WEBVTT - Bloomberg Daybreak: February 16, 2022 - Hour 1 (Radio) 0:00:03.400 --> 0:00:06.720 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:06.760 --> 0:00:11.840 Daybreak for Wednesday, February sixteen. Coming up this hour, stocks 0:00:11.920 --> 0:00:15.600 rise on the prospects of tensions easing in Ukraine, Investors 0:00:15.600 --> 0:00:19.200 away minutes from the fans latest policy meeting. UK inflation 0:00:19.320 --> 0:00:23.120 unexpectedly accelerates for a fourth straight month, and Disney drops 0:00:23.120 --> 0:00:27.040 its mass mandate for fully vaccinated theme park guests. Sandy 0:00:27.080 --> 0:00:30.159 Hook families win a settlement with Gunbaker Remington, A New 0:00:30.240 --> 0:00:33.680 York state's mass mandate ends today. I'm John Tucker. Those 0:00:33.720 --> 0:00:36.640 stories straight ahead, I'm John stash Our. In sports, the 0:00:36.760 --> 0:00:39.600 Rangers wanted to shoot out the Islanders and Devils both lost, 0:00:39.640 --> 0:00:45.000 so did the US Olympic hockey team. That's all straight 0:00:45.000 --> 0:00:49.200 ahead on Bloomberg day Break on Bloomberg eleven Trio, New York, 0:00:49.360 --> 0:00:54.080 Bloomberg N one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.240 --> 0:00:58.760 Bloomberg nine sixties, San Francisco, Sirius x M one nineteen 0:00:59.120 --> 0:01:02.080 and around the world along Bloomberg Radio dot Com and 0:01:02.200 --> 0:01:08.679 via The Bloomberg Business or Good Morning, I'm Nathan Hager 0:01:08.959 --> 0:01:12.679 and I'm Karen Moscow and Futures are little change this morning. 0:01:12.720 --> 0:01:14.399 We're coming up to five on one on Wall Street, 0:01:14.400 --> 0:01:16.480 and we check the markets every fifteen minutes throughout the 0:01:16.480 --> 0:01:19.480 trading day on Bloomberg. And again, futures are a little 0:01:19.560 --> 0:01:21.960 change to lower this morning to ten year treasury up 0:01:21.959 --> 0:01:24.760 to thirty seconds, the yield two point oh three per cent, 0:01:24.800 --> 0:01:28.000 and they yield on the two year one point five percent. Nathan, 0:01:28.080 --> 0:01:29.720 all right, Karen, we'll have more in the markets in 0:01:29.720 --> 0:01:32.360 a minute. But first, President Biden says a Russian attack 0:01:32.400 --> 0:01:35.440 against Ukraine is still very much a possibility, and he 0:01:35.560 --> 0:01:38.600 is warning that sanctions against Russia will not come without 0:01:38.720 --> 0:01:42.200 pain for Americans. Amy Morris has the latest from our 0:01:42.240 --> 0:01:47.360 Bloomberg newsroom in Washington. President Biden says the sanctions envisioned 0:01:47.400 --> 0:01:51.840 by his administration against Moscow would create long term consequences 0:01:51.880 --> 0:01:56.360 that would undermine Russia's ability to compete economically and strategically. So, 0:01:56.480 --> 0:01:59.480 he says, the administration is also taking steps to alleviate 0:01:59.520 --> 0:02:04.000 pressure own US energy markets and offset rising prices. Russian 0:02:04.040 --> 0:02:07.160 dissizement vague that would also have consequences here at home. 0:02:07.920 --> 0:02:11.440 But the American people understand that defending democracy and liberties 0:02:11.480 --> 0:02:15.160 never without cost. Meanwhile, some Ukrainian banking and government websites 0:02:15.200 --> 0:02:17.600 were hit with a denial of service attack. The US 0:02:17.639 --> 0:02:21.320 has offered to help investigate. Russian officials have repeatedly denied 0:02:21.360 --> 0:02:24.680 any plans to attack Ukraine. In Washington, I maybe Morris 0:02:24.720 --> 0:02:27.519 Bloomberg daybreak, All right, Amy, thank you. Meanwhile, a standoff 0:02:27.560 --> 0:02:30.680 over one of President Biden's nominees to the Federal Reserve 0:02:30.800 --> 0:02:33.639 is putting all of them in limbo. Republicans on the 0:02:33.720 --> 0:02:37.840 Senate Banking Committee are blocking Sarah bloom Morascians confirmation. They 0:02:37.880 --> 0:02:40.320 say they want to know more about a special master 0:02:40.480 --> 0:02:43.280 account that the Kansas City Fed granted to a Colorado 0:02:43.320 --> 0:02:47.200 based fintech while Raskins served on its board. Republican Senator 0:02:47.240 --> 0:02:49.760 Bill HAGGARDA sits on the Banking Committee. They're more than 0:02:49.800 --> 0:02:52.840 thirty