Bloomberg Daybreak: January 5, 2023 - Hour 2 (Radio)

Benedict Blust. President Biden says he intends to visit the US Mexico border. On Michael barr More, I'm John Stashow. In sports, the Knicks pulled out a narrow home win over the Spurs. The Nets win streak into at Chicago,

The Devil's wand into Georgian. That's All's trained head on Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg ninety nine one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius Exam one nine Team and around the World Old on Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning, I'm Nathan Hagar and I'm Karen Moscow and US No index futures are a little change to hire this morning. We checked

the markets all day long here on Bloomberg. Right now again SMP nastack and down futures, little change to hire. The decks in Germany also that'll change ten. Your treasury down two thirties seconds here three point six nine percent. They yield on the two year four point three seven percent. Nine x screwed oil on the rise of two point three percent of but allar seventy three. It's seventy four dollars fifty six cents of barrel and Comax gold is

down three tenths of a percent. Nathan, all right, Karen. We'll have more on markets in a minute, but we begin with the political turmoil continuing in Washington, d C. The House has adjourned once again without electing a speaker. Let's get the latest from Amy Morris in our Bloomberg one newsroom. In the nation's capital, twenty hardline conservatives are blocking GOP leader Kevin McCarthy's ascension to Howse speaker, and Pennsylvania Scott Perry is one of them. Because we all

acknowledge and we all know that Washington is broken. We must take a new path. Laurda's Catcamint called on the GOP to support McCarthy. He has proven that he is willing to stand up in the face of critics and not only prove them wrong, but work with them. How's Republican leaders held a meeting late yesterday to hammer out a deal. Still no resolution. Lawmakers reconvene at noon today to begin a seventh round of votes in Washington. I'm

anymore as Bloomberg daybreak. All right, Amy, thank you. By The standoff on Capitol Hill is getting attention from the White House. President Biden says he hopes Congress can quote get their act together. Congress of Karen function, there's just embarrassing. With the greatest nation in the world, How could that? President Biden says, dysfunction with the GOP is not a good look to the rest of the world. Now we're hearing reaction from former members of Congress as well. Karen

Democrat Tim Rohmer is a former representative from Indiana. He says Republicans voted against McCarthy seemed determined to take him down, and Democrats have little reason to come to his rescue. The Democrats are in a very good position right now. There is no incentive for them to help Kevin McCarthy out of this deep dark well at a hole that he has dug for himself. Former Congressman Tim Rohmer was

a guest on Bloomberg Sound On with Joe Matthew. You can catch the program weekdays at five pm Eastern on Bloomberg Radio and listen to the show on demand wherever you get your podcasts. Well, another major story we're following this morning, Nathan brings us to Amazon. We're learning job cuts of the company will be greater than initially anticipated, with Amazon planning to eliminate over eighteen thousand roles, and

Bloomberg's Prisoner has the details. The figure includes cuts announced back in November, when about ten thousand workers lost their jobs. Uncertainty over the outlook caused Amazon to accelerate layoffs. CEO Andy Jesse told employees the company typically waits to communicate these outcomes until it speaks with is directly impacted, but the information was leaked to the Wall Street Journal, so

the news was shared earlier and directly from Jesse. Most of the cuts are in Amazon's retail division and human resources. Jesse is already eliminated or curtailed experimental and unprofitable businesses in New York. I'm Doug Prisoner Bloomberg Daybreak are Doug, thank you, and those Amazon cuts come as we await two key readings on the labor market today ahead of tomorrow's jobs report, we get a preview from Bloomberg's Mike McKee. The Fed is focused on employment as they raise rates

to slow the economy. Unemployment should rise, So far it hasn't. Jobless claims have remained low and steady, although economists say it's difficult to get a clear read on layoffs during the holidays, so don't expect a big change in claims yet. ADP measures the number of people on payrolls, in theory that should point to the direction of the overall labor market. ADP, however, has diverged from the government's payroll report, coming in weaker

for the past five months. Bottom Line markets are likely to look past today's day ad to Friday's numbers, figuring that's what the Fed will be doing. Michael McKie Bloomberg Daybreak, All right, Michael, thank you. Meantime, the FEDS standing firm and it's resolved to bring down inflation, and we get the latest Live with Bloomberg. Steve Rappaport's Steve, good morning, Good morning, Karen and Nathan. With that resolve comes a

delicate balancing act for the Federal Reserve. In a blunt warning to investors, minutes from the last policy meetings show the central bank will not cave to public pressure to lower interest rates. The FED is attempting to cut inflation without triggering a recession, but JP Morgan Chief US economist Michael Faroli tells Bloomberg gets likely too late to achieve

that goal. We are expecting the economy to slip into recession by the end of the year, just due to the lag effect of the of the tightening and financial conditions that the Fed is engineered here, as well as the additional rate heights at their they're signaling today. The notes also highlight the Fed's rate projections being notably above market expectations from a policy standpoint, Live in New York.

