Bloomberg Daybreak: February 16, 2022 - Hour 1 (Radio)

York state's mass mandate ends today. I'm John Tucker. Those stories straight ahead, I'm John stash Our. In sports, the Rangers wanted to shoot out the Islanders and Devils both lost,

so did the US Olympic hockey team. That's all straight ahead on Bloomberg day Break on Bloomberg eleven Trio, New York, Bloomberg N one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nineteen and around the world along Bloomberg Radio dot Com and via The Bloomberg Business or Good Morning, I'm Nathan Hager and I'm Karen Moscow and Futures are little change this morning.

We're coming up to five on one on Wall Street, and we check the markets every fifteen minutes throughout the trading day on Bloomberg. And again, futures are a little change to lower this morning to ten year treasury up to thirty seconds, the yield two point oh three per cent, and they yield on the two year one point five percent. Nathan, all right, Karen, we'll have more in the markets in

a minute. But first, President Biden says a Russian attack against Ukraine is still very much a possibility, and he is warning that sanctions against Russia will not come without pain for Americans. Amy Morris has the latest from our Bloomberg newsroom in Washington. President Biden says the sanctions envisioned by his administration against Moscow would create long term consequences

that would undermine Russia's ability to compete economically and strategically. So, he says, the administration is also taking steps to alleviate pressure own US energy markets and offset rising prices. Russian dissizement vague that would also have consequences here at home. But the American people understand that defending democracy and liberties never without cost. Meanwhile, some Ukrainian banking and government websites were hit with a denial of service attack. The US

has offered to help investigate. Russian officials have repeatedly denied any plans to attack Ukraine. In Washington, I maybe Morris Bloomberg daybreak, All right, Amy, thank you. Meanwhile, a standoff over one of President Biden's nominees to the Federal Reserve is putting all of them in limbo. Republicans on the Senate Banking Committee are blocking Sarah bloom Morascians confirmation. They say they want to know more about a special master account that the Kansas City Fed granted to a Colorado

based fintech while Raskins served on its board. Republican Senator Bill HAGGARDA sits on the Banking Committee. They're more than thirty five questions where her answers provided were blanket. I do not recall or I'm not aware in response to questions on this. So we have not gotten to the bottom of this, and we need more information, and till we do, I'm not prepared to vote on her. Tennessee Senator Bell Haggarday spoke with our Washington corresponded Joe Matthew

on Bloomberg Sound On. Catch the program weekdays at five pm Eastern on Bloomberg Radio. The Fed will also be in focus today, Karen, with the release of the minutes from January's policy meeting. We get more on that from Bloomberg's Michael McKee. Tightened Fed concern about inflation led to a sell off in bonds when the last minutes were

released or repeat as possible. Investors want to know just how worried that central bankers were at their last meeting when they suggested it was almost time to raise interest rates. In particular, how far and how fast did they anticipate moving bond investors. In particular, we'll be looking for any details on when and how FED officials anticipate shrinking their balance sheet. Kansas City Fed President Estra George recently warned the process could be rocky for the markets. Michael McKee,

Bloomberg Daybreak, Mike, thank you. In addition to the Fed minutes, we also get the retail sales report for the month of January that's coming out later this morning. Meanwhile, in the UK, inflation unexpectedly accelerated for a fourth straight month. They have to London and get the latest live with the Bloomberg's You and Parts, good Morning You and Good Morning Karen and Nathan. Inflation is now at a thirty year high in the UK, hitting five point five percent

in the year to January. The CPI print has now overshot forecast in seven of the past nine months. That's putting pressure on the Bank of England, which is already highed rates at two of its last meetings. The Baiwese current forecast is an inflation is set to reach seven and a quarter percent. Live in London, I'm You in Possible, Make Daybreak, Okay You and thank You. In Asia, inflation eased in China last month, but factory gate prices were

still elevated. Bloomberg Gaybreak Asia anchor Brian Curtis has more. The producer price index rose nine point one percent from a year earlier. That was weaker than the estimate of nine point five percent, and it was down from December. Is reading and the good news for policymakers is that it gives them some more room to cut interest rates. China shifted to a pro growth bias late last year. It was after the economy was hit by virus outbreaks

and a slump in the property market. Consumer prices grew Who's your point nine percent last month from a year earlier, and that was slower than a projected increase. Bryan Curtis, Bloomberg day Break, Brian, thank you. Turning to the pandemic, Disney is dropping its masked mandate for a fully vaccinated guests at its US theme parks starting tomorrow. Face coverings will be optional both indoors and out at Walt disney World in Florida and Disneyland in California. Mass will still

be mandatory if you're not fully vaccinated. A major Wall Street firms are still grappling with how to bring employees back to the office as we come out of the pandemic. For Goldman Sax CEO David Solomon, he says an in person office will always be an important part of the bank's identity. We get that story from Bloomberg's Charlie Hellett.

