Bloomberg Daybreak: February 18, 2022 - Hour 2 (Radio)

Former President Trump ordered to testify in the New York Attorney General's probe of his business practices, and former Governor Cuomo sued for alleged sex harassment. I'm John Tucker. Those stories straight ahead, I'm John Stashower and sports. Another shootout at the Garden this time the Rangers lost in Detroit, the Islanders beat the Ruins, the Nets lost to Washington.

That's all straight ahead on Bloomberg day Break on Bloomberg Element Trio, New York, Bloomberg one, Washington, d C, Bloomberg one on six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nineteen and around the world Old on Bloomberg Radio dot Com and via The Bloomberg Business. Good Morning, I'm Nathan Hagar and I'm kmeron Moscow. US future is higher to end the week. We're coming up to six oh one on Moll Street, and we check

the markets every fifteen minutes throughout the trading day. On Bloomberg S and P futures up twenty one points down, futures up one d ten, NAS Deck futures up ninety seven. The decks in Germany is down a tenth of a percent ten. Your treasury down one thirty second. He had one point nine six percent yield on the two year, one point eight percent. Nimex screwed oil is down two point six percent, down two dollars forty two cents at

eighty nine dollars, thirty four cents of barrel. Comex gold is down six tents percent or eleven dollars ten cents at eight ounce. The euro one point one three zero against the dollar. Nathan, Well, Karen, we are seeing futures get a lift after yesterday's sell off. There's optimism on where the US is extending a hand to Russia with

a high stakes meeting. Bloomberg said. Baxter has the story, so it looks as if there will be a meeting late next week as the US accepts the date as well, But the fact remains that are over one hundred fifty thousand Russian troops at the border, and Blincoln says the real issue the States go far beyond you, cra This is a moment of peril for the lives and safety of millions of people, as well as for the foundation of the United Nations Charter and the rules based international order.

And President Biden says he will call Transatlantic leaders later today in San Francisco. I'm at Baxter Bloomberg Daybreak and thank you Geo political tensions help you la sell off on Wall Street yesterday about eighty five company's in the s and P five hundred fell well. The tech heavy NASDAC tumbled three percent. It's a difficult time for investors. According to Eaton Vance, portfolio manager at Yaina Barton, there are lots of questions with very hugeful proof answers, a

lot of uncertainty, which obviously investors don't like. But you name it, uh and visibility is marking with it. It's policy, geopolitics, growth inflation to worry about. But Jana Barton at Eton Vance says she still remains bullish on equities. Well. Perhaps some of the hardest hit stocks the past few months here and has been Meta Platforms, the parent of Facebook, has now tumbled out of the world's ten largest companies by market value. It's been hammered by its worst monthly

decline ever. We get more from Bloomberg's Charlie Pellet. Once the world's sixth largest company with a valuation and excess of one trillion dollars, the Facebook parent closed the last session with a value of five hundred sixty five billion dollars,

placing it in eleventh place behind ten Cent Holdings. According to data compile by Bloomberg, Metal Platforms, which changed its name from Facebook last year, has seen more than five hundred billion dollars in market value destroyed from a September peak in New York. Charlie Pellet Bloomberg daybreak. All right, Charlie, thank you, and let's get you up to date on some other stocks moving this morning. On Earning shares a

Roku or down twenty in early trading. The streaming video form reported revenue and a sales outlook that fails short of estimates. Red Fin shares are down more than also, the real estate technology company forecast a first quarter loss that was worse than analysts we're looking for, and shares of shak a Shack are down twelve percent. The Hamburger Chains first quarter revenue miss forecast. So the volatility and the market like this, where's the best place to put

your money? Some say overseas? Let's get the details live from overseas, Bloombergs Max Ramsey's with us in our London bureau. Good morning, Max, morning, Nathan and Karen. Yes, we're seeing optimistic views from strategists on Europe, and of course this positioning is particularly interesting because we've seen such volatility across European assets this month. We've had this hawk Is pivot from the ECB, the repricing in the bond markets, and

of course the ongoing tensions over Ukraine. But in Bloomberg's February poll of seventeen strategists from both by and south Side, only two lower day year end targets for the stock six D. Right now we trade around full six five points on the stock six D. The average price target is five A seven. Say they do see around an eight percent, just eight percent upside Live in London, Max Ramsey,

bree back daybreak Max, thank you. The prospect of higher interest rates has also been a major contributor to the recent markets sell off, and St. Louis FED President Jim Bullard said the Federal Reserve may need to raise rates above two percent decurb prices. If you wanted to put downward pressure inflation, you'd actually have to get to neutral and go beyond neutral, And I think that's a major

