Bloomberg Daybreak: January 4, 2023 - Hour 2 (Radio)

with shooting up a New York subway pleads guilty. Plus day one in the House for in Battle Long Island Representative George Santos, Michael bar More, I'm John Stagehoward towards the latest done de bar Hamlem the Rangers and Islanders both Long Biggie's losses for St. John's and seton Hall.

That's all straight ahead on Bloomberg day Break on Bloomberg eleven Trio, New York, Bloomberg one, Washington, d C, Bloomberg one six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio dot Com and via The Bloomberg Business add Good morning,

I'm Nathan Hagar and I'm Karen Moscow. US Dock Index futures are on the rise this morning and which the markets all day long year on Bloomberg Right now, SMP futures are up twelve points or three tens of a percent. DAL future is up two tens of a percent or sixty five points. At NAST day futures up half percent or fifty one points, and the tenure Treasury is up twelve thirty seconds. The yield there's three point six nine percent.

The yield on the two year at four point three four percent nine Max Screwed Oil down two point six percent out a dollar ninety six and seventy four dollars ninety seven cents of barrel and Co mex School is up one percent at eighteen sixty four unnounced Nathan. All right, Karen. We'll have more on markets in a minute, but we begin with political turmoil in Washington. After three rounds of voting, House Republican leader Kevin McCarthy has failed to secure the speakership.

Amy Morris has the latest from our Bloomberg newsroom in Washington. McCarthy continued negotiations overnight after the House abruptly adjourned when three rounds of balloting failed to elect a Speaker of the House. This is the first time in one hundred years and the second time since the Civil War that a House speaker was not elected on the first ballot.

McCarthy says he will not withdrawn, so I think from the whole perspective, we talk's lawmakers will reconvene at noon today for another round of votes to elect a speaker. In Washington, I'm anymore is Bloomberg daybreak and Amy, thank you on this bload at Kevin McCarthy has opened up a rift with a GOP. Former acting White House Chief of Staff mcmulvaney is co founder of the House Freedom Caucus. He says Republicans who voted against McCarthy are being hammered

in conservative media outlets. They don't want to make it look like the Republicans are complete idiots when it comes to running the country, and that's sort of the message, you know that coming out of the House today is that we don't know how to govern and that's not a good thing for our brand. And former White House Chief of Staff mc mulvaney's our Washington corresponded Joe Matthew on Bloomberg Sound On. Catch the show weekdays at five pm Eastern on Bloomberg Radio. And here more of that

interview coming up shortly on Bloomberg Daybreak. I'm staying in Washington, Karen. The White House is taking in its Southwest Airlines. The Biden administration says it will hold Southwest responsible for massive flight delays over the holidays. Bloomberg's Sad Baxter has that story. The White House says Southwest Airlines failed its customers point blank. White House spokeswoman Karine Jean Pierre says all cancelations December

were controllable. She says that is according to Southwest. Well, every major airline space challenges from a pre Christmas storm, that wreck that wrecked havoc on the aviation system. All major airlines except for one, which is Southwest. Clearly we're able to recover quickly, and she says the Department of Transportation will make sure Southwest makes their customers whole. In San Francisco, I'm at Baxter Bloomberg Daybreak, all right, and

thank you all. It's shaping up to be one of the highest profile white collar fraud cases and years the case of collapsed crypto exchange f t X is now making its way to the courtroom, and we get the very latest Live with Bloomberg. Steve Rappaport, Good morning, Steve, Good morning, Karen and Nathan. Disgraced f t X founder Sam Bankman Fried pled not guilty to eight criminal charges,

including wire fraud and campaign finance violations. Authority say SPF duped investors out of one point eight billion dollars before his crypto company went belly up. Bankman Freed was released on two hundred fifty million dollars bail after being extradited to the US. Prosecutors want a judge to impost additional bail conditions. Bankman Fried's trial is scheduled to begin in October, Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Thanks Steve.

Turning to markets now. Wall Street began the new year very much like two with losses Apple and Tesla led stock slore with the SMP five hundred falling four tenths percent yesterday. David Dietz is senior portfolio strategist at Pepack Private Wealth Management. It is a new counter year, but it's the same old problem. Continue to plague us here.

I think recession concerns are probably at the top, particularly for equity investors, because uh, that could hurt corporate earnings, and that's the lifeblob for stuck p pack Private Walt David diet says he's concerned there is not concrete evidence inflation has peaked. Nathan, and we see today how the inflation picture is impacting views at the Federal Reserve. Minutes of the Central banks December meeting are released this afternoon.

We get more from Bloomberg's vine down with inflation staging a dramatic break at the FED lifted its benchmark interest rate from zero to four point five percent over the course of two By many accounts, the Fed will keep tightening, lifting the federal funds rate to five percent or even higher. Bloombrig economics as key drivers of the inflation rampage, such as rising labor course, are alive and well fed. Jared's your own Palace said, central bankers still have some ways

to go. Finny Dells Bloomberg day break. All right, Vinnie, thanks, you got a couple inflation readings out of Europe this morning. Friend. Inflation unexpectedly slowed in December, consumer prices rose six point seven percent from a year earlier. That's after record increases of seven point one percent in October November, and food inflation in UK stores jumped to a record high thirteen

point three percent last month. And finally, Nathan cathy Wood continues to double down on Tesla, the investor about more than one hundred seventy six thousand shares the electric vehicle producer. The purchase came yesterday as Tesla stock plunge twelve percent. That's the biggest one day drop in more than two years.

