WEBVTT - Bloomberg Daybreak: January 14, 2022 - Hour 2 (Radio) 0:00:02.560 --> 0:00:06.320 Live from the Bloomberg Interactor Burger Studios is Bloomberg Daybreak 0:00:06.360 --> 0:00:10.520 for Friday, January fourteen two. Coming up this hour. US 0:00:10.600 --> 0:00:14.360 futures stabilize after yesterday sell off. Tech is under pressure 0:00:14.400 --> 0:00:17.920 as fedeficials build the case for higher interest rates. Banks 0:00:17.920 --> 0:00:20.640 are in focus. Is JP Morgan's City Group in Wells 0:00:20.640 --> 0:00:23.840 Fargo report earnings at a major setback for President Biden's 0:00:24.000 --> 0:00:27.400 vaccine mandate. New Jersey Governor Murphy signs an abortion rights 0:00:27.440 --> 0:00:29.480 bill in the state, plus a push to eliminate the 0:00:29.480 --> 0:00:31.920 Philippus to rule is all but dead in the Senate. 0:00:32.360 --> 0:00:35.400 Michael barn more ahead, I'm done stas Sharon sports the 0:00:35.479 --> 0:00:38.159 next lost the Rangers one, the Islanders beat the Devils 0:00:38.159 --> 0:00:41.839 that in Australia, Novak Djokovic had as visa taken away again. 0:00:44.040 --> 0:00:47.840 That's all straight ahead on Bloomberg day Break on Bloomberg 0:00:47.880 --> 0:00:52.960 Elimen Rio, New York, Bloomberg one, Washington, d C, Bloomberg one, 0:00:53.000 --> 0:00:57.400 O six one, Boston, Bloomberg nine sixty, San Francisco, Syrius 0:00:57.600 --> 0:01:00.840 x M one nineteen and around the world along Bloomberg 0:01:00.920 --> 0:01:07.759 Radio dot Com and via the Bloomberg Business Set. Good 0:01:07.760 --> 0:01:10.679 Friday morning, I'm Nathan Hagar and I'm fair in Moscow, 0:01:10.720 --> 0:01:13.280 and US futures are higher. This morning, I had a 0:01:13.280 --> 0:01:15.360 big bank earnings. We're coming up to six o one 0:01:15.360 --> 0:01:17.319 on Wall Street, and we check the markets every fifteen 0:01:17.319 --> 0:01:20.520 minutes throughout the trading day on Bloomberg. Right now, SNP 0:01:20.720 --> 0:01:23.880 futures or upper body points down futures up ninety two. 0:01:24.200 --> 0:01:27.200 Nasdack futures are that will change the decks in Germany's 0:01:27.240 --> 0:01:30.760 down sixtentsive upper set ten. Your treasury down eleven thirty seconds, 0:01:30.840 --> 0:01:33.120 yield one point seven four percent, and they yield on 0:01:33.200 --> 0:01:36.560 the two year point nine three percent. Nathan Karen, We're 0:01:36.560 --> 0:01:38.880 coming off another day of declines on Wall Street. The 0:01:38.920 --> 0:01:41.200 tech heavy NASDACK posted a loss of two and a 0:01:41.200 --> 0:01:44.440 half percent after several FETE officials beat the drum for 0:01:44.560 --> 0:01:47.720 higher interest rates. It all started with Governor Lyle Brainerd, 0:01:47.720 --> 0:01:51.360 as part of her Senate confirmation hearing, our monetary policy 0:01:51.480 --> 0:01:55.200 is focused on getting inflation back down to two percent 0:01:55.280 --> 0:01:58.600 while sustaining a recovery that includes everyone. This is our 0:01:58.680 --> 0:02:01.680 most important task. Lole Branard says the Fed could raise 0:02:01.760 --> 0:02:04.320 rates as soon as March. Consensus calls for three or 0:02:04.400 --> 0:02:07.360 four hikes from the FED this year. Governor Christopher Waller 0:02:07.360 --> 0:02:10.280 calls three increases a good baseline at least for now. 0:02:10.600 --> 0:02:12.760 We'll have to wait and see what inflation looks like 0:02:12.840 --> 0:02:14.920 in the second half of the year. If it continues 0:02:14.960 --> 0:02:17.360 to be high, the case will be made for four, 0:02:17.520 --> 0:02:20.359 maybe five hikes. Governor Chris Waller made the comments in 0:02:20.400 --> 0:02:23.480 an interview with Bloombergs Kathleen Hayes. He joins FED chiefs 0:02:23.480 --> 0:02:26.000 Patrick Harker and Jim Bullard, who have also floated the 0:02:26.040 --> 0:02:29.720 idea of four increases. Chicago Fed President Charles Evans is 0:02:29.760 --> 0:02:32.920 more conscious he wants more inflation data before committing to 0:02:32.960 --> 0:02:36.120 a March liftoff. We need to get inflation back down 0:02:36.760 --> 0:02:40.520 in the ballpark of our two percent objective. UM. I 0:02:40.560 --> 0:02:43.560 think it's probably going to be UM at the end 0:02:43.600 --> 0:02:46.519 of this year. It's going to be elevated. It's UM. 0:02:46.560 --> 0:02:48.400 I don't think it's gonna be three percent at the 0:02:48.440 --> 0:02:50.400 end of this year, and I think it's more likely 0:02:50.400 --> 0:02:52.240 to be two and a half as measured by the 0:02:52.639 --> 0:02:55.720 personal consumption expenditure. So Charles Evans will be watching that 0:02:55.840 --> 0:02:58.840 PC inflation data closely. We get the next reading on 0:02:58.960 --> 0:03:01.120 that at the end of this month. While Nakan, the 0:03:01.120 --> 0:03:03.400 White House has set to add some new faces at 0:03:03.400 --> 0:03:06.239 the FED. Now, President Biden as selected as picks to 0:03:06.280 --> 0:03:09.000 fill open sea to the Central Bank, and Bloomberg's Rneda 0:03:09.080 --> 0:03:11.360 Young joins us live with the lightest Good Morning Renda, 0:03:11.440 --> 0:03:14.760 Good morning Karen Bloomberg. Sources say President Biden is planning 0:03:14.800 --> 0:03:17.960 to nominate Sarah bloom Raskin to the fits top banking 0:03:18.000 --> 0:03:22.880 regulator spot. He'll also announce economists Fellow Philip Jefferson and 0:03:22.960 --> 0:03:25.960 Lisa Cook as picks for governors. Cook would be the 0:03:26.000 --> 0:03:28.919 first black woman on the Fed's board and Jefferson would 0:03:28.960 --> 0:03:31.880 be the fourth black man. The picks would help Biden 0:03:31.960 --> 0:03:34.800 keep his promise to improve diversity at the Central Bank. 0:03:35.240 --> 0:03:38.600 His nominations would also add experts focused on a broad 0:03:38.760 --> 0:03:41.920 job market recovery as they seek to tame the hottest 0:03:41.960 --> 0:03:45.160 inflation in a generation. Live in New York, i'm re 0:03:45.360 --> 0:03:47.520 need a Young Bloomberg daybreak, and we need a thanks. 0:03:47.600 --> 0:03:49.840 We get more data for the FED to didjust this morning. 0:03:49.920 --> 0:03:52.520 Retail sales figures for December or due out at eight 0:03:52.600 --> 0:03:54.920 thirty am all Street time. Let's get a preview now 0:03:54.960 --> 0:03:58.040 from Bloomberg's Michael McKee. The o Macron variant will weigh 0:03:58.040 --> 0:04:00.720 on the retail sales numbers as many ours and restaurants 0:04:00.720 --> 0:04:03.960 were forced to close during the holiday season. Gasoline prices 0:04:04.000 --> 0:04:07.240 and auto sales also decline dealers struggling to get cars, 0:04:07.520 --> 0:04:10.360 but it does appear core sales were strong, everything from 0:04:10.360 --> 0:04:14.160 toys to sporting goods and clothing. Americans incomes were bolstered 0:04:14.160 --> 0:04:17.839 by government fiscal aid and rising wages, particularly at the 0:04:17.880 --> 0:04:21.120 lower end of the income spectrum. Then not so necessarily 0:04:21.160 --> 0:04:25.400 good news is retail sales will also benefit from soaring inflation, 0:04:25.800 --> 0:04:30.680 as sales are reported in dollar figures. Michael McKee, Bloomberg Daybreak, Michael, 0:04:30.680 --> 0:04:33.400 thank you. Earnings also come into focus today. Big banks 0:04:33.480 --> 0:04:36.280 kick off the season with results droughout. This morning Bloomberg 0:04:36.279 --> 0:04:39.880 Global Finance Correspondence and Ali Bousak has more. JP Morgan 0:04:40.040 --> 0:04:44.680 is kicking off earnings and expectations are high that consumer 0:04:45.000 --> 0:04:48.320 loan growth is coming back and that trading will hold 0:04:48.400 --> 0:04:51.320 up even as it starts to moderate and even decline 0:04:51.320 --> 0:04:54.040 in many places on Wall Street. With that said, we're 0:04:54.080 --> 0:04:57.320 also looking at Citigroup and Wells Fargo earnings, not only 0:04:57.320 --> 0:04:59.719 to see that the consumer is returning, but also to 0:04:59.760 --> 0:05:03.120 make sure that those banks can keep costs down as 0:05:03.160 --> 0:05:05.960 they are more under pressure with wages rising and more 0:05:06.000 --> 0:05:08.840 investment in technology. Well as Fargo in City Group have 0:05:08.960 --> 0:05:12.560 regulatory risks as well that investors will want updates on. 0:05:13.160 --> 0:05:16.159 In New York, Sali Basic Bloomberg Day Break, Shinali thanks 0:05:16.240 --> 0:05:18.360 now untill the latest on the pandemic and a major 0:05:18.440 --> 0:05:22.080 legal setback for President Biden. The Supreme Court has blocked 0:05:22.120 --> 0:05:24.640 his rule that would have required large companies to mandate 0:05:24.720 --> 0:05:28.240 vaccines or weekly testing for employees. We got reaction from 0:05:28.320 --> 0:05:31.320 Labor Secretary Marty Walsh. We just have to continue our 0:05:31.320 --> 0:05:33.600 efforts with the President laid out. You know, is this 0:05:33.680 --> 0:05:35.720 a setback. I wouldn't take the step back if it 0:05:35.760 --> 0:05:37.880 should be. A disappointment is what it is. But we're 0:05:37.880 --> 0:05:39.839 going to continue to do everything we can. I'm going 0:05:39.880 --> 0:05:42.600 to continue everything I can as Secretary of Labor to 0:05:42.680 --> 0:05:45.119 the ninth States of America to make sure every single 0:05:45.160 --> 0:05:48.880 worker in America is safe. Labor Secretary Marty Walsh spoke 0:05:48.880 --> 0:05:51.839 with our Washington correspondent Joe Matthew on Bloomberg Sound on 0:05:52.120 --> 0:05:55.880 Catch the program weekdays at five pm Eastern on Bloomberg Radio. Well, 0:05:55.920 --> 0:05:58.520 when it comes to action NATed employees, Nathan City Group 0:05:58.560 --> 0:06:01.480 is out with it to data the banks. It's US 0:06:01.520 --> 0:06:04.920 employees have complied with its vaccine mandate, and the bank 0:06:05.040 --> 0:06:08.960 expects more workers to comply with its order before today's deadline. 0:06:09.120 --> 0:06:11.599 Cities mandate is one of the strictest on Wall Street, 0:06:11.600 --> 0:06:15.120 making COVID vaccines a condition of employment. Meantime, Karen the 0:06:15.120 --> 0:06:17.840 White House is ramping up other plans to tackle the pandemic. 0:06:17.839 --> 0:06:20.839 President Biden is doubling his order of rapid COVID tests 0:06:20.880 --> 0:06:23.440 to send to Americans. He says he'll also distribute high 0:06:23.480 --> 0:06:26.839 quality masks. Where I'm making high quality masks available to 0:06:26.880 --> 0:06:30.800 American people in the American people for free. You know, 0:06:30.839 --> 0:06:33.640 I know we all wish that we could finally be 0:06:33.720 --> 0:06:37.640 done with wearing masks. I get it, but they're they're 0:06:37.640 --> 0:06:40.120 in a really important tool. President Biden says, I'll have 0:06:40.120 --> 0:06:43.480 a formal announcement on distributing masks next week. Turning to 0:06:43.520 --> 0:06:46.279 the markets now, Nathan Crypto is in focus today. Doage 0:06:46.279 --> 0:06:49.000 coin searched as much as fifteen percent this morning after 0:06:49.040 --> 0:06:52.000 Elon Musk said it can be used to buy Tesla Merchandise. 0:06:52.360 --> 0:06:54.800 Musk is a frequent booster of doge coin on social 0:06:54.839 --> 0:06:57.160 media and as hinted at the move for some time. 0:06:57.400 --> 0:06:59.840 And Tiger Woods is in financial news this morning. Karen, 0:06:59.880 --> 0:07:02.200 a blank check company backed by the golf Stars, filed 0:07:02.200 --> 0:07:04.240 to raise a hundred fifty million dollars in an I 0:07:04.320 --> 0:07:07.000 p O. The company plans to seek a merger target 0:07:07.040 --> 0:07:09.720 in the sports or health tech sectors with an enterprise 0:07:09.760 --> 0:07:12.400 value of as much as a billion dollars. Tiger Woods 0:07:12.480 --> 0:07:15.720 is the lead investor in the special purpose acquisition company. 0:07:15.800 --> 0:07:18.520 Straight ahead your latest local headlines in the check of sports. 0:07:18.560 --> 0:07:24.440 This is Bloomberg. And at six oh seven on Wall 0:07:24.440 --> 0:07:26.680 Street where forty degrees in Central Park, we had a 0:07:26.720 --> 0:07:28.960 broken down vehicle on the way to Kennedy Airport westbound 0:07:28.960 --> 0:07:31.520 Belt Parkway under the Van Wick. Details coming up from 0:07:31.560 --> 0:07:34.280 Peter Van First. Michael Barr is here with more on 0:07:34.360 --> 0:07:36.040 what's going on in New York and around the world. 0:07:36.040 --> 0:07:38.960 Come Michael, Good morning, Nathan. New York City Mayor Eric 0:07:39.000 --> 0:07:42.840 Adams said he is considering a temporary remote option for 0:07:42.920 --> 0:07:45.800 the city's public schools and a stark reversal of his 0:07:45.880 --> 0:07:49.040 position to keep kids learning in person. Despite a surge 0:07:49.040 --> 0:07:53.080 in COVID cases. We want to provide the safest place 0:07:53.160 --> 0:07:56.280 for our children, and we want to have our children 0:07:56.400 --> 0:07:59.920 in school, Adam says, though a substantial number of Chill 0:08:00.040 --> 0:08:03.800 Dren's parents aren't bringing their kids to school. According to 0:08:03.840 --> 0:08:07.360 city data, only about of the city's one million students 0:08:07.360 --> 0:08:11.240 have been attending classes since schools reopened after the winter break. 0:08:11.280 --> 0:08:15.760 On January three, New Jersey Democratic Governor Phil Murphy, anticipating 0:08:15.800 --> 0:08:18.600 possible changes to the Roe v. Wade ruling from the U. S. 0:08:18.600 --> 0:08:22.280 Supreme Court, signed an abortion rights bill into state law. 0:08:22.800 --> 0:08:26.280 Murphy signed a measure fulfilling a campaign pledge made in 0:08:26.320 --> 0:08:28.720 the lead up to his re election victory in November. 0:08:29.040 --> 0:08:32.360 On Twitter, Murphy posted his comments during a signing ceremony 0:08:32.360 --> 0:08:35.440 in te Neck. Regardless of whether or not the Supreme 0:08:35.480 --> 0:08:39.920 Court overturns Roe v. Wade, New Jersey's position and supporting 0:08:39.920 --> 0:08:43.839 the right to reproductive autonomy will remain clear and unchanged. 0:08:44.160 --> 0:08:47.320 Governor Murphy also says, in addition to abortion rights, the 0:08:47.320 --> 0:08:51.640 bill also specifically outlines the right to access contraception as 0:08:51.640 --> 0:08:55.000 well as to carry a pregnancy to term. President Biden 0:08:55.080 --> 0:08:57.640 is now casting some doubt on whether his voting rights 0:08:57.640 --> 0:09:01.840 bill can get done, Bloomberg said. Baxter reports, if it 0:09:01.880 --> 0:09:03.480 can be done, it will have to be approached in 0:09:03.520 --> 0:09:06.480 a different way. After weeks of talks with senators, Cinema 0:09:06.520 --> 0:09:10.120 and Mansion both say that changing the filibuster rule is 0:09:10.120 --> 0:09:12.760 not an option changes to make the Senate work better, 0:09:15.559 --> 0:09:18.840 But the President says the fight is not over. As 0:09:18.880 --> 0:09:21.360 long as I have a breath in me, as long 0:09:21.400 --> 0:09:23.280 as I'm in the White House, as long as I'm 0:09:23.320 --> 0:09:26.520 engaged at all, I'm going to be fighting to change 0:09:26.559 --> 0:09:29.720 the way these legislatures have moving. The President did meet 0:09:29.760 --> 0:09:33.080 with both before decisions were made in San Francisco. I'm 0:09:33.120 --> 0:09:35.480 at Baxter Bloomberg Gay Break. Leaders of the far rank 0:09:35.520 --> 0:09:38.720 group the oath Keepers, were charged for conspiring to prevent 0:09:38.720 --> 0:09:41.560 the certification of Joe Biden as president by joining in 0:09:41.559 --> 0:09:44.960 the attack on the Capitol last year. The indictment charges 0:09:45.040 --> 0:09:48.040 Elmer Stewart Rhodes, described as the founder of the group, 0:09:48.360 --> 0:09:52.720 and ten other individuals with seditious conspiracy and other charges. 0:09:53.080 --> 0:09:55.680 Global News twenty four hours a day on here and 0:09:55.880 --> 0:09:59.160 on Bloomberg quick Take, powered by more than twenty seven 0:09:59.240 --> 0:10:02.640 under journalists and analysts. More than twenty countries. I'm Michael Barr. 0:10:02.760 --> 0:10:09.920 This is Bloomberg Nathan. Thanks Michael, coming up to a 0:10:09.960 --> 0:10:12.040 six ten on Wall Street. Time for the Bloomberg Sports 0:10:12.080 --> 0:10:15.080 Update with John Statshop acts Dathan. This Novak Djokovic story 0:10:15.160 --> 0:10:17.880 is like when fans watch him play tennis. In their 0:10:17.880 --> 0:10:22.040 head goes back and forth. Last week, Djokovic, despite being unvaccinated, 0:10:22.080 --> 0:10:24.600 received a medical exempt you to play the Australian Open. 0:10:24.600 --> 0:10:27.240 He flew to Melbourne and promptly had his visa taken away. 0:10:27.600 --> 0:10:29.880 There was a mistake in the pay for work. Monday 0:10:29.880 --> 0:10:33.760 had Judge reinstated it. Now the Immigration Minister, acting in 0:10:33.840 --> 0:10:36.920 what he called the public interest, removed the visa again, 0:10:37.000 --> 0:10:40.600 and now Djokovic's lawyers are said to be planning another appeal. 0:10:40.720 --> 0:10:44.120 The tournament that Djokovic has won nine times against Monday, 0:10:44.160 --> 0:10:46.160 nets off the Big One in Chicago, gave Kevin Durant 0:10:46.200 --> 0:10:48.839 the night off. Kyrie Irvan can't play home games show enough. 0:10:49.200 --> 0:10:51.920 Nets lost Oklahoma City one to one. On nine, Nicks 0:10:51.920 --> 0:10:54.520 made a trade set to seldom used Kevin Knox to 0:10:54.559 --> 0:10:56.880 the first round draft pick that originally belonged to Charlotte 0:10:57.080 --> 0:10:59.800 to Atlanta for Cam Reddish who the Hawks touff with 0:11:00.000 --> 0:11:02.000 a tenth overall pick a few years ago. He's only 0:11:02.000 --> 0:11:04.320 twenty two. Will be reunited with r J Barrett. They 0:11:04.320 --> 0:11:06.760 were teammates and Duke Nick's play in a lamp top 0:11:06.840 --> 0:11:12.640 Tomorrow Rangers in San Jose. The newest Ranger helped outfid 0:11:12.720 --> 0:11:15.360 Eric keeps it alive, slodes it over to Headle Eatle 0:11:15.440 --> 0:11:18.319 for strong strolling all the goal live back out for 0:11:18.440 --> 0:11:22.760 a shot score. The Rangers get the first at h 0:11:22.840 --> 0:11:25.559 Hill goal for a braided snider. It is a Hill 0:11:25.720 --> 0:11:28.800 debut and they don't have a two topic lead over 0:11:28.800 --> 0:11:31.920 the Shark GPN call. Rangers won three nothing. Chris Cryder 0:11:32.000 --> 0:11:34.200 scored the other two goals. He's got twenty three on 0:11:34.240 --> 0:11:36.559 the season, the fourth most in the NHL. The Islanders, 0:11:36.559 --> 0:11:38.920 on a Matthew Barzel goo with five minutes left, beat 0:11:38.960 --> 0:11:42.080 the Devils three two. Seaton Hall lost nineties ninety two 0:11:42.080 --> 0:11:44.520 at Devaul who came in oh and five in the 0:11:44.520 --> 0:11:48.080 Big East John Dash down were Bloomberg's spots all right, John, 0:11:48.120 --> 0:11:49.880 thank you right now. S and P futures are up 0:11:49.880 --> 0:11:52.960 eight points, Staff futures up a hundred. NASTAC futures are 0:11:53.000 --> 0:11:55.600 higher by five points now, the taging your treasury down 0:11:55.720 --> 0:11:59.680 eleven thirty seconds, the yield one point seven four per cent. 0:12:00.480 --> 0:12:08.720 You're listening to Bloomberg Daybreak Bloomberg eleven three O. Weather. 0:12:08.720 --> 0:12:10.760 It'll turn partly sunny and breezy today with highs in 0:12:10.800 --> 0:12:14.839 the low forties, low twenties for highs tomorrow, late day 0:12:14.920 --> 0:12:18.120 snow Sunday with highs near thirty five currently forty degrees 0:12:18.160 --> 0:12:24.719 in Central Park Markets. Headlines and breaking news twenty four 0:12:24.760 --> 0:12:27.800 hours a day at Bloomberg dot Com, the Bloomberg Business 0:12:27.800 --> 0:12:31.440 Out and at Bloomberg Quicktake. This is a Bloomberg Business 0:12:31.520 --> 0:12:40.959 flash and I'm Karen Moscow. European stocks are following Asian 0:12:40.960 --> 0:12:43.720 shares lower after a slew of Federal Reserve officials signal 0:12:43.760 --> 0:12:48.800 they'll combat inflation aggressively. Uh SMP futures are moving higher. 0:12:48.960 --> 0:12:52.000 Nowsday futures are little changes after the nounsday fell to 0:12:52.040 --> 0:12:54.560 its lowest level since October. We checked the markets every 0:12:54.559 --> 0:12:57.520 fifteen minutes to have the trading day on Bloomberg. SMP 0:12:57.640 --> 0:13:00.880 futures up about points down, futures up nine nine nasdack 0:13:00.960 --> 0:13:03.640 future is again little change. The decks in Germany is 0:13:03.679 --> 0:13:07.040 down sixtensive upper cent ten year treasury down twelve thirties seconds. 0:13:07.240 --> 0:13:09.280 He had one point seven four percent. They yield on 0:13:09.360 --> 0:13:12.240 the two year point nine three percent. Nive X screwed 0:13:12.240 --> 0:13:14.240 oil is at one point four percent of a dollar 0:13:14.280 --> 0:13:16.760 fourteen at eighty three dollars twenty six cents of barrel 0:13:16.960 --> 0:13:21.000 called mex School. Little change in eounce, the Euro one 0:13:21.040 --> 0:13:23.200 point one four or five eight against the dollar, British 0:13:23.200 --> 0:13:25.360 pound one point three seven three two and the ends 0:13:25.400 --> 0:13:28.880 at one thirteen point nine too. And Bitcoin this morning 0:13:28.920 --> 0:13:32.840 moving lower. It's just under forty two dollars right now. 0:13:33.280 --> 0:13:36.240 Earnings today, we're watching for JP Morgan, Chase, City Group 0:13:36.240 --> 0:13:38.640 and whilst Fargo, and we're gonna look at December retail 0:13:38.720 --> 0:13:41.160 sales at eight thirty Wall Street time. That's a Bloomberg 0:13:41.200 --> 0:13:43.920 business flash. Now here's Michael Barr with Moore un what's 0:13:43.920 --> 0:13:46.559 going on around the world, Clachael, thank you very much, Karen. 0:13:46.600 --> 0:13:49.480 President Joe Biden is all but conceding defeat for this 0:13:49.559 --> 0:13:52.960 year on the Democrats big elections and voting rights legislation. 0:13:53.559 --> 0:13:56.840 Biden spoke at the Capitol after a key fellow Democrats 0:13:56.840 --> 0:14:00.360 Senator Kristen Cinema of Arizona dramatically announced to reap usal 0:14:00.640 --> 0:14:03.679 to go, along with changing Senate rules to muscle pass 0:14:03.720 --> 0:14:08.760 the Republican filibuster. Tennis star Novak Djokovic faces deportation again 0:14:09.240 --> 0:14:11.920 after the Australian the government revoked his visa for a 0:14:12.000 --> 0:14:15.560 second time. Immigration Minister Alex Hawks said today that he 0:14:15.679 --> 0:14:19.640 used his ministerial discretion to revoke Djokovic's visa on public 0:14:19.680 --> 0:14:23.280 interest grounds, three days before the Australian Open is to begin. 0:14:23.720 --> 0:14:27.520 Djokovic's lawyers aren't expected to appeal. In the NBA, the 0:14:27.600 --> 0:14:31.160 Nets and Warriors lost. In the NHL, the Islanders beat 0:14:31.200 --> 0:14:34.520 the Devils, the Rangers and Bruins. One Global News twenty 0:14:34.520 --> 0:14:37.320 four hours a day on here and on Bloomberg Quick Take, 0:14:37.520 --> 0:14:40.640 powered by more than twenty seven under journalist and analyst 0:14:40.680 --> 0:14:43.800 and more than one hundred twenty countries. I'm Michael bar 0:14:43.960 --> 0:14:46.320 This is Bloomberg. Nathan all right, Michael. Thanks at six 0:14:46.440 --> 0:14:48.840 nineteen on Wall Street Live from the Bloomberg interract of 0:14:48.880 --> 0:14:51.520 Broker Studios. This is Bloomberg Daybreak. We want to get 0:14:51.520 --> 0:14:53.600 to the latest on the pandemic now and check in 0:14:53.600 --> 0:14:57.480 with Dr Andy Peckosh, Professor of Molecular Microbiology and Immunology 0:14:57.680 --> 0:15:00.560 at the Johns Hopkins Bloomberg School of Public Health. Dr. 0:15:00.640 --> 0:15:03.560 There's a lot of research into the O macron variant 0:15:03.600 --> 0:15:05.160 that I want to get to this morning. But first 0:15:05.200 --> 0:15:07.480 i'd like to get your reaction to the Supreme Court 0:15:07.560 --> 0:15:12.520 ruling against President Biden's vaccine mandate for large businesses. What's 0:15:12.560 --> 0:15:16.000 the effect that this uh legal setback for the president 0:15:16.040 --> 0:15:18.360 could have. Well, you know, we know here in the 0:15:18.480 --> 0:15:23.360 US we've been struggling to get vaccine acceptance up to 0:15:23.520 --> 0:15:26.800 levels that would you know, really make a big impact 0:15:26.880 --> 0:15:30.360 in terms of the surges and hospitalizations that we're seeing 0:15:30.400 --> 0:15:33.600 every time a variant comes through the population. So you know, 0:15:33.640 --> 0:15:37.240 from a purely sort of public health standpoint, it's, uh, 0:15:37.360 --> 0:15:40.960 it's a disappointing decision. You know, these vaccines are safe, 0:15:41.400 --> 0:15:46.560 these vaccines are effective, and they are an incredibly important, 0:15:47.000 --> 0:15:50.800 i'd say critical tool to get us through this pandemic. 0:15:50.880 --> 0:15:54.320 And again to to to to take something off the 0:15:54.360 --> 0:15:58.120 table that would help us get more people vaccinated, it's 0:15:58.200 --> 0:16:00.320 just not the right thing to do from a public 0:16:00.320 --> 0:16:03.640 health perspective, at least it's not entirely off the table though, right, 0:16:03.680 --> 0:16:06.760 I mean businesses can still mandate vaccines on their own. 0:16:06.880 --> 0:16:09.440 Can that get us to enough of a level where 0:16:09.520 --> 0:16:12.520 we can start to feel like we're getting ahead of 0:16:12.520 --> 0:16:16.280 the pandemic? Absolutely? I think this now sort of puts 0:16:16.280 --> 0:16:19.360 the onus on the particular business, and depending on which 0:16:19.400 --> 0:16:21.760 state you're in and what kind of business you are, 0:16:22.160 --> 0:16:25.480 there will be varying rates of of of moving this 0:16:25.640 --> 0:16:32.000 into into applications. So you know, a government mandate would 0:16:32.000 --> 0:16:36.800 allow for a larger, more widespread utilization of the vaccines. 0:16:37.240 --> 0:16:41.760 It now puts things back into the individual businesses um responsibility, 0:16:42.040 --> 0:16:44.080 and therefore we're probably not going to see as much 0:16:44.120 --> 0:16:46.560 of an uptake of this policy as we would if 0:16:46.560 --> 0:16:49.520 it was a government mandate. And the time we have, 0:16:49.600 --> 0:16:51.320 I want to get to some of this research there. 0:16:51.440 --> 0:16:53.960 Like I said, there has been a lot into a macron. 0:16:54.120 --> 0:16:56.720 There's a loose study out of South Africa which has 0:16:56.760 --> 0:16:58.800 put out so much of the research over the last 0:16:58.840 --> 0:17:01.800 several weeks that this drain is less severe even for 0:17:01.960 --> 0:17:05.359 unvaccinated people or people who have never been infected with 0:17:05.480 --> 0:17:08.119 COVID before. Can we say now that, oh, macron is 0:17:08.520 --> 0:17:12.360 indeed less severe. I would be very careful in terms 0:17:12.400 --> 0:17:15.800 of how we view less severe. Remember, we're starting from 0:17:15.800 --> 0:17:18.640 a disease that's pretty severe, so coming down a little 0:17:18.680 --> 0:17:21.720 bit from a less from a severe disease doesn't put 0:17:21.760 --> 0:17:24.320 us in the category of things like the common cold 0:17:24.400 --> 0:17:27.480 or something like that. And UM, I guess the counter 0:17:27.600 --> 0:17:31.199 to that is the vast majority of people who are 0:17:31.240 --> 0:17:35.320 being hospitalized are people who haven't been vaccinated. So if 0:17:35.359 --> 0:17:38.400 you're not vaccinated, I wouldn't view a macron as being 0:17:38.520 --> 0:17:42.359 a easy way to get some immunity. Um, it's still 0:17:42.400 --> 0:17:46.119 a very severe disease in terms of its potential, but 0:17:46.320 --> 0:17:49.159 again the positive side is it's not as severe as 0:17:49.240 --> 0:17:52.200 other variants that have come through. Um. The vaccines are 0:17:52.200 --> 0:17:58.280 working well against preventing severe disease, so certainly, UM, we're 0:17:58.280 --> 0:18:01.080 in a better situation now in terms of preventing that 0:18:01.200 --> 0:18:03.840 severe disease. You know, the problem, of course, is just 0:18:04.000 --> 0:18:07.040 a number of mild or less severe cases are just 0:18:07.320 --> 0:18:10.639 swamping our systems and affecting our economy in a very 0:18:10.680 --> 0:18:14.080 adverse way. Now we've seen related to that just how 0:18:14.160 --> 0:18:17.679 fast O macron spreads. There's also a study out of 0:18:17.680 --> 0:18:21.560 the UK that talks about how COVID can become less 0:18:21.600 --> 0:18:24.720 infectious the longer it stays in the air up to 0:18:26.720 --> 0:18:31.520 less effective after twenty minutes. What's your reaction to that. Yeah, 0:18:31.760 --> 0:18:33.760 this is such an important point because we know that 0:18:33.800 --> 0:18:38.120 all macron in particular UM is spreading more effectively. So 0:18:38.520 --> 0:18:41.240 anything we can do to study how we can limit 0:18:41.280 --> 0:18:46.480 that transmission is really important. And understanding airflow, how long 0:18:46.960 --> 0:18:49.360 these virus particles stay in the air and how long 0:18:49.400 --> 0:18:53.159 they're infectious, is really going to feed into things like 0:18:53.960 --> 0:18:56.640 air flowing rooms and how quickly you need to turn 0:18:56.720 --> 0:19:00.720 airflow over in order to limit transmission. If another tool 0:19:00.720 --> 0:19:04.080 in our battery to prevent transmission that allows us to 0:19:04.119 --> 0:19:06.480 go back to things like work in school with a 0:19:06.560 --> 0:19:09.960 higher level of safety. So really important work and needs 0:19:09.960 --> 0:19:13.639 to be implemented more broadly. Thank you as always, Dr 0:19:13.680 --> 0:19:16.080 good having you on with us this morning. Andy Pecos 0:19:16.400 --> 0:19:20.040 is Professor of molecular Microbiology and Immunology at the Johns 0:19:20.080 --> 0:19:22.960 Hopkins Bloomberg School of Public Health, which is supported by 0:19:23.000 --> 0:19:25.840 Michael Bloomberg, the founder and majority owner of Bloomberg LP, 0:19:25.960 --> 0:19:29.679 the parent company of Bloomberg Radio. Right now, SMP futures 0:19:29.680 --> 0:19:32.640 are up six point STAFF futures up ninety NASDAQ futures 0:19:32.640 --> 0:19:34.760 swinging between gains and losses after the two and a 0:19:34.800 --> 0:19:38.359 half percent dropped for the NASDAC yesterday. NASTAC futures right 0:19:38.359 --> 0:19:41.160 now are down four points, the tenure treasury is down 0:19:41.160 --> 0:19:44.679 eleven thirty seconds, the yield one point seven four percent, 0:19:44.840 --> 0:19:47.480 and the yield on the two year right now zero 0:19:47.560 --> 0:19:51.959 point nine three percent. Just ahead, more calls for faster 0:19:52.119 --> 0:19:55.080 rate hikes and a preview of bank earnings as we 0:19:55.160 --> 0:19:58.040 check the five things you need to know to start 0:19:58.080 --> 0:20:08.480 your day. You're listening to Bloomberg Daybreak Bloomberg eleven three 0:20:08.480 --> 0:20:11.240 oh weather partly sunny, breezy, low forties for highs today, 0:20:11.280 --> 0:20:13.280 will have a mix of sunning clouds tomorrow, with highs 0:20:13.400 --> 0:20:16.600 only in the low twenties. Late arriving snow on Sunday. 0:20:17.200 --> 0:20:23.520 Right now forty degrees in Central Park. Broadcasting live from 0:20:23.520 --> 0:20:27.320 the Bloomberg Interactive Broker Studio in New York. Bloomberg E 0:20:27.400 --> 0:20:30.600 Living Free on to Washington, d C. Bloomberg ninety one 0:20:30.760 --> 0:20:34.000 to Boston, Bloomberg one All six one to San Francisco, 0:20:34.080 --> 0:20:37.520 Bloomberg nine sixty to the Country, Sirius XM Chado one 0:20:37.600 --> 0:20:40.520 nine team and around the globe. The Bloomberg Business Apt 0:20:40.640 --> 0:20:50.280 and Bloomberg Radio dot com. This is Bloomberg Daybreak. It's 0:20:50.280 --> 0:20:52.600 six thirty on Wall Street. Good morning. I'm Nathan Hacker 0:20:53.080 --> 0:20:55.840 and I'm Karen Moscow, and we are just about three 0:20:55.960 --> 0:20:58.840 hours away from the open of US trading. It is 0:20:58.880 --> 0:21:00.879 time for the five things you need to notice start 0:21:00.920 --> 0:21:04.400 your day, brought to you by Interactive Brokers Global Analyst. 0:21:04.680 --> 0:21:07.840 Global Analysts helps you find new global investment opportunities to 0:21:07.880 --> 0:21:12.440 diversify your portfolio and discover undervalued companies. Try Global Analysts 0:21:12.480 --> 0:21:15.520 today at ib k R dot com. Slash g a 0:21:16.000 --> 0:21:19.160 up first futures, while S and P futures are higher 0:21:19.200 --> 0:21:22.119 following yesterday's sell off. The feds push for higher interest 0:21:22.240 --> 0:21:25.600 rates is growing louder. Governor Christopher Waller tells us at 0:21:25.680 --> 0:21:28.840 least three hikes this year is a good baseline. It 0:21:28.880 --> 0:21:31.560 really depends on what happens with inflation. I mean, if 0:21:31.600 --> 0:21:35.080 inflation just is stubbornly high to the first part of 0:21:35.119 --> 0:21:36.960 this year, first half of this year, we're gonna have 0:21:37.000 --> 0:21:39.440 to do a lot more. But that's what that's our job, 0:21:39.600 --> 0:21:41.600 and that that's what we're committed to do. And if 0:21:41.600 --> 0:21:43.399 we have to do more rate hikes, will do it. 0:21:43.640 --> 0:21:46.879 FED Governor Chris Waller tells Our Kathleen Hayes he sees 0:21:46.920 --> 0:21:49.400 a scenario where the FED raises rates as many as 0:21:49.440 --> 0:21:52.120 five times this year. Let meantime, Karen, the White House 0:21:52.200 --> 0:21:53.880 is set to add some new faces to the FED. 0:21:53.920 --> 0:21:56.919 Bloomberg's Renia Young joins us Live with the latest. Good morning, Rinina, 0:21:56.960 --> 0:22:00.280