Bloomberg Daybreak: March 15, 2022 - Hour 1 (Radio)

day policy meeting. The search continues for the government who shot homeless men in New York and Washington d C plus China SCOVID break times the numbers since the beginning of the pandemic. I'm Michael larn Or Ahead, I'm John Stashed Howard Sports NFL pree Agency underway. The New Yankees joined the team in Tampa on a scary day for

a star of the Mets. That's all straight ahead on Bloomberg day Break on Bloomberg he Living three on New York Bloomberg one, Washington d C, Bloomberg one oh six one, Boston Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business APT and good morning. I'm John Tucker and I'm Karen Moscow, and futures are lower

this morning. We're coming up to five the one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SNP futures aren't down twenty six points. Now Future is down two d six NASDACK futures down sixty five. The decks in Germany is down two and a quarter percent. Ten year Treasury up thirteen thirty seconds, yield two point eight percent.

They yield on the two year one point seven nine percent, and NIMEX screwed oil is down five point eight percent. It's in ninety seven dollars seven cents of barrel. John and Cameron will have more on the markets in just a minute, but first, the latest on the war in Ukraine. Shelling continued overnight with buildings hit in the capitol Kiev. Meanwhile, the US has weren't China about any support for Russa's invasion.

That end of the story from Bloomberg's head Baxter was the first high level meeting between the two since the invasion started, and the US calls it a substantial discussion. White House Folks Woman Jen Psaki says the message was clear if China were to decide to be an economic provider or to take additional steps there to Russia. They only make up of the world's economy. The G seven countries make up more than fifty percent, so there are

a range of tools at our disposal. China stances that the US has been putting out misinformation and that it just wants to be a peacekeeper. In San Francisco, I'm at Baxter Bloomberg, deybreak all right and thank you. And China also wants to avoid being hit by US sanctions. We get that part of the story from Bloomberg's Amy Morrison our newsroom in Washington. China's Foreign Minister Wang Ye says China quote is not a party to the crisis,

nor does it want the sanctions to affect China. It is the most explicit statement yet on the impact of American sanctions over Russia's war. Investors are growing more concerned that Chinese companies would face similar penalties after Russia asked China for military and financial aid. The US has also repeatedly warned China to not help Russia try to evade those sanctions. China needs to maintain good relations with the US and its partners to meet its economic goals. In Washington,

I'm Amy Morris, Bloomberg Daybreak, Thanks Sammy. The war in Ukraine will have a big impact on the economies of all fifty states here in the US. It's get the latest lie from Bloomberg's RITNEYA Young. Good morning, Rina, Good morning John. Although the US has limited trade ties with Russia and Ukraine, businesses from beer breweries in Missouri to semiconductor plants in California would see an impact. That's according

to an analysis by Moody's Analytics. Energy producing states like Alaska and North Dakota would do better than others since the conflict is boosting oil prices, but the two states most dependent on cars and driving, Alabama and Mississippi, would likely suffer disproportionately from an energy shock. Live in New York, I'm Nita bloom Bag debreak. All right, Nita, thank you, while turning to the market, as we are seeing more pressure on US stocks following yesterday's dropped for the navstack.

In fact, the NASDAC one hundred index closed in bear market territory Sarah Pon Sec, Senior wealth Strategy associate at UBS Private Wealth Management, says the market is being hit

by a one two punch. Not only do we have a federal reserve that is now going to be increasing interest rates, but at the same time, when we think about the Russian invasion of Ukraine, that has major implications for global growth, that has major implications for the inflation outlooks, and we all know at this point that the federal

reserves so unilaterally focus on inflation. UBS Private Wealth Management Sarah Pon SAX says the NASDAC one hundred has dropped twenty one per cent from its closing high back in November. And Karen were also seeing the selling continue overseas. Let's get the very latest live with Bloomberg's and Pods. Good morning you, Good morning, John and Karen. European stock markets

in the red this morning. That's after session of relentless selling in China earlier concerns about the country's ties with Russia adding to persistent anxieties about government regulatory pressure that sent shares on a downward spiral, with Hong Kong's Hang Send closing down five point seven percent. China's CSI ending the day more than four and a half percent lower here in Europe one hour into the session, and all

twenty injury groups in negative territory live in London. I'm your part spin Big day break, are you and thank you all. As we mentioned weighing on the markets, particularly here in the US, is higher interest rates. Well. Today, the FED begins it's two day meeting where it's expected to begin the rate hiking cycle, and Bloomberg's Nnidale Judais has more. Even a wink and nod are rare when

the Federal Reserve concomplete powlicy. In the past few weeks, central bankers have turned to the bell and siren signaling rates are petted, hired to combat inflation, and most likely starting this week, Bloomberg Economics anticipates our quarter point increased two years after the pandemic struck, forcing am and see FED action to cut rates to near zero. The question now is will the Fed's new mission be too little, too late his inflation burrows in any doubts Bloomberg Dat Break,

Thanks Vinnie. One other note on the Fed this morning, Democratic Senator Joe Manson says he won't back President Joe Biden's nominee for the Federal Reserve Vice Chair of Supervision UH Supervision, Sarah bloom Raskin. We get to tales from Bloomberg's Charlie Pellett. It likely dooms her confirmation in the

Senate given broad Republican opposition. Mansion, who represents Cole Rich West Virginia and supports an expansion of oil and gas drilling, joined Republicans and opposing Raskin over her stance on climate change. Raskin has written in the past in support of the Fed increasing its attention to financial risks from climate change, but said in her confirmation hearing the Central Bank had no place in mandating how capital should be allocated among

industries in New York. Charlie Pellet, blue Bird day break. All right, Charlie, thank you well. In corporate news, Discovery paid CEO of David Zaslov more than two hundred forty six million dollars last year, and making him one of the highest paid executives in the US. More than two hundred million of that came in stock options. And Zaslav is about to close one of the media industry's biggest mergers.

And this is Bloomberg thanks Karen. Five those seven on Wall Street and let's bring in Michael Barton now with more. What else is going on in New York and around the world, John, Thank you, Sarah. The mayors of New York City and Washington, d C. Are asking for the public's help in the search for a gunman who has been stalking homeless men, killing at least two people and

wounding three others in less than two weeks. Police and the two cities released multiple surveillance photos, including a close up snap shot clearly showing the man's face. New York City Mayor Eric Adams Washington, d C is not manufacturing guns. New York City is not a gun manufacturment city, but the guns streets. Washington d C. Mayor Muriel Bowser agrees

with Mayor Eric Adams. As we work to locate the subject, we're calling on all of our residents who are unsheltered, both in d C and New York City to seek shelter. Mayor Bowser says, in each case, the homeless men were shot as they slept in the street. Legislation aimed at benning abortions in Idaho after six weeks of pregnancy is heading to the governor. The state house approved the law that allows family members to see a doctor who performs

one The legislation is modeled after the Texas law. Opponents of the Idaho legislation say it's unconstitutional. China saw more than five thousand new COVID nineteen infections for the first time since the early days of the pandemic. Outbreaks of the omicron variant prompted officials to lock down more cities and impose restrictions. Supporters for detained w n B A star Britney Grinder, called for her he's from prison in Russia. Grander was arrested after customs officials said they found vape

cartridges containing cannabis soil in her luggage. At a news conference in Los Angeles, Project Islamic Hope director Naji Ali called on the Biden administration to negotiate the release of all Americans detained in Russia. It's very troubling for Britty Browner, not its only female is a member of the HQ community who Russia. Alan, noting former President Trump's relationship with Vladimir Putin, says if it takes reaching out to Trump

to get Americans home, then so be it. 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, John, Michael, thank you, and it is coming up on five. Tim Up Wall Street time down for the Bloomberg Sports Update. Here's John Seshall. Thanks John. NFL free agency underway. Jets and Giants obviously need better players.

Both have deals to help their offensive lines. Giants are adding Mark Glowinski, starting guard the last three seasons in Indianapolis. Another guard Lake and Tomlinson comes to the Jets from the forty Niners. Jets also adding tight end c j a Zumo, who just helped Cincinnati get to the Super Bowl, and the Jets are resigning white Out and All Pro kick returner Braxton Imparios. Looks like Mitchell Trabiski will be the replacement de Ben Roethlisberger as the starting QB in Pittsburgh.

We'll see what happens with Deshaun Watson. NFL teams now interested in acquiring him from Houston. Another the grand jury declined to press sexual assault charges. Watson still faces twenty two civil lawsuits and he will be deposed today. The new Yankees infielder Josh Donaldson and Isaiah Kyner Filepa. The young caccher Ben Rourke Felt joined the team in Tampa

after the trade with Minnesota. Yankee g M. Bryan Cashman's folk with the Yes Network excited because we feel it up crazed us at third short improves a you know, the player that we had in labor at second um. You know, we have a lot of versatility from it. So I think it's settled on a lot of business needs. Wise, import st Lucy Metz, Lugger Pete Alonso will be in full drills today. Sunday night, as Alonso began to drive across the state from his home in Tampa, he got

hit by a car that ran a red light. Alonso's car flipped over three times. Fortunately he's okay. NBA and the loss of the Lakers in l A. They chilled Toronto by twenty one in the first quarter. Never has Lebron James been on a team this bad. Lakers have lost twenty of their last twenty. Johns Dashwar Bloomberg Sports John all Right, John, thanks a lot and ahead of

the can show up on the on Wall Street. Futures in the kid A lower open, the DOWN futures right now down two hundred and forty eight points, that's down about three quarters of SMP five hundred futures right now thirty two points lower, and the nine stent futures down ninety three points, down seven tenths of a percent, and the selling in Europe continues. The stock six hundred now

down two point one one per sand. You're listening the Bloomberg day Break, a Bloomberg weather for from Rob Carolin Partler. Mostly sunny today, the high temperature topping out at six tomorrow, Mostly sunny and warm behind about sixty five degrees. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Out and at Bloomberg Victape is a Bloomberg Business lash and

I'm Karen Moscow. European stocks are falling as a relentless sell off in shiny shares buffeted global markets, adding to concerns about the war in Ukraine and imminent federal reserve tightening. US stock index futures are also lower. Crude oil extending its retreat. We checked the markets every fifteen minutes throughout the trading day on Bloomberg Guess and p Future is down thirty one points down, Future down two hundred thirty three and NASDAG features down in ninety The decks in

Germany's down two point three percent. Ten. Your treasury up nine thirty seconds yield two point o nine percent. They yield on the two year one point eight one percent. Nine.

Excrete oil is down five point three percent on five dollars forty seven cents at ninety seven dollars fifty five cents of barrel Comics gold is down one point three percent or twenty five dollars forty cents at nineteen thirty five forty announce The Euro one point oh nine and nine eight against the dollar, British pound one point three zero two three, the ends at one seventeen point nine two and checking Bitcoin this morning, it's lower down six

tents of a percent at thirty eight thousand, four hundred eighty dollars. And today we are looking for the Producer Price Index is at eight thirty Wall Street time, along with Empire Manufacturing. That's a Bloomberg business flash now Here's Michael Barr with more on what's going on around the world. Michael, good morning, Good morning here in Russia's offensive in Ukraine has adds closer to central Kiev with a series of

strikes hitting a residential neighborhood. It comes as the leaders of three NATO member countries, Poland, the Czech Republic in Slovakia planned to visit Ukraine's embattled capital. Meanwhile, a narrow diplomatic path is open as Ukraine and Russia planned another round of talks for today. The NBA has fine the Net's fifty thou dollars for letting Kyrie Irving into their locker room during a game in which he was unable to play it because he is not vaccinated against COVID nineteen.

The Warriors beat the Wizards. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts in more than twenty countries. I'm Michael bar This is Bloomberg. John all right, Michael, thank you. I find twenty on Wall Street. China seeking to avoid taking a hit from US led sanctions against Russia. Let's get this morning's update on the war on Ukraine now from Mark Champion, Bloomberg, Senior reporter

for International Affairs. Mark, let's start there is is there an indication China is helping its ally Russia. Well, we don't know yet, but the US seems convinced that that China has made the decision already to help financially UH and then has been requested by Russia to provide weapons of the kinds that the Russians are running out of. And you know quite from the high end of drones

right down to UH to ration supplies. UM. So, whether the Chinese say that this is misinformation um and you know clearly there's a big hit that they are you know, going to take if they go forward with it. Um. And it is a big moment actually in a decision on the Chinese side of whether or not to back Russia and on the U s side whether or not to UH to really go off to China in terms of sanctions. What if anything came out of those talks

that took place in Rome yesterday. I know they were scheduled to take place before Russia's invasion, but the US and Russian officials meeting at Rome, what happened there, well exactly, we don't know a lot of detail, but they went on for seven hours and each side came out, you know, not not kicking and screaming. They seemed to think that

they had been substantive. The main purpose wasn't really to negotiate, It was simply to lay out the concerns in particular on the US side, uh and and trying to make the argument for why this would be a bad move for China. China, no doubt, was pushing back about why they think that, you know, for the US to sanction China would be unwise, and at the Chinese routinely described that kind of third party sanctions as illegal. Yeah, we're getting worth this more in the Polish prime minister his

check and the Slovenian counterparts. They're going to make a trip to the capital of Ukraine today by train. Do we know any more about that? We don't know a great deal. This is something that you know has was done.

It was for example, around the war in Georgia in two thousand and eight, when leaders went down there as well from Eastern Europe just to to show solidarity, to show uh, you know that their support um so politically, it will be you know, an important moment actually for the Ukrainians who, despite all the aid and words of support,

do you feel like they're fighting this war alone? So, uh, you know, it will be you know, in terms of a gesture, as a political gesture, it will be important, obviously, less so in terms of the war on the ground. Is putin. Do you suppose hoping that Europe's resolved may falter at some point as the flood of refugees continues. I'm sure he does. Um, you know, we don't. We don't have a lot of you know, insight into the

thinking of putting right at the moment. Most assessments of you know, people who spend their careers watching him and trying to understand what he does, we're wrong. You know. Ahead of a war, the people who knew him best, thought they understood him best, were most likely to think that he wasn't going to invade. He did. Um, So, he clearly was surprised by the level of He prepared for sanctions, but he clearly was surprised by the level of sanctions and the level of unity and the response

that's come from Europe. I would think that he you know, he he does hope that the you know, the refugees will will force a change over time. Um. But that's very hard to to have any kind of clarity on what's the next thing you're looking out for in all those Well, it's really you know that the the number one thing is what happens on the ground. In terms of the conflict. It seems to be rather stalled at

the moment from the Russian point of view. And the big question is whether they're simply regrouping after having um messed up their initial strategy, they're having to kind of completely reconfigure on the ground, um and they're simply regrouping, and we'll have the capacity to then push forward and try and achieve the goals that they had, or if they really have run out of steam and they simply failed um and and we we just don't know that

at the moment. There are lots of you know, indications in both directions, but it's that really needs to get resolved before you're likely to see any breakthrough in talks. And always a pleasure Bloomberg, Senior reporter for International Affairs, March Champion with this this morning ahead of the Cash Open on Wall Street we're seeing to sell off continue with the US futures down futures right now two hundred

points lower, that's down six tenths of a percent. SMP evening futures are down twenty five points and the nasday futures sixty three points lower. In London, the foot see one hundred down one point six percent, and the europe stock six hundred down just over two percent. You're listening to Bloomberg day Break just ahead. Where of all the dip buyers. God look with that question if Joe Quinland had a chief investment office market strategy and Merrill Lynch

Bank of America private fame. This is Bloomberg day Break, broadcasting live from the Bloomberg Interactive Broker's studio in New York, Bloomberg Living Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg sixty to the Country, Sirius XM to one nine, and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg day Break, and it's five thirty on Wall Street. Good Morning. I'm John Tucker and I'm Karen Moscow.

We're just about four hours away from the open of US trading. Let's get you up to date on the news you need to know at this hour. Shelling in Ukraine's capital, Keith continued overnight as Russia carries on with its invasion. It's pleading for help from its most powerful allied, China, but White House Spress Secretary Jen Saki warrants that there would be significant consequences for Beijing if it provides assistance to Moscow. They only make up or of the world's economy.

The G seven countries make up more than fifty percent, so there are a range of tools at our disposal. Jen Saki was speaking after officials from China in the U s meta in Rome for their first high level talk since the invasion began. The bind administration calls talks constructive, but former US Defense Secretary Mark Ansbury tells Boomberg sound on China won't side with the West in this conflict. There is a strategic partnership that has emerged over the

years between Moscow and Beijing. Uh This invasion of Ukraine by Russia, however, has placed China somewhat of an uncomfortable position. Mark Ansberg believes it's unlikely ranch it would cross it into a NATO country. President Biden reportedly considering a trip to Europe to rally support for NATO allies. Well, John, the war in Ukraine will have a big impact on the economies of all fifties states here in the US, and we get the latest life from Bloombergy's Ready to Young,

Good Morning, Ready to Good Morning, Karen. Although the US has limited trade ties with Russia and Ukraine, businesses from beer breweries and Missouri to semiconductor plants in California would see an impact. That's according to an analysis by Moody's Analytics.

Energy producing states like Alaska and North Dakota would do better than others since the conflict is boosting oil prices, but the two states most dependent on cars and driving, Alabama and Mississippi, would likely suffer disproportionately from an energy shock. Live in New York, I'm Nita Young, Bloomberg Day Brain Right,

thanks for US feature. Stocks overseas they're falling. Hong Kong's Hang Sang Index felt almost six percent of the Europe six hundred index, down more than two percent the NASA one hundred. Entering the day in Bear Market territory. Well back in Washington, John, another Joe mansion roadblock for the Biden administration. The West Virginia Senator will oppose Biden's nomination of Sarah Bloom mo Reskin as the Federal Reserves of Vice Chair of supervision of both that's likely needed to

confirm her. It comes as the Fed begins it's two day meeting where it's expected to raise interest rates again. Futures are lower s ANDP futures down about sixteen points down. Futures down on thirty four and NASDAC futures down about twenties seven straight and had your latest local headlines plus a check of sports, and this is Bloomberg. Thanks Karen, find thirty three on Wall Street. Hand Let's bring in Michael barn Now with what else is going on in

New York and around the world. John, Thank you very much. Sarah. The mayors of New York City and Washington, d c. Are calling on the public to help catch is suspected gunmen targeting homeless men in the two cities. Police say two shootings over the weekend in New York matched three attacks in Washington earlier this month. In each case, homeless men were shot as they slept in the street. Two of the shootings were fatal, one in Washington and one

in New York. New York City Mayor Eric Adams the over proliferation of guns in our cities is creating an encounter this coursing bloodshed across our nation. Mayor Bowser, along with Mayor Adams, announced the reward to catch the gunman that's seventy dollars reward in twenty five New York City, twenty five in Washington, d C. From the a t F DC. Mayor Bowser says they are calling on the residents who are homeless, both in DC and New York City to seek shelter. Idaho could have a new stricter

abortion law similar to Texas. The Idaho bill, now heading to the Governor's desk, bands abortions after six weeks of pregnancy. One year after signing the American Rescue Plan into law, President Biden is stouting US you can comic growth and the speech at the National League of City's conference in d C. The President's linked rising fuel costs to the invasion of Ukraine. Make no mistake. The current spiking gas prices largely the fault of Vladimir Putin. There's nothing to

do with the American rescue plan. President Biden also says, according to experts, the American rescue Plan contributed to only point three percent to inflation. China has reported more than a doubling of new COVID nineteen cases as it faces my far its biggest outbreak since the early days of the pandemic. The National Health Commission said today that more than thirty five hundred new locally spread cases had been identified in the latest twenty four hour period, up for

more than thirteen hundred a day earlier. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than dred journalists analysts more than a hundred twenty countries. Michael bar this is Bloomberg, John, and so breaking his crossing the bloom Burg. The UK just announcing a ban on exports to Russia of luxury goods. Michael, thank you very much. He has out five thirties six on Wall Street time down for the Bloomberg Sports up date.

