Bloomberg Daybreak: January 25, 2022 - Hour 2 (Radio)

unit amid gun violence. Plus former New York Assembly Speaker Sheldon Silver has died. I'm Michael Blomber. More ahead, I'm John Stas Shower's fourth the nixt lost by two, the Rangers wanting to shootout St. John's been seating Hall. And

it's the quarterfinals of the Australian Open. That's all straight ahead on Bloomberg day Break on Bloomberg eleven Trio, New York, Bloomberg one, Washington, d C, Bloomberg one, O six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nineteen and around the world from Bloomberg Radio dot Com and via the Bloomberg Business or good morning. I'm Nathan Hagar and I'm Karen Moscow, and US future is pointing to

more volatility this morning. 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 S and P Future is down forty seven points down Future is down two hundred two and NASDAG futures down two hundred twenty seven. The decks in Germany's up half per cent, the ten year treasury down three thirties seconds. He had one point seven eight percent, and they yield on the

two year one point one percent. Nine meg Screwed oil is up eight ten percent or sixty six cents at eighty three dollars ninety seven cents a barrel. Comic School down two tens percent or three dollars ninety cents at eighteen forty thirty. Announced the euro one point one to eight one against the dollar and bitcoin at thirty six thousand, four hundred dollars. Nathan Karen, US stocks are under more pressure this morning after yesterday's wild turnaround on Wall Street.

Let's get the very latest live with Bloomberg's John Tucker. Nathan Global anquities wiped out almost three trillion dollars yesterday. That's before a dramatic reversal, So the US benchmarks ending in the green. Jeremy Seguel and at the Wharton School says these moves shouldn't come as a surprise, you know, when the market has gone up as much as it has since March of two thousands. This is still not a big dip. But I don't think the pain is over yet. Jeremy Seguel says that says the nasdack will

fall from its November high. Volatility is the name of the game. The vix is up for a sixth session today. It briefly jumped to the highest level since October twenty before receding. The question facing advantags now is whether any slide is a buying opportunity or pretends wider stress across more asset classes. Live in New York, I'm John Tucker, Bloomberg Daybreak, Right, John, thank you, My US futures aren't

the only thing falling today. Stocks in Asia saw some heavy selling overnight, and we get the recount from Bloomberg's Juliet Sally in Singapore. Good morning, Juliette, Good morning, Karen. The m c I Asia Pacific Index fell the most since December to reach its lowest level since November twenty. Japan's Topics index closed down one into correction. Territory South Koreas Cosby is nearing a bear market. He dropped more

than two and a half percent. In Soul. Australian sulks fell to Meylo's and bondy Old searched after stronger than expected inflation data boosted bets on rate increases in Singapore. Juliette Sally Bloomberg Daybreak Juliet Thanks. The recent sell off, along with last week slump, is being pinned on concerns over tighter monetary policy. We get more clues on that this week as the Fed kicks off its two day policy meeting. Bridgewater Associates founder Ray dal Leo says the

Central Bank is still too slow. The Federal Reserve has been behind the curve slower to type monetary policy and as a result, we're now starting to see the rise in interest rates to be able to deal with that. As that happens, all assets compete with each other. That means all the other assets have to adjust. We're in a process of making that kind of adjustment. Bridgewater Associates founder Ray down Leo made the comments in an interview

with David Rubinstein on peer to peer conversations. Catch the show coming up next week on Bloomberg Television. Well, Nathan, outside of the fed traders are watching for tech earnings this week, and today we get results from Microsoft here with more is Bloomberg's Tom Busby. The big focus for investors the software giants Azure cloud computing unit and web based versions of its office software. Also of note holiday

sales of its Xbox gaming console and video games. Just last week, Microsoft announced its biggest acquisition ever, a nearly sixty nine billion dollar deal to acquire Activision Blizzard. Bloomberg forecasting revenue topping fifty billion dollars for the first time ever and adjusted earnings of two dollars thirty two cents a share for the second quarter. Tom Busby Bloomberg Daybreak

and tom results are already out from IBM. That company reported revenue that beat estimates, has shares up nearly three percent in the free market. Bloomberg's Charlie Pellett has more. IBM got a boost from strong demand in its software unit, which includes IBMS hybrid cloud offering. IBM software unit, the biggest business group, grew eight point two percent. The consulting unit, formerly known as Global Business Services, reported a thirteen percent

increase compared with the year prior. The results were the first since IBM completed the spinoff of a large portion of its legacy infrastructure services unit in November into a new company in New York. Charlie Pellett Bloomberg Daybreak. All right, Charlie, thank you. Bitcoin also in focus after yesterday's wild swings. Have we get the latest Life from Bloomberg's ni A Young,

Good morning Radia, Good morning Karen. Yesterday headlines were all about the crypto crash, but bitcoin snapped a five day slide, and this morning the world's largest crypto is trading lower once again. Analyst from Bloomberg's Life blog say, don't read too much into today's modest decline. While Bitcoin appears to be trading in correlation with stocks, and let's note that turns in the digital asset came before those in stocks, both on the way down and back up. Right now,

Bitcoin is trading around thirty seven thousand. Live in New York. I'm Renita Young, Bloomberg day Break, Nita, thanks, Let's make a hard turn to geo politics now, where Russia and Ukraine remained front and center. The US is putting eight

troops on heidened alert. Has tensions swirl over a possible Russian invasion, Bloomberg said, Baxter has the very latest Pentagon spokes When John Kirby says on both sides of the Atlantic, the United States has taken steps to heighten the readiness of its forces at home and abroad, so they are prepared to respond to a range of contingencies, and White House spokes when Jansaki says it could come at any time. It never ruled out the option of providing assistant additional

assistance in advance of an invasion. President met with European leaders and says they discuss severe sanctions as well as securing the eastern flank of NATO in San Francisco. I'm at Baxter Bloomberg day Break, and thank you. Arning to

the pandemic. Now we have encouraging news in the battle against the oom Crown Variandviser and by On Tech say a pair of studies confirmed three doses of their COVID nineteen vaccine produced antibodies that can neutralize the omicron variant, as according to lab studies published in the journal Science. Straight Ahead your latest local headlines, plus a check of sports. This is Bloomberg. Thanks En six o seven on Wall Street,

Clowns and thirty seven degrees in Central Park. We have an accident on eastbound Route two eight seven and exit ten and Ryebruck to tails 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 Mayor Eric Adams vows to take a media of action to end gun violence. During his first few weeks in office, there have been a string of tragic and high profile crimes. We need help, we need resources,

we need back up. Adams called for the state to enact more restrictive bail provisions and announced plans to revive the controversial anti crime unit. They were the Playing Close units, disbanded under former Mayor de Blasio after misconduct complaints. Malde. However, Adams says the units will be monitored. But my fellow New Yorker is we are going to do a lot more than pray. We're going to turn out pain. It's

a propose. We're going to unite and take action. Mayor Adams says his goal is to bring thousands of guns off the streets. Meanwhile, a vigil was held outside of Harlem Police Precinct last night in honor of the two officers shot Friday night. Rookie policeman Jason Rivera was killed. His partner, Wilbert Mora, is fighting for his life. Mourners held prayers outside the thirty second precinct. A New York State judge has rule that the state's mask mandate can't

be enforced. The mandate was reinstituted by Governor Hocul until February one over concerns about him when you surge of coronavirus cases. Hocal says the administration disagrees with ruling and is pursuing every option to reverse it. Nassau County Executive Bruce Blakeman signed an executive order challenging the state mask mandate.

After you're taking office this month. The government does not have power unilaterally and the Health Commission does not have power laterally to make rules that materially affect people's lives without respect to the cloud old damage has done, especially to our to our school children's. Nassau County Executive Blakeman called it a great victory. Meanwhile, the state Department of Education says it will still require masks for students and

schools while the decision is appealed. Former New York Assembly Speaker Sheldon Silver, who was convicted on corruption charges, has died in federal custody. He was seventy seven. The word yet on the official cause of death. New York Mayor Adams choice to have his first paycheck in bitcoin. It's not looking great at least for now. He likely lost about a thousand dollars as the cryptocurrency market fell. Adam

says though he is a long term investor. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan, Thank you, Michael. Coming up to six ten on Wall Street. Time for the Bloomberg Sports I Think with Johnston show. All right, Nathan's tough week for the next three games and five nights against three of the top five teams.

In the East first stop much improved Cleveland fifty to fifty at halftime. Kevin Love got hot in the third quarter. He made six three pointers. Nixon the fourth wiped out a fifteen point Deva said, but R J. Barrett missed the three that would have put them ahead. The Calves won three. Love scored twenty points. Barrett at twenty four. Knicks are in Miami tomorrow and then go to Milwaukee Rangers Kings at the Garden. The game went to a shootout twice. A Ranger had to score to keep it going.

Both our Tommi Panarin and electis La Franae did then did that, and then in the sixth round it was time for the Rangers. Adam Fox, Fuck de Shots Stars, Great Church, twin out of fuck Fu fuck Rachard celebrate half the tals for Fox the all They're half goalsp and the Call. Rangers won three to their nine and three. Since New Year's Eve, St. John's and Seaton Hall made up a game postponed by COVID, so the two games between the three between the teams in three days. Pirates

one Saturday at the Garden. Red Storm wanted Walsh Jim going away eighty four to sixty three, first on campus game for seton hallss N eighty nine, a couple of lefties played along five center at the Australian Open. Raphael that that won the first two sets, Dennis Chapa all of the next two and Ndal pulled it out in five.

Also on of the semifinals goes American Madison Keys women's top seed Ash Barty crushed American Jess Pagoula six two six Love John stash Atwards, Bloomberg Sports Nathan Okay, John, thank you. SMP futures down down thirty nine point, staff futures down a hundred thirty seven nasdack futures lower by two hundred one points. That is a decline of one point four percent ten Your treasury down four thirty seconds. The yield one point seven eight percent. This is Bloomberg

coming up to six twelve on Wall Street. Bloomberg day Break is brought to you by Audie. Don't let someone else drive off in the outie model you've always wanted. Visit a tri state autie dealer to get behind the

wheel of yours. Today, markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape, He's a Bloomberg business lash and I'm Karen Moscow u s Dock Index futures are following this morning as investors wa concerns about tightening monetary policy and geo political tension against positive earnings reports to check the markets every fifteen minutes throughout the

trading day. On Bloomberg guess and P futures down thirty eight points down, Future is down a hundred forty three and as day futures down one seven The decks in Germany's up eight tenths of per cent, the ten year treasury down five thirty seconds. He had one point seven nine percent yield on the two year one point two percent. Nimex screwed oils up eight ten percent or sixty seven cents at eighty three dollars ninety nine cents. A barrel comic school down a quarter percent or four dollars eighty

cents at eighteen thirty nine forty announced. The euro one point one two eight two against the dollar, British bound one point three four seven three, the ends at one four teen point one three and Bitcoin this morning, moving lower at thirty six thousand, five hundred dollars. Also watching in Video today, down about two and a half percent

this morning. Sources telling Bloomberg and Video quietly preparing to abandon his purchase of arm from soft Bank Group after making little to no progress in winning approval for the forty billion dollar chip deal. Has a Bloomberg Business Flash. Now here's Michael Barr with more on what's going on

around the world. Michael Karen, thank you very much. The Pentagon says Defense Secretary Lloyd Austin has ordered about eighty five hundred US troops on heightened alert, preparing for possible deployment to Europe if needed, to reassure NATO allies and the face of Russian aggression on the border of Ukraine. Russia says though it has no plans to invade Ukraine. North Korea appears to have fire two cruise missiles this morning towards waters off its east coast, According to a

South Korean military official. The North has ramped up a barrage of test this month that have rattled regional security. In the NBA, the nixt lost in the NHL, the Rangers won, the Bruins and capitals lost Global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalists and analysts more than a hundred twenty countries. Michael Barr, This is Bloomberg. Nathan all right, Michael, Thanks six nineteen on Wall Street

Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. We get right back to the market action now with Daniel Morris, chief market strategist at BNP Party bo Asset Management, as we watch futures continue to fall this morning after the wild turnaround yesterday, and a lot of analysts were looking for choppy waters to start this year, but were we expecting anything like this? Dan? I think there are two things that explain why it's been so volatila at

the beginning of the year. So number one, I mean, we didn't anticipate over the course of the year an increase in real interest rates and that would put pressure on valuations, particularly for gross stalks. And the question was really just when that would happen and how quickly. So we have the answer to that question. It's now, and it's very quickly. I think what's exacerbated that though, has been the disappointment on the earning side, and not per

se and the results themselves, but on the guidance. I mean, typically you have about twenty percent of companies when they report getting positive guidance. So again, at the best of times, it's not necessarily high number. But last year we know we had earning surprises, significant earning enterprises through the whole season, and positive guidance was around fifty or sometimes even six.

Over the last couple of weeks, it's been five percent out of this earning season, so I think that's been a kind of other unpleasant surprise in all of this, I think has made this downturn a lot more here. Do you expect this downturn to go further? And if so, how much? Well, you know, that's always the key question.

