WEBVTT - Bloomberg Daybreak: April 25, 2022 - Hour 2 (Radio) 0:00:01.600 --> 0:00:05.200 My from the Bloomberg Interactive Burker Studios is Bloomberg day 0:00:05.200 --> 0:00:09.639 Break for Monday, April two. Coming up this hour, Secretary 0:00:09.640 --> 0:00:12.920 of State Lincoln and Defense Secretary Austin meet with Ukrainian 0:00:12.920 --> 0:00:17.360 President vladimir's Olinsky and Keen Emmanuel mccron wins another term 0:00:17.400 --> 0:00:21.400 as French president. Stocks in China plunge on COVID concerns, 0:00:21.640 --> 0:00:25.560 and Twitter grows more receptive towards Elon Musk's takeover offer. 0:00:25.720 --> 0:00:28.280 The New York City firefighter has not in the line 0:00:28.280 --> 0:00:30.520 of duty. Plus, the Supreme Court is set to hear 0:00:30.680 --> 0:00:33.960 arguments involving the separation of church and state. I'm Michael 0:00:33.960 --> 0:00:37.440 block More. I'm John Stage. Sports the Mets and Yankees 0:00:37.520 --> 0:00:41.400 both one NBA playoff wins from Milwaukee, Miami, Denver, and 0:00:41.479 --> 0:00:46.879 New Orleans. That's all s training ahead on Bloomberg Daybreak 0:00:47.240 --> 0:00:51.560 on Bloomberg eleven three, on New York, Bloomberg one, Washington, 0:00:51.680 --> 0:00:55.280 d C, Bloomberg one O six one, Boston, Bloomberg nine 0:00:55.320 --> 0:00:59.600 sixties and Francisco Syrius Exam one nine team and around 0:00:59.600 --> 0:01:02.440 the world on Bloomberg Radio dot Com and via The 0:01:02.440 --> 0:01:10.000 Bloomberg Business. Good Morning, I'm Nathan Hagart and I'm Karen Moscow, 0:01:10.120 --> 0:01:12.720 u S stock Index futures are lower this morning. We're 0:01:12.720 --> 0:01:14.440 coming up to six o one on Wall Street, and 0:01:14.480 --> 0:01:17.240 we checked the markets every fifteen minutes throughout the trading day. 0:01:17.360 --> 0:01:20.680 On Bloomberg, SNP Future is down thirty six points and 0:01:20.720 --> 0:01:23.480 down futures down two hundred seventy one ANNOUNCEDACK Future is 0:01:23.520 --> 0:01:26.840 down ninety two. Ten year treasury up eighteen thirty seconds, 0:01:27.040 --> 0:01:29.480 l two point eight two percent. Have they yield on 0:01:29.520 --> 0:01:32.920 the two year two point six zero percent, Nathan, Karen. 0:01:32.920 --> 0:01:35.039 We'll get back to markets in just a minute. But first, 0:01:35.080 --> 0:01:39.039 a significant diplomatic development in the war in Ukraine. Secretary 0:01:39.040 --> 0:01:42.080 of State Anthony Blincoln and Defense Secretary Lloyd Austin have 0:01:42.200 --> 0:01:45.479 met with President Vladimir z Lensky in Kiev. They announced 0:01:45.480 --> 0:01:48.520 a hundred sixty five million dollars in ammunition sales and 0:01:48.560 --> 0:01:51.800 said US diplomats will return to Ukraine as soon as 0:01:51.840 --> 0:01:54.600 this week. Secretary b Lincoln says Ukraine will prevail on 0:01:54.680 --> 0:01:58.440 the battlefield. Russia has already failed and Ukraine has already 0:01:58.480 --> 0:02:01.640 succeeded because the principal a that president who brought to 0:02:01.680 --> 0:02:05.880 this in his own words, was to fully subsume Ukraine 0:02:06.120 --> 0:02:09.079 back into Russia to take away its sovereignty and independence, 0:02:09.120 --> 0:02:11.560 and that has not happened, and fairly will not have. 0:02:11.919 --> 0:02:14.400 Secretary of State B. Lincoln was joined by Defense Secretary 0:02:14.480 --> 0:02:17.280 Lloyd Austin, who says the US wants to ensure Russia 0:02:17.400 --> 0:02:20.520 remains weakened. It has already lost a lot of military 0:02:20.600 --> 0:02:23.280 capability and a lot of a lot of its troops 0:02:23.360 --> 0:02:26.639 quite brightly, and we want to see them not have 0:02:26.720 --> 0:02:31.400 the capability to very quickly reproduce that capability. Secretaries Austin 0:02:31.440 --> 0:02:33.760 and b. Lincoln are the highest ranking US officials to 0:02:33.840 --> 0:02:37.919 visit Ukraine since Russia's invasion began. And Francis Morning Nathan 0:02:38.000 --> 0:02:41.840 Politics Front and Center. Emmanuel mccrown has won a second 0:02:42.000 --> 0:02:45.080 term as president and we get more from Bloomberg's Francis Laqua. 0:02:45.200 --> 0:02:48.840 In Paris, Emmanuel mccollon defeated far right leader mahind Theban 0:02:48.919 --> 0:02:52.079 on a pro business, pro European platform. He's the first 0:02:52.120 --> 0:02:54.680 sitting president to get a second term in twenty years. 