WEBVTT - Bloomberg Daybreak: February 2, 2022 - Hour 1 (Radio) 0:00:01.960 --> 0:00:05.160 Live from the Bloomberg and directed Burger Studios. Is Bloomberg 0:00:05.240 --> 0:00:09.160 Daybreak for Wednesday, February two, two. Coming up this hour, 0:00:09.560 --> 0:00:12.880 NAZAC futures roundly on the heels of earnings from Alphabet. 0:00:13.000 --> 0:00:16.160 The Google Parents surges after announcing a twenty for one 0:00:16.160 --> 0:00:19.800 stop split. FED signals also help sentiment, as officials hint 0:00:19.800 --> 0:00:22.240 of a measured pace for rate heights and oil trades 0:00:22.280 --> 0:00:24.920 near a seven year high ahead of today's OPEC meeting. 0:00:25.079 --> 0:00:28.640 Funeral services are today for the second NYPD officer killed 0:00:28.680 --> 0:00:32.000 in an ambush and Harlem. Plus Russian President Putin speaks 0:00:32.000 --> 0:00:35.320 out about Ukraine. I'm Michael barn More Ahead, I'm Tom 0:00:35.360 --> 0:00:39.960 stashdown Sports. Tom Brady officially retired a blockbuster NFL lawsuit, 0:00:40.080 --> 0:00:45.320 The Nets lost, the Rangers warm. That's all straight ahead 0:00:45.400 --> 0:00:51.440 on Bloomberg day Break on Bloomberg Elementoro, New York, Bloomberg one, Washington, 0:00:51.560 --> 0:00:55.440 d C, Bloomberg one oh six one, Boston, Bloomberg nine six, 0:00:55.680 --> 0:00:59.680 San Francisco, Sirius x M one nineteen and around the 0:00:59.680 --> 0:01:03.840 world along Bloomberg Radio dot Com and via The Bloomberg Business. 0:01:08.000 --> 0:01:11.000 Good morning, I'm Para in Moscow. I'm Nathan Hagar Bloomberg 0:01:11.040 --> 0:01:13.839 Daybreak brought to you by s ELI Challenges highlight one's 0:01:13.920 --> 0:01:16.560 character of partnership and resilience. At SEI, they act as 0:01:16.600 --> 0:01:18.920 one community with their clients. Go to se i C 0:01:19.120 --> 0:01:23.440 dot com, Slash banks and US futures are gaining this morning. 0:01:23.480 --> 0:01:26.039 We check the markets every fifteen minutes throughout the trading 0:01:26.160 --> 0:01:29.400 day on Bloomberg. Right now, SMP futures are up thirty 0:01:29.440 --> 0:01:33.040 seven points down futures up forty nine. Nasday futures up 0:01:33.040 --> 0:01:36.600 two dty one. The ten year treasury little change at 0:01:36.600 --> 0:01:39.280 one point seven eight percent. They yield on the two 0:01:39.360 --> 0:01:42.440 year is at one point one is six percent. The 0:01:42.520 --> 0:01:45.840 euro one point one three against the dollar. Nathan well 0:01:45.880 --> 0:01:49.600 Karen boosted NASTACK futures comes in part thanks to corporate earnings. 0:01:49.800 --> 0:01:52.280 Let's begin with Alphabet. The shares are up more than 0:01:52.320 --> 0:01:56.000 ten percent. The Google parent beat profit and sales estimates 0:01:56.040 --> 0:01:58.880 and announced a stock split at Ludlow joins us with 0:01:58.920 --> 0:02:01.920 the details from our bloom Ignined sixty newsroom in San Francisco. 0:02:02.440 --> 0:02:04.360 It was a beat on the top and bottom line 0:02:04.360 --> 0:02:07.120 for Alphabet, the parent company of Google, and all signs 0:02:07.120 --> 0:02:10.920 really points for a resilient advertising business, but really it 0:02:11.040 --> 0:02:14.280 was news of the stock split that drove activity and 0:02:14.320 --> 0:02:17.720 after hours for Alphabet. The company is doing a twenty 0:02:17.800 --> 0:02:20.200 for one stock split in the form of a one 0:02:20.280 --> 0:02:23.280 time special stock dividends, and as part of that split, 0:02:23.440 --> 0:02:26.240 Google's parents going to give one tenth of ascent for 0:02:26.400 --> 0:02:29.720 each share of the company's Class A, Class B, and 0:02:29.840 --> 0:02:33.200 Class C stock, and Ruth Parrat, who is Alphabet CFO, 0:02:33.520 --> 0:02:36.560 told Bloomberg that the rationale here is to widen the 0:02:36.600 --> 0:02:40.160 net and make the stock more accessible to investors. Ed 0:02:40.240 --> 0:02:43.720 love Low, Bloomberg News, San Francisco, Thank you. Adding to 0:02:43.760 --> 0:02:46.639 the bullish sentiment this morning is a MD. Shares of 0:02:46.720 --> 0:02:49.600 the chip maker are up almost eleven percent. The company 0:02:49.600 --> 0:02:53.000 had a surprisingly strong sales fourcast, suggesting it's making further 0:02:53.120 --> 0:02:56.640 gains unrivaled Intel. We're also watching shares of General Motors 0:02:56.680 --> 0:02:59.280 Care and they're up less than one percent. GM earning 0:02:59.320 --> 0:03:03.120 stock dust and it's while it's outlook for two remained unchanged. 0:03:03.240 --> 0:03:06.280 We get more from Bloomberg's Charlie Pellace. GM is seeing 0:03:06.360 --> 0:03:09.920 signs of an easing in the semiconductor shortage that curbed 0:03:09.960 --> 0:03:13.320 a vehicle output and dent at its market share last year. 0:03:13.680 --> 0:03:17.639 But it's cautioning sales and profit for twenty two maybe 0:03:17.800 --> 0:03:21.160 little changed. GM was hit among the hardest in the 0:03:21.200 --> 0:03:24.399 fourth quarter, when a forty three percent drop in domestic 0:03:24.440 --> 0:03:27.880 sales forced the company to relinquish its crown the top 0:03:27.960 --> 0:03:33.080 us automaker for the first time since in New York. 0:03:33.160 --> 0:03:36.200 Charlie Pellett Bloomberg Daybreak. All right, Charlie, thank you. We'll 0:03:36.240 --> 0:03:39.000 have more on GM later this morning on Bloomberg Surveillance. 0:03:39.000 --> 0:03:41.960 Will be speaking live with the CEO, Mary Barrap. That's 0:03:42.000 --> 0:03:44.480 coming up at nine am Wall Street time on both 0:03:44.520 --> 0:03:48.040 Bloomberg Radio and television. Nathan Earnings continue to roll in 0:03:48.120 --> 0:03:51.040 today when nearly three dozen companies reporting and heading the 0:03:51.120 --> 0:03:54.480 list as Facebook owner Meta Platforms. We get a preview 0:03:54.520 --> 0:03:58.119 from Bloomberg's Tom Busby in its first earnings report under 0:03:58.160 --> 0:04:01.840 its new corporate name. Facebook's owner, Meta Platforms, is expected 0:04:01.880 --> 0:04:05.120 to report a burst in digital advertising revenue last quarter 0:04:05.320 --> 0:04:08.880 and solid holiday sales of its Oculus VR headset. Bloomberg 0:04:08.880 --> 0:04:12.080 analysts forecast total revenue of thirty three point four three 0:04:12.160 --> 0:04:14.960 billion dollars, a nine percent jump from a year ago, 0:04:15.080 --> 0:04:17.640 with nearly all of that from advertising. Look for earnings 0:04:17.640 --> 0:04:20.240 per share of three dollars four cents, and on the 0:04:20.279 --> 0:04:22.680 earnings call, expect the company to be pressed to better 0:04:22.760 --> 0:04:26.080 explain the metaverse, the virtual reality platform it's basing its 0:04:26.080 --> 0:04:30.240 future on. Tom busby Bloomberg Daybreak. Okay, Tom, Thanks. Turning 0:04:30.240 --> 0:04:32.920 from earnings now. Markets are also getting a boost from 0:04:32.920 --> 0:04:35.480 the Fed. Central Bank officials are laying out a measured 0:04:35.520 --> 0:04:37.640 approach to the path for rate hikes this year. We 0:04:37.680 --> 0:04:40.680 get that story live from Bloomberg's Greneda Young, Good morning, Granita, 0:04:40.760 --> 0:04:43.560 Good morning Nathan. The measured calls from FED leaders are 0:04:43.560 --> 0:04:46.560 different from Wall Street forecasts, which include as many as 0:04:46.680 --> 0:04:50.200 seven rate hikes this year. Some even predict a fifty 0:04:50.320 --> 0:04:53.360 basis point hike next month. So far, none of the 0:04:53.360 --> 0:04:56.080 Fed officials speaking this week have backed the idea of 0:04:56.120 --> 0:04:58.680 such an increase in March. The most hawkish of them 0:04:58.720 --> 0:05:01.480 all St. Louis FED President it James Bullard says five 0:05:01.560 --> 0:05:04.719 hikes is quote not too bad a bit. Kansas City 0:05:04.720 --> 0:05:07.760 Fit chief Esther George is another hawk, and she says 0:05:07.839 --> 0:05:12.039 ideally the Fit prefers to go gradually live in New York. 0:05:12.080 --> 0:05:14.640 I'm gonned a Young Bloomberg Daybreak. I need to thank you, 0:05:14.720 --> 0:05:17.240 Fede officials will be paying close attention to this week's 0:05:17.240 --> 0:05:19.720 economic data. This morning, we get the first at three 0:05:19.720 --> 0:05:22.080 reports on the labor market. We could see a dramatic 0:05:22.120 --> 0:05:26.039 slowdown in business hiring when a DP issues January payroll data. 0:05:26.320 --> 0:05:29.320 Economists surveyed by Bloomberg anticipate a gain of less than 0:05:29.360 --> 0:05:33.000 two hundred thousand, and Bloomberri's Benny down Juda's reports. Bloomberg 0:05:33.000 --> 0:05:37.080 Economics says January's ADP data will point to a slowdown 0:05:37.120 --> 0:05:42.080 and hiring reflecting the impact of COVID nineteen Armicron infections 0:05:42.120 --> 0:05:46.839 on businesses. February could usher in a recovery. In December, 0:05:46.880 --> 0:05:50.880 a DP reported businesses added more than eight hundred thousand workers, 0:05:50.880 --> 0:05:55.600 the most its May, though official government figures were less robust. 0:05:55.760 --> 0:05:58.680 Bloomberg Daybreak al right, Vinnie, thanks. The big labor report 0:05:58.760 --> 0:06:01.880 comes on Friday with fronament payrolls data for January. The 0:06:01.920 --> 0:06:05.520 Biden administration's lowering expectations on that as well. The White 0:06:05.560 --> 0:06:08.359 House says fallout from Omicron could overstate the number of 0:06:08.400 --> 0:06:11.240 unemployed people. Jared Bernstein is a member of the White 0:06:11.240 --> 0:06:14.880 House Council of Economic Advisors. If you're not on the payroll, 0:06:15.120 --> 0:06:17.880 meaning you're sick or you're absence, so you're on some 0:06:17.920 --> 0:06:20.960 sort of unpaid leave, you're not going to be counted 0:06:20.960 --> 0:06:24.000 on the payroll for the payroll survey. And the fact 0:06:24.080 --> 0:06:27.560 is um virtually all of those folks likely still have 0:06:27.720 --> 0:06:30.159 their jobs, so when they go back in February, they 0:06:30.160 --> 0:06:32.680 will be counted again. Jared Bernstein with the Council of 0:06:32.760 --> 0:06:36.120 Economic Advisors spoke with our Washington correspondent Joe Matthew on 0:06:36.120 --> 0:06:38.800 Bloomberg Sound On. You can catch the program weekdays at 0:06:38.800 --> 0:06:42.240 five pm Eastern on Bloomberg Radio. Well Nathan Oil also 0:06:42.320 --> 0:06:44.400 and Focus. This morning, it is trading near a seven 0:06:44.480 --> 0:06:47.040 year high ahead of an OPEG plus meeting. Oh Peck 0:06:47.080 --> 0:06:50.040 and its allies are expected to approve another modest oil 0:06:50.120 --> 0:06:53.479 output increase today, at the same time they could struggle 0:06:53.520 --> 0:06:56.840 to actually deliver that cut. Checking prices now, nonm ex 0:06:56.880 --> 0:06:58.800 scrude oil is down about a tenth of a percent. 0:06:58.920 --> 0:07:01.240 It's down nine cents a d eight dollars eleven cents 0:07:01.240 --> 0:07:05.320 of barrel Brent is at eighty eight dollars. Stock futures 0:07:05.320 --> 0:07:08.520 are moving higher, Karen, led by the NASTAC. NASTAC futures 0:07:08.560 --> 0:07:11.360 up two hundred forty two points or one point six percent. 0:07:11.800 --> 0:07:14.239 S ANDP futures are up thirty six points down, futures 0:07:14.280 --> 0:07:17.120 up forty two. Straight ahead your latest local headlines in 0:07:17.160 --> 0:07:23.800 the check of sports. This is Bloomberg. It's out five 0:07:23.840 --> 0:07:26.040 oh seven on Wall Street where thirty four degrees in 0:07:26.120 --> 0:07:28.720 Central Park, dealing with a water main breaking seat bright. 0:07:28.720 --> 0:07:31.040 It's a North founder A three thirty six by Atlantic Way. 0:07:31.160 --> 0:07:33.640 Details coming up the traffic First. Michael Barr is here 0:07:33.880 --> 0:07:35.680 with more on what's going on in New York and 0:07:35.720 --> 0:07:38.320 around the world. Good morning, Michael, Good morning Nathan. A 0:07:38.440 --> 0:07:40.880 sea of blue is expected again today in New York 0:07:40.960 --> 0:07:44.800 City at the funeral for Officer Wilbert Mora, the second 0:07:44.800 --> 0:07:47.160 of two n y p D officers killed in the 0:07:47.240 --> 0:07:50.200 line of duty last month. Awake for Maura, who was 0:07:50.240 --> 0:07:53.280 twenty seven, was held yesterday. He was killed during a 0:07:53.360 --> 0:07:57.120 domestic disturbance call in Harlem along with his partner, Jason Rivera. 0:07:57.400 --> 0:08:00.520 More as funeral will be held at St. Patrick's Theedral 0:08:00.600 --> 0:08:04.520 this morning in Midtown Manhattan, followed by a burial in Woodside, 0:08:04.600 --> 0:08:08.600 Queens This as, an off duty NYPD officer was shot 0:08:08.600 --> 0:08:12.160 in Queen's last night he's expected to survive. In my 0:08:12.280 --> 0:08:15.400 p D, Commissioner Keachin Seul talked about the latest shooting. 