WEBVTT - Bloomberg Daybreak: March 2, 2022 - Hour 1 (Radio) 0:00:01.400 --> 0:00:04.480 Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:04.600 --> 0:00:08.080 day Break for Wednesday, March two. Coming up this hour, 0:00:08.240 --> 0:00:11.520 President Bidence targets Russia and inflation in his first State 0:00:11.560 --> 0:00:14.440 of the Union address. This is our moment to read 0:00:14.480 --> 0:00:17.560 an overcome the challenge of our park, and we will. 0:00:17.800 --> 0:00:21.000 Russia moves further into Ukraine, claiming capture of a quart city, 0:00:21.239 --> 0:00:25.040 and the war sends oil surging above one dollars of Harold. 0:00:25.040 --> 0:00:28.120 New Jersey residents may soon have to pump their own gas. Plus. 0:00:28.240 --> 0:00:32.199 New York's Republican Party leaders nominated Representative leeze Elder as 0:00:32.200 --> 0:00:35.440 their candidate for governor. I'm Michael Baum, I'm John Stashdower. 0:00:35.479 --> 0:00:38.440 In sports, the baseball lockout continues. The first two series 0:00:38.479 --> 0:00:41.200 of the season were canceled road losses for the Nets 0:00:41.200 --> 0:00:46.480 Islanders and Devil That's All Straight Ahead on Bloomberg day 0:00:46.479 --> 0:00:51.440 Break on Bloomberg eleven three on New York, Bloomberg, Washington, 0:00:51.560 --> 0:00:55.640 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 0:00:55.680 --> 0:00:59.640 San Francisco, Sirius x M one nineteen and around the 0:00:59.680 --> 0:01:03.880 world gone Bloomberg Radio dot Com and via the Bloomberg Business. 0:01:06.840 --> 0:01:09.800 Good morning. I'm Nathan Hagar and I'm Karen Moscow. US 0:01:09.880 --> 0:01:12.600 DOT Index futures are higher this morning. We're coming up 0:01:12.640 --> 0:01:14.360 to five oh one on Moll Street, and we check 0:01:14.360 --> 0:01:17.640 the markets every fifteen minutes throughout the trading day. On Bloomberg, 0:01:17.760 --> 0:01:20.440 SNP Future is up thirty point Staff futures up two 0:01:20.880 --> 0:01:23.440 thirty one, Nasday Future is up eighty eight and the 0:01:23.480 --> 0:01:26.480 ten year Treasury down four thirty seconds yield one point 0:01:26.520 --> 0:01:29.039 seven four percent. They yield on the two year one 0:01:29.080 --> 0:01:32.360 point three eight percent. Nine X screwed oil is up 0:01:32.400 --> 0:01:35.360 five point four percent. Nathan, all right, Karen, we'll have 0:01:35.360 --> 0:01:37.120 more on the markets in a minute, but first, the 0:01:37.160 --> 0:01:41.040 fighting is intensifying in Eastern Europe. According to Interfax, Russia's 0:01:41.080 --> 0:01:43.880 defense ministry says it has captured the Ukrainian port of 0:01:43.959 --> 0:01:47.560 Cissan as Moscow Predace is ahead with attacks. The US 0:01:47.680 --> 0:01:51.440 is taking more action to isolate Russia and prevent cyber attacks. 0:01:51.720 --> 0:01:54.440 Amy Morris reports from our Bloomberg ninty nine one newsroom 0:01:54.440 --> 0:01:57.680 in Washington. The U S Government has banned Russian aircraft 0:01:57.720 --> 0:02:00.600 from American airspace, as the U S in EU look 0:02:00.680 --> 0:02:04.600 to expand sanctions on Russia. Former US Ambassador to Ukraine 0:02:04.600 --> 0:02:08.680 William Taylor tells ABC those sanctions should extend to Belarus. 0:02:08.680 --> 0:02:12.920 They are co conspirators. They are together with this as 0:02:12.960 --> 0:02:16.120 the Senate fast tract the package of cybersecurity proposals. The 0:02:16.160 --> 0:02:19.239 House is working on a companion bill. US businesses are 0:02:19.320 --> 0:02:22.880 on high alert for Russian cyber attacks in Washington. I'm 0:02:22.880 --> 0:02:25.639 maybe Morris Bloomberg Daybreak, Amy, thank you for coming off 0:02:25.680 --> 0:02:28.440 President Biden's first State of the Union address last night, 0:02:28.480 --> 0:02:30.520 and in his speech, the President promised to take on 0:02:30.600 --> 0:02:34.280 Vladimir Putin and keeps supporting Ukraine. He thought the Western 0:02:34.360 --> 0:02:38.440 NATO wouldn't respond. He thought I could divide us at home, 0:02:38.960 --> 0:02:42.280 in this chamber, in this nation. He thought he could 0:02:42.320 --> 0:02:45.600 divide us in Europe as well. But Putin was wrong 0:02:45.919 --> 0:02:47.919 and remarks