Bloomberg Daybreak: January 14, 2022 - Hour 2 (Radio)

vaccine mandate. New Jersey Governor Murphy signs an abortion rights bill in the state, plus a push to eliminate the Philippus to rule is all but dead in the Senate. Michael barn more ahead, I'm done stas Sharon sports the next lost the Rangers one, the Islanders beat the Devils that in Australia, Novak Djokovic had as visa taken away again.

That's all straight ahead on Bloomberg day Break on Bloomberg Elimen Rio, New York, Bloomberg one, Washington, d C, Bloomberg one, O six one, Boston, Bloomberg nine sixty, San Francisco, Syrius x M one nineteen and around the world along Bloomberg Radio dot Com and via the Bloomberg Business Set. Good Friday morning, I'm Nathan Hagar and I'm fair in Moscow, and US futures are higher. This morning, I had a

big bank earnings. 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, SNP futures or upper body points down futures up ninety two. Nasdack futures are that will change the decks in Germany's down sixtentsive upper set ten. Your treasury down eleven thirty seconds, yield one point seven four percent, and they yield on the two year point nine three percent. Nathan Karen, We're

coming off another day of declines on Wall Street. The tech heavy NASDACK posted a loss of two and a half percent 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. Lole Branard 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 the comments in an interview with Bloombergs Kathleen Hayes. He joins FED chiefs Patrick Harker and Jim Bullard, who have also floated the

idea of four 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. So Charles Evans will be watching that PC inflation data closely. We get the next reading on that at the end of this month. While Nakan, the White House has set to add some new faces at the FED. Now, President Biden as selected as picks to fill open sea to the Central Bank, and Bloomberg's Rneda Young joins us live with the lightest Good Morning Renda,

Good morning Karen Bloomberg. Sources say President Biden is planning to nominate Sarah bloom Raskin to the fits top banking regulator spot. He'll also announce economists Fellow Philip Jefferson and Lisa Cook as picks for governors. Cook would be the first black woman on the Fed's board and Jefferson would be the fourth black man. The picks would help Biden keep his promise to improve diversity at the Central Bank.

His nominations would also 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 re need a Young Bloomberg daybreak, and we need a thanks. We get more data for the FED to didjust this morning. Retail sales figures for December or due out at eight thirty am all Street time. Let's get a preview now from Bloomberg's Michael McKee. The o Macron variant will weigh on the retail sales numbers as many ours 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 sporting goods and clothing. Americans incomes were bolstered by 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, Michael, thank you. Earnings also come into focus today. Big banks kick off the season with results droughout. This morning Bloomberg Global Finance Correspondence and Ali Bousak 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 at Citigroup 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. Well as Fargo in City Group have regulatory risks as well that investors will want updates on.

In New York, Sali Basic Bloomberg Day Break, Shinali thanks now untill the latest on the pandemic and a major legal setback for President Biden. The Supreme Court has blocked his rule that would have required 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 President laid out. You know, is this a setback. I wouldn't take the step back if it

should 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 to the ninth 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. Well, when it comes to action NATed employees, Nathan City Group

is out with it to data the banks. It's US employees have complied with its vaccine mandate, and the bank expects more workers to 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 is 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 they're they're in a really important tool. President Biden says, I'll have a formal announcement on distributing masks next week. Turning to

the markets now, Nathan Crypto is in focus today. Doage coin searched as much as fifteen percent this morning after Elon Musk said it can be used to buy Tesla Merchandise. Musk is a frequent booster of doge coin on social media and as hinted at the move for some time.

And Tiger Woods is in financial news this morning. Karen, a blank check company backed by the golf Stars, filed to raise a hundred fifty million dollars in an I p O. The 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. Tiger Woods is the lead investor in the special purpose acquisition company. Straight ahead your latest local headlines in the check of sports.

This is Bloomberg. And at six oh seven on Wall Street where forty degrees in Central Park, we had a broken down vehicle on the way to Kennedy Airport westbound Belt Parkway under the Van Wick. Details coming up from Peter Van First. Michael Barr is here with more on what's going on in New York and around the world. Come Michael, Good morning, 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 of his

position to keep kids learning in person. Despite a surge in COVID cases. We want to provide the safest place for our children, and we want to have our children in school, Adam says, though a substantial number of Chill Dren'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 a 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 the 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 said. 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 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 rank group the oath Keepers, were charged for 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 charges.

