WEBVTT - Bloomberg Daybreak: January 11, 2022 - Hour 1 (Radio) 0:00:02.680 --> 0:00:05.400 Live from the Bloomberg Interact at Brooker Studios. This is 0:00:05.400 --> 0:00:09.559 Bloomberg day Break for Tuesday, January eleven two. Coming up 0:00:09.560 --> 0:00:13.000 this hour, j Powell heads to Capitol Hill for confirmation 0:00:13.039 --> 0:00:15.640 hearings by Shair. Richard Clarence at leaves his post at 0:00:15.680 --> 0:00:18.920 the FED. Early Fiser announces plans for a hybrid vaccine 0:00:18.960 --> 0:00:21.720 to combat the omicron variant, and the Senate targets the 0:00:21.800 --> 0:00:25.880 North Stream to pipeline with sanctions. Details and questions emerge 0:00:25.880 --> 0:00:29.640 about Sunday's deadly bronze fire. Plus Chicago Public school students 0:00:29.720 --> 0:00:32.560 are set to return to classes tomorrow. I'm Michael Barr. 0:00:32.600 --> 0:00:36.440 More Ahead, I'm John Stas Sharon. Sports Georgia beat Alabama 0:00:36.520 --> 0:00:39.240 with the national championship at college football. The Knicks one, 0:00:39.320 --> 0:00:45.400 the Nets and Rangers both locks. That's all straight ahead 0:00:45.479 --> 0:00:49.200 on Bloomberg day Break on Bloomberg Element Treo, New York, 0:00:49.360 --> 0:00:54.080 Bloomberg Washington, d C, Bloomberg one O six one, Boston, 0:00:54.280 --> 0:00:58.800 Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:59.120 --> 0:01:01.840 and around the world Old on Bloomberg Radio dot Com 0:01:01.960 --> 0:01:08.680 and via The Bloomberg Business. Good morning, I'm Nathan Hagar 0:01:09.040 --> 0:01:12.160 and I'm Karen Moscow and US futures are higher this morning. 0:01:12.160 --> 0:01:13.920 We're coming up to five oh one on Wall Street, 0:01:13.920 --> 0:01:16.160 and we check the markets every fifteen minutes throughout the 0:01:16.160 --> 0:01:19.360 trading day. On Bloomberg S ANDP futures up twenty points 0:01:19.360 --> 0:01:22.920 this morning, Down futures up one eleven, and ASDAC futures 0:01:22.959 --> 0:01:25.680 up one hundred. The decks and Germany's up one point 0:01:25.760 --> 0:01:28.600 two percent, and the tenure treasury up four. Third day 0:01:28.680 --> 0:01:31.440 seconds yield one point seven four percent. They yield on 0:01:31.480 --> 0:01:34.360 the two year point eight to nine percent. Nathan, Karen, 0:01:34.400 --> 0:01:37.520 Let's begin this morning with today's confirmation hearing for j. 0:01:37.720 --> 0:01:41.720 Powell to serve another term as FED chair. Powell's testimony 0:01:41.760 --> 0:01:45.280 comes as markets remain volatile, gripped by rising inflation and 0:01:45.360 --> 0:01:48.080 the prospect of higher interest rates. We get more from 0:01:48.120 --> 0:01:52.280 Bloomberg Economics correspondent Michael McKee. Powell comes before Congress just 0:01:52.440 --> 0:01:54.680 when there's something to talk about. Fear the Fed is 0:01:54.720 --> 0:01:57.680 behind the curve on inflation sent stocks lower on Monday 0:01:57.680 --> 0:02:01.400 as market interest rates continued to rise. Representatives will connect 0:02:01.400 --> 0:02:03.680 the dots trying to get a commitment from Powell. The 0:02:03.720 --> 0:02:07.200 Fed will ratify the market moves by raising rates sooner 0:02:07.240 --> 0:02:09.840 and faster, and they will ask him about plans for 0:02:09.880 --> 0:02:12.880 shrinking the Fed's balance sheet. Members will also want to 0:02:12.880 --> 0:02:16.040 know more about his plans for non monetary policies at 0:02:16.040 --> 0:02:18.560 the FED. How involved will the Central Bank be in 0:02:18.720 --> 0:02:23.680 climate change initiatives, in regulating cryptocurrencies, in approving bank mergers? 0:02:23.880 --> 0:02:27.240 Michael McKee Bloomberg Daybreak, All right, Michael, thank you. Later 0:02:27.280 --> 0:02:30.240 this week, Lyle Brainerd heads the Capital Hill for her 0:02:30.400 --> 0:02:33.120 confirmation hearing to serve as vice chair of the FED. 0:02:33.240 --> 0:02:36.600 And now we're learning her predecessor, Richard Clarada, was resigning early. 0:02:36.880 --> 0:02:40.160 Bloomberg's Doug Krisner has the story. Clarida will step down 0:02:40.160 --> 0:02:42.560 from the Board of Governors two weeks before his term 0:02:42.600 --> 0:02:45.360 is due to expire. Last week, it was revealed he 0:02:45.400 --> 0:02:47.720 had sold at least a million dollars and shares of 0:02:47.720 --> 0:02:51.119 a U S stock fund in February. A few days later, 0:02:51.160 --> 0:02:53.720 he bought back a similar amount of the same fund 0:02:54.000 --> 0:02:56.840 on the eve of a major FEED announcement. Clarida has 0:02:56.880 --> 0:02:59.079 been a member of the Board and vice chair since 0:02:59.080 --> 0:03:03.160 September twenty teen. President Biden has nominated FED Governor Lyle 0:03:03.200 --> 0:03:07.440 Brainer to succeed Clarida. Her confirmation hearings begin on Thursday 0:03:07.639 --> 0:03:10.960 in New York. I'm Doug Chrisener Bloomberg Daybreak, Doug. Thanks. Meantime, 0:03:10.960 --> 0:03:13.200 the drumbeat for more interest rate hikes from the Fed 0:03:13.360 --> 0:03:15.960 is getting louder. For the latest there were joined live 0:03:16.040 --> 0:03:18.960 by Bloomberg's John Tucker Morney John, Good Morning, Nathan. The 0:03:19.080 --> 0:03:22.000 latest call for faster hikes comes from former New York 0:03:22.040 --> 0:03:25.520 Fed president and current Bloomberg opinion column that's Bill Dudley. 0:03:25.919 --> 0:03:28.520 He says the Central Bank needs to get a lot 0:03:28.560 --> 0:03:31.840 more hawkish. My best guess is you know that did 0:03:31.840 --> 0:03:33.440 they need to do at least four or five rate 0:03:33.520 --> 0:03:35.800 hikes this year? And it wouldn't strike me at all 0:03:35.880 --> 0:03:37.960 if we if we get into an every meeting kind 0:03:37.960 --> 0:03:40.760 of cycle at some point. Bill Dudley, making the comments 0:03:40.760 --> 0:03:44.480 in an interview on Bloomberg Surveillance Swaps. Markets are already 0:03:44.520 --> 0:03:47.120 into getting three or four interest rate hikes from the 0:03:47.120 --> 0:03:50.280 Central Bank this year. Goldman Sachs and JP Morgan Chase 0:03:50.320 --> 0:03:54.840 forecasting four options. Traders also flagging the prospect of eight 0:03:54.880 --> 0:03:59.400 quarter point rate most by early four so from earlier 0:03:59.480 --> 0:04:02.840 acspectations of around six and New York on John Tucker 0:04:03.000 --> 0:04:05.520 Bloomberg Daybreak. All right, John, thank you all. Just a 0:04:05.520 --> 0:04:07.560 couple of months ago, there is hope for a faster 0:04:07.640 --> 0:04:10.560 global recovery, but now that confidence may be fading, and 0:04:10.640 --> 0:04:13.520 Bloomberg's Rnada Young joins us live with the details. Good 0:04:13.520 --> 0:04:16.520 morning Renda, Good morning care. In a new World Economic 0:04:16.600 --> 0:04:19.919 Forum survey finds just one in six government and business 0:04:20.000 --> 0:04:23.800 leaders are optimistic on the global economic recovery, and just 0:04:24.000 --> 0:04:27.599 one intend thinks worldwide economic expansion will pick up speed. 0:04:27.920 --> 0:04:31.560 The Global Risks reports sites the pandemic, climate change, and 0:04:31.720 --> 0:04:35.360 rising social tensions among the biggest concerns. Short term fears 0:04:35.360 --> 0:04:38.920 include health and social damage from COVID nineteen, while economic 0:04:39.000 --> 0:04:42.160 and debt related issues are cited as medium term dangers. 0:04:42.600 --> 0:04:45.680 I'm renied A Young BLOOMMERK Daybreak, Right, Nita, thank you. 0:04:46.000 --> 0:04:48.960 Now we turn to the latest on the pandemic and vaccines. 0:04:49.200 --> 0:04:52.640 Fiser says it's developing a hybrid shot that combines its 0:04:52.640 --> 0:04:56.440 original vaccine with a formulation that shields against the omicron variant. 0:04:56.600 --> 0:05:00.040 According to CEO Albert Bola, Fiser will approach US regulators 0:05:00.080 --> 0:05:03.120 in March four clearance of the shot well. Nathan Maderna 0:05:03.200 --> 0:05:05.240 is also working on a shot end at the omicron 0:05:05.400 --> 0:05:07.800 very end. We caught up with CEO Stephen bon Cell. 0:05:08.160 --> 0:05:10.680 We are moving very aggressively, were even to be in 0:05:10.680 --> 0:05:16.320 a couple of weeks in the clinic Theron specific Vista 0:05:16.800 --> 0:05:19.520 and CEO Stefan bon Cell says Maderna has more than 0:05:19.560 --> 0:05:22.599 eighteen billion dollars in vaccine orders so far this year. 0:05:22.839 --> 0:05:25.039 In Hong Kong, hear and authorities are doubling down on 0:05:25.080 --> 0:05:28.400 their COVID zero policy. The city is reimposing some of 0:05:28.440 --> 0:05:32.440 its strictest limits since the pandemic began. Kindergartens and primary 0:05:32.480 --> 0:05:35.680 schools will close. Passengers from high risk countries will be 0:05:35.680 --> 0:05:39.719 banned from passing through Hong Kong's International airport. Meantime, we're 0:05:39.720 --> 0:05:42.359 seeing as somewhat of an exodus from Hong Kong. Nathan 0:05:42.400 --> 0:05:45.000 expatriots and locals are moving away from the city and 0:05:45.080 --> 0:05:48.600 increasing numbers. And Bloomberg Day Brik Asia anchor Brian Curtis 0:05:48.600 --> 0:05:51.720 has a story. The population decline is running at one 0:05:51.760 --> 0:05:55.160 point two percent since the end of It's the biggest 0:05:55.240 --> 0:05:58.880 drop in at least six decades. Policymakers have stepped up 0:05:58.880 --> 0:06:01.839 their crackdown on still society, and they've brushed aside an 0:06:01.920 --> 0:06:06.000 uproar over aligning with China's COVID zero strategy. The brain 0:06:06.040 --> 0:06:10.200 grain is seen in sectors as education, healthcare, and even finance, 0:06:10.560 --> 0:06:13.200 and critics say it will likely be felt by residents 0:06:13.200 --> 0:06:16.520 for years to come. Brian Curtis Bloomberg Daybreak A right. Brian, 0:06:16.600 --> 0:06:18.720 thanks Back here in the US, the nord stream to 0:06:18.880 --> 0:06:21.960 pipelines in focus on Capitol Hill, the Senate's considering plans 0:06:21.960 --> 0:06:24.520 to impose tough new sanctions on the pipeline that links 0:06:24.600 --> 0:06:27.760 Russia with Germany. Amy Morris has details from our Bloomberg 0:06:28.440 --> 0:06:32.119 newsroom in Washington. The Senate could vote for sanctions this week, 0:06:32.240 --> 0:06:35.839 but some Democrats argue sanctions now could make it more 0:06:35.920 --> 0:06:38.760 likely Russia will invade Ukraine because it would break the 0:06:38.839 --> 0:06:41.800 United States away from Germany, But the Senate vote is 0:06:41.839 --> 0:06:44.719 moving forward as part of a deal between Senate Majority 0:06:44.800 --> 0:06:48.040 Leader Chuck Schumer and Senator Ted Cruz of Texas. Crews 0:06:48.120 --> 0:06:51.560 introduced the sanctions bill while placing a hold on dozens 0:06:51.600 --> 0:06:55.200 of President Biden's foreign policy nominees. This could clear the 0:06:55.240 --> 0:06:58.200 way for those nominees to be confirmed in Washington. I 0:06:58.279 --> 0:07:01.080 maybe Morris Bloomberg daybreak right, MC, thank you all. Turning 0:07:01.120 --> 0:07:03.599 to the markets now. Trading has resumed at the London 0:07:03.600 --> 0:07:06.680 Medal Exchange after a five hour outage. The world's most 0:07:06.720 --> 0:07:10.480 important base metals exchange said it had connectivity issues caused 0:07:10.480 --> 0:07:13.280 by your power outage at a third party data center. 0:07:13.600 --> 0:07:15.960 And straight I had your latest local headlines plus a 0:07:16.040 --> 0:07:23.960 check of sports, and this is Bloomberg. Thanks Staring. It's 0:07:23.960 --> 0:07:26.400 five oh seven on Wall Street. Is called this morning 0:07:26.440 --> 0:07:29.280 eighteen degrees in Central Park. We already have an accident 0:07:29.280 --> 0:07:31.400 on the northbound New York State through Weights and York's 0:07:31.440 --> 0:07:34.400 at fifteen b while details on that for in traffic shortly. 0:07:34.480 --> 0:07:36.720 First Michael Barr with what else is going on in 0:07:36.720 --> 0:07:39.400 New York and around the world. Good morning, Michael, Good morning. Nathan. 0:07:39.520 --> 0:07:43.720 Sorrow fills the Bronx community after Sunday's fire and choking 0:07:43.760 --> 0:07:46.880 smoke and golf to high rise apartment complex. The death 0:07:46.880 --> 0:07:49.840 toll has been lowered to seventeen people killed, eight of 0:07:49.840 --> 0:07:53.200 them children. Prayers were held last nine for the victims 0:07:53.240 --> 0:07:57.160 as friends, neighbors, and strangers sought to console the grieving. 0:07:57.720 --> 0:08:01.120 Firefighters say the blaze was sparked by a faulty space heater, 0:08:01.200 --> 0:08:03.960 but smoke from that fire traveled throughout the building due 0:08:04.000 --> 0:08:07.000 to an open door in the hallway. Mayor Mayor Eric 0:08:07.040 --> 0:08:10.000 Adams says that the fire should convince others to make 0:08:10.040 --> 0:08:13.360 sure fire safety doors in the buildings are closed at 0:08:13.400 --> 0:08:17.720 all times. Close the door. Close the door that was 0:08:17.760 --> 0:08:20.800 embedded in my head as a child watching the commercials 0:08:20.840 --> 0:08:23.760 over and over again. We're going to double down on 0:08:23.920 --> 0:08:27.360 that message. Mayor Adams says. The flames damaged only a 0:08:27.400 --> 0:08:29.800 small part of the building, but smoked poured through the 0:08:29.840 --> 0:08:34.240 apartment's opened door and turned stairwells into death traps. New 0:08:34.320 --> 0:08:37.320 Jersey Governor Phil Murphy warned the residents of his state 0:08:37.840 --> 0:08:41.520 that they are seeing hospital admissions that rivals some of 0:08:41.559 --> 0:08:44.160 the pandemic's worst days. We're in the thick of this 0:08:44.280 --> 0:08:48.640 latest fight against the omicron tsunami washing across the state. 0:08:48.760 --> 0:08:51.960 Governor Murphy is concerned that it's not even the reported 0:08:52.000 --> 0:08:54.960 peak of the omicron variant of the coronavirus that health 0:08:55.000 --> 0:08:59.280 officials have been warning us about. Both and ventilator numbers 0:08:59.360 --> 0:09:03.600 are upstick efficantly and have roughly doubled since Christmas. These 0:09:03.640 --> 0:09:05.600 are the highest numbers with set since May of two 0:09:05.600 --> 0:09:09.240 thousand and twenty. Governor Murphy says many New Jersey towns 0:09:09.280 --> 0:09:14.200 and cities have reintroduced masked mandates. Chicago public schools are 0:09:14.240 --> 0:09:17.120 set to reopen for students tomorrow after the teachers union 0:09:17.280 --> 0:09:20.480 leadership voted to approve a deal with city officials to 0:09:20.520 --> 0:09:24.439 restart in person classes in the nation's third largest school district. 0:09:24.800 --> 0:09:28.400 Schools have been closed since January five, after Chicago teachers 0:09:28.480 --> 0:09:32.040 voted to shift back to remote learning, demanding more stringent 0:09:32.080 --> 0:09:35.559 protections amid a COVID nineteen surge. President Biden travels to 0:09:35.640 --> 0:09:38.679 Atlanta today to push voting rights. Biden, traveling with the 0:09:38.760 --> 0:09:41.680 Vice President, will visit have an easier Baptist church, the 0:09:41.720 --> 0:09:45.160 home pulpit of the late Reverend Martin Luther King. Global 0:09:45.160 --> 0:09:47.560 News twenty four hours a day on air and on 0:09:47.600 --> 0:09:50.760 Bloomberg Quick Take, powered by more than twenty seven under 0:09:50.800 --> 0:09:53.360 journalists and analysts more than a hundred twenty countries. I'm 0:09:53.400 --> 0:10:00.760 Michael bar This is Bloomberg Nick. Thank you. Michael five 0:10:00.800 --> 0:10:03.160 O nine on Wall Street. Time for the Bloomberg Sports Update. 0:10:03.200 --> 0:10:06.560 We've really got a new college football national champion. John 0:10:06.600 --> 0:10:09.800 stash hour. It's been a while, Nathan. The season ended 0:10:09.800 --> 0:10:13.680 in Indianapolis with Alabama against Georgia. They played last month 0:10:13.720 --> 0:10:17.080 for the SEC champions. Obama won that one by seventeen points, 0:10:17.080 --> 0:10:20.079 but Georgia won last night by fifteen. It was closer 0:10:20.120 --> 0:10:22.920 than Obama had leads in the third and fourth quarters, 0:10:22.960 --> 0:10:26.360 but Georgia, after scoring no touchdowns for the first forty 0:10:26.400 --> 0:10:28.440 three and a half minutes, scored four tens in the 0:10:28.480 --> 0:10:30.839 last sixteen and a half and then included a game 0:10:30.920 --> 0:10:33.600 ceiling score in the final minute. Takes an inside hand 0:10:33.640 --> 0:10:38.000 off to Robinson, throws to the near side, intercepted at 0:10:38.000 --> 0:10:41.360 the twenty one yard life and Kili Ringo preet back 0:10:41.440 --> 0:10:46.920 across the field across the thirty inside the twenty three scores. 0:10:49.440 --> 0:10:54.720 The Georgia Bulldogs lead by two scores with fifty four 0:10:55.000 --> 0:10:57.360 seconds to go. We han't had the radio call the 0:10:57.400 --> 0:11:00.280 final thirty three to eighteen. It's Georgia's first national Jamie 0:11:00.360 --> 0:11:03.680 Jipsons herschel Walker led them in nineteen eighty. They lost 0:11:03.679 --> 0:11:06.720 the title game Tobama four years ago in overtime. Crimson 0:11:06.760 --> 0:11:08.720 Tide denied what would have been a seventh title. In 0:11:08.720 --> 0:11:11.600 the last thirteen years. Nicks finally win some home games 0:11:11.640 --> 0:11:13.160 four in a row with the Garden pulled away from 0:11:13.200 --> 0:11:15.720 the Spurs second half and won one e ninety six 0:11:16.080 --> 0:11:18.640 thirty one points for our j Barrett nets in Portland 0:11:18.640 --> 0:11:20.760 without James Harden due to a knee injury. The Blazers 0:11:20.760 --> 0:11:24.240 without Damian Lillard Portland one one, fourteen to one. Oh 0:11:24.280 --> 0:11:26.400 A in Brooklyn's now dropped five of the last seven. 0:11:26.760 --> 0:11:28.760 Rangers beaten by the Kings in l A three to 0:11:28.840 --> 0:11:32.200 one that Dave getleman retirement made official. Giants now looking 0:11:32.200 --> 0:11:35.320 for a new general manager. Three coaches just got fired, 0:11:35.360 --> 0:11:38.000 Matt Nagge in Chicago, Mike Zimmer in Minnesota, and in 0:11:38.040 --> 0:11:41.240 a surprise, Brian flora Is in Miami. The Dolphins finished 0:11:41.240 --> 0:11:44.079 the season going eight and one. John stash Aware Bloomberg 0:11:44.160 --> 0:11:46.720 Sports Nathan Okay, John, thank you right now. S and 0:11:46.720 --> 0:11:49.320 P futures are higher by twenty two points. Now futures 0:11:49.360 --> 0:11:51.920 up a hundred twenty NASAC futures on the rise by 0:11:51.960 --> 0:11:54.400 a hundred eight points. The tenure treasury yield one point 0:11:54.480 --> 0:11:58.120 seven four percent. Ahead of j Palace confirmation hearing, we 0:11:58.200 --> 0:12:01.800 get a preview next from Bloomberg Shington Correspondent Joe Matthew. 0:12:02.000 --> 0:12:08.800 This is Bloomberg Bloomberg Day Break, brought to you by 0:12:08.840 --> 0:12:11.080 the Breakers. This winter, a warm welcome awaits you. The 0:12:11.080 --> 0:12:13.360 Breakers is committed to making your stay even better with 0:12:13.440 --> 0:12:17.520 exceptional experiences, gracious service, and unparalleled seaside glamour. To learn more, 0:12:17.600 --> 0:12:23.840 visit the Breakers dot Com Today, markets headlines and breaking 0:12:23.880 --> 0:12:26.760 news twenty four hours a day at Bloomberg dot com, 0:12:26.840 --> 0:12:30.400 The Bloomberg Business Outland at Bloomberg Quick Tape. This is 0:12:30.440 --> 0:12:40.040 a Bloomberg Business flash and I'm camerin Moscow. European stocks 0:12:40.040 --> 0:12:42.760 are bouncing back from their biggest decline in six weeks, 0:12:42.800 --> 0:12:45.480 as treasury yields steady a day before a key US 0:12:45.520 --> 0:12:49.240 inflation reading. US futures are heading edging higher, and we 0:12:49.320 --> 0:12:51.760 checked the markets every fifteen minutes throughout the trading day 0:12:51.880 --> 0:12:55.199 on Bloomberg s and P futures up twenty points this morning. 0:12:55.240 --> 0:12:58.080 Now futures have one hundred twelve and nowsdays futures at 0:12:58.120 --> 0:13:00.840 one hundred six. The Dack Center remedies at one point 0:13:00.920 --> 0:13:03.400 two percent ten year treasury at four thirty seconds. He 0:13:03.440 --> 0:13:06.000 had one point seven four percent yield on the two 0:13:06.080 --> 0:13:09.640 year point nine zero percent. Nimex screwed oils up one 0:13:09.640 --> 0:13:11.760 point six percent of a dollar twenty eight at seventy 0:13:11.960 --> 0:13:14.640 dollars fifty one cents a barrel. Comic schooled up four 0:13:14.679 --> 0:13:17.040 tenths per cent or seven dollars fifty cents at eighteen 0:13:17.040 --> 0:13:19.880 o six thirty an ounce. The Euro one point one 0:13:19.960 --> 0:13:22.319 three three six against the dollar, British found one point 0:13:22.400 --> 0:13:24.960 three six oh six and the yetis at one fifteen 0:13:25.040 --> 0:13:27.840 point three nine. And looking at Bitcoin this morning moving 0:13:27.920 --> 0:13:31.360 higher at forty one eight hundred dollars. That's a Bloomberg 0:13:31.440 --> 0:13:33.960 business flash. Now here's Michael Barr with more on what's 0:13:34.000 --> 0:13:36.839 going on around the world. Muncaele, Good morning, Good morning, Karen. 0:13:36.920 --> 0:13:39.880 Investigators are trying to determine why safety doors failed to 0:13:39.920 --> 0:13:42.040 close in the New York City high rise when the 0:13:42.120 --> 0:13:46.360 deadly fire broke out. Failure allow thick smoked billow through 0:13:46.400 --> 0:13:50.160 the tower and kills seventeen people. The Republican National Committee 0:13:50.240 --> 0:13:53.160 sued New York City over a law that will give 0:13:53.280 --> 0:13:56.120 non citizens the ranked vote in local elections, calling in 0:13:56.160 --> 0:14:00.400 a blatant attack on election integrity. Chicago's students will be 0:14:00.559 --> 0:14:03.400 back in the classroom tomorrow. The union and the city 0:14:03.760 --> 0:14:07.240 reached a deal about the COVID safety protocols that led 0:14:07.280 --> 0:14:11.360 to in person classes closing January five. Real estate air 0:14:11.440 --> 0:14:14.520 and convicted murderer Robert Durst has died of cardiac arrest 0:14:14.559 --> 0:14:17.680 at age seventy eight. Georgia eat Alabama thirty three eight 0:14:17.760 --> 0:14:21.280 teen to win college football's national championship. In the NBA, 0:14:21.360 --> 0:14:24.520 the Knicks and Celtics won. The Nets lost in the NHL, 0:14:24.560 --> 0:14:27.160 the Bruins beat the Capitol seven three, the Rangers lost. 0:14:27.520 --> 0:14:29.880 Global News twenty four hours a day on air and 0:14:30.040 --> 0:14:33.120 on Bloomberg Quick Take, powered by more than twenty seven 0:14:33.240 --> 0:14:36.240 under journalist and analysts in more than a hundred twenty countries. 0:14:36.280 --> 0:14:39.120 I'm Michael bar This is Bloomberg, Nathan. Thank you, Michael. 0:14:39.160 --> 0:14:41.720 It's five nineteen on Wall Street Live from the Bloomberg 0:14:41.760 --> 0:14:44.920 Interactive Broker Studios. This is Bloomberg Daybreak. We want to 0:14:44.920 --> 0:14:47.080 get more now on our top story this morning. As 0:14:47.160 --> 0:14:49.400 j Powell gets set to go before the Senate Banking 0:14:49.400 --> 0:14:53.160 Committee later this morning for reconfirmation as Chairman of the 0:14:53.200 --> 0:14:55.120 Federal Reserve. For that and all that's happening in the 0:14:55.200 --> 0:14:59.040 nation's capital, We're joined by Joe Matthew, Bloomberg Washing and correspondent, 0:14:59.120 --> 0:15:02.160 host of sound On on Bloomberg Radio. Joe, how many 0:15:02.200 --> 0:15:04.280 times do you suppose we're gonna hear the word inflation 0:15:04.960 --> 0:15:07.120 hearing today? You know, I always think if if there's 0:15:07.120 --> 0:15:09.520 a drinking game, I think it might be transitory. I'm 0:15:09.520 --> 0:15:12.880 just wondering how many members, especially Republican members, want to 0:15:13.000 --> 0:15:16.880 remind j. Powell of that term. And you know, look, 0:15:16.960 --> 0:15:19.280 only in Washington do we see this kind of drama 0:15:19.320 --> 0:15:21.600 surround an event where everyone seems to already know how 0:15:21.640 --> 0:15:23.720 it's gonna end. I mean, he's going to be confirmed. 0:15:23.800 --> 0:15:27.800 This is why President Biden renominated him. J. Powell enjoys 0:15:27.840 --> 0:15:31.760 bipartisan support. Doesn't mean he won't be getting some tough 0:15:31.840 --> 0:15:35.080 questions today, though. This is an opportunity for members to 0:15:35.240 --> 0:15:39.040 to get up front, get on TV, press the chair 0:15:39.280 --> 0:15:41.640 on whether the FED is doing enough, maybe suggest that 0:15:41.720 --> 0:15:44.640 it's not, and in question whether it started this tightening 0:15:44.720 --> 0:15:49.400 regime too late. Uh. Transitory yes, Inflation, yes, especially from 0:15:49.440 --> 0:15:52.120 Republican senators. To your point that we had to look 0:15:52.120 --> 0:15:55.720 at Powell's opening remarks and he will he'll deliver the 0:15:55.960 --> 0:15:58.760 magic words that everyone is looking to hear six words 0:15:59.200 --> 0:16:04.160 prevent inflation from becoming entrenched. This has been echoing since 0:16:04.240 --> 0:16:06.680 last night when it was released. That's the idea here, 0:16:06.760 --> 0:16:09.280 that's what they want to get from the FED chair. 0:16:09.960 --> 0:16:13.560 And while that will be the focus here inflation, Uh, 0:16:13.720 --> 0:16:15.640 he's likely to get a near full again from Senator 0:16:15.640 --> 0:16:18.440 Elizabeth Warren. It's gonna be focusing on regulation and we'll 0:16:18.440 --> 0:16:20.160 have a little more to say about that when Leo 0:16:20.240 --> 0:16:23.840 Brainard has her confirmation hearing later on this week. Uh. 0:16:24.000 --> 0:16:26.560 This comes down to the Fed's personal trading policy. After 0:16:26.720 --> 0:16:29.560 this news that Richard Clarada is leaving two weeks early 0:16:29.640 --> 0:16:32.440 because of his own million dollar trading disclosure, this is 0:16:32.480 --> 0:16:36.080 exactly what Warren was warning about, the same Elizabeth Warren 0:16:36.080 --> 0:16:39.880 who has publicly called J Powell Nathan a dangerous man. 0:16:40.000 --> 0:16:42.840 Dangerous man. That's exactly right. I guess that begs the 0:16:42.960 --> 0:16:47.320 question whether for markets, the more important hearing this week 0:16:47.640 --> 0:16:53.040 is J Powell's or Lyle Brainerd's. What's the feeling in Washington? Well, 0:16:53.080 --> 0:16:54.840 I think they're actually gonna be pretty similar, to be 0:16:54.920 --> 0:16:57.160 honest with you. And this was again, remember we have 0:16:57.240 --> 0:17:00.640 still have three open seats that have to be filled. 0:17:00.760 --> 0:17:03.320 These were supposed to be the two easy ones, Nathan, 0:17:03.360 --> 0:17:06.120 when when Joe Biden walked into the South Court auditorium 0:17:06.560 --> 0:17:09.040 over there in the White House complex with j Powell 0:17:09.160 --> 0:17:12.159 and Layle Brainers, this was the duo here, right, This 0:17:12.320 --> 0:17:14.840 was supposed to be the easy part, the part with 0:17:14.960 --> 0:17:19.080 bipartisan support, that which brought continuity to the markets, let 0:17:19.200 --> 0:17:23.720 lawmakers rest easy at night. Uh. The next three however, 0:17:23.840 --> 0:17:26.240 could be a different matter as we expect more progressive 0:17:26.280 --> 0:17:29.200 members with more diverse ideas, and those could be challenged 0:17:29.280 --> 0:17:31.520 by members of the Banking Committee. And the time we 0:17:31.640 --> 0:17:33.560 have left Joe. The other big story we're gonna be 0:17:33.640 --> 0:17:37.680 watching today as President Biden heading down to Atlanta this afternoon, 0:17:37.760 --> 0:17:42.200 in this new push for voting rights legislation after the 0:17:42.359 --> 0:17:46.000 setbacks for the president's economic agenda, is this likely to 0:17:46.119 --> 0:17:48.280 be the focus for the rest of the year for 0:17:48.359 --> 0:17:51.160 President Biden? The rest of the year, Yeah, was well 0:17:51.560 --> 0:17:54.600 straight through November. This is that we've got midterm elections 0:17:54.800 --> 0:17:58.680 on the brain. Here. There are questions, maybe maybe from 0:17:58.760 --> 0:18:02.000 some critics who suggest that this is a vanity project 0:18:02.600 --> 0:18:05.920 for Joe Biden and for Democratic leaders because it's not 0:18:06.080 --> 0:18:08.399 likely to pass. They they they don't have the votes 0:18:08.480 --> 0:18:11.120 to pass this voting rights legislation unless there's a carve 0:18:11.160 --> 0:18:13.719 out in the filibuster or Joe Mansion and Kerson Cinema, 0:18:14.200 --> 0:18:17.520 two familiar names, don't support doing that. But this is 0:18:17.640 --> 0:18:20.240 for the base. This is to stirrup passions. This is 0:18:20.320 --> 0:18:22.879 to motivate Democrats who might be getting a little bit 0:18:22.920 --> 0:18:25.840 complacent after watching Bill back Better fall apart the end 0:18:25.880 --> 0:18:28.600 of last year. To get them out there, get them 0:18:28.680 --> 0:18:31.359 thinking about what happened in twenty and get them voting. 0:18:31.480 --> 0:18:34.600 If this does not pass as expected, that in itself 0:18:34.680 --> 0:18:37.280 could be a motivator for Democrats in the midterm election year. 0:18:37.440 --> 0:18:40.120 Interesting in our last minute here to frame this as 0:18:40.280 --> 0:18:44.280 a base motivator when for a lot of the president's allies, 0:18:44.440 --> 0:18:46.880 the push for voting rights was something they had really 0:18:47.359 --> 0:18:50.560 been wanting to see from him from the get go. Yeah, 0:18:50.640 --> 0:18:53.720 that's true. And they're still talk about reforming the Electoral 0:18:53.920 --> 0:18:57.320 Count Act. That would actually prevent what, you know, what 0:18:57.480 --> 0:19:00.560 could have happened last January six, That would make uh 0:19:00.640 --> 0:19:03.840 the Vice president's job ceremonial essentially in the way that 0:19:03.960 --> 0:19:07.600 the votes are codified and certified. But again, the Democrats 0:19:07.680 --> 0:19:10.080 are concerned about that because they think it's a distraction 0:19:10.119 --> 0:19:12.560 from the real issues, and they're watering down what it 0:19:12.720 --> 0:19:14.640 is they really want to do to protect voting rights 0:19:14.960 --> 0:19:17.880 going forward. The President will speak passionately today, we're told 0:19:17.880 --> 0:19:20.240 from the White House as well about his support for 0:19:20.480 --> 0:19:22.680 changing that philipbus To rule, which would be a big 0:19:22.760 --> 0:19:25.920 deal in Washington, certainly would be Joe Matthew as always, 0:19:25.960 --> 0:19:27.800 thanks for keeping us up to speed on what's happening 0:19:27.880 --> 0:19:30.000 in the nation's capital. Of course, you'll be able to 0:19:30.080 --> 0:19:31.960 hear much more from Joe and his guests when you 0:19:32.400 --> 0:19:35.000 tune in for Bloomberg sound On coming up at five 0:19:35.119 --> 0:19:38.960 pm Wall Street Time right here on Bloomberg Radio. And 0:19:39.040 --> 0:19:41.640 that of course will come after j pals confirmation hearing 0:19:41.680 --> 0:19:44.240 before the Senate Banking Committee that begins at ten am 0:19:44.440 --> 0:19:47.480 Wall Street time. We will have live coverage of that 0:19:47.680 --> 0:19:51.040 hearing as well, right here on Bloomberg Radio. Ahead of 0:19:51.080 --> 0:19:53.640 all that, ahead of the market open, futures are moving higher. 0:19:53.680 --> 0:19:56.400 We have SMP futures up nineteen points right now, DAL 0:19:56.480 --> 0:19:59.199 futures up a hundred NASTAC futures on the rise by 0:19:59.240 --> 0:20:02.960 a hundred one points. And you're listening to Bloomberg Daybreak 0:20:03.000 --> 0:20:09.880 Good morning, Bloomberg eleven three oh weather sunny but called today. 0:20:09.960 --> 0:20:13.359 Might get to twenty degrees for an afternoon high tomorrow. 0:20:13.440 --> 0:20:16.480 Partly sunny behind your forty, mostly cloudy in your forty 0:20:16.520 --> 0:20:23.800 for Thursday seventeen degrees Right now, Broadcasting live from the 0:20:23.920 --> 0:20:27.840 Bloomberg Interactive Broker Studio in New York. Bloomberg E living 0:20:27.920 --> 0:20:31.560 free to Washington, d C, Bloomberg nine one to Boston, 0:20:31.680 --> 0:20:35.080 Bloomberg one O six one to San Francisco, Bloomberg NUN 0:20:35.160 --> 0:20:38.240 sixty to the country, Sirius XM to the one nineteen 0:20:38.400 --> 0:20:41.520 and around the globe, the Bloomberg Business app and Bloomberg 0:20:41.640 --> 0:20:51.120 Radio dot Com. This is Bloomberg Daybreak. It's by thirty 0:20:51.160 --> 0:20:53.560 on Wall Street. Good morning. I'm Nathan Hagar and I'm 0:20:53.640 --> 0:20:56.680 Kared Moscow, and we are just about four hours away 0:20:56.720 --> 0:20:58.600 from the open of US trading. Let's get you up 0:20:58.600 --> 0:21:00.399 to date on the news. You need to know what sour. 0:21:00.600 --> 0:21:03.320 US futures are higher this morning ahead of a confirmation 0:21:03.440 --> 0:21:06.680 hearing for J. Powell. Fed share plans to town Senators 0:21:06.720 --> 0:21:09.280 at the Central Bank will prevent higher inflation from a 0:21:09.359 --> 0:21:12.919 coming in. Trenched ad mills is a Washington policy Analysted 0:21:13.000 --> 0:21:16.640 Raymond James J. Powell is getting confirmed in his job 0:21:16.840 --> 0:21:19.920 is to give Republicans a reason to stick with him, 0:21:20.119 --> 0:21:23.720 to vote for his reconfirmation. If you are J Powell, 0:21:23.800 --> 0:21:27.040 you're talking about inflation. You're talking about what you're going 0:21:27.119 --> 0:21:29.879 to do next, and mills of Raymond James spoke of 0:21:29.920 --> 0:21:33.800 our Washington correspondent Joe Matthew on Bloomberg's Sound on Catch 0:21:33.880 --> 0:21:38.040 the Program weekdays at five pm Eastern on Bloomberg Radio. Well, Meantime, Karen, 0:21:38.040 --> 0:21:40.040 the drum beat for more interest rate hikes from the 0:21:40.080 --> 0:21:42.760 Fed is getting louder. Let's get the details live with 0:21:42.840 --> 0:21:46.120 Bloomberg's John Tucker, John and Nathan Schwappze in the Cave. 0:21:46.160 --> 0:21:49.119 The FEDS target will be eight basis points higher by 0:21:49.160 --> 0:21:51.760 the end of this year, assigned the markets baking in 0:21:51.920 --> 0:21:55.399