five questions where her answers provided were blanket. I 0:02:52.880 --> 0:02:55.760 do not recall or I'm not aware in response to 0:02:55.840 --> 0:02:57.720 questions on this. So we have not gotten to the 0:02:57.760 --> 0:03:00.239 bottom of this, and we need more information, and till 0:03:00.240 --> 0:03:02.320 we do, I'm not prepared to vote on her. Tennessee 0:03:02.360 --> 0:03:05.400 Senator Bell Haggarday spoke with our Washington corresponded Joe Matthew 0:03:05.480 --> 0:03:08.760 on Bloomberg Sound On. Catch the program weekdays at five 0:03:08.760 --> 0:03:11.680 pm Eastern on Bloomberg Radio. The Fed will also be 0:03:11.680 --> 0:03:13.840 in focus today, Karen, with the release of the minutes 0:03:13.880 --> 0:03:16.320 from January's policy meeting. We get more on that from 0:03:16.360 --> 0:03:19.880 Bloomberg's Michael McKee. Tightened Fed concern about inflation led to 0:03:19.919 --> 0:03:22.160 a sell off in bonds when the last minutes were 0:03:22.200 --> 0:03:24.840 released or repeat as possible. Investors want to know just 0:03:24.919 --> 0:03:27.400 how worried that central bankers were at their last meeting 0:03:27.600 --> 0:03:30.880 when they suggested it was almost time to raise interest rates. 0:03:30.919 --> 0:03:34.280 In particular, how far and how fast did they anticipate 0:03:34.360 --> 0:03:37.160 moving bond investors. In particular, we'll be looking for any 0:03:37.160 --> 0:03:40.360 details on when and how FED officials anticipate shrinking their 0:03:40.360 --> 0:03:43.840 balance sheet. Kansas City Fed President Estra George recently warned 0:03:44.080 --> 0:03:47.200 the process could be rocky for the markets. Michael McKee, 0:03:47.200 --> 0:03:50.320 Bloomberg Daybreak, Mike, thank you. In addition to the Fed minutes, 0:03:50.440 --> 0:03:52.640 we also get the retail sales report for the month 0:03:52.640 --> 0:03:55.480 of January that's coming out later this morning. Meanwhile, in 0:03:55.480 --> 0:03:59.400 the UK, inflation unexpectedly accelerated for a fourth straight month. 0:03:59.600 --> 0:04:01.760 They have to London and get the latest live with 0:04:01.840 --> 0:04:04.440 the Bloomberg's You and Parts, good Morning You and Good 0:04:04.440 --> 0:04:07.280 Morning Karen and Nathan. Inflation is now at a thirty 0:04:07.480 --> 0:04:10.200 year high in the UK, hitting five point five percent 0:04:10.360 --> 0:04:12.880 in the year to January. The CPI print has now 0:04:12.960 --> 0:04:17.080 overshot forecast in seven of the past nine months. That's 0:04:17.080 --> 0:04:18.960 putting pressure on the Bank of England, which is already 0:04:19.040 --> 0:04:22.279 highed rates at two of its last meetings. The Baiwese 0:04:22.279 --> 0:04:25.040 current forecast is an inflation is set to reach seven 0:04:25.120 --> 0:04:28.159 and a quarter percent. Live in London, I'm You in Possible, 0:04:28.240 --> 0:04:31.080 Make Daybreak, Okay You and thank You. In Asia, inflation 0:04:31.160 --> 0:04:34.000 eased in China last month, but factory gate prices were 0:04:34.040 --> 0:04:37.599 still elevated. Bloomberg Gaybreak Asia anchor Brian Curtis has more. 0:04:37.800 --> 0:04:40.920 The producer price index rose nine point one percent from 0:04:40.920 --> 0:04:43.440 a year earlier. That was weaker than the estimate of 0:04:43.520 --> 0:04:46.160 nine point five percent, and it was down from December. 0:04:46.240 --> 0:04:48.440 Is reading and the good news for policymakers is that 0:04:48.480 --> 0:04:50.760 it gives them some more room to cut interest rates. 0:04:50.880 --> 0:04:53.800 China shifted to a pro growth bias late last year. 0:04:53.880 --> 0:04:56.520 It was after the economy was hit by virus outbreaks 0:04:56.760 --> 0:05:00.000 and a slump in the property market. Consumer prices grew 0:05:00.000 --> 0:05:02.680 Who's your point nine percent last month from a year earlier, 0:05:02.839 --> 0:05:06.640 and that was slower than a projected increase. Bryan Curtis, 0:05:06.680 --> 0:05:09.760 Bloomberg day Break, Brian, thank you. Turning to the pandemic, 0:05:09.839 --> 0:05:13.040 Disney is dropping its masked mandate for a fully vaccinated 0:05:13.120 --> 0:05:16.880 guests at its US theme parks starting tomorrow. Face coverings 0:05:16.880 --> 0:05:19.960 will be optional both indoors and out at Walt disney 0:05:19.960 --> 0:05:23.680 World in Florida and Disneyland in California. Mass will still 0:05:23.720 --> 0:05:26.880 be mandatory if you're not fully vaccinated. A major Wall 0:05:26.920 --> 0:05:29.200 Street firms are still grappling with how to bring employees 0:05:29.200 --> 0:05:31.320 back to the office as we come out of the pandemic. 