I'm Steve Rappaport, Bloomberg Daybreak, All right, Steve, thank you, Oh the SMP and NASDAC shook off fed caution yesterday's happening two days of losses, but Morgan Stanley chief US equity strategist Mike Wilson, who correctly predicted last year's dismal market, says stocks are heading even lower. We think three thousand is a very achievable number given our confidence on our

earnings forecast. Ironically, I would say, in the absence of, you know, a recession meaning companies decide to not off aggressively, that target looks more achievable. Let may sound counterintuitive, but that's the way we're not modeling it today. So our bare case is actually kind of we avoid a recession,

but not to slowdown. If that prediction from Morgan Stanley chief US equity strategist Mike Wilson comes true, stocks with decline more than from current levels, Well, Nathan s and P and Dow futures are a little change this morning. Nownsdays future is of a tenth of upper cent or twelve points, and the ten year treasury down one thirty second deal three point six eight per cent and straight ahead. We have your latest local headlines plus the check of sports,

and this is Bloomberg. Karen. Thanks six o seven on Wall Street. Now forty nine degrees in Central Park. I've hatchee fog this morning. It's gonna stay cloudy and cooler today with him the low fifties, maybe a shower tonight. We'll get down to the low forties. And Michael Barre is here now with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. Pope Francis delivered the amily at the funeral

mass for former Pope Benedict Benedetto in Italian. Pope Francis said, Benedict, may your joy be complete as you hear his voice. Warners gathered in St. Peter Square outside the Vatican today where Benedict is being laid to rest. George Mason University professor Helen Alvary spoke about Benedict's legacy. I think he's a model of humility and modesty. He was definitely a servant of the Church. He didn't want to come to Rome. He wanted to stay in Germany and remain at Theologian.

He didn't want to be head of the Office of Doctrine. But John Paul To really twisted his arm, and he really did not want to be pope. Ah he thought, you know, he was not great enough for it. Benedict will be buried in the crypt under St. Peter's Basilica. President Joe Biden says he intends to visit the US Mexico border next week for a firsthand look at conditions as his administration contends with a surge in migration. Biden is already scheduled to travel to Mexico next week to

meet with the presidents of Mexico and Canada. He wanted violence. That's what investigators in New York City say about Trevor Bickford, arrested for allegedly attacking three police officers near Times Square on New Year's Eve. The nineteen year old from Maine was a rain yesterday in charge in the machete attack. It's a war of words between New York City Mayor Eric Adams and former Mayor Bill de Blasio's administration. Adams is calling on his predecessor to stop his team from

criticizing the current administration. Not called build the other day, that's a bill. What's going on? You know what's going on? And then Big Bill's coms guy, who's probably the roast coms guy in the history of communication. Adams is talking about the blasil's former spokesperson Bill Neidhardt, who has been increasingly critical of Adams on Twitter. Adams said they had eight years to do their job. Once they're gone, they're

experts on everything. Heavy rains and strong winds at California overnight as a powerful bomb cyclone washed ashore, knocking out power. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than journalists and analysts more than twenty countries. Michael Barr, this is Bloomberg. Nathan. All right, Michael, thank you, Coming up to six ten on Wall Street. Time for the Bloomberg Sports Update, brought to you by tri State out Here. Here's John stash Our.

All right, Nathan Nicks lost to the lowly Spurs a week ago in San Antonio. Jalen Brunson didn't play that game. He'd did play last night at the Guard and he scored thirty eight points. That's a career high in the regular season. The Knicks pulled out the win one seventeen, won fourteen. The Nets brought their twelve game winning straight to Chicago the Bowls one one twelve to despite forty four points by Kevin Duran's, the Nets first loss in a month. Devil's won five one at Detroit. They're back

home tonight. Road games tonight for both the Rangers and Islanders College Who's Fordham lost the Titlan at Rhode Island eight two seventy nine. Big East Providence beat Yukon. The Huskies were fourteen now they've lost their last two, and Georgetown, with a loss to Villanova, has now lost twenty five consecutive Big East games under coach Patrick. You're in a c c NC State beat Duke by twenty four. Duke was down twenty two at halftime. The Red Stocks having

allowed short stops. Andrew Bogart has become a free agent, losing them to San Diego, holding on to All star third baseman Rafael Dever's new contract eleven years, three hundred and thirty one million. Jets closed out the season Sunday in Miami. It seems as if every press conference for Jets coach Robert Salah a discussion of where things stand with bench quarterback Zach Wilson. Zach has got all the talent in the world, and we have all the confidence

in the world with him. It's just like I said, from this reset, and we're gonna we're gonna grind with him. We are and uh and through hell or high water, we're gonna figure out how to how to get him to where we know he can be. Mike White will be Salas starter Sunday. The Dolphins likely to start rookie QB. Skyler Thompson Miami, who liked the Jets, has lost five

in a row. You can still make the playoffs with a win and in New England loss in Buffalo, Johns Dashware Bloomberg Sports Maybe, hey, John, thank you, and the Bloomberg Sports Report was brought to you by Audi. You don't let someone else drive off in the autie model you've always wanted. Visit your local Fry state autie dealer to get behind the wheel of yours today, or visit outie offers dot com for more information, such a for Day three of voting for Speaker of the House on

Capitol Hill. Just ahead, first, we'll take a look at futures. They're starting to get some traction here. SMP futures up six point, staff futures up thirty. Nastac features now up a quarter percent, up twenty eight points, 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

on Nathan Hagar. We are coming up on day three of voting in the U. S. House of Representatives on whom to elect as a new speaker. Kevin McCarthy, the House Republican leader, has failed to pick up any support after six straight rounds of voting. For this point, there is little end in sight to the standoff, with twenty or so now holdout Republicans. It's get something of an

international perspective on what's happening in our nation's capital. Julie Norman joins US live from London this morning, co director of the Center on US Politics at University College London. Juliet's great to speak with you once again. We heard President Biden yesterday say the dysfunction on Capitol Hill isn't a good look with the rest of the world watching.

