Bloomberg Daybreak: January 26, 2022 - Hour 1 (Radio)

NYPD officer, Ambush Friday, has died. Plus there's confusion after a higher New York court diverse the ruling banning mask mandates. I'm Michael bar More ahead, I'm John stash Our. In sports, the next loss to the Lakers a win for the Islanders. The Devils lost in David Ortiz voted into the Baseball

Hall of Fame. That's all straight ahead on Bloomberg day Break on Bloomberg Eliming three O New York, Bloomberg, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine six, San Francisco, Sirius x M one nineteen and around the world going Bloomberg Radio dot Com and via the Bloomberg Business at Good Morning I'm Nathan Hagar and I'm Karen Moscow,

and US futures are rebounding this morning. 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. Right now, SNP futures are up forty seven points down futures up two hundred and sixty five and NASDAG futures up two hundred thirty five. Ten year treasury down three thirty seconds. You had one point seven eight percent and

a yield on a two year one point oh three percent. Nathan, Well, Karen, as you say, futures are rebounding this morning after another roller coaster riding yesterday's session. Let's get the details live with Bloomberg's John Tucker. Good morning, John, Nathan. SMP futures right now up one percent. The SMP five hundred closed yesterday at the lowest level since October. Technology shares were the biggest losers. Dip buyers did resurface near the end

of the day. Well, that wasn't enough to stop the SMP five hundred for posting at one point two percent loss. The index just shy of a correction, closing more than nine percent off it's record high from three weeks ago. Where do we go from here? Strategists from Goldman Sachs to City Group Now say the time to jump in is now. Golden strategists say any further weakness should be

seen as a buying opportunity. City strategists say their bear market checklist checklist suggests it's time to buy the dip. Live in New York. I'm John Tucker, Bloomberg Daybreak. All right, John, to thank you. The volatiery continued after hours at the release of Microsoft earnings, and right now shares are up more than three percent in early trading. We get more from Bloomberg's Doug Christner. The company reported after the bell, and the focus was on the Azure cloud computing business.

For the last quarter, revenue at the unit decelerated from the two prior quarters, and that weekend. Microsoft chairs in late trading, but then on the call with analysts, the company said the Azure sales growth rate would pick up in the current quarter, excluding the pact of currency fluctuations. Shares then recovered. Microsoft CEO Sakya Adela has turned the Azure business into a solid number two behind Amazon. Alphabet's Google ranks third, but it's adding resources to catch up

in New York. On Doug Chrisener, Bloomberg Daybreak, All right, Doug. Thanks. Meantime, shares of Texas Instruments are out more than four percent in early trading. The chip maker beat earnings estimates and gave an upbeat forecast up next. Earnings continue with about three dozen companies reporting today, including Tesla. We get more on the electric carmaker from Bloomberg's Tom Busby. The big focus will be margins and how many vehicles it expects

to sell this year. That's after Tesla ramped up production in a big way in twenty one at its Premont, California plant, also its facilities in Shanghai. It also expanded into Austin, Texas, where it's now headquartered, and into Germany. Also of interest, the latest on its long awaited cybertruck tom Busby Bloomberg Daybreak, Tom, thank you. Onside of earning,

today's key event for markets comes this afternoon. We get a highly anticipated policy decision from the Fed at two PM, and Bloomberg's Michael McKee has more Fed officials aren't going to be raising the cost of borrowing at this meeting. Instead, they'll suggest interest rates will be going up soon. The

Fed's current target rate is essentially zero. Policymakers will try to figure out how much it has to go up in order to bring inflation down to their two percent target, But don't expect them to publish a roadmap to how fast and how far rates will move, and when and how and by how much the balance sheet will shrink. Expect Chair J Powell to say that with geopolitical tensions, supply chain problems, and the COVID virus ever present, the FED will have to remain flexible, deciding policy on a

meeting by meeting basis. Michael McKee Bloomberg Daybreak. All right, Mike, thanks, So here's the Fed does have a tough road ahead. That's according to Nobel laureate and economist Paul Krugman. He says the central bank needs to slow down the economy but can't move too fast on rates. It sure looks as if the economy has hit the speed limit. Um, but it's that's a call for taking your foot off the gas pedal. It's not a call for slamming on the brakes. And so what they want to do then

it's the balancing act. How did they sort of, you know, get us to level off, to to slow down a little bit without throwing us into into a recession. No Bell Laureate Paul Krugman made the comments in an interview on Bloomberg Television. Stay tuned for live coverage of today's FED decision on a special edition of Bloomberg Surveillance. It starts at one thirty pm Wall Street Time on Bloomberg

Radio and Television. Well Nathan Geo Politics also near the top of today's agenda's Tensions continue to simmer with Russia and Ukraine. President Biden is indicating there is no plan to send US troops into the country, and Bloomberg said Baxter has the story. President Biden says he may move troops around and closer to Ukraine to be prepared for any eventuality, but we have no intention of putting American

forces are native forces in Ukraine. But Well, I said they're gonna be serious economic consequences if he moves, and also says Russia he believes understands how much of an enormous deal this is globally, and says if Russia invades, he would favor personal sanctions on Vladimir Putin in San Francisco.

I'm at Baxter Bloomberg daybreak Man. Later today at at the White House, President Biden turns his attention back to his economic agenda, hosting ten business leaders who will explain how the Build Back Better plan would boost the economy. Among those expected to attend are the CEOs of Ford, General Motors, Microsoft, and Salesforce, and I'm all Street today, Nathan. There's a fresh push to retain talent. Bank of America's out with a new plan to keep employees, and we

get the details live from Bloomberg's rned A Young. Good morning, Nada, Good morning Karen. Bank of America is giving almost all of its employees their share of a one billion dollar stock award. It goes to staff making as much as five hundred thousand dollars a year. That makes about nineties seven percent of Bank of America's global workforce eligible. CEO Brian moynihan says each eligible employee will receive between sixty five and six hundred restricted stock units based on compensation.

Don't get the full value in March, and shares will vest in equal payments over four years starting in it's the bank's latest move as competition heats up to attract and retain top talent. Live in New York I'm Rnita Young Bloomberg Daybreak, need to thank you in his five oh seven Now on Wall Street where in twenty two degrees in Central Park, we gotta crash on southbound Route two oh two by First Avenue and rare into tales

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. Flags are flying at half staff in New York City after a police officer gravely wounded last week in a Harlem shooting that killed

his partner has also died of his injuries. Officer Robert Mora was taken off life support at a Manhattan hospital four days after a gunman shot him and officer Jason Rivera as they responded to a domestic disturbance called Rivera died Friday. Morris family to sided to donate his organs just hours after he died. Leonard Agent is president and CEO of Live on n Why, responsible for organ donations

for all of New York City. Their son became a NYPD police officer to serve and protect and save lives, and they knew that that was true in his life, and they knew that he would want in his death to be able to save lives. H and with live on end wise as people will have a second chance of life thanks to officer, more chances are rising a powerful storm will sweep the northeast in the US. With more on its impact on New York and New Jersey,

here's Bloomberg meteorologist Rob Carolin. Michael, We're gonna be keeping an eye out for a storm system for a late Friday into Saturday across the Tri state area. It's going to be a coastal storm developing off of North Carolina. What's up in the air right now is the track of the storm. How close does it come to the coast. Right now, the models are suggesting a tract that may be too far to the east to dump a major

storm across the city. It looks like snowfall amounts could be on the lighter side, but again that still is very much up in the air, and we'll have more details on the track of the storm and how much we may get later in the week. Michael, Rob thank you, Sir, and appeals judge restored New York's mask man date yesterday after a judge in a lower court Monday rule that Governor Kathy Hokel's administration lacked the constitutional authority to order

people to wear face coverings during the COVID nineteen pandemic. Meanwhile, New York stat has seen in eighty six percent decrease in COVID cases since it's January seventh peak. Governor HOCl says, though deaths and hospitalizations remain elevated, two weeks ago we had over twelve thousand, almost thirteen thousand people hospitalized. Now we're down to hundreds, so it's still high, but uh and we're also still losing our friends and family and

our loved ones lost. Governor Hoboken residents rejected a two hundred forty one million dollar bond measure to build a new high school in a special election yesterday, one of the costliest school construction referendums in New Jersey history. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than ONNY seven hundred journalists and analysts more than a hundred twenty countries. Michael bar.

