Bloomberg Daybreak: January 14, 2022 - Hour 1 (Radio)

Biden's vaccine mandate. New Jersey Governor Murphy signs and abortion rights bill on the state, plus a push to eliminate the full of US to rule is all but dead in the Senate. Michael blarn More ahead, I'm Don Stashon sports, the Nets lost the Rangers one, the Islanders beat the Devils, and in Australia Novak Djokovic and as Visa taken away again.

That's all straight ahead on Bloomberg day Break on Bloomberg Elimentoryo, New York, Bloomberg 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. Good Morning, I'm Nathan Hagar and I'm Karen Moscow and US DOT index futures are on the rise this morning ahead of

big bank earnings. We're coming up to five o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On bloomberg S and P futures up ten points down, futures of ninety one, Nasdaq futures up twenty five, Ten year Treasury down eight thirty seconds, held one point seven three per cent, and the yield on the two year point nine two percent. And nim

X screwed oil is up seven tenths percent. Nathan, Well, Karen, We're coming off another day of declines on Wall Street. The tech heavy NASDAC posted a loss of two and a half percent. That's after several FETE officials beat the drum for higher interest rates. It all started with Governor Lyle Brainerd as part of her Senate confirmation hearing. Our monetary policy is focused on getting inflation back down to two percent while sustaining a recovery that includes everyone. This

is our most important task. Lile Brainerd says the Fed could raise rates as soon as March. Consensus calls for three or four hikes from the FED this year. Governor Christopher Waller calls three increases a good baseline, at least for now. We'll have to wait and see what inflation looks like in the second half of the year. If it continues to be high, the case will be made for four, maybe five hikes. Governor Chris Waller made those

comments in an interview with Bloomberg's Kathleen Hayes. He joins Philadelphia FED chiefs Patrick Harker and Jim Bullard of St. Louis. They've also floated the idea for increases. Chicago Fed President Charles Evans is more conscious he wants more inflation data before committing to a March liftoff. We need to get inflation back down in the ballpark of our two percent objective. UM. I think it's probably going to be UM at the end of this year. It's going to be elevated. It's UM.

I don't think it's gonna be three percent at the end of this year, and I think it's more likely to be two and a half as measured by the personal consumption expenditure. Charles Evans will be watching that PC inflation a closely. We get their next reading on that coming up at the end of this month. Well, Nathan, the White House is set to add some new faces at the FED now. President Biden has selected as picks to fill open seats at the Central Bank, and Bloomberg's

Ornia Young and joins us live at the Latest. Good Morning, Nida, Good morning Karen Bloomberg. Sources say President Biden is planning to nominate Sarah bloom Breskin to the fifth top banking regulator spot. He'll also announce economists Philip Jefferson and Lisa Cook has picks for governors. Cook would be the first black woman on the fifth board and Jefferson would be the fourth black man. The picks would also help Biden keep his promise to improve diversity at the Central Bank.

His nominations would as well add experts focused on a broad job market recovery as they seek to tame the hottest inflation in a generation. Live in New York, I'm gonna need a Young Bloomberg daybreak, Okay, Nita, thank you, and we get more data for the FED to digest this morning. Retail sales figures for December are do out at eight thirty am Wall Street Time. Let's get a

preview now from Bloomberg's Mike McKee. The O Macron variant will weigh on the retail sales numbers as many bars and restaurants were forced to close during the holiday season. Gasoline prices and auto sales also decline dealers struggling to get cars, But it does appear core sales were strong, everything from toys to supporting goods and clothing. Americans incomes were bolstered by a government fiscal aid and rising wages,

particularly at the lower end of the income spectrum. Then not so necessarily good news is retail sales will also benefit from soaring inflation, as sales are reported in dollar figures. Michael McKee, Bloomberg Daybreak. All right, Michael, thank you. All. Earnings also come into focus today. Big banks kick off this season with results to do out this morning at

Bloomberg Global Finance Correspondence, and Ali Bostick has more. JP Morgan is kicking off earnings and expectations are high that consumer loan growth is coming back and that trading will hold up even as it starts to moderate and even

decline in many places on Wall Street. With that said, we're also looking a city group and Wells Fargo earnings not only to see that the consumer is returning, but also to make sure that those banks can keep costs down as they are more under pressure with wages rising and more investment in technology. Wells Fargo in City Group have regulatory risks as well that investors will want updates on.