So how is this standoff being viewed from where you said? Well, good morning, Nathan, Yeah, it's interesting I mean, as as we know from the US, this is such an unprecedented situation. So I think for people overseas just trying to underscore that this is not usual, and everyone, just like Americans, trying to see where will this go. I mean, this isn't obviously the same um level of concern as say, I use some of the incidents we've seen over the last two years, say January six, But it is just

a question of what is happening with US politics? Can Republicans get it together? And what happens when the Congress is essentially not functioning for days or even weeks on end. I know you've been watching this as since it's been unfolding, even before the voting began, when presumably Leader McCarthy was doing a bit of horse trading with some of those holdout Republicans who now seem determined to block him from becoming speaker. Do you see any path to a compromise

here within the Republican Party in the U. S. House? Well, Nathan, it's interesting. I mean McCarthy has already made multiple compromise, as you said, before the vote, you know, um agreeing to measures such as allowing a vote to House the Speaker with just five members of the party voting to do so, making some other concessions. But I do think that we heard some some chatter that last night some

further negotiations have been going on. Some of the demands of the oppositionists has been for allowing that vote to House to Speaker from just one member of the party. That's apparently something that McCarthy is considering that that would make UM that speak composition very very attenuous to hold onto. UM. There's requests to have more of this particular group on the House Rules Committee UM and pushing different kinds of

floor votes. So these are still some of the demands so to speak, that we're uh, not yet agreed to buy McCarthy Again, there's some murmurs that that those might be negotiated overnight, So we'll see what happens, and they reconduing it noon today. Yeah, while we wait for that reconvening, Congress remains out of stand still. I can't do anything until they elect to speak. Er, what is this situation foretell potentially about this Congress's ability to get anything done

over the next two years? Yeah, what, we already knew that it was going to be tough. With the very slim majority for Republicans, that obviously legislation would be uh, you know, tough to get through, and that even the party would be quite beholden to any small group within it, such as this group of twenty that we're seeing now. I don't think anyone thought that leverage would be wielded

quite as heavily, quite so soon. But it's a very clear indication that whoever ends up in the leadership is going to really be be governing with almost with a gun at their head. That they know the leadership can

be pulled out from under them very quickly. They know they're gonna have to make a lot of compromises to get any votes, and we can expect that issues like the budget, issues like the debt ceiling will be um you know that that no holds will be barred on on making concessions and trying to force compromises on those issues.

I mean, when you use an analogy like that of speakership with a gun to their head, I mean, we know that Kevin mc carthy has had this ambition for years, but if he does step aside, I mean, is there anyone who's going to be willing to step forward into this kind of fractiousness. Yeah, I think it's Yeah, I think that obviously. That's that's been the challenge for this whole week, is there's there's no clear alternative. I mean, you we obviously have heard, you know, Steve Schleecy could

fall into that role. Some have said Jim Jordan's. I think even they would be very hard pressed. Um. You know, Jim Jordan especially would be seen as very much a firebrand in a position that's, you know, a very different kind of role than that. So I think the Republicans are up against it with who will be able to

take that role and stay in that role. And my guess is that, you know, it wouldn't be It wouldn't be unsurprising if we see that role shifting several times over these next two years, especially if the rules changed with how they might be ousted. Kind about thirty seconds left here, Julie, But what do you make of Brian Byron Donald's Republican alternative emerging yesterday? Where did he come from? Yeah?

So Donald, you know, he's only a sophomore. He was elected in twenty to the House um from the state of of of Florida. And it's someone that I think, you know, many thought maybe down the line would be in the leadership position, but certainly very premimature to see that now. Again, he's a name that was floated, I

think more as a placeholder than anything else. I think would be very hard to get all Republicans behind him, but he was seen as an alternative to say, Jim Jordan's other names that were being floated just to kind of carry the votes through this week. All right, well, we'll see if there's any further movement. Hasn't been much of that over the last two days, but we continue to monitor at all on Capitol Hill. Julie Norman with the University College London Center on US Politics. Great as

always to get your perspective. Thanks again for being with us this morning. Futures starting to move a bit higher now we have SMP futures up six points, STA futures up twenty nine. NASTAC future is a gain of three tenths percent, now up thirty points. In the tenure Treasury is down one thirty second, you're three point six. This is Blimberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com. The Bloomberg Business and

at Bloomberg Quicktape is a Bloomberg business flash. And I'm Karen Moscow. And futures are higher this morning, SMP futures at the tenth of upper center five points and down futures that will change nasday futures up two ten percent or twenty five points of the tenure Treasury down one thirty second, you know, three point six eight percent. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael tar In.

