Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager.
Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.
Speaker 3: President Biden is set to deliver his State of the
Speaker 3: Union address to both chambers of Congress tonight. Bloomberg's Amy
Speaker 3: Morris has a preview from Washington.
Speaker 4: This State of the Union may be President Biden's biggest
Speaker 4: opportunity to reset and shift public perceptions. Biden faces concerns
Speaker 4: about his age, worries about the economy, frustration over the
Speaker 4: Israel Hamas War, and a shrinking Democratic coalition. Biden is
Speaker 4: expected to highlight his administration's accomplishments, discussed making the wealthy
Speaker 4: and corporations pay their fair share, and he'll address women's issues,
Speaker 4: including abortion. First Lady Jill Biden invited Kate Cox, a
Speaker 4: woman who was forced to seek an abortion outside her
Speaker 4: home state of Texas. Alabama Senator Katie Britt will give
Speaker 4: the Republican response in Washington, and Amy Mores Bloomberg Radio, All.
Speaker 1: Right, Amy, thanks well. During the State of the Union,
Speaker 1: the President will propose increasing minimum tax rates paid by
Speaker 1: major US and multinational corporations to twenty one percent and
Speaker 1: eliminating tax breaks for companies with high paid executives. The
Speaker 1: proposal would affect corporations valued at one billion dollars or more.
Speaker 1: It would raise their minimum tax rate from the fifteen
Speaker 1: percent level implemented earlier in Biden's term.
Speaker 3: Well, Karen, While the President puts the finishing touches on
Speaker 3: the speech, Donald Trump is challenging him to debate. The
Speaker 3: former president posted on his truth social account that he's
Speaker 3: calling for debates quote any time, any where, any place,
Speaker 3: and he wrote it in all caps. Trump skipped five
Speaker 3: debates with his Republican rivals during the primary. A Biden
Speaker 3: campaign spokesman says, if Trump is desperate to see the
Speaker 3: president in primetime, he can watch The State of the
Speaker 3: Union tonight.
Speaker 1: Well mean Mile Nathan. Bloomberg News has learned President Biden's
Speaker 1: top economic aid successfully push the upcoming White House budget
Speaker 1: forecast to present a rosier view, and we get the
Speaker 1: latest from Bloomberg's John Tucker, John and Karen.
Speaker 5: This is Leel Brainerd, who ad directs the National Economic Council.
Speaker 5: She used her cloud to alter forecasts in the President's
Speaker 5: budget proposal, which is scheduled for release Monday. Those forecasts
Speaker 5: are typically set by the Treasury Secretary, the OMB Director,
Speaker 5: and the chair the Council of Economic Advisors, the so
Speaker 5: called Troika. A Brainer disagreed with the troikas ten year
Speaker 5: interst rate projections and predicted a slightly lower rate. A
Speaker 5: lower interst rate forecast would have the effect of an
Speaker 5: improved overall outlook by offering more support for growth and
Speaker 5: suggesting less concern about inflation. It also would lower borrowing
Speaker 5: cost projections at a time of rising worries about the deficit.
Speaker 5: A Brainer, the former vice chair of the FAD, now
Speaker 5: serves as Biden's top economic aid. She's taken on a
Speaker 5: growing public profile since joining the White House about a
Speaker 5: year ago. John Tucker, Bloomberg Radio.
Speaker 3: All right, John, thank you. Back on Capitol Hill. Fedschair
Speaker 3: Jay Powell wraps up two days of congressional testimony today
Speaker 3: before the State Banking Committee. In his appearance before the
Speaker 3: House Financial Services Committee, Powell stuck to the script on
Speaker 3: the path ahead for interest rates.
Speaker 6: It will likely be appropriate to begin dialing back policy
Speaker 6: restraint at some point this year, but the economic outlook
Speaker 6: is uncertain and ongoing progress toward our two percent objective
Speaker 6: for inflation is not assured Chairman.
Speaker 3: Powell also said the FED is likely to make significant
Speaker 3: changes to its plan for banks to hold more capital
Speaker 3: under what's done as the Basel three end game. The
Speaker 3: plan to boost capital requirements by nearly twenty percent has
Speaker 3: drawn intense criticism from the banking industry and Republican lawmakers.
Speaker 1: And Nathan Powell wasn't the only FED official speaking yesterday.
Speaker 1: Minneapolis FED President Neil Cashcari said he expects the FED
Speaker 1: to cut interest rates two times or potentially just once
Speaker 1: this year. When policymakers last released rate forecast and December,
Speaker 1: cash Carries said he projected to two rate cuts for
Speaker 1: this year. Speaking at an event hosted by The Wall
Speaker 1: Street Journal, Cashgary said he expects his forecast to show
Speaker 1: the same number are potentially one fewer, and FED official
Speaker 1: submit new projections at their mid March meeting. Kashgari does
Speaker 1: not vote on monetary policy this year.
Speaker 2: Well, Karen. Interest rates are also in focus overseas.
Speaker 3: We get a monetary policy decision from the European Central
Speaker 3: Bank later this morning, and we get a preview now
Speaker 3: from Bloomberg's Max Ramsey in Frankfurt.
Speaker 7: The markets positioned for interest rates to stay on hold today,
Speaker 7: keeping the deposit rate at its record high of four percent.
Speaker 7: That's been widely telegraphed by members of the ECB's governing council.
Speaker 2: But of course the press.
Speaker 7: Conference from President Christine Lagarde will still be closely watched.
Speaker 7: Will be on the lookout for any signals on the
Speaker 7: potential timing of a first cut. We'll also get new
Speaker 7: quarterly economic projections at this meeting, so we'll see how
Speaker 7: that plays in to the ECB's thinking. In Frankfurt, Max
Speaker 7: Ramsey Bloomberg Radio Max.
Speaker 1: Thanks we The yen's rallying against the dollar this morning,
Speaker 1: and speculation is growing the Bank of Japan we'll move
Speaker 1: this month to raise interest rates for the first time
Speaker 1: since two thousand and seven. Looking at the yen, is
Speaker 1: it one forty seven point ninety five against the dollar?
Speaker 3: And staying in Asia care and China's exports grew much
Speaker 3: faster than expected in the first two months of this year.
Speaker 3: Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong.
Speaker 8: It's an encouraging sign of demand in the Chinese economy.
Speaker 8: Exports rose seven point one percent from a year earlier.
Speaker 8: That was well above the one point nine percent forecast.
Speaker 8: Imports grew three point five percent. China's trade has been
Speaker 8: under pressure over the past yere Demand from major trading
Speaker 8: partners has been tempered, and geopolitical tensions have weighed on
Speaker 8: China's ability to mount a turnaround. Keep in mind, trade
Speaker 8: in the first two months of the year is typically
Speaker 8: somewhat distorted by the Lunar New Year holiday in Hong Kong.
Speaker 8: Brian Curtis, Bloomberg Radio.
Speaker 1: All right, Brian, thanks well. China's foreign minister is blasting
Speaker 1: the US. SAT a press briefing in Beijing this morning,
Speaker 1: Wangyee criticized the US for imposing a quote bewildering level
Speaker 1: of trade curbs on the Asian nation. The top diplomat's
Speaker 1: comments come as the Biden administration is pressing allies to
Speaker 1: further titan restrictions on China's access to semikintor technology.
Speaker 3: Checking some company news this morning, Karen, We're watching shares
Speaker 3: of New York Community Bank Corp. They are hired by
Speaker 3: nearly three percent after rising seven percent in yesterday session.
Speaker 3: The games came after the struggling real estate lender received
Speaker 3: an equity investment of more than a billion dollars from investors,
Speaker 3: including former Treasury Secretary Stephen Minushit.
Speaker 2: New York Community Bank Corps.
Speaker 3: Shares have lost almost two thirds of their value this
Speaker 3: year after the bank slashed it's dividend and set aside
Speaker 3: more provisions than expected for loan losses.
Speaker 9: Well.
Speaker 1: A couple of chipmakers also in focus this morning. Nathan Congressional,
Speaker 1: I'd say the US government is poised to invest three
Speaker 1: and a half billion dollars in Intel so we can
Speaker 1: produce advanced semiconductors for military and intelligence programs. The money
Speaker 1: is talked into a fast moving spending bill the House
Speaker 1: passed yesterday who would establish Intel as a dominant domestic
Speaker 1: player in the lucrative defense market.
Speaker 3: Well, while in Nvidia's shares have been on the rise, Karen,
Speaker 3: it's a different story at Victoria's Secret That stock is
Speaker 3: down thirty percent.
Speaker 2: This morning.
Speaker 3: The lingerie maker's full year forecast for adjusted operating income
Speaker 3: trilled even the lowest estimate. I'm an analyst tracked by Bloomberg.
Speaker 3: Time now to take a look at some of the
Speaker 3: other stories making news in New York and around the
Speaker 3: world with Bloomberg's Michael bar Go Morny, Michael.
Speaker 10: Good morning, Nathan. The US military says a missile attack
Speaker 10: by Yemen's Huthy rebels on a Liberian owned commercial ship
Speaker 10: in the Gulf of Aden has healed three crew members
Speaker 10: and injured at least four. It was the first fatal
Speaker 10: attack in a campaign of assaults by the Iranian back group.
Speaker 10: White House spokesperson Kareem Jean Pierre.
Speaker 11: These reckless attacks by the Iran backed Huthis have not
Speaker 11: only disrupted global trade and commerce, but also taking the
Speaker 11: lives of international seafarers simply doing their jobs.
Speaker 10: US Central Command says the missile caused significant damage to
Speaker 10: the carrier and the crew had to abandon the ship.
Speaker 10: Yemen's Houthi rebels claimed the attack on the vessel and
Speaker 10: insisted their assaults would continue as long as Israel's warn
Speaker 10: of moss in the Gaza Strip continues. New York Governor
Speaker 10: Kathy Hokel says the number of law enforcement and National
Speaker 10: Guard to be sent to the subway system is nearly
Speaker 10: one thousand. Bloomberg's head Maxter as the story.
Speaker 12: The National Guard will be tasked with making sure bags
Speaker 12: are checked.
Speaker 13: Anyone looking to do harm or spread fear on our subways,
Speaker 13: you will be caught, plain and simple. There will be consequences.
Speaker 13: This has to end. New Yorkers deserve no less.
Speaker 12: This comes the wake of some high profile crimes like
Speaker 12: the slashing of a subway conductor and passengers being shoved
Speaker 12: onto tracks. Hockel says, deployment to the busiest stations ed
Speaker 12: Baxter Bloomberg.
Speaker 10: Radio opening statements in the trial of James Crumley, the
Speaker 10: father of school Michigan shooter Ethan Crumbley, are sent to
Speaker 10: get underway this morning. Jerry's selection wrapped up yesterday with
Speaker 10: a panel of nine women and six men. Prosecutors have
Speaker 10: charged James Rumbley with involuntary manslaughter, stemming from the twenty
Speaker 10: to twenty one shooting at Oxford High School that his
Speaker 10: son Ethan Crumbley committed. Prosecutors charged Crumbley for allegedly making
Speaker 10: the weapon used in the shooting available to his son
Speaker 10: and failing to get him mental health care. Crumbley's wife, Jennifer,
Speaker 10: was found guilty of involuntary manslaughter last month. In the
Speaker 10: Rust movie set shooting trial, a jury in New Mexico
Speaker 10: reached a verdict for armorer Hannah Gutierres to.
Speaker 14: Find the defendant Andigotiers guilty of the voluntary manslaughter as
Speaker 14: Church should count one. We find the dependent Andigotiers not
Speaker 14: guilty Putambar revenants, Church should County.
Speaker 10: The trial was about whether Gutierra's bared responsibility for the
Speaker 10: accidental shooting death of cinematographer Helena Hutchems. Gutierrez was in
Speaker 10: charge of all the weapons, including the ammunition. Prosecutors argued
Speaker 10: throughout the case that Gutierras consistently failed to perform the
Speaker 10: very basic and critical weapons safety checks. Global News twenty
Speaker 10: four hours and whenever you want it with the Bloomberg News. Now,
Speaker 10: I'm Michael Barr, and this is Bloomberg. Nathan.
Speaker 3: Okay, Michael, thanks time now for the Bloomberg Sports Update,
Speaker 3: brought to you by Trice Date. Out of here's John Stashauer.
