Bloomberg Daybreak: January 24, 2022 - Hour 1 (Radio)

the deadly shooting of the police officer. Plus trial begins with three x Minneapolis policemen involved in George Floyd's death. Him Michael Barr More Ahead, I'm John Stash. Aaron sports that Jays beat the Pills in an epic playoff game, The Ram beat the Box, the Next One, the Nets,

and Devil's Law. That's all straight Ahead on Bloomberg day Break on Bloomberg Element Trio, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nine Team, and around the world Old on Bloomberg Radio dot Com and via the Bloomberg business set. Good morning. I'm Nathan Hager and I'm Karen Moscow. US futures are higher after last week's

sell off. We're coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On bloomberg SMP Future is up nine points, Dow Future is up seventy one nast DAG Future is up twenty The decks in Germany's down one point to percent. Ten year treasury up eight thirty seconds, held one point seven two percent. They yield on the

two year one point one percent. Nine X screwed oil is up three ten percent or twenty four cents at eighty five dollars, thirty eight cents of barrel comics gold up half percent or nine dollars eighty cents at eighteen forty three ninety announce. The euro one point one three two six against the dollar, the NS at one thirteen point six one. Nathan, Karen, We'll have more on the markets in a minute, but we begin this morning with the latest geopolitical tensions between the White House and Moscow.

Concerns over a Russian invasion of Ukraine have the US as taking steps to protect Americans in the country. Amy Morris has the latest from our Bloomberg ninety nine one newsroom in Washington. Washington ordered diplomats families to leave Ukraine. The UK withdrawing about half of its embassy staff and their families. EU ministers are talking with Secretary of State Anthony B. Lincoln about next steps. They're prepared to say that any further military aggression by Russia will have quote

massive consequences and severe costs. This as President Biden is reportedly weighing whether to send troops to Eastern Europe to support NATO allies. The New York Times reports that would involve up to five thousand troops plus warships and aircraft. In Washington, I maybe Morris Bloomberg Daybreak, Amy, thank you. Secretary of State Anthony B. Lincoln is speaking out on

the pending conflict with Russia. He's rejecting pressure to escalate sanctions on Moscow, saying you would limit his options in the future. The purpose of those sanctions is to deter Russian aggression, and so if they're if they're triggered now, you lose the detern effect. And Anthony B. Lincoln made the comments on PC's Meet the Press. Heard Sundays on Bloomberg Radio. All right, let's turn back to markets now, Karen, where we are seeing some stabilization this morning after last

week sell off. Bloomberg's John Tucker joins us live with the details. Good morning, John, Good morning Nathan. The NASDAC one is coming off its worst week since the start of the pandemic in March of twenty The end of central bank stimulus has many rethinking their outlooks. The FED decision on Wednesday's expended to signal a March interest rate

hike and a balance sheet reduction later this year. The US stocks have historically performed well during rate high cycles, as a growing economy tends to support corporate profit growth. In fact, stocks have risen at an average annualized rate of nine percent during the twelve rate hike cycles since the nineteen fifties. On average. Strategists also project the S and P five hundred will finish the year just shy of five thousand percent above Friday's closing level. Live in

New York, I'm John Tucker, Bloomberg Daybreak. All right, John, thank you, and as we wait for Wednesday's FED decision, One Wall Street Bank is out with a hawkish forecast. We get the latest live from Bloomberg's Nita Young. Good morning, Nada,

Good morning, Karen Goldman. SAX economists say the FIT could tighten policy more aggressively than anticipated their clocking rate increases in March, June, September, and December, and for the Central Bank to announce the start of a balance sheet reduction in July. Goldben economists are concerned because the omicron variant is prolonging supply demand imbalances and there's continued wage strength

and growth which could increase ongoing inflation pressures. Live in New York, I'm gonned a Young Bloomberg daybreak, and we need to Anticipation of tighter policy from the Fed is also weighing on Bitcoin. That combined with where the White Houses preparing a strategy for digital assets, had Bitcoin hit a low of thirty four thousand over the weekend. Bitcoin is down nearly fifty percent from its all time high in November, and checking the cryptocurrency now, it's at thirty

four thousand five dollars. Well, Nathan, let's turn to the pandemic. Now, US COVID cases a appear to be leveling off. And there's hope the numbers could soon start heading south. Dr Anthony Fauci says this surge could be nearing its peak, but if the pattern follows the trend that we're seeing in other places, things are looking good. We don't want to get overconfident, but they look like they're going in

the right direction right now. Dr Fauci made the comments on ABC's This Week Ord Sundays on Bloomberg Radio well COVID's Front and Center in Europe. This morning Karen as British Prime Minister Boris Johnson faces his most crucial week in office. Let's go live to London and get the latest from Bloomberg's You and Parts. Good Morning You, and

