WEBVTT - Bloomberg Daybreak: November 16, 2022 - Hour 1 (Radio) 0:00:01.840 --> 0:00:05.080 From the Bloomberg Interactive Berger Studios. Is is is Bloomberg Day 0:00:05.200 --> 0:00:08.879 Right for Wednesday, November sixty two coming up this hour. 0:00:09.200 --> 0:00:12.440 Panic eases as doubts surface of a whether Russia fired 0:00:12.480 --> 0:00:15.800 a rocket into Poland Donald Trump makes it official, announcing 0:00:15.800 --> 0:00:18.959 your run for president again. Wall Street holds tight for 0:00:19.040 --> 0:00:22.239 fresh data on retail sales and inflation in the UK 0:00:22.480 --> 0:00:25.079 hits a fresh forty one year high. It's going to 0:00:25.120 --> 0:00:27.880 cost more for word cab rode in New York Plus 0:00:28.080 --> 0:00:30.960 and left off a part of this one. NASA begins 0:00:31.040 --> 0:00:33.839 its quest to return to the Moon. I'm Michael Barr 0:00:34.080 --> 0:00:36.479 or ahead, I'm John Stashow and sports a road win 0:00:36.600 --> 0:00:38.400 for the Days, a road loss for the Nets, the 0:00:38.440 --> 0:00:41.040 Devils stay hot, and a free agent is staying with 0:00:41.120 --> 0:00:46.800 the Yankees. That's all Train ahead on Bloomberg day Break 0:00:47.159 --> 0:00:51.480 on Bloomberg e Living Free on New York, Bloomberg N one, Washington, 0:00:51.600 --> 0:00:55.200 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.280 --> 0:00:59.560 sixties and Francisco Syrius Exam one nineteen and around the 0:00:59.600 --> 0:01:02.880 world on Bloomberg Radio dot Com and via the Bloomberg 0:01:02.960 --> 0:01:09.600 Business Side Man. Good morning, I'm Nathan Hacker and I'm 0:01:09.640 --> 0:01:11.920 Karen Moscow, U West dot in Next Future is on 0:01:11.959 --> 0:01:13.840 the rise this morning. We're coming up to five o 0:01:13.959 --> 0:01:15.800 one on Wall Street, and we checked the markets every 0:01:15.800 --> 0:01:19.600 fifteen minutes throughout the trading day. On bloomberg SMP Future 0:01:19.640 --> 0:01:21.520 is up eight and a half points, Dow Future is 0:01:21.560 --> 0:01:24.520 of seventy two Nasdack Future is up twenty one. The 0:01:24.600 --> 0:01:27.759 decks in Germany's down seven tenths of a percent ten. 0:01:27.840 --> 0:01:30.759 Your treasury down eight thirty seconds. The yield three point 0:01:30.800 --> 0:01:33.160 seven nine percent. They yield on the two year four 0:01:33.200 --> 0:01:36.400 point three six percent. Niemex screwed oil is up three 0:01:36.400 --> 0:01:38.840 tens percent or twenty seven cents at eighty seven dollars, 0:01:38.920 --> 0:01:41.960 seventeen cents of barrel COMEX gold up half percent or 0:01:42.040 --> 0:01:45.120 nine dollars ten cents at seventeen eighty five ninety announced 0:01:45.280 --> 0:01:47.680 and the euro one point oh four one six against 0:01:47.720 --> 0:01:50.360 the dollar. Nathan, Thanks Karen. We begin this morning with 0:01:50.400 --> 0:01:52.760 the latest on the rocket strike that killed two people 0:01:52.800 --> 0:01:56.040 in Poland, just over the border from Ukraine. Some leaders 0:01:56.040 --> 0:01:59.639 initially suggested Russia was behind the attack, but President Biden 0:01:59.800 --> 0:02:04.000 is urging caution. There is plumbing information that contests that 0:02:04.160 --> 0:02:07.120 I don't want to say that until we completely investigate. 0:02:07.400 --> 0:02:10.680 But it's unlikely in the minds of the Tree decord 0:02:10.840 --> 0:02:13.760 that it was fired from Russian. But well, we'll see. 0:02:14.200 --> 0:02:17.480 President Biden spoke from the G twenty summit in Bali, Indonesia. 0:02:17.520 --> 0:02:20.960 Bloombergs Rosaland Matheson is there and has more on the situation. 0:02:21.400 --> 0:02:23.639 It seems that there are doubts growing that in fact 0:02:23.720 --> 0:02:27.200 it was even potentially a rocket that was fired by 0:02:27.280 --> 0:02:30.480 Russia from Russia. Um, and of course there are questions 0:02:30.520 --> 0:02:33.360 about whether it was in fact it's something that might 0:02:33.400 --> 0:02:37.320 have been deflected by Ukrainian anti missile defenses or indeed, 0:02:37.320 --> 0:02:39.800 if it was from Russia, perhaps it was a misfar 0:02:40.000 --> 0:02:43.880 and unintentional. Either way, the message very clearly coming from 0:02:44.000 --> 0:02:46.560 leaders here, be they from Europe, the US, or the 0:02:46.560 --> 0:02:50.480 Turkish president Urduwan a short time ago, is that they 0:02:50.520 --> 0:02:54.639 don't think this needs to sort of escalate tensions directly 0:02:54.720 --> 0:02:58.400 with Russia. Bloomberg's Rons Matheson reports President Biden is pledging 0:02:58.400 --> 0:03:01.520 his full support for Poland's investor stigation into the rocket strike. 