Bloomberg Daybreak: January 20, 2023

the ft X collapse. I'm a me Morris of federal court orders Donald Trump to pay a million dollars for a bogus lawsuit, and New York state revenue tops estimates by billions of dollars. I'm John Stash and sports. The net slump continued with the laws in Phoenix, the Rangers lost to the Bruins. The Devils and Islanders both lost

in overtime. That's all s traded ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world on Bloomberg Radio. Dot Com and via The Bloomberg Business. Good morning, I'm Nathan Hagar and I'm Cameron Moscow. Here are the stories we're following today. Let's start in Washington this morning, where a dispute could have market implications

over the next several months. The US has reached its debt ceiling and now the Treasury departments stepping into retirement funds to avoid a default. But those extraordinary measures, as they're called, will only last till June. Democratic Senator Joe Mansion is floating a compromise, raised the debt ceiling and vote to create bipartisan panels to study government spending. We're going to target basically the debt and increasing of the debt to how we can basically prevent that from continue

to increase as it does and start downward trend. And there has to be some discipline and there has to be some sacrifice. Senator Mansion spoke with Bloomberg's David Weston from the World Economic Forum in Davos, but his plan is unlikely to fly in a deeply divided Congress. That's according to Bloomberg Politics contributor Jeanie chan Zano, as whuch as I give him credit for trying to push forward the idea of a bipartisan anything that the reality is

tying together. The lifting or suspension of the debt ceiling with spending is a non starter. Jennie Chanzano spoke with our Washington corresponded Joe Matthew on Bloomberg Sound On. You can catch the show weekdays at five pm Eastern on Bloomberg Radio, and we'll have more of our interview with Senator Mansion from Davos coming up shortly on Bloomberg Daybreak. Well, Nathan returned to the markets. Now in US futures are

little change this Friday morning. We're closing out a week that saw the S and P five hundred fall for three straight sessions thanks to week economic data. Hank Smith, as chief investment officer at Haverford Trust, I think there is a chance that the gets lower low than the October two low, But our view is it's likely that we're going to have a recession, which equally as likely that it's going to be mild and brief. Trust Hank Smith says a key thing to watch today is the

mass expiration of options. It's said to be the biggest January event in a decade. Well, one bright spot in stocks this morning, Karen is Netflix. That company reported earnings late yesterday that outperformed estimates, and we get the latest Live with Bloomberg's John Tucker. Good morning, John, Good morning, ninth of the streaming giant, adding seven point seven million new subscribers in the fourth quarter that beat forecast. New

content brought in more viewers. The series Wednesday in Adam's Family Spent Off was the company's third most popular series ever. Well, the documentary Harry and Meghan was also a hit. Netflix also had its own drama in the boardroom, the co founder Read Hastings a stepping aside the CEO post now being filled by his two longtime associates, Ted Surrandos and Greg Peters. Shares are up over five percent pre market.

Last year, the company saw more than a third of its value wiped out after poor showing in the first quarter. Live in New York. I'm John Tucker, Bloomberg Daybreak. All right, John, thank you. Well. On the economic front, we are seeing more Fed officials call for high interest rate sense despite signs inflation is cooling. Here's Federal Reserve Bank of New York President John Williams some signs the inflations modtere. It remains far too high, and it is my number one

concern going into twine twine free. And that sentiment from John Williams was also echoed by the Vice Chair of the Federal Reserve, Lyle brainerd. Inflation has declined in recent months, but inflation is very high and it's going to take time and resolve to get it back. And Vice Chair Lyle brainer did not explicitly state a preference for the size of the Fed's next rate. High traders are currently pricing in a quarter point increase, the lowest yet in

the central banks current hiking cycle. We're wrapping up the final day of the World Economic Forum today, Karen, and one message is becoming clear. At Davos. Finance executives say they now see reasons to be upbeat. We caught up with Bank of America CEO Brian moynihan in the US research team, which is the best in the business, as a mild recession predicted sort of mid this year. In next year, they pushed that out, and so why they keep pushing out It's the strength of the US consumer.

