Bloomberg Daybreak: January 27, 2022 - Hour 2 (Radio)

York to focus on gun violence. On John Tucker, those stories straight ahead, I'm John stas Shower. Sports, the Heat beat the Knicks, the Nuggets beat the Nets, and they're

playing the women's semifinals at the Australian Open. That's all straight ahead on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg Washington, d C, Bloomberg one O 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 Hagar, and I'm Karen, Moscow and US futures, we're looking a stage a comeback, but they're

lower once again. It is currently six oh one on Wall Street and we check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SMP futures are down twelve points down, futures down eight eight, NASDAG futures down forty eight. The decks in Germany's down seven tenths of upper cent ten year treasury up eight thirty seconds. He had one point eight three percent. They yield on the two year one point one nine percent. Ninem Ex

screwed oil. It is little change at eight seven thirty four cents of barrel and bitcoin this morning at thirty six thousand, three hundred fifty dollars. Nathan Karen. Stocks did sell off overnight after yesterday's hawk is tilt from the Fed. We had seen some evidence of dip buying this morning, but as you mentioned, US futures are back in the red chair. J Powell is signaling a March interst rate hike, but stoking speculation as well about more aggressive policy in

the months ahead. I think there's quite a bit of room to raise interest rates without threatening the labor market. This is, by so many measures, a historically tight labor market. The yield curve flattened on the heels of those comments from j Pal this morning, two year yields are rising while tens and thirties fall. Former Fed Vice chair Alan Blinder expects to rate hike at every meeting going forward.

Think about where we are now, We're almost as zero rate four rate hike is puts you just above one per cent. That's hardly a central bank that's trying to clamp down on its economy. Former vice chair Allen Blinder says the Fed will continue to be data dependent. In this morning, money market surprising five rate hikes from the Fed this year, and US stocks sank after the Fed decision, Nathan, and that trend continued overnight with heavy selling in Asia.

We get the recap from blooming Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good morning Karen. The MSCI Asia Pacific INEX posted its biggest drop since February to hold a fourteen month lows, as a number of indexes in the region. Tajd Auno entered bad market and correction territory China's cs I three hundred twenty percent from its February pake to enter a bad market. South Koreas cost me also entering

a bad market. Australia's ESSEX two hundred was down ten pa cent from its August peake to enter correction in Singapore. Juliet Sale, Bloomberg Daybreak, All right, Juliete, thank you. So how much further is the Federal Reserve willing to let stock slide? We have a prediction from the world's biggest hedge fund, and Bloomberg. Rnita Young joins US Live with the details. Good morning, Granita, Good morning Nathan. It's the

burning question of the moment for market watchers. At Bridgewater Associates, co Chief investment officer Greg Jensen says the Fed could let stocks drop as much as twenty more. That would put the S and P five hundred below thirty hundred, near its pre pandemic level. Jensen says, so far, the decline over the past few weeks has been mostly healthy because it's deflated some of the bubbles, like cryptocurrencies. Live

in New York. I'm Goranita Young, Bloomberg Daybreak, All right, Grania, thank you about stocks are also under pressure this morning from earnings, including disappointing results from Intel. The shipmakers out with a weak profit forecast for the current quarter, and we get the story from Bloomberg's Charlie Pillett. The report is fueling concern that the cost of CEO Pat Gelsinger's turnaround plan will weigh heavily on the chipmaker's financial performance.

Though demand for server chips is helping bolster sales, the forecast ads evidence that profit is suffering from an Intel spending spree. Gelsinger, who took the helm last year, has embarked on an ambitious plan to overhaul Intel's manufacturing that includes a new factory hub and Ohio announced last week that could cost twenty billion dollars in New York. Charlie Pellet Bloomberg day Break, All right, Charlie, thank you. Shares

of Tesla are also dropping this morning. They're down one in the third percent after the company posted profit above estimates but warn't supply chain problems will persist. Ed Ludlow has details from our Bloomberg nine sixty newsroom in San Francisco.

Executives said that production volumes at the plant in Fremont California and in Shanghai have been a pressed for several quarters due to the ongoing supply chain crunch that includes, of course, a shortage of semiconductors, and that meant one big thing this year, Tesla will not be launching any new products. That means no cyber truck, no semi truck.

And the logic that Elon must put behind that was that if they don't have the parts to build or ramp up production of their existing products, then they shouldn't move quickly onto new products going forward. Ed Lovelow, Bloomberg News, San Francisco, and thank you the teker and age continue to roll in today. Up next to Apple reports this afternoon, and we get a preview from Bloomberg's Tom Busby. Well.