The US House were resumed session later today after Kevin McCarthy and GOP dissidents failed to reach a deal on the California Republicans bid to become a speaker. Pope Francis is at the funeral for former Pope Benedict NBA. The next one, the Nets and Barriers lost the Hockey Action. The Devil's One Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists, analysts more than a hundred countries. Michael bar this is

Bloomberg Naked. Thanks Michael six two on Wall Street. I'm Nathan Haggard. This is Bloomberg Daybreak. I want to shift gears now to a very specific part of the US economy. As growth slows, one area of investment is peaking some interest. Latinos are the fastest growing demographic of US entrepreneurs, and Latino owned businesses have historically seen under investment, but that may be set to change. Bloomberg's Lisa Matteo has more

in this special report. The total economic output of US Latinos was two point eight trillion dollars in Yet, despite being a key driving force of the US economy, experts say the capital isn't flowing towards the growth. According to the Latino Business Action Network, Hispanic owned businesses have grown forty four percent in the last ten years, compared to just four percent for non Latinos, but less than two percent of the available venture capital funding in the US

goes into this cohort. This is the best economy in the world that free and prices of it largely excludes small businesses and minority owned businesses. Even today, Romerica Vassos, as the President and CEO of the United States Hispanic Chamber of Commerce, than a big part of it. I think it's just relationships. It's networks, you know. I hate

to say it, We're largely invisible. In order to make those connections, Anna Veldez, president and CEO of the Latino Donor Collaborative, says more vcs need to get out of their comfort zone. You need to start reaching out to places where you actually never reached. People that may not be as well versed, that may not come from your environment, that may not look like you, that may not talk like you, but there are that are making a lot of money. Anthony Alcasar is finding himself in the middle

of the struggle. His company Mr Tortilla is number one on Amazon. They've expanded their product line and just opened a second factory. My projections are thirty millions of tween three million millions, and I can't get a fish shaped, he says. The offers he has received include a majority stake in his business. We worked a whole life for this, and so if I lose control ownership now, I can guarantee that they're going focusing philosophies and run our business. Await.

We want to run it. That's why Latino ventured capitalists and banking and community lenders and c D Advice Unity Development and Finance Institution. We've got to get them to step up. Latitude Ventures is doing just that. The company recently launched a one million dollar fund focused on Latino founded early stage businesses. We're looking hard. We're creating the pipeline. We're creating the visibility so that any Latino and Latino that has been shut out that they can come here

and they're gonna get a fair look. Company president sold through. He has his own prediction. My bed is between now and the end of the decade, a trillion dollars a capital should be flowing here so that we can grow GDP at a highly competitive rate versus doing it the same way. Valdez puts that growth into perspective. If Latino's got the same proportion of credit as a whitesar given, it would translate into adding three point three trillion of

revenue of companies in this country. But it's not only venture capital funding. L B a N reports the odds of loan approval from national banks are sixty percent lower for Latino owned businesses. Industry leaders say it comes down to diversification. It's a proportionate representation at all levels in the bank, from the board all the way to the c suite, all the way to the executive branch, and then to the branches. Actress, singer and entrepreneur Jennifer Lopez

is looking to change the playing field. Lopez launched Limitless Labs to raise funds for Latina entrepreneurs, including a partnership with Goldman Sachs, and this past June, Lopez partnered with Gramine America to help distribute fourteen billion dollars in loans to six hundred thousand Latina business owners by the future of this economy will depended on small businesses and Latino

owned businesses because of share demographics. According to the US Census Bureau, more than half of the total US population growth between and came from Hispanics, and with Latino entrepreneurs starting small businesses faster than the rest of the startup population, the rising tide will lift all boats in New York. I'm Lisa Matteo, Bloomberg Radio. All right, Our thanks to Lisa Mateo for that special report, along with producer Sebastian Escobar.

SMP futures right now are higher by three points. Staff futures up ten NASTAC futures up twenty points, the ten. Your treasury is down to thirty seconds yield three point six nine percent. We'll get a fullard check of markets, just a head plus this morning's top stories and your local headlines. First, we want to check in with Bloomberg meteorologist Rob Carolin for a look at our weekend weather forecast. Patchy fog this morning will give way to cloudy sky,

Temperatures a little cooler today around the Tristead area. It's fifty to fifty five this afternoon. We'll have clouds and maybe a shower overnight. Those five turning partly Sunday. Tomorrow, high pressure heads our way. We're forty five to fifty, partly sunny in forty five Saturday. It remains partly sunning into Sunday, but cooler Sunday around forty I'm Rob Carolyn

with your weekend forecast. I'm Bloomberg eleven three oh broadcasting live from the Bloomberg Interacted Broker's studio in New York. Bloomberg E loving Freedom to Washington, d C, Bloomberg N one to Boston, Bloomberg one oh six one does San Francisco, Bloomberg sixty to the country. Sirius XM to the one nineteen and around the globe, the Bloomberg Business app and Bloomberg Radio dot com. This is Bloomberg Daybreak. Now we're coming up to six thirty on Wall Street. Good morning.