In New York, Shnali Bastic Bloomberg Day Break. Okay, Shinnali, thank you now to the latest on the pandemic and a major legal setback for President Biden. The Supreme Court has blocked his rule that would require large companies to mandate vaccines or weekly testing for employees. We got reaction from Labor Secretary Marty Walsh. We just have to continue our efforts with the present laid out. You know, is this a setback. I wouldn't say if the setback, if

it to be a disappointment is what it is. But we're going to continue to do everything we can. I'm going to continue everything I can as Secretary of Labor for the United States of America to make sure every single worker in America is safe. Labor Secretary Marty Walsh spoke with our Washington correspondent Joe Matthew on Bloomberg Sound On Catch the program weekdays at five pm Eastern on Bloomberg Radio. Nathan. When it comes to vaccinated employees, City

Group is out with its data. The bank says it's US employees have complied with its vaccine mandate, and the bank expects more workers to comply its order or comply with its order before today's deadline. Cities mandate is one of the strictest on Wall Street, making COVID vaccines a condition of employment. Meantime, Karen, the White House is ramping up other plans to tackle the pandemic. President Biden's doubling his order of rapid COVID tests to send to Americans.

He says he'll also distribute high quality masks. Where I'm making high quality masks available to American people in the American people for free. You know, I know we all wish that we could finally be done with wearing masks. I get it, but there is they're a really important tool. When the President says he'll have a formal announcement on distributing masks next week. Turning to the markets now, Nathan,

Crypto is in focus today. A dodge coin search as much as fift percent this morning, after Elon Mush said it can be used to buy Tesla merchandise. Muski is a frequent booster of dogecoin on social media and is hinted at the move for some time. And Karen Tiger

Woods is in financial news this morning. A blank check company backed by the golf Star has filed to raise a hundred fifty million dollars in an I p O company plans to seek a merger target in the sports or health tech sectors with an enterprise value of as much as a billion dollars. This is Bloomberg. It's south five oh seven on Wall Street where thirty nine degrees in Central Park. Already dealing with an accident on the

westbound Gowanas by Hamilton Avenue. On details for you in traffic First, Michael Barr is here with more on what's going on in New York and around the world. Happy Friday, Michael, Happy Friday to you, Nathan. New York City Mayor Eric Adams said he is considering a temporary remote option for the city's public schools and a stark reversal from his position to keep kids learning in person despite a surgeon

COVID cases. We want to provide the safest place for our children, and we want to have our children in school, Adams says, though a substantial number of children's parents aren't bringing their kids to school. According to city data, only about of the city's one million students have been attending

classes since schools reopened after the winter break. On January three, New Jersey Democratic Governor Phil Murphy, anticipating possible changes to the Roe v. Wade ruling from the U. S. Supreme Court, signed an abortion rights bill into state law. Murphy signed the measure fulfilling a campaign pledge made in the lead up to his re election victory in November. On Twitter, Murphy posted his comments during a signing ceremony in te Neck.

Regardless of whether or not the Supreme Court overturns Roe v. Wade, New Jersey's position and supporting the right to reproductive autonomy will remain clear and unchanged. Governor Murphy also says, in addition to abortion rights, the bill also specifically outlines a right to access contraception as well as to carry a pregnancy to term. President Biden is now casting some doubt on whether his voting rights bill can get done. Bloomberg's that Baxter reports. If it can be done, it will

have to be approached in a different way. After weeks of talks with senators, Cinema and Mansion both say that changing the filibuster rule is not an option. Need changes to make the Senate work better, But the President says the fight is not over. As long as I have a breath in me, as long as I'm in the White House, as long as I'm engaged at all, I'm going to be fighting to change the way these legislatures have moving. The President did meet with both before decisions

were made in San Francisco. I'm at Baxter Bloomberg Gay Break, leaders of the far right group the oath Keepers, with charge with conspiring to prevent the certification of Joe Biden as president by joining in the attack on the Capitol last year. The indictment charges Elmer Stewart Rhodes, described as the founder of the group, and ten other individuals with

seditious conspiracy and other churches. Global News twenty four hours a day on here and on Bloomberg quick Take, powered by more than journalists and analysts more than a hundred when two countries. I'm Michael Barr. This is Bloomberg. Nathan thanks Michael almost five ten on All Street Time for the Bloomberg Sports up. Faked Morning, John ALRK Your Morning, Nathan is Novak Djokovic story is like when fans watch a tennis match in their head goes back and forth.

