WEBVTT - Bloomberg Daybreak: March 30, 2022 - Hour 2 (Radio) 0:00:02.560 --> 0:00:05.840 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:05.960 --> 0:00:09.760 day Break for Wednesday, March two. Coming up this hour, 0:00:10.039 --> 0:00:13.000 questions this morning over Russia has promised to scale back 0:00:13.080 --> 0:00:17.360 military operations. The January six Committee discovers big gaffs and 0:00:17.440 --> 0:00:21.239 former President Trump's phone blogs, US future slump after four 0:00:21.320 --> 0:00:23.919 straight days of games, and hackers pull off one of 0:00:23.960 --> 0:00:27.840 the biggest crypto heist ever. Three Buffalo police officers were shot. 0:00:27.880 --> 0:00:30.480 Plus the White House swam block President Trump's daughter and 0:00:30.600 --> 0:00:34.560 son in law from testifying before House Committee. Michael barn More, 0:00:35.240 --> 0:00:37.800 I'm John Stashdown Sports Kevin Durant led the Nets to 0:00:37.880 --> 0:00:40.560 victory over the Pistons, Chris Cryder and the Rangers with 0:00:40.640 --> 0:00:45.479 a road win at Pittsburgh. That's all straight ahead on 0:00:45.680 --> 0:00:51.440 Bloomberg day Break on Bloomberg eleven, Treeo, New York, Bloomberg one, Washington, 0:00:51.560 --> 0:00:55.640 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 0:00:55.680 --> 0:00:59.960 San Francisco, Sirius x M one nineteen and around the world. 0:01:00.040 --> 0:01:03.920 Go on Bloomberg Radio dot Com and via the Bloomberg Business. 0:01:07.480 --> 0:01:10.440 Good Morning, I'm Nathan Hager, and I'm Karen Moscow and 0:01:10.600 --> 0:01:13.600 US DOT Index futures are lower this morning. We're coming 0:01:13.640 --> 0:01:15.120 up to six o one on Wall Street, and we 0:01:15.240 --> 0:01:17.839 checked the markets every fifteen minutes throughout the trading day. 0:01:18.120 --> 0:01:20.600 On Bloomberg, U S and P future is down sixteen 0:01:20.600 --> 0:01:24.400 points this morning, down futures down on eleven Nasdack futures 0:01:24.440 --> 0:01:27.160 down sixty eight The decks in Germany's down one point 0:01:27.200 --> 0:01:30.720 four percent. Tenure treasury down one thirty second yield two 0:01:30.720 --> 0:01:33.000 point three nine percent. They yield on the two year 0:01:33.080 --> 0:01:36.160 two point three one percent. Nine x Screwed oil is 0:01:36.240 --> 0:01:38.720 up two point one percent, up two dollars twenty cents 0:01:38.720 --> 0:01:41.000 and a hundred six dollars forty eight cents of barrel, 0:01:41.400 --> 0:01:43.600 and the euro is at one point one one to 0:01:43.920 --> 0:01:47.000 six against the dollar. Nathan, all right, Karen, let's get 0:01:47.000 --> 0:01:49.400 to the latest now on the war in Ukraine. Russia 0:01:49.600 --> 0:01:52.800 is promising the scale back military operations near the capital 0:01:52.840 --> 0:01:55.440 city of Kiev and the city of Chernihiv, but there 0:01:55.440 --> 0:01:59.120 are still reports of shelling in both areas. President Biden 0:01:59.160 --> 0:02:01.000 was asked where the heath thinks the war is ending 0:02:01.080 --> 0:02:04.360 or if Russia is just buying time. We'll see. I 0:02:04.400 --> 0:02:06.560 don't read anything into it until I see what their 0:02:06.600 --> 0:02:09.320 actions are. We'll see if they follow through and with 0:02:09.360 --> 0:02:12.040 their suggesting, the President bide and spoken the news conference 0:02:12.080 --> 0:02:15.600 with the Prime Minister of Singapore. Ukrainian President Vladimir Zolenski 0:02:15.720 --> 0:02:19.959 also has his doubts. We can say that the signals 0:02:19.960 --> 0:02:22.840 we hear from the talks are positive, but these signals 0:02:22.840 --> 0:02:26.560 can't silence the explosions of Russian shells. President Zelenski says 0:02:26.600 --> 0:02:29.280 there are grounds not to trust Russia. A regional governor 0:02:29.320 --> 0:02:31.959 says the city of Chernihill was shelled all night despite 0:02:32.000 --> 0:02:35.040 Russia's promises. The U n says more than four million 0:02:35.080 --> 0:02:37.720 refugees have now fled Ukraine. That is nearly ten percent 0:02:37.800 --> 0:02:41.040 of the population. Meantime, back in the US, Nathan new 0:02:41.080 --> 0:02:44.000 Revelations tide of last year's attack on the capitol. There 0:02:44.040 --> 0:02:46.480 are more than seven hours of gaps in White House 0:02:46.520 --> 0:02:49.880 telephone logs from the afternoon at January six, and those 0:02:49.919 --> 0:02:53.720 gaps coincide at the same time protesters swarmed the US capital. 0:02:53.960 --> 0:02:56.799 Amy Morris has details from our Bloomberg ninety one one 0:02:56.840 --> 0:03:00.560 newsroom in Washington. The committee investigating the insurrect should found 0:03:00.560 --> 0:03:03.079 a big gap from a little after eleven am to 0:03:03.160 --> 0:03:07.399 about seven pm in the logs provided by the National Archives, 0:03:07.400 --> 0:03:10.160 but there is evidence that the President did talk with 0:03:10.240 --> 0:03:14.360 people inside the Capitol that day, including Kevin McCarthy, Jim Jordan's, 0:03:14.400 --> 0:03:17.240 and Mike Pence calls that don't show up on the 0:03:17.240 --> 0:03:20.280 White House logs. Now the committee is trying to determine 0:03:20.320 --> 0:03:23.720 it the President bypassed the White House system by using 0:03:23.800 --> 0:03:27.600 a burner phone or his AIDS cell phones in Washington. 0:03:27.720 --> 0:03:30.519 I'm maybe more as Bloomberg Daybreak. Okay, Amy, thanks. Let's 0:03:30.520 --> 0:03:33.120 take a look at markets now, Beginning with treasuries. The 0:03:33.200 --> 0:03:36.880 tenure yield briefly dropped below it's two year equivalent yesterday 0:03:37.000 --> 0:03:40.520 for the first time since That inversion is leading to 0:03:40.560 --> 0:03:43.400 growing calls about the likelihood of a US recession, but 0:03:43.480 --> 0:03:46.520 Aaron Brown at PIMCO says those concerns may be premature. 0:03:46.960 --> 0:03:50.000 It has been a good predictor in the past that 0:03:50.200 --> 0:03:52.720 recession is coming, but I don't think that really tells 0:03:52.760 --> 0:03:55.960 you anything new. We knew that we're a late cycle, 0:03:56.360 --> 0:03:59.040 and typically the yield curban verse and then it takes 0:03:59.080 --> 0:04:02.200 anywhere from a twenty four months to actually move into 0:04:02.240 --> 0:04:05.480 a recession. So we're still quite a ways out until 0:04:05.600 --> 0:04:08.920 potentially we're going to enter into a recession. Tim Co 0:04:09.040 --> 0:04:11.480 fund manager and Brown says it is more critical to 0:04:11.480 --> 0:04:14.320 look at why the yield curve is inverting. Meantime, all 0:04:14.400 --> 0:04:16.240 eyes are on the Fed, and we will hear more 0:04:16.240 --> 0:04:18.400 from the Central Bank later today. Tune in for an 0:04:18.440 --> 0:04:22.160 exclusive interview with Richmond Fed President Tom Barkin. That's coming 0:04:22.240 --> 0:04:25.240 up at ten thirty am Wall Street Time on Bloomberg 0:04:25.320 --> 0:04:28.240 Radio and television. When it comes to stocks, Nathan, we're 0:04:28.240 --> 0:04:30.560 coming off four straight days of games. The S and 0:04:30.600 --> 0:04:33.400 P five hundred closed above the forty six hundred level 0:04:33.480 --> 0:04:36.680 for the first time since mid January. Right now, it's 0:04:36.680 --> 0:04:40.279 down just three percent from an all time high. Looka Paulini, 0:04:40.360 --> 0:04:43.599 as chief strategist at Pick ten Asset Management, Marcus were 0:04:43.640 --> 0:04:46.599 significantly were sold for the number of reasons. Of course, 0:04:46.760 --> 0:04:50.680 the word in Ukraine, the federal reserves, weekend data, and 0:04:50.760 --> 0:04:54.039 now everything seems to be not as bad as it was, 0:04:54.200 --> 0:04:55.919 and so I think that there is this kind of 0:04:56.560 --> 0:04:59.880 sort of relief friendly Luca Paolini, I picked ted as 0:05:00.000 --> 0:05:03.520 that management says despite the rally, he remains cautious. We're 0:05:03.560 --> 0:05:06.400 also hearing caution from Bank of America here and It's 0:05:06.400 --> 0:05:09.760 analysts warn that eleven Surgeon stocks over the past two 0:05:09.760 --> 0:05:12.680 weeks has the hallmarks of a bear market rally, and 0:05:12.720 --> 0:05:15.120 it might give way to deeper losses. We get the 0:05:15.160 --> 0:05:19.400 details from Bloomberg's Charlie Pellett. Those analysts say warning signs 0:05:19.440 --> 0:05:23.280 are flashing for a market that has climbed despite clearly 0:05:23.520 --> 0:05:27.760 weaker fundamentals, including a Federal Reserve bent on raising rates 