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Speaker 1: By from the Bloomberg Interactive Burger Studios. This is Bloomberg

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Speaker 1: day Break for Thursday, February third, two. Coming up this hour,

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Speaker 1: Nastank futures plunge after disappointing earnings from the parent of Facebook.

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Speaker 1: Spotify shares tumble as the company forecast slowing subscriber games.

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Speaker 1: On Capitol Hill, hearings began for President Biden's picks for

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Speaker 1: the FED and the Bank of England at ECB announced

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Speaker 1: policy decisions. President Biden visits New York City today on

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Speaker 1: gun violence, Plus, mourners said goodbye to the second NYPD

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Speaker 1: officer ambushed last month. Online Blooblomer More Ahead, I'm John

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Speaker 1: Stashtown Sports, the Nicks loss at the Garden to Memphis,

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Speaker 1: the Nets lost again in Sancramento. The Islanders shout out

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Speaker 1: by Seattle. That's all straight ahead on Bloomberg day Break

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Speaker 1: on Bloomberg Element Free on New York, Bloomberg Washington, d C,

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Speaker 1: Bloomberg one O six one, Boston, Bloomberg nine sixties, San Francisco,

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Speaker 1: Sirius x M one nineteen and around the world down

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Speaker 1: Bloomberg Radio dot Com and via the Bloomberg Business At

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Speaker 1: good Morning, I'm Nathan Hager and I'm Karen. Moscow and

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Speaker 1: US Dock Index futures are falling on week Kech earnings.

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Speaker 1: We're coming up to six o one on Wall Street,

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Speaker 1: and we check the markets every fifteen minutes throughout the

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Speaker 1: trading day. On Bloomberg, U S and P Future is

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Speaker 1: down fifty points down, futures down one hundred eight at

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Speaker 1: Nastack Future is down three hundred twenty six. That's down

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Speaker 1: two point two percent. The decks in Germany's down half percent.

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Speaker 1: The ten year treasury up one thirty second. He had

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Speaker 1: one point seven six percent yield on the two year

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Speaker 1: one point one three percent. Nin Max Screwed oils down

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Speaker 1: one point six percent on a dollar thirty nine at

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Speaker 1: eighty six dollars eighty seven cents a barrel, and Comex

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Speaker 1: Gold is down at third of a percent. Nathan, Well,

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Speaker 1: this big drop in Nasdaq futures are seeing this morning.

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Speaker 1: Karen comes after four straight days of gains, but disappointing

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Speaker 1: earnings from Facebook are the catalyst for this morning's declines.

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Speaker 1: Shares of the parent company Meta are down twenty percent

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Speaker 1: in early training. Ed Ludlow joins us with more from

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Speaker 1: our Bloomberg nine sixty news room in San Francisco. This

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Speaker 1: was the first quarter in anyone's memory where the core

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Speaker 1: product Facebook dot Com or the Facebook app didn't grow

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Speaker 1: at all, and executives on the core attributed that to

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Speaker 1: competition in the form of TikTok and YouTube, so principally

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Speaker 1: in video where they say the attentions of young people

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Speaker 1: are being stolen away and that is really impacting growth.

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Speaker 1: There was, of course a lot of questions about the metaverse,

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Speaker 1: and for the first time we got financials on Facebook

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Speaker 1: Reality Labs, the business unit really working on the metaverse

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Speaker 1: for four year twenty one. It was a loss of

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Speaker 1: ten billion dollars and so that now has become the

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Speaker 1: question for Wall Street. Bloomberg Intelligence say that that operating

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Speaker 1: loss from Facebook Reality Labs could translate to ten percentage

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Speaker 1: points of margin erosion for meta in twenty two. Ed Ludlow,

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Speaker 1: Boomberg US, San Francisco, and thank you. Disappointing Facebook results

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Speaker 1: are weighing on other social media company and says this

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Speaker 1: morning shares a Twitter, Snap and Pinterest or falling Snap

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Speaker 1: is down more than fiftcent, but Twitter and Pinterest are

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Speaker 1: both lower by more than seven percent. Now We're also

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Speaker 1: seeing big losses for Spotify. This morning, Karen, Earnings and

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Speaker 1: forecasts from the streaming and podcast service fell short of estimates,

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Speaker 1: and that stock is now down more than eight percent.

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Speaker 1: Let's get more live with Bloomberg's Rnita Young. Good morning, Rnita,

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Speaker 1: Good morning Nathan. After a month of controversy over podcast

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Speaker 1: host Joe Rogan, Spotify has a more immediate business problem,

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Speaker 1: a slowdown in growth to start the year. Spotify expects

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Speaker 1: the end of the first quarter with total users and

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Speaker 1: subscribers below forecasts. The company blames it on a strong

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Speaker 1: into business for the streamer has boomed during the pandemic,

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Speaker 1: but with one thirty five million users added since twenty nineteen,

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Speaker 1: now almost half pay for the service. Live in New York,

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Speaker 1: I'm Goranita Young, Bloomberg Daybreak. I need to thank you

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Speaker 1: up nextually get results from Amazon on The company of

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Speaker 1: reports earnings this afternoon, and Bloomberg's Tom Busby has a preview.