They have the FED getting over five five five and a quarter. Just this week, they moved at to three bases point great rise as opposed to fifty. Bank of America's CEO Brian moynihan spoke with Bloomberg's David Weston in Davos. He joins Morgan Stanley's James Gorman and City Groups Jane Frasier with signs of conscious optimism. Well. Speaking of Wall Street's CEO, S Nathan JP, Morgan Chase is out with fresh details on Jamie Diamond's pay. The bank is keeping

the CEO's total compensation unchanged. He'll get thirty four and a half million for his work in two. It's a year where the firm's profit fell by almost a quarter. In JP Morgan Stock notched its worst annual performance in more than a decade. Let's turn to crypto now, Karen and another firm in the space filing for bankruptcy. It's the latest fallout from the collapse of f t X Bloomberg. Steve Rappaport joins US Live with the details. Good morning,

see Good Morning, Nathan and Karen. Genesis Global goes broke, filing for Chapter eleven protection to keep running while the crypto lender works to repay creditors. Genesis, in a statement, says creditors will end up owning the reorganized business if it fails to sell assets or raise money. The company has one fifty million dollars to fund itself in bankruptcy. Back in November, Genesis warned potential investors it was running dry after ft X went under and halted customer withdrawals

to stay afloat. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. It is forty degrees in Central Park. Clouds breeze today, maybe a lingering shower. We'll get into the upper forties. It'll turn partly cloudy tonight with a lone near thirty five. Time now to take a look at some of the other stories making news in New York and around the world. Good morning, Amy Morris, Good morning,

Nathan Hagar. A federal judge has ruled Donald Trump has to pay nearly a billion dollars for filing a bogus lawsuit. The judge says the suit against Hillary Clinton and dozens of the former presidents perceived political enemies was quote brought in bad faith for an improper purpose. The New York Times report The ruling was the latest setback for Trump, who also faces a broad range of legal problems and criminal investigations, and his lawyers are increasingly under scrutiny themselves

for their actions in those cases. New York State has collected seven point seven billion dollars more in taxes in the first nine months of the fiscal year than forecast. State Comptroller Thomas Dinnapoli says much of that was from personal income tax collections and that the tax collections are exceeding expectations, but that concerns of an economic downturn create uncertainty. A slowdown on Wall Street, lower banker bonuses, and a

potential recession could up end the state's finances. New York Governor Kathy Hokel wants to bring one Buffalo Bill's player to New York City. The governor was at an event in East Harlem when she talked with Damar Hamlin. She says he wants to use the gift of his story to inspire others, and I said, you can be a great voice to join with me and letting you know people know that through sports or music, can culture and dance. At places like this, they can have a better outcome,

so so I'm going to get him up here. Don't know when Hamlin suffered cardiac arrest on the field during a primetime game between the Bills and the Cincinnati Bengals. He tweeted later that he is excited to see how their future collaborations will help Nasall County officials are pen pointing the source of an increase in overdoses over the past week. Police and health officials say many of the recent overdoses are linked to counterfeit prescription pills or presses.

The pills that are being circulated may contain fentonil and could be deadly. Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty journalists and analysts and more than one twenty countries. I'm maybe Morris, this is Bloomberg. Nathan all right, Amy, thank you time now for our Bloomberg Sports update, brought to you by try Stay Dutie for that and bring

in John stash Our all Nathan, thanks. The Giants either today hit the Turnpike heading South playoff game tomorrow night with their division Riyals. Giants have lost their last nine games that they have played in Philadelphia. The Giants quarterback is Daniel Jones. Game is different. You know, I think UH will approach this um like we would any other game. But but they're good, good team. It's a good environment. Uh. They bring a lot of energy. Fans are passionate UM.

But like any road game, will prepare for that and be able to uh, you know, handle that UM as part of the game. The Eagles, top seeds in the NFC, beat the Giants twice this year. They had a by last week's fifth ever playoff game between the two teams, and they both won twice. Sunday in the NFC, it's Dallas at San Francisco. Will see how Brett Maher kicks for the Cowboys coming off four missed extra points. The Cowboys did sign another kicker, but they say Maher made

all his kicks yesterday in practice. A blow to the next center Mitchell Robinson, key player with his defense and rebound. He's got a broken thumb, likely to miss a month. Nick's played tonight in Atlanta. The networ in Phoenix. The Sun's let by twenty and the third quarter then held on one seventeen to one twelve, and the Nets are owing four since the Kevin Duran injury at the Garden, Rangers didn't score until late They lost to the Bruins, of the best record in the NHL, three to one.

Devil's lost in overtime at Seattle for three in the Islanders a three two overtime lost in Buffalo as the Sabers scored twelve seconds into ot College hoops. The Rutgers lost at Michigan State seventy to fifty seven. The x Yankee closed our oldest Chapman signed with Kansas City Coco Golf into the third round our fourth round at the

Australian Open. On Jabber, second seed on the women's side, lost her match John Stashward Bloomberg Sports live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius x AMP, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager, and we want to take you back to Davos now to bring you our interview with Senator

