WEBVTT - Bloomberg Daybreak: January 20, 2022 - Hour 2 (Radio) 0:00:02.880 --> 0:00:06.119 Live from the Bloomberg Interacted Berger Studios, as is Bloomberg 0:00:06.240 --> 0:00:10.320 day Break for Thursday, January two. Coming up this hour. 0:00:10.560 --> 0:00:14.280 Markets stabilized as the global bond sell off easy, President 0:00:14.320 --> 0:00:17.680 Biden Lawrence Russia may move in on Ukraine. The lighthouse 0:00:17.680 --> 0:00:20.360 push on voting rights collapses in the Senate, and the 0:00:20.400 --> 0:00:23.599 Supreme Court has a defeat to former President Donald Trump. 0:00:23.960 --> 0:00:26.400 New York Mayor Adams says enough is enough after an 0:00:26.440 --> 0:00:29.560 eleven month old child was hit by a stray bullets. 0:00:29.640 --> 0:00:32.919 New Jersey Man dates booster shots for healthcare workers. I'm 0:00:32.920 --> 0:00:37.080 Michael bloom Ahead, John Stasharn, Sports Cayrie every Land the 0:00:37.080 --> 0:00:39.559 next to a win in Washington, another win for the Rangers, 0:00:39.560 --> 0:00:44.920 the Devil's Laws, so did st John. That's all straight 0:00:44.920 --> 0:00:49.120 ahead on Bloomberg day Break on Bloomberg ELEMENTARYO, New York, 0:00:49.280 --> 0:00:54.000 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.160 --> 0:00:58.680 Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:59.040 --> 0:01:01.960 and around the world Lon Bloomberg Radio dot Com and 0:01:02.120 --> 0:01:08.720 via The Bloomberg Business A good morning. I'm Nathan Hagar 0:01:09.040 --> 0:01:11.360 and I'm Karen Moscow. US Future is on the rise 0:01:11.480 --> 0:01:13.840 this morning after yesterday sell off. We're coming up to 0:01:13.880 --> 0:01:15.560 six o one on Wall Street, and we checked the 0:01:15.560 --> 0:01:18.520 markets every fifteen minutes throughout the trading day. On Bloomberg, 0:01:18.880 --> 0:01:21.360 SNP Future is up twenty two points, Staff futures up 0:01:21.360 --> 0:01:24.400 a hundred thirty nine and NASDAG features up one eye. 0:01:24.720 --> 0:01:27.920 The decks in Germany is now little change. Ten year 0:01:27.959 --> 0:01:31.000 treasury up eight thirty seconds, held one point eight three percent, 0:01:31.160 --> 0:01:33.840 yield on the two year one point oh three percent, 0:01:34.319 --> 0:01:36.839 and I Max screwed oil is down three tons percent. 0:01:37.000 --> 0:01:40.160 Nathan karen Us futures are stable for now after the 0:01:40.280 --> 0:01:43.880 NASDAC ended yesterday in correction territory. Let's get more on 0:01:43.959 --> 0:01:47.039 this market action live with Bloomberg's John Tucker, John Nathan. 0:01:47.080 --> 0:01:49.720 The tech heavy NASTAC is now down ten point seven 0:01:49.760 --> 0:01:52.920 percent since its November peak. It fell more than one 0:01:52.920 --> 0:01:56.600 percent yesterday's sashion This morning, the global sovereign bond sell 0:01:56.640 --> 0:01:59.720 off has paused, and that may have ended the slide 0:01:59.720 --> 0:02:03.640 in equities for now. Vot to reserve. Governor Christopher Wallers's 0:02:03.640 --> 0:02:06.960 policy makers are unlikely to opt for a bigger than 0:02:07.000 --> 0:02:10.680 expected rate increase in March. Investor focus has also turned 0:02:10.680 --> 0:02:14.480 to corporate earnings. We've had upbeat earnings results from Morgan Stanley, 0:02:14.520 --> 0:02:17.480 United Health, and Proctor and Gamble. There's still plenty of 0:02:17.520 --> 0:02:21.200 worry though. Strategist at HSBC just cut the recommendation on 0:02:21.360 --> 0:02:24.639 US docks the neutral from overweight. Live in New York, 0:02:24.639 --> 0:02:27.600 I'm John Tucker Bloomberg, debreak. All right, John, thank you. 0:02:27.600 --> 0:02:30.519 He turned to Capitol Hill now for another major story where, 0:02:30.560 --> 0:02:34.280 following President Biden's push for voting rights, legislation has collapsed 0:02:34.280 --> 0:02:36.440 in the Senate, and Amy Morris has the details from 0:02:36.440 --> 0:02:40.440 mar Bloomberg ninety nine one newsroom in Washington. First, Republicans 0:02:40.520 --> 0:02:44.320 used Senate filibuster rules to block the legislation, which includes 0:02:44.400 --> 0:02:47.519 the Freedom to Vote Act and a measure requiring states 0:02:47.560 --> 0:02:50.519 to get pre clearance to change their voting laws. When 0:02:50.560 --> 0:02:53.280 Majority leader Chuck Schumer tried to change the rule to 0:02:53.360 --> 0:02:56.639 allow a simple majority vote, Democrats Joe Manchin and Kirsten 0:02:56.720 --> 0:03:00.120 Cinema voted against it. Earlier, President Biden had said that 0:03:00.160 --> 0:03:02.600 Democrats would likely have to break up the voting rights 0:03:02.639 --> 0:03:05.799 bill and his economic agenda, which is stalled to get 0:03:05.840 --> 0:03:08.880 any of it through Congress. In Washington, I'm Amy Morris 0:03:08.919 --> 0:03:11.680 Bloomberg Daybreak and amy. That voting rights defeat came after 0:03:11.760 --> 0:03:14.520 a wide ranging news conference marking the end of President 0:03:14.600 --> 0:03:17.320 Biden's first year in office. He faced questions on everything 0:03:17.320 --> 0:03:20.600 from the pandemic to his stalled economic agenda and pensions 0:03:20.600 --> 0:03:23.320 with Russia. On many of those issues, the President says 0:03:23.320 --> 0:03:27.280 he's outperformed expectations. I don't think I've overpromised at all, 0:03:27.320 --> 0:03:29.600 and I'm gonna case stay on this track. Still. The 0:03:29.600 --> 0:03:32.800 President did acknowledge Americans are frustrated by the pandemic and 0:03:32.960 --> 0:03:35.360 rising prices. He says it's up to the Federal Reserve 0:03:35.440 --> 0:03:38.280 to get inflation under control. Given the strength of our 0:03:38.280 --> 0:03:42.800 economy and the pace of recent price increases, it's appropriate 0:03:43.200 --> 0:03:46.560 as a Federal Chairman, Chairman Pal, the FED Chairman Paal 0:03:46.640 --> 0:03:51.000 has indicated to recalibrate the support that is now necessary. 0:03:51.160 --> 0:03:54.520 President also says Russia could move in on Ukraine. How 0:03:54.560 --> 0:03:57.240 the US and NATO respond, he says, depends on what 0:03:57.360 --> 0:04:01.560 Russia does one my in you incursion, and then we 0:04:01.640 --> 0:04:03.440 end up having to fight about what to do and 0:04:03.520 --> 0:04:06.440 not do, etcetera. But if they actually do what they're 0:04:06.440 --> 0:04:09.120 capable of doing with the forced amass on the border. 0:04:09.600 --> 0:04:12.720 It is going to be a disaster for Russian After 0:04:12.760 --> 0:04:15.200 the news conference, the White House clarified that any Russian 0:04:15.200 --> 0:04:17.760 troop movement across the Ukrainian border would be met with 0:04:17.800 --> 0:04:21.440 a swift, severe, and united response. Well, Nathan plenty of 0:04:21.480 --> 0:04:25.400 reaction to President Biden's news conference, especially as comments on Russia. 0:04:25.480 --> 0:04:29.279 And here's Bloomberg Politics contributor Rick Davis. When you're dealing 0:04:29.279 --> 0:04:32.920 with foreign policy signals and how clear they are are 0:04:33.000 --> 0:04:36.480 really critical to the outcomes. If Vladimir Putin was watching 0:04:36.480 --> 0:04:39.120 that press conference, I'm thinking he goes back to his 0:04:39.160 --> 0:04:41.760 advisors that, yeah, did he just give me permission to 0:04:41.880 --> 0:04:45.279 roll across the border? And Bloomberg Politics contributor Rick Davis 0:04:45.279 --> 0:04:48.640 spoke with our Washington correspondent Joe Matthew on Bloomberg Sound 0:04:48.680 --> 0:04:51.719 on Catch the program weekdays at five pm Eastern on 0:04:51.760 --> 0:04:55.119 Bloomberg Radio. Let meantime caring at the Supreme Court, former 0:04:55.160 --> 0:04:58.200 President Donald Trump has suffered a defeat. Justice has cleared 0:04:58.200 --> 0:05:00.480 the release of some White House documents related to the 0:05:00.600 --> 0:05:04.360 January sixth insurrection. Bloomberg said Baxter has the story, so 0:05:04.400 --> 0:05:06.960 the documents can be released to the January Sixth House 0:05:06.960 --> 0:05:10.880 Committee investigating the attempt at insurrection of the Capitol. National 0:05:11.000 --> 0:05:14.320 Archives can now turn over about eight hundred pages of material, 0:05:14.360 --> 0:05:20.320 including visitor and call logs, emails, draft speeches, and handwritten notes. 0:05:20.720 --> 0:05:23.400 Trump was trying to override President by his decision to 0:05:23.440 --> 0:05:26.920 way of executive privilege, but the Court decided to side 0:05:26.960 --> 0:05:30.839 with the committee. Clarence Thomas was the only dissent. In 0:05:30.960 --> 0:05:33.919 San Francisco, I'm at Baxter Bloomberg Daybreak, All right and 0:05:33.960 --> 0:05:36.359 thank you Well. Outside of politics are also focused on 0:05:36.400 --> 0:05:39.120 the controversial rollout of five G. So far, the country 0:05:39.200 --> 0:05:42.320 has avoided major airline disruptions tied to the service, and 0:05:42.360 --> 0:05:44.600 we get the latest life from Bloomberg's ny A Young, 0:05:44.640 --> 0:05:46.680 Good Morning, Ready to good morning, Karen. The f a 0:05:46.760 --> 0:05:50.520 A is clearing about six of the US aviation fleet 0:05:50.560 --> 0:05:54.200 to operate at airports without fear of five G interference, 0:05:54.440 --> 0:05:57.359 and the new safety measures also increased the number of 0:05:57.400 --> 0:06:00.840 airports where flights can safely operate. The agencies list of 0:06:00.839 --> 0:06:04.800 cleared aircraft includes most Boeing and Airbus models, but what 0:06:04.920 --> 0:06:06.560 you won't see on the list are any of the 0:06:06.640 --> 0:06:10.120 regional jet models that perform roughly half of all scheduled 0:06:10.160 --> 0:06:13.440 airline flights now. While the US avoided major disruptions on 0:06:13.480 --> 0:06:16.160 the first official day of five G service, the f 0:06:16.320 --> 0:06:19.880 a A warrants that disruptions to flights are still possible. 0:06:20.400 --> 0:06:22.480 Live in New York, I'm gonna need a young Bloomberg 0:06:22.560 --> 0:06:25.040 day Break, Okay, Nita, Thanks. Let's get back to markets now, 0:06:25.040 --> 0:06:27.560 where the focus is on earnings this week. Up next, 0:06:27.640 --> 0:06:30.440 Netflix reports results after the closing bell. Let's get a 0:06:30.480 --> 0:06:33.960 preview from Bloomberg's Tom Busby. The big focus for investors 0:06:33.960 --> 0:06:37.280 in Netflix's fourth quarter earnings report is subscriber editions in 0:06:37.320 --> 0:06:39.599 the final three months of twenty twenty one and its 0:06:39.600 --> 0:06:42.080 forecast for the current quarter. In light of the price 0:06:42.160 --> 0:06:45.479 Hi Get just announced for U S subscribers. Bloomberg estimates 0:06:45.600 --> 0:06:49.040 eight point three million more global ads last quarters, slightly 0:06:49.080 --> 0:06:52.080 below the streaming giants own prediction of eight point five 0:06:52.200 --> 0:06:55.320 million editions. Revenue forecast to be seven point seven one 0:06:55.360 --> 0:06:58.919 billion dollars, with earnings per share estimated at eighty cents. 0:06:58.960 --> 0:07:01.680 Tom Busby bloom Burg Daybreak. All right, Tom, thank you. 0:07:01.680 --> 0:07:04.480 And big tech also a focus right now on Capitol Hill, 0:07:04.520 --> 0:07:07.440 a tech focused antitrust villain the Senate has been expanded 0:07:07.480 --> 0:07:11.000 to include China's two biggest social media companies. Lawmakers added 0:07:11.000 --> 0:07:13.360 TikTok and we ch Out to the measure after criticism 0:07:13.440 --> 0:07:16.960 the legislation would give an advantage to foreign firms. And 0:07:17.200 --> 0:07:24.640 this is Bloomberg, right, Karen, thanks six o seven on 0:07:24.640 --> 0:07:27.200 Wall Street, rain and forty degrees in Central Park for 0:07:27.280 --> 0:07:29.600 that rain is gonna change over into snow this morning. 0:07:29.600 --> 0:07:32.040 We're under a winter weather advisory and it is slippery 0:07:32.080 --> 0:07:34.160 on the roads. We'll get details on all the accidents 0:07:34.200 --> 0:07:37.280 come up in traffic shortly. First Michael Barr with what 0:07:37.360 --> 0:07:39.120 else is going on in New York and around the world. 0:07:39.120 --> 0:07:42.120 Good morning, Michael, Good morning Nathan. The Dry State area, 0:07:42.200 --> 0:07:45.400 as you mentioned, getting another dose of winter weather Bloomberg. 