Bloomberg Daybreak: January 19, 2022 - Hour 1 (Radio)

are falling in New Jersey. I'm Michael varn More Ahead, I'm John stash Our in sports, Second day of the Row and Nick's old Last Minnesota one by two the Islanders one in a shootout. That's all straight ahead on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nineteen and around the world. Don Bloomberg Radio dot Com and

via the Bloomberg Business Stor. Good morning, I'm Nathan Hagar and I'm Karen Moscow and US futures are higher, rebounding from a sharp sell off over night. We're coming up to five oh one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP Future is up seven points at owth Future is

up twenty nine. Nasday futures up fifty two. The decks in Germany's up about two tenths of uppercent ten year Treasury down three thirties seconds, yield one point eight eight percent. That yield on the two year one point oh five percent. Nine X Screwed oil is at one point three percent, up a dollar twelve at eighty six dollars fifty five cents of barrel, and bitcoin this morning at forty one thousand, six hundred dollars. Nathan, Well, Karen, it is all about

the markets this morning. As you said, stock futures did fall sharply overnight, but they are rebounding. Let's get the very latest live with Bloomberg's John Tucker. Good morning, John, and good morning Nathan Nassey. Futures fella as much as one percent will rend right now. There are up three tenths of a percent for investors fed rate hikes baked into the cakes starting in March, and now there speculation the Central Bank will deliver more than a quarter percentage

point hike at that meeting. A more hawk is fed wing on stocks, especially tach shares lately. But as ZAC one hundred sank two point six percent yesterday from its November peak, the tech heavy nastack has fallen nine point six percent. That is just shy of the correction. Live to New York on John Tucker Bloomberg Daybreak. All right, John, thank you what we saw the US sell off spread to Asia over a night, and we get the recap

from Bloomberg's Juliette Sally and Singapore. Good morning, Juliette, Good morning, Karen. The MSCI Asia Pacific Index fell for a fifth session, as longest losing streaks since March. Japanese equities led the decline as the topics closed lower by almost three percent. Sony shares fell the most since October two thousand and eight after news that its rival Microsoft plans to buy

Activision Blizzard for sixty eight point seven billion dollars. Shares of some other Asian game related stokes climbed amid speculation further. Industry m and a Chinese developers also rose in Hong Kong after the PBOC pledge to use more monetary policy tools to aid the economy and ease credit stress, and bonds in New Zealand and Australia joined the global route in Singapore. Julie at Sally Bloomberg Daybreak. All right, Juliette, thank you. It is a different picture in Europe this morning,

where early losses have flipped agains. Let's go to London get the latest live from Bloomberg's You Win, Parts, You and what's the latest. Good morning, Nathan and Karen. Stocks in Europe pairing a set off this morning with two hours into the trading session and retailers helping to propel markets higher. There's a luxury theme to the gainers today after Richmond and Burbery Group both beats expectations. Montclair and Gucci owner Caring gaining today up more than three percent.

Your stocky hundred currently three tenths of one percent higher. Live in London, I'm your part, Splomberg Daybreak, You and thank you. Inflation and also a front end center in Europe. Prices in the UK unexpectedly searched at the fastest piece in thirty years. Consumer prices rose at an annual rate of five point four percent in December. That asked pressure to the Bank of England to raise interest rates again next month. When it comes to the pandemic in the UK, Karen,

it looks like COVID restrictions could be lifted soon. Prime Minister Boris Johnson will reportedly announce the lifting of rules in England today. It's according to the Financial Times, which says work from home guidance and the use of COVID passes are expected to end well. Back here in the US, Nathan Bank earnings continue to roll in. Bank of America and Morgan Stanley reporting results this morning, and we get a preview from Bloomberg the global finance corresponding Shannali Bask.

Most of the big banks have reported earnings, and what it's shown is that trading is falling below expectations and the consumer is not jumping back as fast as expected. We'll look for both of those figures today when Morgan Stanley, the biggest stock trading shop on Wall Street, reports earnings at a tough time for equities trading, and Bank of America reports earnings with a consumer in mind. Um Shnelly Bassk Bloomberg Daybreak, All right, Shanali Banks outside of Wall Street.

