Speaker 1: Live from the Bloomberg Interactive Burger Studios. This is Bloomberg
Speaker 1: Daybreak for Tuesday, February seven. Coming up today, Wall Street
Speaker 1: races for key remarks from FED chair J. Powell. PP
Speaker 1: becomes the latest oil giant to post record profits. President
Speaker 1: Biden gets set to deliver his State of the Union tonight,
Speaker 1: and the US begins to recover purse from the suspected
Speaker 1: Chinese spy balloon. I'm a Mean Morris. A person of
Speaker 1: interest is in custody in connection with the shooting of
Speaker 1: an off duty n y p D officer, and the
Speaker 1: city is ending one of its workplace vaccination rules. I'm
Speaker 1: John stash Allen. Sports the Nets now without Tyrie Irving
Speaker 1: lost it home to the Clippers. Victories for the Rangers,
Speaker 1: Devils in Islanders. That's All's trading ahead on Bloomberg day
Speaker 1: Break on Bloomberg eleven three on New York, Bloomberg one,
Speaker 1: Washington d C, Bloomberg one oh six one, Boston, Bloomberg
Speaker 1: nine sixties and Francisco Sirius Exam one nine team, and
Speaker 1: around the world on Bloomberg Radio dot Com and via
Speaker 1: the Bloomberg Business add Good morning. I'm Nathan Hagar and
Speaker 1: I'm kmerin Moscow. Here are the stories we're following today.
Speaker 1: The direction of markets today could take cues from the Fed.
Speaker 1: Friday's big jobs report appears to have changed views on
Speaker 1: what the Central Bank will do this year, and today
Speaker 1: Chair J. Powell weighs in taking questions at the Economic
Speaker 1: Club of Washington. Bloomberg's Michael McKee will be there, and
Speaker 1: as a preview going into Friday's jobs report, the narrative
Speaker 1: was the Fed chair hadn't pushed back hard enough on
Speaker 1: markets pricing rate cuts Later this year, the payroll report
Speaker 1: may have done that for him. If job growth is
Speaker 1: strong and hours worked our rising, that's a lot more
Speaker 1: money in consumers pockets available to spend, and at least
Speaker 1: according to the feds Phillips curve model, that means inflation
Speaker 1: will be stickier. Paul gets another chance to make that
Speaker 1: point when he sits down with David Rubinstein, host of
Speaker 1: Bloomberg TV's Peer to Peer and David Rubinstein shows at
Speaker 1: the Washington Economic up expecting to say the Fed will
Speaker 1: stay the course, raising rates one or two more times
Speaker 1: and holding them throughout the year. Michael McKee, Bloomberg Daybreak
Speaker 1: All right, Mike, Thank you, and stay with us for
Speaker 1: complete coverage of Howell's comments. We will bring them to
Speaker 1: you live on Bloomberg Radio and television around twelve thirty
Speaker 1: pm Eastern time. Nathan Markets are holding steady ahead of
Speaker 1: those remarks from Powell. Lori Calvacina ahead of US. Equity
Speaker 1: strategy at RBC Capital Markets thinks the worst maybe behind US.
Speaker 1: I would be surprised at this point in time if
Speaker 1: we were to retest or really even break below those
Speaker 1: October lows, because I think the market is still got
Speaker 1: enough evidence that the soft landing thesis is intact for now.
Speaker 1: I mean we are, I think coming up on the
Speaker 1: point when we'll have most of the earnings downgrades, and
Speaker 1: traditionally that's a clearing event for markets. So I think
Speaker 1: there's was to the downside, but I think the bears
Speaker 1: have kind of overstayed their welcome and over articulated their case.
Speaker 1: Laurie Calvacina of RBC Capital Markets cc sn P five hundred,
Speaker 1: ending the year around on the earnings front. This morning,
Speaker 1: Karen's shares of BP are up three and a half percent.
Speaker 1: The UK companies joined other energy giants in posting a
Speaker 1: record profit for two now. BP CEO Bernard Looney tells
Speaker 1: us he's looking to reinvest that capital. We're actually announcing
Speaker 1: that we're going to increase investment in the energy transition
Speaker 1: by about eight billion dollars this decade, and at the
Speaker 1: same time, we're going to increase investment in today's energy system,
Speaker 1: which is predominantly all in gas, by about eight billion
Speaker 1: dollars as well. CEO Bernard Looney says VP is boosting
Speaker 1: its dividend and will buy back an extra two point
Speaker 1: seven billion dollars in shares. Shares a b MP perry
Speaker 1: bar up almost two percent. The French bank says it
Speaker 1: plans to buy back almost five and a half billion
Speaker 1: dollars in stock. The move comes after BMP posted a
Speaker 1: quarter that beat many Wall Street peers. All right, let's
Speaker 1: turn now to the major political event of the night,
Speaker 1: Karen President Biden's State of the Union address. The president's
Speaker 1: speech is expected to call for a new minimum tax
Speaker 1: on billionaires and a stock tax on stock buy backs.
Speaker 1: Wendy show Are, director of Brown University's Tobman Center for
Speaker 1: American Politics and Policy, says the economy will likely be
Speaker 1: a key theme tonight. You have to spend a lot
Speaker 1: of time talking about was working well in the economy
Speaker 1: and also counteracting a theme that's been ever present in
Speaker 1: mainstream and social media for more than six months eight months,
Speaker 1: that there will be recession. There is a recession, and
Speaker 1: the layoffs in the tech industry, which over expanded, are
Speaker 1: the big headlines. But are there layoffs in other major
Speaker 1: industries that affect more Americans. That's the thing that Biden
Speaker 1: has a racial about. Brown University political scientist Wendy Schiller
Speaker 1: and listen for live coverage of Tonight's State of the
Speaker 1: Union on a special edition of Bloomberg's Balance of Power.
Speaker 1: It starts tonight at eight thirty pm Wall Street Time
Speaker 1: on Bloomberg Radio and Television. Well ahead of Tonight's speech,
Speaker 1: Nathan how Speaker Kevin McCarthy has delivered one of his
Speaker 1: own with a focus on the debt ceiling. President Biden
Speaker 1: wants Congress to raise the debt limit yet again without
Speaker 1: a single sensible change to how government spends her hard
Speaker 1: earned money. None does that sound responsible to you? Speaker
Speaker 1: McCarthy says he wants to negotiate with the President on
Speaker 1: a responsible dead limit increase with no lines in the
Speaker 1: sand However, the speech he said, However, after this speech,
Speaker 1: he said he will draw the line on one issue.
Speaker 1: He's ruling out tax increases. Turning to geopolitics and national security,
Speaker 1: the White House says it's looking forward to getting whatever
Speaker 1: data are recovered from the Chinese balloon down in the Atlantic.
Speaker 1: Bloomberg said, Baxter has the story. It says recovery efforts
Speaker 1: are in full swing. Spokesman John Kirby says they aren't
Speaker 1: worried about any lost intelligence to China at this point,
Speaker 1: and says this is not their first dance with a balloon.
Speaker 1: Some dating back to the Trump administration, at least on
Speaker 1: three occasions uh survanance balloons by the PRC transited uh
Speaker 1: US air space. I will say that for me, the
Speaker 1: indication that we have that that was for brief periods
Speaker 1: of time. Kirby says, I hope to find out how
Speaker 1: high up the China leadership food chain decisions were made
Speaker 1: aid in San Francisco. I'm at Baxter Bloomberg Daybreak. Thanks.
Speaker 1: There's plenty of the U S officials can learn from
Speaker 1: what's left of the balloon. That's according to Mark Esper,
Speaker 1: served as Secretary of Defense under President Trump, is the
Speaker 1: instrumentation made of US parts or a lot of parts.
Speaker 1: It would tell us where they're sourcing their the engineering
Speaker 1: stuff for for the system. So we can learn a
Speaker 1: whole lot from from this package once we get it
Speaker 1: ashore and able to kind of pick through it in
Speaker 1: close detail. Former Defense Secretary Mark espersa as President Biden
Speaker 1: made the right call shooting it down over water, but
Speaker 1: he also says the President could have done it sooner
Speaker 1: over Alaska. Esper spoke with our Washington correspondent Joe Matthew
Speaker 1: on Bloomberg Sound On. Catch the show weekdays at five
Speaker 1: pm Eastern on Bloomberg Radio or anytime wherever you get
Speaker 1: your podcasts, and this is Bloomberg. It is thirty degrees
Speaker 1: in Central Park. We'll have sunshine with clouds building this afternoon,
Speaker 1: going up to near forty five degrees, some showers possible
Speaker 1: tonight as we head down to around forty. Time Now
Speaker 1: to take a look at some of the other stories
Speaker 1: making news in New York and around the world with
Speaker 1: Bloomberg's Amy Morris, Good morning, Amy, Good morning. Nathan. Rescue
Speaker 1: teams from overseas began deploying in Turkey after a pair
Speaker 1: of powerful earthquakes killed at least four thousand people in
Speaker 1: both Turkey and Syria. White House Press Secretary Koine Jean
Speaker 1: Pierre says the Administration has been working with their counterparts
Speaker 1: in Turkey to provide assistance. The President authorized an immediate
Speaker 1: US response. In addition to the US personnel currently on
Speaker 1: the ground, we are in the process of deploying additional
Speaker 1: teams to support Turkish search and rescue efforts. Turkey's President
Speaker 1: her Dewan says Turkey is facing the strongest disaster in
Speaker 1: a century and the country has declared seven days of mourning.
Speaker 1: A person of interest is in custody for the alleged
Speaker 1: shooting of an off duty NYPD officer Saturday night in Brooklyn.
Speaker 1: Channel four reports police tracked down a thirty eight year
Speaker 1: old man in Rockland County. That shooting happened when the
Speaker 1: twenty six year old NYPT officer from Deer Park arranged
Speaker 1: by a car off Facebook marketplace, but when he arrived,
Speaker 1: the person he was meeting open fire. The officer was
Speaker 1: shot in the head remains in grave condition. New York
Speaker 1: City is ending one of its last workplace vaccination mandates.
Speaker 1: Mayor Eric Adams says city workers will no longer be
Speaker 1: required to get vaccinated. Adam says the mandate, which led
Speaker 1: to the firing of hundreds of city workers who declined
Speaker 1: to get the shots, will end on Friday. Adam says
Speaker 1: more of city employees and more than eighty percent of
Speaker 1: city residents have gotten their initial vaccine series. The city
Speaker 1: ended its vaccine requirement for employees of private businesses in November. Two.
Speaker 1: Masks are now optional in most public places, including subways
Speaker 1: and buses. There's pushback against Mayor adams mental health plan.
Speaker 1: During yesterday's hearing, Councilman Charles Barron said he feared it
Speaker 1: would lead to more physical altercations between the police and
Speaker 1: the Mentally illness is a dangerous proposition that you're presenting him.
Speaker 1: If we don't do something about getting pair intervention. More
Speaker 1: than you, I'm fearful that there'll be more death. Yesterday's
Speaker 1: hearing focused on the plan implement it at a few
Speaker 1: months ago, ordering first responders to take anyone with serious
Speaker 1: mental issues off the streets into the hospital even if
Speaker 1: the patient refuses. A former staffer who worked for em
Speaker 1: battled New York Congressman George Santos has resigned. Mario Niccolodo
Speaker 1: tells ABC why he left his job as a Queen's
Speaker 1: District Office staff members. The allegations and the documents came
Speaker 1: out that it did not vote well for the congressman.
Speaker 1: Obviously I had to take a step away. That's just
Speaker 1: a decision again. I made for my family, for myself
Speaker 1: and for my uh you know, my community and my friends.
Speaker 1: Maryo Niccolodo says seventy residents in Santos District wanted to resign,
Speaker 1: which he says is unprecedented and sad. Global News powered
Speaker 1: by more than dred journalists and analysts and more than
Speaker 1: one hundred twenty countries. I'm Amy Morris. This is Bloomberg, Nathan.
Speaker 1: Thanks Amy, ex time for the Bloomberg Sports update brought
Speaker 1: to you. If I try stayed out of Good Morning,
Speaker 1: Johns Tesshower, you morning to Nathan. The Nets will miss
Speaker 1: Carrie Irvans talent on the court, they will not miss
Speaker 1: the drama he provided off of it. The day after
Speaker 1: has trade to Dallas Nets post to the l A Clippers.
Speaker 1: The new net spencer, Dinwittie and Dorry and Phinney Smith
Speaker 1: were not yet with the team. Cam Thomas played He
Speaker 1: scored forty four points last Saturday, and he scored forty
Speaker 1: seven last night, but the Clippers won one sixteen, So
Speaker 1: good trip to New York for them, with wins over
Speaker 1: the Knicks and Nets Knicks plate tonight in Orlando. Also
Speaker 1: from the NBA, the sale of the Phoenix Suns. The
Speaker 1: real estate Magnet mattish be A approved unanimously hockey back
Speaker 1: to the All Star Break Rangers and Flames. A couple
Speaker 1: of goals for Philip Hill and then two by maker's
Speaker 1: advantage at four four in overtime. Kelly Shoot sports Net
Speaker 1: in Canada the call Alexey Law front year game winner.
Speaker 1: Just as the Rangers were winning five four and overtime
Speaker 1: at the Garden, the Devils won five four in ot
Speaker 1: and Newark beating Vancouver. Jack used two more goals for
Speaker 1: New Jersey. He's got thirty five on the year Island.
Speaker 1: There's one to one at Philadelphia College Hoops, Duke was
Speaker 1: coming off the big one over North Carolina but got
Speaker 1: blown out. At Miami. Kansas beat Texas the battle of
Speaker 1: top ten teams. They finished the weather delayed golf at
Speaker 1: Pebble Beach. Forty two year old Justin Rose had the lead,
Speaker 1: lost it, then came back got his first tournament, winning
Speaker 1: four years. Tom Brady said he won't be a Fox
Speaker 1: Sports announcer next season. He'll start the ten year, three
Speaker 1: hundred and seventy five million dollar gig in twenty four.
Speaker 1: John stash are Bluebrook Sports Live from coast to coast,
Speaker 1: from New York to San Francisco, Boston to Washington, d C.
Speaker 1: Nationwide on Sirius xamp, the Bloomberg Business app, and Bloomberg
Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
Speaker 1: On a day when two major speeches are in focus
Speaker 1: for markets. FED Chair Jerome Powell speaks in Washington this afternoon,
Speaker 1: and then tonight President Biden delivers his second State of
Speaker 1: the Union address. The message he intends to send inflation
Speaker 1: is trending lower and jobs are on the rise. Top
Speaker 1: White House Economic advisor Brian Deese is hammering that message home,
Speaker 1: even as we've seen real progress and inflation coming down
Speaker 1: over the last six months. In particular, we have more
Speaker 1: work to do to bring prices down on lower costs
Speaker 1: and create some breathing room, as he says, for American families.
Speaker 1: National Economic Council director Brian Deese and this morning where
Speaker 1: you're joined by Terry Haynes, the founder of Pangia Policy. Terry,
Speaker 1: Good morning. It seems as though when you look at
Speaker 1: the polls, the president has some work to do as
Speaker 1: well on bringing that message to Americans that the economy
Speaker 1: is working. Why do you think it hasn't been delivered
Speaker 1: in the way that the president might like up to
Speaker 1: this point. Good morning, Good morning, Nathan. And yeah, it's remarkable,
Speaker 1: isn't it. Uh. You know, one of the ways that
Speaker 1: the President's been talking about this speech is the opportunity
Speaker 1: to make our case quote unquote, And usually making your
Speaker 1: case comes before enacting Paul season instead of afterwards. Uh. Yeah,
Speaker 1: they don't get a lot of credit and uh and
Speaker 1: then they get a and for the good things, they
Speaker 1: get a lot of credit for the angst And to
Speaker 1: some extent, I think that's the lot of presidents everywhere.
Speaker 1: But in part it's because Biden has not really been
Speaker 1: at the forefront of pushing individual policies or or or
Speaker 1: getting them put together through negotiations and uh, and really
Speaker 1: has been the forefront of kind of presenting them in
Speaker 1: a unified way as things that he's doing to make
Speaker 1: life better. Do you expect that to change as we
Speaker 1: had through the second half of the president's term at
Speaker 1: a time when you could presumably be focusing on a
Speaker 1: re election campaign. Well, I think he's already starting to
Speaker 1: do that. Yeah. You know, they clearly want to be
Speaker 1: able to to take credit for what they can take
Speaker 1: credit for, and you know that's as old as the presidency. Uh.
Speaker 1: But so they will start making their case and already
Speaker 1: have as you know, more work to be done. But
Speaker 1: we've done all these things so far. Even though what
Speaker 1: they've done is you know, really uh put the FED
Speaker 1: into place and have given the FED the responsibility for
Speaker 1: attacking inflation, uh and uh and putting together this inflation
Speaker 1: reduction actors really doesn't do much. Um. And you know,
Speaker 1: the signals from the speech so far really are that
Speaker 1: he's going to focus on proposing things that are red
Speaker 1: meat for the base, like stock buy backs and the
Speaker 1: like that won't get enacted, as opposed to things that
Speaker 1: might be inactable. So uh, you know, net net, you're
Speaker 1: not gonna see much more in the in terms of
Speaker 1: uh push from the Biden administration on things that will
Speaker 1: actually mitigate inflation and make the life better for average Americans.
Speaker 1: And ahead of the speech we heard from how Speaker
Speaker 1: Kevin McCarthy to putting the debt ceiling back in focus.
Speaker 1: How much is the ongoing and looming fight over the
Speaker 1: nation's debt limit overshadowing tonight's address. Well, ye know, there's
Speaker 1: a lot of things overshadowing tonight's address. The Chinese balloon
Speaker 1: for one, of course, and that because that brings up
Speaker 1: all kinds of issues and problems relating to the national
Speaker 1: security and national defense. Uh. You know, my view of
Speaker 1: this has been that where the debt ceiling resolution finally
Speaker 1: comes from in the summertime is probably from centrists, uh,
Speaker 1: to boil it down. You're looking much more at a
Speaker 1: kind of Senate centrist House centrist Joe Manchin ish kind
Speaker 1: of play, uh than you are by having Biden and
Speaker 1: McCarthy to actually resolve things. And I think that's ultimately
Speaker 1: where this goes. UH done nothing that either President Biden
Speaker 1: or Speaker McCarthy says this week UH is going to
Speaker 1: move the needle on debt ceiling because both of them
Speaker 1: think there's political advantage and stringing this thing out as
Speaker 1: long as possible. Frankly so we're gonna get some brinksmanship.
Speaker 1: That is finally in the summer time, I think in
Speaker 1: the royal markets a little bit. In our last minute here, Terry,
Speaker 1: given all the attention on the Chinese balloon this week,
Speaker 1: how much do you expect the President to take a
Speaker 1: tougher line on China in this address, given all the
Speaker 1: moves that he's made up to now in the economic
Speaker 1: front against China. I think what you'll hear from the
Speaker 1: President is kind of a recitation of all the things
Speaker 1: that have happened so far, both from a national security
Speaker 1: perspective and from an economic perspective, chips manufacturing, reshoring, and
Speaker 1: all those sorts of things. But you know, the administration,
Speaker 1: but more importantly, I think the defense establishment, UH have
Speaker 1: a lot of questions to answer what we've Uh listeners
Speaker 1: shouldn't miss that what is going on with the balloon
Speaker 1: now isn't so much a you know, Biden versus Trump
Speaker 1: what about is and but what it is has to
Speaker 1: do with whether the defense establishment ever identified these things
Speaker 1: back in the day and what they're doing about the now.
Speaker 1: This is Bloomberg Daybreak today, your morning brief on the
Speaker 1: stories making news from Wall Street to Washington and beyond.
Speaker 1: Look for us on your podcast feed at six am
Speaker 1: Eastern each morning, on Apple, Spotify, and anywhere else you
Speaker 1: get your podcasts. You can also listen live each morning
Speaker 1: starting at five am Wall Street Time on Bloomberg eleven
Speaker 1: three oh in New York, Bloomberg in Washington, Bloomberg one
Speaker 1: oh six one in Boston, and Bloomberg nine six in
Speaker 1: San Francisco. Our flagship New York station is also available
Speaker 1: on your Amazon Alexa devices. Just say Alexa play Bloomberg
Speaker 1: eleven Plus listen coast to coast on the Bloomberg Business app,
Speaker 1: Serius XM Channel one nine, the I Heart Radio app,
Speaker 1: and on Bloomberg dot com. I'm Nathan Hager and I'm
Speaker 1: Karen Moscow. Join us again tomorrow morning for all the
Speaker 1: news you need to start your day right here on
Speaker 1: Bloomberg Daybreak and be