --> 0:05:49.160 to know how high and for how long. Michael McKee 0:05:49.200 --> 0:05:51.800 Bloomberg Daybreak, All right, Mike. Thanks. There's also a major 0:05:51.880 --> 0:05:54.479 market event overseas. We get a policy decision from the 0:05:54.520 --> 0:05:57.760 European Central Bank this morning. Here with details is Bloomberg's 0:05:57.760 --> 0:06:01.400 Hannah George. Faced with the twins challenges of inflation and 0:06:01.480 --> 0:06:05.120 war on its border, the ECB may postpone. It's timetable 0:06:05.200 --> 0:06:08.480 setting out an end to trillions of euros of asset purchases. 0:06:08.800 --> 0:06:12.159 That would mark another abrupt shift in the central bank stance. 0:06:12.560 --> 0:06:16.320 Just last month, President Christine Lagarde turned more hawkish in 0:06:16.360 --> 0:06:19.200 the face of inflation that's almost three times the two 0:06:19.200 --> 0:06:22.600 percent target. The danger now is that the invasion and 0:06:22.720 --> 0:06:26.600 sanctions against Russia will curb Europe's rebound from the pandemic. 0:06:26.920 --> 0:06:30.159 In London, I'm Hannah, George, but in both daybreak, all right, Hannah, 0:06:30.200 --> 0:06:33.440 thank you, and incorporate news. This morning, shares of Amazon 0:06:33.560 --> 0:06:36.200 are surging. They're up more than six and a half 0:06:36.279 --> 0:06:39.080 percent in early training after announcing plans for a twenty 0:06:39.240 --> 0:06:42.320 one stock split weeken more from Bloomberg Charlie Pellett. It's 0:06:42.360 --> 0:06:46.160 subject to a vote by shareholders, which is scheduled from May. 0:06:46.560 --> 0:06:50.440 The e Commerce Giants Board also approved a ten billion 0:06:50.480 --> 0:06:55.160 dollar share buy bank program. The repurchase authorization replaces a 0:06:55.240 --> 0:06:59.800 current five billion dollar plan approved in six The company 0:07:00.000 --> 0:07:04.240 previously split its stock three times in nine and nine. 0:07:05.720 --> 0:07:09.680 In New York Charlie Bloomberg Daybreak, Okay, Charlie, thanks SMP. 0:07:09.800 --> 0:07:12.600 Futures down twenty four points down. Futures down two hundred 0:07:12.640 --> 0:07:16.200 fifteen nastack futures lower by ninety five. Straight ahead, your 0:07:16.280 --> 0:07:19.080 latest local headlines and a check of sports. This is 0:07:19.160 --> 0:07:25.080 Bloomberg at five oh seven on Wall Street. It's thirty 0:07:25.080 --> 0:07:27.160 four degrees in Central Park. Still dealing with the same 0:07:27.200 --> 0:07:29.800 issues on New Jersey Transit have been with us for 0:07:29.920 --> 0:07:32.720 much of the week. I'll have details and traffic shortly. First, 0:07:32.960 --> 0:07:34.840 Michael Bars here with more on what's going on in 0:07:34.840 --> 0:07:36.960 New York and around the world. Good morning, Michael, Good 0:07:37.000 --> 0:07:41.480 morning Nathan. The first licenses to sell to recreational marijuana 0:07:41.680 --> 0:07:45.120 customers and for distributors in New York will go to 0:07:45.160 --> 0:07:48.400 people who have a record. State officials said that people 0:07:48.400 --> 0:07:51.880 with Merillana marijuana related convictions will get DIBs on the 0:07:51.920 --> 0:07:56.240 first one D two hundred retail cannabis licenses awarded by 0:07:56.640 --> 0:08:00.080 New York State. The state says it's part of a 0:08:00.120 --> 0:08:03.560 broader effort to redress the inequities of a justice system 0:08:03.720 --> 0:08:07.120 that locked up a disproportionate number of people of color 0:08:07.240 --> 0:08:10.840 for drug crimes. Governor Kathy Hokel has said to announce 0:08:10.880 --> 0:08:15.880 the plan regulations for social equity