Joe o Manship, the Democrat from West Virginia. He spoke with Bloomberg's David weston about his call for a bipartisan solution to avert a government default that threatens to jolt global markets. Man should also addressed questions about his plans for re election next year. Let's listen into that conversation. Now, we will pay our debts. We always have, We always will. How mess is going to get getting from point A

to point B, we don't know yet. But I'd like to see really truly a coalition of a bipartisan bicameral Democrats and Republicans putting a group together that says we're gonna look at all the trust funds to find out the deficiencies when they're going to be insolvent and what we can do to prevent that, and then basically have a piece of legislation that we're saying, Okay, we will make this deal, will raise the debt setting if you allow us to have give the American public a look

at what we're dealing with and recommendations will make and have a vote on the floor whether it goes up or not. But at least it identifies it's serious. And the same thing with the thirty one plus trillion dollars of debt. So that sounds a little bit like some commissions we've seen in the past, like base closings and on Social Security. Where are you on that? Are you starting to put that together the prospect. I'm just strolling it out to make people. My dear friend Mitt Romney

has been working on the Trust Act. I joined him on that. I think it's it's tremendous to identify that we've got social Security and Medicare, we got the Highway trust. He's been very good leading that, And we talked about remember the old uh the bowls Simpson, let's look at a hybrid of something that we're gonna have to agree that we have a tremendous amount of debt that we're writing checks our kids can't cash. So if you want to have concerns about should we or should we not,

absolutely we should. We should pay our debts. Should we allow him to grow disproportionately to where we have more trouble every year? Coming to that conclusion to pay the debts when we could have done something Kevin McCarthy is a wonderful opportunity for him to say, listen, let's act like adults. We've got a debt. Whose foot fault? We're all at fault. How do we fix it together and move forward? Well, that sounds like eminently good sense to me.

Do you have time because we've heard from Janiellary already she's taking extraordinary measures. There's a speculation about June July we're gonna actually run out of the money. Do you have time to get all that accomplisutions described before. We're not talking about bills. We're talking about basically a framework to bring a bill to the floor within a ninety day period. If we agree, yes, we're gonna do. Target that we're talking of the trust. Make sure that we

know what we're dealing with. We're gonna target basically the debt and increasing of the debt to how we can basically prevent that from continue to increase as it does and started downward trend. And there has to be some discipline and there has to be some sacrifice. What about strings attached to an increase in the debt? Selling along lines you're saying, say that we don't have time to get all the work done, get all the approvals through, but we want a commitment that we're going to go

on the path you're describing right now. If you were increased, if you come here and says we're gonna cut military, We're gonna cut the Social Security in and all the different safety things. You have to have your military for the defense. We have an a geo political unrest. You're not going to leave senior citizens who have worked and paid into it stranded. So quick talking and scaring them Jesus out of people. Find a path that works, and you can't do it, just okay, here's we gotta do.

If you do this, then I'll vote for If you don't do this, I'm gonna vote against it. I'm not going to hold hostage. I want to get a reasonable approach to find something that has long lasting and has results, long lasting results. What about the White House? What the present? But saying we're not gonna even negotiate, I'm not sure how that works right now. What he's saying on negotiation, he don't he's not. I don't blame it. Don't be

held hostage. They shouldn't be held hostage. You can't help You can't hold the good faith of the greatest economy in the world hostage by saying we're gonna destroy your credit ratings. But the rest of the world and how they think about our country, how they investor buy our bonds and and and things of that sort, that that's something that can happen. It was done in two thousand eleven,

two thou thirteen, it didn't work out. Well, why would they try to get But there's an awful lot of leverage to do something very very constructive that will be productive. There are others that are willing to join. I think there is, I there's there's there's a growing amount of people that would like to say, Okay, how do we fix this. I don't know until I get Democrats and Republicans who are like mine that put the country before

the party. But if you're just thinking, well let me see if we don't fix this, I can blame you for that. And if you're a d or and are, you're blaming one side or the other. So you're not looking for solutions. You're looking at basically create more chaos within the political and that's not what we need right now. And I'm hoping that Kevin I'm I didn't tell Kevin McArthur right now, whatever I can do to help you and work with you, I want you to succeed election.

You get the wild one Democrat. I really haven't made that decision. I really haven't. I'm I'm so engaged basically in trying to bring this country together, to unite the country to where people aren't afraid to say, hey day, that makes sense. I'm gonna work with you on that. It might be a the opposite party. They're almost afraid to have a conversation. It used to be it used to be guilt by by association. Now it's guilt by conversation. That's awful. So we've got it. We've got to bring

this back. This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts. You can also listen live each morning starting at five am Wall Street Time on Bloomberg eleven three oh in New York, Bloomberg in Washington, Bloomberg one oh six one in Boston, and Bloomberg nine

six in San Francisco. Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa play Bloomberg eleven plus listen coast to coast on the Bloomberg Business app, Serius XM Channel one nine, the I Heart Radio app, and on Bloomberg dot Com. I'm Nathan Hager and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak