WEBVTT - Bloomberg Daybreak: January 6, 2022 - Hour 2 (Radio) 0:00:02.200 --> 0:00:05.279 By from the Bloomberg Interactive Brooker Studios as It's Bloomberg 0:00:05.360 --> 0:00:09.160 day Break for Thursday, January six two, coming up this hour. 0:00:09.400 --> 0:00:12.200 The sell off continues overseas after the Fed makes a 0:00:12.280 --> 0:00:15.480 hawk Is shift on policy. Bitcoin continues its slide to 0:00:15.560 --> 0:00:18.520 trade at the lowest level since December's flash crash. C 0:00:18.680 --> 0:00:22.440 DC Advisor's issue new guidance on COVID booster shots, faties 0:00:22.680 --> 0:00:25.760 and the pandemic has hospitals facing their worst staffing shortage 0:00:25.760 --> 0:00:28.480 in a year. New York City's Health commissioners suggests the 0:00:28.520 --> 0:00:31.280 city hasn't yet hits COVID peak. Plus it's the one 0:00:31.320 --> 0:00:33.919 year anniversary of the Capital Ryot. I'm like La bar 0:00:34.120 --> 0:00:37.440 more Ahead, John Stahn sports Kirie Irving made in season 0:00:37.520 --> 0:00:39.519 debut live and that's to have come from behind win 0:00:39.600 --> 0:00:44.680 in Indiana St John's when it's Piggy's Open. That's all 0:00:44.720 --> 0:00:49.280 straight ahead on Bloomberg day Break on Bloomberg Elevenoro, New York, 0:00:49.400 --> 0:00:54.120 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.280 --> 0:00:58.480 Bloomberg nine sixties, San Francisco, Sirius x M one nine 0:00:58.560 --> 0:01:01.600 Team and around the World Old on Bloomberg Radio Dot 0:01:01.600 --> 0:01:08.520 com and via the Bloomberg Business at good morning. I'm 0:01:08.560 --> 0:01:12.200 Nathan Hager and I'm Karen Moscow and looking at futures 0:01:12.240 --> 0:01:14.200 there mixed this morning. We're coming up to six o 0:01:14.280 --> 0:01:15.920 one on Wall Street, and we check the markets every 0:01:15.920 --> 0:01:18.600 fifteen minutes throughout the trading day. On Bloomberg, U s 0:01:18.640 --> 0:01:21.440 and P futures are a little change to higher now. 0:01:21.600 --> 0:01:25.360 Future is up eighty seven nasdag features down forty tenure, 0:01:25.440 --> 0:01:28.880 Treasury down seconds. Here's one point seven three percent. They 0:01:28.920 --> 0:01:31.440 yield on the two year point eight six percent, and 0:01:31.560 --> 0:01:35.040 I'm ex screwed. Oil is up one and a half percent. Nathan, Karen. 0:01:35.080 --> 0:01:37.360 Let's look at yesterday sell off. It saw the Nastack 0:01:37.440 --> 0:01:40.679 drop three point three per cent after the Fed signal. 0:01:40.760 --> 0:01:44.520 The more aggressive timeline for interest rate hikes. Brian Levitt 0:01:44.600 --> 0:01:47.680 is a global strategist at Investco. The early stages of 0:01:47.720 --> 0:01:50.920 a tightening cycle, and as we know, it's usually not 0:01:51.000 --> 0:01:53.720 the first rate hike that matters. It's usually the last one. 0:01:53.800 --> 0:01:57.040 And even though we're dealing with this today as we 0:01:57.120 --> 0:01:59.680 often do, when we start to see signs for the 0:01:59.680 --> 0:02:02.400 first move, I still think we're a long ways away 0:02:02.400 --> 0:02:05.480 from nat last Ray bight that ends the cycle. Investco 0:02:05.520 --> 0:02:08.160 Global strategist Brian Levitt says he sees the sell off 0:02:08.160 --> 0:02:10.880 as a buying opportunity. Ten your treasury yields this morning 0:02:10.919 --> 0:02:13.680 or trading at their highest level since April and Nathan 0:02:13.720 --> 0:02:16.160 the text sell off continued in Asia over night. Japan 0:02:16.280 --> 0:02:19.040 led it declines as any case led two point eight percent. 0:02:19.160 --> 0:02:22.000 We get the details from Bloomberg's Juliette Sally and Singapore. 0:02:22.040 --> 0:02:24.760 Good morning, Juliette, Good morning, Karen. The ms c I 0:02:24.880 --> 0:02:27.600 Asia Pacific Index fell for a third session in four 0:02:27.639 --> 0:02:30.079 with the gauge of tech shares among the worst performing. 0:02:30.360 --> 0:02:32.920 The Hang Sang Tech index fell for a fourth day. 0:02:33.400 --> 0:02:36.320 Yield spiked, with Japan's tenure at its highest since April. 