Bloomberg Daybreak: March 3, 2022 - Hour 1 (Radio)

Plus Supreme Court nominee Brown Jackson is making the Browns on Capitol Hill. I'm Michael Blarm. We're ahead of John Stage Shower Sports, the Nick Laws in Philadelphia, the Rangers beat the Blues College who wins for St? John, Seaton

Hall and Rutger. That's all straight ahead on Bloomberg day Break on Bloomberg eleven, Treo, New York, Bloomberg one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nineteen and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business A good morning. I'm Nathan Hagar and I'm Karen. Moscow and US Dock index futures are little changed to

lower this morning. We're coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg right now, S and P futures are down two and a half points and DOWN futures are down four, so they're both pretty much little changed. Nasdack futures lower, down thirty seven. The decks in Germany's down about seven tenths of upper set ten.

Your treasury up one thirty second, the yield one point eight seven percent, the yield on the two year one point five zero percent, and Nimex screwde oil is up too and a half percent. Nathan Karen will have more on the markets in a minute, but first, the war in Ukraine is now into its second week. Russian forces are pressing head with their offensive, firing missiles at the capital of Kiev. Moscow's also stepped up a campaign to

take cities in the south. Ukraine's president Vladimir Zelinski says Russian troops will be met with force. Wherever they go. They will be destroyed they will not have common they will not have food, They will not have one quiet moment, Receive only one thing. Resist fifth resistant President Vladimir z Linski's telling Russian troops to go home. Ukraine is set for a second round of talks with Moscow today. Meantime, Nathan United Nations is ramping up its rhetoric on Russia.

The U n Secretary General is demanding Moscow removed troops from Ukraine. Bloomberg said, Baxter has the story. An overwhelming majority of the General Assembly back Russian condemnation one four five against thirty five abstain. Secretary General Antonio Guterres says

the world demands peace. People in Ukraine desperately needs peace, and people around the world this is Representatives from Ukraine and Russia are headed to the Belarus Poland border today for a second round of talks, and Secretary of State Anthony Blinkol has headed to Europe for talks with NATO allies in San Francisco. I'm at Baxetor Bloomberg daybreak. Thanks sad Russian finances, they're feeling more pain this morning. The country's credit rating has been cut to junk by both

moodies and Fitch ratings. Both wren that sanctions could undermine Russia's capability and willingness to service debt. Well, oil continues. It's march higher this morning, Nathan, hitting levels we haven't seen in fourteen years, and we get the latest live from Bloomberg's John Tucker, johnkle Mornay Karen. Buyers continue to shun Russian crude and traders are betting that prices will

keep rising. Don't expect any help from OPEC plus after a thirteen minute meeting, they stuck to just a mild increase in production and don't expect much help from US shale producers. They say labor and material shortages are hurting their production. And it's not just oil. Commodities are rising across the board. Bloomberg's gage of raw materials is closing in on the biggest weekly gain in sixty years. Aluminum

hit a record, we prices extended their meteoric rally. These commodities are not subject to sanctions, but surging freight and insurance costs are keeping buyers away. Laden New York. I'm John Tucker, Bloomberg Daybreak. Okay, John, thank you, And despite risks from Russia's invasion of Ukraine. J Powell is making the fight against inflation his top priority. The FED chair testified before a House panel yesterday, saying he supports the

rate hike later this month. I do think it will be appropriate to raise our target range for the Feller funds rate at the March meeting in a couple of weeks, and I'm inclined to propose and support a twenty five basis point rate hike. And to the extent inflation comes in higher or is more persistently high than that, then we would be prepared to move more aggressively by by raising the Fellow funds rate by more than twenty five

basis point. FED Chair J. Powells testifies before Congress again today, this time to the Senate Banking Committee, Nathan. The next major event for J. Powell and the Fed is Friday's jobs report. Over the past year, rapid wage growth left businesses scrambling to keep up, and in the like that trend will continue. Bloomberg's Rnida Young joins us now at

the details. Good morning, Randa, Good morning Karen. The February jobs report is expected to show average hourly earnings rose a half a percent last month, pushing year over year games close to six percent, and if you exclude two pandemic distorted prints in the annual increase would be the strongest in data going back fifteen years. Some slowing is expected, but wage growth is poised to remain exceptionally strong this year.

High labor costs are yet another factor the Fed will have to contend with as it works to cool the hottest inflation in a generation. In New York, I'm Nita Young, Bloomberg Daybreak. Thanks Nita, turning to politics now, we have new developments involving the January six attack on the Capitol. The Congressional committee investigating the incident says it may have evidence that former President Trump was part of a criminal conspiracy.

Amy Morris reports from our Bloomberg nine one newsroom in Washington. The committee says Trump advisor John Eastman's emails device President Mike Pence's lawyer show evidence of obstruction of an official proceeding a felony that carries a maximum of twenty years in prison, and the emails he blames Pence for the riot and says, quote, I implore you to consider one more relatively minor violation of the Electoral Count Act and

adjourned for ten days. In a court filing, the committee says Eastman knew what he was proposing would violate the law, but pushed the Vice President to do it anyway. In Washington, I'm Amy Morris Bloomberg day break. All right, Amy, thank you, But let's turn back to the markets now as some corporate items of note this morning, Shares of Snowflake are plunging their down more than twenty one percent after the software company projected slowing sales growth is expected to fall

from a previous triple digit percentage base ment. Tesla is back in the news. Carreen CEO Elon Musk is challenging the United Auto Workers Union to hold a vote at his California factory. Musk says Tesla will do nothing to stop union organizers. The challenge comes after President Biden again failed to mention Tesla while promoting electric vehicles in his State of the Union address. The White House is a

big supporter of labor unions. Right now, SMP futures are down almost five points, STOUT futures down twenty NASTAC futures lower by forty four points. The tenure Treasury is up to thirty seconds. The yield right now one point eight six per cent. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg. It's now five oh seven on Wall Street. Got some showers this morning.

Forty four degrees in Central Partners crash on the Harlem River drives southbound by h Details on that coming up in traffic. First Michael Barr with more on what's going on in New York into rappid world. Good morning, Michael, Good morning Nathan. People in New York are coming together to show support for Ukraine as the Russian invasion continues. Hundreds of people gathered at St. George, Ukrainian Catholic Church in the East Village last night to sing and pray.

The church has become a focal point for the humanitarian effort by raising funds from everything from food and clothing to medical supplies. Among the worshippers, New York Governor Kathy Hokele. New York City has the largest Ukrainian population in the US. President Biden's picked to replace Supreme Court Justice Stephen Bryan, is making the rounds on Capitol Hill. Judge Katangi Brown Jackson met with lawmakers her confirmation. Hearings could begin soon.

Japanese scientists say the omicron strain of COVID nineteen is at least more lethal than seasonal flu. Countries around the world have been relaxing mask mandates and testing requirements. Visibly annoyed, Florida Governor Rhonda Santis admonished a group of students for wearing face masks at an indoor news conference. It happened before he spoke about cybersecurity and education at the University of South Florida in Tampa. To think, we got to

stop with this. The theater want fine, but this isn't This is ridiculous. Some of the students took their masks off before Governor to Santists took the podium. New Jersey Governor Phil Murphy received some good news about the state a credit rating upgrade story from Bloomberg's Charlie call It. Moody's Investors Service raised New Jersey's credit rating, giving the state its first upgrade since two thousand five after years

of pension under funding and benefit increases. An upgrade can lead to reduce borrowing costs for states, as bond investors are willing to accept lower yields from issuers considered less likely to default. In New York Charlie Pellet Bloomberg pay Break, New York City School's Chancellor David Bank's pledge to bring a new normal to the U s as largest school system.

He outlined a plan to reverse an exodus of students by improving digital learning, reducing bureaucracy, and expanding gifted programs. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. Michael BARRD this is Bloomberg, Nathan. Thanks Michael, coming. It's a five ten on Wall Street. Time for the Bloomberg

Sports Updated Morning. John Stanshower All, good morning, Nathan. Familiar script for the next good start, not a good finished. Another loss now sixteen losses in the last nineteen games. In Philadelphia, Nicks didn't trail until the third quarter, but the Sixers one at once to one oh eight. They sweep the home at home. Joe l MB twenty seven twints.