applicants today. Meanwhile, Governor 0:08:16.000 --> 0:08:19.520 HOCl showed her support for those suffering in Ukraine from 0:08:19.560 --> 0:08:24.040 the Russian invasion, and interfaith ceremony in support of Ukraine 0:08:24.080 --> 0:08:27.480 was held at a Ukrainian Orthodox cathedral in New York City. 0:08:27.640 --> 0:08:30.600 Hokel was there and said she was immersing herself in 0:08:30.640 --> 0:08:34.120 the community. When I look out in this room, yes, 0:08:34.200 --> 0:08:37.280 I hear the words of prayer on your lips, and 0:08:37.280 --> 0:08:41.880 those are powerful words, heartfelt words. But I also see 0:08:42.040 --> 0:08:46.600 tremendous pain in your eyes. Governor HOCl praise the defiance 0:08:46.640 --> 0:08:50.000 of the Ukrainian people in the face of Russia's invasion. 0:08:50.320 --> 0:08:54.920 South Korea's conservative president elect, Yun suk yol says he 0:08:54.920 --> 0:08:58.320 would solidify an alliance with the United States, build up 0:08:58.320 --> 0:09:03.280 a powerful military, and sternly cope with North Korean provocations. 0:09:03.679 --> 0:09:06.320 Hours after he won the country's hard fought election to 0:09:06.320 --> 0:09:09.360 become its next leader, n spoke with President Joe Biden 0:09:09.400 --> 0:09:11.720 on the phone. The White House is reacting to a 0:09:11.760 --> 0:09:14.680 bill that would make it illegal in Florida to discuss 0:09:14.840 --> 0:09:18.720 sexual identity and orientation in some classrooms. It heads to 0:09:18.760 --> 0:09:21.480 the governor's mask for signing. The state Senate passed the 0:09:21.520 --> 0:09:25.160 measure despite days of protests and student walkouts. The bill 0:09:25.240 --> 0:09:28.600 supporters say they give parents more of us say in 0:09:28.679 --> 0:09:32.720 their children's education. Why Now's Press Secretary Jen Psaki, I 0:09:32.760 --> 0:09:35.439 think the most important question now is why are Florida 0:09:35.559 --> 0:09:39.040 leaders deciding the need to discriminate against kids who are 0:09:39.040 --> 0:09:41.200 members of the l g B t q I community. 0:09:41.200 --> 0:09:44.000 What prompts them to do that? Is it meanness? Is 0:09:44.040 --> 0:09:46.520 it wanting to make kids have more difficult times in 0:09:46.600 --> 0:09:51.000 school and their communities? Spokesperson Jen Saki. Global News twenty 0:09:51.000 --> 0:09:53.719 four hours a day on air and on Bloomberg Quick Take, 0:09:53.800 --> 0:09:56.800 powered by more than twenty seven hundred journalists and analysts 0:09:56.840 --> 0:09:59.000 in more than a hundred twenty countries. I'm michaela bar 0:09:59.120 --> 0:10:06.599 This is Bloomberg. Alright, Michael, thank you, Coming up to 0:10:06.679 --> 0:10:08.720 five ten on Wall Street time for the Bloomberg Sports 0:10:08.800 --> 0:10:11.000 Updake and what are you? John stash Ower? Your morning, Nathan? 0:10:11.040 --> 0:10:13.840 What's going on with the Knicks? Into seven game losing straight, 0:10:14.000 --> 0:10:17.000 sixteen losses in the span of nineteen games, the Knicks 0:10:17.000 --> 0:10:18.640 has suddenly won three in a row. They had gone 0:10:18.640 --> 0:10:20.600 all those two months without winning two straight, and over 0:10:20.640 --> 0:10:24.480 their last six quarters, Knicks have outscored the opposition by 0:10:24.559 --> 0:10:27.560 sixty one points. It was easy in Dallas Paul Louse 0:10:27.880 --> 0:10:32.439 trying to get it back dives quarter three. It's good 0:10:34.240 --> 0:10:39.640 Evan four titleson the Knicks fifty five Dallas, twenty seven PM. 0:10:39.679 --> 0:10:42.640 The Call Final one oh seven seventy seven Knicks five 0:10:42.720 --> 0:10:45.360 fifth