0:05:31.520 --> 0:05:34.480 For Goldman Sax CEO David Solomon, he says an in 0:05:34.560 --> 0:05:37.159 person office will always be an important part of the 0:05:37.160 --> 0:05:40.279 bank's identity. We get that story from Bloomberg's Charlie Hellett. 0:05:40.680 --> 0:05:44.160 Speaking from the Pivot m I A conference in Miami Beach, 0:05:44.160 --> 0:05:48.080 Solomon said the office was particularly valuable for the development 0:05:48.120 --> 0:05:51.080 of employees in their twenties, who make up about half 0:05:51.200 --> 0:05:54.040 of the firm. He noted that Goldman has established a 0:05:54.120 --> 0:05:57.599 presence in cities across the US, including in South Florida, 0:05:57.920 --> 0:06:00.400 but he said the pandemic will not up the Wall 0:06:00.440 --> 0:06:03.320 Street Giant to provide jobs that can be done from 0:06:03.400 --> 0:06:08.000 remote locations, such as Jackson Hole, Wyoming in New York. 0:06:08.080 --> 0:06:11.320 Charlie Pellett bloom Bird Daybreak, Charlie, thank you. As the 0:06:11.320 --> 0:06:14.520 debate continues over how on how many days workers should 0:06:14.520 --> 0:06:17.479 spend in the office, Airbnb is looking to capitalize on 0:06:17.520 --> 0:06:20.599 the work from home trend. We spoke with Airbnb CEO 0:06:20.760 --> 0:06:23.440 Brian Chesky, but we do think more and more people 0:06:23.480 --> 0:06:26.159 are gonna work remotely over the summer with family. They 0:06:26.240 --> 0:06:28.599 might take them somewhere, get a summer rental. But we 0:06:28.680 --> 0:06:31.000 also just think that we're gonna have three day weekends 0:06:31.040 --> 0:06:33.560 a lot more frequently for people where they might work 0:06:33.600 --> 0:06:35.640 from an Airbnb on a Friday or Monday and go 0:06:35.680 --> 0:06:38.920 away for that weekend. And Airbnb's Brian Chesky says his 0:06:39.000 --> 0:06:41.880 company's fourth quarter earnings, where it's best ever, shares her 0:06:41.960 --> 0:06:44.919 up more than three percent in early trading. Finally, Karen, 0:06:44.960 --> 0:06:48.360 we have a new big money maker on campus. Stanford 0:06:48.440 --> 0:06:52.320 University has edged out Harvard as the country's biggest college fundraiser. 0:06:52.560 --> 0:06:56.560 The California Institution raised one point three nine billion dollars 0:06:56.640 --> 0:06:59.840 last fiscal year. That was about ten million more than 0:06:59.880 --> 0:07:02.200 the Ivy League are Those are the only two schools, 0:07:02.360 --> 0:07:05.080 Stanford and Harvard, that raked in more than a billion dollars. 0:07:05.600 --> 0:07:10.080 Rising stock markets helped to drive donations last year. Futures 0:07:10.080 --> 0:07:12.920 are moving lower right now. SMP futures down four points down, 0:07:12.960 --> 0:07:15.960 futures down thirty one, Nasdaq futures down eleven. Straight ahead 0:07:16.040 --> 0:07:19.680 local headlines in the check of sports. This is Bloomberg 0:07:23.160 --> 0:07:25.160 and it's tout five oh seven on Wall Street. We're 0:07:25.160 --> 0:07:28.200 dealing with big problems on the Sunrise Parkway. It's closed 0:07:28.240 --> 0:07:30.880 both ways between Center and Valley Avenues. The tails coming 0:07:30.920 --> 0:07:33.080 up in traffic. First. John Tucker's here with more on 0:07:33.120 --> 0:07:35.160 what's going on in New York and around the world. 0:07:35.160 --> 0:07:38.680 Good morning, John, Nathan Remington Arms will pay seventy three 0:07:38.680 --> 0:07:41.240 billion dollars to families who lost loved ones in the 0:07:41.280 --> 0:07:45.040 Sandy Hook Elementary School shooting. More the Landmark settlement this 0:07:45.080 --> 0:07:48.240 morning from Bloomberg's Jeff Bellinger. It is a settlement that 0:07:48.280 --> 0:07:50.920 could open the door to more lawsuits seeking to hold 0:07:51.000 --> 0:07:54.200 gun companies liable for mass shootings. The money will be 0:07:54.240 --> 0:07:57.160 divided among nine families who lost loved ones in the 0:07:57.200 --> 0:08:01.480 twelve shooting in Newtown, Connecticut that twenty children and six 0:08:01.480 --> 0:08:05.520 staff members dead. Remington did not admit liability in the settlement. 0:08:05.760 --> 0:08:08.760 Adam Lanza, the twenty year old Sandy Hook gunman, used 0:08:08.760 --> 0:08:12.320 an a R fifteen style rifle made by Bushmaster, a 0:08:12.400 --> 0:08:16.440 company that was owned by Remington. Jeff Bullinger Bloomberg Day 0:08:16.480 --> 0:08:18.840 breaks starting today in New York State will end its 0:08:18.920 --> 0:08:22.480 requirement that people entering businesses must wear masks or show 0:08:22.640 --> 0:08:25.920 proof of full vaccination. In New York City, masks are 0:08:26.000 --> 0:08:29.480 still required at schools and public health care facilities. Owners 0:08:29.560 --> 0:08:33.320 of stores, restaurants, theaters, or other public spaces can still 0:08:33.360 --> 0:08:37.880 require masks. Boeing seven eight seven Dreamliners suffering a new blow, 0:08:38.360 --> 0:08:41.720 US regulators say they'll step up inspections of each jet 0:08:41.800 --> 0:08:46.920 before delivery since the companies grappled with structural glitches that 0:08:46.960 --> 0:08:49.520 have turned its popular wide body jet into a drain 0:08:49.600 --> 0:08:52.640 on cash. More than one ten of the carbon fiber 0:08:52.679 --> 0:08:56.360 aircraft have been built but left undelivered while the issues 0:08:56.640 --> 0:09:00.840 are resolved. New York Democratic Representative Kathleen says she won't 0:09:00.920 --> 0:09:03.920 run for re election after nearly eight years in office. 0:09:04.400 --> 0:09:07.640 The fifty seven year old Rice represents parts of Long Island. 0:09:07.679 --> 0:09:10.360 Didn't say what she planned to do next, and she's 0:09:10.440 --> 0:09:13.440 joining dozens of her colleagues that are retiring or running 0:09:13.440 --> 0:09:16.480 for other public office ahead of the twenty twenty two 0:09:16.480 --> 0:09:19.840 mid term elections where Democrats fear they could lose control 0:09:19.920 --> 0:09:23.480 of the House. New Jersey Better has waged a record 0:09:23.559 --> 0:09:27.120 one forty three point seven million dollars on the Super 0:09:27.120 --> 0:09:31.319 Bowl that's up for the prior year. It comes even 0:09:31.400 --> 0:09:33.880 with bets being taken in neighboring New York for the 0:09:33.920 --> 0:09:37.320 first time. Sports betting is exploded across the U S 0:09:37.320 --> 0:09:40.520 since the Supreme Court of Lound states outside of Nevada 0:09:40.600 --> 0:09:44.440 to offer it in t eighteen. And P. J. O'Rourke, 0:09:44.559 --> 0:09:48.000 the prolific author and satirist, has died at the age 0:09:48.000 --> 0:09:51.040 of seventy four. He started out writing for such underground 0:09:51.080 --> 0:09:54.760 publications as The New York Case. He joined National Lampoon 0:09:54.840 --> 0:09:57.959 in nineteen seventy three. Global News twenty four hours a 0:09:58.040 --> 0:10:00.480 day on air and on Blueberry Quicktake were binding more 0:10:00.480 --> 0:10:02.600 than twenty seventh hunter of journalists and analysts and more 0:10:02.640 --> 0:10:06.240 than one twenty countries. I'm John Tucker. This is Bloomberg Nathan. 0:10:06.400 --> 0:10:12.960 All right, John, thank you, coming up to five ten 0:10:13.040 --> 0:10:15.160 on All Street time for the Bloomberg Sports Upday. Good morning, 0:10:15.200 --> 0:10:17.440 John stans Showner, A good morning, Nathan. Couple of hockey 0:10:17.480 --> 0:10:20.520 shootouts the Rangers and Bruins at the Garden, the US 0:10:20.600 --> 0:10:23.960 and Slovakia in Beijing. Rangers won There's they scored on 0:10:24.000 --> 0:10:26.840 their first two attempts to the shootout make his advantage, 0:10:26.920 --> 0:10:30.080 and then Artemi Panaer and then sixth straight misses before 0:10:30.160 --> 0:10:32.959 KeAndre Miller scored given the Rangers a thrilling two to 0:10:33.040 --> 0:10:34.880 one win in their first game in two weeks. At 0:10:34.880 --> 0:10:37.880 the Olympics, the US, led to one on the final minutes, 0:10:37.920 --> 0:10:41.280 seemed ready to advance to the semifinals. Slovakia scored in 0:10:41.280 --> 0:10:43.280 the U s went over for five of the shootout, 0:10:43.520 --> 0:10:46.520 gets eliminated after going three and oh in the preliminary round. 