Speaking from the Pivot m I A conference in Miami Beach, Solomon said the office was particularly valuable for the development of employees in their twenties, who make up about half of the firm. He noted that Goldman has established a presence in cities across the US, including in South Florida, but he said the pandemic will not up the Wall Street Giant to provide jobs that can be done from remote locations, such as Jackson Hole, Wyoming in New York.

Charlie Pellett bloom Bird Daybreak, Charlie, thank you. As the debate continues over how on how many days workers should spend in the office, Airbnb is looking to capitalize on the work from home trend. We spoke with Airbnb CEO Brian Chesky, but we do think more and more people are gonna work remotely over the summer with family. They

might take them somewhere, get a summer rental. But we also just think that we're gonna have three day weekends a lot more frequently for people where they might work from an Airbnb on a Friday or Monday and go away for that weekend. And Airbnb's Brian Chesky says his company's fourth quarter earnings, where it's best ever, shares her up more than three percent in early trading. Finally, Karen,

we have a new big money maker on campus. Stanford University has edged out Harvard as the country's biggest college fundraiser. The California Institution raised one point three nine billion dollars last fiscal year. That was about ten million more than the Ivy League are Those are the only two schools, Stanford and Harvard, that raked in more than a billion dollars. Rising stock markets helped to drive donations last year. Futures are moving lower right now. SMP futures down four points down,

futures down thirty one, Nasdaq futures down eleven. Straight ahead local headlines in the check of sports. This is Bloomberg and it's tout five oh seven on Wall Street. We're dealing with big problems on the Sunrise Parkway. It's closed both ways between Center and Valley Avenues. The tails coming up in traffic. First. John Tucker's here with more on what's going on in New York and around the world.

Good morning, John, Nathan Remington Arms will pay seventy three billion dollars to families who lost loved ones in the Sandy Hook Elementary School shooting. More the Landmark settlement this morning from Bloomberg's Jeff Bellinger. It is a settlement that could open the door to more lawsuits seeking to hold gun companies liable for mass shootings. The money will be divided among nine families who lost loved ones in the twelve shooting in Newtown, Connecticut that twenty children and six

staff members dead. Remington did not admit liability in the settlement. Adam Lanza, the twenty year old Sandy Hook gunman, used an a R fifteen style rifle made by Bushmaster, a company that was owned by Remington. Jeff Bullinger Bloomberg Day breaks starting today in New York State will end its requirement that people entering businesses must wear masks or show proof of full vaccination. In New York City, masks are

still required at schools and public health care facilities. Owners of stores, restaurants, theaters, or other public spaces can still require masks. Boeing seven eight seven Dreamliners suffering a new blow, US regulators say they'll step up inspections of each jet before delivery since the companies grappled with structural glitches that have turned its popular wide body jet into a drain

on cash. More than one ten of the carbon fiber aircraft have been built but left undelivered while the issues are resolved. New York Democratic Representative Kathleen says she won't run for re election after nearly eight years in office. The fifty seven year old Rice represents parts of Long Island.

Didn't say what she planned to do next, and she's joining dozens of her colleagues that are retiring or running for other public office ahead of the twenty twenty two mid term elections where Democrats fear they could lose control of the House. New Jersey Better has waged a record one forty three point seven million dollars on the Super Bowl that's up for the prior year. It comes even with bets being taken in neighboring New York for the

first time. Sports betting is exploded across the U S since the Supreme Court of Lound states outside of Nevada to offer it in t eighteen. And P. J. O'Rourke, the prolific author and satirist, has died at the age of seventy four. He started out writing for such underground publications as The New York Case. He joined National Lampoon

in nineteen seventy three. Global News twenty four hours a day on air and on Blueberry Quicktake were binding more than twenty seventh hunter of journalists and analysts and more than one twenty countries. I'm John Tucker. This is Bloomberg Nathan. All right, John, thank you, coming up to five ten on All Street time for the Bloomberg Sports Upday. Good morning, John stans Showner, A good morning, Nathan. Couple of hockey shootouts the Rangers and Bruins at the Garden, the US