0:07:45.440 --> 0:07:48.280 Meteor relogious Rob Carolin as the latest, Michael. The National 0:07:48.280 --> 0:07:50.720 Weather Service has a winter weather advisory effect for the 0:07:50.720 --> 0:07:52.640 city in parts in New Jersey this morning. A cool 0:07:52.720 --> 0:07:54.760 front is going to cross the area. That's gonna change 0:07:54.760 --> 0:07:56.640 any rain over to some wet snow. Right now, it 0:07:56.640 --> 0:07:59.440 looks like the accumulations will be limited according to me, 0:07:59.560 --> 0:08:01.360 be as much is two inches, especially across some of 0:08:01.360 --> 0:08:04.840 the higher hilltops in northwestern New Jersey. Precipitation should be 0:08:04.880 --> 0:08:07.520 done by midday. Temperatures will be falling, so folks need 0:08:07.560 --> 0:08:09.640 to be careful because there will be some slick spots, 0:08:09.760 --> 0:08:12.680 especially this afternoon. Michael, thank you very much. Rob. New 0:08:12.720 --> 0:08:16.240 York Mayor Eric Adams says enough is enough after an 0:08:16.280 --> 0:08:19.640 eleven month old child is in critical but stable condition 0:08:19.680 --> 0:08:22.160 after she was struck in the face by a stray bullet. 0:08:22.560 --> 0:08:24.760 The child was in a parked car with her mother 0:08:24.800 --> 0:08:27.640 while her father went into a grocery store. Police say 0:08:27.640 --> 0:08:31.280 a man chasing another ran and opened fire, and then 0:08:31.320 --> 0:08:34.280 the bullet struck the child in the bronx. Adams, who 0:08:34.320 --> 0:08:36.760 campaigned on a pledge to make the city safer, spoke 0:08:36.800 --> 0:08:40.080 to reporters after meeting the girls parents at the hospital. 0:08:40.480 --> 0:08:44.400 It was a total disregard for the innocent people who 0:08:44.480 --> 0:08:49.520 are walk into these streets. This is not the city 0:08:49.800 --> 0:08:52.920 how children should grow up in. Mayor Adams says he's 0:08:52.960 --> 0:08:55.680 going to stay in the streets until the city is safe. 0:08:56.200 --> 0:08:59.600 New York City officials want to send drivers and cyclists 0:08:59.600 --> 0:09:04.160 a message lax enforcement of traffic rules is ending. Mayor 0:09:04.200 --> 0:09:07.040 Adams said the city is launching a multimillion dollar ad 0:09:07.120 --> 0:09:10.880 campaign to highlight pedestrian safety initiatives and a new traffic 0:09:11.000 --> 0:09:14.319 rule requiring cyclists and drivers to come to a complete 0:09:14.360 --> 0:09:17.960 stop at all intersections. Adam says people must learn the 0:09:18.040 --> 0:09:20.480 rules of the road or get off the road. New 0:09:20.559 --> 0:09:23.840 Jersey Governor Phil Murphy says he will require healthcare workers 0:09:24.040 --> 0:09:27.520 and employees in nursing homes and prisons to get fully 0:09:27.600 --> 0:09:31.720 vaccinated and boosted against COVID nineteen, dropping an option to 0:09:31.840 --> 0:09:34.520 either get the shot to be tested. This is an 0:09:34.600 --> 0:09:38.800 unfathomable number. Roughly five thousand New Jersey ands have tested 0:09:38.800 --> 0:09:44.800 positive for COVID, and overwhelmingly with the omicron variant. Governor 0:09:44.840 --> 0:09:47.800 Murphy says that healthcare workers who are unvaccinated will have 0:09:47.960 --> 0:09:50.400 until next Thursday to get their first shot. Until the 0:09:50.480 --> 0:09:53.520 end of February for their second Global news twenty four 0:09:53.520 --> 0:09:56.360 hours a day on air and on Bloomberg Quicktake, powered 0:09:56.360 --> 0:09:59.120 by more than twenty seven hundred journalists and analysts, are 0:09:59.120 --> 0:10:02.719 more than a countries. Michael Bard, this is Bloomberg, ain't it? 0:10:02.880 --> 0:10:09.480 Thanks Michael, coming up to six ten on Wall Street 0:10:09.480 --> 0:10:12.480 time for the Bloomberg Sports Update with John's thanks. Nathan 0:10:12.559 --> 0:10:14.360 Rangers went on a long road trip one three or 0:10:14.360 --> 0:10:16.680 five back at the Garden, first time in over two weeks, 0:10:16.720 --> 0:10:19.080 another win for the Blue Church. They were down three 0:10:19.120 --> 0:10:21.800 to one, they came back and beat Toronto six to three, 0:10:21.880 --> 0:10:24.720 their twenties sixth win of the season only ten losses. 0:10:24.800 --> 0:10:27.680 Ryan Reads for his first two goals as a Ranger, 0:10:27.720 --> 0:10:29.960 Adam Fox scored a pair, and Chris Cryer got his 0:10:30.000 --> 0:10:32.599 twenty five of the season. Devils lost their third in 0:10:32.640 --> 0:10:34.880 a row, beating home by Arizona four to one. Nets 0:10:34.880 --> 0:10:38.240 in Washington. A road game means the Kyrie Irving game. 0:10:38.320 --> 0:10:40.640 Good thing for Brooklyn. He scored thirty points. The Nets 0:10:40.679 --> 0:10:44.160 hung on top the Wizards one eight team the Marcus 0:10:44.160 --> 0:10:46.520 Aldridge at twenty seven Nicks row and two on this 0:10:46.640 --> 0:10:50.160 homestand tonight they take on New Orleans and Philadelphia. The Sixers. 0:10:50.240 --> 0:10:52.920 Joe lm be limited only twenty seven minutes due to 0:10:52.920 --> 0:10:56.520 an injury, still scored fifty points in a win over Orlando. 0:10:56.640 --> 0:11:00.360 Another center Nikola Yoki's forty nine points in a triple double, 0:11:00.800 --> 0:11:03.160 and Denverse two point win over the l A Clippers. 0:11:03.200 --> 0:11:06.080 The Lakers keep losing, and they fell at home to Indiana. 0:11:06.360 --> 0:11:09.199 Lakers have lost four or five under five hundred they 0:11:09.200 --> 0:11:12.480 insist they have no plans to fire their coach. Frank Vogel. 0:11:12.559 --> 0:11:14.959 St John's went out to Omaha, got blown out by 0:11:15.000 --> 0:11:18.400 Creighton eighties seven sixty four. Villanova up set at home 0:11:18.440 --> 0:11:23.360 by Marquette. Rutgers topped Iowa, low scoring affair forty six 0:11:23.440 --> 0:11:27.760 Australian Open. Daniel Medvedev is playing now against fiance Nick Karios. 0:11:27.760 --> 0:11:31.120 Medvedev leads two sets to one. Giants said they would 0:11:31.160 --> 0:11:33.640 hire a general manager and then worry about getting a coach, 0:11:33.679 --> 0:11:37.240 and yet they have received permission to interview a coaching candidate. 0:11:37.320 --> 0:11:41.920 Dan Quinn, former Atlanta coach, now the defensive coordinator in Dallas. 0:11:42.000 --> 0:11:45.520 John Stash, Howard Bloomberg Sports, Nathan all Right, John, thank 0:11:45.520 --> 0:11:47.800 you right now. S and P futures are up twenty 0:11:47.880 --> 0:11:50.959 five point, Staff futures up a hundred fifty nine, NASTAC 0:11:51.040 --> 0:11:53.360 futures on the rise by a hundred twenty six points. 0:11:53.360 --> 0:11:55.640 The ten year treasury is up seven thirty seconds, the 0:11:55.760 --> 0:11:58.160 yield one point eight three percent, and the yield on 0:11:58.200 --> 0:12:01.520 the two year right now one point zero percent. You're 0:12:01.559 --> 0:12:09.280 listening to Bloomberg, Gabriel Bloomberg eleven three oh weather rain 0:12:09.360 --> 0:12:11.960 changes to snow this morning ties in the low forties. 0:12:11.960 --> 0:12:14.520 Temperatures falling through the day. By tomorrow will only be 0:12:14.520 --> 0:12:17.360 in the low twenties for highs upper twenties by Saturday. 0:12:17.360 --> 0:12:23.280 Currently rain and forty in Central Park markets. Headlines and 0:12:23.360 --> 0:12:26.400 breaking news twenty four hours a day at Bloomberg dot 0:12:26.400 --> 0:12:30.319 com the Bloomberg Business and at Bloomberg Quick Tape is 0:12:30.320 --> 0:12:39.360 a Bloomberg Business lash and I'm Karen Moscow and US 0:12:39.480 --> 0:12:43.160 dot index futures are on the rise this morning. European 0:12:43.200 --> 0:12:47.080 the stocks have trimmed their losses and moved higher. Now 0:12:47.640 --> 0:12:50.520 this is a global sovereign bond sell off, pauses and 0:12:50.600 --> 0:12:53.200 investors turn their focus to corporate earnings. We checked the 0:12:53.200 --> 0:12:56.280 markets every fifteen minutes throughout the trading day on Bloomberg 0:12:56.280 --> 0:12:58.560 Guess and P futures at twenty seven points this morning. 0:12:58.559 --> 0:13:02.040 Down futures have one seven seven Nasdack futures of one 0:13:02.120 --> 0:13:04.559 hundred forty and the decks in Germany is now up 0:13:04.559 --> 0:13:07.160 to tens of upper set and your treasury of e 0:13:07.240 --> 0:13:09.800 thirty seconds. He had three percent, they yelled on the 0:13:09.840 --> 0:13:13.120 two year one oh three percent. Nimex screwed oils down 0:13:13.120 --> 0:13:15.080 a third of percent or twenty eight cents at eighty 0:13:15.120 --> 0:13:18.000 six dollars sixty eight cents a barrel. Comic Gold down 0:13:18.040 --> 0:13:20.000 a third of a percent as well, down six dollars 0:13:20.000 --> 0:13:22.839 ten cents at eighteen thirty nine forty announced and as 0:13:22.840 --> 0:13:25.480 a Bloomberg Business flashdown, here's Michael Barr with more on 0:13:25.600 --> 0:13:28.040 what's going on around the world. Michael Karen, thank you 0:13:28.160 --> 