straight win in Dallas. That Alice native Julius Randall 0:10:45.400 --> 0:10:48.160 scored twenty six match shot only thirty one percent. They 0:10:48.200 --> 0:10:51.280 were six for forty four on three pointers. They missed 0:10:51.280 --> 0:10:54.079 their first nineteen at the Garden St. John's beat to 0:10:54.120 --> 0:10:56.600 Paul ninety two to seventy three to advanced to place 0:10:56.679 --> 0:10:58.520 billing Ova Today. At the Big East Tournaments, Seaton Hall 0:10:58.600 --> 0:11:01.640 got by Georgetown p seven fifty three. The Hoya has 0:11:01.640 --> 0:11:04.000 never won a Big East game all season. Butler upset 0:11:04.120 --> 0:11:07.280 Xavier and overtime. At the ACC Tournament in Brooklyn, Syracuse. 0:11:07.679 --> 0:11:10.480 Blue out Florida State by thirty nine, but top score 0:11:10.520 --> 0:11:13.680 Buddy Bayhon throw a punch and the coach's son suspended 0:11:13.960 --> 0:11:17.040 for today's game. With two heartbreak for Iona at one 0:11:17.080 --> 0:11:19.920 point lost a writer at the mc turney in Atlantic City, 0:11:19.960 --> 0:11:22.520 the Bronx wanted on a shot with seven seconds left 0:11:22.520 --> 0:11:26.480 their fourteen and eighteen. They advanced Iona at twenty five 0:11:26.520 --> 0:11:28.960 and six. Will settle for the n i T and 0:11:28.960 --> 0:11:30.880 the baseball labor dispute is now said to be a 0:11:30.920 --> 0:11:34.600 new conflict whether to institute a draft for international players. 0:11:34.600 --> 0:11:37.360 If it's not one thing, it's another, and still no deal. 0:11:37.400 --> 0:11:40.640 The lockout continues the first four series of the season 0:11:40.679 --> 0:11:44.520 of Malvin Kids. John stash Award Bloomberg Sports. Maybe all right, John, 0:11:44.559 --> 0:11:47.200 thank you. Red headline just crossing the Bloomberg terminal on 0:11:47.520 --> 0:11:51.200 talks between the Russian and Ukrainian foreign ministers to meetro 0:11:51.280 --> 0:11:54.320 Kulava of Ukraine says Russia. Convada will continue its attack 0:11:54.840 --> 0:11:58.160 until its demands are met. You get the very latest 0:11:58.240 --> 0:12:00.640 on the war in Ukraine next with Bloomberg Smart Champions. 0:12:00.679 --> 0:12:08.120 Stay with us. This is Bloomberg. Good morning, Bloomberg, eleven 0:12:08.200 --> 0:12:10.520 three oh Weather. Partly sunny today, up or forties for highs, 0:12:10.559 --> 0:12:13.680 mix of sunning clouds, upper forties tomorrow, rainy, wendy, maybe 0:12:13.679 --> 0:12:16.680 a little bit of wet snow on Saturday. Temperatures falling 0:12:16.679 --> 0:12:22.440 through the afternoon. Right now thirty four in Central Park Markets. 0:12:22.559 --> 0:12:25.640 Headlines and breaking news twenty four hours a day at 0:12:25.640 --> 0:12:29.040 Bloomberg dot Com, The Bloomberg Business at and at Bloomberg 0:12:29.120 --> 0:12:38.960 Quick takes a Bloomberg business lash and I'm Karen Moscow. 0:12:39.120 --> 0:12:42.520 US stock index futures and European shares are falling amid concern. 0:12:42.679 --> 0:12:47.239 US inflation accelerated for a six successive month, while investors 0:12:47.280 --> 0:12:50.280 turned to the European Central Bank degage policymakers response to 0:12:50.320 --> 0:12:52.880 the war in Ukraine. We checked the markets every fifteen 0:12:52.880 --> 0:12:55.679 minutes through While the trading day on Bloomberg SNP future 0:12:55.760 --> 0:12:58.560 is down thirty three points down, futures down two one 0:12:58.960 --> 0:13:01.559 nasdack futures down on one d twenty nine, the decks 0:13:01.600 --> 0:13:04.320 in Germany's down two and a quarter percent. Can your 0:13:04.360 --> 0:13:06.719 treasury up six thirty seconds? He