January 13,2023

Whilst the only child of Elvis Presley, Lisa Marie Presley, has died. Michael barr more ahead, I'm John stash Our sports the Nets playing without Kevin rand lost at home to the Celtics. The loss for the Islanders a thrilling

overtime win for the Ranger. That's all s tradyhead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg nine one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world on Bloomberg Radio Dot com and via the Bloomberg Business app. Good morning, I'm Nathan Hagart and I'm Karin Moscow. Here are the stories we're following today. We begin with a growing political and now legal issue

for President Biden. Attorney General Merrick Garland has named a special counsel after two sets of classified documents were found in one of the President's offices and now his garage. President Biden says he has been cooperating fully. The Department of Justice was immediately uh notified and the lawyers arranged for the Department of Justice to take possession of the document. So you're gonna see We're gonna see all this on fold.

The president says he takes classified documents seriously. New York Law School professor Rebecca roy If he says, this puts the president in a difficult position. None of this is good and it should be troubling, and it should be troubling to Americans, regardless of your political affiliation. No president, no former vice president, should be taking classified documents and putting in them someplace, keeping them someplace like a garage,

even if that garage is locked. New York Law schools or Becca ROYFI spoke with our Washington, corresponded Joe Matthew on Bloomberg Sound on. Catch the show weekdays at five pm Eastern on Bloomberg Radio or download sound on wherever you get your podcasts. Meantime, Nathan Geo politics is in focus for President Biden today. He's meeting with Japanese Prime Minister Fumio Kashita at the White House, Bloomberg said. Baxter reports there is expected to be an update on the

nation's Global Security Agreement. Both sides have already said that the alliance has never been stronger, but National Security Council spokesman John Kirby says threats from Russia and China are causing the agreements to be updated. We modernize the alliance by announcing that attacks to from and within space could lead to the invocation of Article five of the US Japan Security Treaty. Kirby says Japan is stepping up its commitments to the alliance and they will pay huge dividends.

In San France, Fisco, I'm at Baxter Bloomberg day Break, Thanks said, We now turned to the markets or earnings for big banks kickoff this morning. JP Morgan City Group, Bank of America, and Wells Fargo all report quarterly results. We get a preview from Bloomberg's Charlie Wells. There have been so many pressures for these large American banks. There's the concern about a potential recession that we've been debating

about for the past few weeks. There have been issues with a slowdown and deal making that has really hurt fees. It's looking like at some of these major banks, investment banking revenue for the fourth quarter could be down about fifty and overall profits at these large banks are looking like in the fourth quarter they could be down about

fifteen percent. Bloomberg's Charlie Wells says the outlook from banks C e O S may draw more attention this morning than the actual numbers well as we await those results in Nathan Global. Stocks are heading for a healthy game this week, and there's growing optimism that easing inflation will lead to less aggressive rate hikes. Here's Philadelphia Fed President Patrick Harker. In my view, the base of us raising them severy five supports of the time are surely cast.

In my view, types of twenty five basis points will be appropriate going for Philadelphia Fed President Patrick Harker made the comments after yesterday's consumer price data, which showed inflation continued to slow in December, and we may get more clues Karen on the direction of range forest rates and

a couple more FED officials speak today. New York FED President John Williams, Minneapolis FED Chief Neil cash Carry, and Philadelphia FED President Patrick Harker all speak at separate events today. Moll in the UK, Nathan, the British economy unexpectedly grew in November. Let's go live, delight did, and get the latest with Bloomberg at Daybreak Europe anchor Stephen Carroll. Good

morning Stephen, Good morning kyral Than Nathan. The UK economy may avoid tumbling intercession for a little longer thanks to November's surprise point one percent growth in GDP consumer facing services, helping to boost out button in particular spending on hospitality during the World Cup strikes, though affected activity in the

postal and railway industries. The figures may strengthen calls for further interest rate rise US from the Bank of England, as inflation in the UK remains near the highest level in four decades. In London, I'm Stephen Carroll, Bloomberg Daybreak, Stephen. Thanks. Staying in Europe, Sweden's inflation rate reached double digits for the first time in more than three decades. In December, inflation there rose by an annual rate of ten point

two percent. That was higher than expected. Well back here in the US, Nathan, we're seeing a big pay cut for one of the country's premier executives. Apple CEO Tim Cook will see his total compensation decline this year. We get more from Bloomberg's Doug Krisner. Apple cited investor feedback as well as a request from Cook himself. The pay reduction will be more than this here, to forty nine million dollars, and most of that will take the form

of stock grants. Apple is drawn criticism about Cook's previous ninety nine million dollar compensation package from groups such as Institutional Shareholder Services. The advisory firm said half of the rewards didn't depend on performance criteria like the company's share price. Last year, a majority of Apple holders voted to approve Cooke's package. In New York, I'm Doug Prisoner Bloomberg Daybreak, Doug,

thank you. And in China today we have news that government entities are set to take so called golden shares and units of Ali, Baba and ten Cent. That suggests Faijing is moving to ensure greater control over key players in the internet arena. The shares could let officials influence the industry over the long term. Straight ahead, your latest local headlines, plus a check of sports. And this is Bloomberg. Thanks Caring. It's fifty four degrees right now in Central Park.

We've got a cold front moving in this morning. We're going to get into the upper fifties early today. Temperatures will drop this afternoon under mostly cloudy sky. Time to take a look at some of the other stories making news in New York and around the world with Bloomberg's Michael var Good morning, Michael, Good morning. Nathan. Lisa Marie Pressley, a musician and the only daughter of rock and roll legend Elvis Presley, died after being rushed to a Los

Angeles area hospital, believed to be of cardiac arrest. She was married four times, including to Michael Jackson and Colas Cage. It was just last week she was at Graceland to celebrate what would have been her father's eight birthday. Then I love you, I keep saying You're the only people that can bring me out of my house. Lisa Marie Pressley was fifty four. New York City Mayor Eric Adams proposed a nearly one hundred three billion dollar budget for

this coming fiscal year. The mayor's projections call for a three point two billion dollar gap in fiscal five billion dollars in six and six point five billion in Adam says though the city achieved much of its savings by taking down vacant positions, we face significant challenges. I want to be clear. In order to keep moving forward while preserving the programs and services we value, we must be

careful and make the best use of our resources. Mayor Adams also says the city is contending with a one billion dollar anticipated cost for services provided this year to recently arrived migrants. New Jersey Governor Phil Murphy said residents can expect significant tax cuts, even after the state passed

a two billion dollar property tax rebate program last year. Murphy, speaking to Bloomberg's David Weston on Balance of Power, also talked about this week's Annual Policy Address, when he proposed incentives to keep more workers, including employees who work from home, in New Jersey. He says, it's an effort to cut down the out of state income tax on workers who commute to New York. Not every job is going to be in a physical office. Uh, as long as the

job is in New Jersey, we want that job. Whether it's I mentioned in my speech, whether it's in an office tower or at Newark where I am now, or at a kitchen table at Cherry Hill, we want those jobs at Jersey. We want to embrace and recognize the new reality, the governor says. In twenty more than four thousand New Jersey residents paid taxes in New York. Powerful storms are being blamed for at least seven deaths across

Georgia and Alabama. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael bar this is Bloomberg, Nathan. Thanks Michael, time for the Bloomberg Sports update, brought to you by twice stayed out here. Good morning, John, Good morning Nathan. Nets and Celtics, top two teams on the East, both were without all stars. No Kevin ran for Likely at

least a month knee injury of the night. After scoring forty one points for Boston, Jalen Brown sat out injured hip. Tight game at Barkley's until the Celtics began the fourth quarter on a twelve to two run. They won one oh improving to an NBA best thirty one and twelve. Kymrae Ivan led the Nets twenty four points. For Ben Simmons no points, but he did have nine rebounds and thirteen assists. At the Garden, Rangers went fifty nine minutes

and fifty nine seconds without scoring. KeAndre Miller finally got a Ranger goal with two ten of a second lad and then Adam Fox got another a minute sixteen into overtime, dramatic win for the Blue Shirts to one over Dallas. Islanders lost in Minnesota three to one. Wild Card weekend begins tomorrow with Seattle at San Francisco. The forty minors have won their last ten games. Tomorrow night, it's much improved Jacksonville hosting the l A Chargers. The Giants play

Sunday in Minnesota. Other than Graham Gano, who once kicked in the Super Bowl, there is virtually no playoff experience on the Giants roster, something downplayed by coach Brian day Ball. Think, really what matters is taking advantage of your opportunities when they come um and playing a good football game and coaching a good football game. So I don't know if that answers your question, but I really think it's an

overrated It's an overrated thing. And a couple of weeks, if the a f C Championship game is between the top two seeds Kansas City and Buffalo, the game will be played in Atlanta. They had decided it would be a neutral site because the Bills didn't finish that game in Cincinnati that could have gained them the home field. John Stash, Bloomberg Sports Nathan. Thanks John. The Bloomberg Sports

Report was brought to you by Audie. Don't let someone else drive off in the Audie model you've always wanted. Visit your local Tri state autie dealer to get behind the wheel of yours today, or visit Autie Offers dot com for more information. Analysis on the Special Council Investigation of the President Biden's Classified Materials straight ahead first SMP

futures are little changed. Down futures up seventeen points, nastack futures down fourteen points, Live from the Interactive Broker Studio, broadcasting coast to coast, Bloomberg he leven Freeo, New York, Bloomberg, Washington, Bloomberg one six one Boston, Bloomberg nine sixty, San Francisco, Sirius XM one nineteen, the Bloomberg Business app and Bloomberg dot Com. This is Bloomberg day Break. I'm Nathan Hagar.

Good morning. A political headache for President Biden is turning into a legal one now with Attorney General Merrick Garland appointing a special counsel to investigate classified documents found in two local pations used by the President. This appointment underscores for the public the Department's commitment to both independence and accountability, and particularly sensitive matters. Attorney General Merrick Garland is named Robert Herr, a former U S attorney appointed by former

President Donald Trump to lead the probe. Let's bring it, Gregg Value are for war on this, Chief US policy strategist at a GF Investments. Greg Good morning. Is this just political or has it turned into something more for the president now? I think it's something more, Nathan, good morning. I think that a special council means that both Trump and Biden are under criminal investigation, and for Republicans that

they'll claim there's an equivalence. I'm not sure that's accurate, but they'll claim that, and it really has given the Democrats in this city a case of real anxiety. Well, what more do Democrats need to do in your estimation to try to get ahead of this? Is there any getting ahead of it at the point, I don't know. And the reason you don't know is that you don't know if there are more documents, if there are more things that will surface over the next week or two.

Very very uncertain. I think the argument that well, everybody does it is not or that what Biden has done is not as serious as what Trump has done, that doesn't really meet the standard of what this really means for voters. And I think for a lot of voters there's now going to be an equivalency that both of them are attained it well. As you mentioned, though, Greg, this is something that does seem to keep cropping up

in one way or another. You mentioned the investigation into former President Trump's Mara Lago documents, and many of us recalled the controversy surrounding former Secretary of State Hillary Clinton and the classified materials found in her computer server. Why does this keep cropping up? Does it say something about the classification system in Washington? Could it be just sloppy record keeping, lack of attention to details, a sense that maybe the rules don't apply to people. Hard to say,

but it's going to stay out there. And for the Republicans who had this cringe inducing spectacle a week ago in the House, they get to change the subject and they get to say that, well, Biden is under criminal investigation as well. This is a game changer. What's your reaction to the appointment of Robert Herr as the Special Council? We mentioned a moment ago that he is a Trump appointee. What what does he bring to the table. He's a

tough guy. He's going to be I think thorough. And what Democrats worry about, at least the ones I talked to yesterday, is that he could find more. Uh. Sometimes the Special Council can can veer off, like the Whitewater

investigation veered off into Monica Lewinsky. So there's a possibility that a special prosecutor could be a represent a Hinefield for the Democrats, and we've been talking for the last couple of days about the timing of the announcement as well the fact that we found out about these classified documents about two months after they were turned over back to the National Archives. I wonder what this means about the timing for a potential presidential re election announcement for

President Biden. It's something he's been mulling for a couple of months. Here. Does this change the calculation for him? Maybe a little. You've hit Nasan on, But I think is the key issue here, and that is could this affect the nomination process. There are a lot of Democrats who are ready to run if Biden decides not to seek re election, people like Phil Murphy and New Jersey

Gretchen Whitmer in Michigan. So a lot of Democrats are concerned that even though inflation seemingly has peaked, even though Biden's job approval rating is up a bit, that he still has real problems and that there's still a lot unknown in a special prosecutor. Over the next few weeks and in our last minute here, Greg, presumably President Biden is going to be trying to stay focused on his agenda. He's meeting with global leaders today and later on next week.

But how much of a shadow does this cast over the president's agenda going forward? Here? Well, you saw this yesterday, Nathan. He came out and wanted to talk about a good inflation number and the state of the economy, and reporters basically shouted him down. They wanted to talk about these documents. And I think that messaging for the Biden administration is about to get a lot tougher. This is Bloomberg Daybreak Today, your morning brief on the story's 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 n S in San Francisco. Our flagship New York

station is also available on your Amazon Alexa devices. Just say Alexa play Bloomberg BLUs listen coast to coast on the Bloomberg Business app. Serius XM Channel one, the I Heart Radio app, and on Bloomberg dot Com. I'm Nathan Hager and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak