Bloomberg Daybreak: January 11, 2022 - Hour 1 (Radio)

are set to return to classes tomorrow. I'm Michael Barr. More Ahead, I'm John Stas Sharon. Sports Georgia beat Alabama with the national championship at college football. The Knicks one, the Nets and Rangers both locks. That's all straight ahead on Bloomberg day Break on Bloomberg Element Treo, New York, Bloomberg 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. Good morning, I'm Nathan Hagar and I'm Karen Moscow and US futures are higher this morning. We're coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg S ANDP futures up twenty points this morning, Down futures up one eleven, and ASDAC futures up one hundred. The decks and Germany's up one point two percent, and the tenure treasury up four. Third day

seconds yield one point seven four percent. They yield on the two year point eight to nine percent. Nathan, Karen, Let's begin this morning with today's confirmation hearing for j. Powell to serve another term as FED chair. Powell's testimony comes as markets remain volatile, gripped by rising inflation and the prospect of higher interest rates. We get more from Bloomberg Economics correspondent Michael McKee. Powell comes before Congress just

when there's something to talk about. Fear the Fed is behind the curve on inflation sent stocks lower on Monday as market interest rates continued to rise. Representatives will connect the dots trying to get a commitment from Powell. The Fed will ratify the market moves by raising rates sooner and faster, and they will ask him about plans for shrinking the Fed's balance sheet. Members will also want to know more about his plans for non monetary policies at

the FED. How involved will the Central Bank be in climate change initiatives, in regulating cryptocurrencies, in approving bank mergers? Michael McKee Bloomberg Daybreak, All right, Michael, thank you. Later this week, Lyle Brainerd heads the Capital Hill for her confirmation hearing to serve as vice chair of the FED. And now we're learning her predecessor, Richard Clarada, was resigning early.

Bloomberg's Doug Krisner has the story. Clarida will step down from the Board of Governors two weeks before his term is due to expire. Last week, it was revealed he had sold at least a million dollars and shares of a U S stock fund in February. A few days later, he bought back a similar amount of the same fund on the eve of a major FEED announcement. Clarida has been a member of the Board and vice chair since September twenty teen. President Biden has nominated FED Governor Lyle

Brainer to succeed Clarida. Her confirmation hearings begin on Thursday in New York. I'm Doug Chrisener Bloomberg Daybreak, Doug. Thanks. Meantime, the drumbeat for more interest rate hikes from the Fed is getting louder. For the latest there were joined live by Bloomberg's John Tucker Morney John, Good Morning, Nathan. The latest call for faster hikes comes from former New York Fed president and current Bloomberg opinion column that's Bill Dudley. He says the Central Bank needs to get a lot

more hawkish. My best guess is you know that did they need to do at least four or five rate hikes this year? And it wouldn't strike me at all if we if we get into an every meeting kind of cycle at some point. Bill Dudley, making the comments in an interview on Bloomberg Surveillance Swaps. Markets are already into getting three or four interest rate hikes from the Central Bank this year. Goldman Sachs and JP Morgan Chase

forecasting four options. Traders also flagging the prospect of eight quarter point rate most by early four so from earlier acspectations of around six and New York on John Tucker Bloomberg Daybreak. All right, John, thank you all. Just a couple of months ago, there is hope for a faster global recovery, but now that confidence may be fading, and Bloomberg's Rnada Young joins us live with the details. Good

morning Renda, Good morning care. In a new World Economic Forum survey finds just one in six government and business leaders are optimistic on the global economic recovery, and just one intend thinks worldwide economic expansion will pick up speed. The Global Risks reports sites the pandemic, climate change, and

rising social tensions among the biggest concerns. Short term fears include health and social damage from COVID nineteen, while economic and debt related issues are cited as medium term dangers. I'm renied A Young BLOOMMERK Daybreak, Right, Nita, thank you. Now we turn to the latest on the pandemic and vaccines. Fiser says it's developing a hybrid shot that combines its original vaccine with a formulation that shields against the omicron variant.

According to CEO Albert Bola, Fiser will approach US regulators in March four clearance of the shot well. Nathan Maderna is also working on a shot end at the omicron very end. We caught up with CEO Stephen bon Cell. We are moving very aggressively, were even to be in a couple of weeks in the clinic Theron specific Vista and CEO Stefan bon Cell says Maderna has more than eighteen billion dollars in vaccine orders so far this year. In Hong Kong, hear and authorities are doubling down on

their COVID zero policy. The city is reimposing some of its strictest limits since the pandemic began. Kindergartens and primary schools will close. Passengers from high risk countries will be banned from passing through Hong Kong's International airport. Meantime, we're seeing as somewhat of an exodus from Hong Kong. Nathan expatriots and locals are moving away from the city and increasing numbers. And Bloomberg Day Brik Asia anchor Brian Curtis

has a story. The population decline is running at one point two percent since the end of It's the biggest drop in at least six decades. Policymakers have stepped up their crackdown on still society, and they've brushed aside an uproar over aligning with China's COVID zero strategy. The brain grain is seen in sectors as education, healthcare, and even finance, and critics say it will likely be felt by residents

for years to come. Brian Curtis Bloomberg Daybreak A right. Brian, thanks Back here in the US, the nord stream to pipelines in focus on Capitol Hill, the Senate's considering plans to impose tough new sanctions on the pipeline that links Russia with Germany. Amy Morris has details from our Bloomberg

newsroom in Washington. The Senate could vote for sanctions this week, but some Democrats argue sanctions now could make it more likely Russia will invade Ukraine because it would break the United States away from Germany, But the Senate vote is moving forward as part of a deal between Senate Majority Leader Chuck Schumer and Senator Ted Cruz of Texas. Crews introduced the sanctions bill while placing a hold on dozens of President Biden's foreign policy nominees. This could clear the

way for those nominees to be confirmed in Washington. I maybe Morris Bloomberg daybreak right, MC, thank you all. Turning to the markets now. Trading has resumed at the London Medal Exchange after a five hour outage. The world's most important base metals exchange said it had connectivity issues caused by your power outage at a third party data center. And straight I had your latest local headlines plus a check of sports, and this is Bloomberg. Thanks Staring. It's

five oh seven on Wall Street. Is called this morning eighteen degrees in Central Park. We already have an accident on the northbound New York State through Weights and York's at fifteen b while details on that for in traffic shortly. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning. Nathan. Sorrow fills the Bronx community after Sunday's fire and choking

smoke and golf to high rise apartment complex. The death toll has been lowered to seventeen people killed, eight of them children. Prayers were held last nine for the victims as friends, neighbors, and strangers sought to console the grieving. Firefighters say the blaze was sparked by a faulty space heater, but smoke from that fire traveled throughout the building due

to an open door in the hallway. Mayor Mayor Eric Adams says that the fire should convince others to make sure fire safety doors in the buildings are closed at all times. Close the door. Close the door that was embedded in my head as a child watching the commercials over and over again. We're going to double down on that message. Mayor Adams says. The flames damaged only a small part of the building, but smoked poured through the

apartment's opened door and turned stairwells into death traps. New Jersey Governor Phil Murphy warned the residents of his state that they are seeing hospital admissions that rivals some of the pandemic's worst days. We're in the thick of this latest fight against the omicron tsunami washing across the state. Governor Murphy is concerned that it's not even the reported peak of the omicron variant of the coronavirus that health officials have been warning us about. Both and ventilator numbers

are upstick efficantly and have roughly doubled since Christmas. These are the highest numbers with set since May of two thousand and twenty. Governor Murphy says many New Jersey towns and cities have reintroduced masked mandates. Chicago public schools are set to reopen for students tomorrow after the teachers union leadership voted to approve a deal with city officials to restart in person classes in the nation's third largest school district.

Schools have been closed since January five, after Chicago teachers voted to shift back to remote learning, demanding more stringent protections amid a COVID nineteen surge. President Biden travels to Atlanta today to push voting rights. Biden, traveling with the Vice President, will visit have an easier Baptist church, the home pulpit of the late Reverend Martin Luther King. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under

journalists and analysts more than a hundred twenty countries. I'm Michael bar This is Bloomberg Nick. Thank you. Michael five O nine on Wall Street. Time for the Bloomberg Sports Update. We've really got a new college football national champion. John stash hour. It's been a while, Nathan. The season ended in Indianapolis with Alabama against Georgia. They played last month for the SEC champions. Obama won that one by seventeen points,

but Georgia won last night by fifteen. It was closer than Obama had leads in the third and fourth quarters, but Georgia, after scoring no touchdowns for the first forty three and a half minutes, scored four tens in the last sixteen and a half and then included a game ceiling score in the final minute. Takes an inside hand off to Robinson, throws to the near side, intercepted at the twenty one yard life and Kili Ringo preet back across the field across the thirty inside the twenty three scores.