I'm Nathan Hager and I'm Karen Moscow, and we are just about three hours away from the open of US trading. Time for the five things that you need to know to start your day. Brought to you by i b k R. Indirective broker's clients are an interest of up to three point three percent on the idle cash and their brokerage accounts. Visit ib k R dot com slash interest rates to learn more. Rates subject to change at first. The House of Representatives has adjourned once again after six

rounds of voting without electing a speaker. Twenty Conservatives are blocking Kevin McCarthy's path to the speakership. Now the standoff is drawing negative attention from President Biden. It's embarrassment for the country. I mean literally making a part of this reality, President Biden says, the GOP does function is not a good look to the rest of the world. To Lawmakers reconvene at noon today for a seventh round of votes assenting Republicans. Karen don't have a specific candidate in mind

for the speakership. That's according to former Indiana Democratic Representative Tim Rohmer, who tells US gop TO centers just want to oppose McCarthy. These four or five or twenty see this as a real victory, just taking McCarthy down. Former Congressman Tim Rohmer spoke on Bloomberg Sound On with Joe Matthew. You can catch the show weekdays five pm. E Stern on Bloomberg Radio. Another major story we're following this morning,

Nathan involves those job cuts at Amazon. The company plans to eliminate just over eighteen thousand rolls, more than was initially announced in November. Most of the cuts will come in Amazon's recount division and human resources department, and so the broader economy. Karen, all eyes remain on the FED. The Central Bank is affirming its resolved to bring down inflation, and Bloomberg Steve Rappaport joins US Live with margod Morning. Steve,

Good morning, Nathan and Karen. Despite that resolve, policymakers say they're not afraid to keep interest rates high, at least in the short term minutes from their last meeting. Note in unwarranted easing of financial conditions, especially if driven by a misperception by the public of the committee's reaction function, would complicate efforts to restore price stability. The Central Bank's goal is to eventually bring inflation down to two percent

while keeping the economy out of a recession. Live in New York, I'm Steve Rappaport Bloomberg Daybreak. All right, Steve, thanks, So the SNP and nasdacs shook off FED caution yesterday, snapping two days of losses. But Morgan Stanley chief US equity strategist Mike Wilson says, with earnings around the corner,

investors need to gear up for rough days ahead. We're gonna get a nasty earnings recession, and so the companies that can deliver on the cost deficiency are the ones that are going to continue to perform until you fully twice you know, whatever this downturn on earnings are going to be. And Morgan Stanley's Mike Wilson thinks stocks could decline more than twenty percent from current levels. And that's the five things you need to know to start your day.

Brought to you by Interactive brokers and futures this morning. They're little changed SNP and DAL futures anyway, Nasty futures are higher. They're up to tens of a percent. They've been adding to their gains, up about nineteen points right now. The decks in Germany has little changed, and your treasury down three thirty seconds. You have three point six nine percent and the yield on the two year four point three eight percent trade. I had your latest local headlines

plus a check of sports, and this is Bloomberg. Thank you, Karen sixty one on Wall Street, and Michael Barr is back with us for a look at what else is going on in New York and around the world. Good morning, Micaol, Good morning. Nathan Mourner's forward into St. Peters Square for the funeral of former Pope Benedict. Bell's told and the crowd applauded as Paul Bears carried out Benedict's cypress coffin out of the basilica and rested it before the altar.

Helen Alvary is a George Mason University professor. He's going to be remembered as one of the greatest intellects in the history of the Church, which is saying something in two thousand years, Uh, he is going to be the person who pursued all the great questions in you know, more than sixty five books and probably hundreds of articles. Heads of state, royalty and clergy from around the world flocked to the Vatican. It is a war of words between New York City Mayor Eric Adams and former Mayor

Bill de Blasio's administration. Adams is calling on his predecessor to stop his team from criticizing the current administration. I am so tied of the previous administration and the antics, Adams slammed the Blasio's former spokesperson, who has been increasingly critical of Adams on Twitter. The mayor said they had eight years to do their job. Once they're gone, their

experts on everything. President Joe Biden says he intends to visit the US Mexico border next week for a firsthand look at conditions as his administration contends with a surge in administration in migration. I should say. Rick Singer, the mastermind of the nationwide college admissions bribery scheme that ensnared celebrities and prominent people, was sentenced to three and a

half years in prison. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty hundred journalists analysts more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg, Nathan. Okay, Michael, Thank you. About six thirty three on Wall Street time for the Bloomberg Sports Update, brought to you by Trice stayed out. Good morning, John stanhow Morrity. Nathan san Antonio's first came to the York lost by thirty six at Brooklyn. It

was much closer at the guard. This first had a chance to tie the game at the end. Next held on one, seventeen fourteen. Jalen Brunson scored thirty eight and Nick's played tomorrow in Toronto. The nets twelve game winning streak came to an end in Chicago. The Bulls won one twelve In the loss, Kevin Durant forty four points, Kyrie Irving added twenty five, Seth Curry twenty two. Rest of the team combined for only twenty one. Donovan Mitchell's

first game since he poured in seventy one points. He was held to twenty but the Calves won over Phoenix. Jannison of the Compo, coming off a career high fifty five points, settled for thirty at twenty one rebounds. Tennessis Milwaukee beat Toronto. Lakers played without Lebron James, he was out sick. They still beat Miami and Detroit hit a three pointer at the buzzer for an upset win at Golden State, who was only lost twice all year at home.

