Bloomberg Daybreak: January 24, 2023

of New Yorkers one in battle. Republican Congressman Santos to resign. I'm Michael barn Moore a hand. I'm John stash Our in sports arranger went over Florida. The Islanders lost in Toronto and they're playing the quarter finals at the Australian Open.

That's All's trended ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine team and around the world on Bloomberg Radio dot Com and via The Bloomberg Business. Good morning, I'm Nathan Hagar, and I'm kerin Moscow. Here are the stories we're following today. We begin with a

looming government lawsuit against Google. We get the latest live now with Bloomberg Steve Rappaport, Steve, good morning, Good morning, Nathan and Karen. The Justice Department is poised to sue Google for antitrust violations, alleging the tech giant unfairly dominates the digital ad market. Google has argued competition and online ads is quite healthy, noting its rivals include other power

players like Amazon, Meta and Microsoft Alphabet's. Google is number one in the US digital ad market, controlling technology used to buy, sell, and service online ads. The company is projected to bring in nearly seventy billion dollars in US online advertising revenue this year. Live in New York, I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you. I'll staying in Washington. Now. US China relations are in focus today.

The Biden administration has confronted Beijing with evidence sets a j ties to Russia and support for Russia's war effort in Ukraine. Details now from Bloomberg's Amy Morris in osroom in Washington. Sources tell Bloomberg News that the U s suspects some Chinese state owned companies maybe providing assistance for Russia's war effort in Ukraine. The administration is reviewing the evidence it's accumulated to determine its significance. No word on

what that evidence is. If the Biden administration finds that Chinese companies are supporting the invasion and that China's government knew about it or somehow involved, they would be forced to decide how much to push back, and that could risk opening a whole new area of dispute with China in Washington. I'm Amy Morris, Bloomberg Daybreak. Thank you, Amy. Let's turn back to these markets now, where we continue to see a bullish start to the NASTAC one hundreds

coming off its best two day runs since November. It gained two percent yesterday and the SMP five hundred is up twelve percent from its October low. Still, Mike List, senior portfolio manager at American Century invest San, says it

is a confusing time for investors. You've got lots of poses, like like a strong job market, consumers still spending of China's opening, and inflation slowing, but the negatives are race may have to stay elevated for a while, housing to drag miser contracting um, and you have elevated you political concerns. So it is very confusing out there. Lots of cross currents right now. Mike Liss with American Century Investments likes banks.

He says he is overweight in the sector. Well, Nathan, Corporate earnings could be a determining factor to whether this rally has legs. And this afternoon we hear from tech heavyweight Microsoft and Bloomberg. Jeff Bellinger has a preview. Bloomberg Intelligence says the software giants quarterly results could reflect continued

pressure on Windows and cloud products. Windows demand may have softened because of weaker PC sales, and the rate of growth for products from Azure two Dynamics three likely slowed. But with Microsoft and other technology companies that have yet to report, investors will be all ears when executives talk about the outlook. Guidance from the sector could offer clues to how long the pressure on earnings might last. Jeff Bullinger, Bloomberg Daybreak. Okay, Jeff, thanks, We're seeing more job cuts

across corporate America. This morning, we get the latest on that live with Bloomberg's Dan Schwartzman. Good morning, Dan, Good morning Nathan and Karen. Bloomberg News learning that Gemini, the firm led by the Winklevoss twins, will lay off ten percent of its staff. It's the third round of job

cuts for the cryptocurrency exchange dating back to June. Gemini Trust has been unable to pay out funds to some of its account holders due to the bankruptcy of Genesis Global Capital, who is set to oh around nine million dollars to clients. Meantime, the auto industry also seeing job losses. Ford Motor Company will be laying off workers across Europe, mostly in Germany. It wants to cut cost to pour

more money it's electric vehicle production. Ford CEO Jim Farley has pledged more than fifty billion dollars toward the development of evs on Dan Schwartzman, Bloomberg Daybreak. All right, Dan, thank you. Now, let's turned to Silicon Valley and the trial of Elon Musk. The Tesla CEO is on the witness stand for a second day in his securities fraud case, defending tweets about taking the company private. Egg Baxter has the latest from our Bloomberg nine sixty newsroom in San Francisco.

The crux of testimony centered around a deal with a Saudi public investment fund. He said he'd had a handshake agreement in getting help going private, but then they began to back pedal on the arrangement after his go private tweet. He also said he had support from Larry Ellison as well as two other investment firms. Musk also noted the wording of the text that he was contemplating taking the company private. He's back on the stand today in San Francisco.

I'm at Baxter Bloomberg Daybreak, Okay, and thanks. I must continues to fight that court battle over Tesla. He's facing another legal challenge when it comes to Twitter. According to a lawsuit there, Musk is accused of not paying grant on the company san Francisco headquarters since December. The owner of the building says the social media company failed to pay almost seven million dollars in rent over the last

two months. Well, Musk is caught up in legal battles, Nathan, he has seen his wealth increase thanks to a mini rally and Testlas shares. According to the Bloomberg Billionaires Index, Musk's fortune has swelled by more than ten billion dollars since Friday to reach a total of roughly one forty five billions since Friday. Musk last month became the first person ever to see two hundred billion dollars erased from their net worth in his thirty six degrees in Central Park.

Cloudy skies will give way to sunshine today in a high near forty five. Those clouds are gonna roll back in tonight, though, ahead of a wintry mess tomorrow. Time now to take a look at some of the other stories making news in New York and around the world with Bloomberg's Michael bar Good morning, Michael, Good morning Nathan. Another mass shooting in California. Seven people were killed and another severely injured in shootings that took place at two

separate locations in Half Moon Bay in northern California. Another person was wounded and taken to a hospital in critical condition. The other three bodies were discovered at a separate nursery with gunshot wounds. San Mateo County Sheriff of Christina Corpus calls it a horrific shooting. The motive through the shooting is currently unknown through investigation. The suspect identified as Chun Lizel,

a sixty seven year old Half Room Bay resident. The shootings occurred two days after a gunmen killed eleven people at a dance club. The shootings in California led to a march in New York City. It went from Union Square to Chinatown to fight gun violence in the US. This person was at the event. Every time something like this happens, if we say, oh my god, never again, but when are we really going to finally say this is enough? Another marcher says gun violence is a public

health crisis. Attorney General Merrit Garland dismissed criticism that the Justice Department is treating Donald Trump and Joe Biden differently when it comes to investigating their handling of classified documents. We do not have different rules for Denmark rats or Republicans, different rules for the powerful and the powerless, different rules for the rich for for the poor. We apply the facts and the law in each case in a neutral,

nonpartisan manner. Uh. That is what we always do. A g. Garland made the comments during a meeting of the Reproductive Rights Task Force at the Justice Department. A new poll shows a majority of New Yorkers want Long Island GOP representative George Santos to resign. According to a Siena College Research Institute pole, nearly six out of ten New York voters said Santos should step down. At about half of

Republicans say he should leave office. Santos admitted to lying about working at Goldman Sachs and other parts of his resume while campaigning. The Oscar nominations will be announced this morning.

Some of the favorite movies include Top Gun, Maverick Avatar, The Way of Water, Black Panther, Wakonda Forever, and Elvis Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists analysts more than countries Michael Barr, and this is Bloomberg. Night's actually seen a couple of those. How about that? Thank you, Michael, except for the Bloomberg Sports Update now brought tier by tri State out Here. Good morning, John Stanshower,

Good morning anything. Despite the shell lackein they took Saturday night in Philadelphia, the Giant season was arousing success. Passons two thousand and eleven and Napogins. What will be an interesting off season? Daniel Jones and Sa Kwan Barkley can both be unrestricted free agents. John's gentlemenator Joe Shane was asked about Barkley. We want to build this team and allocade our resources and that's that's what it comes down to you. So again, he's he's a good football player. Um,

he was durable for this suit this year. He played well, and you know, again he's he's a guy that we might have back. Shane was more definitive about the chances of Jones Attorney. Giants have learned they'll have the twenty fifth pick of the draft. The Jets all pick thirteen.

Chiefs coach Andy Reid says he expects Patrick Mahomes to play in Sunday's ANFC championship game but Sincinnat despite a high ankle sprain, it did not prevent the Homes from playing second half Last Saturday at the Garden Rangers Bead Florida six to two, para goals for Mekas Abantage had three assists for Timmy Panerain. Islanders lost in Toronto five to two. In the Isles have now lost five in a row nine of the last ten. Next tonight try to end a four game losing streak. They host Cleveland

College Hoops. Kansas defending national champs was sixteen and one lost at Baylor. Jayhawks have lost their last three. Duke is just five and four in the a c C after a loss in Virginia Tech a couple of Russians and in the semifinals of the Australian Open, krinkatching off took out the American Sebastian Quarter Atlanta Rabkina coming off an upset of top seed Eka Schwech one again third seed in Jessica Pagoula has just lost her quarterfinal match

with Victoria Azarenka six four or six one. We'll find out today who if anyone gets into the Baseball Hall of Fame. The philling is it could be a shutout, but if anyone has a chance, it might be Scott Rowland, John Stash and went Bloomberg Sports Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius XAMP, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning up, Nathan Hagar.

We're following a couple of significant developments when it comes to the war in Ukraine. Sources are telling Bloomberg News that the Biden administrations confronting China with evidence that state owned businesses maybe providing assistance to the Russian war effort. And now we have confirmation from Poland that it is asking the German government to allow it to send Leopard two tanks into Ukraine to support their war effort. From more on. All these stories were joined live by Bloomberg

News Executive editor for International Government, Rosalind Mathison. Ros Good morning, thanks for being with us. I want to start with this a US China situation. What is the evidence that the US is talking about? What kind of assistance could

a state owned enterprises be providing Russia. Well, there wasn't a lot of detail about that, but what we know is that there is a rising level of concern in the US administration about just how much economic activity is going on between China and Russia and how much that might be becoming deliberate in order to support of the Russian economy to facilitate its war in Ukraine. It seems to be focused around several things. One is just the

activities of state owned enterprises doing business in China. The other is perhaps the provision of non lethal military assistance, which is sort of spare parts, goggles, that kind of thing that might be just, you know, what Russia actually needs right now, given its struggles in Ukraine, and certainly a trajectory that the US administration is seeing where some of that activity is picking up. Of course, it's not in violation of sanctions that are placed on Russia for now.

Chinese companies have been pretty careful to stay in their lane on that, even though China never signed up to these sanctions to begin with. But what they're seeing as signs that some of that activity is on the rise, and therefore the warnings are coming to Beijing to watch it.

What's the possibility rise that the Chinese government wouldn't potentially know about this kind of activity coming from its own Steino on enterprises, It's possible it is also through the private sector, and you've just got sort of the natural order of business. I mean, China is not just the only country who's really seeing business somewhat as usual with

Russia despite its actions in Ukraine. India, countries in the Middle East, Africa and so on similarly have been continuing to trade and invest with Russia with certain enterprises, generally, they tend not to act without at least a sense of the mood in Beijing. It might not be an avert instruction from Beijing, but at least sort of knowing where the wind is with the leadership there in terms of things like their view on Russia and its actions

in Ukraine. So they wouldn't be acting really without sort of a sense of that, even if it's not an overt instruction. Um So you can read from that that probably there is a sense of other mood shift in Beijing in the leadership about Russia on this and what's the potential of the mood shift affecting US China relations. We've had over the last couple of months at least an effort to try to stabilize, if not further improve Chinese relations after that meeting between the presidents of the

U S and China. Well, certainly that is the balancing that we're seeing going on. As you've noted, there's been sort of a shift between China and the US at least an effort to put that relationship on a more even keel. And we're expecting the Secretary of State Anthony Lincoln to visit China before too long, and that would be sort of putting that on that further trajectory. So there will be probably an anxiety at least in Washington

to make sure that these issues remain somewhat separate. Yeah, you continue to press China over Russia, over Ukraine, but equally you're trying to put sort of trade and investment and other other issues, including the need to tackle climate change collectively, for example, on a different track between the US and China relationship. So you'd imagine that there's a strong design not to have it in fect that broader

trajectory too much. And I want to turn rise finally to this new development that just crossed the Bloomberg terminal moment ago, that Poland is now formally asking Germany for permission to send in Leopard two tanks. I guess this isn't too big a surprise here, but this does seem to have become something of a fracture in the Needle alliance. What more can you tell us about that? Well, that's right to some sense. It's a it's a formality because Poland has been asking for weeks and weeks or weeks

for Germany to agree to this. Almost a daily commentary from someone in Poland saying Germany needs to now allow this. So it's just putting more pressure on on Berlin to to agree that other countries can send in their own

German made heavy tanks, the Leopard tanks in particular. We are expecting that Germany will will sort of get over the line on this at some point, whether it's days or potentially still weeks, but the pressure is intense, and really even Germany is agreeing that Ukraine needs more heavy weapons if it's going to be able to push back against a possible Russian offensive that may come in the

next couple of weeks or a couple of months. But it's really just sort of keeping that public pressure from Poland on Germany to agree just thirty seconds left her rise. But what's been holding Germany back up to this point, well, a bunch of things. One is obviously concern and Germany is not the only one saying this, is that the warriors, the more heavy kit you sent into Ukraine, the more at some point you possibly provoked Russia into a reaction.

Although Vladimir Putin has threatened that before and not followed through. So that's really a fundamental concern. And also Germany is just very cautious about its weaponry going into other hands. That's been its position since the end of World War Two and something that it still holds very closely. So those are probably the two main drivers in that regard. This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.

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San Francisco. Our flagship New York station is also available on your Amazon Election divisis just Say Alexa Play Bloomberg Plus listen coast to coast on the Bloomberg Business app, Serius XM Channel one, 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