0:10:46.520 --> 0:10:49.320 Back in the NHL, the Islanders and Devils both lost 0:10:49.320 --> 0:10:51.360 by the same six to three score. Both gave up 0:10:51.400 --> 0:10:53.360 three goals in the third period of the Isles in Buffalo, 0:10:53.679 --> 0:10:56.160 where the Sabers scored three times in the last three 0:10:56.200 --> 0:10:58.600 minutes and the Devil's blew a three one lead felt 0:10:58.600 --> 0:11:01.000 the Tampa Bay and NBA blow out Red Hot Celtics, 0:11:01.000 --> 0:11:03.160 one of the ninth in a row in Philadelphia by 0:11:03.280 --> 0:11:06.400 forty eight. James Harden watched the game on the Philly bench. 0:11:06.480 --> 0:11:08.319 He has an injured hamstring, but said he was happy 0:11:08.360 --> 0:11:11.480 to lead Brooklyn. Harden was after that playing with Tyrie, 0:11:11.440 --> 0:11:14.360 Irving and Knew has refused to get vaccinated, only recently 0:11:14.360 --> 0:11:18.760 started playing and only in road games. Really good friends. Uh, 0:11:18.840 --> 0:11:21.040 you know, whatever he was going through, he's still going 0:11:21.040 --> 0:11:24.800 through as his personal preference. But it definitely didn't impact 0:11:24.800 --> 0:11:28.160 the team because originally, you know, obviously me, Kyrie and 0:11:28.200 --> 0:11:31.440 Katie in the court, you know, and winning covers up 0:11:31.440 --> 0:11:33.360 a lot of that stuff. And Net's big three ended 0:11:33.440 --> 0:11:36.320 up playing together only sixteen times. Nets play a road 0:11:36.360 --> 0:11:38.720 game tonight, but it's in New York against the Knicks, 0:11:38.720 --> 0:11:42.079 and the vaccine mandate means Irving cannot play. College hopes 0:11:42.120 --> 0:11:44.520 Fordham lost I own a one. The gals are one 0:11:44.520 --> 0:11:47.240 and five at the Olympics. The disappointment at hockey, but 0:11:47.320 --> 0:11:50.720 the US won gold and silver in freestyle scheme. John 0:11:50.760 --> 0:11:53.880 Stash Award Bloomberg Sports Nathan Okay, John, thanks right now. 0:11:53.960 --> 0:11:56.960 SMP futures are down three point STOUT futures down nineteen 0:11:57.040 --> 0:12:00.880 nastack futures down. For the latest on the Russia Ukraine 0:12:00.920 --> 0:12:04.240 tensions with Greg Valiat of AGF Investments. Next, this is 0:12:04.280 --> 0:12:10.319 Bloomberg Bloomberg eleven three O. Weather increasing cloudiness today with 0:12:10.360 --> 0:12:12.920 a high and near fifty degrees. We could get sixty 0:12:12.960 --> 0:12:16.480 tomorrow with late day showers. Highs early in the mid 0:12:16.520 --> 0:12:22.600 fifties by Friday, but temperatures will fall through the day. Markets, 0:12:22.679 --> 0:12:25.760 headlines and breaking news twenty four hours a day at 0:12:25.800 --> 0:12:29.199 Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg 0:12:29.240 --> 0:12:39.800 Quick Tape. He's a Bloomberg Business Flash and I'm Karen Moscow. 0:12:40.000 --> 0:12:44.240 Stocks are higher as traders way the prospect of diminishing 0:12:44.320 --> 0:12:47.280 tension over Ukraine and the impact are rising inflation on 0:12:47.320 --> 0:12:50.240 central bank policies. They have been giving up some of 0:12:50.280 --> 0:12:53.000 their gains though in Europe this morning. US dot Index 0:12:53.120 --> 0:12:56.000 futures they're little change this morning, and we checked the 0:12:56.000 --> 0:12:59.480 markets every fifteen minutes throughout the trading day on Bloomberg 0:12:59.480 --> 0:13:02.079 and again futures are a little change. The ten year 0:13:02.120 --> 0:13:04.880 treasury up to thirty seconds, the yield two point oh 0:13:04.880 --> 0:13:07.080 three percent. They yield on the two year one point 0:13:07.080 --> 0:13:10.600 five five percent. Nine x scrude oil is up seven 0:13:10.679 --> 0:13:13.360 ten percent, up sixty one cents and ninety two dollars 0:13:13.400 --> 0:13:15.600 sixty eight cents of barrel comex S gold is up 0:13:15.640 --> 0:13:17.640 tenth of upper cent or two dollars thirty cents at 0:13:17.640 --> 0:13:20.640 eighteen fifty eight. Forty announced. The euro one point one 0:13:20.679 --> 0:13:22.920 three eight one against the dollar, British found one point 0:13:22.960 --> 0:13:26.440 three eight, the yen is at one fifteen point six seven, 0:13:26.480 --> 0:13:30.240 and bitcoins higher at forty four thousand, seventy dollars. Today, 0:13:30.280 --> 0:13:32.800 we are watching for a report on January retail sales 0:13:32.840 --> 0:13:35.400 at eight thirty Wall Street time, along with the import 0:13:35.440 --> 0:13:38.760 price index, industrial productions at at nine fifteen, and its 0:13:38.760 --> 0:13:42.079 business inventories at ten in. The Federal Reserve releases minutes 0:13:42.120 --> 0:13:45.440 from its latest meeting at two. That's a Bloomberg business flash. 0:13:45.440 --> 0:13:47.600 Now here's John Tucker with more on what's going on 0:13:47.640 --> 0:13:50.600 around the world. John, Good morning, Karen. President Biden says 0:13:50.760 --> 0:13:54.480 it's still possible that Russia will invade Ukraine because its 0:13:54.520 --> 0:13:58.079 troops remain in a threatening position. Well Disney dropping a 0:13:58.160 --> 0:14:01.000 mask man date for fully vaccinated guests to its theme 0:14:01.080 --> 0:14:04.199 parks in the US, and US regulators say those step 0:14:04.240 --> 0:14:09.000 up inspections of every Boeing seven eighties seven Dreamliner before delivery. 0:14:09.559 --> 0:14:12.400 In sports, Rangers beat the Bruins and the shootout Islanders 0:14:12.400 --> 0:14:15.840 and Devils lose, the Capital's win and the Penguins. Sydney 0:14:15.840 --> 0:14:20.200 cross We scores his five NHL goal. In basketball, the 0:14:20.200 --> 0:14:23.400 Celtics beat the seventies six years by forty eight points. 0:14:23.680 --> 0:14:25.920 Global News twenty four hours a day on Aaron on 0:14:25.920 --> 0:14:29.440 Bloomberg Quicksache, powered by more than twenty seven hundred journalists 0:14:29.440 --> 0:14:32.840 and analysts and more than one countries. I'm John Tucker, 0:14:32.960 --> 0:14:36.000 DC's Bloomberg Nathan. That's a lot of points. Thank you, John. 0:14:36.000 --> 0:14:38.360 It's five nineteen on Wall Street Line from the Bloomberg 0:14:38.400 --> 0:14:41.640 Interactive Broker Studios. This is Bloomberg Daybreak as we continue 0:14:41.680 --> 0:14:45.040 to follow developments around tensions towards Ukraine. Were joined by 0:14:45.040 --> 0:14:49.760 Greg Valier, chief US policy strategist at a g F Investments. Greg, 0:14:49.800 --> 0:14:51.320 it's good to have you with us. As we just 0:14:51.400 --> 0:14:54.040 heard from John, the President is warning that there's still 0:14:54.080 --> 0:14:56.240 the threat of a Russian attack on Ukraine, and now 0:14:56.240 --> 0:14:59.760 we're watching headlines this morning that belying what Russia is. 0:15:00.320 --> 0:15:03.840 NATO says that it's now seeing more troops building up 0:15:03.920 --> 0:15:06.840 near the Ukraine border. How do you assess the situation 0:15:06.960 --> 0:15:10.880 right now, Well, it's obviously very fluid, Nathan, and I 0:15:10.920 --> 0:15:14.080 think that you can't dismiss the threat of an invasion. 0:15:14.160 --> 0:15:16.920 But as you know, I've said for the last few weeks, 0:15:16.960 --> 0:15:19.840 I think it's unlikely. I think that Putin does not 0:15:20.000 --> 0:15:22.760 want to be a pariah. I think he has to 0:15:22.760 --> 0:15:27.400 worry about casualties for his own troops as the Ukrainian 0:15:27.480 --> 0:15:30.480 citizens take up arms, and I think Putin has to 0:15:30.520 --> 0:15:34.040 worry about his own economy suffering from big sanctions. So 0:15:34.600 --> 0:15:38.120 it's it's high stakes. I think that Putin may be 0:15:38.280 --> 0:15:41.920 content to come up with an exit strategy. He's still 0:15:42.120 --> 0:15:46.640 using cyber warfare against the Ukrainians, still stirring up trouble 0:15:46.720 --> 0:15:49.880 at the border, but not with a full fledged invasion. 0:15:50.480 --> 0:15:54.160 Interesting that you see the possibility of a cyber attack 0:15:54.240 --> 0:15:56.720 as a potential off ramp. I mean the President has 0:15:56.760 --> 0:16:02.360 warned that cybers CyberSecure purity issues would be met with 0:16:02.440 --> 0:16:05.760 a tough response as well. I mean couldn't that further 0:16:06.200 --> 0:16:11.360 intensify the situation if there is that kind of development, 0:16:12.640 --> 0:16:15.239 it sure could. But I think it would be preferable 0:16:15.280 --> 0:16:18.680 to a shooting war that would involve an enormous amount 0:16:18.760 --> 0:16:23.360 of casualties. You know. I think Dave Macrone of France 0:16:23.920 --> 0:16:28.440 has set up an exit strategy, a so called off ramp. 0:16:29.040 --> 0:16:32.520 I think that this would involve some security assurances to 0:16:32.560 --> 0:16:36.920 the Ressians without a promise on natal membership. I do 0:16:37.000 --> 0:16:41.960 think there are negotiated plans that are getting closer. What 0:16:42.040 --> 0:16:45.480 about the sanctions debate on Capitol Hill, It seems like 0:16:45.640 --> 0:16:48.160 the lawmakers have really been at logger heads as to 0:16:48.760 --> 0:16:51.640 when to impose sanctions, what they would look like. Do 0:16:51.680 --> 0:16:55.400 you see any kind of agreement coming forward on Capitol Hill? No, 0:16:56.080 --> 0:16:58.280 if it turns out in the last twenty four hours, 0:16:58.600 --> 0:17:01.120 the Senators just thrown up its hands. They can't come 0:17:01.160 --> 0:17:04.600 up with an agreement. It's like a bad satire. Uh. 0:17:04.640 --> 0:17:09.399 They're now going to send a strongly worded message to Putin, 0:17:09.520 --> 0:17:12.560 as if that would have any impact whatsoever. So no, 0:17:12.760 --> 0:17:16.159 congressional sanctions look like they're dead well, given where the 0:17:16.200 --> 0:17:20.879 situation stands with international diplomacy, the work that's going on 0:17:21.000 --> 0:17:24.120 with the US and allies. What do you see the 0:17:24.160 --> 0:17:28.480 market reaction being, particularly in the energy space, if if 0:17:28.520 --> 0:17:32.600 things were to go forward really volatile. I think the 0:17:32.640 --> 0:17:36.360 markets for the next few weeks will be UH erratic. 0:17:36.880 --> 0:17:40.320 I think if this crisis passes, you're going to see 0:17:40.680 --> 0:17:45.760 UH yields in the bond market go even higher based 0:17:45.760 --> 0:17:49.280 on a belief that the global economy will be okay. Obviously, 0:17:49.440 --> 0:17:52.280 if there's a conflict, will be a huge impact on grain, 0:17:52.760 --> 0:17:57.119 natural gas, oil. So it's a very volatile situation that 0:17:57.200 --> 0:18:00.560 I think will persist. On top of the standoff between 0:18:00.800 --> 0:18:04.080 the US and Russia, we have this standoff on Capitol 0:18:04.160 --> 0:18:08.800 Hill over President Biden's Federal Reserve nominees, particularly Sarah Bloom Raskin. 0:18:08.920 --> 0:18:11.280 What do you make of the questions that Republicans have 0:18:11.400 --> 0:18:14.800 for her, Well, they've got two big issues. Number One, 0:18:15.119 --> 0:18:17.879 the FETE has a mandate to only look at a 0:18:18.000 --> 0:18:22.000 stable prices and full employment. She has talked repeatedly over 0:18:22.040 --> 0:18:25.040 the years about another mandate to get very involved in 0:18:25.240 --> 0:18:30.040 environmental policies. That is angrid Republicans. Plus, she had she 0:18:30.160 --> 0:18:32.119 was on the board of directors of the company in 0:18:32.160 --> 0:18:36.800 Colorado that got access to the FETs banking system that 0:18:37.119 --> 0:18:41.120 uh many people feel it was not appropriate for her. 0:18:41.560 --> 0:18:45.480 So those issues are going to stay complicating everything. You've 0:18:45.480 --> 0:18:47.800 got one Democrat in the Senate who has been ill, 0:18:48.160 --> 0:18:50.760 who's not going to be back for another several weeks. 0:18:51.040 --> 0:18:54.440 So I think her nomination is in trouble. The other ones, Powell, 0:18:54.560 --> 0:18:57.000 Leo Brainer, I think they'll all make it, but I 0:18:57.000 --> 0:19:00.320 think the Raskan nomination is in real trouble. Do you 0:19:00.359 --> 0:19:05.800 think the President will stand by Sarah Bloom Raskin, Oh 0:19:05.840 --> 0:19:09.800 for now, I'm sure he will, And she still could 0:19:09.960 --> 0:19:13.080 make it. She indeeds to produce more documents that might 0:19:14.440 --> 0:19:18.439 absolve her of any involvement in this Colorado company. But 0:19:19.040 --> 0:19:22.240 I do think you can't have an impasse for links 0:19:22.240 --> 0:19:24.879 in leeks and leaks. You've got to get people like Wale, 0:19:24.880 --> 0:19:28.919 Brandard and Powell confirmed, and they will be eventually all right. 0:19:28.960 --> 0:19:31.800 Gregg Value as always great to get your insights. Gregg 0:19:31.840 --> 0:19:36.359 Valuer is a Chief US policy strategist at a GF Investments. 0:19:36.480 --> 0:19:40.240 As we watch futures continue to slide on the latest 0:19:40.320 --> 0:19:43.520 Ukraine headlines, S ANDP futures are now down fourteen points down. 0:19:43.560 --> 0:19:46.800 Futures down a hundred fifteen. NASDAC futures are lower by 0:19:46.920 --> 0:19:49.720 forty one points. The tenure Treasury is up one thirty 0:19:49.720 --> 0:19:52.080 second with the yield two point zero three percent. The 0:19:52.160 --> 0:19:54.640 yield on the two year right now one point five 0:19:55.400 --> 0:19:57.680 and nim X screwed is hired by seven tenths percent 0:19:57.680 --> 0:20:01.320 at ninety two dollars sixty cent the barrel. Stay with us. 0:20:01.359 --> 0:20:08.600 You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather 0:20:08.680 --> 0:20:11.120 increasing cloudiness with highs in the upper forties Today, will 0:20:11.119 --> 0:20:14.000 be in the upper fifties tomorrow with late day showers possible. 0:20:14.000 --> 0:20:16.920 Those will end in the morning. Friday early highs in 0:20:16.960 --> 0:20:21.840 the mid fifties, but temperatures will fall through the day. 0:20:22.160 --> 0:20:26.680 Broadcasting live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.800 --> 0:20:30.119 Bloomberg E Living Freedom to Washington, d C, Bloomberg nine 0:20:30.880 --> 0:20:34.080 to Boston, Bloomberg what a six one does? San Francisco, 0:20:34.160 --> 0:20:37.640 Bloomberg Not sixteen to the country, Sirius XM Cho one 0:20:37.680 --> 0:20:40.800 nineteen and around the globe, the Bloomberg Business app and 0:20:40.880 --> 0:20:50.520 Bloomberg Radio dot Com. This is Bloomberg Daybreak, and it's 0:20:50.560 --> 0:20:53.480 five thirty on Wall Street. Good morning, I'm Karen Moscow, 0:20:53.640 --> 0:20:55.960 I'm Nathan Hagar. Bloomberg. Daybreak is brought to you by 0:20:56.119 --> 0:21:00.080 SEI Challenges highlight one's character, partnership and resilience at s E. 0:21:00.240 --> 0:21:02.480 The act is one community with their clients. Go to 0:21:02.640 --> 0:21:05.520 se i C dot com slash banks and we're just 0:21:05.560 --> 0:21:08.200 about four hours away from the open of US trading. 0:21:08.240 --> 0:21:09.600 Let's get you have to date in the news you 0:21:09.640 --> 0:21:12.280 need to know at this hour. The situation in Ukraine 0:21:12.359 --> 0:21:15.920 remains front and center this morning. President Biden says it's 0:21:15.960 --> 0:21:18.840 not verified that Russia's pulled the troops back from the 0:21:18.880 --> 0:21:22.199 border with Ukraine, and Bloomberg's aid Baxter has the story. 0:21:22.520 --> 0:21:25.800 President Biden says, so far intelligence is not showing it 0:21:25.920 --> 0:21:28.320 and the fact remains right now Russia has more than 0:21:28.320 --> 0:21:31.520 a hundred and fifty thousand troops and circling Ukraine and 0:21:31.600 --> 0:21:37.960 Belarus along Ukraine's border. An invasion remains distinctly possible. Biden 0:21:38.040 --> 0:21:40.919 says if that happens, russiall be held responsible globally for 0:21:41.040 --> 0:21:44.440 death and destruction. He says sanctioned packages are in place 0:21:44.480 --> 0:21:47.560 and that the overriding issue that governments have is the 0:21:47.680 --> 0:21:51.199 right to plot their own destinies in San Francisco. I'm 0:21:51.240 --> 0:21:54.000 at Baxter Bloomberg, Gay break, okay, and thank you. Meantime, 0:21:54.040 --> 0:21:57.160 there's a standoff on Capitol Hill over President Biden's five 0:21:57.200 --> 0:22:00.560 Federal Reserve nominees. Republicans on the Senate Banking Committee have 0:22:00.640 --> 0:22:03.399 questions about one of them, Sarah Bloom Raskin, and her 0:22:03.480 --> 0:22:05.879 role on the board of a fintech company. Raskin is 0:22:05.920 --> 0:22:09.639 President Biden's choice for FED Vice Chair for Supervision Well Nathan. 0:22:09.640 --> 0:22:12.600 This afternoon, the FED releases minutes of January's meeting on 0:22:12.720 --> 0:22:16.320 monetary policy. We get the story from Bloomberg's Vinny Del Judais. 0:22:16.400 --> 0:22:19.840 Bloomberg Economics says the minutes could reveal whether the FED 0:22:19.960 --> 0:22:22.720 has an appetite for a half point march rate increased 0:22:22.720 --> 0:22:26.760 the battle inflation. Such sentiment could explain hawkish comments by 0:22:26.800 --> 0:22:31.879 FED Chair Jerome Powell following January's policy meeting. Recent speeches 0:22:31.920 --> 0:22:35.439