Global News twenty four hours a day on here and on Bloomberg quick Take, powered by more than twenty seven under journalists and analysts. More than twenty countries. I'm Michael Barr. This is Bloomberg Nathan. Thanks Michael, coming up to a six ten on Wall Street. Time for the Bloomberg Sports Update with John Statshop acts Dathan. This Novak Djokovic story is like when fans watch him play tennis. In their

head goes back and forth. Last week, Djokovic, despite being unvaccinated, received a medical exempt you to play the Australian Open. He flew to Melbourne and promptly had his visa taken away. There was a mistake in the pay for work. Monday had Judge reinstated it. Now the Immigration Minister, acting in what he called the public interest, removed the visa again, and now Djokovic's lawyers are said to be planning another appeal.

The tournament that Djokovic has won nine times against Monday, nets off the Big One in Chicago, gave Kevin Durant the night off. Kyrie Irvan can't play home games show enough. Nets lost Oklahoma City one to one. On nine, Nicks made a trade set to seldom used Kevin Knox to the first round draft pick that originally belonged to Charlotte to Atlanta for Cam Reddish who the Hawks touff with a tenth overall pick a few years ago. He's only

twenty two. Will be reunited with r J Barrett. They were teammates and Duke Nick's play in a lamp top Tomorrow Rangers in San Jose. The newest Ranger helped outfid Eric keeps it alive, slodes it over to Headle Eatle for strong strolling all the goal live back out for a shot score. The Rangers get the first at h Hill goal for a braided snider. It is a Hill debut and they don't have a two topic lead over the Shark GPN call. Rangers won three nothing. Chris Cryder

scored the other two goals. He's got twenty three on the season, the fourth most in the NHL. The Islanders, on a Matthew Barzel goo with five minutes left, beat the Devils three two. Seaton Hall lost nineties ninety two at Devaul who came in oh and five in the Big East John Dash down were Bloomberg's spots all right, John, thank you right now. S and P futures are up

eight points, Staff futures up a hundred. NASTAC futures are higher by five points now, the taging your treasury down eleven thirty seconds, the yield one point seven four per cent. You're listening to Bloomberg Daybreak Bloomberg eleven three O. Weather. It'll turn partly sunny and breezy today with highs in the low forties, low twenties for highs tomorrow, late day snow Sunday with highs near 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 Out and at Bloomberg Quicktake. This is a Bloomberg Business flash and I'm Karen Moscow. European stocks are following Asian shares lower after a slew of Federal Reserve officials signal they'll combat inflation aggressively. Uh SMP futures are moving higher. Nowsday futures are little changes after the nounsday fell to

its lowest level since October. We checked the markets every fifteen minutes to have the trading day on Bloomberg. SMP futures up about points down, futures up nine nine nasdack future is again little change. The decks in Germany is down sixtensive upper cent ten year treasury down twelve thirties seconds. He had one point seven four percent. They yield on

the two year point nine three percent. Nive X screwed oil is at one point four percent of a dollar fourteen at eighty three dollars twenty six cents of barrel called mex School. Little change in eounce, the Euro one point one four or five eight against the dollar, British pound one point three seven three two and the ends at one thirteen point nine too. And Bitcoin this morning moving lower. It's just under forty two dollars right now.

Earnings today, we're watching for JP Morgan, Chase, City Group and whilst Fargo, and we're gonna look at December retail sales at eight thirty Wall Street time. That's a Bloomberg business flash. Now here's Michael Barr with Moore un what's going on around the world, Clachael, thank you very much, 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 Kristen Cinema of Arizona dramatically announced to reap usal 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 Hawks 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 aren't expected to appeal. In the NBA, the Nets and Warriors lost. In the NHL, the Islanders beat the Devils, the Rangers and Bruins. One Global News twenty four hours a day on here and on Bloomberg Quick Take, powered by more than twenty seven under journalist and analyst

