Bloombrg Daybreak: January 10, 2022 - Hour 1 (Radio)

worst fires in New York City modern history. Plus tributes come in for comedian Bob Saget, I'm Mike la Bard Ahead, I'm John Stash, Darn sports, the Jets and Giants lost as the NFL regular scenes that ended, the Raiders, Steelers and forty Niners grabbed the last playoff spots. That's all straight Ahead on Bloomberg day Break on Bloomberg Element Treo, New York, Bloomberg one, Washington, d C, Bloomberg one, O six one, Boston, Bloomberg nine Sixties, San Francisco, Sirius x

M one nine Team and around the world. Old on Bloomberg Radio dot Com and via The Bloomberg Business and Good Morning, I'm John Tucker and I'm Karen Moscow and US futures are little change 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 again, S and P futures are little change, so are down futures. NASDACK futures are lower and they're jumping around as well, down about ten points right now. The

Dacks in Germany's down a quarter percent. Tenure Treasury down eight thirties seconds. You at one point seven nine percent in a yield on the two year point eight eight percent. John and Karen. Fed policy remains front and center last week's Fed minutes in the US jobs report, we're market moving events. Now we have a big call on the future of interest rates. Let's get the latest from Bloomberg's. We need a young we need a good morning, Good morning,

John Goldman. Sex expects the FED to raise interest rates four times this year and begin the balance sheet runoff process in July. The firm had previously expected the balance sheet run off to start in December, and it's all due to a stronger labor market and hawkish signs from those December minutes. FED officials have been signaling a quicker move to titan policy and Golden And says that could

lead to faster policy normalization than we've seen before. I'm rened a young bluebirth daybreak all right, rened to thank you. And Inflation also remains in focus, and veteran investor Mark Mobias says traders are under pricing the risks. He tells us that the reacent spike and treasury yields has room to run. I think they can go much much higher.

They've got to equal what we're seeing with inflation at the end of the day, because people are not going to be buying treasuries if they see that they only getting two or three percent, but inflation is seven eight nine percent, so at the end of the day, those rates have to go off. Those comments are Mark Mobias come after hawkish minutes from the feds December meeting underscore the case for faster rate hikes and speaking of inflation,

it's the main event this week's economic calendar. Here with more is Bloomberg's Vinnie del Judais. The Labor Department issues the consumer price indecks on Wednesday, and the data could put more pressure on the federal reserve the race interest rates as soon as March. Bloomberg Economics, as December CPI will register a seven percent year over your increase as COVID nineteen related supply short to just persist, fielding the

worst inflation since the nineteen eighties. This week's data on December producer prices and import prices will probably offer a similar narrative. Beneat Dell, Judais, Bloomberg day break right, Vinny, thank you. All Economic forecasts are also falling prey to the Macron variant. The new COVID strain is now posing a new test to growth, and Bloomberg said, Baxter has the story. It is posing something on which employers have no control, absentee ism because of illness, people calling in sick.

What started as a holiday flight cancelation has now become a reality in factories, grocery stores, and ports again testing supply chains top to bottom. The widespread absentee is um is already constraining output and several economists have downgraded their first quarter forecasts. How bad, how long it may take several weeks to assess? In San Francisco, I'm at Baxter, Bloomberg Gay Break Dank said on Capitol Hill. Democrats are

pushing for another round of virus aid. How Speaker Nancy Pelosi says, go to add relief aid to a package to government funding legislation. Now, the administration has not made a formal request for more funding, but it is clear from the opportunity that is there and the again the challenge that is there from the resilience of this virus. Speaker Pelosi making the comments on Face the Nation from CBS heard Sundays on Bloomberg Radio. It's an interesting data

on vaccines coming out of Asia this morning. John Singapore says it saw the few as deaths among those with Maderna's vaccine and the most deaths among those with Signifac shot. Nearly undred virus deaths recorded in the city state last year were among unvac senated individuals. And Gia politics also in focus this morning ahead of meetings between the US and Russia. But White House and US allies may impose export restrictions on Moscow if Vladimir Putin seizes more of Ukraine.

The discussing limits on sensitive technology and electronics. Today in Geneva, senior American and Russian officials begin talks aimed at easing tensions over Ukraine. Here, Secretary State Anthony B. Lincoln, I don't think we're gonna see any any breakthroughs in the coming In the coming week, we're gonna be able to put things on the table. The Russians will do the same, both directly with US at NATO at the os UH, and we'll see if their grounds for for moving forward.

Secretary State Anthony B. Lincoln making the comments on CNN's State of the Union. Turning to the markets, now, John, we have a bullish call from Julian Emmanuel, the ever Corps I s I strategist, says the S and P five hired is likely to end the year at hundred as the pandemic becomes an endemic by mid year. It's about a ten percent increase from are in levels, Immanuel says is also possible. His downside target is just south of thirty six hundred at the pandemic is prolonged or

there's a hangover from spending and debt. Meantime, Karen Earning season kicks off in Earnest On Wall Street this week with more. Here's Bloomberg's Charlie Pellett. Banks will be front and Center with reports Friday from JP Morgan, Chase City Group, and Wells Fargo. They come as investors debate the strength of the economy and the federal reserves next policy moves.

Seem as Shaw's chief strategist at Principal Global Investors, when we think about actually a bit of think about we were also going to think about earnings and the outlet that we have for twenty two is still a very solid recovery, still very straw economic en garment. Among some of the other names scheduled to report this week, Delta, Albertson's Infosis and KB Home in New York. Charlie Pellett, Bloomberg Daybreak, Thanks Charlie, and ahead of the cash open

on Wall Street this Monday. Futures are mixed. The Dahl futures of twenty points, SIP futures, they're up two points right now. They tech have a nastic those futures down ten and a half points right now. As for treasuries, the benchmark ten year yield, it is up two basis points right now at one point seven eight percent, the two year at point eight seven percent. You're listening to Bloomberg day Break and where it's five oh seven right now,

let's getting in from around the world. Here's Bloomberg's Michael Barnes. John, thank you very much. At least nineteen people were killed in New York City yesterday in a high rise apartment. Fire officials say the fire in the Bronx also injured at least sixty three people. New York Mayor Eric Adams, it's a very significant moment to have just the unification about city during this time of the tragedy, Mayor Eric Adams.

As investigators say, the cause of the blaze was a malfunctioning space eater in an apartment on the third floor. New York City Fire Comissioner Daniel Nigro tells us many people are fighting for their lives because of smoke inhalation. The door to that apartment. Unfortunately, when the residents left was left open, it did not close by itself. The smoke spread throughout the building. Thus the tremendous loss of life and other people fighting for their lives right now

in hospitals all over the Bronx. Commissioner Nigro says nine of the deaths were children. Republican Representative Jim Jordan of Ohio when a former President Donald Trump's closest allies and Congress has rejected a request for an interview by the House panel investigating the January sixth Capital riot. In a letter to the committee chairman, Jordan says the American people are tired of Democrats, NonStop investigations and partisan witch hunts.

Republican Senator Ron Hunt said that he will Ron Johnson said that he will seek a third term in twenty two. Johnson, staunch supporter of former President Donald Trump, opposes COVID nineteen backs a nation and masked mandates. New York Democratic Congresswoman Alexandria or Cassio Cortez tested positive for COVID NINETEAM, according to her office of Cassio Cortez, who was fully vaccinated, has had a booster shot and is experiencing symptoms and

is recovering at home. Tributes are pouring in for comedian Bob Saget. He played father Danny Tanner on the sitcom Full House. It's Mr Carr. What does Mr Carr say? You're right? He doesn't say anything. Sagged was found dead yesterday in his Orlando, Florida hotel room. Bob Saget, who was on a stand up tour was Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven journalist and analysts in

more than a hundred twenty countries. Michael bar this is Bloomberg. Jo. Michael, thank you very much. Okay, just coming up on ten on Wall Street. That's time for the Bloomberg Sports Update. Here's John. Thanks John. The NFL regular season is over, thankfully for the Jets and Giants. They both went four and thirteen. The Jets, like last week, were at least in their game, trailed the Bills by only three midway through the fourth quarter. Buffalo went on to win seven

to ten to clinch the a f C. E's. The Jets will go to next season unsure how good a quarterback they have. Rookie Zack Wilson yesterday competed only seven passes. The Jets will have the fourth and tenth picks of the draft. The Giants will have the fifth and eighth picks. They will clearly be looking to improve an offense so in apt. The Giants on a third and nine yesterday ran a quarterback sneak rather than risk of turnover. They

lost to Washington two to seven. They lost their last six games and only once that they scored more than ten points the regular season and the last minute in Las Vegas. The Chargers game from fifteen down in the last five minutes to force overtime, but the Raiders kicked a field goal on the final play to win thirty five thirty two. Had the game into the tie, both teams would have made the playoffs. Instead, only the Raiders do.