Was Exchange traded funds have bought more than nine hundred thirty eight thousand shares of Tesla since October, and this morning, Tesla shares are up almost two percent in early trading. Futures are up as well. Care and S and P futures right now are up fourteen points. That's the game of four tenth percent down. Futures are up seventy nine points, NASAAC futures leading the games up fifty nine points or a half percent, and the tenure treasury is up thirteen

thirty seconds. Yell three point six nine percent. Local headlines and a check of sports just ahead This is Bloomberg Sound six oh seven on Wall Street, fifty seven degrees in Central Park. It's gonna be rainy this afternoon, mild two with highs and the low sixties, getting down to the upper forties tonight. Michael barrs here with more than what's going on in New York and around the world.

Good morning, My call you, Good morning. Nathan, the man accused of shooting up in New York City subway car, pleaded guilty yesterday. Frank James shout and moved to ten passengers on the Manhattan bound N train in Brooklyn, April twelve. He did not say why, but James conceded, while I was on the train, I fired a weapon. James said he did not intend to kill anyone, but told the judge he was fully aware that deaths could occur as a result of discharging a firearm in such an enclosed space.

Prosecutors revealed James had been planning the attacks since twenty seventeen, and even conducted a trial run. He faced his life in prison. It was day one Foreign battled Representative George Santos in Congress, and it was far from a house party when reporters shouted questions, Jimmy, you have the Long Island Republican did not answer questions and once in the House Chamber, sat by himself. Santo's admits he lied about his resume, including his education and work. There are calls

for him to resign. The man suspected of killing four University of Idaho students could arrive back in Idaho today. Brian Coburger agreed to go voluntearily during a court hearing in Pennsylvania yesterday. Major Christopher Paris is with the Pennsylvania State Police. Arrangements currently are being made to deliver Coburger back to Idaho, where he can have continued to process and face these charges. The father of one of the victims,

Kay League Gonclave's, welcome Coburger's arrest. It felt like a cloud was lifted off of us. It definitely provided belief in comfort to know that things were progressing. Coburger faces four counts of murder and one count of burglary. Emergency crew sifted through the rubble of a building struck by Ukrainian rockets, killing at least eighty nine Russian soldiers. It happened in the town partially Russian occupied in the Eastern

Danesque region. A rule change by the FDA will allow a broader range of pharmacies to fill prescriptions for the abortion pill known as myth of pristone. The pharmacy must meet certain requirements and prescriptions can only be written by certified healthcare providers. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than seven hundred journalists and analysts more than a hundred

twenty countries. Michael Barron, this is Bloomberg, Nathan, Thanks Michael six o nine on Wall Street time for the Bloomberg Sports Update, brought to you by Tri State out He here's John stash Hour. All right, Nathan to mar Hamlin's uncle says, his nephew and still fighting the Buffalo Bill safety remains an intensive care and critical condition that Cincinnati hospital his heart because apparently was suscitated not only on

the field Monday night, but again in the hospital. Reaction to Hamlin yesterday from longtime Steelers coach Mike Tomlin, that's a really the whole thing for me being a Pittsburgher and that young man being a Pittsburgh I've known that guy probably says he was about twelve. Um just got a lot of respect and love for him as a human being, his commitment to the pursuit of his goals, and drain their kids. You need to be reports the NFL wanted the game to be resumed. The league insisted

that wasn't the case. In the NFL did announce the game will not be resumed this week. Bills and Bengals will play their scheduled games Sunday, which makes it scene they'll end up playing one fewer game and the a f C seedings was determined by win percentage. Carolina Hurricanes came to the Garden having won eleven a row, didn't trail until kay Andre Miller go midway to the third period. The Rangers scored three in the third and they beat the Keynes five to three. Of The Islanders won six

two at Vancouver. Matthew bars All had a goal to assist Nix her home tight for San Antonio and the Nets bring their twelve game winning streak to Chicago. St. John's Blue Ella lost at home to Marquette in nineties six to eighty five in the Red Storm. Now just one and four in the Big East. We're seeing Hall lost like twenty two at Crainton, Yankees of hired Brian sabe into assist GM Brian Cashman. Sabian started his career in the Yankee front office and then spent thirty years

with the San Francisco Giants. I'm John Stash Bloomberg Sports John. Thanks Bloomberg. Sports Report was brought to you by Audie. Don't let someone else drive off in the Audi model. You've always wanted to visit your local Tri state Audie dealer to get behind the wheel of yours today, or visit Autie Offers dot com for more information. What comes next in the speakership fight on Capitol Hill. We'll get insights on that live from Wendy Schiller, director of the

Topman Center at Brown University. That's just ahead. First SMP futures are higher by fourteen points, staff futures up eighty five NASTACK futures up sixty three points. The tenure treasury is up thirteen thirty seconds, yield three point six eight percent, Nimex crew down two and a half percent at seventy oh for a barrel. Comics gold up one point one percent at eighteen sixty six ten announced, and the Euro trading at one point zero six one nine against the dollar.

