WEBVTT - Bloomberg Daybreak: March 23, 2022 - Hour 1 (Radio) 0:00:02.520 --> 0:00:06.000 Live from the Bloomberg Interactive Brokers studios. This is Bloomberg 0:00:06.040 --> 0:00:09.799 day Break for Wednesday, March two. Coming up this hour, 0:00:09.920 --> 0:00:13.000 President Biden hits to Europe to push for tougher sanctions 0:00:13.000 --> 0:00:16.560 on Russia. Supreme Court Nominique Kasangi Brown Jackson's on Capitol 0:00:16.640 --> 0:00:19.840 Hill for day three of confirmation hearings, and global bomb 0:00:19.840 --> 0:00:23.599 markets suffer on present headed losses since peaking last year. 0:00:23.880 --> 0:00:27.080 New York City may lift rules requiring face masks for 0:00:27.240 --> 0:00:31.080 children under five, plus, a deadly tornado cuts a destructive 0:00:31.120 --> 0:00:34.960 path through New Orleans. I'm Michael barn Ahead, I'm John Stash, 0:00:34.960 --> 0:00:36.839 Aaron Sports, a loss for the Nicks, the win for 0:00:36.880 --> 0:00:39.280 the Alanders, the Devils beat the Rangers, and the top 0:00:39.320 --> 0:00:44.480 women's tennis player in the world is retiring. That's all 0:00:44.640 --> 0:00:49.160 straight Ahead on Bloomberg day Break on Bloomberg Elementoro, New York, 0:00:49.320 --> 0:00:54.040 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.200 --> 0:00:58.720 Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:59.080 --> 0:01:01.760 and around the world Old on Bloomberg Radio dot Com 0:01:01.920 --> 0:01:08.959 and via The Bloomberg Business That good morning. I'm John Tucker. 0:01:09.040 --> 0:01:11.600 I'm Nathan Hagar futures are moving a bit lower this morning. 0:01:11.600 --> 0:01:13.920 We're coming up to five oh one on Wall Street. 0:01:13.920 --> 0:01:16.320 We check the markets every fifteen minutes during the trading day. 0:01:16.360 --> 0:01:19.440 On bloomberg SMB futures are down almost six points, Stout 0:01:19.440 --> 0:01:22.319 futures down forty four, Nastack futures lower by twenty points. 0:01:22.480 --> 0:01:24.800 The tenure treasury is up three thirty seconds. The yield 0:01:24.840 --> 0:01:27.039 two point three six percent heel than the two year 0:01:27.080 --> 0:01:29.840 two point one four nime X screwed up eight tenths 0:01:29.840 --> 0:01:32.040 per cent, or eighty five cents at a hundred ten 0:01:32.080 --> 0:01:35.880 dollars fifteen cents a barrel. John Nathan will have more 0:01:35.880 --> 0:01:37.760 in the markets in a minute, but first, the latest 0:01:37.800 --> 0:01:41.360 on the war. Ukraine's President Vladimir Zelinski says about one 0:01:41.440 --> 0:01:45.080 hundred thousand people remain in the besieged city of Meropol. 0:01:45.400 --> 0:01:50.200 There without food, water, in medicine, and are under constant bombardment. Meantime, 0:01:50.240 --> 0:01:53.680 President Biden heads to Europe to rally around tougher sanctions 0:01:53.680 --> 0:01:57.800 on Russia. More from Bloomberg's, said Baxter. National security advisor 0:01:57.920 --> 0:02:00.640 Jake Sullivan says the Biden trip this way will firm 0:02:00.720 --> 0:02:03.560 the plans he will join our partners in imposing further 0:02:03.600 --> 0:02:07.400 sanctions on Russia and tightening the existing sanctions to crack 0:02:07.440 --> 0:02:11.200 down on evasion and to ensure robust enforcement. And reports 0:02:11.200 --> 0:02:14.480 are that the Biden administration is preparing sanctions on most 0:02:14.639 --> 0:02:18.160 members of Russia's State Duma, the lower house of parliament, 0:02:18.200 --> 0:02:21.839 more than three hundred. They will be coordinated with the EU. 0:02:22.040 --> 0:02:25.480 In San Francisco, I'm at Baxter Bloomberg Daybreak. All right, ed, thanks, 0:02:25.480 --> 0:02:28.240 another major story where following brings us back to Capitol Hill, 0:02:28.280 --> 0:02:30.639 where it will be day three of Judge Katangi Brown 0:02:30.720 --> 0:02:34.760 Jackson's Supreme Court hearing before the Senate Judiciary Committee. Yesterday 0:02:34.800 --> 0:02:38.320 marked her first chance to field questions from senators. Amy 0:02:38.360 --> 0:02:42.600 Morris has details from our Bloomberg newsroom in Washington. Republican 0:02:42.639 --> 0:02:45.960 Senator Marsha Blackburn pressed Jackson on abortion and whether she 0:02:46.000 --> 0:02:48.760 would respect the