They'll play Cincinnati. The Chargers are out. The Steelers are in headed for Kansas City, New England will play Buffalo. The NFC matchups are Philadelphia at Tampa Bay, the forty Niners in Dallas, Arizona at the l A Rans NBA overtime in Brooklyn. The Nets first home win since mid December. They beat the Spurs nineteen. The Warriors beat the Kazz and Clay Thompson's first game in two and a half years.

A judge in Australia reinstated Novak Djokovic's visas I now he can play the upcoming Australian Open, but the government could still take further action against him and historic hired by the Yankees. Thirty four year old Rachel Balkovic will manage the Yanks Class A minor league team in Tampa. First female to have such a job. John Stash were Bloomberg Sports John by John, thanks very much and ahead of the cash show. But on Wall Street, futures in

the green right now, not but much. The nastac features have just termed positive, up just six points, SMP futures six points higher, and the own futures right now they're up forty four points. Will preview the opening uh do Wall Street this morning with Lori Calvas. Seen it in just a few minutes. You're listening the Bloomberg Tay Break Bloomberg day Break being brought to you by the Breakers

this winter. A warm welcome awaits and awaits you. The Breakers is committed to making your stay even better with exceptional experiences, gracious service, unparrelled seaside glamour. Learn more of us of the Breakers dot markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape. He's a Bloomberg Business Flash and I'm kared. Moscow and US stock Indix futures have turned higher this morning. Investors are bracing for

a von market volatility as well as stimulus withdrawal. And we checked the markets every fifteen minutes throughout the trading day on Bloomberg S and P futures up about seven points down, futures of forty five and NASDAC futures up thirteen. The decks in Germany is down about a tenth above

her sent tenure, Treasury down three thirty seconds. He had one point seven seven per set yield on a two year point eight six per set nine X screwed oils up to ten per cent or fourteen cents at seventy nine dollars, three cents of barrel call make schooled the tenth of upper cent or two dollars at seventy announced. The euro one point one three three one against the dollar, British found one point three five nine two, and the ns at one fifteen point five nine Bitcoin this morning

moving lower at forty one thousand, nine hundred dollars. That's a Bloomberg business flash. Now here's Michael Barr with Moura

on what's going on around the world. Michael, good morning, Good morning, Kareny and New York of mal Functioning Space Eaters sparked a fire that filled a high rise Bronze department building with thick smoke Sunday morning, killing nineteen people, including nine children, and Australian judges reinstated tennis star Novent Djokovic's visa, which was canceled last week because he is unvaccinated. Final week of the regular NFL season, the Giants lost

to Washington seven. The Jets lost forty nine in the playoffs after beating the Rams four. Patriots lost to the Dolphins but still advanced. Steelers are in the post season after beating the raven sixteen thirteen Round one playoffs, Raiders and Bengals, Patriots and Bills, Eagles and Bucks, forty nine, As and Cowboys, Steelers and Chiefs, Cardinals and Rams, Packers

and Titans get first round bys. In the NBA, the Nets, Wizards, and Warriors won global news twenty four hours a day on air and on Bloomberg Quickday, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg jun Michael. Thank you. It is five twenty on Wall Street. We are lying for the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Let's get you set up for the trading

day ahead, futures inching upward. The S and P five hundred did post the worst start to a year since twenty sixteen. We're joined now by Lori Calvassin, ahead of US Equity Strategy at RBC Capital Markets. Hey, Lari, thanks for being with us. Happy new year to you. What's your overall thought on the markets? Uh? Text bearing the brunt of the cell off of the first week of trading with a hawkish till from the FED um cheaper stocks going to outperform the more expensive ones. Well, thanks

for having me, As always, it's great to be here. Look, I think that last week a lot of things that we'd have been expecting to play out in the early part of two did play out, so perhaps a bit more fiercely than even we'd anticipated. And you know, I think it's important to understand that there are different markets here that look at the FED, and the equity market at least seems to be lagging in terms of its understanding of what the set is going to do this year.

