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Speaker 1: It's Tuesday, the sixteenth of January here in London. This
Speaker 1: is the Bloomberg Daybreak You're a podcast. I'm Caroline Hipker.
Speaker 2: And I'm Stephen Carroll. Coming up today, IOWA delivers a
Speaker 2: resounding win for Donald Trump and his bid for the
Speaker 2: Republican presidential nomination.
Speaker 1: America and the UK worn commercial vessels to avoid the
Speaker 1: Red Sea as a merchant ship is hit with a
Speaker 1: ballistic missile.
Speaker 2: Plus Musk wants more. The Tesla CEO says he needs
Speaker 2: twenty five percent control before developing the firm's AI projects.
Speaker 1: Let's start with a roundup of our top stories.
Speaker 2: Donald Trump has cruised to victory in the Iowa Republican
Speaker 2: presidential caucus, with Ron De Santis finishing a distant second
Speaker 2: and Nikki Haley third. Ohio entrepreneur VIVK Gramaswami ended his
Speaker 2: presidential bid after a disappointing showing. Republican political consultant Rick
Speaker 2: Davis explains how the nomination race could now unfold for
Speaker 2: Donald Trump.
Speaker 3: If Trump does run the table and gets both Iowa
Speaker 3: New Hampshire, a really unusual thing, then he's got four
Speaker 3: weeks to consolidate his hold on South Carolina. And we've
Speaker 3: seen early polling the campaign hasn't gotten to South Carolina yet,
Speaker 3: so it's not reflective of a real campaign. But right
Speaker 3: now he's twenty points ahead of of Nikki Haley, who
Speaker 3: calls it home. So and then after that, the really
Speaker 3: next big thing is Super Tuesday, so he could actually
Speaker 3: walk in the Super Tuesday basically unchallenged at that point.
Speaker 2: Bloomberg Politics contributor and partner at Stone Court Capital, Rick Davis,
Speaker 2: speaking there, allies and adversaries around the world are closely
Speaker 2: watching the twenty twenty four US presidential race, in which
Speaker 2: Trump and Biden are offering starkly different visions for America's
Speaker 2: global role. At December morning, consultant Bloomberg News poll showed
Speaker 2: Trump leading Biden in the seven swing states that will
Speaker 2: likely decide the outcome of the election.
Speaker 1: Whoth the militants have attacked a US owned container ship
Speaker 1: in the Red Sea. The vessel was hit by a
Speaker 1: ballistic missile, but avoided significant damage or injuries to its crew.
Speaker 1: The attack follows a warning from the US and UK
Speaker 1: to merchant ships to avoid the area until further notice.
Speaker 1: The EU Economy Commissioner Paulo Gentiloni sees the potential for
Speaker 1: global economic fallout from the crisis.
Speaker 4: What is happening in the Red Sea is not for
Speaker 4: the moment apparently creating consequences on energy prises and inflation.
Speaker 4: But we think that it should be monitored very closely
Speaker 4: because these consequences could materialize in the coming weeks.
Speaker 1: Paalo Gentiloni. There The latest attack in the Red Sea
Speaker 1: comes after American and British forces bombed the hu Thies
Speaker 1: in an effort to deter them from disrupting global shipping.
Speaker 2: Prime Minister Rachisinak defended those joint air strikes in Parliament.
Speaker 2: He told MPs that who They's aggression was the biggest
Speaker 2: attack on the Royal Navy for decades.
Speaker 5: I stress that this action was taken in self defense.
Speaker 5: It was limited, not esclatory. It was a necessary and
Speaker 5: proportionate response to a direct threat to UK vessels and
Speaker 5: then to the UK itself.
Speaker 2: Whishi si Nakada that he hopes the air strikes would
Speaker 2: de escalate the conflict. However, the world's largest shipping association Bimkos,
Speaker 2: warning disruption in the area could last for some time.
Speaker 2: The number of ships passing through the Southern Red seasons
Speaker 2: Friday has fallen by more than half compared to the
Speaker 2: corresponding period a month earlier.
Speaker 1: Iran has launched missile strikes against targets in northern Iraq
Speaker 1: and Syria. Bloomberg's Dan Schwartzmann has the details.
Speaker 6: Four people were killed and six others wounded in an
Speaker 6: Iranian missile attack in the northern Iraqi city of Airbil.
Speaker 6: The Iranian Revolutionary Guard Corps has taken responsibility for the strike.
Speaker 6: The state run Islamic Republic News agency says the Revolutionary
Speaker 6: Guard launched ballistic missiles on the quote espionage basis of
Speaker 6: anti Iranian terrorist groups in Iraq and Syria. In a statement,
Speaker 6: the IRGC says the strike was in response to recent
Speaker 6: targeted killings in the country. No American or coalition forces
Speaker 6: stationed in Iraq and Syria were injured in the missile strikes.
Speaker 6: The US also shout down three drones near Arabial Airport.
Speaker 6: Dan Schwartzman Bloomberg Radio.
Speaker 2: UK inflation will drop to one point five percent in May,
Speaker 2: according to a forecast from Ing. The bank's view is
Speaker 2: that easing pressure from food and energy bills could pave
Speaker 2: the way for the Bank of England to cut interest
Speaker 2: rates sooner. Boomberg James Wilcock has more.
Speaker 7: The consensus view among economists has inflation falling to two
Speaker 7: point one percent in mid twenty twenty five. IG's James
Speaker 7: Smith thinks it will hit one point five percent in
Speaker 7: just four months. He predicts falls and price rises in
Speaker 7: nearly every major component and gas prices will bring the
Speaker 7: Bank of England under target by May. If correct, the
Speaker 7: data could be a booster if Ysunak, who has stated
Speaker 7: political capital on bringing inflation under control in London James
Speaker 7: Wilcock Bloomberg Radio.
Speaker 1: Apple will remove the blood oxygen feature on its smart
Speaker 1: watches to avoid a US ban if an appeal fails.
Speaker 1: The International Trade Commission ruled in October that Apple's devices
Speaker 1: violate the payta of medical equipment maker Massimo. Bloomberg's Mark
Speaker 1: German says that Apple's challenge against that decision will be
Speaker 1: crucial in giving the company more time to find a solution.
Speaker 8: Well, if it's not immediate removal, Apple's going to have
Speaker 8: about a year to figure out a solution, And I
Speaker 8: would bet heavily that with a year's time, Apple would
Speaker 8: be able to retain the feature on the watch indefinitely
Speaker 8: and rework it to not have to violate Arsenal's patents.
Speaker 8: In fact, I've been told that they're working on this
Speaker 8: software fix that changes some of the underlying algorithms from
Speaker 8: the wording inside the blood oxygen saturation and to get
Speaker 8: that to happen. But for that's a matter at all.
Speaker 8: It's really important for Apple that they win tomorrow, they
Speaker 8: win that appeal.
Speaker 1: Bloomberg's chief correspondent Mark German. There, Apple has increasingly used
Speaker 1: health and safety features to market it smart watches helping
Speaker 1: to turn the line into a seventeen billion dollar business
Speaker 1: for the tech giant.
Speaker 2: Elon Musk says he's uncomfortable growing Tesla's AI capacity without
Speaker 2: a larger share of voting control. The automaker is currently
Speaker 2: investing more than a billion dollars into its Dojo supercomputer
Speaker 2: project and working to develop humanoid robots. However, in a
Speaker 2: post on a social platform x Elon Musk said that
Speaker 2: without twenty five percent of voting control, he'd prefer to
Speaker 2: develop products independently. According to data compiled by Bloomberg, Musk
Speaker 2: currently owns more than twelve percent of the company. One
Speaker 2: of the things that caught my eye from the coverage
Speaker 2: of Davos this morning, and it's one of the things
Speaker 2: that I like about Davos because it does get you
Speaker 2: a chance to get an insight into some of the
Speaker 2: workplace trends that are happening. And there's conversation that the
Speaker 2: chair of PwC in the UK has been having about
Speaker 2: how the rise of AI actually means that more junior
Speaker 2: staff should spend more time in the office. His logic
Speaker 2: is is that a lot of the tasks that treat
Speaker 2: people used to get trained up on are now being
Speaker 2: taken over by the technology, which means face to FaceTime
Speaker 2: is even more important. He says it could actually to
Speaker 2: help people accelerate them up the career ladder if they're
Speaker 2: spending more time in the office, meeting people, in for
Speaker 2: acting with people. And he says that you need to
Speaker 2: be in the office for to five days a week
Speaker 2: if you want to succeed in your career, which I'm
Speaker 2: quite sure plenty of people would disagree with.
Speaker 1: Yeah, okay, but very interesting advice perhaps for younger people
Speaker 1: in the office that you need that FaceTime, that learning time,
Speaker 1: I mean interesting if you get paid more sooner in
Speaker 1: your career.
Speaker 6: That's the office. Here's the crux of it.
Speaker 2: Yeah, people might be interested and if they get that
Speaker 2: sort of motivation. Let's get more to know now though,
Speaker 2: On the US political story this morning, Donald Trump has
Speaker 2: won the first Republican Party caucus of the campaign in Iowa.