0:02:55.120 --> 0:02:57.280 McCoy is on course to win about fifty eight percent 0:02:57.280 --> 0:03:01.440 of the vote compared with for been, a narrower victory 0:03:01.480 --> 0:03:05.280 than the previous contest in tween. The outcome is good 0:03:05.280 --> 0:03:08.240 news for investors who had predicted that a Loupen victory 0:03:08.280 --> 0:03:10.560 would deliver shock to markets on the scale of the 0:03:10.639 --> 0:03:13.120 UK's vote to leave the EU or the election of 0:03:13.120 --> 0:03:15.880 Donald Trump in the US. But the rise and support 0:03:15.880 --> 0:03:19.440 from behind Lupins and nationalist program also reflects a bitterly 0:03:19.440 --> 0:03:22.680 divided country. Speaking to supporters in front of the Eiffel 0:03:22.680 --> 0:03:26.400 Tower in Paris, Makon thanked French voters for trusting him 0:03:26.440 --> 0:03:29.840 after five years of hard times. He acknowledged many people 0:03:29.960 --> 0:03:32.640 voted for him only to block the far right and 0:03:32.720 --> 0:03:36.200 vowed to be president of all in Paris. I'm from 0:03:36.240 --> 0:03:40.080 s Laqua. Bloomberg Daybreak, Francine Thanks. In Asia, overnight stocks 0:03:40.080 --> 0:03:44.000 and China plunged almost five percent or worsening COVID outbreak 0:03:44.080 --> 0:03:46.600 is fueling fears of a bigger slowdown in the world's 0:03:46.640 --> 0:03:49.360 second largest economy. And we get more from Bloomberg Daybreak 0:03:49.400 --> 0:03:52.800 Asia anchor Bryan Curtis. Authorities have lockdown some parts of 0:03:52.840 --> 0:03:56.200 the capitol. Policymakers are racing to prevent a repeat of 0:03:56.240 --> 0:03:59.400 the Shanghai outbreak that has hobbled the city for weeks. 0:03:59.600 --> 0:04:02.880 Shangha reported record daily deaths over the weekend that the 0:04:02.920 --> 0:04:06.320 lockdowns could hurt growth. Oil and iron ore tumbled in 0:04:06.360 --> 0:04:10.040 Monday morning trading. Brian Curtis, Bloomberg Daybreak. All right, Brian, 0:04:10.080 --> 0:04:12.840 thank you all Back here in the US. We're focusing 0:04:12.840 --> 0:04:15.920 on Twitter. The social media company is growing more receptive 0:04:15.920 --> 0:04:18.960 to Elon musk forty three billion dollar takeover offer, and 0:04:19.080 --> 0:04:22.200 we get the latest live from Bloomberg's Rnita Young. Good morning, Rinda, 0:04:22.279 --> 0:04:25.360 Good morning, Karen. Bloomberg. Sources say Elon Musk met with 0:04:25.400 --> 0:04:29.160 Twitter executives on Sunday to discuss his offer. Twitter's board 0:04:29.200 --> 0:04:32.880 initially countered Musk's proposal with a poison pill, which would 0:04:32.880 --> 0:04:35.760 make it more expensive for any investor, including Musk, to 0:04:35.839 --> 0:04:40.359 acquire stock beyond a fiftent steak. Musk currently owns about 0:04:40.440 --> 0:04:43.160 nine percent of Twitter, but The Wall Street Journal reports 0:04:43.240 --> 0:04:45.839 Musk says he will not adjust his fifty four dollars 0:04:45.839 --> 0:04:49.080 and twenty cents a share offer for Twitter that's above 0:04:49.160 --> 0:04:52.920 Friday's closing price. The journal also reports a deal could 0:04:53.000 --> 0:04:56.640 be finalized as soon as this week. Live in New York. 0:04:56.680 --> 0:04:59.720 I'm Rnita Young, Bloomberg Daybreak. We need to thanks. Corporate 0:04:59.720 --> 0:05:01.800 earning are also in focus, with more than a third 0:05:01.839 --> 0:05:04.640 of the companies in the SMP five hundred reporting. This week, 0:05:04.839 --> 0:05:07.920 we get a preview from Bloomberg's Charlie Pellot, Apple, Amazon, 0:05:08.040 --> 0:05:12.719 and other technology giants report results, as do major industrial, healthcare, 0:05:12.800 --> 0:05:17.120 and consumer goods companies. Sarah Malick is chief investment officer 0:05:17.240 --> 0:05:19.880 at nouven. Who we're watching for for earnings are with 0:05:20.080 --> 0:05:24.279 the demand outlook, pricing, power, supply chain issues. So going forward, 0:05:24.640 --> 0:05:26.880 we're so bullish that earnings will continue to drive this 0:05:26.960 --> 0:05:30.440 market higher. This week we hear from Alphabet, Microsoft, Intel, 0:05:30.480 --> 0:05:34.120 and Texas Instruments among tech names. Also this week, three 0:05:34.279 --> 0:05:38.000 M Boeing, g E, G, m Ford, Caterpillar, Exonmobile, and 0:05:38.240 --> 0:05:42.200 Visa in New York. Charlie Pellet Bloomberg day break. All right, Charlie, 0:05:42.200 --> 0:05:45.240 thank you. Another impact on earnings employee pay. According to 0:05:45.279 --> 0:05:48.760 a survey by the National Association for Business Economics, wages 0:05:48.839 --> 0:05:52.120 increased at a record seventy of US companies in the 0:05:52.160 --> 0:05:54.840 first quarter. About half of the firm's survey are still 0:05:54.839 --> 0:05:58.359 reporting shortages of skilled labor. Turning to politics now, Karen 0:05:58.440 --> 0:06:01.880 a warning to fellow Democrats from Senator Elizabeth Warren. She 0:06:01.920 --> 0:06:04.000 says her party could be in real trouble in this 0:06:04.120 --> 0:06:07.400 year's elections if it doesn't do more about inflation. I 0:06:07.440 --> 0:06:09.920 think we're going to be in real trouble if we 0:06:10.120 --> 0:06:14.160 don't get up and deliver. Then I believe that Democrats 0:06:14.240 --> 0:06:17.960 are going to lose Democrats when when they do what 0:06:18.600 --> 0:06:22.239 when they work on behalf of working people. Senator Elizabeth 0:06:22.240 --> 0:06:25.839 Warren tells CNN Democrats must push through legislation to tamp 0:06:25.839 --> 0:06:29.360 down soaring prices. Oh they think. Christine mcguard is also 0:06:29.400 --> 0:06:32.560 speaking out about inflation. The ECB president says both the 0:06:32.680 --> 0:06:35.440 US and Europe are struggling to contain prices, but the 0:06:35.520 --> 0:06:38.680 challenges are different. Right now, half of Europe's inflation stems 0:06:38.720 --> 0:06:42.599 from surging energy costs. I believe that we share the 0:06:42.640 --> 0:06:48.080 same result, which is to tame inflation, which is to 0:06:48.200 --> 0:06:50.000 use all the tools that we have to do so, 0:06:50.360 --> 0:06:53.799 but we're facing the different beast. ECB President Christine Leguard 0:06:53.839 --> 0:06:56.320 tells CBS is face the nation that if she raised 0:06:56.400 --> 0:06:59.760 interest rates today, it would not bring down energy prices. 0:06:59.800 --> 0:07:02.200 You can catch Face the Nation every Sunday on Bloomberg 0:07:02.320 --> 0:07:05.680 Radio looking at energy prices right now Karen dim Ex 0:07:05.680 --> 0:07:08.600 screws down four point four percent or four dollars forty 0:07:09.240 --> 0:07:13.160 two cents at ninety cents in barrel. Futures are moving 0:07:13.200 --> 0:07:16.800 lower as well. Straight ahead your latest local headlines, plus 0:07:16.800 --> 0:07:23.640 a check of sports. This is Bloomberg. It sounds six 0:07:23.720 --> 0:07:25.720 oh seven on Wall Street. Were at forty seven degrees 0:07:25.760 --> 0:07:28.440 in Central Park. Still dealing with an accident investigation on 0:07:28.440 --> 0:07:31.400 the Garden State Parkway past X at one sixteen. Details 0:07:31.440 --> 0:07:33.960 coming up in traffic. First, Michael Bars here with more 0:07:33.960 --> 0:07:35.800 on what's going on in New York and around the world. 0:07:35.840 --> 0:07:38.440 Good morning, Michael, Good morning Nathan. Officials say a New 0:07:38.520 --> 0:07:41.760 York City firefighter and a civilia have died in a 0:07:41.800 --> 0:07:46.440 Brooklyn house fire where a ceiling partially collapsed. Acting Fire 0:07:46.480 --> 0:07:49.360 Department of New York Commissioner Laura kavanas at thirty one 0:07:49.440 --> 0:07:52.800 year old firefighter Timothy Klein was a six year veteran 0:07:52.840 --> 0:07:56.760 of the department. The incident commander identified deteriorating conditions and 0:07:56.840 --> 0:07:59.880 ordered all members out of the building. As they were 0:07:59.880 --> 0:08:02.239 doing so, there was a partial collapse of the ceiling. 0:08:03.360 --> 0:08:07.000 Four members were caught in that collapse. Commissioner kavana says 0:08:07.080 --> 0:08:10.880 eight other firefighters were also injured and another resident sustained 0:08:11.080 --> 0:08:15.000 minor injuries. Mayor Eric Adams more inclines death, saying the 0:08:15.000 --> 0:08:18.600 city had lost one of his bravest. Meanwhile, Mayor Adams 0:08:18.640 --> 0:08:21.960 also talked about crime in the city. We removed eighteen 0:08:22.040 --> 0:08:24.840 hundred guns off the streets about city since I've been 0:08:24.880 --> 0:08:27.640 elected eighteen hundred and so we're put in place the 0:08:27.640 --> 0:08:31.160 foundation of dealing with the immediate needs of violence. But 0:08:31.240 --> 0:08:35.040 we also stopped in the pipeline that caused his children 0:08:35.160 --> 0:08:38.920 to get involved in violence. Mayor Adams made his comments 0:08:38.960 --> 0:08:42.480 on CDs IS sixty Minutes, which aired last night. As 0:08:42.559 --> 0:08:45.600 COVID cases rise in New York City, The new Commissioner 0:08:45.600 --> 0:08:49.080 of Health in New York City, doctor Ashwin Vessan, is 0:08:49.120 --> 0:08:52.960 disappointed in learning that some city teachers got fake vaccination 0:08:53.040 --> 0:08:57.320 cards to keep their jobs. It really undermines trust. It 0:08:57.440 --> 0:09:00.800 undermines trust in one another, It undermined trust in public 0:09:00.800 --> 0:09:04.920 health and undermines trust in government. Dr Pissan also says 0:09:04.920 --> 0:09:08.000 he disagrees with the federal judges ruling to end the 0:09:08.120 --> 0:09:12.400 masked mandates for passengers on planes, trains, and buses. Jury 0:09:12.480 --> 0:09:15.200 selectioned against today and one of the highest profile US 0:09:15.280 --> 0:09:18.320 capital of riot trials. A former New York City cop 0:09:18.400 --> 0:09:23.120 is accused of assaulting Washington police on January six. Thomas 0:09:23.120 --> 0:09:26.600 Webster is charged with assaulting police at the Capitol. Webster 0:09:26.800 --> 0:09:29.800 is expected to argue self defense against an officer who 0:09:29.880 --> 0:09:33.240 was overstepping. The Supreme Court is set to hear arguments 0:09:33.320 --> 0:09:35.720 today in the case of a former high school football 0:09:35.760 --> 0:09:39.719 coach in Bremerton, Washington. Joseph Kennedy was fired by the 0:09:39.760 --> 0:09:42.840 public school district after refusing to stop praying on the 0:09:42.880 --> 0:09:46.640 field after games. Kennedy says his First Amendment rights were violated. 0:09:46.960 --> 0:09:49.600 Global News twenty four hours a day on air and 0:09:49.800 --> 0:09:53.439 on Bloomberg Quicktake, powered by more than hundred journalist and 0:09:53.440 --> 0:09:56.560 analyst more than a hundred twenty countries. Michael Barr, This 0:09:56.679 --> 0:10:03.880 is Bloomberg, Nathan. Thanks Michael six o nine on Wall 0:10:03.920 --> 0:10:06.560 Street time for the Bloomberg Sports Update with John Steinshauer. 0:10:07.280 --> 0:10:09.560 All right, Nathans, some early season struggles, and yet here 0:10:09.559 --> 0:10:11.600 are the Yankees right now, tied for the best record 0:10:11.600 --> 0:10:13.640 in America. Lead they used to have their most lopsided 0:10:13.679 --> 0:10:15.880 win of the year and their first series sweet Feet 0:10:15.960 --> 0:10:18.880 the Guardians at the Stadium tended to Anthony Rizzo got 0:10:18.960 --> 0:10:21.240 him going to run homer first inning and Yanks were 0:10:21.320 --> 0:10:23.400 up six nothing by the third. Plenty of run support 0:10:23.440 --> 0:10:25.839 for Garrett Cole got his first win. Get a nice 0:10:25.880 --> 0:10:30.120 elevation from the craft. Obviously nice. Uh, it's just a 0:10:30.200 --> 0:10:36.280 nice day overall. Really well played game. Um, just to 0:10:36.320 --> 0:10:40.439 get finish to the serious suite Fount hard Um and 0:10:41.840 --> 0:10:43.600 really just put a cherry on top and played to 0:10:43.640 --> 0:10:46.559 play a complete three games. Fans and the bleachers behave 0:10:46.640 --> 0:10:49.160 themselves after what happened Saturday. Yanks are off tonight. The 0:10:49.200 --> 0:10:52.120 lost Baltimore. Tomorrow Mets with a six to win at Arizona. 0:10:52.240 --> 0:10:54.240 Tyler McGill improved the three and oh the Mets have 0:10:54.360 --> 0:10:57.680 now played five series and they've won all five. They're 0:10:57.679 --> 0:10:59.839 in St. Louis to night battle of National League to 0:11:00.040 --> 0:11:03.640 Visian Leaders final week. How the NHL regular season, Carolina 0:11:03.760 --> 0:11:05.920 just beat the Islanders five to two, and that puts 0:11:05.960 --> 0:11:08.679 the Hurricanes four points ahead of the Rangers of the 0:11:08.679 --> 0:11:11.320 two teams fight to win the division. The King's Face 0:11:11.440 --> 0:11:14.200 the Rangers at the Garden tomorrow night. At Barkley's Tonight, 0:11:14.640 --> 0:11:17.960 Nets and Celtics gave four with Boston going for the sweep. 0:11:18.000 --> 0:11:20.720 There was some hope that facing elimination, the Nets would 0:11:20.720 --> 0:11:22.520 have Ben Simmons in the line up for the first 0:11:22.559 --> 0:11:25.800 time ever, but sighting his sore backs, Simmons will not 0:11:25.880 --> 0:11:28.360 play to stay alive, and Nets clearly need a better 0:11:28.360 --> 0:11:30.800 game from Kevin Rant. He has been decisively outplayed in 0:11:30.800 --> 0:11:33.520 the series by the Celtics star Jason Fatum. Milwaukee and 0:11:33.559 --> 0:11:35.880 Miami easy wins on the road for three one. Series 0:11:35.960 --> 0:11:38.000 leads in the East and the West. Denver State alive 0:11:38.320 --> 0:11:40.680 still fills Golden State three one. New Orleans beat Phoenix. 0:11:40.679 --> 0:11:44.120 That series tied at two. John Stash went Bloomberg Sports. 0:11:44.160 --> 0:11:46.360 All right, John, thank you. Right now, SMP futures are 0:11:46.400 --> 0:11:50.360 down thirty eight points down, futures down two nastack futures 0:11:50.360 --> 0:11:52.880 are lower by a hundred six points. The ten your 0:11:52.920 --> 0:11:55.880 treasury is up seventeen thirty seconds. The yield two point 0:11:55.920 --> 0:11:58.319 three percent. Yield on the two year right now two 0:11:58.360 --> 0:12:02.800 point six zero per cent. You're listening to Bloomberg Daybreak, 0:12:07.440 --> 0:12:09.880 Bloomberg eleven three oh Weather partly sunny today with highs 0:12:09.880 --> 0:12:12.520 in the low sixties, mid sixties tomorrow, with a chance 0:12:12.559 --> 0:12:14.280 for a few showers. We'll be back in the upper 0:12:14.360 --> 0:12:17.880 fifties by Wednesday. Attorney partly sunny right now forty seven 0:12:17.880 --> 0:12:24.360 degrees in Central Park markets, Headlines and breaking news twenty 0:12:24.360 --> 0:12:27.239 four hours a day at Bloomberg dot Com, The Bloomberg 0:12:27.240 --> 0:12:30.199 Business at and at Bloomberg Quick Tape. This is a 0:12:30.240 --> 0:12:40.199 Bloomberg Business lash and I'm Karen Moscow stocks and commodities 0:12:40.200 --> 0:12:43.600 are tumbling this morning as China's worsening COVID outbreak compounds 0:12:43.640 --> 0:12:47.280 fear sparked by faster federal reserve tightening. Bonds are rising. 0:12:47.280 --> 0:12:50.040 We checked the markets every fifteen minutes throughout the trading day. 0:12:50.120 --> 0:12:52.600 On Bloomberg Guess and P Future is down thirty seven 0:12:52.640 --> 0:12:55.280 points down Future is down to D eighty one. NAS 0:12:55.360 --> 0:12:57.719 Day Futures down ninety eight. The decks in Germany is 0:12:57.760 --> 0:13:00.439 down one point seven per cent. Ten year treasury of 0:13:00.520 --> 0:13:03.160 seventeen thirty seconds yield two point eight three percent. That 0:13:03.240 --> 0:13:06.400 yield on the two year two points zero percent. Nine 0:13:06.559 --> 0:13:09.199 X Screwed oil is down four point one percent on 0:13:09.280 --> 0:13:11.720 four dollars twenty three cents at ninety seven dollars eighty 0:13:11.760 --> 0:13:14.400 four cents of barrel Collmic school is down nine ten 0:13:14.520 --> 0:13:17.680 percent or seventeen dollars ten cents in nineteen seventeen twenty 0:13:17.679 --> 0:13:20.720 announced the euro one point oh seven three five against 0:13:20.720 --> 0:13:23.120 the dollar British pound one point two seven to four 0:13:23.240 --> 0:13:26.280 the end at one eight point one nine bitcoin this 0:13:26.320 --> 0:13:28.680 morning lower down too and a half percent at thirty 0:13:28.720 --> 0:13:32.760 eight thousand, five hundred twenty dollars. That's a Bloomberg business flash. 0:13:32.840 --> 0:13:35.000 Now here's Michael Barr with more on what's going on 0:13:35.040 --> 0:13:38.520 around the world. Michael Karen, thank you very much. Ukrainian 0:13:38.559 --> 0:13:42.000 officials say the U S Secretaries of State and Defense 0:13:42.040 --> 0:13:45.400 have met with President Volodamir z Lensky in Kiev. The 0:13:45.440 --> 0:13:48.400 two American officials said the US would be providing more 0:13:48.440 --> 0:13:53.240 than seven hundred million dollars in new military assistance for Ukraine. 0:13:53.679 --> 0:13:57.000 French President Emmanuel mccrawl has secured another term in office, 0:13:57.280 --> 0:14:01.040 handily defeating his far right opponent Marine n The Chrome 0:14:01.120 --> 0:14:03.679 won the second term with roughly fifty eight percent of 0:14:03.720 --> 0:14:07.600 the vote. The pen got about forty two percent. In MLB, 0:14:07.679 --> 0:14:10.960 the Yankees and Mets one, the Red Sox and Orioles lost. 0:14:10.960 --> 0:14:14.280 The Giants beat the Nationals twelve three, the A's one 0:14:14.559 --> 0:14:17.800 in the NBA playoffs, It is due or die tonight 0:14:18.160 --> 0:14:20.840 for the Nets. They have to beat the Celtics in 0:14:20.960 --> 0:14:25.080 game for their series to avoid being eliminated. The Warriors 0:14:25.160 --> 0:14:27.920 lost to the Nuggets. Golden State still has a three 0:14:27.960 --> 0:14:30.920 games one lead in that series. Global News twenty four 0:14:30.920 --> 0:14:34.360 hours a day on air and on Bloomberg Quicktake, powered 0:14:34.360 --> 0:14:37.160 by more than twenty seven hundred journalists and analysts more 0:14:37.160 --> 0:14:40.320 than a hundred twenty countries. Michael Barren, this is Bloomberg. 0:14:40.440 --> 0:14:43.400 Nathan Alright, Michael. Thanks at six nineteen on Wall Street 0:14:43.440 --> 0:14:47.160 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. 0:14:47.240 --> 0:14:49.480 Let's turn out to what's happening in Asia. We did 0:14:49.520 --> 0:14:52.840 see a major selloff in Chinese stocks overnight. It's having 0:14:52.840 --> 0:14:55.960 reverberations throughout the market this morning, with a surge of 0:14:56.040 --> 0:14:59.000 COVID cases in Beijing, raising figures of the kinds of 0:14:59.000 --> 0:15:02.680 lockdowns the sent Shanghai into a panic earlier this month. 0:15:02.880 --> 0:15:04.800 For more, we're joined from Hong Kong this morning by 0:15:04.800 --> 0:15:09.480 Bloomberg Chief Asia Economics correspondent and the Current and good morning. 0:15:09.760 --> 0:15:13.480 Just how bad is the COVID situation in Beijing from 0:15:13.560 --> 0:15:16.360 how we can see it right now? So the total 0:15:16.520 --> 0:15:21.240 caseload Nathan is very low. I think it's officially below thirty. 0:15:21.320 --> 0:15:24.120 But that's not the real story. The concern is that 0:15:24.200 --> 0:15:27.320 Beijing has a converse stealth spread on their way of 0:15:27.560 --> 0:15:30.600 MCRON and we all know how transmissive of that is. 0:15:30.960 --> 0:15:33.400 And a concern is that that Chola will be heading 0:15:33.440 --> 0:15:37.160 for two of its most important cities being under lockdown. 0:15:37.280 --> 0:15:41.480 Shanghai's lockdown continues to grind on there as contained because 0:15:41.560 --> 0:15:46.200 cases remains someone elevated and the authorities remain committed to 0:15:46.280 --> 0:15:50.080 COVID zero. That Beijing is not yet under lockdown. What's 0:15:50.080 --> 0:15:52.040 going on. What's going on is that one part of 0:15:52.160 --> 0:15:54.440 the cha Yang district, which is home to about three 0:15:54.440 --> 0:15:56.960 and a half million people, which is kind of an 0:15:56.960 --> 0:16:00.120 ex patty part of town, banking part of town, they 0:16:00.160 --> 0:16:03.200 are forcing through a lot of mandatory testing, and there 0:16:03.200 --> 0:16:06.760 are some communities, maybe fourteen communities that have been described 0:16:06.760 --> 0:16:09.640 as being sealed up by the authorities, but a citywide 0:16:09.680 --> 0:16:12.360 lockdown is not yet in place. To concern though, is 0:16:12.400 --> 0:16:16.120 if that the authorities deemed that the cases aren't under 0:16:16.120 --> 0:16:19.200 control at some point soon that of course you'll see 0:16:19.200 --> 0:16:21.480 a broader lockdown. And that's why we've seen reports of 0:16:22.000 --> 0:16:24.680 conic shopping in the supermarkets, and of course that big 0:16:24.680 --> 0:16:27.720 reaction on markets where you have the U won't sell 0:16:27.800 --> 0:16:30.200 off down to it's to be unsure, you won't felt 0:16:30.240 --> 0:16:33.400 it was weakest than seventeen months. Stock slumped and arn 0:16:33.520 --> 0:16:35.920 or came off. Because of course, another lockdown will be 0:16:36.040 --> 0:16:38.960 very bad for the economic story. Yeah, we certainly saw 0:16:39.000 --> 0:16:43.080 how bad it was for Shanghai when that lockdown was underway, 0:16:43.120 --> 0:16:45.600 But we have started to see some of those restrictions 0:16:45.640 --> 0:16:48.280 get lifted in Shanghai. Does that give us any indication 0:16:48.360 --> 0:16:51.800 of how things could play out in Beijing? It's a 0:16:51.840 --> 0:16:54.960 modest easy according to her our reporting from there. You know, 0:16:55.000 --> 0:16:57.200 they're lifting it in the piece meal basis where there 0:16:57.280 --> 0:17:00.440 is where they believe there isn't examples of community spread. 0:17:00.440 --> 0:17:03.640 But you know, we've also read reports of restrictions being 0:17:03.640 --> 0:17:06.679 easy and restrictions being reinforced at the same time. And 0:17:06.720 --> 0:17:09.200 by the way, over the weekend we reported the offenses 0:17:09.200 --> 0:17:12.000 were being installed around Shanghai to steal off buildings or 0:17:12.040 --> 0:17:15.479 positive cases had been found. So you know, Shanghai remains 0:17:15.520 --> 0:17:19.440 under quite restrictive circumstances, I think, and there is no 0:17:19.560 --> 0:17:21.359 sense of an end game to it yet. But what 0:17:21.400 --> 0:17:23.800 I would say, Nathan, is that for all of the 0:17:23.840 --> 0:17:27.479 economic hit, there are those who say, if China can 0:17:27.480 --> 0:17:30.640 get these infections under control, that they will then reopen 0:17:30.680 --> 0:17:34.120 pretty quickly and allow the factories and production and industry 0:17:34.160 --> 0:17:37.560 production to get motoring again pretty soon, and to allow 0:17:37.600 --> 0:17:39.920 of course consumers to get shopping again. So that would 0:17:39.960 --> 0:17:42.879 obviously negate the hit to the economy. But that's obviously 0:17:42.920 --> 0:17:45.399 the big question. When will trying to get these cases 0:17:45.440 --> 0:17:47.760 under control and when will they be confident enough to 0:17:47.760 --> 0:17:49.720 allow people to move around freely again. And that's a 0:17:49.760 --> 0:17:52.040 serious question right now. But you have to think, and 0:17:52.320 --> 0:17:56.360 there's some political considerations as well, with President shi jin 0:17:56.560 --> 0:18:00.320 Ping of trying to keep support among not just polit 0:18:00.359 --> 0:18:03.920 bureau but the Chinese people themselves, or has he consolidated 0:18:03.960 --> 0:18:06.360 power enough that he can weather this No matter how 0:18:06.400 --> 0:18:09.840 the COVID situation plays out, well, you'd have to say 0:18:09.840 --> 0:18:13.080 it's a big test because you know, Chinese facing its 0:18:13.119 --> 0:18:17.240 biggest pandemic outbreak now since all of this began way 0:18:17.240 --> 0:18:20.320 back in early So this is a big test of 0:18:20.359 --> 0:18:22.440 the whole COVID zero approach. And and if you take 0:18:22.480 --> 0:18:25.119 social media as as a metric as one gauge of 0:18:25.160 --> 0:18:27.720 popular sentiment in Shanghai. We know people have been naturally 0:18:27.840 --> 0:18:30.120 very upset by what's going on, So the authorities are 0:18:30.160 --> 0:18:32.719 definitely under pressure, there's no doubt about it. In if 0:18:32.800 --> 0:18:34.760 Beijing went into a big lockdown, then you would have 0:18:34.840 --> 0:18:36.760 to say it will surely be a test of the 0:18:36.800 --> 0:18:40.520 whole overall COVID zero strategy. And that's happening at a 0:18:40.560 --> 0:18:43.880 time when the economy is already under some pressure from 0:18:43.960 --> 0:18:47.000 external forces like the Russia invasion of Ukraine, which is 0:18:47.640 --> 0:18:51.679 royal commodity markets, and of course signs of slowing demand 0:18:51.680 --> 0:18:54.560 for Chinese exports. So there's definitely a lot of egle 0:18:54.640 --> 0:18:58.000 on pressure on the authorities. But that's said Nathan, there 0:18:58.000 --> 0:19:00.360 hasn't been any real signal of a rich East from 0:19:00.400 --> 0:19:02.760 COVID zero just yet. In fact, all the signaling has 0:19:02.760 --> 0:19:05.399 been quite adamant about it. Last week we had President 0:19:05.440 --> 0:19:08.359 Shooting Pinion Hainan. He spoke, he spoke virtually to the 0:19:08.400 --> 0:19:11.560 Boao Forum there and he made the point that you know, primacy, 0:19:11.640 --> 0:19:14.080 people's lives has to be put above all else. He's 0:19:14.160 --> 0:19:16.640 used previous forms to make the point that COVID zero 0:19:16.680 --> 0:19:19.800 has got to be maintained in order to protect the people. 0:19:20.160 --> 0:19:22.080 And of course the state press make the point that 0:19:22.480 --> 0:19:25.400 living with COVID as as as we'll say to broad 0:19:25.480 --> 0:19:27.639 westward as justus too, is not the model and not 0:19:27.760 --> 0:19:30.400 the way for for China. One picular weekness I would say, 0:19:30.440 --> 0:19:34.920 Nathan is, vaccination made for the elderly in China is 0:19:35.320 --> 0:19:38.040 off the pace, and that's been seen as a vulnerability. 0:19:38.280 --> 0:19:41.160 All right, Boomberg chief as your economics correspondent, and occurring 0:19:41.240 --> 0:19:44.560 with us this morning from Hong Kong. As those concerns 0:19:44.560 --> 0:19:49.320 about potential lockdowns in Beijing are reverberating through markets right now. 0:19:49.359 --> 0:19:52.480 We have SMP futures down thirty three points down, futures 0:19:52.480 --> 0:19:56.280 down two fifty four, Nasdaq futures lowered by eighty eight points. 0:19:56.320 --> 0:19:59.880 Just ahead, Biden's cabinet visits Kiev, and Twitter gives el 0:20:00.000 --> 0:20:02.359 and Musk's takeover all for a second look, the five 0:20:02.400 --> 0:20:05.119 things you need to notice start your day just ahead 0:20:07.400 --> 0:20:10.639 Bloomberg eleven three oh weather partly sunny, low sixties today, 0:20:10.680 --> 0:20:14.000 a few showers possible tomorrow behind your sixty five, upper 0:20:14.080 --> 0:20:17.520 fifties for Wednesday, turning partly sunny right now forty seven 0:20:17.520 --> 0:20:24.840 degrees in Central Park, broadcasting live from the Bloomberg Interactive 0:20:24.920 --> 0:20:28.800 Broker's studio in New York. Bloomberg E Living Free to Washington, 0:20:28.880 --> 0:20:32.919 d C. Bloomberg to Boston, Bloomberg one O six one 0:20:33.080 --> 0:20:36.520 to San Francisco, Bloomberg nine sixteen to the country, Sirius 0:20:36.680 --> 0:20:39.280 XM to the one nine and around the globe the 0:20:39.280 --> 0:20:43.199 Bloomberg Business at and Bloomberg Radio dot com. This is 0:20:43.200 --> 0:20:51.760 Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm 0:20:51.840 --> 0:20:54.920 Nathan Hagar and I'm Karen Moscow, and we're just about 0:20:54.960 --> 0:20:57.440 three hours away from the open of US training. It's 0:20:57.480 --> 0:20:59.520 time for the five things you need to notice start 0:20:59.560 --> 0:21:03.440 your day. Brought to you by Interactor Brokers. Interactor Brokers 0:21:03.480 --> 0:21:06.240 charges margin loan rates from zero point eight three percent 0:21:06.280 --> 0:21:09.200 to one point three percent rate subject to change. Learn 0:21:09.240 --> 0:21:12.600 more at ibk R dot com slash compare. The first 0:21:12.760 --> 0:21:15.159 U S Secretary of State Anthony B. Lincoln and Defense 0:21:15.160 --> 0:21:18.440 Secretary Lloyd Austin visited Ukraine yesterday to me with the 0:21:18.480 --> 0:21:22.440 country's President, vladimir's Lensky. It's the highest level US visit 0:21:22.480 --> 0:21:26.080 to Ukraine since Russia began its invasion Austin said he 0:21:26.119 --> 0:21:29.560 wants to see Russia continue to lose its military capability. 0:21:29.920 --> 0:21:33.359 You want to see Rosia weakened to the degree that 0:21:33.440 --> 0:21:36.600 it can't do the kinds of things that it has 0:21:36.640 --> 0:21:40.720 done in invading Ukraine. U S Secretary of Defense Lloyd 0:21:40.720 --> 0:21:43.240 Austin and Secretary of State Anthony Blinkin met with a 0:21:43.359 --> 0:21:46.480 Lensky in Kiev. The US promised over seven hundred million 0:21:46.520 --> 0:21:49.760 dollars in financial assistance for Ukraine and its allies, and 0:21:49.840 --> 0:21:53.440 Lincoln also announced diplomats will soon be returning to the country, 0:21:57.200 --> 0:21:59.720 and US Secretary of State Anthony B. Lincoln was speaking 0:21:59.760 --> 0:22:02.600 after his visit. Well meantime, in France, Kareny Manuel Macron 0:22:02.680 --> 0:22:06.440 security victory over Marine Lapin in the country's presidential election yesterday. 0:22:06.480 --> 0:22:09.280 Mccron is the first incumbent to win a second term 0:22:09.320 --> 0:22:12.240