Bloomberg Daybreak: February 28, 2022 - Hour 2 (Radio)

while the world is focused on Ukraine. Michael Blower. More ahead, I'm John stash Our and sports the Nixon Rangers, both Boss games with the Gardener shoutout win for the Islanders, a big East loss for St. John's. That's all straight ahead on Bloomberg day Break on Bloomberg eleven, TREEO, New York, Bloomberg nine one, Washington, d C, Bloomberg one O 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 And Good Morning. I'm Nathan Hagar and I'm Karen Moscow. Low Little stocks are tumbling and havens are rising. This morning, We're coming up to six o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg right now, futures are lower but off their loads of the morning. SNP futures are down fifty five points down, futures down three hundred sixty nine, and nasday futures down

one hundred seventy six. Ten year treasury up twelve thirty seconds. He had one point nine one percent, and they yield on the two year one point five zero percent. Nathan, Karen, we begin with the latest out of Eastern Europe. Officials from Ukraine are meeting with Russia now and Belarus is preparing to send troops into Ukraine. Amy Morris kicks off our global team coverage from our Bloomberg newsroom in Washington. Hours after Vladimir Putin pled his country's nuclear forces on

higher alert. Ukrainian officials planted negotiations near the border with Belarus, but the Washington Post is quoting an un aimed you as official that Belarus is preparing to send troops into Ukraine as soon as today to help Russia. Senator Mark Warner on the Senate Intelligence Committee tells NBCs meet the press,

Vladimir Putin may have miscalculated. And when you are an authoritarian leader and you have less and less inputs and you're only hearing from people that want to say to the boss, heye, you're right, I think that leads to misconpulation. I think that is what has happened in the case of his invasion in Ukraine. The US is now advising its citizens to consider leaving Russia immediately, with President Biden set to speak with allies on the crisis later today

in Washington. I may be Morris Bloomberg daybreak. All right, Amy, thank you now. More on that meeting between Russia and Ukraine, and Ukrainian leader of Vladimir Zelenski is questioning whether much may come of the talks. I'll say, frankly, like always, I don't believe that much in the result of this meeting. But let them try so that not a single citizen of Ukraine has any doubt left that I, as President used every chance to stop the war. You've a small one.

Ukrainian President Vladimir's Lenski is asking foreigners to join his forces in response to Latia, will allow citizens to voluntarily travel to Ukraine to fight Russia. The meantime, care in the United Nations Security Council has voted to hold a rare General Assembly meeting today over the crisis in Ukraine. Bloomberg's Ed Baxter has the story, this is an attempt

by the Nations to further isolate Russia. US Ambassador to the U n Lynda Thomas Greenfield says the urgent response came as Vladimir Putin put his nuclear program on high alert, even though he is invading a country with no nuclear weapons and is under no threat from NATO, a defensive alliance that will not fight in Ukraine. The only vote against holding the assembly was Russia, but it does not count as a veto because it's considered a procedural meeting.

In San Francisco, I'm at Baxter Bloomberg Daybreak. All right, and thank you well. Western Nations have a great to unleash new sanctions to further isolated Russia's economy, and Bloomberg's down Tuck continues our Global team coverage live in New York, John Karen. Some Russian banks will be excluded from the Swift messaging system, which is used to conduct trillions of dollars worth of transactions. The European Commission President or Sela Underland,

made the announcement over the weekend. Cutting banks off will stop them from conducting most of their financial transactions worldwide and effectively block Russian exports and inputs. The decision to cut off banks from Swift marks a rapid escalation for the US and its allies, who has said such a move was a nuclear option. In Russia's central Bank will now also be prevented from deploying its international reserves. The decision to hit the central bank is a first for

an economy the size of Russia's. It could lead to massive bank runs and shake Russia's financial system to the core. Live in New York, I'm John Sucker, Bloomberg Daybreak. All right, John, Thanks, and we are seeing the conflict in Ukraine have a major impact on equities and the Russian ruble. This morning. Bloomberg's Max Ramsey continues our global team coverage line from London. Good morning, Max, Good morning Nathan and Karen. Yes, these sanctions bringing a big risk off move and a lot

more volatility. We are off session lows, but still to the downside across European stocks before one point three percent on the stock six hundred, the foot See one hundred down one percent, and the docks in Germany leads losses, down two point two percent. Russia's stock market has not opened today, but in the assets that are trading real paralysis as sanctions hit the country's financial system. The ruble

hit an all time low against the dollar earlier. Right now trading at around a one one hundred to the dollar. It started the year at seventy five. We also track the fallout across the energy space. BP shares down five point three percent in London trading today, they announced they would exit their steak in Russian state or state owned oil producer Rosneft. Live in London, Max Ramsey bloom Bag daybreak right, Max, thank you well. Oil is soaring as

energy markets are thrown into a state of disarray. Checking prices right now now, I'm ex scrude oil is at four point two per cent, they said five cents of barrel and brent is that more than four percent as well at one ninety seven cents. Bloomber's Rerneda Young joins US live with more. Good Morning Nia, Good morning Karen. Brent Crew jumped more than seven percent overnight before pulling back to trade around one and three dollars of barrel.