Last week, Djokovic, despite being unvaccinated, received a medical exemption to play the Australian Open. He flew to Melbourne and promptly had his visa taken away. There was a mistake in the paperwork Monday had Judge Rein stated it. Now the Immigration Minister, acting in what he called the public interest, removed the visa again and now Djokovic's lawyers were said to be planning another appeal. The tournament, which Djokovic is one nine times, begins Monday. Nets Off the Big One

in Chicago, gave Kevin Durant the night off. Kyrie Irving can't play home games shure enough. The Nets lost to Oklahoma City one thirty to one. On nine, Nicks made a trade sent to seldom use Kevin not to the first round draft pick that originally belonged to Charlotte to Atlanta for Cam cam Reddis, who the Hawks took with the tenth overall pick in only twenty two. He'll be reunited with r J. Barrett. They were teammates at Too

Nick's play in Atlanta. Tomorrow Rangers in San Jose. The newest blue shirt helped out Alfid Eric keeps it alive, slides it over the Heatlele for scroll, robbing all the goal line, back out for a shot Store. The rain Church get the first Hill goal for a braided Sneider it his head Hill debut. Yeah, they don't have a two topic lead over the Sharks. Jenny Albert on WP and the Rangers speech San Jose three nothing. Chris Cryder scored the other two goals. He's got twenty three on

the season, fourth most in the NHL. The Islanders on a Matthew bars Ol goal with five minutes left, bet the Devil's three to Seaton Hall, upset by De Paul, who came in oh and five. In the Big East. It was ninety six ninety two John Stash Award Bluebird Sports. All right, John, thank you right now. S and P futures are up nine points, Sound Futures up ninety one, Nastack futures up twenty one points after a tech led sell off yesterday. We'll talk about the Fed path with

John Sylvia Dynamic Economic Strategy. Next, this is Bloomberg Bloomberg eleven three oh Weather turning partly sunny and breezy today with low forties for highs, a mix of sun and clouds, low twenties for highs. Tomorrow snow developing late Sunday with a high near thirty five right now forty degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, The Bloomberg Business Out and at Bloomberg Quicktake is your Bloomberg Business lash and I'm Camra in Moscow.

European stocks following, Asian shares lower after a slew of Federal Reserve officials signal the combat inflation aggressively, Treasury yields rising, the dollar falling. US futures are taking higher after the nasdack fell to its lowest level since October. We checked the markets every fifteen minutes throughout the trading day on bloomberg s and p Future is up six points this morning.

Down Future is up seventy six Nasdack futures they're little change the decks in Germany's down seven tenths of upper cent ten year Treasury down nine thirty seconds. He at one point seven three percent yield on the two year point nine two percent. Non mex screwed oil is up nine tenths percent or seventy one cents at eighty two dollars, eighty three cents of barrel comex s gold up about a tenth of upper cent of a dollar forty at eighteen eighty announced. The euro one point one four six

zero against the dollar. British found one point three seven three zero. The ends at one thirteen point nine six bitcoin this morning, moving lower. Had forty two thou five hundred dollars JP Morgan Chase City Group, whilst Fargo among companies reporting earnings today. And we get a number of economic reports today, including December retail sales. That's a Bloomberg business flash. Now here's Michael Bart with more on what's going on around the world. Uncle, good morning, Good morning, Karen.

President Joe Biden is all but conceding defeat for this year on the Democrats big elections and voting rights legislation. Biden spoke at the Capitol after a key fellow Democrats, Senator Kirsten Cinema of theres want to dramatically announced the refusal to go along with changing Senate rules to muscle pass the Republican filibuster. Tennis star Novak Djokovic faces deportation again after the Australian the government revoked his visa for

a second time. Immigration Minister Alex Hawk said today that he used his ministerial discretion to revoke Djokovic's visa on public interest grounds, three days before the Australian Open is to begin. Djokovic's lawyers are expected to appeal. In the NBA, the Nets and Warriors lost in the NHL, the Islanders beat the Devil's, the Rangers and Bruins. One Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalist

and analysts more than a hundred twenty countries. I'm Michael mar This is Bloomberg, Nathan. Thanks Michael. We're coming up to five twenty on Wall Street Live from the Burloomberg Interactive Brokers Studios. This is Bloomberg Daybreak, with inflation and the possibility of faster fed rate hikes front and center for investors. Let's bring in John Sylvia under of Dynamic Economic Strategy. John, it's good to speak with you on this Friday morning as we are hearing calls getting louder

from a lot more fed voices on faster rate hikes. Potentially, is a March lift off a done deal for you? At this point? The answer is yes. The inflation numbers continue to surprise. There was no deceleration and the CPI numbers over the last month, and you're quite right. I mean the inflation will probably feed into the retail sales numbers that we see today. Let's get a little bit more into that. How do you see inflation feeding into

those retail sales numbers? Well, what we saw was November's numbers were a little bit less than expected, and particularly in some of the discretionary areas such as appliances, furniture, and department stores were down in November and down over the last three months. And I think it's important to remember that the retail sales number is a nominal number, so the pace of inflation does suggest that real spending is probably going to slow down, at least in the

first half. I wanted to ask you a little bit more about that as well. Because I think we're probably going to see some effect of holiday spending in this number as well, aren't we what happens when that goes away? Yeah, that's that's going to be a tough one. Holiday spending going away. There's probably a lot of pent up demands you can imagine with people being sort of cooped up because of the shutdowns, they wanted to have that emotional

release they go out shopping. But the first quarter of the year tends to be a slower consumer spending number. And I'll go back to your earlier point, Um, with the FED raising interest rates, Now that's going to impact some of this discretionary spending once again because um, as you know with appliances, furniture, um, sometimes electronics, people actually put those on financing plans, so there will be that negative hit as well. We're seeing some wage pressure as well.

What impact does that that have when it comes to retail spending in the health of the consumer more generally? Are we heading into a wage inflationary spiral in some way? Well? Unfortunately, the foundations of a lot of economics is that sooner or lay to workers wake up to the fact that inflation has accelerated, and then they pushed their wage demands to follow those inflation numbers, so there is a wage

price borrow. I do expect that what we will see is higher nominal wages going forward, but unfortunately, you know, the pace of inflation still exceeds to gain an average hourly earnings and UH as as was mentioned in Bloomberg several weeks ago by Mike McKee, UM, real wage gains are actually declining. So that's that's a tough scenario. Workers are going to try to catch up, UM, so there will be some wage price FIRA. Yeah, and in some

ways the Feds trying to catch up as well. Right when do you start to see some actual dampening effect on inflation from the policy moves at the markets pricing in here? Well, historically it takes some time, a good three six nine months before any impact on the actual inflation numbers comes from the Fed raising interest rates. I would expect that, you know, inflation probably will moderate by the second quarter of this year. UM it still ends

up UM. When you look at the overall case of the CPI, you're still looking at something like three and a half to four consumer prices in UM, so there's some sustained inflation pressure going forward. In our last thirty seconds here, what do you see moderating that inflation in the second quarter? Is it gonna be apply chain issues sort of working themselves out? What's your what's your case there? My case is both supply and demand. You're quite right.

Supplies issues are seemed to be working on. If you look at the I S M delivery numbers, those numbers seem to be declining, so there is some improvement there and delivery, and I think overall arrogant demand the US economy will moderate as well. So it's both the supply and demand story. Thanks John, good having you on with us this morning. John Sylvia is the founder of Dynamic Economic Strategy. Looking ahead to the market, open futures are

moving a bit higher. We see SMP futures up seven and a half points right now, Dow futures are up eighty three points, DANCEDACK futures on the rise by ten points ten. Your treasuries down ten thirty seconds, the yield one point seven three percent in the yield on the two year right now point nine to just ahead, we get you set for bank earnings and a legal setback for President Biden's vaccine mandates all coming up as we check your top stories of the morning right here on

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the Breakers dot com. Today broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living for you to Washington, d C, Bloomberg to Boston, Bloomberg one oh six one, to San Francisco, Bloomberg nine six to the country Sirius XM chto one nine ten, and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street.