Airlines are in focus this morning. The rollout of five G wireless service in the US is disrupting flight schedules around the world. Let's get the latest live from Bloomberg. Junita Young. Good morning, Granita, Good morning, Nathan. Airlines fear if five V services are too close to airports they could interfere with key safety systems, so they're adjusting their schedules. British Airways has canceled a handful of full of flights

to the US. Dubais Immorans is suspending routes to several US cities, including Chicago, Newark, and San Francisco, and Japanese carriers are also dropping routes and will not fly some jets to and from the US. Mainland. Airlines are concerned about possible interference with navigation equipment that's used during landings in poor weather. Live in New York, I'm Reneda Young,

Bloomberg Daybreak, Nita, thank you. At the White House. This week, big tech is in focus that Biden administration is looking at how to reign in the nation's biggest tech companies through by partisan legislation. Amy Morris has details from our Bloomberg newsroom in Washington. Sources tell Bloomberg News the White Houses plan in a meeting this week to discuss curbing

the dominance of Apple, Amazon, Alphabet, and Meta. Critics of the tech giants, along with representatives of smaller digital firms, will be there as the White House gauges support for this antitrust measure sponsored by Senators Amy Klobucher and Chuck Grassley. But the big tech companies say that could harm their products that are popular with consumers. The bill could go before the Senate Judiciary Committee as early as tomorrow in Washington.

I maybe more as Bloomberg Day Break. All right, Amy, thanks on Capitol Hill. Right now, it's all about voting rights. Senate Democrats have taken up the legislation, but Republicans are expected to block a final vote. It's all about politics and that needs to change. According to Democratic Congresswoman Hailey Stevens, we need seriousness stats in the halls of Washington. We need connectivity to the people we represent, the issues that

are important to them, and solution making politics. Congresswoman Haley Stevens of Michigan spoke with our Washington correspondent Joe Matthew on Bloomberg Sound On. You can catch the program we days at five pm Eastern on Bloomberg Radio. Ahead of that, a rare news conference from President Biden is coming up this afternoon. We'll have that for you live later today on Bloomberg Radio. Right now, SMP futures are up seven points, SECT futures up forty four. Straight ahead, your latest local

headlines and a check of sports. This is Bloomberg. It's now five oh seven on Wall Street where thirty one degrees in Central Park. We got fifteen minute delays on the Metro North Harlem line because track work will get the details in traffic shortly. First Michael Barr with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. The January sixth House Committee has moved its investigation process to Trump supporters who

tried to undo the election. Bloomberg's Aad Baxter reports it has now chapoenaed attorney's Rudy Giuliani, Sidney Powell, and Jenna Ellis. They were the main focus of the legal teams trying to get the election overturned in Giuliani's case, urging state legislators to over turn voting results and spreading misinformation regarding the election results themselves, then leading to the January six

insurrection attempt. Committee chair Benny Thompson says, in the efforts to subvert the system, they were in direct contact with Donald Trump in San Francisco. I'm at Baxter Bloomberg Daybreak. New York's Attorney General last a judge to order Donald Trump and two of his adult children to testify under oath as part of the state civil probe into the family real estate business. A g Letitia James has investigators have already uncovered a pattern of potential fraudulent asset valuations.

A New York City Police officer was wounded in the Bronx last night while apprehending a sixteen year old suspect with a gun. Police say there was a scuffle over the gun it went off in Both the officer and the suspect was shot in the leg. Both have nonline threatening injuries and were brought to the hospital. Mayor Eric Adams at the hospital commented on a surge of gun violence in the city. One officers shot is one officer too many. One civilious shot is one civilian too many.

Our city must be safe. That's the promise I'm made, and that's the promise I'm going to keep. Meanwhile, Mayor Adams admits even he doesn't feel safe on the city subway system. Adam's comments come after a woman was pushed to her death in front of a New York City subway train at Times Square over the weekend. The victim, forty year old Michelle Go, did volunteer work for the homeless Go add Ties to the San Francisco area. The vigil was held for her there last night. The statements

are read from ghos family. We hope Michelle will be remembered for how she lived and not just how she died. She was a beautiful, brilliant, kind and intelligent woman who loved her family and friends, love to travel the world and to help others. The NYPD says the man accused of push and Go is homeless. New Jersey is now seeing a decline in COVID case rates and te neck

They're seeing hospitalizations drop. Global News twenty four hours a day on the air and on blue Very Quick Take, powered by more than twenty seven hundred journalists, analysts more than a hundred, twenty countries. Michael Barr, this is Bloomberg, Nathan, all right, Michael, thanks almost five ten on Mall Street. Time for the Bloomberg sports up take. Good morning, John

Stan Showering alright, Good morning, Nathan. Good game at the guard and the Knicks trail deptimber Wolves by twelve and the first half, but a big forty point third quarter led by Having Fournier, Knicks went up by nine. Minnesota then trailed by one. In the final minute, Town ten bounce past Towns, top of the key. A guess, Julius Raidel takes the triple left painted town The laid up off last counted for two Towns Puts the Wolves up one ten, one oh nine. What's twenty nine? Point three

seconds left? Little Radio Fournier and Alley Firks miss shots on the Knicks final possession and Minnesota won one twelve to one. Ten so to home losses in two days, and it drops the Knicks back under five, scoring twenty seven points. Julius Randel had twenty one with nine rebounds, nine assists, four block shots. Kemba Walker with earned after missing the last nine games with a knee injury. He got hot in the fourth quarter finish with nineteen. It was not the best of game for r J. Barrett.

He had seven turnovers. The Islanders won only five of their first twenty games. They are hot now. They reached five hundred for the fourth three win at Philadelphia to sweep the Home at home. That's the Flyers ninth loss in a row. This game went to a shootout. There were seventeen consecutive misses before Oliver Walstrom in the ninth round finally scored the game winner for the Islanders. The

Rangers back home tonight to play Toronto. Makes Advantage. Had won the fan vote to get to play in the All Star Game, except he has decided not to play personal reasons. College roops Duke lost in overtime at Florida State locally Iona one in overtime at Mandeth now fifteen,

and three losses for Fordham in Manhattan. Raphaela dal on his second round match at the Australian Open, so did the women's top seed Ash Party John Stash Howard Bloomberg Sports Right, John, thank you, SMP futures now up six point. Stout futures up three nests at futures leading the games now after yesterday's declines, they're up thirty nine points. Patrick

Armstrong of Plurimi Wealth is with us next. This is Bloomberg Bloomberg eleven three oh weather mix of sun and clouds today with behind your forty five degrees rain and snow showers develop overnight accumulations under an inch. Temperatures will fall through the day tomorrow. By Friday will be only in the low twenties. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg

Business at and at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow stocks pairing a global sell off as earnings optimism begins to offset concern about rising VON yields. US futures reversed earlier losses and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Guess and P Futures up about five points now, futures of fifteen as deck features at thirty. The decks in Germany's up a tenth of a percent.

Can your treasury down four thirty? Can see at one point eight eight percent. They yield on the two year one point oh five percent. Nimex Scrude oil is a one point two percent of a dollar three at eighty six dollars forty six cents of barrel comic schooled up

a quarter percent or four dollar sixty cents. At eighteen seventeen, An ounced the euro one point one three four two against the dollar, British pound one point three six one five and the ends at one fourteen point five one and bitcoin this morning at forty one thousand, four hundred fifty dollars. That's down about two percent today. We are watching for reports on housing starts and building permits out at day thirty Wall Street Time. Morgan Stanley and Bank

of America among companies schedule to report earnings today. That's a Bloomberg business flash. Now here's Michael Barr with Moore on most going all around the world. Michael, good morning, Good morning, Karen. The House Committee Investigating the US Capital, Ryan Espina At, Rudy Giuliani, and other members of Donald Trump's legal team who filed legal challenges to the twenty twenty election. The list includes Giuliani, Jenna Ellis, and Sydney Powell.

Secretary of State Anthony Lincoln will meet with this Russian counterpart in Switzerland this week as tensions between the US and Russia escalate over a possible Russian invasion of Ukraine. Lincoln arrived in Kiev today to meet with President Volodimir Zelenski. In the NBA, the next lost the Warriors one. In the NHL, the Islanders won in a shootout against the Flyers for or three the Capitol's one. The Bruins lost.

