Bloomberg Daybreak: January 28, 2022 - Hour 1 (Radio)

with his partner. I'm John Sucker. Details straight ahead, I'm John Stashtower and sports, The Rangers, Islanders and Devils all lost, Raphael the Dallas reached the finals of the Australian Open. That's all straight ahead on Bloomberg day Break on Bloomberg eleven, Treeo, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius XM one nineteen and around the world Old on Bloomberg Radio

dot Com and via The Bloomberg Business. A good morning. I'm Nathan Hager, and I'm Karen Moscow. US Dock Index futures are little change this morning. We are coming up to five out one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SMP futures and DOWN futures are a little change. Nowsday futures up sixty two. The decks in Germany is down one and a half percent. Ten year treasury down

nine thirty seconds. You at one point eight three percent, Nathan, all right, Karen, we'll have more on the markets shortly. First, a powerful storm is bearing down on the northeast with the promise of snow over the weekend. Bloomberg meteorologist Rob Carroll and joins US Now with the details. What's looking like, Rob, The storms that's going to be developing off the North Carolina coast later today and developing explosively tomorrow off the coast of New England is going to produce quite a

bit of snow, especially for portions of New England. It looks like for the district in Baltimore, the snow which starts by late today and ends night only puts down about one to three inches. We'll be dealing with snow developing in the Tri State area during the evening hours, and it looks like the city is probably gonna pick up about six to ten inches, with areas of Long Island seeing over a foot. New England gets the jackpot.

The snow doesn't arrive until well after midnight tonight, but it comes down hard at times tomorrow and it's gonna be very windy. Parts of New England will seat well and excessive a foot all right, Rob, So when do you think the snow is gonna end? The storm will wind down in the district probably after midnight tonight went to three inches. Looks likely for the city it's gonna wind down late in the afternoon early evening on Saturday.

And from Boston, we're talking about the snow ending not until the early morning hours of Sunday, and again there was probably over a foot in Boston. I'm Rob Caroline Bloomberg. Daybreak, All right, Rob, thank you, and of course I'll be checking back in with you to get the latest all morning. Now to the markets where shares of Apple are front end center there at more than four percent in early trading after sales that beat estimates. They get the details

from Bloomberg Shirley Pellett. It's a sign Apple was able to work through a supply chain crunch fueled by the pandemic and chip shortages. The surprising strong results suggested fears

of supply upheaval were overblown. Apple CEO Tim Cook had worn late last year the shortages could cost a company more than six billion dollars in sales during the all important holiday period, but the tech giant navigated the crisis and benefited from a flood of new products, including the iPhone thirteen, Apple Watch Series seven, and updated Max in New York, Charlie Pellett Bloomberg Daybreak. All right, Charlie, thanks down the flip side of earnings this morning. Look at

shares of Robin Hood. They're down more than thirteen percent in the pre market after posting disappointing results pretty much across the board. Let's get the latest life from Bloomberg's Ornit a Young Good morning or Nita, Good morning, Nathan. A year after Robin had found itself at the center of a meme stock frenzy, it's now facing challenges that could be more difficult to overcome. With fourth quarter revenue and losses that were worse than expected, and the hits

came from all directions. Steeper net loss, lower monthly active users and options, and cryptocurrency trading lipped below third quarter levels. That's not all, robin Hood says. Operating expenses are expected to rise fifteen to twenty percent this year. Robin Hood was already down close to seventy Since it's July I p O and this morning, shares are down another thirteen percent in the pre market. Live in New York, I'm gonna need a young Bloomberg Daybreak re Ney to thank you.

The recent text sell off has taken a bite out of Mark Zuckerberg's fortune, and now Warren Buffett has surpassed the Facebook CEO. On Bloomberg's Billionaire's Index began. More on that from Bloomberg's Don Christner. It's a reminder of the enduring power of Buffet's approach to value investing. It also reflects a precipitous decline in tech stocks since the beginning

of the year. Since then, Zuckerberg, co founder of Meta Platforms, has lost fifteen billion dollars, and the richest person in the world, Elon Musk, has seen his net worth fall by fifty four billion. The relative resilience has been in value the bedrock of Buffet's investment philosophy. His Berkshire Hathaway has outperformed TEX so far this year, declining just four. Tech is down in New York on Doug Prisoner, Bloomberg Daybreak.