Good morning. I'm Nathan Hagar and I'm kerin Moscow. How we're just about four hours away from the open of US training. Let's get you up to date on the news. You need to know what this show. Our US futures are now little changed following yesterday's sell off, which saw the nasdack drop two and a half percent. The FEDS push for a higher interest rates to combat inflation is growing louder. Governor Christopher Waller tells US at least three hikes this year is a good baseline. It really depends

on what happens with inflation. I mean, if inflation just is stubbornly high through the first part of this year, first half of this year, we're gonna have to do a lot more. But that's what that's our job, and that's what we're committed to do, and if we have to do more rate hikes, will do it. FED Governor Chris Waller tells Our Kathleen Hayes he sees a scenario where the FED raises race as much as five times this year. Well meantime, Karen, the White House is set

to add some new faces at the FED. President Biden has made his picks to fill open seats at the Central Bank, and Bloomberg Jornia Young joins US Live with the latest. Good Morning, Na, Good morning, Nathan Bloomberg. Sources say President Biden is planning to nominate Sarah bloom Reskin to the FITS top banking regulator spot. He'll also announce economists Philip Jefferson and Lisa Cooks picks for governors. Cook would be the first black woman on the fifth board

and Jefferson would be the fourth black man. The picks would help Biden keep his promise to improve diversity at the Central Bank. Live in New York, I'm ren need a young Bloomberg daybreak Ney to thank you. We get more data for the Fed to digest this morning. Retail sales figures for December or do out at eight thirty am. Wall Street Time economist forecast a monthly decline of one tenth of upper cent, and today also marks the unofficial

start of fourth quarter earning season. Karen, we get results from three major banks this morning. Bloomberg's Larry Kowsky has a preview. Loan growth that eluded large US banks for most of twenty one is expected to make an appearance sign that the economy is recovering. JP Morgan Chase reports first, followed by Wells Fargo and City Group. Investment banking fees maybe a highlight for JP Morgan. According to Bloomberg Intelligence, Wells Fargo is expected to show a modest rise in

net interest income. Borrowing growth in its card business will be in focus. At City Larry Kowsky Bloomberg Day Break, Larry, thank you, and turning to politics now. It's a major setback for President Biden's vaccine mandate. The Supreme Court has blocked a rule that would require large companies to require vaccines are weekly testing for employees. The ruling limits Biden's options for increasing the country's vaccination rate. The CDC says of the country is fully vaccinated and just of that

group have received a booster shot. S andp futures are little change this morning to Future is up fifty nine Nasdack Future is now down about eighteen straight and had your latest local headlines plus a check of sports. And this is Bloomberg all right, Karen, thank you. It is five thirty three on Wall Street where at forty degrees in Central Park and still dealing with the accident in Brooklyn westbound Gwanas at Hamilton Avenue. Michael Barr is here with more on what's going on in New York and

around the world. Michael, thank you very much. Nathan. New York City Mayor Eric Adams is now considering allowing the nation's largest school district to return to some form of virtual instruction, as the city weather is a way of of coronavirus cases. Adams says that he still believes the safest place for children to be is in school, but that there are a substantial number of children missing classes. I am working closely with the UH president of the u f T. I think that people AS's surprised to

see how well we're doing. This is not Chicago, this is New York. Mayor Adams was referencing Chicago, where the nation's third largest school district canceled five days of classes because of disagreements with the teachers union over COVID nineteen safety protocols. New Jersey Democratic Governor Phil Murphy signed a bill in shrining the right to an abortion into state law.

Murphy on his government Twitter post says New Jersey's position in support of the right to reproductive autonomy will remain clear and unchanged. This is a victory, yes, but not necessarily a conclusion. Under our states laws, you folks now have the statutory right to reproductive freedom. Governor Murphy signed the bill as a Supreme Court rulingco to come in June in a case in which the Court was asked

to overturn Roe v. Wade. President Joe Biden is all but conceding defeat for this year on the Democrats big elections and voting rights legislation pushed back involved the President trying to change the filibuster rule, including from within his own party. Moderate Democrats like Arizona Senator Kirsten Cinema disagree

on changing it. What is the legislative filibuster other than a tool that requires new federal policy to be broadly supported by senators representing a broader cross section of Americans? Guardi Senator Cinema says the current filibuster rule lessens the chances of one party to get complete control. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than seven under journalist and analysts more than a hundred twenty countries. Michael Barr, this

is Bloomberg, Nathan. Thanks Michael on Wall Street. Time for the Bloomberg Sports Update with John Sesshi. All right, Eivan Novak Djokovic was in the Australian Open. He got a medical exempt to to play his fight being unvaccinated, and then he was out and then back in and as of now he's again out. The Immigration Minister using personal powers canceled Djokovic's visa in what he called the public interest,

but Djokovic's lawyers are expected to appeal again. Then, Net said to win in Chicago when they had the Big three all on the floor for just a second time, but in Brooklyn it was only James Hart and Kevin Durant got the night off. Kyrie Irving can't play home games. Pardon scored twenty six, but no one else had more than thirteen. The Nets lost to Oklahoma City one thirty two, one on nine the mixed plate. Tomorrow in Atlanta, they