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Speaker 1: The online retail giant is expected to post record revenue

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Speaker 1: for the holiday quarter, despite concerns about slowing growth as

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Speaker 1: consumers pulled back on their spending, even though more of

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Speaker 1: us were dining out again, traveling shopping in stores again

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Speaker 1: last quarter. Look for revenues of one hundred thirty seven

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Speaker 1: point eight three billion dollars, thanks in part to continued

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Speaker 1: growth and it's Amazon Web Services unit, and because of inflation,

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Speaker 1: many analysts expect Amazon to raise the price of a

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Speaker 1: Prime membership as a quick boost to revenues. The last

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Speaker 1: price hike to one nineteen dollars a year was in

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Speaker 1: twenty eighteen. Tom Busby, Bloomberg Daybreak. All right, Tom, thank you.

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Speaker 1: Let's turn to Capitol Hill now where it's all about

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Speaker 1: the Fed. Today, hearings begin on President Biden's picks for

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Speaker 1: the Central Banks Board. Amy Morris has a preview from

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Speaker 1: our Bloomberg newsroom in Washington. All three nominees, Philip Jefferson,

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Speaker 1: Lisa Cook and Sarah Bloom Raskin, have said they placed

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Speaker 1: the high priority on tackling inflation. But that's also a

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Speaker 1: politically dangerous notion for the Biden administration, which is pushing

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Speaker 1: against accusations that it's spending policies are driving price increases.

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Speaker 1: In prepared remarks, the nominees will make it clear there,

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Speaker 1: in line with Chairman j Pel look for Republicans on

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Speaker 1: the committee to quiz the nominees extensively on their commitment

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Speaker 1: to acting aggressively against inflation, even if that hurts employment.

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Speaker 1: In Washington, I maybe more as Bloomberg daybreak, Amy, thank

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Speaker 1: you Economic data also and focus. This morning, we get

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Speaker 1: a reading on jobless claims ahead of tomorrow's employment report,

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Speaker 1: and Economist see weekly jobless claims falling again as the

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Speaker 1: Omicron variant eases. Bloomberg's viney down. Judais reports jobless claims

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Speaker 1: piled up during the worst of the Omicron outbreak. Bloomberg

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Speaker 1: Economics anticipates a quick turnaround now as the COVID nineteen

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Speaker 1: variants subsides subsides faster than a comparable episode at the

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Speaker 1: end of In the Power Report, jobless claims drop for

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Speaker 1: the first time in four weeks. They fell to a

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Speaker 1: half century low in December. The government issues its monthly

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Speaker 1: employment report Friday, and it could be weak the Omicron.

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Speaker 1: Bloomberg day Break All right, Vinnie. Thanks. In Europe we

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Speaker 1: get a double whammy from central banks this morning is

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Speaker 1: both the Bank of England and the European Central Bank

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Speaker 1: make policy decisions. Let's go live to London and get

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Speaker 1: a preview with bloombergs Max Ramsey, Good morning, Max, morning

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Speaker 1: to you, Nathan and Karen. Yes, we'll get that policy

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Speaker 1: decision from the BOE in under an hour and just

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Speaker 1: over an hour and a half till the ECB, and

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Speaker 1: the expectation here is all about divergence. The Bank of

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Speaker 1: England is expected to deliver the first back to back

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Speaker 1: interest rate hike since two thousand and four and take

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Speaker 1: the first steps towards unwinding pandemic stimulus. The ECB there

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Speaker 1: has been insisting a rate hike this year is unlikely,

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Speaker 1: but they do meet with the backdrop of hot inflation.

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Speaker 1: January CPI came in at a surprise five point one

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Speaker 1: percent yesterday, blowing past expectations and over double the ECB's target.

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Speaker 1: Live in London, Max Ramsey, Bloomberg Daybreak, Max, thank you. Well.

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Speaker 1: Back here in the US, tax season getting underway, and

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Speaker 1: Bloomberg News has learned the I r S is hiring

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Speaker 1: about twelve hundred people to help navigate what could be

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Speaker 1: of the most challenging tax filing seasons in years. The

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Speaker 1: influx of additional help comes as the I r S

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Speaker 1: began this filing season with a backlog of fos to

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Speaker 1: ten million unprocessed returns from previous years, and that compares

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Speaker 1: to fewer than one million in normal years. Straight to

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Speaker 1: had your latest local headlines and this is Bloomberg. Thanks

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Speaker 1: scaring at six o seven on Wall Street where in

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Speaker 1: Central Park and still dealing with a crash on the

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Speaker 1: Gothels Bridge. Ran to the New Jersey Turnpike. Michael barrs

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Speaker 1: here with what else is going on in New York

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Speaker 1: and around the world. Michael, thank you very much, Nathan.