0:02:36.560 --> 0:02:39.840 Japanese equity suffered their worst day since June, while Australia's 0:02:39.840 --> 0:02:42.360 market had its worst day in eleven months and Hong 0:02:42.440 --> 0:02:45.440 Kong reopening stocks were here as the city imposed tighter 0:02:45.480 --> 0:02:48.560 restrictions for the first time in almost a year. In Singapore. 0:02:48.639 --> 0:02:52.400 Juliet Sally Bloomberg Daybreak, Juliet thanks for also seeing bitcoin 0:02:52.480 --> 0:02:55.360 trade at its lowest level since December's flash crash. Right 0:02:55.360 --> 0:02:58.280 now it's at about forty eight hundred dollars. Let's get 0:02:58.320 --> 0:03:01.120 the latest from Bloomberg. Juned A Young, Ranita Nathan the 0:03:01.120 --> 0:03:03.919 fifth hawk is tilt saw Bitcoin fall by about thirty 0:03:03.960 --> 0:03:08.160 five dollars. Other cryptos like Ether and finance coin also 0:03:08.200 --> 0:03:12.200 slumped to Lowe's not seen since October. Bitcoins climb over 0:03:12.240 --> 0:03:15.960 the past few years coincided with strong stimulus measures by 0:03:15.960 --> 0:03:18.680 the FIT. Now the question is how will it react 0:03:18.720 --> 0:03:21.880 as the central bank pulls back on accommodation. Since it's 0:03:21.919 --> 0:03:26.400 all time high in November, bitcoin is down about Nita 0:03:26.520 --> 0:03:30.160 Young Bloomberg Daybreak, Ranita, thank you. Turning to the pandemic. Now, 0:03:30.280 --> 0:03:32.880 we have a new recommendation on booster shots from the 0:03:32.960 --> 0:03:37.240 CDC Agency advisor say vaccinated team should now get a 0:03:37.400 --> 0:03:40.920 third do sufvisor shot, Bloomberg said. Baxter has the story. 0:03:41.240 --> 0:03:43.600 The panel says it's important for twelve to seventeen year 0:03:43.640 --> 0:03:46.640 olds to get vaccinated to keep schools open. This adds 0:03:46.640 --> 0:03:49.920 twelve to fifteen year olds to the advisory already in place. 0:03:50.280 --> 0:03:53.640 Dr Rochelle Wilenski has final say, but has said that 0:03:53.680 --> 0:03:56.080 it's important to try and cut the severity of all 0:03:56.080 --> 0:03:58.680 macron and she says the spread of A macron has 0:03:58.720 --> 0:04:02.280 gone up in a straight Based on CDC genomic sequencing, 0:04:02.320 --> 0:04:06.400 we now estimate that O macron represents about percent of 0:04:06.480 --> 0:04:10.000 cases in the country. Says it's important for teens to 0:04:10.160 --> 0:04:14.600 get boosted in San Francisco. I'm at Baxter Bloomberg Gay Break. 0:04:14.800 --> 0:04:16.680 Thanks Zed. We continue to see the impact of O 0:04:16.760 --> 0:04:19.920 macron on the healthcare system. US hospitals are facing their 0:04:19.920 --> 0:04:22.960 worst staffing shortage in a year. According to the Department 0:04:23.000 --> 0:04:26.000 of Health and Human Services data, about twenty of hospitals 0:04:26.000 --> 0:04:30.640 report critical staffing levels. That's the most since December. Meantime, 0:04:30.720 --> 0:04:35.120 Nathan tennis star Novak Djokovic is making waves off the court. 0:04:35.360 --> 0:04:38.679 His chance to play for a tenth Australian Open title 0:04:38.920 --> 0:04:41.560 is in limbo. The country denied him entry and canceled 0:04:41.600 --> 0:04:43.920 his visa because he failed to meet requirements for an 0:04:43.960 --> 0:04:47.680 exemption to COVID vaccination rules. Scott Morrison is the Prime 0:04:47.720 --> 0:04:52.040 Minister of Australia rules rules and there are no special 0:04:52.200 --> 0:04:56.840 cases entry with a visa requires double vaccination or a 0:04:57.040 --> 0:05:00.560 medical exemption. I'm advised that such an ex engine was 0:05:00.600 --> 0:05:03.360 not in place and as a result he is subject 0:05:03.440 --> 0:05:06.719 to the sign rule. As anyone else. Australian Prime Minister 0:05:06.760 --> 0:05:09.719 Scott Morris and denized any suggestion that Djokovic is being 0:05:09.800 --> 0:05:12.800 singled out. The pandemic's impact on the labor market's also 0:05:12.800 --> 0:05:15.520 in focus, Karen. Today, we get data on jobless claims 0:05:15.520 --> 0:05:19.160 plus trade and services activity. Bloomberg's Viney del Judas reports 0:05:19.440 --> 0:05:22.640 economists a weekly jobless claims will probably halt their half 0:05:22.680 --> 0:05:26.520 century lows as employers filled record job openings. The labor 0:05:26.560 --> 0:05:31.120 market scored a solid recovery since the pandemic crash. Meantime, 