and more than one hundred twenty countries. I'm Michael bar This is Bloomberg. Nathan all right, Michael. Thanks at six nineteen on Wall Street Live from the Bloomberg interract of Broker Studios. This is Bloomberg Daybreak. We want to get to the latest on the pandemic now and check in with Dr Andy Peckosh, Professor of Molecular Microbiology and Immunology at the Johns Hopkins Bloomberg School of Public Health. Dr. There's a lot of research into the O macron variant

that I want to get to this morning. But first i'd like to get your reaction to the Supreme Court ruling against President Biden's vaccine mandate for large businesses. What's the effect that this uh legal setback for the president could have. Well, you know, we know here in the US we've been struggling to get vaccine acceptance up to levels that would you know, really make a big impact in terms of the surges and hospitalizations that we're seeing

every time a variant comes through the population. So you know, from a purely sort of public health standpoint, it's, uh, it's a disappointing decision. You know, these vaccines are safe, these vaccines are effective, and they are an incredibly important, i'd say critical tool to get us through this pandemic.

And again to to to to take something off the table that would help us get more people vaccinated, it's just not the right thing to do from a public health perspective, at least it's not entirely off the table though, right, I mean businesses can still mandate vaccines on their own. Can that get us to enough of a level where we can start to feel like we're getting ahead of

the pandemic? Absolutely? I think this now sort of puts the onus on the particular business, and depending on which state you're in and what kind of business you are, there will be varying rates of of of moving this into into applications. So you know, a government mandate would allow for a larger, more widespread utilization of the vaccines.

It now puts things back into the individual businesses um responsibility, and therefore we're probably not going to see as much of an uptake of this policy as we would if it was a government mandate. And the time we have, I want to get to some of this research there. Like I said, there has been a lot into a macron.

There's a loose study out of South Africa which has put out so much of the research over the last several weeks that this drain is less severe even for unvaccinated people or people who have never been infected with COVID before. Can we say now that, oh, macron is indeed less severe. I would be very careful in terms

of how we view less severe. Remember, we're starting from a disease that's pretty severe, so coming down a little bit from a less from a severe disease doesn't put us in the category of things like the common cold or something like that. And UM, I guess the counter to that is the vast majority of people who are being hospitalized are people who haven't been vaccinated. So if you're not vaccinated, I wouldn't view a macron as being

a easy way to get some immunity. Um, it's still a very severe disease in terms of its potential, but again the positive side is it's not as severe as other variants that have come through. Um. The vaccines are working well against preventing severe disease, so certainly, UM, we're in a better situation now in terms of preventing that severe disease. You know, the problem, of course, is just a number of mild or less severe cases are just swamping our systems and affecting our economy in a very

adverse way. Now we've seen related to that just how fast O macron spreads. There's also a study out of the UK that talks about how COVID can become less infectious the longer it stays in the air up to less effective after twenty minutes. What's your reaction to that. Yeah, this is such an important point because we know that all macron in particular UM is spreading more effectively. So anything we can do to study how we can limit

that transmission is really important. And understanding airflow, how long these virus particles stay in the air and how long they're infectious, is really going to feed into things like air flowing rooms and how quickly you need to turn airflow over in order to limit transmission. If another tool in our battery to prevent transmission that allows us to go back to things like work in school with a higher level of safety. So really important work and needs

to be implemented more broadly. Thank you as always, Dr good having you on with us this morning. Andy Pecos is Professor of molecular Microbiology and Immunology at the Johns Hopkins Bloomberg School of Public Health, which is supported by Michael Bloomberg, the founder and majority owner of Bloomberg LP, the parent company of Bloomberg Radio. Right now, SMP futures are up six point STAFF futures up ninety NASDAQ futures swinging between gains and losses after the two and a

half percent dropped for the NASDAC yesterday. NASTAC futures right now are down four points, the tenure treasury is down eleven thirty seconds, the yield one point seven four percent, and the yield on the two year right now zero point nine three percent. Just ahead, more calls for faster rate hikes and a preview of bank earnings as we check the five things you need to know to start

your day. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather partly sunny, breezy, low forties for highs today, will have a mix of sunning clouds tomorrow, with highs only in the low twenties. Late arriving snow on Sunday. Right now forty degrees in Central Park. Broadcasting live from