had one point nine 0:13:06.760 --> 0:13:08.920 three percent. They yield on the two year one point 0:13:08.920 --> 0:13:12.080 six six percent. Nim X scrude oil is a four 0:13:12.120 --> 0:13:14.319 point nine percent of five dollars thirty six cents and 0:13:14.360 --> 0:13:17.280 a hundred fourteen dollars of Beryl comex s goold is 0:13:17.320 --> 0:13:19.720 up six tents percent or twelve dollars fifty cents at 0:13:19.720 --> 0:13:23.040 two thousand dollars. Announced. The euro one point one zero 0:13:23.160 --> 0:13:25.680 three three against the dollar. British found one point three 0:13:25.720 --> 0:13:28.720 one five one. The ends in one fifteen point nine 0:13:28.800 --> 0:13:32.000 eight and the and Bitcoin this morning lower down six 0:13:32.000 --> 0:13:34.199 and a half percent at thirty nine thousand, one hundred 0:13:34.320 --> 0:13:37.400 seventy dollars. That's a Bloomberg Business Flash. Now here's Michael 0:13:37.400 --> 0:13:39.840 bar with more on what's going on around the world. Michael, 0:13:40.120 --> 0:13:42.760 thank you very much. Karen. Talks between the feign ministers 0:13:42.760 --> 0:13:45.440 of Russia and Ukraine just wrapped up on the sidelines 0:13:45.720 --> 0:13:49.000 of a diplomatic summit in Turkey. Russia conveyed it will 0:13:49.040 --> 0:13:53.319 continue attacks on Ukraine until demands are met. City Council 0:13:53.440 --> 0:13:56.640 of Maryupole says an air strike on a hospital killed 0:13:56.679 --> 0:13:59.880 three people, including a child. The World Health Are going 0:13:59.920 --> 0:14:02.720 to Zation said it has confirmed eighteen attacks on medical 0:14:02.720 --> 0:14:06.480 facilities since the Russian invasion began two weeks ago. Major 0:14:06.559 --> 0:14:09.240 League Baseball has got another week of the upcoming season 0:14:09.320 --> 0:14:13.000 with the lockout in its day. The decision means the 0:14:13.040 --> 0:14:16.360 season won't begin until April fourteenth, at the earliest. In 0:14:16.400 --> 0:14:19.360 the NBA, the Knicks and Celtics won, the Wizards lost. 0:14:19.560 --> 0:14:22.440 In the NHL, the Capitols lost in overtime to the Oilers. 0:14:22.480 --> 0:14:25.560 For three Global News twenty four hours a day on 0:14:25.720 --> 0:14:28.960 air and on Bloomberg Quicktake, powered by more than twenty 0:14:29.000 --> 0:14:32.040 seven hundred journalists and analysts more than a hundred twenty countries. Hi, 0:14:32.160 --> 0:14:34.720 Michael Barr, this is Bloomberg Nathan. Thanks Michael. It's five 0:14:34.800 --> 0:14:37.960 nineteen on Wall Street Live from the Bloomberg Intractor Broker's studios. 0:14:37.960 --> 0:14:40.160 This is Bloomberg day Break. Let's get more now on 0:14:40.200 --> 0:14:42.360 the war in Ukraine. And these talks have just wrapped 0:14:42.400 --> 0:14:44.960 up between the foreign ministers of Ukraine and Russia. Mark 0:14:45.040 --> 0:14:47.640 Champion is with us now, Bloomberg New Senior reporter for 0:14:47.680 --> 0:14:50.320 International Affairs. Mark, It's good to have you with us. 0:14:50.360 --> 0:14:52.800 And just judging from the headlines that across the Bloomberg 0:14:52.880 --> 0:14:55.720 terminal coming out of these talks between Demetro Kuleba and 0:14:56.080 --> 0:15:00.680 Sergey lavrav it doesn't sound like much headway was made. No, 0:15:01.200 --> 0:15:04.320 there is a long way to go to cross uh, 0:15:04.680 --> 0:15:06.800 you know, to to get these two sides to meet. 0:15:07.280 --> 0:15:09.600 You know, on the one hand, it's already progressed at 0:15:09.640 --> 0:15:13.200 their meeting and at the diplomatic level is increased from 0:15:13.240 --> 0:15:17.360 sort of technical meetings up to now the foreign ministers. 