The oil supply is already struggling to meet demand from rebounding economies, and any disruptions from Russia, which is the world's number three producer, could exacerbate conditions. Meantime, China and other buyers have paused purchases of Russia's flagship oil Grade, and some Asian customers are frantically trying to secure more Middle Eastern crude. Live in New York. I'm gonna need a young bloom bark day break, all right, we need

a thanks. There's even more fallout from the Russian invasion. The Bank of Russia more than doubled its key interest rate overnight to the highest in almost two decades. The rate will increase from nine and a half to and back. Here in the US, Nathan Fed Chair J. Powell must

strike a delicate balance before Congress this week. Pawell deliver semi annual testimony on Wednesday, and unlikely in horse recent signals from his colleagues at the Federal race interest rates in March at the same time, Russia's invasion has injected a dose of uncertainty again. Futures are lower. SMP futures down fifty six points down, futures down three hundred sixty nine, Nasdack futures down one hundred eighty two. Straight ahead, your

latest local headlines, plus a check of sports. This is Bloomberg. It's tring. It's six oh seven on Wall Street, twenty seven degrees in Central Park and the Sunrise Highways closed both ways in Mary because of a crash. It's at Landown Avenue. Michael Bars here with more on what's going on in New York and around the world. Michael, thank

you very much, Nathan. New York's COVID nineteen restrictions in the city and around the state will be scaled back in the coming days, ending into our school mask mandates. Governor Cathy Ocle cited a recent CDC guidance that classified New York as low risk for COVID infection. There are some states, some counties in the standard where they have a higher rate of transmission. We will allow them the

flexibility to determine what's best for their county. We would encourage them to take a look at this and follow the CDC, but this will no longer be a mandate. Governor Huncle also says New York will also cut back requirements to show proof of vaccination in city restaurants, gyms, and other venues. Some governors are banning the sale of Russian vodka in response to the invasion of Ukraine. It comes as New York is among states pledging to welcome

Ukrainian refugees. Because we have the Statue of Liberty in our harbor. This is a point of pride for us to welcome all of them. Governor Hocal signed and executive order that will result in a review of New York's business ties, purchases, and investments possibly connected to Russian entities. North Korea says it tested cameras to be installed on a spy satellite. Today's announcement comes a day after North

Korea's neighbors detected a ballistic missile launch. The U N and others view a satellite launch by North Korea as a cover for tests of missile technology. President Joe Biden's approval rating fell to a record low. A New Washington Post ABC News poll shows only thirty seven percent approve of the job he's doing. In fifty five percent say

that they disapprove. Ahead of his first State of the Union address tomorrow, Judge Katangi Brown Jackson will start paying courtesy visits to U. S. Senators this week ahead of her confirmation hearing. If approved, she would be the first black woman seated on the U. S. Supreme Court. Senate Majority Leader Chuck Schumer of New York reacted to President Biden Supreme Court nominee, she is just such an outstanding nominee.

It's amazed me that no one in her past who has worked with her, both when she was on the private side and then as a judge, has anything bad to say about or whether the Democrat, Republican, liberal or conservative. Senator. Schumer also says an additional six point four billion dollars an emergency aid for Ukraine will be added into an

upcoming Senate budget bill. Global News twenty four hours a day on air, end on Bloomberg Quicktake, powered by more than twenty seven under journalist and analyst more than a hundred twenty countries. Michael Barr, this is Bloomberg. Thank you my call. Come up to six ten on Wall Street time for the Bloomberg Sports Update with John Stashi all Right Ethan seven days in a row, the two sides

of the baseball lockout have met. The one yesterday lasted six hours, but after each one story is always the same. No real progress on the key economic hitches. They'll be back for more today, but according to MLB, if they don't emerge today with a lock out, any labor deal this season will not start on time and will not be a hundred and sixty two games at the Garden next beaten by Philadelphia one five, one on one. Joe l. M Be scored thirty seven points. He went to the

free throw line twenty seven times. Two Knick centers fouled out trying to defend him, and Be made twenty three of those fell shots. And the new six are James Harden, who engineered that trade out of Brooklyn. Score twenty nine at a triple double. We're feeling good with Philly. This is my second name month. Uh, but just my body feel great and then it feels great. How to choke his way honesty and a really really long time. So it's just my hop my finnigins in the rim extra stuff. Um,

this was really great Nick's not doing so hot. They've lost fifteen or the last eighteen and the worst of the NBA over that time. Lakers not much better, lost at home to New Orleans by twenty eight. Dallas came from nineteen down in the second half to win at Golden State. Rangers were also at the Garden. Quiet night for the Blue Shirts. They lost to Vancouver five to two.

The Islanders afford nothing win at Anaheim. Bad loss for St. John's with the Big East Tournament coming next week to Red Storm fell at the Fall ninety four Javon Freeman Liberty score thirty nine for the Blue Demons. Manhattan lost the Fairfield. I wanna beat Ryder. The Gales have dominated the MAC, but they'll need to win the upcoming tournament to gain entry to the n C Double. As in Austrian Steps, Straka came from five shots down to win

the Hunda Gulf in Palm Beach. John Stash at Bloomberg Sports, thank you, john SMP futures down down fifty three points down, futures down three to fifty three. Nanstack futures lower by a hundred seventy four points. Oil surging this morning. Nimex screwed up four and a half percent. The latest on Ukraine. Next, with Bloomberg's rons Athosen, we'll look at the oil market

as well with Stephen Schork of the Short Group. This is Bloomberg Bloomberg eleven three oh weather sunny, breezy, mid thirties today, partly sunny, mid forties tomorrow him your fifty. Mostly sunny by Wednesday. Currently twenties seven degrees in Central Park. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com. The Bloomberg Business at and at Bloomberg Quicktape is a Bloomberg business lash and I'm fair in Moscow.

This update brought to you by Interactive Brokers trade crypto for less coin with commissions as twelve to eighteen basis points and no hidden spreads their mark ups. Learn more at ibkr dot com. Slash crypto equities are following sovereign

bonds rallying. Commodities are surging a bit heightened uncertainty after Western nations escalated sanctions on Russia for the invasion of Ukraine, and we checked the markets every fifteen minutes throughout the training day on bloomberg S and p Future is down a sixty point, so they're well off their lows of the morning, down one point four percent right now. Now Future is down four hundred eight and NASDACK futures down one ninety five. The decks in Germany is down to

and a quarter percent. The ten year treasury of fourteen thirty seconds yield one point nine one percent. They yield on the two year one point five percent. Nimex crude oil is up four and a half percent of four dollars eleven cents at ninety five dollars seventy cents a barrel. Comes gold up one point one percent of twenty one dollar sixty cents at nineteen o nine twenty announced the Euro one point one to one four against the dollar, British pound one point three four and the ends at

one fifteen point five six. And checking Bitcoin this morning higher by about two point four percent. It's at thirty eight thousand, three hundred thirty dollars. That's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, thank you very much. Karen. Right now Ukraine is all ding pea stalks, with Moscow near

the Belarus border. It comes as President Vladimir Putin dramatically escalated East West tensions by ordering Russian nuclear forces on high alert in Hong Kong. They are currently grapping with the latest of the COVID mandate. Hong Kong reported a record high thirty four thousand, four hundred sixty six infections today, as deaths continue to climb. In the NBA, the Nick Celtics and Warriors lost. In the NHL, the Islanders won,

the Rangers lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven journalists, analysts and more than a hundred twenty countries. I'm Michael Bar. This is Bloomberg. Nathan Okay, Michael, thank you. At six nineteen on Wall Street Line from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and Bloomberg's executive editor for International Relations, Rosalind Matheson joins us as we

continue following developments in the war in Ukraine. Ros good morning, Good to have you with us. We just heard from Michael Barr that talks have begun on the Belarusian border between Ukrainian and Russian delegations. At the same time, we're hearing about continued fierce fighting in some of Ukraine's largest northern cities. What's the latest, Well, that's right, those talks which we're supposed to start on Sunday have dragged on a just now begun in a border area near Bielarus.