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, I'm Nathan Hager. As a fight over leadership on Capitol Hill continues later this afternoon, Kevin McCarthy is vowing to fight on in his long held ambition to become the next Speaker of the House, but that dream has been deferred delta serious blow yesterday after McCarthy lost three straight votes and failed to drum up any further support from his GOP caucus in the process. For more, we're joined by Wendy Schiller, director of the Tobbin Center

for American Politics and Policy at Brown University. It's great to speak with you this morning, Wendy. You know, you're such an expert on the history of American politics, so I'm really curious to get your thoughts on where this stands compared to other speakership fights that we've seen in the past. As we been saying, it's been a hundred years since the last time speakership vote was determined by

more than one ballot count. Yeah, and when that happened, um, the size of fail government was nothing compared to what it is today. And that's what we have to remember is, you know, is the federal government literally too big to fail? Now? In other words, you know, can we have can we have dysfunction in the House of Representatives and still function in terms of seneral government? And the answer is yes, we can, but it will feed more power, ironically to

President Biden and the executive branch. We've seen this over the last twenty years, that power has shifted when Congress hasn't been able to get anything done to Presidents Bush, Obama, Trump, and Biden, and the same thing will happen, which is of course exactly the opposite of what the most uh you know, rebellious of the Republicans want. They want to undermine, uh, you know, destroy, bring down the federal government and Joe Biden.

But if they can't function, then the president will have to function through executive or which only strengthens Joe Biden. So all their efforts on remind the speakership actually go awright against what they claim to profess to want to happen. Very interesting perspective there. Does this also give more power to the Democratic caucus within the House? Um? You know you'd like to think so if you're a Democrat, But I don't see how that gives you any more power

except on things like the debt ceiling for example. I mean, if a new speaker, whether it's McCarthy, orether, it's Steve Scalase for example, a second in command, who may emerge to be the consensus choice, we don't know. Jim Jordan has said, even though they professed to bore for him, that people are going against McCarthy, that he doesn't want

the job, he's not interested in it. Um. It may be turned to s glease And if they bring if they could even bring a bill to the floor, which you can do with a discharged position petition, which then you would need Democratic votes to do. Uh, then the Democrats would have to vote for an increase in the debt ceiling. So yes, I mean in the end of

the day for the government of function. It looks like in the next at least the next couple of months, the Democrats may have to join with Republican leadership to get must pass bills um through and they'll have an insense to do that because they have a Democrat in the White House. So there is a glimmer of hope for functionality, but it's it's not going to be a straightforward majority party rule. And we've seen we've seen the seeds of this coming since the Tea Party came in.

John Bayner couldn't get it done, Paul Ryan couldn't get it done. You know. It's McCarthy had really turned against Trump. For example, after January six. Some people argue, uh, he might have diminished kind of the energy that is fueling the rebellious twenty But he didn't do that. He chose to go the opposite direction and embrace Trump. And you have to ask yourself, is he is he really taking him out with a big mistake now because that has

come back to on him. Well, it's interesting because listening to Kevin McCarthy after he failed in those votes yesterday, he's saying now that he still has former President Trump's support, what does that mean for his chances as he gets ready for yet another round of voting later this afternoon. The problem with that argument is that Trump's ability or persuasion for some of something newly elected members is waiting. You know, I think they see themselves as new Trumps.

They don't need Trump anymore. They've got the energy, they got the voting base, they got the rhetoric, they've got the roadmap. Uh, they don't need Trump per se. And so I don't know that Trump's gonna have a lot of influence moving forward with them. You know, they want

to bring down the federal government's apparatus. It's a huge, huge infrastructure in the fell government, and they want things to go back to the states, and they're gonna do everything they can to you know, cripple the functioning of the federal government and then show hey, look, country can still function, States can still fill in the gap. We

don't need such a big federal government. But ironically, as I just said, if they don't do what they need to do, the president will have to resort to executive orders to get things done, and that will only expand the power or the federal government. Only about thirty seconds left here, Wendy, how much longer do you think this leadership fight lasts. It all depends on Kevin McCarthy. You know, if he wants to stick it out and keep going, keep going. Um, then you know he's going to make

them continuously vote against him. And if nobody else steps up to say I'll be the alternative, then this can keep going. And the longer it goes, you know, the more delayed there is an investigating President Biden, which is of course what Jim Jordan and other people want to do. That's what they want to spend their time on. But you know, if you want publicity for Hunter Biden's laptop, you know, not being able to elect to speaker is

not a great strategy for getting there. Thanks as always, professor, great to get your thoughts. Wendy Schiller, director of the Topman Center for American Politics and Policy at Brown University. Stay with Bloomberg Radio will continue following the leadership fight. It gets back going noon, Wall Street Time on Capitol Hill. How did the market open this morning? SMP futures are up sixteen points, staff futures are up nine and nastatic futures are higher by sixty nine points ten. Your treasuries

up thirteen thirty seconds, you'll three point six percent. This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Out and at Bloomberg Quick Take, She's a Bloomberg Business lash and I'm kared Moscow. And this updates brought to you by Innovation Refunds. This is your daily reminder from Innovation Refunds to apply for a payroll tax refund if you're

smaller medium sized business was impacted by COVID nineteen. Innovation Refunds clients already claimed over two billion dollars in payroll tax refunds. Get started at get refunds dot com. Futures on the rise this morning. We checked the markets all day long year on Bloomberg. Right now, SMP futures are up buddy teen points, up about half percent now, futures of three tens of upper cent or ninety eight points, and NASTACK futures up seven tenths of uppercent or seventy

one points. The decks in Germany's up one and a half percent. Ten year treasury of fourteen thirty seconds, you know, three point six eight percent if they yield on the two year four point three four percent. Nine X freude oil is down two point four percent on a dollar

eighty seven at seventy six cents of barrel. Comex gold up one point two percent, or twenty one dollars forty cents at eighteen sixty seven sixty announced, the Euro one point six one seven against the dollar, British pound one point to zero six seven, the yun is at one thirty point three four and bitcoin is up one point one percent at about sixteen thousand, eight hundred fifty dollars. And that's a Bloomberg business flash. Now here's Michael Barr

Withpore on what's going on around the world. Michael darre in. The House will convene today as Republicans trag in who elected speaker for the new Congress. Up leader Kevin mccarnthy, came short of overcoming opposition from the far right of his party after three votes. In the NBA at the Celtic Wizards lost the hockey game of the Rangers and Islanders. They won capitals, lost in not bills. DeMar Hamlin remains a critical condition after a cardiac arrest during a Monday

night football game. Hamelin's uncle says that doctors produced the amount of oxygen. Hamlin was seaving global news twenty four hours a day on the air and on Bloomberg Quick Take Power about more than seven d journalists man less more than a hundred twenty countries. On Michael Barr, this is Bloomberg, nath thank you, Michael. It is six on

Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak. And House Republican leader Kevin McCarthy may be hoping the fourth time is the charm in his bid to become the next Speaker of the House. For the first time in a hundred years, a House speaker has not been elected on the first ballot, so lawmakers will be back at it again Noon Wall Street Time today. Nick mulvaney, former Wine House chief of staff and co founder of the House Freedom Caucus, is weighing in on the speakership fight.

He spoke with our Washington correspondent Joe Matthew late yesterday. Let's listen in. I know this is more complicated than it being a so called freedom Caucus thing. What is the problem with Kevin McCarthy. Oh, it's let's be clear, it's not a freedom Caucus thing. The majority of the Freedom Caucus voted for Kevin McCarthy three times today, So no, a lot of these folks, not all of them. A lot of these folks were post Kevin are in the Freedom Caucus, but this is not a Freedom Caucus sort

of rebellion. I don't know what the objection is, you know. And I talked to Ralph Norman, my congressman the South, and I said, you know, why are you doing this? Because well, we're losing our country. I'm like, okay, I guess I agree with that, because you know, we're drowning it dead. I'm like, I get that, But tell me how you know not voting for Kevin McCarthy solves that. And there's no response to that. There's just a lot of personal animals that I don't understand, and that's not

a good reason. Sometimes you have to put your personal preferences aside and you know, vote your head and not your heart. And I just don't see them doing that right now. Have you surprised Donald Trump couldn't turn this around by working the phones a little bit more? Did that turn into a liability? Yeah, I've heard he's actually is on the phone a little bit. I don't think it's a liability because I think he knows, you know, I'm Trump still one of the best you know, gut

politicians I've ever met my entire life. Say what you want to around him. You've got a lot of weaknesses, but he's a prett good politician many but it runs for president one time, and when the first time through is going to prove that I think, Uh, he knows that if McCarthy loses, Trump will also be one of the losers here because regardless of the work that he might or might have not done in the last twenty

four hours, everybody knows that he supports Kevin McCarthy. So these people are actually thumbing their nose at the president. And if McCarthy loses, it will be just another blow to to Trump's reputation, into his credibility, and to his electability. He was a huge took a huge hit in the midterms and not being able to get his guy elected speaker out and could get another blow that was just

convoldon his opponent. The Democrats pick up the phone tonight, Mick, is there is there a strategy here for Hockeen, Jeffreys and his early going to strike a deal that might help their minority status. Yeah. I was over in the Senate today. All the new members get sworn in in the Senate because it's functioning properly, swore in the new members. I start talk kind to some friends of mind it from too into a Democrat on the train coming back, and he just sort of looked at me and says, Nick,

when when are you guys gonna call us? Uh? And I think that's that's what they're waiting for. Is they're waiting for a phone call from some group of Republicans is to uh strigae out a way to hammer out a deal. We did this when I was in the state legislature back in South Carolina, and we had somebody who ran the speaker at about a third of the support of the Republicans and kind of deal with the Democrats and end up giving them a couple of committee

chairs to do it. So certain of the precedent is there many many times over to cut deals to get speakerships. And my guess is a team is is going to answer his phone for anybody that wants to call him tonight. Incredible, What a way to make a living, great conversation. MC mulvaney is great to hear your voice again. Happy New Year, Thanks for coming back in to talk to us. On what I know is a very busy day, and it could be another very busy day today when the voting

continues on Capitol Hill. That was former White House Chief of Stack mcmulvaney speaking with our Joe Matthew on Bloomberg Sound On. You can catch the show Bloomberg Sound on weeknights on Bloomberg Radio five pm Wall Street Time, or anytime if you download the Bloomberg sound On podcast wherever you get your podcasts. We'll get a check of this morning's top stories and local headlines, and a full check of markets. Just ahead. First, Bloomberg Meteorologist Rob Carolyn with

today's weather forecast. Clouds today will actually see some rain moving into the Tristead area of this safternoon as low pressure comes up from the south. It's going to be unusually warm ahead of that system. We're already mild this morning, six to sixty five. Rain ends tonight. We're forty five to fifty's more, mostly cloudy in fifty to fifty five, turning partly Sunday. Friday high forty five to fifty. We'll

see some sunshine Saturday too. I'm Rob Caroline with your three day forecast on Bloomberg eleven three oh broadcasting live from the Bloomberg Interactive Broker's studio in New York, Bloomberg eving freg to Washington, d C Bloomberg, On to Boston Bloomberg one oh six one to San Francisco Bloomberg and No. Sixty to the Country Sirius XM H one nine and around the globe to Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. We're going up to six thirty

on Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow. We are just about three hours away from the open of US training. It's time for the five things that you need to notice start your day. And at first we had to Washington, where a House Republican leader, Kevin McCarthy, has failed to secure the speakership. The blow to McCarthy and the GOP has drawn sharp criticism from

conservative media. Mcmilvany, former acting White House Chief of Staff and co founder at the House Freedom Caucus, says it could open the door for a Democrat friendly House speaker. My guess is, if it's not Kevin, it will end up being a compromise candidate more towards the Democrat side of my party. More something like a thread outen and I've used Thread's name. I U said, you know what a smile on my face spread the friend of my

but he's a very moderate Republican. Mcmilvany spoke with our Washington corresponded Joe Matthew on Bloomberg Sound on Catch the program weekdays at five pm Eastern on Bloomberg Radio and staying in Washington carrying the Widen administrations. Taking him at Southwest Airlines. White House Press Secretary Krein John Pierre says the Department of Transportation will hold Southwest accountable for holiday flight delays tied to implement weather. All major airlines except

for one, which is Southwest. Clearly we're able to recover quickly. Prist Secretary Karine John Pierre says the White House wants Southwest to cover rebookings, hotel rooms, and other amenities well. Turning to Crypto now, Nathan, it could be one of the highest profile white collar fraud trials and years. The case of collapsed Crypto Exchange ft X is now making its way to the Core for Room and Bloomberg Steve Rappaport joins us live at the Latest. Good Morning, Steve,

Good morning, Karen, and Nathan Sam. Bankman Freed will stand trial in October on eight federal charges, including wire fraud and campaign's finance violations. SPF pled not guilty to all counts yesterday. Prior to his arrest last month, Bankman Freed admitted to making mistakes but the night knowingly committing fraud. Prosecutors say they expect to lay out their case against the disgraced f t X founder in the next four weeks.

Bankman Freed also faces civil action from government regulators. Those charges will likely be on hold while the criminal case plays out Live in New York Times. Steve Rappaport, Bloomberg day Break, Thank you, Stephen. Turning to markets, Wall Street began the new year very much like two with losses. Earned Gibbs, chief investment officer at main Street Asset Management, says more down days for growth stocks could be on the way as long as we're uncertain about the future.

It's those growth stocks that are going to take the biggest hits, and your sense of sectors that are going to tend to hold up better. Aaron Gibbs with main Street asset management. Thanks growth. Stocks carry a lot of risk at the moment. And that's the five things that

you need to notice start your day. We're also gonna bring it this headline crossing the Bloomberg salesforce to cut its workforce by about ten percent and a restructuring again a just crossing the Bloomberg and futures this morning are in the rise of SMP futures of about sixteen points or four tensive uppercent down futures a three tensive upper center one at its six points, and NASTAC future is up six tensive upper cent or sixty five points. Ten

year treasury of fifteen thirty seconds. The yield is at three point six eight percent yield on a two year four point three four percent, and I'm ex screw oil down two point four percent. Straight ahead your latest local headlines plus a check of sports, and this is Bloomberg. Thank you. Caring at six thirty one on Wall Street of Michael Barre is here with those local headlines in New York and from around the world. Good morning, Michael,

Good morning Nathan. The New York City native John smoke canisters inside a pack Brooklyn subway car before opening flyer on commuters last year. Is pleaded guilty to terrorism charges and gun charges. Frank James appeared in federal court in Brooklyn yesterday, faces up to life in prison in battle. Congressman George Santos didn't answer any questions shouted by reporters as he spent his first day in the House. Once

in the chamber, Santos sat alone. The Long Island Republican Amidity lied about his resume while on the campaign trail. During her briefing, White House Press Secretary you're in, Jean Pierre commented on Santos, this is something that the House Republicans, the Republican Conference, they will have to decide what they owe to the American people in terms of standards and service. That is something that they have to decide on. They

are growing calls for Santos to step down. The man charge in the November murders of Fort University of Idaho students, waived his right to an extradition hearing in Pennsylvania that will speed up twenty eight year old Brian Coburger's transfer to Moscow, Idaho, to stand trial. Colonel Robert Evanshick of the Pennsylvania State police. My heart goes out to the families of the victims, their friends, the community of Moscow, and the University of Idaho. Police say they have link

Coburger to the crime scene through DNA. The Russian military says unauthorized use of cell phones by Russian soldiers led to a deadly Ukrainian rocket attack on the facility where they were stationed. It raised the death toll from the weekend attack to eight nine. Meanwhile, State Department spokesman Ed Price says that the US will support Ukraine. We will stand with Ukraine for as long as it takes. As

we have said, President Putin can choose to end this war. Today, Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalists analysts more than unt He's Michael Bard. This is Bloomberg Nather. Thanks Michael. Six thirty three on Wall Street Time for the Bloomberg Sports that they brought to you by Try State out of Here's John stash Out all right, Nathan Buffalo Bill Safety. Damar Hamlin remains an intensive care

and critical condition. His uncle says, Hamlin had his heart resuscitated twice Monday, night, once on the field and then again in the hospital. Of the family released a statement expressing its gratitude to the outpouring of support. Hamlin has a go fund me for a toy drive and in twenty four hours it went from having twenty dollars in it too now more than five million. Rangers also the hottest steven hockey Carolina had won eleven row brought a

lead of the third period at the Gardener. Timmi Panarin tied the game thirty six seconds into the third and then midway through sleep and tackle gets it back behind that drives to the edge of the traffics Oi to the far circle. Cockle took points of Bamma Javels last.

This could have been deflected as well for three Rangers their first lead to the game ESPN direct DeAndre Miller got the goal the Rangers at an empty net or They beat the Hurricanes five to three, Islanders three goals in both the second and third periods and a six to win at Vancouver Nixon Nets, both playing Tonight Nets going for a thirteenth win in a row. The season

began well for St. John's. They were eight, no, eleven and one, but a fourth Strade Big East loss, Marquette won the second half fifty five, thirty seven took the game nineties six to eight and five, and Seaton all lost by twenty two at Crayton. Bryan Sabian began his career in the Yankee front office. He oversaw the drafting of the Yankee Corps four that led them to four championships. He then spent thirty years with the San Francisco Giants,

winning three World Series. Now Sabian returning to the Yanks to be an adviser Here a long time g M. Brian Cash, John Stash went Bloomberg Sports Nathan Okay, John, thank you and the Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the Outye model you've always wanted. Visit your local Trice State Audie dealer to get behind the wheel of yours today,

or visit Autie Offers dot com for more information. Six thirty five on Wall Street, Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve Polist and X

to Los Angeles. We're talking about the Federal Trade Commission saying there are no settlement talks underway to resolve its opposition to a Microsoft takeover of Activision Blizzard um Corney Donahoe on ktr H in Houston. Americans moving last year were drawn to cheaper and less densely packed locations. I'm Caroline Head Film Bloomberg d a B Radio in London. We've been reporting on new figures showing food prices in Britain rising by more than in the past year. I'm

Ed Corey on w w J in Detroit. I'm reporting most automakers report sales today and those are some of the stories. Are twenty seven hundred Bloomberg journalist and analysts working on this morning around the world. It's sixty six on Wall Street. The following is an editorial from Bloomberg Opinion.

This editorial was written by the Bloomberg Editorial Board. During the chaotic US withdrawal from Afghanistan, in the Biden administration granted so called humanitarian parole to more than seventy thousand Afghan evacuees to allow their entry into the US. This designation expires after two years. Without an adjustment in their immigration status, these Afghans will have to request asylum to stay in the US, a lengthy, confusing, and expensive process.

The bipartisan Afghan Adjustment Act, which lawmakers introduced last August, provides a common sense solution, but Congress left it out of the four thousand page spending bill President Joe Biden signed in the law last week. That isn't just cruel, it's damaging to national security. Allowing this issue to slide further will undermine American credibility and confirm accusations of US hypocrisy.

The eighteenth Congress should resolve this matter without delay. Anything less would be a betrayal of America's allies and ideals. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or opi and go on the Bloomberg Terminal. These has been Bloomberg Opinion. Listen for Bloomberg opinion editorials every weekday. At this time. Terminal customers can read more at O, P,

I N GO. Another story we're watching is Another policy shift at Twitter, one of many since Elon Musk's take over. The company will relax a three year old ban on political advertising to quote facilitate public conversation around important topics. Further details haven't been announced yet. Twitter and Post that ban in twenty nineteen, saying political message reach should be earned,

not bought. Also watching shares of Salesforce up two percent in the pre market, The cloud software company says it's going to cut about ten percent of its workforce in a restructuring. Salesforce says it hired too many people leaning into an economic downturn, and affected employees will get a minimum nearly five months Pad futures hire. This morning, and you're listening to Bloomberg Gaber Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the

Bloomberg Business apt and at Bloomberg Quick Take. He's a Bloomberg Business Lash and I'm Karen Moscow Future is on the rise this morning, and we're gonn the first Word breaking news desk for today's morning call. Here's Vil Maloney, Bill, Good morning, and good morning Karen. That's right, US futures are pointing to a higher open without futures of a hundred eighteen points, SIPs Game nineteen and NASDA futures rise

by eighty two. The US ten year old at three point six eight percent, gold is hired by twenty one, oil is trading in the red, and bitcoin is higher by one percent. Hong Kong rose three percent overnight, while up markets are firmly in the green this morning and back in the US. On the economic front, at ten o'clock, I s M Manufacturing and at two o'clock minutes from the f O M Seed. In other news, Kathy Wood bought more Tesla stock during yesterday's launch, and Salesforce is

cutting ten percent of its workforce. In the hedge fund space, Chrispin O'Day's flagship hedge Fund searched a hundred and fifty two percent last year, and wrapping things up back in New York, Mountain and Schwab were both raised by overaclemeant Sacks, Northern Trust was cut to neutral and Boston Beer was

cut to underperform well. Fred Jeffreys Live from the first Breaking News bestcomb Bill Maloney care Right, Bill, thank you to hear live breaking news over her Bloombergy Times Squawk on your terminal SCU A w K and that's a Bloomberg business flash. Now here's Michael Barr with more on

what's going on around the world, Michael Karen. For the first time in the one hundred years, members of Congress failed to elect an outspeaker yesterday on Day one, the man running for the speakership, Republican leader Kevin McCarthy, was rebuffed three times. Emergency crews on sifted through Emergency crew sifted through the rubble of a building struck by Ukrainian rockets. Moscow says that it killed at least eighty nine Russian

soldiers baricked there, according to the Ukrainian Rockets. In the NBA, the Celtics and Wizards lost in hockey, the Rangers and Islanders won. The Capital's lost to note. Buffalo safety Damar Hamlin remains in critical condition after suffering cardiac arrest during a Monday night football game. Hamelin's uncle told CNN doctors

reduced the amount of oxygen. Hamlin was receiving global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than journalists analysts more than twenty countries. I'm Michael bar this is Bloomberg. Karen al right, Michael Barr, thank you at a six forty two on Wall Street, and we turned to news now and science and technology with a Bloomberg and j A t. Stem report. And here's just making news in science, technology, engineering and math.

The European Union is moving toward requiring COVID tests for travelers from China. EU health advisors have agreed on a draft opinion that includes masking and preflight testing requirements. Several European countries, including Italy and Spain, have already imposed testing rules on flights from China. Meanwhile, China is pausing massive investments aimed at building a ship industry to compete with

the US. Bloomberg News has learned that top officials are discussing ways to move away from constantly subsidies that have done little but encouraged graft and American sanctions, and a steady slide in Apple shares has pushed the iPhone maker's market value below two trillion dollars. Apple fell three point seven percent yesterday, closing at its lowest since June one. Concerns about iPhone supply and the important holiday quarter are

weighing on the stock exactly a year ago. Apple shares briefly rallied to climb over three trillion dollars in market value as the SNP five hundred hit a record high. And that's the Bloomberg n j I t STEM report, Nat that it seems like a while ago three trillion dollar valuation, doesn't it? All right? Karen, thank you. We're coming up to on Wall Street. Now it's time to check what's going on in d C, where some of the top stories include Kevin McCarthy's speakership hopes in doubt

after losing three votes. Also making news, George Santos isolated in the House as resignation calls mount even before he takes the oath of office, and President Biden promoting bipartisan victories as divisions royal to gop let's bring in Boomberg. Government reporter Emily Wilkins after a tumultuous day on Capitol Hill. Emily getting ready for another long one today, getting head is another long one today, Mentually prepared for another long

one the day after today. I'm just it's it's really really a fascinating time, the level of chaos on the Hill, the crisis that House Republicans are in really can't be overstated. I mean, Nathan, no other legislation can move until they figure out who the speaker is. And at this point both sides of just really promised to dig in. Last night, McCarthy was making phone calls with members, he was having his allies meet with some of the holdouts, but it just really did not seem like it made much of

a difference. We're not aware of anyone at this point who's changed their mind, but McCarthy is going to have to show some pro risk today. His supporters are willing to stick behind him for vote after vote after vote, but there needs to be some light at the end of the tunnel today. And and that's really what we're looking for in terms of whether McCarthy is going to be able to start keeling off some of those holdouts

and cuttings and deals that will ultimately give him the speakership. Otherwise, eventually, folks are going to get tired and other options are going to start becoming more and more likely. Well, what are some of those other options, Emily, I mean, you mentioned some of the supporters sticking with Kevin McCarthy. They include a couple of names that have been bandied about

as potential alternate picks, Steve Scalise and Jim Jordan's. Yeah, absolutely, And I mean, look, there are questions right now about who would be able to get to that magic number of to eighteen to get to the number that they would need to become speaker, And at this point, as McCarthy pointed out, it's not really clear that anyone has the ability to do that. Even though that there's a lot of support in the caucus for say Steve Sclease,

who's the number two Republicans. There are certain members who have told me that, you know, they feel like going with anyone, but McCarthy is to give into this hostage taking that's being done by a small fraction of their of the House Republican conference, and so there's a lot of concern about, I think, switching at this point. But look, you could see Steve Scalasee, you could see Patrick McHenry. I think at least deponic some of these folks who

have already had leadership positions within House Republicans. But I think at this point it really does seem like a huge question mark. I mean, I don't think Jim Jordan's would be able to get to to eighteen. I don't think a lot of the folks that the Freedom Caucus would want to put forward could get to to eighteen. Um, and then there's a huge question. You've heard about a consensus candidate, but no real names have been put forward.

It's just not clear who Republicans could offer up that would allow enough Democrats to come over vote for them and eventually get to someone winning the speakership. Yeah, and I guess there's still an open question about no matter who gets to to eighteen, whether that person is going to have any kind of power uh in the speakership. I mean, it seems like the position is really diminished

at this point or is that just me? I mean, to a certain extent, the power of the speaker is the power for you to unify your members and hold them together. And right now, even McCarthy, if McCarthy does wind up getting to guess, his power to do that has been very much diminished. These fringe members have seen that they are able to really stop the process and hold things up if just a couple of them stick together.

McCarthy's working with very narrow margins, the same frankly that Pelosi worked with last time, and so yes, there's that. And then of course there's the House rules. I know those are super wonky. I'm not going to get into the nitty gritty of them. But the thing about the rules is that the rules dictate who has the power in the Chamber. And that's what this all boils down

to these rank and file members. They want to have more power, they want to have more say some folks argue that that's a perfectly good thing, but the fact of the matter is that the more power you give to UH at the average member, the harder it can

be to get things done. And in our last minute here Emily, while all this turmoil continues to unfold on Capitol Hill, here's President Biden heading back out on the road promoting his agenda and promoting it with Mitch McConnell, which I think is the most interesting exactly, And you wonder, I mean, the speculation, of course, is that you know, Biden is considering running. In the last time he ran, he ran as a consensus candidate. He has a few