just made a trade with the Hawks. They sent Kevin Knox in the first round draft pick and got back Cam Reddish. The Rangers won three, noting at San Jose to Gore goals for Chris Pryder, who, along with Adam Fox, was just named to play in the All Star Game, the shutout for Igor Sisterkin in his return from Covid. Ilanders beat the Devil three two. Seaton Hall upset like the Pall, but first ever NFL playoff weekend with six games spanning three days. It starts tomorrow with Derek Carr

and the Raiders in Cincinnati. It's an exciting time, obviously, you know something I've dreamed of, um since I was traffed. That's all I want to do is get the playoffs China Championship, you know, and uh, you know the fact that we're in the tournament is uh, it's really cool. The Raiders have not one of playoff games with two thousand two. The Bengals last playoff win was in nineteen ninety. Tomorrow Night, New England at Buffalo expected to be bitterly cold.

Their first meeting in the playoffs. Its nineteen sixty three. Three more games Sunday, Another Monday Night. John Stash at We're Bloomberg Sports, Nathan, Thanks Sean. It's thirty seven on Wall Street. Time for the Tri State Business Report. Here's Bloomberg's head, Cory Daniel Ox sold the Manhattan apartment for about one nine million dollars just two years after buying the property for ninety five million. Source tells Bloomberg. He

purchased the Pennhouse apartment on Central Park South. In New Jersey's student loan borrowers will get over sixty million dollars in relief from a settlement with Navy INT and its subsidiary, Navy and Solutions. The payments will resolve with lawsuit filed by the state against the student loan servicing Giant. A coalition of New York businesses says the Empire State should be a prime beneficiary of federal funding for the domestic

semiconductor industry. Axios reports executives from several companies, including IBM Global Founderies, Analog Devices, and Applied Materials. We're all calling for a passage of stalled chip industry funding. They're also calling for directing a big chunk of that money to the New York region. That's your Bloomberg Tri State Business Report. I'm ed Corey thinks that it's five thirty eight on Wall Street. Bloomberg Radio is on the air from San

Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve photos Can on Chen Chen Wins in New York. We're talking about city Groups saying nine nine percent of its employees have complied with the company's vaccine mandate. I'm Gourney Donahoe on kf Babian Omaha trucking, farming and heating will get more costly as diesel surgeons.

I'm Karen Chase and for w BBM in Chicago, I'll be reporting on American and Delta airlines trimming a flight schedules do to a pilot pinch. I'm Tom Mackenzie on Bloomberg d a B Digital Radio in London. We're reporting on a surprisingly strong November g d P print, which means the UK economy has now surpassed pre pandemic levels for the first time. I bed Dory on w w jays Destroid. I'm reporting last year's record high carpwriters won't

be dropping zoon. Those are some of the stories our Bloomberg journalists and analysts are working on this morning around the world. Midst five nine on Wall Street. The following is an editorial from Bloomberg Opinion. Temperatures in Alaska reached record highs in recent week, while researchers warned that a major ice shelf in that Arctica could collapse in just a few years time. These are signposts on a grim path.

They show that damage to the criosphere, the portions of Earth's surface where ice predominates, is happening faster than many people expected. Unfortunately, melting glaciers and thine permafrost themselves worse than climate change, creating terrible feedback loops. After a year of climate promises, two must be a year of action,

particularly in the Arctic and the ad Arctic. Cutting global emissions is of course essential, but policy makers should also investigate large scale technological interventions that could help slow runaway warming at the world's poles. Such efforts could at least weaken those feedback loops and by crucial time for emissions reductions to take hold. This editor 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 and go on the Bloomberg Terminal. This has been Bloomberg opinion and you can hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at O, P, I N go. Right now, SMP futures are up five points, down futures up seventy five. Dance deck futures have turned

to touch lower. They're now down three points as we await bank earnings get a preview next with Bloomberg's global financial correspondent Shinnali Bassek. This is Bloomberg Bloomberg eleven three oh weather partly sunny, breezy, low forties today, mix of sun and clouds. Tomorrow low twenties for highs late day. Snow arrives Sunday with a high in your thirty five currently forty degrees in Central Park. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com,

the Bloomberg Business app, and at Bloomberg Quicktake. This is a Bloomberg Business flash and I'm Karen. Moscow and Europeans stocks are following Asian shares lower after a slew of Federal Reserve official signal Bell combat in inflation aggressively. Right now, SMP futures are higher and NASDACK futures are a little changes after the nasdack felt to its lowest level since October. We checked the markets every fifteen minutes throughout the trading

day on Bloomberg. SMP future is up about six points down, futures up seventy nine NASDACK futures that will change the dacts in Germany's down six tents of upper cent tenure Treasury down eleven thirty seconds, yield one point seven four percent. That yield on the two year point nine three percent nine x screwed oils up one point one percent of ninety two cents at eighty three dollars four cents of

barrel comexs. Gold is little change at eighteen fifty announced the euro one point one four or five nine against the dollar, British found one point three seven three two and the end at one thirteen point nine zero and Bitcoin this morning moving lower at forty two thousand, four hundred dollars. Such a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world.

Michael Darren, thank you very much. President Joe Biden is all about conceding defeat for this year on the Democrats big elections in voting rights legislation by spoke at the Capitol after a key fellow Democrat, Senator Kirsten Cinema of Arizona, dramatically announced a refusal to go along with changing Senate rules to muscle past the Republican filibuster. Tennis star Novak Djokovic faces deportation again after the Australian government revoked his

visa for a second time. Immigration Minister Alex Hawk said today that he used his ministerial discretion to revoke Djokovic's visa on public interest grounds, three days before the Australian Open is to begin. Djokovic's lawyers are expected to appeal. In the NBA, the Nets and Warriors lost in the NHL,

The Islanders beat the Devil's, the Rangers and Bruins. One Global News twenty four hours a day on air and on Bloomberg Quick to take Power by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan alright, Michael, thank you. It's five forty nine on Wall Street Live from the Bloomberg Interacted broker's studios. This is Bloomberg Daybreak on earnings

kickoff Friday. Fourth quarter results from the first three of the big six Wall Street banks come out this morning. And here with us now someone who's gonna be watching those headlines very closely. When they crossed the Bloomberg terminal in mirror hours. Bloomberg Global Financial correspondent Nale Bassic is with us this morning. Socianale, JP Morgan, Chase, Wells Fargo, City Group getting ready to report here. But really for all the banks, it's about the return of loan growth, right, Yeah,

that's the main macro story. But every bank is so so different. Remember when it comes to City Group and Wells Fargo, they have been grappling with regulatory issues and they have key changes that they want to make to their business. City Group is exiting certain regions around the world. When it comes to certain types of businesses like retail, that's a costly endeavor that comes with termination fees and other restructuring chargers, so that will last into this year.

While they will also be expected to give some updates and what buybacks will look like. Wells Fargo will also be expected to give some updates on what their cost pressures look like. The headcount has been going down for a while, whereas over JP Morgan, which will be the first likely to report this morning, we are expecting that their investment, banking and trading numbers, even in a moderating environment, are expected to be quite high, and the headcount has

been rising. So it's a lot of different stories going on. Even with some of these very traditional consumer businesses coming back and the prospect of making more money off of loans in higher interest rate environment. Yeah, a lot of different storylines to thread through here, starting off with JP Morgan, though, Shannali,

let's start there. Such a big year was in terms of deal making M and A. Is that somewhere that JP Morgan could really shine when results come out, truly, because you know, it's funny because Goldman Sachs is normally last five years in a row at least the number one in advisory for merger's acquisitions related trans actions, and JP Morgan and Morgan Stanley have really been duking it

out for number two. JP Morgan has been number two lately and number one when it comes to debt underwriting, which has been a record business as well on Wall Street. So there's a lot to like there. There's a lot of fees that are coming in in those businesses. So that's why I say, even though the consumers a big story and how long it will take to rebound, investment banking is still definitely bringing in loads and loads of money on Wall Street and JP Morgan is a key

beneficiary of that. And you mentioned the regulatory risk still surrounding walls, Fargo and City Group. That plays a lot into I think we're going to be listening for really closely when it comes to the outlook for all the banks when we're getting into an environment where the FED is pulling back support, the prospects of higher interest rates and what that could mean for the US recovery going forward. Yeah, absolutely,

and and the global recovery. Really you look at a thing like City Group and it's exit from Mexico and the government really assuring their their citizens that you know, they will have banking services and access to their funds. You know, it's a big move to have these big banks reshape around the world and the fashion that they're doing so and choosing the more profitable regions to operate in.

With that said, you're seeing the big getting bigger JP Morgan, Goldman Sacks expanding heavily in Europe and around the world, whereas UM and also making a lot of acquisitions, where as you're seeing City Group really start to reshape and retreat from certain regions. Now last minute here, Shinali, what

about cost overhang. There's been so much more spending just getting top talent back to their desks and there's still the question of whether they're actually going to be able to physically be at their desks with a macron hanging

around exactly. It's a sticky balance for the banks because on one hand, the costs tied to employees are going up, but the cost tied to technology will be significant, and we expect that the bank executives will create a lot of discipline around telling investors that they need to be spending, that they need to be more comfortable with spending more to stay competitive, and that the technology costs will become

a priority in some cases ahead of talent. It's gonna be a very interesting earning story to pass through here Bloombridge. Shinnali Bassek, thanks for the preview as we get ready for JP Morgan, the first out of the gate for the Big six reporting fourth quarter results this morning just before seven Wall Street time. We're expecting those numbers, followed by Wells Fargo around seven am, and City Group reports its results at eight this morning. We'll have full coverage

for you throughout the day here on Bloomberg Radio. Karen Nathan, it is five or fifty four on Wall Street, and let's take a closer look at the view from the FED. Now we're hearing a course of officials at the Central Bank talk up the prospect of three, four, or even five interest rate hikes this year. FED Governor Christopher Waller is among those, saying as many as five increases is possible. He spoke late yesterday with Bloomberg's Kathleen heyes, so let's

listen into that conversation. Now, three hikes is still a good baseline. We'll have to wait and see what inflation looks like in the second half of the year. If it continues to be high, the case will be made for four, maybe five hikes. But if inflation falls back and the second half of the year is many of us think it will as some supply chain issues get sorted out, then you could actually pause and not even

go to the full three. So it really is going to hinge on the inflation data the second half of this year. But yeah, you can't rule these things out. Is It's sort of like do whatever it takes, especially if you don't see inflation is starting to respond after you do, say the first three rate hikes, going for four and again you just said going for five maybe, Yeah, I mean that it really depends on what happens with inflation.

I mean, if inflation just is stubbornly high through the first part of this year, first half of this year, we're gonna have to do a lot more. But that's what that's our job, and that that's what we're committed to do, and if we have to do more rate hikes, will do it. We also have the balance sheet. We can start letting the balance sheet run off earlier. That will take some pressure off longer in rates and also lead to a tightening of policy and removing some accommodation.

Could you see conditions where the Fed might do a fifty basis point rate hike this year? That hasn't happened in a long time, but to see if you want to impact inflation, maybe even inflation expectations, could you see a fifty basis point rate hike in the mix? I certainly, even though I kind of as the datas come in, I still favor March lift off. I don't see a fifty basis point hike in March. We have not prevared

markets for anything that dramatic. One of our key themes has been not to surprise markets given well enough advance in terms of what we're trying to do, and a fifty basis point move in March would really be a shock. So I don't see. I can't speak for the committee, I can only speak for myself, but I really don't see a fifty basis point hike in March down the road.

If inflation just does not look like it's coming down, it would certainly be in the tool kit, but it would take a lot for us to move in that direction. If that hasn't done a fifty basis point rate hike in a long time. Do you have a target rate for inflation now? Will you have a sense of one you'll know you've done enough to rain in inflation and to say, okay, we can at least pause now and see what we're doing. How what kind of guidance can

you give on that? Well, like I said, uh, if inflation has stayed higher for longer than any of us thought it was going to we still have a lot of expectations that inflation pressures will drop off in the second half of this year, and my own view as inflation would be probably by the end of the year down around two and a half percent um. And then once you get to that point, it's it's not as pressing to UM to do a rapid number rapid rate hikes.

If you get inflation back down to the two and a half number by the second half of the year, then I think by three it'll move closer to our target and that will take a lot of pressure off having to raise rates. And as feder Reserve Governor Christopher Wohler speaking with the Bloomberg's Kathleen Hayes. Catch the full

interview online at Bloomberg dot com. Checking futures right now, SMP futures are up seven points down, futures up nine d and nastacks features a little change the decks in Germany's down sixtensive upper set ten year treasury down ten thirties seconds. He at one point seven four percent and the yield on the two year is at point nine two per cent and still ahead. On Bloomberg Daybreak, check on the business headlines and all the news you need to start your day. And this is Bloomberg