WEBVTT - Bloomberg Daybreak: March 22, 2022 - Hour 1 (Radio) 0:00:02.880 --> 0:00:06.439 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:00:06.519 --> 0:00:10.520 day Break for Tuesday, March two. Coming up this hour, 0:00:10.800 --> 0:00:14.000 Ukraine offers peace talks to Moscow as it holds Russian 0:00:14.000 --> 0:00:17.840 troops at Bay. President Biden issues the warning on Vladimir Plutin, 0:00:17.960 --> 0:00:21.680 saying the leaders becoming increasingly desperate, and questions remaining on 0:00:21.760 --> 0:00:24.760 the answered on that deadly plane crash in China. New 0:00:24.840 --> 0:00:27.520 York's top health official says she doesn't expect to see 0:00:27.520 --> 0:00:30.720 a steep surge in COVID nineteen cases. Plus Supreme Court 0:00:30.800 --> 0:00:35.280 nominee Jackson faces senator's questions today. I'm Michael Barer, More Ahead, 0:00:35.479 --> 0:00:38.000 I'm John Stashdower in Sports Capita Rant and the NAT's 0:00:38.040 --> 0:00:40.920 beat the Jazz in Brooklyn, and another big name quarterback 0:00:41.120 --> 0:00:46.280 is on the move. That's all straight ahead on Bloomberg 0:00:46.320 --> 0:00:51.480 day Break on Bloomberg eleven Trio, New York, Bloomberg one, Washington, 0:00:51.560 --> 0:00:55.680 d C, Bloomberg one, O six one, Boston, Bloomberg nine sixties, 0:00:55.720 --> 0:00:59.680 San Francisco, Sirius x M one nineteen and around the 0:00:59.680 --> 0:01:03.440 world on Bloomberg Radio dot Com and via The Bloomberg Business. 0:01:03.520 --> 0:01:10.319 That good morning, I'm John Tucker. I'm Nathan Hagar. Futures 0:01:10.360 --> 0:01:12.640 are moving higher on this Tuesday morning. We're coming up 0:01:12.640 --> 0:01:14.399 to five oh one on Wall Street, and we checked 0:01:14.440 --> 0:01:17.200 the markets every fifteen minutes during the trading day on Bloomberg. 0:01:17.520 --> 0:01:22.240 Right now, SMP futures are up by seventeen point staff 0:01:22.240 --> 0:01:24.919 features of a hundred forty five, NASTAC features up sixty 0:01:24.959 --> 0:01:26.959 five points. The decks in Germany have eight tenths of 0:01:27.000 --> 0:01:30.440 one percent. The tenure treasury is down fourteen thirty seconds. 0:01:30.440 --> 0:01:32.560 The yield two point three four percent yield on the 0:01:32.560 --> 0:01:35.920 two year two point one seven. Nimex crude is down 0:01:35.920 --> 0:01:37.760 seven tenths per cent, or eighty two cents at a 0:01:37.800 --> 0:01:40.840 hundred eleven dollars thirty cents. A barrel comes called down 0:01:40.840 --> 0:01:43.000 a third of one percent, down six dollars thirty cents 0:01:43.000 --> 0:01:46.160 at nine fifty an ounce. The euro is at one 0:01:46.200 --> 0:01:48.280 point one zero zero five against the dollar. The end 0:01:48.360 --> 0:01:51.120 is at one twenty four eight. John Nathan will have 0:01:51.200 --> 0:01:53.360 more on the markets in a minute, but first, new 0:01:53.400 --> 0:01:57.000 developments involving the war. Ukraine's president says he's ready to 0:01:57.040 --> 0:01:59.920 discuss a deal with Russia in makes change for US 0:02:00.040 --> 0:02:04.520 cease fire. Amy Morris has details from our Bloomberg room 0:02:04.680 --> 0:02:08.639 in Washington. Ukrainian President voladimir's Lensky said late last night 0:02:08.680 --> 0:02:11.880 he is prepared to discuss a commitment from Ukraine not 0:02:11.960 --> 0:02:15.280 to seek NATO membership in exchange for a cease fire, 0:02:15.600 --> 0:02:19.359 the withdrawal of Russian troops, and to guarantee of Ukraine's security. 0:02:19.400 --> 0:02:22.520 He called it a compromise for everyone. He also repeated 0:02:22.520 --> 0:02:25.720 his skull for direct talks with Russian President Vladimir Putin, 0:02:25.960 --> 0:02:29.000 saying that unless he meets with him personally, it's impossible 0:02:29.040 --> 0:02:31.440 to know if Russia even wants to stop the war. 0:02:31.919 --> 0:02:34.880 In Washington, I maybe Morris Bloomberg daybreak, All right, Amy, 0:02:34.919 --> 0:02:38.440 thank you. President Zelensky says Ukrainian forces are still holding 0:02:38.480 --> 0:02:42.200 Russian troops at bayon several funds. Retired US Navy Commander 0:02:42.240 --> 0:02:45.600 Ward Carol says Ukraine has remained resilient. I can tell 0:02:45.639 --> 0:02:48.359 you from the legend of the Ghost of Kiev to 0:02:49.480 --> 