FED, Bill Dudley, Bloomberg discussed on Bloomberg Daybreak

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On Wall Street and we check the markets every 15 minutes throughout the trading day on Bloomberg ten year treasury also higher up to 30 seconds He had 1.44% Yield on the two year .64% nymex crude oil is up 1% or 72 cents at $71 59 cents a barrel At 1.2% is at 1785 80 announced the Euro 1.1314 against the dollar the yen at one 14.14 Nathan Karen we begin with the latest policy decision from the Federal Reserve a hawkish shift is underway to tackle the hottest inflation in a generation chair Jay Powell announced key changes to the Central Bank's asset purchase program and laid out a road map for three rate hikes next year We are facing out our purchases more rapidly because with elevated inflation pressures and a rapidly strengthening labor market the economy no longer needs increasing amounts of policy support Says the fed will end its bond buying program by mid march and could raise rates before the economy achieves full employment While Nathan reaction is pouring into the decision former New York fed president and Bloomberg economic senior adviser Bill Dudley calls the fed's outlook for inflation quote a magical forecast They have the unemployment rate below their estimate of what's consistent with full planner for three whole years and inflation just magically melts away back towards their 2% objective In 2024 the median estimate of inflation is 2.1% That's within a whisker of their target even though they actually haven't made monetary policy tight at any time over this period After yesterday's decision Bill Dudley thinks the fed could start raising rates as soon as March And now that we've heard from the fed Karen we get two more Central Bank decisions from across the pond at 7 a.m. it's the Bank of England followed by the European Central Bank at 7 45 a.m. Wall Street time Most economists predict the BOE will leave policy unchanged in the European Central Bank is expected to announce plans to end its pandemic related bond purchases Nathan financial markets appear to be reassured by the hawkish shift from the fed but Guggenheim chief investment officer Scott monitored warrants they're not priced for the worst case scenario Companies in the country and the amount of overleverage in companies that have weak balance sheets even modest increase in interest rates could be very damaging to them And then it's a domino effect The weak companies go first and then the other companies call out as the economy slows those companies cut back spending and reduce employment Guggenheim Scott miner says the fed is setting itself up for a recession as soon as 2023 Outside of inflation Karen we remain focused on the pandemic and the omicron variant this morning Bloomberg's Renee young joins us live with the very latest Good morning Good morning Nathan U.S. COVID cases are coming in around 120,000 a day They're nearly back to a level of not seen since September and the spread is even quicker in the UK where officials expect a surge in hospitalizations over the holidays That's where a study today is painting a bleak picture on long COVID It shows about 7 in ten people in the UK hospitalized with the virus still face fatigue muscle pain and breathing difficulties a year after being discharged Meantime there's another study out of South Africa and vaccines It says two doses of the Pfizer vaccine plus a previous COVID-19 infection may give stronger protection against the omicron variant That points to concerns that low hospitalizations and deaths in South Africa may be due to a high level of prior infections Life in New York I'm Renee young Bloomberg daybreak All right Renee thank you doctor Anthony Fauci is weighing it on vaccines and the omicron variant that chief White House medical adviser says existing shots should work well against the new strain I'll boost the vaccine regimens work against a crime At this point there is no need for a variant specific booster So far 240 million Americans have received at least one dose of a vaccine that's nearly 93% of the adult population On the corporate front this morning Karen apple is reacting to the surge in COVID cases the iPhone maker is now delaying its return to office plans indefinitely We get the details from Bloomberg's Charlie pellet There is now no firm deadline for a corporate return to the office Apple is facing a resurgence in COVID-19 cases along with a fast spreading new variant so it's delaying bringing back corporate staff It had planned to have them return by February 1st employees were informed of the move in a memo sent from CEO Tim Cook the lack of a firm date points to the struggle that companies are facing and trying to get their operations back to normal fellow tech giant Microsoft scrapped its return to work date in September In New York Charlie pellet Bloomberg daybreak Charlie thank you We have an upcoming Wall Street debuted to tell you about this morning Reddit has filed for an initial public offering The social media platform that helped fuel this year's meme stock frenzy said the number of shares and proposed price range have yet to be determined It was valued at $10 billion in a funding round this summer In Novartis is trading higher this morning Karen the Swiss drug maker plans to buy back as much as $15 billion of shares with proceeds from the sale of its stake in rochet and has Novartis shares up 4% And of us is cashing in this morning Nathan Bruce Springsteen has sold this master's and music publishing to Sony Music and Sony Music publishing for a combined total around $500 million That's according to billboard which cites unidentified sources Springsteen has reported We've been in talks with Sony about the sale since at least in November And futures this morning are on the rise S&P futures have 25 points Dow futures have 172 and NASDAQ futures up 100 Straight ahead your latest local headlines Plus a check of sports And this is Bloomberg In south 5 O 7 on Wall Street we're at 54° in Central Park already dealing with a 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