The Georgia Bulldogs lead by two scores with fifty four seconds to go. We han't had the radio call the final thirty three to eighteen. It's Georgia's first national Jamie Jipsons herschel Walker led them in nineteen eighty. They lost the title game Tobama four years ago in overtime. Crimson Tide denied what would have been a seventh title. In

the last thirteen years. Nicks finally win some home games four in a row with the Garden pulled away from the Spurs second half and won one e ninety six thirty one points for our j Barrett nets in Portland without James Harden due to a knee injury. The Blazers without Damian Lillard Portland one one, fourteen to one. Oh A in Brooklyn's now dropped five of the last seven. Rangers beaten by the Kings in l A three to one that Dave getleman retirement made official. Giants now looking

for a new general manager. Three coaches just got fired, Matt Nagge in Chicago, Mike Zimmer in Minnesota, and in a surprise, Brian flora Is in Miami. The Dolphins finished the season going eight and one. John stash Aware Bloomberg Sports Nathan Okay, John, thank you right now. S and P futures are higher by twenty two points. Now futures up a hundred twenty NASAC futures on the rise by a hundred eight points. The tenure treasury yield one point

seven four percent. Ahead of j Palace confirmation hearing, we get a preview next from Bloomberg Shington Correspondent Joe Matthew. This is Bloomberg Bloomberg Day Break, brought to you by the Breakers. This winter, a warm welcome awaits you. The Breakers is committed to making your stay even better with

exceptional experiences, gracious service, and unparalleled seaside glamour. To learn more, visit the Breakers dot Com Today, 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 flash and I'm camerin Moscow. European stocks are bouncing back from their biggest decline in six weeks, as treasury yields steady a day before a key US

inflation reading. US futures are heading edging higher, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P futures up twenty points this morning. Now futures have one hundred twelve and nowsdays futures at one hundred six. The Dack Center remedies at one point two percent ten year treasury at four thirty seconds. He had one point seven four percent yield on the two

year point nine zero percent. Nimex screwed oils up one point six percent of a dollar twenty eight at seventy dollars fifty one cents a barrel. Comic schooled up four tenths per cent or seven dollars fifty cents at eighteen o six thirty an ounce. The Euro one point one three three six against the dollar, British found one point three six oh six and the yetis at one fifteen point three nine. And looking at Bitcoin this morning moving higher at forty one eight hundred dollars. That's a Bloomberg

business flash. Now here's Michael Barr with more on what's going on around the world. Muncaele, Good morning, Good morning, Karen. Investigators are trying to determine why safety doors failed to close in the New York City high rise when the deadly fire broke out. Failure allow thick smoked billow through the tower and kills seventeen people. The Republican National Committee sued New York City over a law that will give non citizens the ranked vote in local elections, calling in

a blatant attack on election integrity. Chicago's students will be back in the classroom tomorrow. The union and the city reached a deal about the COVID safety protocols that led to in person classes closing January five. Real estate air and convicted murderer Robert Durst has died of cardiac arrest at age seventy eight. Georgia eat Alabama thirty three eight teen to win college football's national championship. In the NBA,

the Knicks and Celtics won. The Nets lost in the NHL, the Bruins beat the Capitol seven three, the Rangers lost. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalist and analysts in more than a hundred twenty countries. I'm Michael bar This is Bloomberg, Nathan. Thank you, Michael. It's five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. We want to

get more now on our top story this morning. As j Powell gets set to go before the Senate Banking Committee later this morning for reconfirmation as Chairman of the Federal Reserve. For that and all that's happening in the nation's capital, We're joined by Joe Matthew, Bloomberg Washing and correspondent, host of sound On on Bloomberg Radio. Joe, how many times do you suppose we're gonna hear the word inflation hearing today? You know, I always think if if there's

a drinking game, I think it might be transitory. I'm just wondering how many members, especially Republican members, want to remind j. Powell of that term. And you know, look, only in Washington do we see this kind of drama surround an event where everyone seems to already know how it's gonna end. I mean, he's going to be confirmed. This is why President Biden renominated him. J. Powell enjoys bipartisan support. Doesn't mean he won't be getting some tough