things to show for that. He can point to things like the infrastructure Bill and say, hey, I got Republican support for this one. Um but you know, I think there's still a sense that there's still a lot of partisanship in the US. There's still a lot of desire for people to come together, and this trip could be of something that Biden begins to use as he tries

to build up campaign. God all will be helpful as he tries to figure out how he's going to wind up brasing the depth sailing, bunding the government and doing all the other must pass bills that he does, especially with the House of being as acrimonious as it is. Yeah, I mean, first they've got to get a speaker decided before they can move any bills, as you mentioned just

a few minutes ago. So Bloomberg Government's Emily Wilkins um, I guess brace herself for what's to come for the next day, maybe several days, as the fight unfolds on Capitol Hill, and you can read more about it on Bloomberg dot com and on the Bloomberg terminal. Follow all the latest on Bloomberg Radio in Washington at Bloomberg and one oh five point seven FM HD two. Right now, SMP futures are hired by sixteen points staff futures up ninety eight and Nasdaq futures highed by seventy five points.

Now they just keep rising ten Your treasury is up sixteen thirty seconds now for a yield of three point six seven per cent. And you're listening to Bloomberg Day Right, markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business lash and I'm Karen. Moscow stocks on the rise this morning, along with US stock index futures as favorable news reports from

Shina and data from Europe boost risk appetite. We checked the markets all day long here on Bloomberg SMP futures of eighteen points or half percent down futures have a third of upper cent or a hundred twelve points, and NASDACK futures up seven tens of a percent or about eighty points. And Jacks in Germany's at one point seven percent, and your treasury of sixteen thirty seconds you have three point six seven percent. They yield them at two year,

four point three three percent. Nime X screwed oil is down two point six percent at a dollar nine eight at seventy four dollars ninety six cents of Barrel Comic school that more than one percent, or nineteen dollars fifty cents at eighteen sixty five sixty announced the euro one point six seven against the dollar, British bound one point to zero five zero begin at one thirty point five four and bitcoin is that more than one percent at

about sixteen thousand, eight hundred dollars. And that's a Bloomberg busy flash, Nathan, all right, Karen, thank you, six fifty six on Wall Street. Ahead of Bloomberg surveillance starting in just a few minutes, we want to take a look at some of the names moving in this pre market.

We're joined by Bloomberg Radio and TV markets correspondent Pretty goofed, Happy New year, Pretty uh, I see We've got just broken the news a few minutes ago that Salesforce is getting ready to restructure, getting ready to cut some jobs, and looks like the stocks getting a bit of a pop on the back of that. Yeah, happy new Year. You are starting to see a little bit of a new strategy being taken by Salesforce. In three they are cutting ten percent of their workforce, setting up to two

point one billion dollars in charges. Now this is really important because of course a ten percent cut in workforce is not necessarily happy news for for anyone from a human impact. But what you have seen from a lot of these tech companies that are kind of cutting back is this idea that they're actually getting rewarded for it in the stock market. And the logic here is simple.

They are actually being able to cut back on those costs and able to perhaps reinvest that money elsewhere, and that's usually seen as a positive um when you look at the investment scenario. So CRM is the ticker there, it is up about two point eight percent in the pre market. It's not the only one though. You do have a pretty big move showing up in some of

these Chinese a d rs. Ali Baba is our poster child for that b A b A up seven point one percent essentially comes after ants approved fundraising plan is starting to boost a little bit of optimism when it

comes to the Chinese regulatory space. This is a pretty big deal because, of course we know not only is Ali Baba kind of our poster child for all things China when it comes to the investment case, and how much people really want to hop into the A d r s, but also because Aunt group itself wanted to become this big kind of behemoth, the idea that I want to take on a kind of financial business in addition to its commercial business and was then the target

of the Chinese government for a very long time. And speaking of China, Uh, you are seeing not just Ali Baba, but all the A d r s actually up by quite a bit. B A B A shares up about seven percent in the pre market. And they're also coming out with a new plan Nathan to talk about subsidies when it comes to easing some of the semiconductor materials.

So you're seeing a lot of the chip stocks higher around the world as well, saying you know what, we're going to try to compete given some of the restrictions the US has put and we are still um going to do it by lowering those material costs down. Some names like Micron for example, m you up about three point eight percent of the pre market. Now we got to talk about Tesla as well this morning, Creaty, because it looks like once again Cathy would has bought the

dep They absolutely haven't. It's good enough for investors to follow suit. T s l A shares up one point four percent. Let's see how long it lasts. Though some of this might just be kind of a reaction from some of the pain we saw yesterday. I want to end Nathan very quickly with Microsoft shares are actually down two percent after UBS downgraded the company to a neutral from a boy saying that their cloud computing services businesses may see a steep growth deceleration that could be worse

than expected. M s f T is the ticker there. Yeah, more potential macro headwinds. Big call there from UVS. Thanks for this as always. Bloomberg Radio and TV Markets correspondent Krety Gupta with us this morning. SMP futures right now up fourteen points, staff futures of NASTAC futures up sixty seven points. This is Bloomberg Daybreak. I'm Nathan Hagar along with Karen Moscow. It is six fifty nine on Wall Street and Bloomberg Surveillance with Tom Keene, Jonathan Farrell, and

Lisa Abramo. It starts right now by from the Financial Capital of the World, broadcasting across thelo This is w b b R, New York Bloomberg he living trio. There are a lot of real fundamental issues that are gonna be pulling down inflation next quarter or two. We stayed