0:05:27.839 --> 0:05:32.560 sharply this year to battle persistent inflation. The strategists caution 0:05:32.680 --> 0:05:35.520 that the sell off that took the SMP five hundred 0:05:35.520 --> 0:05:39.360 twelve percent from its January record is not over, and 0:05:39.480 --> 0:05:43.640 sharp rallies are typical of volatility and bear markets, with 0:05:43.720 --> 0:05:46.400 some of the biggest on record occurring in the throes 0:05:46.520 --> 0:05:50.039 of the dot com meltdown and the global financial crisis 0:05:50.560 --> 0:05:53.839 in New York. Charlie Pellet Bloomberg day break. All right, Charlie, 0:05:53.880 --> 0:05:55.760 thank you, and let's look at some stocks that are 0:05:55.800 --> 0:05:58.560 moving this morning. Shares a Lulu lemon Or up seven 0:05:58.600 --> 0:06:01.039 and a half percent. In early training, the athletic ware 0:06:01.120 --> 0:06:05.000 retailer delivered a sales forecast that beat estimates. Micron shares 0:06:05.040 --> 0:06:07.679 are out more than four percent, the largest US memory 0:06:07.760 --> 0:06:10.239 chip maker gave an upbeat forecast to sign that demand 0:06:10.279 --> 0:06:13.520 remains strong from data center customers, and on the flip side, 0:06:13.520 --> 0:06:17.240 shares of Chewy are down fourteen. The online retailer of 0:06:17.279 --> 0:06:19.839 pet care products, put out of forecast that fell short 0:06:19.880 --> 0:06:23.640 of estimates. Cryptocurrencies are also in focus this morning, Karen, 0:06:23.680 --> 0:06:25.760 after what is being called one of the biggest crypto 0:06:25.800 --> 0:06:28.799 attacks ever, and it wasn't discovered for almost a week. 0:06:29.080 --> 0:06:31.200 Let's get the details live from Bloomberg's We Need a 0:06:31.240 --> 0:06:34.240 Young Good morning, Gredita, Good morning, Nathan. Hackers stole about 0:06:34.320 --> 0:06:37.640 six hundred million dollars from a blockchain network connected to 0:06:37.680 --> 0:06:41.479 the popular Axie Infinity online game. They drained what's known 0:06:41.520 --> 0:06:44.360 as the Ronan bridge of close to one seventy four 0:06:44.440 --> 0:06:48.400 thousand ether and almost thirty million U s DC tokens. 0:06:48.720 --> 0:06:51.640 The so called bridge lets people convert tokens into ones 0:06:51.720 --> 0:06:54.600 that can be used on another network. The blockchain that 0:06:54.720 --> 0:06:58.919 supports Axie Infinity says the breach happened in March twenty three, 0:06:59.040 --> 0:07:02.120 but was just a discovered yesterday. This attack is the 0:07:02.200 --> 0:07:05.400 latest to show how bridge attacks and hacks can threaten 0:07:05.480 --> 0:07:09.600 the ecosystem of decentralized apps live in New York. I'm 0:07:09.640 --> 0:07:11.760 re need a young Bloomberg daybreak, all right, we need 0:07:11.760 --> 0:07:14.560 a thanks checking bitcoin right now. It's lower on the session, 0:07:14.560 --> 0:07:19.120 trading around forty seven thousand, three hundred dollars. This is Bloomberg. 0:07:23.000 --> 0:07:24.800 It sounds six o seven on Wall Street. We're in 0:07:24.840 --> 0:07:27.320 thirty degrees in Central Park, still dealing with an accident 0:07:27.400 --> 0:07:30.400 that's got the upper level. The Arizono Bridge closed. Heading 0:07:30.400 --> 0:07:33.080 into Staten Island. The tails coming up with traffic first. 0:07:33.120 --> 0:07:35.000 Michael bar with more on what's going on in New 0:07:35.040 --> 0:07:37.640 York and around the world. Michael, thank you very much. Nathan. 0:07:37.680 --> 0:07:40.560 It was a wild scene up in Buffalo. Three police 0:07:40.560 --> 0:07:43.720 officers were hit by gunfire after a motorist fled a 0:07:43.760 --> 0:07:45.800 traffic stop and led them on a chase through the 0:07:45.800 --> 0:07:49.760 city's streets. The suspected gunman was firing at officers from 0:07:49.800 --> 0:07:53.200 the vehicle authorities. Officers shot and wounded the driver at 0:07:53.200 --> 0:07:56.360 an intersection in front of a police station. Buffalo Mayor 0:07:56.520 --> 0:08:02.160 Byron Brown a very very dangerous situation, and we are 0:08:02.240 --> 0:08:08.000 very thankful that two suspects involved in this situation are 0:08:08.120 --> 0:08:11.600 in police custody. Mayor Brown says none of the officers 0:08:11.720 --> 0:08:16.720 injuries resulted in life