Global News twenty four hours a day on air and on Bloomberg Quittank, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg. Nathan. Hi, Michael. Thanks, It's five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. As we continue to watch the gyrations in markets this morning, We're joined by Patrick Armstrong,

chief investment officer at Klaimi Wealth. Patrick, Good morning, seeing a little bit of recovery in the futures contracts after yesterday sell off. Have we found a support level here? I think earnings probably will end up being a support for markets as we get in the reporting season. We've seen some good results out of some luxury companies, and it's I don't think a market where you have to be too fearful of the FED. I think that's really what's spooking everyone right now that the FED is going

to be hiking twenty five basis points in March. There's small fears of fifty basis points in March, which I don't think are going to happen. And historically, at the beginning of a hiking cycle, that's not the time to worry. UM. FED hikes at the beginning of the cycle because the economy is strong, there's economic growth, there's earnings growth, and equities.

It's at the end of this hiking cycle generally where they make the mistakes and they probably hike one or two more times when they should historically, And it's still a question if they'll do that. But the beginning of a hiking cycle is usually a reasonable period for risk assets. So what is your expectation of what the market should be pricing in from the FED? What's your view on where the Fed's gonna go with policy tightening. So they're going to hike in March. I think it'll be twenty

five basis points. I don't think they want to lose credibility by going to fifty, because at the narrative they've been building is twenty five basis points is coming in March now, and I think fifty may be viewed as a little bit of a knee jerk reaction, which you wouldn't want from a central bank. We've probably got another three hikes after that, unless the economy is really strong, and then maybe you get another four hikes after March,

even if the economy continues to be very strong. So it's it's going to be data dependent as we get through the summer. I think we've probably got three hikes in by the time we get to September, for sure, and if the economy is stronger than consensus, it might even be more. But you don't mind owning risk assets when the economy is strong generally, But that kind of hiking schedule. What's your view on where treasury yields could go from here? They are starting to move up pretty significantly.

You don't want to own duration um, so you want to be underweight duration. You don't want to own treasuries you don't want to own duration and your equities, which means the highest multiple companies that don't have earnings yet and aren't going to have earned for years to come. I think that's the one pocket that's probably continuing to

be at risk. UM. I think treasury yields moved past two percent, and as the FED funds futures start to price for two percent in three I think you're going to have a steeper yield curve than what the markets pricing in right now. And inflation at seven percent, that's going to come down. But I think we have years in front of us where inflation remains above the FED target rates. So I think two year ten year yields moving above two and the continuing slow grind higher as

the FED ones down its balance sheet. So with the steepening yield curve that you're looking for here, you're not looking for the possibility of recession coming out of this recovery, are you. I don't think we should be worried about recession right now. We're still in above normal growth. I think the US economy is probably going to grow about four and a half percent this year. UM. The Fed

inevitably has caused almost all the previous recessions. Um Powell talked about this, and I think they're aware of that, and they're letting the economy run hot. They did that all last year and now we're seeing this what happens from that. But I think they won't hike too far this time. Those may be famous last words because central banks always hiked too much towards the end. But policymakers

know the consequences of their actions and previous recessions. I think they're well equipped to make sure they can manage it and maybe smooth out, slowdown rather than provoke a recession. So in our last minute here, Patrick, where are you looking for opportunity? As we've continue to game out what the Fed's gonna do. I think you want to be in value inequities. Cyclical value still make sense to me. Um. A lot of value companies are trading at six to

ten times earnings. We haven't bought them yet. I'll wait for the Morgan Stanley results, but I think the banks are looking really cheap. JP Morgan, Goldman, Sachs really sold off on their trading revenues, and that's always a while card. I think once we get through reporting season. If those banks stay at current levels, I think those will be good opportunities um and should be beneficiaries of their steepening yielder that I expect. All right, thanks for this, Patrick.

Of course, we will be getting those final bank results from Bank of America and Morgan Stanley just a couple hours here. Patrick Armstrong, chief investment officer at Plurimi Wealth with us this morning as we continue to track the recovery we're seeing in futures contracts after yesterday's sell off. Right now, SMP futures are up seven points, STAFF futures up thirty six, and NASDAC futures leading the games. Right now,

they're higher by forty seven points ten. Your treasury now down three thirty seconds, the yield at one point eight percent, in the yield on the two year right now, one point zero five percent Bitcoin right around forty dollars. Just ahead, we'll have more on the markets, fed, beets and airlines. Grapple with the five G rollout as we check your top stories of the morning right here on Bloomberg Daybreak.

Good morning, Bloomberg, eleven three oh weather, mix of sun and clouds and a high here forty five degrees today, rainage snow showers overnight. Temperatures will fall through tomorrow. By Friday will only be in the low twenties. Currently thirty one degrees in Central Park. 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 O six one does San Francisco, Bloomberg nine six to the country, Sirius XM Channel one nine 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 Hager and I'm camerin Moscow and we're 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 this hour, and it's all about the markets this morning. Stock future has fell sharply overnight, but are now rebounding. We get the very latest live with the Bloomberg's John Tucker. John, Good morning, Good morning, Karen bench Whore. Treasury yields look poised to surge past two percent now. Traders are bidding the Federal Reserve could

go for a supersized rate hike. In March, higher yields were weighing on equities, especially tech stocks, but as that down almost ten percent from its November high, that would be a correction. Investors wondering if the sell off has gone too far. This morning, overnight NASDEK futures fell as much as one percent, and now they are up thirty nine points. Live in New York. I'm John Tucker Bloomberg Daybreak, and John. Investors are also gonna be paying close attention

today to bank earnings. Morgan Stanley and Bank of America report before the opening bell. That's after disappointing trading results from Goldman Sax yesterday. Well Nathan looking to disguise now. The rollout of five G wireless service in the US is disrupting airline flight schedules around the world. We get the latest Law five from Bloomberg's Ranita Young. Good morning, Nida,

Good morning Karen. Airlines fere if five G services are too close to airports, they could interfere with key safety systems, so they're adjusting their schedules. British Airways has canceled a handful of flights to the US. Dubai zimmer It's is suspending routes to several US cities, including Chicago, New York, and San Francisco, and Japanese carriers are also dropping routes and will not fly some jets to and from the US mainland. Live in New York. I'm Ranita Young, Bloomberg

Day Break Now, Nita, thank you. Some news out of Washington this morning. The Biden administrations exploring ways to reign in the nation's biggest tech companies, possibly through antitrust legislation. Bloomberg News has learned the White House will meet this week with critics of big tech. A bill in the Senate could limit the dominance of companies like Google, Apple, Amazon, and Meta and on Capitol Hill, Nathan Senate to Democrats

are poised a hand Resident Biden another defeat. Lawmakers have taken up voting rights legislation that has very long odds. Republicans are opposed to a measure and expected are expected to block a final vote on it. Futures this morning are higher. SNP futures up seven points. Dal Future is up thirty four nasdag Future is up thirty seven. The decks in Germany's up at tenth of a percent. The ten year treasury down three thirty seconds had one point

eight eight percent. They yield on the two year one point oh five percent. Nimax screwed oils up one and a half percent of a dollar twenty seven at eighty six dollars seventy cents of barrel Bitcoin this morning at forty one thousand, five hundred dollars. Straight ahead your latest local headlines plus a check of sports. This is Bloomberg,

Thanks Perien. It's five thirty three on Wall Street. We're thirty two degrees in Central Park and still the only with fifteen to twenty minute delays on the Harlem Line. Metro North. Details and traffic shortly. First Michael Barr with what else is going on in New York and around the world. Michael, thank you very much. Nathan and New York City police officer was injured in the Bronx last night while apprehending a sixteen year old suspect with a

gun after a scuffold and went off. Both the officer and the suspect were shot in the leg and we will recover. Mayor Eric Adams rushed to the hospital, who thank police officers for the arrest. Adams called for reforming laws involving gun crimes. Anytime there's a gun involved, we have to look at that in a serious fashion, and now we're not doing that. Meanwhile, Mayor Adams admits even

he doesn't feel safe on the city's subway system. Over the weekend, a woman was pushed to her death in front of a New York City subway train beneath Times Square. Even before the killing, Adams administration and announced plans to boost the presidents of police officers in the subway. The House Committee investigating the US Capitol Ryot sapoena and Rudy Giuliani and other members of Donald Trump's legal team who

filed legal challenges to the election. The panel is demanding information and testimony from Giuliani, Jenna Ellis, and Sidney Powell. The New York Attorney General's office has hit civil investigation has uncovered evidence former President Donald Trump's company use fraudulent or misleading asset valuations to get loans and tax benefits. Attorney General Letitia James's office made the filing last night. Later today, Senate Democrats were trying to vote on changing

the filibuster rule to pass two voting rights bills. The filibuster change will almost certainly fail, but it is not stopping Senate Majority Leader Chuck Schumer from forcing to vote on something as important as voting rights. If Senate Republicans are going to oppose it, they should not be allowed to sit in their office. They got to come down on the floor and defend their opposition. Republicans insist there

is nothing to fix. Despite GOP states passing new voting laws, New Jersey is now seeing a decline in COVID case rates in t Neck. They're saying hospitalizations drop. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael bar this is Bloomberg. Nathan alright, Michael, Thanks on Wall Street. Here's John stash Are at the Bloomberg Sports Update. Thanks

Nathan Nixon. Timberwolves at the guard and Alec Burke's took a three point shot. The ball was in the air as the final buzzer sounded, It missed, and Minnesota in a wild game one twelve to one ten. The t Wolves were up twelve in the first half. Knicks then led by nine. Carl Anthony Town's three point play with twenty nine seconds left proved to be the game winner. From Minnesota. Evan four Y led the next with twenty seven points. Julius Randall had twenty one kemba Walker nineteen

in his return from a knee injury. But this homestand has started with two losses in two days. The Knicks are back under five hundred. Islanders and Flyers captain a home and home in Philly. The game was tied a one, then two, then three at CAZy Kazki's tie and goal for the Islands of four and a half minutes left. They went to overtime and then the shootout, where neither

team could score. Seventeen consecutive misses. In the ninth round, it was time for the Islanders Oliver Walstrom Walstro Alona Carter hut Flows it down only as the winner in the bottom of the night set. The Flyers won the final store for the three okay heavy EPN I also want five or six to reach five hundred. The Flyers

now last nine in a row. Rangers first home game in over two weeks Tonight against Toronto Australian Open, second round victories for Raphael In the Dallash Party and Naomi Osaca. The Giants have begun a second round of interviews for the general manager's job. These being conducted in person. First yesterday, Buffalo assistant g M Joe shown John Stash that we're Bloomberg Sports name. All right, John, thank you. It's five thirty seven on Wall Street. Time for the tri State

business for fort Here's Bloomberg's head Cory. New York City's factoring in an eight point to percent increase in property values for next fiscal year thanks to demand for a single family homes, co ops and congos. The city said a value of about one point four trillion dollars for it's more than one million properties for the fiscal year beginning in July. A gauge of New York state manufacturing slumped in January. Measures of orders and shipments retreated sharply,

suggesting the omicron variant caused a poolback in activity. The Federal Reserve Bank of New York's General Business Conditions Index Felder minus point seven from thirty one point nine a year earlier. New Jersey businesses can now expect improve perks on a tax break. To help ease the pain of a camp on individual deductions for state and local taxes. A new law allows pass through entities, partnerships, limited liability companies, and s corporations additional tax relief that you Bloomberg try

State Business Report. I'm Ed Corey, all right, thanks, 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. UM Cornaho on KTRH in Houston, the International Energy Agency. He says global whale markets look tighter than previously thought. I'm Steve kotas

Can on w f L A Tampa Bay. We're talking about the Oprah backed True Food Kitchen chain of health food restaurants opening its first location in Tampa. I'm Gina Servetti and for w c CEO in Minneapolis, we're watching for earnings from United Health. I'm Klin headed Blueback DAV Digital Radio in London. We're reporting on a government on edge. Will bois Johnson face and o'confidence vote or can angry MPs remained in I'm it Corey on w w J in Detroit. I'm reporting ford An A d T prefasting

in a new joint venture. And those are some of the stories are twenty dred Bloomberg journalists and analysts you're working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. The recent hostage crisis at a Texas synagogue is a reminder that anti Semitism is a growing threat. The idea that lawmakers would block any efforts to fight it is shameful if that's arguably what Senate Republicans are doing.

In July, Joe Biden nominated the renowned Holocaust scholar Debrah Lipstadt to holm the State Department's office for combating anti Semitism. Her nomination has remained stalled ever since. Republicans on the Foreign Relations Committee appear piqued by a tweet Lipstat wrote in March criticizing a senator in their party. But Lipstat is no mere partisan, having tried to lawmakers on the left as well as the right, and no one doubts

her qualifications. An author of six books on anti Semitism and the Holocaust, she would bring unparalleled expertise and gravitas to the position. Republicans have delayed long enough. They should let Lipstat's nomination move to a vote. 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 OPA and go on the Bloomberg terminal.

This has been Bloomberg Opinion. You can hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at O, P I, n GO. SMP future is now up almost eight points. Staff futures of forty two. Nastack futures are highed by thirty seven points. The tenure Treasury is down three thirty seconds. The yield one point eight eight percent. Big bank stocks moving lower in the pre market as Bank of America and Morgan Stanley gets

set to wrap up Wall Street Bank earnings. This is Bloomberg Bloomberg eleven three oh weather mix of sun and clouds today with a high your forty five rain and snow showers, overnight temperatures falling through tomorrow by Friday highs in the low twenties currently thirty two 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 lash, but I'm pared. Moscow stocks

pairing a global sell office. Earnings optimism offsets concerns about rising VON yields, US futures are reversing earlier losses, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P futures now up seven points down features of twenty eight NASDAK futures up forty one.

The decks in Germany's up about two tenths of upper cent ten year treasury down two to two thirty seconds, the yield one point eight eight percent yield on a two year one point oh five percent NIMEX Screwed oil is up one point six percent, up a dollar at thirty four at eighty six dollars seventy seven cents of barrel comic schooled up a third of upper cent or six dollars forty cents at eighteen eighteen eighty announced, the euro one point one three four seven against the dollar,

British found one point three six two five, the yen is at one fourteen point five zero, and Bitcoin this morning moving lower at forty one thousand and three hundred fifty dollars. That's a Bloomberg business flash. Now here's Michel bar with more on what's going on around the world,

Uncle Karen, thank you very much. Rudy Giuliani and two of the lawyers who helped former President Donald Trump advanced baseless claims of fraud in the twenty election have been subpoena by the House committee investigating the January six riot at the US Capitol. Along with Giuliani, Sydney Powell and Jenna Ellis were part of a legal team that spearheaded

an attempt to overturn the election results. Airlines around the world are adjusting their schedules and aircraft deployments for flights to the US over fears that a five G rollout by a T and T and Verizon near American airports could interfere with key safety systems in the NBA. The next loss the Warriors won in the NHL the Islanders won in a shootout against the Flyers for three, the

Capitol's one, the Bruins lost. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg. Nathan Okay, Michael, thank you. It's five forty nine on Wall Street Live from the Bloomberg Interact and Brokers Studios. This is Bloomberg Daybreak. As we get set to wrap

up bank earning season this morning. Bank of America and Morgan Stanley are the final two of the Big Wall Street six. So about their fourth quarterbooks. They will do that before the opening bell. Ahead of that, we're joined by Ken Leon, director of Equity Research at c f R. A Ken good morning, taking a look at shares of Bank America and Morgan Stanley. They're both lower ahead of earnings this morning. Is that sort of a residual effect

of what we saw from Goldman Sachs yesterday. Well, it's also about the market and the it's really the macro risk and we've gone from a bowl to a bear case. All of a sudden, the banks were down, probably because maybe the bears think the best results happened in one uh COVID might stay around longer in two, which could hurt bank earnings and rates. Rising rates help banks and uh JP Morgan Friday said, well, maybe it doesn't help

us on that interest earnings until later this year. I'll stay with the bowl case, which is we still have a strong US economy that's gonna spur loan growth. And also capital markets aren't going to repeat a record year in one, but it's going to remain very active with a strong pipeline. And I think finally a rate rise from the Fed called three or four times this year and maybe into next year, is a strong earnings engine

fueling that interesting come for the banks. UM. Banks are over capitalized, investors are going to get return of capital at dividends and buy backs. UM so, But right now, you know the bears are there. You know the outlook is cloudy, particularly on macro and UM you know policy and regulations. The last point here, that's another day less with earnings, but with the appointees from President Biden's administration,

you have more of a consumers uh staff thing. If you will of key positions at the f D I C, the O c C, and and others. How does that bookcase supply to Bank of America when they report later this morning, I would expect that consumer loan growth has got to be a big part of their story. Will the consumer be there for Bank of America? The consumer will be there, but it's going to be more looking

ahead to the first quarter in two. What we'll see in the fourth quarter results again is that consumers have really healthy balance sheets where they haven't really seen any delays and paying off credit balances. So from Bank of America, they're large card businesses. The loan volumes of spending. Obviously it's the holiday season in there was exceptionally high double digit in terms of growth year over year, But consumers are paying off their balances and banks make money on

service charges when you have loan balances. UM, we think it'll get back to normalized levels, perhaps by the second quarter of two. If you look at this from the FED, the personal saving rate during the pandemic got as high as eighteen and in November we were back to the normalized historic levels of seven percent. What about the cost picture for these banks? We just heard this morning that JP Morgan Chase is raising pay for junior bankers again for a second time. Is that going to be repeated

across the sector? Well, there are three factors. One, you know, particularly for investment bankers, is trying to keep talent. Second is there's a labor shortage. So even at the bank branches, we saw a Wells Fargo increase the minimum wage from increased it from eighteen to twenty two. And the last part of expects, which is up is that the banks have to invest in technology to be competitive today, but really for tomorrow, you know, with all the disruptors from

fintech companies. So um, yeah, we're gonna live with higher expense. But again, um, we think right now the market's gloomy on the revenue picture for banks, and we think it's gonna be another good year. You know, the last thirty seconds here, what about for Morgan Stanley, Will the boom in deal making in one make a difference for them? Only about thirty seconds left. So Morgan Stanley, like Golden Sax, gonna you know, ranked number one or two in most

of the areas of the kapital markets. It's gonna have another really strong year for underwriting and I P O S and but gold I'm sorry. Morgan Stanley has the largest wealth business, which gives them a little bit more of a predictable recurring revenue. So I think we're going to finish up with Morgan Stanley a little more sanguine than the Bears view that we saw yesterday. All Right, Ken, thanks for this. Ken Ley on his director of equity research at CFR. A we hear from Bank of America

right around sixty five Wall Street Time. Then Morgan Stanley reports at seven thirty. Will have complete coverage here on Bloomberg Radio. Karen Nathan is four on Wall Street Time for the Bloomberg Law Report. Let's get to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger. The National Labor Relations Board will reconsider a Trump you re precedent allowing workplace arbitration agreements to include clauses requiring workers

to keep the proceedings confidential. Federal court records in New York indicate canterfits Gerald and a former vice president who said she was fired for rejecting her boss's sexual advances, agreed to end her job discrimination lawsuit. The Southern District of New York rule, the Key Bank must face trial on claims by two former employees who claimed they were fired in retaliation for opposing a sexually hostile environment. 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. Jeff, thank you now. Another legal story where Wa Shing brings us to religious rights At the Supreme Court, justices have agreed to hear a case from a football coach who lost his job at a public high school after repeatedly praying with his players

on the fifty yard line after games. It's the second time the cases come to the Supreme Court, giving the courts conservative majority a new chance to bolster individual religious rights and relax the separation of church and state. For We're in the case, Bloomberg's June Grasso speaks to Caroline Mala Corbin, a professor at the University of Miami School of Law. So tell us what the Ninth Circuits said

and turning down his appeal. So he argued that being denied the opportunity pray in front of the students, in front of the crowds violated both his speech rights and religious rights, and the Ninth Circuit rejected that based on the Establishment Clause. The Establishment Clause required some separation between church and state. And one arena where it's still pretty vital is in the public schools, to make sure that the state, the school, or people who work for the

school don't force students into uncomfortable religious exercises. And the school said, and the court agreed, if we allowed you to continue these prayers, you would be basically violating the Establishment Clause. And so that is a compelling reason for the government to limit your own free exercise. This means that four justices want to hear this case, perhaps more. Does it seem like they would only be taking this case in order to reverse the Ninth Circuit. I fear

that might be the case. This Supreme Court has been steadily eroding, if not eviscerrating, Establishment Clause protections. The one area where they still survived was in the school context. Under existing law, this should have been a very easy case and he should lose, which he did in the

Ninth Circuit Court of Appeals. And I fear they took this case as a vehicle for eliminating those strong Establishment Clause protections in public schools, as well as University of Miami law Professor Caroline Mala Corbin speaking at the Bloomberg Student Grosso. Catch more of that 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. Future is moving higher this morning, S and P futures up seven points and still ahead on Bloomberg Daybreak at check on the business headlines and all the news you need to start your day. And this is Bloomberg