concern of mine. We're not really in a position to do that right now, but we have to get in a position to do that at some point in case inflation doesn't moderate, Say Louis FED President Jim Bullard made the comments in an event hosted by Columbia University and s J S G H Macro Advisors. Cleveland FED President Lauretta Master also supports tightening policy at a faster pace to find inflation. She says she supports a rate hike next month and expects inflation to remain above two percent

both this year and next well. Coming up on the economic front, Nathan we get data on the housing market today. Economists predict existing home sales probably dropped in January for the second month in a row. Bloomberg's Viney deal Judai says more the prior reports at existing home sales dropped in December for the first time since August. The outlook could be described as tenuous. Inventories remain below and mortgage rates are creeping higher back to pre pandemic levels. Prices

very high prices are also having an impact. I mean January, the COVID nineteen armorcrant variant cast the pale on Daily Life que Judas Bloomberg day Break, Whitehouse is worn in COVID cash is drying up. It's telling Congress the US doesn't have enough money on hand to deal with future coronavirus variants and needs more funds to stockpile vaccines and develop new strategies. The Department of Health and Human Services is asking for thirty billion dollars to prepare for the

next waves of the virus. Meantime, Nathan, the i r S is adding a second so called search team who expand its capacity to process US tax returns. That comes after criticism from members of Congress who say taxpayers are waiting for months to get their refunds. The i r S will also outsource some functions to help finalize returns more quickly and straight ahead, your latest local headlines, plus the check of sports. This is Bloomberg. It sounds six,

so seven on Wall Street. Let's bring in John Tucker for a look at what's going on in New York and around the world. John Nathan, Good morning. Former President Donald Trump has been ordered to testify in the investigation being conducted by the New York Attorney General. The story this morning from Bloomberg's Jeff Bellinger. A New York charge rejected a request by Trump, Donald Trump Junior, and Ivanka Trump that he blocked Attorney General Letitia James subpoenas for

their depositions. He ordered the three to appear for depositions within twenty one days, and a contentious hearing, Lawyers for the Trump's accused James of improperly trying to gather criminal evidence under the guys of conducting a civil investigation that would typically culminate in a lawsuit rather than an indictment, but the judge said their argument completely misses the mark. Trump said in a statement, I can't get a fair hearing in New York because of the hatred of me

by judges and the judiciary. Jeff Mullinger Cloomberg name break. Former Governor Cuomo was sued over sensual harassment by a state trooper who was part of his protective detail. Cuomo was forced to resign last year after the state Attorney general issued a lengthy report alleging several instances of harassment of state workers by Cuomo. New York governor County Hogo accepting the state Democratic Party's nomination as their candidate in

the governor's race. The decision marked a rapid rise for the sixty three old Buffalo native, who was a relative unknown when she took office in August, following former Governor Andrew Cuomo's resignation over sex harassment allegations. New York City firefighters dying from what's being described as a sudden medical episode at his firehouse a day after battling a house fire in Queens. Mayor Eric Adams the entire city mourns for the loss of this firefighter, young man that dreamed

to be a firefighter all his life. Thirty three old Jesse Gerhardt worked at Latter Company one thirty four in far Rockaway House. Republican leader Kevin McCarthy has taken the unusual step of endorsing the primary opponent of incumbent Republican representative Liz Cheney. It's in dedication of the death of the splitting in the party over former President Donald Trump. McCarthy joined Trump and backing attorney Harriet Hagman in Wyoming's

August Republican primary against Cheney. Cheney has criticized Trump over his role in stoking the mob that stormed the US capital last year. Global News twenty four hours a day on air. Anna blueber quicktike, We're powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm John Tucker. This is Bloomberg and that brings us to six o nine on Wall Street,

this time for the Bloomberg Sports Update. Good Morning John Stown Show Right in Morning John Nowther shootout at the Garden, like the one on Tuesday, not decided with the normal three rounds, pick nine rounds for the Rangers to beat Boston. The one with Detroit decided in round number six. Pet brings it up across the line. On Christ moves in. He shoots end up Pets save by Thomas Chris, and the rud Wings win this one in a shootout. Chris with the big save on Heatle and the final score.

Tonight in New York the Red Weeks three and the New York Rangers too. That's Red Rings Radio with the call. Rangers got goals in Yandre Miller and make his advantage at who also scored in the shootout, but he's the only one who did. Islanders are the three goal third period in the three game losing. They beat the Bruins ford to one at Barkley's no fourth quarter heroics this time for the Nets like they had Wednesday against the next Washington beat Brooklyn one seventeen to one oh three.