So I think that's one of the reasons for the ferocity of the move last year of last week rather and the unwind and tech. If you go back to right before the holidays in December, we did a poll of equity investors and we found at fifty percent we're still anticipating liftoffs by the Fed into Q of this year.

So the idea of March hikes coming into play. I know that's been popular and fixing come circles for a while, but it is something the equity market has been late to digest, and I think that's, frankly, just one of the reasons why we've seen this ferocious unwind in tech SOX because, as you mentioned, when rates are rising, expensive stocks underperform, and tech is where the most expensive valuations are.

Even after the route we saw last week, we got the forecast from Goldman Sachs this morning four rate rises this year. What's your view, um, I think that's similar to what our economists have been talking about. I mean they were telling us back in early December, Frankly, that you know, they thought there was a fifty fifty chance of a Mark March hike, and our rate strategy team had been saying that they thought the Fed was on a more aggressive tightening path than than the market understood.

They've been saying that for quite some time as well. Um, so it's not really that much of a shock to us. But again, I do think there's some additional digestion that the equity market um is going to have to do. So I don't think that this you know, this, this this route and tech frankly doesn't seem to me like it's done yet. Is there any thought that maybe the projections for the rate rises might be overdone, that the hawk is till might not be as hawk gish, and

that could actually wind up being a positive for risk assets. Well, yeah, I've been hearing equity investors, you know, since you know, my December meetings were we've really been focusing on the year head outlook, questioning whether or not the FED should be so aggressive. And there's been a couple of things

that people have pointed to in my conversations. At least one has been the economic disruption from Omicron and does not to say people are embarrassed on the economic outlook, but just saying there's a certain fragility um that they've been surprised that the FED would want to get so aggressive in the middle of um you know, sort of wait and see how it plays out, is what a lot of people have told me. Others, frankly, have said, Look, we expect inflation to start to moderate later this year.

We expect supply chain pressures to moderate by midyear. Why does the FED need to be so aggressive if that's already set to happen, um. So I think that's really what a lot of equity investors have been struggling with and why they've been behind the curve, so to speak. A new year's started, another earning season. What among the things you'll be watching for it to maybe indicate a

broader trend. So, you know, it's interesting. We always start out with the financials, and the financials have had quieter run cutting into this reporting season, so I'd say the bar is pretty high there, um. But you know, putting the financials aside, you know, I'm looking to see what the color is on demand, what's the color on supply chain, and the timing of improvement is COVID and the o

maicon wave delaying that and pricing power. Um Our analysts have come into this year very comforted by the fact that that their companies can manage through O Macron and that pricing power is strong to come back supply chain and inflation pressures. UM. But we do need to see if that is continuing to hold in this latest commentary. Alright, time to put you on the spot with some projections you're in for you still sticking to your your in projections.

We're still sticking to the five thousand fifty target. UM. We've had that in place for quite some time. UM. It actually we had put our targets out early last year, and so we did revise it earlier to that number already. UM. And look, I think bottom line, it still sends the message we want to send, which is that this is going to be an up here in the stock market. We don't think it's going to be as easy um as what we got last year. We're not surprised by

the early year volatility. But the good news is this volatility is coming early in the year and there's time to recover from it. Yeah, what's what's the biggest risk you see at this moment? So you know, I have been concerned about the quantitative tightening talk. UM. That was not something that was on our radar a few months ago. It's something we have had to rapidly pull onto our radar um. I think that in the multiple compression that you do often see with rate height cycles is something

to keep in mind. We've been anticipating a very strong Earns backdrop to offset that um, but I do think that's really probably where the risk is. Boys A pleasure, Thank you, lo Lorie Calvassin ahead of US Equity strategy at RBC Capital Markets with us this Monday morning. Down futures right now seventeen points higher, SMP futures a point higher, and the st futures they've been fluctuating of in and out of gains right now eleven points lower, or the

NASTAC futures. You're listening to Bloomberg day Bread and the Bloomberg weather for it. Today mostly saw a breezy, colder at the Heights aperture about thirty so I partly clowned a chance of snow showers during the evening, breezy, much colder after midnight, the lows dipping down into the mid teens.

Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C. Bloomberg one to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the country, Sirius XM Chado one ninet and around the globe the Bloomberg Business at and Bloomberg Radio dot com. This is Bloomberg Day Breaks five thirty on Wall Street. Good morning, I'm John Tucker and I'm Karen Moscow, and we're just about four hours away

from the open of US trading. Let's catch you have to date on the news you need to know at this hour. US futures are little change this morning. To start the week, the S and P five hundred is down one nine percent so far this year and as the worst start since to tech having NAVSDAC one hundred is down four and a half percent. It all comes as traders anticipate higher interest rates, and Goldman Sachs is ramping up its forecast on that front. Bloomberg's Reny too

Young joins us now with more. Karen Goldman Sachs expects to Fit to raise interest rates four times this year and begin the balance sheet runoff process in July. That's moved up from a previous forecast of December. It's all because of a stronger labor market and hawk is signs from the Central Bank's latest meeting. Goldman says the Fed is set to normalized policy faster than we've ever seen before.

I'm really need a young Bloomberg daybreak, all right, thanks for need a Treasury yields they continue to climb, with a tenure benchmark moving closer to two Garfield Reynolds covers rates for Bloomberg News to missing can come in this quarter, and if it does, us through that two percent, it could go significantly higher before anybody calls the hoop because there's a little bit too much complacency out there about

just how how Bloomberg Scarfield Reynolds is. This week's reports on inflation CPI on Wednesday, p p I on Thursday will be key for the bond market, and geo politics is also in focus this morning, John, Ahead of meetings between the US and Russia, Bloomberg News has learned the White House in US allies may and pose export restrictions on Moscow if Latimir Plutin seizes more of Ukraine. We get the latest from Bloomberg's Maria Today. Oh so far.

You know some of the lines that we've gotten here is pretty much the same kind of mood music that we've heard for weeks now, kind of saying, you know, the United States, there's two ways here, one in which Russia d escalates and we go for a diplomatic solution. If there's no diplomatic solution to the Ukraine tension, then we could see immediate and huge, massive repercussions on the

Russian economy. And of course Russia still playing this very tough, saying we're not going in to talk to Concede and Bloomberry's Maria Today, O says talks are ongoing in Geneva. They'll be followed by NATO meetings in Brussels later this week. S and P futures that will change this morning. So our down future is nowsday futures down four team now. So they've been moving around a bit this morning. The decks in Germany is down about a tenth of upper

cent ten year treasury down four thirty seconds. You had one point seven seven percent yield on the two year, point eight to six percent in bitcoin this morning at nine hundred dollars straight. I had your latest local headlines, plus a check of sports, and this is Bloomberg. Thanks three on Wall Street. Hand, Let's bring in Michael Parnhow with more on what else is going on in New York. Hand around the world, John, thank you very much, Sarah. New York Mayor Eric Adams says it's one of the

worst fires in modern city history. Nineteen deaths, nine of them are children up babies that we lost, and we all filling this and we're going to be here for his community. Adam says the blaze that broke out at a high rise apartment building and the ROVINX also injured at least sixty three people. New York Governor Kathy hokel we are indeed a city and shock to see it in a mother's eyes as I held her who lost

her entire family. New York Fire Commissioner Daniel Ninegro the marshals have determined, through physical evidence and through firsthand accounts by the residents that this fire started in a bedroom in a portable electric heater. Commissioner nine Gros says the blaze began in a third floor apartment and smoke quickly spread. Representative Alexandria Ocassio Cortez in New York has tested positive

for COVID nineteen. According to her office, Ocassio Cortez, who was fully vaccinated and had a booster shot, is experiencing symptoms and recovering an home. Ohio Representative Jim Jordan indicated that he won't voluntarily testify to the House Committee invest getting the riot at the US Capitol, writing the inquiry

isn't fair minded and objective, you know. Letter to committee Chairman Benny Thompson, the Ohio Republican says the committee's request that he appear is far outside the bounds of any legitimate inquiry, violates core constitutional principles and would serve to further a road legislative norms. Jordan is one of former President Donald Trump's congressional allies and has publicly acknowledged talking on the phone with Trump January six, as rioters stormed

the Capitol. Bob Sagett, the actor comedian known for his role in Full House and host of America's Funniest Home Videos, died while on a stand up tour. Detectives who found Saget's body in Orlando, Florida, in a hotel room say there were no signs of foul play or drug use. Bob Saget was six Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a