Thanks Doug, and you can blame some of that Tech weakness on the Fed, as investors now brace for a possible five rate hikes this year. This morning, there is an important economic reading that the Central Bank watches closely, the Employment cost Index, and today's reading could be another

hot one. Let's get more from Bloomberg's Viney del judas everyone likes a fatter paycheck, and the third quarter employment cost index posted a record increase at the same time we all pay as businesses lift prices to recover labor costs. Bloomberg Economics, as today's number could be a keeper as inflation rages. It's more reliable than average gy really earnings as it's less affected by specific industry trends. Judai s

Bloomberg Daybreak, Many thank you. Back to the markets now, Oil trading near its highest level in seven years, and fact crude is headed for a sixth straight weekly gain traders. A robust demand plus heightened geopolitical risks are causing the gains and checking prices Now nine x Scrude oil is up a third of upper cent or thirty one cents

at eighty six dollars two cents a barrel. Brent is up four ten percent at eighty nine dollars seventy three cents, certainly a far cry from the height of the pandemic here and when oil touched thirty three dollars of barrel speaking of the pandemic, looks like Hong Kong is making a move to ease COVID restrictions, shortening quarantine requirements for incoming travelers. Bloomberg Daybreak Asia anchor Brian Curtis has the details. The Hong Kong government is reducing the quarantine from twenty

one days to fourteen. That's still about the toughest in the world, and Hong Kong is maintaining a ban on people arriving from eight countries, including the US, the UK and Australia. The shorter quarantine period will begin February five. After fourteen days in a hotel room, people will have to self monitor for seven days. Brian Curtis Sploomberg Daybreak, Brian, thank you staying in Asia right now. Toyota finished out

one is the world's top selling automaker again. The Japanese company kept production on track despite a year of so Apply chain turmoil. Toyota and its subsidiary so It ten and a half million vehicles at ten percent increase. Runner out Volkswagen Soldier shy of nine million s and p futures again. Little change this morning and straight ahead your latest local headlines plus a check of sports. And this is Bloomberg. Thanks Taring. It's five oh seven on Wall Street,

snow showers already in Central Park, thirty degrees. Racing for even more from this northeastern headed our way details coming up first John Tucker with more on what's going on in New York and around the world. Happy Friday, John and Nathan. New York City police officers will give a final salute today to Jason Rivera, a rookie cock gunned

down with his partner a week ago. A funeral mass planned at St. Patrick's Cathedral for the officer, who, at age twenty two, was recently married and barely into a second year of service. Cardinal Timothy Doland will preside over the service. The city's top leaders will attend. Rivera and a partner officer, Wilbert Mora, were fatally wounded January one by a gunman who ambushed them in a hallway as they responded to a family dispute. Moura's funerals being held

next week. I had a call at Ukraine's leader. President Biden has reaffirmed total support the story from Bloomberg's at Baxter. In a White House readout, Biden underscored the commitment to Ukraine's sovereignty and territorial integrity. Biden said he's exploring other macro economic support and a decisive response of russia troops invade. But as communications continue to go back and forth, State Department Deputy Secretary Wendy Sherman says Russia continues to move

at the border. Certainly see every indication that he is going to use military force. Sherman says sometime between now in mid February. Russia says, meanwhile, it will need time to look at US proposals. In San Francisco, I'm at Baxter Bloomberg Daybreak, President Biden says he'll name his choice to replace retiring Supreme Court Justice Stephen Bryer by the end of February, and I'm saying his retirement. At the White House yesterday, Brier reflected on his decades on the bench.

When you sit there and see all those people in front of you, people that are so different in what they think, and yet they've decided to help solve their major differences under law. President Biden intends to nominate a black woman to replace Brier. Former Alaska Governor Sarah Palin was spotted dining out again at a New York City restaurant two days after testing positive for the coronavirus. The visit to the m scale ilios drew attention from photo

snapping bystanders. Palin had also dined at the same restaurant on Saturday, despite his city rule requiring patrons dining indoors at restaurants to be vaccinated. Global News twenty four hours a day on air and on Bloomberg Quicktake were powered by more than twenty seven hundred journalists in analysts in more than one hundred twenty countries. I'm John Tucker, This is Bloomberg. Nathan Okay, John, thank you. Coming up to five ten on Wall Street Time for the Bloomberg Sports

Up Day. Good morning, Johns Tesshower, Good morning, Nathan Raphael the DA only one of tennis's big three who's playing the Australian Open. Roger Federer injured. Novak Djokovic deported Nadal into the finals, beat Mateo Barrettini in the four set semifinal. The other semi going on now Ddale Medved had won the first set with Stefano sits a pass. Only one says that Dal won the Assie Open that was thirteen years ago. If he wins Sunday, he surpasses Federer and Djokovic.

Currently all three have one twenty Grand slams. Rangers in Columbus up to nothing five minutes in but then down four to two. Blue Jackets won five three. Artemi Panarin was in on all three Ranger goals. Islanders lost to the King three to two, so l A went two and one touring in the New York area. The Devil's lost in Tampa three two. They dropped six to seven at the Garden Tonight. It's the Rangers in the Minnesota Wild and Henry Lunkwist will have his jersey number thirty

retired in advance. He went on the Tonight Show with Jimmy Fallon. It's amazing. It's a surreal feeling, you know, to have. Obviously, the moment itself is going to be incredible, but Olson opportunity to bring all the people uh to Madison Square, guard people that meant so much to me throughout my journey, friends, family, and most importantly all the fans to support me throughout my career. It's gonna be amazing. That. Plus fifteen years the Rangers starting goalie. Two NFL teams

hired new coaches, Nathaniel Hackett and Denver. He's been the offensive praater in Green Bay, Chicago, going with Indianapolis assistant Matt Ebert Floss. The giants said to me deciding between Brian Dable and Brian Flora, as a decision could come today or tomorrow. John stash were Bloomberg Sports, Nathan Okay, John thanks SMP futures right now down three point, Staff futures down seventy nine. Nastack futures are higher, up fifty

one points. Buoyed by Apple earnings, Apple shares up four percent in the pre market after sales and revenue that clawberd animals testaments will dig into the numbers. Next with Gene Munster, co founder of bloom Ventures. This is Bloomberg Bloomberg eleven three oh weather. You know what's coming. Lots of snow six to ten inches possible in the city, more than a foot on Long Island tonight into tomorrow night with the northeaster on the way. Currently snow and

thirty degrees in Central Park. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business Atland at Bloomberg Quicktake, This is a Bloomberg Business Flash and I'm Karen Moscow. Nasdack future is moving higher this morning after strong earnings from Apple, while European shares are falling, extending a drop after Germany's economy shrank more than expected. We checked the markets every fifteen minutes

throughout the trading day on Bloomberg. Right now, it's in p futures. They're lower, down about eight points, and death futures are down one hundred nine. Well, Nasdack futures are higher, up forty two the daks to Germany's down one point seven percent. A ten year treasury down ten thirty seconds. At one point three percent. They yield on the two

year one point to one percent. Nine Max Screwed Oil is up six tens percent or fifty one cents at eighty seven dollars, thirteen cents of Barrel Comic School down two tenths per cent or four dollars at seventeen ninety one. Announced the euro one point five against the dollar, British found one point three three seven six and the end at one fifteen point six three Bitcoin and this morning moving higher at thirty six thousand, five hundred fifty dollars

and Apple shares this morning up four percent. That's a Bloomberg business flash. Now, here's Michael Barr with more on what's going on around up. Here's John Tucker with more on what's going on around the world. John, Good morning, Good morning. Karen Rushes. Foreign Ministers says the American proposal

to defuse tensions with Ukraine contains rational elements. President Biden's his will name his choice to replace retiring Supreme Court Justice Stephen Bryer by the end of February, and the Biden administration says it's recommended changes to China's requirements for COVID nineteen quarantine and ten sting among American diplomats, sports rangers and Islanders Devils all lose basketball. The Warriors beat the Timberwolves tennis. Raphael Nadal advances to the finals of

the Australian Open. Global News twenty four hours a day on are Ind on Bloomberg Quicktake Power by more than twenty seven hood of journalists and analysts and more than one hundred twenty countries On John Soccer. This is Bloomberg. Nathan, all right, John, Thanks, It's five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg

Daybreak with tech earnings in focus this morning. Obviously, the big story is Apple, and the shares are surging once again this morning, up nearly four percent after the iphonemaker came out with revenue and sales that blew past Wall Street estimates even in a supply chain crunch. Let's get more on these results now. Gene Munster is with US co founder of Luke Ventures. Gene, Good morning, eleven percent sales jump in the quarter. Does that surprise you at all?

At first? It did, but as I kind of stepped back, I should have been surprised. They make the world's greatest consumer products. Arguably, I think there's really show it and this is what happens when you do that. There is an asterisk next to that eleven percent growth. If not for the supply chain headwind, they would have grown at eighteen percent off of tough comps. And so I've I've seen a lot of Apple quarters. I've studied this company for twenty plus years, and there's so many good quarters.

They just kind of, at some level just blur together. And there's a recency biased here that I'm trying to guard against. But ultimately, I think this is just such a memorable quarter because they did it with so many headwinds against them and had some positive outlooks for March. Quite quite quite memorable. Does this give give you a reason to look at the tech sector more broadly and think maybe the sell off that we've seen in recent

days might have been overdone. There is a moment, a fleeting moment, where I thought, just the relief that the icon did well and that just well, it did phenomenal in this and I felt like that was a relief. I do. I think that that's going to be a relief today tomorrow, But I think if you kind of look at the broader arc of where this is going, and I'm drifting outside of my area of expertise into monetary policy here, but the I still think there's some work that the FED needs to do. I think that

tech stocks in particular are more sensitive to interest rates. Um, we're talking about some inflation numbers next month, and ultimately I think that that could continue to pressure some of these tech companies. But this I think that that kind of misses the broader point. And to your question is that we're going to start to put a bottom in some of these tech names, probably over the next three months.

And I think at the point where the FED starts raising rates, I suspect that we're going to start to see uh, you know appleby properly rewarded. They won't get full credit for this quarter. If they did the stock, would you have twelve percent right now? They're not going to get it. Eventually, I think they will be credited for it. How do you see Apple navigating this quarter

and going forward into two. You've got to think that supply chains are going to continue to be a headwind to a pretty great extent going forward, at least in the mid term for sure, and you know they talked about the impact is lessening. I think that that buries the headline, which it's still a measurable impact. In the March quarter, probably about four percent of their revenue they're

going to miss out because of the supply chain. What what is uh in the case of Apple, what is surprises that even in holiday quarter they still are able to capture that revenue that gets delayed in the in the subsequent quarter. And so when you see these delays the impact of Apple, they give preferential treatment with their suppliers and and customers are willing to wait. In the case of iPads, right now, the lead times in six countries are forty plus stays usually their same business day

at this point. So it is a um it's Apple is has the luxury of being first in line, and also customers allove their products. At think as far as the broader supply chain, it's still going to be messy and um, you know, most people are thinking this goes through uh two thousand twenty two for this year, who knows, maybe it's one, maybe it's two years. And I think it's still going to be kind of nagging at these

earnings calls over the next few quarters. Looking at the tech sector more broadly, Gene, why are tech stocks affected so much by higher interest rates the tightening environment that we're expecting. There's two classes. The first class is kind of the big cap they have been affected, but it's been relatively modest there, you know, it's kind of down in similar amount that the nazeg is down something like that. Uh. And then there's the other class UH as kind of

these earlier less profitable companies. And the answer questions the reason why is that every uh percentage increase in the interest rates has an impact on how investors value these companies. There that's the classic discounted cash well, and usually a one percent increase in interest rates has some between a ten and negative impact on earnings. And so when you have companies that's the simple reason why is the tech companies are more sensitive because they've got more variability in

their earnings. Therefore they're more sensitive to interest rate increases. Well, at the moment, we are seeing a bit of a tech bounce this morning on the back of those very positive Apple earnings. Gene Munster, as always, thanks for the insights.

Gene Munster is co founder of Loop Ventures, and looking at the market broadly mixed picture, but tech is on the rise, with SMP futures right now down almost four points, STOW futures are down seventy four, NASAC futures higher by fifty seven points, and again, Apple shares in the pre market are up four percent. The ten your treasury right now down nine seconds, the yield one three percent, and the yield on the two year one point to one. Just ahead, getting ready for a major winter storm in

the Northeast. We'll check your tops Storia's next. You're listening to Bloomberg day Break Bloomberg eleven three oh weather that Northeastern is gonna bring a six to ten inches of snow in the city, more than a foot possible on Long Island to the four in New Jersey. Right now snow thirty degrees in Central Park. Broadcasting live from the

Bloomberg Interactive Broker Studio in New York. Bloomberg Living Free to Washington, d C. Bloomberg ninety one to Boston, Bloomberg one O six one to San Francisco Bloomberg and I'm sixty to the country, Sirius XM to the one nine team and around the globe to Bloomberg Business in Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm camerin Moscow, or just about four hours away from the

open of US trading. Let's get you up to date of the news you need to know at this hour. That powerful snowstorm is heading for the northeast. Stay tuned for the latest for the Bloomberg meteorologist Rob Caroline in just a moment. But first nasday futures are higher thanks to Apple. The stock is up four percent in early trading after sales that beat estimates. Ed Ludlow has more from our Bloomberg nine sixty news room in San Francisco.

Apple recorded record revenue of the hundred and twenty four billion dollars in the fiscal first quarter, record sales across segments like the iPhone, wearables, mac and services. There was disruption in the supply chain, particularly with semiconductors that largely impacted the iPad where sales missed estimates. But things look bright for Apple as they go into a big year in two Ed Ludlow Bloomberg News San Francisco. Alright ed thanks on the flip side. Shares of robin Hood are

down fourteen percent this morning following disappointing earnings. Let's get

the latest live from Bloomberg Junita Young, Branita Nathan. A year after robin had found itself at the center of a meme stock frenzy, it's now facing challenges that could be even more difficult to overcome, with fourth quarter revenue and losses that were worse than expected, and the hits came from all directions, a steeper knit loss, lower monthly active users and options in cryptocurrency trading slipped below third

quarter levels. Robin Hood was already down close to sevent Since it's July I p O. And that's before the latest earnings. Miss Live in New York. I'm Gonnita Young, Bloomberg Daybreak, Rannita, thank you. Economic data also and focus this morning at ten am Wall Street time, the Labor Department issues its Employment Cost Index. That's the broadest measure of labor costs and one that the Fed watches closely.

The Incorporate News Karen Toyota is back on top, finishing out one is the world's top selling automaker again, Toyota beat out Volkswagen by roughly one and a half million cars, and back to the markets. Now oil is trading near its highest level in seven years. In fact, crude is

headed for a sixth straight weekly game. Traders say robust demand plus heightened geopolitical risks are causing the gains and checking prices now nine x Scrude oil is up three tens per cent or twenty seven cents at eighty six dollars eighty nine cents. Of barrel Brent is up four tenths per cent at eighty nine dollars sixty eight cents, and again NASDACK futures are also higher this morning, up

fifty six points. S and P futures are lower, down four and a half, and down futures are down ninety one ten year Treasury down ten thirty seconds, yield one point eight three percent, the yield on the two year one point to one per cent. Comics gold is down a quarter percent or four dollars twenty cents at seventy announce straight to had your latest local headlines plus the check of sports. This is Bloomberg three on Wall Street. Snow showers thirty degrees in Central Park around the leading

edge of the northeaster. John tuckers here with more on what's going on in New York and around the world. John, Good morning, Nathan. A morning funeral mass planned at St. Patrick's Cathedral for a rookie police officer gunned down with US partner a week ago. Details in this report from Bloomberg's Lisa Mateo. Jason Rivera was twenty too. He was recently married and barely into his second year of service on the force. Cardinal Timothy Dolan will preside over the service.

Many of the city's top leaders will attend. Rivera and a partner officer, Wilbert Mora, were fatally wounded January twenty one by a gunman who ambushed them in a hallway as they responded to a family dispute. Maura's funeral is being held next week. Thousands of uniformed officers, as well as ordinary citizens, filed into the cathedral yesterday for Rivera's wake. Friends and fellow officers remembered Rivera and Maura as caring

and dedicated. Lisa Mateo, Bloomberg Radio. Major winter storm expended to reach most of the East Coast today. Storm watches and warnings are posted and Bloomberg Media rounda just Robbed Carolin tracking the storm for us this morning. Rob John While the models haven't come completely together, but they are

starting out to get closer in their solutions. So we're gonna bump up the totals, particularly from the city east out over Long Island will be parts of northwestern New Jersey that picked up about four inches from the storm. It looks like as you cross into the city, six to ten inches is likely. Once you get out on cross Long Island, we're talking about foot over a foot in many areas. In fact, there will be some places in eastern Long Island that are over eighteen inches from

the storm. It all winds down lead tomorrow afternoon, and there will be some blowing and drifting, especially across the island in coastal Connecticut, John Rod Caroline. President Biden has thanks Supreme Court Justice Stephen Bryer for his decades on the bench. He has patiently sawed common ground and build consensus, seeking to bring the court together. I think he's a model public servant in a time and great division in this country will be retiring. Brier will serve out the

remainder of the court's term. President Biden plans to nominate a black woman to replace him. China at Russia will sign an agreement to build a research station on the Moon. The two countries say they aim to complete basic infrastructure construction for the lunar station by the announcemus the latest signs of closer cooperation between the two countries. Russian President Vladimir Putin expanded to be the most notable old leader to visit Beijing for the opening of the Winter Olympics

next week. Global News twenty four hours a day on the Ariana on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analysts and more than one hundred twenty countries on John Tucker, This is Bloomberg, Nathan. Thanks John wall Street Town for the Bloomberg Sports update

with John Stanks Nathan. It appears the next coach of the Giants will have the first name Brian, either Buffalo offensive quator Brian day Ball or Brooklyn native Ryan Flora, as it was just fired as the head coach in Miami. Flora's at his in person interview yesterday, two teams made hires Denver going with Nathaniel Hackett has been the offensive creator in Green Bay. Indianapolis assistant Matt Eberfloss now the

head coach in Chicago Conference championship games on Sunday. The Chiefs went fifty years without going to the Super Bowl. Now they have a chance for three in a row. They host the surprising Bengals, who were two and fourteen just two years ago, and then it's the forty Niners and Rams in n l A. That's where Super Bowl fifty six will be played, the nine is Law Super Bowl fifty four and the Rams Law Super Bowl fifty three. The three New York area hockey teams all lost last night,

Rangers in Columbus five to three. Or Timmy Panarin had a goal to assist in defeat. Rangers come home tonight to play Minnesota on Henrik Lunkwist Night, as number thirty will be retired. In fifteen years of the Rangers goalie Lunkwist won five hundred and twenty games. The Islanders lost the King's three to two. The Devils lost three to a Tampa. The Knicks play tonight in Milwaukee. That game

does not start until ten o'clock. Raphael of Dale now thirty five years old, hasn't played all that much lately, but he's into the finals of the Australian Open. He meet Matteo Barrettini in four sets. The other semifinal matches going on now danil medvedevan Stefano sits Pass tied one set. Oh Medvedev just came back from two sets down to win his quarterfinal match Justin Thomas John rom part of a three way to if the league midway through the

Farmers Insurance Golf at Torrey Pines. In the same game, John Stashedward Bloomberg Sports Nay Thanks seven on Wall Street Time for the Tri State Business Report with Bomberg said Cory work on LaGuardia's Terminal B and brand new American

Airlines wing is finished. It's part of the Port Authorities eight billion dollar effort to transform LaGuardia into a twenty one century facility, which also includes a plan to replace Terminals C and D. When private managers take over New York City's public housing developments, they promised low income residents that they'll fix up their apartments and their buildings, but a new study shows that the switch can leave tenants

more vulnerable to building neglect innovations, often with public funds footing much of the bill. Related Companies has hired former New York City Police Commissioner Dermott Shade to manage its properties in Manhattan. Shay is joining Related as President of Commercial Property Management. He will oversee operations at the company's buildings in New York, including Hudson Yards and the Deutsche

Bank Center at Columbus Circle. Magew Bloomberg, Try State Business Report, my mid Cory on Wall Street Bloomberg Radios on the air from San Francisco to New York, London to Hong Kong. Let's check in for with our global news team for some of the top stories heard in our three D filly radio stations around the world. I'm Steve potos Can on ww f L A, Tampa Bay. We're talking about an Amazon delivery company settling federal accusations of religious discrimination.

UM Corney Donaho on ktr H in Houston. Boeing has begun the planning process for an all new airplane. I'm Gina Servetti and for w f l A in Orlando, I'm reporting that Orange Shoes futures are headed for the longest streak in more than thirty years as frost threatens Groves in Florida. I'm caw i head called boom bag Dab Digital radio in London with reporting that the government probe into alleged rule baking parties in Boris Johnson's office doing the pandemic could be strips of key details at

the request of the Met Police. I'm ed Corey on w w J in Detroit. I'm reporting Toyota finished out one is the world's top selling automaker once again, and it's thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. This week, the Federal Reserve announced that it will soon be appropriate to start raising interest rates. That wasn't a surprise, the Fed had been foreshadowing it

for a while, Yet markets greeted the news nervously. How come? The problem is that the Fed's new policy is still a long way from normal for an economy running at or above capacity. Investors know that if higher inflation persists, getting it under control will take more than a few quarter point interest rate hikes, but a more forceful throttling of monetary policy threatens serious collateral damage to the economy.

For now, the Central Bank's approach looks right, but the Fed should keep watching the data with an open mind and be ready to change course if circumstances demand. A seditorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or O P I N go on the Bloomberg Terminal. This has been Bloomberg Opinion. Listen for Bloomberg opinion editorials

every week at this time. Terminal customers can read more at O P I N Go Bloomberg eleven three oh Weather. It's snowing already was six to ten inches by the time this is done tomorrow, more than a foot on Long Island. Sunday mix of sun and clouds upper twenties for high snow in thirty degrees Right now, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quick Take.

