Good morning. I'm Brian Curtis and I'm Doug Prisner. Here are the stories we're following today.
Donald Trump leads the polls as we head into the Iowa caucus. Let's get more from Dan Schwartzman in New York. Dan Hey, Brian.
According to an NBC News Des Moines Registry poll, Republican presidential front runner Donald Trump does lead Nikki Haley handily heading into Iowa caucus's Monday. The poll shows Trump with forty eight percent support, Haley sitting at twenty percent. Haley, taking part in a telephone town hall, says Trump isn't the right choice.
We can't be a country in disarray and a world on fire and go through four more years of chaos.
We won't survive it.
And I think a lot of that is how we communicates and what happened.
It just sets us all in disarray. Haley was taking part in the telephone town hall after her event was canceled due to the weather. Coming in third place in that poll Florida Governor Ron DeSantis at just sixteen percent. While Trump does hold a commanding lead, Support for the former president has softened slightly from fifty one percent into the last poll, which is taken back in December. Meanwhile, Iowa Governor Kim Reynolds endorsed Desantus in the Republican presidential primary.
She recently sat down with Bloomberg's Sleigh Up Moss on the inaugural episode of The Big Take DC podcast. Reynolds doesn't think Trump has a nomination locked up.
I don't believe the polls. The same polls told us in this last election we were going to have a red tsunami across the country, and that didn't happen. It did in Iowa, it did in Florida because we did what we said we were going to do and past policies that impact the people that we serve, but it wasn't the case across the country.
Here more of our interview with Iowa Governor Kim Reynolds on The Big Take DC podcast, and tune in tomorrow for a special edition of Balance of Power at five pm Eastern Time, followed by live coverage of the Iowa CAUCUSUS at eight on Bloomberg Radio and television. The US has been hit with frigid weather that sent temperatures plummeting to minus five degrees in parts of the Midwest, while potentially dumping up to two feet of snow in western
New York. In Iowa, wear that twenty twenty four Republican present cycle gets under way Monday evening, the National Weather Service issuing an advisory for quote life threatening windshills through noon Central Time on Tuesday. According to flight Aware, over thirteen hundred flights in and out of the country were
canceled due to weather. With the possibility of a government shutdown occurring January twentieth, Congressional leaders working on a renewed stopgap funding bill to keep the government funded into March. An extension plan seems to be a solution, as two staggered deadlines approach for the twelve annual government funding bills are needed to be passed by January nineteenth. Remaining eight
have to be passed by February second. House and Senate leaders working to continue funding at existing levels until March first for the first four and March eighth for remaining eight. While Democratic Senate Majority Leader Chuck Schumer has begun procedural steps toward a stopgap bill, Republican House Majority Leader Mike
Johnson has yet to commit to one. Republican Ohio Representative Jim Jordan says he wants a longer stopgap spending bill passed April, and he also says Speaker Johnson will be rejecting the border compromise. Global News twenty four hours a day and whenever you want it with Bloomberg News. Now, I'm Dan Schwartzman, and this is Bloomberg.
This is Bloomberg Daybreak Asia, Brian Curtis and Doug Krisner, and we will joined by Vonnie Quinn a little bit later. Now it's time for the top business and political stories of the hour. China is warning the United States not to interfere in Taiwan's affairs. That's after a US friendly candidate, Leijing Da won Taiwan's presidential election on Saturday. Lie signaled that he would cooperate with China moving forward, but it's unlikely that the party, the DPP, would be able to
restart talks with Beijing. The Communist Party demands agreement that Taiwan is part of China as a prerequisite for any such dialogue. Talks between China and Taiwan have been suspended over the past eight years. Kerry Brown is professor of Chinese Studies at King's College, London. He thinks there's still some room for a relationship moving forward.
Taiwan has for forty five percent of its trade with China solone, there's got to be some relationship, even if it's not a particularly friendly one.