Speaker 2: Our executive editor for US Government Michael Sheppard joins us
Speaker 2: now from Iowa for more. Michael, great to have you
Speaker 2: with us on the program. So the polls are predicted
Speaker 2: Donald Trump would win big. He did. Were there any
Speaker 2: surprises in his vote?
Speaker 9: Well, Stephen, I thank you for having me. Our team
Speaker 9: is still hard at work parsing the results and figuring
Speaker 9: out what's going to come next. As for surprises, look,
Speaker 9: results in any election are always a surprise, as polls
Speaker 9: can sometimes get it wrong ahead of time, and in
Speaker 9: tonight's because it was unclear beforehand just how much support
Speaker 9: Donald Trump would get. Iowa voters were famously independent minded.
Speaker 9: But he did end up with fifty one percent of
Speaker 9: votes from caucus goers. And that's even more than the
Speaker 9: support that was projected in the final poll of a
Speaker 9: local authoritative local newspaper taken days before tonight's caucuses.
Speaker 1: Okay, so that for Donald Trump. What about Rohn de Santis,
Speaker 1: who came in second, What does it mean for his
Speaker 1: campaign and indeed for Nicky Hayley.
Speaker 9: Well, let's start with Ron DeSantis. And that's a good question, Caroline.
Speaker 9: I'm glad you asked that about him, because for Ron DeSantis,
Speaker 9: this is a vindication of his all out bet on Iowa.
Speaker 9: He really banked on trying to win the Hawkeye state.
Speaker 9: He spent so much time in the months ahead of
Speaker 9: the caucuses. He visited all ninety nine counties in the state,
Speaker 9: crisscrossing visiting so many different voters. He set up an
Speaker 9: extensive ground operation. He brought in allies from Florida by
Speaker 9: the bus load and planeload to go door to door
Speaker 9: days before the caucuses in freezing cold temperature. So it
Speaker 9: showed some motivation and actually had some effect. Now for
Speaker 9: Nikki Haley, look, the last thing she needed heading into
Speaker 9: New Hampshire, where she has bet big as a stepping
Speaker 9: stone to her home state of South Carolina. The last
Speaker 9: thing she needed was a third place finish. She had
Speaker 9: hoped to do well enough to Iowa to really use
Speaker 9: it as a launching pad into New Hampshire and then
Speaker 9: South Carolina. But it didn't work out exactly as she
Speaker 9: had hoped. And that last poll I just mentioned, taken
Speaker 9: days before the vote, had actually shown her finishing ahead
Speaker 9: of DeSanto's.
Speaker 2: Here and they field already narrowing after this caucus Vivia
Speaker 2: Gramaswami dropping out of the race. What went wrong for
Speaker 2: his campaign?
Speaker 9: Well, you know, Vivek Ramaswami never really caught fire with
Speaker 9: more than just the segment that he really appealed to
Speaker 9: the very independent mind an even more libertarian voters, and
Speaker 9: in places like Iowa and South Carolina, it was hard
Speaker 9: for him to fit in. His message just didn't take hold,
Speaker 9: and he in essence sort of acknowledged that during his speech.
Speaker 9: He said in the campaign, his speech tonight and endorsing Trump,
Speaker 9: he said, in tonight's race, there are two America First candidates.
Speaker 9: Now there's only one with me leaving, and that of
Speaker 9: course is pointing to Donald Trump. So he was signaling
Speaker 9: that many of the positions that he was espousing were
Speaker 9: already ones that were reflected by Trump, and he has
Speaker 9: now thrown his support for the former president.
Speaker 1: Okay, just lastly and briefly then, the key things to
Speaker 1: watch out for next as we move towards the New
Speaker 1: Hampshire primary that takes place next week, Well.
Speaker 9: This is really crucial for the DeSantis campaign to make
Speaker 9: the most of New Hampshire, where they haven't invested nearly
Speaker 9: as much time as Viy Haley has. She is the
Speaker 9: endorsement of the governor there, who's been campaigning very aggressively
Speaker 9: in the Granite state for her. She also enters that
Speaker 9: state Desantus does too, facing a very different electorate. It's
Speaker 9: not nearly as conservative as Iowa, so we could see
Speaker 9: a different result that could pivot and actually leave Nikki
Speaker 9: Haley ahead of Rondasantas but behind Trump. But we'll have
Speaker 9: to see there. Trump is seeking to turn his absolute
Speaker 9: majority win tonight into something that will allow him to
Speaker 9: pivot sooner to this general election matchup with Joe Biden
Speaker 9: in November.
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