Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: We begin with the drama surrounding the highly anticipated decision
Speaker 3: into the United States first exchange traded fund tied directly
Speaker 3: to bitcoin. We get the latest from Bloomberg's John Tucker. John,
Speaker 3: what's the latest, Nathan?
Speaker 4: You're going to add this to the long list of
Speaker 4: twists and turns in the ten plus year effort to
Speaker 4: bring a spot bitcoin to EDF to market. Somebody hacked
Speaker 4: the ex account of the Securities and Exchange Commission. It
Speaker 4: made a false posts the SEC had approved a Bitcoin ETF.
Speaker 4: The agency quickly denied any approval and said its ex
Speaker 4: account had been compromised. The false post on the SEC's
Speaker 4: X account was up for a number of minutes before
Speaker 4: the agency clarified it was inaccurate, But in that period
Speaker 4: Bitcoin posted a jump to almost forty eight thousand dollars
Speaker 4: before falling back to forty five thousand. About a dozen
Speaker 4: companies have applied to listingts back by bitcoin in the US.
Speaker 4: The SEC has until today to take action at least
Speaker 4: in one of those applications. I'm John Tucker, Bloomberg radio.
Speaker 2: All right, John, thank you well. Now we want to
Speaker 2: get the latest on the grounded Boeing seven thirty seven
Speaker 2: Max nine. The planemaker CEO Dave Calhoun says the company
Speaker 2: will have to face its own shortcomings as it deals
Speaker 2: with the door plug belowout on last week's Alaska Airlines flight.
Speaker 5: We're going to approach this number one acknowledging our mistake.
Speaker 5: We are going to approach it with one hundred percent
Speaker 5: in complete transparency every step of the way. We're going
Speaker 5: to work with the NTSB, who is investigating the accident itself,
Speaker 5: to find out what the weak cause is. I have
Speaker 5: a long experience with this group. They're as good as
Speaker 5: it gets.
Speaker 2: And Boeing CEO Dave Calhoun fought back tears as he
Speaker 2: addressed an all hands meeting on the incident. Alaska and
Speaker 2: United Airlines say they've discovered more Max nine jets with
Speaker 2: loose bulls after the FAA ordered the model grounded formally.
Speaker 2: Inspections still have not yet begun.
Speaker 3: All right, Keren, Well, let's turn to politics now. A
Speaker 3: federal appeals court appears skeptical of Donald Trump's claim that
Speaker 3: he's immune from prosecution on charges that he illegally tried
Speaker 3: to overturn the twenty twenty election. Bloomberg's Amy Morris reports
Speaker 3: from Washington.
Speaker 6: The former president was in the courtroom during the hearing
Speaker 6: when Appeals Court Judge Florence pen asked a Trump lawyer
Speaker 6: whether a president would be immune for having taken a
Speaker 6: bribe or ordering Seal Team six to murder a political rival.
Speaker 6: Trump's legal team responded that the president would have to
Speaker 6: be impeached and convicted first. At a press conference after
Speaker 6: the hearing, Trump said that denying him immunity would cause
Speaker 6: quote bedlam in the country. Trump is also expected to
Speaker 6: sit in on a hearing tomorrow in his civil fraud
Speaker 6: case in New York. In Washington, Amy Morris Bloomberg Radio.
Speaker 2: All right, Amy, thanks, so we're learning more about the
Speaker 2: hospitalization of Defense Secretary Lloyd Austin and the lapse in
Speaker 2: communication regarding his whereabouts. Austin had prostate cancer surgery on
Speaker 2: December twenty second, and was re admitted to the hospital
Speaker 2: on New Year's Day because of complications. National Security Council
Speaker 2: spokesperson John Kirby explained the timeline surrounding Austin's condition and
Speaker 2: when the president knew about it.
Speaker 7: He was not informed until last Friday that Secretary Austin
Speaker 7: was in the hospital. He was not informed until this
Speaker 7: morning that the root cause of that hospitalization was prostate cancer.
Speaker 2: National Security Council spokesperson John Kirby, the White House has
Speaker 2: announced a review of proto calls around Cabinet secretaries who
Speaker 2: are unreasonable or incapacitated.
Speaker 3: Well, another cabinet secretary, Secretary of State Anthony Blincoln, is
Speaker 3: still in the Middle East, Karen. He meets today with
Speaker 3: Palestinian President Mahmoud Abbas in Tel Aviv. Yesterday, Blincoln said
Speaker 3: Israel must stop undercutting Palestinian governance and rein in settler violence.
Speaker 8: Israel must stop taking steps that undercut Palestin's ability to
Speaker 8: govern themselves effectively extrame the settler violence carried out with impunity.
Speaker 8: Settlement expansion, demolitions, evictions all make it harder, not easier,
Speaker 8: for Israel to achieve lasting.
Speaker 3: Piece and a Secretary blinkn has met with the leaders
Speaker 3: of Saudi Arabia, Jordan, Cattter, the United Arab Emirates, and
Speaker 3: Turkey during his latest Middle East trip.
Speaker 2: Well, Nathan, we want to get back to the markets
Speaker 2: and update you on a story we told you about yesterday,
Speaker 2: It is now official. Hewlett Packard Enterprise has agreed to
Speaker 2: buy Juniper Networks for fourteen billion dollars. The maker of
Speaker 2: data center hardware will pay forty dollars to share in
Speaker 2: cash for Juniper. That price represents more than half of
Speaker 2: HPE's twenty one billion dollar market value and a thirty
Speaker 2: two percent premium over Juniper's closing price before talks of
Speaker 2: a deal emerged.
Speaker 3: Sticking with the tech theme, Karen Ces the Consumer Technology
Speaker 3: Association's annual trade show of all Things Tech is underway
Speaker 3: in Las Vegas, and Bloomberg Technology reporter Ed Ludlow is
Speaker 3: covering the show for.
Speaker 9: US Day one at cs Las Vegas. The theme is
Speaker 9: definitely AI everything. Take, for example, Walmart, a big box retailer,
Speaker 9: but putting a lot of emphasis on a new generative
Speaker 9: AI search tool in the Walmart app on iOS only.
Speaker 9: Instead of searching for a specific item, the generative AI
Speaker 9: search allows you to look for an event or a theme.
Speaker 9: Then there's a kind of mainstay announcement. What was interesting
Speaker 9: is Google and Amazon both went after Apple's airplay, So
Speaker 9: in Google's case, they're working on the ability to cast
Speaker 9: video from an Android smartphone to a TV. Amazon actually
Speaker 9: want to step further. They developed technology where you can
Speaker 9: stream video from either an Android phone or an iOS
Speaker 9: or iPhone to Amazon's own TV hardware. Ed Ludlow for
Speaker 9: Bloomberg News in Las Vegas, Nevada.
Speaker 2: All right, Ed, thank you well. I did mention Amazon
Speaker 2: and they are also making news this morning at a
Speaker 2: different front. Bloomberg News has learned Amazon's live streaming site
Speaker 2: Twitch is poised to get thirty five percent of its staff,
Speaker 2: and that's about five hundred workers. Time now for a
Speaker 2: look at some of the other stories making news around
Speaker 2: the world, and for that we're joined by Bloomberg's Amy
Speaker 2: Morris Samy.
Speaker 6: Good morning, Good morning, Kieren. More than forty states are
Speaker 6: under blizzard, wind, snow or flood alerts. Winter storms continue
Speaker 6: to blanket the country. Bloomberg meteorologist Robed Carolyn.
Speaker 10: Significant storm system that spent the last twenty four hours
Speaker 10: wreaking havoc from the Great Lakes to the Gulf Coast.
Speaker 10: Now lifting out of the northeast. The worst of the
Speaker 10: weather of this morning across eastern portions of New England,
Speaker 10: but we'll still see snow on the backside of the
Speaker 10: system from Michigan into parts of the Ohio and Tennessee
Speaker 10: River valleys. Scattered showers are possible over Virginia and the Carolinas.
Speaker 10: The heavy rain, though in north in New England, should end,
Speaker 10: as should the snow, but windy conditions will continue from
Speaker 10: the mid Atlantic into the Northeast today.
Speaker 6: Bloomberg Meteorologist Rob Carolyn said at Republican leaders say Congress,
Speaker 6: we'll need another temporary spending measure to avoid a partial
Speaker 6: government shut down in ten days. How's Republican Matt Rosendale
Speaker 6: of Montana tells ABC he does not support the bipartisan
Speaker 6: compromise on spending.
Speaker 11: Cast we're still looking at about one point six trillion
Speaker 11: dollars spend in discretionary spending, and we're going to be
Speaker 11: holding a press conference with members of the House and
Speaker 11: Senate saying that we are more concerned with securing our
Speaker 11: southern border and making sure that that is taken care
Speaker 11: of than we are in writing another check to Joe
Speaker 11: Biden to continue his agenda, and.
Speaker 6: The Senate Republican John Thune says they will need a
Speaker 6: stopgap measure to march. Minority leader Mitch McConnell acknowledged there's
Speaker 6: just not enough time to resolve lingering spending differences before
Speaker 6: the deadline.
Speaker 12: We need to prevent a government shutdown, and so the
Speaker 12: obvious question is how long does the cr need to
Speaker 12: be And that'll be up to the Majority leader and
Speaker 12: the Speaker to determine the links at.
Speaker 6: How Speaker Mike Johnson has said he will not bring
Speaker 6: a continuing resolution to the floor for a vote. Vice
Speaker 6: President Kamala Harris was back in Atlanta for a roundtable
Speaker 6: discussion on protecting voting rights.
Speaker 13: We have seen in the state of Georgia by example
Speaker 13: of what is happening in the country, anti voter law
Speaker 13: laws that have limited dropboxes made it illegal to even
Speaker 13: provide food and water to people standing in line, often
Speaker 13: for hours.
Speaker 6: Vice President Harris met with city and state leaders near
Speaker 6: the Georgia Tech Campus. Global news twenty four hours a
Speaker 6: day and whenever you want it with Bloomberg News. Now
Speaker 6: I Amy Morris in this is Bloomberg Karen.
Speaker 2: All right, Amy, thank you well. We do bring you
Speaker 2: news throughout the day right here on Bloomberg Radio, much
Speaker 2: as Amy said, but now also as she said, you
Speaker 2: can get the latest news on demand whenever you want it.
Speaker 2: You just subscribe to Bloomberg News Now to get the
Speaker 2: latest headlines of the click of a button, you can
Speaker 2: get informed on your schedule. You can listen and subscribe
Speaker 2: to Bloomberg News Now on the Bloomberg Business app, Bloomberg
Speaker 2: dot com plus Apple, Spotify, and anywhere else you get
Speaker 2: your podcasts. Well, and it's time now for the Bloomberg
Speaker 2: Sports Update. Here's John stash Hour John Karn.
Speaker 14: Just two years ago, Mike Rabel was the NFL the
Speaker 14: year he coached the Tennessee Titans to the AFC Championship
Speaker 14: game back in twenty nineteen. But after four straight winning seasons,
Speaker 14: two seasons under five hundred six to eleven, this past
Speaker 14: year and the Titans have fired dray Ball, and that
Speaker 14: immediately begins seculation that he could become the new coach
Speaker 14: of the New England Patriots, assuming Bill Belichick departs. Raybell
Speaker 14: played for the Patriots for eight years, won three Super Bowls.
Speaker 14: The biggest underdog of Wildcard Weekend the Pittsburgh Steelers. They
Speaker 14: have to go play red hot Buffalo, and the Steelers
Speaker 14: won't have their best defensive player, TJ Wantt out with
Speaker 14: a knee injury. Mason Rudolph will be their quarterback, and
Speaker 14: he was the third string QB for much of this season.
Speaker 14: Tyrese Haliburton has the strained hamstring injury, but it could
Speaker 14: have been worse. He's gonna miss only a couple of weeks.
Speaker 14: Haliburton averaging twenty four points the game. He leads the
Speaker 14: NBA in assists. The next have won five straight since
Speaker 14: they made that trade with Toronto. They blew out Portland.
Speaker 14: The Lakers top Toronto by one. Anthony Davis scored forty one.
Speaker 14: Memphis just lost John Moran for the season, but had
Speaker 14: to win at Dallas's Desmond Main score thirty two. Minnesota
Speaker 14: improving to twenty six and ten with a win in Orlando,
Speaker 14: Detroit falling to three and thirty four. The Pistons blown
Speaker 14: out by Sacramento. Perdue, number one in the college basketball
Speaker 14: lost at Nebraska Huskers, beating number one for the first
Speaker 14: time in forty one years, and second rank Houston, who
Speaker 14: was undefeated, was upset by Iowa State. John Stanshower Bloomberg.
Speaker 15: Sports from coast to coast, from New York to San Francisco,
Speaker 15: Boston to Washington, DC, nationwide on Sirius exam. The Bloomberg
Speaker 15: Business app in Bloomberg dot com. This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan Hager. As we still wait for
Speaker 3: a decision from the Securities at Exchange Commission on approvals
Speaker 3: for the first spot bitcoin ETFs. Investors briefly thought that
Speaker 3: decision was made yesterday, only to find out the SEC's
Speaker 3: social media had been hacked. New questions about security at
Speaker 3: the agency tasked with ensuring the security of your investments.
Speaker 3: Bloomberg's Crity Gupta is here with us now. To call
Speaker 3: this an embarrassment for the SEC seems like it might
Speaker 3: be understating things.
Speaker 16: Yeah, it's a really interesting and almost ironic situation that
Speaker 16: you see from the SEC and of course a lot
Speaker 16: of these bitcoin issuers, because at its core of the
Speaker 16: concern about this ETF was simply this idea that bitcoin
Speaker 16: is a very volatile asset. It's a decentralized asset, it's
Speaker 16: a hard to track asset, and that means that if
Speaker 16: you start to create a vehicle, in this case, an
Speaker 16: ETF that allows the masses and the general public easier
Speaker 16: access to this volatile cryptocurrency, basically, what might the repercussions
Speaker 16: of that be.
Speaker 17: Cybersecurity was one of them. Hacking was one of them.
Speaker 16: So it's only kind of ironic on a day where,
Speaker 16: or I guess the day before, where largely the expectation
Speaker 16: was that the SEC would actually give some sort of approval.
Speaker 16: That expectation also shared, by the way, by our Bloomberg
Speaker 16: Intelligence ETF team, that this is exactly how it all
Speaker 16: plays out on by the way, a social media platform
Speaker 16: owned by Elon Musk, who himself.
Speaker 17: Has been quite an advocate for the cryptocurrency.
Speaker 3: And he's also been at loggerheads with SEC chairman Gary
Speaker 3: Gensler in the past, not just about crypto but about
Speaker 3: his own trying to get Tesla to go private. We
Speaker 3: remember that four to twenty tweet a while back, and
Speaker 3: the history that Elon Musk has with the SEC.
Speaker 16: Yeah, and ironically, the SEC is now going to be
Speaker 16: investigating themselves for the idea of simply did the call
Speaker 16: kind of come from inside the house at the end
Speaker 16: of the day, because it's been investigated from the social
Speaker 16: media platform from ex's perspective about the actual hack itself,
Speaker 16: and it's been found out that it's actually wasn't a
Speaker 16: flaw in the platform itself. In fact, someone got a
Speaker 16: home hold of a number associated with the account. Because
Speaker 16: the account did have two factor verification, they were able
Speaker 16: to post something like this. But now there's a big
Speaker 16: question about whether that person or that individual or the
Speaker 16: organization was within the SEC. And for that ironically, again,
Speaker 16: the SEC now investigating themselves for market manipulation because it
Speaker 16: did move billions of dollars in cryptocurrency.
Speaker 3: Yeah, it's more than just an irony. It's raising a
Speaker 3: lot of questions about a security in and of itself
Speaker 3: within the SEC. Does this affect the timeline for whatever
Speaker 3: the SEC is going to decide about bigcoin ETFs to
Speaker 3: have this kind of hiccup, So.
Speaker 17: The expectation is that it shouldn't affect the timeline.
Speaker 16: So by the end of today, basically we should get
Speaker 16: an actual decision by the SEC about whether they or
Speaker 16: not they approved or at least make a decision on
Speaker 16: at least one of the etf that a filed. Remember
Speaker 16: we have I believe six that are currently the attention
Speaker 16: is on. It could paved the way for plenty more
Speaker 16: after that, So it shouldn't change the timeline. If it does, however,
Speaker 16: it would be one to mark for the history books,
Speaker 16: because never in history of the SEC's approval process for
Speaker 16: ETF regardless of whether it's a Bitcoin ETF or just
Speaker 16: a different kind of asset class. Do they reject ETF
Speaker 16: this late in the process. And that's why you start
Speaker 16: to see a lot of the consensus again, including Bloomberg
Speaker 16: Intelligence saying that this ETF process for Bitcoin should be
Speaker 16: a no brainer simply because they wouldn't have let it
Speaker 16: get this far if approval wasn't.
Speaker 17: In the cards.
Speaker 3: Is this going to raise questions about the approval process itself?
Speaker 3: To have this kind of question raised about what when
Speaker 3: the approval happened? After seeing that Errent tweet yesterday, I think.
Speaker 16: It won't necessarily change the approval process because this was
Speaker 16: something that the SEC has been very outfront about, very
Speaker 16: transparent about about their concerns about Bitcoin in particular. I
Speaker 16: think it might create a little bit more of a
Speaker 16: hesitancy on the investor standpoint, because this was supposed to
Speaker 16: be the moment where you kind of let open the
Speaker 16: floodgates for a lot of people to get that easier
Speaker 16: access to cryptocurrency and more easily included in their portfolios.
Speaker 16: But that might now be met with a little bit
Speaker 16: more hesitancy because it reups, a lot of those issues
Speaker 16: of security, who's behind it, who's involved, and frankly, the
Speaker 16: fact that it is a decentralized currency and you can't
Speaker 16: track it, which is why it's so hard, even in
Speaker 16: this particular scenario to say who is behind this the
Speaker 16: cyber attack.
Speaker 1: This is Bloomberg Daybreak Today, your morning brief on the
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