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Speaker 1: President Joe Biden has scheduled to visit New York City

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Speaker 1: today to discuss fighting a surge in gun violence and

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Speaker 1: cities across the nation. This woman, who lives in Harlem

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Speaker 1: is scared of the violence. Her son was shot. It's

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Speaker 1: scary when you have a baby sitting in the car

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Speaker 1: with its parent and being shot. It's scary when you

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Speaker 1: have a mother pushing her chow down the street. So

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Speaker 1: far as six NYPD officers have been shot this year alone.

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Speaker 1: Officers masked by the thousands on Fifth Avenue for New

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Speaker 1: York City second police funeral in less than a week.

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Speaker 1: They mourned Officer Wilbert Mora at St. Patrick's Cathedral. More

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Speaker 1: and his partner, Jason Rivera, was shot January one, while

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Speaker 1: responding to a call about the domestic argument in Harlem.

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Speaker 1: It is New Yorkers against the killers, and we will

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Speaker 1: not lose. We will protect our city. New York Mayor

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Speaker 1: Eric Adams spoke at more as funeral. Even when the

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Speaker 1: bullet hits the body of our citizens, the emotional trauma

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Speaker 1: continues to rip the anatomy of our city, and the

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Speaker 1: pathway never ends. Mayor Adams says, more Of, who was

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Speaker 1: twenty seven, joined the NYPD. In October of twenty eighteen.

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Speaker 1: Former Alaska Governor Sarah Pale and his due back in

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Speaker 1: the New York City courtroom, more than a week after

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Speaker 1: her libel trial against The New York Times was postponed

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Speaker 1: because she had COVID nineteen. Away from court, Palin, who

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Speaker 1: was unvaccinated, caused to stir by dining out in an

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Speaker 1: upscale Manhattan restaurant twice just days after her positive status

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Speaker 1: was made public. Four people have been arrested in connection

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Speaker 1: with the overdose death of wire actor Michael K. Williams

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Speaker 1: at his Brooklyn home last September. Damian Williams is the

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Speaker 1: u S Attorney for the Southern District of New York. Dendy.

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Speaker 1: Opioids like fencinnel and heroin don't care about who you

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Speaker 1: are or what you've accomplished. They just feed edition and

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Speaker 1: lead a tragedy. U S Attorney Williams says this is

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Speaker 1: a public health crisis that has to stop. A new

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Speaker 1: winter storm is causing havoc across the US, ultimately affecting

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Speaker 1: more than a hundred thirty million Americans. Snow will stretch

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Speaker 1: from Texas to the East Coast. Today Global News twenty

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Speaker 1: four hours a day on air and on Bloomberg Quick Take,

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Speaker 1: powered by more than twenty seven journalists and analysts more

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Speaker 1: than a hundred twenty countries. Michael Barr, this is Burke,

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Speaker 1: Nathan Okay, Michael, Thanks to six ten on Wall Street.

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Speaker 1: Time to the Bloomberg Sports Update with John Sesshown. If

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Speaker 1: the Knicks were playing catch up all night at the Garden,

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Speaker 1: the only time they led Memphis was und enough and

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Speaker 1: the Knicks were down by nineteen cut at to six.

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Speaker 1: Grizzlies went back ahead by fifteen. Nick slice that lead

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Speaker 1: to five couldn't get closer. Grizzlies one one, one oh

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Speaker 1: eight Jaren Jackson twenty six point seven four. The next

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Speaker 1: with thirty he made eight three pointers. Knicks said, an

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Speaker 1: oh and three road trip, and now they hit the

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Speaker 1: road for five more starting Saturday at the Lakers. The

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Speaker 1: Nets without the injured Kevin Durant not very good. They

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Speaker 1: lost to lowly Sacramento one twelve, one oh one, and

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Speaker 1: that's six loss in the road. James Harden thirty seven minutes,

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Speaker 1: only four points, never got to the free throw line

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Speaker 1: the NHLs. At the All Star Break, the Islanders go

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Speaker 1: went off a three offane home loss to Seattle, first

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Speaker 1: shutout in cracking history. Well Bill Belichick at some point

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Speaker 1: he asked about his text, the one he meant to

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Speaker 1: send to Brian Dave all but in Sten said to

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Speaker 1: Brian Flores, did Belichick no. Three days before Flora's was

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Speaker 1: interviewed with the Giants that they had already decided to

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Speaker 1: hire day Ball. It's at the heart of Flora's is

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Speaker 1: lost through to the NFL claiming racism and they're hiring practices.

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Speaker 1: On CBS this morning, Floras was asked his reaction to

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Speaker 1: seeing the text was arranged of emotions. Uh, humiliation, uh, uh, disbelief,

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Speaker 1: um uh anger um now worked so hard to get

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Speaker 1: to um to where I am from uh in football

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Speaker 1: to become a head coach. Laura's his lawyer says others

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Speaker 1: may join him in the class actions. John Stashwer Bloomberg Sports, John,

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Speaker 1: thank your SMP Futures down down forty eight points, are

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Speaker 1: more than one percent out features are down eighty eight points.