He took thirteen free throws. That's down from the twenty seven that he took in Sunday's game at the Garden, James Harden and his home debut in Philly twenty six points in near triple double. R J. Barrett that the Knicks with thirty Julius Randol at twenty four, but Alec Burk's and Evan four together shot three of nineteen nets. Home tonight from Miami, Kevin Durant makes his return from the knee injury that's kept him that from more than

six weeks. The East eating heat last night in Milwaukee, led by fourteen, was six minutes to go to Buck's rally to win by one. At the Garden, Rangers led St. Louis to nothing, then trail three two and the third hunt toward that girl stroll a little too deep, but he puts it on call stop right off sick score Patrick Denneth from the point bit set it off barbarashop Patrick's the game at three vp MM called Chris Cryer would add a power play goal. Is thirty fifth toll

the season. The Rangers beat the Blues five to three, big forty eight point second half for St. John's Red Storm beat Xaver eighty one sixty six, also the big East Seaton Hall down Georgetown sev the Hoyas r O N eighteen in the Big East, and yet the school says it is committed to it's coach, who happens to be greatest player in school history. Patrick Ewing Rutgers helped at ten C double A helps with a win at Indiana.

The Giants shed some payroll they cut running back to Monte Booker and tight end Kyle Rudolf, John Stash Even Bloomberg Sports neither all right, John, thanks SMP future is down down seven points down, futures down thirty four, NASTAC Future is lower by fifty four points to ten. Your treasury yield one point eight six sent you're listening to Bloomberg Daybreak, Bloomberg eleven three or other. Showers will end this morning. We'll get up to the low forties with

a breeze mostly Sunday Tomorrow up for thirties. Will be in the mid forties, mostly cloudy by Saturday. Right now showers and forty four degrees in Central Park 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 Karen. Moscow stocks reversed earlier gains, with europe Stock six hundred index lower along with US stock index, futures oil soaring to the highest levels in two thousand eight, and we checked the markets every fifteen minutes throughout the trading day on bloomberg S and P Future is down eight points down, futures down forty six and nasdack Future is down fifty fo The decks in Germany's down nine tenths of upper

set ten your treasury up to thirty seconds he had one point at six percent. That yield on the two year one point five percent. NIMEX Screwed oil is up two point four percent, up two dollars seventy five cents at a hundred thirteen dollars thirty five cents of barrel comexs. Gold is up six tenths per center, eleven dollars forty

cents at nineteen thirty three seventy ounce. The euro one point one zero eight five against a dollar British found one point three three eight eight, the ends at one fifteen point seven three and Bitcoin moving lower at forty three thousand, two hundred fifty dollars today We are looking for the weekly report on initial jobless claims at any thirty Wall Street, time at tenants, factory orders and durable goods orders, as well as a look at service industries

and best buying gap among companies. Schedule to report earnings today. As a Bloomberg Business Flash, now here's Munchael Barr with more unless going on around the world. Muncle, Good morning, Good morning Karen. The UN Refugee Agency says one million people have fled Ukraine sense Russia invaded the country a week ago. Bemal Russia fired missiles at Pieve overnight and stepped up their campaign to take cities and the coastal south.

In a reversal, Russian and Belarusian athletes have been banned from the Paralympics for their country's roles in the war in Ukraine. The International Paralympic Committee announced the about face less than twenty four hours after saying it would allow Russian and Belarusian athletes to compete when the game's open tomorrow. In the NBA, the Knicks lost. In the NHL, the

Rangers won. Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts in more than one d twenty countries. I'm Michael bar This is Bloomberg Nathan. Thanks Michael. It's five nineteen on Wall Street Line from the Bloomberg Intracted Broker Studios. This is Bloomberg Daybreak, and our executive editor for International Government, Rosalind Matheson is with us this morning as the war in Ukraine enters its second week.

Ros Good morning, if you could get us up to speed on the latest we're hearing on developments on the ground. What we're hearing is again a sustained and concentration of effort in the southern part of Ukraine, the city of Tisson of cool falling, and now reports that Russian naval

vessels are moving towards the port of Odessa. Of course, that's a really key city and port um in the south of Ukraine, that's really the gateway for trade in commodities and other things into many other parts of Europe. And very sustained fighting going on in the vicinity of Odessa and Mario Paul another city that's also there. So we're seeing signs of progress one of a better world

by Russian forces on the ground in the south. That's even as they remain quite bogged down in the north, still no movement closer to Kiev, the capital, even though there's been shelling overnight in both the capital Kiev and the second biggest city in Ukraine, Hakiv. So we're seeing movement in the south pretty much the status quo in the north, but certainly the sense that Russia is making

some progress in capturing some key cities here. Well. With Russia making that kind of progress, particularly in the south, what could it tell us about the potential strategy from Russia as it continues this campaign. What could be coming next. What we're expecting is further aerial bombardment, in particular efforts to squeeze these cities. It's very clear that Ukrainians who are based in the south in these places are unable to get out or certainly struggling to get out. At

this point. There's no corridor really for them to leave safely and for food and medicine to come the other way. So what you're seeing is these cities coming into sort of states a relative desperation at this point as we enter the second week of this conflict, many smaller towns in the east of Ukraine have been destroyed and villages bombed and destroyed altogether, so people are there unable to go.

So do you get a point where things become so desperate in those places that people decide to give up the fight? So far, the resilience of the Ukrainian people and their military has probably shocked the Russians in terms of what they thought their progress would be so far, and we're certainly seeing that desperation signs of that playing out, as more than a million refugees have now fled the country. Is Europe ready for this kind of influx these crowds

of Ukrainians heading their way? Certainly, the the European Union seems to be doing as much as it can, funneling resources and help further to the east to assist those

countries who are receiving the bulk of people. That includes countries like Poland, of course, but also the EU centrally doing things like expert out in the ability of Ukrainians to work in the European Union, to be able to move around without too much difficulty, and that's a little bit unusual for the EU, we should say, which as often as a block rappled with how to take a collective approach to migration crisis that we've seen come in previous years and indeed decades, and a tendency in some

countries at least to say, well, we don't want to have too many people come here because of the economic burden that would place on us. At least in this early stage, it's very much open arms or around. Whether that continues, particularly the exodus picks up even more, remains to be seen. But right now it's doing as much as they can, and of course we're watching the impact of sanctions as well, the credit reading of Russia being

cut and assets of oligarchs being seized. Are we seeing any evidence that this financial war that's taking place with Russia's having any impact on the ground. Doesn't appear to be. If anything, it's expediting things, because that's the Russian president wants to get his stated goals in Ukraine achieved sooner rather than later. So if it makes him perhaps more erratic, more dangerous, more willing to do things, that might be

a repercussion on the ground. In Russia. You're seeing a strong sense of resignation amongst ordinary Russians that the difficulties they're now facing in their daily lives to access certain goods, to make certain purchases, to even move around the train station with their bank cards which may not be working at the moment. There seems to be quite a lot of disquiet amongst the upper echelons in terms of oligarchs, but no sign at least so far that that's translating

into immediate risk for putting himself. Thanks for keeping us up to speed on all this rose as always Rosalind Mathison, our executive editor for International Government for Bloomberg News, as we continue monitoring developments in the war in Ukraine. Now intoday eight, looking ahead to the market open this morning on Wall Street, futures are moving a bit lower. We have SMP futures now down nine and a half point, Staff futures are lower by sixty six and NASTAC futures

on the decline by almost sixty two points. The tenure treasury is now up one thirty second the yield one point eight seven percent. The surge in crude continues, with Brent a one a hundred fifteen dollars eight cents of barrel for the international benchmark. West Texas Intermediate's up two point three percent a hundred thirteen dollars twelve cents. We'll have more on the oil surge and will we see

a wage surge in the February jobs report. All that it up as we check your top stories of the morning. You're listening to Bloomberg Daybreak Bloomberg eleven three oh Whether this rain will end early this morning. We'll have clearing, breezy conditions low forties for highs upper thirties tomorrow, mostly cloudie by Saturday, mid forties. Right now, rain in forty four in Central Park. Broadcasting live from the Bloomberg Interactive

