WEBVTT - Bloomberg Daybreak: January 24, 2022 - Hour 1 (Radio) 0:00:01.400 --> 0:00:05.080 Five from the Bloomberg Interactive Brooker Studios is Bloomberg Daybreak 0:00:05.120 --> 0:00:09.560 for Monday, January two. Coming up this hour, the US 0:00:09.680 --> 0:00:13.360 orders families of diplomats to leave Ukraine's tensions with Russia. 0:00:13.400 --> 0:00:16.680 Mountain on Wall Street stock futures stabilized after last week's 0:00:16.680 --> 0:00:19.800 sell off. Goldman Sachs comes out with a hawkish forecast 0:00:19.840 --> 0:00:22.960 for FED policy, and Dr Anthony Fauci says the Omicron 0:00:23.040 --> 0:00:26.200 outbreak could soon pee. New York City is reeling from 0:00:26.200 --> 0:00:29.400 the deadly shooting of the police officer. Plus trial begins 0:00:29.400 --> 0:00:33.080 with three x Minneapolis policemen involved in George Floyd's death. 0:00:33.280 --> 0:00:36.320 Him Michael Barr More Ahead, I'm John Stash. Aaron sports 0:00:36.320 --> 0:00:38.720 that Jays beat the Pills in an epic playoff game, 0:00:38.800 --> 0:00:41.120 The Ram beat the Box, the Next One, the Nets, 0:00:41.120 --> 0:00:46.479 and Devil's Law. That's all straight Ahead on Bloomberg day 0:00:46.520 --> 0:00:51.480 Break on Bloomberg Element Trio, New York, Bloomberg one, Washington, 0:00:51.600 --> 0:00:55.680 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 0:00:55.720 --> 0:00:59.600 San Francisco, Sirius x M one nine Team, and around 0:00:59.600 --> 0:01:02.360 the world Old on Bloomberg Radio dot Com and via 0:01:02.440 --> 0:01:09.440 the Bloomberg business set. Good morning. I'm Nathan Hager and 0:01:09.440 --> 0:01:13.400 I'm Karen Moscow. US futures are higher after last week's 0:01:13.440 --> 0:01:15.120 sell off. We're coming up to five oh one on 0:01:15.200 --> 0:01:17.320 Wall Street, and we check the markets every fifteen minutes 0:01:17.319 --> 0:01:20.240 throughout the trading day. On bloomberg SMP Future is up 0:01:20.319 --> 0:01:23.160 nine points, Dow Future is up seventy one nast DAG 0:01:23.200 --> 0:01:26.000 Future is up twenty The decks in Germany's down one 0:01:26.000 --> 0:01:29.319 point to percent. Ten year treasury up eight thirty seconds, 0:01:29.319 --> 0:01:31.720 held one point seven two percent. They yield on the 0:01:31.760 --> 0:01:35.360 two year one point one percent. Nine X screwed oil 0:01:35.480 --> 0:01:37.560 is up three ten percent or twenty four cents at 0:01:37.560 --> 0:01:40.360 eighty five dollars, thirty eight cents of barrel comics gold 0:01:40.400 --> 0:01:42.880 up half percent or nine dollars eighty cents at eighteen 0:01:42.959 --> 0:01:46.200 forty three ninety announce. The euro one point one three 0:01:46.240 --> 0:01:48.800 two six against the dollar, the NS at one thirteen 0:01:48.840 --> 0:01:51.280 point six one. Nathan, Karen, We'll have more on the 0:01:51.280 --> 0:01:53.240 markets in a minute, but we begin this morning with 0:01:53.280 --> 0:01:56.560 the latest geopolitical tensions between the White House and Moscow. 0:01:57.040 --> 0:01:59.960 Concerns over a Russian invasion of Ukraine have the US 0:02:00.000 --> 0:02:03.160 as taking steps to protect Americans in the country. Amy 0:02:03.200 --> 0:02:05.480 Morris has the latest from our Bloomberg ninety nine one 0:02:05.560 --> 0:02:09.720 newsroom in Washington. Washington ordered diplomats families to leave Ukraine. 0:02:09.720 --> 0:02:12.400 The UK withdrawing about half of its embassy staff and 0:02:12.400 --> 0:02:15.760 their families. EU ministers are talking with Secretary of State 0:02:15.800 --> 0:02:19.160 Anthony B. Lincoln about next steps. They're prepared to say 0:02:19.200 --> 0:02:22.400 that any further military aggression by Russia will have quote 0:02:22.520 --> 0:02:26.760 massive consequences and severe costs. This as President Biden is 0:02:26.800 --> 0:02:29.519 reportedly weighing whether to send troops to Eastern Europe to 0:02:29.560 --> 0:02:32.720 support NATO allies. The New York Times reports that would 0:02:32.760 --> 0:02:36.160 involve up to five thousand troops plus warships and aircraft. 0:02:36.360 --> 0:02:39.440 In Washington, I maybe Morris Bloomberg Daybreak, Amy, thank you. 0:02:39.560 --> 0:02:42.240 Secretary of State Anthony B. Lincoln is speaking out on 0:02:42.280 --> 0:02:45.920 the pending conflict with Russia. He's rejecting pressure to escalate 0:02:45.960 --> 0:02:48.880 sanctions on Moscow, saying you would limit his options in 0:02:48.919 --> 0:02:51.680 the future. The purpose of those sanctions is to deter 0:02:52.600 --> 0:02:56.000 Russian aggression, and so if they're if they're triggered now, 0:02:56.320 --> 0:02:59.320 you lose the detern effect. And Anthony B. Lincoln made 0:02:59.320 --> 0:03:02.080 the comments on PC's Meet the Press. Heard Sundays on 0:03:02.120 --> 0:03:04.880 Bloomberg Radio. All right, let's turn back to markets now, Karen, 0:03:04.919 --> 0:03:08.040 where we are seeing some stabilization this morning after last 0:03:08.040 --> 0:03:10.840 week sell off. Bloomberg's John Tucker joins us live with 0:03:10.919 --> 0:03:13.359 the details. Good morning, John, Good morning Nathan. The NASDAC 0:03:13.480 --> 0:03:16.640 one is coming off its worst week since the start 0:03:16.639 --> 0:03:19.680 of the pandemic in March of twenty The end of 0:03:19.720 --> 0:03:23.120 central bank stimulus has many rethinking their outlooks. The FED 0:03:23.200 --> 0:03:26.840 decision on Wednesday's expended to signal a March interest rate 0:03:26.919 --> 0:03:29.840 hike and a balance sheet reduction later this year. The 0:03:30.080 --> 0:03:34.280 US stocks have historically performed well during rate high cycles, 0:03:34.320 --> 0:03:37.440 as a growing economy tends to support corporate profit growth. 0:03:37.760 --> 0:03:41.080 In fact, stocks have risen at an average annualized rate 0:03:41.120 --> 0:03:44.320 of nine percent during the twelve rate hike cycles since 0:03:44.360 --> 0:03:47.880 the nineteen fifties. On average. Strategists also project the S 0:03:47.960 --> 0:03:50.600 and P five hundred will finish the year just shy 0:03:50.760 --> 0:03:55.120 of five thousand percent above Friday's closing level. Live in 0:03:55.160 --> 0:03:58.080 New York, I'm John Tucker, Bloomberg Daybreak. All right, John, 0:03:58.120 --> 0:04:00.640 thank you, and as we wait for Wednesday's FED decision, 0:04:00.680 --> 0:04:03.320 One Wall Street Bank is out with a hawkish forecast. 0:04:03.400 --> 0:04:06.840 We get the latest live from Bloomberg's Nita Young. Good morning, Nada, 0:04:06.920 --> 0:04:10.040 Good morning, Karen Goldman. SAX economists say the FIT could 0:04:10.040 --> 0:04:14.720 tighten policy more aggressively than anticipated their clocking rate increases 0:04:14.760 --> 0:04:18.320 in March, June, September, and December, and for the Central 0:04:18.320 --> 0:04:21.000 Bank to announce the start of a balance sheet reduction 0:04:21.120 --> 0:04:25.240 in July. Goldben economists are concerned because the omicron variant 0:04:25.279 --> 0:04:30.280 is prolonging supply demand imbalances and there's continued wage strength 0:04:30.600 --> 0:04:35.200 and growth which could increase ongoing inflation pressures. Live in 0:04:35.240 --> 0:04:37.720 New York, I'm gonned a Young Bloomberg daybreak, and we 0:04:37.800 --> 0:04:40.240 need to Anticipation of tighter policy from the Fed is 0:04:40.279 --> 0:04:43.200 also weighing on Bitcoin. That combined with where the White 0:04:43.200 --> 0:04:46.600 Houses preparing a strategy for digital assets, had Bitcoin hit 0:04:46.640 --> 0:04:49.320 a low of thirty four thousand over the weekend. Bitcoin 0:04:49.480 --> 0:04:52.120 is down nearly fifty percent from its all time high 0:04:52.160 --> 0:04:54.960 in November, and checking the cryptocurrency now, it's at thirty 0:04:54.960 --> 0:04:58.760 four thousand five dollars. Well, Nathan, let's turn to the pandemic. Now, 0:04:58.880 --> 0:05:01.400 US COVID cases a appear to be leveling off. And 0:05:01.440 --> 0:05:04.440 there's hope the numbers could soon start heading south. Dr 0:05:04.480 --> 0:05:07.760 Anthony Fauci says this surge could be nearing its peak, 0:05:08.200 --> 0:05:11.640 but if the pattern follows the trend that we're seeing 0:05:11.680 --> 0:05:14.360 in other places, things are looking good. We don't want 0:05:14.360 --> 0:05:17.159 to get overconfident, but they look like they're going in 0:05:17.200 --> 0:05:20.039 the right direction right now. Dr Fauci made the comments 0:05:20.040 --> 0:05:23.280 on ABC's This Week Ord Sundays on Bloomberg Radio well 0:05:23.320 --> 0:05:25.760 COVID's Front and Center in Europe. This morning Karen as 0:05:25.760 --> 0:05:29.360 British Prime Minister Boris Johnson faces his most crucial week 0:05:29.440 --> 0:05:32.000 in office. Let's go live to London and get the 0:05:32.040 --> 0:05:34.200 latest from Bloomberg's You and Parts. Good Morning You, and 0:05:34.400 --> 0:05:36.800 Good Morning Nathan and Karen. Prime Minister Boris Johnson is 0:05:36.800 --> 0:05:39.440 awaiting the results of an inquiry JEWS report this week 0:05:39.480 --> 0:05:42.920 into large gatherings at Downing Street during the COVID lockdowns. 0:05:43.320 --> 0:05:45.720 It's an investigation that could lead to his own Conservative 0:05:45.760 --> 0:05:49.760 Party colleagues ousting him as leader. Separately, the premiss also 0:05:49.880 --> 0:05:52.680 under attack over the conduct of the senior party managers 0:05:52.720 --> 0:05:56.200 who maintained voting discipline among lawmakers. It's not a week 0:05:56.200 --> 0:05:58.800 that Johnson will be looking forward to live in London. 0:05:58.839 --> 0:06:01.120 I'm you and part Sploomberg. They break you and thank you. 0:06:01.160 --> 0:06:03.320 Back here in the US, some corporate news to get 0:06:03.320 --> 0:06:05.640 you caught up on shares, the Coals are higher by 0:06:05.680 --> 0:06:08.760 twenty six percent. The department store chain is fielding interests 0:06:08.760 --> 0:06:11.920 from two potential buyers. Sources say the latest bid comes 0:06:11.920 --> 0:06:15.680 from Sycamore Partners. Earlier, another bidder backed by Hedge fund 0:06:15.760 --> 0:06:19.920 is Starboard Value offered nine billion dollars for Coals. Activist 0:06:19.960 --> 0:06:23.560 investors have been pressuring Coals to sell. Peloton shares are 0:06:23.640 --> 0:06:25.880 up two percent here in Bloomberg News has learned an 0:06:25.880 --> 0:06:29.240 activist investor there is pushing Peloton to fire at CEO 0:06:29.320 --> 0:06:32.440 and try to sell itself. Blackwell's Capital has less than 0:06:32.480 --> 0:06:35.279 a five percent stake in the fitness company. Pelotons shares 0:06:35.520 --> 0:06:38.080 have plunged more than eighty percent from their all time 0:06:38.200 --> 0:06:41.000 high a year ago. And on the economic front, today, 0:06:41.120 --> 0:06:43.840 Nathan a new survey shows a build up of US 0:06:43.920 --> 0:06:48.280 inflation and labor shortages. The National Association for Business Economics 0:06:48.360 --> 0:06:51.440 says more than half of the company's surveyed boosted prices 0:06:51.440 --> 0:06:54.039 in the fourth quarter. That's the highest in the servey's 0:06:54.200 --> 0:06:57.120 forty year history on top of add more than sevent 0:06:57.960 --> 0:07:01.080 Expect higher wage costs in the next three months. Okay, 0:07:01.160 --> 0:07:03.120 right now, S and P futures are up, but only 0:07:03.160 --> 0:07:05.880 by about two points. STAW futures up twenty four. Nastack 0:07:05.920 --> 0:07:08.440 futures have turned lower. Now they're down six points. The 0:07:08.480 --> 0:07:11.840 tenure treasury is up nine thirty seconds, the yield one 0:07:11.920 --> 0:07:15.320 point seven to per cent. Straight ahead, your latest local 0:07:15.320 --> 0:07:23.280 headlines and a check of sports. This is Bloomberg and 0:07:23.320 --> 0:07:25.520 it's five oh seven on Wall Street, thirty degrees in 0:07:25.600 --> 0:07:29.040 Central Park and accident investigation as the b que closed 0:07:29.120 --> 0:07:31.920 eastbound between thirty one and the RFK trib or a bridge. 0:07:32.200 --> 0:07:35.040 Details coming up in Traffic. First Michael Barr with more 0:07:35.080 --> 0:07:37.000 on what's going on in New York and around the world. 0:07:37.000 --> 0:07:40.080 Good morning, Michael, Good morning Nathan. New York City is 0:07:40.120 --> 0:07:43.800 preparing delay to rest a rookie police officer killed last week. 0:07:44.120 --> 0:07:47.120 Funeral services for twenty two year old New York City 0:07:47.120 --> 0:07:51.920 police officer Jason Rivera are being finalized. Rivera an officer 0:07:52.000 --> 0:07:55.480 Wilbert Mora. We're shot Friday night while answering a call 0:07:55.520 --> 0:07:57.840 about an argument between a woman and her adult son 0:07:57.880 --> 0:08:01.440 in Harlem More was moved in this fighting for his life. 0:08:01.800 --> 0:08:05.240 The man police saying shot them also was wounded by 0:08:05.240 --> 0:08:08.760 a third responding officer. New York City Mayor Eric Adams 0:08:08.880 --> 0:08:11.800 vows to take action to address not just the latest 0:08:11.800 --> 0:08:14.880 police shooting, but crime in general. This is a sea 0:08:15.160 --> 0:08:18.880 of crime that's been fed by many rivers, and we 0:08:18.920 --> 0:08:21.400 have to damn each one of those rivers, and we 0:08:21.440 --> 0:08:25.000 have been unsuccessful to do so throughout the years. These 0:08:25.000 --> 0:08:28.320 crimes have not thought um during my administration, to have 0:08:28.440 --> 0:08:31.720 been here for far too long and many possible community. 0:08:31.960 --> 0:08:35.800 Mayor Adams on CNN also mentioned another high profile crime 0:08:35.840 --> 0:08:38.120 that occurred more than a week ago, but for the 0:08:38.200 --> 0:08:41.040 year old woman on the subway platform in Times Square, 0:08:41.120 --> 0:08:44.600 Michelle Go was shoved in front of an incoming train 0:08:44.720 --> 0:08:48.320 by a mentally ill homeless man. General Leeber is the 0:08:48.360 --> 0:08:51.240 CEO of the m t A, but a relatively small 0:08:51.360 --> 0:08:55.360 number of mentally ill homeless, but their impact on the 0:08:55.360 --> 0:08:58.960 subway system and on the ridership and god forbid, on 0:08:59.080 --> 0:09:03.120 safety is proportion. The m t A S Jano Liebers 0:09:03.120 --> 0:09:05.320 says that the fact that had happened in one of 0:09:05.320 --> 0:09:09.559 the most iconic spots emphasizes the problem New York City faces. 0:09:10.080 --> 0:09:12.920 Opening statements began today and the federal trial for three 0:09:13.000 --> 0:09:17.319 former Minneapolis police officers charged with violating George Floyd's civil 0:09:17.400 --> 0:09:19.880 rights as Derek Chauvin pinned his neck to the street. 0:09:20.360 --> 0:09:22.920 All three are charts or failing to provide Floyd with 0:09:22.960 --> 0:09:26.560 medical care. The adult film actress who made lawyer Michael 0:09:26.600 --> 0:09:29.840 Avonetti famous four years ago, will be the key witness 0:09:30.000 --> 0:09:33.320 in a New York courtroom. Prosecutors are trying to prove 0:09:33.400 --> 0:09:37.720 Havonette echeated Stormy Daniels a three dollars in book proceeds. 0:09:37.960 --> 0:09:42.160 Opening statements are scheduled for today. Jury selection begins today 0:09:42.200 --> 0:09:45.720 and New York for former Alaska governor and vice presidential 0:09:45.760 --> 0:09:49.880 candidate Sarah Palin's lawsuit against The New York Times. Palin 0:09:49.960 --> 0:09:55.080 accuses The Times of defamation. Over seventeen editorial global news 0:09:55.120 --> 0:09:57.800 twenty four hours a day on air and on Bloomberg 0:09:57.880 --> 0:10:00.400 Quick Tank, powered by more than twenty se an hundred 0:10:00.440 --> 0:10:03.000 journalist and analysts more than a hundred twenty countries. I'm 0:10:03.040 --> 0:10:05.679 Michael bar this is Bloomberg. Nathan all right, Michael, thank you, 0:10:10.240 --> 0:10:12.200 Almost five ten on all street time for the Bloomberg 0:10:12.240 --> 0:10:15.240 Sports up Take. Good morning, John Stash all Right, good morning, Nathan. 0:10:15.240 --> 0:10:18.319 Has there ever been a more exciting NFL playoff game? 0:10:18.400 --> 0:10:21.559 In the final two minutes of regulation, twenty five points 0:10:21.559 --> 0:10:25.640 were scored. There were three lead changes. Twice Buffalo thought 0:10:25.640 --> 0:10:27.880 it had one with a Josh Allen touchdown past the 0:10:28.240 --> 0:10:31.439 Gabriel Davis, who caught four on the night, kept leaving 0:10:31.520 --> 0:10:33.559 Kansas City time even when the Bill scored a go 0:10:33.600 --> 0:10:36.800 ahead TV with only thirteen seconds ago. Enough time for 0:10:36.920 --> 0:10:40.120 Patrick Mahomes. Two completions got the Chiefs in position for 0:10:40.160 --> 0:10:42.480 a game time field goal. They went to overtime. Kansas 0:10:42.480 --> 0:10:45.760 City won the coin flip, then won the games. Looks 0:10:45.800 --> 0:10:48.040 to throw it, pump baking right side, he wants the 0:10:48.080 --> 0:10:56.439 cost by Keelsasa sitting one of the greatest students in 0:10:56.559 --> 0:11:00.400 the history of the National Football League. Patrick maholl to 0:11:00.600 --> 0:11:04.400 Travis Kelsey, Hell the push fake comeback in the Chiefs 0:11:04.760 --> 0:11:09.360 up one. This incredible divisional playoff game forty two thirty 0:11:09.480 --> 0:11:13.480 six Chiefs radio Mahomes best Allen in a classic QB duel. 0:11:13.559 --> 0:11:17.400 They combined for sixty completions over seven hundred yards, seven touchdowns, 0:11:17.400 --> 0:11:20.719 plus a hundred thirty seven rushing yard. It's Mahomes in 0:11:20.800 --> 0:11:23.040 the Chiefs who will host Cincinnati for the a f 0:11:23.080 --> 0:11:25.280 C Championship. Rams will host the forty Niners for the 0:11:25.400 --> 0:11:28.200 NFC l A blew a four point lead, Tom Brady 0:11:28.400 --> 0:11:31.160 rallied Dampa Bay to a tie. Then the Rams, helped 0:11:31.160 --> 0:11:33.120 by a forty four yard completion, kicked the field goal 0:11:33.200 --> 0:11:36.240 to win thirty to twenty seven. After three straight home losses, 0:11:36.320 --> 0:11:37.800 Nick is able to beat the Clippers with the Garden 0:11:37.840 --> 0:11:40.400 one ten, one oh two. R. J. Barrett scored twenty six. 0:11:40.520 --> 0:11:43.480 Nick started tough week tonight in Cleveland. Nets lost in 0:11:43.559 --> 0:11:47.319 Minnesota one thirty six. Devils lost to the King's three 0:11:47.360 --> 0:11:51.000 to two. American Danielle Collins has reached the quarterfinals of 0:11:51.000 --> 0:11:54.880 the Australian John Stash Award Bloomberg Sports. Nathan John thanks 0:11:54.960 --> 0:11:57.559 futures lower, nows and p futures down two points, So 0:11:57.640 --> 0:12:00.760 are down futures that futures lower by any points. Lori 0:12:00.920 --> 0:12:07.520 Calvacina of RBC with us next. This is Bloomberg Blombery 0:12:07.600 --> 0:12:09.640 Daybreak brought you by the Breakers this winter are warm, 0:12:09.720 --> 0:12:11.920 welcome away to the Breakers is committed to making your 0:12:11.960 --> 0:12:15.640 stay even better with exceptional experiences, gracious service, and unparalleled 0:12:15.679 --> 0:12:22.520 seaside glamour. To learn more, visit the Breakers dot Com Today, Markets, 0:12:22.640 --> 0:12:25.679 headlines and breaking news twenty four hours a day at 0:12:25.720 --> 0:12:29.720 Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quicktape. 0:12:29.960 --> 0:12:39.120 This is a Bloomberg Business flash and I'm Cameron Moscow. 0:12:39.240 --> 0:12:43.440 US dot Index futures have turned lower, extending last week's losses, 0:12:43.520 --> 0:12:45.679 which was one of the worst stretches for global share 0:12:45.720 --> 0:12:48.280 since the pandemic began. We checked the markets every fifteen 0:12:48.280 --> 0:12:51.280 minutes throughout the trading day on Bloomberg. Right now, SMP 0:12:51.480 --> 0:12:55.040 futures are down six points down, futures down twenty nasadack 0:12:55.120 --> 0:12:58.000 futures down thirty seven. The decks in Germany's down one 0:12:58.120 --> 0:13:01.040 and a half percent, CAC in Paris down one point 0:13:01.160 --> 0:13:03.040 six percent, and the foot Sea one had write down 0:13:03.040 --> 0:13:06.040 about one point one percent. Can your treasury up ten 0:13:06.120 --> 0:13:08.360 thirty seconds he had one point seven two percent. That 0:13:08.480 --> 0:13:11.559 yield on the two year one point o percent or 0:13:11.640 --> 0:13:14.160 one percent, you could say nine Excrete oil down about 0:13:14.160 --> 0:13:16.280 two tenths per cent or thirteen cents at eighty five 0:13:16.320 --> 0:13:18.960 dollars a barrel. Comex school is up six tents per 0:13:19.000 --> 0:13:21.400 cent er ten dollars twenty cents at eighteen forty four 0:13:21.559 --> 0:13:23.959 thirty announced the euro one point one three to two 0:13:24.000 --> 0:13:26.280 against the dollar, British pound one point three five one 0:13:26.440 --> 0:13:29.079 three and again is at one thirteen point five four. 0:13:29.120 --> 0:13:32.520 And just checking Bitcoin this morning, moving lower. Uh, it's 0:13:32.559 --> 0:13:36.400 at thirty three thousand, six hundred dollars. That's down almost 0:13:36.480 --> 0:13:39.360 five percent, and that's a Bloomberg business flash. Now here's 0:13:39.400 --> 0:13:41.840 Michael Barr with more and what's going on around the world. Uncle, 0:13:41.880 --> 0:13:45.880 Good morning, Good morning, Karen. The US ordered family members 0:13:46.000 --> 0:13:48.959 at its embassy in Ukraine to leave do to the 0:13:49.000 --> 0:13:52.840 continued threat of Russian military action, while the US renewed 0:13:52.880 --> 0:13:56.080 warnings that Russia good sent forces into Ukraine at any time. 0:13:56.480 --> 0:13:59.559 There's word. President Joe Biden is considering deploying troops to 0:13:59.640 --> 0:14:03.400 Eastern Europe and the Baltics. The federal trial for three 0:14:03.600 --> 0:14:07.720 former Minneapolis police officers charged with violating George Floyd's civil 0:14:07.840 --> 0:14:10.320 rights as Derek Chauvin pinned his neck to the street 0:14:10.720 --> 0:14:13.680 is set to begin today with opening statements. In the NFL. 0:14:13.800 --> 0:14:16.559 The Chiefs beat the Bills forty two thirty six that 0:14:16.679 --> 0:14:20.160 means Kansas City faces the Bengals for the a f 0:14:20.280 --> 0:14:23.160 C title. The Rams beat the Bucks thirty twenty seven, 0:14:23.280 --> 0:14:25.880 Los Angeles would now face the forty Niners for the 0:14:26.120 --> 0:14:30.360 NFC Championship. In the NBA, the Knicks, Celtics and Warriors won, 0:14:30.520 --> 0:14:34.480 the Nets lost, NHL Action The Devil's Lost. Global News 0:14:34.680 --> 0:14:37.560 twenty four hours a day on air and on Bloomberg 0:14:37.640 --> 0:14:40.840 Quick Take, powered by more than twenty seven under journalist 0:14:40.880 --> 0:14:43.400 and analysts more than a hundred twenty countries. I'm Michael 0:14:43.480 --> 0:14:46.640 var and this is Bloomberg Nathan Alright, Michael, thanks for 0:14:46.720 --> 0:14:48.760 coming up to five twenty on Wall Street Live from 0:14:48.800 --> 0:14:52.280 the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak and 0:14:52.320 --> 0:14:55.160 we're joined down by Lori Calvacina ahead of US Equity 0:14:55.200 --> 0:14:59.080 Strategy at RBC Capital Markets. As we see futures taking 0:14:59.120 --> 0:15:02.080 a turn low were now, Lorie, they had been higher 0:15:02.600 --> 0:15:04.880 just a few minutes ago actually, but now it looks 0:15:04.920 --> 0:15:07.720 like investors think there maybe even further for this sell 0:15:07.800 --> 0:15:10.080 off to run. When do you think we see capitulation 0:15:11.560 --> 0:15:14.240 A Hi, Well, thanks for having me. As always, um, look, 0:15:14.280 --> 0:15:16.520 I think if you look at the retail Investors Survey 0:15:16.640 --> 0:15:19.680 that a AI I put that on a weekly basis. Um, 0:15:19.760 --> 0:15:23.720 we've actually already gotten very close to deeply bearished territory. 0:15:23.720 --> 0:15:25.920 If you look at the sort of unadjusted weekly number 0:15:25.960 --> 0:15:29.360 from last week, it was actually very very close onto 0:15:29.640 --> 0:15:34.800 pandemic loads. I think the netbolishness was around minus or so. UM. 0:15:34.920 --> 0:15:36.760 And we we did see, you know, sort of the 0:15:36.800 --> 0:15:40.240 bears climbed sharply and the bulls repeat retreat Charlie. Um. 0:15:40.440 --> 0:15:42.600 Now when that happened in the pandemic, when we got 0:15:42.680 --> 0:15:45.080 two similar levels, we stayed there for twelve weeks. So 0:15:45.200 --> 0:15:48.040 that doesn't mean sentiment turns around tomorrow. UM. But I 0:15:48.160 --> 0:15:50.680 do think a lot of the bad news, whether it's 0:15:50.720 --> 0:15:53.760 from the FED, inflation, um, even some of the anks 0:15:53.800 --> 0:15:56.280 were seen in terms of GIA politics, it's already taken 0:15:56.320 --> 0:15:58.680 a pretty big toll on investor psyching. That doesn't mean 0:15:58.680 --> 0:16:00.960 the market turns around today. Um. That it is an 0:16:00.960 --> 0:16:03.480 important threshold to be aware of. Yeah, as you say, 0:16:03.520 --> 0:16:05.720 there are a lot of catalysts for investors to keep 0:16:05.760 --> 0:16:08.280 their minds on, from the FED, to earnings to these 0:16:08.360 --> 0:16:11.960 tensions with Ukraine. Do you think that a lot of 0:16:12.040 --> 0:16:15.680 this uh negative sentiment has further to get priced into 0:16:15.720 --> 0:16:18.800 this market. I think that the best way to look 0:16:18.840 --> 0:16:20.640 at this right now is through the lens of the 0:16:20.680 --> 0:16:24.400 growth value rotation, because we do know obviously the secular 0:16:24.440 --> 0:16:26.960 growth oriented sectors are massive weight in the S and 0:16:27.000 --> 0:16:29.400 P five hundred, at least they have been, and so 0:16:29.680 --> 0:16:32.280 what's bad for that trade is bad for the broader market. 0:16:32.360 --> 0:16:34.160 And when we look at the different you know, sort 0:16:34.160 --> 0:16:36.360 of indicators, I think about six or seven different things 0:16:36.440 --> 0:16:39.600 we're tracking there, we do generally think that that rotation 0:16:39.880 --> 0:16:41.440 is not done yet. And I'll give you one that 0:16:41.520 --> 0:16:44.440 we published on this morning, which is just looking at 0:16:44.480 --> 0:16:47.160 the valuation gap between the most expensive stocks in the 0:16:47.240 --> 0:16:49.600 market and the cheapest stocks in the market UM. And 0:16:49.680 --> 0:16:52.520 we've been looking at that relative ratio and where it 0:16:52.720 --> 0:16:56.240 is relative to pre pandemic levels UM and basically it's 0:16:56.240 --> 0:16:59.280 about fourteen percent away UM. So there is still some 0:16:59.360 --> 0:17:02.000 winter chop. There's been a significant draw down that's happened. 0:17:02.040 --> 0:17:04.200 We've made a lot of progress in terms of correcting 0:17:04.240 --> 0:17:06.399 that valuation gap, but there is still more room to go. 0:17:07.240 --> 0:17:10.440 A lot of attention obviously on the FED meeting this Wednesday, 0:17:10.520 --> 0:17:14.199 the decision coming there. You probably heard the commentary from 0:17:14.240 --> 0:17:17.399 Goldman Sachs saying that there is a risk that maybe 0:17:17.680 --> 0:17:20.600 even more rate hikes than the market has priced in 0:17:20.680 --> 0:17:22.960 at this point. What's your expectation on what we're going 0:17:23.000 --> 0:17:26.200 to hear from Chairman Powell and the Open Market Committee 0:17:26.240 --> 0:17:29.400 this week? So, you know, I never like to forecast 0:17:29.480 --> 0:17:30.840 what the Fed is going to say. I leave that 0:17:30.920 --> 0:17:32.960 to our economics team, but I will give the RBC 0:17:33.560 --> 0:17:36.040 economics and rate strategy team a lot of critics because 0:17:36.119 --> 0:17:38.680 they have been very, very early on the hawk is call. 0:17:38.800 --> 0:17:41.960 They've been telling us since around Thanksgiving to be prepared 0:17:42.040 --> 0:17:44.680 for a pretty you know, aggressive FED this year on 0:17:44.840 --> 0:17:46.560 both in terms of the hikes this year and in 0:17:46.640 --> 0:17:49.040 tree and they think the market is still in the 0:17:49.119 --> 0:17:51.440 process of catching up there. I will tell you that 0:17:51.560 --> 0:17:54.159 while our economists and rate strateg just have been prepared 0:17:54.200 --> 0:17:56.159 for this more hawk is tilt from the FED, equity 0:17:56.200 --> 0:17:59.119 investors U have really been playing a fierce game of 0:17:59.240 --> 0:18:02.719 catch up. And we saw even right before the holiday 0:18:02.760 --> 0:18:05.600 postal lapsed BERED meeting, most were most equity investors were 0:18:05.640 --> 0:18:07.960 looking for two Q lift off. So even you know, 0:18:08.040 --> 0:18:11.320 kind of this march timing up, equity investors have been 0:18:11.359 --> 0:18:13.879 coming around to that UM, but there were really, you know, 0:18:13.960 --> 0:18:16.920 sort of very very far behind where some economists and 0:18:17.200 --> 0:18:19.359 rate strategies were on the spred call to start the 0:18:19.440 --> 0:18:22.240 year UM. So you know, I'm hopeful that there's really 0:18:22.280 --> 0:18:23.879 not much that's going to come out this week that's 0:18:23.920 --> 0:18:26.399 been a surprise equity market participants. But we'll have to 0:18:26.440 --> 0:18:28.840 see there. Obviously, this is gonna be a very busy 0:18:28.920 --> 0:18:32.119 earnings week as well. It's been kind of uneven for 0:18:32.240 --> 0:18:35.000 the most part in the early going. What are you 0:18:35.080 --> 0:18:39.440 expecting when it comes to the couple hundred of SMP 0:18:39.720 --> 0:18:41.680 companies that are going to report in our last minute 0:18:41.720 --> 0:18:44.480 here look this week and next week or brutal we 0:18:44.520 --> 0:18:46.560 get well over two d S and P five hundred 0:18:46.600 --> 0:18:49.040 companies reporting. I would say so far, based on the 0:18:49.119 --> 0:18:52.480 early reporters to focus on strong demand. It just hasn't 0:18:52.560 --> 0:18:54.480 been the same tone as what we've heard the last 0:18:54.520 --> 0:18:58.119 few reporting season. Labor has been a hot button issue. 0:18:58.200 --> 0:19:00.680 I think that's replacing supply chains as the theme of 0:19:00.720 --> 0:19:03.919 the year UM. And also a macron disruption does appear 0:19:03.960 --> 0:19:06.840 to be does appear to have been greater than anticipated 0:19:07.240 --> 0:19:09.280 based on some of the early reporters that we've seen 0:19:09.320 --> 0:19:10.720 so far, so we'll look to see if that that 0:19:10.840 --> 0:19:13.200 trend continues and what comes up in the next few weeks. 0:19:13.480 --> 0:19:15.520 It sounds like a lot of head winds ahead as 0:19:15.600 --> 0:19:18.399 we head into the rest of this month. Lori Calvacina, 0:19:18.560 --> 0:19:21.960 Head of US Equity Strategy at RBC, as always, thanks 0:19:22.000 --> 0:19:24.040 for the insights, getting a set for what could be 0:19:24.200 --> 0:19:27.680 a very rocky trading week. As we watch futures move 0:19:27.920 --> 0:19:31.720 lower in the pre market. SMP futures now down thirteen points, 0:19:31.800 --> 0:19:35.880 now futures down seventy three, Nasdaq futures leading the declines 0:19:35.920 --> 0:19:39.199 there down sixty six points. The tenure Treasury is up 0:19:39.240 --> 0:19:42.440 ten thirty seconds now, the yield one point seven two percent, 0:19:42.520 --> 0:19:45.959 yield on the two year one percent. Even Bitcoin now 0:19:46.119 --> 0:19:51.879 thirty three thousand five dollars just ahead, diplomats, families ordered 0:19:51.960 --> 0:19:56.600 from Ukraine, and a department store chain gets serious takeover interest. 0:19:57.080 --> 0:19:59.200 All that and more as we check your top stories 0:19:59.280 --> 0:20:08.160 of the morning, you're listening to Bloomberg Daybreak Bloomberg eleven 0:20:08.240 --> 0:20:10.879 three oh weather sunny him your thirty five Today partly 0:20:10.920 --> 0:20:13.560 Sunday Tomorrow with a high near forty, sunny and cold 0:20:13.720 --> 0:20:17.040 Wednesday highs only in the mid twenties, currently thirty one 0:20:17.119 --> 0:20:23.760 degrees in cloudy in Central Park. Broadcasting live from the 0:20:23.840 --> 0:20:27.840 Bloomberg Interactive Broker's studio in New York, Bloomberg E Living 0:20:27.880 --> 0:20:32.240 Free on to Washington, d C. Bloomberg to Boston, Bloomberg 0:20:32.320 --> 0:20:35.520 one O six one, does San Francisco, Bloomberg NIM sixteen 0:20:35.600 --> 0:20:38.399 to the Country Sirius XM Chentle one nine ten, and 0:20:38.480 --> 0:20:41.840 around the globe the Bloomberg Business app in Bloomberg Radio 0:20:41.960 --> 0:20:51.240 dot Com. This is Bloomberg Daybreak. It's five thirty on 0:20:51.280 --> 0:20:54.560 Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow, 0:20:54.720 --> 0:20:57.040 and we're just about four hours away from the open 0:20:57.119 --> 0:20:58.879 of US trading. Let's get you up to date on 0:20:58.880 --> 0:21:00.480 the news. You need to know what the shour. We 0:21:00.600 --> 0:21:03.439 begin with the latest do political tensions between the US 0:21:03.560 --> 0:21:06.680 and Russia. The US has ordered families of diplomats to 0:21:06.760 --> 0:21:10.600 leave Ukraine and concerns about an invasion mount Bloomberg said. 0:21:10.640 --> 0:21:13.679 Baxter has the very latest. The signal is that Russia 0:21:13.720 --> 0:21:16.359 could invade at any time, and the State Department is 0:21:16.400 --> 0:21:20.240 issuing a statement saying quote the security conditions particularly along 0:21:20.359 --> 0:21:25.280 Ukraine's borders in Russia occupied Crimea and in Russia controlled 0:21:25.280 --> 0:21:30.080 eastern Ukraine are unpredictable and can deteriorate with little notice. 0:21:30.600 --> 0:21:33.399 They're also reports that the Biden administration is thinking about 0:21:33.480 --> 0:21:37.439 sending troops into the region. In San Francisco, I'm at Baxter, 0:21:37.480 --> 0:21:40.199