0:08:15.760 --> 0:08:19.440 This young man was on his way to work, on 0:08:19.520 --> 0:08:23.119 his way to protect New Yorkers from criminals. Commissioners Sewell 0:08:23.320 --> 0:08:27.120 was alongside Mayor Eric Adams speaking to reporters. These offices 0:08:27.200 --> 0:08:30.080 every day put on their uniform and a shill on 0:08:30.160 --> 0:08:33.400 their chest, put their bulletproof fest on and go back 0:08:33.440 --> 0:08:36.760 in the streets. With all of that frustration, they still 0:08:36.840 --> 0:08:40.240 go back and do their job. Now it's time for 0:08:40.400 --> 0:08:43.800 lawmakers to do their job. Mayor Adams is getting ready 0:08:43.800 --> 0:08:47.520 to host President Biden tomorrow for a discussion about gun violence. 0:08:47.880 --> 0:08:52.040 Russian President Vladimir Putin accused America and the West of 0:08:52.120 --> 0:08:57.440 ignoring Moscow's security concerns in the Ukraine controversy. Secretary of 0:08:57.440 --> 0:09:01.199 State Blincoln's speaking with Russian Foreign Minister lab Roth, says 0:09:01.280 --> 0:09:04.360 it was time for Russia to start withdrawing its troops 0:09:04.360 --> 0:09:07.040 from the border. No breakthrough, but the two agreed to 0:09:07.080 --> 0:09:10.240 talk again. White House spokesperson Jen Psaki the door to 0:09:10.280 --> 0:09:14.600 the plomacy remains open. We don't know what decision President 0:09:14.600 --> 0:09:18.720 Putin will make. Spokesperson Jen Psaki a Democratic senator has 0:09:18.760 --> 0:09:22.400 suffered a stroke. His doctors say u S Senator Ben Luhan, 0:09:22.520 --> 0:09:25.520 who is forty nine, is expected to fully recover from 0:09:25.520 --> 0:09:28.400 a stroke and surgery to produce swelling. However, with a 0:09:29.200 --> 0:09:31.959 Senate it has put a number of Democratic lead votes 0:09:32.040 --> 0:09:35.520 on hold for now. A major winner storm is expected 0:09:35.559 --> 0:09:38.199 to affect a huge swath of the US, with heavy 0:09:38.200 --> 0:09:41.000 snow starting in the Rockies and freezing rain as far 0:09:41.000 --> 0:09:43.480 as south as Texas before it drops snow and ice 0:09:43.520 --> 0:09:47.280 on the Midwest. Speaking of which, it is Groundhog Day. 0:09:47.880 --> 0:09:51.760 People in Pennsylvania waiting to learn whether punksatani fill at 0:09:51.840 --> 0:09:55.640 rodent but will predict an early spring or six more 0:09:55.720 --> 0:09:59.200 weeks of winter. Global News twenty four hours a day 0:09:59.320 --> 0:10:04.880 on air. I'm going for the winner and by more journalists, 0:10:04.880 --> 0:10:07.600 analyst more than countries and Michael barrd this is Bloomberg 0:10:07.640 --> 0:10:09.840 name it safe bet after all we've seen this winner. 0:10:09.880 --> 0:10:16.320 Thanks Michael, and we're coming up to five ten on 0:10:16.360 --> 0:10:18.800 Wall Street. Time for the Bloomberg Sports Update with John Stash. 0:10:19.080 --> 0:10:21.800 Thanks day. Then, the greatest player ever retires and it 0:10:22.000 --> 0:10:24.480 may not have been the biggest NFL story of the day. 0:10:24.520 --> 0:10:27.040 Tom Brady made his retirement official in a lengthy post 0:10:27.120 --> 0:10:30.080 on social media that curiously never mentioned the Patriots, but 0:10:30.440 --> 0:10:32.760 you're canna expect Brady's number twelve to be retired at 0:10:32.760 --> 0:10:36.080 a Pat's game next season. Tampa Bay now needs a quarterback. Meanwhile, 0:10:36.559 --> 0:10:39.920 a lawsuit filed in Manhattan Federal Court by Brian Flores, 0:10:40.000 --> 0:10:42.320 recently fired as the head coach of the Dolphins, excusing 0:10:42.360 --> 0:10:46.280 the NFL and three teams Miami, Denver, and the Giants 0:10:46.320 --> 0:10:49.960 of racism and their hiring practices. Flora said in two 0:10:50.000 --> 0:10:52.280 thousand nineteen in Denver, just recently with the Giants, he 0:10:52.360 --> 0:10:54.280 was interviewed for a head coaching job that he had 0:10:54.360 --> 0:10:57.120 no chance of getting, and he offered as proof a 0:10:57.280 --> 0:10:59.800 text he got last week from Bill Belichick, who apparently 0:11:00.040 --> 0:11:03.760 mted to go to Brian dayball. He congratulated him on 0:11:03.800 --> 0:11:07.320 getting the Giants job. It was before Flores even had 0:11:07.360 --> 0:11:10.480 his interview. Perhaps most shocking, Lee Flora said, Dolphins owner 0:11:10.520 --> 0:11:13.560 Stephen Ross offered to pay him more money if his 0:11:13.640 --> 0:11:16.480 team lost so they could get a better draft pick. 0:11:16.920 --> 0:11:19.480 Nets and Phoenix Sons of one forty of their last 0:11:19.520 --> 0:11:23.520 forty six. They beat Brooklyn eleven, Devin Booker thirty five points. 