WEBVTT - January 12, 2023

0:00:02.600 --> 0:00:05.800
<v Speaker 1>Live from the Bloomberg Interacted Burger Studios. This is Bloomberg

0:00:05.920 --> 0:00:08.959
<v Speaker 1>day Break for Thursday, January twelve. Coming up this hour,

0:00:09.280 --> 0:00:11.920
<v Speaker 1>new questions for the f a A after that system

0:00:11.960 --> 0:00:15.680
<v Speaker 1>meltdown held up thousands of flights. Pressure amounts on President

0:00:15.720 --> 0:00:18.919
<v Speaker 1>Biden after a second batch of classified documents has found

0:00:19.120 --> 0:00:22.840
<v Speaker 1>Wall Street braces for this morning's inflation report and sandwich

0:00:22.960 --> 0:00:26.320
<v Speaker 1>chain subway maybe up for sale. There's word of attentative

0:00:26.320 --> 0:00:28.360
<v Speaker 1>agreement in the fourth day of a nurse's strike in

0:00:28.400 --> 0:00:31.280
<v Speaker 1>New York City hospitals. Plus calls are growing for New

0:00:31.360 --> 0:00:35.280
<v Speaker 1>York Congressman George Santos to resign. I'm Michael Barr more ahead,

0:00:35.640 --> 0:00:38.400
<v Speaker 1>I'm John staf Showard Sports Jalen Brunson lived the next

0:00:38.400 --> 0:00:40.519
<v Speaker 1>to a home win over in Vienna. A change on

0:00:40.560 --> 0:00:46.360
<v Speaker 1>the Jets coaching stand. That's all s tradyhead on Bloomberg

0:00:46.440 --> 0:00:51.520
<v Speaker 1>Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington,

0:00:51.640 --> 0:00:55.240
<v Speaker 1>d C, Bloomberg one oh six one, Boston, Bloomberg nine

0:00:55.320 --> 0:00:59.560
<v Speaker 1>sixties and Francisco Sirius x M one nineteen and around

0:00:59.560 --> 0:01:02.400
<v Speaker 1>the world the Bloomberg Radio dot Com and via the

0:01:02.440 --> 0:01:09.160
<v Speaker 1>Bloomberg Business app. Good morning. I'm Nathan Hagar and I'm

0:01:09.240 --> 0:01:12.840
<v Speaker 1>Karin Moscow. Here are the stories we're following today. We're

0:01:12.920 --> 0:01:16.440
<v Speaker 1>learning more about yesterday's air traffic meltdown and how a

0:01:16.600 --> 0:01:20.959
<v Speaker 1>computer failure caused a cascading series of problems. Amy Morris

0:01:21.000 --> 0:01:25.240
<v Speaker 1>has the latest from our Bloomberg newsroom in Washington. Federal

0:01:25.280 --> 0:01:28.120
<v Speaker 1>officials say this was not a cyber attack. It was

0:01:28.160 --> 0:01:31.759
<v Speaker 1>a corrupted file caused by an engineer who replaced one

0:01:31.800 --> 0:01:35.880
<v Speaker 1>file with another by mistake. Transportation Secretary Pete Buddha Jedge

0:01:35.920 --> 0:01:39.440
<v Speaker 1>tells CBS that the investigation is ongoing. We will not

0:01:39.560 --> 0:01:42.360
<v Speaker 1>allow anything to take place that is not safe. But

0:01:42.440 --> 0:01:46.959
<v Speaker 1>this is precisely why our focus right now is on understanding, identifying,

0:01:47.080 --> 0:01:50.120
<v Speaker 1>and correcting anything related to the root cause of how

0:01:50.120 --> 0:01:52.400
<v Speaker 1>this happened at the first place. Now, sources tell Bloomberg

0:01:52.440 --> 0:01:55.400
<v Speaker 1>the problem which impacted the notice to air missions are

0:01:55.440 --> 0:01:58.680
<v Speaker 1>no TAMP system also caused a failure in a related

0:01:58.760 --> 0:02:03.560
<v Speaker 1>backup system, resulting in thousands of delayed and canceled flights

0:02:03.600 --> 0:02:06.680
<v Speaker 1>in Washington. I'm Amy Morris, Bloomberg Daybreak. All right, Amy,

0:02:06.720 --> 0:02:09.320
<v Speaker 1>thank you. Now, another major story we're following out of

0:02:09.320 --> 0:02:13.239
<v Speaker 1>Washington This morning, President Joe Biden's aides have found another

0:02:13.440 --> 0:02:16.400
<v Speaker 1>set of classified documents. This time they were found in

0:02:16.400 --> 0:02:19.440
<v Speaker 1>a separate location from the first, and Bloomberg said Baxter

0:02:19.560 --> 0:02:22.639
<v Speaker 1>has that story. Aids have been scouring offices of Mr

0:02:22.720 --> 0:02:27.440
<v Speaker 1>Biden used after his vice presidency, according to multiple media reports,

0:02:27.440 --> 0:02:31.239
<v Speaker 1>this after the finding of classified documents in Pennsylvania. It's

0:02:31.280 --> 0:02:34.240
<v Speaker 1>not clear when these were found and whether they've been

0:02:34.280 --> 0:02:36.919
<v Speaker 1>returned to the National Archives, as the first ones were

0:02:37.280 --> 0:02:39.880
<v Speaker 1>White House spokes when Karine Jean Pierre says the White

0:02:39.919 --> 0:02:42.120
<v Speaker 1>House will do the proper thing. We're committed to doing

0:02:42.160 --> 0:02:44.880
<v Speaker 1>the right thing. Uh, doing the doing this in the

0:02:44.960 --> 0:02:47.440
<v Speaker 1>right way, and says these fines are not akin to

0:02:47.520 --> 0:02:51.480
<v Speaker 1>Donald Trump taking classified files tomorrow. Lago House Speaker Kevin

0:02:51.520 --> 0:02:54.480
<v Speaker 1>McCarthy has accused the Department of Justice of giving President

0:02:54.520 --> 0:02:59.400
<v Speaker 1>Biden preferential treatment in San Francisco. I'm at Baxter Bloomberg Daybreak,

0:02:59.560 --> 0:03:02.000
<v Speaker 1>Thank you. Turning to markets now, stocks are coming off

0:03:02.080 --> 0:03:04.679
<v Speaker 1>two straight days of gains and there is optimism that

0:03:04.760 --> 0:03:07.680
<v Speaker 1>softening inflation will lead the Fed to change gears on

0:03:07.800 --> 0:03:10.880
<v Speaker 1>rate hikes. Yr Denny Research President Edyard Denny thinks the

0:03:10.919 --> 0:03:13.160
<v Speaker 1>worst of the market sell off is now behind us.

0:03:13.520 --> 0:03:15.800
<v Speaker 1>I think we made a low on October twelfth in

0:03:15.840 --> 0:03:17.200
<v Speaker 1>the market. I think that was the end of the

0:03:17.240 --> 0:03:20.640
<v Speaker 1>bear market, and I think we're back in a bull market.

0:03:20.720 --> 0:03:23.800
<v Speaker 1>Not straight up, a lot of volatility, but I think

0:03:24.919 --> 0:03:27.520
<v Speaker 1>the markets are telling us that the world economy is improving.

0:03:28.160 --> 0:03:30.640
<v Speaker 1>Ed Yar Denny made those comments on Bloomberg Surveillance. You

0:03:30.639 --> 0:03:33.040
<v Speaker 1>can catch the show weekdays at seven am All Street

0:03:33.040 --> 0:03:36.080
<v Speaker 1>time on Bloomberg Radio and subscribe to Surveillance anywhere you

0:03:36.120 --> 0:03:39.680
<v Speaker 1>get your podcasts. Of course, nathany immediate direction of markets

0:03:39.680 --> 0:03:42.840
<v Speaker 1>will be greatly impacted by this morning's inflation report, and

0:03:42.880 --> 0:03:46.560
<v Speaker 1>we get a preview from Bloomberg Economics correspondent Michael McKee.

0:03:46.680 --> 0:03:49.320
<v Speaker 1>Old data may help the Fed make a new decision

0:03:49.400 --> 0:03:52.280
<v Speaker 1>next month. Economists think December may have seen the first

0:03:52.320 --> 0:03:56.320
<v Speaker 1>decline in the consumer Price Index since May. While the

0:03:56.400 --> 0:03:59.360
<v Speaker 1>drop would be largely a result of falling energy prices,

0:03:59.640 --> 0:04:03.160
<v Speaker 1>it signal progress in the feds fight against inflation. And

0:04:03.200 --> 0:04:05.520
<v Speaker 1>while core prices are forecast to have ticked up a

0:04:05.560 --> 0:04:09.280
<v Speaker 1>bit last month, both corps and headline CPI should drop

0:04:09.320 --> 0:04:12.640
<v Speaker 1>significantly compared with last year. That likely would lead Fed

0:04:12.720 --> 0:04:15.680
<v Speaker 1>officials to dial back their next rate increase to just

0:04:15.760 --> 0:04:20.080
<v Speaker 1>a quarter percentage point on February one. Michael McKee, Bloomberg Daybreak,

0:04:20.160 --> 0:04:22.640
<v Speaker 1>All right, Mike, thanks. We also got inflation numbers out

0:04:22.640 --> 0:04:26.599
<v Speaker 1>of Asia overnight. China's factory gate deflation narrowed in December,

0:04:26.640 --> 0:04:30.560
<v Speaker 1>even as COVID infections slowed plant operations. Bloomberg Daybreak Asia

0:04:30.600 --> 0:04:33.520
<v Speaker 1>anchor Brian Curtis has more from Hong Kong. The PPI

0:04:33.640 --> 0:04:37.040
<v Speaker 1>dropped zero point seven percent, the estimate minus zero point

0:04:37.080 --> 0:04:40.800
<v Speaker 1>one percent. Consumer prices ticked up one point eight percent,

0:04:40.960 --> 0:04:43.840
<v Speaker 1>which was in line with estimates. The sudden end to

0:04:43.920 --> 0:04:47.880
<v Speaker 1>COVID zero slowed factory operations as workers called in sick.

0:04:48.320 --> 0:04:52.040
<v Speaker 1>Officials say the reopening gains will gather momentum and both

0:04:52.080 --> 0:04:55.520
<v Speaker 1>consumer and producer prices will warm up, but they say

0:04:55.680 --> 0:04:59.880
<v Speaker 1>overall inflation remains mild in Hong Kong. Priyan Curtis, Bloomberg

0:04:59.920 --> 0:05:02.920
<v Speaker 1>da Break, Right, Brian, thank you. One other note out

0:05:02.920 --> 0:05:06.159
<v Speaker 1>of Asia this morning, China has not updated its daily

0:05:06.200 --> 0:05:09.160
<v Speaker 1>COVID data for three days. That's adding to global concerns

0:05:09.200 --> 0:05:11.440
<v Speaker 1>that Beijing is masking the true impact of the world's

0:05:11.480 --> 0:05:14.520
<v Speaker 1>largest outbreak. The World Health Organization is renewing its call

0:05:14.640 --> 0:05:17.200
<v Speaker 1>for more COVID data from China, and we got a

0:05:17.240 --> 0:05:19.680
<v Speaker 1>couple of corporate story step take you this morning on

0:05:19.760 --> 0:05:23.239
<v Speaker 1>Karen's Starting with Subway, there's where the sandwich chain maybe

0:05:23.240 --> 0:05:27.280
<v Speaker 1>considering a sale Bloomberg. Jeff Balinger has the story. Subway

0:05:27.320 --> 0:05:30.440
<v Speaker 1>has long been a potential target for private equity firms

0:05:30.440 --> 0:05:33.440
<v Speaker 1>and other companies, and a person familiar with the matter

0:05:33.480 --> 0:05:37.360
<v Speaker 1>tells Bloomberg the scent which chain is exploring a potential deal.

