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Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is is Bloomberg

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Speaker 1: day Break for Friday, January thirteen. Coming up this hour,

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Speaker 1: potential legal repercussions for President Biden over his handling of

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Speaker 1: classified documents. Bank earnings kickoff with JP Morgan, City Group,

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Speaker 1: b of A and Lust Fargo recording bets on rate hikes,

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Speaker 1: slide as inflation cools, and Apple takes a bite out

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Speaker 1: of Tim Cook's pay. New York Mayor Adams warns of

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Speaker 1: migrant frost and is nearly one hundred three billion dollar budget.

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Speaker 1: Whilst the only child of Elvis Presley, Lisa Marie Presley,

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Speaker 1: has died. Michael barr more ahead, I'm John stash Our

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Speaker 1: sports the Nets playing without Kevin rand lost at home

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Speaker 1: to the Celtics. The loss for the Islanders a thrilling

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Speaker 1: overtime win for the Ranger. That's all s tradyhead on

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Speaker 1: Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg

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Speaker 1: nine one, Washington d C, Bloomberg one oh six one, Boston,

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Speaker 1: Bloomberg nine sixties and Francisco Sirius x M one nineteen

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Speaker 1: and around the world on Bloomberg Radio Dot com and

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Speaker 1: via the Bloomberg Business app. Good morning, I'm Nathan Hagart

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Speaker 1: and I'm Karin Moscow. Here are the stories we're following today.

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Speaker 1: We begin with a growing political and now legal issue

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Speaker 1: for President Biden. Attorney General Merrick Garland has named a

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Speaker 1: special counsel after two sets of classified documents were found

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Speaker 1: in one of the President's offices and now his garage.

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Speaker 1: President Biden says he has been cooperating fully. The Department

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Speaker 1: of Justice was immediately uh notified and the lawyers arranged

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Speaker 1: for the Department of Justice to take possession of the document.

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Speaker 1: So you're gonna see We're gonna see all this on fold.

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Speaker 1: The president says he takes classified documents seriously. New York

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Speaker 1: Law School professor Rebecca roy If he says, this puts

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Speaker 1: the president in a difficult position. None of this is

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Speaker 1: good and it should be troubling, and it should be

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Speaker 1: troubling to Americans, regardless of your political affiliation. No president,

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Speaker 1: no former vice president, should be taking classified documents and

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Speaker 1: putting in them someplace, keeping them someplace like a garage,

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Speaker 1: even if that garage is locked. New York Law schools

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Speaker 1: or Becca ROYFI spoke with our Washington, corresponded Joe Matthew

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Speaker 1: on Bloomberg Sound on. Catch the show weekdays at five

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Speaker 1: pm Eastern on Bloomberg Radio or download sound on wherever

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Speaker 1: you get your podcasts. Meantime, Nathan Geo politics is in

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Speaker 1: focus for President Biden today. He's meeting with Japanese Prime

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Speaker 1: Minister Fumio Kashita at the White House, Bloomberg said. Baxter

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Speaker 1: reports there is expected to be an update on the

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Speaker 1: nation's Global Security Agreement. Both sides have already said that

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Speaker 1: the alliance has never been stronger, but National Security Council

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Speaker 1: spokesman John Kirby says threats from Russia and China are

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Speaker 1: causing the agreements to be updated. We modernize the alliance

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Speaker 1: by announcing that attacks to from and within space could

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Speaker 1: lead to the invocation of Article five of the US

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Speaker 1: Japan Security Treaty. Kirby says Japan is stepping up its

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Speaker 1: commitments to the alliance and they will pay huge dividends.

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Speaker 1: In San France, Fisco, I'm at Baxter Bloomberg day Break,

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Speaker 1: Thanks said, We now turned to the markets or earnings

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Speaker 1: for big banks kickoff this morning. JP Morgan City Group,

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Speaker 1: Bank of America, and Wells Fargo all report quarterly results.

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Speaker 1: We get a preview from Bloomberg's Charlie Wells. There have

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Speaker 1: been so many pressures for these large American banks. There's

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Speaker 1: the concern about a potential recession that we've been debating

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Speaker 1: about for the past few weeks. There have been issues

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Speaker 1: with a slowdown and deal making that has really hurt fees.

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Speaker 1: It's looking like at some of these major banks, investment

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Speaker 1: banking revenue for the fourth quarter could be down about

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Speaker 1: fifty and overall profits at these large banks are looking

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Speaker 1: like in the fourth quarter they could be down about

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Speaker 1: fifteen percent. Bloomberg's Charlie Wells says the outlook from banks

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Speaker 1: C e O S may draw more attention this morning

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Speaker 1: than the actual numbers well as we await those results

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Speaker 1: in Nathan Global. Stocks are heading for a healthy game

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Speaker 1: this week, and there's growing optimism that easing inflation will

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Speaker 1: lead to less aggressive rate hikes. Here's Philadelphia Fed President

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Speaker 1: Patrick Harker. In my view, the base of us raising

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Speaker 1: them severy five supports of the time are surely cast.

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Speaker 1: In my view, types of twenty five basis points will

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Speaker 1: be appropriate going for Philadelphia Fed President Patrick Harker made

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Speaker 1: the comments after yesterday's consumer price data, which showed inflation

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Speaker 1: continued to slow in December, and we may get more

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Speaker 1: clues Karen on the direction of range forest rates and

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Speaker 1: a couple more FED officials speak today. New York FED

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Speaker 1: President John Williams, Minneapolis FED Chief Neil cash Carry, and

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Speaker 1: Philadelphia FED President Patrick Harker all speak at separate events today.

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Speaker 1: Moll in the UK, Nathan, the British economy unexpectedly grew

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Speaker 1: in November. Let's go live, delight did, and get the

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Speaker 1: latest with Bloomberg at Daybreak Europe anchor Stephen Carroll. Good

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Speaker 1: morning Stephen, Good morning kyral Than Nathan. The UK economy

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Speaker 1: may avoid tumbling intercession for a little longer thanks to

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Speaker 1: November's surprise point one percent growth in GDP consumer facing services,

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Speaker 1: helping to boost out button in particular spending on hospitality

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Speaker 1: during the World Cup strikes, though affected activity in the

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Speaker 1: postal and railway industries. The figures may strengthen calls for

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Speaker 1: further interest rate rise US from the Bank of England,

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Speaker 1: as inflation in the UK remains near the highest level

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Speaker 1: in four decades. In London, I'm Stephen Carroll, Bloomberg Daybreak, Stephen. Thanks.

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Speaker 1: Staying in Europe, Sweden's inflation rate reached double digits for

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Speaker 1: the first time in more than three decades. In December,

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Speaker 1: inflation there rose by an annual rate of ten point

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Speaker 1: two percent. That was higher than expected. Well back here

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Speaker 1: in the US, Nathan, we're seeing a big pay cut

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Speaker 1: for one of the country's premier executives. Apple CEO Tim

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Speaker 1: Cook will see his total compensation decline this year. We

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Speaker 1: get more from Bloomberg's Doug Krisner. Apple cited investor feedback

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Speaker 1: as well as a request from Cook himself. The pay

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Speaker 1: reduction will be more than this here, to forty nine

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Speaker 1: million dollars, and most of that will take the form

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Speaker 1: of stock grants. Apple is drawn criticism about Cook's previous

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Speaker 1: ninety nine million dollar compensation package from groups such as

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Speaker 1: Institutional Shareholder Services. The advisory firm said half of the

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Speaker 1: rewards didn't depend on performance criteria like the company's share price.

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Speaker 1: Last year, a majority of Apple holders voted to approve

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Speaker 1: Cooke's package. In New York, I'm Doug Prisoner Bloomberg Daybreak, Doug,

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Speaker 1: thank you. And in China today we have news that

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Speaker 1: government entities are set to take so called golden shares

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Speaker 1: and units of Ali, Baba and ten Cent. That suggests

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Speaker 1: Faijing is moving to ensure greater control over key players

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Speaker 1: in the internet arena. The shares could let officials influence

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Speaker 1: the industry over the long term. Straight ahead, your latest

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Speaker 1: local headlines, plus a check of sports. And this is Bloomberg.

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Speaker 1: Thanks Caring. It's fifty four degrees right now in Central Park.

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Speaker 1: We've got a cold front moving in this morning. We're

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Speaker 1: going to get into the upper fifties early today. Temperatures

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Speaker 1: will drop this afternoon under mostly cloudy sky. Time to

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Speaker 1: take a look at some of the other stories making

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Speaker 1: news in New York and around the world with Bloomberg's

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Speaker 1: Michael var Good morning, Michael, Good morning. Nathan. Lisa Marie Pressley,

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Speaker 1: a musician and the only daughter of rock and roll

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Speaker 1: legend Elvis Presley, died after being rushed to a Los

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Speaker 1: Angeles area hospital, believed to be of cardiac arrest. She

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Speaker 1: was married four times, including to Michael Jackson and Colas Cage.

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Speaker 1: It was just last week she was at Graceland to

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Speaker 1: celebrate what would have been her father's eight birthday. Then

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Speaker 1: I love you, I keep saying You're the only people

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Speaker 1: that can bring me out of my house. Lisa Marie

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Speaker 1: Pressley was fifty four. New York City Mayor Eric Adams

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Speaker 1: proposed a nearly one hundred three billion dollar budget for

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Speaker 1: this coming fiscal year. The mayor's projections call for a

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Speaker 1: three point two billion dollar gap in fiscal five billion

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Speaker 1: dollars in six and six point five billion in Adam

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Speaker 1: says though the city achieved much of its savings by

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Speaker 1: taking down vacant positions, we face significant challenges. I want

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Speaker 1: to be clear. In order to keep moving forward while

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Speaker 1: preserving the programs and services we value, we must be

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Speaker 1: careful and make the best use of our resources. Mayor

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Speaker 1: Adams also says the city is contending with a one

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Speaker 1: billion dollar anticipated cost for services provided this year to

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Speaker 1: recently arrived migrants. New Jersey Governor Phil Murphy said residents

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Speaker 1: can expect significant tax cuts, even after the state passed

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Speaker 1: a two billion dollar property tax rebate program last year. Murphy,

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Speaker 1: speaking to Bloomberg's David Weston on Balance of Power, also

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Speaker 1: talked about this week's Annual Policy Address, when he proposed

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Speaker 1: incentives to keep more workers, including employees who work from home,

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Speaker 1: in New Jersey. He says, it's an effort to cut

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Speaker 1: down the out of state income tax on workers who

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Speaker 1: commute to New York. Not every job is going to

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Speaker 1: be in a physical office. Uh, as long as the

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Speaker 1: job is in New Jersey, we want that job. Whether

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Speaker 1: it's I mentioned in my speech, whether it's in an

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Speaker 1: office tower or at Newark where I am now, or

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Speaker 1: at a kitchen table at Cherry Hill, we want those

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Speaker 1: jobs at Jersey. We want to embrace and recognize the

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Speaker 1: new reality, the governor says. In twenty more than four

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Speaker 1: thousand New Jersey residents paid taxes in New York. Powerful

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Speaker 1: storms are being blamed for at least seven deaths across

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Speaker 1: Georgia and Alabama. Global News twenty four hours a day

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Speaker 1: on air and on Bloomberg quick Take, powered by more

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Speaker 1: than twenty seven hundred journalists and analysts more than a

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Speaker 1: hundred twenty countries. Michael bar this is Bloomberg, Nathan. Thanks Michael,

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Speaker 1: time for the Bloomberg Sports update, brought to you by

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Speaker 1: twice stayed out here. Good morning, John, Good morning Nathan.

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Speaker 1: Nets and Celtics, top two teams on the East, both

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Speaker 1: were without all stars. No Kevin ran for Likely at

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Speaker 1: least a month knee injury of the night. After scoring

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Speaker 1: forty one points for Boston, Jalen Brown sat out injured hip.

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Speaker 1: Tight game at Barkley's until the Celtics began the fourth

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Speaker 1: quarter on a twelve to two run. They won one

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Speaker 1: oh improving to an NBA best thirty one and twelve.