0:13:30.719 very much. President Joe Biden says he thinks Russia will 0:13:30.760 --> 0:13:34.559 invade Ukraine during his news conference yesterday. Biden also warned 0:13:34.800 --> 0:13:38.040 President Vladimir Putin that his country would pay a dear 0:13:38.160 --> 0:13:40.720 price in lives lost and a possible cut off from 0:13:40.720 --> 0:13:43.559 the global banking system if it does ask for NATO. 0:13:43.840 --> 0:13:46.760 The likelihood that Ukraine is going to join NATO in 0:13:46.760 --> 0:13:50.680 the near term is not very like. President Biden also 0:13:50.760 --> 0:13:53.920 said a minor incursion by Russia would elicit a lesser response. 0:13:53.960 --> 0:13:56.280 He later sought to clarify that he was referring to 0:13:56.679 --> 0:14:00.520 a non military action, such as a cyber attack. The NBA, 0:14:00.600 --> 0:14:04.120 the Nets beat the Wizards on the Celtics lost NHL, 0:14:04.160 --> 0:14:07.240 The Rangers won, The Devil's Lost. Global News twenty four 0:14:07.280 --> 0:14:09.760 hours a day on air and on Bloomberg Quick take 0:14:09.800 --> 0:14:13.719 powered by more than hundred journalists and analysts in more 0:14:13.760 --> 0:14:17.240 than one hundred twenty countries. Michael Barr and this is 0:14:17.280 --> 0:14:20.200 Bloomberg NA. Thanks Michael. It's six nineteen on Wall Street 0:14:20.280 --> 0:14:22.920 Live from the Bloomberg Interractor Broker Studios. This is Bloomberg 0:14:23.000 --> 0:14:24.640 Day Break. Let's take a look at markets now and 0:14:24.680 --> 0:14:28.160 the long term outlook for risk assets. Inflation concerns are 0:14:28.240 --> 0:14:30.880 leading to worries about tightening from the Fed, and this 0:14:30.920 --> 0:14:34.320 time last year the forecast was for no rate increases 0:14:34.440 --> 0:14:37.640 this year. Now predictions have the Central Bank hiking anywhere 0:14:37.680 --> 0:14:41.000 from fifty to a hundred twenty five basis points by December, 0:14:41.040 --> 0:14:44.200 and that has led to volatility and rate and equities markets, 0:14:44.480 --> 0:14:47.360 particularly in high growth tech stocks. For more, let's get 0:14:47.360 --> 0:14:50.200 the view from the head of Fidelity International CEO and 0:14:50.400 --> 0:14:53.280 Richards sat down this morning for an interview with Bloomberg's 0:14:53.280 --> 0:14:56.960 Francine Lakwa. Here's part of that conversation now on inflation, 0:14:57.040 --> 0:14:59.600 have you changed your mind on how quickly central banks 0:14:59.680 --> 0:15:02.480 should move on I think in December you said that 0:15:02.560 --> 0:15:03.920 you know they would have to be an await and 0:15:03.960 --> 0:15:07.040 C situation to have some concrete data before they acted. 0:15:08.480 --> 0:15:10.680 I think that that the point that we've been quite 0:15:10.720 --> 0:15:13.120 consistent of for quite a few months now is that 0:15:13.160 --> 0:15:17.200 the risk of a policy mistake by being too hawkish 0:15:17.640 --> 0:15:20.560 was probably the bigger risk on a balance of probabilities, 0:15:20.600 --> 0:15:23.800 which is not to say there aren't quite significant challenges 0:15:24.280 --> 0:15:26.920 in the inflation picture, and I think we'd probably stand 0:15:26.920 --> 0:15:31.680 by that, particularly now when you see that we've got 0:15:31.720 --> 0:15:35.640 this tension between yes, rising inflation, but at the same 0:15:35.680 --> 0:15:38.720 time some real signs that maybe the growth picture is 0:15:38.720 --> 0:15:42.200 not quite as rosy as it was for five months ago. 0:15:42.240 --> 0:15:44.720 And that's the combination of a macron but just the 0:15:44.760 --> 0:15:49.360 way the whole supply chain challenges have played out. And 0:15:49.440 --> 0:15:51.720 I think when if you're a central banker right now, 0:15:51.760 --> 0:15:54.200 you're in that going to catch twenty two situation because 0:15:54.240 --> 0:15:56.920 you don't want to kill gross that might already be 0:15:57.000 --> 0:15:59.760 under some pressure, but at the same time you've got 0:15:59.800 --> 0:16:03.160 this big challenge on the inflation front. If you unpack 0:16:03.520 --> 0:16:07.280 the inflation challenges, they're quite different in different parts of 0:16:07.320 --> 0:16:08.640 the world. And one of the things I think is 0:16:08.720 --> 0:16:11.840 very striking is the fact that inflation numbers look much 0:16:11.840 --> 0:16:14.520 worse in the US to the way they look in Europe. 0:16:15.040 --> 0:16:17.160 In Europe, there's still a challenge, but of course still 0:16:17.200 --> 0:16:21.680 significantly higher than for example, Japan. So the inflation picture 0:16:21.800 --> 0:16:24.760 is playing out for a whole host of different reasons, 0:16:24.760 --> 0:16:28.080 and it's not clear that those reasons will necessarily respond 0:16:28.200 --> 0:16:30.880 quickly to interest rate rises, which suggest that the interest 0:16:30.960 --> 0:16:34.080 rate rises are always the answer. Do central banks need 0:16:34.120 --> 0:16:37.320 to adapt their language to communicate better with the markets 0:16:37.400 --> 0:16:39.480 or how do you think this will play out? Like 0:16:39.560 --> 0:16:42.280 the market reaction to what the central banks are saying 0:16:42.280 --> 0:16:45.160 more than doing so. I think there's two things that 0:16:45.120 --> 0:16:46.920 are really worth thinking about. I think the central banks 0:16:47.000 --> 0:16:51.800 are really keen to manage our inflation expectations. They came 0:16:51.840 --> 0:16:54.440 more about care more about our inflation expectations than they 0:16:54.480 --> 0:16:57.320 do about absolute levels of inflation, and I think you 0:16:57.360 --> 0:16:59.240 can already see that by the responses that there have 0:16:59.320 --> 0:17:02.240 been out of there. The second is, I think there's 0:17:02.280 --> 0:17:06.040 a very close attention paid to real yields because when 0:17:06.080 --> 0:17:09.840 you look at those long term macro trends, very high 0:17:09.920 --> 0:17:15.720 debt levels and and and a more challenging demographic short 0:17:15.840 --> 0:17:19.600 term lifts and inflation because of changes in demand pattern, 0:17:19.760 --> 0:17:24.399 because of changes in employment choices, and because of that 0:17:24.480 --> 0:17:29.400 supply chain disruption. They're all relatively short or at least 0:17:29.400 --> 0:17:33.760 cyclical issues against that very long structural shift that you've 0:17:33.800 --> 0:17:36.800 got got going on with demographics and with high debt levels, 0:17:36.880 --> 0:17:39.679 and so I think it's the real yield that really 0:17:40.040 --> 0:17:44.719 the central bankers are most focused on, because it's if 0:17:44.880 --> 0:17:49.119 if that rises significantly, certainly if it gets above zero, 0:17:49.160 --> 0:17:51.679 then you start to have a real risk of a 0:17:51.800 --> 0:17:53.879 very hard landing. And I don't think that is on 0:17:53.920 --> 0:17:56.320 anybody's roadmap. So it's a central ancer. I think that's 0:17:56.359 --> 0:17:58.800 what you're playing with right now. Not get our inflation 0:17:58.840 --> 0:18:03.680 expectations down matters more than the absolute level of inflation today. 0:18:03.840 --> 0:18:05.320 So what does it mean for the markets? And is 0:18:05.320 --> 0:18:07.639 this the right time to bed on parts of the 0:18:07.680 --> 0:18:11.960 markets that could benefit from the end of the pandemic? Well, 0:18:12.000 --> 0:18:13.840 I mean the end of pandemic. That's that's a really 0:18:13.880 --> 0:18:16.000 big statement out there. I mean, what what is what 0:18:16.000 --> 0:18:17.679 do we mean by the end of the pandemic? Do 0:18:17.720 --> 0:18:20.080 we mean just adjusting to the fact that we're going 0:18:20.119 --> 0:18:23.359 to have ongoing waves over periods of time and we 0:18:23.400 --> 0:18:26.080 need to get better at adapting to them. I think 0:18:26.680 --> 0:18:29.720 for what it means for markets is that I think 0:18:29.800 --> 0:18:34.520 central banks if they see the inflation expectations maintained under 0:18:34.520 --> 0:18:37.320 control and they don't see real yields getting out of control, 0:18:38.040 --> 0:18:42.320 I think probably will be at the margin more devish 0:18:42.600 --> 0:18:47.280 then the rhetoric today suggests, which means actually probably, although 0:18:47.320 --> 0:18:51.880 this volatility is likely to continue for some time. Actually 0:18:51.960 --> 0:18:55.200 that's not a bad bedrock rates that rise too hard, 0:18:55.640 --> 0:18:59.320 too fast and squeeze off what is quite the fregile 0:18:59.600 --> 0:19:02.359 you can recovery. I think the final point I would 0:19:02.359 --> 0:19:04.600 make is that there are parts of the world in 0:19:04.680 --> 0:19:08.560 China is the most noticeable in that where they actually 0:19:08.600 --> 0:19:10.920 because they've taken a very different approach to the pandemic. 0:19:11.800 --> 0:19:15.600 They're looking for maybe easing rather than a tightening agenda, 0:19:15.680 --> 0:19:17.239 which you're seeing other parts of the world. And we 0:19:17.280 --> 0:19:18.919 need to have space for both if we're going to 0:19:19.000 --> 0:19:22.960 keep the global picture of recovering growth on track. And 0:19:23.000 --> 0:19:27.160 that's Fidelity International CEO and Richards speaking with Bloomberg's Francine 0:19:27.200 --> 0:19:29.040 la Quid this morning, and you can catch more of 0:19:29.080 --> 0:19:33.439 that conversation online at Bloomberg dot com. Looking at markets 0:19:33.520 --> 0:19:36.800 right now, futures are moving higher along with treasuries. That's 0:19:36.840 --> 0:19:39.399 bringing yields lower this morning s and P futures right 0:19:39.400 --> 0:19:41.679 now up twenty five point, Staff futures up a hundred 0:19:41.680 --> 0:19:45.320 fifty seven and NASDAC futures leading the gains. This morning. 0:19:45.359 --> 0:19:47.320 There are up a hundred thirty seven points, that is 0:19:47.440 --> 0:19:50.119 a gain of nine tenths of one percent. The tenure 0:19:50.160 --> 0:19:52.320 treasury is up eight thirty seconds. The yield now one 0:19:52.359 --> 0:19:54.520 point three on the tenure and the yield on the 0:19:54.560 --> 0:19:57.560 two year one point zero three just ahead. Is this 0:19:57.640 --> 0:19:59.960 market relief? And how's the five g roll out of 0:20:00.000 --> 0:20:01.879 affecting your line? So I have the five things you 0:20:01.920 --> 0:20:04.960 need to know to start your day. This is Bloomberg 0:20:07.560 --> 0:20:09.800 Bloomberg eleven three oh weather. Rain will change to snow 0:20:09.840 --> 0:20:12.520 this morning. Early highs in the low forties, temperatures falling 0:20:12.520 --> 0:20:14.600 through the day partly sunny, highs only in the low 0:20:14.680 --> 0:20:18.000 twenties Tomorrow, mix of sun and cloud's upper twenties. Sunday 0:20:18.119 --> 0:20:24.520 right now forty and rain. Broadcasting live from the Bloomberg 0:20:24.600 --> 0:20:29.040 Interactive Broker Studio in New York. Bloomberg Living Freedom to Washington, 0:20:29.119 --> 0:20:33.240 d C. Bloomberg to Boston, Bloomberg one oh six one 0:20:33.320 --> 0:20:36.800 does San Francisco, Bloomberg N sixty to the Country Sirius 0:20:36.920 --> 0:20:40.119 XM chto one ninet and around the globe the Bloomberg 0:20:40.160 --> 0:20:44.600 Business app in Bloomberg Radio dot com. This is Bloomberg Daybreak. 0:20:50.400 --> 0:20:52.720 It's six thirty on Wall Street. Good morning. I'm Nathan 0:20:52.760 --> 0:20:55.840 Hagar and I'm Karen Moscow or just about three hours 0:20:55.880 --> 0:20:58.160 away from the open of US trading. It is time 0:20:58.160 --> 0:21:00.560 for the five things you need to know to start 0:21:00.600 --> 0:21:03.520 your day. Brought to you by Interactive Brokers. Ib k 0:21:03.760 --> 0:21:06.920 R charges Martin loan rates from zero point seven five 0:21:06.960 --> 0:21:10.160 percent to one point five nine percent rates subject to change. 0:21:10.280 --> 0:21:14.000 Learn more at ib k R dot com. Slash compare up. First, 0:21:14.119 --> 0:21:16.600 the US futures are higher and bond yields are lower 0:21:16.640 --> 0:21:19.600 following yesterday's sell off. Let's get more on the market 0:21:19.640 --> 0:21:22.960 action live with the Bloomberg's John Tucker John Karen. After 0:21:23.080 --> 0:21:25.920 yesterday's one percent slide for the NASTACT, the index is 0:21:25.960 --> 0:21:29.720 now down over ten percent from its November high. There 0:21:29.760 --> 0:21:33.280 may be some relief though. Bonds are stabilizing today, and 0:21:33.440 --> 0:21:37.080 earning season has delivered positive results from companies like Morgan Stanley, 0:21:37.160 --> 0:21:41.280 United Health, and Procter and Gamble. Still, strategists at HSBC 0:21:41.840 --> 0:21:45.400 are cutting their recommendation on US docks from overweight to neutral. 0:21:45.720 --> 0:21:48.480