and Slovakia in Beijing. Rangers won There's they scored on their first two attempts to the shootout make his advantage, and then Artemi Panaer and then sixth straight misses before KeAndre Miller scored given the Rangers a thrilling two to one win in their first game in two weeks. At the Olympics, the US, led to one on the final minutes,

seemed ready to advance to the semifinals. Slovakia scored in the U s went over for five of the shootout, gets eliminated after going three and oh in the preliminary round. Back in the NHL, the Islanders and Devils both lost

by the same six to three score. Both gave up three goals in the third period of the Isles in Buffalo, where the Sabers scored three times in the last three minutes and the Devil's blew a three one lead felt the Tampa Bay and NBA blow out Red Hot Celtics, one of the ninth in a row in Philadelphia by forty eight. James Harden watched the game on the Philly bench. He has an injured hamstring, but said he was happy

to lead Brooklyn. Harden was after that playing with Tyrie, Irving and Knew has refused to get vaccinated, only recently started playing and only in road games. Really good friends. Uh, you know, whatever he was going through, he's still going through as his personal preference. But it definitely didn't impact the team because originally, you know, obviously me, Kyrie and Katie in the court, you know, and winning covers up a lot of that stuff. And Net's big three ended

up playing together only sixteen times. Nets play a road game tonight, but it's in New York against the Knicks, and the vaccine mandate means Irving cannot play. College hopes Fordham lost I own a one. The gals are one and five at the Olympics. The disappointment at hockey, but the US won gold and silver in freestyle scheme. John Stash Award Bloomberg Sports Nathan Okay, John, thanks right now. SMP futures are down three point STOUT futures down nineteen

nastack futures down. For the latest on the Russia Ukraine tensions with Greg Valiat of AGF Investments. Next, this is Bloomberg Bloomberg eleven three O. Weather increasing cloudiness today with a high and near fifty degrees. We could get sixty tomorrow with late day showers. Highs early in the mid fifties by Friday, but temperatures will fall through the day. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg

Quick Tape. He's a Bloomberg Business Flash and I'm Karen Moscow. Stocks are higher as traders way the prospect of diminishing tension over Ukraine and the impact are rising inflation on central bank policies. They have been giving up some of their gains though in Europe this morning. US dot Index futures they're little change this morning, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg

and again futures are a little change. The ten year treasury up to thirty seconds, the yield two point oh three percent. They yield on the two year one point five five percent. Nine x scrude oil is up seven ten percent, up sixty one cents and ninety two dollars sixty eight cents of barrel comex S gold is up tenth of upper cent or two dollars thirty cents at

eighteen fifty eight. Forty announced. The euro one point one three eight one against the dollar, British found one point three eight, the yen is at one fifteen point six seven, and bitcoins higher at forty four thousand, seventy dollars. Today, we are watching for a report on January retail sales at eight thirty Wall Street time, along with the import price index, industrial productions at at nine fifteen, and its business inventories at ten in. The Federal Reserve releases minutes

from its latest meeting at two. That's a Bloomberg business flash. Now here's John Tucker with more on what's going on around the world. John, Good morning, Karen. President Biden says it's still possible that Russia will invade Ukraine because its troops remain in a threatening position. Well Disney dropping a mask man date for fully vaccinated guests to its theme parks in the US, and US regulators say those step up inspections of every Boeing seven eighties seven Dreamliner before delivery.

In sports, Rangers beat the Bruins and the shootout Islanders and Devils lose, the Capital's win and the Penguins. Sydney cross We scores his five NHL goal. In basketball, the Celtics beat the seventies six years by forty eight points. Global News twenty four hours a day on Aaron on Bloomberg Quicksache, powered by more than twenty seven hundred journalists and analysts and more than one countries. I'm John Tucker, DC's Bloomberg Nathan. That's a lot of points. Thank you, John.

It's five nineteen on Wall Street Line from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak as we continue to follow developments around tensions towards Ukraine. Were joined by Greg Valier, chief US policy strategist at a g F Investments. Greg, it's good to have you with us. As we just heard from John, the President is warning that there's still the threat of a Russian attack on Ukraine, and now we're watching headlines this morning that belying what Russia is.

NATO says that it's now seeing more troops building up near the Ukraine border. How do you assess the situation right now, Well, it's obviously very fluid, Nathan, and I think that you can't dismiss the threat of an invasion. But as you know, I've said for the last few weeks, I think it's unlikely. I think that Putin does not want to be a pariah. I think he has to worry about casualties for his own troops as the Ukrainian citizens take up arms, and I think Putin has to

worry about his own economy suffering from big sanctions. So it's it's high stakes. I think that Putin may be content to come up with an exit strategy. He's still using cyber warfare against the Ukrainians, still stirring up trouble at the border, but not with a full fledged invasion. Interesting that you see the possibility of a cyber attack as a potential off ramp. I mean the President has warned that cybers CyberSecure purity issues would be met with

a tough response as well. I mean couldn't that further intensify the situation if there is that kind of development, it sure could. But I think it would be preferable to a shooting war that would involve an enormous amount of casualties. You know. I think Dave Macrone of France has set up an exit strategy, a so called off ramp. I think that this would involve some security assurances to the Ressians without a promise on natal membership. I do

think there are negotiated plans that are getting closer. What about the sanctions debate on Capitol Hill, It seems like the lawmakers have really been at logger heads as to when to impose sanctions, what they would look like. Do you see any kind of agreement coming forward on Capitol Hill? No, if it turns out in the last twenty four hours, the Senators just thrown up its hands. They can't come

up with an agreement. It's like a bad satire. Uh. They're now going to send a strongly worded message to Putin, as if that would have any impact whatsoever. So no, congressional sanctions look like they're dead well, given where the situation stands with international diplomacy, the work that's going on with the US and allies. What do you see the market reaction being, particularly in the energy space, if if

things were to go forward really volatile. I think the markets for the next few weeks will be UH erratic. I think if this crisis passes, you're going to see UH yields in the bond market go even higher based on a belief that the global economy will be okay. Obviously, if there's a conflict, will be a huge impact on grain, natural gas, oil. So it's a very volatile situation that

I think will persist. On top of the standoff between the US and Russia, we have this standoff on Capitol Hill over President Biden's Federal Reserve nominees, particularly Sarah Bloom Raskin. What do you make of the questions that Republicans have for her, Well, they've got two big issues. Number One, the FETE has a mandate to only look at a stable prices and full employment. She has talked repeatedly over the years about another mandate to get very involved in

environmental policies. That is angrid Republicans. Plus, she had she was on the board of directors of the company in Colorado that got access to the FETs banking system that uh many people feel it was not appropriate for her. So those issues are going to stay complicating everything. You've got one Democrat in the Senate who has been ill, who's not going to be back for another several weeks.

So I think her nomination is in trouble. The other ones, Powell, Leo Brainer, I think they'll all make it, but I think the Raskan nomination is in real trouble. Do you think the President will stand by Sarah Bloom Raskin, Oh for now, I'm sure he will, And she still could make it. She indeeds to produce more documents that might absolve her of any involvement in this Colorado company. But I do think you can't have an impasse for links

in leeks and leaks. You've got to get people like Wale, Brandard and Powell confirmed, and they will be eventually all right. Gregg Value as always great to get your insights. Gregg Valuer is a Chief US policy strategist at a GF Investments. As we watch futures continue to slide on the latest Ukraine headlines, S ANDP futures are now down fourteen points down. Futures down a hundred fifteen. NASDAC futures are lower by forty one points. The tenure Treasury is up one thirty

second with the yield two point zero three percent. The yield on the two year right now one point five and nim X screwed is hired by seven tenths percent at ninety two dollars sixty cent the barrel. Stay with us. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather increasing cloudiness with highs in the upper forties Today, will be in the upper fifties tomorrow with late day showers possible.

Those will end in the morning. Friday early highs in the mid fifties, but temperatures will fall through the day. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C, Bloomberg nine to Boston, Bloomberg what a six one does? San Francisco, Bloomberg Not sixteen to the country, Sirius XM Cho one nineteen and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak, and it's

five thirty on Wall Street. Good morning, I'm Karen Moscow, I'm Nathan Hagar. Bloomberg. Daybreak is brought to you by SEI Challenges highlight one's character, partnership and resilience at s E. The act is one community with their clients. Go to se i C dot com slash banks and we're just about four hours away from the open of US trading. Let's get you have to date in the news you need to know at this hour. The situation in Ukraine

remains front and center this morning. President Biden says it's not verified that Russia's pulled the troops back from the border with Ukraine, and Bloomberg's aid Baxter has the story. President Biden says, so far intelligence is not showing it and the fact remains right now Russia has more than a hundred and fifty thousand troops and circling Ukraine and

Belarus along Ukraine's border. An invasion remains distinctly possible. Biden says if that happens, russiall be held responsible globally for death and destruction. He says sanctioned packages are in place and that the overriding issue that governments have is the right to plot their own destinies in San Francisco. I'm at Baxter Bloomberg, Gay break, okay, and thank you. Meantime, there's a standoff on Capitol Hill over President Biden's five

Federal Reserve nominees. Republicans on the Senate Banking Committee have questions about one of them, Sarah Bloom Raskin, and her role on the board of a fintech company. Raskin is President Biden's choice for FED Vice Chair for Supervision Well Nathan. This afternoon, the FED releases minutes of January's meeting on monetary policy. We get the story from Bloomberg's Vinny Del Judais.

Bloomberg Economics says the minutes could reveal whether the FED has an appetite for a half point march rate increased the battle inflation. Such sentiment could explain hawkish comments by FED Chair Jerome Powell following January's policy meeting. Recent speeches by FED officials have also been hawkish and signal central bankers are open or aggressive action. With inflation running at

the fastest pace ins to early nineteen eighties. The feds March meeting is set for the fifteenth and sixteenth Ni Del Judais bloom Birthday break, Okayvinny. Thanks. In the UK, inflation unexpectedly accelerated for the fourth month in a row. Annual price growth in January rose to five and a half percent, a new thirty year high. And Nathan on the earnings front, shares Airbnb at more than three percent in early trading, the San Francisco based travel company beating

revenue and profit estimates in the fourth quarter. Futures this morning are moving lower. SNP Future is down eleven points. Now Down Future is down ninety two, nasdack futures down twenty six. The decks in Germany's down a tenth of upper set ten year treasury of two thirty seconds, the yeld two point oh three, and the yield on the two year one point five five. Straight ahead, your latest local headlines plus a check of sports, and this is Bloomberg.

Thanks three on Wall Street, thirty degrees in Central Park, Sunrise Highways closed in Rockville Center, and John Tucker is here with more on what's going on in New York and around the world. John Nathan another side, the US is increasingly seeking to live alongside the coronavirus. Details of

this report from Bloomberg's Lisaa Tale. New York State today will end its requirement that people entering businesses must to wear masks or show proof of full vaccination and beyond New York, Walt Disney is dropping a mask mandate for fully vaccinated guests to its theme parks in the US. Face coverings will become optional for inoculated visitors in both outdoor and indoor locations from Thursday, according to a statement posted on the Disney World website. Masks will remain mandatory

for those who are not fully vaccinated. The decision comes just days after Universal Orlando ditched its mask requirement. Lise Matteo Bloomberg Daybreak. A discovery under a stairwell and off state New York, a little girl reported missing more than two years ago when she was just four, has been found alive more than one hundred fifty miles from where she disappeared. Please say they found the six year old Paisley Shults in a house and Socrates, New York, huddled

in a cold web space under the stairs. Socrates police Chief Joseph Sanagara, nobody was leaving without that child. They we honestly believed that that child was there and of course, at the end of the day, that's exactly what the case was. Days she was abducted by her biological parents, who lost custody in Stanford University raised one point three nine billion dollars in the last fiscal year, the most among US colleges, narrowly edging out Harvard for the top spot.

The parental fundraising rivals were the only schools to raise more than a billion dollars in that twelve months. JOHNS. Hopkins University in Baltimore ranked third, with nine hundred and thirty million dollars raised. Former Alaska Governor Sarah Palin has lost her defamation case against The New York Times for a second time, with the jury in Manhattan feltal court

finding for the newspaper. It comes a day after the judge said he throw out the case anyway because of weak evidence and record gun seizures last year at US airports coming under scrutiny and Congress t s A officers found almost six thousand firearms at two hundred sixty eight airport security checkpoints across the country, about an eighty three percent spike for the year before Global News twenty four hours a day, or Anna Bloomberg Quicktake Power Bud, more

than twenty seven hundred journalists and analysts and more than one hundred twenty countries. I'm John Tucker Bases Bloomberg. Nathan thanks John on wall Street, Johnson showers at the Bloomberg Sports Update. Nathan is scheduling Quirk. The Rangers had their bye week right after the All Star breaks, so they went two weeks without a game. At the Garden, they fell behind the Bruins early, tie the game third period.

I went to a shootout and in the ninth round at Kandre Miller goal gave the Blue Shirts thrilling two to one victory over Boston Islanders and Buffalo. Game was tied with three minutes left. The Savers scored three times in the last three minutes and one six to three. The Devil's led three to one. Tampa Bay also three and the third also won six three. NBA Celtics ninth win in a row by forty eight in Philadelphia just made the big trade with the Nets. James Harden won't

debut for the Sixers until next week. Has an injured hamstring. It's not known when Ben Simmons will start playing for Brooklyn. He hasn't played all season. Simmons played poorly in last year's playoffs, Critics eyes heavily. He admits he's been dealing with mental health issues. There was a bunch of things that I was dealing with as a person and my personal left that don't really when he went to death

to death with um. But yeah, I'm here now, so you know, it's a blessing to be, you know, in an organization like this, and you know, I'm just looking forward to get back on the floor and and building something great here. Nets played the Knicks tonight at the Garden at the Olympics the Young US hockey squad and won three and oh in the preliminary round. Upset in the quarter finals by Slovakia, who tied the game with forty four seconds left and then won three to and

a shootout. Americans Alex Hall and Nick Kepper won gold and silver. Feet style skiing ex metz as Matt Harvey on the witness stand, a former employee of the Angels on trial for providing the drugs that killed Angels picture Tyler's Skaggs. Harvey was Skaggs, his teammates teammate. He admitted they both used opioids. Harvey said he used them in the clubhouse, even the dugout. He also admitted to having

had a problem with cocaine. John stashot Wear Bloomberg says Nathan Okay, John, thank you seven on Wall Street time for the Tri State Business Report with Bloomberg Sad Cory. New York State's retirement plant once Tesla to disclose how much it spends on settling sexual harassment and racial discrimination complaints. The New York State Common Retirement Fund, one of the country's biggest public pension plans, filed its shareholder proposal last week.

A fifteen room condo in Manhattan, where exiled Chinese tycoon Gua when Gay has lived for years, is on sale for forty five million dollars, about twenty three million less than it was purchased for in a former bankruptcy. Judge was installed to handle this sale process. For the apartment manufacturing activity in New York State barely improved in February from a month earlier, falling short of expectations were a more robust rebound, while a measure of selling prices surged

to a record high. The Federal Reserve Bank of New York's General Business Conditions Index increased to three point one, up from minus seven tenths a month before. At your Bloomberg Trying State Business Report. I'm d Coreys on Wall Street Bloomberg Videos 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.

M pornys Anaho on ktr H in Houston. Permian basin oil producers are facing headwinds from labor shortages. I'm Gina Servettian for w BBM in Chicago. I'm talking about a new blow for Boeing's AT seven Dreamliner as the FAA steps up inspections of each jet before delivery. I'm John Donneger telling K and X listeners in Los Angeles that Disneyland will no longer require masks for vaccinated visitors. I'm

Caroline Heppie Blue Bag DAB Digital Radio in London. Womportne PU in Sanrew's private settlement he avoids a court room battle over allegations of sexual abuse by Virginiji friends. I'm Ed Gory on w A f a m in Cleveland. I'm reporting Sea World scause it will not be buying Cedar Fair. And those are some of the stories our twenty hundred Bloomberg journalists analysts are working on. It's five thirty nine on Wall Street. The following is an editorial

from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. US immigration policy should be guided by two basic principles. The first is that immigrants are indispensable to America's long term economic growth. The second is that laws to secure the country's borders must be enforced. A system built on these ideas would promote economic dynamism and prevent population decline. Unfortunately, President Joe Biden's approach to immigration has

so far been lacking. For example, the current system shuts out far too many highly skilled immigrants. To fix this, the U s could adopt a points based immigration system, similar to those in Canada and Australia. Few policies would do more to bolster American leadership in science and technology. Welcoming more highly skilled immigrants should be a top priority. For the illustration. This sedatorial was written by the Bloomberg

Editorial Board. For more Bloomberg Opinion. Please go to Bloomberg dot com slash Opinion or O P I N go on the Bloomberg terminal. This has been Bloomberg Opinion. Listen for Bloomberg opinion editorials every weekday. At this time, this is Bloomberg Bloomberg eleven three oh weather. Clouds will increase today with high in the upper forties. Late day showers possible Tomorrow. Upper fifties will get into the mid fifties

early Friday, temperatures falling through the day. Right now thirty in Central Park markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business attend at Bloomberg Quicktake, This is a Bloomberg Business flash and I'm Karen Moscow. Stocks are versing gains as traders with the prospect of diminishing tension over Ukraine and the

impact you're sing inflation on central bank policies. US DOCK index futures are lower, with SNP futures down seven points, NOW futures down fifty five, NASDAC futures down twenty four. The decks in Germany little changed ten Your treasury up to thirty seconds he'ld two point three per cent yield on the two year one point five six per set. Nivex screwed oil is at one point one percent of ninety nine cents and ninety three dollars eight cents of barrel.

Comics called a little change at eighteen fifty six thirty announced the euro one point one three eight one against the dollar, British found one point three five six three, the ns at one fifteen point seven one, and Bitcoin this morning moving higher at forty four thousand, ninety dollars. And that's at Bloomberg Business Flash. Now here's John Tucker with Moore on what's going on around the world. John

and Karen. President Vines says he is still possible Russia will invade Ukraine because its troops remain in a threatening position. US regulators say those step up with factions of every Boeing seven eighties seven Dreamliner Before delivery of Walt Disney dropping a mass mandate for fully vaccinated guests to its theme parks. In the US sports Rangers beat the Bruins and the Shootout, the Islanders and Devil's Lose, Capital's win and the Penguins. Sydney Crosby scores is five hundred nh

goal basketball. The Celtics beat the seventies sixers by forty eight points. Global news twenty four hours a day on here on Bloomberg Quicktake. We're powered by a more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm John Tucker. This is Bloomberg. Nathan. Okay, John, Thanks, It's fine eight on Wall Street Live from the Bloomberg

Interactive Broker Studios. This is Bloomberg Daybreak and we're joined now by Joe Quinland, head of Market and Thematic Strategy at Bank of America Global Wealth and Investment. It's great to speak with you, Joe. Thanks so much for being with us as we watch these market fluctuations on Ukraine headlines. Is there more volatility to come or does there need to be further pricing in of geopolitical risk here? I think, Nathan, there's gonna be more volatility until we see clearly that

there's a pull back in an easy and atensions. We've got the Munich Summit Security summit this weekend. Let's see comes out of there. But I think volatility is kind of the norm here until we get some all clear and when it comes to what Putin is actually up to, do you think we could be headed for a correction anymore than we've seen already. I don't think we put in the lows just yet, whether it's a NAS deck or the SMP. So we're gonna grind lower. I think

here the bigger ishes inflation. It's everywhere. It's eating away at margin. So and we're getting past the earning season, all eyes will be on the March FED meeting is a five or fifty, So I think the focus just back to, like the problems here right at home, What do you think the FED is going to do? What kind of clues do you think we'll get from the minutes later on this afternoon. Well, hopefully not more descent in terms of fifty or twenty five, you know, hopefully

no sense of panic. We're not looking for that. But we're still in the base case. We do twenty five basis points in March, and then thereafter every meeting they keep raising rates. The question from the markets is how hot is inflation and will that galvanize or able to put more pressure on the FED to go faster? They go faster. Increases the risk of recession. In two, that'll

be the worry. You don't see the risk of recession if the Fed keeps on a path where they do raise interest rates after every meeting, if they go gradually Nathan, and then we've got quantitative tightening um you know, soft hard landing, maybe we can avoid a recession. But let's face it. Three, the growth outlook is coming down dramatically. So will earnings as they raise rates as we fight try to put that inflation genie back in the bottle.

So you know, we're still looking for like earnings to kind of soften over the second half in the twenty three. That's going to weigh on the markets for sure. Yeah, I wanted to ask you a little bit more about the earnings outlook. How does that affect your price target for the SMP five hundred at the end of this year. What's the impact of earnings on valuations? I mean, that's a great question. We're doing like sector by sector, company

by company, because that is the challenge. How can companies manage these price increases not to inputs or bottled global supply chains, but really wages across the board. So we're still we're seeing pricing power and some of these consumer product groups. We still like energy, so the financials, so our portfolios are tilted still towards the value and the cyclical side of the equation and their US bias. We're still looking for opportunities overseas, but really US focused here.

What do you think we'll start to see more of a rotation uh into value stocks uh and away from sort of these tech names that really flew high in the last year. Well, Nathan, believe it or not, we're seeing some clients because of the tech pullback, you know, they want to jump in the tech now thinking thinking long term digitalization, a lot of upside demand still cloud computing. So we're starting to see some clients want to go back into tech add you know, not double down, but

add to their exposure. But I think in general, not until we get you know, not we see a benign inflation reading um is, are we gonna peak? So to speaking inflation? Your here do we see tech in the growth names come roaring back? So we're not there yet. Are you looking for effect of rising interest rates, rising treasury yields on stock valuations. We've seen a pretty big spikes in yield of laid pretty big, and we're still looking. You're in target for Bank of America's to five on

the ten year. That's very manageable for earnings and equities in general. So that's that's the call right now. And if we stick to that call, that true call comes true. We can see equity still grinding higher or not really rolling over because of the backup and tenure yield. If we go. If we're wrong, it goes two and a half, you know, two seventy five three handle. We got a reset for sure, but we don't see that as time

the base case. Are you looking for a reaction from the FED to the elevated producer prices we got yesterday? It does seem like inflation. You can't really put the transitory term on it anymore, for sure. Yeah, I mean in it's the front end or the back end, you know, the user inputs of the final product. It's it's all through the pipeline, the producer producer prices. I you know, I don't. I don't think the feed is going to be surprised by that number, but it could add to

that urgency. And I think it's gonna be clear that maybe twenty five basis points might not be enough, but we're still looking for twenty five. But you're right, whether it's the front end or the back end, it's it's throughout the whole pipeline. When it comes to inflation. And when it comes to the US bias that you mentioned, what what's your feeling on large cap versus small cap in your estimation, still have a bias, I mean, you know,

large large cap, we still have our bias tours. You know, the small caps them pretty beaten up here, so there's some value there. But really, at the end of the day, the large cap companies good core competence, these three cash flow, They have the wherewithal to absorb these prices, whether it's wages, whether it's inputs, So smaller companies don't have that. And when you have the cost of capital rising, that creates some problems for small caps as well. So our bias

is still towards these large cap companies multinationals. We see global growth rebounding. You know, if we get a reset in Ukraine, then Europeans avoided recession and that's hugely important for a lot of US companies. Good to get your thoughts, Joe. Thanks for being with us Joe Quinlin with a Bank of American Global Wealth and Investment. Karen, thank you. It is five fifty four on Wall Street. It's time for the Bloomberg Law Report. It's brought to you by American

Arbitration Association. Business disputes are inevitable, resolve faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a dr dot org. The Trump organization's accounting firms said a decade of financial statements for Donald Trump cannot be relied upon and that

it won't do any new work for the company. The New York Attorney General, Letitia James is investigating what she says was a pattern of potential fraud involving the manipulation of valuations of key Trump properties. The letter from the accounting firm to the Trump organization was included in the Attorney General's latest court filing urging a judge to order Trump to comply with their subpoena and document requests. For more.

Bloomberg's June Gronso speaks to Bloomberg. Legal reporter Greg Farrell tell us about this letter from the accountants, saying that a decade of the financial statements they've prepared can't be relied upon. The letter is kind of squishy. It doesn't say last ten years of statements on the financial condition of the Trump Organization, doesn't say that the information is false, but it does say that basically, we believe that the people you send it to, for example, banks, insurance companies,

or government overseers, these statements should not be relied upon. This, I think is a direct result of the massive filing that the New York Attorney General submitted to court a month ago as part of our ongoing battle. So I think they were stuck in this place that they realized, especially now that charges have been filed against the Trump Organization and more charges civil charges are being considered by the New York Attorney General. It's like they don't want

to be there anymore. So I think they probably formed the Trump Organization last year. They want out, and now

this is finally just surfacing in the public domain. Now, despite all the squishiness and optimistic valuations, if they prepared them and those statements can't be relied on, it's hard to escape the conclusion that they did something wrong somewhere right and and I think miss OURS is concerned that they will be held viable if there's any sort of regulatory action or litigation against the Trump organization for basically

misrepresenting its financial position to banks and insurance companies. I think miss OURS is trying to take a step to like not be on the hook or as much on the hook as they could otherwise be. This is bad for Trump because you know, he's fond of saying, why have the best lawyers? I have the best accounts, I have the best you know whatever until they turn on Michael Cohen. Used to be like the best until Michael Cohen decided to cooperate with the government. Then Cohen became

very different character. But Trump has said in the past that he has the best account and so he's not gonna be saying that anymore. And Letitia James used that in her investigation or in her case. I think it could be used as supporting evidence, right, it's not. It's not like a witness for the defense. Something becomes a witness for the prosecution as much as a witness for the defense basically starts easing away from it. It's like,

we're not comfortable anymore. This were a publicly traded company that would be like shareholder lawsuits and the stark price dive at that sort of thing. That's Bloomberg Legal reporter Greg Farrell speaking at the Bloomberg Student Grosso. Catch more of that interview plus analysis of the latest legal news by listening to the Bloomberg Law Show at enpm Eastern Time or subscribing to the Bloomberg Law Podcasts. And attorneys can find exceptional legal research and business development tools at

Bloomberg law dot com and Bloomberg Daybreak continues. This is Bloomberg