0:15:17.400 --> 0:15:19.600 But you know, you have to kind of look at 0:15:19.640 --> 0:15:22.920 what each side is demanding. That the the Russians are 0:15:22.960 --> 0:15:27.040 demanding that that there should be recognition of Crimea, which 0:15:27.080 --> 0:15:29.720 was the next in two thousand and fourteen, as Russian territory, 0:15:29.840 --> 0:15:34.200 and their demanding also that the don Ba separatist territories 0:15:34.240 --> 0:15:36.920 where there's been a wars instude thousand and fourteen um 0:15:37.160 --> 0:15:41.320 that those should be recognized by Ukraine as independent states, 0:15:41.760 --> 0:15:45.520 so that you know, a significant chunk of Ukrainian territory 0:15:45.560 --> 0:15:50.320 would be acknowledged as no longer part of Ukraine. That is, 0:15:50.920 --> 0:15:55.560 as President Zelinsky has already said, kind of a non starter. 0:15:55.800 --> 0:15:58.760 They're willing to talk about status, to discuss status, what 0:15:58.920 --> 0:16:01.440 kinds of autonomy, that sort of thing, but they're not 0:16:01.480 --> 0:16:06.240 willing to just recognize um. And in the Ukrainian position 0:16:06.320 --> 0:16:08.560 is that they before they even start talking about those 0:16:08.600 --> 0:16:12.240 kinds of substant things, they want the Russian troops out, 0:16:12.280 --> 0:16:15.000 they want to cease fire, and as Labor said as 0:16:15.000 --> 0:16:19.040 he left, that's not happening. Are we seeing some signs 0:16:19.160 --> 0:16:22.640 of at least a little bit of progress when it 0:16:22.680 --> 0:16:26.160 comes to the idea of neutrality. We talked to the 0:16:26.200 --> 0:16:29.880 deputy chief of staff to President Zelinski yesterday and he 0:16:30.040 --> 0:16:32.120 said that that could be on the table. And we've 0:16:32.120 --> 0:16:36.200 also heard from Russian diplomats saying that they're not looking 0:16:36.240 --> 0:16:40.320 for regime change in Ukraine? Does that show some possibility 0:16:40.360 --> 0:16:45.480 that we could see at least some diplomatic movement. Absolutely, 0:16:45.520 --> 0:16:49.320 and we're we've already moved significantly from where we were 0:16:49.440 --> 0:16:53.040 saying on February, you know, the day after this began. 0:16:53.560 --> 0:16:57.520 I mean, at that time President Putin made very clear 0:16:58.080 --> 0:17:01.600 that he wanted Ukraine first of all, demilitarized. So that 0:17:01.640 --> 0:17:05.199 meant the no armed force for Ukraine at all, it 0:17:05.240 --> 0:17:10.160 would have to lay down its arms and be uh disbanded. Um. 0:17:10.200 --> 0:17:14.320 And secondly it meant that the denotification is what he 0:17:14.359 --> 0:17:17.800 called it, but that was regime change. Um. And they 0:17:17.800 --> 0:17:22.919 are no longer talking talking about denotification, Uh. They the 0:17:22.960 --> 0:17:25.959 demilitarization is still talking about but it seems like that 0:17:26.080 --> 0:17:31.119 might be negotiable into you know, some level of Ukrainian 0:17:31.200 --> 0:17:34.400 armed force. But but for the rest you know, we're 0:17:34.400 --> 0:17:38.800 still very a long way apart. Uh, and some very 0:17:38.880 --> 0:17:41.360 very difficult You think that for eight years they were 0:17:41.400 --> 0:17:45.600 trying to negotiate the terms of a political settlement for 0:17:45.640 --> 0:17:48.679 those separatist territories in the don Bus and they weren't 0:17:48.680 --> 0:17:50.960 able to do it. You know, in a sense we're 0:17:51.000 --> 0:17:55.920 back at that position, but with an arm conflict going on. Yeah, 0:17:55.960 --> 0:17:59.080 and when we see that armed conflict going on, we've 0:17:59.119 --> 0:18:02.440 looked at the reports of Russian forces getting bogged down 0:18:02.520 --> 0:18:06.960 to the north and of course these seemingly indiscriminate attacks 0:18:07.080 --> 0:18:10.520 on civilian sites and places like Mariopol. What does that 0:18:10.600 --> 0:18:15.160 tell us about where this war could be going from here? Mark, Well, 0:18:15.200 --> 0:18:17.280 I think it tells us something about why there has 0:18:17.320 --> 0:18:21.680 been movement, especially on the Russian side. I think each 0:18:21.720 --> 0:18:25.760 side is under enormous pressure. That the Ukrainians simply because 0:18:25.760 --> 0:18:28.560 the people are being killed in numbers and their cities 0:18:28.600 --> 0:18:33.119 and infrastructure are being destroyed. So the Ukrainian side is 0:18:33.200 --> 0:18:36.680 very much under pressure. But so to President Putin, because 0:18:36.720 --> 0:18:41.480 he went in with a plan where whereby Ukraine would 0:18:41.520 --> 0:18:45.320 be taken fairly quickly, within days. His troops would just 0:18:45.960 --> 0:18:49.200 drive almost into the center of the towns and would 0:18:49.240 --> 0:18:54.199 take uh take down the government in Kiapan in other cities, 0:18:54.240 --> 0:18:56.719 and just replace it with something more friendly to Russia. 0:18:57.040 --> 0:19:00.600 And then he could organize the terms on his on 0:19:00.640 --> 0:19:04.600 his his leisure. That simply didn't happen, and so now 0:19:04.640 --> 0:19:07.000 he's had to move to a different military strategy which 0:19:07.200 --> 0:19:12.119 involves basically shelling cities into submission and hoping that eventually 0:19:12.800 --> 0:19:16.720 Zelenski will submit because of the pressure. But that is 0:19:16.800 --> 0:19:21.439 a that is a strategy with no obvious UH time 0:19:21.480 --> 0:19:25.240 frame for the exit, and as we know from conflicts elsewhere, 0:19:25.720 --> 0:19:28.760 it can take a long time. Um, you know, suppress 0:19:28.800 --> 0:19:31.760 suppressing a city. If you think of what happened in Yugoslavia, 0:19:31.920 --> 0:19:34.240 in the eastern city of Kava, there was a famous 0:19:34.240 --> 0:19:38.680 stiege that that that took ninety days. Thanks for this, Mark, 0:19:38.720 --> 0:19:40.840 great to have you with us this morning. Mark Champion, 0:19:40.880 --> 0:19:44.760 Senior reporter for International Affairs for Bloomberg News. As we 0:19:44.840 --> 0:19:50.640 continue monitoring developments following the foreign ministers meeting between Russia 0:19:50.800 --> 0:19:55.000 and Ukraine, Russia's Sergey Lavrov is now speaking. Will continue 0:19:55.040 --> 0:19:59.639 bringing his comments and UH developments to you as the 0:19:59.680 --> 0:20:03.200 morning Progressive. Stay with us. You're listening to Bloomberg Daybreak 0:20:07.359 --> 0:20:10.200 Bloomberg eleven three oh Weather partly sunny, upper forties today, 0:20:10.280 --> 0:20:13.760 mix of sun and clouds. Tomorrow upper forties, rainy for Saturday. 0:20:13.760 --> 0:20:16.080 That rain could mix with some wet snow is Temperatures 0:20:16.240 --> 0:20:19.120 dropped through the day. Right now, thirty four in Central Park, 0:20:22.000 --> 0:20:26.560 broadcasting live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.640 --> 0:20:30.000 Bloomberg Living Free on to Washington, d C, Bloomberg nine 0:20:30.440 --> 0:20:33.960 one to Boston, Bloomberg one O six one does San Francisco, 0:20:34.040 --> 0:20:37.240 Bloomberg nine sixty to the Country, Sirius XM to A 0:20:37.320 --> 0:20:40.639 one ninet, and around the globe the Bloomberg business in 0:20:40.720 --> 0:20:50.760 Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five 0:20:50.760 --> 0:20:53.199 thirty on Wall Street. Good morning. I'm Nathan Hager and 0:20:53.240 --> 0:20:56.200 I'm Karin Moscow. We're just about four hours away from 0:20:56.240 --> 0:20:58.200 the open of US trading. Let's catch you up to 0:20:58.240 --> 0:21:00.000 date on the news you need to know. The show 0:21:00.000 --> 0:21:05.879 our arraid sirens in Ukraine's capital Kiev this morning. As 0:21:05.960 --> 0:21:10.200 Russia's invasion enters its third week, Ukraine's President Vladimir Zelenski 0:21:10.320 --> 0:21:14.160 says he's willing to consider compromises, but he won't seed territory. 0:21:15.440 --> 0:21:18.040 You must strengthen sanctions against Russia so that it never 0:21:18.119 --> 0:21:20.920 has the chance to continue this genocide. You need a 0:21:20.960 --> 0:21:23.760 pressure Russia so that it sits at the negotiating table 0:21:23.840 --> 0:21:27.199 and ends this barbarous war. Zelenski says he has not 0:21:27.280 --> 0:21:31.120 spoken to Vladimir Putin. Foreign ministers from Russia and Ukraine's 0:21:31.119 --> 0:21:34.800 spoken Turkey today with no breakthrough, Moscow said it well 0:21:34.840 --> 0:21:38.040 continue its attack until demands are met. It's seeking surrender 0:21:38.080 --> 0:21:41.240 from Ukraine. Like in Washington, Karen, Congress is ramping up 0:21:41.240 --> 0:21:43.280 pressure on Moscow. The House has passed to build a 0:21:43.280 --> 0:21:46.320 band oil imports from Russia. Bloomberg's Ranita Young joins US 0:21:46.320 --> 0:21:48.879 Live with the story, Ranita Nathan. The US ban on 0:21:49.000 --> 0:21:52.119 Russian oil imports would go into effect forty five days 0:21:52.240 --> 0:21:55.600 after it's signed into law. The House legislation also takes 0:21:56.080 --> 0:21:59.679 steps to review Russia's access to the World Trade Organization, 0:22:00.000 --> 0:22:03.200 and it reauthorizes in strengthens the Magnitsky Act, which calls 0:22:03.240 --> 0:22:06.800 for sanctions on offenders of human rights. But the legislation 0:22:06.880 --> 0:22:10.280 does have a provision letting the President allows some products 0:22:10.320 --> 0:22:13.000 to be imported from Russia, and that's if they're in 0:22:13.040 --> 0:22:17.080 the national interests, but they'll be subject to review by Congress. 0:22:17.480 --> 0:22:19.720 Live in New York, I'm gonna need a Young Bloomberg 0:22:19.760 --> 0:22:22.440 Daybreak alright, rened to thank you, turning to All Street today, 0:22:22.480 --> 0:22:25.360 it's all about inflation. The consumer price index is expected 0:22:25.400 --> 0:22:27.920 to increase it at seven point nine percent annual rate. 0:22:28.160 --> 0:22:31.560 Bloomberg's Finny Deal. Judai says, more red hot inflation. It's 0:22:31.600 --> 0:22:34.080 probably going to get worse as the war in Ukraine 0:22:34.080 --> 0:22:37.520 sends global food and energy prices higher. Ukraine is a 0:22:37.560 --> 0:22:41.919 major wheat exporter, Russia oil and gas. For now, economists 0:22:41.960 --> 0:22:45.080 are saying US inflation could peak somewhere around eight percent 0:22:45.200 --> 0:22:48.160 or nine percent, perhaps in a month or two. Final 0:22:48.280 --> 0:22:51.960 Judace Bloomberg daybreak. Al Right, Vinnie, thank you. In overseas markets, 0:22:51.960 --> 0:22:54.880 the focus is on monetary policy. The European Central Bank 0:22:54.920 --> 0:22:58.199 decides on whether to raise interest rates in these asset purchases. 0:22:58.240 --> 0:23:01.800 That strategy could be delayed as it navigates inflation and 0:23:01.880 --> 0:23:05.320 economic shocks from the war. I'm back here in the US, Nathan. 0:23:05.359 --> 0:23:07.880