Good Morning Nathan and Karen. Prime Minister Boris Johnson is awaiting the results of an inquiry JEWS report this week into large gatherings at Downing Street during the COVID lockdowns. It's an investigation that could lead to his own Conservative Party colleagues ousting him as leader. Separately, the premiss also under attack over the conduct of the senior party managers who maintained voting discipline among lawmakers. It's not a week that Johnson will be looking forward to live in London.

I'm you and part Sploomberg. They break you and thank you. Back here in the US, some corporate news to get you caught up on shares, the Coals are higher by twenty six percent. The department store chain is fielding interests from two potential buyers. Sources say the latest bid comes from Sycamore Partners. Earlier, another bidder backed by Hedge fund is Starboard Value offered nine billion dollars for Coals. Activist

investors have been pressuring Coals to sell. Peloton shares are up two percent here in Bloomberg News has learned an activist investor there is pushing Peloton to fire at CEO and try to sell itself. Blackwell's Capital has less than a five percent stake in the fitness company. Pelotons shares have plunged more than eighty percent from their all time high a year ago. And on the economic front, today, Nathan a new survey shows a build up of US

inflation and labor shortages. The National Association for Business Economics says more than half of the company's surveyed boosted prices in the fourth quarter. That's the highest in the servey's forty year history on top of add more than sevent Expect higher wage costs in the next three months. Okay, right now, S and P futures are up, but only by about two points. STAW futures up twenty four. Nastack

futures have turned lower. Now they're down six points. The tenure treasury is up nine thirty seconds, the yield one point seven to per cent. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg and it's five oh seven on Wall Street, thirty degrees in Central Park and accident investigation as the b que closed eastbound between thirty one and the RFK trib or a bridge.

Details coming up in Traffic. First Michael Barr with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York City is preparing delay to rest a rookie police officer killed last week. Funeral services for twenty two year old New York City police officer Jason Rivera are being finalized. Rivera an officer

Wilbert Mora. We're shot Friday night while answering a call about an argument between a woman and her adult son in Harlem More was moved in this fighting for his life. The man police saying shot them also was wounded by a third responding officer. New York City Mayor Eric Adams vows to take action to address not just the latest police shooting, but crime in general. This is a sea of crime that's been fed by many rivers, and we have to damn each one of those rivers, and we

have been unsuccessful to do so throughout the years. These crimes have not thought um during my administration, to have been here for far too long and many possible community. Mayor Adams on CNN also mentioned another high profile crime that occurred more than a week ago, but for the year old woman on the subway platform in Times Square, Michelle Go was shoved in front of an incoming train

by a mentally ill homeless man. General Leeber is the CEO of the m t A, but a relatively small number of mentally ill homeless, but their impact on the subway system and on the ridership and god forbid, on safety is proportion. The m t A S Jano Liebers says that the fact that had happened in one of the most iconic spots emphasizes the problem New York City faces.

Opening statements began today and the federal trial for three former Minneapolis police officers charged with violating George Floyd's civil rights as Derek Chauvin pinned his neck to the street. All three are charts or failing to provide Floyd with medical care. The adult film actress who made lawyer Michael Avonetti famous four years ago, will be the key witness in a New York courtroom. Prosecutors are trying to prove Havonette echeated Stormy Daniels a three dollars in book proceeds.