0:11:23.600 --> 0:11:26.720 Rangers at the Garden beat Florida five to two, more 0:11:26.760 --> 0:11:29.079 goals both on the power play for Chris Cried are 0:11:29.080 --> 0:11:31.360 now thirty three goals on the year, more than half 0:11:31.360 --> 0:11:33.319 of those with the man advantage. Islanders back to five 0:11:33.400 --> 0:11:36.600 hundred four one over Ottawa Devil sixth raight loss, beaten 0:11:36.600 --> 0:11:39.640 by Toronto seven one. St. John's lost the biggest, leading 0:11:39.679 --> 0:11:43.000 Providence eight six eighty two. Pash Alexander twenty nine points 0:11:43.000 --> 0:11:45.840 of the red storm. Seaton Hall won at Georgetown. Rutgers 0:11:45.840 --> 0:11:48.440 came from twenty four down to force overtime but lost 0:11:48.440 --> 0:11:52.320 by a point. At Northwestern John stash Award Bloomberg Sports 0:11:52.360 --> 0:11:55.400 Nathan all Right, John, thanks futures moving higher, SMP futures 0:11:55.480 --> 0:11:58.280 up thirty four points a town futures that futures hired 0:11:58.280 --> 0:12:02.000 by two hundred thirty six points ten your treasury yield one. 0:12:03.200 --> 0:12:09.120 This is Bloomberg Bloomberg eleven three oh Weather mix of 0:12:09.160 --> 0:12:11.880 sun in clouds today with a high near forty five degrees, afternoon, 0:12:11.960 --> 0:12:15.240 rain tomorrow, mid forties at rain a Lenda's wet sleet 0:12:15.400 --> 0:12:19.720 or snow Friday with higher thirty five currently thirty four degrees. 0:12:21.880 --> 0:12:25.280 Markets headlines, and breaking news twenty four hours a day 0:12:25.400 --> 0:12:29.480 at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quicktake, 0:12:29.720 --> 0:12:39.000 This is a Bloomberg Business flash and I'm Karen Moscow. 0:12:39.080 --> 0:12:41.120 And global stocks are headed for the biggest four day 0:12:41.200 --> 0:12:45.600 rally since November of US DOT Index futures are jumping 0:12:45.880 --> 0:12:48.280 as a con as companies from the US to Europe 0:12:48.280 --> 0:12:51.240 report better than forecast earnings and dip fine continues and 0:12:51.320 --> 0:12:54.520 technology shares. We check the markets every fifteen minutes throughout 0:12:54.559 --> 0:12:56.959 the trading day on Bloomberg and right now, S and 0:12:57.040 --> 0:13:00.160 P futures are up thirties seven points down. Future is 0:13:00.240 --> 0:13:04.240 up fifty nasdack features up two hundred thirty five. That's 0:13:04.320 --> 0:13:07.360 up one point six percent. The decks in Germany's up 0:13:07.400 --> 0:13:10.360 half percent. Ten. Your treasury up to thirty seconds, you 0:13:10.400 --> 0:13:12.400 had one point seven eight percent. They yield on the 0:13:12.440 --> 0:13:15.440 two year one point one six percent. Nine. Mex screwed 0:13:15.480 --> 0:13:17.520 oil is up a quarter percent, or twenty cents at 0:13:17.520 --> 0:13:19.960 eighty eight dollars forty one cents a barrel. Co Mex 0:13:20.000 --> 0:13:22.160 School the tenth of upper cent or two dollars fifty 0:13:22.240 --> 0:13:25.800 cents at eighteen o four twenty announced the euro one 0:13:25.800 --> 0:13:28.320 point one two nine seven against the dollar British found 0:13:28.360 --> 0:13:30.800 one point three five four two, the ens at one 0:13:30.880 --> 0:13:33.920 four teen point three six, and Bitcoin this morning moving 0:13:33.960 --> 0:13:37.600 lower at thirty eight thousand, four hundred sixty dollars. That's 0:13:37.600 --> 0:13:40.120 a Bloomberg business flash. Now here's Michael Barr with more 0:13:40.200 --> 0:13:42.400 on what's going on around the world. Munchael, Good morning, 0:13:42.480 --> 0:13:46.160 Good morning, Karen. Us. Hospital admissions for COVID nineteen are 0:13:46.200 --> 0:13:49.559 receiving in thirty four states and the nation's capital, easing 0:13:49.600 --> 0:13:53.280 the healthcare staffing crisis that were widespread at the start 0:13:53.320 --> 0:13:56.760 of the year. The World Health Organization warren countries, though 0:13:57.120 --> 0:14:01.880 not to ease restrictions prematurely. For Miami Dolphins coach Brian 0:14:01.960 --> 0:14:05.920 Flores is suing the NFL and three teams, including the Giants, 0:14:06.240 --> 0:14:09.920 claiming quote the NFL is racially segregated and has managed 0:14:10.040 --> 0:14:14.319 much like a plantation. The Dolphins fired Floors last month 0:14:14.400 --> 0:14:17.600 after back to back winning seasons. The lawsuit even accuses 0:14:17.640 --> 0:14:20.520 Dolphins owner Stephen Ross of offering to pay Floors a 0:14:20.600 --> 0:14:23.400 hundred thousand dollars for every loss during the twenty nineteen 0:14:23.440 --> 0:14:27.360 season to secure a higher draft pick in the NBA. 0:14:27.480 --> 0:14:31.440 The Nets and Wizards lost, the Warriors one, NHL Action, 0:14:31.480 --> 0:14:34.120 the Rangers, Islanders and Bruins one, the Capitol's one an 0:14:34.120 --> 0:14:37.440 ot against the Penguins for three the Devil's lost. Global 0:14:37.480 --> 0:14:39.520 News twenty four hours a day on air and on 0:14:39.600 --> 0:14:42.680 Bloomberg Quick Take, powered by more than twenty seven hundred 0:14:42.720 --> 0:14:45.880 journalists and analysts more than a hundred twenty countries. Michael Barr, 0:14:46.000 --> 0:14:48.240 this is Bloomberg Naked Fine. Michael, thank you. We're coming 0:14:48.320 --> 0:14:50.120 up to five twenty on Wall Street Life from the 0:14:50.160 --> 0:14:54.320 Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreaking. Michael Houston 0:14:54.440 --> 0:14:58.040 joins US now chief Market analyst at CMC Markets. With 0:14:58.120 --> 0:15:01.640 a definite risk on field, Michael, particularly if you're a 0:15:01.720 --> 0:15:04.440 tech investor. I guess it doesn't hurt when the Google 0:15:04.480 --> 0:15:07.760 parent Alphabet comes in with really solid earning. Spoken this 0:15:07.880 --> 0:15:12.600 kind of momentum continue on the tech side. Um well, 0:15:12.640 --> 0:15:14.640 I think I think that's a question that a lot 0:15:14.680 --> 0:15:17.320 of people are currently asking. We've seen a fairly decent 0:15:17.440 --> 0:15:20.520 rebound over the course of the past three or four days, 0:15:20.520 --> 0:15:22.800 but I think the wider question is whether or not 0:15:23.120 --> 0:15:28.240 markets of adequately priced in fed rate rise expectations, and ultimately, 0:15:28.280 --> 0:15:30.920 I think one of the reasons why we've seen the 0:15:31.000 --> 0:15:36.400 rebounding tech is because those FED members pushed back quite 0:15:36.560 --> 0:15:42.600 significantly on the expectation of a not point five hiking 0:15:43.000 --> 0:15:47.880 rates in March. And I also think market expectations around 0:15:47.960 --> 0:15:49.960 the number of rate rises this year have become much 0:15:50.000 --> 0:15:52.640 more realistic. You know what, I've heard an awful lot 0:15:52.640 --> 0:15:56.080 of chatter about five, six or seven rate rises this year, 0:15:56.520 --> 0:15:58.320 and I think a large part of the reason we 0:15:58.360 --> 0:16:00.200 saw the sell off at the back end of Chaney 0:16:00.320 --> 0:16:03.080 was because of concern about that. Now that we're out 0:16:03.080 --> 0:16:06.560 of the quiet period and FED policy makers are an 0:16:06.600 --> 0:16:09.400 awful lot more vocal, there's been pushed back on that now. 0:16:09.440 --> 0:16:12.360 Of course, that could all change next week with the 0:16:12.480 --> 0:16:16.560 US CPI number, But for the time being, I think 0:16:16.600 --> 0:16:20.920 if ten y yields remain below one and two yields 0:16:20.960 --> 0:16:24.160 remain below one point two, then I certainly think this 0:16:24.360 --> 0:16:28.480 rally has got legs now. So the CPI number is probably, 0:16:29.000 --> 0:16:31.800 from what I hear from you, the bigger focus as 0:16:31.800 --> 0:16:36.520 opposed to the jobs report coming out on Friday. Yeah, 0:16:36.560 --> 0:16:39.520 I mean Patrick Harker pushed back on that yesterday. We're 0:16:39.520 --> 0:16:42.680 expecting a pretty poor report, and ultimately I think January, 0:16:42.760 --> 0:16:44.880 I think a couple of years ago there's also a 0:16:44.920 --> 0:16:49.120 disappointing number as well. Um in the in the when 0:16:49.120 --> 0:16:52.960 we had similar problems with respect to a previous variant. 0:16:53.120 --> 0:16:57.080 So we're coming out of the pandemic. Ultimately, I think 0:16:57.160 --> 0:17:00.160 the FED thinks that we are at maximum employment. I 0:17:00.200 --> 0:17:03.080 think a poor jobs report is priced in. It's much 0:17:03.120 --> 0:17:06.080 more about inflation, and certainly I think that is the 0:17:06.080 --> 0:17:09.680 clear and present concern for investors at the moment. I mean, 0:17:09.920 --> 0:17:13.000 around about ten minutes ago we saw a you CPI 0:17:13.119 --> 0:17:15.960 come out a new record hire five. Yeah. I was 0:17:16.000 --> 0:17:18.960 going to ask you about that. Whether the ECB can 0:17:19.000 --> 0:17:23.800 maintain it's a slower rate hike path with that kind 0:17:23.840 --> 0:17:28.560 of record heart inflation coming in in the Eurozone, I 0:17:28.600 --> 0:17:30.280 think what gives them a little bit of a get 0:17:30.280 --> 0:17:33.080 out of jail free card on that. On that score, Nathan, 0:17:33.200 --> 0:17:35.920 is the fact that core prices fell back from two 0:17:35.920 --> 0:17:38.879 point six to two points three in January. But it 0:17:39.000 --> 0:17:41.760 is a worry. I mean, you can't credibly argue that 0:17:41.840 --> 0:17:45.000 the FED is behind the curve on inflation, while at 0:17:45.000 --> 0:17:48.000 the same time I argue that the CBS and I mean, yes, 0:17:48.000 --> 0:17:51.320 there are differences between the economies, but ultimately, I think 0:17:51.359 --> 0:17:54.040 if the ECB is lagging behind the FED, which most 0:17:54.080 --> 0:17:56.920 people acknowledge that it is, then we're likely to see 0:17:57.000 --> 0:18:00.480 much more persistent inflation going forward. So I think Madame 0:18:00.560 --> 0:18:03.040 Lagarde is going to find it very, very difficult to 0:18:03.200 --> 0:18:06.280 hold the line on the transitory narrative when you've got 0:18:06.359 --> 0:18:09.679 inflation in the Baltic states of around about ten or 0:18:09.720 --> 0:18:14.200 twelve cp I offsetting against the weakend numbers that you're 0:18:14.240 --> 0:18:18.119 seeing in Italy and Spain, which still is well above 0:18:18.200 --> 0:18:23.960 the headline two target. So in a last minute here, Michael, 0:18:23.960 --> 0:18:27.520 which sectors are you looking at to perform well in 0:18:27.560 --> 0:18:34.639 this kind of elevated inflationary environment. Well, at the moment, 0:18:34.920 --> 0:18:37.080 we've got a rising tide and appears to be lifting 0:18:37.080 --> 0:18:39.159 all boats would have seen so far, as obviously the 0:18:39.240 --> 0:18:41.200 energy sector. I mean, that's a no brainer. X on 0:18:41.320 --> 0:18:46.040 mobiles numbers yesterday, we're I think a real standout, and 0:18:46.080 --> 0:18:48.240 I think I'll be paying particular attention over the course 0:18:48.240 --> 0:18:51.320 of the next couple of weeks to BP and shells 0:18:51.400 --> 0:18:53.919 numbers over here, because they have been very disappointing and 0:18:53.960 --> 0:18:57.840 those shares have lagged. Obviously telecoms as well. There's an 0:18:57.840 --> 0:19:00.560 awful lot of M and A there to phone this 0:19:00.640 --> 0:19:04.280 morning was slightly better than expected, so certainly be looking 0:19:04.359 --> 0:19:07.080 for M and A activity in that particular sector as 0:19:07.119 --> 0:19:10.119 well here in Europe. All right, interesting as always to 0:19:10.119 --> 0:19:13.159 get your insights. Thanks for this, Michael. Michael Houston is 0:19:13.320 --> 0:19:18.480 Chief market Analyst at CMC Markets. As tech really is 0:19:18.600 --> 0:19:21.400 the focus this morning after the earnings we saw last 0:19:21.480 --> 0:19:26.200 night from a Google parent Alphabet NASDAC futures are surging 0:19:26.400 --> 0:19:28.320 this morning, up one and a half percent or two 0:19:28.640 --> 0:19:31.560 D twenty seven points, leading the gains. Solid gains for 0:19:31.600 --> 0:19:34.040 the SMP futures as well. They're up thirty six points 0:19:34.119 --> 0:19:36.720 or eight tenths of one percent. DAL futures also in 0:19:36.760 --> 0:19:39.560 the green, up fifty one points. That's a gain of 0:19:39.600 --> 0:19:42.320 about one to two tenths of one percent. The tenure 0:19:42.320 --> 0:19:45.760 treasury is up one thirty second yield one point seven 0:19:45.800 --> 0:19:47.840 eight percent on the tenure note and the yield on 0:19:47.880 --> 0:19:50.440 the two year right now one point one six percent. 0:19:51.119 --> 0:19:53.679 The docks in Germany CAC in Paris both up a 0:19:53.720 --> 0:19:57.920 half percent after that record five point one percent inflation 0:19:58.000 --> 0:20:00.800 print out of the euro zones day with us for more. 0:20:00.880 --> 0:20:08.360 You're listening to Bloomberg Daybreak. Bloomberg day Break is brought 0:20:08.359 --> 0:20:10.399 to you by the Breakers. This winter, a warm welcome 0:20:10.400 --> 0:20:12.640 awaits you. The Breakers is committed to making your stay 0:20:12.640 --> 0:20:16.360 even better with exceptional experiences, gracious service, and unparalleled sea 0:20:16.400 --> 0:20:18.760 side glamer. To learn more, visit the Breakers dot com. 0:20:18.800 --> 0:20:26.040 Today broadcasting live from the Bloomberg Interactive Broker Studio in 0:20:26.119 --> 0:20:29.119 New York, Bloomberg E Living free to Washington, d C, 0:20:29.320 --> 0:20:33.040 Bloomberg N one to Boston, Bloomberg one O six one 0:20:33.119 --> 0:20:36.600 to San Francisco, Bloomberg nine six to the country, Sirius 0:20:36.760 --> 0:20:39.920 XM chto one nineteen and around the globe, the Bloomberg 0:20:39.960 --> 0:20:44.400 Business APT and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 0:20:50.280 --> 0:20:52.440 It's fine thirty on Wall Street. Good morning. I'm Nathan 0:20:52.440 --> 0:20:55.680 Hager and I'm kerin Moscow. We are just about four 0:20:55.840 --> 0:20:58.480 hours away from the open of US trading. Let's get 0:20:58.520 --> 0:20:59.760 you up to date on the news you need to 0:20:59.800 --> 0:21:02.000 know this hour and now. As the future is higher 0:21:02.119 --> 0:21:05.520 this morning, building on three straight days of gains. The 0:21:05.600 --> 0:21:09.280 catalyst this morning strong earnings from alphabet Angelo Zeno is 0:21:09.320 --> 0:21:11.880 an analyst at cf A, you know, kind of going 0:21:11.920 --> 0:21:13.440 into the quarter, I think there might have been some 0:21:13.480 --> 0:21:16.480 concerns about some of the supply constraints going on the 0:21:16.520 --> 0:21:19.640 market and potentially hindering some of the ad spend out there. 0:21:19.680 --> 0:21:21.600 But kind of look at the search business and I 0:21:21.600 --> 0:21:23.639 think that's really kind of the big winner here of 0:21:24.280 --> 0:21:27.119 percent and really kind of blew our numbers away. C 0:21:27.400 --> 0:21:30.119 f r A analyst Angelo Zeno says a stock split 0:21:30.200 --> 0:21:33.040 is also lifting Alphabet shares. The company will increase its 0:21:33.040 --> 0:21:36.440 outstanding shares by a twenty to one ratio. Another high 0:21:36.480 --> 0:21:39.040 tech companies rollying this morning, Karen Shares of a M 0:21:39.160 --> 0:21:41.440 d Or up eleven and a half percent. The ship 0:21:41.480 --> 0:21:44.760 maker gave us surprisingly strong sales forecast, suggesting it's making 0:21:44.800 --> 0:21:49.080 further gains on rival Intel. Facebook reports this afternoon General 0:21:49.160 --> 0:21:52.119 motors of nearly one percent in the pre market. Nathan 0:21:52.119 --> 0:21:54.960 the company's earnings BEATA estimates, while its forecast was in 0:21:55.000 --> 0:21:59.040 line with predictions. GMC's a semi conductor shortage easing this year, 0:21:59.080 --> 0:22:02.080 but says lower volume ven higher costs will restrain profit. 0:22:02.400 --> 0:22:04.879 Obside of corporate earnings, a measured ton from the FED 0:22:05.119 --> 0:22:08.120 is also boosting stocks we get that story live from Bloomberg. 0:22:08.200 --> 0:22:10.800 Rinia Young, Good morning, Granita, Good morning Nathan. Central Bank 0:22:10.800 --> 0:22:13.640 officials are laying out a gradual approach to the path 0:22:13.760 --> 0:22:16.639 for rate hikes this year. That differs from some Wall 0:22:16.680 --> 0:22:20.159 Street forecasts, which include as many as seven rate hikes 0:22:20.160 --> 0:22:23.440