Supreme Court's ruling and the event that 0:02:48.800 --> 0:02:53.040 the Court effectively guts rov Wade. Senator, whatever the Supreme 0:02:53.040 --> 0:02:56.560 Court decides in Dobbs will be the president of the 0:02:56.600 --> 0:03:00.200 Supreme Court, and I commit to treating it as say 0:03:00.200 --> 0:03:04.120 would any other president. Republican Senator Tom Cotton pressed Jackson 0:03:04.160 --> 0:03:07.240 on policing and the role of law enforcement. I asked 0:03:07.240 --> 0:03:10.520 the simple either or question, the United States need more 0:03:10.639 --> 0:03:16.400 or fewer police? Senator, The determination about whether there should 0:03:16.400 --> 0:03:21.280 be more or fewer police is a policy decision by 0:03:21.400 --> 0:03:24.440 another branch of government. It is not something that judges 0:03:24.520 --> 0:03:27.680 have control over. More questioning by senators is set for 0:03:27.840 --> 0:03:31.440 today in Washington. I'm anymore as Bloomberg daybreak and thanks Tommy, 0:03:31.520 --> 0:03:34.440 we turned from Washington to China. Now the latest details 0:03:34.440 --> 0:03:37.320 on the deadly plane crash this week. The China Eastern 0:03:37.400 --> 0:03:40.640 jet that crashed Monday was traveling close to the speed 0:03:40.680 --> 0:03:43.920 of sound just moments before it plunged into a hillside. 0:03:44.280 --> 0:03:46.720 Let's get more from Bloomberg Stephen Angle in Hong Kong. 0:03:46.960 --> 0:03:50.640 When the airplane is traveling at that speed, crashing into 0:03:50.880 --> 0:03:56.640 the ground, it obliterates everything, including potentially the flight and 0:03:56.720 --> 0:03:59.560 voice data recorders, the so called black boxes, which are 0:03:59.560 --> 0:04:02.800 actually of course orange, and those have not yet been 0:04:02.840 --> 0:04:05.720 found and that will be critical, of course to determining 0:04:05.760 --> 0:04:09.240 what exactly caused this mystery crash. Bloomberg Steven Angle reports 0:04:09.280 --> 0:04:12.520 all one two people on board the China Eastern jet 0:04:12.560 --> 0:04:14.520 died in the crash. We'll back here in the U 0:04:14.640 --> 0:04:16.760 S John For markets, it is all about the Fed. 0:04:16.880 --> 0:04:19.960 Central Bank officials are joining j Powell's hawk ish call 0:04:20.040 --> 0:04:23.480 on interest rates. Cleveland FED President Laretta Mester says more 0:04:23.520 --> 0:04:26.240 than a quarter point hike maybe needed. I don't think 0:04:26.360 --> 0:04:29.080 fifty basis points should be off the table. You know, 0:04:29.160 --> 0:04:32.040 my fung ate passes a little steeper than the median path, 0:04:32.720 --> 0:04:35.560 So if you do the math, you know, um, I 0:04:35.600 --> 0:04:39.120 think we're gonna probably need to move some some of 0:04:39.120 --> 0:04:43.440 those means. Mester joined St. Louis FED President Jim Bullard 0:04:43.440 --> 0:04:46.880 in calling for Quaker tightening. Bullard tells Bloomberg faster is 0:04:46.920 --> 0:04:49.000 better when it comes to rate hikes. What you have 0:04:49.040 --> 0:04:52.159 to do is move the policy rate up discreetly a 0:04:52.200 --> 0:04:55.640 fair amount, not to be too disrupt him, but I 0:04:55.680 --> 0:04:58.719 think fifty basis point moves will definitely be in the mix, 0:04:59.480 --> 0:05:01.839 and then get to a level that we can be neutral, 0:05:01.880 --> 0:05:03.920 and then from there we can decide if we want 0:05:03.920 --> 0:05:08.279 to be restrictive and put further downward pressure on inflation. 0:05:08.480 --> 0:05:11.000 Then Jim Bowler's reiterating his call for interest rates to 0:05:11.000 --> 0:05:13.599 go above three percent this year's Stay tuned for more 0:05:13.640 --> 0:05:16.280 from the Fed today. Will speak live with San Francisco 0:05:16.400 --> 0:05:19.560 President Mary Daily. That's coming up at eleven thirty am 0:05:19.600 --> 0:05:22.400 Wall Street Time on Bloomberg Radio and Television. Nasing the 0:05:22.400 --> 0:05:25.279 prospect of higher rates taking a toll on the bomb market. 0:05:25.320 --> 0:05:28.920 The Bloomberg Global Aggregate Index that's a benchmark for government 0:05:28.920 --> 0:05:32.680 and corporate debt total returns has fallen eleven percent from 0:05:32.680 --> 0:05:35.599 its high in January last year. That's the biggest decline 0:05:35.640 --> 0:05:39.159 from a peak in data. Stretching back to it equates 0:05:39.200 --> 0:05:42.120 to a drop in the index market value of about 0:05:42.160 --> 0:05:45.159 two point six trillion dollars. And when it comes to 0:05:45.240 --> 0:05:47.960 sucks John, now is not the time to buy. That's 0:05:47.960 --> 0:05:50.920 according to Muhammad al Aria, the Bloomberg opinion columnist and 0:05:51.000 --> 0:05:54.440 chief economic advisor at Alliance, says investors need to pair 0:05:54.480 --> 0:05:58.640 their holdings. If I'm investing over the next twelve month horizon, 0:05:59.360 --> 0:06:02.160 I would whose equities at this point, I would take 0:06:02.240 --> 0:06:04.320 some money off the table. I think the market is 0:06:04.360 --> 0:06:07.799 given you a wonderful opportunity to come out. Muhammad Hlarian 0:06:07.839 --> 0:06:10.080 says equity markets have yet to factor in what's to 0:06:10.160 --> 0:06:12.840 come for the economy, and speaking of the economy, with 0:06:13.000 --> 0:06:15.400 fresh data on wages this morning, a new studies shows 0:06:15.440 --> 0:06:18.719 a lot of Americans are still seeing pay below fifteen 0:06:18.760 --> 0:06:22.720 dollars an hour. Bloombergs rending Young joins US Live with details. 0:06:22.720 --> 0:06:25.640 Good morning, Nita, Good morning John. A report from Oxfam 0:06:25.720 --> 0:06:28.880 America finds one in three U. S workers is still 0:06:28.880 --> 0:06:32.200 making less than fifteen dollars an hour, and the share 0:06:32.240 --> 0:06:34.880 of women and people of color earning that amount is 0:06:34.960 --> 0:06:38.839 even greater. The report helps quantify how Americans could be 0:06:38.880 --> 0:06:41.960 impacted by the Raise the Wage Act, which would set 0:06:41.960 --> 0:06:45.839 a fifteen dollar federal minimum wage. The legislation is still 0:06:45.880 --> 0:06:49.720 pending in Congress now. While pcent of men earned less 0:06:49.720 --> 0:06:53.039 than fifteen dollars an hour, the figure is forty for 0:06:53.120 --> 0:06:57.000 women and fifty percent for women who are working of color. 0:06:57.600 --> 0:07:00.280 Live in New York. I'm Renita Young, Bloomberg Day Break. 0:07:00.320 --> 0:07:02.400 All right, we're renieda, thanks very much, and ahead of 0:07:02.400 --> 0:07:04.960 the CASHO on the Wall Street futures this morning, they're 0:07:04.960 --> 0:07:07.919 lower than our futures, down forty two points. That's a 0:07:07.960 --> 0:07:10.280 decline of about a tenth of a percent. Smp E 0:07:10.320 --> 0:07:13.760 many futures six points lower, and the NANSAC futures right 0:07:13.760 --> 0:07:18.120 now they are down twenty points. You're listening to Bloomberg 0:07:18.200 --> 0:07:25.080 Daybreak pan's five o seven on Wall Street. Let's bring 0:07:25.080 --> 0:07:26.880 in Michael Barne now with more on what else is 0:07:26.920 --> 0:07:29.640 going on in New York and around the world. John, 0:07:29.760 --> 0:07:32.640 thank you very much. New York City Mayor Eric Adams 0:07:32.720 --> 0:07:35.880 is preparing to lift requirements that children under the age 0:07:35.880 --> 0:07:40.360 of five where face masks in schools. We're announcing that 0:07:40.680 --> 0:07:45.960 if the numbers continue to show a low level of risks. 0:07:46.720 --> 0:07:50.880 Let me see that again. If the numbers continue to 0:07:51.120 --> 0:07:55.840 show a low level of risk, mask would be optional 0:07:56.240 --> 0:08:00.160 for two to four years old students in schools and 0:08:00.240 --> 0:08:03.760 in daycare. Adam says it will start April fourth, if 0:08:03.840 --> 0:08:06.720 case rates and the risk of the virus spreading remain low. 0:08:07.160 --> 0:08:10.920 Adams two weeks ago lifted several pandemic related rules, including 0:08:10.960 --> 0:08:14.120 requirements in place since the start of the pandemic that 0:08:14.200 --> 0:08:17.480 students five and older to wear masks in school. A 0:08:17.520 --> 0:08:21.640 new federal lawsuit accuses the NYPD of taking and storing 0:08:21.720 --> 0:08:26.120 DNA as part of an illegal and unregulated database. The 0:08:26.200 --> 0:08:29.760 lawsuit accuses the department of turning tens of thousands of 0:08:29.760 --> 0:08:34.200 people into quote, permanent criminal suspects. It happens when someone 0:08:34.320 --> 0:08:37.880 is arrested or brought in for questioning, and eats, drinks, 0:08:38.000 --> 0:08:41.600 or smokes while on the premises. The NYPD admits it 0:08:41.640 --> 0:08:44.559 collects DNA in this way, but says it is within 0:08:44.679 --> 0:08:48.680 the law. A large, destructive tornado struck the east side 0:08:48.679 --> 0:08:52.360 of New Orleans last night. St. Bernard Parish President Guy 0:08:52.400 --> 0:08:56.560 McGinnis says the damage is widespread. All that was lifted 0:08:56.559 --> 0:08:59.160 office foundation and put it to the lower street right 0:08:59.200 --> 0:09:02.800 around a colony. Parish President Guy McGinnis says at least 0:09:02.840 --> 0:09:05.440 one person was killed. The twister was part of an 0:09:05.440 --> 0:09:08.600 outbreak of severe thunderstorms across the Deep South and follow 0:09:08.679 --> 0:09:12.040 a siege of tornadoes and Texas. On Monday, Hillary Clinton 0:09:12.080 --> 0:09:16.480 tested positive for COVID nineteen and has some mild cold symptoms. 0:09:16.800 --> 0:09:19.320 According to a tweet, the former Secretary of State and 0:09:19.440 --> 0:09:23.959 former presidential candidate says she feels fine. Meanwhile, White House 0:09:24.000 --> 0:09:27.760 Press Secretary Jen Saki tested positive for COVID nineteen and 0:09:27.800 --> 0:09:30.480 will no longer travel with President Joe Biden to Europe. 0:09:30.720 --> 0:09:33.880 Zaki says she is experiencing only my old symptoms and 0:09:33.920 --> 0:09:37.600 will isolate for five days. Biden tested negative. Global News 0:09:37.640 --> 0:09:40.800 twenty four hours a day on air and on Bloomberg Quicktake, 0:09:41.040 --> 0:09:44.160 powered by more than twenty seven hundred journalists and analyst 0:09:44.400 --> 0:09:46.679 in more than one hundred twenty countries. I'm Michael mar 0:09:46.840 --> 0:09:49.520 this is Bloomberg, John and some breaking news crossing the 0:09:49.640 --> 0:09:52.839 Bloomberg the Shinwall News Agency, and Shanna says the China 0:09:52.920 --> 0:09:57.920 Eastern Plains one black box has now been located. Details 0:09:57.960 --> 0:10:04.800 straight ahead, Michael, Thank you very much. Five ten Street 0:10:04.840 --> 0:10:08.480 tied out for the Bloomberg Sports Update Shower. Thanks John. 0:10:08.480 --> 0:10:10.840 The Knicks last season finished fourth in the East. This 0:10:10.960 --> 0:10:13.440 year they are twelfth, and any faint hopes of sneaking 0:10:13.480 --> 0:10:15.120 in the playoffs may have ended with the home loss 0:10:15.120 --> 0:10:18.199 to Atlanta, won seventeen to one. Eleven left the Knicks 0:10:18.240 --> 0:10:21.360 sixteens out, only ten to play. Trey Young lead the Hawks. 0:10:21.360 --> 0:10:23.920 Scored forty five points. Are j Barrett head thirty for 0:10:23.920 --> 0:10:26.800 the Knicks in Newark nightmare second period for the Rangers, 0:10:26.800 --> 0:10:29.920 Devil's wonted five nothing, scored all five in a thirteen 0:10:29.960 --> 0:10:32.480 minutes fan they won seven to four. Islanders won three 0:10:32.520 --> 0:10:35.559 nothing over Ottawa. Ash Party is the best women's CENIS 0:10:35.559 --> 0:10:38.240 player in the world, ranked number one. She just won Wimbledon, 0:10:38.280 --> 0:10:40.760 and the native Asse captured the Australian Open, but she's 0:10:40.760 --> 0:10:44.240 been tiring. At age twenty five, she's the anti Tom 0:10:44.280 --> 0:10:47.360 Brandy Barty says she no longer has the physical drive 0:10:47.480 --> 0:10:50.320 or the emotional wants. She's getting married. She says she's 0:10:50.360 --> 0:10:53.160 set to enjoy the next phase of her life. Baseball's 0:10:53.160 --> 0:10:55.720 opening day two weeks from tomorrow, Yankees hosts the Red Sox. 0:10:55.840 --> 0:10:58.760 Right now, the question is whether unvaccinate and Yankees will 0:10:58.760 --> 0:11:01.240 be allowed to play or will it be a Kyrie 0:11:01.280 --> 0:11:04.320 Irving situation. Not allowed to play home games due to 0:11:04.360 --> 0:11:07.480 the city's private employer mandate for in person work. May 0:11:07.559 --> 0:11:10.400 Or Adams said yesterday they may peel it back slowly, 0:11:10.559 --> 0:11:14.080 but that most businesses like the mandate. There's Yankee manager 0:11:14.160 --> 0:11:16.320 Aaron Boone. I still think there's a lot up in 0:11:16.320 --> 0:11:18.800 the air and a lot left to play out, and 0:11:18.800 --> 0:11:20.800 and we'll just see. But no, we haven't had a 0:11:20.880 --> 0:11:26.560 big group discussion on these kind of things, where again, um, 0:11:26.760 --> 0:11:29.040 I feel like Randy's on top of that and and that, 0:11:29.160 --> 0:11:31.840 and well, we'll see where it goes, and when it 0:11:31.840 --> 0:11:33.880 comes to time that we have to address it, we will. 0:11:33.960 --> 0:11:36.520 Boon reference Yankee president Randy Levine, who used to work 0:11:36.520 --> 0:11:39.120 in city Hall. Not known how many or which Yankees 0:11:39.160 --> 0:11:42.800 are unbacked. John Stash downward Bloomberg's voice, John, all right, John, 0:11:42.880 --> 0:11:45.720 thanks a lot ahead of the cash open the ball streets. 0:11:46.000 --> 0:11:48.679 Look at futures. They are in the red right now 0:11:48.840 --> 0:11:51.960 just slightly. You beat down futures down thirty nine points. 0:11:52.000 --> 0:11:54.640 That's a drop of a tenth of a percent. Smpe 0:11:54.679 --> 0:11:57.480 Mini futures five points slower. That's down the tenth of 0:11:57.520 --> 0:11:59.840 represent and that how does that key many futures right now? 0:12:00.200 --> 0:12:06.839 Twenty three? That is down troops. This is Bloomberg and 0:12:07.040 --> 0:12:10.080 the Bloomberg weatherports that I thickened in cloud showers arriving 0:12:10.080 --> 0:12:14.199 before evening, the high temperature to fifty tonight rain likely 0:12:14.360 --> 0:12:18.240 tomorrow occasional rain be high temperature to give a bid fifties. 0:12:18.320 --> 0:12:24.839 This is Bloomberg Markets headlines and breaking news twenty four 0:12:24.880 --> 0:12:27.920 hours a day at Bloomberg dot Com, the Bloomberg Business 0:12:27.920 --> 0:12:31.119 at and at Bloomberg Quick Tape. He's he's a Bloomberg 0:12:31.200 --> 0:12:39.840 Business Flash. I'm Nathan Hagar. Futures are moving a touch 0:12:39.920 --> 0:12:43.160 lower this morning, while global equity markets climb, investors are 0:12:43.160 --> 0:12:46.920 expanding their search for hedges. As the FEDS strengthened resolved 0:12:46.920 --> 0:12:50.439 to clamp down, an inflation drove bonds towards record losses. 0:12:50.920 --> 0:12:53.199 We check the markets every fifteen minutes during the trading 0:12:53.240 --> 0:12:55.880 day on Bloomberg. Right now, SMP futures are down five 0:12:55.920 --> 0:12:59.280 points down, futures are down thirty five. NASTAC futures are 0:12:59.280 --> 0:13:02.200 lower by twin t seven points. The docks in Germany 0:13:02.200 --> 0:13:04.040 and the CAC in Paris both up two tenths of 0:13:04.120 --> 0:13:06.880 one percent. The tenure Treasury is up four thirty seconds. 0:13:07.080 --> 0:13:09.080 The yield two point three six percent yield on the 0:13:09.080 --> 0:13:12.240 two year two point one four percent. Nime X screwed 0:13:12.320 --> 0:13:14.640 is up nine tenths per cent, up ninety eight cents 0:13:14.640 --> 0:13:16.920 at a hundred ten dollars twenty five cents of arrol 0:13:17.160 --> 0:13:19.480 come X golds up three tenths per center, five dollars 0:13:19.480 --> 0:13:22.280 thirty cents at nineteen thirty two. Even announced the euro 0:13:22.400 --> 0:13:24.680 one point one zero one six against the dollar, the 0:13:24.679 --> 0:13:27.160 pound one point three two three five. The end is 0:13:27.200 --> 0:13:31.000 at one point nine four. At seven am all street time, 0:13:31.000 --> 0:13:33.880 we get NBA mortgage applications than at ten. It's February 0:13:33.960 --> 0:13:37.600 new home sales Sintas and General Mills are among companies 0:13:37.600 --> 0:13:40.800 scheduled to report earnings today. That's a Bloomberg Business Flash 0:13:40.800 --> 0:13:42.680 and now here's Michael Barrt with more on what's going 0:13:42.679 --> 0:13:45.280 on around the world. Good morning Michael, Good morning Nathan. 0:13:45.360 --> 0:13:48.720 There's breaking news. According to the Shenhua News agency, one 0:13:48.760 --> 0:13:51.679 black box has been located in the crash of a 0:13:51.840 --> 0:13:55.240 China Eastern plane with one hundred thirty two people on board. 0:13:55.559 --> 0:13:58.760 President Joe Biden's trip to Europe comes at a critical 0:13:58.800 --> 0:14:01.560 moment for the war and you Krane, which could become 0:14:01.600 --> 0:14:05.120 a bloody stalemate as Russia pummels cities with air striants 0:14:05.160 --> 0:14:08.880 and artillery. Biden departs today on a four day trip. 0:14:08.960 --> 0:14:12.040 He will meet with allies during a long day of 0:14:12.080 --> 0:14:15.920 meetings in Brussels tomorrow. NATO and the European Union and 0:14:15.960 --> 0:14:19.240 the Group of Seven Nations are all holding summits that day. 0:14:19.560 --> 0:14:22.280 Biden on Friday a schedule to continue on to Poland. 0:14:22.480 --> 0:14:25.200 In the NBA, the Knickson Warriors lost in the NHL. 0:14:25.280 --> 0:14:28.320 The Devil's beat the Rangers seven four, The Islanders won 0:14:28.360 --> 0:14:31.440 the Capitol's lost. Global News twenty four hours a day 0:14:31.480 --> 0:14:34.240 on air and on Bloomberg Quick Tank powered by more 0:14:34.240 --> 0:14:37.640 than twenty seven under journalist and analyst more than twenty countries. 0:14:37.920 --> 0:14:40.520 Michael bar this is Bloomberg, John, Michael, thank you. Find 0:14:40.520 --> 0:14:42.920 twenty on the all streetwear line for the Bloomberg interrant 0:14:42.920 --> 0:14:47.240 to Brokers Studios. And this is Bloomberg Daybreak. This pretty 0:14:47.240 --> 0:14:50.200 big week on the diplomatic front as President Biden trous 0:14:50.240 --> 0:14:54.360 the Europe for Thursday's NATO meeting and the Ukraine's President 0:14:54.560 --> 0:14:57.560 Vladimir z Alinski he's gonna take part of via video 0:14:57.720 --> 0:15:01.080 for more, let's uh join with the professor Julie Norman 0:15:01.160 --> 0:15:05.480 of University College in London. Professor, thanks billiam with us. Hey, 0:15:05.520 --> 0:15:09.680 my first question is the resolve against Russia as strong 0:15:09.960 --> 0:15:13.960 and united as it appears to be on the surface. Well, John, 0:15:14.000 --> 0:15:16.920 that's certainly the image that the US and NATO allies 0:15:16.920 --> 0:15:19.920 are hoping to project this week. It's notable that they're 0:15:19.920 --> 0:15:22.720 having an in person meeting and in person meeting with 0:15:22.760 --> 0:15:25.840 heads of state in particular. One of the priorities for 0:15:25.880 --> 0:15:29.360 the Biden administration from the beginning of this crisis has 0:15:29.440 --> 0:15:33.120 been to project this sense of unity among allies that 0:15:33.200 --> 0:15:36.120 was before the invasion started. Throughout and then up through today, 0:15:36.280 --> 0:15:39.200 So one of the goals of this meeting. They will 0:15:39.200 --> 0:15:42.040 obviously be discussing substantive things as well, but it is 0:15:42.080 --> 0:15:44.600 just to project the sense of unity that the heads 0:15:44.600 --> 0:15:48.040 of state are coming together and are united. With that said, 0:15:48.080 --> 0:15:50.320 there are of course some disagreements among them which they 0:15:50.320 --> 0:15:53.680 will be discussing, including the types of military aid, the 0:15:53.720 --> 0:15:56.920 types of sanctions to continue um and how things may 0:15:57.000 --> 0:15:59.720 or may not escalate after this. So uh so there'll 0:15:59.720 --> 0:16:01.360 be a lot to discuss, but they're hoping that this 0:16:01.440 --> 0:16:03.520 meeting will at least send a message of a united 0:16:03.560 --> 0:16:09.400 front continuing. Is NATO strong at this point, Well, what 0:16:09.440 --> 0:16:12.160 we've seen obviously throughout this crisis that it's probably strength 0:16:12.160 --> 0:16:15.720 and NATO more than anything else has in recent decades. Obviously, 0:16:15.760 --> 0:16:19.120 there's going to be some disagreements among members. Many of 0:16:19.160 --> 0:16:22.000 the Eastern and Central European states would like an even 0:16:22.000 --> 0:16:26.520 more robust response to the crisis in Ukraine, additional types 0:16:26.560 --> 0:16:30.040 of military aid, including different kinds of fighter jets, even 0:16:30.040 --> 0:16:33.040 a no fly zone that Western Europeans in the US 0:16:33.120 --> 0:16:35.520 are not fully on board with. So some of those 0:16:35.560 --> 0:16:38.320 things will be discussed. But with that said, the way 0:16:38.360 --> 0:16:42.840 that the Alliance has come together wholeheartedly around sanctions, around 0:16:42.960 --> 0:16:46.080 just the idea of military aid more broadly, uh, and 0:16:46.200 --> 0:16:49.000 just just drowing up NATO itself. Throughout all this has 0:16:49.040 --> 0:16:51.800 probably strengthened the Alliance more than than anything else that 0:16:51.840 --> 0:16:54.560 we would have seen. You know, a potential Russian oil 0:16:54.680 --> 0:16:57.320 embargo that does raise the question of whether Europe can 0:16:57.360 --> 0:17:01.680 wean itself off Russian energy. Um, just how important is 0:17:01.800 --> 0:17:04.959 that front? Well, this is something that the Biden administration 0:17:04.960 --> 0:17:07.840 will probably raise, So the US and also Channons some 0:17:07.920 --> 0:17:10.720 other states have you know, have have put the sanctions 0:17:10.760 --> 0:17:13.280 on Russian oil. But that's a little bit easier for 0:17:13.320 --> 0:17:15.959 states in North American elsewhere to do than it is 0:17:16.080 --> 0:17:19.280 for Europe, and especially states like Germany and even Italy 0:17:19.320 --> 0:17:22.480 that are quite dependent on Russian oil. They have committed 0:17:22.520 --> 0:17:25.760 to reducing that dependence by two thirds by the end 0:17:25.800 --> 0:17:27.479 of the year. But I think we'll see a bit 0:17:27.520 --> 0:17:30.040 more pressing on what that actually means and if there 0:17:30.040 --> 0:17:32.520 can be some other steps that can be taken, perhaps 0:17:32.520 --> 0:17:37.240 sanctioning gas promers in the specific Russian companies and providers 0:17:37.320 --> 0:17:40.080 that are quite central in this industry. What else stands 0:17:40.119 --> 0:17:44.440 out for you? What are you particularly focused on right now. Well, 0:17:44.480 --> 0:17:47.119 I think what we'll also hear what NATO will discuss 0:17:47.119 --> 0:17:49.400 behind closed doors, and which we may not get many 0:17:49.440 --> 0:17:52.600 details on, is that you know what their potential response 0:17:52.640 --> 0:17:56.000 would be if Prutin does turn to use chemical weapons 0:17:56.160 --> 0:17:59.000 or what are sometimes called tactical nuclear weapons, so those 0:17:59.040 --> 0:18:01.439 that are kind of designed for battle field used. I 0:18:01.480 --> 0:18:04.760 think those steps would be unlikely still by Putin, but 0:18:04.840 --> 0:18:07.560 we know that there are possibilities, and that is something 0:18:07.640 --> 0:18:10.119 that the Biden administration really wants to make sure allies 0:18:10.160 --> 0:18:12.879 are on the same page with how they would respond. Again, 0:18:12.920 --> 0:18:15.480 Biden really does not want this conflict to escalate and 0:18:15.520 --> 0:18:18.520 to engage the US in particular or NATO, but a 0:18:18.560 --> 0:18:21.160 crossing of a kind of redline like something like that 0:18:21.280 --> 0:18:23.639 would probably warrant some kind of response, and NATO is 0:18:23.680 --> 0:18:24.919 going to have to try and figure out what that 0:18:25.000 --> 0:18:27.080 might be. One of the things that came out after 0:18:27.119 --> 0:18:31.679 the Cuban missile crisis in terms of nuclear weapons being 0:18:31.840 --> 0:18:35.439 used is that it was the tactical commanders on the 0:18:35.480 --> 0:18:39.480 ground there at the front in Cuba, the Soviet advisors 0:18:39.840 --> 0:18:43.639 who would have to say over that um. It just 0:18:43.760 --> 0:18:47.200 raises the specter of like things could get really complicated 0:18:47.240 --> 0:18:51.560 and really really dangerous very quickly. Absolutely, and that's obviously 0:18:51.800 --> 0:18:54.800 what the Biden administration NATO has been trying to avoid. 0:18:54.880 --> 0:18:57.840 That's one reason why they've been very clear in their messaging, 0:18:58.240 --> 0:19:00.800 uh something maybe to a fall alt in terms of 0:19:01.160 --> 0:19:03.440 making it very clear to Putin that they don't want 0:19:03.480 --> 0:19:05.520 to escalate this to any kind of level that would 0:19:05.560 --> 0:19:09.280 involve nuclear weapons. Uh. In my opinion, I think they're 0:19:09.359 --> 0:19:11.280 right to kind of air on that. We don't want 0:19:11.280 --> 0:19:13.920 to see it get to that point. And as you noted, 0:19:13.960 --> 0:19:16.160 with Russia right now, it's tricky. Even some of Putin's 0:19:16.200 --> 0:19:19.760 own military advisors who earlier and currently have spoken