Kerry Brown Beijing said that the election result will not change Taiwan's status, and after Li's victory, President Biden repeated that the US does not support independence for Taiwan, and coming up in a few moments, we will be talking with Ivy Quak, who is a China fellow at the International Crisis Group for more on the Taiwan elections.
Well.
Financial markets may respond positively to those election results for Taiwan, although as Brian pointed out, that could change if China were to respond more aggressively. Bloomberg, David and Glass has more from Hong Kong.
Local stocks, and the Taiwan dollar had already priced in a presidential victory for the DPP and the loss of its majority in the legislature. Experts now say that may lead to a more centrist orientation of policies in Taiwan, and that might provide a positive impact to financial markets. Traders will also be watched Beijing. So far, China's reaction has been relatively mild. It said only that the results
do not represent mainstream public opinion on the island. The Taiwan dollar is expected to remain steady as it's driven more by export trends, the tech outlook and FED policy in the US. In Hong Kong, I'm David Ingless Bloomberg Radio.
China's financial market regulator says, you will adopt a zero tolerance policy toward illegal behavior. Bloomberg's Juan Wong has the story from Hong Kong.
China's regulators said it would make sure those who commit crimes pay a painful price. The National Financial Regulator Administration said it would consider revising punishment rules. Authorities also said that with strengthen communication and coordination with China's judicial organizations, the enhanced scrutiny is part of a deepening crackdown that spans finance to health. On Friday, the PBOC also pledged
to enhance its market oversight via stronger punishments. Moose or online with President Chijin Pink's vow to eradicate corruption in Hong Kong and joined Wong Bloomberg Radio.
The US economy could soon get another massive cash infusion. Congressional negotiators are currently talking about renewing business tax breaks and boosting the child tax credit, and if a deal manages to pass a deeply divided Congress, the American economy could see a fiscal boost worth at least seventy billion
dollars now. Needless to say, the extra cash could boost consumer spending, but some economist are saying it could also trigger another round of inflation, and obviously that could make the Fed's job a little more difficult right.
Well, to some corporate news now, Doug, we're hearing at Apple is shutting down its artificial intelligence team of more than one hundred people in San Diego. That story from Bloomberg's Denise Pelgrini.
Sources say the data operations annotations unit is suddenly being told it's merging with similar operations in Austin, Texas, and San Diego. Workers are being told they'll be fired if they don't agree to the move. The group also has offices in China, India, Ireland, and Spain. It's responsible for evaluating if Siri hears and responds correctly in various languages. Apple says everyone on the San Diego team is being offered jobs in Texas. Apple stock has been faltering lately.
A Microsoft overtook Apple Friday is the world's most valuable company. Concerned about Apple's iPhone business in China has been weighing on the stock. Denise Pelgrit Bloomberg Radio.
This is Bloomberg Daybreak Asia. Brian Curtis and Vonnie Quinn joins us now from New York. Our guest is Ivy Quek, who is China Fellow at the International Crisis Group, to take a closer look at the election. So so many angles here, Ivy to talk about it will set aside the geopolitics for the moment and just say that for this moment the status quo has been maintained, but there
will be some differences with William Lai's victory here. I'm curious how you see the Lie administration differing from perhaps signing ones.
Well, the president elect. Lie has vowed to preserve President's high legacy, so I would say that we will expect to see some continuity in terms of their approach when it comes to cross right relations as well as our
relations with the United States. I think what differs between UH the new president and President's hie is that he has not yet uh built uh the trust uh specifically for himself, uh unlike our president HIE has that has proven himself to be a very steady hand and also practice a very moderate policy when it comes to uh these uh diplomatic issues. So I think that that is something that President elect Lie I would have to uh will have the established really soon as he takes office.
What about the idea that the mandate might have been like a little bit that there was just forty percent of the people that voted, and that there's also now a difference between who's running the country and who's running parliament i e. Coalition.
Yeah, So I think the election result is quite in line with what the posts said before this, and it's quite expected. So he did not get a majority, it's only forty percent, but given that it was a tree colin of flight, I would say that this is still
quite a solid result. That DPP has received a pretty good support and going forward, as you said that the DPP does not also control the majority at the legislative wiand it means that there might have to be more consultations between the parties that might be more negotiations, and it is true that the president might see his power relatively uh restrained, But I would say that, uh, all three parties do have some level of consensus when it comes to key issues such as uh, uh you know,
maintaining a good ties with the US, so I would say, and also strengthening the defense capability of Taiwan. So I would say that we shouldn't we shouldn't see to to too much of a difficulty in maintaining some of these policies. Obviously you're see more politic theatrics, but I guess, uh, you know, in every democracy, Uh, these check out balances are sometimes also always also a good thing.
I want to get to the China response, but I I think I need to follow up. I think a lot of Going long supporters are quite frustrated here. Even though you say that you know the result was a pretty solid result for the d p P. You have to almost go back to the year two thousand when James Song ran that you you had this begin to happen, where the opposition to the d p P is divided like this, Uh do you expect that to continue? What do you think the next time around?
Uh?
The opposition will be able to somehow form a coalition.
I think this time around, we definitely see a lot of this satisfaction, a lot of uh discontent towards the DPP that is now being viewed as an establishment. So a lot of these protest vote have either gone to the K and T or the TPP, especially the TPP for UH, who has gotten a lot of formerly DPP votes. So I would say that it really depends on how well President might like and really uh improve its policy,
especially it's domestic agenda to win these votes. Otherwise, I think that we might continue to see uh the opposition uh you know, being able to uh uh uh you know, based on these issues, will be able to get more support. As to whether the opposition can actually unite as one,
I think that that remains to be seen. I think really depends on how well they can work together this time around, and especially for TPP, what kind of role, what kind of response that they're going to take, because at this moment it is still unclear whether they will work with the county or they could possibly also be working with the BPD government more closely.
I know Ryan wants to ask about the China response, So let's do that now in case we run out of time. What kind of reaction did you have when you saw the statement compared to the statement four years ago?
I would say that, yeah, it is a relatively bound statement. I think that perhaps Beijing have also expected this result, and the fact that the fact that they did not win the majority UH the legislative and also you know, maybe UH reduced some of Beijing's anxieties in terms of UH UH the the influence of d p P. But I also I think essentially UH, Beijing wants to keep
things under control. It does not want UH the tensions to UH over over over blown because I think that stability is what Beijing is looking for right now in terms of its relations with What's interesting process.
What's interesting is that even with that mild response from China, we we also saw a pretty mild response from la Ching the I mean, he did not really get up and beat the chest, did he. How do you interpret the comments that he made after the victory.
Yeah, I think that maintaining a state school is really the prefer way forward for the Taiwanese populations. So UH, I think that UH there is UH this understanding UH that going forward there needs to be more uh you know, more moderation, and uh there needs to be that, uh that both parties need to fight, both sides need to find a way to resume dialogues because uh it is not sustainable for for both sides to to continue.
Uh.
These are very tense relations where there's almost known dialogues have happened in the past eight years. So uh I think that for the next new government, Uh, there needs to be also more effort to seek a nature understanding with Beijing so that uh, you know, the crustrated dialogue can resume.
This is Bloomberg Gay breaks your morning brief on the stories making news from Hong Kong to Singapore and Wall Street.
Look for us on your podcast feed every day, on Apple, Spotify, and anywhere else you get your podcast.
You can also listen live each day on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg one oh sixty one in Boston, and Bloomberg nine sixty in San Francisco.
Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Plus listen coast to coast on the Bloomberg Business app, SiriusXM, the iHeartRadio app, and on Bloomberg dot Com.
I'm Brian Curtis and I'm Doug Chrisner. Join us again tomorrow for all the news you need to start your day right here on Bloomberg day Break Asia