The big question for Apple's first quarter results how big were holiday sales of its new iPhone thirteens, as well as the iPad Mini, the MacBook Pro, the Apple Watch Series seven, and it's updated air party or phones. Also whether that global computer chip crunch and supply chain bottlenecks

impacted sales and production. Bloomberg economist forecast revenue during the all important holiday quarter top one D nineteen billion dollars, more than half of that from sales of iPhones on non adjusted earnings of a dollar ninety a share tom Busby Bloomberg Daybreak Thanks Tom. Earnings in Europe are also in focus. Shares of Deutsche Bank OR up almost five and a half percent. Germany's largest lender, says it will quote significantly exceed its revenue guidance for the coming year.

Deutsche Bank saw gains in debt trading and its mergery our merger advisory business in the fourth quarter. And turning to politics now, Nathan President Biden looks poised to make a mark on the Supreme Court. We're told Justice Stephen Bryer plans to retire at the end of this term. Senate Majority Leader Chuck Schumer is leading tributes to the high courts. Most senior liberal, he was a model jurist.

He had huge impact on people's lives in terms of voting rights, women, women's rights, and reproductive rights, in terms of the environment, and maybe most of all, on the a c a UH, the Affordable Care Act, making sure it's state. Senator Schumer is promising a quick timetable to confirm Brier's successor. President Biden has promised in aim a black woman to the High Court. And right now, SMP futures are down six point, Staff futures down fifty four.

Nasdaq futures are lower by eighteen points. The tenure treasury is up nine thirty seconds. The yield one yield on the two year one point one nine. Local news and to check of sports. Next, this is Bloomberg at six oh seven on Wall Street where eighteen degrees in Central Park. Still dealing with big delays on the northbound Connecticut Turnpike with two tractor trailers involved in an accident. John Tucker is here with more on what's going on in New

York and around the world. John and Na said, we're watching a powerful snow storm that's sent to sweep up the East Coast starting tomorrow. At Bloomberg, Meteorologist Rob Carolin joins us with the very latest. Good morning, Rob, John. The computer model is still not an agreement on the storm coming up for Saturday. The US model takes it out to see while most of the international models have

a fairly significant storm for the Triston area. I think that's why the National Weather Surfaces put a winter storm watch up for Friday evening through sat. Sturday evening for the coast, including the city in Long Island and Westchester County, New York. Looks like the snow will arrive by mid to day and afternoon tomorrow. In the Tristate area, should be done by Saturday evening. Right now, two to six

inches looks likely. John Bloomberg Meteorologist Rob Carolyn, Thanks check your flight this morning, and it's not because of the weather. United says it's experiencing an I T outage and teams are working to get it resolved. President Biden will promote his administration's efforts to fight gun crime in New York next week with Mayor Eric Adams, who's confronting a spade of violence, including the shooting deaths of two police officers.

The President will try to highlight increase federal funding for state and city law enforcement. A floria of meetings regarding Russia and Ukraine appear to have made a bit of progress. The story from Bloomberg's Aad Baxter. NATO Secretary General John Staltenberg is urging a direct meeting with Russia. We are prepared to listen to Russia's concerns. Real conversational how to uphold strength and the amount of principles all European insecuted

that we have old as well. In Paris, direct meetings with high level diplomats from Ukraine and Russia, both saying marginal improvement, have set up another meeting in two weeks in Berlin, and the US has delivered a letter to Russia with proposals to end the standoff. In San Francisco, I'm at Baxter Bloomberg Daybreak, New York's mt A looking at ways to prevent people from falling. You're jumping out of subway tracks. A test force plans to explore sensors

and platform doors. Homeless person this month killed a woman by pushing her onto the tracks in front of an oncoming train at the Times Square station. And Amazon dot Com was unable to escape a lawsuit filed by convicted murder in New York who claims the company's refusal to hire him as a delivery driver was discrimination. A judge rule that Henry Franklin's crime had no bearing at whether

he could deliver groceries. Global News twenty four hours a day on Aaron on Bloomberg Quicktake power by more than twenty seven hood journalists and analysts in more than one twenty countries. I'm John Tucker. This is Bloomberg Nathan all Right. John. Thanks, coming up to six ten on Wall Street. Time for the Bloomberg Sports update. Here's John all Right. Nathan. Nick's unable to beat the Heat in Miami. Trailed by fourteen in the first quarter, by twenty eight and the third.

The final a little more respectable. But Miami, who leads the East one at one ten to nineties six. The Heat had four players scored twenty or more, Duncan Robinson at twenty five. He made seven three pointers. The Knicks leading score was Obi Toppin with eighteen. Not a loss for the Nets in Brooklyn, where they are just twelve and thirteen. They were without the entire Big three as James Harden sat out for the minor ham spring injury. In Denver, scored forty two points in the third quarter

of the Nuggets one to one eighteen. Rangers skate tonight in Columbus, then come home tomorrow for Henrik Lunquist night. Seaton Hall lost at home to Marquette seventy three sixty three of the five is just three and six in the Big East Ash Party continues to steam roll at the aust only at Open six one, six three at the semifinals over American Madison Keys, Party has won all twelve sets, has only lost twenty one games. American Daniel Collins playing now he's won the first set of her

semifinal match. Introductory his conference of MetLife Stadium for new Giants, gentlemanager Joe Shane and owner John Mara. When asked about quarterback Daniel Jones said, we've done everything possible to screw this kid up. Shane seems happy with the incumbent QUB. I know he's a great kid. He's been in this

building the last two days. I'll talk to him. There's not anybody in this building that's said a bad word about his work, Ethic, passion, you know, desire to win, and I think you got to have those traits as a quarterback. And the kid has physical ability. You know, he's got arms strength, he's athletic, he can run. So I'm really getting I'm really excited to work with Daniel. A lot of other key decisions, including hired a new coach.

Shane will interview former Miami Dolphins head coach Brian Flores today. John Stashi aware of Bloomberg scores all right, John, Thanks. SESP futures down five point, Staff futures down fifty two, nests Act futures lower by eight points. Testlessar is down one point. Dan Ives of web Bush joins us Next Bloomberg eleven three oh weather high your thirty today with a winter storm watch kicking in tomorrow night, lasting into Saturday night. Two to six inches of snow possible from

an over easter tomorleshigs and mid thirties low twenties for Saturday. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business flash and I'm par in Moscow and you have stock in Next. Futures have been jumping around a bit this morning following US

sell offs marked by a hawkish federal reserve. We checked the markets every fifteen minutes throughout the trading day on Bloomberg and right now, SNP futures are a little change down. Futures are as well as well as Nest Deck futures. The decks in Germany is down half per cent the ten year Treasury up eight thirty seconds one point three percent, and they yield on the two year one point one nine percent. Nine X true oil is it'll changed at

eighty seven dollars forty two cents a barrel. Comex Scholl down one point one percent, down twenty dollars forty cents at eighteen eleven sixty an ounce. The Euro one point one eight nine against the dollar, British found one point three four oh shoo, and the yen is at one fifteen point to zero Bitcoin this morning at thirty six thousand,

four hundred sixty dollars. Today we are watching for the weekly report on initial jobless claims at at eight thirty Wall Street time, along with durable goods orders and pending home sales are out of ten. That's a Bloomberg business flash. Now here's John Tucker with Moore on what's going on around the world. John and sent a. Democrats Karen planned to move swiftly to replace retiring Supreme Court Justice Stephen Bryer. Dozens of United flights delayed this morning after the airline

reported a company wide technology outage. South Korea's military says

North Korea Fire two is suspended. Ballistic missiles into the sea in a sixth round of weapons launches this month, sports, the Nix and Nets both lose, and on the ice the Capitals lose the Bruins fault of Colorado in overtime after the Australian opened women's semifinals as Lee Barney defeats American Madison Keys in straight Sense Global News twenty four hours a day on a round Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts and more

than one twenty countries. I'm John Tucker. This is Bloomberg, Nathan John, Thank you, six nineteen on Wall Street Live from the Bloomberg Interactor Broker Studios. This is Bloomberg Daybreak.

As we watched sort of the market shifting this morning, We're continuing to keep our eyes on shares of Tesla after the electric carmaker reported earnings that came in at a record actually, but the shares this morning are lower by a little more than one percent with supply chain issues keeping the brakes on new models for Elon Muskin Company.

Joining us now someone who has been very bullish on Tesla and the tech sector more broadly, Dan Ives, Senior Equity research channelist and managing director at Red Bull Securities, Dan, Good morning. Seems like the supply chain, the outlook is what's got investors attention this morning. Isn't shaking your thesis at all on Tesla going forward? Yeah, I mean, look

not at all. I mean right now that they have a supply problem, on demand problem demand that Strive been supply by about and I think the big story from last night is Austin, which is the main factory now in the US that's actually open and start and produced cars, along with eight battery, which is probably the most innovative battery technology out there. You put all together, this is a knee jerk reaction and risk off market. I think

ultimately investors digestive as bullish. What about the fact that Elon Musk came out in the call last night something he hadn't done the last time Tesla reported earnings and pretty much confirmed that a lot of these delayed models like Cybertruck and some of the other models coming down the pike are going to have to be delayed even longer we'll be supplied. Is an unprecedented issue that we're

seeing for automakers around the world. For Tesla, they got to focus right now and ramping Model Y production and Model three because you're talking about five six, seven month weeks for those cars. The last thing you want to see them do is now trying to juggle another ball and bring Cybertruck into it. And it's a smart movie. You push you two thousand three. Right now, demand significantly

on stripping supply. They got to focus on ramping Giga Austin, Brewin, in Europe, and ultimately, if you look at EVS right now, I mean the Altar, the underlying story for Tesla is bullish. As they continue extend that lead on EVS, does it become more difficult to ramp up production in Austin and Berlin? Though, when the Tesla and a lot of other automakers more broadly are dealing with these supply chain issues, no doubt.

I mean, Tesla is let's say, gotten from about fifty percent growth in terms of deliveries just coming year when point four one point five million, if not for the chip shortage, that's probably closer to one point seven one point eight million. So so it's really taking off a chunk ten twelve percent of automobiles that can't be made because of the chip shortage. But again, this is something

where the street understands this. It's a reality. And if you look at the ultimate demand story and what's happened on the battery technology, which is super important, that's a big part of the competitive mode. That's what investors are gonna glean at this call. And even though it's a risk off market, look at a lot of these knee jerk reactions. Microsoft after market down five percent, up four percent once that they started. So I think you're going

to see that in this jittery tape. Yeah, I gotta wonder whether we're gonna see more jitters when Apple reports its earnings after the bell later this afternoon. Supply chain issues are in focus for them as well. Dan, It's gonna be a similar narrative as Tesla. Demand outstripping supply. We just can't make another five pots because coming out of China and the Asia supply chain. And I think this is just the reality investors are gonna grapple with

across chips, across the tech sector. But I do believe that it's something that's already started get baked into these stocks and what we were over sold names specifically names like Tesso and Apple, and I think you could fundamentals this week in the vacuum of FED news, it's been bullish for tech. Company is a fit and beat and I think that's important going forward. So when it comes to Apple, then in our last minute here, Dan, we're coming out of the holiday sales period as well, in

this reporting cycle that Apple's coming into. What's your expectation on what Apple is gonna come out with strongest product cycle in a decade in capputina, I think you look at iPhone units. We think they sold forty million during the holiday season alone. That would be the strongest holiday ever for Apple, even though they have a chip shorts

that took out about ten million units. Services is the key, that's the rate, and that's worth you know, we be one point five trillion and Apple it's a safety planking name in the market storm and I think this is one that's going to ultimately be another positive data point for tech in this sort of backdrop of a FED rising rate environment where investors are seeing at risk off interesting. Always good to get your thoughts stand on tech. Thanks

so much. Dan Ives is senior equity research channelist Managing director at Wedbush Securities, looking ahead to those Apple earnings after the closing bell today, The shares this morning are moving a touch higher. They're up about three tenths of one per cent. As for Tesla, still lower in the pre market after the forecast for no further products nor at least no new ones in this current year. Tesla shares right now down almost one and a half percent.

As for the broader market, kind of shaky. SMP futures down three points down Down, futures down forty six, Nasdaq futures little changed to in your treasury one point eight three percent yield. This is Bloomberg Bloomberg eleven three oh weather high in your thirty today. Winter storm watch tomorrow tonight Tomorrow night into Saturday, two to six inches possible from the northeastern mid thirties tomorrow low twenties for Saturday

eighteen degrees. Currently broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg e loving free to Washington, d C. Bloomberg to Boston, Bloomberg one six one does San Francisco, Bloomberg nine sixty to the country Sirius xm Cho one nineteen and around the globe. The Bloomberg Business app and Bloomberg Radio dot com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm fair in Moscow. We're just about three hours

away from the open of US trading. Time for the fine things you need to notice start your day. Brought to you by Interactive Brokers Global Analysts. Global Analysts helps you find new global investment opportunities. To diversify your portfolio and discover undervalued companies. Try Global Analysts today at i v k R dot com slash g a up first. Stocks are mixed around the world this morning. That's after

the Feder reserves hankish tone on interest rates. At one point NASDACK futures were down more than two percent, but they're now higher, but they've been jumping around. They are higher by about two tenths of a percent right now. Jeff Rosenberg of black Rock says the Fed has a tough job ahead. How difficult it is for the Fed to navigate to that soft landing that's implicit in those SEP forecasts, and that really raises the risks here, I

think for financial markets and black Rocks. Jeff Rosenberg says the market had anticipated a more dubbish message from the Fed, and now the question, Karen, is just how many times the Fed raises rates. Let's get the latest live with Bloomberg's Rnita Young. Good morning, Ranida, Good morning Nathan. Traders are ramping up bits to see five fit rate hikes this year that would bring the Central Bank's target rate

to around one and a half percent. The wagers are rippling through markets, with short dated bonds and equities slumping. Money markets are pricing thirty basis points of FED tightening in March. That means some see a chance for a fifty point hike and it all comes as fit. Chair j Pal strikes a hawk is tone and signals the first rate increase in March. Live in New York. I'm goned a Young Bloomberg Daybreak, need to thank you. Corporate

earnings are also weighing on stock shares. An Intel down more than two and a half percent after the shipmaker gave a disappointing profit forecast. An Tesla shares are down more than one percent care in the company set a record for profit, but more in supply chain problems will keep it from introducing new vehicle models this year outside

of the markets Nathan Politics front and center. President Biden has boys to make a mark on the Supreme Court afterward that Justice Steven Brier plans to retire at the

end of this term. The President has promised to name a black woman to replace Brier, and Bloomberg Josh wing Grove reports that would fulfill a campaign promise Bindness face pressure from the base, in particular voters of color for not doing enough on core issues, things like voting rights, things like police reform, and if you have the opportunity now to make a very high profile nomination, in particular if it is indeed a black woman, there could be

political dividends for the Democrats. Clomberg josh A wind Groves says Justice Brier is expected to announce his retirement at the White House today. And that's the five things you need to notice start your day. Brought to you by Interactive Brokers and straight Ahead your latest local headlines plus a check of sports. And this is Bloomberg. Thanks Karen. Six three on Wall Street eighteen degrees in Central Park, we got an accident on the inbound g w B

lower level. Details coming up in traffic. First, John Tucker with more on what's going on in New York end around the world. John, Good morning, Nathan. President Biden will visit New York next week to focus on gun crime. Let's get more of this report from Bloomberg's Lisa Matteo. Biden will high light efforts including increased federal funding for state and city law enforcement agencies. The money is intended

to fund beat officers and community violence prevention programs. The administration is also stepping up federal efforts to stop gun trafficking. The President will join Mayor Eric Adams, who is confronting a spat of violence. Since he took office on January one, five officers have been shot, including two who died after responding to a domestic disturbance call in New York. I'm

Lisa Matteo Bloomberg Daybreak. Winter Storm Watch is an effects starting tomorrow night for a system that made blanket parts of the city and Snall and Bloomberg Mediablo just Rob Carolin is tracking the storm this morning. Good morning, Rob, John. We still have some pretty serious disagreement between the major models on this storm. US model tries to take it out to sea and really gives no snow to the Tristate area. European model says, no, it's a major storm,

so we're gonna kind of ride in the middle. Right now for forecast totals, we are into our winter storm, watching along the coast and over the island and into Westchester County for Friday night and into Saturday. A snow she developed tomorrow afternoon and continuing to Sanity. The question is how much. Right now, we're thinking about two to six inches, with the highest amounts on the island. John

Alright Bloomberg meteorologist Rob Caroline. New Yorkers could boost weekly benefits for laid off workers and delay unemployment tax sykes for employers under a bill that passed the state Senate. New york six point two percent unemployment rate in December was more than two points higher than the national rate. Prince Andrew is casting blame back at Virginia Juffree over sexual abuse lawsuit she filed, saying her claims were barred

by her own wrongful conduct. In response to the suit, Andrew suggests that she was at least partly responsible for her own alleged injurist injuries to pray sis when she was a teenager Jeffrey Emstein lent her to Andrew for abuse. The British Defense Secretary says the UK could support NATO countries by increasing its forces to act as a deterrent

to any further Rutchet aggression. This comes a day after the US and NATO delivered written responses to Russia broadly rejecting Moscow's demands that the Western Alliance redraw its borders. She became part of an evening ritual for millions of lottery players. You landa vega the face so the New York Lottery on air drawings for three decades is called quits. Drawing out the syllables with an exaggerated flair. Became Vegas trademark and helped establish her as a New York institution.

Global news twenty four hours a day on Aeron, on Bloomberg, Quick Take, Power Up Blind, more than twenty seven hundred journalists and analysts and more than one hundred twenty countries. I'm John Tucker. This is Bloomberg, Nathan, Thank you, John on wall Street, John stash Art, the Bloomberg Sports that day, Thanks Navan. This for you to be a tough week. For the next day, lost by two in Cleveland, but

never in it. In Miami, they heat land by and the third quarter of the finals one ten to ninety six, East, needing Miami's down one in the last name, the Nix are floundering. They finished fourth in the East last season. Right now they are eleven. They played tomorrow in Milwaukee. The Nets played without the Big three no James Harden due to a hamstring injury in Denver. One in Brooklyn one eighteen I Jrola yokes twenty six points and your triple double Austin rivers at twenty five, all the three

in the second half. Seaton Hall lost to Marquette seventy sixty three. No native Aussee has won the women's singles in Melbourne's nineteen seventy eight Ashley Varty scenes on her way. The top seed has crossed sixth straight opponents, this time Madison Keys. In the semifinals six one, six three. Barty will play another American in the final is Danielle Collins. Just feed Ego Swayatteck six four six one. If Barty wins Saturday, she'll have won three of the four grand stands.

The men semis have rapilodal play and Matteo, Barrettini, Daville, Medvedev goes against Stefano, sits a flat. Joe Shane just tiers to do gentle manager. The Giants a lot of work to do since two thousand seventeen, the Giants tied for the worst record in the NFL. I think you can true to build the roster where you can compete today and build for tomorrow. So we're gonna do the

draft free agency ever avenue we can. We're going to continue to build a competitive roster, and we want to see progress, and we're going to continue to build with a long term in mind, you know, as we build it. But I think you can compete today and still build for tomorrow. Coach. The favorite said to be Bill's offensive winter, Brian day Ball, you worked machine and Buffalo. John Sta

actually wear Bloomberg Sports all right, John? Thanks? Almost six thirty eight on Wall Street, Let's take a look at stocks and some of the names moving in the pre market with Bloomberg Radio and TV markets correspondent Creedy goop that it's not just about the Fed, Creedy, it's about tech earnings. Yeah, they are coming in hot and heavy. We know, of course, Apples reporting app for the bell. But really, right now this morning, what's taking the cake

is Tesla and Intel. Let's start off with Tesla here t s l as your taker down one point one percent in the pre market. That's coming after the set a record for profit but warned that those supply chain problems will keep it from introducing new vehicle models this year while focuses on expanding production of its current lineup. That's gonna be a theme you're gonna hear across earnings altogether. That's a similar theme you're hearing an Intel earnings as well.

I n TC s your ticker down just shy of three percent after they gave a disappointing forecast for profit in the current quarter. They're saying demand for server chips there help, it's helping bolster bolster sales. Excuse me, but the forecast also adds evidence that profit is suffering from an Intel spending spree. We know that the CEO pad Gel singers trying to kind of execute this big turnaround plan for Intel, but right now the costs seemed to

be outweighing the benefits. Nathan, and we've got some tech m and a news as well. I mean the chip space is just very, very hot this morning, Nathan, Yes, M and A for sure. Let's just start with the A m D and Silence deal. This was of course announced a couple of years ago, but A m D looking to buy Zylings in a thirty five billion dollar deal.

The news this morning is that they've gootten that final leg of approval from Chinese regulators that have granted the deal, clearing the way for one of the largest deals to emerge from the global semiconductor industry. And remember, the acquisition had already won the blessing of regulators in the US, Europe and the UK, among other jurory dictions. A m

D is your taker. Down two percent in the pre market, classic merger arbitrage move this morning, x l n X as your taker for xy links up just shy of five percent. I'm gonna throw one last semis company at you, Nathan. That's going to be Lamb Research. This, of course is the semi equipment maker. We've been talking about this kind of a boom for semis broadly. Well, A chip equipment makers are even more volatile than those semiconductor companies. There's

just far more exposed that boom and bust cycle. Well, LAMB Research expecting revenue in its fiscal third quarter to reach about four point three billion dollars once again thanks. Supply chain conditions had worsened in late December and it ultimately hit the company's performance. L r c X as your taker, down three percent. Nathan, Yeah, there's that supply chain word again, Boomberg Radio and TV Markets correspondent Creedy gooped to like you say, supply chains will be a

theme throughout this earning season. Thanks as always, as we take a look at stocks as a whole ahead of the Thursday morning open, mixed action now with SMP futures down a point down, futures down twenty four, Nasdaq futures back in the green, barely up seven points, the tenure treasury of nine thirty seconds, the yield one yield on the two year one point one seven yield curve. Flattening continues this morning after the Fed. Stay with us. You're

listening to Bloomberg Daybreak, Bloomberg eleven three oh weather. We'll get up to your thirty degrees today. Tomorrow night winter storm watch kicks in. Two to six inches possible by the time it's done. Saturday, mid thirties tomorrow, low twenties for Saturday, currently eighteen degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape tru He's a Bloomberg Business Flash and I'm Karen Moscow and futures

this morning have been jumping around a bit. We go to the first Word breaking news desk to today's morning call. Here's Bell Maloney, Bill, Good morning, Hey, good morning, Karen. Your features are quiet right now with doubt features down thirty six point, sesipes drop three and nastic futures are lower by a point. The US A tenure yield at one point eight three percent, Gold is down eleven, oil is trading higher, and bitcoin is climbed by three point

while by three point one percent. Japan Pell fell overnight, while up markets are trading mixed this morning and back in the US on the Ecodomic Fronday eight thirty initial jobs claims and durable goods orders, ten o'clock, Penny Home Sales, and at eleven o'clock the Kansas City Fed. After the belast night, Intel gave a week forecast and Tesla's profit beat estimates, but it warned up supply change disruptions regarding earnings. This morning, look for McDonald's and MasterCard to report in

a pre market. In deal News, centeen is said to have drawn interests from Signa in recent months, and in other news, Netflix climb pre market after Bill Ackman butt more than three point one million shares, wrapping things up. Service Now was raised to overweight over At Piper Live from the First Third, Racing's descomb Bill Maloney, Karen, Well, thank you to hear live breaking news over Bloomberg type squawk on your terminal, ascue you a w K. That's

a Bloomberg business flash. Now, here's John Tucker with more on what's going on around the world. John, and good morning. Karen. Sent a Democrats plan to move swiftly to replace the retiring Supreme Court Justice Stephen Bryer, the Democrats making it clear they'll move quickly once President Biden makes his pick. Dozens of United flights delayed after the airline reported a

company wide technology outage this morning. At South Korea's military says North Korea is fired two suspected ballistic missiles into the sea. It's the sixth round of weapons launches this month, Sports Nicks and Nets Boat loose on the youngs of the Campitals lose. The Bruins fall to Colorado in overtime. At the Australian opened Women's Simon semi Finals, Ashley Barty

defeats American Madison Keys in straight sets. Global News twenty four hours a day on air on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts in more than one twenty countries. I'm John Tucker. Is is Bloomberg. The following commentary is from Bloomberg Opinion Chief. I'm Jonathan Bernstein, a calumnist for Bloomberg Opinion. When a president is unpopular, everyone starts identifying every piece of the administration as part

of the problem. In the case of Joe Biden, several mostly content free stories have criticized Vice President Kamala Harris. Next up, White House Chief of Staff Ron Klain. It's not even a little convincing. Clain holds a critical job, but the complaints about him seem trivial or contain evidence where interpretations shifts from good times to bad. Meanwhile, there's little evidence of backstabbing and unfortunate leaks coming out of this White House nominations are happening at a decent pace

and generating little controversy. The first year was unusually scandal free, nor would The withdrawal from Afghanistan is the biggest exception. Has implementation of policies been a large problem. That's all to Clain's credit. If the Democrats policies don't work as advertised or turn out to be unpopular once they're in place, I suspect Clain would step up and take the blame. But for the most part, it's elected officials and the

party overall who would deserve it. I'm Jonathan Bernstein. For more opinions, please go to Bloomberg dot com, Slash Opinion or O P A nd go on the Bloomberg terminal. These has been Bloomberg Opinion and Bloomberg 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. We turned to news and science and technology now at the Bloomberg and J. I. T. Stammer report, brought to you by New Jersey Institute of Technology ranked a 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

It's making news and science, technology, engineering, and math. Republicans faith and science is falling as Democrats rely on it even more, with a trust gap in science and medicine widening substantially during the pandemic. Overall, forty eight percent of Americans say they have a great deal of confidence in the sien sientific community, according to polling by the General

Social Survey. A new warning highlights the growing risk from space and junk as companies planned to launch thousands of satellites. Astronomers saved that debris from one of Elon Musk rockets will crash into the Moon. In March, the Falcon nine rocket was launched in and guinea worm infections dropped it just over a dozen worldwide last year, getting closer to fulfilling former President Jimmy Carter's dream of completely eradicating the

disease during his lifetime. The Carter Center said that declined as the result of years of public health campaigns to improve access to safe drinking water. In Africa when the Carter Center began leading the global eradication effort. In six the parasitic disease infected three and a half million people. And that's the Bloomberg and j I t Stem Report. Nathan all right, Karen, thanks for live from the Bloomberg Interactive Broker Studios where it's six fifty two on Wall Street.

Time now to check what's going on in BC, where some of the tough stories include President Biden getting his chance to make a mark on the Supreme Court, with Justice Brier retiring the U S holding firm, on Russia's demandsment the Ukraine standoff, and immigration back in the spotlight with Vice President Harris on her way to Honduras. Today, let's get more on what's happening in the nation's capital.

Bloomberg Government reporter Emily Wilkins is with us now. Emily, I think the announcement that we're expecting later today from Justice Brier is something that's probably not coming as too big a surprise for political watchers, but it certainly gets Politico's excitement up. Yeah, this is something that particularly for progressive in the Democratic Party, they've been pushing for for

a while. Their concern is that if Republicans should win the White House, and you might see something like what happened um near the Entrunster with UH Justice uh Ruth Vader Ginsburg passed away and he saw her replaced with a far more conservati individual on the court. UM. And so what sort of happened when biding on the White House was they looked at the oldest liberal on the court, Justice Stephen Buyer, and began to push for his retirement so a similar thing would not happen. And so at

this point they're getting their wish. Basically, Buyer has said that he will be retiring UH, and he won't leave until they've picked a new replacement for him. But this give President Biden actually have to nominate someone to the Supreme Court. At this point, Biden has said that he does want to pick a black justice, a black female

justice that would be a first for the court. There are a couple of names being looked at right now, but the key is trying to find someone who would have already have already been appointed by the Senate to a court UH and done so with Republican supports. You can go back to Republicans and say, hey, you voted for this person just a little bit ago, you should be able to support them again for the Supreme Court. But of course, uh, Democrats, they don't need any Republicans

as a support their nominees. They only he's uh all fifty of them to be on board. And so once again that means like people like Joe Manchin and Kristen si are really the ones to watch here and how this goes forward. Yeah, names that aren't familiar to anybody. Yeah, as we go forward here, Uh, let's take a look at the latest now on what's happening with Ukraine. Understand, the US has given its written response to the demands

that Russia had been looking for. The U s has that it hasn't been made public, and the White House that they are not playing to make it public. Um.

Russia's responded, um, good gave a critical response to those proposals. Um. I mean, some of these things that Putin has put forward out there, it's been very clear that he's not going to get as far as provecting Ukraine from joining NATO or fully ruling troops back to where they were in a King eighty southern But at this point it's the sort of the big diplomatic channels that is still open between the two countries and what they're trying to accomplish,

trying to make sure that they are able to keep discussions open UH and potentially head off any sort of invasion into Ukraine and UH. I understand that Vice President Kamala Harris was up really early this morning making her way down to Honduras. What's the focus there? So this is not the first time that Vice President Kamala Harris has been to the region. She went there because she was been as science to us, to the lead White

House person on the issue of immigration. And she's going down today specifically for the inauguration of a new Honduran president, and the hope is that the new president's policies, the new government's policies might help her some of the immigration that's heading up to the unit's southern border. UM and Vice President Harris, she's really good criticized for a lot of the work that she's done on immigration particular, have served the Biden administration when there was a surge in

individuals showing up at the southern border. Immigration has long been an issue that's really mobilized among the poor Republican days, and so you've seen Republicans music and often talk about it again and again and again, um and by President Harris. So she's now sort of renewing her focus on immigration now that the battle that she was leading Bravoni Rights

and the Senate is done. And so this trip is kind of just a part of an overall strategy for the Biden administration, not just to deal with immigration by the southern border, but by actually going to the country these immigrants are departing from and trying to see what they can do to convince these immigrants to to just stay in the place that they're from. Thanks for this, Emily. Good to get the update. Bloomberg Government reporter Emily Wilkins

with us from the nation's capital. Read more about all these stories on Bloomberg dot Com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington at Bloomberg and one oh five point seven fm h D two. As the market resets following yesterday's policy decision from the Fed and the hawk ish turn, futures at the moment are a touch higher. B C SMP futures up five points right now. DEL futures up ten NASTAC futures higher by forty seven points.

The tenure T Treasury is now up twelve thirty seconds, the yield one two percent. The yield on the two year right now one point one seven per cent. Tech earnings remain in focus. This week's Join us on Bloomberg Daybreak tomorrow will break down Apple's results when they come in after the closing bell Today. Gene Munster, co founder of Luke Ventures, will be with us for now. Bloomberg Surveillance is up next for Karen Moscow. I'm Nathan Hagar. This is Bloomberg.