Devil's a five one win at Detroit tomorrow. Hamlin said to be showing signs of improvement from his cardiac arrest Monday. In Cincinnati. Quarterback news going to week eighteen, Washington will have its third different starting QB in the last three weeks, now going to the rookie Sam Howell. Arizona is turning to a fourth different QB, David Blow against the red hot forty nine ers. Chicago starts Nathan Peterman for the injur Justin Fields. Miami will likely go with rookie Skyler

Thompson against the Jets. It's not known yet of Jalen Hurts will return from injury. Philadelphia, the Eagles hosted Giants. Jim Harbaugh spoke with the Carolina Panthers. What said he expects to remain as the coach at Michigan, John Stash, We're Bloomberg Sports. Nathan, all right, John, thank you. The 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 Try state Audie Dealer to get behind the wheel of yours today, or visit Audie Offers dot com for more information. Right now, SMP futures are up three points Staff futures up to NASDAQ Future is gaining some ground here up twenty points ten. Your treasuries down four thirty seconds held three point six. Nim X screwed up two point three percent or a

dollar sixty seven. A barrel of West Texas Intermedia right now cost seventy four dollars and fifty one cents 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 in our three hundred affiliate radio stations around the world. I'm Steve polus k K and ex in Los Angeles. We're talking about Disney Plus

bringing IMAX quality sound to Marvel movies. You watch a Home. I'm Corney donahoean kat r h in Houston. Excell And says lower oil and natural gas prices had a negative impact on its most recent court I'm Jeff Bellinger and on w tv N and Columbus, I'll be reporting on the latest manpower survey that says job creation may slow song in the first quarter, but it will not stall as employers continue to deal with a global palan shortage.

I'm Stephen Carroll and Bloomberg DAB Radio in London. We've been reporting on the Prime Minister laying out the five pledges he wants the electorate to judge his government on, including fixing inflation and the economy. I'm at Tory on w w J in Detroit. I'm reporting General Motors is wanting in the Dot Autos Feller in the US, and those are some of the stories are dred Bloomberg journalists and analysts are working on this morning around the world

sixty on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Starting this week, travelers on US bound flights from China will have to be tested for COVID nineteen. Other countries are implementing similar new restrictions. Given the scale of the outbreak currently ravaging China, such moves make sense, but on their own they aren't enough to manage the global risk

posed by the virus. The US, for its part, should maintain its efforts to supply China with more potent mr NA vaccines. It should also lead a swift, coordinated global effort to boost genetic sequencing, which can help track variants. Critics of testing before travel are right. It won't prevent all transmission, but combined with common sense precautions, better surveillance, and more vaccines, it should help keep the worst effects of the virus at bay. This editorial was written by

the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or opi en go on the Bloomberg terminal. These has been Bloomberg opinion, and you can hear Bloomberg opinion editorials every weekday. At this time. Terminal customers can read more at O P I N go. Another story we're following this morning involves Dell. The PC maker reportedly wants to phase out semiconductors made in China by twenty four this according to Japan's Nika news service.

Dell is also reportedly telling its suppliers to significantly reduce the amount of other components if they produced in China. Dell reportedly wants to diversify its supply chain because of concerns about tensions between the US and China. Right now, futures are moving a touch higher. SMP futures are up four points, staff futures up eleven now and NASTACK futures up a quarter percent again of twenty seven points ten. Your treasuries down four thirty seconds. The yield three point six.

Markets headlines and breaking news twenty four hours a day at Bloomberg dot com for Bloomberg Business apt and at Bloomberg Quick Tape. This is a Bloomberg Business lash and I'm kring Moscow. This update brought to you by Innovation Refunds. This is your daily reminder from Innovation Refunds to apply for a payroll tax refund. If you're a 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 and futures. They are a little change this morning. Let's go the first Word breaking news desk for today's morning call. Here's Bill Maloney, Bill, good morning, Hey, good morning. Can that's right. US futures are quiet right now, A death futures down three points, smps are higher by three and as A futures rise by seventeen. The US ten yeeld at three point seven percent, gold is down six Oil trading in the green, and

bitcoin is little changed. Hong Kong rose one point three percent overnight, while up markets are also little changed this morning, and back in the US on the economic FRINDAYDP employment change at eight thirty initial jobs claims and at SMP Global Services and Composite p m I S. Regarding earnings this morning, look for Cantagra, Walgreens and Consolation brands to report in the pre market, and another news Amazon to

cup more than eighteen thousand jobs, wrapping things up. C andMe was raised outperform at KRED, Sweet Baxter was cotch to market reform over at Raymond James live from the first breaking News Descomb, Bill Maloney care great, Bil, Thank you and to hear live breaking news of your Bloomberg type squawk on your terminal SCU A w K. That's a Bloomberg business flash. Now here's Michael Barr with more