0:03:02.040 --> 0:03:05.440 Well Nathan, NATO ambassadors are meeting in Brussels for emergency 0:03:05.520 --> 0:03:08.920 talks away their response, Former Defense Secretary Mark Asper is 0:03:08.960 --> 0:03:12.760 making the case for bolstering Ukraine's air defenses. Think about 0:03:12.760 --> 0:03:15.080 how far this Russian missile would have had to travel 0:03:15.120 --> 0:03:20.240 across Ukraine to pass into the Polish border. The renumerous 0:03:20.240 --> 0:03:23.079 officers to shoot this thing down, and so I think 0:03:23.080 --> 0:03:25.720 we it's a call to accelerate the provision of air 0:03:25.760 --> 0:03:29.040 defenses to Ukraine as well. And former Defense Secretary Mark 0:03:29.200 --> 0:03:32.560 Esper spoke with our Washington correspondent Joe Matthew late yesterday 0:03:32.600 --> 0:03:35.480 on Bloomberg sound On. Catch the show weekdays at five 0:03:35.480 --> 0:03:38.120 pm Eastern on Bloomberg Radio. All right, let's turn to 0:03:38.200 --> 0:03:40.960 politics back home in the US, Karen, because a familiar 0:03:41.040 --> 0:03:44.080 name is front and center this morning, Former President Donald 0:03:44.080 --> 0:03:47.680 Trump has officially entered the four race for the White House. 0:03:47.960 --> 0:03:51.600 Amy Morris has the latest from our Bloomberg newsroom in Washington. 0:03:51.880 --> 0:03:55.360 His campaign filed the paperwork just minutes before Donald Trump 0:03:55.360 --> 0:03:58.400 announced his candidacy and a third run for the White House. 0:03:58.480 --> 0:04:04.920 My fellow citizens, America's comeback starts right now. Trump made 0:04:04.960 --> 0:04:08.000 the announcement as many Republicans are moving away from him, 0:04:08.040 --> 0:04:10.520 many in the party asking him to wait until after 0:04:10.560 --> 0:04:13.280 the Senate race is settled in Georgia. As many Trump 0:04:13.360 --> 0:04:16.320 endorsed candidates in the mid terms were rejected by voters. 0:04:16.480 --> 0:04:20.160 Trump claimed America will decline unless he's reelected. This will 0:04:20.200 --> 0:04:25.159 not be my campaign, this will be our campaign altogether. 0:04:25.279 --> 0:04:27.760 While Trump may have wanted to freeze out other Republicans 0:04:27.800 --> 0:04:32.200 eyeing a presidential run, Republican strategists belief potential challengers are 0:04:32.240 --> 0:04:35.960 now emboldened. In Washington, I'm Amy Moore as Bloomberg Daybreak. 0:04:36.040 --> 0:04:38.240 All right, Amy, thank you. Let's turn to the economy now, 0:04:38.240 --> 0:04:40.479 where we get a key reading on retail sales. This 0:04:40.560 --> 0:04:43.520 morning forecast call for a gain of one percent in October, 0:04:43.600 --> 0:04:47.400 and Bloomberg Economics corresponded. Michael McKee has more the headline 0:04:47.480 --> 0:04:50.680 change in retail sales for October is likely to be misleading. 0:04:50.880 --> 0:04:54.359 Gasoline prices were up, adding to sales, and many in 0:04:54.440 --> 0:04:59.159 Florida were replacing hurricane damaged cars. It's core retail sales 0:04:59.320 --> 0:05:03.040 excluding gas, cars and building materials that will matter, and 0:05:03.080 --> 0:05:07.360 their economists are anticipating a slowdown. Gains at department stores, 0:05:07.400 --> 0:05:10.680 food stores, and general merchandise stores will be boosted by 0:05:10.760 --> 0:05:15.400 inflation rather than increased purchases. Red Book Research reported a 0:05:15.520 --> 0:05:19.240 soft weekly sales index, and the New York Fed reports 0:05:19.240 --> 0:05:22.760 Americans are turning from savings to credit cards to keep spending, 0:05:23.080 --> 0:05:27.280 which is likely unsustainable. Michael McKee, Bloomberg Daybreak. All right, Mike, 0:05:27.279 --> 0:05:29.520 thanks that retail sales report will be one of many. 0:05:29.600 --> 0:05:32.840 The FED watches. FED Vice Chair for Supervision Michael bar 0:05:32.960 --> 0:05:35.560 cautions the economy will surely take a hit as the 0:05:35.600 --> 0:05:39.360 central bank confronts high inflation. Inflation right now is far 0:05:39.400 --> 0:05:41.800 too high. I think that it's the case that we're 0:05:41.800 --> 0:05:45.200 going to see significant softening in the economy. FED Vice 0:05:45.240 --> 0:05:47.599 Chair for Supervision Michael Barr made those comments to the 0:05:47.640 --> 0:05:51.279 Senate Banking Committee in Washington. Meantime, across the Pond, Nathan, 0:05:51.279 --> 0:05:54.520 inflation is also in focus. Prices in the UK have 0:05:54.560 --> 0:05:56.440 now hit a forty one year high, and we get 0:05:56.440 --> 0:05:59.479 the details from Bloomberry's Lizzie Burden in London has been 0:05:59.560 --> 0:06:03.840 driven by gas and electricity prices. That is the biggest contributor, 0:06:04.000 --> 0:06:07.280 despite the government's support. But it's also food that's the 0:06:07.320 --> 0:06:11.600 second biggest contribution, also housing and household services. And our 0:06:11.680 --> 0:06:14.919 economists at Bloomberg Economics say the Bank of England isn't 0:06:14.960 --> 0:06:17.320 likely to take its foot off the break in terms 0:06:17.320 --> 0:06:21.800 of interest rate rises until services inflation drops back towards 0:06:21.880 --> 0:06:25.520 its long term average. Bloomberg Slizzy Burden reports the UK's 0:06:25.560 --> 0:06:29.040 consumer prices index for October rose at an annual rate 0:06:29.040 --> 0:06:31.800 of eleven point one per cent. Let's turn back to 0:06:31.839 --> 0:06:34.159 the U S and some corporate news this morning. Karen 0:06:34.240 --> 0:06:37.680 Elon Musk is in the spotlight again. The Washington Post 0:06:37.760 --> 0:06:40.599 is reporting the Musk told Twitter employees they must either 0:06:40.640 --> 0:06:43.960 commit to a new quote hardcore Twitter, or they should 0:06:44.000 --> 0:06:46.360 leave the company. The paper says employees have to click 0:06:46.360 --> 0:06:49.440 a link to confirm commitment to the new Twitter by tomorrow. 0:06:49.520 --> 0:06:52.960 If they don't, they'll receive three months of severance pay. 0:06:53.040 --> 0:06:55.080 And now the latest on the collapse of ft X. 0:06:55.160 --> 0:06:57.760 Nathan Bloomberg News has learned authorities in the US and 0:06:57.800 --> 0:07:01.359 the Bahamas are discussing possibly bring Sam Bankman free to 0:07:01.400 --> 0:07:05.200 the US for questioning. Sources say the conversations between officials 0:07:05.240 --> 0:07:08.400 and the two countries have intensified in recent days as 0:07:08.400 --> 0:07:11.720 they probe his role in the implosion of cryptocurrency firm 0:07:12.120 --> 0:07:15.880 f t X. Straight Ahead your latest local headlines plus 0:07:15.880 --> 0:07:23.480 a check of sports, and this is Bloomberg, all right, thanks, 0:07:23.520 --> 0:07:25.440 paren It's five oh seven on Wall Street. Word forty 0:07:25.480 --> 0:07:27.960 three degrees in Central Park looking for sunshine and low 0:07:28.040 --> 0:07:30.400 fifties for highs today. I gotta crash on the southbound 0:07:30.400 --> 0:07:32.200 New England thru Way in your exit six. Team will 0:07:32.200 --> 0:07:35.040 tell you more in traffic First, Michael Barr is here 0:07:35.040 --> 0:07:36.640 with what else is going on in New York and 0:07:36.680 --> 0:07:39.280 around the world the morning. Michael, Good morning Nathan. Once 0:07:39.360 --> 0:07:42.640 you hail a taxi, it's going to cost more. New 0:07:42.720 --> 0:07:45.280 York City cab writers will see a twenty three percent 0:07:45.400 --> 0:07:49.080 increase in metered fairs. It's the first hike since twenty 0:07:49.160 --> 0:07:53.160 twelve following a vote from the city's Taxi and Limousine Commission. 0:07:53.560 --> 0:07:57.360 The TLC also says passengers will also face an increase 0:07:57.640 --> 0:08:00.880 in rush hour and overnight search ard is and airport 0:08:00.920 --> 0:08:04.760 flat rates. The increases will also affect per mile and 0:08:04.840 --> 0:08:07.920 permanent rates for Uber and Lift, and are expected to 0:08:07.920 --> 0:08:11.520 go into effect before year end. The battle for Republican 0:08:11.600 --> 0:08:15.720 leadership in the next session continues, Bloomberg said. Baxter reports 0:08:15.960 --> 0:08:18.760 Senator Rick Scott has told fellow GOP senators he will 0:08:18.840 --> 0:08:22.400 challenge Senate Minority leader Mitch McConnell to be leader of 0:08:22.440 --> 0:08:25.480 the Party in the Chamber next year, and he immediately 0:08:25.600 --> 0:08:28.400 made the death limit his keystone issue for the moment, 0:08:28.760 --> 0:08:32.240 saying it can't be done until Democrats agree to federal 0:08:32.280 --> 0:08:35.480 spending cuts. McConnell says he has the votes to remain 0:08:35.640 --> 0:08:39.600 Senate GOP leader. Meanwhile, Kevin McCarthy is one preliminary support 0:08:39.600 --> 0:08:41.880 of the GOP two be House speaker. He will need 0:08:41.920 --> 0:08:43.480 to get a majority of the votes in the House 0:08:43.480 --> 0:08:46.640 to be elected in the new term. In San Francisco, 0:08:46.640 --> 0:08:50.480 I'm at Baxter Bloomberg Gay Break, Environmental activists and public 0:08:50.480 --> 0:08:54.120 officials rallied in front of New York Governor Kenthy Oakele's 0:08:54.120 --> 0:08:57.040 Manhattan office, calling for her to sign a bill that 0:08:57.080 --> 0:09:00.840 would institute a two year state man on some cryptocurrency 0:09:00.960 --> 0:09:05.120 mining facilities. The bill, approved by the State Senate in June, 0:09:05.200 --> 0:09:08.920 would trigger a two year moratorium on new permits for 0:09:09.120 --> 0:09:13.160 crypto plants that are powered by fossil fuels. If Hocal 0:09:13.320 --> 0:09:15.560 signs the measure, it would become one of the most 0:09:15.559 --> 0:09:19.800 restrictive laws in the US regulating the practice. The US 0:09:19.920 --> 0:09:23.040 is heading back to the Moon. NASA launched its first 0:09:23.160 --> 0:09:27.400 Artemus rocket overnight from Cape Canaveral, Florida, and lift off 0:09:27.400 --> 0:09:31.080 of Artemus one, we rise together back to the boon 0:09:31.520 --> 0:09:36.360 and beyond. The unmanned, multibillion dollar rocket mission will go 0:09:36.440 --> 0:09:39.600 around the Moon and back. If successful, it will eventually 0:09:39.640 --> 0:09:42.520 return astronauts to the Moon for the first time since 0:09:42.559 --> 0:09:46.520 Apolo ended. In n Global News twenty four hours a 0:09:46.600 --> 0:09:50.120 day on air and on Bloomberg Quicktake, powered by more 0:09:50.160 --> 0:09:52.719 than twenty seven hundred journalists and analysts more than a 0:09:52.760 --> 0:09:56.199 hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. 0:09:56.280 --> 0:10:03.200 Thank you, Michael, almost five cent on all Street time 0:10:03.240 --> 0:10:04.800 for the Bloomberg Sports out Day, brought to you by 0:10:04.800 --> 0:10:07.079 Try State out Here. Good morning, John Stshow, Good morning, 0:10:07.120 --> 0:10:09.400 Nathan Nixon. Nets are both out West. I win for 0:10:09.400 --> 0:10:12.040 the next as they began a challenging five game trip. 0:10:12.080 --> 0:10:15.560 They beat Utah one eighteen one eleven Jalen Brunson twenty 0:10:15.600 --> 0:10:18.400 five points with eight assists. The Knicks rebound from that 0:10:18.480 --> 0:10:21.440 horrific defensive outing and I lost this past Sunday. Speaking 0:10:21.440 --> 0:10:24.960 of horrific defense, most points the Nets have ever allowed, 0:10:25.040 --> 0:10:30.120 Sacramento shot the Kings won one fifty three to one one. 0:10:30.160 --> 0:10:32.920 The King's Terrence Davis, who came in averaging six points 0:10:32.920 --> 0:10:35.960 a game, scored thirty one make it ten straight wins 0:10:35.960 --> 0:10:38.080 for the Devil's two goals for jack Us and at 0:10:38.120 --> 0:10:40.360 five one win at Montreal St. John's now three and 0:10:41.360 --> 0:10:44.480 seventy four home win over Central Connecticut. Big double header 0:10:44.720 --> 0:10:48.840 in Indianapolis, Kansas beat Duke after Michigan State upset Kentucky 0:10:48.920 --> 0:10:51.880 double overtime. Also colgate to the second Street year one 0:10:52.320 --> 0:10:56.400 at Syracuse. A Yankee free agent slugger staying with the team. 0:10:56.520 --> 0:10:58.520 It's not Aaron Judy, don't know yet about him, but 0:10:58.559 --> 0:11:01.160 Anthony Rizzo, who thirty two home run to the new 0:11:01.200 --> 0:11:04.440 two year deal forty million guarantee the Mets Bucks show 0:11:04.480 --> 0:11:06.760 Alter named National Legue Manager of the Year. Was a 0:11:06.760 --> 0:11:09.160 close vote, but he's now one manager of the year 0:11:09.200 --> 0:11:12.520 four times with four different teams. Former Giants grade Eli 0:11:12.600 --> 0:11:16.280 Manning on Bloomberg Radio yesterday to discussed his private equity group. 0:11:16.280 --> 0:11:19.439 He also waited on the surprising success of his former team. 0:11:19.559 --> 0:11:21.960 David Jones is playing great, State Kwon is running off, 0:11:22.280 --> 0:11:25.280 running hard, defense is playing well so and the most 0:11:25.280 --> 0:11:28.680 important thing they're finding ways to win close games. And 0:11:28.720 --> 0:11:31.240 they're find ways to close games out. And that's something 0:11:31.240 --> 0:11:33.080 we have they will do for a while. And and 0:11:33.240 --> 0:11:35.160 what that does it also this prepares me for late 0:11:35.200 --> 0:11:37.240 in the year. You're gonna have these close games. Can 0:11:37.280 --> 0:11:39.840 you win them? They're they're they're kind of tried and tested, 0:11:39.880 --> 0:11:41.880 and I think it's gonna be a good run. John. 0:11:42.000 --> 0:11:43.679 For seven and two, they had been in first place 0:11:43.720 --> 0:11:46.160 in six divisions in their division. They're one game bo 0:11:46.640 --> 0:11:49.920 John Stashewer, Bloomberg Sports. Nathan, all right, John, thank you 0:11:50.000 --> 0:11:52.559 right now. SMP features are hired by thirteen points, down 0:11:52.600 --> 0:11:55.160 features up a hundred six, nansat features on the rise 0:11:55.600 --> 0:11:58.160 by forty points, and the Tanger Treasury is down down 0:11:58.320 --> 0:12:01.920 six thirty seconds. The yield three point seven nine percent. 0:12:02.400 --> 0:12:08.679 You're listening to Bloomberg Gate. Bloomberg Sports was brought to 0:12:08.720 --> 0:12:10.679 you by Audie. Don't let someone else drive off in 0:12:10.720 --> 0:12:13.280 the autie model you've always wanted. Visit your local price 0:12:13.320 --> 0:12:15.920 state autie dealer to get behind the wheel of yours today, 0:12:16.040 --> 0:12:22.560 or visit autie Offers dot com for more information, markets, 0:12:22.640 --> 0:12:25.720 headlines and breaking news twenty four hours a day at 0:12:25.760 --> 0:12:29.680 Bloomberg dot com, The Bloomberg Business Outland at Bloomberg Quick Take, 0:12:29.960 --> 0:12:39.319 this is a Bloomberg business lash, and I'm Karin Moscow. 0:12:39.440 --> 0:12:43.280 US stock index futures are rising as panic subsides that 0:12:43.360 --> 0:12:46.000 a rocket which struck inside the Polish border came from 0:12:46.080 --> 0:12:49.240 Russia and marked an escalation in the Ukrainian War. We 0:12:49.320 --> 0:12:51.800 checked the markets every fifteen minutes throughout the trading day 0:12:51.880 --> 0:12:54.439 on Bloomberg. Right now is in P futures of fifteen 0:12:54.480 --> 0:12:58.360 points down futures of d NASDACK futures of forty eight 0:12:58.440 --> 0:13:01.199 The decks in Germany's down half per cent. Can your 0:13:01.200 --> 0:13:04.200 treasury down six thirty seconds heal three point seven nine 0:13:04.240 --> 0:13:06.600 percent They yield on a two year four point three 0:13:06.640 --> 0:13:09.600 five percent. Nimex Screwed oil is up about a third 0:13:09.880 --> 0:13:11.880 per cent, or thirty two cents at eighty seven dollars, 0:13:11.920 --> 0:13:14.680 twenty four cents of barrel comic scold up six tents 0:13:14.679 --> 0:13:17.760 percent or ten dollars eighty cents at seventeen eighty seven 0:13:17.840 --> 0:13:20.680 sixty announced the euro one point oh four and three 0:13:20.720 --> 0:13:23.720 six against the dollar. British found one point one zero 0:13:24.080 --> 0:13:26.280 and again one thirty nine point to five. And that's 0:13:26.280 --> 0:13:29.040 a Bloomberg business flash. Now Here's Michael Barr with more 0:13:29.120 --> 0:13:31.480 on what's going on around the world. Michael, good morning, 0:13:31.559 --> 0:13:35.120 Good morning Karen. President Biden and key European leaders are 0:13:35.200 --> 0:13:38.640 urgent caution after a rocket struck a Polish village just 0:13:38.840 --> 0:13:42.320 over the border from Ukraine, killing two people. However, there 0:13:42.360 --> 0:13:46.160 are doubts whether Russia was to blame, and Biden told 0:13:46.200 --> 0:13:48.960 allies in Ballet that the rocket may have been from 0:13:49.080 --> 0:13:53.280 Ukraine's defense. Will have more on that straight ahead. Former 0:13:53.320 --> 0:13:56.439 President Trump announced last night that he is formally launching 0:13:56.480 --> 0:13:59.480 his four bid for the White House. The US is 0:13:59.480 --> 0:14:01.680 heading back to the Moon for the first time in 0:14:01.800 --> 0:14:06.760 five decades. NASA successfully launched the Artemis mission overnight from Florida. 0:14:07.080 --> 0:14:09.280 In the NBA. Of the next one, the Nets lost 0:14:09.360 --> 0:14:12.720 to the Kings one fifty three one one. In the NHL, 0:14:12.840 --> 0:14:16.120 the Devils won their tenth straight The Capital's lost. Global 0:14:16.160 --> 0:14:18.800 News twenty four hours a day on air and on 0:14:18.840 --> 0:14:22.560 Bloomberg Quickdake, powered by more than twenty seven hundred journalists 0:14:22.560 --> 0:14:25.200 analysts more than a hundred twenty countries. Michael Barr and 0:14:25.320 --> 0:14:28.120 this is Bloomberg. Nathan Okay, Michael, Thanks, It's five nineteen 0:14:28.120 --> 0:14:30.920 on Wall Street Live. From the Bloomberg Interactive Broker Studios. 0:14:30.920 --> 0:14:32.680 This is Bloomberg day Break. We want to get right 0:14:32.680 --> 0:14:36.520 over to Bloomberg News Executive editor for International Government, Rosalind mathieson. 0:14:36.640 --> 0:14:39.320 She's in Bali, Indonesia for the G twenty summit, but 0:14:39.360 --> 0:14:42.640 of course following the very latest developments on this rocket 0:14:42.720 --> 0:14:46.160 strike into Poland late yesterday, Roz, good morning. I want 0:14:46.160 --> 0:14:49.760 to get more on what Michael just mentioned that reportedly 0:14:49.760 --> 0:14:54.400 President Biden is telling allies that Ukrainian air defenses caused 0:14:54.480 --> 0:14:58.280 that explosion. What more are we hearing, Well, that's right. 0:14:58.320 --> 0:15:02.040 We actually had some indications of this earlier today. A 0:15:02.120 --> 0:15:05.520 number of hours after this rocket landed over the Ukrainian 0:15:05.520 --> 0:15:09.520 border into Poland, some some officials were starting to say, well, 0:15:09.560 --> 0:15:12.680 it's less clear cut than the idea that Russia deliberately 0:15:12.760 --> 0:15:16.760 fired this over the border and hit this Polidge, Polish village, 0:15:16.840 --> 0:15:20.320 and it was either probably an accident or it could 0:15:20.360 --> 0:15:23.320 have actually been that this was sort of the knock 0:15:23.360 --> 0:15:27.000 on effect of Ukrainian anti missile defenses. There were obviously 0:15:27.040 --> 0:15:31.680 mobilized heavily yesterday because Russia unleashed a massive barrage of 0:15:31.720 --> 0:15:35.200 missiles across the entire country again taking out some very 0:15:35.280 --> 0:15:38.760 key infrastructure, particularly on the energy side, and so this 0:15:38.840 --> 0:15:41.720 seems to have been one of those terrible accidents that 0:15:41.800 --> 0:15:45.920 happened in conjunction with that. Of course, it does sort 0:15:45.920 --> 0:15:49.840 of leave things in a slightly awkward position because there 0:15:49.840 --> 0:15:53.160 was initially talk that Poland might sort of start to 0:15:53.200 --> 0:15:55.560 do article for under NATO, which is a really big 0:15:55.680 --> 0:15:59.600 NATO conversation about potential steps and so on. There obviously 0:15:59.600 --> 0:16:02.400 will really have to walk some of that back now 0:16:02.840 --> 0:16:06.440 that the narrative is that in any case, and this 0:16:06.600 --> 0:16:09.040 is that really this would not have happened if Russia 0:16:09.080 --> 0:16:12.440 had not invaded Ukraine in the first place. Um. And 0:16:12.520 --> 0:16:15.200 this comes after, you know, when our nine months of 0:16:15.280 --> 0:16:19.120 borne out and relentless attacks UM from Russia on the 0:16:19.160 --> 0:16:21.760 missile side, and so at some point an accident like 0:16:21.840 --> 0:16:25.160 this possibly was was yet to happen. Um. And so 0:16:25.880 --> 0:16:29.040 either way, it doesn't really change things in terms of 0:16:29.160 --> 0:16:32.800 the relationship between NATO states and Ukraine. They'll probably see 0:16:32.800 --> 0:16:36.280 this if it's proven to be an unfortunate accident. Well, 0:16:36.320 --> 0:16:40.240 where could the response go from here? Rise you mentioned 0:16:40.280 --> 0:16:43.480 the possibility of article for discussions. I think a lot 0:16:43.520 --> 0:16:45.760 of our listeners are familiar with Article five of the 0:16:45.840 --> 0:16:48.840 NATO Charter. It's been discussed many times, but what would 0:16:48.880 --> 0:16:53.640 an article for invocation in town. Well, all that really 0:16:53.640 --> 0:16:56.960 does is start a big process of discussion within NATO states. 0:16:57.000 --> 0:16:59.280 It means that one NATO member wants to have a 0:16:59.320 --> 0:17:02.280 proper dial with the rest of the of the nature 0:17:02.400 --> 0:17:07.320 universe about an issue that pertains particularly to their national security. 0:17:07.359 --> 0:17:10.080 And what it probably would look like is Poland saying 0:17:10.119 --> 0:17:13.080 that being on the periphery of both Ukraine and Russia 0:17:13.760 --> 0:17:16.840 for months now, watching this conflict and feeling very uneasy 0:17:16.880 --> 0:17:18.920 about it, that they would like to have a greater 0:17:19.000 --> 0:17:22.800 discussion with NATO about support from them in terms of 0:17:22.840 --> 0:17:26.440 greater military assets, perhaps inside Poland, troops on the ground 0:17:26.440 --> 0:17:29.520 and so on, but particularly better support in the air, 0:17:30.080 --> 0:17:34.520 monitoring and defense um and surveillance of things that might 0:17:34.560 --> 0:17:37.880 be close by, rockets and so on, and the ability 0:17:37.920 --> 0:17:41.639 to better defend themselves from an air perspective. So they 0:17:41.640 --> 0:17:44.240 are either way, we would probably like to have that conversation, 0:17:44.440 --> 0:17:46.760 and whatever cause this incident, it certainly could be a 0:17:46.800 --> 0:17:50.120 springing board for them to do so. Um And it's 0:17:50.119 --> 0:17:52.439 not just Poland, really, it's other states that are very 0:17:52.520 --> 0:17:55.199 very close to either Ukraine or Russia. That's saying that 0:17:55.240 --> 0:17:58.160 they simply need better attention from NATO as a home 0:17:58.760 --> 0:18:00.760 as a whole when it comes to their air defense. 0:18:01.200 --> 0:18:05.240 Could this lead to changes in a NATO's pasture when 0:18:05.280 --> 0:18:08.639 it comes to support for Ukraine. We spoke with former 0:18:08.640 --> 0:18:12.480 Defense Secretary Mark Esper as the details of this incident 0:18:12.480 --> 0:18:15.119 were unfolding. He was making the case that this should 0:18:15.800 --> 0:18:19.600 lead NATO and its allies to bolster Ukraine's air defenses 0:18:19.800 --> 0:18:24.240 even further. Is that something that's being discussed. Well, you 0:18:24.280 --> 0:18:26.960 can say that NATO states have been very, very reluctant 0:18:27.080 --> 0:18:29.280 to do anything that they that they worry would bring 0:18:29.280 --> 0:18:33.840 them into direct confrontation, direct conflict with Russia throughout this 0:18:33.920 --> 0:18:36.679 war so far, and that's why they've been reluctant to 0:18:36.720 --> 0:18:39.840 send in certain kinds of very long range missile systems 0:18:40.080 --> 0:18:43.880 or very modern fighter jets. And while even though Ukraine 0:18:43.880 --> 0:18:47.720 has asked repeatedly for a possible air defense zone over 0:18:47.800 --> 0:18:51.160 at least part of its airspace, NATO has always said no, 0:18:51.320 --> 0:18:54.800 because that really means you've got NATO fighter deets policing 0:18:55.320 --> 0:18:59.359 ukraine air space and coming into direct confrontation potentially with 0:18:59.480 --> 0:19:02.480 Russian of jets. So you can imagine that despite this incident, 0:19:02.520 --> 0:19:05.280 there's going to be a high reluctance still to actually 0:19:05.440 --> 0:19:09.880 enact any kind of air zone over Ukraine might facilitate 0:19:09.960 --> 0:19:15.080 the faster delivery of certain kinds of anti missile systems 0:19:15.200 --> 0:19:18.520 from Europe or NATO as a whole yest. Definitely, that 0:19:18.560 --> 0:19:21.960 conversation has already been happening. NOATO is unlikely to get 0:19:21.960 --> 0:19:25.120 the kind of weapons they really really want, the ultramodern ones, 0:19:25.400 --> 0:19:27.119 but at least it could mean that they get faster 0:19:27.160 --> 0:19:29.720 delivery of some of the existing systems that they've got. 0:19:30.440 --> 0:19:32.400 Thanks for this, Ros will be checking back in with 0:19:32.440 --> 0:19:35.640 you as we learn more about this incident, as the 0:19:35.720 --> 0:19:38.560 war in Ukraine continues to unfold, and the G twenty 0:19:38.600 --> 0:19:42.639 summit in Bali. Bloomberg News Executive editor for International Government, 0:19:42.720 --> 0:19:46.840 Rosalind Mathison joining us live this morning from Indonesia. Looking 0:19:46.880 --> 0:19:49.920 ahead to the market open, SMP futures are higher by 0:19:49.920 --> 0:19:53.040 fourteen points, STAFLE futures up a hundred four, and NASA 0:19:53.160 --> 0:19:56.320 futures are higher by forty one p ten. Your treasury 0:19:56.359 --> 0:19:58.760 is now down five thirty seconds, the yield three point. 0:19:59.520 --> 0:20:02.639 You're done the two year four point three five. This 0:20:03.560 --> 0:20:10.000 is Bloomberg Bloomberg Daybreak, brought to you by Peapack Private 0:20:10.000 --> 0:20:13.120 Wealth Management. Peapack Private Wealth Management knows that the portfolio 0:20:13.280 --> 0:20:15.240 is more than a collection of assets. It's a path 0:20:15.280 --> 0:20:18.000 to your future. Visit Peapack Private dot com and begin 0:20:18.080 --> 0:20:25.000 your financial legacy today. Broadcasting live from the Bloomberg Interactive 0:20:25.040 --> 0:20:27.960 Broker's studio in New York. Bloomberg E looking for you 0:20:28.280 --> 0:20:32.440 to Washington, d C, Bloomberg to Boston, Bloomberg one O 0:20:32.640 --> 0:20:35.679 six one, to San Francisco, Bloomberg NAM sixteen to the 0:20:35.720 --> 0:20:38.840 country Sirius XM Toto one nine team, and around the 0:20:38.840 --> 0:20:42.679 globe the Bloomberg Business app in Bloomberg Radio dot com. 0:20:42.680 --> 0:20:51.480 This is Bloomberg Daybreak and it's five thirty on Wall Street. 0:20:51.480 --> 0:20:54.640 Good morning. I'm Karen Moscow and I'm Nathan Hager. Bloomberg 0:20:54.680 --> 0:20:57.480 Daybreak is brought to you by SEI. Asset managers don't 0:20:57.480 --> 0:20:59.600 get results that are off the charts when their solutions 0:20:59.600 --> 0:21:02.200 are off the shelf. Learned how SEI is operating platform 0:21:02.240 --> 0:21:05.399 can turn infrastructure into a competitive advantage at S E 0:21:05.560 --> 0:21:08.720 I C dot Com slash Tech and we are just 0:21:08.800 --> 0:21:11.520 about four hours away from the open of US trading. 0:21:11.600 --> 0:21:12.919 Let's get you have to date on the news you 0:21:12.960 --> 0:21:14.960 need to know at this hour. We begin with the 0:21:15.080 --> 0:21:18.400 rocket strike that killed two people in Poland, just over 0:21:18.400 --> 0:21:21.240 the border from Ukraine. World leaders are trying to determine 0:21:21.280 --> 0:21:25.400 if Russia attack NATO territory. However, President Biden says at 0:21:25.400 --> 0:21:28.560 the G twenty summit it's unlikely the missile was fired 0:21:28.600 --> 0:21:32.520 from Russia. Were aregreed to support Polands investigation into the 0:21:32.560 --> 0:21:37.680 explosion in rural Poland near the Ukrainian border, and I'm 0:21:37.680 --> 0:21:40.400 going to make sure we figure out exactly what happened. 0:21:40.760 --> 0:21:44.280 Sources say President Biden is telling lies the blast was 0:21:44.320 --> 0:21:47.880 caused by Ukraine air defense systems. Well. Speaking last night, Karen, 0:21:48.000 --> 0:21:53.600 Ukraine's President vladimir's Lensky called the strike an escalation hitting 0:21:53.640 --> 0:21:56.879 missiles on NATO territory. This is a Russian missile attack 0:21:56.920 --> 0:22:01.160 on collective security. This is a very significant Scallatia. Ukrainian 0:22:01.200 --> 0:22:03.480 President vladimir's Lensky also called for an end to the 0:22:03.480 --> 0:22:10.280 war in an address to G twenty leaders. There's still 0:22:10.280 --> 0:22:12.680 no confirmation on the exact source of the blast. NATO 0:22:12.720 --> 0:22:16.119 ambassadors are meeting in Brussels for emergency talks. Former Defense 0:22:16.119 --> 0:22:20.320 Secretary Mark Esper is preaching caution. My suspicion is that 0:22:20.400 --> 0:22:24.879 this was an accidental firing caused by either poor targeting 0:22:25.160 --> 0:22:27.439 or a malfunctioned by one of the Russian missiles. We 0:22:27.480 --> 0:22:30.320 need to go through a deliberate process, investigated out, and 0:22:30.359 --> 0:22:33.240