Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is is Bloomberg
Speaker 1: day Break for Friday, January thirteen. Coming up this hour,
Speaker 1: potential legal repercussions for President Biden over his handling of
Speaker 1: classified documents. Bank earnings kickoff with JP Morgan, City Group,
Speaker 1: b of A and Lust Fargo recording bets on rate hikes,
Speaker 1: slide as inflation cools, and Apple takes a bite out
Speaker 1: of Tim Cook's pay. New York Mayor Adams warns of
Speaker 1: migrant frost and is nearly one hundred three billion dollar budget.
Speaker 1: Whilst the only child of Elvis Presley, Lisa Marie Presley,
Speaker 1: has died. Michael barr more ahead, I'm John stash Our
Speaker 1: sports the Nets playing without Kevin rand lost at home
Speaker 1: to the Celtics. The loss for the Islanders a thrilling
Speaker 1: overtime win for the Ranger. That's all s tradyhead on
Speaker 1: Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg
Speaker 1: nine one, Washington d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco Sirius x M one nineteen
Speaker 1: and around the world on Bloomberg Radio Dot com and
Speaker 1: via the Bloomberg Business app. Good morning, I'm Nathan Hagart
Speaker 1: and I'm Karin Moscow. Here are the stories we're following today.
Speaker 1: We begin with a growing political and now legal issue
Speaker 1: for President Biden. Attorney General Merrick Garland has named a
Speaker 1: special counsel after two sets of classified documents were found
Speaker 1: in one of the President's offices and now his garage.
Speaker 1: President Biden says he has been cooperating fully. The Department
Speaker 1: of Justice was immediately uh notified and the lawyers arranged
Speaker 1: for the Department of Justice to take possession of the document.
Speaker 1: So you're gonna see We're gonna see all this on fold.
Speaker 1: The president says he takes classified documents seriously. New York
Speaker 1: Law School professor Rebecca roy If he says, this puts
Speaker 1: the president in a difficult position. None of this is
Speaker 1: good and it should be troubling, and it should be
Speaker 1: troubling to Americans, regardless of your political affiliation. No president,
Speaker 1: no former vice president, should be taking classified documents and
Speaker 1: putting in them someplace, keeping them someplace like a garage,
Speaker 1: even if that garage is locked. New York Law schools
Speaker 1: or Becca ROYFI spoke with our Washington, corresponded Joe Matthew
Speaker 1: on Bloomberg Sound on. Catch the show weekdays at five
Speaker 1: pm Eastern on Bloomberg Radio or download sound on wherever
Speaker 1: you get your podcasts. Meantime, Nathan Geo politics is in
Speaker 1: focus for President Biden today. He's meeting with Japanese Prime
Speaker 1: Minister Fumio Kashita at the White House, Bloomberg said. Baxter
Speaker 1: reports there is expected to be an update on the
Speaker 1: nation's Global Security Agreement. Both sides have already said that
Speaker 1: the alliance has never been stronger, but National Security Council
Speaker 1: spokesman John Kirby says threats from Russia and China are
Speaker 1: causing the agreements to be updated. We modernize the alliance
Speaker 1: by announcing that attacks to from and within space could
Speaker 1: lead to the invocation of Article five of the US
Speaker 1: Japan Security Treaty. Kirby says Japan is stepping up its
Speaker 1: commitments to the alliance and they will pay huge dividends.
Speaker 1: In San France, Fisco, I'm at Baxter Bloomberg day Break,
Speaker 1: Thanks said, We now turned to the markets or earnings
Speaker 1: for big banks kickoff this morning. JP Morgan City Group,
Speaker 1: Bank of America, and Wells Fargo all report quarterly results.
Speaker 1: We get a preview from Bloomberg's Charlie Wells. There have
Speaker 1: been so many pressures for these large American banks. There's
Speaker 1: the concern about a potential recession that we've been debating
Speaker 1: about for the past few weeks. There have been issues
Speaker 1: with a slowdown and deal making that has really hurt fees.
Speaker 1: It's looking like at some of these major banks, investment
Speaker 1: banking revenue for the fourth quarter could be down about
Speaker 1: fifty and overall profits at these large banks are looking
Speaker 1: like in the fourth quarter they could be down about
Speaker 1: fifteen percent. Bloomberg's Charlie Wells says the outlook from banks
Speaker 1: C e O S may draw more attention this morning
Speaker 1: than the actual numbers well as we await those results
Speaker 1: in Nathan Global. Stocks are heading for a healthy game
Speaker 1: this week, and there's growing optimism that easing inflation will
Speaker 1: lead to less aggressive rate hikes. Here's Philadelphia Fed President
Speaker 1: Patrick Harker. In my view, the base of us raising
Speaker 1: them severy five supports of the time are surely cast.
Speaker 1: In my view, types of twenty five basis points will
Speaker 1: be appropriate going for Philadelphia Fed President Patrick Harker made
Speaker 1: the comments after yesterday's consumer price data, which showed inflation
Speaker 1: continued to slow in December, and we may get more
Speaker 1: clues Karen on the direction of range forest rates and
Speaker 1: a couple more FED officials speak today. New York FED
Speaker 1: President John Williams, Minneapolis FED Chief Neil cash Carry, and
Speaker 1: Philadelphia FED President Patrick Harker all speak at separate events today.
Speaker 1: Moll in the UK, Nathan, the British economy unexpectedly grew
Speaker 1: in November. Let's go live, delight did, and get the
Speaker 1: latest with Bloomberg at Daybreak Europe anchor Stephen Carroll. Good
Speaker 1: morning Stephen, Good morning kyral Than Nathan. The UK economy
Speaker 1: may avoid tumbling intercession for a little longer thanks to
Speaker 1: November's surprise point one percent growth in GDP consumer facing services,
Speaker 1: helping to boost out button in particular spending on hospitality
Speaker 1: during the World Cup strikes, though affected activity in the
Speaker 1: postal and railway industries. The figures may strengthen calls for
Speaker 1: further interest rate rise US from the Bank of England,
Speaker 1: as inflation in the UK remains near the highest level
Speaker 1: in four decades. In London, I'm Stephen Carroll, Bloomberg Daybreak, Stephen. Thanks.
Speaker 1: Staying in Europe, Sweden's inflation rate reached double digits for
Speaker 1: the first time in more than three decades. In December,
Speaker 1: inflation there rose by an annual rate of ten point
Speaker 1: two percent. That was higher than expected. Well back here
Speaker 1: in the US, Nathan, we're seeing a big pay cut
Speaker 1: for one of the country's premier executives. Apple CEO Tim
Speaker 1: Cook will see his total compensation decline this year. We
Speaker 1: get more from Bloomberg's Doug Krisner. Apple cited investor feedback
Speaker 1: as well as a request from Cook himself. The pay
Speaker 1: reduction will be more than this here, to forty nine
Speaker 1: million dollars, and most of that will take the form
Speaker 1: of stock grants. Apple is drawn criticism about Cook's previous
Speaker 1: ninety nine million dollar compensation package from groups such as
Speaker 1: Institutional Shareholder Services. The advisory firm said half of the
Speaker 1: rewards didn't depend on performance criteria like the company's share price.
Speaker 1: Last year, a majority of Apple holders voted to approve
Speaker 1: Cooke's package. In New York, I'm Doug Prisoner Bloomberg Daybreak, Doug,
Speaker 1: thank you. And in China today we have news that
Speaker 1: government entities are set to take so called golden shares
Speaker 1: and units of Ali, Baba and ten Cent. That suggests
Speaker 1: Faijing is moving to ensure greater control over key players
Speaker 1: in the internet arena. The shares could let officials influence
Speaker 1: the industry over the long term. Straight ahead, your latest
Speaker 1: local headlines, plus a check of sports. And this is Bloomberg.
Speaker 1: Thanks Caring. It's fifty four degrees right now in Central Park.