0:02:53.399 the other things that they've done against overwhelming odds. Their 0:02:53.440 --> 0:02:56.600 air force has shown itself to be very capable. Retired 0:02:56.680 --> 0:02:59.720 Navy Commander Award Carol spoke with our Washington correspondent Joe 0:02:59.760 --> 0:03:02.720 matth You on Bloomberg Sound on. Catch the program weekdays 0:03:02.720 --> 0:03:05.800 at five pm Eastern on Bloomberg Radio. Meantime, the White 0:03:05.800 --> 0:03:09.400 House says Russian President Vladimir Putin's back is against the wall, 0:03:09.880 --> 0:03:13.400 and President Biden tells business leaders that makes him even 0:03:13.440 --> 0:03:17.440 more dangerous. He's suggesting Putin may soon use chemical weapons. 0:03:17.800 --> 0:03:21.120 More in this report from Bloomberg's Ad Baxter, Biden, in 0:03:21.120 --> 0:03:24.359 front of the Business Roundtable CEO quarterly meeting, said Putin 0:03:24.440 --> 0:03:28.320 is already sending up false flags about chemical weapons, saying 0:03:28.600 --> 0:03:32.040 the US has used them as well. They're also suggesting 0:03:32.080 --> 0:03:37.560 that Ukraine has biological and chemical weapons in Ukraine. That's 0:03:37.560 --> 0:03:40.800 a clear sign he's considering using both of those. He's 0:03:40.840 --> 0:03:43.880 already used chemical weapons in the past, and we should 0:03:43.880 --> 0:03:46.920 be careful. What about it's about to come. Biden says 0:03:46.960 --> 0:03:49.800 the US does not use chemical weapons, and the President 0:03:49.840 --> 0:03:53.520 also warned up a potential of increased cyber attacks in 0:03:53.600 --> 0:03:56.160 San Francisco. I'm at Baxter Bloomberg Day Break. All right, 0:03:56.200 --> 0:03:58.880 and thank you. Another major story where following brings us 0:03:58.920 --> 0:04:02.160 to yesterday's crash of a Boeing plane in China. All 0:04:02.240 --> 0:04:05.440 one thirty two people on border believed dead. The cause 0:04:05.480 --> 0:04:08.800 of the crash is still unknown. Experts remained baffled by 0:04:08.800 --> 0:04:12.720 the planes nose dive from twenty nine thousand feet. Bloomberg 0:04:12.800 --> 0:04:15.640 Stephen Angel has the latest from Hong Kong. She didn't thing. 0:04:15.680 --> 0:04:17.760 The President of China said he's calling for an all 0:04:17.760 --> 0:04:20.919 out investigation. They have found part of the wreckage. We 0:04:21.080 --> 0:04:24.799 just don't know how this accident happened on a flight 0:04:24.920 --> 0:04:28.240 from Kunming to guang Joe that was already just about 0:04:28.279 --> 0:04:31.559 to descend to Guangzhoe. It's very different from the Max 0:04:31.600 --> 0:04:35.200 accidents in Indonesia and in Ethiopia. Bloomberg Stephen Angle says 0:04:35.240 --> 0:04:39.040 the China Eastern Airlines crashes China's worst commercial aviation accident 0:04:39.120 --> 0:04:41.880 in more than a decade. Turning to the markets, now, 0:04:41.880 --> 0:04:45.000 a sell office in bonds is deepening and defends heare 0:04:45.080 --> 0:04:48.440 j Pale struck a more hawkish tone on his campaign 0:04:48.480 --> 0:04:51.720 against high inflation. You know, the expectation going into this 0:04:51.800 --> 0:04:54.680 year was that we would see basically see inflation peaking 0:04:54.720 --> 0:04:57.120 in the first quarter, then maybe leveling out, and then 0:04:57.160 --> 0:04:59.520 see a lot of progress in the second half. That 0:04:59.640 --> 0:05:02.080 story has already fallen, apart to the extend it continues 0:05:02.120 --> 0:05:05.960 to fall apart. My colleagues and I may well reach 0:05:06.040 --> 0:05:08.599 the conclusion that will need to move more quickly, and 0:05:08.600 --> 0:05:11.320 if so, we'll do so. Cheer palsas the FED is 0:05:11.320 --> 0:05:14.440 prepared to raise interest rates by half a point at 0:05:14.440 --> 0:05:17.800 the next policy meeting if needed. Tracy McMillan has had 0:05:17.800 --> 0:05:21.960 a global asset allocations strategy at Wells Fargo, preparing the 0:05:22.000 --> 0:05:26.599 markets for a really tough inflation fight, and so that 0:05:26.720 --> 0:05:29.800 means we're going to see higher yields, and we are 0:05:29.880 --> 0:05:32.200 seeing those higher yields in the front end of the 0:05:32.279 --> 0:05:37.479 curve where the FED really has more of an impact. 