They're at a deputy minister and a ministerial level, which is relatively low ball concerning they're supposed to be discussing terms here for some sort of peace. What they're probably going to talk about is the definition of what it would mean for Ukraine to be in quote marks neutral in all of this. And when it comes to that question, there's a huge gulf between Russia and Ukraine or what

Ukrainian neutrality would look like. So really these talks are going to be pushing uphill from the very beginning to find some sort of progress at all, and expectations have to be very limited as they sit down to start their conversation. Certainly least it allows the Russian president to say, well, hang on, I am trying to talks here with Ukraine UM and trying to show some sort of negotiation. But the likelihood of some sort of progress from this talks

has to be extremely low. Now when you talk about the idea of Ukrainian neutrality, we've heard from the President of Ukraine, Voladimir'szlinsky, calling for fast track admission into the European Union. What could the potential response from Europe be to that. What's the likelihood that we see more diplomatic support for Ukraine. Well, that's right, and if anything, that just shows Ukraine increasingly wanting to move further towards Europe and certainly not to be what you would think of

as neutral. Um And with those comments this morning, so Ukraine has asked for that several times. It's interesting they've asked for it again today. Of course, getting into the EU as a very long and arduous process. Croatia, which was the last to join it, took them ten years to get through all the steps to do so. But they might be able to take a very preliminary step, which in itself would be highly significant, even though full

EU membership would be some time away. But it's certainly interesting timing that the Ukrainian president has raised that again today, and at the same time, of course, as we heard from Michael barn the news there Russia's president Vladimir Putin put his nuclear force on heightened alert over the weekend, a eye opening step. To be sure, how is that being received in Europe? How seriously are they taking the prospect of further escalation into incredibly dire weaponry. Well, certainly

that's the question. I mean, he put his nuclear forces on higher alert, which doesn't suggest, of course, there any kind of nuclear action is actually imminent. What it does do, though, is again sort of throw that question into the broader security architecture for Europe. So you've got a continent that's grappling within it with a conflict right on its borders,

especially out in the east. You've got NATO having moved a lot of forces and equipment there to send the message to Vladimir Pusian that you may set foot in Ukraine, but you won't step step further into Europe, and if you do, you'll be in direct confrontation with NATO forces.

But the whole batch op to this has been efforts over years to sort of towards nuclear non proliferation in the region, to not have those weapons on the table, and certainly, just by even raising the alert, the Russian president sang I'm putting it potentially back on the table, and that's got to be causing significant unease in European capitals and beyond. And we're certainly seeing the unease and markets play out this morning with the rubles sinking and

the flight to safety. What's the risk to the European economy of further sanctions on Russia when we're starting to see this fallout from the Russian Central Bank being sanctioned and the private banks being kicked out of the Swift financial system, Well, certainly we want to wait and see exactly which banks are going to be kicked out of Swift by the US and others, and that will give us a broader idea again of how what's bread the

fallout might be on the European economies, in particularly because they're the ones that have the most exposure to Russia, lesser of course countries like the US. But we also want to see how it affects, for example, the chip supply chain, because a lot of chips go to Russia from Asia, not just China, but also other countries there

and if that gets cut off, particularly from Taiwan and Korea. UM, you can see a flow and effect of course, on the chip supply chain um let alone, the energy issue, which is again the big question of Europe's reliance on energy supplies. Would Vladimir Putin at some point decide just

to turn those supplies off. That doesn't seem to have happened yet, of course, but it's one of those dangling questions that must be in the minds of European official So there will be reverberations on the European economy either way. And of course we're coming out of a pandemic that's caused a huge amount of damage on the economy globally, so we need to see exactly how that plays out for individual sectors. Bloomberg's Rosalan Mathieson, our executive editor for

Interinet Eastern Relations. As always, thanks for keeping us up to speed on what's happening uh in the crisis in Ukraine. As we continue to watch the fallout in markets, we are seeing another session where crude oil prices are surging. Brent is higher by four point nine percent. Just shy of a hundred three dollars of barrel. West Texas Intermediate also your broker's global analysts and helps you find a global investment opportunities to diversify your portfolio and discover undervalued

companies that may have greater growth potential. Try ib K our Global Analysts today at ibkr dot com slash g A we've become with the latest developments in Eastern Europe, Interfacts is reporting that talks have started between Russia and Ukraine. President Vladimir's Lensky questions whether much will come of it, but he feels bound to make an attempt if it means a chance at peace. Meantime, Western nations have agreed to impose more sanctions him in isolating Russia's economy. Penalties

have yet to include the energy industry. And here's the White House spokesperson Gen Saki, and ourgo sanctions are certainly on the table. We have not taken those off, but we also want to do that and make sure we're

minimizing the impact on the global marketplace. White House spokesperson Jen Saki made the comments on ABC's This Week or and Sundays on Bloomberg rightioll Karen, Fears of an energy crisis do have oil surging This morning checking the latest prices, nime X crews up four point six percent of four dollars nineteen cents at seventy seven cents of barrel. Brent, the international benchmark is hired by four point nine hundred two dollars sixty eight cents, and Bloomberg's Ranita Young joins

us live with more. Good morning, Granita, Good morning, Nathan. Brent crew dumped more than seven percent overnight before pulling back to trade close to a hundred and three dollars of barrel. The oil supply was already struggling to meet demand from rebounding economies, and any disruptions from Russia, which

is the world's number three producer, could exacerbate conditions. Meantime, China and other buyers have paused purchases of Russia's flagship oil Grade, and some Asian customers are frantically trying to secure more Middle Eastern crude. Live in New York, I'm rened a Young Bloomberg Daybreak, I rened to thank you. Oil is spiking, equities are selling off, and sovereign bonds are rallying. As in Key futures which were down almost three percent earlier this morning, are now down about one

and a half percent. They yield on the ten year Treasury is at one point nine one, and all these moves a karener tied to efforts this weekend to isolate Moscow's financial system. Let's get the latest on that live from Bloomberg's John Tucker, John Nathan fresh sanctions seek to prevent Runch's Central Bank from using foreign reserves to blunt penalties. The added sanctions also exclude some Russian lenders from the Swift messaging system that underpins trillions of dollars worth of transactions.

As a result of these moves, doubts now growing about the Bank of Russia's ability to backstop the country's financial system. That has the ruble essentially turning to rubble. This morning, it now takes one ruble to buy one dollar Live in New York on John Tucker Bloomberg Daybreak, Right, John, thank you, and as the five things you need to notice start your day. Brought to you by Interactive Brokers Again,

futures are lower. SNP futures down sixty three points and DOWN futures down four D thirty five and AS day futures down two hundred. The decks in Germany's down two point four percent. Ten Your treasury of fourteen thirty seconds he had one point nine one percent and they yield on the two year one point five zero percent and NIMEX screwed oil is up four and a half percent. Straight to had your latest local headlines plus a check of sports and this is Bloomberg. Thanks Karen. Six three

on Wall Street, twenty seven degrees in Central Park. A disabled vehicle on the local lanes heading to the GW Bridge. Details coming up in traffic. First Michael Barr with more on what's going on in New York and around the world. Michael, good morning, Thank you very much, Nathan. It is a new coronavirus mandate milestone for New York. State. Governor Kathy huckle is lifting mask requirements and all of the state's public schools starting Wednesday, giving parents and students the option.

Individual parents have their own knowledge of their children. They know their own children's health, they know their tolerance for the mass, they know whether for them if they've got an underlying health condition. She says. The move follows new CDC guidelines. Governor Hokell also condemned any bullying or harassment against those who chose to keep their mask on. Governor Hokell also says New York is among states pledging to

welcome Ukrainian refugees. Either are fellow brothers and sisters, We worship with them, we go to restaurants, then we celebrate their cultural fest with are an important part of the fabric of New York States, so an attack on their country is truly an attack on all of US. Holk Will also signed an executive order that will result in a review of New York's business ties, purchases, and investments

possibly connected to Russian entities. North Korea follow up January's record barrage of missile test with the firing of a suspected midrange ballistic missile, ram ing up tensions as global attention is focused on Ukraine. Meanwhile, Pyong Yang says it tested cameras to be installed on the Spy satellite. A Texas man charged with storming the US Capitol with a holstered handgun on his waist is the first January six dependent to go on trial. Jury selection is scheduled to

start today of the case against Guy Wesley Reef. Former President Donald Trump, who teased over the weekend he could run again in was the clear choice in a presidential straw poll of attendees of the Conservative Political Action Conference. Meanwhile, Trump's attorney general says, move on from the former president.

That's the advice for Republicans from William Barne his new book called One Damn Thing after Another, bar writes that the former president has shown he has neither the temperament or persuasive powers to provide the kind of positive leadership that is needed. The Screen Actors Guild Awards were handed

out last night. Hamilton's star Leslie Olam Jr. Kicked off the show with this message, While tonight is a celebration, we are all at the same time holding a place in our hearts for the people of Ukraine and sending our thoughts, prayers and hopes for impending peace in an upset. The Death Family drama Coda has one top honors at the SAgs that also saw wins for the leads of Squid Game, the cast of Ted Lasso and Will Smith.

Global News twenty four hours a day on air and on Bloomberg Quick Take power by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Barr, this is Bloomberg, Nathan. Thank you. Michael six thirty six on Wall Street. Time for the Bloomberg Sports Update. Here's John Steshown, Thanks Davan double letter at the Garden to New York losses. Up first the Knicks, who were over five hundred and mid January three and fifteen.

Since that's the worst of any NBA team Philadelphia one one on nine. Knicks kept fouling Joe l m but he took twenty seven free throws, made twenty three, scored thirty seven. The Knicks coach Tom Thibodeau asked, why all the foul they're generating speed in Nur's contact. There's there's gonna be, you know, and it's you know, some some games it's marginal contact. It's not about some other games

that it is. And so that's where you have to adjust, and you know, you have to be in early and get out early, and you have to pull your hands back and you've got to stay down on shop takes and and that sort of thing. He's are in the second game with the six or twenty nine points and triple double. Evan Fort r J. Barrett both four, but Julius Randall in two games with the All Star Break has shot six of twenty eight and now the Nekes go on the road for a seven game trip, all

but one against teams currently in the playoffs. After the Hoops, they put down the ice for the Rangers and Knnuch blue Shirts filled four nothing third period goes by alexeiy La Fronie and Ryan Strong made a Little Interest team in Vancouver one five to two Islanders for nothing to win an Annah Hunt fiftie out of the year for Ilius Soroki st John's lost at the poll four and Yukon beat Georgetown. Theahoyas are o N seventeen in the Big East. Patrick Ewing, their greatest player ever, says he's

hopeful he gets the key his coaching job. Baseball walkout continues. If no labor deal by today, the season will be short and the Mets of ore twenty five year old Elizabeth ben to be the director of Major League Operations. She had been working in the MLB office. John's cash

that were Bloomberg Sports Maybe okay, John, thank you. At six thirty seven on Wall Street, time to take a look at stocks and some of the names moving in the pre market with Bloomberg Radio and TV Markets correspondent Creaty gooped on another morning where geo politics are front end center, Crety, what are you seeing this morning? Yeah,

geo politics friends center. If find quickly break some deal news though First t D the Canadian Bank Toronto's dominion to buy First Horizon the Tiger here is a f F f H and excuse me h for about twenty five dollars a share. F h N shares are surging in the pre market up thirty. Looks like off that deal news. But Nathan, to your point, the real news

here is going to be those geopolitical tensions. Let's start with the geopolitical hedges in particular, as we know this Russia and Ukrainian war well is creating a big bid in defense ends companies. Over the weekend all off shoals the German Chancellor saying that they're going to be ramping up their defense, committing about two percent of their GDP to their defense budget in four spending a lot of

money on ramping that up. And so you do see some of the major American defense export companies, Locky Martin, for example, catching a bed l M t s your taker up four point four percent. A similar story with raytheon r t X is your taker they're up four and a half percent. You're also seeing a bid into energy stocks, American energy stocks that have a lot more domestic exposure. Occidental is the one that comes to mind. Nathan o x Y is your taker, up one percent.

They got to think though, that companies with exposure to Russia are going to be hitting getting hit really hard this morning, really hard. And a great example when you're speaking of oil companies that not all oil companies are created equal. BP is a great example of that. It is looking to offload it's twenty percent state in the state oil giant rosnashed down seven point three percent in its a d r S trading in the pre market. But it's not just that. You have a lot of

American companies to have exposure there as well. Coca Cola, for example, about uh twenty one percent of their revenue comes from or excuse me, the volume comes from Russia and Ukraine combined. You do see that stock down one percent. KO as a ticker. Also keep an eye on McDonald's m c DS, your ticker. It's up seven tenths of a percent. A little bit of light trading in that stock right now, but it also gets nine percent of

its revenue once again from Russia and Ukraine. Uh It's eight seventh largest presence is actually in Russia, so keep an eye on that stock. Another story here is going to be Philip Morris, PM is your ticker down one point six percent. They get seven percent of the revenue from Russia. So once again a common theme when it

comes to consumer staple stocks. All right, Bloomberg Radio and TV Markets correspondent Crety, good thing gonna be keeping an eye on all those stocks throughout the morning, I'm sure, and taking a look at the market as a whole as we get set for what could be a very bumpy Monday morning open s ANDP futures are down down sixty two points down, futures down four or six nastack futures are lower by a hundred nine four points of the tenure, treasury up fourteen thirty seconds, the yield one

point nine one yield on the two year one point five zero percent, the ruble down more than six percent at nine point nine to five to the dollar. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather, sunny, breezy, mid thirties. That's all we'll get to today. We'll be in the mid forties by tomorrow. High your fifty possible

by Wednesday. Right now, seven degrees under a clear sky in central part markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karin Moscow and futures are lower. This morning we get to the First Word Breaking news desk for today's morning call. Here's vil Maloney Bill. Good morning, Hey, good morning, Karen. That's right. US hugues are plunging after

Friday's gain with Douff. You just currently down four hundred forty one points, SBS drop sixty five, NASA FUS just lowered by two hundred and six the US ten yeld at one, Gold is up seventeen, Oil trading higher, and Bitcoin gains by two percent Upan markets are also under pressure, led by three percent losses in France and back in the US. On the Economic Funday thirty wholesale inventories and at nine five Chicago p m I and deal News t D to buy First Horizon for twenty five hours

to share and wrapping things up. Foot Locker was cuting untral over at Create, sweetz Balle's cut to hold at Jeffreys, and Abby was cutting Neutral over at UBS. Live from the first Breaking News Stats com Bill Maloney, Karen, all right, Bill, thank you to hear live breaking news over your Bloomberg tipe. Squawk on your terminal. I'll ask you you a w K. That's a Bloomberg business flash. Now here's Michael Barrow with more on what's going on around the world. Michael, Karen,

thank you very much. And ukraining and delegation, led by its Defense minister arrived at the border with Belarus for talks with Russian officials. Ukrainian President z Lensky has voiced skepticism that it will yield results, but said he's rolling to try. Toyota says it is suspending production at all twenty eight lines of its fourteen plants in Japan because of a system malfunction at a domestic supplier. Japan's top

alltomaker apologize for any inconvenient cause to customers. Toyota and other automakers already are grappling with shortages of computer chips and other parts. In the NBA, the Knicks and Celtics and Warriors lost in the NHL. The Islanders won, the Rangers lost. Global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a d twenty countries. Michael bar this is Bloomberg, Karen, Sorry, Michael Barr,

thank you. It is coming up to sixty nine on Wall Street, and we turned to news and science and technology now with the Bloomberg and j I T Stemm Report brought to you buy New Jersey Institute of Technology and j I Team Infrastructure Ready graduates from civil engineers to transportation specialists. If it's infrastructure, and j I T grads are building it more at n j I T dot e DU now here's just making news and science, technology, engineering,

and math. Coronavirus restrictions in New York will be scaled back in the coming days. Indoor school mask mandates will be ended, so will requirements to show proof of vaccination in New York City restaurants, gyms, and other venues. Daily cases are plunged from more than ninety thousand statewide in January to less than seventeen hundred on Sunday in Hong Kong. The government is being forced to move away from the key pillars of its strict COVID zero policy. A sergain

new cases have overwhelmed the healthcare system. Patients with mild cases are no longer sent to hospital or isolation facilities because there's no space. A group of scientists has found that a forest pest that the devil's main residents and tourists with hairs that cause an itchy rash, appears to be spreading due to warming temperatures. The growth and spread of the moth is tied to increasing the warm weather,

especially in the fall. And scientists wrote recently in the journal Environmental Entomology and unfortunately they say climate trend suggest upcoming years could be even worse. That's a Bloomberg n g I t STEM report. Nathan oh Boy, Thank you, Karen. We are live from the Bloomberg Interactive Broker Studios where it's six fifty on Wall Street. Time now to check

what's going on in DC. As Ukrainian and Russian delegations meet and Belarus prepares to send troops into the war in Ukraine, Russian President Vladimir Putin put his nuclear forces on high alert over the weekend. US Ambassador to the United Nations Linda Thomas Greenfield tell CBSS Face the Nation She's not surprised Putin has tried every means possible uh to uh actually put fear uh in in the world in terms of his action, and it just means that we have to ramp up our efforts here at the

United Nations and elsewhere to hold him accountable. And those efforts are ramping up with Russia's central bank now under sanctions and many private banks off the swift financial network. Republican Congresswoman Liz Cheney tells Face the Nation the next target should be Russia's oil and gas. The United States ought to be looking at ourselves, frankly, as an arsenal of energy for the world in a way that in World War Two we were an arsenal of democracy. We

ought to be an arsenal of energy. So we ought to be unleashing our own uh energy resources, our own energy production. We got to stop the imports of Russian oils United States. All this as President Biden prepares for his first State of the Union address tomorrow night. White House Press Secretary Jenski tells ABC's this week, leaders lead

during crisis. That's exactly what President Biden is doing. He'll speak to that, but he's also going to speak about his optimism about what's ahead and what we all have to look forward to this week and face the nation. Can be heard every Sunday on Bloomberg Radio. For more, We're joined by Bloomberg Government reporter Emily Wilkins as we continue to watch developments between the Ukrainian and Russian delegations along the Belarusian border. Emily, what is happening in wash Ington?