that lesson a little more than an hour. 0:02:48.040 --> 0:02:51.079 The President also called on Congress to unite on challenges 0:02:51.120 --> 0:02:54.040 here at home, including higher prices. One way to fight 0:02:54.040 --> 0:02:56.840 inflation is to drive down wages and make America's poor. 0:02:57.880 --> 0:02:59.880 I think I have a better idea to fight inflation, 0:03:00.800 --> 0:03:05.080 lower costs, not your wages. The President touted his bipartisan 0:03:05.120 --> 0:03:08.000 infrastructure law and called for a new action on domestic 0:03:08.040 --> 0:03:11.560 manufacturing and supply chains, lowering health and family costs and 0:03:11.600 --> 0:03:15.079 boosting competition. He also promised to keep fighting COVID even 0:03:15.080 --> 0:03:18.679 as more Americans returned to work and school. Reaction continues 0:03:18.720 --> 0:03:20.760 to pour into the State of the Union. Karen Genie 0:03:20.919 --> 0:03:23.640 Genie she and Zeo is a political science professor and 0:03:23.639 --> 0:03:27.160 a Bloomberg News contributor. I think he missed an important moment. 0:03:27.400 --> 0:03:30.720 This is the last big speech Joe Biden will give, 0:03:31.000 --> 0:03:34.240 the last major audience he has before the mid term election, 0:03:34.400 --> 0:03:37.880 and I'm not sure he changed on the domestic front 0:03:37.960 --> 0:03:39.800 any hearts or minds, and I think he could have 0:03:39.800 --> 0:03:42.640 done a better job saying we need to restore democracy, 0:03:42.920 --> 0:03:46.360 not just abroad, but at home. Bloomberg contributor Genie she 0:03:46.480 --> 0:03:48.960 and Zano says the number one issue for voters right 0:03:48.960 --> 0:03:52.839 now is inflation, and Republicans seized on that topic. After 0:03:52.880 --> 0:03:55.839 the President wrapped up his speech, Nathan Iowa Governor Kim 0:03:55.840 --> 0:03:58.760 Reynolds delivered the GOP response to the State of the Union. 0:03:58.920 --> 0:04:01.720 Where now one year in to his presidency and instead 0:04:01.760 --> 0:04:05.520 of moving America forward, it feels like President Biden and 0:04:05.680 --> 0:04:08.560 his party have sent us back in time to the 0:04:08.640 --> 0:04:11.720 late seventies and early eighties. I am a governor. Kim 0:04:11.720 --> 0:04:14.400 Reynolds used her fourteen minute address to say the country 0:04:14.480 --> 0:04:16.760 is on the wrong track. She focused on issues ranging 0:04:16.760 --> 0:04:20.200 from inflation and crime to taxes and education. All right, 0:04:20.240 --> 0:04:22.599 let's turn to markets now, Karen. We are seeing major 0:04:22.640 --> 0:04:25.599 moves this morning in commodities as the war in Ukraine intensifies. 0:04:25.640 --> 0:04:28.640 Let's get the latest life from Bloomberg's John Tucker, John Nathan. 0:04:28.640 --> 0:04:32.719 Oil surging this morning, Brent crude above one dollars of barrel. 0:04:33.040 --> 0:04:36.719 The International Energy Agency warns that global energy security is 0:04:36.839 --> 0:04:40.320 under threat because of Russia's war on Ukraine. In addition 0:04:40.320 --> 0:04:44.360 that energy medals and grains prices are higher. Russian commodities 0:04:44.480 --> 0:04:48.520 not targeted by sanctions, but thanks for pulling. Financing and 0:04:48.560 --> 0:04:51.960 shippers are reluctant to touch anything from Russia. Live to 0:04:52.040 --> 0:04:54.760 New York. I'm John Tucker, Bloomberg, debreak, All right, John, 0:04:54.800 --> 0:04:57.080 thank you all. More of the world's iconic brands are 0:04:57.120 --> 0:04:59.839 pulling away from Russia. We get more on the growing 0:05:00.040 --> 0:05:02.560 US Live from Bloomberg's Rainy to Young Good morning, Ray, 0:05:02.760 --> 0:05:05.360 Good morning here, and Apple and Nike both say They're 0:05:05.400 --> 0:05:08.880 halting product sales in Russia, cutting off the country from 0:05:08.880 --> 0:05:11.960 the most valuable tech company and the biggest maker of 0:05:12.000 --> 0:05:15.479 athletic wear, while Disney and Warner Media are pausing new 0:05:15.480 --> 0:05:18.640 movie releases in the nation. It's a cultural and commercial 0:05:18.680 --> 0:05:21.960 split not seen since the Cold War ended in the eighties. 