This is Bloomberg Naked. Thanks Michael front of five ten on Wall Street time for the Bloomberg Sports uptake, good money, John stash Rny Nathan and Nets have issues right now. Kevin Durant is injured, Kyrie Irving can't play home games, and a report that James Harden doesn't like living in Brooklyn and we'll opt out and explore signing with a

different team as a free agent next summer. The Nets lost at Barkleys, where their record is just twelve and twelve, beaten by the Lakers, who came in under five hundred, one of six nineties six Lebron James scored thirty three points, so did Harden, who had a triple double, but not much help. But Nick's played tonight in Miami the Islanders. After the slow start, I've moved over five hundred. They beat the Flyers for three and a Zach Parisse a goal.

They won seven of the last nine. The Devils have lost five of six, feeting at home by Dallas five to one. College Who's Rick Pettino's Iona Gales are seven seen and three with a win at Sienna. Rutgers, Fordham in Columbia all lost Australian Open, They'll be an American in each of tomorrow mornings two women's semifinal matches. Madison Keys will play the top seed Ash Party, who has not yet lost the set, and Danielle Collins Advance will take on Egis swyrettext you won her quarterfinal match in

three sets. It took three hours in nineties seven degree heat, A phone call plays to the Dominican Republic New York. Yeah. Poppy voted in on the first ballot, while Barry Bonds, Roger Clemens and Kirk Schilling all felt short in their final year on the ballot. Sean Payton resigned after sixteen years as coach of the New Orleans Saints. John stash Elly Bloomberg Sports all right, John, Thanks, has and P

futures are higher now by forty nine point. Staff futures up two hundred seventy nine, NASTAC futures up two hundred forty nine points. The tenure treasury down three thirty seconds yield one point seven eight percent ahead of FED decision day. A preview next at Bloomberg's Michael McKee Bloomberg eleven three oh weather sunshine but cold today, highs in the upper twenties will be near thirty tomorrow, chance for afternoon snow flurries on Friday, with behind the low thirties currently twenty

two degrees in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at Land at Bloomberg Quick Take, He's a Bloomberg Business Flash and I'm Karen Moscow. Nastack futures are signaling a sharp rebound as investors return to risk assets and strategists recommended buying the dip following the sell off. And this is all ahead of a Federal Reserve interest

rate decision as well. We checked the markets every fifteen minutes throughout the trading day on Bloomberg Guess and P futures are up fifty points this morning. Down futures up two hundred seventy seven and Astack futures up two hundred to fifty three, or one point eight percent. The decks in Germany's up two point two percent, ten year treasury down three thirties seconds. You have one point seven seven percent. The yield on the two year one point oh three percent.

Non ex screwed oils up six tents percent or fifty two cents at eighty six dollars thirteen cents of barrel comic schold at down three tenths per cent or five dollars forty cents at eighteen forty nine sixty announced the euro one point one to eight one against the dollar, British pound one point three four nine eight and the ends at one fourteen point one seven bitcoin this morning, moving higher at thirty seven thousand, six hundred and ninety dollars.

Today we are watching for reports on wholesale inventories at eight thirty Wall Street time at tenants new home sales, and we get the fence interest rate decision at two. That's a Bloomberg business flash. Now here's Michael Barr with more on months going on around the world. Michael, good morning, Good morning, Karen. Fearful of a Russian invasion into Ukraine, the US and NATO allies are ramping up efforts for

a diplomatic solution. Today France will hold high level meetings aimed at easing tensions between the two countries, but President Biden is warning the U S troops on standby to Europe may be deployed sooner than later. Russia deny as it plans to invade Ukraine. In the NBA, the Nets and Wizards lost the Celtics in far Riors one. In the NHL, the Islanders won the Devil's Lost Red Sox. Great David Ortiz was elected to the Baseball Hall of

Fame in his first turn on the ballot. Steroid taint at Stars, Barry Bonds and Roger Clemens were denied entry into Cooper's Town in their final year under consideration. 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 Barr, this is Bloomberg. Nathan Okay, Michael. Thanks, It's five nineteen on Wall Street Live from the Bloomberg Interactive Brokers studios.

This is Bloomberg Daybreak as we look ahead to a federal reserve policy decision coming down to two pm Wall Street Time. Let's get a preview now. Bloomberg Global Economics correspondent Michael McKee is with us in our studios this morning. Mike, good to have you with us. With all the volatility we've seen in the lead up to this meeting. You've got to wonder what, if anything, the FED is going to do or say to address it. Probably nothing. I would imagine that J. Powell will be asked about it

in use news conference. However, when markets go up, markets go down, the fact that you can't do a whole lot about that. They only worry if the markets are disrupted, as they were in March of twenty when they cut rates and nothing was moving. People couldn't sell, people couldn't buy. But as long as you can buy and sell, they leave you to your own devices. But it's very interesting as well to hear from a number of economists who are trying to prod the FED one way or the other.

On the one hand, you've got the likes of Nobel Laureate Paul Krugman saying, you know, maybe don't put the brakes on too fast here, And then you have Muhammad al Arian Bloomberg opinion columnists writing in the Financial Times yesterday the FED should stop asset purchases now. I mean, what's the balance the Central Bank's gotta strike here? Well, that's the question that they're gonna be answering around the

big table today. I think that the idea of stopping the tapering right now is probably a non starter for a couple of reasons. One because they've prepped the markets for it, and people have taken positions in terms of

what they have to absorb into. Because the amount of money that's still left for the Fed to buy is so small compare it's like about fifty billion dollars compared to their almost nine trillion dollar balance sheet, that it really doesn't make a difference, and they'd rather be predictable, and so I would expect them to go ahead finish the taper, and all eyes will be on the March meeting for a rate announcement, and what is the expectation going in on what the Fed could say about that

March meeting. There's a lot of pricing in at this point about whether there's going to be a twenty five basis point hike, even a fifty basis point hike. Could we get some kind of signal from Sherman Powem what they're thinking, Well, no question, that's a question that he will be asked about Verses fifty. But the fifty basis point idea has sort of faded from people's minds over the last week as they consider why the FED might

do it. There are still a lot of potential weaknesses out there, what happens with China and supply chains because of the COVID variant there, the possibility of a new variant, and the geopolitical tensions in Ukraine. All that could mean that the FED is going to be faced with an economy that is really slowing and the numbers for this quarter are already not great. Sow basis points has become

the consensus for what they're going to do. The statement has said for months and months, Uh, we're going to wait until there's substantial progress towards our twin mandates of full employment and price stability. And now we've got full appointment, but we're way above the two percent price stability target. So expect them to say something like conditions have evolved

to make a move towards tighter can tighter monetary conditions? Uh, possible in the next few meetings or sometimes soon a euphemism for march in our last minute here, Mike, you know you're gonna be taking part in the news conference.

What are you wanting to ask Chairman Pal today? Well, one of the questions is, uh, what is it going to take because for the for the FED to get this done, if they're going to do it, because most of the problem, according to the FED, is on the supply side, and the FED and its interest rates effect demand, and so it isn't clear that raising interest rates is going to cut off inflation, or at least it's going to cut it off without a noticeable effect on the economy.

So we'd like to know how they think they're going to do this, alright. Michael McKee, are Global economics correspondent for Bloomberg News, will be taking part in the news conference to following the FED Open Market Committee policy decision coming down at two pm Wall Street Time. Chairman Powell will be addressed reporters at to thirty. We will have full coverage on this FED decision day in a special edition of Bloomberg Surveillance that starts at one thirty this

afternoon Wall Street Time. You can catch it on Bloomberg Radio and on Bloomberg Television. Ahead of that, Futures moving higher midst of all the volatility we've seen this week. Right now, SMP futures are up fifty two points now, futures up two nine three NASDAC futures leading the gains this morning, up one point nine percent or two hundred

sixty seven points. The tenure treasury right now is down four thirty seconds, the yield one point seven eight percent, and the yield on the two year right now one point zero three percent. Checking European stocks right now, they're surging as well, with the German decks up two point two percent, so is the Cat in Paris a gain of two point two percent, and looking at Bitcoin it's on the rise as well, close to thirty eight thousand dollars.

We'll have much more on the market action ahead of the Fed decision, plus a big stock award to retain talent at Bank of America. Check your top stories of the morning. Next, this is Bloomberg Bloomberg eleven three oh weather sunshine up or twenties Today will be in the round thirty degrees tomorrow, chance of snow flurries. Friday afternoon highes in the low thirties. Right now twenty two in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio

in New York. Bloomberg e Living Freedom to Washington, d C. Bloomberg to Boston. Bloomberg one O six one to San Francisco, Bloomberg NOME sixteen to the country, Sirius XM Chado one nine and around the globe, the Bloomberg Business APT and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. We're just about four hours away from

the open of US trading. Let's get you have to day to the news you need to know at this hour. US futures are higher following another roller coaster ride on Wall Street. We get the details live with the Bloomberg's John Tucker, John and Karen n s and P futures right now up one point two percent, but global stocks still on course for their worst months since the start of the pandemic, heading for its worst January on record

after yesterday's one point two percent decline. But as the Composite Index filled two point three percent bi there are science to sell off good ease, Wall Streets fear gage. The vix fell from a one year high, snapping six days of games, and now strategists from Goldman Sacks the City Group say it's time to buy Live in New York on John Tucker Bloomberg daybreak Man. JOHNA was a

roller coaster ride from Microsoft investors as well. After the bell, the stock fell six percent on a revenue decline from its cloud computing business, but on the conference call, Microsoft executive said the Azure business can still drive growth and that soothed concerns. Right now, Microsoft shares are up nearly four percent in the pre market. Shares the Texas Instruments up in early trading. The chipmakers earnings and forecasts being

estimates up. Next, we get results from about three dozen customers companies rather including Tesla, analysts predict year every year growth approaching for Tesla. Today's big agenda item Karen is certainly the Federal Reserve. The Central Bank issues of policy decision and is expected to signal a March rate hike. We get more from Bloomberg's Viney Tell. Judace Bloomberg Economics says the Fed's goal is telegraphing a March rate increase as well as the balance sheet runoff in the aftermath

of the COVID nineteen economic rescue. Look for the Central Bank to do so cautiously, noting uncertainty and downside risks to the economic outlook given the impact of the omicron wave and whatever may lie next for the coronavirus. Judace Bloomberg Day Break, Finny, thank you, And on Wall Street today, there's a fresh push to retain talent, this time from Bank of America. We get the details live from Bloomberg's rand A Young, Good morning, Rady to good morning, Karen.

Bank of America is giving almost all of its employees their share of a one billion dollar stock award. It goes to staff making as much as five hundred thousand dollars a year. That makes about nine seven percent of Bank of America's global workforce eligible. CEO Brian moynihan says each eligible employee will receive between sixty five and six hundred restricted stock units based on compensation, and they'll get the full value in March, and shares will vest in

equal payments over four years. Live in New York, I'm Ranita Young Bloomberg Daybreak. Okay, Ranita, thank you. Straight ahead, we'll check your latest local headlines and sports. This is Bloomberg five thirty three on Wall Street. It's twenty two degrees in Central Park northbound. Root fifteen is closed at White Lake Road and Lafayette. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Michael Nathan, Thank you, sir.

President Joe Biden said he would consider personally sanctioning Vladimir Putin if he order is an invasion of Ukraine, escalating the US effort to deter the rush leader from more. President Biden told reporters that there will be actions should Russia's president decide to escalate things, not only in terms of economic consequences and political consequences, but the enormous consequences worldwide.

This would be the largest if he were to move in, will all those forced to be the largest invasives since World War Two. Russia denies it has any intentions of an invasion. Congressman Shawn Caston of Illinois spoke about the

Ukraine crisis and supporting Congress for sanctions. What we're talking about right now is putting um, you know, putting defensive weapons in place, putting defensive troops in place, and and and not not declaring war, but making it clear to Putin that there are consequences if he casses a Line. Congressman Caston spoke with Bloomberg's Joe Matthew. Tributes are pouring in for fallen NYPD officer Wilbert Mora. He died yesterday, the second NYPD officer to die in Friday's Harlem shooting.

The twenty seven year olds organs were donated just hours after he died. Leonard Ancient is the president and CEO of Live on in Why, responsible for organ donations for all of New York City. In such a tragic um, tragic story from New York Um, but people will have a second chance of life thanks to the generosity of the More family and Officer More. Leonard Ancient, President and CEO of Live on in Why, The chances are rising.

A powerful storm will sweep the northeast of the US late Friday and Saturday, bringing heavy snow, rain, and winds. It could potentially disrupt air, rail and road transportation as far as south as New York and New Jersey. A bok and residents turn thumbs down on a two forty one million dollar bond measure to build a new high school and a special election Tuesday, one of the costliest

school construction referendums in New Jersey history. The Bond failed sixty six Global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists analyists more than a dred twenty countries. Michael Barrn this is Bloomberg, Nathan, Okay, Michael, thanks five on Wall Street time for the Bloomberg Sports that Think with John Sesshire. Alright, Nathan. There had been a debate over whether David Ortiz would make you to the Hall

of Fame. He rarely played in the field. He was an average hitter his first six seasons in Minnesota, and he reportedly once failed a test for p DS. But Big Poppy ends up getting voted in on the first ballot, and fourteen years in Boston he was a ten time All starlett the Red Sox to three World Championships. No one else got in. Barry Bonds, Roger Clemens, Kirch Schilling all fell short, all in their final year on the ballot, Bonds and Clemens due to the p D. Shilling got

seventy one percent last year. When he said he didn't want the writers to vote him in, so they didn't, he dropped the fifty nets loss of the Lakers at Barkley's one of six nineties six Lebron James scored thirty three points, so did James Harden. He had a triple double for not much help with the ub s Arena Islanders and Flyers s free three in the third last rush for the Elanders dying second line, give me in the fourth three win. Loves the Islanders over five hundred.

The Flyers have lost thirteen in a row. Devil has lost to Dallas five one. American Danielle Collins has reached the semi finals in Australian Open. Stefano sits a fass into the men's semis, but an upset brewing now. Danil Medvedev has lost the first two sets to the Canadian Felix Lagier aliasa me busy week for new Giants to the manager Joe Shane, He's already interviewed Dan Quinn and Bryan Dable for the coaching job. Patrick Graham today, Brian

Flores tomorrow. The Saints for the first time since two thousand six, need a new coach. Sean Payton resigned. John stash Ellet Bloomberg Sports. Okay, John, thank you. It's five thirty seven on Wall Street time for the Tri State Business Report with Bloomberg's d Cory. Park Avenue's office towers are undergoing renovations in an effort to retain tenants. Lever House is embarking on a one hundred million dollar overhaul.

Dal Jones reports of the Secret Building is also undergoing major renovations in the Park Avenue, headquarters of JP Morgan Chase is being rebuilt. New York City will not investigate ELO's, an Upper East Side restaurant, for allowing Sarah Palin to dine indoors Saturday without asking for proof that she had a COVID vaccination. A spokesman for the city tells The Times the incident was not observed by a city inspector. Last year, Philip Morris relocated its headquarters from New York

City to Stamford. Anti tobacco activist said the move would be a test of Governor Ned lamont support for a ban on flavored vaping products. Lamont says he's still committed to that won't guarantee the proposal will be in his mid term budget plan. That your Bloomberg Try State 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 filiate radio stations around the world. Um Corney's Donahoe on k g r H in Houston. Almost eight percent of Americans expect ironflation in the next six months. I'm Steve Potas got on k of X and Los Angeles. We're talking about Activision Blizzards next three Call of Duty games going to both

future owner Microsoft's Xbox and Sony's PlayStation. I'm can i Head Film, BlueBag, Dab Digital Radio and Logs of boompolting that most global finance firms are planning to establish or expand in the UK this year. That's according to Evoy. I'm a Glory on w w J and Detroit. I'm reporting online used guard sailed tools are hot in the autow Street. Those are some of the stories are 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. The democrats ambitious Build Back Better package has stalled in Congress with little hope of recovery. But the most valuable parts of the plan could still be salvaged. They just need to be recast in a more fiscally responsible form. After all, the most important parts of Build Back Better, its proposals to fight climate change, reduced child poverty, and expand preschool and childcare are valuable

on the merits. The problem is that funding them appropriately demands more revenue than the plan originally called for. To bridge the gap, Biden should suggest trimming some outlays and looking elsewhere for additional funds. A plan revised along these lines would still be ambitious, but it would also look better to moderate Democrats and perhaps to a few open minded Republicans as well. Only then would it stand a chance of actually becoming law. 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 op i and go on the Bloomberg terminal. These has been Bloomberg opinion, and you can hear Bloomberg opinion editorials every week. At this time, terminal customers can read more at O p I n GO future is rebounding. SP futures up fifty six points right now, the OW future is up three D twenty three points, and NASTAC

futures are higher by two seventy seven points. The Tenure Treasury is down four thirty seconds. The yield one point seven eight percent on this Fed decision day. Will preview it next with BEMO Senior economist Jennifer Lee. Stay with us. This is Bloomberg Bloomberg eleven three oh weather sunny and cold today. Upper twenties will be near thirty tomorrow under sunshine. By Friday afternoon snow showers possible, low thirties. Currently clear

and twenty two degrees in central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com and Bloomberg Business Autland at Bloomberg Quick Tape. He's a Bloomberg Business lash and I'm pared. Moscow US dot index futures on the rise this morning, along with European shares ahead of a feeder reserved decision at which officials are expected to sig no plans for tightening policy. We checked the markets every fifteen minutes throughout the trading day.

On Bloomberg SNP futures of fifty six points down, futures have three hundred twenty nasday futures up two hundred seventy two. That's up one point nine percent. The dacks in Germany's up two percent. The ten year treasury down five thirty seconds. He had one point seven eight percent yield on the two year one point oh three percent. Nimex screwed oil is up six tents percent or forty eight cents at

eighty six dollars eight cents of barrel. Comex school down three tenths per cent or five dollars fifty cents at eighteen forty nine fifty announced. The euro one point one two seven nine against the dollar, British found one point three eight and the ends at one four teen point one nine. Bitcoin this morning also moving higher at thirty seven thousand, eight hundred dollars. That's 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 US and NATO are increasing military commitments to the Baltics and Eastern Europs. Fears over Russia invading Ukraine continue to rhy. Denmark, France, and Spain are all sending or offering to send military assistance the various parts of the continent. Meanwhile, European negotiators meet in Paris today. Russia denies it has any intention to invade, even though one hundred thousand of its troops

are at Ukraine's border. In the NBA, the Nets and Wizards lost the Celtics and Warriors one. In the NHL, the Islanders won the Devil's Lost Red Sox. Great David Ortiz was elected to the Baseball Hall of Fame and its first turn on the ballot. Steroid tainted stars Barry Bonds and Roger Clemens were denied entry to Cooper's Town in their final year under consideration by the Baseball Writers

Association of America. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analyist more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg. Nathan Okay, Michael. Thanks. It's five forty nine on Wall Street Life from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak as we

continue our coverage on this Fed decision day. We're joined this morning by Jennifer Lee, senior economist at Demo Capital Markets, as we look ahead to the Open Market Committee's decision at two pm Wall Street time. Jen, Good morning. A lot of expectation, of course in the markets for rate hikes and balance sheet tightening this year. What are you

looking for from the Fed today? Oh, good morning. You know, Okay, I will have to say I love all this central bank stuff as much as the next guy, but I love very glad when all of this is uh in

the open at two pm Easter. And you know, our base case scenario right now as it stands, is for the Fed to sort of change the forward guys a little bit and lay the groundwork for rate heis to start in mark, you know, using different language that they probably used in the past, like how they're going to assess progress and you know and feel that you know the case we're an increase in the FED funds rate has continued to strengthen, so we're looking for that to

happen and U and signal that asset purchases will be ending by mid March, and it would be very interesting, by the way, to think, are to hear what they're going to talk about in terms of q T as well and finally reducing the balance sheet. Yeah, certainly there's been some discussion about starting the unwind as soon as July. Do you think we could get further clarity on that

we should? Um? I think it was at the last meeting, or maybe it was as a nomination not hearing in January, but he did say that we will start discussing it at the next meeting, so you know, um, I'm sure this is this is going to be discussed and he will hopefully give a some hints about what their plans are going to be. But I think he said it's going to take a number of meetings to sort of hammer at all the details because it's probably going to

be complicated. Do you think the market is getting this right? The expectation for four rate hikes this year when the dot plots still penciling in three. I don't completely trust dot plot. Remember a long time ago, Jett Yell, I'm saying, you know, don't don't put too much, too many of your hikes in the dog pot. Blast basket. Um, But I think four rate hikes is the sort of the

consensus view. It certainly our view right now. But it's interesting how you know, everyone has been, uh, the market has been rushing almost adding it going in from like two hikes to three to four, and there's even chatter about five right now. But I think four it sounds like a very reasonable, um number of times to hike. Why do you think the FED needs to do, if anything, to address the volatility we've seen in markets this week? It seems as though market participants are really trying to

prod the FED here. Do you think we're going to get any discussion of that from Chairman Foul today? UM? I think that's a great question, and I've asked myself

that and uh, being by myself here in my whole office. UM. I think because of the volatility, because of all this new geopolitical risk that you know, that's that's that's that's heating up, you know, as if each day goes by, I think because of that, he will probably um, you know, again not pushed back against the market's expectations of about you know, three or four rate hikes this year. Um, but at least he will sort of downplay anything that's

even more aggressive. So that's why I sort of, you know, I don't take um, some of the chatter about a fifty basis point rate height two seriously because almost it'll almost be reading a panic. I think, what do you think the FED is really focused on right now? Is it just price pressures? The risk of further inflation, is a further support for the labor market. What's really driving the FED right now? In your view? Can I say all of the above. I think it's got to be

inflation first and foremomst. I think it's got to be an inflation. It's just been. They have a very unwavering focus right now on inflation. And after being accused of being you know, um asleep up the wheel, I think they're trying to sort of catch up right now. And especially when you had CPI hit what was a seven percent in December the highest and since since two, um, you know, and you saw the price pressures hit you know,

a broad range of of of of products. UM. So the supply ball x are still making it worse and and even though but the good news I would say is that at least we are seeing some little glimmers of a little signs that they are starting to ease a little bit we're seeing in some of the surveys as well, So that's you know, that's that's good news.

But of course, as you're mentioning, the job market is still super super tight, unemployment rate, you know, near a two year low at three point nine percent, and we're trying to we're in we're probably prosper pine starting to see some of the second round effects by showing up on the wages, with employers basically rolling out the red carpet, you know, throwing up rules pedals, lower workers with higher pay, and that's going to cause inflation to even rising further.

So I think that's the big focus is just basically inflation and the job market lots to unpack. As Chairman Powell addresses reporters at two thirty this afternoon after the Fed policy decision at two pam Wall Street Time, full coverage coming up Bloomberg Surveillance, a special edition one thirty Wall Street Time Today on Bloomberg Radio and Television. Ahead of that, Jennifer Lee of BEMO, thanks for the preview, Karen Nathan. It is five fifty four on Wall Street.

It's time for the Bloomberg Law Report brought to you buy American Arbitration Association. Business disfus are inevitable, resil faster with the American in Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a dr dot org. And let's get to the legal stories

we're watching this morning. From Bloomberg's Jeff Bellinger, the Biden administration is withdrawing its COVID nineteen shop or Test rule for workers at large employers after the Supreme Court blocked the measure from taking effect. City Bank, South Dakota based credit card division is asking a Washington state trial court to overturn administrative rulings that it owes business and occupation

taxes on revenue from activities in Washington. A state judge in Arizona rejected a bid by Google to end the lawsuit by Arizona's attorney general that claims the company's location tracking misleads consumers. 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. All right, Jeff,

thank you. Now, another legal story we're watching more than four of years after first considering affirmative action, the Supreme Court has agreed to hear two cases that could mean the end of race conscious admissions. In cases challenge admissions policies at Harvard College and the University of North Carolina. They want to overturn decades of Supreme Court president that allow universities to consider race to help create a diverse

student body. For more in the legal battle, Bloomberg student Grosso speaks to Audrey Anderson, who heads the higher education practice at Massberry and Sims. What was your reaction to the Court taking up affirmative action? Where you surprised, concerned, unfazed. Well, you know, I wasn't surprised that they granted review of the cases because some of the steps they've taken along

the way. They asked for the views of the Solicitor General, wanted to know the United States governments views in the case, which is one clue that they're interested in the issue. And then they had actually looked at the petition at more than one of their conferences, so for two weeks in a row they had considered the petitions. So when

they granted it, I was not at all surprised. I am concerned for the longevity of affirmative action in college admission given that they have now granted review of the case. But we will see what happens. So the first circuit affirmed the decision for Harvard's admissions process, and the fourth Circuit hasn't decided the University of North Carolina case yet, so there was no split in the circuits, which often leads the Supreme Court to step in. Is the Supreme

Court sort of jumping the gun? This is an unusual circumstance for them to be granting review of the case. Usually the Court would not grant review where there was no split in authority, and that's one of the reasons why I'm concerned about the longevity of affirmative action. There really is no good reason to grant review here unless at least four members and likely five members of the or I think that the decisions below are incorrect and they want to overturn them. That's the only reason that

they would grant review of these cases. Sassandre Anderson, who has the higher education practice at Bassberry and sim speaking at the Bloomberg June 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. Futures are higher this morning, s and P futures of fifty nine, boints NOW futures of three hundred thirty eight, and as the futures have two hundred and seventy five and still ahead of Bloomberg day Break, a check on the business headlines and all the news you need to start your day. This is Bloomberg