Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg day Break for Wednesday, January eleventh. Coming up this hour No led up to the massive rains that have claimed seventeen lives in California. President Biden speaks out about classified documents in his old office as Republicans craped multiple investigations, double lines. Jeffrey Gunla says listened to the bond market, not the Fed. On races, and another big bank is set to slash bonuses. New York Governor Holkel wants to
ban natural gas and buildings. Plus New Jersey Governor Murphy calls to end double taxation of commuters to New York. On Michael bar I'm John stas shower and sports, Carlos Correa will be a twin, not a mat. The Rangers
and Devils won, the Islanders lost. That's all s Trady head on Bloomberg day Break on Bloomberg eleven Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business. Good morning, I'm Nathan Hagar and I'm Karin Moscow. If here are the stories we're following today. We continue tracking the dangerous weather
on the West Coast. More storms are headed to California as the state continues reeling from about with severe weather. Ed Baxter has the latest from our Bloomberg nine sixty newsroom in San Francisco. Just as some residents are allowed back into their homes, they are being told they're going to have to evacuate again. It is a story that's being played out from the very north to the south with a very threat of danger, pointed out by the fact that at least fifteen people have lost their lives.
Governor Gavin Newsom says three more storms at least are headed our way. We're not out of the woods. We expect these storms to continue at least through the of this month. The largest fear is in the hills and along major rivers, But yesterday afternoon even San Francisco declared a rare flash flood warning. In San Francis leus Go. I'm at Baxter Bloomberg Daybreak. Alright, and thank you for
turning to politics. Now we're hearing from President Biden for the first time since news broke that classified documents were discovered in an office used before he was elected. I've turned over the boxes, They've turned over the boxes to the Archives, and we're co operating fully, co operating fully with the review and which I hope will be finished soon and it will be more detailed at that time. And President Biden says his lawyers did the right thing
by calling the National Archives. Congressional Republicans are promising to investigate well. President Biden spoke there caring at the end of the North American leaders summit in Mexico City. That event saw the President defending policies of the border and downplaying differences with Canada and Mexico. Overtrade Lester Monson is a principle at the government relations firm b GR Group.
He says, the US is stuck in an anti free trade mentality, and if we can use this as a way to kind of open up a little bit at least two other countries that are nearby, countries that are biologically aligned with US, that's good. I would like to see you can kind of break out of a fortress America thinking. Lester months in with b GR Group was a guest on Bloomberg Sound On with Joe Matthew. Catch the show weekdays at five pm Eastern on Bloomberg Radio
and listen on demand wherever you get your podcasts. Well, turning to the markets now, Nathan stocks are coming off gains which saw the S and P five hundred close above the mark. Technical analysts cite that as a resistance level that could help define a more solid trend. Amanda got A Chief investment officer at p NCS Management, says markets continue to be driven by the FED, with the labor market just continuing to be so so strong, thinking it's really a tough dynamic for the FED. All of
this is making the Fed's job much harder. And I think it comes back to a concept we've been talking about for the better part of two and that's the perfect storm of macro headwinds that continue to swirl. The things that are injecting inflation into the backdrop are not the things that the FED policy tools and the tool kids it can easily solve. P and C said Management's Amanda Gotti says tomorrow's consumer price report will be big for the markets. Well, everyone's watching the Fed, Karen, But
should they be watching yields instead. That's the view from Jeffrey gun Black, the Double Line Capital CEO Investors, says investors should pay attention to bonds, not the Fed for the direction of interest rates, but the FED funds implied rate by the yield curve. The treasure yield curve is really become remarkable where we see that the bond market pricing shows that the Fed is not going to make it to five. They're gonna make it just under five
by mayor June. Double Lines Jeffrey Gunlike spoke there on a webcast. He says bonds are more attractive than equities right now. Well. In corporate news this morning, Nathan another bank maybe cutting bonuses. Bloomberg News has learned that Credit Suite is considering cutting its bonus pool for two by about half. The possible move comes after Credit Sweeze was forced to raise four billion dollars thanks to a string
of losses. The belt is likely more severe than at places like JP Morgan and City Group, which you're also set to cut bonuses. Also got news from Apple this morning, Karen. The company is making moves to take over production of even more key components. We get the story from Bloomberg's Jeff Bellinger. Apple's years long effort to design its own displays as nearing completion, and the company could start using homegrown screens as soon as next year. Sources tell Bloomberg.
The first devices to get Apples micro LED screens will be the top of the line Apple watches. The screens will be an upgrade to the organic LED displays that Apple currently buys from Samsung and l G. With screen production in house, Apple will be able to better customize its devices. Jeff Bollinger, Bloomberg Daybreak. All right, Jeff, thank you Weill. Disney is rolling out the first changes at its theme park since Bob Iger returned to CEO in November,
and we get that story from Bloomberg's Doug christ. Iger is undoing some of the work of his predecessor, Bob Chapek, who raised ticket prices and enter douce new reservation systems that angered many long time visitors. Soon, customers at Disneyland in California will be able to access photos taken by professionals at the park for free, rather than paying for a photo pass. The company is also offering more Disneyland tickets at the lowest rate a hundred four dollars a day.
At Disney World in Florida, guest with annual passes will now be able to enter the parks after two pm without first obtaining reservations. In New York, I'm Doug Prisoner, Bloomberg Daybreak, thanks uh SMP futures right now at nine point staff futures up, seventy one nast Act futures up,
twenty seven local headlines in the check of sports. Next, This is Bloomberg and it is currently thirty six degrees in Central Park, and it's gonna be cloudy today, highs in the low forties, and it's not gonna get much cooler than that tonight. It's time now for a look at some of the other stories making news in New York and around the world. With Bloomberg's Michael bar Good morning, Michael,
Good morning, Nathan. Governor Kathy Hokel is proposing to make New York the first day in the US to banned natural gas heating and appliances and new buildings as a way to find climate change. Holco called during her State of the State address yesterday to ban the use of
fossil fuels by the end of the decade. I'm proposing a plan to end the sale of new fossil powered heating equipment by by calling for a construction of all new construction zero emission, starting for small buildings for large buildings. Holcol also talked about mental health and affordable housing. New Jersey Governor Phil Murphy proposed offering incentives to employers for establishing work from home in hybrid staffing policies, and a bid to end the double taxation for residents who commute
to New York City. Murphy made the proposal yesterday during his annual policy address in Trent. Before our administration took office, our economic focus could be summed up as find a big company, any company, throw a big enough tax break at them to get them either to move to or to stay in New Jersey. That way of doing things came with limited successes. Governor Murphy also says he wants to expand the number of liquor licenses in the state to make the laws fair, and providing shore towns with
funding to help upgrade their boardwalks. It's day three of a nurse's strike in New York City. Nurses and Mount Sinai and Montefiora say they are on the picket lines because of understaffing issues. Do not save the days are incredibly overwhelming and stressful. At montefio Are both sides are talking and said that they are close. Former Trump Organization Chief financial officer Alan Weisselberg spent his first night in Rikers Island as he begins his sentence for pleading guilty
last year to tax fraud. Weislberg was sentenced to five months in jail as part of a prearranged plea agreement with the Manhattan District that in his office. Global News twenty four hours a day on airand on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analyists more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. Thanks Michael, and now it's time for the Bloomberg Sports Update, brought to you by tri State
out Here. Good morning, John stash Hour, morning Nathan. Safe to say no one's ever had a more bizarre off season than carlos Karea. He was a free agent a year ago, signed a late deal with Minnesota, opted out cut a deal with San Francisco, where they scheduled his introductory press conference and then canceled it hours before it was to take place amid concerns about an ankle injury. So Korea pivoted and agreed to a deal with the Mets,
who then had similar concerns about that ankle. Let's try to keep corea but with changes to the original agreement, Karea balked at that he is instead going back to Minnesota. Six year deal for two hundred million could turn out to be longer and more lucrative, but the deals with the Giants and Mets were for three hundred and fifty and three hundred fifteen a million. At the Garden, Rangers trailed Minnesota to nothing, then three to a Philip Eatle
goals six and half minutes left tied the game. Rangers won four three and a shootout. They are twelve two and two over their last sixteen games, with the Ubs, Arena Islanders loss and a shootout the Dallas two to one. Devil's at Carolina trailed three to one rally to win five three. Hurricanes fourth straight loss, all coming after in eleven game winning streak. NICK host Indiana Tonight Miami last night set an NBA record and a one point win.