out 0:19:19.880 --> 0:19:22.760 against the kind of the strategies that he has employed. UM, 0:19:22.800 --> 0:19:25.760 I've been somewhat sidelined by Puttin himself, and it's uh, 0:19:25.800 --> 0:19:29.159 it's uncertain how much of a of a rationality we 0:19:29.160 --> 0:19:31.960 can expect from him at this point. Always a pleasure, professor, 0:19:32.000 --> 0:19:35.720 Thank you very much, Julie Norman, University College in London 0:19:36.160 --> 0:19:38.679 And ahead of the cashop on Wall Street. Look at 0:19:38.720 --> 0:19:42.440 futures this morning, kind of treading water down. Futures down 0:19:42.480 --> 0:19:46.320 just fifty four points and SMP immunate futures. They are 0:19:46.359 --> 0:19:49.639 seven points lower right now, and the nsday futures down 0:19:49.720 --> 0:19:53.680 twenty eight. Real action taking place in the Moon market's 0:19:53.720 --> 0:19:59.000 treasuries right now. The tenure yield UH seeing a decline 0:19:59.040 --> 0:20:01.680 of about one basis point right now at two point 0:20:01.760 --> 0:20:07.040 three six percent. You're listening to Bloomberg Daybreak Bloomberg Weather 0:20:07.119 --> 0:20:11.200 from meteorologist Rob Carol affechtning. Cloud showers will be here 0:20:11.200 --> 0:20:15.040 before evening today. The high temperature fifty be on Bloomberg tomorrow. 0:20:15.040 --> 0:20:23.040 Occasional rain high fifty to fifty five degrees croadcasting live 0:20:23.240 --> 0:20:27.159 from the Bloomberg Interactive Broker Studio in New York, Bloomberg 0:20:27.280 --> 0:20:32.000 Living Freedon to Washington, d C. Bloomberg to Boston, Bloomberg 0:20:32.040 --> 0:20:35.200 one o six one, does San Francisco, Bloomberg No. Sixty 0:20:35.320 --> 0:20:38.560 to the Country, Sirius XM chto one ninet and around 0:20:38.560 --> 0:20:42.520 the globe the Bloomberg Business apt and Bloomberg Radio dot Com. 0:20:42.520 --> 0:20:51.040 This is Bloomberg Daybreak. It's five thirty on Wall Street. 0:20:51.040 --> 0:20:53.639 Good morning, I'm John Tucker, Anna Nathan Hagar. We're just 0:20:53.680 --> 0:20:55.920 about four hours away from the open of US trading. 0:20:55.960 --> 0:20:57.320 Let's get you up to date. On the news. You 0:20:57.359 --> 0:20:59.600 need to know at this hour, President Biden is heading 0:20:59.640 --> 0:21:02.880 to your to rally allies around tougher sanctions on Russia 0:21:02.920 --> 0:21:05.359 for its invasion of Ukraine. We get the latest from 0:21:05.359 --> 0:21:08.399 Bloomberg senior reporter Mark Champion. What they are trying to 0:21:08.440 --> 0:21:11.840 do is to get ahead of what they know will 0:21:11.920 --> 0:21:15.600 be a continuing issue with Russia over Ukraine. So try 0:21:15.600 --> 0:21:17.920 and get ahead on issues like how do we make 0:21:17.960 --> 0:21:20.919 sure that the sanctions take real effect, how do we 0:21:21.200 --> 0:21:23.600 resolve at differences of that have to deal with energy, 0:21:24.040 --> 0:21:27.520 stick to the oil. Bloomberg's Mark Champion says President Biden 0:21:27.560 --> 0:21:30.200 will join back to back summits, first with NATO members 0:21:30.200 --> 0:21:33.000 in Brussels, then the Group of Seven and European Union. 0:21:33.119 --> 0:21:36.440 Meantime on Capitol Hill, Stay three of Judge Gatanji Brown 0:21:36.520 --> 0:21:40.320 Jackson Supreme Court hearing before the Senate Judiciary Committee yesterday 0:21:40.359 --> 0:21:43.280 marked her first chance to field questions from Congress and 0:21:43.320 --> 0:21:48.160 defend her record. My record demonstrates that I am not 0:21:48.440 --> 0:21:52.840 proceeding from any sort of preconceived notion about how a 0:21:52.920 --> 0:21:57.680 case comes out. Jackson pays questions from Republicans about her religion, 0:21:57.720 --> 0:22:02.480 critical race theory, child pornography and abortion. I'm not ruling 0:22:02.560 --> 0:22:07.760 consistent with any sort of ideology. I'm doing what impartial 0:22:08.240 --> 0:22:12.200 and fair judges do, which is to decide in every 0:22:12.240 --> 0:22:16.160 case based only on the facts and the law. Jackson 0:22:16.200 --> 0:22:19.159 returns to Capitol Hill for more questioning today. All right, 0:22:19.200 --> 0:22:22.880 turning to markets now, John, Global bonds remain under heavy pressure. 0:22:22.960 --> 0:22:26.080