Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we begin with the latest on the Los Angeles wildfires.
Speaker 3: Crews from as far away as Canada are still struggling
Speaker 3: to contain the massive blazes that broke out eight days ago.
Speaker 3: Now the same combination of high winds and low humidity
Speaker 3: that set them off in the first place is threatening
Speaker 3: the region again. LA Mayor Karen Bass says the next
Speaker 3: twenty four to forty eight hours will be critical.
Speaker 4: If you are told that you are in a warning zone.
Speaker 5: It would be advised that you actually take that opportunity
Speaker 5: to leave, get packed, get everything ready.
Speaker 3: Mayor Karen Bass says she's issued directives to help fast
Speaker 3: track the rebuilding, but first conditions on the ground need
Speaker 3: to improve. Palisades Fire incident meteorologist Rich Thompson says they're
Speaker 3: getting there.
Speaker 6: Critical fire re conditions, red flag warnings in effect untils
Speaker 6: six pm Wednesday evening. Now by Wednesday evening Wednesday night,
Speaker 6: I expect the critical conditions to diminish, and then for
Speaker 6: Thursday into the weekend, we're actually get back to a
Speaker 6: more normal weather powder here for this part of the country.
Speaker 3: As it stands now, the biggest fire in the Palisades
Speaker 3: is eighteen percent contained. The Eton Fire, which destroyed much
Speaker 3: of Altadena, is under thirty five percent containment. The death
Speaker 3: toll remains at twenty four Estimates of insured losses running
Speaker 3: as high as forty billion dollars well Nathan.
Speaker 2: The fires are also threatening to make the Los Angeles
Speaker 2: housing crisis even worse. Before the fires, only about five
Speaker 2: percent of LA apartments were vacant, with the median rent
Speaker 2: of twenty two hundred ninety nine dollars. Now more than
Speaker 2: twelve thousand buildings have been destroyed, many of them homes.
Speaker 2: One rental company that manages some of LA's priciest neighborhood
Speaker 2: says it's getting more than ten times as many calls
Speaker 2: as it did before the fires. The firm recently arranged
Speaker 2: a twelve month lease for one tenant in Beverly Hills
Speaker 2: for thirty five thousand dollars. A month after the fires,
Speaker 2: the owner raised the rent to forty thousand.
Speaker 3: Now to the latest on efforts for a truce in
Speaker 3: the Middle East, Israel and Hamas are now accusing one
Speaker 3: another of delaying a Gaza ceasefire aimed at exchanging hostages
Speaker 3: for prisoners and sending aid to the beleaguered Palestinian territory.
Speaker 3: While officials say an agreement for a six week pause
Speaker 3: in fighting is still likely soon, frequent failures to get
Speaker 3: a deal finalized have left everyone saying nothing is being
Speaker 3: taken for granted. CBS News previously reported that Israel and
Speaker 3: Hamas have agreed in principle to a ceasefire at.
Speaker 7: The Atlantic Council.
Speaker 3: Secretary of State Anthony Blincoln said he thinks they're close.
Speaker 8: I believe we will get a ceasefire, and whether we
Speaker 8: get there in the remaining days of our administration or
Speaker 8: after January twentieth, I believe the deal will follow closely
Speaker 8: the terms of the agreement that President Biden put forward
Speaker 8: last May, and our administration rallied the world behind.
Speaker 3: Secretary Blincoln added, the sides are discussing a pause to
Speaker 3: allow for the exchange of hostages and a boost in aid.
Speaker 3: During the truce, Israel and Hamas will start a second,
Speaker 3: more serious round of indirect negotiations about ending the war
Speaker 3: and rebuilding the territory.
Speaker 2: Meanwhile, Nathan and Washington President elect Donald Trump's pick for
Speaker 2: Defense Secretary, Pete Hankseth, appears on course to win confirmation
Speaker 2: after a half day Senate hearing. Bloomberg's Amy Morris is
Speaker 2: in Washington and has more on the heated hearing.
Speaker 9: New York Democratic Senator Kirsten Gillibrand questioned hag Seth's position
Speaker 9: on women in the military.
Speaker 2: You will have to change how you see women to
Speaker 2: do this job well, and I don't know if you
Speaker 2: are capable of that.
Speaker 9: And Virginia Democratic Senator Tim Caine questioned hag Seth's character.
Speaker 8: You had just fathered a child two months before by
Speaker 8: a woman that was not your wife.
Speaker 9: Senat Armed Services Committee chair, Republican Roger Wicker of Mississippi
Speaker 9: showed his support for the nominee.
Speaker 4: I'm confident that mister Hegseth, supported by a team of
Speaker 4: experienced top officials, will get the job done.
Speaker 9: Hag Seth himself laid out his objective for the Pentagon
Speaker 9: if he's confirmed. When President Trump chose me for this position,
Speaker 9: the primary charge he gave me was to bring the
Speaker 9: warrior culture back to the Department of Defense. Hag Seth
Speaker 9: does not need Democrats to win confirmation. But he can't
Speaker 9: lose more than three Republicans in Washington. Amy Moore as
Speaker 9: Bloomberg Radio.
Speaker 3: Amy, thanks. Turning to the economy now, A day after
Speaker 3: we learned US wholesale inflation unexpectedly cooled in December, we
Speaker 3: get another reading this morning. Consumer prices are forecasts to
Speaker 3: have risen four tenths of one percent last month. Let's
Speaker 3: get a preview from Bloomberg's Michael McKee.
Speaker 10: The change in the consumer price index usually doesn't match
Speaker 10: the change in producer prices, so yesterday's surprisingly tame PPI
Speaker 10: report probably tells us very little about what we'll see today.
Speaker 10: Investors and Fed officials will be watching housing costs, in particular,
Speaker 10: after housing inflation finally appeared to start cooling in November.
Speaker 10: If that continues, it's good news for the inflation outlook.
Speaker 10: Also under scrutiny used cars, food and energy, and airline fares.
Speaker 10: Nothing but a huge miss high or low would get
Speaker 10: Fed officials to consider changing their plan to hold rate
Speaker 10: steady at their January meeting. Michael McKee, Bloomberg Radio.
Speaker 2: All right, Michael, thank you.
Speaker 5: Well.
Speaker 2: On Wall Street, big bank earnings begin with Goldman Sachs
Speaker 2: City Group JP Morgan Chase and Wells Fargo. This morning,
Speaker 2: we get more on what to expect from Goldman with
Speaker 2: Bloomberg Intelligence senior Global Banks analyst Allison Williams.
Speaker 11: Ohman sachs they may post the strongest EPs growth compared
Speaker 11: to a year ago, as well as Morgan Stanley. Both
Speaker 11: of the banks are focused on the capital markets business,
Speaker 11: but Goldman is also benefiting from a honed focus. Much
Speaker 11: of the changes that they made last year have helped
Speaker 11: them sort of return to their core institutional strength, and
Speaker 11: we expect that they're going to show benefit from those
Speaker 11: trends as well as momentum into the first quarter, especially
Speaker 11: for their leading equities trading revenue as well as the
Speaker 11: M and A business.
Speaker 2: Bloomberg Intelligence Senior Global Banks analyst Allison Williams expects Goldman
Speaker 2: earnings at seven thirty am Wall Street Time.
Speaker 3: Well Karen Elon Musk is being sued by the Securities
Speaker 3: and Exchange Commission. The agency is accusing Musk of failing
Speaker 3: to timely disclose a major purchase of Twitter shares before
Speaker 3: he took over the social media platform. We get more
Speaker 3: from Bloomberg's Megan Howard.
Speaker 1: The agency is alleging that Musk waited to disclose his
Speaker 1: acquisition of Twitter shares in order to build his position
Speaker 1: at lower prices. They are also saying that must deliberately
Speaker 1: ignored a deadline to publicly disclose that he acquired more
Speaker 1: than a five percent stake in the company early in
Speaker 1: twenty twenty two, and this is actually something that he
Speaker 1: had previewed in a letter last month. So the agency
Speaker 1: has officially filed that lawsuit in federal court as of today.
Speaker 3: And Bloomberg's Megan Howard says the SEC is seeking a
Speaker 3: civil penalty and for Musk to return profits made from
Speaker 3: his stock purchases.
Speaker 2: Well. Nathan Elon musk Space company SpaceX has had another
Speaker 2: landmark launch three two one Dignition and John go Hi Bay,
Speaker 2: a Falcon nine rocket with a pair of commercial satellites
Speaker 2: on board, took off from the Kennedy Space Center overnight.
Speaker 2: Both the satellites are carrying lunar rovers heading into the
Speaker 2: private sector moon race. One from Texas based Firefly Aerospace
Speaker 2: is named Blue Ghost. It'll attempt at moon landing in
Speaker 2: forty five days. The other is owned by Tokyo's Eye Space.
Speaker 2: The Hakuto R probe will try for its second trip
Speaker 2: to the Moon after a field attempt last April. Time
Speaker 2: now for a look at some of the other stories
Speaker 2: making news in New York and around the world. And
Speaker 2: for that we're joined by Bloomberg's John Tucker. John, Good morning, Yeah, Good.
Speaker 5: Morning, Karen. New York Governor Kathy Hochel proposing a middle
Speaker 5: class tax cut. Let's get more in the story. This
Speaker 5: morning from Bloomberg's Charlie pellan.
Speaker 7: Word came in her State of the State address, focusing
Speaker 7: on pocketbook concerns.
Speaker 3: First, I'm calling for a sweeping middle class tax cut.
Speaker 2: Benefiting eight point three million.
Speaker 3: Taxpayers making less than three d and twenty three two
Speaker 3: thousand dollars.
Speaker 7: The speech outlined a range of proposals aimed at reducing
Speaker 7: the cost of living in one of the most expensive
Speaker 7: states while expanding social services and reducing crime in New York,
Speaker 7: Charlie Bloomberg radios.
Speaker 5: Were this morning that Russia launched a massive aerial attack
Speaker 5: against Ukraine. The AP reports that force Ukraine to introduce
Speaker 5: preventative power cuts in the middle of winter. South Korean
Speaker 5: investigators arrested President yunsukiel today after launching a pre dawn
Speaker 5: operation to bring the impeached leader in for questioning. This
Speaker 5: comes over his short lived martial law declaration, and TikTok
Speaker 5: reportedly plans has shut off its app for US users
Speaker 5: on Sunday. That's the day it'll be banned unless the
Speaker 5: Supreme Court intervenes. Where the enormity of the destruction in
Speaker 5: southern California has quickly snuffed out all festiveness in the
Speaker 5: movie industry's high season of celebration. The Oscars remain as scheduled,
Speaker 5: but it's certain they'll be transformed due to the wildfires.
Speaker 5: Some telethon like element also seems sure to accompany the
Speaker 5: Oscars In recent days, many throughout the industry a voice
Speaker 5: suggestions for how that broadcast could be reconsidered. Global news
Speaker 5: twenty four hours a day, whenever you want it with
Speaker 5: Bloomberg News.
Speaker 1: Now.
Speaker 5: I'm John Tucker and this is Bloomberg.
Speaker 7: Karen.
Speaker 2: All right, John Tucker, thank you time now for the
Speaker 2: Bloomberg Sports Update, brought to you by Tri State Outie.
Speaker 2: Here's John Stashaur, John, Good morning.
Speaker 7: Good morning, Karen.
Speaker 12: It was forty years ago that Saint John's and Georgetown
Speaker 12: played at the Garden, one of the most hyped college
Speaker 12: basketball games ever. They were ranked one two in the country.
Speaker 12: The Hoyas won that game. They'd hardly won the previous
Speaker 12: three seasons, a Big East record of four and fifty eight,
Speaker 12: but they're much better this season and at MSG Georgetown
Speaker 12: had a fourteen point lead early in the second half,
Speaker 12: Saint John's responded a nineteen to two run to win
Speaker 12: sixty three point fifty eight. Coach of the Red Storm,
Speaker 12: Rick Patino was on NBC for you.
Speaker 4: Don't have a great night, they come back and win.
Speaker 4: It tells you who you are and what you're all about.
Speaker 4: And these guys were about winning and that's all that counts.
Speaker 4: They came out and said, don't worry about it. We're
Speaker 4: gonna get a single digits, will win this game.
Speaker 12: And see John's now fifteen and three, six and one
Speaker 12: of the Big East. Auburn's ranked number one, which is
Speaker 12: the second time ever Tigers meet Mississippi State. By twenty two,
Speaker 12: they're sixteen and one. Third ranked. Duke now seventeen and two,
Speaker 12: beat Miami by thirty five the Nets, but just their
Speaker 12: fifth win since November one, thirty two to one to
Speaker 12: fourteen in Portland. Nick's play tonight in Philadelphia. They may
Speaker 12: be without Karl Anthony Towns. He hurt his thumb in
Speaker 12: the game. This past Monday, all three New York hockey
Speaker 12: teams lost. Rangers at Colorado three two in overtime. The
Speaker 12: Acid tie the game of the minute. Thirteen left Islanders
Speaker 12: got shut out by Ottawa two nothing. The Devil's lost
Speaker 12: to Florida two to one in the shootout. First place
Speaker 12: Capitals three nothing went over. Anaheim Bruins beat Tampa Bay
Speaker 12: six to two. Round to the Australian Open saw a
Speaker 12: second straight four set victory for the ten time champion
Speaker 12: Novak Djocovis. Carlos Alca has lost only five games straight
Speaker 12: set wins for the women's top seed, Arena Sablanca as
Speaker 12: well as Jess Pagoula and Coco Got. The second week
Speaker 12: of TGL That's Tomorrow's Golf League played indoors, some real,
Speaker 12: some simulated. Tiger Woods one of the founders, and he
Speaker 12: played not all that well. Tiger's team lost the fifty
Speaker 12: hole match twelve to one. Johns Dashieller, Bloomberg Sports Karen Nathan.
Speaker 4: Coast to Coast on Bloomberg Radio, nationwide on Sirius.
Speaker 3: XM, and around the world on Bloomberg dot Com and
Speaker 3: the Bloomberg Business app.
Speaker 9: This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan Hager. Another morning with little led
Speaker 3: up to the dangerous weather that has fueled the Los
Speaker 3: Angeles wildfires for more than a week. Now, even more
Speaker 3: challenging conditions are in the forecast for today and the
Speaker 3: warning from La Mayor Karen Bass.
Speaker 4: We are not out of this crisis yet.
Speaker 1: We still have another twenty four to forty eight hours
Speaker 1: and so Angelino's please be safe.
Speaker 3: Joining us now for the update Bloomberg News Senior editor
Speaker 3: Bill Ferries. So, Bill, where do things stand now? What
Speaker 3: kind of conditions are we expecting today?
Speaker 7: Good morning, Good morning, Nathan.
Speaker 13: Yeah, there's really been no reprieve for residents of Los Angeles,
Speaker 13: southern California or the firefighters out still battling these blazes.
Speaker 13: With those Santa Ana wins continuing to gust up to
Speaker 13: sixty miles an hour.
Speaker 7: There were some.
Speaker 13: New fires that started over the last day. Firefighters were
Speaker 13: largely able to contain or extinguish those. But when you're
Speaker 13: talking about the two main fires, they eat and fire
Speaker 13: that's only thirty five percent contained still, and the Palisades
Speaker 13: fire even in worse shape eighteen percent contained, so a
Speaker 13: lot of work still ahead. There is some hope that
Speaker 13: humidity levels at least will be picking up later in
Speaker 13: the week and maybe the winds dying down a little bit.
Speaker 13: That's important in terms of helping the vegetation not become
Speaker 13: quite as dry. But there are already some concerns about
Speaker 13: weather winds might be picking up about a week from
Speaker 13: now when the weather conditions shift again. So still very
Speaker 13: tough time. You've got eighty eighty eight thousand residents under
Speaker 13: evacuation orders and two million people in that region facing
Speaker 13: extreme fire conditions.
Speaker 3: Wow, and it sounds as though the resources that are
Speaker 3: being put to bear against these fires are really overwhelming
Speaker 3: now firefighters from as far away as Mexico and Canada.
Speaker 3: Is there still a question about whether there's enough resources
Speaker 3: going into this.
Speaker 13: It seems an issue of the resources than just the
Speaker 13: scale of the of what they're facing at this point.
Speaker 13: It's you know, it's really the conditions are really not
Speaker 13: favorable to the firefighters at this point. It haven't been.
Speaker 13: You have these strong winds continuing to blow. Those can
Speaker 13: really fueling those fires and keep them kind of moving along.
Speaker 13: So it's less it seems less an issue with the resources,
Speaker 13: whether it's personnel or water, than just the kind of
Speaker 13: the huge, the huge conditions that they are up against
Speaker 13: at this point.
Speaker 3: Just as shift gears. Another major story I know you're
Speaker 3: following is this Securities and Exchange Commission lawsuit that Elon
Speaker 3: Musk is now facing over his disclosures ahead of the
Speaker 3: Twitter buyout. Is this the kind of case that we
Speaker 3: were expecting the SEC to make against Musk, given that
Speaker 3: he's really been under scrutiny for quite some time now.
Speaker 7: Yeah.
Speaker 13: I mean, Musk did provide a hint of this in
Speaker 13: December when he released a letter he had received from
Speaker 13: the SEC. It's really hard to know whether this is
Speaker 13: kind of more of a symbolic parting shot by the
Speaker 13: outgoing Bided administration and the SEC chief, or whether it
Speaker 13: will really have an impact. I mean, the crux of
Speaker 13: their argument is that Musk, when he was he passed
Speaker 13: this five percent ownership threshold in Twitter in late March
Speaker 13: twenty twenty two, that he did not let the public
Speaker 13: let investors know as quickly as he should have that
Speaker 13: he was becoming a large stakeholder in the company in
Speaker 13: that time. When that information wasn't public, he continued to
Speaker 13: buy hundreds of millions of dollars in shares. If investors
Speaker 13: had known Elon Musk was there doing that, they probably
Speaker 13: would have gotten a higher price. That's what the SEC
Speaker 13: is saying, that investors were built of about one hundred
Speaker 13: and fifty million dollars. But whether that case is something
Speaker 13: that goes forward in the next administration when you have
Speaker 13: a new SEC share, that's something we're going to have
Speaker 13: to wait and find out.
Speaker 2: This is Bloomberg Day Break, your morning podcast on the
Speaker 2: stories making news from Wall Street to Washington and beyond.
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Speaker 3: And I'm Nathan Hager. Join us again tomorrow morning for
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