0:05:31.160 --> 0:05:34.160 November's trade DAVA SI could tire a record as domestic 0:05:34.200 --> 0:05:38.560 demand rebounds. Also today, data on America's service industry should 0:05:38.560 --> 0:05:41.400 signal growth, though not as robustis November, when the I 0:05:41.600 --> 0:05:45.760 s M Non Manufacturing index set a record nuts Bloomberg 0:05:45.839 --> 0:05:48.359 day break. All right, Vinnie, thank you, Fed policy front 0:05:48.440 --> 0:05:51.480 end center. But there's also other news on the Central Bank. 0:05:51.560 --> 0:05:54.680 Sources tell us President Biden could pick former FED Governor 0:05:54.760 --> 0:05:57.960 Sarah bloom Moraskin for the Central Bank's top regulatory post. 0:05:58.120 --> 0:06:00.920 We get more from Bloomberg's Sterley Pellett. It's a move 0:06:01.000 --> 0:06:05.080 that would please senators demanding swift action on climate Change. 0:06:05.400 --> 0:06:08.080 Senator Sheldon white House, who has been active on the 0:06:08.080 --> 0:06:11.480 climate issue, tweeted that a Raskin nomination as the FEDS 0:06:11.600 --> 0:06:14.960 Vice Chair for Supervision would be quote good news. The 0:06:15.040 --> 0:06:18.400 Rhode Island Democrats says Raskin really gets it on climate, 0:06:18.640 --> 0:06:22.280 and Senator Ben Cardon of Maryland predicts Raskin will be 0:06:22.360 --> 0:06:27.200 easily confirmed in New York. Charlie Pellett Bloomberg Daybreak, Charlie, thanks, 0:06:27.200 --> 0:06:29.159 and speaking of climate, we have a new entry into 0:06:29.200 --> 0:06:32.840 the electric vehicle market. General Motors is introducing a battery 0:06:32.880 --> 0:06:36.080 powered pickup truck. CEO Mary Barra showed off the new 0:06:36.160 --> 0:06:40.359 Chevrolet Silverado at CES in Las Vegas. Meantime, when it 0:06:40.400 --> 0:06:43.080 comes to the overall industry, bar says, the chip shortage 0:06:43.120 --> 0:06:45.600 is easy, but it still is not resolved. I would 0:06:45.600 --> 0:06:48.200 say every quarter it gets a little bit better, and 0:06:48.279 --> 0:06:52.559 so we're seeing a better Q one than Q four, 0:06:52.600 --> 0:06:54.440 but we still think it's going to linger into the 0:06:54.480 --> 0:06:56.920 first half of this year, and we should be farther 0:06:57.000 --> 0:06:58.479 out of it by the end of this year, but 0:06:58.560 --> 0:07:01.640 we're not through it yet. GM CEO Mary Barrow made 0:07:01.640 --> 0:07:04.279 those comments in an interview with Bloomberg's David Weston. You 0:07:04.279 --> 0:07:08.000 can catch their full conversation at Bloomberg dot com. SMP 0:07:08.120 --> 0:07:10.440 futures are up four points down, futures up ninety three, 0:07:10.520 --> 0:07:13.320 NASTAC futures still lower by thirty points. To tend your 0:07:13.320 --> 0:07:17.240 treasury yield one point seven straight ahead, your latest local headlines, 0:07:17.520 --> 0:07:24.080 and a check of sports. This is Bloomberg. It sounds 0:07:24.080 --> 0:07:26.040 six o seven on Wall Street. We're thirty nine degrees 0:07:26.080 --> 0:07:28.600 in Central Park. I went to weather advisory and we're 0:07:28.600 --> 0:07:32.240 still dealing with the accident investigation in Jericho Turnpike in Mineola. 0:07:32.560 --> 0:07:35.280 Details coming up in traffic. First Michael Barr with more 0:07:35.320 --> 0:07:37.560 on what's going on in New York and around the world. Michael, 0:07:37.600 --> 0:07:40.360 thank you very much. Nathan. Americans are preparing today to 0:07:40.400 --> 0:07:43.600 mark the one year anniversary of the Capitol riot. President 0:07:43.680 --> 0:07:46.480 Joe Biden plans to speak about unity to a politically 0:07:46.560 --> 0:07:51.119 fractured nation. Yesterday, US Attorney General Merrick Garland spoke about 0:07:51.120 --> 0:07:54.960 the attack. Whether they were present that day or were 0:07:54.960 --> 0:08:00.160 otherwise criminally responsible for the assault on our democracy, you 0:08:00.200 --> 0:08:04.760 will follow the facts wherever they lead. Garland says more 0:08:04.800 --> 0:08:08.440 than seven people have been arrested for their roles in 0:08:08.480 --> 0:08:11.840 the Capital attack. The Tri State area is preparing for 0:08:11.880 --> 0:08:15.680 a new wave of winter weather. Bloomberg meteorologist Rob Caroline 0:08:15.680 --> 0:08:18.600 has the latest. Michael, the National Weather Services put at 0:08:18.600 --> 0:08:20.920 winter weather Advisory and effect for the Tri State area 0:08:20.920 --> 0:08:24.160 from midnight tonight through noon tomorrow. Storm system passing south 0:08:24.160 --> 0:08:26.800 of the region will produce snow around midnight tonight, should 0:08:26.880 --> 0:08:29.400 end by midday tomorrow. Tracks still a little bit up 0:08:29.400 --> 0:08:31.160 in the air as is the strength sell right now, 0:08:31.160 --> 0:08:32.760 it looks like at least a couple of inches as 0:08:32.800 --> 0:08:35.480 possible for the Tri State area. Will probably be refining 0:08:35.480 --> 0:08:37.199 the numbers over the next twenty four hours, but I 0:08:37.240 --> 0:08:39.760 could see at least one to three inches across the city, 0:08:39.960 --> 0:08:43.000 maybe a little bit more north and west of town. Michael, Rob, 0:08:43.040 --> 0:08:45.880 thank you very much. New York City Health Commissioner Dave 0:08:46.040 --> 0:08:49.760 Chotsky said the COVID data suggests the city hasn't yet 0:08:49.840 --> 0:08:53.199 hit a peak in the omicron fueled spike of coronavirus 0:08:53.280 --> 0:08:57.040 cases in recent weeks. Chosky says cases are still increasing 0:08:57.400 --> 0:09:00.679 because we are seeing unprecedented case count stirring the sam 0:09:00.880 --> 0:09:04.840 cron wave, as you know, over thirty cases a day 0:09:05.200 --> 0:09:07.720 on the seven day average, and we are seeing the 0:09:07.800 --> 0:09:12.000 impact in our hospitals. Dr Jotsky encouraged New Yorkers to 0:09:12.040 --> 0:09:15.720 continue getting booster shots and wear masks. New York Governor 0:09:15.760 --> 0:09:18.160 Kathy Hokel gave her first State of the State address 0:09:18.320 --> 0:09:21.280 or plans put health at the top of the to 0:09:21.360 --> 0:09:25.439 do list, including ten billion dollars to increase the medical workforce. 0:09:26.760 --> 0:09:30.440 A once in a lifetime pandemic demands once in a 0:09:30.480 --> 0:09:35.160 lifetime response, and that's why I'm setting an ambitious goal 0:09:35.240 --> 0:09:40.280 to grow our healthcare workforce by over the next five years. 0:09:40.520 --> 0:09:43.200 Governor hocol also call it for investments in housing and 0:09:43.240 --> 0:09:46.440 renewable energy. The judge in Galen maxwell Sex traffic and 0:09:46.520 --> 0:09:49.920 trial asked prosecutors and defense lawyers to briefer onto whether 0:09:49.920 --> 0:09:52.400 a new trial is needed over media comments made by 0:09:52.400 --> 0:09:55.520 a juror. Maxwell's lawyers told the judge that it would 0:09:55.559 --> 0:09:58.040 seek a new trial because the juror failed to disclose 0:09:58.320 --> 0:10:01.600 a possible bias against my swill. Global News twenty four 0:10:01.640 --> 0:10:03.600 hours a day on a rand on Bloomberg Quick Take 0:10:03.600 --> 0:10:05.920 Power about more than twenties seven under journalists, analysts, more 0:10:05.920 --> 0:10:09.520 than twenty countries. Michael bar this is Bloomberg naked alrighty 0:10:09.520 --> 0:10:15.679 thank you. Michael six ten on Wall Street Time for 0:10:15.720 --> 0:10:18.360 the Bloomberg Sports Update with John Stashow. All Right, anthan, 0:10:18.360 --> 0:10:20.840 there's been a lot of questions about Kyrie, I mean, 0:10:20.960 --> 0:10:23.680 like why he's refused to get the vaccine even with 0:10:23.720 --> 0:10:26.199 the mandate in New York. There's never been any question 0:10:26.280 --> 0:10:29.400 about his ability to play basketball. So there was Kyrie 0:10:29.440 --> 0:10:32.240 last minute Indiana making this season debut for the Nets. 0:10:32.280 --> 0:10:35.360 The team had originally said they didn't want him at all, 0:10:35.480 --> 0:10:37.200 it was only gonna be for games on the road, 0:10:37.240 --> 0:10:40.040 but they changed their mind and Kyrie scored twenty two 0:10:40.040 --> 0:10:42.800 points in thirty two minutes help Brooklyn to have come 0:10:42.840 --> 0:10:49.880 from behind one nine victory. So nervous and naturally as 0:10:49.960 --> 0:10:53.040 a performer, I still get nervous, but that first shot 0:10:53.160 --> 0:10:55.760 was like, man, I wanted to go in and then um, 0:10:55.760 --> 0:11:00.199 I settled down to the second half, you know, once 0:11:00.240 --> 0:11:04.360 I came back out and I'm just gonna do and 0:11:05.880 --> 0:11:08.120 Kevin Durant as always big part of the win. Katie 0:11:08.160 --> 0:11:09.880 scores thirty nine the next end of the three game, 0:11:09.960 --> 0:11:12.720 losing Stig Nixon. Celtics tonight at the Garden started at 0:11:12.760 --> 0:11:15.800 home at home. They'll play Saturday in Boston Rangers start 0:11:15.840 --> 0:11:18.920 a five game road trip tonight in Vegas. St. John's 0:11:18.920 --> 0:11:22.800 first game since December eighteenth. After four s postponements, the 0:11:22.840 --> 0:11:25.079 Red Storm finally with their big East opener and one 0:11:25.120 --> 0:11:29.400 a game for Julian Simpagny thirty four points, sixteen rebound. St. 0:11:29.440 --> 0:11:33.400 John's beat the Paul. Syracuse lost by one at Miami. 0:11:33.520 --> 0:11:37.200 Villanova won by thirty four over Creighton and Tonio Brown 0:11:37.240 --> 0:11:38.920 says he had an m r I and his ankle 0:11:39.000 --> 0:11:41.640 and it confirms he has an injury that prevented him 0:11:41.640 --> 0:11:44.760 from playing last Sunday. His Tampa Bay coach, Bruce Arians, 0:11:44.840 --> 0:11:47.439 wanted him to play. They argued, Brown, of course, then 0:11:47.480 --> 0:11:50.800 took off his jersey left MetLife Stadium. Arians then said 0:11:50.800 --> 0:11:53.000 Brown is no longer with the team, but the Bucks 0:11:53.000 --> 0:11:57.440 have still not released it. John Stash were bloom Group Sports. John, 0:11:57.520 --> 0:12:00.840 Thank you. Futures are mixed at the moment you're listening 0:12:01.200 --> 0:12:09.559 to Bloomberg Day Brand brought to you by Audie. Reflect 0:12:09.600 --> 0:12:12.120 on the past, celebrate the future during the season of 0:12:12.160 --> 0:12:15.280 Audie and drive off in the Audi model You've always wanted. 0:12:15.440 --> 0:12:23.840 Visit your Tri State area Audi dealer. Today markets headlines 0:12:23.920 --> 0:12:26.920 and breaking news twenty four hours a day at Bloomberg 0:12:26.960 --> 0:12:30.280 dot Com and Bloomberg Business at and at Bloomberg Quicktake, 0:12:30.480 --> 0:12:40.600 this's a Bloomberg Business flash and I'm Karen Moscow. And 0:12:40.720 --> 0:12:44.439 futures this morning are mixed s and P futures that 0:12:44.480 --> 0:12:48.480 will change. DAL futures up eighties six points, nasday futures 0:12:48.520 --> 0:12:51.040 down to forty nah in the tenure treasury down eight 0:12:51.040 --> 0:12:53.959 thirties seconds, the yeld one point seven three percent, and 0:12:54.040 --> 0:12:56.040 the yield on a two year point eight to six 0:12:56.080 --> 0:12:58.080 First said, we are coming up to six eighteen on 0:12:58.120 --> 0:13:01.000 Wall Street. Time of your daily Bloomberg Crypto update and 0:13:01.080 --> 0:13:03.520 with the latest in crypto news, here's Bloomberg's ready to 0:13:03.600 --> 0:13:07.800 young Renita Karen. Bitcoin is trading around forty three thousand today. 0:13:08.000 --> 0:13:11.280 It's lower after the FED sick of rate increases yesterday, 0:13:11.400 --> 0:13:15.320 which made Bitcoin fall by about thirty five dollars. Other 0:13:15.320 --> 0:13:18.520 cryptos like Ether and finance coin also slumped to low's 0:13:18.600 --> 0:13:22.240 not seen since October. Bitcoins climb over the past few 0:13:22.320 --> 0:13:26.320 years has coincided with the FED strong stimulus measures. Now, 0:13:26.360 --> 0:13:29.240 the question is how bitcoin will react as the central 0:13:29.240 --> 0:13:32.320 bank pulls back on accommodation. Since it's all time high 0:13:32.320 --> 0:13:36.200 in November, bitcoin has lost about twenty percent of its value. 0:13:36.559 --> 0:13:40.320 Other crypto sectors are also under pressure. This morning, bitcoin 0:13:40.400 --> 0:13:44.120 mining stocks tumbled as analysts reconsidered their outlooks after a 0:13:44.200 --> 0:13:47.959 record breaking year. Be Riley's Securities cut price targets on 0:13:48.120 --> 0:13:52.640 Marathon Digital and Riot Blockchain. And that's your Bloomberg crypto update. 0:13:52.960 --> 0:13:56.000 I'm reading the young Bloomberg day break. Karen, all right, 0:13:56.000 --> 0:13:58.080 ready to thank you. That's a Bloomberg business flash. Now 0:13:58.160 --> 0:14:00.360 here's Michael Barrow with more. I'm must going on around 0:14:00.360 --> 0:14:03.480 the world, Karen, thank you very much. Today President Joe 0:14:03.480 --> 0:14:06.880 Biden will mark the first anniversary of the Deadly Capital Insurrection, 0:14:07.240 --> 0:14:11.280 seeking to rally Democrats around voting rights legislation, AID say. 0:14:11.320 --> 0:14:14.480 The President will also take on former President Trump himself. 0:14:14.880 --> 0:14:18.080 Chicago public school classes are canceled again today after the 0:14:18.080 --> 0:14:22.000 teachers union and CPS officials failed to reach a deal 0:14:22.160 --> 0:14:26.320 over COVID protocols. Australian Open champion Novak Djokovic has been 0:14:26.360 --> 0:14:29.720 to nied entry into Australia. Federal officials over ruled the 0:14:29.800 --> 0:14:32.880 state vaccine exemption for the tennis star in the NBA 0:14:33.040 --> 0:14:35.800 Kyrie Irving. It is returned as the nets down, the Pacers, 0:14:37.480 --> 0:14:40.800 the Celtics, Wizards and Warriors all lost. Global news twenty 0:14:40.800 --> 0:14:43.520 four hours a day on air and on Bloomberg Quick Tank, 0:14:43.720 --> 0:14:46.560 powered by more than twenty seven under journalist and analyst 0:14:46.640 --> 0:14:49.080 more than a hundred twenty countries. I'm Michael Barr, and 0:14:49.160 --> 0:14:52.320 this is Bloomberg Nathan, Michael, thank you. We're coming up 0:14:52.360 --> 0:14:54.760 to six twenty on Wall Street line from the Bloomberg 0:14:54.760 --> 0:14:58.960 Interactive Broker's studios. This is Bloomberg Daybreak. Let's look a 0:14:59.000 --> 0:15:01.680 little bit more at the mark reaction to this more 0:15:01.760 --> 0:15:05.440 hawkish fed. Michael Howson is with us this morning, Chief 0:15:05.480 --> 0:15:09.360 market analyst at CMC Markets. Michael, it's great to speak 0:15:09.400 --> 0:15:11.840 with you this morning. I see the sell off continues 0:15:12.000 --> 0:15:13.880 in Europe, but we're looking at a bit of a 0:15:13.960 --> 0:15:18.360 pickup to some extent for US futures. Is this a 0:15:18.360 --> 0:15:20.920 little bit of dip buying or could we see more 0:15:20.920 --> 0:15:24.920 selling in US equities? Yeah? I think I think it's 0:15:24.920 --> 0:15:27.120 the big question you You talked about the Dale future 0:15:27.160 --> 0:15:29.320 is actually being higher. In the nes Dack future has 0:15:29.360 --> 0:15:31.520 been lower, and I think that's where the pressure is 0:15:31.600 --> 0:15:35.040 likely to come. It's in the more highly valued areas 0:15:35.080 --> 0:15:38.960 of the market, namely the nes dack. Not for nothing 0:15:39.080 --> 0:15:41.640 have we seen big declines in that on the back 0:15:41.680 --> 0:15:45.320 of higher bond yields. What surprises me, I think more 0:15:45.360 --> 0:15:49.440 than anything, is why it's a surprise that some Fed 0:15:49.480 --> 0:15:54.680 officials will be discussing the prospect of bannet sheet reduction. Ultimately, 0:15:55.720 --> 0:15:59.400 I think talking about bonnet sheet reduction is a long 0:15:59.400 --> 0:16:03.400 way shut to actually doing it. And let's not forget Nathan, 0:16:03.920 --> 0:16:06.880 the Fed is still adding to its balant sheet. It 0:16:06.920 --> 0:16:10.960 would be very surprising to me if the Fed, after 0:16:12.280 --> 0:16:15.800 ending its taper would suddenly do an abrupt handbrake turn 0:16:16.400 --> 0:16:19.160 and then start reducing the size of this ballas sheet 0:16:19.200 --> 0:16:22.520 so quickly. So I think there's an element here that 0:16:23.840 --> 0:16:27.440 um markets are afraid that the Fed might be minded 0:16:27.880 --> 0:16:33.119 two probably tightened too quickly because of concerns about much 0:16:33.240 --> 0:16:37.240 more persistent inflationary pressures. And I'm not seeing any evidence 0:16:37.280 --> 0:16:39.280 of that, because if you look at this week's data, 0:16:40.040 --> 0:16:43.120 particularly and the price is paid, we've actually seen prices 0:16:43.160 --> 0:16:47.920 start to come down. So do you think that this 0:16:48.040 --> 0:16:51.240 sell off could go further? Is this the case of 0:16:51.400 --> 0:16:54.840 investors sort of trying to get ahead of a potential 0:16:55.040 --> 0:16:57.800 balance sheet unwind here and if so, how much further 0:16:57.880 --> 0:17:02.600 could things go. Well, there's not to get apple here, 0:17:02.720 --> 0:17:07.159 three trillion dollar market gap earlier this week, so I 0:17:07.200 --> 0:17:09.320 think there's certainly room for a little bit of profit 0:17:09.400 --> 0:17:14.920 taking given current valuations. Let's not forget the SMP record 0:17:15.000 --> 0:17:19.040 high on the first trading day of this year. No, obviously, 0:17:19.440 --> 0:17:23.040 interest rates are going to go up. The bigger question 0:17:23.119 --> 0:17:25.959 for me is not more a case of when the 0:17:26.000 --> 0:17:30.879 first rate hike occurs, but how quickly they occur and 0:17:31.080 --> 0:17:35.080 how aggressive they are. And given the current uncertainty, I 0:17:35.160 --> 0:17:38.800 think what we're seeing today is indicative of what's been 0:17:39.040 --> 0:17:41.159 seeing over the course of the past couple of months. 0:17:41.160 --> 0:17:44.160 We've seen big moves to the downside. We've then seen 0:17:44.200 --> 0:17:49.000 subsequent rebounds back to the upside. Ultimately, the picture is 0:17:49.000 --> 0:17:52.040 still very, very uncertain, and certainly I think if you 0:17:52.040 --> 0:17:56.119 look at the SMP five um, we're still within touching 0:17:56.119 --> 0:17:59.639 distance of those record highs. Could we go lower, absolutely, 0:17:59.640 --> 0:18:01.199 I mean we could fall all the way back to 0:18:01.720 --> 0:18:04.880 four thousand, five hundred, which was essentially the lows back 0:18:04.880 --> 0:18:07.040 at the end of November in the beginning of December, 0:18:07.080 --> 0:18:09.280 but that doesn't necessarily mean that we're going to come 0:18:09.320 --> 0:18:13.160 crushing off SI. A note this morning from Goldman Sachs 0:18:13.200 --> 0:18:16.680 strategist saying European stocks could be a haven play against 0:18:16.720 --> 0:18:19.359 higher US rates. What do you make of that? Is 0:18:19.400 --> 0:18:22.240 that how you see it? That's certainly how I see it. 0:18:22.320 --> 0:18:24.119 Certainly in terms of the foot See one dred. If 0:18:24.119 --> 0:18:26.240 you look at evaluations and say, for example, the Footsie 0:18:26.280 --> 0:18:29.000 one D or even you know, say for example the 0:18:29.000 --> 0:18:32.359 footspe MID, the Italian stock market, UM, A lot of 0:18:32.359 --> 0:18:36.119 these markets have seriously underperformed over the course of the 0:18:36.119 --> 0:18:40.240 past two or three years compared to US stocks. Certainly, 0:18:40.280 --> 0:18:42.080 I would argue that U S stocks are much more 0:18:42.119 --> 0:18:44.200 profit when you look at them on a on a 0:18:44.240 --> 0:18:46.280 evaluation basis. So I think there's an awful lot of 0:18:46.320 --> 0:18:49.840 merit in that argument, given the fact that the ECB 0:18:50.200 --> 0:18:53.040 is unlikely to be raising rates anytime soon, and even 0:18:53.080 --> 0:18:55.399 if they do, they're not going to be raising them 0:18:55.440 --> 0:18:59.040 much above zero. Only about thirty seconds left here, Michael, 0:18:59.040 --> 0:19:00.879 But do you see this as a potential spark for 0:19:00.880 --> 0:19:03.639 a firm rotation from growth to value in the US? 0:19:05.600 --> 0:19:08.280 I think there would could certainly be the catalyst for it. 0:19:08.600 --> 0:19:11.280 I think in terms of the Nastack. There is certainly 0:19:11.280 --> 0:19:15.840 potential for further consolidation. If I can say that, I'm 0:19:15.840 --> 0:19:17.399 not going to say it's gonna come crushing off, but 0:19:17.480 --> 0:19:19.879 certainly I think it's going to be very difficult for 0:19:20.000 --> 0:19:22.480 the Nurstack to make new record hires in the short 0:19:22.480 --> 0:19:25.560 to medium term. Thanks again for coming on with us, Michael, 0:19:25.560 --> 0:19:27.760 great to speak with you once again. Michael Houston his 0:19:27.880 --> 0:19:31.719 chief market analyst at CMC Markets. Taking a look at 0:19:31.760 --> 0:19:35.560 markets right now. SMP futures are little change. DAL futures 0:19:35.640 --> 0:19:38.720 are still higher, up seventy six points. The Nastack futures 0:19:39.320 --> 0:19:42.280 leading the declines in the US market this morning. They're 0:19:42.320 --> 0:19:45.280 down sixty six points. The tenure Treasury is up three 0:19:45.359 --> 0:19:48.000 thirty seconds, and yield on the benchmark tenure note is 0:19:48.080 --> 0:19:51.239 one point seven three percent. Just ahead, we'll get more 0:19:51.280 --> 0:19:53.840 on the sharp market reaction to the Fed minutes and 0:19:54.080 --> 0:19:58.520 teams coming a step closer to fiser boosters. As we 0:19:58.600 --> 0:20:02.840 check your top stories the morning. This is Bloomberg Daybreak. 0:20:02.960 --> 0:20:08.720 Good morning, Bloomberg eleven three oh weather. We'll have a 0:20:08.720 --> 0:20:10.120 mix of sun and clouds and a high in your 0:20:10.119 --> 0:20:12.320 forty today winter weather and Vine Street with one to 0:20:12.400 --> 0:20:15.440 three inches of snow tomorrow morning yes and below thirties, 0:20:15.520 --> 0:20:18.440 mostly sunny, low thirties from Saturday. Right now thirty nine 0:20:18.440 --> 0:20:26.520 in Central Park, broadcasting live from the Bloomberg Interactive Brokers 0:20:26.560 --> 0:20:29.960 Studio in New York. Bloomberg E Living Free to Washington, 0:20:30.040 --> 0:20:34.120 d C. Bloomberg to Boston, Bloomberg one O six one 0:20:34.240 --> 0:20:37.720 to San Francisco, Bloomberg NUN sixty to the country Sirius 0:20:37.840 --> 0:20:41.040 XM CHADO one nineteen and around the globe the Bloomberg 0:20:41.080 --> 0:20:44.960 Business app and Bloomberg Radio dot Com. This is Bloomberg 0:20:45.080 --> 0:20:52.800 Daybreak at six thirty on Wall Street. From morning. I'm 0:20:52.880 --> 0:20:55.919 Nathan Hager and I'm Karen Moscow. We are just about 0:20:55.960 --> 0:20:58.600 three hours away from the open of US trading. Let's 0:20:58.600 --> 0:20:59.879 get you up to date on the news you need 0:21:00.000 --> 0:21:02.520 to know at this hour. Right now, US futures are 0:21:02.600 --> 0:21:06.200 mixed following yesterday's tax sell off. Tenure yields are trading 0:21:06.200 --> 0:21:08.840 near their highest level since April after the FED signal 0:21:08.840 --> 0:21:12.200 the more aggressive timeline for interest rate hikes. Brian Levitt 0:21:12.200 --> 0:21:16.560 is a global strategist at Investco. We should expect volatility 0:21:16.560 --> 0:21:20.360 to return to markets when we get unexpected results at 0:21:20.359 --> 0:21:22.320 of central bankers, so that tends to be where draw 0:21:22.359 --> 0:21:26.679 downs and volatility emerges out of unexpected policy decisions and 0:21:26.760 --> 0:21:31.000 policy uncertainty. Invest Global strategist Brian Levitt says he sees 0:21:31.040 --> 0:21:33.639 this sell off as a buying opportunity caught up in 0:21:33.720 --> 0:21:36.480 yesterday sell off careen where the so called meme stocks 0:21:36.480 --> 0:21:37.960 and we get more on that side of the market 0:21:38.000 --> 0:21:42.880 from Bloomberg's Charlie Pellett, amc down eleven percent, games stop down, 0:21:44.240 --> 0:21:47.080 and that helps send the basket of meme stocks tracked 0:21:47.080 --> 0:21:50.920 by Bloomberg to its lowest clothes since January twenty one, 0:21:50.960 --> 0:21:53.280 when the market was swept up in the rise of 0:21:53.560 --> 0:21:58.160 retail trader driven surges. The route tracked other retail favorites lower, 0:21:58.359 --> 0:22:01.920 including bed Bath and Beyond and Stem Inc, which both 0:22:01.960 --> 0:22:06.040 fell about eleven percent in New York. Charlie Pellot Bloomberg 0:22:06.119 --> 0:22:08.720 daybreak a right, Charlie, thank you. We're also seeing bitcoin 0:22:08.800 --> 0:22:12.640 training at its lower level since December's flash crash. Right 0:22:12.680 --> 0:22:15.920 now is said forty two eight hundred dollars. And here 0:22:15.920 --> 0:22:18.680 with Morris Bloomberg's re need a young Karen the fitz 0:22:18.720 --> 0:22:21.760 Hawk is tilt saw bitcoin fall by about thirty five 0:22:21.840 --> 0:22:25.520 hundred dollars. Other cryptos like Ether and finance coin also 0:22:25.600 --> 0:22:29.359 slumped to lows not seen since October. The entire sector 0:22:29.440 --> 0:22:32.840 is pretty much under pressure. Bitcoin mining stocks tumbled as 0:22:32.880 --> 0:22:36.840 analysts reconsider their outlooks after a record breaking year. Since 0:22:36.840 --> 0:22:39.919 it's all time high in November, bitcoin is down about 0:22:39.960 --> 0:22:43.520