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Speaker 1: Kymrae Ivan led the Nets twenty four points. For Ben

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Speaker 1: Simmons no points, but he did have nine rebounds and

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Speaker 1: thirteen assists. At the Garden, Rangers went fifty nine minutes

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Speaker 1: and fifty nine seconds without scoring. KeAndre Miller finally got

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Speaker 1: a Ranger goal with two ten of a second lad

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Speaker 1: and then Adam Fox got another a minute sixteen into overtime,

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Speaker 1: dramatic win for the Blue Shirts to one over Dallas.

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Speaker 1: Islanders lost in Minnesota three to one. Wild Card weekend

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Speaker 1: begins tomorrow with Seattle at San Francisco. The forty minors

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Speaker 1: have won their last ten games. Tomorrow night, it's much

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Speaker 1: improved Jacksonville hosting the l A Chargers. The Giants play

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Speaker 1: Sunday in Minnesota. Other than Graham Gano, who once kicked

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Speaker 1: in the Super Bowl, there is virtually no playoff experience

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Speaker 1: on the Giants roster, something downplayed by coach Brian day Ball. Think,

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Speaker 1: really what matters is taking advantage of your opportunities when

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Speaker 1: they come um and playing a good football game and

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Speaker 1: coaching a good football game. So I don't know if

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Speaker 1: that answers your question, but I really think it's an

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Speaker 1: overrated It's an overrated thing. And a couple of weeks,

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Speaker 1: if the a f C Championship game is between the

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Speaker 1: top two seeds Kansas City and Buffalo, the game will

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Speaker 1: be played in Atlanta. They had decided it would be

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Speaker 1: a neutral site because the Bills didn't finish that game

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Speaker 1: in Cincinnati that could have gained them the home field.

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Speaker 1: John Stash, Bloomberg Sports Nathan. Thanks John. The Bloomberg Sports

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Speaker 1: Report was brought to you by Audie. Don't let someone

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Speaker 1: else drive off in the Audie model you've always wanted.

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Speaker 1: Visit your local Tri state autie dealer to get behind

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Speaker 1: the wheel of yours today, or visit Autie Offers dot

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Speaker 1: com for more information. Analysis on the Special Council Investigation

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Speaker 1: of the President Biden's Classified Materials straight ahead first SMP

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Speaker 1: futures are little changed. Down futures up seventeen points, nastack

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Speaker 1: futures down fourteen points, Live from the Interactive Broker Studio,

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Speaker 1: broadcasting coast to coast, Bloomberg he leven Freeo, New York, Bloomberg, Washington,

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Speaker 1: Bloomberg one six one Boston, Bloomberg nine sixty, San Francisco,

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Speaker 1: Sirius XM one nineteen, the Bloomberg Business app and Bloomberg

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Speaker 1: dot Com. This is Bloomberg day Break. I'm Nathan Hagar.

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Speaker 1: Good morning. A political headache for President Biden is turning

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Speaker 1: into a legal one now with Attorney General Merrick Garland

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Speaker 1: appointing a special counsel to investigate classified documents found in

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Speaker 1: two local pations used by the President. This appointment underscores

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Speaker 1: for the public the Department's commitment to both independence and accountability,

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Speaker 1: and particularly sensitive matters. Attorney General Merrick Garland is named

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Speaker 1: Robert Herr, a former U S attorney appointed by former

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Speaker 1: President Donald Trump to lead the probe. Let's bring it,

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Speaker 1: Gregg Value are for war on this, Chief US policy

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Speaker 1: strategist at a GF Investments. Greg Good morning. Is this

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Speaker 1: just political or has it turned into something more for

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Speaker 1: the president now? I think it's something more, Nathan, good morning.

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Speaker 1: I think that a special council means that both Trump

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Speaker 1: and Biden are under criminal investigation, and for Republicans that

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Speaker 1: they'll claim there's an equivalence. I'm not sure that's accurate,

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Speaker 1: but they'll claim that, and it really has given the

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Speaker 1: Democrats in this city a case of real anxiety. Well,

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Speaker 1: what more do Democrats need to do in your estimation

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Speaker 1: to try to get ahead of this? Is there any

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Speaker 1: getting ahead of it at the point, I don't know.

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Speaker 1: And the reason you don't know is that you don't

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Speaker 1: know if there are more documents, if there are more

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Speaker 1: things that will surface over the next week or two.

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Speaker 1: Very very uncertain. I think the argument that well, everybody

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Speaker 1: does it is not or that what Biden has done

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Speaker 1: is not as serious as what Trump has done, that

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Speaker 1: doesn't really meet the standard of what this really means

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Speaker 1: for voters. And I think for a lot of voters

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Speaker 1: there's now going to be an equivalency that both of

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Speaker 1: them are attained it well. As you mentioned, though, Greg,

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Speaker 1: this is something that does seem to keep cropping up

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Speaker 1: in one way or another. You mentioned the investigation into

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Speaker 1: former President Trump's Mara Lago documents, and many of us

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Speaker 1: recalled the controversy surrounding former Secretary of State Hillary Clinton

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Speaker 1: and the classified materials found in her computer server. Why

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Speaker 1: does this keep cropping up? Does it say something about

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Speaker 1: the classification system in Washington? Could it be just sloppy

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Speaker 1: record keeping, lack of attention to details, a sense that

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Speaker 1: maybe the rules don't apply to people. Hard to say,

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Speaker 1: but it's going to stay out there. And for the

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Speaker 1: Republicans who had this cringe inducing spectacle a week ago

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Speaker 1: in the House, they get to change the subject and

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Speaker 1: they get to say that, well, Biden is under criminal

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Speaker 1: investigation as well. This is a game changer. What's your

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Speaker 1: reaction to the appointment of Robert Herr as the Special Council?

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Speaker 1: We mentioned a moment ago that he is a Trump appointee.

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Speaker 1: What what does he bring to the table. He's a

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Speaker 1: tough guy. He's going to be I think thorough. And

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Speaker 1: what Democrats worry about, at least the ones I talked

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Speaker 1: to yesterday, is that he could find more. Uh. Sometimes

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Speaker 1: the Special Council can can veer off, like the Whitewater

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Speaker 1: investigation veered off into Monica Lewinsky. So there's a possibility

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Speaker 1: that a special prosecutor could be a represent a Hinefield

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Speaker 1: for the Democrats, and we've been talking for the last

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Speaker 1: couple of days about the timing of the announcement as

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Speaker 1: well the fact that we found out about these classified

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Speaker 1: documents about two months after they were turned over back

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Speaker 1: to the National Archives. I wonder what this means about

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Speaker 1: the timing for a potential presidential re election announcement for

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Speaker 1: President Biden. It's something he's been mulling for a couple

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Speaker 1: of months. Here. Does this change the calculation for him?

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Speaker 1: Maybe a little. You've hit Nasan on, But I think

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Speaker 1: is the key issue here, and that is could this

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Speaker 1: affect the nomination process. There are a lot of Democrats

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Speaker 1: who are ready to run if Biden decides not to

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Speaker 1: seek re election, people like Phil Murphy and New Jersey

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Speaker 1: Gretchen Whitmer in Michigan. So a lot of Democrats are

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Speaker 1: concerned that even though inflation seemingly has peaked, even though

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Speaker 1: Biden's job approval rating is up a bit, that he

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Speaker 1: still has real problems and that there's still a lot

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Speaker 1: unknown in a special prosecutor. Over the next few weeks

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Speaker 1: and in our last minute here, Greg, presumably President Biden

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Speaker 1: is going to be trying to stay focused on his agenda.

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Speaker 1: He's meeting with global leaders today and later on next week.

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Speaker 1: But how much of a shadow does this cast over

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Speaker 1: the president's agenda going forward? Here? Well, you saw this yesterday, Nathan.

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Speaker 1: He came out and wanted to talk about a good

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Speaker 1: inflation number and the state of the economy, and reporters

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Speaker 1: basically shouted him down. They wanted to talk about these documents.

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Speaker 1: And I think that messaging for the Biden administration is

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Speaker 1: about to get a lot tougher. This is Bloomberg Daybreak Today,

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Speaker 1: your morning brief on the story's making news from Wall

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Speaker 1: listen live each morning starting at five am Wall Street

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Speaker 1: Heart Radio app, and on Bloomberg dot Com. I'm Nathan

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Speaker 1: Hager and I'm Karen Moscow. Join us again tomorrow morning

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