Speaker 1: We've got a cold front moving in this morning. We're
Speaker 1: going to get into the upper fifties early today. Temperatures
Speaker 1: will drop this afternoon under mostly cloudy sky. Time to
Speaker 1: take a look at some of the other stories making
Speaker 1: news in New York and around the world with Bloomberg's
Speaker 1: Michael var Good morning, Michael, Good morning. Nathan. Lisa Marie Pressley,
Speaker 1: a musician and the only daughter of rock and roll
Speaker 1: legend Elvis Presley, died after being rushed to a Los
Speaker 1: Angeles area hospital, believed to be of cardiac arrest. She
Speaker 1: was married four times, including to Michael Jackson and Colas Cage.
Speaker 1: It was just last week she was at Graceland to
Speaker 1: celebrate what would have been her father's eight birthday. Then
Speaker 1: I love you, I keep saying You're the only people
Speaker 1: that can bring me out of my house. Lisa Marie
Speaker 1: Pressley was fifty four. New York City Mayor Eric Adams
Speaker 1: proposed a nearly one hundred three billion dollar budget for
Speaker 1: this coming fiscal year. The mayor's projections call for a
Speaker 1: three point two billion dollar gap in fiscal five billion
Speaker 1: dollars in six and six point five billion in Adam
Speaker 1: says though the city achieved much of its savings by
Speaker 1: taking down vacant positions, we face significant challenges. I want
Speaker 1: to be clear. In order to keep moving forward while
Speaker 1: preserving the programs and services we value, we must be
Speaker 1: careful and make the best use of our resources. Mayor
Speaker 1: Adams also says the city is contending with a one
Speaker 1: billion dollar anticipated cost for services provided this year to
Speaker 1: recently arrived migrants. New Jersey Governor Phil Murphy said residents
Speaker 1: can expect significant tax cuts, even after the state passed
Speaker 1: a two billion dollar property tax rebate program last year. Murphy,
Speaker 1: speaking to Bloomberg's David Weston on Balance of Power, also
Speaker 1: talked about this week's Annual Policy Address, when he proposed
Speaker 1: incentives to keep more workers, including employees who work from home,
Speaker 1: in New Jersey. He says, it's an effort to cut
Speaker 1: down the out of state income tax on workers who
Speaker 1: commute to New York. Not every job is going to
Speaker 1: be in a physical office. Uh, as long as the
Speaker 1: job is in New Jersey, we want that job. Whether
Speaker 1: it's I mentioned in my speech, whether it's in an
Speaker 1: office tower or at Newark where I am now, or
Speaker 1: at a kitchen table at Cherry Hill, we want those
Speaker 1: jobs at Jersey. We want to embrace and recognize the
Speaker 1: new reality, the governor says. In twenty more than four
Speaker 1: thousand New Jersey residents paid taxes in New York. Powerful
Speaker 1: storms are being blamed for at least seven deaths across
Speaker 1: Georgia and Alabama. Global News twenty four hours a day
Speaker 1: on air and on Bloomberg quick Take, powered by more
Speaker 1: than twenty seven hundred journalists and analysts more than a
Speaker 1: hundred twenty countries. Michael bar this is Bloomberg, Nathan. Thanks Michael,
Speaker 1: time for the Bloomberg Sports update, brought to you by
Speaker 1: twice stayed out here. Good morning, John, Good morning Nathan.
Speaker 1: Nets and Celtics, top two teams on the East, both
Speaker 1: were without all stars. No Kevin ran for Likely at
Speaker 1: least a month knee injury of the night. After scoring
Speaker 1: forty one points for Boston, Jalen Brown sat out injured hip.
Speaker 1: Tight game at Barkley's until the Celtics began the fourth
Speaker 1: quarter on a twelve to two run. They won one
Speaker 1: oh improving to an NBA best thirty one and twelve.
Speaker 1: Kymrae Ivan led the Nets twenty four points. For Ben
Speaker 1: Simmons no points, but he did have nine rebounds and
Speaker 1: thirteen assists. At the Garden, Rangers went fifty nine minutes
Speaker 1: and fifty nine seconds without scoring. KeAndre Miller finally got
Speaker 1: a Ranger goal with two ten of a second lad
Speaker 1: and then Adam Fox got another a minute sixteen into overtime,
Speaker 1: dramatic win for the Blue Shirts to one over Dallas.
Speaker 1: Islanders lost in Minnesota three to one. Wild Card weekend
Speaker 1: begins tomorrow with Seattle at San Francisco. The forty minors
Speaker 1: have won their last ten games. Tomorrow night, it's much
Speaker 1: improved Jacksonville hosting the l A Chargers. The Giants play
Speaker 1: Sunday in Minnesota. Other than Graham Gano, who once kicked
Speaker 1: in the Super Bowl, there is virtually no playoff experience
Speaker 1: on the Giants roster, something downplayed by coach Brian day Ball. Think,
Speaker 1: really what matters is taking advantage of your opportunities when
Speaker 1: they come um and playing a good football game and
Speaker 1: coaching a good football game. So I don't know if
Speaker 1: that answers your question, but I really think it's an
Speaker 1: overrated It's an overrated thing. And a couple of weeks,
Speaker 1: if the a f C Championship game is between the
Speaker 1: top two seeds Kansas City and Buffalo, the game will
Speaker 1: be played in Atlanta. They had decided it would be
Speaker 1: a neutral site because the Bills didn't finish that game
Speaker 1: in Cincinnati that could have gained them the home field.
Speaker 1: John Stash, Bloomberg Sports Nathan. Thanks John. The Bloomberg Sports
Speaker 1: Report was brought to you by Audie. Don't let someone
Speaker 1: else drive off in the Audie model you've always wanted.
Speaker 1: Visit your local Tri state autie dealer to get behind
Speaker 1: the wheel of yours today, or visit Autie Offers dot
Speaker 1: com for more information. Analysis on the Special Council Investigation
Speaker 1: of the President Biden's Classified Materials straight ahead first SMP
Speaker 1: futures are little changed. Down futures up seventeen points, nastack
Speaker 1: futures down fourteen points, Live from the Interactive Broker Studio,
Speaker 1: broadcasting coast to coast, Bloomberg he leven Freeo, New York, Bloomberg, Washington,
Speaker 1: Bloomberg one six one Boston, Bloomberg nine sixty, San Francisco,
Speaker 1: Sirius XM one nineteen, the Bloomberg Business app and Bloomberg
Speaker 1: dot Com. This is Bloomberg day Break. I'm Nathan Hagar.
Speaker 1: Good morning. A political headache for President Biden is turning
Speaker 1: into a legal one now with Attorney General Merrick Garland
Speaker 1: appointing a special counsel to investigate classified documents found in
Speaker 1: two local pations used by the President. This appointment underscores
Speaker 1: for the public the Department's commitment to both independence and accountability,
Speaker 1: and particularly sensitive matters. Attorney General Merrick Garland is named
Speaker 1: Robert Herr, a former U S attorney appointed by former
Speaker 1: President Donald Trump to lead the probe. Let's bring it,
Speaker 1: Gregg Value are for war on this, Chief US policy
Speaker 1: strategist at a GF Investments. Greg Good morning. Is this
Speaker 1: just political or has it turned into something more for
Speaker 1: the president now? I think it's something more, Nathan, good morning.
Speaker 1: I think that a special council means that both Trump
Speaker 1: and Biden are under criminal investigation, and for Republicans that
Speaker 1: they'll claim there's an equivalence. I'm not sure that's accurate,
Speaker 1: but they'll claim that, and it really has given the
Speaker 1: Democrats in this city a case of real anxiety. Well,
Speaker 1: what more do Democrats need to do in your estimation
Speaker 1: to try to get ahead of this? Is there any
Speaker 1: getting ahead of it at the point, I don't know.
Speaker 1: And the reason you don't know is that you don't
Speaker 1: know if there are more documents, if there are more
Speaker 1: things that will surface over the next week or two.
Speaker 1: Very very uncertain. I think the argument that well, everybody
Speaker 1: does it is not or that what Biden has done
Speaker 1: is not as serious as what Trump has done, that
Speaker 1: doesn't really meet the standard of what this really means
Speaker 1: for voters. And I think for a lot of voters
Speaker 1: there's now going to be an equivalency that both of
Speaker 1: them are attained it well. As you mentioned, though, Greg,
Speaker 1: this is something that does seem to keep cropping up
Speaker 1: in one way or another. You mentioned the investigation into
Speaker 1: former President Trump's Mara Lago documents, and many of us
Speaker 1: recalled the controversy surrounding former Secretary of State Hillary Clinton
Speaker 1: and the classified materials found in her computer server. Why
Speaker 1: does this keep cropping up? Does it say something about
Speaker 1: the classification system in Washington? Could it be just sloppy
Speaker 1: record keeping, lack of attention to details, a sense that
Speaker 1: maybe the rules don't apply to people. Hard to say,
Speaker 1: but it's going to stay out there. And for the
Speaker 1: Republicans who had this cringe inducing spectacle a week ago
Speaker 1: in the House, they get to change the subject and
Speaker 1: they get to say that, well, Biden is under criminal
Speaker 1: investigation as well. This is a game changer. What's your
Speaker 1: reaction to the appointment of Robert Herr as the Special Council?
Speaker 1: We mentioned a moment ago that he is a Trump appointee.
Speaker 1: What what does he bring to the table. He's a
Speaker 1: tough guy. He's going to be I think thorough. And
Speaker 1: what Democrats worry about, at least the ones I talked
Speaker 1: to yesterday, is that he could find more. Uh. Sometimes
Speaker 1: the Special Council can can veer off, like the Whitewater
Speaker 1: investigation veered off into Monica Lewinsky. So there's a possibility
Speaker 1: that a special prosecutor could be a represent a Hinefield
Speaker 1: for the Democrats, and we've been talking for the last
Speaker 1: couple of days about the timing of the announcement as
Speaker 1: well the fact that we found out about these classified
Speaker 1: documents about two months after they were turned over back
Speaker 1: to the National Archives. I wonder what this means about
Speaker 1: the timing for a potential presidential re election announcement for
Speaker 1: President Biden. It's something he's been mulling for a couple
Speaker 1: of months. Here. Does this change the calculation for him?
Speaker 1: Maybe a little. You've hit Nasan on, But I think
Speaker 1: is the key issue here, and that is could this
Speaker 1: affect the nomination process. There are a lot of Democrats
Speaker 1: who are ready to run if Biden decides not to
Speaker 1: seek re election, people like Phil Murphy and New Jersey
Speaker 1: Gretchen Whitmer in Michigan. So a lot of Democrats are
Speaker 1: concerned that even though inflation seemingly has peaked, even though
Speaker 1: Biden's job approval rating is up a bit, that he
Speaker 1: still has real problems and that there's still a lot
Speaker 1: unknown in a special prosecutor. Over the next few weeks
Speaker 1: and in our last minute here, Greg, presumably President Biden
Speaker 1: is going to be trying to stay focused on his agenda.
Speaker 1: He's meeting with global leaders today and later on next week.
Speaker 1: But how much of a shadow does this cast over
Speaker 1: the president's agenda going forward? Here? Well, you saw this yesterday, Nathan.
Speaker 1: He came out and wanted to talk about a good
Speaker 1: inflation number and the state of the economy, and reporters
Speaker 1: basically shouted him down. They wanted to talk about these documents.
Speaker 1: And I think that messaging for the Biden administration is
Speaker 1: about to get a lot tougher. This is Bloomberg Daybreak Today,
Speaker 1: your morning brief on the story's making news from Wall
Speaker 1: Street to Washington and beyond. Look for us on your
Speaker 1: podcast feed at six am Eastern each morning, on Apple, Spotify,
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Speaker 1: Time on Bloomberg eleven three oh in New York, Bloomberg
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Speaker 1: Hager and I'm Karen Moscow. Join us again tomorrow morning
Speaker 1: for all the news you need to start your day
Speaker 1: right here on Bloomberg Daybreak