Here's John. Thanks John. No secret. The Giants need to vastly improved their offensive line. Don't have a lot of salary cap space, but on opening day free agency, the Giants did kind of deal with Mark Lowinski, starting guard with Indianapolis the last few seasons, another guard Lake and Tomlinson joining the Jets from the forty Niners. Jets also got tight end c j. A. Zuma from Cincinnati. They resigned Braxton Barrios, who was an All Pro last season

as a kick returner. Tight End Evan Ingram leaving the Giants headed to Jacksonville. Quarterback news Mitchell Drabinski now expected to be Ben Roethlisberger's replacement in Pittsburgh. Teddy Bridgewater going to Miami. It'll be his fourth team four years. Josh Donaldson joined the Yankees in Tampa the day after the Big trade last year. Donaldson, while whip Minnesota, accused Garrett Cole of using sticky stuff. Cole then struck Donaldson out

free time. Um. Obviously, he felt like it was a better idea to play strike me off, which he did to a few times. So at the end of the day, I'm happy to be on the same team and not have to strike out against some more. Nike's had been in talks with Oakland about acquiring first baseman Matt Olsen He's instead headed to Atlanta, which means Freddie Freeman will likely not resigned. With the brain Nets played tonight in Orlando, the unvaccinated Kyrie Irving couldn't play, but did attend Sunday's

home game also went into the nets locker room. City of New York find the Nets fifty thou dollars, John Stashower, Bloomberg Sports John, Thanks John five thirties on Wall Street Time, and half of the Tri State Business Report. Here's Bloomberg Scott Carr. New Jersey Transit is projecting a five hundred fifty million dollar revenue shortfall in fiscal even with federal

COVID AID and more customers returning post pandemic. The forecast is part of a budget proposal notice for the legislature that's up for a vote next week at the Board of Directors monthly meeting. It assumes no fair increases for

the next four years. With New Jersey opening applications for permits to sell legal weed at retail shops today and Governor Phil Murphy projecting the market will open soon, bringing millions of dollars in new revenue, and jay dot Com reports the cannabis business community is a buzz with activity ahead of the state's largest industry conference Wednesday in Carteret. You can add Farmington, Connecticut based Otis Elevators to the growing list of American companies making the choice to not

take any new business in Russia. Otis saw about two percent of its business come from Russia last year. That's the Bloomberg Tri State Business Report. I'm Scott Carr. Yeah, it's five thirty Game on Wall Street. Bloomberg Radios on the air from San Francisco to New York, London to Hong Kong. Let's check in now with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve

Potaskan on Chen Chen Wins in New York. We're talking about how new COVID lockdowns in China could to lay your Ravazon or Walmart order. Um Core needs an a Hoo. On KTRH in Houston. Grub Hub boosts the pay for its drivers as high gas prices seez earnings. I'm Gina Servetti and for Double g BBM in Chicago. I'm reporting that grub hub is boosting pay for its drivers to counter record high gas prices. I'm Scott car on w

d c H in Washington. I'm reporting on some felt wing engineers working on making the perfect mask for possible future pandemics. And those are some of the stories there 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. As Congress has doled out almost six trillion dollars in COVID relief funds, crooks and kahnmen have lined up to get their share.

They've created fake companies, misstated their earnings, and other wise conspired to siphon off taxpayers money. Last week, the Justice Department announced that it was investigating some eight billion dollars worth of fraud. The Secret Service estimates that a hundred

billion dollars may have been misappropriated in total. What can government do to better monitor this emergency spending A data portal that tracks big government outlays in real time would make it easier for officials to monitor for fraud and make more informed decisions about how to respond. Upgrading antiquated technology would also help of The federal I T budget is spent maintaining legacy systems, while investment in new ones

often goes unfunded. Finally, the government needs to stop creating incentives for fraud. Community groups that steer federal funds to the needy are typically paid a fixed percentage of outlays in administrative fees. Such a system is simply asking to be abused. 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 ope and

go on the Bloomberg term. This has been Bloomberg Opinion and Bloomberg Opinion editorial is gonna be heard every weekday of this time, and terminal customers can read more at opie. I am go. You're listening to Bloomberg dam break in ahead of the cash open on Wall Street. Futures indicate a lower open on Wall Street. Dow futures down one points, SMP future thirteen points lower than as DANG futures down

twenty two points. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quick Tape this is a Bloomberg business flash and good morning, I'm parent Moscow. European stocks are falling. Is a relentless sell off in Chinese shares, buffeted global mark get's adding to concerns about the war in Ukraine and imminent federal reserve tightening. US DOT index futures are lower as well, and crude oil is extending

a retreat. We checked the markets every fifteen minutes throughout the trading day on bloomberg S and p Future is down nine points. Dal Future is down ninety three. NASDACK futures down twelve. The decks in Germany's down one point seven percent. Can your treasury up seven thirty seconds, yield two point one zero percent. The yield on the two year one point eight two percent. Nine x scrude oil

is down more than six percent. It's down six dollars thirty two cents at ninety six dollars seventy one cents a barrel. COMEX school is down one and a half percent, or twenty nine dollars forty cents a nineteen thirty one seventy announced. The euro one point zero nine nine nine against the dollar. British found one point three zero four six. The ends at one seventeen point nine and nine, and Bitcoin this morning is down about a third of a

percent at thirty eight thousand, six hundred dollars. And that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karin, thank you very much. China Foreign Ministers says this country wants to avoid being impacted by US sanctions over Russia's war. Lang Ye says China is not a party to the prices, nor does it want the sanctions to affect China. He's spoken to phone call with his Spanish counterpart to discuss

the war in Ukraine. There are concerns among investors that Chinese companies will face US sanctions after American officials said Russia requested military and financial assistance from Beijing. In the NBA, they have fine and that's fifty thousand dollars for letting Kyrie Irving into their locker room during a game in which he was unable to play it because he has not vaccinated against COVID nineteen. The Warriors beat the Wizards

one twelve. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analysts and more than a hundred twenty countries. I'm Michael bar This is Bloomberg jun Michael, thank you, five and forty nine out of Wall Street. We are live in the Bloomberg Interact or broker's studios. This is Bloomberg Day Break. Time to get you to set up for the trading day. Head with our next guest.

Joe Quinlin is head of Chief Investment Office Market Strategy at Mary Lynch Bank of American Private Bank. Joe, thanks for getting up early to be with us this morning. It was the possibility of China being embroiled in Russia's wear in Ukraine. How does this change the investment landscape and maybe your thesis this morning? Well, Johnny, it depends on the sanctions possibly or whatever pressure of the US, and you're ever going to put on China to stay

out of the conflict. So that's gotten investors over overlaying that as China omicron the variant whipping through China as we speak. So there's a lot of China now is clearly in focus for investors. It's triangulated US, Russia and China, and it just adds more uncertainty in the volatility. So we're set up for still the hard assets, whether its commodities, energy, real estate. We still like that space. And then of course we've got to stead raising rates today. Yeah, is

a quick question China before I move on. Is it investable or uninvestable at this point? You know, it depends on you know, your risk level. I mean there's lets, let's face it, China is closing becoming inward, but there's some companies there that could be investable long term. But right now we are underweight or neutral at best on the emerging markets, China included. So we're not putting any

new capital into the emerging markets right now. You know, one of the curious things in all this, in the stock rally that we've seen since the end of the dips seem to have been met each time with a volley of strong buying. So we're the dip buyers right now. Well,

they're still hibernating, albeit it's almost spring um. They're looking at inflation running hotter than expected, that bed being behind the curve on the cranberry in China, and then of course the conflict in the in the heart of Europe. So they're on the sidelines until we get some more clarity. Some of us are it's just not brave enough to buy this deaf and I think that's going to be the sentiment here near term. Well, the valuations they've gotten cheaper,

but are they cheap cheap enough to buy? Not just yet, perhaps in the US, I would say, in the United but you look across the screen, I got a bloomberg. There's some markets in very territory, some really beating up parts of the world where it's Hong Kong, parts of Europe. But really it's that it's that fog of war that's keeping a lot of these deep buyers on the sidelines. Just yet, even with these valuations, we're gonna we need

a trigger, We need some type of cease fire. We need some kind of clarity to trigger to step in and buy these beating up equities. Okay, FED, you mentioned the FED is. Are the FED policy makers going to exacerbate the rush for the exits for risk assets? Were their two day meeting that starts today. I don't think so. I mean, hopefully there's nothing that the markets don't already

know that Jay Paul is going to do. We're looking for twenty five basis points hike and really for the rest of the year, every FED meeting twenty five basis point increase. So I think the Fed is kind of like on course and in sync with the markets. I'm not the biggest issue will be from the FED, the communication their outlook, if anything changed in term of change in terms of their expectations for inflation. So I think