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Speaker 1: Nastac features leading the declines this morning, down three five

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Speaker 1: points or two point two percent. Dragged down by Facebook

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Speaker 1: parent meta platforms. Those shares down more than twenty percent

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Speaker 1: on an earnings disappointment. We'll discuss it next with Man Deep, Say,

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Speaker 1: senior tech analyst at Bloomberg Intelligence. This is Bloomberg Bloomberg

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Speaker 1: eleven three O weather. Dense fog this morning, rain this

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Speaker 1: rain will change over to a wintry mess tomorrow. Temperature

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Speaker 1: is falling through the day by Saturday, upper twenties for

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Speaker 1: highs currently forty four degrees in Central Park. Markets. Headlines

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Speaker 1: and breaking news twenty four hours a day at Bloomberg

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Speaker 1: Nowsday Future is tumbling this morning is disappointing. Hernings and

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Speaker 1: forecasts from technology Bellweathers halts a rally in global stocks,

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Speaker 1: the dollars strengthening ahead of great decisions in Europe in

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Speaker 1: the UK, and we check the markets every fifteen minutes

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Speaker 1: throughout the trading day. On Bloomberg Now's dead futures are

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Speaker 1: down threety three points. That's down two point three first

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Speaker 1: set as the P futures down fifty three and AS

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Speaker 1: and DAL futures are down one d thirteen. The decks

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Speaker 1: in Germany's down four tenths of a percent. The ten

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Speaker 1: year treasury little change at one point seven seven percent,

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Speaker 1: yield on the two year one point one three percent.

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Speaker 1: Nine Max screwed oils down one point six percent on

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Speaker 1: a dollar thirty eight and eighty six dollars eighty eight

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Speaker 1: cents of barrel comex school down four tens percent or

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Speaker 1: seven dollars forty cents at eighteen o two ninety announce,

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Speaker 1: the euro one point one two seven seven against the dollar,

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Speaker 1: British bound one point three five five nine, the ends

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Speaker 1: at one fourteen point eight zero, and Bitcoin this morning

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Speaker 1: moving lower at thirty six thousand, four hundred dollars, and

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Speaker 1: that's a Bloomberg business flash. Now here's Michael Barr with

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Speaker 1: more on what's going on around the world. Muchael Karen,

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Speaker 1: thank you very much. US special forces have carried out

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Speaker 1: what the Pentagon said was a successful counter terrorism raid

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Speaker 1: in northwestern Syria. First responders reported civilians had also been killed.

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Speaker 1: President Biden ordered three thousand US troops deployed to Eastern

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Speaker 1: European NATO allies and Russian neighbors. Concerns continue about a

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Speaker 1: post Russian invageon of Ukraine. President Biden visits New York

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Speaker 1: City today on gun violence. In the NBA, the Knicks

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Speaker 1: and Nets lost, the Celtics and Wizards won. In the NHL,

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Speaker 1: the Islanders and Capitals lost. Global News twenty four hours

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Speaker 1: a day on air and on Bloomberg Quicktate, powered by

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Speaker 1: more than twenty seven hundred journalists and analysts and more

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Speaker 1: than one d twenty countries. Michael Barr, this is Bloomberg

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Speaker 1: Anham all right, Michael, thanks at six nineteen on Wall

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

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Speaker 1: Bloomberg Daybreak. Because we continue to watch shares of Facebook

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Speaker 1: company meta platforms, the parent down more than twenty percent,

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Speaker 1: down more than twenty and a half percent now in

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Speaker 1: the pre market on disappointing earnings. Set to lose about

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Speaker 1: a hundred eighty billion dollars in market value if these

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Speaker 1: numbers hold at the open joining US now. Mandeep Singh,

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Speaker 1: senior tech analysts for Bloomberg Intelligence, obviously a lot of

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Speaker 1: skittishness from investors over the drop in subscribers, the first

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Speaker 1: time of investors have seen that in quite some time.

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Speaker 1: And the outlook going forward, Man deep, Yeah, Look, I

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Speaker 1: mean I think given Facebook scale, I think the deceleration

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Speaker 1: would have been okay had they not spooked the investors

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Speaker 1: in terms of the overall strategy ships. So they called

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Speaker 1: out this big pivot to videos to catch up to

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Speaker 1: you know, TikTok and YouTube, and I think the wave

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Speaker 1: was communicated is how it probably didn't come across as

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Speaker 1: something that they should have you know, noted earlier. And suddenly,

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Speaker 1: you know, they come out and say that's their entire focus.

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Speaker 1: And along with Metaverse, which is losing ten billion dollars

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Speaker 1: a year. I mean, when you look at this company,

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Speaker 1: the margin profile has changed completely. Now the core business

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Speaker 1: was about operating margins guess what going forward, it will

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Speaker 1: be more and that is why you see such a

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Speaker 1: strong reaction. I guess with the violence of this move,

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Speaker 1: it begs the obvious question, man deep, whether this is overdone? Well,

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Speaker 1: so think of it. You know, in terms of top line, Look,

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Speaker 1: if Facebook's top line is decelerating, it what it tells

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Speaker 1: us is probably the whole social media ad space is

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Speaker 1: going down. And it has some connections to the overall

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Speaker 1: growth in GDP and economy as well. But and and

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Speaker 1: that will bounce back, you know eventually once GDP and

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Speaker 1: you know, uh, advertisers start to come back. If the

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Speaker 1: engagement and given Facebook scale, you would expect, you know, scales,

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Speaker 1: growth will bounce eventually. The problem, as I said, is

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Speaker 1: one they have engagement problems, so they are definitely losing

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Speaker 1: engagement with the younger demographic. The other is the change

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Speaker 1: in business model. So now if they start to pay

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Speaker 1: creators for the content they're creating, it's the model is

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Speaker 1: very similar to YouTube, and YouTube's gross margins are around

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Speaker 1: and right now Facebook's gross margins are eighty percent, so

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Speaker 1: that margin differential is huge. And if they're saying they're

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Speaker 1: completely pivoting to videos and that's their sole focus. And

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Speaker 1: and then you lear that, you know, with the I

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Speaker 1: d FA changes, that has heard Facebook's at targeting. So

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Speaker 1: there are multiple things that play here, But structurally it

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Speaker 1: feels like Facebook isn't the same company anymore that it

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Speaker 1: used to be in terms of the margin trofile, Are

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Speaker 1: you implying with focus on video that the that the

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Speaker 1: Facebook should be focusing somewhere else besides video? It does

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Speaker 1: seem like the competition from TikTok has really gotten a

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Speaker 1: lot of the attention here. Yes, so it is a

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Speaker 1: crowded market and you've got two scale players in the

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Speaker 1: form of TikTok and YouTube. Well, uh, we know Facebook

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Speaker 1: has the scale thriblliant users across its they may be

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Speaker 1: better off focusing on their market place business or e

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Speaker 1: commerce business. Yes, they have to fix engagement and they're

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Speaker 1: investing a lot in metavers to do that. Nobody knows

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Speaker 1: how that bet will play out, but we know it's

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Speaker 1: losing ten billion dollars a year in terms of the

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Speaker 1: operating loss, and so really right now it's a hope

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Speaker 1: based strategy. If you're a Facebook investor, you're just hoping

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Speaker 1: that they get it right with meta worse and you know,

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Speaker 1: over time it fixes the engagement issues, but beyond that,

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Speaker 1: the fundamentals of the business have deteriorated, and the pivot

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Speaker 1: to videos isn't gonna help, you know, in terms of

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Speaker 1: the margin profile, and they're way behind TikTok and YouTube

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Speaker 1: at this point of time. Now, last minute here, Mandy,

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Speaker 1: if it seemed like CEO Mark Zuckerberg was really leaning

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Speaker 1: in asking investors to bear with them on the hope

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Speaker 1: based strategy. Does that aboute more volatility for Facebook in

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Speaker 1: the months to come? Well, so, not only Facebook, I

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Speaker 1: think the entire higher social media space has been heard

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Speaker 1: by the Apple's I d FA changes, and so I

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Speaker 1: think Facebook is still in a better position to handle it.

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Speaker 1: They have, you know, the resources to redesign their at

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Speaker 1: targeting infrastructure, which is what they called that last night.

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Speaker 1: The smaller ones like Snap, like Twitter, they I think

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Speaker 1: more so Snap and Pinterest they're gonna be hurt more

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Speaker 1: because guess what did they have to redesign their algorithms

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Speaker 1: and at targeting that that will be a bigger burden

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Speaker 1: in terms of operating costs compared to Facebook. Now we're

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Speaker 1: certainly seeing the pain in the pre market with metal

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Speaker 1: platforms shares now down nearly twenty one percent and a

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Speaker 1: Snap shares down sixteen and a half percent. Twitter lower

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Speaker 1: by eight percent. Rough morning to be a social media investor.

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Speaker 1: Man Deep Sing of Bloomberg Intelligence, thank you for these insights.

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Speaker 1: As for the broader market, Yeah, it's lower. SMP futures

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Speaker 1: down fifty five. Nest that futures lower by a hundred

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Speaker 1: thirty points, Dance that futures down three hundred fifty two.

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Speaker 1: Bloomberg eleven three oh weather. Dense fog this morning. It

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Speaker 1: will be rainy this afternoon, mid forties. Temperatures will fall

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Speaker 1: through the day tomorrow, so the rain changes over into

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Speaker 1: wintry mess by Saturday. Mostly sunny, upper twenties currently forty

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Speaker 1: four degrees. Markets headlines and breaking news twenty four hours

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Speaker 1: a day at Bloomberg dot Com, the Bloomberg Business at

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Speaker 1: and at Bloomberg Quick Tape. This is a Bloomberg Business

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Speaker 1: lass and I'm Karen Moscow and nasday. Futures are falling

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Speaker 1: this morning. We got to the first word breaking news

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Speaker 1: dance for today's morning call. And here's Bill Maloney. Bill,

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Speaker 1: good morning, and good morning, Karen. That's right, us futures

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Speaker 1: are plunging on the heels of those Facebook earnings. Dow

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Speaker 1: futures try lead down a hundred and thirty six points

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Speaker 1: has to be dropped fifty two. But like you said,

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Speaker 1: Nasdick futures under pressure down three nine. The US ten

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Speaker 1: yeld at one point seven eight percent, Gold is little change.

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Speaker 1: Oil is trading lower, but Bitcoin is under pressure down

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Speaker 1: six point two percent. Japan failed one percent overnight, while

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Speaker 1: your PM markets are also in the red right now.

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Speaker 1: And note that at seven forty five is the ECB

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Speaker 1: rate decision back in the US. On the economic frontday

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Speaker 1: eight thirty, initial jobs claims at ninety five Composite and

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Speaker 1: Services p M, I S and at ten o'clock I S,

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Speaker 1: M services, factory orders and durable goods orders. After develous night,

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Speaker 1: Facebook gave a weaker than expected revenue forecast shares it

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Speaker 1: down twenty one percent pre market, and Qualcom said ship

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Speaker 1: shortages hampered efforts to push beyond smartphones. Regarding some of

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Speaker 1: the earnings this morning, Mark beat estimates, ELI, Lily beat

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Speaker 1: on revenue, and Honeywell miss estimates, trapping things up. Papal

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Speaker 1: was cut to hold at easy Bank. C H. Robinson

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Speaker 1: raised to buy it stifle and Excelon was cut the

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Speaker 1: sector perform over red. RBC Live from the first breaking

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Speaker 1: news Dostom, Bill Maloney care Alry Bill, thank you and

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Speaker 1: to hear live breaking news over her. Bloomberg Time School

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Speaker 1: logo on your terminal s a w U K and

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Speaker 1: that's a Bloomberg Business Flash. Now here's Michael Barr with

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Speaker 1: more on what's going on around the world. Michael Karen,

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Speaker 1: thank you very much. Russia said it was destructive for

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Speaker 1: President Biden to move additional troops to Europe and station

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Speaker 1: more along NATO's eastern flank as the tension over Ukraine continues. Meanwhile,

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Speaker 1: French President mccram will hold a third call with the

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Speaker 1: Vladimir Putin in less than a week. Authorities in northern

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Speaker 1: California say one person is dead after a mass shooting

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00:22:28,880 --> 00:22:33,919
Speaker 1: last night on a Greyhound bus in Orville. Suspect was arrested.

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Speaker 1: In the NBA, the nixt and Nets lost, the Celtics

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00:22:37,160 --> 00:22:41,320
Speaker 1: and Wizards won. In the NHL, the Islanders and Capitals lost.

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Speaker 1: Global News twenty four hours a day on air and

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Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven journalists

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Speaker 1: and analysts. More than a hundred twenty countries. I'm Michael Barr.

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Speaker 1: This is Bloomberg. The following commentary is from Bloomberg Opinion

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Speaker 1: Foreign Affairs. I'm Jonathan Bernstein, the columnist for Bloomberg Opinion.

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Speaker 1: In will developments abroad in Iran, for example, become campaign

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Speaker 1: issues and effect the outcomes of the elections, Hardly anyone

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Speaker 1: will change their vote regardless of what happens with, say,

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Speaker 1: the Iran Deal. There's little evidence that international political events,

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00:23:13,600 --> 00:23:16,000
Speaker 1: even fairly dramatic ones, have much of an influence on

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00:23:16,040 --> 00:23:19,240
Speaker 1: presidential popularity back home. The one big exception is that

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00:23:19,320 --> 00:23:22,520
Speaker 1: war is producing US casualties do usually hurt a president's

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00:23:22,520 --> 00:23:26,359
Speaker 1: popularity over time. That said, candidates do talk about foreign

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00:23:26,359 --> 00:23:29,760
Speaker 1: affairs during campaigns, and campaign promises can be very important,

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00:23:29,760 --> 00:23:32,800
Speaker 1: whether they change election outcomes or not. In part, these

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00:23:32,800 --> 00:23:35,680
Speaker 1: promises come about simply because candidates for federal office want

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00:23:35,680 --> 00:23:38,760
Speaker 1: to demonstrate competence in these areas. But another reason is

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00:23:38,760 --> 00:23:41,240
Speaker 1: because some groups within the parties care a lot about

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Speaker 1: foreign policy. Winning support from those groups may be important

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00:23:44,520 --> 00:23:47,359
Speaker 1: for winning nominations, so candidates will try to align their

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Speaker 1: policy preferences and priorities with them and talk about those

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Speaker 1: issues regardless of what voters think. I'm Jonathan Bernstein. For

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Speaker 1: more opinions, please go to Bloomberg dot com slash Opinion

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Speaker 1: of airline industry groups are asking the Biden administration to

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Speaker 1: remove COVID testing requirements for fully vaccinated international arrivals into

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Speaker 1: the US. The coalition says airline passenger volumes for international

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Speaker 1: air travel remained thirty eight percent below levels. Antarctica is

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Speaker 1: so called Doomsday glacier nickname because it is huge and

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Speaker 1: coming apart, is mostly thwarting an international effort to figure

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Speaker 1: out how dangerously vulnerable it is. A large iceberg broke

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Speaker 1: off the deteriorating the way it's glacier, and along with

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Speaker 1: sea ice, it is blocking to research ships with dozens

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Speaker 1: of scientists from examining how fast it's crucial ice shelf

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Speaker 1: is falling apart. And there's a sign that Apple is

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Speaker 1: finally making progress in the world's fastest growing smartphone market.

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Speaker 1: The company had its strongest quarter for iPhone sales in

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00:25:19,359 --> 00:25:22,840
Speaker 1: India yet. Apple sold two point three million devices in

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Speaker 1: the fourth quarter, up thirty four percent from a year earlier.

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Speaker 1: And that's a Bloomberg n j I t Stem report.

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Speaker 1: Nathan Okay, Karen, Thanks. We're live from the Bloomberg Interactive

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Speaker 1: Broker studios where it's six fifty two on Wall Street

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Speaker 1: Time Now to check what's going on in d C.

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Speaker 1: Some of the top stories in our nation's capital include

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00:25:38,920 --> 00:25:42,400
Speaker 1: President Biden discussing Russia's true build up with French President McCraw,

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00:25:42,760 --> 00:25:46,520
Speaker 1: tough questions ahead for the President's federal reserve picks, and

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00:25:46,720 --> 00:25:50,119
Speaker 1: Democrats getting a reminder of their fragile grip with a

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00:25:50,280 --> 00:25:54,239
Speaker 1: senator ailing. Also making news, President Biden about to head

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Speaker 1: to New York City to try to seize the narrative

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Speaker 1: on rising crime, joining us from Washington, Bloomberg government reporter

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Speaker 1: Emily Wilkins. So, Emily get a set for this meeting

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Speaker 1: today between the President and the new mayor of New

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Speaker 1: York City. Yes, so we're going to see Biden headed

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Speaker 1: up to New York City, uh, having an event with

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Speaker 1: Eric Adams and focusing that eventually on support for the police.

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Speaker 1: And this comes after Democrats had this really awful election

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Speaker 1: in Yeah, they elected Biden, but Democrats down ballot were

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Speaker 1: very much hurt by this perception that they did not

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Speaker 1: support the police. And we have seen a recent higher

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Speaker 1: ways of crime in numerous cities across the country, including

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Speaker 1: a DC including New York and Joe Biden and Eric Adams,

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Speaker 1: their messages are going to put out there today is

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Speaker 1: that they are supportive of the police. Um As President

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Speaker 1: Biden actually said at a campaign event last week on

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Speaker 1: Friday that he wanted to have more funding for the police,

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Speaker 1: something he's put forward now. Of course, there are progressives

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Speaker 1: within the Democratic Party that do want to see reduced

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Speaker 1: funding that role funding for officers. UM. So we're going

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Speaker 1: to be watching very closely the government funding bill that's

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Speaker 1: being worked on by Congress right now, that's got a

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Speaker 1: deadline of February, and so we're seeing what sort of

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Speaker 1: proposals they have and how it if funding for police

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Speaker 1: officers changes. Now interesting to think about the potential for

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Speaker 1: another spotlight on a rift within the Democratic Party on

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Speaker 1: that issue. But ahead of this trip Emily, we're seeing

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Speaker 1: more diplomacy, more troop movements in the crisis over Ukraine. Yes,

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00:27:35,280 --> 00:27:38,320
Speaker 1: so the US has announced that another two thousand soldiers

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Speaker 1: are going to travel from the US to Europe, and

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00:27:41,760 --> 00:27:45,000
Speaker 1: then another thousand troops that are in Germany are now

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Speaker 1: going to be deployed in Romania. Of the White House

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00:27:48,400 --> 00:27:52,880
Speaker 1: is saying that these moves are temporary. Russia's criticized the decision,

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00:27:53,080 --> 00:27:56,399
Speaker 1: but it's really come as you know, both sides are

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00:27:56,480 --> 00:27:59,240
Speaker 1: still waiting trying to see is Putin going to indeed

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Speaker 1: what does he go going to do. The US's goal

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Speaker 1: here has to put up a very strong, very aggressive front,

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Speaker 1: trying to show that you know, if Fressia decides to

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Speaker 1: move in Ukraine, they are very serious about having this

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00:28:11,040 --> 00:28:15,600
Speaker 1: immediate action. Diplomatic channels that you still seeing Biden talking

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Speaker 1: with world leaders most recently. On Wednesday night, he spoke

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00:28:19,160 --> 00:28:23,080
Speaker 1: with French President Macron Uh They both pledged their teams

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00:28:23,119 --> 00:28:27,879
Speaker 1: would remain in close touch UM and worked together if

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Speaker 1: Plutin was to invade Ukraine. Back in Washington, a lot

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Speaker 1: of focus this morning on the Federal Reserve, particularly with

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00:28:36,640 --> 00:28:40,200
Speaker 1: the President's FED governor picks going up for confirmation and

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Speaker 1: just about two hours here. Yes, we're expecting a very

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Speaker 1: interesting hearing today. Definitely a lot of tough questionings, particularly

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Speaker 1: from Republicans on the panel. One of the biggest questions

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00:28:51,720 --> 00:28:54,360
Speaker 1: they are going to be having for Sarah Bloom Raskin

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00:28:54,960 --> 00:28:58,239
Speaker 1: is what her idea is about using the FED in

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00:28:58,360 --> 00:29:03,200
Speaker 1: terms of environment, toll and energy companies UM, and Raskin

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00:29:03,320 --> 00:29:05,720
Speaker 1: has said that she's not going to be using her

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00:29:05,760 --> 00:29:10,120
Speaker 1: federal to target energy industry if she is nominated for it.

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00:29:10,280 --> 00:29:13,320
Speaker 1: That's going to be a main Conservative Republicans that she's

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00:29:13,400 --> 00:29:16,640
Speaker 1: going to have to address today. With numerous questions. Other

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00:29:16,640 --> 00:29:20,480
Speaker 1: than that, we're absolutely expecting questions about inflation. That's been

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00:29:20,520 --> 00:29:24,920
Speaker 1: a huge issue going forward UM, as well as just

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00:29:25,000 --> 00:29:29,520
Speaker 1: other other items with the economy as the US kind

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00:29:29,520 --> 00:29:33,440
Speaker 1: of tries to pull out of the position the pandemic

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00:29:33,720 --> 00:29:36,960
Speaker 1: put the US in and just quickly, Emily, we've seen

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00:29:37,200 --> 00:29:40,200
Speaker 1: just how fragile the Democratic majority is in the Senate

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00:29:40,240 --> 00:29:42,880
Speaker 1: with the stroke suffered by one of the Democratic members

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00:29:42,880 --> 00:29:45,720
Speaker 1: there has it affected the timetable, the calendar for the

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00:29:45,840 --> 00:29:49,800
Speaker 1: legislative session. So at this point, one of the big

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Speaker 1: questions I think is what is going to be happening

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Speaker 1: with the Supreme Court pix. That's the one where it's

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00:29:56,040 --> 00:29:59,520
Speaker 1: felt that all fifty Democratic senators could be needed on that,

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00:29:59,600 --> 00:30:02,640
Speaker 1: and that's unexpected, uh, to really wrap up for another

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00:30:02,680 --> 00:30:05,479
Speaker 1: four to six Uh, that's not far to wrap up

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00:30:05,640 --> 00:30:08,719
Speaker 1: for for a while, Biden. You hasn't even named a nominee.

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00:30:09,000 --> 00:30:11,880
Speaker 1: And we're hearing that Ben Ray lu Juan, the senator

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Speaker 1: who had the stroke, that he could be fully recovered

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00:30:16,200 --> 00:30:21,000
Speaker 1: in about four to six weeks. Okay, So Bloomberg Government

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Speaker 1: Reporter Emily Wilkins will have to leave it there for now.

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Speaker 1: Thank you for this from the nation's capital. Karen Nathan.

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Speaker 1: It is six f day six on Walling Street, and

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00:30:28,160 --> 00:30:30,960
Speaker 1: this is Bloomberg Day. Bright February is Black History Month,

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00:30:31,000 --> 00:30:33,600
Speaker 1: and every day this month we're celebrating significant moments in

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00:30:33,680 --> 00:30:36,720
Speaker 1: US black history. Now, but your installment for February three.

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00:30:37,160 --> 00:30:41,000
Speaker 1: Here's Bloomberg's Renny too Young on this day in Black history.

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Speaker 1: In eighteen seventy, the fifteenth Amendment of the Constitution of

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00:30:44,680 --> 00:30:48,120
Speaker 1: the United States was ratified. This guaranteed the right to

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00:30:48,200 --> 00:30:51,720
Speaker 1: vote regardless of race. It also intended to ensure, with

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00:30:51,760 --> 00:30:55,600
Speaker 1: the Fourteenth Amendment, the civil rights of former slaves, but

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00:30:55,680 --> 00:30:58,600
Speaker 1: many black people would not actually be able to practice

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00:30:58,640 --> 00:31:01,440
Speaker 1: this right to vote, and hild in nineteen sixty five

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00:31:01,560 --> 00:31:04,800
Speaker 1: Voting Rights Act. It gave African Americans a way to

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00:31:04,840 --> 00:31:08,800
Speaker 1: get around barriers at the state and local levels that

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00:31:08,880 --> 00:31:13,000
Speaker 1: had previously prevented them from exercising the right to vote.

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00:31:13,560 --> 00:31:16,960
Speaker 1: That's today in Black history. I'm gonnit to Young Bloomberg

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Speaker 1: radio right, Grinita, thank you again, Nastack. Futures are falling

542
00:31:20,440 --> 00:31:23,920
Speaker 1: down three hundred seventeen points or two point one per cent.

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00:31:24,040 --> 00:31:26,320
Speaker 1: And we watched the sell off on Bloomberg Surveillance with

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00:31:26,440 --> 00:31:30,000
Speaker 1: Tom Keene, Jonathan Farrow, and Lisa Ramowitz. It's straight ahead

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00:31:30,080 --> 00:31:33,320
Speaker 1: for Nathan Hagar, I'm parin Moscow and this is Bloomberg