0:05:22.400 --> 0:05:25.520 U S brands are quickly vanishing from the Russian marketplace 0:05:25.800 --> 0:05:28.480 in a way that will be hard for consumers to ignore. 0:05:29.120 --> 0:05:31.799 Live in New York, I'm gonna need a young Bloomberg daybreak, 0:05:31.839 --> 0:05:34.400 al Nita, thank you. How will the war in Ukraine effect? 0:05:34.400 --> 0:05:36.599 The Fed will be looking for answers on that, plus 0:05:36.640 --> 0:05:39.640 the outlook for inflation. When Federal Reserve Chairman j Powell 0:05:39.680 --> 0:05:43.480 begins two days of testimony to Congress. Bloomberg Economics correspondent 0:05:43.520 --> 0:05:47.400 Michael McKee reports inflation in February out next week is 0:05:47.400 --> 0:05:50.440 forecast to be the highest since the start of two 0:05:50.920 --> 0:05:53.000 So there's pressure on the Fed to do something. But 0:05:53.000 --> 0:05:55.880 what policy makers don't know is how much higher prices 0:05:55.920 --> 0:05:59.239 from Russia's war will crimp growth. Those are questions Chairman 0:05:59.279 --> 0:06:01.680 Paul will face the next two days, and it's not 0:06:01.760 --> 0:06:04.720 just a growth worry. Powell also has to worry about 0:06:04.839 --> 0:06:09.720 higher inflation expectations becoming embedded in consumer and business psychology. 0:06:09.760 --> 0:06:12.760 Michael McKee, Bloomberg Debris. All right, Michael, thank you. The 0:06:12.839 --> 0:06:15.680 US dollar also in focus today. It's been strengthening since 0:06:15.720 --> 0:06:18.200 the war in Ukraine began, and the shift could mark 0:06:18.240 --> 0:06:21.080 a critical inflection point for the green back, as according 0:06:21.120 --> 0:06:24.360 to Zultan Posar, head of interest rate strategy at Credit Swiss, 0:06:24.800 --> 0:06:27.599 now that Russia has lost access to currency reserves, he 0:06:27.640 --> 0:06:30.599 says other countries may start questioning the value of their 0:06:30.680 --> 0:06:34.000 own reserves and that could ripple across currency markets. The 0:06:34.160 --> 0:06:38.200 FX reserves are partly used by the central bank to 0:06:38.240 --> 0:06:41.839 be able to provide dollars to domestic financial system, and 0:06:41.880 --> 0:06:44.599 if all these balances are frozen, you know, one channel 0:06:44.640 --> 0:06:48.120 of dollars to help the local banking system drives up. 0:06:48.200 --> 0:06:51.200 So I think it's quite a complicated situation. Saltan Posar 0:06:51.279 --> 0:06:54.919 at Credit Suis made the comments on Bloomberg Odd Lots podcast. 0:06:55.000 --> 0:06:58.080 Read more about it on Today's Big Take by Bloomberg 0:06:58.200 --> 0:07:01.560 on the terminal and online at Bloomberg dot Com. Futures 0:07:01.600 --> 0:07:03.840 this morning are higher. S and P future is up 0:07:03.839 --> 0:07:07.760 twenty five points down. Futures up one Nasdack futures up 0:07:07.800 --> 0:07:10.679 seventy seven and the ten Uere Treasury down three thirty seconds. 0:07:10.880 --> 0:07:14.080 They yield one point seven three percent. Straight ahead your 0:07:14.120 --> 0:07:17.800 latest local headlines plus the check of sports. And this 0:07:18.200 --> 0:07:24.640 is Bloomberg. I can't thank you. It's five oh seven 0:07:24.640 --> 0:07:26.800 on Wall Street, forty two degrees in Central Park in 0:07:26.840 --> 0:07:29.320 a broken down vehicle. We got that on the outbound 0:07:29.480 --> 0:07:32.640 George Washington Bridge upper level. Tail's coming up in traffic. First, 0:07:32.680 --> 0:07:34.440 Michael Barr is here with what else is going on 0:07:34.480 --> 0:07:36.320 in New York and around the world. Good morning might 0:07:36.360 --> 0:07:39.000 call Good morning, Nathan. New Jersey drivers could soon be 0:07:39.120 --> 0:07:42.400 forced to pump their own gas. New Jersey is the 0:07:42.440 --> 0:07:44.640 only state of the nation where drivers are not allowed 0:07:44.680 --> 0:07:47.320 to pump their own gas by law, but a bill 0:07:47.520 --> 0:07:51.000 in the state legislature could allow self service as an 0:07:51.000 --> 0:07:55.120 option for smaller stations while maintaining full service for stations 0:07:55.120 --> 0:07:59.040 with four or more pumps. Station owners say changing it 0:07:59.080 --> 0:08:02.880 would help off at rising gas prices and workers shortages. 