Broker Studio in New York. Bloomberg eving freo to Washington, d C, Bloomberg ninety nine one to Boston, Bloomberg one O six one does San Francisco, Bloomberg NAM sixty to the country, Sirius XM Chadle one nineteen and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. We're just about

four hours away from the open of US trading. Let's catch you up to date on the news you need to know. At this hour, the war in Ukraine is entering its second week. Russian forces are pressing ahead, firing missiles at the capital city of Kiev. They're also stepping up campaigns to take cities in the south. Ukraine's President Vladimir Zelenski says Russian troops are being met with force. I don't sam our army is doing everything to fully

break the enemy. Nearly nine thousand Russians have been killed in one week. President Vladimir Zelenski is telling Russian troops to go home. Karen, We're seeing the war continue to have a massive impact on commodities. Let's get the latest on that line from Bloomberg's John Tucker. John Nathan Bloomberg's gauge of raw Materials is closing in on the biggest weekly game in sixty years as banks, importers, and shippers

steer clear of Russian exports. Brant crude stared to near one D twenty of barrel aluminium hit a record, wheat rallied to the highest level since two thousand and eight, and the decision by OPEK plots to leave output plans unchanged as to the risk that inflation will slow the economy. Even before the invasion, US retail gasoline was at its highest level since two thousand fourteen. Live in New York. I'm John Tucker, Bloomberg Daybreak. All right, John, thank you

for speaking of inflation. J Powell addresses the topic today and another round of congressional testimony. The FED share is making the fight against prices his top priority, saying he supports a right high later this month and next to the Fed after that. Karen will be Friday's jobs report. Rapid wage growth has left business is scrambling to keep up. Looks like that trend is going to continue. Bloomberg's Grenita Young joins us, but the details on that. Good morning, Granita,

Good morning. The February jobs report is expected to show average hourly earnings rose a half a percent last month, pushing year over year games close to six percent, and if you exclude two pandemic distorted prints in the annual increase would be the strongest in data going back fifteen years. Some slowing is expected, but wage growth is poised to remain exceptionally strong this year. In New York, I'm reneed a Young Bloomberg Day Week I need to thank you.

And in politics this morning, the January sixth Congressional Panel says evidence suggests crimes were committed by former President Trump. That's according to a filing in federal court. The panel says emails from Trump advisor John Eastman may contain evidence of obstruction of an official proceeding. Eastman is sued to block release of the emails. Futures are lower this morning. S and P Futures down about ten points down. Futures down fifty eight. Nasdaq Future is also down about fifty eight.

Straight ahead your latest local headlines, plus a check of sports, and this is Bloomberg by thirty three on Wall Street, showers forty three degrees in Central Park northbound Root one and nine is closed to Grant Street and Elizabeth Michael bars here with more on what's going on in New York and around the world. Michael, thank you very much, Nathan. People around the world are coming together to show support

for Ukraine as the Russian invasion continues. In New York City, which has the largest Ukrainian population in the US, hundreds of people gathered at St. George, Ukrainian Catholic Church in the East Village last night to sing and pray. I will try home. I will cry when I pray, but not now, because this is my battle. I'm fighting. Everyone is strained right now and soldier, and I'm soldier, so

that's not a place to pry. I'll Another one of the worshippers at the church was New York Governor Kathy HOCl Supreme Court Nominiqueatanji Brown Jackson has begun courting Senators on Capitol Hill, making your case for confirmation. In private meeting Senate Majority Leader Chuck Schumer, I am just so pleased that the President has nominated someone amazing qualification and breath of experience. Democrats are working to move our nomination

through the Senate within weeks. The a c l U has filed a lawsuit against the Texas Department for Family and Protective Services and Governor Greg Abbott for implementing a directive to investigate parents that provide gender affirming care to transgender children. Meanwhile, a state district judge issued a temporary order halting the child abuse investigation the family of a

sixteen year old receiving gender affirming care. The famili's attorney, Shelley Scheme, every major medical Association says the gender of farming care is medically necessary. Attorney Shelley Scheme. New York City School's chancellor wants to make remote learning an option again. David Banks outline to plan to reverse an exodus of students by improving digital learning, reducing bureaucracy, and expanding gifted programs. Banks also wants to expand the number of safety officers

patrolling hallways. 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 one hundred twenty countries. I'm Michael Barr, and this is Bloomberg, Nathan. Thank you, Michael wall Street. Here's John Stanshow with the Bloomberg Sports Updated. All right, Nathan. The last six seven weeks I've been rough for the to New York City VA teams than Nets led the East into Kevin Duran's

knee injury. Without him, they've lost fifteen of their last eighteen games. The good news Durant returns tonight in Brooklyn against the East. Lead in Miami heat the Knicks in mid January, We're over five hundred, look like a playoff team. They've lost sixteen of their last nineteen. In Philadelphia, Sixers took the lead third quarter, pulled away once one oh eight. James Harden twenty six points in the near triple double and his home debut. A seamless adjustment to Harden's new team.