Speaker 2: Thanks Nathan. It's March.
Speaker 15: The madness of college basketball's postseason is coming. Conference tournaments
Speaker 15: next week and then the NC Double A's. It was
Speaker 15: won last year by Yukon, Huskies are favored to do
Speaker 15: it again. No teams went back to back since Florida
Speaker 15: in two thousand and six and seven. Yukon twenty seven
Speaker 15: and three just beat eighth ranked Marquettes seventy four to
Speaker 15: sixty seven. Golden Eagles were without a couple of the starters. Also,
Speaker 15: the Big East Seaton Hall able to beat in Villanova
Speaker 15: sixty six fifty six. The Pirates had lost eight in
Speaker 15: a row to the Wildcats. Both teams said to be
Speaker 15: on the bubble for making it into the nc Double
Speaker 15: A's Houston rank number one. The Cougars won to go
Speaker 15: to twenty seven and three. Tennessee is ranked fourth. The
Speaker 15: Balls had a road win at South Carolina Fairly. Dickinson
Speaker 15: not only went to the NCAA Tournament last year, but
Speaker 15: won a game as a sixteen seed a year after
Speaker 15: a win over Purdue, lost by nineteen till Lemoyne in
Speaker 15: the Northeast Conference Attorney that ends FDU's season. NBA Warriors
Speaker 15: beat the Bucks by thirty five. Oklahoma City got thirty
Speaker 15: seven points from Shay gilds As Alexander and winn A
Speaker 15: fort and that gets the Thunder tied for first in
Speaker 15: the West. Clippers two and a half out they wanted uston.
Speaker 15: The Lakers lost to Sacramento. Lebron James limped off the
Speaker 15: court late in the game with an injured ankle. NHL
Speaker 15: trade deadline is tomorrow. The Rangers just added a player.
Speaker 15: They sent two draft picks to Seattle for twenty nine
Speaker 15: year old Alex Wenberg, expected to center the Rangers third
Speaker 15: line and help to kill penalties. Vladimir Tarasenko, who the
Speaker 15: Rangers added a year ago, then signed with Ottawa, traded
Speaker 15: by the Senators to the Florida Panthers, the team at
Speaker 15: the NHL's best record. Aaron Rodgers asked which free agents
Speaker 15: the Jets should keep. Suggested Greg Zerlin and Thomas Morstead,
Speaker 15: the kicker and the punter thirty six and thirty eight
Speaker 15: years old, both did have strong seasons.
Speaker 2: John Stashemward Bloomberg Sports David all right, John, thank you.
Speaker 3: Want to go right back now to the nation's Capitol,
Speaker 3: where President Biden is getting ready to deliver his third
Speaker 3: State of the Union address and lay out a vision
Speaker 3: for a second term he hopes to achieve in just
Speaker 3: about eight months time. Joining us now is Terry Haynes,
Speaker 3: the founder of Pangea Policy. Terry, it feels like a
Speaker 3: lot of expectations are writing on this speech tonight. What
Speaker 3: do markets need to look for from what the President
Speaker 3: has to say this evening.
Speaker 9: Well, fundamentally, what markets need to look for is a
Speaker 9: good to excellent performance by Biden or not really, you know,
Speaker 9: for a fundamental reason, even beyond the issues, market stability
Speaker 9: depends on the United States government stability to a degree
Speaker 9: I think markets haven't thought about in quite some time.
Speaker 9: So if Biden's performance is anything less than excellent, the
Speaker 9: net effect is going to be it's going to show
Speaker 9: wobbliness in the United States government at a time when
Speaker 9: the combined geopolitical risk and US political risk is at
Speaker 9: the highest levels in fifty years. So you know, that's
Speaker 9: a big problem. Even the pull of the immediate political
Speaker 9: consequences of a bad Biden performance aside, A lot.
Speaker 3: Of that is wrapped into politics as well, isn't it
Speaker 3: When you have a number of voters, a large majority
Speaker 3: of voters in polls including the Bloomberg News Morning Consulted
Speaker 3: Swing State Pole pointing to the president's age as a
Speaker 3: major concern.
Speaker 9: Well, sure, you know the this is trending into the
Speaker 9: realm of They're really obvious now. But you know, just
Speaker 9: about any other year, you and I would be having
Speaker 9: a conversation about how, say of the Union addresses really
Speaker 9: don't mean very much, and you know the things the
Speaker 9: laundry list won't be accomplished, and you know, so on
Speaker 9: and so forth. This year, it's all about the immediate
Speaker 9: Biden performance and his ability to counter exactly those kinds
Speaker 9: of cognitive issues which have become embedded in his whole
Speaker 9: campaign narrative.
Speaker 3: One policy proposal that we found in the president's speech
Speaker 3: is that he's going to be calling for raising minimum
Speaker 3: tax rates for global corporations and major US corporations as well.
Speaker 3: Interesting timing to be talking about tax increases in the
Speaker 3: middle of an election season.
Speaker 9: Yeah, that's more than anything else, Democratic red meat for
Speaker 9: the base. I think if there was a year in
Speaker 9: which a Democratic president did not call on tax increases
Speaker 9: for corporations and the rich, that would be notable. As
Speaker 9: it is with a finally split Congress Democrat and Republican,
Speaker 9: and more importantly, a very finally split Congress in twenty
Speaker 9: twenty five, regardless of whether Biden gets reelected or not,
Speaker 9: that's very unlikely to happen, although it will be squarely
Speaker 9: in twenty twenty five. It will be squarely in front
Speaker 9: of the Congress because of the tax law that was
Speaker 9: passed in twenty seventeen having to be reconsidered.
Speaker 3: We're also hearing that the Biden campaign is going to
Speaker 3: be circulating memos during this speech using it to attack
Speaker 3: former President Trump's economic agenda, the idea being that going
Speaker 3: after the former president's actions while he was in office
Speaker 3: isn't really sticking with voters.
Speaker 2: Do you think this strategy will stick?
Speaker 9: No, I don't. I think it's firstly, I find it
Speaker 9: reactive and therefore, you know, unlikely to make much difference.
Speaker 9: You know, Biden's the president. The focus for the White
Speaker 9: House ought to be on not only what Biden has done,
Speaker 9: but on what the focus should be on what Biden
Speaker 9: continues to want to have happen going forward. They need
Speaker 9: more than ideas. They need a way to translate those
Speaker 9: ideas into everyday people's lives, and you know, going after
Speaker 9: Trump on this when they're at a hair trigger in
Speaker 9: the polls is probably not the way to do that.
Speaker 3: So in our last thirty seconds, Terry, are you expecting
Speaker 3: that we're going to hear like the usual laundry list
Speaker 3: of policy proposals or is it going to be more?
Speaker 2: Do you think about laying out a broader vision?
Speaker 9: It would be better for the White House if it
Speaker 9: was about laying out a broader vision and showing the
Speaker 9: president's energy and passion for that agenda. I fear that
Speaker 9: the laundry list is, in some ways what we're likely
Speaker 9: to get. This is so embedded in the state of
Speaker 9: the Union now, and so many interest groups expect, you know,
Speaker 9: they're part of the laundry list to be talked about that,
Speaker 9: you know. I fear that that's here to stay.
Speaker 16: This is Bloomberg day Break Today, your morning brief on
Speaker 16: the stories making news from Wall Street to Washington and beyond.
Speaker 1: Look for us on your podcast feed at six am
Speaker 1: Eastern each morning, on Apple, Spotify, and anywhere else you
Speaker 1: get your podcasts.
Speaker 16: You can also listen live each morning starting at five
Speaker 16: am Wall Street time on Bloomberg eleven three to oh
Speaker 16: in New York, Bloomberg ninety nine to one in Washington,
Speaker 16: Bloomberg one six to one in Boston, and Bloomberg nine
Speaker 16: sixty San Francisco.
Speaker 1: Our flagship New York station is also available on your
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 16: Plus listen coast to coast on the Bloomberg Business app.
Speaker 2: SERIUSXM.
Speaker 16: The iHeartRadio app and on Bloomberg dot Com.
Speaker 2: I'm Nathan Hager and.
Speaker 1: I'm Karen Moscow. Join us again tomorrow morning for all
Speaker 1: the news you need to start your day, right here
Speaker 1: on Bloomberg Daybreak