0:05:37.760 --> 0:05:41.559 Wells Fargo's Tracy McMillan says she prefers equities over fixed 0:05:41.560 --> 0:05:43.760 the income at the moment. Well we'll have much more 0:05:43.760 --> 0:05:46.680 in the future of interest rates and the fight against inflation. 0:05:46.760 --> 0:05:49.480 Later this morning, General will speak live with St. Louis 0:05:49.480 --> 0:05:53.159 FED President Jim Bullard. Stay tuned for that conversation coming 0:05:53.240 --> 0:05:55.359 up at a thirty a m. Wall Street time on 0:05:55.400 --> 0:05:58.320 Bloomberg Radio and television. And overnight we saw the bond 0:05:58.360 --> 0:06:01.239 sell off spread to Asias. Acts of the region gained 0:06:01.279 --> 0:06:03.919 as the bonds fell. Let's get the recap from Bloomberg's 0:06:03.960 --> 0:06:07.360 Juliet Sally and Singapore, Good morning, Julia, good morning John 0:06:07.360 --> 0:06:10.320 and Nathan Australia, and yields here higher since twenty eighteen. 0:06:10.360 --> 0:06:12.560 On the tenure note, while the Keywi equivalent was at 0:06:12.600 --> 0:06:15.440 a five year high. The yield differential between the US 0:06:15.480 --> 0:06:17.599 and Japan pushed the yen to a six year low, 0:06:17.839 --> 0:06:21.159 boosting Japanese equities, which returned from a long weekend. The 0:06:21.240 --> 0:06:23.200 Negate two to five rows one and a half percent 0:06:23.240 --> 0:06:26.360 in Tokyo to post its sixth consecutive session of games, 0:06:26.560 --> 0:06:29.720 the longest streak since September, and Ali Baba shares gain 0:06:29.800 --> 0:06:32.279 nearly ten percent in Hong Kong as the tech giant 0:06:32.320 --> 0:06:35.520 increased its shared buy back program to twenty five billion 0:06:35.680 --> 0:06:40.080 from fifteen billion dollars in Singapore. Juliet Sally Bloomberg daybreak, 0:06:40.160 --> 0:06:42.200 all right, Juliette, thank you. And on the earnings front 0:06:42.279 --> 0:06:45.760 this morning, shares of Nike are up nearly six percent. 0:06:45.839 --> 0:06:50.040 In early training companies quarterly results top estimates. Revenue outpaced 0:06:50.120 --> 0:06:54.320 expectations in all regions, including Greater China, where sales fell 0:06:54.400 --> 0:06:57.400 less than predicted. Right now, s and P futures are 0:06:57.520 --> 0:07:00.320 up seventeen point. Staff futures up a hundred fifth one. 0:07:00.720 --> 0:07:03.640 Nastic futures are hired by sixty four points. The tenure 0:07:03.680 --> 0:07:07.039 treasury is down fifteen thirty seconds. The yield two point 0:07:07.120 --> 0:07:11.240 three nimex crewed down seven tenth percent or eighty two 0:07:11.280 --> 0:07:14.480 cents at a hundred eleven dollars thirty cents of barrel. 0:07:14.760 --> 0:07:18.040 Straight ahead, your latest local headlines and a check of sports. 0:07:18.080 --> 0:07:24.880 This is Bloomberg alright, Thanks Nathan, five oh seven Old 0:07:24.920 --> 0:07:26.960 Wall Street Camps and to bring in Michael Barr with 0:07:27.000 --> 0:07:28.880 more on what else is going on in New York 0:07:28.960 --> 0:07:31.680 and around the world. John, thank you very much. We 0:07:31.760 --> 0:07:35.120 have breaking news. Russian opposition leader in jailed Kremlin critic 0:07:35.360 --> 0:07:40.360 Alexia Novaldi was found guilty of fraud today Moscow court 0:07:40.360 --> 0:07:43.120 convicted of all knew over allegations he stole from his 0:07:43.160 --> 0:07:47.880 anti corruption foundation. Prosecutors win a thirteen year prison sentence. 0:07:48.440 --> 0:07:52.560 New York's top health official is talking about the latest 0:07:52.680 --> 0:07:56.240 new omicron sub variant. It is growing more prevalent in 0:07:56.280 --> 0:08:01.080 the state. State Health Commissioner Mary Bassett. We don't expect 0:08:01.120 --> 0:08:03.760 to see a steep surge in cases in New York 0:08:03.880 --> 0:08:08.680 State UH at the moment. B A two comprises about 0:08:08.800 --> 0:08:11.800 forty two of all the cases here in the state. 0:08:12.080 --> 0:08:15.760 Governor Kathy Hokel also spoke with Health Commissioner Massett. We 0:08:15.840 --> 0:08:18.000 have not focused as a nation as much on the 0:08:18.080 --> 0:08:22.160 treatment capabilities. You should at first sign of symptoms let 0:08:22.200 --> 0:08:25.200 your doctor know so you can start getting the treatments 0:08:25.200 --> 0:08:29.080 that can stop the circumstances from getting worse. Governor HOCl 0:08:29.160 --> 0:08:33.000 says New York averaged around twenty one new COVID nineteen 0:08:33.040 --> 0:08:36.800 cases per day last week. That is up from the 0:08:36.840 --> 0:08:40.480 previous week. Donald Trump's lawyers say a New York judge 0:08:40.520 --> 0:08:44.040 abused his discretion with a decision last month requiring the 0:08:44.040 --> 0:08:47.480 former president to answer questions under oath and a civil 0:08:47.520 --> 0:08:52.000 investigation into his business practices and papers filed in a 0:08:52.160 --> 0:08:56.080 state appeals court. Trump's lawyers said the judge failed properly 0:08:56.120 --> 0:09:00.840 weigh constitutional and ethical concerns that they'd raise about New 0:09:00.920 --> 0:09:06.160 York Attorney General Latisia James's investigation. Judge Coltanji Brown Jackson 0:09:06.160 --> 0:09:09.640 faces questioning in her second day of Supreme Court confirmation 0:09:09.720 --> 0:09:13.480 hearings today. Jackson gave her opening remarks yesterday before the 0:09:13.480 --> 0:09:17.040 Senate Judiciary Committee. I have been a judge for nearly 0:09:17.080 --> 0:09:20.640 a decade now, and I take that responsibility and my 0:09:20.800 --> 0:09:25.439 duty to be independent very seriously. Democrats likely have the 0:09:25.520 --> 0:09:29.240 votes needed to confirm Judge Jackson on their own Global 0:09:29.240 --> 0:09:31.640 news twenty four hours a day on air and on 0:09:31.720 --> 0:09:35.640 Bloomberg Quick Take power by more than journalists and analysts 0:09:35.720 --> 0:09:38.080 more than a hundred twenty countries. Him Michael Barrn, this 0:09:38.120 --> 0:09:40.560 is Bloomberg. John all right, Michael, thank you very much. 0:09:44.280 --> 0:09:46.199 And it's kind of got a pot semma of ball 0:09:46.240 --> 0:09:49.360 Street Timetown with the Boomberg Sports Upday. Good morning, johns ssh, 0:09:49.400 --> 0:09:52.880 A morning John Peck. Are you even with Tom Brady's unretirement, 0:09:52.920 --> 0:09:55.440 Aaron Rodgers remaining in Green Bay. It's been studying how 0:09:55.440 --> 0:09:58.520 many big name quarterbacks have been traded. Russell Wilson to Denver, 0:09:59.040 --> 0:10:02.400 Shawn Watson that Cleveland, now, Matt Ryan to Indianapolis. He 0:10:02.440 --> 0:10:05.120 was in Atlanta for fourteen years. Once the NFL's MVP 0:10:05.280 --> 0:10:07.960 with the Colts, he'll replace Carson Wentz, who was traded 0:10:08.000 --> 0:10:10.160 to Washington a year after Wentz was traded to India. 0:10:10.160 --> 0:10:13.480 The Falcon's Duke qub will apparently be Marcus Mariota back 0:10:13.559 --> 0:10:15.640 up the last two seasons in Las Vegas. He signed 0:10:15.640 --> 0:10:18.000 as a free agent in Brooklyn. Next met the Jazz 0:10:18.040 --> 0:10:20.559 one fourteen one oh six Kevin Rant and led the 0:10:20.559 --> 0:10:23.520 way thirty seven points, nine rebounds. Ada says home game 0:10:23.600 --> 0:10:26.679 at No. Kyrie, Irvan and Ben Simmons still has not 0:10:26.920 --> 0:10:30.319 made his next debut at with a herniated disc. His 0:10:30.440 --> 0:10:32.640 coaches need Nat and we saw hope that he can 0:10:32.720 --> 0:10:35.000 come back. He's had moments during years rehab where he's 0:10:35.000 --> 0:10:37.520 on the court doing some things, so it looks like 0:10:37.600 --> 0:10:39.120 he's about to turn a corner and then there's a 0:10:39.120 --> 0:10:41.560 little setback. So I still feel optimistic that he can 0:10:41.600 --> 0:10:44.480 play for US. Mixed Tonight host Atlanta Rangers visit The 0:10:44.600 --> 0:10:47.640 Devil's Kevin Willard, the coach Seaton Hall the last twelve years, 0:10:47.760 --> 0:10:50.800 leaving to take over at Maryland, leading to some rather 0:10:50.920 --> 0:10:54.560 obvious speculation that he'll be replaced by Shaheen Holloway, former 0:10:54.600 --> 0:10:57.319 Seaton Hall player who has coached St. Peter's to the 0:10:57.400 --> 0:10:59.760 n C Double A S sixteen in Port St. Lucy. 0:11:00.160 --> 0:11:03.320 New Mets manager Buff Show, Walter Watts, New Mett picture 0:11:03.440 --> 0:11:08.120 Max Jerser called it as advertised five innings for sure, Zorillages, 0:11:08.160 --> 0:11:10.520 one run, Mets lost to the Marlin, three nothing Nankees 0:11:10.559 --> 0:11:13.480 and Tampa five two of the Phillies. Three pictures. Who 0:11:13.520 --> 0:11:16.800 could be in the rotation Jamison, tyn Est Cortez and 0:11:16.880 --> 0:11:20.560 Michael King, all with two school Listen Johns catch bloom 0:11:20.600 --> 0:11:23.719 Big Sports, John John, thanks very much. Ahead of the 0:11:23.840 --> 0:11:26.880 cash open on Wall Street futures right now in the 0:11:26.960 --> 0:11:30.400 green the down futures of one hundred fifty three points. 0:11:30.440 --> 0:11:32.920 That's a rise of four tensive a percent. The S 0:11:33.000 --> 0:11:35.400 and P even the future is up nineteen points, that's 0:11:35.440 --> 0:11:38.000 a fourth tensive a percent, and right now the NASTAC 0:11:38.080 --> 0:11:41.679 futures up seventy one points, up half a percent. As 0:11:41.760 --> 0:11:45.280 far as treasuries after the marks by fed Share J. 0:11:45.440 --> 0:11:49.760 Powell yesterday, the spread between the two and tenure treasuries 0:11:49.880 --> 0:11:53.360 right now just fifteen basis points. The tenure at two 0:11:53.400 --> 0:11:57.920 point three four percent, that is up five basis points. 0:11:58.280 --> 0:12:01.200 The two year yield right now two point one eight percent. 0:12:01.720 --> 0:12:07.480 You're listening to Bloomberg Day Boom. The situation on the 0:12:07.520 --> 0:12:10.319 ground in Ukraine appears to be growing more desperate. We'll 0:12:10.320 --> 0:12:13.760 get an update from Bloomberg Executive editor for International Government 0:12:14.040 --> 0:12:17.240 Ronsal and Mathison. That is straight ahead. You're listening to 0:12:17.320 --> 0:12:25.200 Bloomberg Daybreak, Markets, headlines and breaking news twenty four hours 0:12:25.240 --> 0:12:28.439 a day at Bloomberg dot Com, the Bloomberg Business Atland 0:12:28.520 --> 0:12:32.080 at Bloomberg Quick tap, this is a Bloomberg Business Flash. 0:12:38.200 --> 0:12:40.640 Nathan Hager stocks are climbing as a sell off in 0:12:40.760 --> 0:12:44.200 bonds deep ends after Federal Reserve share Jerome Pal signal 0:12:44.280 --> 0:12:47.240 to Central Bank will take more aggressive measures to clamp 0:12:47.320 --> 0:12:50.000 down on inflation. To check the markets every fifteen minutes 0:12:50.040 --> 0:12:52.199 during the trading day on Bloomberg. Right now, as in 0:12:52.280 --> 0:12:54.599 p futures are up nineteen points, Stown futures up a 0:12:54.679 --> 0:12:57.080 hundred sixty two, nast Act futures on the rise by 0:12:57.280 --> 0:13:01.120 seventy points. The tenure Treasury is down seven teen thirty seconds. 0:13:01.200 --> 0:13:03.240 The yield two point three five percent. You'll down the 0:13:03.280 --> 0:13:05.959 two year two point one nine. Nime X Screwed is 0:13:06.000 --> 0:13:08.280 down two point two per cent or two dollars forty 0:13:08.320 --> 0:13:10.680 two cents now at a hundred nine dollars seventy cents. 0:13:10.720 --> 0:13:13.160 Apparel come X Gold is down two tenths per cent 0:13:13.240 --> 0:13:15.760 or four dollars fifty cents at nineteen thirty thirty announced 0:13:16.000 --> 0:13:18.280 the euro one point one zero zero nine against the 0:13:18.320 --> 0:13:21.280 dollar British pound one point three zero. The end is 0:13:21.320 --> 0:13:23.959 at one twenty point four seven. At ten ann Wall 0:13:23.960 --> 0:13:26.439 Street time, we get the Richmond Fed Manufacturing Index and 0:13:26.679 --> 0:13:30.640 Carnival and Adobe are among companies scheduled to report earnings today. 0:13:31.000 --> 0:13:33.599 That's a Bloomberg business flash. Now here's Michael Barr with 0:13:33.720 --> 0:13:35.840 more on what's going on around the world. Good morning, Michael, 0:13:36.200 --> 0:13:39.760 Good morning Nathan. Ukrainian President Volodimir Zelenski is set to 0:13:40.080 --> 0:13:43.679 virtually deliver his address to the Japanese Parliament to raalley 0:13:43.720 --> 0:13:47.200 international support for his country's fight against the Russian invasion. 0:13:47.600 --> 0:13:51.400 Zelenski has made virtual addresses to the US Congress, as 0:13:51.440 --> 0:13:54.920 well as parliaments in Europe, Canada and Israel. The Russian 0:13:54.960 --> 0:13:58.839 Gord has found jailed Kremlin critic Alexi Novaldy guilty of 0:13:59.080 --> 0:14:02.880 large scale rawd Valdi is already serving a more than 0:14:03.000 --> 0:14:06.640 two years sentence in prison for parole violations. He says, 0:14:06.679 --> 0:14:09.920 we're fabricated. In the NBA of the Nats and Celtics one, 0:14:10.000 --> 0:14:12.280 the Wizards lost in the NHL, the Bruins beat the 0:14:12.320 --> 0:14:15.760 Canadians in overtime three two Global News twenty four hours 0:14:15.840 --> 0:14:18.640 a day on here and on Bloomberg Quick Tank, powered 0:14:18.679 --> 0:14:21.280 by more than seven hundred journalist and analysts more than 0:14:21.280 --> 0:14:25.280 a hundred twenty countries. Michael Barr, this is Bloomberg, John, Michael, 0:14:25.320 --> 0:14:27.840 thank you, coming up on five twenty on Wall Street, 0:14:27.920 --> 0:14:31.360 and we are lying from the Bloomberg Interact of Brokers Studios. 0:14:31.480 --> 0:14:36.080 This is Bloomberg Daybreak. The President Vladimir Zolinski says Ukrainian 0:14:36.120 --> 0:14:39.720 forces still holding Russian troops at bay as there may 0:14:39.800 --> 0:14:43.360 be signs that Russia is growing more desperate. We're joined 0:14:43.360 --> 0:14:47.320 the albuying Bloomberg Executive editor for International Government Rosalind Matheson 0:14:47.400 --> 0:14:50.720 for an update on the war in Ukraine. Ross Let's 0:14:50.760 --> 0:14:53.480 start off with the situation on the ground. What is 0:14:53.520 --> 0:14:57.480 the update. Well, we're seeing over night showing again as 0:14:57.600 --> 0:15:00.520 always by Russia in various parts of the country, a 0:15:00.600 --> 0:15:03.360 bit to the west and some places in the north, 0:15:03.480 --> 0:15:08.000 and again the situation in the south of Ukraine increasingly desperate. 0:15:08.080 --> 0:15:11.880 Reports that those humanitarian corridors only held for a very 0:15:11.960 --> 0:15:16.480 short time yesterday, Ukraine accusing Russian troops of firing on 0:15:16.800 --> 0:15:19.440 convoys of people as they're trying to leave some of 0:15:19.520 --> 0:15:22.840 those cities Mary Paul and other cities in the area 0:15:22.840 --> 0:15:25.840 and trying to block them from getting out, and saying 0:15:25.880 --> 0:15:29.640 that the situation inside those cities is increasingly desperate. Of course, 0:15:29.760 --> 0:15:33.520 Ukrainian troops are unable to cross the open land that 0:15:33.640 --> 0:15:36.720 we're required for them to get to Mariopold to try 0:15:36.760 --> 0:15:39.680 and break the siege directly, so they can't do that 0:15:39.840 --> 0:15:41.800 at the moment. They're just trying to convince Russia to 0:15:41.920 --> 0:15:45.080 allow enough of a pause in the fighting for people 0:15:45.160 --> 0:15:47.560 to properly leave. There are still at least tens of 0:15:47.680 --> 0:15:53.400 thousands of people there, so the humanitarian situations certainly is deteriorating. 0:15:53.520 --> 0:15:56.240 In terms of the actual conflict, there are signs that 0:15:56.320 --> 0:15:59.520 Russian troops are simply largely staying put where they are. 0:15:59.760 --> 0:16:03.200 They're trying to reinforce their positions. They're using landmines around 0:16:03.240 --> 0:16:06.480 themselves and so on, and they're not attempting to push forward, 0:16:06.840 --> 0:16:10.440 and that's really leaving the conflict in the aerial phase. Still, 0:16:10.560 --> 0:16:14.120 bombardment of cities again, overnight, bombardment of sites in the 0:16:14.200 --> 0:16:17.640 northwest and in the southeast are there signs that the 0:16:17.800 --> 0:16:23.280 Russian army is growing more desperate there are certainly reports, 0:16:23.280 --> 0:16:26.040 at least from the Ukraine side, that there are signs 0:16:26.120 --> 0:16:29.400 that Russian troops are losing their morale um. They're certainly 0:16:29.480 --> 0:16:32.640 struggling in some areas, it seems, to access fuel, to 0:16:32.800 --> 0:16:35.840 access food, and of course, given that they have very 0:16:35.920 --> 0:16:39.240 close ties to Ukraine, many of them themselves, either through family, 0:16:39.760 --> 0:16:43.440 through culture and history, that it doesn't go beyond belief 0:16:43.560 --> 0:16:45.760 to think that some Russian troops at least would be 0:16:45.920 --> 0:16:49.320 very reluctant to fight, particularly those have been conscripted and 0:16:49.480 --> 0:16:52.120 sent in for example, do they really want to be there? 0:16:52.520 --> 0:16:55.040 And so Ukraine is saying that they're seeing evidence some 0:16:55.200 --> 0:16:58.440 of those troops really are demoralized, not wanting to fight 0:16:58.560 --> 0:17:01.200 face to face, and again that sort suggest why Russia 0:17:01.640 --> 0:17:03.960 is instead trying to rely on things like missiles and 0:17:04.080 --> 0:17:07.440 rocket attacks. What's the significance of the use of these 0:17:07.640 --> 0:17:12.240 hypersonic weapons. Well, they are more targeted at least, they 0:17:12.320 --> 0:17:14.720 tend to be better at hitting what they're aiming for. 0:17:14.840 --> 0:17:17.720 And they're being used so far, at least in terms 0:17:17.760 --> 0:17:21.959 of cruise missiles and longer range missiles purely at military targets, 0:17:22.040 --> 0:17:26.240 so airports, things near airfields, weapons cases, those sorts of things, 0:17:26.560 --> 0:17:29.600 training centers, so sort of targeting, trying to hit key 0:17:29.680 --> 0:17:33.720 parts of the Ukraine military infrastructure. And they're enabled to 0:17:33.800 --> 0:17:37.240 be fired from Russia or Yelarus, for example. They don't 0:17:37.240 --> 0:17:39.760 have to be fired from within Ukraine. They're also a 0:17:39.840 --> 0:17:42.760 lot harder for Ukraine to to shoot down. They're very 0:17:42.800 --> 0:17:47.800 successful so far at shooting down airplanes and transport aircraft 0:17:48.280 --> 0:17:51.040 and its attacking tanks and so on, but missiles are 0:17:51.080 --> 0:17:53.800 another thing entirely. They fly at such high altitudes it's 0:17:53.800 --> 0:17:57.000 impossible for Ukraine to hit them. On the other hand, 0:17:57.040 --> 0:17:59.360 it also does show again the level of frustration that's 0:17:59.359 --> 0:18:02.600 probably creeping in to the Russian machinery here about their 0:18:02.680 --> 0:18:04.840 lack of progress on the ground that they're having to 0:18:04.960 --> 0:18:08.240 resort to using those kinds of missiles. And what is 0:18:08.320 --> 0:18:12.760 happening on the diplomatic front. Well, we have the Ukrainian 0:18:12.800 --> 0:18:17.080 President addressing the Italian parliament today. We're expecting a similar 0:18:18.000 --> 0:18:20.720 plea for further military aid. Certainly you can see that 0:18:21.280 --> 0:18:24.200 Ukraine needs at some point to get some extra aeroplanes 0:18:24.320 --> 0:18:26.879 that they have been losing their own fighter jets in 0:18:27.000 --> 0:18:30.000 this conflict, and he may plead for that again. He 0:18:30.119 --> 0:18:32.920 may call for direct nature intervention. Again, of course NATO 0:18:33.040 --> 0:18:36.600 says it cannot do that um and he may repeat 0:18:36.680 --> 0:18:39.080 his call for direct talks with the Russian president. He 0:18:39.160 --> 0:18:42.159 has said repeatedly that the only way that there can 0:18:42.200 --> 0:18:45.440 be any sort of agreement more broadly on this conflict 0:18:45.520 --> 0:18:48.000 is for the two leaders to speak one on one. 0:18:48.119 --> 0:18:50.320 So far, that's there's been no signs that the Russian 0:18:50.400 --> 0:18:54.119 President is willing to entertain that. But perhaps as we 0:18:54.240 --> 0:18:56.800 get more meat on the bones of a possible agreement 0:18:56.880 --> 0:18:59.040 at the lower level, that will shift up to have 0:18:59.200 --> 0:19:02.000 that conversation. But certainly you can expect him to call 0:19:02.080 --> 0:19:05.040 again on the Russian president to talk to him directly. 0:19:05.600 --> 0:19:08.760 Thirty seconds left. What happens at the European Unions summit 0:19:09.080 --> 0:19:12.000 this week, Well, there'll be a lot of shows of 0:19:12.160 --> 0:19:16.399 unity and again like that that front against Russia across 0:19:16.480 --> 0:19:19.000 not just later but the US, other countries and so on. 0:19:19.520 --> 0:19:22.119 There could be some discussion where the US is leaning 0:19:22.160 --> 0:19:24.600 on Europe to do more on the sanctions funt protected, 0:19:24.680 --> 0:19:27.240 particularly when it comes to oil and gas, the potential 0:19:27.320 --> 0:19:30.000 oil embargo. We do not expect that to come on 0:19:30.080 --> 0:19:32.680 the table as a formal discussion at this point. Europe 0:19:32.760 --> 0:19:35.200 is highly reluctant to do so with the oil, but 0:19:35.240 --> 0:19:37.440 you can expect a little bit of pressure about from 0:19:37.440 --> 0:19:40.520 the US coming through the President's visit to Brussels. Laugh 0:19:40.600 --> 0:19:44.359 this week. Thanks very much appreciated, Bloomberg Executive editor for 0:19:44.600 --> 0:19:48.720 International Government, Rosalind Matheson ahead of the cash open on 0:19:48.880 --> 0:19:51.639 Wall Street. Futures in the green right now, hasn't the 0:19:51.760 --> 0:19:56.160 EMUNI futures fifteen points higher the doll Emuni futures. I've 0:19:56.200 --> 0:19:59.399 wanted a twenty seven points nastal futures right now of 0:19:59.680 --> 0:20:06.320 fift four points. You're listening to Bloomberg day Break. The 0:20:06.440 --> 0:20:10.240 Bloomberg Weather for brod Caroline, clouds and some sunset, especially 0:20:10.359 --> 0:20:13.760 north of the city. High temperature about sixty tomorrow, cloudy, 0:20:13.800 --> 0:20:18.520 cooler showers developing during the afternoon behind temperature about fifty degrees. 0:20:22.080 --> 0:20:26.600 Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.760 --> 0:20:31.400 Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, 0:20:31.520 --> 0:20:34.920 Bloomberg one oh six one to San Francisco, Bloomberg Non 0:20:35.000 --> 0:20:38.040 sixty to the Country, Sirius XM to the one nineteen 0:20:38.200 --> 0:20:41.359 and around the globe to Bloomberg Business apt in Bloomberg 0:20:41.440 --> 0:20:50.800 Radio dot Com. This is Bloomberg Daybreak. It's five thirty 0:20:50.840 --> 0:20:53.200 on Wall Street. Good morning. I'm John Tucker and I'm 0:20:53.280 --> 0:20:55.360 Nathan Hager. We're about four hours away from the open 0:20:55.400 --> 0:20:57.240 of US trading. Let's catch you up to date on 0:20:57.320 --> 0:20:59.639 the news you need to know at this hour a 0:20:59.680 --> 0:21:02.640 lot of her Zelenski says Ukrainian forces are still holding 0:21:02.720 --> 0:21:05.480 Russian troops at bay. He is also indicating his nation 0:21:05.560 --> 0:21:08.240 would hold a referendum on the terms of any potential 0:21:08.320 --> 0:21:12.959 peace agreement. Zelenski addresses the Italian parliament this morning. Meantime, Russia, 0:21:13.119 --> 0:21:17.000 President Biden says Russia's use of hypersonic missiles against Ukraine 0:21:17.359 --> 0:21:20.360 is a sign that President Vladimir Putin is growing desperate. 0:21:20.880 --> 0:21:25.000 Now the President's warning about possible cyber attacks, They've just 0:21:26.119 --> 0:21:30.080 launched the hypersonic missile because it's the only thing that 0:21:30.200 --> 0:21:33.159 they can get through with an absolute certainty. He was 0:21:33.200 --> 0:21:38.119 an anticipating in the extent or strength of our unity, 0:21:38.640 --> 0:21:41.560 and the more his back is against the wall, the 0:21:41.720 --> 0:21:45.600 greater severity of the tactics he may employ. President Biden 0:21:45.720 --> 0:21:48.760 is asking the US private sector to quote harden your 0:21:48.880 --> 0:21:53.040 cyber defense immediately well. Meantime, John in China, investigators are 0:21:53.080 --> 0:21:55.600 trying to figure out why a China Eastern Airlines Boeing 0:21:55.680 --> 0:21:58.960 jet suddenly fell from the sky. The crash is believed 0:21:58.960 --> 0:22:01.480 to have killed all one hundred thirty two people on board. 0:22:01.760 --> 0:22:06.240 In response, China Eastern's grounded its fleet of Boeing seven hundreds, 0:22:06.400 --> 0:22:08.720 and turning to the market, says sell often bonds is 0:22:08.800 --> 0:22:11.880 deepening After the FED share Jpal struck a more hawkish 0:22:11.960 --> 0:22:15.439 toll of the central banks campaign against inflation. He's opening 0:22:15.520 --> 0:22:18.000 the door to a fifty basis point hike at the 0:22:18.119 --> 0:22:21.760 Central Banks upcoming meetings. We will take the necessary steps 0:22:21.800 --> 0:22:25.600 to ensure a return to price stability. In particular, if 0:22:25.640 --> 0:22:28.159 we conclude it is appropriate to move more aggressively by 0:22:28.280 --> 0:22:30.680 raising the federal funds rate by more than twenty five 0:22:30.720 --> 0:22:33.080 basis point at a meeting or meetings, we will do so. 0:22:34.040 --> 0:22:36.000 And if we determine that we need to tighten beyond 0:22:36.080 --> 0:22:39.400 common measures of neutral into a more restrictive stance, will 0:22:39.440 --> 0:22:42.240 do that as well. J Pal and other Fed officials 0:22:42.280 --> 0:22:45.400