WEBVTT - Bloomberg Daybreak: January 26, 2022 - Hour 1 (Radio) 0:00:00.600 --> 0:00:04.359 Five from the Bloomberg Interacted Burger Studios. This is Bloomberg 0:00:04.440 --> 0:00:08.480 day Break for Wednesday, January two. Coming up this hour, 0:00:08.720 --> 0:00:12.560 Futures Rise. Following another roller coaster session on Wall Street, 0:00:12.640 --> 0:00:17.000 Microsoft shares readound on optimism over the company's cloud business. Next, 0:00:17.040 --> 0:00:19.280 it's all about the FED as the Central Bank issues 0:00:19.280 --> 0:00:22.239 of policy decision today, and President Biden says he has 0:00:22.320 --> 0:00:25.480 no intention of putting American troops in Ukraine. The second 0:00:25.560 --> 0:00:29.760 NYPD officer, Ambush Friday, has died. Plus there's confusion after 0:00:29.800 --> 0:00:33.120 a higher New York court diverse the ruling banning mask mandates. 0:00:33.120 --> 0:00:36.080 I'm Michael bar More ahead, I'm John stash Our. In sports, 0:00:36.080 --> 0:00:38.480 the next loss to the Lakers a win for the Islanders. 0:00:38.520 --> 0:00:41.639 The Devils lost in David Ortiz voted into the Baseball 0:00:41.720 --> 0:00:46.480 Hall of Fame. That's all straight ahead on Bloomberg day 0:00:46.479 --> 0:00:51.440 Break on Bloomberg Eliming three O New York, Bloomberg, Washington, 0:00:51.560 --> 0:00:55.440 d C, Bloomberg one oh six one, Boston, Bloomberg nine six, 0:00:55.640 --> 0:00:59.640 San Francisco, Sirius x M one nineteen and around the 0:00:59.640 --> 0:01:03.040 world going Bloomberg Radio dot Com and via the Bloomberg 0:01:03.080 --> 0:01:10.440 Business at Good Morning I'm Nathan Hagar and I'm Karen Moscow, 0:01:10.560 --> 0:01:13.920 and US futures are rebounding this morning. We're coming up 0:01:13.920 --> 0:01:15.480 to five oh one on Wall Street, and we check 0:01:15.560 --> 0:01:18.600 the markets every fifteen minutes throughout the trading day on Bloomberg. 0:01:18.680 --> 0:01:22.000 Right now, SNP futures are up forty seven points down 0:01:22.040 --> 0:01:24.920 futures up two hundred and sixty five and NASDAG futures 0:01:24.959 --> 0:01:28.039 up two hundred thirty five. Ten year treasury down three 0:01:28.080 --> 0:01:30.560 thirty seconds. You had one point seven eight percent and 0:01:30.560 --> 0:01:34.720 a yield on a two year one point oh three percent. Nathan, Well, Karen, 0:01:34.760 --> 0:01:37.959 as you say, futures are rebounding this morning after another 0:01:38.200 --> 0:01:42.240 roller coaster riding yesterday's session. Let's get the details live 0:01:42.280 --> 0:01:45.800 with Bloomberg's John Tucker. Good morning, John, Nathan. SMP futures 0:01:45.880 --> 0:01:48.880 right now up one percent. The SMP five hundred closed 0:01:48.920 --> 0:01:53.000 yesterday at the lowest level since October. Technology shares were 0:01:53.000 --> 0:01:56.480 the biggest losers. Dip buyers did resurface near the end 0:01:56.480 --> 0:01:58.800 of the day. Well, that wasn't enough to stop the 0:01:58.960 --> 0:02:02.120 SMP five hundred for posting at one point two percent loss. 0:02:02.400 --> 0:02:05.840 The index just shy of a correction, closing more than 0:02:05.920 --> 0:02:08.440 nine percent off it's record high from three weeks ago. 0:02:08.880 --> 0:02:11.760 Where do we go from here? Strategists from Goldman Sachs 0:02:11.800 --> 0:02:14.799 to City Group Now say the time to jump in 0:02:15.160 --> 0:02:18.880 is now. Golden strategists say any further weakness should be 0:02:18.919 --> 0:02:22.519 seen as a buying opportunity. City strategists say their bear 0:02:22.600 --> 0:02:27.000 market checklist checklist suggests it's time to buy the dip. 0:02:27.400 --> 0:02:30.600 Live in New York. I'm John Tucker, Bloomberg Daybreak. All right, John, 0:02:30.600 --> 0:02:33.600 to thank you. The volatiery continued after hours at the 0:02:33.680 --> 0:02:36.359 release of Microsoft earnings, and right now shares are up 0:02:36.360 --> 0:02:39.000 more than three percent in early trading. We get more 0:02:39.080 --> 0:02:42.880 from Bloomberg's Doug Christner. The company reported after the bell, 0:02:43.040 --> 0:02:45.919 and the focus was on the Azure cloud computing business. 0:02:46.040 --> 0:02:49.160 For the last quarter, revenue at the unit decelerated from 0:02:49.200 --> 0:02:52.440 the two prior quarters, and that weekend. Microsoft chairs in 0:02:52.520 --> 0:02:55.240 late trading, but then on the call with analysts, the 0:02:55.280 --> 0:02:58.000 company said the Azure sales growth rate would pick up 0:02:58.000 --> 0:03:01.920 in the current quarter, excluding the pact of currency fluctuations. 0:03:01.919 --> 0:03:06.160 Shares then recovered. Microsoft CEO Sakya Adela has turned the 0:03:06.200 --> 0:03:10.400 Azure business into a solid number two behind Amazon. Alphabet's 0:03:10.440 --> 0:03:13.480 Google ranks third, but it's adding resources to catch up 0:03:13.639 --> 0:03:16.880 in New York. On Doug Chrisener, Bloomberg Daybreak, All right, Doug. Thanks. Meantime, 0:03:16.919 --> 0:03:19.359 shares of Texas Instruments are out more than four percent 0:03:19.400 --> 0:03:21.880 in early trading. The chip maker beat earnings estimates and 0:03:21.880 --> 0:03:25.240 gave an upbeat forecast up next. Earnings continue with about 0:03:25.280 --> 0:03:29.359 three dozen companies reporting today, including Tesla. We get more 0:03:29.400 --> 0:03:32.480 on the electric carmaker from Bloomberg's Tom Busby. The big 0:03:32.520 --> 0:03:35.760 focus will be margins and how many vehicles it expects 0:03:35.760 --> 0:03:38.920 to sell this year. That's after Tesla ramped up production 0:03:38.960 --> 0:03:41.600 in a big way in twenty one at its Premont, 0:03:41.600 --> 0:03:45.400 California plant, also its facilities in Shanghai. It also expanded 0:03:45.440 --> 0:03:48.920 into Austin, Texas, where it's now headquartered, and into Germany. 0:03:49.160 --> 0:03:52.680 Also of interest, the latest on its long awaited cybertruck 0:03:53.120 --> 0:03:56.640 tom Busby Bloomberg Daybreak, Tom, thank you. Onside of earning, 0:03:56.680 --> 0:03:59.760 today's key event for markets comes this afternoon. We get 0:03:59.760 --> 0:04:03.160 a highly anticipated policy decision from the Fed at two PM, 0:04:03.200 --> 0:04:06.200 and Bloomberg's Michael McKee has more Fed officials aren't going 0:04:06.240 --> 0:04:09.400 to be raising the cost of borrowing at this meeting. Instead, 0:04:09.520 --> 0:04:12.480 they'll suggest interest rates will be going up soon. The 0:04:12.520 --> 0:04:16.200 Fed's current target rate is essentially zero. Policymakers will try 0:04:16.240 --> 0:04:18.000 to figure out how much it has to go up 0:04:18.000 --> 0:04:20.839 in order to bring inflation down to their two percent target, 0:04:20.960 --> 0:04:23.360 But don't expect them to publish a roadmap to how 0:04:23.440 --> 0:04:26.440 fast and how far rates will move, and when and 0:04:26.520 --> 0:04:28.760 how and by how much the balance sheet will shrink. 0:04:29.000 --> 0:04:32.240 Expect Chair J Powell to say that with geopolitical tensions, 0:04:32.520 --> 0:04:36.359 supply chain problems, and the COVID virus ever present, the 0:04:36.400 --> 0:04:39.360 FED will have to remain flexible, deciding policy on a 0:04:39.400 --> 0:04:43.360 meeting by meeting basis. Michael McKee Bloomberg Daybreak. All right, Mike, thanks, 0:04:43.400 --> 0:04:45.520 So here's the Fed does have a tough road ahead. 0:04:45.560 --> 0:04:48.919 That's according to Nobel laureate and economist Paul Krugman. He 0:04:49.000 --> 0:04:51.479 says the central bank needs to slow down the economy 0:04:51.720 --> 0:04:54.760 but can't move too fast on rates. It sure looks 0:04:54.800 --> 0:04:58.599 as if the economy has hit the speed limit. Um, 0:04:58.640 --> 0:05:01.440 but it's that's a call for taking your foot off 0:05:01.440 --> 0:05:03.640 the gas pedal. It's not a call for slamming on 0:05:03.680 --> 0:05:06.320 the brakes. And so what they want to do then 0:05:06.400 --> 0:05:09.440 it's the balancing act. How did they sort of, you know, 0:05:09.600 --> 0:05:12.320 get us to level off, to to slow down a 0:05:12.320 --> 0:05:16.080 little bit without throwing us into into a recession. No 0:05:16.240 --> 0:05:18.880 Bell Laureate Paul Krugman made the comments in an interview 0:05:18.880 --> 0:05:22.200 on Bloomberg Television. Stay tuned for live coverage of today's 0:05:22.200 --> 0:05:25.440 FED decision on a special edition of Bloomberg Surveillance. It 0:05:25.560 --> 0:05:28.240 starts at one thirty pm Wall Street Time on Bloomberg 0:05:28.360 --> 0:05:31.560 Radio and Television. Well Nathan Geo Politics also near the 0:05:31.600 --> 0:05:34.960 top of today's agenda's Tensions continue to simmer with Russia 0:05:35.000 --> 0:05:38.240 and Ukraine. President Biden is indicating there is no plan 0:05:38.360 --> 0:05:41.000 to send US troops into the country, and Bloomberg said 0:05:40.960 --> 0:05:44.200 Baxter has the story. President Biden says he may move 0:05:44.279 --> 0:05:47.200 troops around and closer to Ukraine to be prepared for 0:05:47.240 --> 0:05:50.719 any eventuality, but we have no intention of putting American 0:05:50.760 --> 0:05:56.520 forces are native forces in Ukraine. But Well, I said 0:05:56.640 --> 0:06:00.160 they're gonna be serious economic consequences if he moves, and 0:06:00.200 --> 0:06:03.080 also says Russia he believes understands how much of an 0:06:03.279 --> 0:06:07.239 enormous deal this is globally, and says if Russia invades, 0:06:07.279 --> 0:06:12.080 he would favor personal sanctions on Vladimir Putin in San Francisco. 0:06:12.120 --> 0:06:14.760 I'm at Baxter Bloomberg daybreak Man. Later today at at 0:06:14.760 --> 0:06:17.320 the White House, President Biden turns his attention back to 0:06:17.360 --> 0:06:20.839 his economic agenda, hosting ten business leaders who will explain 0:06:20.920 --> 0:06:23.360 how the Build Back Better plan would boost the economy. 0:06:23.560 --> 0:06:26.200 Among those expected to attend are the CEOs of Ford, 0:06:26.320 --> 0:06:30.239 General Motors, Microsoft, and Salesforce, and I'm all Street today, Nathan. 0:06:30.240 --> 0:06:32.880 There's a fresh push to retain talent. Bank of America's 0:06:32.920 --> 0:06:34.919 out with a new plan to keep employees, and we 0:06:34.960 --> 0:06:38.159 get the details live from Bloomberg's rned A Young. Good morning, Nada, 0:06:38.240 --> 0:06:41.159 Good morning Karen. Bank of America is giving almost all 0:06:41.200 --> 0:06:44.279 of its employees their share of a one billion dollar 0:06:44.400 --> 0:06:47.280 stock award. It goes to staff making as much as 0:06:47.360 --> 0:06:50.799 five hundred thousand dollars a year. That makes about nineties 0:06:50.839 --> 0:06:55.080 seven percent of Bank of America's global workforce eligible. CEO 0:06:55.200 --> 0:06:59.000 Brian moynihan says each eligible employee will receive between sixty 0:06:59.080 --> 0:07:03.039 five and six hundred restricted stock units based on compensation. 0:07:03.440 --> 0:07:05.760 Don't get the full value in March, and shares will 0:07:05.839 --> 0:07:10.680 vest in equal payments over four years starting in it's 0:07:10.720 --> 0:07:13.960 the bank's latest move as competition heats up to attract 0:07:14.080 --> 0:07:17.880 and retain top talent. Live in New York I'm Rnita 0:07:17.920 --> 0:07:24.320 Young Bloomberg Daybreak, need to thank you in his five 0:07:24.320 --> 0:07:27.000 oh seven Now on Wall Street where in twenty two 0:07:27.040 --> 0:07:29.720 degrees in Central Park, we gotta crash on southbound Route 0:07:29.720 --> 0:07:32.040 two oh two by First Avenue and rare into tales 0:07:32.120 --> 0:07:34.640 coming up in traffic. First Michael Barr with more on 0:07:34.720 --> 0:07:36.160 what's going on in New York and around the world. 0:07:36.200 --> 0:07:38.960 Good morning, Michael, Good morning Nathan. Flags are flying at 0:07:39.000 --> 0:07:41.880 half staff in New York City after a police officer 0:07:41.920 --> 0:07:44.480 gravely wounded last week in a Harlem shooting that killed 0:07:44.480 --> 0:07:47.880 his partner has also died of his injuries. Officer Robert 0:07:48.160 --> 0:07:51.120 Mora was taken off life support at a Manhattan hospital 0:07:51.440 --> 0:07:54.400 four days after a gunman shot him and officer Jason 0:07:54.480 --> 0:07:57.720 Rivera as they responded to a domestic disturbance called Rivera 0:07:57.760 --> 0:08:01.400 died Friday. Morris family to sided to donate his organs 0:08:01.480 --> 0:08:05.520 just hours after he died. Leonard Agent is president and 0:08:05.680 --> 0:08:09.440 CEO of Live on n Why, responsible for organ donations 0:08:09.480 --> 0:08:12.080 for all of New York City. Their son became a 0:08:12.400 --> 0:08:16.040 NYPD police officer to serve and protect and save lives, 0:08:16.640 --> 0:08:18.720 and they knew that that was true in his life, 0:08:19.120 --> 0:08:21.320 and they knew that he would want in his death 0:08:21.440 --> 0:08:23.720 to be able to save lives. H and with live 0:08:23.800 --> 0:08:26.200 on end wise as people will have a second chance 0:08:26.280 --> 0:08:29.520 of life thanks to officer, more chances are rising a 0:08:29.520 --> 0:08:33.120 powerful storm will sweep the northeast in the US. With 0:08:33.200 --> 0:08:36.040 more on its impact on New York and New Jersey, 0:08:36.280 --> 0:08:39.760 here's Bloomberg meteorologist Rob Carolin. Michael, We're gonna be keeping 0:08:39.760 --> 0:08:41.920 an eye out for a storm system for a late 0:08:42.000 --> 0:08:44.640 Friday into Saturday across the Tri state area. It's going 0:08:44.679 --> 0:08:47.040 to be a coastal storm developing off of North Carolina. 0:08:47.360 --> 0:08:48.880 What's up in the air right now is the track 0:08:48.920 --> 0:08:50.840 of the storm. How close does it come to the coast. 0:08:51.000 --> 0:08:53.040 Right now, the models are suggesting a tract that may 0:08:53.080 --> 0:08:55.400 be too far to the east to dump a major 0:08:55.480 --> 0:08:58.280 storm across the city. It looks like snowfall amounts could 0:08:58.280 --> 0:09:00.040 be on the lighter side, but again that still is 0:09:00.120 --> 0:09:01.480 very much up in the air, and we'll have more 0:09:01.520 --> 0:09:03.200 details on the track of the storm and how much 0:09:03.280 --> 0:09:05.880 we may get later in the week. Michael, Rob thank you, Sir, 0:09:05.920 --> 0:09:09.720 and appeals judge restored New York's mask man date yesterday 0:09:10.000 --> 0:09:12.439 after a judge in a lower court Monday rule that 0:09:12.600 --> 0:09:16.800 Governor Kathy Hokel's administration lacked the constitutional authority to order 0:09:16.800 --> 0:09:20.680 people to wear face coverings during the COVID nineteen pandemic. Meanwhile, 0:09:20.720 --> 0:09:23.840 New York stat has seen in eighty six percent decrease 0:09:23.920 --> 0:09:28.360 in COVID cases since it's January seventh peak. Governor HOCl says, 0:09:28.360 --> 0:09:31.679 though deaths and hospitalizations remain elevated, two weeks ago we 0:09:31.760 --> 0:09:34.880 had over twelve thousand, almost thirteen thousand people hospitalized. Now 0:09:34.920 --> 0:09:38.320 we're down to hundreds, so it's still high, but uh 0:09:38.360 --> 0:09:41.080 and we're also still losing our friends and family and 0:09:41.080 --> 0:09:46.000 our loved ones lost. Governor Hoboken residents rejected a two 0:09:46.040 --> 0:09:48.360 hundred forty one million dollar bond measure to build a 0:09:48.360 --> 0:09:51.199 new high school in a special election yesterday, one of 0:09:51.240 --> 0:09:55.199 the costliest school construction referendums in New Jersey history. Global 0:09:55.240 --> 0:09:57.680 News twenty four hours a day on air and on 0:09:57.720 --> 0:10:00.800 Bloomberg quick Take, powered by more than ONNY seven hundred 0:10:00.840 --> 0:10:03.960 journalists and analysts more than a hundred twenty countries. Michael bar. 0:10:04.080 --> 0:10:11.199 This is Bloomberg Naked. Thanks Michael front of five ten 0:10:11.240 --> 0:10:13.440 on Wall Street time for the Bloomberg Sports uptake, good money, 0:10:13.520 --> 0:10:16.320 John stash Rny Nathan and Nets have issues right now. 0:10:16.400 --> 0:10:19.240 Kevin Durant is injured, Kyrie Irving can't play home games, 0:10:19.240 --> 0:10:22.280 and a report that James Harden doesn't like living in 0:10:22.360 --> 0:10:24.840 Brooklyn and we'll opt out and explore signing with a 0:10:24.840 --> 0:10:27.160 different team as a free agent next summer. The Nets 0:10:27.160 --> 0:10:29.640 lost at Barkleys, where their record is just twelve and twelve, 0:10:30.000 --> 0:10:32.520 beaten by the Lakers, who came in under five hundred, 0:10:32.520 --> 0:10:35.599 one of six nineties six Lebron James scored thirty three points, 0:10:35.640 --> 0:10:37.400 so did Harden, who had a triple double, but not 0:10:37.520 --> 0:10:40.400 much help. But Nick's played tonight in Miami the Islanders. 0:10:40.440 --> 0:10:42.280 After the slow start, I've moved over five hundred. They 0:10:42.320 --> 0:10:44.439 beat the Flyers for three and a Zach Parisse a goal. 0:10:44.440 --> 0:10:46.839 They won seven of the last nine. The Devils have 0:10:46.960 --> 0:10:49.160 lost five of six, feeting at home by Dallas five 0:10:49.200 --> 0:10:52.880 to one. College Who's Rick Pettino's Iona Gales are seven 0:10:52.920 --> 0:10:55.760 seen and three with a win at Sienna. Rutgers, Fordham 0:10:55.800 --> 0:10:58.720 in Columbia all lost Australian Open, They'll be an American 0:10:58.760 --> 0:11:02.240 in each of tomorrow mornings two women's semifinal matches. Madison 0:11:02.320 --> 0:11:04.280 Keys will play the top seed Ash Party, who has 0:11:04.679 --> 0:11:08.240 not yet lost the set, and Danielle Collins Advance will 0:11:08.320 --> 0:11:10.959 take on Egis swyrettext you won her quarterfinal match in 0:11:11.040 --> 0:11:14.560 three sets. It took three hours in nineties seven degree heat, 0:11:15.040 --> 0:11:32.720 A phone call plays to the Dominican Republic New York. Yeah. 0:11:34.200 --> 0:11:36.440 Poppy voted in on the first ballot, while Barry Bonds, 0:11:36.520 --> 0:11:39.360 Roger Clemens and Kirk Schilling all felt short in their 0:11:39.400 --> 0:11:42.800 final year on the ballot. Sean Payton resigned after sixteen 0:11:42.880 --> 0:11:45.600 years as coach of the New Orleans Saints. John stash 0:11:45.600 --> 0:11:48.480 Elly Bloomberg Sports all right, John, Thanks, has and P 0:11:48.640 --> 0:11:51.320 futures are higher now by forty nine point. Staff futures 0:11:51.360 --> 0:11:53.840 up two hundred seventy nine, NASTAC futures up two hundred 0:11:53.880 --> 0:11:56.960 forty nine points. The tenure treasury down three thirty seconds 0:11:57.320 --> 0:12:00.760 yield one point seven eight percent ahead of FED decision day. 0:12:01.080 --> 0:12:08.199 A preview next at Bloomberg's Michael McKee Bloomberg eleven three 0:12:08.200 --> 0:12:10.640 oh weather sunshine but cold today, highs in the upper 0:12:10.640 --> 0:12:14.800 twenties will be near thirty tomorrow, chance for afternoon snow 0:12:14.840 --> 0:12:17.960 flurries on Friday, with behind the low thirties currently twenty 0:12:18.000 --> 0:12:24.360 two degrees in Central Park markets. Headlines and breaking news 0:12:24.440 --> 0:12:27.040 twenty four hours a day at Bloomberg dot Com, The 0:12:27.120 --> 0:12:30.599 Bloomberg Business at Land at Bloomberg Quick Take, He's a 0:12:30.640 --> 0:12:40.240 Bloomberg Business Flash and I'm Karen Moscow. Nastack futures are 0:12:40.280 --> 0:12:43.760 signaling a sharp rebound as investors return to risk assets 0:12:43.840 --> 0:12:47.200 and strategists recommended buying the dip following the sell off. 0:12:47.240 --> 0:12:49.199 And this is all ahead of a Federal Reserve interest 0:12:49.280 --> 0:12:51.800 rate decision as well. We checked the markets every fifteen 0:12:51.840 --> 0:12:54.360 minutes throughout the trading day on Bloomberg Guess and P 0:12:54.559 --> 0:12:56.960 futures are up fifty points this morning. Down futures up 0:12:56.960 --> 0:13:00.000 two hundred seventy seven and Astack futures up two hundred 0:13:00.040 --> 0:13:02.800 to fifty three, or one point eight percent. The decks 0:13:02.800 --> 0:13:05.720 in Germany's up two point two percent, ten year treasury 0:13:05.720 --> 0:13:08.440 down three thirties seconds. You have one point seven seven percent. 0:13:08.520 --> 0:13:10.760 The yield on the two year one point oh three percent. 0:13:11.160 --> 0:13:13.559 Non ex screwed oils up six tents percent or fifty 0:13:13.559 --> 0:13:15.960 two cents at eighty six dollars thirteen cents of barrel 0:13:16.200 --> 0:13:18.400 comic schold at down three tenths per cent or five 0:13:18.400 --> 0:13:21.680 dollars forty cents at eighteen forty nine sixty announced the 0:13:21.720 --> 0:13:24.040 euro one point one to eight one against the dollar, 0:13:24.080 --> 0:13:26.400 British pound one point three four nine eight and the 0:13:26.480 --> 0:13:29.440 ends at one fourteen point one seven bitcoin this morning, 0:13:29.440 --> 0:13:33.480 moving higher at thirty seven thousand, six hundred and ninety dollars. 0:13:33.679 --> 0:13:36.400 Today we are watching for reports on wholesale inventories at 0:13:36.520 --> 0:13:39.000 eight thirty Wall Street time at tenants new home sales, 0:13:39.240 --> 0:13:41.600 and we get the fence interest rate decision at two. 0:13:41.760 --> 0:13:44.240 That's a Bloomberg business flash. Now here's Michael Barr with 0:13:44.320 --> 0:13:46.720 more on months going on around the world. Michael, good morning, 0:13:47.200 --> 0:13:50.440 Good morning, Karen. Fearful of a Russian invasion into Ukraine, 0:13:50.440 --> 0:13:53.120 the US and NATO allies are ramping up efforts for 0:13:53.160 --> 0:13:57.600 a diplomatic solution. Today France will hold high level meetings 0:13:57.720 --> 0:14:01.560 aimed at easing tensions between the two countries, but President 0:14:01.600 --> 0:14:04.959 Biden is warning the U S troops on standby to 0:14:05.080 --> 0:14:08.160 Europe may be deployed sooner than later. Russia deny as 0:14:08.160 --> 0:14:11.240 it plans to invade Ukraine. In the NBA, the Nets 0:14:11.280 --> 0:14:14.000 and Wizards lost the Celtics in far Riors one. In 0:14:14.040 --> 0:14:17.360 the NHL, the Islanders won the Devil's Lost Red Sox. 0:14:17.400 --> 0:14:20.200 Great David Ortiz was elected to the Baseball Hall of 0:14:20.200 --> 0:14:22.960 Fame in his first turn on the ballot. Steroid taint 0:14:23.000 --> 0:14:25.920 at Stars, Barry Bonds and Roger Clemens were denied entry 0:14:25.920 --> 0:14:30.440 into Cooper's Town in their final year under consideration. Global 0:14:30.480 --> 0:14:32.640 News twenty four hours a day on air and on 0:14:32.760 --> 0:14:35.800 Bloomberg Quick Take, powered by more than twenty seven hundred 0:14:35.840 --> 0:14:39.000 journalists and analysts more than a hundred twenty countries. Michael Barr, 0:14:39.040 --> 0:14:41.800 this is Bloomberg. Nathan Okay, Michael. Thanks, It's five nineteen 0:14:41.800 --> 0:14:44.880 on Wall Street Live from the Bloomberg Interactive Brokers studios. 0:14:44.920 --> 0:14:47.360 This is Bloomberg Daybreak as we look ahead to a 0:14:47.440 --> 0:14:50.720 federal reserve policy decision coming down to two pm Wall 0:14:50.760 --> 0:14:54.440 Street Time. Let's get a preview now. Bloomberg Global Economics 0:14:54.480 --> 0:14:58.240 correspondent Michael McKee is with us in our studios this morning. Mike, 0:14:58.760 --> 0:15:01.520 good to have you with us. With all the volatility 0:15:01.640 --> 0:15:03.880 we've seen in the lead up to this meeting. You've 0:15:03.880 --> 0:15:06.360 got to wonder what, if anything, the FED is going 0:15:06.400 --> 0:15:10.000 to do or say to address it. Probably nothing. I 0:15:10.040 --> 0:15:12.880 would imagine that J. Powell will be asked about it 0:15:12.880 --> 0:15:16.880 in use news conference. However, when markets go up, markets 0:15:16.880 --> 0:15:18.800 go down, the fact that you can't do a whole 0:15:18.840 --> 0:15:23.000 lot about that. They only worry if the markets are disrupted, 0:15:23.120 --> 0:15:25.520 as they were in March of twenty when they cut 0:15:25.600 --> 0:15:29.560 rates and nothing was moving. People couldn't sell, people couldn't buy. 0:15:29.760 --> 0:15:31.720 But as long as you can buy and sell, they 0:15:31.800 --> 0:15:34.680 leave you to your own devices. But it's very interesting 0:15:34.720 --> 0:15:37.520 as well to hear from a number of economists who 0:15:37.560 --> 0:15:39.840 are trying to prod the FED one way or the other. 0:15:39.880 --> 0:15:42.600 On the one hand, you've got the likes of Nobel 0:15:42.680 --> 0:15:45.360 Laureate Paul Krugman saying, you know, maybe don't put the 0:15:45.400 --> 0:15:48.560 brakes on too fast here, And then you have Muhammad 0:15:48.560 --> 0:15:51.320 al Arian Bloomberg opinion columnists writing in the Financial Times 0:15:51.400 --> 0:15:54.520 yesterday the FED should stop asset purchases now. I mean, 0:15:54.520 --> 0:15:57.400 what's the balance the Central Bank's gotta strike here? Well, 0:15:57.440 --> 0:15:59.520 that's the question that they're gonna be answering around the 0:15:59.520 --> 0:16:03.480 big table today. I think that the idea of stopping 0:16:04.080 --> 0:16:08.720 the tapering right now is probably a non starter for 0:16:08.760 --> 0:16:11.080 a couple of reasons. One because they've prepped the markets 0:16:11.120 --> 0:16:13.160 for it, and people have taken positions in terms of 0:16:13.640 --> 0:16:16.560 what they have to absorb into. Because the amount of 0:16:16.560 --> 0:16:19.560 money that's still left for the Fed to buy is 0:16:19.600 --> 0:16:23.560 so small compare it's like about fifty billion dollars compared 0:16:23.600 --> 0:16:27.760 to their almost nine trillion dollar balance sheet, that it 0:16:27.800 --> 0:16:30.200 really doesn't make a difference, and they'd rather be predictable, 0:16:30.720 --> 0:16:34.200 and so I would expect them to go ahead finish 0:16:34.240 --> 0:16:36.360 the taper, and all eyes will be on the March 0:16:36.440 --> 0:16:40.680 meeting for a rate announcement, and what is the expectation 0:16:41.040 --> 0:16:44.560 going in on what the Fed could say about that 0:16:44.880 --> 0:16:48.000 March meeting. There's a lot of pricing in at this 0:16:48.040 --> 0:16:50.280 point about whether there's going to be a twenty five 0:16:50.360 --> 0:16:54.520 basis point hike, even a fifty basis point hike. Could 0:16:54.560 --> 0:16:57.560 we get some kind of signal from Sherman Powem what 0:16:57.640 --> 0:17:00.600 they're thinking, Well, no question, that's a question that he 0:17:00.640 --> 0:17:04.080 will be asked about Verses fifty. But the fifty basis 0:17:04.160 --> 0:17:07.920 point idea has sort of faded from people's minds over 0:17:07.920 --> 0:17:11.760 the last week as they consider why the FED might 0:17:11.840 --> 0:17:14.959 do it. There are still a lot of potential weaknesses 0:17:15.040 --> 0:17:18.679 out there, what happens with China and supply chains because 0:17:18.680 --> 0:17:21.560 of the COVID variant there, the possibility of a new variant, 0:17:21.720 --> 0:17:25.560 and the geopolitical tensions in Ukraine. All that could mean 0:17:25.680 --> 0:17:27.919 that the FED is going to be faced with an 0:17:27.920 --> 0:17:30.639 economy that is really slowing and the numbers for this 0:17:30.720 --> 0:17:34.080 quarter are already not great. Sow basis points has become 0:17:34.160 --> 0:17:37.240 the consensus for what they're going to do. The statement 0:17:37.359 --> 0:17:40.199 has said for months and months, Uh, we're going to 0:17:40.240 --> 0:17:43.560 wait until there's substantial progress towards our twin mandates of 0:17:43.920 --> 0:17:49.000 full employment and price stability. And now we've got full appointment, 0:17:49.320 --> 0:17:52.320 but we're way above the two percent price stability target. 0:17:52.640 --> 0:17:56.160 So expect them to say something like conditions have evolved 0:17:56.200 --> 0:18:02.880 to make a move towards tighter can tighter monetary conditions? Uh, 0:18:03.080 --> 0:18:07.320 possible in the next few meetings or sometimes soon a 0:18:07.359 --> 0:18:10.760 euphemism for march in our last minute here, Mike, you 0:18:10.760 --> 0:18:13.280 know you're gonna be taking part in the news conference. 0:18:13.280 --> 0:18:16.880 What are you wanting to ask Chairman Pal today? Well, 0:18:16.920 --> 0:18:19.240 one of the questions is, uh, what is it going 0:18:19.280 --> 0:18:22.320 to take because for the for the FED to get 0:18:22.400 --> 0:18:24.720 this done, if they're going to do it, because most 0:18:24.720 --> 0:18:26.639 of the problem, according to the FED, is on the 0:18:26.680 --> 0:18:30.640 supply side, and the FED and its interest rates effect demand, 0:18:31.160 --> 0:18:35.239 and so it isn't clear that raising interest rates is 0:18:35.280 --> 0:18:37.800 going to cut off inflation, or at least it's going 0:18:37.840 --> 0:18:41.920 to cut it off without a noticeable effect on the economy. 0:18:41.960 --> 0:18:44.399 So we'd like to know how they think they're going 0:18:44.440 --> 0:18:48.119 to do this, alright. Michael McKee, are Global economics correspondent 0:18:48.160 --> 0:18:51.080 for Bloomberg News, will be taking part in the news 0:18:51.119 --> 0:18:55.080 conference to following the FED Open Market Committee policy decision 0:18:55.160 --> 0:18:59.119 coming down at two pm Wall Street Time. Chairman Powell 0:18:59.119 --> 0:19:02.080 will be addressed reporters at to thirty. We will have 0:19:02.280 --> 0:19:05.520 full coverage on this FED decision day in a special 0:19:05.640 --> 0:19:08.800 edition of Bloomberg Surveillance that starts at one thirty this 0:19:08.920 --> 0:19:11.760 afternoon Wall Street Time. You can catch it on Bloomberg 0:19:11.840 --> 0:19:16.440 Radio and on Bloomberg Television. Ahead of that, Futures moving 0:19:16.520 --> 0:19:19.160 higher midst of all the volatility we've seen this week. 0:19:19.240 --> 0:19:21.679 Right now, SMP futures are up fifty two points now, 0:19:21.800 --> 0:19:25.760 futures up two nine three NASDAC futures leading the gains 0:19:25.880 --> 0:19:28.359 this morning, up one point nine percent or two hundred 0:19:28.440 --> 0:19:31.320 sixty seven points. The tenure treasury right now is down 0:19:31.800 --> 0:19:35.280 four thirty seconds, the yield one point seven eight percent, 0:19:35.359 --> 0:19:37.600 and the yield on the two year right now one 0:19:37.640 --> 0:19:41.640 point zero three percent. Checking European stocks right now, they're 0:19:41.680 --> 0:19:44.240 surging as well, with the German decks up two point 0:19:44.280 --> 0:19:46.960 two percent, so is the Cat in Paris a gain 0:19:47.000 --> 0:19:49.680 of two point two percent, and looking at Bitcoin it's 0:19:49.680 --> 0:19:53.160 on the rise as well, close to thirty eight thousand dollars. 0:19:53.160 --> 0:19:55.119 We'll have much more on the market action ahead of 0:19:55.119 --> 0:19:58.879 the Fed decision, plus a big stock award to retain 0:19:59.080 --> 0:20:01.760 talent at Bank of America. Check your top stories of 0:20:01.760 --> 0:20:08.439 the morning. Next, this is Bloomberg Bloomberg eleven three oh 0:20:08.440 --> 0:20:10.920 weather sunshine up or twenties Today will be in the 0:20:11.480 --> 0:20:15.400 round thirty degrees tomorrow, chance of snow flurries. Friday afternoon 0:20:15.560 --> 0:20:18.159 highes in the low thirties. Right now twenty two in 0:20:18.240 --> 0:20:25.880 Central Park, broadcasting live from the Bloomberg Interactive Broker Studio 0:20:26.000 --> 0:20:29.159 in New York. Bloomberg e Living Freedom to Washington, d C. 0:20:29.359 --> 0:20:34.080 Bloomberg to Boston. Bloomberg one O six one to San Francisco, 0:20:34.160 --> 0:20:38.000 Bloomberg NOME sixteen to the country, Sirius XM Chado one 0:20:37.680 --> 0:20:40.760 nine and around the globe, the Bloomberg Business APT and 0:20:40.840 --> 0:20:50.760 Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five 0:20:50.800 --> 0:20:53.359 thirty on Wall Street. Good morning. I'm Nathan Hagar and 0:20:53.359 --> 0:20:56.200 I'm Karen Moscow. We're just about four hours away from 0:20:56.240 --> 0:20:58.040 the open of US trading. Let's get you have to 0:20:58.080 --> 0:20:59.800 day to the news you need to know at this hour. 0:21:00.080 --> 0:21:02.919 US futures are higher following another roller coaster ride on 0:21:02.920 --> 0:21:05.639 Wall Street. We get the details live with the Bloomberg's 0:21:05.720 --> 0:21:08.240 John Tucker, John and Karen n s and P futures 0:21:08.320 --> 0:21:11.760 right now up one point two percent, but global stocks 0:21:11.800 --> 0:21:14.720 still on course for their worst months since the start 0:21:14.720 --> 0:21:18.959 of the pandemic, heading for its worst January on record 0:21:19.040 --> 0:21:22.960 after yesterday's one point two percent decline. But as the 0:21:23.080 --> 0:21:26.359 Composite Index filled two point three percent bi there are 0:21:26.440 --> 0:21:29.439 science to sell off good ease, Wall Streets fear gage. 0:21:29.560 --> 0:21:32.560 The vix fell from a one year high, snapping six 0:21:32.640 --> 0:21:35.800 days of games, and now strategists from Goldman Sacks the 0:21:35.840 --> 0:21:38.719 City Group say it's time to buy Live in New 0:21:38.800 --> 0:21:41.639 York on John Tucker Bloomberg daybreak Man. JOHNA was a 0:21:41.720 --> 0:21:45.440 roller coaster ride from Microsoft investors as well. After the bell, 0:21:45.520 --> 0:21:48.640 the stock fell six percent on a revenue decline from 0:21:48.640 --> 0:21:51.879 its cloud computing business, but on the conference call, Microsoft 0:21:51.920 --> 0:21:54.800 executive said the Azure business can still drive growth and 0:21:54.840 --> 0:21:58.160 that soothed concerns. Right now, Microsoft shares are up nearly 0:21:58.200 --> 0:22:01.200 four percent in the pre market. Shares the Texas Instruments 0:22:01.240 --> 0:22:04.040 up in early trading. The chipmakers earnings and forecasts being 0:22:04.119 --> 0:22:06.600