Michael Mckee, Ukraine, Bloomberg discussed on Bloomberg Daybreak Europe


Lean guerin's good morning And a good morning and thank you here in the UK the crisis engulfing Boris Johnson is escalating The findings of an investigation into social gatherings at Downing Street during lockdown are expected this week with reports that could be published as soon as today It is understood Sue grace inquiry has received photographs featuring Boris Johnson and others at parties next to wine bottles that release Scotland Yard has launched a place investigation a decision the prime minister is indeed welcoming conservative MP Simon hoe expressed his frustration on Bloomberg Westminster Well it's looking increasingly gloomy and increasing the difficult and I think anybody who either believes or things to the concrete is the leading themselves Meanwhile hall also said that among his constituents there is white hot anger There is bewilderment and there is huge disappointment Now when it comes to the latest in Ukraine president Joe Biden has indicated there is no plan to send U.S. troops into the country Bloomberg's Ed Baxter has more President Biden says he may move troops around and closer to Ukraine to be prepared for any eventuality but we have no intention of putting American forces on data forces in Ukraine But as I said they're going to be serious economic consequences if he moves Biden also says Russia he believes understands how much of an enormous deal this is globally and says if Russia invades he would favor personal sanctions on Vladimir Putin In San Francisco I'm at Baxter Bloomberg daybreak Europe Staying in the U.S. the Federal Reserve wraps up the year's first policy meeting Bloomberg's Michael McKee has the preview Beneficials aren't going to be raising the cost of borrowing at this meeting Instead they'll suggest interest rates will be going up soon Investors think that will be in March The fed's current target rate is essentially zero Policymakers will try to figure out how much it has to go up in order to bring inflation down to their 2% target for more than 5% today But don't expect them to publish a road map to how fast and how far rates will move and when and how and by how much the balance sheet will shrink Expect chair Jay Powell to say that with geopolitical tensions supply chain problems and the COVID virus ever present The fed will have to remain flexible deciding policy on a meeting by meeting basis Michael McKee Bloomberg daybreak Europe And in earnings news Microsoft's forecast for revenue in the current quarter was a relief to investors more from Bloomberg's Doug Krishna The company reported after the bell and the focus was on the Azure cloud computing business For the last quarter revenue at the unit decelerated from the two prior quarters and that weakened Microsoft shares in late trading but then on the call with analysts the company said the Azure sales growth rate would pick up in the current quarter excluding the impact of currency fluctuations shares then recovered Microsoft CEO Satya Nadella has turned the Azure business into a solid number two behind Amazon Alphabet's Google ranks third but it's adding resources to catch up In New York on Doug Kushner Bloomberg daybreak Europe Global news 24 hours a day on air and on Bloomberg quick take powered by more than 2700 journalists Santa analysts in more than 120 countries This is Bloomberg Anna Thank you very much Leanne Yeah really important The Microsoft numbers after hours in terms of sentiment for the tech sector So of course we've seen a lot of tech selling yesterday There was no different we were down by more than 2% on the NASDAQ That was in session of course the Microsoft numbers came after session and perhaps that has improved sentiment a little bit We see the NASDAQ futures up by 1% this morning So a lot of focus on the tech sector And of course the Microsoft numbers come ahead of other numbers for the sector So we are expecting to hear from Tesla in the likes of will have plenty more to talk about when it comes to technology as we go through as we go through the days ahead Now also in focus four markets of course is geopolitical tension We continue to watch what's happening there We'll bring you the latest on that We're watching what's happening with the ruble of course that's been a big focus for investors perhaps we've seen a little bit of a pause in the ruble selling as a result of some of the reporting that suggests that the swift payment system might not be in the mix when it comes to sanctions against Russia but we'll have to wait and see what those sanctions would look like if there were to be an invasion Now we want to focus a little more on things that are moving around in connection with geopolitics to one of Bloomberg's top interviews oil and gas flows aren't likely to be significantly impacted from the tensions building in Ukraine This is according to Goldman Sachs global head of commodities research Jeff curry tells moon by TV's cherry on and Paul Allen that the base case is no disruption Our base case is no disruption It's very unlikely If you think about there's two sources of a disruption sanctions or an accident I'm not going to try to forecast the next Ukraine or something like that But if we think about the sanction imposed disruption I like to call its mutually assured destruction It's not in the interest of any party to stop flows of energy through Ukraine or even into Western Europe Just given the fact that you're so dependent upon it and Russia is very dependent upon those sales And so when we think about you could get an upside here you know in terms of thinking about oil it's probably worth maybe $2 a barrel And on natural gas you know $4 in MMBTU But the other one to watch there is also great That's right So how do you see this unfolding for those energy starved countries especially in Europe Well you know if you did end up seeing some type of a significant disruption the market is extremely tight right now Inventories are low which means the market was very much exposed to even the smallest type of disruption because remember they're already as an energy crisis in Europe which is part of the reason why you would argue Putin is positioning himself over Ukraine in the current environment But even the oil market on a global basis inventories very low spare capacity being exhausted which also leaves the market very much exposed If I want to emphasize oils a little bit different you can redirect it here Probably the biggest impact on the oil will be freight and tankers If you did see a disruption because you just move that pipe get oil that was going to Europe into the Baltics or.

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