Opening statements are scheduled for today. Jury selection begins today and New York for former Alaska governor and vice presidential candidate Sarah Palin's lawsuit against The New York Times. Palin accuses The Times of defamation. Over seventeen editorial global news twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty se an hundred journalist and analysts more than a hundred twenty countries. I'm

Michael bar this is Bloomberg. Nathan all right, Michael, thank you, Almost five ten on all street time for the Bloomberg Sports up Take. Good morning, John Stash all Right, good morning, Nathan. Has there ever been a more exciting NFL playoff game? In the final two minutes of regulation, twenty five points

were scored. There were three lead changes. Twice Buffalo thought it had one with a Josh Allen touchdown past the Gabriel Davis, who caught four on the night, kept leaving Kansas City time even when the Bill scored a go ahead TV with only thirteen seconds ago. Enough time for Patrick Mahomes. Two completions got the Chiefs in position for a game time field goal. They went to overtime. Kansas

City won the coin flip, then won the games. Looks to throw it, pump baking right side, he wants the cost by Keelsasa sitting one of the greatest students in the history of the National Football League. Patrick maholl to Travis Kelsey, Hell the push fake comeback in the Chiefs up one. This incredible divisional playoff game forty two thirty six Chiefs radio Mahomes best Allen in a classic QB duel. They combined for sixty completions over seven hundred yards, seven touchdowns,

plus a hundred thirty seven rushing yard. It's Mahomes in the Chiefs who will host Cincinnati for the a f C Championship. Rams will host the forty Niners for the NFC l A blew a four point lead, Tom Brady rallied Dampa Bay to a tie. Then the Rams, helped by a forty four yard completion, kicked the field goal to win thirty to twenty seven. After three straight home losses, Nick is able to beat the Clippers with the Garden one ten, one oh two. R. J. Barrett scored twenty six.

Nick started tough week tonight in Cleveland. Nets lost in Minnesota one thirty six. Devils lost to the King's three to two. American Danielle Collins has reached the quarterfinals of the Australian John Stash Award Bloomberg Sports. Nathan John thanks futures lower, nows and p futures down two points, So are down futures that futures lower by any points. Lori

Calvacina of RBC with us next. This is Bloomberg Blombery Daybreak brought you by the Breakers this winter are warm, welcome away to the Breakers is committed to making your stay even better with exceptional experiences, gracious service, and unparalleled seaside glamour. To learn more, visit the Breakers dot Com Today, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quicktape.

This is a Bloomberg Business flash and I'm Cameron Moscow. US dot Index futures have turned lower, extending last week's losses, which was one of the worst stretches for global share since the pandemic began. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SMP futures are down six points down, futures down twenty nasadack

futures down thirty seven. The decks in Germany's down one and a half percent, CAC in Paris down one point six percent, and the foot Sea one had write down about one point one percent. Can your treasury up ten thirty seconds he had one point seven two percent. That yield on the two year one point o percent or one percent, you could say nine Excrete oil down about two tenths per cent or thirteen cents at eighty five

dollars a barrel. Comex school is up six tents per cent er ten dollars twenty cents at eighteen forty four thirty announced the euro one point one three to two against the dollar, British pound one point three five one three and again is at one thirteen point five four. And just checking Bitcoin this morning, moving lower. Uh, it's at thirty three thousand, six hundred dollars. That's down almost five percent, and that's a Bloomberg business flash. Now here's

Michael Barr with more and what's going on around the world. Uncle, Good morning, Good morning, Karen. The US ordered family members at its embassy in Ukraine to leave do to the continued threat of Russian military action, while the US renewed warnings that Russia good sent forces into Ukraine at any time. There's word. President Joe Biden is considering deploying troops to

Eastern Europe and the Baltics. The federal trial for three former Minneapolis police officers charged with violating George Floyd's civil rights as Derek Chauvin pinned his neck to the street is set to begin today with opening statements. In the NFL. The Chiefs beat the Bills forty two thirty six that means Kansas City faces the Bengals for the a f C title. The Rams beat the Bucks thirty twenty seven, Los Angeles would now face the forty Niners for the

NFC Championship. In the NBA, the Knicks, Celtics and Warriors won, the Nets lost, NHL Action The Devil's Lost. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. I'm Michael var and this is Bloomberg Nathan Alright, Michael, thanks for coming up to five twenty on Wall Street Live from

the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak and we're joined down by Lori Calvacina ahead of US Equity Strategy at RBC Capital Markets. As we see futures taking a turn low were now, Lorie, they had been higher just a few minutes ago actually, but now it looks like investors think there maybe even further for this sell off to run. When do you think we see capitulation

A Hi, Well, thanks for having me. As always, um, look, I think if you look at the retail Investors Survey that a AI I put that on a weekly basis. Um, we've actually already gotten very close to deeply bearished territory. If you look at the sort of unadjusted weekly number from last week, it was actually very very close onto pandemic loads. I think the netbolishness was around minus or so. UM. And we we did see, you know, sort of the

bears climbed sharply and the bulls repeat retreat Charlie. Um. Now when that happened in the pandemic, when we got two similar levels, we stayed there for twelve weeks. So that doesn't mean sentiment turns around tomorrow. UM. But I do think a lot of the bad news, whether it's from the FED, inflation, um, even some of the anks were seen in terms of GIA politics, it's already taken a pretty big toll on investor psyching. That doesn't mean the market turns around today. Um. That it is an

important threshold to be aware of. Yeah, as you say, there are a lot of catalysts for investors to keep their minds on, from the FED, to earnings to these tensions with Ukraine. Do you think that a lot of this uh negative sentiment has further to get priced into

this market. I think that the best way to look at this right now is through the lens of the growth value rotation, because we do know obviously the secular growth oriented sectors are massive weight in the S and P five hundred, at least they have been, and so what's bad for that trade is bad for the broader market. And when we look at the different you know, sort of indicators, I think about six or seven different things we're tracking there, we do generally think that that rotation

is not done yet. And I'll give you one that we published on this morning, which is just looking at the valuation gap between the most expensive stocks in the market and the cheapest stocks in the market UM. And we've been looking at that relative ratio and where it is relative to pre pandemic levels UM and basically it's about fourteen percent away UM. So there is still some winter chop. There's been a significant draw down that's happened.

We've made a lot of progress in terms of correcting that valuation gap, but there is still more room to go. A lot of attention obviously on the FED meeting this Wednesday, the decision coming there. You probably heard the commentary from Goldman Sachs saying that there is a risk that maybe even more rate hikes than the market has priced in at this point. What's your expectation on what we're going to hear from Chairman Powell and the Open Market Committee

this week? So, you know, I never like to forecast what the Fed is going to say. I leave that to our economics team, but I will give the RBC economics and rate strategy team a lot of critics because they have been very, very early on the hawk is call. They've been telling us since around Thanksgiving to be prepared for a pretty you know, aggressive FED this year on both in terms of the hikes this year and in tree and they think the market is still in the

process of catching up there. I will tell you that while our economists and rate strateg just have been prepared for this more hawk is tilt from the FED, equity investors U have really been playing a fierce game of catch up. And we saw even right before the holiday postal lapsed BERED meeting, most were most equity investors were

looking for two Q lift off. So even you know, kind of this march timing up, equity investors have been coming around to that UM, but there were really, you know, sort of very very far behind where some economists and rate strategies were on the spred call to start the year UM. So you know, I'm hopeful that there's really not much that's going to come out this week that's been a surprise equity market participants. But we'll have to see there. Obviously, this is gonna be a very busy

earnings week as well. It's been kind of uneven for the most part in the early going. What are you expecting when it comes to the couple hundred of SMP companies that are going to report in our last minute here look this week and next week or brutal we get well over two d S and P five hundred companies reporting. I would say so far, based on the early reporters to focus on strong demand. It just hasn't been the same tone as what we've heard the last

few reporting season. Labor has been a hot button issue. I think that's replacing supply chains as the theme of the year UM. And also a macron disruption does appear to be does appear to have been greater than anticipated based on some of the early reporters that we've seen so far, so we'll look to see if that that trend continues and what comes up in the next few weeks. It sounds like a lot of head winds ahead as

we head into the rest of this month. Lori Calvacina, Head of US Equity Strategy at RBC, as always, thanks for the insights, getting a set for what could be a very rocky trading week. As we watch futures move lower in the pre market. SMP futures now down thirteen points, now futures down seventy three, Nasdaq futures leading the declines there down sixty six points. The tenure Treasury is up ten thirty seconds now, the yield one point seven two percent,

yield on the two year one percent. Even Bitcoin now thirty three thousand five dollars just ahead, diplomats, families ordered from Ukraine, and a department store chain gets serious takeover interest. All that and more as we check your top stories of the morning, you're listening to Bloomberg Daybreak Bloomberg eleven three oh weather sunny him your thirty five Today partly Sunday Tomorrow with a high near forty, sunny and cold Wednesday highs only in the mid twenties, currently thirty one

degrees in cloudy in Central Park. Broadcasting live from the Bloomberg Interactive Broker's studio in New York, Bloomberg E Living Free on to Washington, d C. Bloomberg to Boston, Bloomberg one O six one, does San Francisco, Bloomberg NIM sixteen to the Country Sirius XM Chentle one nine ten, and around the globe the Bloomberg Business app in Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on

Wall Street. Good morning. I'm Nathan Hagar and I'm Karen 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 the shour. We begin with the latest do political tensions between the US and Russia. The US has ordered families of diplomats to leave Ukraine and concerns about an invasion mount Bloomberg said.

Baxter has the very latest. The signal is that Russia could invade at any time, and the State Department is issuing a statement saying quote the security conditions particularly along Ukraine's borders in Russia occupied Crimea and in Russia controlled eastern Ukraine are unpredictable and can deteriorate with little notice. They're also reports that the Biden administration is thinking about sending troops into the region. In San Francisco, I'm at Baxter,

Bloomberg Daybreak, All right, and thanks. Turning to markets now, US futures are slumping as last week's sell off look set to continue. Let's get the very latest line from Bloomberg's John Tucker, John Nathan. The NAZAC, coming off its worst week since the start of the pandemic in March of twenty, is now down over four from its November high. The next hurdle for investors is Wednesday. That's what the FAT is so expected to signal a March raide hike

and balance sheet reduction later this year. The end of FED stimulus has prompted an exodus from high growth equities right now, Basdeck features are leading their clients. They are down right now nine points line to New York. I'm John Tucker, Bloomberg Daybreak, All right, John, thank you, And as we wait for Wednesday's FED decision, one Wall Street Bank is that without hawkish forecast, we get the latest live from Bloomberg's rand A Young Good Morning Radio, Good Morning,

Karen Goldman. SAX economists say the FIT could tighten policy more aggressively than anticipated their clocking rates increases in March, June, September, and December, and for the Central Bank to announce the start of a balance sheet reduction in July. Goldmen economists are concerned because the O Macron variant is prolonging supplied demanding balances, and there's continued strength in wage growth, which could together increase ongoing inflation pressures. Life in New York.

I'm gonna need a Young Bloomberg day break, all right, we need to thanks turned to the pandemic now and word from President Biden's chief medical advisor, Dr Anthony Faucci. He says the omicron outbreak is headed in the right direction, saying the surge could likely peak soon. And in corporate news this morning, shares of coals are up almost twenty nine percent. Sources say the department store Shane is fielding

interest from two potential buyers. And again, futures this morning have turned lower, with SNP futures down thirteen points at own futures down fifty eight and Nasdak futures down seventies six straight. I had your latest local headlines, splas a check of sports and this is Bloomberg. Thanks Karen. It's five thirty three on Wall Street where thirty one degrees in Central Park. We've got a crash in White Plains East found Route eighty seven year exit eight e. Details

coming up in traffic. First Michael Barr with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York Governor Caffey Hoke Will has announced a new task force involving nine Northeast states and fighting the rise in gun violence. It comes out to Friday shooting of two New York City police officers. One officer, twenty two year old Jason Rivera, was killed, the other, twenty seven year old Rulbert Mora,

is in critical condition. Mayor Eric Adams is calling on the federal government to help curb the flow of illegal guns into big cities. The police department is doing their job taking thousands of guns off the streets. Yet each time you take a gun off, there's a constant flow of new guns coming here. Mayor Adams says the suspect and Friday shooting was also shot by a third responding

officer and remains hospitalized. Mayor Adams also mentioned the death of a forty year old woman on a subway platform in Times Square that's making global headlines. Authorities say Michelle Go was shoved in front of an incoming train by a mentally ill homeless man. M t A CEO General Leber's has the fact that this happened in one of the city's most iconic spots emphasizes the problem New York

City faces. Right in the middle of our city. What could be more the center of the city and of the world then Times Square, For this to happen is just unthinkable, unacceptable. I called it unconscionable. There are no words. We have to do something about it, the m t a's General Leber says, though, while the issue is atypical for the city, it's being failed acutely in this time

of COVID. The federal trial for three former Minneapolis police officers charged with violating George Floyd's civil rights is Dark Chauvin Pin the Black Man's Neck to the Street, is set to begin today with opening statements. All three are charged with the depriving Floyd of his civil rights while acting under government authority. Disgraced attorney Michael Avanati will stand trial today in New York on charges he cheated his client.

Federal prosecutors said Avanade stole the advance on Stormy daniels teen memoir about her long denied affair with former President Trump. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalists and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan. Thanks Michael five on Wall Street time for the Bloomberg Sports Update. After a wild football weekend.

Here's yeah, Nathan, I don't know that we've ever had a weekend quite like that. All four games won on the final play, three road teams won on game ending field goals, and then the Bills in Chiefs in a game for the age of twenty five point scored in the last two minutes of regulation, three lead changes, including Buffaloes go ahead TV with only thirteen seconds left, Kansas City still able to tie the game on a lot of second field goal. They beat the Bills forty two

thirty six in overtime. The Chiefs will host the ANFC championship game for the fourth funeral, they'll take on the Bengals. The Rams beat the Bucks thirty to twenty seven on a field goal that came after Tampa Bay rally from twenty four points down to tie the game. Tom Brady nearly pulled off an epic comeback, but not quite. At the end, there's only one team that's gonna be happy.

It feels good to move on when you move on, and obviously when you don't, uh, you know, there was last week or this week, for next week or the week after, two weeks after that. After the loser NET game at all, it all sucks to lose me. And asked if he's now going to retire, Brady said he will take it day by day. The Rams, after winning on the road, now go home to play the forty Niners for the NFC title, and they could then just stay in l A for the Super Bowl. Nick's home

standards over. They lost the first three but beat the Clippers one ten one oh two picks was finally a solid start thirty nine points of the first quarter. They never trailed. R J. Barratt twenty six points, fourteen rebounds. Nick's played tonight in Cleveland, then they go to Miami, then Milwaukee, so they'll play three at the top five in the East in Minnesota. Thirty points for Kyrie Irvy

not ed off and that's lost five. The Devil's beaten by the King's three to two Daniel Medvedev into the quarterfinals of the Austville You know, John Stash Bloomberg's Howard Sneakers. Thanks John seven on Wall Street Time for the Tri State Business Report with Bloomberg's head. Corey employees in an r EI store in Manhattan filed for a union election on Friday. That makes the outdoor equipment an apparel retailer the latest prominent service industry employer whose workers have sought

to unionize. The Time says employees sided safety during the pandemic, among other concerns in their filing. New York sports books took more than six hundred million dollars worth of bets from phones or computers in the first two weeks of the activity being legal this month. The numbers posted by the New York State Gaming Commission came from fan Duel,

Draft Kings, Caesar's, and Rush Street interactive. Connecticut Governor Ned Lamont's administrations has it plans to require all nursing home visitors to show proof of COVID nineteen vaccinations or show a recent negative test before entering. Currently, visitors have to show that they have received COVID nineteen vaccine or booster at your Bloomberg tries fake business report. I'm Ed Corey.

Thanks 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. Um Corney Donaho on kat R H in Houston. Boris and

Jim's bustling as Americans aren't a little COVID. I'm Gina Servetti and for w w BBM in Chicago, we're talking about some of the locally based companies reporting earnings this week. I'm Caroline Hefell, Blue Bag, Dab dish Adium. In London. We're reporting on the most critical week of Boris Johnson's premiership as we await the report into alleged downing Street parties and now allegations of Islamophobia against the Conservatives. I'm

a gory on w T A M in Cleveland. I'm reporting the move of devil Nicksdorff's headquarters the Hudson Who's almost complete, and those are some of the stories. Are hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street.

The following is an editorial from Bloomberg Opinion. China is the last major nation pursuing zero tolerance COVID strategy, seeking to extinguish outbreaks of the virus as soon as individual king emerge, but the highly transmissible Omicron variant is testing the government's approach. Chinese officials have adopted strict measures to control emerging infections, such as locking down entire cities and mass testing millions of people, but O Macron has nevertheless

spread to China's largest population centers. That includes Beijing, which is hosting the Winter Olympics in a few weeks. Given how fast this latest COVID strain travels, China has little chance of keeping case numbers low. Meanwhile, the human and financial costs of over zealous lockdowns are mounting and public patients is wearing thin. China will probably have to abandon its zero COVID policies at some point, perhaps sooner rather

than later. This editorial was written by the Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg Opinion place, go to Bloomberg dot com, slash Opinion or OPA and go on the Bloomberg terminal. These 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 futures are now down fifteen points down futures and

Nasdaq futures both down eighty points. The ten your treasury is up nine thirty seconds, the yield one point seven to percent. The yield on the two year right now one percent. Even you're listening to Bloomberg, gave break Bloomberg eleven three oh weather, sunshine and a high in the

mid thirties today. We'll get up to near forty, partly sunny tomorrow, sunny and cold for Wednesday, with the high only in your twenty five degrees currently thirty one and cloudy in Central Park markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, Blo Bloomberg Business apt and at Bloomberg Quick Tape He's He's a

Bloomberg Business Flash and I'm fair at Moscow. European equities are following US Dot Index futures reversed their gains and are lower as well as the rotten technology stocks deepens and make concerns over the federal reserves imminent rate liftoff bonds are gaining. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SMP futures are down about twenty points down. Future has got a

hundred fourteen NASDAG features down ninety five. The decks in Germany's down one point nine per cent, The ten year treasury up nine thirty seconds, held one point seven two per cent, and they yield on the two year point nine nine percent. Nine night Screwed oil is down at third cent or twenty eight cents at eighty four dollars eighty five cents of barrel comex Scold up four ten percent or seven dollars ten cents at eighteen forty one. Twenty announced the euro one point one three one six

against the dollar. British found one point three four nine seven. The ends at one thirteen point six seven. Bitcoin this morning is falling as well. It's at about thirty three thousand, six hundred eighty dollars. That's a Bloomberg business flash. Now here's Michael Barr with Moore unless going on around the world. Michael Karen, thank you very much. The State Department is ordering the families of all American personnel at the US Embassy in Kiev to leave the country and allow non

essential staff to leave Ukraine. The move comes amn heightened fears of a Russian invasion of Ukraine, the spite talks between the US and Russian officials. When of President Trump's strongest defenders is sent to have talked to the House Select Committee investigating the January sixth capital attack, the chairman of the committee says former President Trump's Attorney General, William Barr,

has spoken to the panel. In the NFL, the Chiefs beat the Bills for thirty six and that means Kansas City faces the Bengals for the a f C title. The Rams beat the Bucks thirty twenty seven. Los Angeles now faces the forty nine ers for the NFC Championship. In the NBA, the Knicks, Celtics and Warriors won. The Nets lost in the NHL The Devil's Lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analyst

in more than a hundred twenty countries. Michael Bar This is Bloomberg, Nathan, Thanks Michael. On Wall Street Life from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and we want to get the latest now on what's happening in Ukraine. Bloomberg's executive editor for International Relations, Rosalind Matheson

is with us now Rose. As we heard from Michael Barr, the State Department has ordered families of diplomats out of Kiev, and now NATO this morning is saying it's got extra forces on standby, sending more ships and fighter jets to Eastern Europe as well. It seems like things are close to a boiling point, are they. Well. You can see that there's a heightened level of concerns, certainly about the fact that Russia is sustaining its military build up on

the border with Ukraine. It's been doing that for many weeks now, no indication that intends to reverse that, and certainly Russia is waiting for what expects to the US written proposals this week on its security demands. But in the mix of all of that, concerns are definitely rising. You're seeing that Eastern European nations are anxious about their exposure to Russia. They're calling on NATO others to send

more troops to their countries. Already are NATO and US troops of course in the area and frequent exercises, but certainly NATO in the US want to send the message that they're there in the region, they're committed, and they're going to do it in a very visible way by having increased exercises and troops on the ground in the coming weeks. What about that move from the US expected to send written responses to Russia over its demands for security guarantees. Do we have a timeline and when that's

going to happen. All we know is that after the meeting between the U s Secretary of State and his Russian counterpart into Never last week, the Russians said that they expect to get those written proposals this week. At some point, the key question is what is actually going to be in them. Of course, Russia is demanding and guarantees on NATO that the US and NATO say they simply cannot give, So his main demands cannot be met

either way. So what you could see is the US proposing things, for example, like greater communication between on the military side, way to coordination when they're doing exercises in the region, and perhaps re re energizing the conversation around the I n S. Of course, that's the weapons treated that was put on ice under the Trump administration, So committing to not putting new weaponry on Russia's doorstep. Those are probably the only two things that can put on

the table. And we heard from Secretary of State Anthony Blincoln over the weekend being asked questions about whether the U s should impose sanctions on Russia. Now, who's sort of backing off that idea, saying it sort of gives the US leverage over Russia at this point, Do we have an idea whether the US and NATO are on the same page now when it comes to how to react to certain levels of Russian aggression against Ukraine. Well, that's a real question. What does sanctions actually look like.

You're seeing real differences between European nations amongst themselves on that question. How hard would you want to go economically against Russia? Because of course any sanctions produce a collateral damage on yourself, particularly in Europe, and there's always the chance that Russia then turns off gas supplies to Europe, So you've got those differences. Europe also says that sanctions

should not be a deterrent. You can only decide them and agree upon them when someone takes an action, when someone actually does something, and then there are penalty. The US of course would like to have that package agreed soon or later. Even if it's not used, it's still they're hanging out. There is a deterrent for Russia, So you've got real differences about how to tackle that, let alone, What would what sort of action would quantify a response? Is it a small incursion? Is it a cyber attack?

Is it destabilization inside Ukraine? Is it a four war? Is at the only point at which sanctions are used? So many many points of difference possibly emerging on all of that. Thanks for this Rose, good having you on with US Rosalind Matheson as our executive editor for International Government for Bloomberg News. Karen Nathan, thank you, and as far as to do three on Wall Street time for the Bloomberg Law Report. It has brought to you by

American Arbitration Association. Since disputes are inevitable, were solved faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More an a d R dot org. Let's get to the legal stories we're watching this morning from Bloomberg's Jeff Bellinger. Oscious as the new COVID nineteen standard to protect healthcare workers should be

completed in six to nine months. A federal judge in West Virginia rule that Walmart must resume litigating a class action in the state. The case stems from a one data breach involving thousands of pharmacy patients. The New York State Bar Association endorsed a scaling back of law enforcement checks on law school graduates we're seeking to become attorneys. 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. Right, Jeff, thank you. Now another legal story we're watching brings us to the Supreme Court. Justice has seemed poised as side with Republican Senator Ted Cruz and has challenged to a campaign finance provision regulating

the repayment of candidate loans. Cruise acknowledges he structured as finances so that he could challenge the two fifty thou dollar cap on the amount of personal loans that candidate can be repaid with money raised after an election. For more in the case, Bloomberg student Grosses baks to Richard Ball, a professor at Columbia Law School, these campaign finance provisions are a little technical tell us about the provision and

issue here. So a certain Cruise is challenging thoroughly minor provision with federal election law which deals with candidates who lend their own campaigns money and then want to get that loan paid back by the campaign after the election is over. The sunder Cruise lent his campaign jour. Under the law, he can be paid back in full any money the campaign receives before election day, and also any money off the tuners. The fifties thousand dollars that the

campaign receives after election day. The law says that you can't be paid back beyond the two and fifty thousand dollars with any money that comes in after election day. It seemed like there was a divide between the liberal and conservative justices. What were the conservative justices concerned about. Well, the conservative justices still see this as an indirect but real limit on the ability of the candidate to campaign. That candidates will be reluctant to advanced money to their

campaigns if they can't get silly reimbursed. So one point they make is that this operates as an indirect kind of limit on the ability of candidates to raise and spend money. A second point that's raised by some of them, I think Justice Kavana on particular, was, you know the law still cap the amount of donations that a donor could give to the campaign to pay back to candidate. That cap is the cap that would apply. And in fact, that part of the or argument was eighty six people

could give that permissible dollars. That's how you get dollars. If six people could give the to pay back the loan, why not why not the next person? And that's the issue. As long as there's a cap on the size of the donation to the campaign committee, they don't see a corruption issue. Let's talk about the Liberals and what their position seemed to be. Well, and I think justices side of my Erran Kagan were clearest on this, which is

they see it just a gift. They see it exactly the way in which the Federal Elections Commission and the Law season is that at this point it's post election, it's not being used to pay for any campaign activity. It's basically, in effect covering a debt that the campaign itself wasn't able to cover, and so it looks a lot like a gift. And as they said, Congress sort of set a balance. Congress did permit the post election

ream first month up to two fifty dollars. And that's Colombia Law professor Richard Brefoe speaking with the Bloomberg Student Garrosso. Gets 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 s and p futures are down about eighteen points this morning, DAL futures down

one six and NAZDAC futures down. In ninety ten year treasury of nine thirty seconds, the ald one point seven two percent and the yield on the two year point nine nine percent still ahead. On Bloomberg day Break, check on the business headlines and all the news you need to start your day. And this is Bloomberg