threatening moments, and no civilians on 0:08:16.760 --> 0:08:20.360 the street were hit by the flying bullets. Police said 0:08:20.360 --> 0:08:23.440 the suspect it was shot was undergoing surgery. The White 0:08:23.480 --> 0:08:26.320 House were not blocked former President Donald Trump's daughter and 0:08:26.400 --> 0:08:29.160 son in law of Anka Trump and Jared Kushner from 0:08:29.200 --> 0:08:33.679 testifying to the House committee investigating the January sixth Capitol riot. 0:08:34.000 --> 0:08:38.600 White House spokeswoman Kate Beddenfield says the constitutional protections of 0:08:38.640 --> 0:08:42.120 executive privilege should not be used to shield from Congress 0:08:42.200 --> 0:08:46.280 or the public information about an attack on the constitution itself. 0:08:46.760 --> 0:08:50.199 Kushner is expected to appear voluntarily before the committee this week. 0:08:50.679 --> 0:08:54.280 A team of US airplane accident investigators and technical experts 0:08:54.400 --> 0:08:56.160 could add to China as soon as this week to 0:08:56.200 --> 0:08:59.439 help unravel the mysterious crash of the Boeing seven thirty 0:08:59.600 --> 0:09:02.840 seven jet earlier this month. All one two people on 0:09:02.880 --> 0:09:06.280 board the China Eastern jet were killed. President Joe Biden 0:09:06.320 --> 0:09:09.120 signed a law making lynching a federal hate crime. The 0:09:09.160 --> 0:09:11.800 President said of racial hate isn't an old problem, It's 0:09:11.840 --> 0:09:15.880 a persistent one. Hate never goes away. It only hides, 0:09:16.760 --> 0:09:20.480 It hides under the rocks. Given just a little bit 0:09:20.480 --> 0:09:26.320 of oxygen. It comes roaring back out, screaming President Biden. 0:09:26.559 --> 0:09:29.200 An American astronaut who spent nearly a year on the 0:09:29.240 --> 0:09:32.280 International Space Station is coming back to a world that 0:09:32.360 --> 0:09:36.200 has seen some dramatic changes. Mark Vanda High will be 0:09:36.240 --> 0:09:38.920 returning to Earth, and for a time it wasn't clear 0:09:38.920 --> 0:09:40.880 that the Russians would give him a ride home because 0:09:40.920 --> 0:09:44.440 of the war in Ukraine. Before departing the International Space Station, 0:09:44.760 --> 0:09:50.040 Russian cosmonaut Anton scarpul Off talked about continued cooperation in space. 0:09:50.400 --> 0:09:56.120 People have problem on us on orbit. Yeah, like, uh, 0:09:56.559 --> 0:09:59.839 you're not like one crew, they are dudes and like 0:10:00.080 --> 0:10:02.880 end in Kazakhstan. This morning Global News twenty four hours 0:10:02.880 --> 0:10:05.000 a day on air and on Bloomberg Quick Take, powered 0:10:05.040 --> 0:10:07.440 by more than seven hundred journalists and analysts and more 0:10:07.480 --> 0:10:10.079 than a hundred twenty countries. And Michael Vard this is Bloomberg, Nathan, 0:10:10.120 --> 0:10:16.640 Thank you, Michael. Just about six ten on Wall Street. 0:10:16.679 --> 0:10:19.439 Time for the Bloomberg Sports Update with John Stanhower. All right, Nathan, 0:10:19.440 --> 0:10:23.400 Regular seasons winding down playoff positions. Being Jockey four, Rangers 0:10:23.400 --> 0:10:25.439 would love to have home ice advantage in the first round. 0:10:25.440 --> 0:10:28.320 They only lost six regulation home games all season. They're 0:10:28.360 --> 0:10:30.760 battling with Pittsburgh. They beat the Penguins three to to 0:10:30.840 --> 0:10:33.400 move one point ahead. Frank Pctronto Braden Schnyder scored in 0:10:33.400 --> 0:10:36.000 the second period that Chris Dryder early in the third 0:10:36.040 --> 0:10:38.480 forty fifth goal of the season for Cryder. The Islanders 0:10:38.480 --> 0:10:40.720 won four three at Columbus. The Nets had to come 0:10:40.760 --> 0:10:44.120 from behind and Brooklyn, but they beat Detroit one thirty three. 0:10:44.200 --> 0:10:46.679 Kevin Durant scort forty one point at the Garden and 0:10:46.800 --> 0:10:49.480 I T semifinal wins for Xavier and Texas A and M. 0:10:49.480 --> 0:10:51.560 They'll play tomorrow of the champion chip. Could be the 0:10:51.640 --> 0:10:53.760 last n I T game in New York, at least 0:10:53.800 --> 0:10:56.800 for a while. Until last year, the tournament always ended 0:10:57.200 --> 0:10:59.360 at MSG. Now they're gonna move it around to other 0:10:59.400 --> 0:11:01.680 cities and Lorida tend not to win for the Mets 0:11:01.679 --> 0:11:05.040 of the Marlins. Another home run for Francisco Lindor. Disappointment 0:11:05.040 --> 0:11:06.920 in his first season as the Mempanies at four home 0:11:07.040 --> 0:11:11.000 runs in twenty spring training at bask Yankees fourteen to 0:11:11.080 --> 0:11:14.320 two over the Phillies. Fourth homer for Kyla Gasca Yoka. 0:11:14.559 --> 0:11:16.720 Head of val Commissioner Roger good Elm at the media 0:11:16.760 --> 0:11:18.800 at the owners meetings in Palm Beach. Asked about the 0:11:18.880 --> 0:11:22.160 league possibly suspending quarterback to Shawn Watson, who is still 0:11:22.200 --> 0:11:28.440 facing twenty two civil lawsuits of sexual misconduct. You know, 0:11:28.559 --> 0:11:33.200 these are serious chargers that we're looking at this seriously. Um. 0:11:33.360 --> 0:11:36.760 We now have obviously at least resolution from the criminal 0:11:36.800 --> 0:11:40.400 side of it. Obviously there's still civil charges that we're 0:11:40.440 --> 0:11:43.720 going on, so ours is hopefully we'll have access to 0:11:43.760 --> 0:11:46.719 more information. Watson was recently traded to Cleveland, where he 0:11:46.760 --> 0:11:50.880 got a massive new contract. Johns Dashwart Bloomberg Sports thanks 0:11:50.880 --> 0:11:54.360 shown red headline crossing the Bloomberg terminal. The Kremlin reports 0:11:54.440 --> 0:11:57.960 no breakthrough in Ukraine, tucks and says much work remains. 0:11:58.000 --> 0:12:02.040 The latest on the war. Next with Bloomberg's Rosalin mathis 0:12:02.040 --> 0:12:09.000 and this is Bloomberg. Bloomberg Day Break brought to you 0:12:09.040 --> 0:12:12.280 by ancient accountants and advisors. Challenging times call for proactive 0:12:12.320 --> 0:12:15.480 advisors who helped minimize taxes, increase ash flow, and create 0:12:15.480 --> 0:12:18.920 opportunities for the future of your business. Visit ancient dot 0:12:18.960 --> 0:12:25.200 com markets, headlines and breaking news twenty four hours a 0:12:25.280 --> 0:12:28.560 day at Bloomberg dot Com. The Bloomberg Business Outland at 0:12:28.600 --> 0:12:38.160 Bloomberg quick tape. This is a Bloomberg business flash and 0:12:38.280 --> 0:12:41.240 I'm camer in Moscow. US DOT index futures are lower 0:12:41.320 --> 0:12:44.160 this morning amid mornings at gains of the past two weeks, 0:12:44.160 --> 0:12:46.720 at the hallmarks of a bear market rally, and concerns 0:12:46.720 --> 0:12:49.680 at the treasury curve signals a looming recession. We checked 0:12:49.679 --> 0:12:52.360 the markets every fifteen minutes throughout the trading day on 0:12:52.400 --> 0:12:55.240 Bloomberg Guess and P futures down twenty points down, features 0:12:55.240 --> 0:12:57.920 down a hundred twenty eight and NAZDAC futures down ninety five. 0:12:58.200 --> 0:13:00.480 The decks in Germany's down one and a half percent. 0:13:00.520 --> 0:13:03.319 The ten year treasury down three thirty seconds yield two 0:13:03.320 --> 0:13:05.559 point four zero percent. They yield on the two year 0:13:05.640 --> 0:13:08.599 two point three two percent. Nine max Screwed oil is 0:13:08.679 --> 0:13:10.920 up about two percent or two dollars three cents at 0:13:10.840 --> 0:13:13.600 a hundred six dollars twenty five cents of barrel. Comic 0:13:13.640 --> 0:13:16.240 schooled that four tenths percent or seven dollar sixty cents 0:13:16.240 --> 0:13:19.440 at nineteen twenty five sixty announced the euro one point 0:13:19.480 --> 0:13:21.720 one one to nine against the dollar. British found one 0:13:21.720 --> 0:13:23.960 point three one four four. The yen has at one 0:13:24.200 --> 0:13:27.280 d twenty one point eight eight and bitcoin this morning 0:13:27.320 --> 0:13:30.160 moving lower down half percent at forty seven thousand, two 0:13:30.200 --> 0:13:33.760 hundred sixty dollars. BioNTech says it plans a share of 0:13:33.840 --> 0:13:35.560 buy back of as much as one and a half 0:13:35.640 --> 0:13:38.840 billion dollars and will propose a special dividend for during 0:13:38.880 --> 0:13:41.160 some of the profits from its best selling COVID nineteen 0:13:41.280 --> 0:13:44.880 vaccine too shareholders. That's a Bloomberg business flash. Now here's 0:13:44.920 --> 0:13:47.160 Michael Barrow with more on what's going on around the world. 0:13:47.240 --> 0:13:50.600 Muddel Karen, thank you very much. Russia's pledge to scale 0:13:50.640 --> 0:13:55.319 backs and military operations in Ukraine is drawing skepticism. Ukrainian 0:13:55.360 --> 0:13:58.480 President Volodair Zelenski said there was no reason to believe 0:13:58.520 --> 0:14:02.160 Russia's announcement that it would reduced military activity near the 0:14:02.160 --> 0:14:05.640 capital of Kiev given what's happening on the ground. Thousands 0:14:05.679 --> 0:14:08.800 have died and the u N Refugee Agency says more 0:14:08.840 --> 0:14:12.520 than four million Ukrainians have led the country. A green 0:14:12.640 --> 0:14:15.040 light has been given to a second booster shot of 0:14:15.120 --> 0:14:19.160 the MODERNA and fires your vaccines for Americans over fifty 0:14:19.200 --> 0:14:23.000 and the immune compromised. The decision comes as there's concerned 0:14:23.080 --> 0:14:25.960 over a new COVID nineteen variant. In the NBA, the 0:14:26.000 --> 0:14:29.200 Nets one, the Wizards lost. In the NHL, the Rangers 0:14:29.200 --> 0:14:32.440 and Islanders won, the Bruins lost. Global News twenty four 0:14:32.480 --> 0:14:35.800 hours a day on air and on Bloomberg Quicktake, powered 0:14:35.800 --> 0:14:38.760 by more than twenty seven hundred journalists and analysts in 0:14:38.800 --> 0:14:41.640 more than one d twenty countries. Michael Barr and this 0:14:42.080 --> 0:14:44.880 is Bloomberg all right, Michael, Thanks, six nineteen on Wall 0:14:44.920 --> 0:14:48.080 Street Live from the Bloomberg Interactive Brokers studios. This is 0:14:48.120 --> 0:14:51.240 Bloomberg Daybreak, and we're joined now by Bloomberg News Executive 0:14:51.320 --> 0:14:55.240 editor for International Government, Rosalind Matheson. Just as we're hearing 0:14:55.400 --> 0:14:59.920 from the Kremlin after yesterday's talks with Ukraine. In turn, 0:15:00.040 --> 0:15:04.680 the headline this morning from spokesman Dmitri Pescalf, Russia doesn't 0:15:04.720 --> 0:15:07.840 observe any breakthrough in Ukraine talks and a lot of 0:15:07.840 --> 0:15:11.160 work remains to be done. Riz It seems like this 0:15:11.240 --> 0:15:14.680 is just adding to the whipsite effect. Well, that's right, 0:15:14.720 --> 0:15:17.600 but in fact, yesterday when they had these talks in Istanbul, 0:15:17.680 --> 0:15:20.400 they came away with no great progress at all. There 0:15:20.480 --> 0:15:22.880 wasn't even a temporary ceased far that was announced. There 0:15:22.880 --> 0:15:25.600 had been hopes going into the talks that that could happen, 0:15:25.760 --> 0:15:29.240 and they actually ended a day early. After that first 0:15:29.320 --> 0:15:32.080 round of discussions, it seems it was mostly an exercise 0:15:32.520 --> 0:15:34.720 in each side getting to put out their positions on 0:15:34.760 --> 0:15:37.840 the table again, indicate where their red lines were for 0:15:37.920 --> 0:15:41.120 any sort of further discussion around a potential peace steal, 0:15:41.520 --> 0:15:44.560 and leave again. So it's it's pretty much stating the 0:15:44.600 --> 0:15:48.320 obvious by the Kremlin that there was no breakthroughs here. Certainly, Also, 0:15:48.360 --> 0:15:51.800 their announcement yesterday that they were going to deescalate around 0:15:51.920 --> 0:15:54.720 Kiev was nothing new, because that just reflects the events 0:15:54.720 --> 0:15:57.760 on the ground that have been happening the past few weeks. Already, 0:15:57.840 --> 0:16:00.520 Russia has been very bogged down there. Their troops have 0:16:00.560 --> 0:16:03.240 been stuck and so they have made a tactical decision 0:16:03.640 --> 0:16:06.840 to withdraw there, to to divert those resources to other 0:16:06.880 --> 0:16:10.680 plates places in Ukraine, particularly in the east and the south, 0:16:10.720 --> 0:16:13.440 and we group in the conflict. So it wasn't really 0:16:13.440 --> 0:16:16.120 a magnanimous gesture to allow space for peace talks. There 0:16:16.200 --> 0:16:18.440 was a reflection of the reality of the war on 0:16:18.480 --> 0:16:21.520 the ground of nothing else, and even as Russia has 0:16:21.560 --> 0:16:24.560 said that it does plan to the escalate. We're hearing 0:16:24.640 --> 0:16:28.920 reports from Ukrainian leaders that near the cities where Russia 0:16:29.000 --> 0:16:31.880 says it will pull back Kiv in turnitive, there's been 0:16:32.080 --> 0:16:36.000 continued shelling in the overnight hours. Where do things go 0:16:36.280 --> 0:16:40.080 from here now rise, Well, that's right, there was indeed 0:16:40.120 --> 0:16:44.200 overnight shelling in both those places um and fighting on 0:16:44.240 --> 0:16:47.200 the ground. The fighting could reflect the troops as they 0:16:47.240 --> 0:16:51.080 withdraw that you can be engaged in in conflict even 0:16:51.080 --> 0:16:53.920 as you are pulling back and possibly to the Yelloous 0:16:54.000 --> 0:16:57.560 border and three. But it's also again just giving themselves 0:16:57.640 --> 0:17:00.840 cover to divert some of those resources to the east. 0:17:00.920 --> 0:17:04.000 You've seen very heavy shelling in parts of the east 0:17:04.000 --> 0:17:06.560 and the south overnight no let up again for the 0:17:06.560 --> 0:17:09.520 city of Mariopoorl, but also in those separatist areas of 0:17:09.760 --> 0:17:13.240 the Dombas territories in the east. So you can see 0:17:13.280 --> 0:17:16.080 that there's not going to be no perhaps the escalation 0:17:16.160 --> 0:17:18.639 of the shelling that's been going on of these cities. 0:17:18.680 --> 0:17:21.320 Even if the troops do you pull back their ground, 0:17:21.440 --> 0:17:23.520 that Russia is going to sustain the pressure and that's 0:17:23.560 --> 0:17:27.159 probably also to ensure that Ukraine has no leeway to 0:17:27.240 --> 0:17:29.960 divert its troops over to the east. In the south, 0:17:30.000 --> 0:17:31.800 you need to keep some pressure on in the north 0:17:32.040 --> 0:17:34.720 to prevent Ukraine having the opportunity to move their troops 0:17:34.720 --> 0:17:37.720 around as well. You mentioned the talks that were planned 0:17:37.760 --> 0:17:41.359 for today apparently are canceled. Now we just heard from 0:17:41.880 --> 0:17:44.480 Dmitri Pascal at the Kremlin saying a lot of work 0:17:44.600 --> 0:17:47.280 does remain to be done. Do we have any sense 0:17:47.359 --> 0:17:50.919 at this point that there will be further discussions and 0:17:50.960 --> 0:17:54.119 what could they entail. Well, at least there seems to 0:17:54.200 --> 0:17:56.639 be in intent to keep the conversation going. There was 0:17:56.680 --> 0:17:59.520 no date set though for further talks, and perhaps they 0:17:59.600 --> 0:18:03.080 might be going back to having video conferencing meetings every 0:18:03.160 --> 0:18:06.320 day for now instead. At least they got perhaps a 0:18:06.320 --> 0:18:09.639 bit of a measure of each other in the conversation yesterday. 0:18:09.840 --> 0:18:12.480 Ukraine got the opportunity to set out the small areas 0:18:12.520 --> 0:18:15.199 of wiggle room it might be prepared to entertain in 0:18:15.240 --> 0:18:19.480 a broader conversation and laid out some markers there. Russia 0:18:19.680 --> 0:18:21.800 did the same, but you can see the obstacles are 0:18:21.920 --> 0:18:24.560 very significant to a broader piece. Still, if they failed 0:18:24.720 --> 0:18:28.040 even to get a temporary Cisfar yesterday. That has to 0:18:28.040 --> 0:18:30.000 be the first step really is to get a temporary 0:18:30.000 --> 0:18:32.520 truth in the fighting. You allow the space for a 0:18:32.600 --> 0:18:35.240 conversation then for a broader deal. And they can't even 0:18:35.240 --> 0:18:38.200 get to that first marker as yet in our last 0:18:38.240 --> 0:18:41.800 minute here. Not the least of which for the hurdles 0:18:42.040 --> 0:18:45.639 with the talks seems to be the trust gap that 0:18:45.840 --> 0:18:48.680 Ukraine has with Russia. Do we have any sense of 0:18:48.720 --> 0:18:52.600 what it would take for Ukraine to trust Russia after 0:18:52.680 --> 0:18:55.600 all the renegging that the Russian side has done even 0:18:55.640 --> 0:18:59.159 before the invasion. Well, it seems that Ukraine wants to 0:18:59.240 --> 0:19:01.560 lay at a position where it wouldn't have to trust Russia. 0:19:01.640 --> 0:19:04.280 It will have the support of other nations, a sort 0:19:04.280 --> 0:19:07.240 of a guarantee of sorts to keep Russia in its 0:19:07.320 --> 0:19:09.960 lane going forward. And that's why it's looking to a 0:19:10.080 --> 0:19:13.000 whole host of countries around the world, possibly a dozen 0:19:13.040 --> 0:19:16.119 of them, to sign up for written security guarantees for Ukraine, 0:19:16.160 --> 0:19:19.000 so that if Russia says or does certain things, they've 0:19:19.040 --> 0:19:21.880 got support from the international community. Of course, that would 0:19:21.880 --> 0:19:24.680 probably still stop short of putting troops on the ground 0:19:24.680 --> 0:19:27.280 in Ukraine, but that sort of that really sends a signal. 0:19:27.400 --> 0:19:28.960 Ukraine says, We're not going to be able to trust 0:19:29.040 --> 0:19:30.760 Russia no matter what they say, and we're going to 0:19:30.880 --> 0:19:34.800 need these guarantees from elsewhere to ensure that Russia behaves itself. 0:19:35.440 --> 0:19:37.359 Thank you, as always for keeping us up to speed. 0:19:37.440 --> 0:19:41.520 Rosalind mathieson Bloomberg News, Executive editor for International Government and 0:19:41.560 --> 0:19:44.440 again reiterating the headline from the Kremlin this morning, It's 0:19:44.480 --> 0:19:48.160 spokesman Dmitry Peskov says that Russia does not observe any 0:19:48.160 --> 0:19:50.440 breakthrough in talks with Ukraine and a lot of work 0:19:50.760 --> 0:19:54.320 remains to be done. SMP Future is now down sixteen 0:19:54.359 --> 0:19:57.200 points to our futures down a hundred nastack futures lower 0:19:57.520 --> 0:20:00.760 by seventy nine points in the tenure treasury two point 0:20:00.800 --> 0:20:08.840 four percent. This is Bloomberg Bloomberg Daybreak, brought to you 0:20:08.840 --> 0:20:11.800 by the Jewish Communal Fund JCFS. Donor advised fund is 0:20:11.840 --> 0:20:14.560 the smart choice to manage our philanthropy, especially in times 0:20:14.560 --> 0:20:17.440 of crisis. Make your giving impactful. Visit j c F 0:20:17.600 --> 0:20:25.159 n y dot org. Broadcasting live from the Bloomberg Interactive 0:20:25.160 --> 0:20:28.280 Broker Studio in New York. Bloomberg e Living Free Home 0:20:28.400 --> 0:20:32.280 to Washington, d C. Bloomberg nine one to Boston, Bloomberg 0:20:32.359 --> 0:20:35.560 on A six one to San Francisco, Bloomberg nine sixteen 0:20:35.640 --> 0:20:38.240 to the country, Sirius XM to the one nine team, 0:20:38.359 --> 0:20:41.520 and around the globe the Bloomberg Business app and Bloomberg 0:20:41.600 --> 0:20:51.280 Radio dot Com. This is Bloomberg Daybreak six thirty on 0:20:51.320 --> 0:20:54.720 Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow. 0:20:54.760 --> 0:20:57.200 When we're just about three hours away from the open 0:20:57.200 --> 0:20:58.960 of US trading, Let's get you up to date on 0:20:58.960 --> 0:21:01.280 the news you need to know this hour. Russia has 0:21:01.280 --> 0:21:04.520 promised to cut back military operations near two key cities 0:21:04.560 --> 0:21:07.600 in Ukraine, including the capital Kiev, but the U S 0:21:07.640 --> 0:21:10.959 And NATO have their doubts. After the latest round of negotiations, 0:21:11.160 --> 0:21:13.440 we're still seeing fighting to the north and west of Kiev, 0:21:13.520 --> 0:21:17.200 and the Kremlin says there's been no breakthrough in talks. 0:21:17.200 --> 0:21:20.240 Here's Pentagon spokesman John Kirby. We're not prepared to call 0:21:20.359 --> 0:21:22.960 us a retreat or even a withdrawal. We think that 0:21:22.960 --> 0:21:25.240 that what they probably have in mind is a repositioning 0:21:25.240 --> 0:21:28.280 to prioritize elsewhere. John Kirby at the Pentagon says air 0:21:28.320 --> 0:21:31.280 strikes on Kiev are still happening, so the threat has 0:21:31.359 --> 0:21:36.160 not radically diminished. And in Ukraine meantime, Karen, President Vladimir 0:21:36.240 --> 0:21:40.040 z Lensky also has his doubts. We are seeing all 0:21:40.080 --> 0:21:42.479 of the risks. Of course, we are not seeing grounds 0:21:42.480 --> 0:21:45.199 to trust the words coming from representatives of the country 0:21:45.240 --> 0:21:48.200 that continues fighting to destroy US. And President Zolensky says 0:21:48.200 --> 0:21:50.280 there are grounds not to trust Russia. And the regional 0:21:50.320 --> 0:21:53.080 governor says the city of Chernihiv was shelled all night 0:21:53.200 --> 0:21:56.040 this fight Russia's promises. The u N says more than 0:21:56.119 --> 0:21:59.320