Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with the latest on the situation in Venezuela, following an extraordinary weekend of air strikes in and around Caracas and the capture of President Nicolas Maduro. With questions swirling about what comes next. President Trump says the US needs total access to Venezuela.
We're going to run everything. We're going to run it, fix it. We'll have elections at the right time. But the main thing you have to fix it is a broken country.
President Trump spoke aboard Air Force One on his way back to Washington from mar A Lago, where he oversaw the weekend strike. The President says the US will work with acting Venezuelan President Delsea Rodriguez, though he says he has not spoken to her. Rodriguez put out a statement last night inviting the US to work with her on a cooperation agenda. It's a contrast to her initial reaction calling for Maduro's return.
As we hear from Bloomberg's Jill.
Deesis definitely a change in tone from her initial statements which we're denouncing the actions of the US and calling for Maduro's return. But I think the really important thing to remember here is that, I mean, Trump seems them know, certainly content with leaving her in charge, So you know, it kind of points to that as being potentially a factor there in her now talking about cooperation.
It's Bloomberg's Jill Deesis.
As for Maduro, he is due to appear in Manhattan federal court today to face charges that could keep him and his wife behind bars for the rest of his life. A trial on narco terrorism charges is not expected until next year. It's unclear if Maduro has hired a lawyer for today's hearing well Nathan.
Secretary of State Marco Rubio is emerging as the Trump administration's point man on Venezuela. He appeared on several of the Sunday political shows to say, the US is running where Venezuela goes from here.
There's a quarantine right now in which sanctioned oil shipments. There's a boat and that boat is under US sanctions. We go get a corridor or we will seize it that remains in place, and that's a tremendous amount of leverage that will continue to be in place until we see changes not just further the national interest of the United States, which is number one, but also that lead to a better future for the people of Venezuela.
And that as Secretary Rubio on CBS has Faced the Nation, Republican hawks are rallying around the administration following the weekend of texts and Intelligence Chairman Tom Cotton was also on Face the Nation.
This was an excellent operation only the United States military could have pulled off, but they couldn't have pulled it off with the support without the support of the professionals and the intelligence.
Community Republican Senator Tom Cotton, but isolationists within the party like Congressoman Marjorie Taylor Green are criticizing the strike.
This is the same Washington playbook that we are so sick and tired of that doesn't serve the American people but actually serves the big corporations, the banks, and the oil executives.
Congressoman Marjorie Taylor Green appeared on NBA sees Meet the Press, and you can hear Meet the Press and Face the Nation every Sunday on Bloomberg Radio.
Well here in the US plan to revive Venezuela's oil industry could take years and cost up to one hundred billion dollars.
Bloomberg's John Tucker joins us at that part of the story.
John good Morning and Nathan Experts say rebuilding Venezuela's oil infrastructure enough to lift output back to its peak levels of the nineteen seventies would require companies that include Chevron to invest about ten billion dollars a year over the next decade or right now, Chevron shares up eight percent pre market. Chris Sabatini, senior research fellow at Chatham House, says there isn't much left of the oil infrastructure in Venezuela.
Pullm is and this was the case in I Rock too.
You're looking at, basically, in the case of Venezuela, more than two decades on an autocratic, corrupt regime.
At Venezuela's oil parse, the equipment is in such poor shape it takes up to five days to fully load supertankers. Oil rigs have been abandoned, spills go unchecked, drilling pans have been ransacked, Fires and explosions have gutted equipment. There Venezuela does sit atop the world's largest oil reserves, but output plummeted during the twelve year term of Nicholas Maduro.
The nation currently produces about one million barrels a day, comparing that to nearly four billion barrels in nineteen seventy four. And if output does increase, oil prices may decline, offering less incentive for the oil companies to invest in New York. On John Tucker Bloomberg.
Radio, all right, John, thank you. While the Chinese Foreign Ministry is expressing concerns about the capture of Venezuela's Nicholas Maduro, and here's spokesman Lyn Jan speaking through an interpreter earlier in Beijing.
Some Tuji China express his grave concern of the US seizing Nicholas Maduro and his wife and taking them out of the country. The US move is in clear violation of international law and the principles of the UN Charter. China caused the US to enshare personal safety of President Nicholas Maduro and his wife, released them, stopped heppling the government of Venezuela and resolve issues through dialogue and negotiations.
Spokesman Lend Gion says China is committed to deepening cooperation with Venezuela well.
For his part, care and President Trump is warning other drug producing nations in the Western Hemisphere that he won't long tolerate the flow of illegal substances into the US. Here he is again a bord air Force one.
We have a very sick neighbor. He's not a neighbor, but it's close to a neighbor, and that's Venezuela. It's very sick. Colombia is very sick too, run by a sick man who likes making cocaine and selling.
It to the United States.
And he's not going to be doing it very long.
Let me tell you.
President Trump rerefurther to Colombian President Gustavo Petro, a frequent Trump critic, who denounced the weekend raid.
Then, the events in Venezuela have spark new questions about America's stands toward Europe. Denmark's Prime Minister Metef Frederickson is urging President Trump to stop threatening to annex Greenland. The comments come after President Trump again doubled down that he wants to take over the country right now.
Greenland is covered with Russian and Chinese ships all over the place. We need Greenland from the standpoint of national security, and Denmark is not going to be able to do it, I.
Can tell you.
And Greenland's elected a leader. Jens Frederick Nielsen posted on Facebook saying there's no reason for panic as Greenland's position is firmly anchored in international law.
No, we're seeing immediate reaction to the developments in Venezuela across several markets. Karen spot gold has climbed above forty four hundred dollars an ounce right now, it's at forty four to thirty one, while silver is up nearly five percent.
Well surprising to some, Nathan, we are not seeing a dramatic move in the oil sector in fact right now, and Nimex crude oil is a little changed at fifty seven dollars twenty nine cents a barrel. Steven Stepsinski leads Bloomberg's team covering energy.
I think overall, you just look at what is being produced out of Venezuela, and they produced some one percent of global supply, and so where they stand in the grand scheme of things. If you were to cut out their supply, it can be easily replaced. But also there's this look at, well, they have all these reserves, can they add that supply as well? And there's expectations that they can't really add the supply very quickly either for a number of reasons. So the market has really shrugged
those off. There's sort of been a wait and see situation and.
In a separate no Bloomberg Stevens step Sinski says at a meeting yesterday, opek Plus stuck with plans to pause supply increases in the first quarter, and.
Karen US Airlines have begun rebuilding their Caribbean operations after the military incursion in Venezuela suggared airspace closures across the region. American Airlines and Delta are among those that have added extra flights and seats to accommodate displaced customers. Hundreds of flights were canceled over the weekend after the Federal Aviation Administration restricted parts of Caribbean airspace.
Time now for look at some of the other stories making news in New York and around the world, and for Never joined by Bloomberg's Michael Barr Michael, Good Morning.
Good Morning. Karen. Congress returns to Washington this week. The Senate returns today. The House comes back Tuesday. They will address government funding, with a January thirtieth deadline to pass a bill or face another government shutdown. In addition, Congress must deal with healthcare now that healthcare tax credits under the Affordable Care Act expired last month. Millions of Americans are unable to afford health insurance without the sub disease.
Senate Minority Leader Chuck Schumer says Democrats are willing to work with Republicans on their plan to bring health care costs down, hinting that refusal to do so could impact the GOP in the midterm elections.
The Republicans have screwed this up to a fairly will.
If they can find a way out of the mess, we want to work with anybody to lower the prices.
Senator Schumer spoke on ABC's This Week Heard Sundays on Bloomberg. Republican Georgia Representative Marjorie Taylor Green's resignation from Congress take effect today. There are mixed reviews about her legacy. Larry Sabato is the director of the Center for Politics at the University of Virginia.
I think it's always wrong to focus on the latest event involving a person and not look at the entirety, at least of the public career and her career. To say it's been checkered is a compliment.
Larry Sabato is with the University of Virginia. Meanwhile, local Republican Party chair Jackie Harling says Green was a fighter who gave them a voice. Green's resignation will shrink the Republican majority in the House of Representatives to six seats. Protests continue to grow in Iran over the weekend as concerns sparked by the Islamic Republic's ailing economy puts new pressure on its regime to act. Since international sanctions returned in September, Iran's currency is now in a free fall.
More than five hundred and eighty protesters have been rested. Cruz cleared mud from key California highways. Forecasters warned that more thunderstorms were on the way after downpours and high tides caused flooding, prompting road closures and rescues of people trapped in cards. Global News twenty four hours a day and whenever you want it with Bloomberg News Now, Michael Barr and This is Bloomberg Karen.
Well, well, thanks Michael.
Time now for our Bloomberg Sports update, and for that we bring in John stash Hour tris staring.
The NFL regular season is over. The playoffs begin on Saturday. There were still two spots up for grabs. Yesterday, Carolina won the NFC South despite losing its game Saturday at Tampa Bay. Atlanta's win over New Orleans created a three way tie and the Panthers won the tiebreaker. The Falcons, after winning that game, fired their coach Raheem Morris. Last game of the season was last night in Pittsburgh, a
back and forth fourth quarter. The Steelers on an Aaron Rodgers touchdown pass with a minute ago beat the Ravens twenty six to twenty four won the division. That's the Bloomberg Sports Update.
Hey with us. More from Bloomberg day Break coming up after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager.
After an extraordinary weekend of airstrikes and the ouster of Nicolas Maduro. The world is watching for what comes next in Venezuela. President Trump says, leadership in the country right now is clear.
Don't ask me who's in judge, because I'll give you an answer and it'll be very contro ration.
What does that mean we're in judge?
That was President Trump aboard Air Force one last night. This morning, we're joined by Terry Haynes, the founder of Pangaea Policy. Sharp words Terry from the President. But it does leave a question, doesn't it, of what the US in charge means in Venezuela. What does it mean?
Good morning, Hi, Good morning, Nathan.
Uh.
Bottom line is I wish I knew and that's no jab at the Trump administration, I think, but I think the policy here is a little more improvisational than a lot of people would like, particularly in markets. Uh. They are, I think, going to make this up as it goes along if they can get if they can get some sort of cooperation from the existing government, they might take that.
Uh.
I think that the existing government, from Miss Rodriguez on down is likely to be likely to be found wanting you know, the you know, people forget that it's not just Maduro that's under under indictment. Uh. And and people also forget that it's not as if this is a some sort of conventional democratic country uh, in which you know, the succession will work and you know somehow they'll, you know,
they'll manage to seer the ships. Slightly differently, the kind of change that the United States now wants in Venezuela is not to kind of change these people are poised to deliver.
I think, well, if it is the US making it up as it goes along, terry, what does that mean in terms of a potential US military presence in Venezuela and this idea of US oil companies coming in to rebuild Venezuela's vastly decimated oil infrastructure.
Well, two things. One, I think that the I think that it is very unlikely that there will be some kind of major sustained boots on the ground presence in the United States or from the United States to Venezuela. You know, might there be some sort of small, relatively small force that does specific things. That's entirely possible. I mean, but we have that all over the world in a variety of ways, in a variety of guises. So I'd
kind of look at that in the extreme. Secondly, you know, the I think what the lookd at very broadly, the the observations that what's going on in Venezuela, or what had been going on in Venezuela for that matter, in South as part of the South America policy of the administration is about oil or resources or something else. That's
both true and too narrow a focus. You know, from the national security perspective of the Trump administration, if you have to look at it holistically, meaning of understanding what the situation is. You know, pre last weekend, those competing or opposing the United States now have control of all those resources. So it is very important for this country. Our government judges that we have we have access to that as well.
Taking your point about looking at it holistically, the administration has said it's about oil and it's about drug flows out of Venezuela as well. And the president just last night aboard Air Force Verse one sent a warning to the President of Colombia, calling him a very sick man. What could potentially come next here given those potential implications, Harry.
Well, I think the uh, yeah, I've been pointing out since uh, since the release of the National Security strategy in November. Uh that what was in that document was called the Trump Corollary to the Monroe Doctrine, uh you know, had in its sites uh you know, basically reducing Chinese influence in South America. It needs to be understood that China is today South America's largest trading partner and uh and they seek to use that trade status to increase
its geopolitical influence in South America. Uh. What that means, I think for the overall region is that uh you have, whether it be in Cuba or Columbia or elsewhere. Uh. You know, the administration has now uh put those folks on notice that it is very interested in changing that behavior or having those governments fall. Frankly, and the President was very explicit about that in Cuba, but also thinks that no United States action is necessary to bring that about.
I'd suggest only there that the Cubans have proved themselves to be far more tenacious. Uh uh you know, surviving the loss of the Soviet Union, now surviving the loss of Venezuela. Uh and and you know, we'll see if they can find another benefactor.
Now, well, one of the big benefactors of Venezuela has been China, of course. I mean we've seen the Chinese Foreign Ministry come out pretty strongly against the weekend events. I mean, what could this bean for the US China situation where they're trying to keep a trade truce intact.
Well, they're they're trying, well, you know, the China. The China statement, I've had a lot of irony to it. Nothing beats the nothing beats the Russian state. And of course for irony, I'll let the listeners go look that up.
But you know what that means fundamentally is, you know, the terms of the United States competition here has been that what we're trying to do as the United States government is you know, really try to right size and push back against China adventurism and trying to influence gathering in you know, many different continents. And the administration judges that it's going to start in it's going to start
in South America. But Trump since day one has expressed interest for to kind of clean up the United States defense in the Atlantic and the Pacific. And this is why Greenland is discussed. For example, it's not just because of the resources, but also because it's got you know, it's right on the front lines, whether you look across to Europe up through the Arctic, which increasingly is more important.
But you know, we've been pushing back at China for a year now, whether it be you know, kind of pushing back against its client state Russia and Ukraine, its interests, been pushing it around and its proxies in the Middle East, and also helping our ally Japan and others in the Philippines and other others in the South China Sea.
You mentioned Greenland.
Do you think there's going to be a serious move by the US on Greenland in the short to medium term.
Now today I look at I look at this more as a means of the takeover talk of Trump's as pressuring Denmark to make some sort of a deal on Greenland. It's also it also bears noting that going back a few years, there was some interest in Greenland itself to say oparat or created different a different political arrangement with Denmark. I think both of those strings are being twanged rather unsubtly.
But I look at this as much the administration's view as much more interested in making some sort of oil minerals deal, and all the rest again, going back to China, I think none of this consider that none of this might have happened had not China kind of pulled the rare earths string here, which is still unresolved and part of the unresolved US China trade tengency.
This is Bloomberg Daybreak, your morning podcast and the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed by six am Eastern each morning, on Apple, Spotify, or anywhere else you listen.
You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three to zero in New York, Bloomberg in ninety nine to one in Washington Bloomberg ninety two nine and Boston, and nationwide on serious XM Channel one twenty one.
Plus listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Atto interfaces.
And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow.
And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Day Ray