The NBA Navigans All Star weekend in Cleveland, and the highlight figures to be the introduction Sunday Night of the top seventy five players in this the NBA seventy five season. The Knicks, represented by the likes of Patrick Ewe and Willis Reid, Walt Frazier, Earl Monroe, and the late David

Devocher College Who's Wagner keeps winning. Now eighteen and three after a win over Sacred Hard, Rutgers has won four straight all against top twenty five teams and looking to make it five Sunday at fifth rank Per new Scarlet Knights may not have top scorer Ron Harper Jr. Is at a hand injury. Baseball was to start exhibition games next weekend. Obviously that's not gonna happen. With the lockout now seventy eight days long. MLB says they need an agreement by the end of February if they are able

to start the season on top. John Dash Howard, Bloomberg Sports Jump. All right, thanks John, After yesterday's painful sell all futures this morning indicate a higher open on Wall Street. Now futures up one hundred and twenty three points, right now, SMP futures they're up twenty two and the NASA Emini futures they are upright now one hundred three points. You're listening to Bloomberg Daybreak and day Break being drawn to you by Audie. Don't let someone else drive off in

the Audi model you've always wanted. Visit a try and State autie dealer today to get behind the wheel of yours. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland, at Bloomberg Quick Tape. This is a Bloomberg Business lash and I'm parent. Moscow stocks are rising as planned talks between Russia and the US over Ukraine alleviate some investor gloom about geopolitical risks.

We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, S and P futures are up twenty three points down. Futures have a hundred thirty five Nowaday futures have one dred five that docks in Germany is litill change ten. Your treasury down three thirties seconds. You have one boy nine seven percent, they yelled on the two year one point four eight percent. Ninemex s crude oil is down two and a half percent, down

two dollars twenty nine cents at eighty nine dollars. Forty seven cents of aarrold comes Gold is down seven ten percent or thirteen dollars at eighteen eighty nine. Announced the euro one point one three five seven against the dollar. British found one point three six one five. The ends at one fifteen point to chew Bitcoin this morning, moving lower at forty thousand, four hundred dollars. We are watching

earnings this morning. We heard from Deer, the largest maker of agricultural machinery raising its fiscal year outlook as booming crop earnings continue to boost farmers appetites for new tractors. And we're also watching for reports on existing home sales at a ten O'clockwell Street time, along with leading indicators. That's a Bloomberg business flash. Now here's John Tucker with more on what's going on around the world. Jump Good Morning Care and President Biden warning the probability of an

invasion of Ukraine is still very high. The runching Foreign Ministers Sergey Landloff, agreed to meet with Secretary State Anthony Blinkeln for talks in Europe next week. A judge who rule that former President Donald Trump was answered questions under oath in New York States civil investigation into his business practices. The House Republican leader Kevin McCarthy took the unusual stamp of endorsing the primary opponent of incumbent Republican Representative Liz Cheney.

And a massive cargo ship carrying thousands of new cars has caught fire in the middle of the Atlantic Ocean sports the Rangers fall to the Red Wings that ended in a shootout. The Islanders beat the Bruins and the Capital's top the flyers in the NBA, the Wizards, beat the Nets. Global news twenty four hours a day on Aeron, on Bloomberg, Quicktake, Power bott more than hundred journalists and analysts. It more than one and twenty countries. I'm John Tucker

and this is Bloomberg. Nathan, John. Thank you. We're coming up to six twenty on Wall Street Life from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and I'm Nathan Hagar. All week it has been about the standoff with Russia over concerns Moscow could invade Ukraine. The Kremlin denies any plans to do so. The latest development is a planned meeting between the US and Russia next week in hopes of avoiding conflict. Let's get more on the

situation now from the perspective of Ukraine. Axanda Markarova is the ambassador of Ukraine to the United States, and she sat down for an interview with Bloomberg's and Marie Hordern late yesterday. Let's listen in to that conversation. Now. President Putin lately has mentioned the Minsk A Chords a number of times. Now Kevin Moscow interpret them very differently. But is the Ukrainian government under any pressure behind the scenes to getting back to the table when it comes to

the Men's Accords and implementing them at some level. Well, If anything, the Ukrainian government is pushing everyone to work strongly together with us in order to find a diplomatic pass So President Zelinski numerous times said that he's ready for any meetings. He's ready to meet his president putting he's ready to meet in any form at And we have been asking for all the formats, Normandy and others to be as active as possible. Would you be ground

on MENSK. We also requested that you have to participate more, to to participate in any formats, to be more active, and we see it alrighty if you if you go back to the beginning of last year, there were discussions, you know, and we always said that we would want an active participation of the United States in any type of formats to to resolve the situation and return peace to Ukraine. So we're very happy that you ask is very active on a on a diplomatic scene as one

of the leaders of this process. But on the Minska Chords, I mean again, regardless of uh what you know, we Ukrainians are very flexible in how we can reach the peace if it doesn't cross the redlines. So there are some strategic things for us. We will never give up on our sovereignty, we will never give up on our territorial integrity, we will never give up on our EU

Atlantic aspirations. But how to bring peace and how to stop the ceasefire we are ready to discuss because for us, again we are prepared to defend our country, but unlike Mr putin the value each of our soldiers and each of our civilians, so we would like to averd the war. Your counterpart in the United Kingdom use that word flexible recently in an interview, but he said flexibility when it comes to maybe joining NATO or not. Then that was

walked back. Do you think that potentially could be an agreement of Ukraine potentially being more flexible on its ambitions to join NATA. No, and our president and our Minister of Foreign Affairs have been very clear that our aspirations to join NATAL is not only a firm belief of our political leaders, it's also what the majority of Ukrainians want,

and it's also written in our constitution. What do you think at this moment could be the diplomatic path that could potentially save face for President Puttin on a global stage that Ukraine would be willing to accept. Look, I cannot speculate what it will take for President Puttin to stop the aggression, but we have to be very clear here. Ukraine is a peaceful country. We never attacked anyone who never attacked Russia. We do not plan any offensives. It's

Russia who's the aggressor here. It's them who attacked us into thousand fra Kin. It's them who amassed troops around the Boder, And you know, challenge not only the situation in Ukraine. You know, let's call a spade a spade here. Russia has created a security crisis in Europe. It's not only problem for Ukraine. So you know, whatever it takes.

I think in Ukraine has shown numerous times that despite the fact that it was us who was attacked here, we are ready to engage in diplomatic discussions and we are ready to find the solution. Now again, having said that, without discussing I was sovereignty, our thorough integrity, your red line, our Atlantes, and that was Ukraine's ambassador to the United States, Oxana Makarova, speaking with Bloomberg's Emrie Hordern about the current

standoff with Russia. And you can catch more of that conversation online at Bloomberg dot com on helps this morning for future talks next week between a Secretary of State b Lincoln and Russian Foreign Minister Lavrov. Futures are moving higher. We have SMP futures up twenty two points, now, DAT futures up eight, NASTAC futures on the rise by a hundred one points. The tenure treasury is down three thirty seconds,

the yield one. We'll have much more on geopolitics hitting the markets, plus earnings from Roku and a dubious distinction for metap platforms as we check the five things you need to know to start your day just ahead on Bloomberg Daybreak. All right, thanks Nathan. You need to know we have a wind advisory a fact through ten o'clock this wearing showers ending early clearing the Sanfao windy temperature

of ball through much of the day today. You're listening to Bloomberg day Break, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C, Bloomberg one to Boston, Bloomberg one O six one does San Francisco, Bloomberg nine sixty to the country, Sirius XM to the one ninet and around the globe, the Bloomberg Business apt and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning.

I'm Nathan Hagger and I'm Karen Moscow. We're just about three hours away from the open of US trading. Time for the five things you need to notice start your day. Brought to you by I v k R Investment Advisers switched to interactive brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at ibk R dot com slash r i A first. Stocks are rising this morning despite ongoing geopolitical tensions.

Sentiment is getting a boost from word of plan talks between the US and Russia. Russian foreign Minister Sergei Lavrov has agreed to meet Secretary of St. Anthony B. Lincoln in Europe next week, we caught up with former UN Ambassador Thomas Pickering. I have that bad feeling in my gut and will have it until a week begin to see something that is more than declarations, which begins to

move us away from confrontation and towards a workout. Former UN Ambassador Thomas Pickering spoke at our Washington corresponded Joe Matthew on Bloomberg Sound on Catch the program weekdays at five pm Eastern on Bloomberg Radio. Well, it's not just geopolitical concerns. Care in the prospect of interest rate hikes to tame red hot inflation has also contributed to the recent sell off. St. Louis FED President Jim Bullard says bringing down inflation may require the Central Bank to do more.

He thinks officials may need to overshoot the neutral target interest rate, which he sees at around two percent. Investors have also been slamming stocks on earnings misses and Nathan In fact, Meta Platforms, the parent of Facebook, is tumbled out of the world's ten largest companies by market value that has been hammered by its worst monthly decline ever. And you want to talk about getting hammered, Karen shares of Roku this morning, or down nearly cent in early

trading thanks to an earnings miss. We get the details on that from Bloomberg's Lisa Mateo. The streaming video platform company reported fourth quarter revenue and issued a first quarter sales forecast that both fell short of analysts estimates. The company's chief financial officers said supply chain disruptions were a headwind for the company. Roku was one of the stay at home winners during the pandemic. It's stocking nearly one and fifty percent in twenty as Covid accelerated the shift

streaming video among consumers. Lisa Matteo, Bloomberg Daybreak, Lisa, thank you, And speaking of the pandemic, the White House is warning that COVID cash is drying up. It's telling Congress that the US does not have enough money on hand to deal with future coronavirus variants, to stockpile vaccines, or to develop new technologies. The Department of Health and Human Services is asking for thirty billion dollars to prepare for new waves of the virus. And that's the five things you

need to notice start your day. Brought to you by Interactive Brokers Straight ahead, your latest local headlines, plus a check of sports. And this is Bloomberg and it's six thirty three on Wall Street. John Tucker is here with a look at what's going on in New York and around the world. Good morning John, Good morning Nathan. To

plead the fifth or not? That's the question facing Donald Trump after a New York judge ordered the former president to testify in a long running States civil investigation into his business practices barring a successful appeal. Trumpet face of this is between answering Attorney General Leticia James questions or invoking his protection against selfiam termination. Trump has often equated

such silence with evidence of guilt. On a your state trooper who testified that former governor and her Cuomo sexually harassed her, is now suing him. She says Cuomo a top eight and state police violated her civil rights. The trooper's name was not disclosed in the lawsuit filed in Manhattan. The wealthy Long Island resort of East Hampton delaying the plan closing of its airport until my seventeenth. The story

from Bloomberg's Charlie Pellett. The Federal Aviation Administration warned of flaws in the New York town's efforts to reduce noise from air traffic. Last month, the town's board voted to shut down the airport at the end of February and reopen it as a more limited used facility on March fourth.

East Hampton was looking to cut down on air traffic that has grown in recent years as rideshare apps make helicopter and plane travel easier, but the FAA warned that if the town closed the airfield, it could take as many as two years to reopen. In New York. Charlie Pellett blue Bird day Break, Hillary Clinton bank in the spotlight, tearing into the GOP, mocking Donald Trump during his speech

at New York's Democratic Convention last night. They'll make it harder for people to vote, but easier for big corporations to bust unions. They'll let polluters trash our environment and let Donald Trump trash our democracy. At the convention, Governor Kathy Hoko accepted the state Democratic Party's nomination as their

candidate in the two governors race. Thousands of New Jersey households will soon be getting a notification that their residences have led service lines and will be replaced over the next decade. This comes under a state law as according to the Commissioner of the Department of Environmental Protection. Just how quickly the lines will be replaced still isn't clear, and a new poll shows climate change he is seen as a bigger threat than war by majority of people

living in some of the world's top economies. The poll was commissioned by the Munich Security Conference. It listened concerned over global warming, habits at destruction, and extreme weather has the top three risks named by twelve thousand people surveyed. Globally. Global News twenty four hours a day on air. Annam Bloomberg Quicktake. We're powered by more than twenty seven hunter journalists and analysts in more than one d twenty countries.

I'm John Tucker. This he is Bloomberg and that brings us to six thirty six Ball Street. And that's time for the Bloomberg Sports Sunday. Good morning, what's again the John Stasher? All right? Thanks? John? N BA has hit the All Star break the game Sunday that in Cleveland. Nick fans seemed to love Obie Topp and he'll be in tomorrow night Slam Dunk competition. The Nets hit the

break thirty one and twenty eight. They had a recent eleven game losings break and then one a couple of games, including the epic comeback against the Knicks last night, a COVID makeup the nets third game in four nights, they lost at Barkley's to Washington one seventeen to one oh three. Coach Steve Nash asked about the rest of the season.

We're excited, you know. We uh, we have twenty two games to kind of come together as a team with Kevin returning, Ben returning, um, you know, hopefully we got a good run of health where we can really build something in a short period of time and get to get a you know, a better seed and also more cohesion going into the playoffs. Nash reference Kevin durand he's been out the past month. Ben Simmons, the new acquisition, not known when he'll make his Nets debut. At the Garden,

Rangers and Red Wings went to a shootout. Rangers tie the game and I'm making a band of jet power play goal eight minutes left and that he scored on the Rangers first shootout of Tampa. The next five Rangers failed to score and in six rounds. Detroit won the game three to two. The x Islanders, on this price made thirty seven saves five more in the shootout. As for the Islanders, they beat the Bruins at the Ubs

Arena four to one. The two sides of the baseball lockout met and that meeting lasted all of fifteen minutes of things are not going well in trying to get a labor deal done. They're scheduled to meet again on Monday. At the Olympics, US lost to Canada and the bronze medal game for curling. US had won a surprising goal four years ago Eileen go Listen San Francisco, but competed for China Captain Big Run and freestyle skiing one our

third medal for second goal. John Statuellar, Bloomberg Sports. John, all right, thanks so launch John. It is now six thirty seven on Wall Street. This is Bloomberg Daybreak. Let's turn our attention to the Fed and the economy right now, joining us live with the Bloomberg intranton Broker Studios, Economic Scross Wonted Mike McKee, Mike, good morning to you. More

Fed officials are speaking. They're sounding very hawkish. Well, you also have to take into account who is the round up the usual suspects of all English teachers calling me um. We've heard from some of the more hawkish members like Jim Bullard at Esther George. We're going to hear from a couple of key speakers today. Charlie Evans, seen as

something of a moderate from Chicago. He's speaking, and John Williams, who is the New York Fed President, and people pay a lot of attention to what he says because by tradition the Fed New York Fed president does not descend it from votes with the chairman, So whatever he says will give you a pretty good idea of where j. Powell is. What are we expecting to hear that the Fed does feel that we've gone too far and inflation is too hot, and they are going to raise interest rates,

but they're still not sure how far how fast. We have pretty much come to a consensus on Wall Street in the last week that they're gonna do between five and seven rate increases this year. There are seven meetings left, and does the Fed think they need to go that far that fast? I suspect we're going to hear an

argument for being cautious and following the data. These guys have to make their forecast for inflation and growth, not knowing what's going to happen with the COVID uh pandemic, whether we're gonna have another variant, and not knowing what's gonna happen with Ukraine and Russia and what impact that might have on the economy. So I think they're gonna be more cautious than some people on Wall Street have

been expecting. A much of the difference is there between the on street expectations and what the FED speakers have been saying. I guess what I'm asking is, are we set up for some big surprises to the markets? I don't think we'll get big surprises. The Fed's gonna push back on the idea that they're locked into anything. Uh. If you ask any of these FED officials, are you're gonna do seven rading increases this year? They'll demur and say, we are going to watch what happens in the economy

before we decide. But they are in agreement with the market that rates have to go up. Big questions do they go up fifty basis points at the March meeting? And I don't think we get an answer to that, yet they'll want to wait until they see the next jobs and CPI figures in early March before their meeting. We're still buying assets, still stimulating. Does that matter or is it the rates that are the heavy lifters. It doesn't matter to the economy because the amount they're buying

is so small. But the symbolism has been a problem for the Fed, And of course their issue is always communication with the markets and with the American people, and the idea that they're still stimulating doesn't sit well with a lot of people who think we have an inflation problem. Bloomberg Economics corresponded Mike McKee. Mike, thanks for stopping mind

this morning. Appreciate it. Ahead of the cash open on Wall Street, dal futures of one six, Anson V futures up twenty two but ends DANK futures up ninety eight points. This is Bloomberg and the Bloomberg Weather wind advisory that runs through ten o'clock this morning. Showers ending early this morning will clearing the Santa Doon, windy temperatures going through

much of the day. They see is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com and the Bloomberg Business apt and at Bloomberg Quick Tape, He's a Bloomberg Business Flash and I'm Karen Moscow future is on the rise. This morning, we go to the First Word Breaking news desk for today's morning call. Here's Bill Maloney. Bill, good morning, and good morning, Karen. That's right. US teachers are in the green after yesterday's plunge,

with doubt futures currently up a hundred two points. S and B s gained eighteen Nastic futures rise by eighty four. The US ten year old at one point nine seven percent. Gold and oil are both down, Bitcoin is lowered by point seven percent, and Hong Kong fell one percent overnight. Note that the Hong Kong plans COVID mass testing for the whole city. Up of markets are trading mixed right now and back in the US on the economic front.

At ten o'clock, existing home sales after the bells night Roku report, it shares it down twenty five percent pre market, and regarding earnings this morning, dear raised its full year profit outlook. Indian News Selonis agreed to buy most of DuPont's materials are for eleven billion and wrapping things up.

J B hunt was raised to neutral over at JP Morgan Live from the first breaking news that's gone, Bill Maloney, Karen, all right, Bill, thank you and to hear live breaking news over your Bloomberg type squawk on your terminal ascue you a w K. That's a Bloomberg business flash. Now is John Tucker with more on what's going on around the world, John, and good morning, Karen. President Biden warning the probability of an invasion of Ukron's Ukraine still very high.

The Russian Foreign Minister Sergey laugh Roth has agreed to meet with Secretary State Anthony Blinkeln for talks in Europe next week. A Judge's World, Former President Donald Trump must answer questions under oath in New York States civil investigation into his business practices, and the House Republican leader Kevin McCarthy taking the unusual step of endorsing the primary opponent

of incumbent Republican Representative Liz Cheney. Sports Rangers fall to the Red Wings and a shootout, The Islanders beat the Bruins, the Capitals topping the Flyers, and in the NBA, the Wizards beat the Nets Global News twenty four hours a day on air, and I'm Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts. It more than one hundred twenty countries. I'm John Tucker. This is Bloomberg. The following commentary is from Bloomberg Opinion. New COVID tell

are needed as much as ever. I'm Lisa Jarvis, a columnist for Bloomberg Opinion. Even as omicron infections plummet, preparations must be made for whatever COVID nineteen throws it us next. A good way to do that is to develop new anti virals that can be used more easily than the two existing COVID pills. Visor's packs of it it and merk small niperevir were authorized last year with much fanfare,

but their use is complicated well. Nuperavir cary safety warnings that seem to outweigh its modest benefits, and packs of it is very effective but can interact with commonly used drugs. Several new anti virals are advancing in the clinic this year, including pills from Shian Nogi and Notto Pharmaceuticals, and no Artists. This week part is Bioscience is offered a glimpse at early data on its own pill. So far, it appears safe to give with other medicines, but might not shut

the virus down as effectively as packs with it. We'll see more data from PARTIS in March. Ideally, one of these efforts will yield a simpler, safer oral antivirals that could be easy and inexpensive to distribute widely. I'm Lisa Jarvist. For more opinion, please go to Bloomberg dot com, Slash Opinion or O P I N on the Bloomberg terminal. These has been Bloomberg Opinion and Bloomberg Opinion commentaries can be heard every weekday at this time, and terminal customers

can read more at O p I N go. It is six fifty on Wall Street. Returned to news and science and technology now with the Bloomberg n j I T STEM Report, brought to you by New Jersey Institute of Technology, ranked top fifty national public university by US News and World Report and a top fifty college for undergraduate entrepreneurship studies by the Princeton Review. Learn more at n j I T dot E DU now Here's just making news and science, technology, engineering, and math. The Biden

administration is warning that COVID cash is drying up. It's telling Congress that the US does not have enough money on hand to deal with future coronavirus variants, stockpile vaccines, or develop new technologies. The Department of Health and Human Services is asking for thirty billion dollars to prepare for new waves of the virus. In Hong Kong, the pandemic situation has shifted from over the top caution to outright chaos.

The COVID zero strategy kept the city largely free of the coronavirus for the past two years, but elaborate defenses have collapsed in the face of the omicron variant. Now, hospitals are overwhelmed, and if ozers say that shows Hong Kong was not prepared to tackle the outbreak. Google and Facebook parent Meta could be facing a data doomsday in the European Union. One of the region's top privacy watchdogs is preparing a decision that could paralyze transatlantic data flows

and risk billions in revenue for the two companies. It has to do with contract terms used by Meta, Google and others to legally transfer user data to the US for processing. And that's the Bloomberg n j I t STEM report, Nathan, another headache for the Meta mates potentially.

Thank you. Karen from the Bloomberg Interactive Brokers studios were coming up to six fifty two on Wall Street Time Now to check what's going on in d C. Some of the top stories in our nation's capital include the US and Russia planning to keep talking as the crisis over Ukraine continues, the Senate clearing a three week up gap to avoid a government shutdown tonight, and House Republican leader Kevin McCarthy endorsing Liz Cheney's primary opponent. Let's get

more on all these stories. Bloomberg Government reporter Emily Wilkins joins us live from the nation's capital. We've been watching the tensions surrounding Ukraine all week, Emily, Can you get us up to speed on the latest diplomacy. Sure. So, it's been announced that Secretary of St. Anthony B. Lincoln is going to be meeting with his Russian counterpart next week. We're also going to see Defense Secretary Lloyd Austin speaking

with his counterpart in Russia. And you have heard Biden continue to say that diplomacy is the way they want to go forward here. But they're also warning from warnings from the Pentagon of a potential false flag attack. That would be something where Russia would have perhaps a chemical weapons attack, either real or faked within Russia and use that as an excuse for invading Ukraine. That is something

we are now hearing Lincoln and of begin to warn of. Um, where are And I think a lot of this it just sort of depends how the next couple of days play out. Biden's still warning that there could be an invasion within the next few days, but of course there's that meeting between b Lincoln and his counterpart next week. A lot is up in the air right now. Um, this is occurring as members of Congress are now back

home in their districts. Uh, they could be called back to d C fairly quickly if they needed to do something. But a lot of this is kind of considering continuing that wait and see posture where Biden's both warning of an attack but also trying to keep diplomatic channels open. Yeah, so we'll be watching more of those diplomatic developments as they continue potentially into the weekend. And speaking of lawmakers

back home in their district. Emily, I guess government shutdowns averted for a little while, a little while until March eleventh, UM. But this really shouldn't be seen as as a big win. I mean, lawmakers are still using the funding ali cated under the Trump administration, which I guess it's great. It's great for Republicans, but for Democrats there's more new funding that they want to put in. They want to sort of change different revenues, uh, fun new things. I mean,

this is pretty common. This is why we get a new spending plan every year to address some of those changes that really need to be made, and currently they're not. UM. We do know that there are some top line numbers that have been agreed to that speaks well of getting some sort of longer term agreement in place by March

eleven UM. Also, the bill that was passed yesterday, we did see some additional funding for things that the Pentagon requested for defense, so that's included in their Biden just needs to sign this bill and then once again, this is going to be a thing while makers are out this week. They come back in March and it's going to be a rush to get government spending done. That puts other priorities like provisions within the Build Back Better

Bill on the back burner for well into March. At this point, I guess it's not an issue at least for President in State of the Union address coming in between now and when the next round of funding runs out. But in our last minute here emily very interesting development in the Republican Party with the leader of the party in the House endorsing a primary opponent to one of

his own members. Yeah, this is rare. Leadership usually stays out of primary races, and if they do get into it, it's to defend an incumbent, not to support someone who's running against them. But McCarthy said he was backing Harriet Hagman. She's a pro Trump candidate. Trump's already endorsed her. And

this really comes after Liz Cheney. You know, not only did she vote to impeach Donald Trump, not only did she agree to sit on this January six commission, but she's also been very outspoken for the Republican Party and their response to the election, as well as the January six attack on the Capitol. McCarthy has been under a lot of pressure from his further right members to address this in some way, shape or form, and by backing

his primary opponent, McCarthy's kind of signaling. Look, Um, I don't necessarily support Cheney anymore, but it's going to have to be the voters of Wyoming who make the final decision on whether she comes back to Congress. Thanks for this, Emily Hope. It's a RESTful holiday weekend for you. Bloomberg

Government reporter Emily Wilkins with us from Washington. You can read more about all these stories at Bloomberg dot com or on the Bloomberg terminal, and listen to Bloomberg Radio in the nation's capital Bloomberg one and one oh five point seven FM h D two. Karen, Thanks Nathan. It is six fifty six on Wall Street. This is Bloomberg Daybreak. February is Black History Month, and every day this month

we're celebrating significant moments in US black history. Now with your installment for February eighteenth, here's Bloomberg's for Needy Young. On this day in black history. In Germantown, Pennsylvania, Quakers hold the first formal protest against slavery. A petition was drafted on behalf of the German town meeting of the

religious Society Friends. In the document, the four men use the Bible's Golden rule to argue against such inhumane treatment of their fellow man, regardless of the color of their skin. And the golden rule, of course, is the principle of treating others as you would want to be treated. The petition argued that every human, regardless of their belief, color,

or ethnicity, has rights that should not be violated. Seeing the injustices of the slave trade, these men courageously took a stand against slavery based on their religious and moral beliefs. That's today in Black history. I'm gonna need a young Bloomberg radio right, Grinita, thank you, and futures this morning on the rise, SNP futures up fourteen points to now futures up sixty nine and NASDAG futures up seventy eight.

Bloomberg Surveillance Straight Ahead with Tom King, Jonathan Farrow, and Lisa of Ramowitz And for Nathan Hagar, I'm Karen Moscow and this is Bloomberg