What more diplomacy is happening there? So I think obviously Washington is watching the developments very closely away whether additional stactions might be needed in addition to those added this weekend, notably those on Swift, which initially Biden had said was going to be off the table UH and then kind of said, you know, hey, we are now We're waiting for our European allies UH to come to agree with us on this. And I think the Swift going into

place really shows just how much this conflict has escalated. UM. Congress is getting back this week, which means we could see lawmakers resumed discussions on another package of sanctions. But I think at this point where more UH interest is in is in what needs to be given to Ukraine in terms of defense. In terms of humanitarian aid, we saw over the weekend that Congress the US did announced

fifty four million dollars in humanitarian aid to Ukraine. But we know that in the past week long makers have floated numbers as big as ten billion dollars in a between humanitarian and defense. So I think that's going to be something to watch this week. In addition of course Biden State of the Union address. Um, you know, there are a number of things that the President wants to cover in terms of going forward with different social and economic plans, the few future and fate of his Build

Back Better package. But really right now that this Russia invasion has really sort of consumed everything UH in terms of immediate priorities for Congress and for the White House, now you have to think that there's been some kind of reframing of the direction of the State of the Union address given all these global geopolitical events. At the same time, as you know, the President's approval ratings are

seeming to go lower and lower. Is there a feeling at the White House that the State of the Union is still away for the president to sort of turn his political fortunes around, even as all these out side events continue to reshape and redirect his presidency. I mean absolutely, I think the White House does realize that, even though there's so much else going on, that the State of the Union is still a major speech, a major moment.

It gets lots of coverage. Bloomberg of course will be covering it um but it is still an opportunity for a Biden to kind of shift the message. And we have seen some message changes coming from the White House as far as really pivoting from trying to sell lawmakers on additional funding plans to sort of talking a bit about what the White House has done, what they have accomplished.

This is something I've heard even from Democratic lawmakers who say that Democrats don't always do a great job messaging what they have done. There is a sense out there that Democrats haven't accomplished a lot, even though they passed

COVID relief, even though they passed an infrastructure bill. Uh. And I think there's a sense among the Biden administration as well as Democrats that the next several months leaving up to the mid terms need to be spent reminding Americans what the administration has done in its first year. Tell me about thirty seconds left here, Emily, what are you gonna be watching for from the White House today? As President Biden gets ready to hold more meetings with

his counterparts. I think the we're looking for any sort of request from the White House to Congress as far as what they want. A lot of the times you'll see these requests for funding originate with the White House and with Biden, and then you'll see lawmakers and Congress be able to quickly respond to those. So I think that's the number one thing to keep an eye out for today. All right, So we're watching to see if any more movement for Ukraine, any more support for Ukraine

is still on the table. Bloomberg Government reporter Emily Wilkins with us from Washington, d C. You can read much more on what's happening in the war in Ukraine on Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington Bloomberg and one oh five point seven FM HD two. Karen, alright, thanks Nathan, It is

six fifty six on Wall Street. This is Bloomberg daybreak in February is Black History Month, and every day this month we are celebrating significant moments in US black history. Now if your installment for February twenty eight, here as Sploomberg Trinty too Young on this day in Black History. In nineteen eighty four, Michael Jackson wins an unprecedented eight Grammy Awards, including Album of the Year for Thriller and

Record of the Year for beat It. To date, that's the most number of Grammys one in a single night, several other hits and awards. Later in seven, Jackson was included in the Rock and Roll Hall of Fame for the first time as part of the Jackson Five with his brothers, and later inducted as a solo artist in two thousand one. In two thousand and six, the King of Pop was named by Guinness World Records as the

most successful entertainer of all time. Three years later, in the week following his death, Jackson became the first artist to sell more than one million digital tracks in one week two point six million tracks to be exact, and in fourteen, yet another posthumous record, Jackson became the first artist in history to score a top ten hit on the Billboard Hot one hundred in five different decades. That's to dame black history. I'm Nita Young, Bloomberg Radio. All right,

Ni to thank you. Another deal to tell you about Healthcare Realty and Healthcare Trust of America agreeing to combine in a stock in cash dividend deal worth seventeen point six billion dollars. In earlier, t D said it's going to buy first to Rizon for twenty five dollars to share again. Futures are lower this morning, falling even es and P futures down sixty points, but they are off their lows in the morning. Now futures down four hundred eleven.

Nasday futures down one hundred eighty and Bloomberg surveillance is straight ahead for Nathan Hagar on kmerin Moscow, And this is Bloomberg