0:08:03.400 --> 0:08:06.480 New York City's pension fund for police officers voted to 0:08:06.520 --> 0:08:10.360 sell stocks and bonds issued by Russian companies. The fifty 0:08:10.360 --> 0:08:13.040 three point six billion dollar fund has more than eighty 0:08:13.040 --> 0:08:16.560 five thousand active members and retirees. Hong Kong is set 0:08:16.600 --> 0:08:20.000 to report a record of over fifty thousand daily new 0:08:20.040 --> 0:08:24.280 COVID infections today. The city spiraling outbreak has seen thousands 0:08:24.280 --> 0:08:28.640 of residents flee, while those remained short store shelves of 0:08:28.720 --> 0:08:32.480 food and medicine. US Representative Lees Eldon and l I 0:08:32.760 --> 0:08:36.320 of former President Donald Trump accepted the New York State 0:08:36.360 --> 0:08:41.040 Republican Party's nomination as their candidate for the two governors race. 0:08:41.600 --> 0:08:44.800 Betta O'Rourke is projected to be the Democratic winner for 0:08:44.920 --> 0:08:48.720 the Texas gubinatorial primary. He held a victory rally and 0:08:48.760 --> 0:08:51.880 fort Worth last night. This group of people and then 0:08:51.960 --> 0:08:53.960 some are gonna make me the first Democrats to be 0:08:54.000 --> 0:08:58.880 governor of the state of Texas. Since O'Rourke will go 0:08:58.960 --> 0:09:02.719 up against incumbent Governor Greg Abbott, who won the GOP primary, 0:09:03.000 --> 0:09:07.160 Republicans sent a message they want at Keith, Texas the 0:09:07.320 --> 0:09:12.200 land of opportunity and prosperity, per absolutely everybody. Governor Abbott 0:09:12.240 --> 0:09:15.400 spoke to his supporters at a Corpus Christie victory rebelling 0:09:15.720 --> 0:09:18.680 tells Oklahoma is searching for more remains of victims killed 0:09:18.720 --> 0:09:23.839 in the city's race massacre. University of Florida forensic anthropologist 0:09:24.000 --> 0:09:28.160 Dr Phoebe Stubblefield says one grave held the remains of 0:09:28.240 --> 0:09:32.480 a homicide victim had multiple ben shot wounds that contributed 0:09:32.520 --> 0:09:35.520 to his death. He had a minimum of three gunshot wounds. 0:09:35.800 --> 0:09:38.360 He was a young man in his twenties. The city 0:09:38.400 --> 0:09:41.679 says it will not file criminal charges. The Moon is 0:09:41.720 --> 0:09:44.800 about to get slammed by a big piece of space 0:09:45.000 --> 0:09:47.959 junk and leave a creator the size of several semi 0:09:48.040 --> 0:09:51.760 tractor trailers. The leftover rocket was slamming to the far 0:09:51.920 --> 0:09:54.680 side of the Moon. Friday, Global News twenty four hours 0:09:54.760 --> 0:09:57.880 a day on air and on Bloomberg Quick Take, powered 0:09:57.920 --> 0:10:00.520 by more than hundred journalists and don't listen more than 0:10:00.880 --> 0:10:04.080 twenty countries. Michael bar this is Bloomberg Naked Alright, Michael, 0:10:04.120 --> 0:10:10.640 thanks almost five ten on Wall Street. Time for the 0:10:10.640 --> 0:10:13.240 Bloomberg Sports Update. Good morning, John Stann shower right, Good 0:10:13.240 --> 0:10:15.599 morning Nathan. For the first time since the strike that 0:10:15.720 --> 0:10:19.200 canceled the World Series and went in the following season, 0:10:19.280 --> 0:10:21.959 baseball games will be lost to a warp stop is. 0:10:22.000 --> 0:10:25.960 The lockout continues the first two series of the season, canceled. 0:10:26.040 --> 0:10:29.000 Two sides had that marathon bargaining session Monday that led 0:10:29.040 --> 0:10:32.079 to an extent to the deadline and some optimism where 0:10:32.080 --> 0:10:34.520 things apparently did not go well yesterday. The commissioner is 0:10:34.600 --> 0:10:38.400 Rob Manfred. We worked hard to avoid an outcome that's 0:10:38.440 --> 0:10:42.520 bad for our fans, bad for our players, and bad 0:10:42.600 --> 0:10:46.439 for our clothes. I want to share our fans that 0:10:46.600 --> 0:10:50.480 our failure to region agreement was not due to a 0:10:50.600 --> 0:10:54.520 lack of effort by enger Hart. The players came in 0:10:54.640 --> 0:10:58.240 for nine days, they worked hard, they tried to make 0:10:58.280 --> 0:11:01.679 a deal, and I appreci Yankees were to start the 0:11:01.720 --> 0:11:04.400 season with seven road games Texas and Houston. The Mets 0:11:04.480 --> 0:11:07.679 first two