questions today, though. This is an opportunity for members to to get up front, get on TV, press the chair on whether the FED is doing enough, maybe suggest that it's not, and in question whether it started this tightening regime too late. Uh. Transitory yes, Inflation, yes, especially from Republican senators. To your point that we had to look at Powell's opening remarks and he will he'll deliver the magic words that everyone is looking to hear six words

prevent inflation from becoming entrenched. This has been echoing since last night when it was released. That's the idea here, that's what they want to get from the FED chair. And while that will be the focus here inflation, Uh, he's likely to get a near full again from Senator Elizabeth Warren. It's gonna be focusing on regulation and we'll have a little more to say about that when Leo Brainard has her confirmation hearing later on this week. Uh.

This comes down to the Fed's personal trading policy. After this news that Richard Clarada is leaving two weeks early because of his own million dollar trading disclosure, this is exactly what Warren was warning about, the same Elizabeth Warren who has publicly called J Powell Nathan a dangerous man. Dangerous man. That's exactly right. I guess that begs the question whether for markets, the more important hearing this week

is J Powell's or Lyle Brainerd's. What's the feeling in Washington? Well, I think they're actually gonna be pretty similar, to be honest with you. And this was again, remember we have still have three open seats that have to be filled.

These were supposed to be the two easy ones, Nathan, when when Joe Biden walked into the South Court auditorium over there in the White House complex with j Powell and Layle Brainers, this was the duo here, right, This was supposed to be the easy part, the part with bipartisan support, that which brought continuity to the markets, let

lawmakers rest easy at night. Uh. The next three however, could be a different matter as we expect more progressive members with more diverse ideas, and those could be challenged by members of the Banking Committee. And the time we

have left Joe. The other big story we're gonna be watching today as President Biden heading down to Atlanta this afternoon, in this new push for voting rights legislation after the setbacks for the president's economic agenda, is this likely to be the focus for the rest of the year for President Biden? The rest of the year, Yeah, was well straight through November. This is that we've got midterm elections

on the brain. Here. There are questions, maybe maybe from some critics who suggest that this is a vanity project for Joe Biden and for Democratic leaders because it's not likely to pass. They they they don't have the votes to pass this voting rights legislation unless there's a carve out in the filibuster or Joe Mansion and Kerson Cinema, two familiar names, don't support doing that. But this is

for the base. This is to stirrup passions. This is to motivate Democrats who might be getting a little bit complacent after watching Bill back Better fall apart the end of last year. To get them out there, get them thinking about what happened in twenty and get them voting. If this does not pass as expected, that in itself could be a motivator for Democrats in the midterm election year.

Interesting in our last minute here to frame this as a base motivator when for a lot of the president's allies, the push for voting rights was something they had really been wanting to see from him from the get go. Yeah, that's true. And they're still talk about reforming the Electoral Count Act. That would actually prevent what, you know, what could have happened last January six, That would make uh the Vice president's job ceremonial essentially in the way that

the votes are codified and certified. But again, the Democrats are concerned about that because they think it's a distraction from the real issues, and they're watering down what it is they really want to do to protect voting rights

going forward. The President will speak passionately today, we're told from the White House as well about his support for changing that philipbus To rule, which would be a big deal in Washington, certainly would be Joe Matthew as always, thanks for keeping us up to speed on what's happening in the nation's capital. Of course, you'll be able to hear much more from Joe and his guests when you tune in for Bloomberg sound On coming up at five

pm Wall Street Time right here on Bloomberg Radio. And that of course will come after j pals confirmation hearing before the Senate Banking Committee that begins at ten am Wall Street time. We will have live coverage of that hearing as well, right here on Bloomberg Radio. Ahead of all that, ahead of the market open, futures are moving higher. We have SMP futures up nineteen points right now, DAL futures up a hundred NASTAC futures on the rise by

a hundred one points. And you're listening to Bloomberg Daybreak Good morning, Bloomberg eleven three oh weather sunny but called today. Might get to twenty degrees for an afternoon high tomorrow. Partly sunny behind your forty, mostly cloudy in your forty for Thursday seventeen degrees Right now, Broadcasting live from the