Very comfortable with a lot of a lot of situations where there's basketball or just in life. UM, I feel like I'm you can put me anywhere in the room and I can fit in. Um so here is no different, you know, just surveying room, see who's in, you know, see what you have, and uh, you know, try your best to fit. It's not gonna get any easier for the next six more games on the road tomorrow in Phoenix.

The Sons have the best record in the NBA. Rangers with three goals third period beat St. Louis at the Garden five to three, Chris Crider to go ahead goal on the power players thirty fifth goal the season. Three is cists for Adam Fox. He's got forty six assists. Bigge's Tournament next week at the Garden. Last night, St. John's beat Xavier sixty six, Seaton Hall down Georgetown seventy eight. Patrick Ewing's hoyas o N eighteen in the Big East. Looks like Seaton Hall will be in the n C

Double A tournament. Rutgers, said to be on the bubble, helped its cause with a three point win at Indiana. Fordham dropped back under five hundred, losing at UMass Northeast Conference Tournament quarterfinal wins for Wagner and l i U. The season over for St. Francis, lost by thirty John stash award Bloomberg Sports. Nathan thanks John at seven on Wall Street in time for the Tri State Business Report

with Bloomberg's ad Corey. As the pandemic drags on, employees who moved to New York City suburbs or even farther are becoming fixtures in city hotels. The Times reports some hotels eager to tap into this new market or crafting new packages designed specifically for them, with amenities like parking, conference rooms, and low midweek rates to sweeten the deal. New Jersey Governor Phil Murphy just got the one reward he's been after since taking off as four years ago,

a credit rating upgrade. On Wednesday, Moody's Investors Service raised New Jersey's credit rating giving the state its first upgrade since two thousand five. Wegman's Food Markets is expanding to yet another state. Grocery chain plans to open its first location in Connecticut in Norwalk. The thousand square foot two level store will be on an eleven acre site off

Connecticut Avenue, near Connecticut's interstate. According to a company announcement that your Bloomberg Dry State Business Report IMD Corey on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations

around the world. Steve pots on K and X in Los Angeles, we're talking about Elon musk darrectly United Auto Workers Union to try and unionized testas California factory um WAT. Some Louisville vodka drinkers are changing brands in the wake of the Ukrainian invasion. I'm killing hit COMPLIM, Big Davy Distional Radio and ontobodforce on russhipping ostracized, but not quickly enough. MP's want the Prime Minister here to do more to end the era of poligons. I'm d Gory on w

w J and destroyed. I'm reporting g M Telanda Chairs rose wed day after Ford said it'll split off its selectric vehicle business. And those are some of the stories our twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's just about five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg

Editorial Board. Some eight million metric tons of plastic end up in the ocean each year, the equivalent of a garbage truck every minute. At this pace, the seas may have more plastic than fish by mid century. The good news is at nearly two hundred countries have just degree to hammer out a treaty cleaning up the plastic mess, and businesses and policymakers don't need to wait to take action.

Manufacturers can start by boosting the amount of recycled content they use and by producing simpler packaging that's easier to recycle, and governments can aim to make inventive replacements for plastic made from materials such as algae more cost competitive. The plastic emergency has been building for years. Unfortunately, the world doesn't have the luxury of time in solving it. The sooner these efforts start, the better. This editorial was written

by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or ope I n go on the Bloomberg terminal. This has been Bloomberg opinion. You can hear Bloomberg opinion editorials every weekday at this time in terminal. Customers can read more at O P I n go this red headline just across the Bloomberg terminal. Another major your company is cutting off ties to the Russian economy. Volkswagen says it will stop production and halt

exports to Russia. With the war in Ukraine now into a second week. SMP futures down down eight points, SOUND futures down thirty four, NASTACK futures down fifty five points. The tenure Treasury yield one point eight six percent. This is Bloomberg Bloomberg eleventh three oh weather rain ending early this morning, clearing, breezy, low forties for highs. Today will be in the upper thirties, mostly sunny. Tomorrow mostly cloudy

mid forties by Saturday. Right now raining forty three in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com for the Bloomberg Business at and at Bloomberg Quicktape. He's a Bloomberg Business Flash and I'm fair in Moscow's doctor falling, commodity surging as the war in Ukraine enters its second week. We check the markets every fifteen minutes throughout the trading day on

Bloomberg SNP. Futurist down six points this morning, down, futures down nineteen nasdack Future is down forty six the decks in Germany's down one point one percent. Ten year treasury up four thirty seconds. He had one point eight six percent. They yield on the two year one point four nine percent. Nine X scret oil is up two point seven percent, up three dollars six cents at a hundred thirteen dollars

sixty seven cents of barrel. Comic Schold is up six tents percent, or twelve dollars fifty cents at nineteen thirty four eighty announced the euro one point one zero nine two against the dollar British pound one point three three eight eight begins at one fifteen point seven four. Bitcoin is down one and a half percent at forty three thousand, four hundred fifty dollars and as a Bloomberg Business Flash, now here's Michael bar with more on what's going on

around the world. Michael Karen, thank you kindly. A hercules See one thirty transport aircraft with about two thousand anti tank missiles for Ukraine has taken off from Oslow. The weapons are to help Ukrainian forces to resist Russia's invasion, which began last week. Meanwhile, French customs officials have mobilized a yacht owned by ross ne F chief executive officer

Igor Section, asked part of EU sanctions against Russia. The House panel investigating the January six ryant at the US Capital said it's evidence suggest crimes may have been committed by former President Trump and his associates in the failed

effort to overturn the outcome of the presidential election. In the NBA, the Knicks lost in the NHL, the Rangers won Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts, in more than a hundred twenty countries on Michael bar This is Bloomberg Karring. Alright, Michael, thank you. It is five on Wall Street. It's 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 d R dot org. Let's get to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger, the big four international accounting firms are being pressured to drop some of their big Russian clients. Sanctions over the invasion of Ukraine have highlighted the firm's

links to pronies of President Boutin. A group of lift drivers in California asked the Ninth Circuit to reconsider its ruling that they must arbitrate sickly even wage claims. The federal judge in Alabama throughout a race and sex discrimination case against Liberty National Life Insurance, a black ex worker had alleged she was harassed by a white male agent. 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 brings us to the war in Ukraine. Nations around the world. They're ramping up sanctions against Russia. The Treasury and cam most departments have been trying to quickly implement the first phase of these restrictions

through new rules. That means companies are trying to figure out how the restrictions apply to them, and their attorney's phones are ringing off the hook for more. In this situation, Bloomberg's June Grasso speaks to Chase k Nikki, a partner at Cleary gold Labe, who's been getting many of these calls. So what are your clients calling you about or what are they most confused about. We do get questions all over the map, and you know, some are easier than others.

Some require judgment calls because there's just, you know, lack of clarity. There's potentially some uncertainty with respect to whether a particular activity is covered by sanctions. But we usually start with the basics. In the basics are along the lines of, well, what jurisdiction does this particular activity or this transaction fall under if it falls under U S jurisdiction, For example, it involves a US company, or the transaction is going to be processed in US dollars, here's the

set of rules that apply as of today. The transaction doesn't involve US jurisdiction, but it involves UK jurisdiction or EU jurisdiction. It's helping companies understand exactly what set of rules apply to them on a case by case basis. And then once we kind of have an understanding of what those particular rules that apply are, does this transaction or some party that's involved in the transaction trip any of these sanctions? And if so, what do we do

about it? Is it a nonstarter? Can we just not complete the transaction or their ways the transaction can be completed that are undertaken in compliance with you know, the applicable sanctions regime. So would you say that usually you have a slower ramp up of sanctions over time, but here you have several stages within a compressed period of time,

and more escalations are possible. Exactly, That's right. I mean it used to be the case you know, look at the programs that apply to countries like Iran, and in even North Korea and Cuba, those countries are just completely awfu limits for US persons. The U s government, at least in recent years, hasn't really been taking that kind of broader, comprehensive approach, but instead is imposing at least what I call sort of smart sanctions, narrowly tailored sanctions.