That Heat took forty free throws made all forty. Jimmy Butler was twenty three for twenty three Big East much needed win for st. John snapped to five game losing streak seventy seven sixty one over Butler. Joels Oriano twenty points, ten rebound Seaton Hall one at Georgetown sixty six fifty one. That's twenty seven consecutive conference losses for one time Big East power Georgetown. Also at Rose Hill, Fordham blown out by Dayton eighty two fifty year John Stashwar Boomberg 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. Visit your locals Price State Autie Dealer to get behind the wheel of yours today, or visit autie Offers dot com for more information. Just ahead, we'll take a look at the investigations planned on Capitol Hill with Republicans in the majority of the House. First, SMP futures are higher by
eleven points. Staff futures up eighty two, Nastack futures up thirty two points ten. Your treasury is up fourteen thirty seconds, you know, three point five six percent. Nimex s crudes up three tents and one percent at seventy two A barrel in comics gold trading right now at announced. This is Bloomberg 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 Hagar. Let's turn to the nation's capitol now, where the new Republican majority in the House of Representatives is preparing to embark on a wide range of investigations into President Biden, his family, and his policies. Joining us now is Greg Valier, chief US policy strategist at a GF investment. So how do
you strategize policy? Greg? Now that the House Republicans have indicated that they're going to spend a lot of their time over the next two years investigating, well, there's so much going on, so many very bitter partisan hearings. I think personally, I will focus on what they can get done,
and they actually did something. Yesterday, Kevin McCarthy got a bill passed with overwhelming support from Democrats to create a committee to investigate China, China's theft of technology China's trade policies. That was a surprise to get an overwhelming majority in McCarthy's first real vote. Hell, I suppose it's not too much of a surprise given the bipart as an animous there seems to be now when it comes to China. Are you looking at any other investigations that could bear
fruit on Capitol Hill? Well, it will certainly get headlines. And the report in the last day or so that the Biden of people had documents that were taught secret doesn't help. It just raises the temperature even more. I think the hearings that will be the most intriguing will be the origin of COVID. I think that will be a big one, obviously, Hunter Biden, and I think the withdrawal by the US from Afghanistan. But there's many, many more. Uh.
This this will be a year of investigations. Now we did here for the first time from Mexico City from President Biden on the discovery of those classified documents in his old office. I wonder what you make of his reaction to that, and whether this is going to be more than just a political headache for the president. Yeah. I could give you a long answer about how the what Biden did is not comparable to what Trump did. That's what Biden's people are saying. However, this does muddies
the waters. I think for a lot of people who aren't obsessed with this like we are, it will be a sign that everybody doesn't. So I think this will hurt Biden, even though perhaps his offenses were not as grievous as Trump's. Now given that idea that any voters could think that everybody does it. Does this have any impact on the ongoing investigation intomorrow lago into the boxes of documents that were founded former President Trump's home. Probably not.
I think that will continue on its current path. The really intriguing story right now is in Georgia. Uh the attorney general and Georgia has finished her investigation. There's going to be a public press conference on the twenty four or five of January. There's widespread belief that she will
indict Biden. I also wonder what you indict Trump? Oh? Sorry, I also wonder what you think as well of this subcommittee into the weaponization of the federal government that's gotten a lot of attention on Capitol Hill and even outside the Beltway to some extent, Is that going to be more than just political? Probably bitterly political with Jim Jordan, who is quite the pitbull on these issues. But you know, again, I can't see how this is going to be a
big issue for the markets. I mean, that's my focus, and even though there will be revelations and bitterness, I think for the markets there are bigger stories like the Federal Reserve, not just the Federal Reserve, but also the debt ceiling and dealing with the full faith and credit of the US. Given the focus on investigations, does that have any impact on must pass legislation like spending bills,
like confronting the debt ceiling, Well, it doesn't help. And I do think that we are on a collision course. There are options that could maybe avoid a default threat. But I wrote yesterday and I still feel that the chances of a federal default on our debt is maybe sixty forty will get a deal. But if you say there's a chance of default, that's something the markets have to follow. Yeah, certainly not the kind of odds you
want to hear in our last thirty seconds or so. Here, Greg, I'd love to get your takeaways from the North American Leader summit. Did you see any actual policy advancements there? No, it was it was mostly platitudes. Uh. You know, Biden's going to go to Canada in March. There's a few things that they agreed on, but the really big stuff energy trade disputes, Brazil, Haiti, and especially the wall with Mexico,
we're not addressed. So this will just drag on for the rest of the year without any real breakthrough and just quickly. Do you see any pressure on the president to put any further focus on issues on this continent. Yeah. I think he feels bipartisanship can work. I think you'd like to do that, but that's going to be really tough. First, we got to see if he's running for re election. I think he is, but it's not sir. This is Bloomberg Daybreak Today, your morning brief on the stories making
news from Wall Street to Washington and beyond. Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts. You can also listen live each morning starting at five am Wall Street Time, on Bloomberg eleven three oh in New York, Bloomberg in Washington, Bloomberg one oh six one in Boston, and Bloomberg nine six in San Francisco. Our flagship New York station is also available on your Amazon
Alexa devices. Just say Alexa play Bloomberg eleven. Plus listen coast to coast on the Bloomberg Business app, serious XM Channel one nine, the I Heart Radio app, and on Bloomberg dot com. I'm Nathan Hager and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak