Bloomberg Daybreak: February 10, 2021 - Hour 1 (Radio)

of mass requirements in the Tri State area. Michael laugh More Ahead, I'm John Stashteller. Upset wins for Seaton Hall and Rodgers, the Islanders one and Nathan Shannon Chloe Kim won Olympic gold medal. That's All's tread ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine team and around the world on Bloomberg Radio dot Com. I'm and

via the Bloomberg business Side. Good morning, I'm Nathan Hager and I'm Karen Moscow and SMP futures are lower this morning. We are coming up to five on one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg. Right now, SND futures are down

about eleven points. DAL futures are little changed. In nasday futures down fifty four The decks in Germany's up a tenth of uppercent ten year treasury that will change the yield one point nine three percent, and they yield on the two year one point three five percent. Nine Max Screwede oil is up a quarter percent, or twenty four cents at eighty nine ninety cents of barrel, and the

euro one point one four four four against the dollar. Nathan, Well, Karen, we begin this morning with earnings and a huge surge in Disney shares. Right now, they're up more than seven and a half percent in early trading, the world's largest entertainment company reported first quarter sales, earnings, and streaming subscriber growth that all beat estimates. We spoke with Disney CEO Bob cha Peck after the results. We're full of optimism. We think that we've got a lot of energy and momentum.

We've got a vision for the future, a vision where we're going to appeal directly to our audience U using technology and great storytelling. And uh, we really think that it's going to be a more exciting next one years than even our stellar first one hundred heres. Disney CEO Bob Chapeck spoke with bloombergs Emily Chang. Stay tuned for more of that interview coming up shortly right here on

Bloomberg Day Break. Well, Nathan, we have some other stocks in the move this morning following earnings after the bell. Let me get the details live with the Bloomberg's John Tucker. John, good morning, and good morning, Karen. Uber shares up close to five percent of the pre market trading after fourth quarter revenue but beat estimates. The ride hailing giants so a little disruption from the Omicron variant that led to the most active users in its history, but Tell shares

this morning up eleven percent. The toymaker reporting sales and profit that Blue Pass forecast. Mattel's outlook also came in above predictions, and shares of Twilio soaring up seventcent of the pre market the infrastructure software company's fourth quarter results in first quarter for forecast beat expectations. Of the three hundred twenty six companies in the SMP five hundreds that reported earning. So far, sevent have had positive earning surprises.

Live in New York on John Tucker Bloomberg day Break. Okay, John, thank you, and the earnings continue to roll in today, with thirty companies reporting. Twitter is one of the biggest names on the today's list. Let's get a preview from Bloomberg's Tom Busby. The microblogging site reports fourth quarter earnings later this morning, the first earnings report under new CEO Parague Agrea Wall, who took over for founder Jack Dorsey

in late November. Twitter makes most of its revenue from advertising, so key for investors is how the company will navigate those new privacy changes from Apple, which require explicit permission from users to target ads on its devices. Bloomberg podcasting revenue of one point five eight billion dollars and adjusted things of thirty two cents a share Tom Busby Bloomberg Daybreak, All right, Tom, thank you? All overseegs this morning shares

a credit sweez Or down more than three percent. The Swiss Bank posted its biggest quarterly loss in about four years, and CEO Thomas Gonstein is warning that higher costs for pay and its restructuring will weigh on results all year. We also um included a new form of compensation in terms of our STP strategic delivery Plan, and this was very well received by by our employees and Credit Sweez is very committed to play market to pay market rates

in terms of compensation. Credit swe CEO Thomas Gonstein says the company is focused on implementing a new strategy after scandals involving Archigo's capital management in Greensville Capital Now. Shares of Uni Leaver are also in focus this morning, Karen. They're down more than three percent in London. Company warns the inflation will dent profitability for two years. Unilever says commodity costs arising by more than across the consumer goods industry.

Speaking at prices, Nathan, We're set for the next reading on inflation here in the US. The Government of Relations that consumer price index for January at eight thirty am. Wall Street Time economists forecast reading of seven point two percent a year over year. We get more from Bloomberg Economics correspondent Michael McKee January's Consumer Price Index won't lead the Fed to any kind of decision, but it will offer guidance about what they'll need to do down the road.

Much of the jump in inflation has come from goods rather than services, as Americans, flush with stimulus cash, stayed home and bought things instead of experiences. The omicron outbreak last month probably kept that trend in place, but we did see inventories rising at the end of last year, which could mean some easing in transportation and bottleneck costs. Economists will also check the reopening trade cars, insurance, lodging, airfares,

and food to see if prices are still rising. And finally, housing home prices up seventeen and a half percent through November one, will be feeding into the CPI for some time, even if higher interest rates start to slow home sales. Michael McKey, Bloomberg Daybreak. Okay, Mike, thanks for also watching the Fed. For another reason this morning, history is being made at the Federal Reserve Bank of Boston. More on that line from Bloomberg. Grinida Young, Good morning, Granina, Good morning, Nathan.

The Boston Fed has named University of Michigan Economists Susan Collins as its next president. She becomes the first black woman to lead one of the Central banks twelve districts and will rep replace Eric Rosenren, who stepped down last year. The Collins, who earned a doctorate in economics at m I T, drew support from many, including former Vice chair Alan Blinder. I certainly think she's in the mainstream among economists, among liberal left, left of center economists, but certainly not

far left. I mean, she's really in the mainstream, and I think that's basically where the Federal Reserve is these days. Former FED Vice chair and current Princeton Universe City professor Alan Blinder says Collins has every asset for the job and no liabilities. Live in New York. I'm Nita Young Bloomberg daybreak. Okay, Nita, thank you. S and P futures now down twelve point, Stoule futures down nine, Nastic futures lower by sixty points. Straight ahead, your latest local headlines

at a check of sports. This is Bloomberg. It's five oh seven on Wall Street where forty degrees in Central Park. We have a earlier tractor trailer fire that's got the southbound easterns for the New Jersey TRIMPI closed. Michael barrs here with Marrom what's going on in New York and

around the world. Good morning Michael, Good morning Nathan. The National Archives is asking the Justice Department to investigate whether former President Donald Trump violated federal law and the handling of documents then President Trump tore up some of them. The Archives also transported fifteen boxes of documents from Mara Lago after Trump representatives located them and notify the Archives.

Former federal prosecutor Lorie Levinson the referral by the National Archive does not mean that there's necessarily going to be a criminal investigation of Trump or his advisors. It's simply a suggestion that someone needs to look into what happened here, loyal out law professor Lorie Levinson. The New York Times reports the Inspector General reached out to the Justice Department after they discovered what's believed to be classified documents that

Trump took from the White House. New York Governor Kathy Hokel says the state will end a COVID nineteen mask mandate requiring face coverings in most indoor public settings, but We'll keep masking rules in place for schools for now. The state will drop its mask mandate for most businesses. Hocals has the numbers support, leaving the question of masks to individual localts. We saw those numbers literally off the charts, and now those numbers are coming down, and it is

time to adapt. L has been saying she wants to see vaccination rates for children increase before she gets rid of a state requirement for the masks and school rules. Connecticut Governor Ned Lamont proposed a twenty four point two billion dollar budget for the fiscal years starting July one, boosts spending for state colleges and universities whose enrollment has dropped during the pandemic. LaMotte, in his State of the

State address also announced tax cuts on automobiles. Three years ago, we're standing at the edge of a fiscal cliff, basic at three point seven billion dollar budget deficit, and today we're deciding what taxes to cut and what school programs to grow. Thanks to our third consecutive budget year of budget syrupluses. Governor Lamont also says the state has earned the right to no longer have a statewide mask mandate

in schools. It's good news for the New York City subway system that carried more than three million customers on Tuesday, the busiest since the Umicron variant hit the city. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg. Nathan Alright, Michael's thank you up to five ten on All Street Time for the Bloomberg Sports

up Taking Morning, John stanho Al, Good morning. The eight in the US finally went into hardware at the Olympics. Took five days before their first gold medal, but now two more, including a second and women's snowboarding, Chloe Kim became a breakout star when she won the half by four years ago. She has admitted the suffering from some depression as she dealt with the new found FAMO. In fact, Kim said at one point she threw her gold medal

in the trash before then retrieving it. She was all smiles in Faijing that she cruised the victory just as Nathan Chan did in men's figure skame the Super Bowl in l a commissioner Roger Gudell with his annual State of the Game press conference, he promised the league would do better in minority higher and he was asked what

that would entail. Everything from looking at the Berney rule and seeing what changes should be made to that, if any changes, or should it be removed, which some people suggested. All of those things are part of that. We're gonna talk to other people who have independent people come in and look and help us evaluate it, because it's sometimes hard to evaluate your own policies and procedures to They'll

admit it. At one time, stand up comic Byron Allen, now a media moguls and talks to buy the Denver Broncos become the NFL's first African American owner. NBA trade deadline three o'clock today is still a lot of James Harden for Ben Simmons, rumors that would be a blockbuster if the Nets and Sixers pulled the trigger. Nets have lost their last nine. They visit at Washington tonight, Struggling NIXT that Golden State Warriors lost last night at Utah

by twenty six. Islander's a five goal first period of six three win at Vancouver two top twenty five teams lost in New Jersey, Rutgers knocked off Ohio State by two. Just the Seaton hallbeat Xavier by two. The Scarlet Knights and the Pirates helped their case to make next month's n C Double A two. John Stash were Bloomberg Sports all right, John, thanks. SMP futures down ten point Staff futures, I'm moving a touch higher now they're up five points.

Nest that futures still lower. Down fifty three Disney shares of nearly eight percent in the pre market after earnings. Will hear from CEO Bob shade Peck just ahead. This is Bloomberg Blumber eleven three oh weather partly and we'll see sunny upper forties today, will be in the upper forties tomorrow, low fifties by Saturday, Super Bowl Sunday, the possibility of light snow right now forty in Central Park Markets.

Headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at Hand at Bloomberg Quick Take. This is a Bloomberg business flash and I'm Karen Moscow and SMP futures are lower ahead of key US inflation data. Sin P futures down eight points down, futures are little change to higher up nineteen and the Nasdaq futures are down forty four. The tenure treasury little change. He has one yield on the two year one point

three five percent. That's a Bloomberg Business Flower Show. Where's Michael Barr with more what's going on around the world. Michael, thank you very much. Camera in Russia and Belarus began their largest joint military drills and years today. Russia has repeatedly denied it plans to invade Ukraine after the US and its NATO allies warned of a build up about a hundred thirty thousand Russian troops near the border. Figure skater at Nathan Chan of the US won the gold

and the men's individual event in the NHL. The island has won global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalists and analysts and more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan alright, Michael, thanks, It's eighteen on Wall Street Live from the Bloomberg Interact and Broker Studios. This is Bloomberg Daybreak. I'm Nathan Hagar.

What's stock. Disney, the world's largest entertainment company, is reporting first quarter sales, earnings, and streaming subscriber growth that all beat estimates. After announcing the results, of Disney CEO Bob Chapeck sat down for an interview with Bloomberg ex Emily Chang to discuss the results and the path ahead. Let's

listen in to that conversation now. I want to start with this month, marking two years with you as CEO, Bob Iger has officially ridden away from the happiest place on Earth, and I want to know how you're feeling. Do you feel like your strategy is clicking and that things are working well? I think, as evidence by our most recent quarter, everything's falling into place. You know, we're

filled with optimism here at Disney. We're at the point where we're just at the start of the last year of our first one hundred and the inflection point for the start of the next one hundred. And I think if you look at our parks business, you look at our media business, all fueled by the great content that our internal storytellers get to tell we're full of optimism. We think that we've got a lot of energy and momentum.

We've got a vision for the future, a vision where we're going to appeal directly to our audience, uh, using technology and great storytelling, and uh, we really think that it's going to be a more exciting next one years than even our stellar first one hundred. Heres give us some color on what's driving the burst in subscriber growth

at Disney Plus compared to the slowdown last quarter. You know, we had said for a long time that it's not going to be a linear growth quarter to quarter on Disney Plus, that there were going to be some quarters a little higher, some quarters a little lower. And it's really almost directly a function of what the new content is that's flowing into the service. And obviously that content was impeded, uh and made a little choppy even more by the fact that you know, we had COVID and

it interrupted our production cycles. But as we stated last earnings and the earnings as well, is that that flow becomes a little more steady, a little bit more predictable, a little bit more optimal during the second half of this year, and we expect that uh, we're going to actually add more substance second half of the year than the first half of the year, so we're very encouraged

by that. Again, it will still be choppier than a perfect linear line, but you know, when you have great storytelling and great brands like we do, uh, it's it's gonna draw a lot of people across the globe. So we're excited about that. Now, you said it was hard to get people to the theater for family movies, and I wonder when you see that changing and what that means for the next few family titles. Well, we're very

carefully watching the return to theaters. And obviously when you have something like Spider Man that comes out into the marketplace and it does you know, gamebusters numbers were very encouraged about that, you know. So it's called the eighteen to thirty four uh target uh demo. That seems too if you've got the right movie, big blockbuster, great film

based on a franchise, that's back. We are a little more concerned though about the family films and some of the films that appeal to the over thirty five audience. But we're very very lucky in that um uh. We have the ability to take our films to all the

audiences on Disney Plus, and we're encouraged. We hope that the family comes back to theaters, but we believe that even with a title Likencanto, which as you know, has proved to the world, that we can build a Disney franchise on on on the back of Disney Plus, because our merchandise licensed merchandise spiked as soon as it came out on Disney Plus. The music went from I think it was a hundred ninety seven on the top two hundred and Billboard to number one for multiple weeks in

a row. We can build a franchise on Disney Plus. So we'd love for theatrical to come back for family movies. Uh. We hope it does. But if it doesn't, we we know that we're very secure in being able to use our own platform, Disney Plus to help do that. I want to talk about parks in more detail. You hit some all time records with revenue there, but attendance is still you know, lower or in line depending on the park that you're talking about. What's the outlook ahead as

oh Macron Wings, are you preparing for new variants? Do you see hitting new records in attendance or is it all about revenue. We're we're preparing for anything. I think if the last two years have taught us anything is to remain flexible. But if we have a focus on our guest we believe that it's going to uh turn out just just find I think one of the reasons why we've had such a recovery in demand and attendance at our parks is a function of the fact that

consumers are guests are fans trust us. Not only do we deliver great experiences and tell great stories, but they trust us. And we're going to move very slowly when it comes to attendance increases because we feel that we want to be very, very responsible. And some of the reasons why we don't have max capacity right now is that we still haven't turned on all of the live entertainment that we've got at the parks. Was as as you know, is a really big component of a great

Disney experience. But we're moving slow on that because we want to make sure that as you identify people, that our guests feel very comfortable, and we do vas all the time in terms of what our guests feel is the appropriate density and so we're metering that. But I must say that the operating performance of parks Uh using

that approach has been extraordinary, extraordinarily great. And that was Disney CEO Bob cha Peck speaking with Bloomberg's Emily Chang on the heels of first quarter earnings that beat estimates on nearly every metric, tough to avoid, the happiest place on Earth metaphors for investors. This morning, the shares of Disney and the pre market right now up more than

seven and a half per cent. As for the broader market, futures are mixed ahead of the January CPI print s ANDP futures are down ten points down, futures up five points, NASAC futures are lower by forty eight points. Not a lot of movement in the bond space right now. The tenure is little changed, with the yield one point nine three percent, the yield on the two year one point

three five percent up. Next, we'll have more on the earnings shaping markets this morning, including Credit Suis, Mattel, and Uber plus a historic new regional Fed president that's straight ahead as Bloomberg daybreak continues. Bloomberg eleven three oh Weather partly. The mostly sunny upper forties today and tomorrow will be in the low fifties by Saturday, light snow, possible Super Bowl Sunday. That'll be a change. Right now, forty degrees

in Central Park. Criadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg No. Sixty to the Country, Sirius XM Cho one nine, and around the globe, the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow. We're just about four hours

away from the open of US training. Let's get you up to date on the news you need to know at this hour. Earnings and inflation are front and center, and we begin with earnings. Shares of Disney are higher, up almost eight percent in early trading after first quarter sales,

profit and streaming subscriber growth. All Beat analysts estimates CEO Bob Speck is optimistic, especially about Disney plus we're gonna actually add more substance second half of the year than the first half of the year, so we're very encouraged by that. Again, it'll still be choppier than a perfect linear line, but uh, you know, when you have great storytelling and great brands like we do, Uh, it's it's gonna draw a lot of people across the globe. So

we're excited about that. Disney CEO Bob Kpex says subscription subscriptions for Disney Plus are now approaching one thirty million. Well, we do have some other stocks on the move this morning, Karen, following after the Bell earnings. Let's get the latest on those live from Bloomberg's John Tucker. John Nathan Uber shares of six percent in pre market trading. Fourth quarter revenue top to estimates. The ride handling giant reported the most

active users in its history. Mattel shares up almost eleven percent. Revenue and earnings at the toymaker also beat estimates, and so did the company's forecast, and Twilio shares jumping seventeen percent in pre market trading. The infrastructure software company reported fourth quarter results that beat expectations and forecast revenue ahead of the consensus. Live in New York. I'm John Tucker,

Bloomberg Daybreak, John, Thank you. In Europe this morning, shares a credit suite SARRE down more than four and a half percent. The bank posted its biggest quarterly loss in about four years after a large restructuring and litigation charges. All back here in the US, Karen, the focus this morning will be on inflation. Economist predict a CPI reading for January of seven point two percent year over year. And it's a history day at the Federal Reserve Bank

of Boston. Nathan. We get the latest live from Bloomberg's Ranida Young. Good morning, Rinda, Good morning Karen. The Boston Fed has named University of Michigan economists Susan Collins as its next president. She becomes the first black woman to lead one of the central banks twelve districts. She'll place Eric Rosing Grin, who stepped down last year. Collins, who earned a doctorate in economics at m I, t drew support from many, including former FIT vice chair and current

Princeton University professor Alan Blinder. He says Collins has every asset for the job and no liabilities. Live in New York, I'm Rnita Young Bloomberg Daybreak, all right, Randa, thank you, S and P. Futures lower down nine points down, futures that will change nasday futures down forty four and a straight ahead your latest local headlines plus a check of sports.

And this is Bloomberg. All right, Karen, thank you. It's five thirty three on Wall Street, forty degrees in Central Park and accident clean up has the south end of Jersey Turnpike Eastern Spur close. Details coming up in traffic. First Michael Barr with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York Governor Kanthy Hocle lifted statewide requirement to wear a mask indoors where show business is proof

of vaccination. However, Governor Hocle will wait on mask requirements for schools until after kids return from February break. We are going to make an assessment that first week in March. Based on all the metrics, Governor hocal says, the positivity rate is down and hospitalizations are down as well. President Joe Biden has met with the heads of the nation's largest power companies with an eye towards climate change. Bloomberg's president says, these companies have to be at the forefront

of the US effort to cut a mission. CEOs know exactly why clean energy future matters. It's an incredible opportunity for our country and uh and they know how urgent is to get this done. And there've been uh, you know, they've been key partners throughout this entire process, and Biden telling the companies their role will be crucial for the future of the country and the globe. In San Francisco,

I'm at Baxter Bloomberg Gay Break. The National Archives is asking the Justice Department to investigate whether former President Donald Trump violated federal law and the handling of documents. The referral was made by how then president Trump dealt with the documents. Former federal prosecutor Lourie Levinson says the probe is not a surprise. He took fifteen boxes to his private residence at maral Lago. Some of those had documents that definitely should have gone to the National Archives, and

then he had the habit of ripping up documents. Loyola law professor Lourie Levinson. One month after actor and comedian Bob Saget was found dead in the Orlando hotel room. Is grieving family announced that he died from head trauma. Saget's family said authorities determined that he accidentally hit the back of his head on something, thought nothing of it

and went to sleep. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven journalists and analyst more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan, Okay, Michael, Thank you Wall Street. Time for the Bloomberg Sports Update with John Stannshower. Thanks Fafin. At the Olympics, two U S gold medals, both won by heavily favored Americans, both

with Asian heritage, both attend Ivy League schools. Nathan Chen since finishing a disappointing fifth four years ago, as nearly completed his degree at Yale, and he's won almost every competition. He won the men's figure skinning easily, just as Chloe Kim, who goes to Princeton, became the first female to win back to back snowboarding goals. Roger Dale met the Super Bowl media his first public comments since the Brian Flores lawsuit that alleged Dolphins owner Stephen Ross offered Flora's bonus

money for each game Miami loss. I found UM all of the allegations, whether they were based on racism or discrimination or the integrative of their game, all of those um to me. We're very disturbing. UM. They are very serious matters to us on hall levels, and we need to make sure we get to the bottom of all

of them. Your dell and asked the NFL will play a game next year in Munich after the Super Bowl in the Olympics, the next big event and c double A tournament Seaton Hall and Rutgers, both open to get invited. Both helped their case with two point victories at home against top twenty five teams the Fire and S Top Xavier. The Scarlett Knights, who had that earlier big upset of for Do when they ranked number one, able to get by o High State. NBA Lakers lost in Portland. Lakers

are four games under five hundred. Lebron James says they are playing in a fog. It will instant see if they make a trade to four. Today's three o'clock deadline, Nixon nets both said to be involved in trade. Tops Nix Tonight at Golden State Nets visit Washington. Big first period for the Islanders. They scored five times, they won six three at Vancouver. John Stash Atward Bloomberg Sports Nathan, Thank you John. It's five thirty seven on Wall Street

time for the Tri State Business Report. Here's Bloomberg zed Corey. Manhattan apartment rents were close to a record high in January. Median rent jump twenty three per cent from a year earlier to three thousand, four hundred sixties seven dollars, according to a praiser, Miller Samuel in brokerage Douglas Element Real Estate. That's just shy the record for January each in twenty

before the pandemic. New York State Pension Fund will divest more than two hundred thirty eight million dollars in shares and bonds of oil and gas companies, including Pioneer Natural Resources, HESS and Diamondback Energy. The move follows a review that found the company has failed to demonstrate viable net zero transition plans. New Jersey Transit has approved to two point

six billion dollar operating budget. The spending plan was delayed because of a disagreement over pandemic stimulus funds in the American Rescue Plan. At a board meeting Wednesday, CEO Kevin Corbett said ridership is bouncing back. That your Bloomberg trying State business report. I'm ed Corey, Okay, and thank you. It's on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong.

Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve Potastan on K and X in Los Angeles, where talking about Disney being the happiest place on Earth after sales earnings and streaming subscriber growth all easily be forecasts. Um Courney's Anaho on ktr H in Houston. Quarter of American Firms raised wagents in Covid. I'm Caroline had complete a DAB digital radio

in London. We're reporting on starting salaries in the UK rising at a rapid pace according to the Recruitment and Employment Confederation because of inflation fears and a shortage of workers. I'm in Corey on w w J in Detroit, I'm reporting general motors and boards here. They haven't experienced disruptions to parts deliveries because of border protests silver vagacine mandates

in Canada. Those are some of the stories our twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. The Republican National Committee recently characterized the January sixth attack on the Capitol as an instance of legitimate political discourse. When asked for his opinion in sentim, Minority leader Mitt McConnell didn't

mince words. He called January six a violent insurrection for the purpose of trying to prevent the peaceful transfer of power. By uttering that simple truth, McConnell performed an essential service to his party and the country. He seems to recognize the obvious that attempting to rebrand a violent attack as

legitimate discourse isn't a winning campaign strategy. In two and beyond, Republicans have hardly been profiles and courage when it comes to standing up to former President Donald Trump, but McConnell has consistently spoken at at key moments to protect the integrity of the democratic process. For that, he deserves the support of republicans and the respect of democrats. This editorial was written by the Bloomberg Opinion Editorial Board. I'm David Shipley.

For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or OPA and go on the Bloomberg terminal. These has been Bloomberg Opinion. You can hear Bloomberg opinion editorials every weekday at this time, and terminal customers can read more at O P I n GO, SMP. Future is now down seven point staff futures up twenty three NASDAC futures lower by thirty nine points in the tenure down one thirty second yield one point nine three percent

ahead of inflation data. We'll talk next with Wells Fargo senior economist Stairhouse. This is Bloomberg Bloomberg eleven three oh Weather. Sunshine upper forties today, a mix of sun and clouds Tomorrow upper forties, low fifties under a mix of sun and cloud Saturday and light snow possible Super Bowl Sunday. Right now forty in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quick Tape is

a Bloomberg business last and I'm Karen. Moscow and SMP futures are slipping this morning. European stocks are little change. Traders are shifting at a defensive mode ahead of some p U S inflation data that may shape the use on how aggressively the federal tighten monetary policy to check the markets every fifteen minutes throughout the trading day. On Bloomberg, SMP future is down about seven points and down Future is up thirty five. Nasdaq Future is down forty two.

That decks in Germany is up to tenths of upper set and your treasury that'll change at one point nine three percent. The yield on the two year one point three four percent night Make Screwed Oil is up four tenths per cent or thirty six cents at ninety dollars two cents of Barrel Co makes Goal down to tenths per cent or two dollars ninety cents at eighteen thirty three. Sixty announced the euro one point one four four two

against the dollar. British found one point three five six seven, and the ends at one fifteen point eight three bitcoin this morning at forty four thousand, six thirty dollars. That's a Bloomberg Business Flashtown. Here's Michael Barr with more on what's going on around the world. Michael, thank you very much, Karen. The protest over COVID restrictions blocking freight traffic from Detroit

into Canada is starting to at crucial supply. Chains Ford was forced to handle a Canadian engine factory and operate an assembly plan that reduced capacity. Bob Sagett died of head trauma. That's according to a statement from his family, who say apparently Saget accidentally hit the back of his head on something, thought nothing of it and went to sleep. The US has won three gold medals of the Beijing Olympics so far, including by figure skater Nathan jen in

the men's individual event. NFL commissioned to Roner Goodell says the league will deal with discrimination in a serious way if he finds team violations in the NHL. The Islanders one NBA action the Warriors lost. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than un journalists, an analyist more than a hundred twenty countries. I'm Michael bar This is Bloomberg. Nathan Okay, Michael. Thanks. It's five forty nine on Wall

Street Live from the Bloomberg Interacted Broker's studios. This is Bloomberg Daybreak and Sarah House is with us now, senior economist at Wells Fargo. As we await could be another historically high reading on consumer prices for the month of January. Sarah, good morning. We're already near a forty year high on inflation. Is there any reason to think that today's number will be any different? Well, I think we're going to see

another big gain in terms of the monthly reading. So we're looking for a zero point four percent increase, which would push the year over Europe to seven point two percent, so even higher than than where we're sitting right now. And when I think, when you step back and you look at the trend, at least over the past couple of months, we are seeing some signs of moderating, but even then we're seeing them pushed and continuing to run

at a pretty high rate. So just because things are looking a little bit better doesn't mean they're nowhere near good enough for I think what the FET is looking for and of course what's going to be more friendly to consumers. Where are you seeing those signs of moderation and do you think we're close to peak inflation? Well, this month at least, I think we'll see some softness and energy, and in part just due to the seasonal think some of the softness will also be driven by

travel services. As a Macron did weigh on demand in that area. But I think when you look ahead, UM, we'll probably see monthly games somewhere around zero point three to zero point four percent. That's about five percent annualized. Now, of course that's a step down from where we are, and we think some of that's going to come from goods inflation not rising nearly as steep as what we saw over over last year. But that doesn't mean that this is a benign environment by any means. We should

still see good good inflation. UM, at least good prices continue to rise, So you think some of this is still driven by supply chain issues. I wonder whether we could start to see any effect from this, uh, this Trucker protest. I wonder if it's too soon to factor that in But is there still some of that in play here. I think it's probably a little bit soon for for the trucker protest, but it's a good reminder

that we're still running on very thin inventories. Now. The inventory picture has stabilized a little bit here recently, if you're looking at the retail inventory to sales ratio, or just the fact that we were able to actually increase inventories for the first time all year in the fourth quarter, But there's not a lot of room for air further disruptions before you start to see those effects begin to

hit prices again. So while we're looking for a moderating rate of goods, inflation is still likely to be strong, and there's all sorts of risks that that could change that that view, And of course there's still this debate going on about whether fiscal policy monetary policy is feeding into the price pressures we're seeing as well. Where do you stand on that and what effect, if any, could a more hawkish fed play on these historic pressures that

we're seeing. Well, I still think that a lot of the inflation that we're seeing is still rooted in the pandemic. So the change in the pattern of spending that we saw along with the tremendous policy support both on the fiscal and in monetary policy side, and that of course is fading. So fiscal supports with the end of the child tax credit at the end of last year, you know, we really don't have much at all coming through the

pike on that front. That's going to lead real disposable income to basically tread water um but essentially until about June, so that that factor is fading. And then of course you have the title monetary policy, which is likely to affect things like mortgage rates and therefore home prices. That's going to take a little bit to feed through. But these are factors that are leading to this overall slowdown

that we're looking for. An inflation here. So in the last thirty seconds here, how much do you expect the CPI print a factor into what the FED the sides next month? Are you thinking we could see half percentage point great hike next month? Well, this will be a

key data point. Now we do get one more CPI print before the March meeting, so this isn't the end all be all, but I think this inflation print, the next one and the next job's reading in and what we've be there and average early earnings are going to be the primary determinants of what the FETs thinking heading into that next meeting and whether fifty basis points could actually be on the table. More data dependence to come. Thanks for the Sarah, Good having you on. Sarah House,

senior economist at Wells Fargo with us this morning. Karen Nathan, it is five three on WALLA Street. Time for the Bloomberg Law Report. We get to the legal stories we're watching this morning from Bloomberg's Jeff Bellainger. A federal appeals court refused to lift an injunction the blocks enforcement of the Biden Administration's vaccination requirement for federal workers. Medicare's care Compare website will include information on the COVID vaccine booster

rates among residents and staff and individual nursing homes. Automated collection and unfiled tax return notices are being put on hold by the Internal Revenue Service. It's an acknowledgement that the agency needs to work through a backlog of unprocessed returns. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg Market Intelligence. Find out more at Bloomberg law dot com. All right, Jeff, thank you know.

Another legal story we're watching brings us to the election law. A divided Supreme Court delta blow to minority of voting rights by reinstating an Alabama congressional map that creates only one district likely to elect a black representative. A lower court had ruled that federal law required a second district because of the state's population is black. It's the first Supreme Court test for new districts being drawn around the country.

For more in the decision, Bloomberg's during Grosso speaks to elections law expert Rebecca Green, a professor at William and Mary Law School. I've seen a lot of headlines that say, in one form or another that this is a blow to minority voting rights. Do you agree, and if so, how much of a blow. Well, if you believe in the protections the Voting Rights Act is supposed to afford minority voters in redistricting cases, then this is certainly a blow because the map that the state of Alabama drew

is sort of textbook vote dilution. In other words, it packs minority voters in one district, and it cracks a group of minority voters in half to dilute their strength. So it's it's sort of textbook packing and cracking. Um. And to the extent that the court's order means that the maps will go forward with those diluted districts, then you know that certainly will be harmful I repartably to minority voters. Um. Like I said, this is sort of a textbook violation of Section to at least as far

as the Court has been concerned. Up until now, there's no opinion for the majority. But in a concurring opinion, Justice Brett Kavanaugh, joined by Justice Samuel Alito, said that this decision was necessary because the lower court had acted too soon before coming election. Do you buy that reasoning, Well,

it's certainly a novel claim. I mean, the Purcell principle, as it's known, is just sort of this idea that you shouldn't make changes Federal courts shouldn't make changes um right before an election, because it would confuse voters and would make it difficult for the election officials to administer the election. But neither of those issues are present here where we're months and months away from an election and where remedial maps could be drawn, you know, basically with

the snap of a finger. So it's hard to square that argument. And it's certainly a very sort of big extension of the principle to say, you know, months out

a federal court can't mess with the state's plan. And I think but especially worrisome about it is maybe it's going to mean that, you know, line gars dragged their feet to pass maps, because if they can get it within, you know, many months out from a primary election, then maybe they can win on the perspell principle, which just is a very bad sort of incentive to to set up and as your back A Green, a professor at William and Mary Law School, speaking with the Bloomberg's June Grosso.

Catch more of that interview, plus analysis of the latest legal news by listening to the Bloomberg Law Show at ten pm Eastern Time or subscribing to the Bloomberg Law Podcast, and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com. SMP futures are down about six points this morning. Dal future is higher of fifty NASDACK futures down forty QO and a ten year

treasury little change. He at one point nme three per cent, and they yield on the two year one point three four percent. Nine make screwed oils up seven tenths per cent or sixty four cents at ninety dollars thirty cents of barrel and straight ahead. We have our top stories as Bloomberg day break continues. This is Bloomberg