hundred twenty countries. Michael Laren, this is Bloomberg, John, Michael, thank you man. It's coming up up straight this time for the Bluebird Sports Update. Here's John Alright. John with season ending losses. The Jets and Giants both finished four and thirteen, so they get high draft picks. The Jets also owned Seattle's picking. The Giants have Chicago, so the two New York teams together owned four of the top ten picks. Both teams need plenty of help. The Giants

need a ton of help on offense. They lost to Washington twenty two to seven. Antonio Gibson ran for a hundred forty six yards, the Giants only had a hundred and seventy seven total, only ten first downs. Jake from did have a TV pass but also a fumble two interceptions, one of them returned for score. Giants lost their last six, all by double digits. Five of the six were buy more than two touchdowns, and now general manager Dave Gettleman certain to leave His four year record was nineteen and

forty six. It's not known if coach Joe Judge keeps his job. Jets lost in Buffalo twenty seven to ten, so a six and twenty seven record of the last two seeds in The playoffs begin Saturday with Las Vegas at Cincinnati. The Raiders beat the Chargers last night thirty thirty two on a field goal on the last play of overtime. A tie would have meant both teams got in. Instead, Chargers are out, Steelers are in. They play at Kansas City,

New England will go to Buffalo. The NFC matchups are Philadelphia, Tampa Bay, the forty Niners in Dallas, and Arizona at the L A. Van. Alabama looks to make it seven national championships in the last thirteen years. Gimpson Tide beat Georgia last month in the SEC championship game. They'll play again tonight Indianapolis. Georgia actually a slight favorite. Overtime in Brooklyn, Nets beat the Spurs one nineteen. A judge in Australia reinstated Novak Djokovic's visa. As of now, he's free to

play the upcoming Australian openly. John Stashwar Bloomberg Sports Jump John, thanks very much, five thirty seven on Wall Street. Hand that means it's time for the Tri State Business Report. For that, we're joined by Bloomberg's Ed Quarry. The Board of New York and New Jersey is working to clear a small bottleneck of container ships off the coast of Long Island. Is COVID nineteen cases among DONC workers collide

with the surgeon cargo. The average weighted anchorage for container ships was four point eight days in the final weeks of one compared with an average at one point six days for all of last year. Connecticut will replace diesel powered school busses with electric vehicles by five The Connecticut Post reports it will be a massive undertaking, requiring not only the replacement of the current fleet of buses, but

the construction of recharging stations to power them up. Provident Bank has elevated Anthony laba Zetta to the title of President and CEO. He was previously Director, President and Chief Operating Officer of the Jersey City based bank and Provident Financial Services, it's holding company. Andrew Bloomberg, Try State Business Report. I'm ed Corey. Thanks on Wall Street. Bloomberg Radio is on the era from San Francisco to New York, London

to Hong Kong. Let's check in now with Global News team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve Potas get on ten ten Wins in New York. We're talking about the part of New York and New Jersey hustling to cut into a rare bottleneck of container chips. Um Corney Tannahoe on Cathabian Olmaha. Soaring fertilizer prices, which have driven up food inflation have finally tumbled. I'm Caroline

Hell Bloomberg DAB Digital Radio in London. We're reporting on the government's new solution to the cladding disaster. House builders will have to pay into a four billion pounds plodding funds. I made Corey on w w J in Detroit. I'm reporting General Motors has agreed to recognize California's authority has set its own policies on vehicle emission. Yeah, those are some of these stories are twenty seven hundred 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. This editorial was written by the Bloomberg Editorial Board. The new year brought an unprecedented wave of protests to the Central Asian nation of Kazakhstan. In response, the country's president claimed his government was under attack by terrorist groups that had received extensive training abroad. In fact, ordinary Kazakhs have enough reason of their own

to be angry. The government would be better off addressing their legitimate grievances, both economic and political, instead of trying to suppress them. Worryingly, the Kazakh president has taken a hard line approach, calling in troops from Russia and issuing a shoot to kill order against protesters. This move will certainly backfire. One thing the demonstrations should have taught Kazakh leaders is the danger of not listening to their own people.

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 and Bloomberg Opinion editorials can be heard every weekday at it's time terminal customers. You can read more at opie I n go. This is

Bloomberg the forecast for meteorologist Rob Caroline Burr. Mostly selly, breezy, colder, highs about thirty now, partly cloudy tonight, some snow showers, possible breezy, much colder after midnight, the low temperature dipping down the fifteen markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Dictape. This is a Bloomberg Business blash and I'm Karen Moscow and stocks in Europe are steady.

U Stock Index futures are little change. Investors bracing for a bond market volatility and stimulus withdrawal. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SMP futures again little change, so are down futures NASDAG futures are lowered, down about two tenths of upper cent or twenty four points. The decks in Germany's down a tenth of upper cent. The ten year treasury

down two thirties seconds. He had one point seven seven per cent yield on the two year point eight six percent Ninemex screwed oils down a tenth of upper cent or ten cents is seventy eight dollars seventy nine cents of barrel comex schooled up a tenth of upper cent or two dollars at seventy announce the Euro one point one three to eight against the dollar, British pound one point three five eight three the ends at one fifteen point five eight, and Bitcoin this morning at forty one thousand,

nine hundred dollars. That's down about nine tenths of upper cent. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. At least nineteen people were killed in New York City Sunday in the High Ryan's apartment fire in the Bronx. Investigators say m L functionings a seaters sparked the blaze. Chicago school leaders are canceling classes for a fourth day. The dispute continues with the teachers

union over remote learning and COVID nineteen protocols. In the final week of the regular NFL season, the Giants lost to Washington. The Jets lost the forty nine are in the playoffs after beating the Rams. The Patriots lost to the Dolphins but still advanced. The Ravens lost to the Steelers. Round one playoff games Raiders and Bengals, Patriots and Bills, Eagles and Bucks, forty Niners and Cowboys, Steelers and Chiefs,

Cardinals and Rams, Packers and Titans get byes. In the NBA, the Nets, Wizards and Warriors won, and Australian judges reinstated tennis star Novak Djokovic's visa, which was canceled last week because he is unvaccinated. Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg, John, Michael, thank you. Five nine Wall Street were live for the

Bloomberg Interactive Broker's Studios. On the virus front, the latest numbers of worldwide cases exceeding three hundred points six million. Deaths have surpassed five point four eight million people. Let's get an update now from G. Gronville, professor at the Johns Hopkins Bloomberg School Public Health joining us this morning. Professor, Happy new year, the new year to you, Thank you

very much for being with us this morning. We have numerous reports of hospitals across the country being understaffed as more workers get COVID. Can you give us an update from where you stand just how dire things are at

this point? Yes, I mean much of the serious situation is really because we have so many unvaccinated people um and because omicron is good at infecting people who are vaccinated, it doesn't cause nearly as severe disease as UM as in people who are unvaccinated, But it is taking people out of the workforce, is making them ill, and so it's cre eating um. It's making a bad situation worse. Because we've been in this for nearly two years now.

You know where there are deaths in the vaccinated, it seems the bulk of them are with non m r and A vaccines. Is that clear to you? And is it pretty clear at this point that the type of vaccine really does matter. The m RNA vaccines have had really amazing efficacy and so UM for people who have had the Johnson Johnson one dose vaccine. It's recommended that you get a booster and a booster with UM, we'll get an additional dose and then maybe a booster on top of that. Uh, you know, to get the full

m RNA vaccine update because it definitely has a higher efficacy. Yes, we had a report this morning on Bloomberg there's a Cypriot scientist defending his assertion that there's a new strand of COVID nineteen existing out there. It combines the characteristics of the delta omicron variants. Do you have any thoughts on that? Um, there's a lot of controversy over that person. So let's wait and see. We've got enough problems on the table to start, you know, before and getting some

more on the table. Yeah, it's I wonder where we go from here from from your perspective in terms of getting people vaccinated new variants, what should we expect at this point? Well, I mean every time the virus replicates is an opportunity for more variants to form, and so um, you know, you don't want to uh be all doom and gloom, but you know, amcon may not be the last one, and so we need to think about this as being have a longer term strategy. People need to

get vaccinated. Children need to get vaccinated. And if I could wave a magic wand I would, I would vaccinate all the case and twelve children right now so that they are better protected. UM. And also I would I would make everyone who has not had a booster shot, you know, make that appointment. Um. That those are some of the best things that you can do right now to protect yourselves. The there are codes of the being exposed to sours covid to the virus doesn't always result