the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Free on to Washington, d C. Bloomberg ninety one to Boston, Bloomberg one All six one to San Francisco, Bloomberg nine sixty to the Country, Sirius XM Chado one nine team and around the globe. The Bloomberg Business Apt and Bloomberg Radio dot com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. I'm Nathan Hacker and I'm Karen Moscow, and we are just about three

hours away from the open of US trading. It is time for the five things you need to notice start your day, brought to you by Interactive Brokers Global Analyst. Global Analysts helps you find new global investment opportunities to diversify your portfolio and discover undervalued companies. Try Global Analysts today at ib k R dot com. Slash g a up first futures, while S and P futures are higher following yesterday's sell off. The feds push for higher interest

rates 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 to 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.

FED Governor Chris Waller tells Our Kathleen Hayes he sees a scenario where the FED raises rates as many as five times this year. Let meantime, Karen, the White House is set to add some new faces to the FED. Bloomberg's Renia Young joins us Live with the latest. Good morning, Rinina, Good morning, Nathan Bloomberg. Sources say President Biden is planning to nominate Sarah bloom Raskin to the FITS top banking regulator spot. He'll also announce economist Philip Jefferson and Lisa

Cook as picks for governors. Cook would be the first black woman on the FENS 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 gonna need a Young Bloomberg day break, All right, Reneda, thank you. We get more data from the FED to digest this morning. With retail sales figures for December, Economists forecast a monthly decline of one tenth

of upper cent. Today also marks the unofficial start of earning season. Karen, we get results from three major banks this morning, Bloomberg's Larry Kowsky has a preview. Loan growth, 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 may be a highlight for

JP Morgan. According to Bloomberg Intelligence, Wells Fargo is expected to show a modest rise in net interest income borrowing growth. Its card business will be in focus at City Larry Kowsky Bloomberg Day brick Hery, Larry, thank you, and turning to politics now is a major setback for President Biden's vaccine mandate. The Supreme Court has blocked a rule that would require large companies to require vaccines or weekly testing for employees. And that's the five things you need to

notice start your day. Brought to you by Interact your brokers. Also this headline crossing the Bloomberg a black rock reporting assets under management that beat analysts estimates. And a straight ahead your latest local headlines, plus a check of sports. And this is Bloomberg sixty three on Wall Street, thirty nine degrees in Central Park and slow getting to Kennedy Airport with a broken down vehicle on the westbound Belt Parkway. Michael Barr has more on what's going on in New

York and around the world. Good morning, Michael, Good morning Nathan. New York City Mayor Eric Adams is considering allowing the nation's largest school district to return to some form of virtual instruction as the city whether is a wave of coronavirus cases. That would be a reversal from his pledge a week ago to keep children in schools. Adams says that he still believes the safest place for children to be is in school, but that there are a number

of substantial children missing classes. I am working closely with the UH President of the UFT. I think that people that's surprised to see how well we're doing. Uh. 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. A communal funeral for seventeen victims of New York City's deadliest fire in years has been planned for Sunday, the week after the blaze and the Bronx high rise. The services to be held at the Islamic Cultural Center in the Bronx. Funerals began Wednesday with the service at a Harlem mosque for two children, both for two victims, both children. 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. Murphy signed the bill as a Supreme Court ruling could come in June in a case 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 Kristen 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. Rep were sending a

broader cross section of Americans. 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 Take, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg Nathan. Thanks Michael. Almost six thirty six on Wall Street time for the

Bloomberg Sports outdate with John Stashunathan Novak. Djokovic was in the Australian Opening, got a medical exemption to play despite being unvaccinated. Then he was out, then back in. As of now he's again out. The Immigration Minister, using personal powers, canceled Djokovic's visa and what he called the public interest,

but Djokovic's lawyers say they will appeal again. And then that's had to win at Chicago and they had the Big three all on the floor for just the second time, but in Brooklyn it was only James Harten Kevin Durank got to night off Kyrie Irving can't play home games hard and scored six. No one else had more than thirteen. Then that's lost to Oklahoma City one thirty till one oh nine. Next played tomorrow in Atlanta. They just made a trade with the Hawks. They sent Kevin Knox in

the first round draft pick for Can Reddish. The Rangers won three nothing at San Jose. Two more goals for Chris Cork criter, who, along with Adam Fox, was just named to play in the All Star Game. The shutout for Igors to Skein in his return from Covid. Islanders beat the Devil three to two. Seaton Hall upset by De Paul. 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. Um, obviously, you know something I've dreamed of, um since I was drafted. That's all I want to do is get to the playoffs, try and win a 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 won a playoff games in two thousand two of the Bengals last playoff win was in nine nine Tomorrow night in New England at Buffalo, expected to be bitterly called their first beating

in the playoffs. Inst three three and more games Sunday another one Monday night, John stat were Bluebird Sports. Nathan all Right, John, thanks 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 corresponded Creedy Goofta on this bank earnings Friday. Creedy, you're starting us off with casino stocks. A little bit of a gamble, Nathan. One and last, my one and

only punt of the day. I promise, yeah, they I promise. I promise for the sake of our listeners. US listed casino stocks. They are rising in the pre market. This coming after the ones operations in Macau have looking are looking good after the announcement of much anticipated changes to the local casino law that was being aimed at tightening

government oversight at the world's largest gaming market. So now it looks like there's gonna be a little less regulation when it comes to those operations, and for that reason, you're seeing the likes of Win Resource w y n N is your ticker up eight percent. Same story with Las Vegas AND's LVS up inst tune of a nine point four percent. Melco as well, m l c o s ticker up over ten percent. The question is doesn't say that way throughout the day. It's not confirmed yet.

These are only expectations that are driving the stock up, but we are waiting to see those developments. Of course, we know they have been under a lot of pressure given that regulatory stance from Beijing. Moving on to some of the banks, because that's really the big story of today, It's gonna be those earnings coming out from JP Morgan at the top of the hour, City and Wills Fargo also looking to report, and they those docks are higher in the pre market ahead of those numbers, and they

have been higher Nathan for a while now. A lot of the expectation of higher lending growth, higher volatility that will help those trading us and of course the rate high bests that are pushing yields higher, which means that those banks are gonna be making more on the loans that they give out. So JP Morgan, for example, JPM is your taker up one percent, in the pre market. City and Wells Fargo up by about the same amount.

C and w f C are those two tickers, Nathan, Yeah, we'll see if the earnings bolster the investors sentiment there. What about some downside movers this morning? Yeah, Well, let's talk about Corning here. This is a communications equipment make here, dropping after Deutsche Main cut its recommendation on the stock to a hold from a bye, citing overly optimistic Wall Street estimates. Nathan, that seems like a reason that could apply to a lot of different stocks, but this one

chose Corning. G l W used the taker down two percent. And I'll wrap it up here with data processing company five Serve f I s V, down one percent in the pre market after it's being was downgraded to a sector weight from overweight over at key Bank Capital, the analysts saying that despite optimism around the management team and general strategy, he's looking for improved visibility into sustained high

single digit organic growth. Essentially, he's just waiting to see that the company makes more money before he gets more constructive on those shares, all right. Bloomberg Radio and TV Markets correspondent Crety Gupta with the pre market update, and as we take a look at stocks as a whole ahead of the open. Futures are mixed. SMP futures up three points right now down futures up, NASTAC futures are lower now by twenty two points. The tenure Treasury down

twelve thirty seconds, the yield one point seven. Watching shares of black Rock this morning, they're down seven tenths per cent after reported assets under management that beat the average analyst estimate. Stay with us for an update from the nation's capital with Bloomberg Government's Emily Wilkins. This is Bloomberg Bloomberg eleven three oh weather partly sunny, breezy, low forties today.

We'll have a mix of sun and clouds and highs only in the low twenties Tomorrow later arriving snow Sunday with a high your thirty five currently thirty nine degrees. 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 JP Morgan earnings are crossing the Bloomberg We're gonna have full details in just a moment, but first we go

to the first word, breaking news. Dask for today's morning call. Here's Bill Maloney, Bill, good morning, Hey, good morning, Karen. US features are mixed right now. Is those bank earnings do begin if you just currently up seventy five points? Says, it means are up two and a half. Well, the nasdec features are down by twenties six. The US chen yield at one point seven five percent, Gold is down to oil is trading higher, and bitcoin is down by

two point one percent. Japan fell one point three percent overnight, while up markets are also in the red this morning and back in the US. On the economic Funday thirty retail sales and at ten o'clock business inventories and Michigan sentiment. After about last night, SAP cloud sales beat estimates and regarding those earnings this morning, black Rock EPs beat estimates. You mentioned JP Morgan the digits report Q four adjusted revenue was thirty point three five billion estimate there was

thirty point oh one billion. Also look for City Group and Wells Fargo to report in the pre market. Wrapping things up, BJ's wholesale cut to underweight at JP Morgan, Chipotle was raised to overweight at Morgan Stanley and four who has cut the sector perform over at RBC Live from the First Breaking News Desk on bo Maloney. Karen, all right, Bill, thank you, and here live breaking news of her Bloomberg type squawk on your termin I'll ascue

you a w K and that's a Bloomberg business flash. Now, here's Michael Barrow with Moore on what's going on around the world. Michael, Karen, thank you very much. 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 Kristen Cinema of Arizona, dramatically announced a refusal to go along with changing Senate rules to muscle past a 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 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 long 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 undred journalists and analysts more than twenty countries. I'm Michael Barr. This is Bloomberg. Karen, all right, Michael Barr, thank you. We're also hearing from Wells Fargo with fourth quarter revenue beating analysts estimates, and we're going to get

more and those bank earnings in just a moment. First sixty nine on Wall Street returned to News and science and Technology Now with the Bloomberg n j I T STEM Report. It has brought to you by New Jersey Institute of Technology, which announced that renowned scholar and educational leader Dr Tech Lam will join the university as n j I T S nine the President. Learn more at n j I T dot E d U. Now Here's

what's making news and science, Technology, Engineering, and math. City Group says that its U S employees have complied with its vaccine mandate, and the bank expects more workers to comply with the order before today's deadline. City's mandate is one of the strictest on Wall Street and makes getting the coronavirus vaccine at condition of employment. Google is making a bet on hybrid work. The company said it will spend one billion dollars to buy up its own London offices.

The purchases a bet by Google that tech workers who have been among the keenest to work from home but want to move back into the office, at least temporarily. And scientists say a four billion year old meteor ride from Mars that caused us splash here on Earth decades ago contains no evidence of ancient primitive Martian life after all.

Researchers say tiny samples from the meteor rides show that carbon rich compounds are actually the result of water, most likely salty or briny water, flowing over the rock for a prolonged period. The findings appear in the journal Science. And that's the Bloomberg n j I t STEM Report. Nathan Okay, Karen, thanks for live from the Bloomberg Interactive Brokers studios, where it's coming up to six fifty one on Wall Street. As we continue to watch Bank earnings

across the Bloomberg terminal. It's time now to check what's going on in d C, where some of the top stories include President Biden casting down on his own push for a voting rights bill, the vaccine on is shifting to businesses after the Supreme Court block the president's mandate, and the final three pieces of the president's federal reserve overhaul apparently falling into place. Also making news, the President's about to mark sixty days since he signed the bi

partisan infrastructure law. Let's bring in Bloomberg Government reporter Emily Wilkins for the update from Washington, d C. So, Emily, it looks like the President is going to be ending another tough week politically with a pivot back to infrastructure this morning. Yeah, this has probably been the toughest week for Biden of his presidency. Um, just so many things that that are just not looking good for him and

leading to a pretty low approval rating. So Biden is gonna pivot back to one of his few victories, that infrastructure bill. He's expected to announce today that the administration will distribute more than five billion dollars to repair or a place where does across the US that's funding that's gonna wind up going to states and tribes who will

then be allocating it to specific projects. But it's one way for the White House to try and highlight something positive in a week that saw the Supreme Court rule against Biden's vaccine mandate, that saw you know, COVID cases continue to rise, inflation continue to rise, and uh, and the Voting Rights Act hit a wall in the Senate. Yeah, let's talk about that wall that got hit in the Senate. I think we can put a name on that wall.

Kirsten Cinema, I mean Kirsten Cinema and Joe Mansion. I mean, if they want to pass this rule, they need sixty votes. Even with this legislative maneuvering that they've done that allows Senators to actually start debate on the bill, something that hasn't happened with previous voting rights legislation that Chuck Schumer's tried to bring up. They're still not going to find

a way to passage. And and last night Schumer scrapped the plan to have them stay in on Monday and do this debates that everyone can go home until Tuesday when they come back. And so at this point, yeah, there's there's really doesn't look like a path forward. Biden even said yesterday admitted so much, saying telling reporters that he just wasn't certain that it would be able to get done and just quickly. Emily. The other big setback yesterday for the president came at the Supreme Court on

vaccine mandates. Yes, Supreme Court they blocked with one of the center pieces for Joe Biden's push to get more people vaccinated. This was the mandate on businesses with a hundred or more employees, saying that they would have to require their employees to either vaccinate or get tested regularly.

The court struck that that down. They did let a separate rule stand that requires vaccinations for workers in nursing homes, hospitals, and other areas that receive Medicare and Medicare Medicaid funding from the federal government. All right, Bloomberg Government reporter Emily Wilkins with us from Washington, d C. Go to Bloomberg dot com or the Bloomberg terminal to read more about

all these stories from the nation's capital. But we want to pivot back now to bank earnings, because we've gotten couple two of this Big six reporting their fourth quarter results. Let's break them down now with Bloomberg Intelligence Senior banking analyst Alison Williams. Very interesting to see the divergence in the stock now with j AP Morgan falling in the pre market after reporting an earnings beat, while Wells Fargo

is really getting rewarded right now. Allison, Yeah, and we're trying to access the numbers as quickly as we can because I do think that lone growth is an area that we were looking for in the quarter. We're wondering if, um, if there was some disappointment in the JP Morgan numbers. We haven't been able to get them yet. But we do see that the investment bank looks strong. That's something

that we expected. They did beat the revenue estimates there, equity trading coming in about in line, sick trading coming in about in line, so it looks healthy. Charge us credit also looks healthy. We also reserve releases in the quarter. That's something that we've seen throughout the year, the bank continuing to beat those estimates. UM. So overall, the headline numbers look good, but we're wondering if the if they um the guidance is a little bit disappointing. We haven't

been able to pull that up yet. JP Morgan's CEO, Jamie Diamond is reacting saying the economy continues to do well despite O macron headwinds, credit continues to be healthy. Uh. The outlook for the banks, what are you going to be looking for when the calls come around later this morning. Well, the one of the key things we're looking for is expenses and what the expense guidance is for this year.

We've had a lot of clues into the positive macro environment, so interest rates is something that's going to help the banks, Uh, coming in with the increases that we expect from the said this year and next year. UM, but we don't know yet how the bank is planning to invest in its business. We think that's a long term trend, but obviously higher expenses mean less profitability in the near term.

What interesting red headline generated by JP Morgan's results one point billion dollar net credit reserve release, is that something that was expected. Well, it's much bigger than I expected. UM. So, as you recall in when the pandemic hit in just given the massive amount of uncertainty around the expectations of what that would mean for credit, we saw the banks take really sizeable provisions and now we've seen those released and so that's that's a bigger number than we had

expected for the fourth quarter. Um Again, a lot of that relates to accounting, but it is a positive signal that the economy is good and that their customers are healthy. So so that's a good thing, all right. Bloomberg Intelligence Senior analyst Alison Williams will let you get back to parsing those headlines from JP Morgan, Chase and Wells Fargo as they continue across the Bloomberg terminal. Also stick around

with Bloomberg Radio throughout the day. We're expecting results from City Group in just about an hour, as well as fourth quarter bank earning season and really gets rolling here and just checking the shares ahead of the open. Wells Fargo being rewarded with a gain of one point six percent in early trading, while JP Morgan is lower after its results just beat analyst estimates on the top line, but fixed sales and trading came in with a miss.

JP Morgan shares down right now one in the third percent. As for the broader market, SMP futures are little change Dow futures up thirty five points. Danstack futures are down twenty points. The tenure Treasury is down ten thirty seconds, the yield one point seven three percent. Much more analysis of the bank earnings and more coming up on Bloomberg Surveillance straight Ahead for Karen Moscow. I'm Nathan Hagar, Happy Friday. This is Bloomberg