series were at home versus Washington Atlanta. Those 0:11:07.720 --> 0:11:09.880 games will knock be made up a lot closer for 0:11:09.960 --> 0:11:12.439 the Nets. Against the Raptors, Toronto won by thirty six 0:11:12.520 --> 0:11:15.400 in Brooklyn, seam to last night in Toronto, Raptors one 0:11:15.480 --> 0:11:17.240 one oh nine, one oh A. They had a ten 0:11:17.480 --> 0:11:19.680 ing run on the fourth quarter. Nets have now lost 0:11:19.760 --> 0:11:23.000 fifteen of eighteen, just as the Knicks had Knicks playing 0:11:23.000 --> 0:11:26.679 in Philadelphia tonight. Nets played Miami tomorrow. Kevin Durants expected 0:11:26.760 --> 0:11:30.280 to play. He's been out since mid January Islanders in Colorado, 0:11:30.400 --> 0:11:32.760 the Ads with their NHL leading forty where they scored 0:11:32.800 --> 0:11:34.839 three in the third one five three Devils lost in 0:11:34.920 --> 0:11:37.560 Columbus four to three. The w n b A has 0:11:37.600 --> 0:11:40.439 find the New York Liberty half a million dollars. Their 0:11:40.600 --> 0:11:44.160 crime was flying their players on chartered flights instead of 0:11:44.240 --> 0:11:48.000 flying commercial, as lead rules dictates, John Stash Howard, Bloomberg's 0:11:48.960 --> 0:11:52.000 and Q john SMP futures down town are up twenty 0:11:52.080 --> 0:11:55.080 seven points. Staff futures up two hundred nests. ACT futures 0:11:55.160 --> 0:11:57.680 highed by eighty six points. The tenure treasury is down 0:11:57.800 --> 0:12:00.400 four thirty seconds. The yield one point seven and four. 0:12:01.520 --> 0:12:08.640 You're listening to Bloomberg Taper Bloomberg eleven three oh weather 0:12:08.720 --> 0:12:11.319 mostly sunny, upper forties today, chance for a shower tonight. 0:12:11.360 --> 0:12:13.840 But will you under a mix of sun and clouds tomorrow? Breezy, 0:12:13.960 --> 0:12:17.400 cooler low forties for highs upper thirties by Friday. Currently 0:12:17.480 --> 0:12:24.040 forty two in Central Park markets. Headlines and breaking news 0:12:24.240 --> 0:12:26.800 twenty four hours a day at Bloomberg dot Com, the 0:12:26.880 --> 0:12:30.400 Bloomberg Business apt and at Bloomberg Quick Tape. She's a 0:12:30.440 --> 0:12:39.600 Bloomberg Business lash and I'm Karen Moscow. US Dock Index 0:12:39.679 --> 0:12:43.360 futures on the rise this morning. European stocks erased their 0:12:43.480 --> 0:12:46.160 losses after the Kremlin said Russia is ready to resume 0:12:46.240 --> 0:12:50.400 talks with Ukraine. Tonight, Brent topped one hundred ten dollars 0:12:50.559 --> 0:12:53.200 of barrel. Bonds in Europe held losses after data showed 0:12:53.240 --> 0:12:56.600 euro Area consumer prices rose more than forecast in February 0:12:57.040 --> 0:13:00.440 and German inflation may average five percent this year. Rushes 0:13:00.480 --> 0:13:03.280 were with Ukraine will further boost energy prices. According to 0:13:03.320 --> 0:13:05.839 the bundes Bank to check the markets every fifteen minutes 0:13:05.880 --> 0:13:08.720 throughout the trading day. On bloomberg S and P future 0:13:08.800 --> 0:13:10.720 is up thirty six points and now futures up two 0:13:10.800 --> 0:13:14.199 hundred fifty Nasdack futures have one hundred twenty seven The 0:13:14.320 --> 0:13:16.640 decks in Germany's up four tenths of upper cent, the 0:13:16.679 --> 0:13:18.880 ten year treasury down five thirty seconds. He had one 0:13:18.920 --> 0:13:21.319 point seven four percent and the yield on the two 0:13:21.400 --> 0:13:24.400 year one point three nine percent. Nimex screwed oil is 0:13:24.440 --> 0:13:26.680 at five and a half percent at five dollars sixty 0:13:26.760 --> 0:13:29.120 eight cents at a hundred nine dollars ten cents of 0:13:29.200 --> 0:13:32.400 barrel and Brent is at a hundred ten dollars ninety cents. 0:13:32.760 --> 0:13:35.120 Comes gold is down four tenths per cent or eight 0:13:35.200 --> 0:13:38.160 dollars ten cents at nineteen thirty five sixty announced the 0:13:38.240 --> 0:13:40.760 euro one point one zero eight six against the dollar. 0:13:40.800 --> 0:13:43.439 British found one point three three one six. The ends 0:13:43.480 --> 0:13:47.240 at one fifteen point to four bitcoin this morning higher 0:13:47.400 --> 0:13:50.280 it's at forty four thousand, one hundred fifty dollars. That's 0:13:50.320 --> 0:13:52.839 a Bloomberg business flash. Now here's Michael Barr with more 0:13:52.880 --> 0:13:56.079 on what's going on around the world. Michael Goodbourne, Good morning, Karen. 0:13:56.160 --> 0:13:58.440 President Joe Biden gave his first State of the Union 0:13:58.520 --> 0:14:02.040 address from the capital last ninth. The President opened with 0:14:02.120 --> 0:14:05.800 a message of global unity against Russian President Vladimir Putin. 0:14:06.000 --> 0:14:09.120 Putin is now isolated from the world more than he 0:14:09.200 --> 0:14:13.320 has ever been I was. Republican Governor Kim Reynolds offered 0:14:13.400 --> 0:14:17.600 up the GOP response to President Biden's address. Reynolds portray 0:14:17.679 --> 0:14:21.040 the GOP as the Party of Freedom and Choice, because 0:14:21.240 --> 0:14:26.720 you know, you've shown that the soul of America isn't 0:14:26.720 --> 0:14:30.200 about who lives in the White House. Reynolds is asking 0:14:30.240 --> 0:14:33.280 people to think about the last year of democratic policies 0:14:33.360 --> 0:14:36.200 coming from the White House. The scheduled opening day from 0:14:36.200 --> 0:14:39.400 Major League Baseball has been canceled. No deal reached between 0:14:39.440 --> 0:14:42.640 the players and teams yesterday to in the lockout in 0:14:42.680 --> 0:14:45.400 the NBA, the Nets and Warriors lost, the Celtics and 0:14:45.440 --> 0:14:48.120 Wizards won. Global News twenty four hours a day on 0:14:48.240 --> 0:14:51.080 air and on Bloomberg Quickday, powered by more than twenty 0:14:51.160 --> 0:14:54.400 seven under journalist and animists more than twenty countries. Michael 0:14:54.440 --> 0:14:57.280 bar this is Bloomberg. Nathan alright, Michael, thanks for coming 0:14:57.360 --> 0:14:59.120 up to five twenty on Wall Street Line from the 0:14:59.120 --> 0:15:02.440 Bloomberg Entract to Broker's Studios. This is Bloomberg Daybreak, and 0:15:02.520 --> 0:15:05.280 fresh from anchoring our State of the Union coverage last 0:15:05.360 --> 0:15:09.320 night on Bloomberg Radio and Television, Bloomberg Washington correspondent Joe 0:15:09.400 --> 0:15:11.920 Matthew joins us this morning after, of course, host of 0:15:12.000 --> 0:15:14.960 Sound on as well on Bloomberg Radio. Joe, it's great 0:15:15.000 --> 0:15:17.160 to have you with us this morning. After a speech 0:15:17.240 --> 0:15:19.360 that was dominated by a lot of blue and yellow 0:15:19.840 --> 0:15:23.480 in the in the Congressional chamber in support of Ukraine, 0:15:23.520 --> 0:15:26.800 the President getting a chance to show that he wants 0:15:26.880 --> 0:15:30.640 to unify the world against Russia. Well, that's right, and 0:15:30.760 --> 0:15:33.320 that was really the opening salvo in this speech. The 0:15:33.400 --> 0:15:35.200 first third of the speech really is about an hour 0:15:35.280 --> 0:15:39.280 long in total. Nathan was was directly aimed at Vladimir 0:15:39.320 --> 0:15:42.440 Putin and commentary on the war in Ukraine. Which is 0:15:42.520 --> 0:15:44.800 highly unusual for a president to start a State of 0:15:44.840 --> 0:15:48.200 the Union address by talking about foreign policy, but this 0:15:48.360 --> 0:15:50.560 is the world we're in right now. He got both 0:15:50.640 --> 0:15:53.760 sides of the room on their feet repeatedly in calling 0:15:53.840 --> 0:15:57.680 Vladimir Putin a dictator and speaking about the effort to 0:15:57.720 --> 0:16:01.120 start chasing oligarchs. The couple of pretty good lines that 0:16:01.200 --> 0:16:03.040 we heard from the President last night, that we'd go 0:16:03.160 --> 0:16:06.200 after their yachts, their luxury apartments, go after their ill 0:16:06.320 --> 0:16:09.320 gotten games. It really got the room fired up as 0:16:09.360 --> 0:16:11.920 he spoke about the unity in this effort. And to 0:16:12.000 --> 0:16:14.480 your point, it was a lot of blue and yellow 0:16:14.520 --> 0:16:17.640 as you looked around the room with pins and wardrobe. 0:16:18.000 --> 0:16:20.640 But you know, interesting, Nathan, it was what people were 0:16:20.720 --> 0:16:22.480 not wearing that that might have been one of the 0:16:22.520 --> 0:16:25.320 bigger stories of the night, And that would be a mask. 0:16:25.680 --> 0:16:27.880 If you look at the images of President Biden walking 0:16:27.920 --> 0:16:30.640 into that room without a mask. The lawmakers lining the 0:16:30.720 --> 0:16:32.840 i LS, he made his way to the speaker's rostrum, 0:16:33.240 --> 0:16:35.880 shaking hands, hugging. It's something we have not seen in 0:16:35.920 --> 0:16:38.000 a couple of years, and it was a way for 0:16:38.080 --> 0:16:40.120 the administration to say that we may not have won 0:16:40.240 --> 0:16:43.160 this battle against COVID, but we have turned a corner. Yeah. 0:16:43.240 --> 0:16:45.600 And it was interesting as well to see the President 0:16:45.640 --> 0:16:48.960 when he talked about COVID, almost seeming to line up 0:16:49.000 --> 0:16:50.800 with a lot of what Republicans have been calling for 0:16:50.960 --> 0:16:53.080 for the last few months, getting people back to work, 0:16:53.360 --> 0:16:56.480 getting people in school, and at the same time, you know, 0:16:56.680 --> 0:17:01.120 ramping up vaccinations and access to COVID treatments, that sort 0:17:01.160 --> 0:17:04.920 of thing. Is the country moving on from COVID, Well, look, 0:17:04.960 --> 0:17:06.760 I think a lot of the country has moved on, 0:17:06.880 --> 0:17:08.919 and that's sort of the situation that the federal government, 0:17:08.960 --> 0:17:11.119 the administration has found itself in the c d C, 0:17:11.440 --> 0:17:15.040 as you know, loosened up its mask mandate weeks after 0:17:15.160 --> 0:17:17.200 a lot of states and in some cases months after 0:17:17.280 --> 0:17:19.520 a lot of states did this. There is a cry 0:17:19.600 --> 0:17:21.680 to get people back to work. Obviously, to hear the 0:17:21.720 --> 0:17:24.480 President kind of get on board with that. Following the 0:17:24.600 --> 0:17:29.040 adjusted mandates or or adjusted policies, lack of mandate from 0:17:29.119 --> 0:17:32.359 Rochelle Wilenski at the CDC tells us a lot. And 0:17:32.480 --> 0:17:34.240 if you remember back, you know, in the middle of 0:17:34.280 --> 0:17:36.800 the summer here, the president did try this once in 0:17:36.920 --> 0:17:40.240 declaring victory almost over COVID, he said, we were about 0:17:40.280 --> 0:17:42.800 to declare our independence. Then of course delta happened. Then, 0:17:42.800 --> 0:17:44.879 oh Macron, So they have to be careful about this. 0:17:45.320 --> 0:17:47.680 But the just the visual last night seemed to go 0:17:47.760 --> 0:17:49.480 further than most of what he said. He issued a 0:17:49.520 --> 0:17:52.520 four point plan on you know, eventually beating COVID. He said, 0:17:52.560 --> 0:17:54.480 we don't have to just live with this, but the 0:17:54.600 --> 0:17:57.600 fact is we are living with it, and watching that 0:17:57.760 --> 0:18:00.440 room last night was real evidence of that. Of course, 0:18:00.520 --> 0:18:03.240 we are still dealing with the after effects of the pandemic, 0:18:03.440 --> 0:18:06.160 not the least of which is rising prices. He says 0:18:06.240 --> 0:18:09.800 that getting prices under control will be his top priority. 0:18:10.200 --> 0:18:14.160 At the same time he's running into a very divided country. 0:18:14.480 --> 0:18:17.159 They're very divided approach to how to do that. Yeah, well, 0:18:17.200 --> 0:18:19.400 as we walked through the night here walk through the speech, Nathan, 0:18:19.440 --> 0:18:21.240 You're right, when he got into that point pivot to 0:18:21.280 --> 0:18:24.040 domestic politics, that's when the room started to look a 0:18:24.080 --> 0:18:26.719 little more like a traditional state of the Union, Democrats 0:18:26.800 --> 0:18:29.720 up for some things, Republicans sitting down at the same time. 0:18:29.800 --> 0:18:32.320 And it was a lot of repackaging. You know, when 0:18:32.400 --> 0:18:35.359 Build Back Better fell apart his social spending plan at 0:18:35.400 --> 0:18:38.119 the end of last year, voting rights legislation the beginning 0:18:38.119 --> 0:18:40.440 of this year, he kind of he dropped the brand 0:18:40.520 --> 0:18:43.399 build Back Better, never said that name, but talked a 0:18:43.440 --> 0:18:46.720 lot about the individual components, paid leave, the expanded child 0:18:46.800 --> 0:18:49.399 tax credit, and so forth that they hope to