WEBVTT - Bloomberg Daybreak: February 2, 2022 - Hour 2 (Radio) 0:00:01.920 --> 0:00:05.119 Live from the Bloomberg and directed Burger Studios. Is Bloomberg 0:00:05.240 --> 0:00:09.160 Daybreak for a Wednesday, February two two Coming up this hour, 0:00:09.520 --> 0:00:12.840 Nazac futures roundy on the heels of earnings from Alphabet. 0:00:12.960 --> 0:00:16.000 The Google Parents surges after announcing a twenty for one 0:00:16.160 --> 0:00:19.800 stock split. Fed signals also helps sentiment, as officials hint 0:00:19.800 --> 0:00:22.200 of a measured pace for rate hikes and oil trades 0:00:22.280 --> 0:00:24.880 near a seven year high ahead of today's OPEC meeting. 0:00:25.079 --> 0:00:27.560 Funeral services aren't today for the second n y p 0:00:27.640 --> 0:00:30.640 D officer killed in an ambush in Harlem. Plus Russian 0:00:30.640 --> 0:00:34.760 President Putin speaks out about Ukraine. I'm Michael barn Or Ahead. 0:00:34.960 --> 0:00:37.839 I'm John Stans shown sports Tom Brady officially retired a 0:00:37.920 --> 0:00:44.200 blockbuster NFL lawsuit, The Nets lost the Rangers one. That's 0:00:44.240 --> 0:00:48.560 All straight Ahead on Bloomberg Daybreak on Bloomberg Elementary on 0:00:48.680 --> 0:00:52.960 New York, Bloomberg one, Washington, d C, Bloomberg one of 0:00:53.120 --> 0:00:57.560 six one, Boston, Bloomberg nine sixties, San Francisco, Syrius x 0:00:57.760 --> 0:01:01.120 M one nineteen and around the world Long Bloomberg Radio 0:01:01.240 --> 0:01:07.800 dot Com and via The Bloomberg Business. Good Morning, I'm 0:01:07.880 --> 0:01:11.120 Nathan Hagar. And I'm Karen Moscow. US dot index Future 0:01:11.200 --> 0:01:13.200 is gaining this morning. We're coming up to six o 0:01:13.319 --> 0:01:15.119 one on Wall Street, and we checked the markets every 0:01:15.160 --> 0:01:18.480 fifteen minutes throughout the trading day. On Bloomberg SMP future 0:01:18.520 --> 0:01:21.600 is up thirty four points now futures have forty seven 0:01:21.600 --> 0:01:24.560 and NASDAC futures have two hundred nineteen or one and 0:01:24.640 --> 0:01:28.000 a half percent. Ten year Treasury down two thirties seconds. 0:01:28.000 --> 0:01:30.800 The yield one point seven nine percent, and they yield 0:01:30.880 --> 0:01:34.600 on the two year one point one seven percent. Comacs 0:01:34.640 --> 0:01:36.240 Gold is up a tenth of a percent, or two 0:01:36.280 --> 0:01:39.440 dollars ten cents at eighteen oh three sixty announced the 0:01:39.520 --> 0:01:42.320 euro one point one three one three against the dollar 0:01:42.800 --> 0:01:46.320 and bitcoin at thirty eight thousand, five d eighty five dollars. 0:01:46.360 --> 0:01:49.080 Nathan Well, Karen. The boost and NASTAC futures comes in 0:01:49.120 --> 0:01:52.920 part thanks to corporate earnings. Let's begin with Alphabet. Those 0:01:52.960 --> 0:01:55.880 shares up more than ten percent after the Google parent 0:01:55.960 --> 0:01:59.480 beat profitent sales estimates and announced the stock split at 0:01:59.560 --> 0:02:01.960 Ludload joins us with the details from our Bloomberg nine 0:02:02.000 --> 0:02:04.400 sixty news room in San Francisco. It was a beat 0:02:04.440 --> 0:02:06.800 on the top and bottom line for Alphabet, the parent 0:02:06.840 --> 0:02:09.160 company of Google, and all signs really points to a 0:02:09.240 --> 0:02:13.040 resilient advertising business. But really it was news of a 0:02:13.200 --> 0:02:17.480 stock split that drove activity and after hours for Alphabet. 0:02:17.680 --> 0:02:20.320 The company is doing a twenty for one stock split 0:02:20.520 --> 0:02:23.280 in the form of a one time special stock dividend, 0:02:23.520 --> 0:02:25.840 and as part of that split, Google's parents going to 0:02:25.880 --> 0:02:28.600 give one tenth of ascent for each share of the 0:02:28.600 --> 0:02:32.480 company's Class A, Class B and Class C stock. And 0:02:32.560 --> 0:02:35.840 Ruth Parrat, who is Alphabet CFO, told Bloomberg that the 0:02:35.919 --> 0:02:38.600 rationale here is to widen the net and make the 0:02:38.639 --> 0:02:42.760 stock more accessible to investors. Ed love Blow, Bloomberg News, 0:02:42.960 --> 0:02:45.240 San Francisco, all right, and thank you. Adding to the 0:02:45.240 --> 0:02:48.600 bullish sentiment this morning is a MD shares the chip 0:02:48.639 --> 0:02:50.840 maker up more than eleven percent. The company had a 0:02:50.880 --> 0:02:54.760 surprisingly strong sales for Chaos, suggesting it's making further gains 0:02:54.880 --> 0:02:57.640 un rival Intel and Shoes. Our General Motors are up 0:02:57.720 --> 0:03:00.359 less than one percent here and GM earning stuff estimates 0:03:00.360 --> 0:03:03.639 while its outlook for twenty two remained unchanged. We get 0:03:03.639 --> 0:03:07.040 more from Bloomberg's Charlie Pallace. GM is seeing signs of 0:03:07.080 --> 0:03:11.040 an easing in the semiconductor shortage that curbed vehicle output 0:03:11.280 --> 0:03:14.200 and dent at its market share last year, but it's 0:03:14.280 --> 0:03:19.000 cautioning sales and profit for twenty two. Maybe little changed. 0:03:19.440 --> 0:03:21.959 GM was hit among the hardest in the fourth quarter, 0:03:22.160 --> 0:03:25.440 when a forty three percent drop in domestic sales forced 0:03:25.440 --> 0:03:28.960 the company to relinquish its crown as top us automaker 0:03:29.160 --> 0:03:33.680 for the first time since one in New York. Charlie 0:03:33.680 --> 0:03:36.360 Pellets Bloomberg debrit All right, Charlie, thank you. We'll have 0:03:36.400 --> 0:03:39.240 more on GM later this morning on Bloomberg Surveillance. Will 0:03:39.240 --> 0:03:42.320 speak live with CEO Mary Barra. That's coming up at 0:03:42.360 --> 0:03:45.000 nine am Wall Street time on both Bloomberg Radio and 0:03:45.080 --> 0:03:47.960 television and Nathan. Earnings continue to roll in today, with 0:03:48.080 --> 0:03:51.400 nearly three dozen companies reporting. Heading the list, Facebook owner 0:03:51.440 --> 0:03:54.360 Meta Platforms. We get a preview from Bloomberg's Town Busby 0:03:54.560 --> 0:03:57.440 and its first earnings report under its new corporate name, 0:03:57.520 --> 0:04:01.120 Facebook's owner Metal Platforms. It's expected to report a burst 0:04:01.200 --> 0:04:04.880 in digital advertising revenue last quarter and solid holiday sales 0:04:04.920 --> 0:04:08.640 of its Oculus VR headset. Bloomberg analysts forecast total revenue 0:04:08.640 --> 0:04:11.640 of thirty three point four three billion dollars, a nine 0:04:11.880 --> 0:04:14.040 percent jump from a year ago, with nearly all of 0:04:14.040 --> 0:04:16.680 that from advertising. Look for earnings per share of three 0:04:16.680 --> 0:04:19.640 dollars nine cents, and on the earnings call, expect the 0:04:19.640 --> 0:04:22.160 company to be pressed to better explain the metaverse, the 0:04:22.240 --> 0:04:25.719 virtual reality platform it's basing its future on. Tom busby 0:04:25.880 --> 0:04:29.080 Bloomberg Daybreak. Okay, Tom, thank you. Turning from earnings now. 0:04:29.160 --> 0:04:31.520 Markets are also getting a boost from the Fed. Central 0:04:31.520 --> 0:04:33.800 Bank officials are laying out a measured approach to the 0:04:33.800 --> 0:04:35.680 path for rate hikes this year, and we get that 0:04:35.760 --> 0:04:38.520 storyline from Bloomberg's Need a Young Good Morning Grenita, Good 0:04:38.520 --> 0:04:41.560 morning Nathan. The measured calls from Fed leaders are different 0:04:41.600 --> 0:04:44.719 from Wall Street forecasts, which include as many as seven 0:04:44.839 --> 0:04:48.000 rate hikes this year. Some even predict a fifty basis 0:04:48.040 --> 0:04:50.760 point height next month. So far, none of the Fed 0:04:50.800 --> 0:04:53.440 officials speaking this week have backed the idea of such 0:04:53.480 --> 0:04:56.440 an increase in March. The most hawkish of them all St. 0:04:56.480 --> 0:05:00.760 Louis Fed President James Bullard says five hikes quote not 0:05:00.920 --> 0:05:04.320 too bad a bit. Kansas City Fed Chief Esther George 0:05:04.320 --> 0:05:07.479 is another hawk and she says ideally the Fed prefers 0:05:07.520 --> 0:05:10.520 to go gradually. Live in New York I'm goned a 0:05:10.520 --> 0:05:13.279 young Bloomberg Daybreak. We need to thank you. Fed officials 0:05:13.360 --> 0:05:16.039 will be paying close attention to this week's economic data. 0:05:16.080 --> 0:05:18.200 On this morning, we get the first of three reports 0:05:18.200 --> 0:05:20.800 on the labor market because he had dramatic slowdown in 0:05:20.839 --> 0:05:24.520 business hiring. When a DP issues January payroll data, econom 0:05:24.600 --> 0:05:27.120 is surveyed by Bloomberg anticipate a gain of less than 0:05:27.160 --> 0:05:30.680 two hundred thousand, and Bloomberg's viney Deal Judais reports. Bloomberg 0:05:30.720 --> 0:05:34.800 Economics says January's ADP data will point to a slowdown 0:05:34.839 --> 0:05:39.760 and hiring, reflecting the impact of COVID nineteen omicron infections 0:05:39.800 --> 0:05:44.520 on businesses. February could usher in a recovery. In December, 0:05:44.560 --> 0:05:47.560 a d P reported businesses added more than eight hundred 0:05:47.600 --> 0:05:51.280 thousand workers, the most sins May. The official government figures 0:05:51.279 --> 0:05:55.200 were less robust. S Bloomberg day Break Finny Thanks. The 0:05:55.240 --> 0:05:58.480 big Labor report comes Friday with government payrolls data for 0:05:58.600 --> 0:06:02.120 January and the Biden administer Asians, lowering expectations on those. 0:06:02.200 --> 0:06:04.720 The White House says fallout from Omicron could overstate the 0:06:04.800 --> 0:06:07.599 number of unemployed people. Jared Bernstein is a member of 0:06:07.600 --> 0:06:10.559 the White House Council of Economic Advisors. If you're not 0:06:10.640 --> 0:06:14.000 on the payroll, meaning you're sick or you're absence so 0:06:14.000 --> 0:06:16.880 you're on some sort of unpaid leave, you're not going 0:06:16.920 --> 0:06:19.359 to be counted on the payroll for the payroll survey. 0:06:19.800 --> 0:06:23.280 And the fact is um virtually all of those folks 0:06:23.480 --> 0:06:26.120 likely still have their jobs, so when they go back 0:06:26.120 --> 0:06:29.120 in February, they will be counted again. Jared Bernstein with 0:06:29.160 --> 0:06:31.919 the Council of Economic Advisors spoke with our Washington correspondent 0:06:32.000 --> 0:06:35.200 Joe Matthew on Bloomberg Sound on Catch the program weekdays 0:06:35.240 --> 0:06:38.440 at five pm Eastern on Bloomberg Radio. Oil also in 0:06:38.520 --> 0:06:40.920 focus this morning, is trading near a seven year high 0:06:40.960 --> 0:06:43.000 ahead of an OPEC plus meeting. Oh Peck and his 0:06:43.120 --> 0:06:46.159 allies are expecting to approve another modest oil output in 0:06:46.200 --> 0:06:48.680 Greece today, at the same time, they could struggle to 0:06:48.720 --> 0:06:52.120 actually deliver that cut. And checking prices now, NIMEX scrude 0:06:52.160 --> 0:06:54.400 oil is up a quarter percent, or twenty four cents 0:06:54.400 --> 0:06:57.000 at eighty eight dollars forty four cents. Of barrel Brent 0:06:57.200 --> 0:06:59.440 is up about two ten percent to eighty nine dollars 0:06:59.440 --> 0:07:06.960 twenty nine sense and checking futures right now, SMP futures 0:07:06.960 --> 0:07:09.160 are up thirty one point, staff futures up thirty six. 0:07:09.279 --> 0:07:12.160 Nastack futures are higher by two or three points. That's 0:07:12.160 --> 0:07:14.320 a gain of one point four per cent. The tenure 0:07:14.360 --> 0:07:17.120 treasure yield one point seven nine local headlines in the 0:07:17.200 --> 0:07:23.119 check of Sports. Next to this is Bloomberg. It sounds 0:07:23.120 --> 0:07:25.200 six though seven on Wall Street where thirty five degrees 0:07:25.240 --> 0:07:27.720 in Central Park got an accent on the inbound George 0:07:27.720 --> 0:07:30.040 Washington Bridge on the upper level. The tails coming up 0:07:30.040 --> 0:07:32.360 in traffic. First Michael Barr with more on what's going 0:07:32.360 --> 0:07:34.280 on in New York end around the world. Michael, thank 0:07:34.320 --> 0:07:37.160 you very much, Nathan. A sea of blue expected again 0:07:37.280 --> 0:07:39.960 in New York City today at the funeral for Officer 0:07:40.000 --> 0:07:43.640 Wilbert Mora, the second of two NYPD officers killed in 0:07:43.680 --> 0:07:46.880 the line of duty last month. Awake for Morea, who 0:07:47.000 --> 0:07:50.240 was seven, was held yesterday. He was killed during a 0:07:50.280 --> 0:07:53.800 domestic disturbance call in Harlem, along with his partner, Jason Rivera. 0:07:54.320 --> 0:07:57.320 Moreas funeral will be held at St. Patrick's Cathedral this 0:07:57.360 --> 0:08:00.480 morning in midtown Manhattan, followed by a very old Woodside 0:08:00.560 --> 0:08:03.600 Queens This as an off duty m p D officer 0:08:03.720 --> 0:08:06.680 was shot in Queen's last night. He is expected to survive. 0:08:07.200 --> 0:08:10.520 Mp D Commissioner Keachin Sewell talked about the latest shooting. 0:08:10.880 --> 0:08:14.600 This young man was on his way to work, on 0:08:14.680 --> 0:08:18.080 his way to protect New Yorkers from criminals. Commissioners Sewell 0:08:18.240 --> 0:08:22.040 was alongside Mayor Eric Adam speaking to reporters. These offices 0:08:22.120 --> 0:08:25.640 every day put on their uniform, Pinachiel on their chests, 0:08:25.840 --> 0:08:29.040 put the bulaproof fest on and go back in the streets. 0:08:29.040 --> 0:08:32.360 With all of that frustration, they still go back and 0:08:32.440 --> 0:08:36.360 do their job. Now is time for lawmakers to do 0:08:36.440 --> 0:08:39.720 their job. Mayor Adams is getting ready to host President 0:08:39.760 --> 0:08:43.560 Biden tomorrow for a discussion about gun violence. Russian President 0:08:43.640 --> 0:08:47.880 Vladimir Putin accused America and the West of ignoring Moscow's 0:08:47.880 --> 0:08:52.520 security concerns in the Ukraine controversy. Secretary of State b Lincoln, 0:08:52.600 --> 0:08:55.560 speaking with Russian Foreign Minister Lave Roth, says it was 0:08:55.640 --> 0:08:58.520 time for Russia to start withdrawing its troops from the border. 0:08:58.760 --> 0:09:01.680 White out spokesperson Jen Saki, the door to the plumacy 0:09:01.720 --> 0:09:06.360 remains open. We don't know what decision President Putin will make. 0:09:06.600 --> 0:09:09.880 Spokesperson Jen Saki a Democratic senator has suffered a stroke 0:09:09.920 --> 0:09:13.400 because doctors say U S. Senator Ben Luhan, who is 0:09:13.480 --> 0:09:16.440 forty nine, is expected to fully recover from a stroke 0:09:16.480 --> 0:09:20.000 and surgery to reduce swelling. However, with a fifty fifty Senate, 0:09:20.120 --> 0:09:22.520 it has put a number of Democratic lead votes on 0:09:22.559 --> 0:09:25.400 hold for now. A major winter storm is expected to 0:09:25.440 --> 0:09:28.480 affect a huge swath of the US, with heavy snow 0:09:28.559 --> 0:09:31.080 starting in the Rockies and freezing rain as far as south. 0:09:31.120 --> 0:09:34.119 It's Texas before it drops snow and ice on the Midwest, 0:09:34.559 --> 0:09:37.880 and it's Groundhog Day. People in Pennsylvania are waiting to 0:09:37.960 --> 0:09:41.280 learn whether Ponsitani fil predicts an early spring or six 0:09:41.320 --> 0:09:44.880 more weeks of winter. Staten Island. Chuck will be live 0:09:44.920 --> 0:09:49.720 stream today Global twenty four hours to day two. Buck 0:09:49.800 --> 0:09:54.840 Chuck on here and on Bloomberg Quick Takes Mony seven 0:09:54.880 --> 0:09:57.959 that maybe journalist and analyism more than under twenty gun threes. 0:09:58.000 --> 0:10:01.840 I'm Michael bar this is bloom happy. Six more weeks 0:10:01.840 --> 0:10:09.080 of winter. I'm calling it, Michael almost six ten on 0:10:09.120 --> 0:10:11.120 Wall Street. Time for the Bloomberg Sports Update with John 0:10:11.160 --> 0:10:14.440 Stashun all Right, Nathan the greatest player ever retires and 0:10:14.800 --> 0:10:17.000 may not have been the biggest NFL story of the day. 0:10:17.000 --> 0:10:19.839 Tom Brady made his retirement official a length they post 0:10:19.920 --> 0:10:23.040 on social media that curiously never mentioned the Patriots, but 0:10:23.520 --> 0:10:25.840 you can expect Brady's number twelve to be retired at 0:10:25.840 --> 0:10:29.000 a Pat's game next season. Tampa Bay now needs a quarterback. Meanwhile, 0:10:29.440 --> 0:10:32.400 a lawsuit filed in Manhattan federal accord by Brian Flora, 0:10:32.440 --> 0:10:34.560 as recently fired as the head coach of the Dolphins. 0:10:34.559 --> 0:10:38.240 It accuses the NFL and three teams Miami, Denver, and 0:10:38.280 --> 0:10:42.120 the Giants of racism in their hiring practices. Flora said 0:10:42.120 --> 0:10:44.080 that in two thousand of nineteen in Denver and just 0:10:44.240 --> 0:10:46.520 recently with the Giants, he was interviewed for a head 0:10:46.520 --> 0:10:49.080 coaching job that he had no chance of getting, and 0:10:49.120 --> 0:10:51.520 he offered as proof a text he got last week 0:10:51.559 --> 0:10:54.280 from Bill Belichick, who apparently meant it to go to 0:10:54.320 --> 0:10:57.680 Brian day Ball. He congratulated him on getting the Giants job. 0:10:58.120 --> 0:11:00.800 It was before Flora's even had his review. Perhaps most 0:11:00.800 --> 0:11:04.160 shocking leave, Flora said Dolphins owner Stephen Ross offered to 0:11:04.200 --> 0:11:07.320 pay him more money if his team lost so they 0:11:07.320 --> 0:11:10.160 could get a better draft pick. NAT's in Phoenix Sons 0:11:10.200 --> 0:11:12.720 have won forty of their last forty six. They beat 0:11:12.720 --> 0:11:16.640 Brookely to one eleven. Devon Booker scored thirty five Rangers 0:11:16.640 --> 0:11:18.640 at the Guard to beat Florida five to two. Two 0:11:18.720 --> 0:11:21.000 more goals, both on the power player for Chris Crider, 0:11:21.360 --> 0:11:23.600 now thirty three goals on the season, more than half 0:11:23.600 --> 0:11:25.600 of those with the man advantage. Islanders back to five 0:11:25.679 --> 0:11:28.680 hundred four one over Ottawa, The Devils six trade Laws 0:11:28.679 --> 0:11:31.440 beaten by Toronto seven to one. St. John's lost the 0:11:31.440 --> 0:11:34.440 Big East, leading Providence eight six eighty two. Pasha Alexander 0:11:34.480 --> 0:11:36.760 scored twenty nine for the Red Storm. Seaton Hall one 0:11:36.800 --> 0:11:40.000 at Georgetown Ruttors came from twenty four down to force 0:11:40.040 --> 0:11:43.840 overtime but lost by one at Northwestern. John Stash Atward 0:11:43.840 --> 0:11:46.800 Bloomberg Sports, Nathan all right, John, thanks right now. Some 0:11:47.040 --> 0:11:49.319 futures are up thirty point Stuff futures up thirty four 0:11:49.360 --> 0:11:52.040 nansect futures still leading the gains up one hundred ninety 0:11:52.080 --> 0:11:54.280 three points, a gain of one point three percent to ten. 0:11:54.320 --> 0:11:57.440 Your treasury now down one thirty second to yield one 0:11:57.520 --> 0:12:01.200 point seven nine percent. More are on the markets. Next 0:12:01.200 --> 0:12:08.000 with Brian Levitt of Investco. This is Bloomberg Bloomberg eleven 0:12:08.040 --> 0:12:09.839 three or weather cloud some Sunday times today with a 0:12:09.920 --> 0:12:11.959 higher forty five degrees will be in the mid forties 0:12:12.000 --> 0:12:15.240 tomorrow with rain arriving the afternoon. Rain ending is wet, 0:12:15.360 --> 0:12:18.640 snow or sleet Friday with a hindar thirty five. That's 0:12:18.679 --> 0:12:24.720 the current temperature. Markets, headlines and breaking news twenty four 0:12:24.720 --> 0:12:27.800 hours a day at Bloomberg dot com. The Bloomberg Business 0:12:27.800 --> 0:12:37.400 Outland at Bloomberg Quick Tape is a Bloomberg Business Flash 0:12:38.000 --> 0:12:40.720 and I'm Cameron Moscow. Global stocks heading for the biggest 0:12:40.760 --> 0:12:45.040 four day rally since November. US Dot index futures are 0:12:45.160 --> 0:12:48.000 jumping as companies from the US to Europe report better 0:12:48.000 --> 0:12:51.520 than forecast earnings, and dip bine continues in technology shares. 0:12:51.760 --> 0:12:54.079 To check the markets every fifteen minutes throughout the trading 0:12:54.160 --> 0:12:56.400 day on Bloomberg Right now, S and P futures are 0:12:56.480 --> 0:12:59.760 up thirty points now futures up thirty three, and NASDAG 0:12:59.800 --> 0:13:02.160 few Jersey are up one ninety three. That's up one 0:13:02.200 --> 0:13:05.199 point three percent. The decks in Germany's up two tenths 0:13:05.200 --> 0:13:07.400 of upper cent. The ten year treasury down one thirty 0:13:07.480 --> 0:13:10.120 second held one point seven nine percent. They yield on 0:13:10.200 --> 0:13:12.920 the two year one point one seven percent. Nine night 0:13:12.960 --> 0:13:15.079 screwed oil is up two tenths per cent or thirteen 0:13:15.120 --> 0:13:17.320 cents at eighty eight dollars. Thirty three cents of barrel 0:13:17.600 --> 0:13:19.720 comex schooled up less than a tenth of upper cent 0:13:19.800 --> 0:13:22.320 of a dollar twenty At eighteen o two seventy announced 0:13:22.640 --> 0:13:25.160 the euro one point one three oh nine against the dollar, 0:13:25.200 --> 0:13:27.720 British found one point three five five six and the 0:13:27.800 --> 0:13:30.959 ends at one fourteen point three nine bitcoin. This morning 0:13:31.360 --> 0:13:34.720 it's moving lower at thirty eight thousand, five hundred twenty dollars. 0:13:34.760 --> 0:13:36.760 And today we get a report on private pay rolls 0:13:36.840 --> 0:13:39.400 from the ADP Research Institute at an eight fifteen Wall 0:13:39.440 --> 0:13:41.920 Street time, and it's another big day for earnings. We 0:13:42.000 --> 0:13:45.319 hear from companies including Facebook parent Meta platforms. That's a 0:13:45.360 --> 0:13:47.960 Bloomberg business flash. Now here's Michael Barr with more on 0:13:48.000 --> 0:13:51.360 what's going on around the world. Uncle, good morning, Good morning. 0:13:51.400 --> 0:13:54.680 Here in US, hospital admissions for COVID nineteen are receiving 0:13:54.679 --> 0:13:57.440 in thirty four states and the nation's capital, easing the 0:13:57.520 --> 0:14:01.400 healthcare staffing crisis that we're widespread at the start of 0:14:01.400 --> 0:14:04.800 the year. The World Health Organization, though warned countries not 0:14:04.880 --> 0:14:09.480 to ease restrictions prematurely. Former Miami Dolphins coach Brian Flores 0:14:09.600 --> 0:14:12.640 is suing the NFL and three teams, including the Giants, 0:14:12.960 --> 0:14:16.560 claiming quote the NFL is racially segregated and has managed 0:14:16.679 --> 0:14:20.640 much like a plantation. The Dolphins fired Floors last month 0:14:20.680 --> 0:14:23.840 after back to back winning seasons. The lawsuit even accuses 0:14:23.920 --> 0:14:27.280 Dolphins owner Stephen Ross of offering to pay Floors one 0:14:27.320 --> 0:14:30.320 hundred thousand dollars for every loss during the twenty nineteen 0:14:30.360 --> 0:14:34.160 season to secure a higher draft pick in the NBA. 0:14:34.360 --> 0:14:37.840 The Nets and Wizards lost, The Warriors won. In the NHL, 0:14:37.920 --> 0:14:40.680 the Rangers, Islanders, and Bruins one. The Capital's won an 0:14:40.680 --> 0:14:44.000 OT against the Penguins for three, The Devil's lost. Global 0:14:44.000 --> 0:14:46.480 News twenty four hours a day on air and on 0:14:46.520 --> 0:14:49.600 Bloomberg Quick Take, powered by more than twenty seven hundred 0:14:49.640 --> 0:14:52.200 journalists and analysts more than a hundred twenty countries. I'm 0:14:52.200 --> 0:14:54.520 Michael bar This is Bloomberg. Nathan all right, Michael, thanks 0:14:54.560 --> 0:14:56.600 for coming up to six twenty on Wall Street Life 0:14:56.600 --> 0:14:59.880 from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak. 0:15:00.080 --> 0:15:03.160 Brian Levitt joins us now Global market strategist at invest 0:15:03.200 --> 0:15:07.760 Go certainly seeing a lift to tech futures for sure, Brian, 0:15:08.440 --> 0:15:11.160 with Google earnings coming in as well as they did, 0:15:11.280 --> 0:15:16.200 is the growth trade back, Yeah. I think investors have 0:15:16.360 --> 0:15:20.600 gotten too pessimistic on the growth trade. And part of 0:15:20.080 --> 0:15:23.160 the reality of the pessimism that growth trade with the 0:15:23.200 --> 0:15:26.240 expectation that long rates we're going to go up substantially. 0:15:26.280 --> 0:15:29.520 I think what investors have to realize is that we 0:15:29.560 --> 0:15:32.840 are in a tightening cycle, and in a tightening cycle, 0:15:32.880 --> 0:15:36.000 you'd expect the yield curve to flatten and for growth 0:15:36.040 --> 0:15:40.840 prospects to slow. And in a slower growth environment, companies 0:15:40.880 --> 0:15:43.800 that can generate true earnings growth tend to be rewarded. 0:15:43.840 --> 0:15:45.640 So it's not to say that the year isn't going 0:15:45.680 --> 0:15:48.840 to continue to be volatile, but I think investors jumped 0:15:48.920 --> 0:15:51.920 the gun to think that, you know, this was going 0:15:52.000 --> 0:15:55.000 to be a wholesale shift away from growth to value. 0:15:55.240 --> 0:15:57.560 I would focus on quality, and a lot of those 0:15:57.600 --> 0:16:01.360 growth companies are high quality businesses that that generate very 0:16:01.400 --> 0:16:05.040 strong earnings growth and what's gonna be a slowing economic environment. 0:16:05.360 --> 0:16:09.800 In a slowing economic environment, then you can tech companies 0:16:10.040 --> 0:16:14.200 like Alphabet, like Apple continue on the trajectory that they've 0:16:14.240 --> 0:16:19.760 shown through the pandemic. I believe they can um and 0:16:19.800 --> 0:16:22.000 what your start what you started to get to when 0:16:22.040 --> 0:16:24.720 when we saw the big sell off that we had 0:16:25.080 --> 0:16:27.960 a handful of days ago, was that some of these 0:16:28.400 --> 0:16:34.520 really good quality tech businesses were moving towards valuations in 0:16:34.560 --> 0:16:37.480 some instances like a Facebook that wasn't all that different 0:16:37.520 --> 0:16:40.560 than the valuations of the market. So we had gotten to, 0:16:41.040 --> 0:16:44.360 you know, extreme pessimism across the market. We're getting a 0:16:44.480 --> 0:16:47.160 bounce here. It's not a surprise to see it led 0:16:47.280 --> 0:16:50.960 by by tech businesses, by the higher quality companies. Now 0:16:51.200 --> 0:16:54.880 these markets, um, you know, a rally was in store. 0:16:55.000 --> 0:16:58.120 These markets were bound to find some footing. It doesn't 0:16:58.120 --> 0:17:00.920 mean our challenges haven't gone away. We all have elevated 0:17:00.920 --> 0:17:05.000 inflation and multiple interest rate hikes ahead. But my view 0:17:05.400 --> 0:17:07.880 is that you want to hide out in quality during 0:17:07.880 --> 0:17:10.880 that environment, and the companies that you mentioned could certainly 0:17:10.920 --> 0:17:13.639 be viewed as as good quality business has given the 0:17:13.640 --> 0:17:16.439 state of their balance sheets and given their abilities to 0:17:16.480 --> 0:17:21.360 grow in most economic backdrops. You mentioned the uncertainty around 0:17:21.560 --> 0:17:25.159 FED policy. Are you starting to re rate what you 0:17:25.200 --> 0:17:27.920 think the FED is going to do in terms of 0:17:28.000 --> 0:17:30.200 the speed of rate hikes and how many rate hikes 0:17:30.200 --> 0:17:33.640 we get this year. Yeah, but the market has done 0:17:33.640 --> 0:17:36.479 a good job of of pricing it in. I mean, 0:17:36.520 --> 0:17:38.960 even if you think about what had what's happened to 0:17:39.000 --> 0:17:41.959 the two year treasury, the to your treasury was below 0:17:42.000 --> 0:17:45.280 twenty basis points not that long ago and and has 0:17:45.359 --> 0:17:48.080 moved closer to a hundred and twenty basis points. So 0:17:48.480 --> 0:17:51.680 I would categorize that as a bond market that has 0:17:51.760 --> 0:17:54.960 already started to price in a lot of tightening. Financial 0:17:54.960 --> 0:17:58.040 conditions have tightened a bit, high yield spreads have moved 0:17:58.119 --> 0:18:00.000 up a bit in the yield curve, The US treasure 0:18:00.080 --> 0:18:04.639 eel curve has flattened meaningfully. So the I guess we 0:18:04.680 --> 0:18:07.240 could take it as some good news that the market 0:18:07.440 --> 0:18:10.159 has already priced in a lot of it. What we 0:18:10.200 --> 0:18:13.960 need to see now is do inflation expectations start to 0:18:14.040 --> 0:18:18.520 come down and is it possible that the Federal Reserve 0:18:18.600 --> 0:18:22.040 does not have to raise interest rates as significantly and 0:18:22.080 --> 0:18:24.479 as quickly as people think, Look it's coming. We know 0:18:24.600 --> 0:18:27.280 the tightening is coming again. The markets priced in a 0:18:27.320 --> 0:18:29.560 lot of it. What I'm starting to see a survey 0:18:29.680 --> 0:18:32.600 data from the American consumers saying they're not willing to 0:18:32.600 --> 0:18:34.919 pay these prices anymore. It's not a good time to 0:18:34.960 --> 0:18:37.360 buy durable goods. They're saying it's not a good time 0:18:37.400 --> 0:18:41.320 to buy vehicles. To me, that means demand slows. As 0:18:41.359 --> 0:18:45.240 demands slows, some of the supply chain challenges hopefully start 0:18:45.320 --> 0:18:48.360 to ease. Maybe that allows the FED to back off 0:18:48.400 --> 0:18:51.359 the tightening stance at some point. That's the hope that 0:18:51.400 --> 0:18:54.560 would put the economy back into a more expansionary tilt. 0:18:55.080 --> 0:18:57.520 But we'll have to see how this plays out. All right, 0:18:57.680 --> 0:18:59.679 Thanks for this, Brian, good having you on with us 0:18:59.720 --> 0:19:03.560 this morning. Brian Levitt is a global market strategist at Investco. 0:19:03.720 --> 0:19:08.800 It is on Wall Street. This is the Big Take, 0:19:08.960 --> 0:19:12.360 the best of boom Berg's in depth original reporting from 0:19:12.400 --> 0:19:15.120 around the globe. We're running on a financial system that's 0:19:15.160 --> 0:19:19.560 running on old technology. We're seeing prices reach fresh recordized. 0:19:19.720 --> 0:19:22.000 What unfolds in mid terms, we will no doubt see 0:19:22.000 --> 0:19:25.720 again in the next presidential election. The boom Take on 0:19:25.880 --> 0:19:29.760 boom Bird Radio. The Big Take this morning is about 0:19:30.040 --> 0:19:33.600 big bonuses, the likes of which Wall Street hasn't seen 0:19:33.720 --> 0:19:37.879 since really after the global financial crisis and the bailout 0:19:38.040 --> 0:19:41.000 from the federal government. Bloomberg Wall Street reporters Street not 0:19:41.240 --> 0:19:43.840 Rogen is with us this morning, one of the authors 0:19:43.880 --> 0:19:46.879 of this morning's Big Take story Street. Good to have 0:19:46.960 --> 0:19:49.760 you with us this morning. We have certainly seen how 0:19:49.800 --> 0:19:54.119 big these bonuses have been and the overall compensation packages 0:19:54.640 --> 0:19:57.639 for Wall Street bankers. You look at the CEOs of 0:19:57.680 --> 0:20:00.720 the big six Wall Street banks and it's almost like 0:20:00.760 --> 0:20:04.240 an arms race in terms of trying to retain and 0:20:04.359 --> 0:20:07.560 hold on to talent at the trading desks. Absolutely, we 0:20:07.640 --> 0:20:10.120 haven't seen this level of be out for the top 0:20:10.280 --> 0:20:13.600 rainmakers at the biggest banks in the United States in 0:20:13.640 --> 0:20:15.960 over ten years. The last time that happened was one 0:20:16.040 --> 0:20:20.000 year after the Great Financial Crisis, and that invited the 0:20:20.400 --> 0:20:23.480 get Bigger on Wall Street. Bloomberg Wall Street reporter Shre 0:20:23.840 --> 0:20:26.560 not a Rogen with us this morning with the Bloomberg 0:20:26.640 --> 0:20:29.359 Big Take. You can read all about it at Bloomberg 0:20:29.400 --> 0:20:32.720 dot com, Slash Big Take and I Big Take go 0:20:33.240 --> 0:20:36.439 on the Bloomberg terminal. Karen Nathan at is six thirty 0:20:36.560 --> 0:20:39.840 on Wall Street. This is Bloomberg Daybreak. I'm Karen Moscow 0:20:39.880 --> 0:20:42.399 along with Nathan Hagar, and we're just about three hours 0:20:42.440 --> 0:20:44.840 away from the open of US trading time for the 0:20:44.880 --> 0:20:47.000 five things you need to know to start your day, 0:20:47.280 --> 0:20:50.600 Brought to you by Interactive Brokers. Trade crypto for less 0:20:50.600 --> 0:20:53.280 coin with commissions just twelve to eighteen basis points and 0:20:53.359 --> 0:20:56.560 no hidden spreads or markups. Learn more at ibkr dot 0:20:56.600 --> 0:21:00.679 com slash crypto at First Nowsday, futures are hire, building 0:21:00.680 --> 0:21:03.960 on three straight days of gains. That catalyst this morning 0:21:04.240 --> 0:21:07.520 strong earnings from Alphabet Angelo Zo, as an analyst at 0:21:07.520 --> 0:21:09.920 CFRE A, you know, kind of going into the quarter, 0:21:09.920 --> 0:21:12.120 I think there might have been some concerns about some 0:21:12.160 --> 0:21:14.880 of the supply constraints going on the market and potentially 0:21:14.960 --> 0:21:17.679 hindering some of the ad spend out there, but kind 0:21:17.680 --> 0:21:19.400 of look at the search business and I think that's 0:21:19.400 --> 0:21:22.000 really kind of a big winner here of thirty percent 0:21:22.080 --> 0:21:24.840 and really kind of blew our numbers away. C f 0:21:24.960 --> 0:21:27.520 r A analyst Angelo Zo says a stock split is 0:21:27.560 --> 0:21:30.639 also lifting Alphabet shares. The company will increase its outstanding 0:21:30.680 --> 0:21:33.560 shares by a twenty to one ratio. And we're also 0:21:33.600 --> 0:21:36.359 watching another high tech company rally this morning. Karen Shares 0:21:36.400 --> 0:21:39.120 of a m D are up eleven percent. The chip 0:21:39.119 --> 0:21:42.280