nothing real dramatic comes out of the meeting. It's but the bigger issue fifty basis points and next time intermeeding hikes will see But no, I think it's baked into the cake. What the FED is gonna do, what's the day they're going to tell us this week? Among other things, we're gonna get retail sales pp I as well. What's your position on that? Well, we think we see the consumer clearly becoming more cautious when there's a University of Michigan sentiment just some of the data points that we're

looking at. So I wouldn't be surprised if some of the incoming data retail wise is weakening because of the downward mood sentiment p p I. No doubt more pressure coming views to be the commodity complex rising wages, so sentiment is going to be down, price is up, and that's kind of kind of that struggle that we're still going to be in market tup to navigate. Is there evidence at demand distraction with prices where they are right now?

I don't think so, John, not yet, but it's getting there in terms of you know, everyone, you know, the first thing you do before you stop spending gasoline is complain about it. Everyone's complaining about it. But we're not there just yet. But maybe winning the airline start raising prices, we're gonna get into cars instead of plane. So we're getting close, but we're not there just yet. Thank you, Sir.

Joe Quinlan, head of the Chief Investment Office Market Strategy at Mary Lynch and Bank of America Private Bank, with this this morning, Karen right, John, thank you. It is five fifty three on Wall Street, time for the Bloomberg Law Report, 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 dr dot org and now here are one of the legal stories that we're watching this morning. Four men are on trial were conspiring to kidnap Michigan Governor Gretchen Whitmer and conspiring to use a weapon of mass destruction. Prosecutors alleged the men were members of extremist paramilitary groups angry over the Democrats COVID nineteen restrictions, but defense attorneys say there was no plot and the men

were enshrapped by undercover FBI agents. From More Bloomberg's June Grosso speaks to the former U s Attorney for Eastern Michigan, Matthew Schneider, a partner at Contigman. The defense raised the defense of entrapment. They said that the FBI tricked the defendants into agreeing to the plot to kidnap Whitmer, and the FBI drove the whole thing. So tell us about that defense. So an entrapment defense is saying, essentially, I'm

not the one who came up with this idea. I'm not the one who really wanted to do this, and but for the government, I wouldn't have done this. I wouldn't have tried to put this plan into place except for the government owning me on and some of these defendants have said that they really had no experience in tactical training and using weapons. But Dan, this undercover FBI informant, is the one who trained them, and he's the one

who encouraged them. So that's the entrapment defense. And the government, of course is going to use the jury instruction for entrapment. And there are signs in there that the government can point to to say that you weren't entrapped. And that's really based on the fact that the defendants were what they call predisposed to commit the crime. That means they already had this thought in their mind before the government

introduced the undercover agents. And under the law, if you have that predisposition, then entrapment is not a valid defense. Is it a high risk strategy to defend based on entrapment because you're conceding that some crimes may have been committed. It is because it's an infirmative defense where you you have to admit to serve things, but say, similar to self defense, say I did this. However, now it's important to note that as this trial has played out, it's

not as clear cut that the government has thought. In my opinion, because entrapment is not the only defense. There's a separate defense that is being laid out by at least one of the defendants to say that this is all really big talk. We did not intend this, but we talked really big and we came up with some wild ideas. We talked about what are some ways we

could go and take out Governor Whitman. Well, one way is we could cut all the trees down between Indiana and Michigan, because that would create a stir and would prevent people from getting into the state. Or we could tie a kite to the governor and flyer over Lake Michigan. Now that's all nonsense, right, And the defense in this case is, look, they said all these things when they were drunken, when they were stoned. Another thing that they said was we're going to kidnap her, and so all

of this is in one big pot. We didn't mean it, and it's all just a should big talk. The attorney for Eastern Michigan, Matthew Schneider, speaking at the Bloomberg Student Grosso. Catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law podcast or downloading the show at Bloomberg dot com slash podcasts. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at

b Law. Go again. Futures are lower this morning, SMP futures down about eighteen points down, futures down one forty four and NASDAG futures down forty nine and the tenure treasury up nine thirty seconds yield two point one zero percent, yield on the two year one point eight two percent, and still ahead on Bloomberg day Break and check on the business headlines and all the news you need to start your day. This is Bloomberg