in infection. We've been keen to understand why any any thoughts of that. Yes, this the other day I spoke to a nine year old man who had been boosted and who tested positive and was really annoyed with his family who wouldn't let him go to work. So you know, everybody's experience is a little bit different. Um. Unfortunately, some people, even with the vaccine, have had more serious called more cold like flu life symptoms. UM. But you know it's uh,

it's it is definitely variable. People have different immune responses and people are expose the different amounts of the virus as well, so there are too many variable stabilities apart. But amicon does appear to be milder for people who are vaccinated than not yea. And in terms of public policy at this point, what would you like to see

from the government. Well, I think um much has been made about the availability of testing, and we need to have better testing and people need to get the results faster, that's for sure. But we UM the vaccine, we need to have more people um, you know, promoting it. UM it's it really is life saving and it could help our hospitals, um not be so overwhelmed. The other thing we need to do is make sure to give the

support all we can to to hospitals. And because right now this is uh, this is too much of a crush on on them and and it's been going on for too long. Usually always a pleasure, appreciate it. Usually Groundville, professor at the Johns Hopkins Bloomberg School of Public Health,

Karen all right, John, thank you. It is five fifty four on Wall Street time for our daily Bloomberg Law Brief, exploring legal issues in the news, and today we're looking at the sentencing of Elizabeth Holmes, the youngest female self made billionaire, faces as long as twenty years behind bars after being found guilty of fraud at paraph knows the blood testing startups she founded, but the thirty seven year old is likely to appeal her conviction for more in

the case, June Grasso speaks to Bloomberg legal reporter Joel Rosenblad. So, now we assume she's going to appeal. Sitting through the trial, did you notice any points, any obvious points of appeal? This, to me is a very interesting question and a very important point. The short answer is no, I think there's nothing for her to appeal here. The judge went out of his way to let Elizabeth Holmes and the government

hash out differences in the middle of trial. He allowed the defense to raise every argument that they wanted to, to the point where it got long. Yet the judge just let it play out kind of very slowly and very carefully. And I think that this was very specifically

designed to not allow for any issues to appeal. And the way the verdict broke down, with her being acquitted on some charges, found guilty on others, and a deadlocks jury on three counts indicates that they walked through the accounts from one by one very carefully mapped out the verdict form what they were required to do under the rules, and I think that time that they spent on that to now carefully they worked through it makes for I think zero issue on appeal. She's sing twenty years on

each count, but that's not going to happen. So what might descendants be. Well, as you know, the TN sumble way within the guidelines. But she is going to spend time in prison for sure. My early assessment was that she would spend being a first time offender and the white collar criminal, probably between three and five years. A closer look at that, and some conversation with experts tells me something different. One of the counts was for a hundred million dollars. She was fun guilty of in one

instance defrauding an investor of one hundred million dollars. The money matters, and it bumps up by statute the amount of time that she may end observing, and I think she's going to spend a minimum of five years in prison and maybe even a bit more, and most likely will she be held in one of those pushy minim security prison camps like the so called Camp Cupcake. That's right, I mean, as far as prisons go, it's going to

be a comfortable setting. There's a lot of speculation that she would have time to write a book or a screenplay. It'll be a big change for her though. Even after their nose, she has had a baby with Billy Evans, who's an heir to a hotel fortune. And you can tell just doing trial she's being picked up in a car and driven to an estate where she's staying and living a very extremely luxurious lifestyle that's going to be gone. And as Bloomberg Legal reporter Joe Rosenblatt speaking with June Grasso.

Catch more of that interview plus analysis of the latest legal news by listening to the Bloomberg Law Show at ten pm Eastern Time or subscribing to the Bloomberg Law Podcast. And attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com. Futures this morning, S and P futures are little change, so are down futures and Nasdaq futures are lower, down about forty four points.

The ten year treasury down three thirties seconds, YELD one point seven seven per cent, and they yield on the two year point eight six percent. NIMEX Scrude oil little change down five cents at seventy eight dollars eighty five cents a barrel still ahead on Bloomberg Daybreak and check on the business headlines and all the news you need to start your day. And this is Bloomberg.