In your right, you typically do see those in a more piecemeal way, where you know, a sanction will be imposed, the US government will see whether that sanction is having the impact that they wanted to, and then if it's not, you know, an additional sanction might be imposed. But you're

absolutely right here. In the last week or so with the Russia's sanctions program, it's just been a deluge of individual sanctions, but all kind of at the same time, and you know, having to wrap your arms around exactly what all those mean and what's the landscape look like from various perspectives. It's not just US sanctions, it's e

used stanctions, it's UK sanctions. Countries around the world are imposing sanctions on Russia, and so it really is a multinational effort that you need to be thinking about when you're thinking about multinational companies engaging in transactions with Russia, and that Chase Knniky, a partner at clear A gaunt Lep spregaing at the Bloombergs Your 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 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. Nathan. All right, Karen, thank you. It's five fifty three on Wall Street live from the Bloomberg Intractor Brokers Studios. This is Bloomberg Daybreak, and we're watching for FED chair Jerome Powell heading back to Capitol Hill in just a few hours for a second day of testimony, this time before

the Senate Banking Committee. But the Chairman has already had plenty to say about policy, as we heard yesterday when he spoke before the House Financial Services Committee. Our monetary policy has been adapting to the evolving economic environment and it will continue to do so. We phased out our net asset purchases. With inflation will above two percent and a strong labor market, we expect it will be appropriate to raise the target range for the federal funds rate

at our meeting later this month. And here with more on what the Chairman's had to say is our economics correspondent, Bloomberg's Michael McKee. Might good to have you with us this morning. And it sounds as though is not only the March meeting live, it's all but penciled in now. Yeah.

J Paul told Wall Street what they already thought they knew, and so there won't be much suspense going into the meeting, except we do get new forecasts for unemployment and inflation and interest rates, and so we'll see how much they think inflation is going to fall. Paul yesterday suggested they still anticipate a drop in inflation as the year goes on, but how far do they think it will go now because of the war and the elevated oil prices. Are

we is there any chance we get a to handle? Yeah, the transitory is definitely by the wayside at this point. It seems like the terminology has gone from transitory now to humble and nimble. What's that going to mean for policy going forward for the rest of the year. Well, unfortunately for people on trading desks, probably means uncertainty as they go into every meeting. Every meeting will probably be live, but we won't really have a good idea going into

the meetings. Uh the path going forward. A lot of analysts decided that we were going to see a UH six or seven move FED this year, and I think that's gone by the boards. The FED is going to be prepared to go more or less depending on how the economy evolves, in large part due to the uncertainty over the Russian War, because we don't know what's going to happen with commodity prices and oil prices, how long they'll remain elevated, and how much that hits into corporate

earnings and consumer confidence. And that's certainly something we heard a lot from the chairman yesterday saying it's too soon to tell the effect of the war what it'll have on the US economy, but I mean, if we get an energy shock from the effects on the commodities markets, I mean that's gonna have an inflationary impact, isn't Oh, certainly we're going to see we we had thought we might be plateauing in terms of energy prices, and as long as we're not seeing a rise every month, and

inflation mathematically pauses and maybe even starts to go down. But now, with oil prices where they are, it's gonna keep rising for a couple of months, and that feeds into gasoline prices, and then that feeds into how much you have left over to spend other places. So we'll be watching retail sales as well to see what kind of impact that has. It sounds like uber data dependence. How much impact is the job's report coming out tomorrow gonna have do you think? I don't think it's gonna

have a lot of impact. The Fed will be looking to see that, uh, employment growth continued. They'll be interested to see what the pay situation was, what happened with average hourly earnings. But this is February data, and the war didn't start until March basically, So, uh, what is it really going to tell the Fed about where we're going? Not a whole lot. It'll be interesting, but it will

be probably quickly forgotten. Just about thirty seconds left here, Mike, are there any unanswered question the Powell left on the table that you'll be looking for the uh uh Senate hearing later this morning, not anything that he's going to answer. Put it that way, we'd like to know more about what the path going forward is and when they might start reducing the balance sheet, but they want to keep that in reserve and make those decisions as they go along.

And it sounds like from a lot of what we've heard from the Chairman is they simply just have a lot of uncertainty with the war continuing. Mike McKee, as always, thanks for being with us, Bloomberg Economics Correspondent, Michael McKee. As we get set for that second round of testimony from Chairman Powell the Senate Banking Committee later on this morning, we will have full coverage for you here on Bloomberg Radio. Futures moving lower as we march toward the open on

Wall Street. Stay with us as Bloomberg Day Break continues. You're listening to Bloomberg Radio. Good morning,