I think the two things that make us still a little bit cautious are number one, if you look at valuations and again for gross talks in particular, they're certainly lower than they were, but nowhere where you'd call cheap, and nowhere yet the levels you are at prior to the latest QUEI round that followed the pandemic. And secondarily, without kind of better earning support, you do think that

there's still some nervousness. The other thing to keep in mind is, you know you're getting more and more discussion about even more interest rate hikes in next year. So I've said a three four up to seven, So instill the market until the market has settled on the number. There the risk or the concern is going to be that it's howire interest rates and again further pressure on valuations and putting further pressure, I would imagine on the Fed.

Is that what you're thinking here is we're waiting for Chairman Powell to come out with the policy decision tomorrow. Well, this really is perhaps a lit as test. There was always a question, you know whenever you know, we talked about the central bank put screens, found put and so on, and if they see a significant decline in the market, you know, would they later in the year have paused, uh, the interest rate hikes or the balancie runoff? Well that

that question is going to post itself. Now, how you know much do they say particularly run balance you runoff? Because that's been the big change over the last several weeks that we had the last Fed minutes. You know, how quickly they're going to do that, and you know, we won't know what they would have said otherwise, but you you wonder if they're going to be quite as aggressive now given how the markets reacted. What's your calm on what we can get from the Fed tomorrow? Um?

But I think we see the market pricing in uh, you know, already five hikes and that could go a bit higher. We anticipated that they're going to attempt to one be clear that they are going to address inflation, but at the same time, perhaps be a little bit more cautious about how quickly they're going to do that, to let the markets at least a jest the news that they've had to deal with over the last few weeks.

Just to take a little outer view here, Daniel, what are the wild swings like we saw yesterday tell you about the health of this market right now? Well, certainly you would like to see a bit more breadth in the in the market itself. I think what we're always wondering about is, you know, what point will go to broad investors, retail investors, in tutional investors, so thinks have fallen enough to to come back into the market and

buy the dep in a classic sense. Uh, you know, whether we necessarily saw a sign of that yesterday, I'd think probably not. Like I said, we really haven't seen valuations reset to a level where stocks are cheap in absolute terms. I think what we're seeing is, you know, when you're transitioning from an environment really over the last fifteen years, with the exception of the hikes under yelling but still broadly falling interest rate environment to what we

appreciate now is secularly different. Uh. That's just going to take some time for the markets to adjust to that, and that implies a lot of volatility. All right, Daniel, thank you as always good to get your insights this morning after uh, pretty wild start to the week. Daniel Morris's chief market strategist at BNP Party BA Asset Management, want to pass along a red headline just across the Bloomberg terminal. GE has reported fourth quarter revenue that missed

the average analyst estimate. Came in at twenty point three billion dollars. The average estimate was twenty one point three so billion dollar miss there on overall revenue in the fourth quarter, and right now GE shares are tumbling on the earnings right now, down seven and a half percent

in the pre market. As for the broader market, we see futures continuing to fall, with S ANDP futures right now down forty two points down, futures down a hundred seventy NASTAC futures are lower by two hundred eight points, a drop of one point four percent there, and the tenure treasury is down five thirty seconds, the yield one point seven eight percent. We'll have much more on the g E earnings, plus the latest on the markets wild ride,

and the latest on the standoff over Ukraine. Five things you need to know to start day coming up right here on Bloomberg Daybreak Bloomberg eleven three oh Weather mostly cloudy to start partial clearing later today with a high in your forty, low twenties. That's all we'll get tomorrow. By Thursday will be partly sunny, upper twenties. Currently thirty seven in Central Park bridcasting live from the Bloomberg Interactive

Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C. Bloomberg On to Boston, Bloomberg one O six one to San Francisco, Bloomberg Non sixty to the Country Sirius XM Chado one nine and around the globe, the Bloomberg Business Act and Bloomberg Radio dot com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm pared Moscow. We're just about three

hours away from the open of US trading. Time for the five things you need to notice start your day. Bront to you by Interactive Brokers. Trade crypto for less coin with commissions as twelve to eighteen basis points and no hidden spreads or markups. Learn more at i dk R dot com slash crypto. First, we're seeing more pressure on US stocks this morning after yesterday's wild turnaround On Wall Street. SNP futures are down forty four points or one percent, and we get the details on these moves

live with the Bloomberg's John Tucker John Karen. The S and P five hundred felt about four percent yesterday before ending slightly higher. Volatility is climbing. The VIX just closed shy of thirty, compared to a lifetime average just shy of twenty, according to calculations by Bespoke Investment Group. Monday was the sixth time since the NASDAC are raised a four percent plus inter day decline to close higher on

the day. Strategists tracked by Bloomberger are still bullish, with their year end average forecast for the SMP five hunded close to five thousand. Live in New York. I'm John Tucker, Bloomberg Daybreak. All right, John, thanks some big coins and focus as well after yesterday is wild swings and it's trading lower again. Today, Let's get the latest live from Bloomberg's Rnita Young, Granita Nathan. Yesterday headlines were all about the crypto crash, but bitcoin snapped a five days slide.

Endalysts from Bloomberg's Markets Live blogs say don't read too much into today's modest decline. Though. While Bitcoin appears to be trading in correlation with stocks, turns in the digital asset came before those in stocks, both on the way down and back up, and right now Bitcoin is trading at thirty six thousand. Live in New York. I'm Rnita Young,

Bloomberg Day Break, Reny to thank you. The slump and risk assets is being blamed on forecast for Fed policy and again more clues on that this week is the Fed kakes off at two day policy meeting today and Karen earnings are front and center as well. Microsoft reports results this afternoon on the heels of upbeat numbers from IBM. The shares are up almost two percent after the best sales growth in ten years. On the flip side, General Electric earnings out moments ago missed and GEES shares are

down seven percent. And taking a turn to geo politics, now, it's all about rush in Ukraine. The Boding administration has put as many as eighty five hundred troops on alert for deployment in Eastern Europe. Former Obama campaign foreign policy advisor David to Fury says Vladimir Putin is a threat. Until the last six months, people didn't really recognize the threat that Putin posed to Ukraine and to our other allies in Eastern Europe. And I think people in both

parties are waking up to that now. Former Obama campaign foreign policy advisor David ta Fury spoke with our Washington correspondent Joe Matthew on Bloomberg Sound On, and that's the five things you need to know to start your day, Brought to you by Interactive Brokers. This is Bloomberg pleeks staring sixe on Wall Street, thirty seven degrees in Central Park, and Michael Barr is here with more on what's going on in New York and around the world. Good morning, Michael,

Good morning Nathan. New York Mayor Eric Adams says the recent violence is reminiscent of the city's dark days in the nineteen seventies and eighties. New York is feel as if a sea of violence is engulfing our city. Adams has announced the city will step up efforts to seize illegal guns and institute a multi pronged plan to tackle the issue. Adams and his blueprint to end gun violence is bringing back playing closed units where the violence has

been highest. These units were disbanded under the previous administration, but the mayor is bringing them back and promising that they will be monitored. Gun violence is a public health crisis. There's no time to wait, Mayor Adams. As A vigil was held last night in front of the thirty second Precinct for the two officers shot in Harlem last night a last Friday, one officer, Jason Rivera, died as partner

Wilbert Mora is fighting for his life. The suspected gunman Lashawn McNeil night of his injuries yesterday in a Harlem hospital. A New York State Supreme Court judge ruled Governor Kathy Hokele's masked mandate is unconstitutional. The rule was sent to expire February one. Nassau County Executive Bruce Blakeman signed an necative order challenging the state mask mandate after taking office this month. It's a great victory for the people of

the State of New York. It's a great victory for our school children, and it's a great victory for both the Constitution of the United States and the constitution of the State of New York. Nassau County Executive blake Men as the state Department of Educations as it will still require masks for students in schools while the decision is appealed. Three Baltimore firefighters were killed and the fourth remains in a critical condition after being trapped in a fire inside

of acan home that collapsed. Baltimore Mayor Brandon Scott, this is a gut wrench in tragedy for our city, for our fire department, and most importantly for the families of our firefighters. Scott says the blaze is now one of the deadliest in the city's history. Former New York Assembly Speaker Sheldon Silver, one of the most powerful figures in state government for two decades before his conviction on corruption charges, has died in federal custody. So Vera had been serving

his sentence at the Federal Medical Center in Massachusetts. The Manhattan Democrat who told the judge he prayed he would not die in prison, was serving a more than six years sentence. Sheldon Silver with seventy seven Global News twenty four hours a day on air and on Bloomberg Quicktake, 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. Almost six thirty

six on Wall Street. John Stash here the Bloomberg Sports Update. Alright, Nathan nice. Comeback by the Knicks in Cleveland. They trailed by fifteen, and the fourth quarter rally to tie the game, but the Calves one ninety three damage done in the third when Kevin Love kept hitting three pointers. He scored twenty points with six threes. R J Parrett of the Knicks with twenty four. Another went for the Rangers at the guard. Another goal for Chris Cryder came with two

seconds left of the first period. Crider nine goals in his last six games, leads the league with thirty. The Kings led to to one, the Rangers tied it with thick minutes left. They won three two and I shootout. There said six rounds. Adam Fops the game winner, nice rebound for St. John's. Two days after a home lost to Seaton Hall, the Red Storm beat the Pirates easily eighty four sixty three, Aaron Wheelers seventeen points, ten rebounds.

Due to COVID, the game was played on campus in South Orange, where Seaton Hall had not played since nineteen nine. Raphael Nadal into the semifinals. The Australian openly won a five center with the Canadian Dennis Chapaval of Ash Party, trying to be the first Native Ausee to win the women's single since nineteen seventy seven, she has been dominant,

took out American Jess Pacoola six to six. Love Madison Key has won her quarter final back Baseball players made a couple of concessions as the two sides meant to try to end the lockout. New Mets manager of Buck Show Walter wondering winner if there will be spring training, hoping for the best. I think the players are two and uh, I'm gonna get into handicap and the walkout. But you know, we're trying to prepare for all scenarios, no one scenarios no one that it's probably completely to

be completely sum We're gonna try. We'll find out tonight who's going into the Baseball Hall of Fame. David Ortiz is expected to make it. Actually, we're Bloomberg Sports, all right, John, Thanks sixty seven on Wall Street. Time to take a look at stocks, some of the names moving in the pre market. Bloomberg Radio on TV. Markets correspondent Creedy Goopta joins us now starting off Credy with a big deal

that's no longer a done deal in the chip sector. Yeah, let's just start off with Nvidio n v D as your taker. Down three point two percent in the pre market. This is coming afternows that they're quietly preparing to abandon their purchase of ARM from soft Bank after making little to no progress and winning approval for the forty billion dollar chip deal, as according to people familiar with the matter,

scoop from our folks over in San Francisco. This is important because we know and Video has been dealing with a lot of regulatory scrutiny both in the US and the UK. So this is a deal that has struggled to take off and now looks like they are willing to call it quits. So once again, down three point two n v d A. Moving on though, too, an earning story once again, Nathan, We're getting into the thick

of it, into the thick of earning season here. We're gonna kick it off with International Business Machines otherwise known as IBM, reporting a revenue last night that beating analysts estimates void by strong demand in the software unit, including IBMS hybrid cloud offering, signaling the company's efforts to transform the one hundred and ten year old tech giant. Well

they're working out. Those shares are up one point nine percent in the pre market, Nathan, And as you know, we've got a lot of earnings just this morning to get to him. Yeah, this morning, General Electric missing Wall Street sales estimates a ges R ticker down six point two percent, This comes after their grappling with supply chain

pressures the effects of the O macron variant. This is not a good look for the CEO, Larry Colepy is planning to break up the conglomerates starting next year, and it looks like it's not coming from a position of strength. So certainly a company to watch. In a similar vein J and J, which is also the ticker and the company name, down one and a half percent in the pre market. They also reported earnings this time though the guy it's beat the average analysts estimate. But why is

this dock down? It's because they're saying a good chunk of their sales growth came from their vaccine sales. Now we know this is a problem that we've seen with Maderna, that we've seen with Fiser that because all of their growth is coming from vaccines. As more and more people get vaccinated, the question is where is that next leg of growth going to come from. So J and J

once again down one and a half percent. I'll wrap it up here, Nathan with Microsoft, because they're the big company to watch after the bell m s FT is your ticker down one point one percent in the pre market. Plane to report second quarter earnings. That's their fiscal second quarter after the Bell, expected by analysts to be the first three month period in which sales top fifty billion dollars. Nathan, we'll see that very busy earning season continues. Bloomberg Radio

and TV Markets correspondent Creedy Gupta. As always, thank you for the pre market check up as we look at markets as a whole ahead of this Tuesday morning open. More pain perhaps future is now down fifty points down, futures down two two. Nasdaq futures are lower by two hundred forty eight points, a drop of one point seven percent. The tenure down three thirty seconds, the yield one point seven eight percent. Latest on tensions with Ukraine and more

from the nation's capital. Next with Bloomberg Government reporter Emily Wilkins. This is Bloomberg Bloomberg eleven three oh Weather partial clearing late today with a high near forty, sunny, breezy cold Tomorrow has only the low twenties will make get up to thirty on Thursday. Right now thirty seven in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com. The Bloomberg Business at and at Bloomberg quicktape truce. He's a Bloomberg Business Flash. He

good morning. I'm Karen, Moscow future is falling this morning. Let's go to the first word breaking news dance for today's morning call. Here's Bill Mall only bull good morning and good morning Karen. That's right. US features are in the red right now, with Doubt futures down two three point s simes drop fifty seven old, Nazdek futures are off by two seventy four, the US ten year old at one point seven nine percent, Gold is down five, oil is little change, and bitcoin is down by one

point five percent. Shanghai dropped two point six percent overnight. Well UPM markets are in the green, led by one percent gains in France and Spain. Back in the US on the Economic find a ten o'clock consumer confidence and Richmond fed after the bellas night, IBM had its biggest sales jump in at least ten years. And regarding some of the earnings this morning, at G revenue missed estimates, J and J two JUSTUS EPs forecasts beat estimates, and

three m EPs also beat estimates. In deal News and video is said to be planning to abandon its takeover

of arm holdings and wrapping things up. Snowflake was raised by over at Loop Capital Marathon, Petroleum cuts to neutral, over a Piper and Viacom CBS race to sector weight wreck, Keybank live from the first reconduced descom boom maloney care great, Phil, thank you, and to hear live breaking news of your Bloomberg had Squawk on your terminal squ a wuk and also crossing the Bloomberg with Fiser saying it started a study of a COVID nineteen vaccine that targets the omicron variant.

That's the Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. The US is putting as many as eight troops on heightened alert for deployment to bolstered NATO forces in Eastern Europe if needed, as Russian troops mass on Ukraine's borders. Russia has denied and intends to invade. In the NBA, the next lost in the NHL, the

Rangers won, the Bruins and Capitals lost. Global News twenty four hours a day on air and on Bloomberg quickdake powered by more than twenty seven under journalist and analysts are more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg. The following commentary is from Bloomberg Opinion. Sorry, stock traders, the FED won't have your back. I'm Brian Chapata, A Calums for Bloomberg Opinion. Bad news pandemic era investors, The Fed won't have you back as it once did.

Over the past twenty two months, the playbook has remained constant by any dips in large US equity market indexes and profit. But that hasn't worked in the first three weeks, with the SMP five hundred and NASDAQ one hundred each following by more than ten percent at one point. That's one clear hint the stock market is coming to terms with the reality that the FED put is disappearing in

the rear view mirror. Even after this latest swoon, It's highly doubtful the policy makers will be knocked off course at their meeting this week. There are four main reasons for this. The Biden administration is okay to tightening. Extreme hawkish calls from market watchers make the FED stated course

more palatable. The FED has been worried about market froth for a while now, and credit markets are still calm, so expect the Fed to use its decision this week to signal that it will raise the Fed funds rate from year zero in March and probably begin balance sheet run off around mid year, dialing back accommodation in the face that persistently elevated inflation. I'm Brian Schappata. For more opinion, please go to Bloomberg dot com, slash Opinion or opi

and go on the Bloomberg terminal. These has been Bloomberg Opinion and Boomer Opinion commentaries can be heard every weekday at this time, and terminal customers can read more at O P I N GO. It is six fifty on Wall Street. Let's turned to news and science and technology now. But the Bloomberg n j I T STEM report brought to U buy New Jersey Institute of Technology, ranking top fifty national public university by US News and World Report and at top ten for best career placement among public

schools by the Princeton Review. More at n j I T dot E DU Now here's this making news and science, technology, engineering, and math. New research suggests giving extra cash to low income mothers can change their infants brain development. Researchers say brain measurements at age one showed faster activity and key brain regions in infants whose low income families received three hundred dollars plus monthly for a year, compared with those

who got twenty dollars each month. The researchers are investigating whether the payments led to better nutrition, less parent stress, or other benefits to the infants. Fund managers without a c FAY qualification may perform better over the long term than those who have taken the exams, as according to a new study that looked at the careers and more than six thousand managers and found persistent performance was more likely and those without the charter and who studied technical degrees.

The c f A says other studies have opposite conclusions. And the world's biggest, most powerful space telescope has arrived at its observation post one million miles from Earth, a month after it lifted off on a quest to behold the dawn of the universe. The James Webb Space Telescope fired its rocket thrusters for nearly five minutes to go into orbit around the Sun at its designated location and as the Bloomberg n j I T STEM Report. Nathan

all right, Karen, thank you. We are live from the Bloomberg Interactive Broker Studios where it's just about six fifty two on Wall Street time now to check what's going on in d C. You are. Some of the top stories include US troops put on alert to boost NATO near Ukraine, President Biden targeting consolidation as he tries to tackle inflation, and the president caught in a hot mic moment with the reporter's question about the politics of price pressures.

Let's bring in Bloomberg Government reporter Emily Wilkins. Very busy times in the nation's capital, starting off with this latest news about troops now on standby from the Biden administration. What's the latest on the Ukraine tensions? Emily, Yeah, the US is putting as many eight thousands, as many as eight thousand, five hundred troops on high alert UH to go to eastern Europe. The US is saying that this is not a deployment, that they're not being sent to Ukraine.

They're saying this is a proportional response to what Russia already has at the border. But Nathan, let's be clear, this is certainly more than the Biden administration was doing previously, signally a more aggressive stance, and really in line with what President Biden said that you know, he does expect

an attack from Russia. Really at any point. That said, there's still diplomatic options open, uh, and that are being explored as far as what the US can do in terms of sanctions, in terms of diplomacy negotiations, remember of the US and need or is supposed to have this written response to Russia's list of demands. Um. But at this point, I just really think it speaks to how high tensions are right now and how much of a focus the White House is putting on Ukraine and Russia.

And we've heard from the Kremlin this morning morning that this US decision to put all these troops on alert is exacerbating tensions. Where does this leave room for diplomacy at this point? What are you hearing on Capitol Hill? So lawmakers on Capitol Hill, they're actually all back home right now, but there's still discussions, bipartisan discussions going on about what if any sanctions the US can put on

Russia at this stage. Looking of course at financial sanctions potentially cutting them off from the Swift banking program, as well as sanctions that would make it harder for them to get tips, harder for them to get US dollars, potentially things in terms of energy um and so those are all things that are being discussed right now, but we're not expecting any movement from Congress until they get

back next week. So at this point, I think most eyes are on the White House as far as how they are going to be moving, as well as the European allies. We know that French President has planning on having a conversation with Putin later this week. Biden talked with European leaders yesterday, So certainly lots of discussion going around UH with the US and its allies. And even with all this simmering Emily, we know the President is keeping his eye on domestic concerns as well, most specifically,

most prominently inflation. Yeah, so President Biden did talk yesterday a little bit about inflation. The route that the White House is really taking right now is to say that they want to cut down on major conglomerates of companies and make the market more competitive, saying that that is going to help reduce prices, both in the short term as well as in the long term. And of course, Nathan, the White House has floated a lot of theories about wine fla is at its height, um, but it's maintained

at this point. It's still been an issue for the White House, and it's clearly something that President Biden is getting frustrated over. We saw him give a I don't know if I can repeat the response for beatim on air, but a tense response to a reporter that he then had to apologize for after the reporter asked him about inflation and the mid terms. Yeah, I guess that that moment, that hot mic moment that I think has has gone

pretty viral at this point. What does it say about the frustrations that the president is feeling, not just potentially about the price pressures right now, but about his own political standing. I mean, President President Biden's approval ratings are

really at the lowest from his entire presidency. We've seen them consistently go down since August and his botched withdrawal from Afghanistan that was followed by his signature social policy and tax plan getting installed in the Senate Voting Rights his party pushed on that and wasn't able to make any progress in place, and is high oh Macron is is dropping a little bit, but it's still very much

a problem. Uh. And so to a lot of extent, the things that President Biden really set out to accomplish in his first year, many of them remain to be done. And time is really running out before the mid terms where there is a very real chance that Republicans will take the House, and and really deprived the Biden administration of being able to move any sort of policy in the last two years. Volatility on the geopolitical front along

with the markets. This morning, Bloomberg Government reporter Emily Wilkins, as always, thanks for the update from DC. Read more about all these stories on Bloomberg dot com or on the Bloomberg terminal, and as a reminder, you can follow all the latest on Bloomberg Radio in Washington as well at Bloomberg and one oh five point seven FM HD two.

Just to reiterate some of the breaking news this morning, Feiser says it has begun a study of a COVID vaccine that targets OH Macron, exploring its use in previously vaccinated younger and middle aged adults, as well as those who haven't received another coronavirus shot. Shares a Fiser right now down about one point one percent in the pre market.

We're also watching shares of G as well. UH. They are moving quite a bit lower this morning, as their overall fourth quarter revenue came in well shy of analyst estimates. We'll be watching those shares throughout the morning here on Bloomberg Radio and on Bloomberg Television, as well as as far as the border market goes. SMP futures are down fifty four points, Style futures down two and at thirty four. Nasdaq futures are lower by two hundred fifty one points.

The Tangure Treasury is down to thirty seconds, the yield now one point seven seven percent. Bloomberg Surveillance up next with Tom Keene, Jonathan Farrow, and Lisa Abramo. It's for Karen Moscow. I'm Nathan Hagar. This is Bloomberg