breathe 0:18:49.440 --> 0:18:51.840 new life into. But in this midterm election year, with 0:18:51.880 --> 0:18:55.400 the division in Congress that you just alluded to, it's 0:18:55.560 --> 0:18:57.840 highly unlikely that any of these could see the light 0:18:57.880 --> 0:19:00.680 of day. So in our last thirty seconds, Joe, would 0:19:00.680 --> 0:19:02.720 you see this as a pivot for President Biden or 0:19:02.760 --> 0:19:05.720 sort of a reframe? Well, maybe reset is a word 0:19:05.800 --> 0:19:08.359 that we can try that that's what he wanted it 0:19:08.520 --> 0:19:11.800 to be, a reset after a very difficult first year 0:19:11.840 --> 0:19:14.240 in office, where he actually had a couple of good 0:19:14.320 --> 0:19:17.560 things to talk about. The infrastructure, lost six million new jobs, 0:19:18.040 --> 0:19:22.400 historic unemployment. Uh, you look at economic growth of five 0:19:22.440 --> 0:19:24.640 point seven percent For a lot of presidents, those would 0:19:24.680 --> 0:19:26.680 be pretty big hallmarks but there were so many other 0:19:27.080 --> 0:19:32.040 headwinds from inflation to COVID regulations, just the bitter politics 0:19:32.160 --> 0:19:34.359 in Washington, that I think, yes, he is hoping as 0:19:34.400 --> 0:19:36.440 he called out to the room for some unity in 0:19:36.520 --> 0:19:40.119 this country, particularly now with a war underway in Europe. 0:19:40.359 --> 0:19:43.520 Joe Matthew are Bloomberg Washington correspondent doing heavy duty this 0:19:43.720 --> 0:19:46.399 morning after anchoring our State of the Union coverage. Be 0:19:46.440 --> 0:19:49.840 back later on today with Bloomberg Sound on UH this 0:19:50.000 --> 0:19:54.040 afternoon at five pm Wall Street Time on Bloomberg Radio. 0:19:54.520 --> 0:19:57.280 Right now, SMP futures up thirty four points now, futures up, 0:19:57.280 --> 0:19:59.720 tune at forty two. NASTAC futures up a hundred fourt 0:20:00.600 --> 0:20:03.560 Brent crude at a hundred ten dollar seventy seven cents 0:20:03.600 --> 0:20:08.640 of barrel. This is Bloomberg Bloomberg eleven three oh Weather. 0:20:08.720 --> 0:20:11.359 Sunshine upper forties today, chance for a shower tonight, but 0:20:11.440 --> 0:20:13.359 we'll be under a mix of sun and clouds tomorrow, 0:20:13.440 --> 0:20:15.680 breezy with highs in the low forties by then upper 0:20:15.760 --> 0:20:18.280 thirties for highs on Friday. Right now forty two in 0:20:18.359 --> 0:20:25.720 Central Park, broadcasting live from the Bloomberg Interacted Broker Studio 0:20:25.840 --> 0:20:28.720 in New York, Bloomberg E living three on to Washington, 0:20:28.840 --> 0:20:32.879 d C. Bloomberg to Boston, Bloomberg one O six one 0:20:33.040 --> 0:20:36.880 to San Francisco, Bloomberg sixty to the country Sirius XM 0:20:36.960 --> 0:20:39.800 ch A one nine and around the globe the Bloomberg 0:20:39.840 --> 0:20:44.280 Business at and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 0:20:49.680 --> 0:20:51.720 It's five thirty on Wall Street. Good morning of Nathan 0:20:51.760 --> 0:20:54.400 Hagar and I'm Karen Moscow and we're just about four 0:20:54.480 --> 0:20:56.800 hours away from the open of US trading. Let's get 0:20:56.840 --> 0:20:58.119 you up to date on the news you need to 0:20:58.200 --> 0:21:01.520 know at this hour. The fighting isn't sensifying in Eastern Europe. 0:21:01.560 --> 0:21:04.760 According to inter Facts, Russia's defense ministry says it has 0:21:04.840 --> 0:21:08.560 captured the Ukrainian port of Curson. Moscow is pressing ahead 0:21:08.600 --> 0:21:11.440 with attacks. Meantime, the United Nations is sounding the alarm 0:21:11.480 --> 0:21:14.960 and the humanitarian crisis in Ukraine, and Blueberg said Baxter 0:21:15.119 --> 0:21:18.320 has the latest. The body says almost seven hundred thousand 0:21:18.400 --> 0:21:20.879 people have already fled Ukraine and say as many as 0:21:21.000 --> 0:21:24.679 four million may leave. US Secretary of State Anthony Blincoln 0:21:24.720 --> 0:21:28.040 says Russia should not be on the Humanitarian Council. These 0:21:28.080 --> 0:21:31.720 are the human rights abuses this Council was created to stop. 0:21:32.000 --> 0:21:34.760 If we cannot come together now, when will we come together? 0:21:34.880 --> 0:21:37.479