on what's going on around the world, Michael Karen. The House of Representatives will try now for a third day to lock in a speaker. Disagreements among Republicans led to Kevin McCarthy losing now a total of six votes. Pope Francis is resigning over a funeral mass for former Pope Benedict before thousands of mourners in St. Peter's Square. Officials in California ordered evacuations in high risk coastal areas as

a huge storm barreled into the state. It was bringing high winds and rain that threatened widespread flooding and knocked out power to more than one hundred thousand people in the NBA. The next one, the Nets and Warriors lost in hockey. The Devil's One Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven hundred journalists and analysts and more than one hundred twenty countries. I'm Michael Barr, and

this is Bloomberg, Karen, Michael Barr. Thank you. It at sixty two on Wall Street. Let's turn to news and science and technology now with the Bloomberg and j I T Stem Report. And here's just making news in science, technology, engineering, and math. Shortages of computer chips in other parts continue to hobble the US auto industry last year, contributing to vehicles sales dropping eight per cent from one to their

lowest level in more than a decade. Automakers reported that they thirteen point nine million cars, trunks, SUVs, and vans last year, as the part shortage limited factory output amid high demand for new vehicles. It was the lowest sales number since twenty eleven, when the economy was recovering from the Great Recession. The Security is that Exchange Commission is pushing back on Finance US's plan to buy bankrupt crypto lender Voyager Digital. The deal is valued at about one

billion dollars in accord filing. The SEC says the agreement does not include enough detail about Finance's ability to close the deal. Finance says it will provide any requested information, and del reportedly wants to phase out semiconductors made in China by four According to Japan's NAK, the computer maker also has told suppliers to significantly reduce the amount of other components produced in China. Della is said to want to diversify it supplied chain because of concerns about US

China tensions. And that's a Bloomberg n j I t Stem report. Nathan, all Right, Karen, thank you at sixty four on Wall Street Time Now to check it's going on in d C. Some of the top stories in our nation's capital include the ongoing stalemate in the U s. House of Representatives, a deal on Kevin McCarthy speaker bid

remains elusive. Also making news the Biden administration urging the Supreme Court to back student debt belief, and President Biden planning to speak about border security today as he plans a trip to the southern border next week. Let's bring in Bloomberg Government congressional reporter Jack Fitzpatrick, who of course has been following the ongoing turmoil on Capitol Hill all week long. Jack, doesn't seem like any daylight is breaking through for Kevin McCarthy and these what twenty or so

holdout Republicans. Do we expect that to change it all today? Uh? You know, they're still talking. They they, according to McCarthy, have had some good conversations and in fact, Chip Roy, who's one of the more vocal detractors, came out of a meeting late yesterday saying it was it was a good conversation. They're not there yet. Uh. You know, they declined to ho old another vote on the speaker after some of those further negotiations yesterday because it didn't seem

like it would make a difference. But you know, I think they may be sussing out who's absolutely one percent dug in against McCarthy and who is interested in continuing to talk. And in fact, the vote that they held at the end of the day to adjourn was a little bit of a procedural success because at least the holdouts didn't continue to demand further votes rejecting him, and essentially worked with the rest of the party to just

let the issue die for that day. I was a very close vote, but it does look like Lauren Bobert, Andy Biggs, Matt Gates, and Eli crane are are the four that McCarthy's not gonna get. He can afford to lose four, but he'd have to win everybody over. So

it's still a tough situation for McCarthy. Uh. And they're gonna just have to continue to talk about this and while we wait for any potential resolution here Jack, you've got a piece on the Bloomberg terminal this morning about what this standoff could potentially mean when it comes to

this Congress's ability to actually get necessary legislation done. Yeah, this is I think the first illustration of a huge challenge for the next two years, given the very very narrow house majority and a win of conservative sort of anti leadership Republicans who are not going to go along with whatever the whip count says they should do. And that's very important for a debt limit vote that's going to have to happen maybe midway through the year or

into the third quarter of the year. UH. And also government funding and trying to avoid a shutdown in October. So they've had a little time to get their ducks in a row. But you know, Ralph Norman, for example, who's one of the holdouts, UH, said he wants a speaker who is willing to shut the government down. Um, this this is going to be very, very difficult when it comes to must pass pieces of legislation. You know.

I talked to one former staffer who worked for people like New Gingrich and Dennis Haster when they were a speaker, and she said, it's very different now because the the anti leadership Conservative Freedom Caucus wing is much less interested than in previous generations in in calls to get the

party to ban together. So the whip count on must pass bills is going to be very difficult going forward and something to watch, particularly for markets when you think about the implications for the full faith and credit of this country. But in the meantime, Jack, there was another important story developing overnight in Washington. The Biden administration UH making its argument now to the Supreme Court about student deck relief. Yes, they've basically filed their papers arguing that

the student debtler relief planned by the Biden administration is legal. Uh. The actual arguments before the Supreme Court are set for February, so it'll take a while for for for us to get even to the real arguments. But this is the beginning of that process essentially, UH, and they are justifying this with a law that allows the executive branch to suspend debt debt payments by the student debt payments under the authority of the Secretary of Education during national emergencies.

They're pointing to the economic effects of the coronavirus pandemic, So there's there's an argument over whether that law actually applies here. There's also an argument over whether these states have standing to sue, because you have to show that you're being directly harmed by the policy. They're arguing that UH nonprofit that contributes funding to Missouri is being put

into a financially risky situation. So there's gonna be a couple of arguments on whether a law that allows a pause in payments under national emergencies actually applies to this scenario, but also whether the states have the standing to sue. Alright, Bloomberg Government Congressional reporter Jack Fitzpatrick keeping a surprised of all developments in the nation's capital. Of course, we've been

watching it very closely with the standoff over the speakership vote. Jack, thanks for this and you can read more at Bloomberg dot com or on the Bloomberg Terminal and follow the latest on Bloomberg Radio in Washington. Bloomberg and one oh five point seven f MHD two SMP futures right now

hired by four points. Staff Future is a little change to the upside now a fifteen and NASDAC Future is a gain of two tenths per cent points higher for the Nasdaq futures contracts ten Your treasury is down three thirty seconds right now, yield three point six This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, at Bloomberg Business Outland, at Bloomberg Quick Tape is a Bloomberg Business Lash and I'm

Karen Moscow and futures are gaining strength now. SMP futures of two tens of upper center seven points after being little changed for much of the morning. GAL Futures up a tenth of upper cent or thirty two points, and nastack Future is adding to their gains of three tens of upper cent or thirty five points. The decks in Germany little change. Ten year treasury down to thirty seconds. You have three point six nine percent the yield on

the two year four point three eight percent. Nine X screwed oil is up more than two percent of a dollar fifty one at seventy four dollars thirty five cents of barrel. Comex gold is down four ten percent or six dollars ninety cents at eighteen fifty two. Ten announced the Euro one point six one one against the dollar, British pound one point to zero to zero the end one thirty two point four nine, and Bitcoin that will change at about sixteen eight hundred dollars. That's a Bloomberg

business flash. Nathan, Okay, Karen, thank you. At six fifty six on Wall Street. Let's take a look at some of the names moving in the pre market individual stocks. For that, we're joined by Bloomberg Radio and TV Markets correspondent Create Goopta to create. Of course, the big corporate news this morning is the word of even more layoffs from Amazon, and that's certainly moving that stock this morning, and a similar reaction to es off salesforce yesterday when

they workforce. Essentially, even though there is a human element to this, putting that aside, the stock market actually tends to reward news like this. The idea here being that cost efficiency is really at its core. Now that you actually have fewer employees, perhaps you can reallocate those funds to research and development, for example, which is a major part of the tech sphere as well, but as well

as other kind of cost efficient metrics. Nevertheless, A m z N as your takers shares are rallying off that news about two point eight percent. Like you said, they're laying off more people, over eighteen thousand employees, his biggest corporate workforce reduction ever, Nathan. Of course, like I said, this does of course follow salesforce news from yesterday where they were going to cut ten percent of their workforce. A quick check on those shares of about three tenths

of one percent as well. CRM is the taker and of course a major doubt component as well, But Nathan, it's not the only one we have to keep an eye on. X on Mobile is also rallying this morning. X o M is the taker up at one point one percent. Now, it's kind of interesting the story because on the surface, they're saying that they're expecting lower oil lower natural gas prices are going to at the end of the day hurt their fourth quarter earnings that are

due later this month. But at the end of the day. They are also a major refining business, and they're saying that while actually some of the refining capacity might actually be better in the fourth quarter. So something that's already been kind of priced in is as you start to see these oil contracts drop lower and lower, these oil companies have also already kind of priced that into some

extent um. And it looks like the refined capacity was the real question just given all of the kind of natural disasters we've had in the fourth quarter of last year, and how a lot of these refining capacities in the Gulf of Mexico but also on the coast of California would be able to kind of keep up with it. So XOM is your ticker up one point one percent? A little bit of a cybe relief there, And Nathan,

I'll leave you with one last one. The Western Digital a Bloomberg report, a bloomberg scoop, if you will, climbing six point four percent of this morning w DZ after

reporting um that they might restart merger talks with Japan's Kiuxia. Okay, Bloomberg Radio on TV markets correspondent, pretty good to keeping an eye on individual movers for us this morning on a morning where we've kind of seen futures trade a little bit flat, though we have seen Nastack futures particularly start to gain a little bit of traction this morning. Right now, there are up three tenths per cent, or thirty one points on the Nastack futures. SMP futures contracts

touch higher, up five points. That's a gain of a tenth percent right now. Dow futures are little changed higher by seven points this morning. The ten year treasuries down to thirty seconds yield three point six nine percent. Yield on the two year four point three eight percent. Creany mentioned EXN moving higher. We're looking at crewed prices. They're moving higher as well. Ni'm X screwed right now is up two percent at seventy four dollars thirty one cents

of barrel. This is Bloomberg Daybreak on Nathan Hagar along with Karen Moscow, and it is six fifty nine on Wall Street. Stay with us Bloomberg Surveillance, So Tom Keene, Jonathan Farrell, and Lisa Abramo. It starts right now, live from the financial capital of the world, broadcasting across the lobe. This is WBBR New York, Bloomberg. He living Thrio. Nothing goes really changed between the end of two, in the first day of three and flat