This is a Bloomberg Business Flash, and I'm Karen Moscownsday features on the rise after strong Apple earnings, while stocks are mixed at the end of a volatile week. Check the markets every fifteen minutes throughout the trading day on bloombergs that futures are up thirty eight points this morning SMP futures lower down seven and down futures down ninety five. The decks in Germany gaining or no lower, Sorry, decks in Germany lower down two percent right now ten Your

treasury down nine thirty seconds. He had one point three percent. That yield on the two year one point to zero percent. Nine X screwed oil is at four tenths per cent or thirty two cents at eighty six dollars ninety three cents of barrel comex school down three tens per center,

found dollars forty cents at seventeen eighty nine sixty. Announced the euro one point one three six against the dollar British found one point three three eight eight and the ends at one fifteen point five eight And checking Bitcoin this morning at thirty six thousand, six hundred fifty dollars. As a Bloomberg business flash, now here's John Tucker with more on what's going on around the world. John, there's a morning Karen Gusty. Winter's storm does remain on track.

To batter the East coast. New York City could get as much as ten inches as snow. Rush's Foreign ministers says the American proposal to defuse tensions with Ukraine contain rational elements, and President Biden says he'll fulfill his promise to nominate the first black woman on the U. S Supreme Court after applotting retiring Justice Stephen Bryer. Ian sports Raphael Nadale advances to the finals of the Australian Open. The Rangers, Islanders and Devils all lose basketball. The Warriors

beat the Timberwolves. Global News twenty four hours a day on Aaron on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm John Tucker. This is Bloomberg, Nathan. Thanks John. It's almost five forty nine on Wall Street line from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and it's a tale of two earnings this morning. On the one hand, you have Apple surging on sales and

revenue that crushed estimates. On the other, a very different story from another Silicon Valley name at the center of the meme stock frenzy. So let's talk Apple and Robin Hood now with Bloomberg Quick Take correspondent Alex Webb with us this morning. So Alex app all, just to start off, just knocked it out of the park despite supply chains. Yeah, there are two things really that are happening here. On the one hand, Apple kind of quite successfully managed expectations

that in it. It does this historically pretty well. It had told the investor community that it was going to be a tough quarter because of supply chain problems. In analysts had built in about ten billion dollars in in reduced revenue expectations. In reality, the impact was closer to six billion dollars, and so they needed to say, had a four billion dollar beat. At the same time, they were able to, for instance, take components that had been

intended for iPad directed towards the iPhone. They do have a well old supply chain operation, so it was something that they were clearly able to get that rolling with Gusto and and we saw the big beat as a consequence. So how do you see Apple managing those expectations in the current quarter and quarters to come. We heard from CEO Tim Cook yesterday is saying they do expect bottlenecks in the supply chain to continue to ease. Does that

smooth things out even further for Apple? Yeah? The thing is with Apples, we often talk about their growing supply services business, which in love itself is clearly a great way of generating predictable, recurring revenue. But it is also, and this is often understated, a fantastic way of time people more keenly to their devices. So the iPhone thirteen, which was not a substantial upgrade to the predecessor in many ways, um, it's still managed to post record numbers.

And the that's a lot of it is because people need to upgrade their phone after perhaps three years, or they don't need to, but they certainly want to. And that is, to a great extent a function of the way they're tied to it's so keenly through things like music and nikeloud I Cloud and apps and planty more. Besides, speaking of apps, let's turn to Robin Hood getting crushed this morning, down almost four almost fifteen percent now in

the pre market. I think a lot of analysts were expecting this was going to be a tough quarter for the fintech But this ship is really listing. Yeah, in many ways, as you say, was perhaps quite predictable because you know, not just the interest rate environment, we've seen inflation. People don't have as much capitals and retail investors don't have as much capitalists they might have done twelve months ago.

That means they can't say, well, do you know what, I'm going to chuck a few hundred or maybe even a few thousand dollars into equities that I could do quite easily with this app Now they've got to think a little bit more carefully about how they're spending. And we're seeing the kind of dropped through onto the numbers of robin Hood. What does it say about the business

model that robin Hood had. I mean, you know a little more than a year ago, it was firing on all cylinders, But now there's a lot of question about the payment for order flow and some of the other headwinds that it's been facing. How does lad Tendant by ten of get things back on track in something like robin Hood has always seemed like as it's actually so many of these kind of lockdown stocks. You think about Peloton or if um H Zoom or any of those

other ones. They often seem like features or divisions units, or they should be of broader businesses because they are quite exposed if there's any problem in their core business. Whereas if they have some sort of natural head because they are another part, you know, other parts of the ecosystem, then they perhaps have a little bit more robust nous. And so we are seeing our competitors coming too the space,

often from established banks, financial services organizations. So it's you know, clearly, diversification is a useful thing to look towards, but that requires capital. And when you're your share price is dipping, your cost capital increases, and cost capital more broadly is increasing,

that becomes a challenge, all right. Bloomberg Quick takes Alex Web with us this morning talking about the latest earnings out of Silicon Valley this morning, and again robin Hood shares now down almost fifteen percent in the pre market, but Apple after the big earnings beat, Karen up three and two thirds percent in early trading, and Nathan, thank you. It is five a day, three on Wall Street, time

for our Bloomberg Law Report. It's brought to you by American Arbitration Association business disputes are inevitable resolve faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a d R dot org. Now, let's get to the legal stories we

are watching this morning. From Bloomberg's Jeff Bellinger, Unions filed a brief and federal appeals court saying healthcare workers are exposed to grave danger after the Biden administration's cancelation of its OSHA COVID nineteen standard. The i R s encourageous taxpayers to check their records to see how much child tax credit they received before filing their taxes. Some people

may have received letters withincorrect information. Tampa Baye Delivery Service, which provides service to Amazon, will pay fifty dollars to settle a religious discrimination lawsuit over the firing of a Christian employee who refused to work Sundays. 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. It's official. Just as Stephen Brier is leaving the Supreme Court after twenty eight years. President Biden says he plans to nominate the first black woman to the Court and would announce has chosen nominee by the end of February. He says no decisions have been made thus far for more Bloomberg's doing, Grosso speaks a constitutional law expert Stephen Vladek at the University of Texas

Law School. You're gonna have Brier, who's been on the Court for almost thirty years, being replaced by someone new and a black woman. How does that change the dynamic on the court and among the liberals on the court? Three women now? The most significant thing it does is it really, I think elevates Justice sotodam i or that much further because she now becomes not just perhaps the rhetorical leader of the liberal wing, but the senior member

of the liberal wins. So when it comes to parcelong out dissent, for example, in the high profile cases, you know that will fall to her as opposed to Justice prior.

But I also think tune that the other way it's going to change the dynamics is, you know, I think it is going to reflect yet a further generational change one has to think that President Biden is going to appoint someone who is at the oldest in their early fifties, and so if that person serves for as long as Justice Briar serves, I mean the court is going to change again while they're on the court. So I think the internal dynamics will be harder for us to see.

I think they will be most heavily felt among the three Democratic appointees than how they allocate their responsibility. Is there a chance, June, that the justice who replaces Justice prior might find her own mechanisms, her own ways of builden consensus with some of her colleagues. On the other side, is a relationship between the new justice and justice course, it's, for example, on criminal cases, a possibility we'll have to see.

But again, I mean, I think what really makes this whole process feel so different from the last couple of times we've been here is that these differences in the short term are going to just pale in comparison to the short term differences we saw between Kennedy and Kavanaugh, Ginsberg and Barrett. Of the list of replacements, does one standout, I don't know about one, Jude. I think there are

two from where on in. Katanji Brown Jackson and Leandre Krueger are such compelling candidates in different ways and low though I am to bet on any particular candidates in this race, I would be very surprised if it wasn't one of those two. They're both fantastically qualified, They're both very smart, they're both highly regarded. June. They had to come backgrounds, they had different experience that Katanji Brown Jackson was a district judge before she's an Appello Jude. She

has trial experience. Leando Krueger before she's a California Supreme Court justice was a government lawyer who worked in the executive branch, but the also legal council. So I think there are handalyzing opportunities with both of them, and I think it's going to be a good problem for President Biden to have and trying to pick between them and the other names for being bandied about and that. Stephen Ladek of the University of Texas Law School, speaking at

the Bloomberg's June Grosso. Catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law Podcast or downloading this show at Bloomberg dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg law dot com and on the Bloomberg terminal at b law go and nasdack Future

is moving higher, up thirty points this morning. S and P Future is lower, down ten and down Futures down a hundred six, still ahead of Bloomberg daybreak and checked on the business headlines. All the news you need to start your day. This is Bloomberg