Bloomberg Interactive Broker Studio in New York. Bloomberg E living free to Washington, d C, Bloomberg nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg NUN sixty to the country, Sirius XM to the one nineteen and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's by thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Kared Moscow, and we are just about four hours away

from the open of US trading. Let's get you up to date on the news. You need to know what sour. US futures are higher this morning ahead of a confirmation hearing for J. Powell. Fed share plans to town Senators at the Central Bank will prevent higher inflation from a coming in. Trenched ad mills is a Washington policy Analysted Raymond James J. Powell is getting confirmed in his job is to give Republicans a reason to stick with him, to vote for his reconfirmation. If you are J Powell,

you're talking about inflation. You're talking about what you're going to do next, and mills of Raymond James spoke of our Washington correspondent Joe Matthew on Bloomberg's Sound on Catch the Program weekdays at five pm Eastern on Bloomberg Radio. Well, Meantime, Karen, the drum beat for more interest rate hikes from the Fed is getting louder. Let's get the details live with Bloomberg's John Tucker, John and Nathan Schwappze in the Cave.

The FEDS target will be eight basis points higher by the end of this year, assigned the markets baking in three hikes plus the possibility of a fourth. Former New York President Bill Dudley says the Central Bank needs to get more hawkish. JP Moore, are Gonna Goldman Sacks or forecasting for rate increases this year, and tomorrow's CPI report could put more pressure on the Fed, with forecast calling

for an annual inflation rate north of seven percent. New York on John Tucker Bloomberg, deybreak right, John, thank you thows inflation picks up. Confidence in a global economic recovery appears to be fading. The details on that now from Bloomberg's or need too Young. A World Economic Forum survey finds just one in six government and business leaders are optimistic on the global recovery, and just one in ten

things worldwide economic expansion will pick up speed. The Global Risks Report sites the pandemic, climate change, and rising social tensions among the biggest concerns, and those polled wants to see greater coordination among leaders to try to solve the world's problems. I'm really need a young Bloomberg debreak. All right, we need to thank you know when it comes to the pandemic. Fiser is working on a new vaccine. Companies developing a hybrid shot that combines its original vaccine with

a formula that shields against the omicron variant. Finder says it will approach you US regularly ds in March for clearance of the shot. And Nathan. On the political front, lawmakers have the Nordic stream to pipeline in their site to send a good vote This week to impose new sanctions on the conduit that links to Russia and Germany. There's broad congressional opposition to the pipeline, but some Democrats where his sanctions could complicate talks between the US and

Russia over Ukraine. And again, futures are moving higher this morning. SMP futures up nineteen points, DOW futures of ninety nine, Nastagg futures of ninety eight. Straight ahead, your latest local headlines, plus a check of sports. And this is Bloomberg. Thanks Karen. It's five thirty three on Wall Street. It is really called seventeen degrees in Central Park up bad tractor trailer crash as the northbound Eagan closed at a hundred seventy nine.

While the details for you in traffic. First, we have Michael Barr with more on what's going on in New York and around the world. Michael, thank you very much. Nathan Tennants of the Bronze Department building where a deadly fire broke out Sunday, had complained about the lack of eat, a broken radiator, and a door that didn't close properly

in the months before the blaze. According to city records, City officials say the fire appeared to have come from a malfunctioning space eater in an apartment, where residents fled without closing the door. The billowing black smoke turned stairwells into death traps. New York Mayor Eric Adams this painful moment can turned in to a purposeful moment as we send the right message of something simple as closing the door. Mayor Adams says the death toll of the fire has

been lowered to seventeen dead. New York's COVID nineteen infections may have reached a peak about a month after the city's first case of the omicron variant was identified. According to the New York City Health Department, the seven day average of people visiting emergency departments with COVID like illness has dipped significantly in all five burrows since the end

of December. Meanwhile, New Jersey health officials say they may have eight thousand COVID related hospitalizations nearing the state's pandemic peak in the third week of January. Governor Phil Murphy, we're recording more deaths tragically now, more than any point in the past year. And remember, remember one year ago, we had only just begun our vaccination efforts. Governor Murphy says many towns and cities in New Jersey have reintroduced

masked mandates. Chicago students plan to resume classes tomorrow after leaders of the teachers union accepted a proposal with the district over COVID nineteen safety protocols. Both sides had been locked in an increasingly bitter standoff that canceled classes for five days. Chicago Mayor Lorie Lightfoot, some will ask whom one and who lost? No one wins when our students are out of the place where they can learn the best and where they're safest. The full deal still requires

approval by the union's full membership. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than journalists and analysts more than a d twenty countries. Michael Barr, this is Bloomberg, Nathan, all right, Michael, thank you. On wall st Let's get a Bloomberg sports update. Now here's John stenshow thanks Nathan. Four years ago, Georgia lost the National championship game to Alabama in overtime, and then last month the Bulldogs perfect season spoiled by the

Crimson Tide in the YESCCN championship game. Same two teams last night in Indianapolis. Bama lad nine six late third quarter. Georgia then went ahead a sixty seven yard run set up the game's first touchdown. Fourth quarter, Crimson Tide back on top, but then it was Georgia's turn second and eighteen eight eighteen to go to clock running BATA leading by five showing blitz three plays out up. Alabama was offside,

so here's a deep throat to the end Zode. It is touchdown by a d D. The call forty yard t D. Georgia later had another TV pass and a seventy nine yard pick six in the final minute. Georgia beat Alabama thirty three to eight. Seen first national championship for the Bulldogs since nineteen eighty at the Guard. Another big game for R. J. Barrett. He had a thirty two point game last week also that game winning buzzer beater, and Barrett went for thirty one Last night, nix S

meet the Spurs one ninety six. Nets lost in Portland one fourteen to one oh eight. Kevin durant in defeat twenty eight points. Kyrie Irving's second game of the season. He played forty minutes, scored twenty two. Rangers lost in l A to the King's three to one Black Monday, in the NFL, three coaches got fired, Matt Naggey in Chicago, Mike Zimmer in Minnesota, and in a surprise, Brian Flores in Miami, not Joe Judge. He did meet with Giants owner John Barra on the day of the day of

gentleman retirement was made official. Mara and the Giants have a gun to search for a new general manager. Don Maynard passed away at a A J eight six drafted by the Giants. They cut him and he went to the Jets and became a Hall of Fame wide receiver. John Stashward Bloomberg Sports Nathan John Thanks. It's five thirty seven on Wall Street. Time for the Tri State Business Report. Here's Bloomberg's head Cory. New York's Broadway theaters will extend

their man ask and vaccine requirements through April. At the same time, the city's infections may have reached a peak about a month after the first case of the omicron variant was identified. There. JP Morgan's CEO, Jamie Diamond says that the New York headquarters of the firm's employees are vaccinated. The company last months began requiring vaccines at nine Manhattan Novice buildings, but has so far stopped short of requiring

shots for all employees. Unlike competitors City Group, New York business owners are saving billions by sidestepping the cap on state and local tax deductions. Dal Jones says business has paid the state eleven billion dollars and passed through entity taxes by the end of one They shifted their state income taxes from their individual tax returns to their business filings, but the cap doesn't affect them. That's your Bloomberg Try State Business Report. I'm Ed Corey, Thank you. Edit's on

Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the stories heard on our three hundred affiliate radio stations around the world. I'm Steve Potas, got on ten ten Wins in New York. We're looking at the Bloomberg Prett Index and how walls free, bankers staying home, sains, sandwich sales plunging,

um Corney, Dadaho on ktr H in Houston. Heat firing storms have caused one hundred forty five billion dollars and damages across the US. I'm Caroline hit Full bloombg da B Digital Medio in London. We're be putting on the consumers splurge over Christmas as UK retail sales jumps in December, according to the British retail Consultia. I'm in Corey on w T A M in Cleveland. I'm reporting the Starbucks Downtown could become the copy chains first unionined story at Ohio.

And those are some of the stories our twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. Less than a year after canceling Donald Trump's Remained in Mexico policy for migrants attempting to enter the US, the Biden administration has started enforcing it again, all too reluctantly. Some background. In August, a federal judge found that Biden had improperly

rescinded the policy and ordered it reinstated. A ruling upheld by the Supreme Court. The White House has done so, but it insists that it does not acting early, and has asked the High Court to revisit its ruling. The administration would be better off working to make the program more efficient and humane. Biden's rush to undo his predecessors policies has undermined public support for the comprehensive immigration reforms.

The US needs strengthening this policy rather than discarding it, would be the best way to restore confidence in the government's ability to administer a fair and orderly system. This editorial was written by the Bloomberg Opinion editorial Board. I'm David Shipley. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or op i and go on

the Bloomberg terminal. These has been Bloomberg Opinion. You can hear Bloomberg opinion editorials every weekday at this time, and terminal customers can read more at O, P, I, n GO, SMP futures. Right now, we're up nineteen point, staff futures higher by ninety nine. Nastact features up a hundred one points. The tenure treasury is up one thirty second. They yield

one point seven five. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather sunny but cold today, high only near twenty degrees, partly Sunday tomorrow with the hind your forty well mostly cloudy in near forty on Thursday. Right now seventeen 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. He's a

Bloomberg Business Flash, and I'm Karen. Moscow and European stocks are bouncing back from their biggest decline in six weeks, as treasury yields to steady a day of for a key US inflation reading. US dock index futures are on the rise. S and P futures up twenty one points this morning, Down futures up a hundred six, Nastack futures up one hundred eleven. And we checked the markets every

fifteen minutes throughout the trading day on Bloomberg. The decks in Germany's up one point one percent, ten year treasury up one thirty second. He had one point seven five percent.

They yield on the two year point nine zero percent nine max screwed oil is up one point four percent of a dollar eight at seventy nine dollars thirty one cents a barrel comic school that the third of u percent or six dollars at eighteen o four eight and ounce the euro one point one three three one against the dollar British found one point three six so four begins at one fifteen point four four and bitcoin this morning at forty one thousand, seven hundred dollars. That's a

Bloomberg business flash. Now, where's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. An investigation is underway into the Bronx department fire that took at least seventeen lives, including eight children. A space eater is being blamed for the cars of the fire, but the apartment door didn't close, sending thick black smoke throughout the building. New York Mayor Eric Adams called it a global tragedy because many of the victims

are immigrants from Gambia in West Africa. A deal has been reached a gets schools open again in Chicago. Students will be back in the classroom tomorrow. After teachers walked out January five, the teachers union and the city reached an agreement over safety precautions around COVID nineteen. Georgia beat Alabama thirty three eighteen to win college football's national championship. In the NBA, the Nicks and Celtics won. The Nets lost in the NHL, the Bruins beat the Capitol seven three,

the Rangers lost. Global news twenty four hours a day on here and on Bloomberg Quit take powered by more than twenty seven hundred journalists and analysts and more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg. Nathan Okay, Michael. Thanks, It's five nine on Wall Street Live from the Bloomberg Intractor Broker's studios. This is a Bloomberg Daybreak and we want to turn to the latest now on a pandemic, including Fiser talking about a hybrid

vaccine to protect against the omicron variant. Dr Stewart Ray is with us this morning, Vice Chair of Medicine at the Johns Hopkins University School of Medicine, Dr Ray, It's good to have you with us this morning. Let's start there, because we spoke with Visor CEO Albert Bordley yesterday. He was saying that he could go before US regulators by March for emergency clearance on a hybrid vaccine that would combine the original shot with a new formulation tailored for

O macron. Do you think this is the kind of treatment that's going to be necessary? Well, I certainly hope that it works for what we wanted to do, which is to protect people against the broad range of virus that we have. Now, since we have two UH Strainscron and UH delta that are diversifying, I think we're going to need UH some tools to protect people. And we have kids now with rising hospitalization UH eights, and so we are worried about the broad range and vulnerable people.

We need this tool, but we'll have to see whether it's as effective as we hope it is. Obviously there's been some concern with the amount of breakthrough cases we've seen as to whether the current vaccines are effective. Do you think they are? Should we start thinking about shortening booster times even further? I mean it's already gone down from six months to five the recommendation for getting another

MR and a shot. Well, we it looks like the boosters that we've given are protecting against severe disease, and so we do have that protection, but we could help limits spread. The man variants included in the vaccine might help us limits spread more because it's a little better targeted. I think we're all worried about whether the next variance is around the corner, coming from a place we're not watching right now. So I think that boosting maybe what

we have to do. But the major source of severe disease right now is folks who haven't received vaccination yet, and so getting into that population is a major priority. At the same time, we're seeing more evidence about the effectiveness of T cells in protecting against COVID. There's a new study out of London Imperial College, London that points to the effectiveness of T cells. What could that mean

when it comes to treatment. Well, I think that when we UH think about how immune system works, it's easy to measure autibodies, it's very hard to measure T cells. In comparison, UH T cells can target any part of

the barrel proteins. And so while we talk about the sixty or so changes in overcrone UH, there's ten thousand amino acids and the virus, and there's uh a twelve hundred in the spike protein, so the number of changes is not that big, and T cells can recognize any of those little pieces of the virus that have not changed, so do provide us protection. It's a big reason why vaccination can protect even when the antibody levels are not

great against a new variant. So that's that's wonderful. We can't easily give to cells to people, and so the best way to give them effect of two cells is to vaccinate them, and so that's what we'll be prioritizing. All right, we have about a minute left here. I want to ask, when you think we'll start to think about the COVID pandemic as being more endemic around the world.

Is this something we should be talking about now. I think it's worth anticipating that that state, and I think it's possible that we would see something like that in many areas later this year. I think that the question is going to be when this stops disrupting. Clearly, it's incredibly disruptive. Right now. Our health care system is stretched in many areas, and I think in areas that have

been relatively spared so far this winter. UH there may be UH signs that the spread is increasing in those areas, and some of those areas are relatively under vaccinated, and so we may see a big impact there. But once this very infectious overcrone variant has run its UH way through the population, we may see higher levels of immunity. The cost will be tremendous, but we may be in a place where, unless we see a variant that really escapes the immune responses that democrones generated, we may be

a more endemic state. All right, As always, Dr Ray, thank you for your insights. Dr Stewart Rays, Vice Chair of Medicine at the Johns Hopkins School of Medicine, Karen Nathan, thank you. It's five fifty three on Wall Street. Time for our Bloomberg Law Report. Let's get to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger, the Lightning Administration moved to require private insurance companies and group health plans to cover the cost of at home rapid

COVID nineteen test kits beginning Saturday. A federal judge just missed the lawsuit brought by more than a dozen Los Angeles police officers who were seeking religious exemptions from the city's vaccine or test mandate. California Governor Gavin Newsom's proposed budget includes billions of dollars to combat climate change. Funding to battle wildfires would be increased. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and

Bloomberg market Intelligence. Find out more at Bloomberg law dot com. All right, Jeff, thank you. Now. Another legal story where watching brings us to the Supreme Court justices are weighing in on the Biden administration's vaccine policies. During oral arguments, the Court's six conservatives seem skeptical about whether OSHA had authority to require shots or require COVID tests for workers.

At the same time, they were not as skeptical about a mandate that would apply to nearly all healthcare staff in the country. For more in the case, Bloomberg, student Grosso speaks to Robert Field, a professor of law health management policy at Directual University. Is this more about their

seeming assault on the administrative state and agency power? I think that's definitely part of it, and when they issue their ruling, we will see how important their focus on administrative power is But there was a clear division between the conservatives who said, in essence, the most serious concern was government overreach and wanting to reign in the administrative state, and the liberal justices who were saying, hundreds of thousands of human lives are at stake, that's what's most important,

and the job of the government is to act as vigorously as it can to stama crisis like that. So would you say that, based on the oral arguments, the court will strike down the employer mandate? I think based on what all six of the conservative justices were saying, it will be struck down because of one rationale or now there the question is how much latitude will OSHA have to reissue it? So, if it's based on the rule being too broad, would also be able to come

back and issue a targeted rule? Will they be able to issue a rule that goes through the regular process of soliciting comments from people and simply issue this rule but not on an emergency basis. Was there less opposition from the conservative justices to the healthcare mandate? Yeah, and my guess there's enough agreement among enough conservatives that that

rule will will hold up. I don't think it's that different for many of the rules that the government already imposes on hospitals to promote health and safety among the patients, and that it applies to fewer people. The Ocean rule applies to about eighty million, the Medicare Medicaid rule much less than that. I think it's familiar to and logistically, you don't have to work in healthcare. If you don't like that mandate, you can get a job somewhere else.

If all large employers have to enforce the mandate, there's really very two other options. And that's actually University law professor Robert Field speaking at the Bloomberg Student grosz So. Catch more event interview plus analysis of the latest legal news by listening to the Bloomberg Law Show at ten pm Eastern Time or subscribing to the Bloomberg Law Podcast, and attorneys can find exceptional legal research and business development

tools at Bloomberg Law dot com. Futures this morning are moving higher, S ANDP futures up twenty points down, futures up ninety two, NASDACK futures have one hundred six and the ten year treasury up to thirty seconds held one point seven five percent still ahead on Bloomberg daybreak and check on the business headlines and all the news you need to start your day. And this is Bloomberg.