0:05:37.760 --> 0:05:40.839
<v Speaker 1>A sale could value Subway at more than ten billion dollars.

0:05:41.080 --> 0:05:43.480
<v Speaker 1>The process is said to be in the early stages,

0:05:43.520 --> 0:05:46.960
<v Speaker 1>and Subway could still decide against a sale, and emailed

0:05:46.960 --> 0:05:50.080
<v Speaker 1>statement from Subway notes it is a privately held company

0:05:50.360 --> 0:05:54.240
<v Speaker 1>and it does not comment on its business plans. Jeff Bellinger,

0:05:54.360 --> 0:05:57.400
<v Speaker 1>Bloomberg day Break Right, Jeff, thank you. Bloomberg News has

0:05:57.440 --> 0:06:00.600
<v Speaker 1>also learned that T Mobile may buy a budget wireless

0:06:00.640 --> 0:06:04.520
<v Speaker 1>carrier back by actor Ryan Reynolds, Mint Mobile. We're told

0:06:04.520 --> 0:06:07.080
<v Speaker 1>T Mobile has been holding talks with mint but no

0:06:07.160 --> 0:06:10.159
<v Speaker 1>final decision has been made. Reynolds owns about one fourth

0:06:10.160 --> 0:06:13.359
<v Speaker 1>of the company, and Disney is preparing for a proxy

0:06:13.400 --> 0:06:17.880
<v Speaker 1>war with activist investor Nelson pelts Peltz nominated himself to

0:06:17.920 --> 0:06:20.480
<v Speaker 1>the board and what could become a highly public debate

0:06:20.720 --> 0:06:23.680
<v Speaker 1>over CEO Bob Iger's leadership. At the same time, the

0:06:23.680 --> 0:06:26.960
<v Speaker 1>executive chair of Nike, Mark Parker, will take over as

0:06:26.960 --> 0:06:30.359
<v Speaker 1>Disney's chairman. Parker will advise Eiger and the board in

0:06:30.480 --> 0:06:34.240
<v Speaker 1>finding the CEO's replacement. Straight ahead, your latest local headlines

0:06:34.279 --> 0:06:41.720
<v Speaker 1>plus a check of sports. This is Bloomberg starting nine

0:06:41.760 --> 0:06:44.719
<v Speaker 1>degrees in Central Park right now. We're expecting scattered showers

0:06:44.760 --> 0:06:47.240
<v Speaker 1>today behind your fifty. Temperatures are gonna rise a bit

0:06:47.279 --> 0:06:50.000
<v Speaker 1>tonight as the rain and a breeze continue. Time to

0:06:50.040 --> 0:06:51.480
<v Speaker 1>take a look at some of the other stories now

0:06:51.520 --> 0:06:53.640
<v Speaker 1>making news in New York and around the world, with

0:06:53.680 --> 0:06:56.520
<v Speaker 1>Bloomberg's Michael Bark. Good morning, Michael, Good morning Nathan. There

0:06:56.560 --> 0:07:00.160
<v Speaker 1>are reports of a possible tentative agreement overnight as we

0:07:00.360 --> 0:07:03.280
<v Speaker 1>enter day four of a nurse's strike in New York City.

0:07:03.520 --> 0:07:07.320
<v Speaker 1>As according to ABC seven, the nurses union and administrators

0:07:07.360 --> 0:07:11.280
<v Speaker 1>from the two hospitals effected have been negotiating. Roughly seven

0:07:11.280 --> 0:07:15.440
<v Speaker 1>thousand nurses from Mount Sinai in Manhattan and Montefiore in

0:07:15.480 --> 0:07:18.760
<v Speaker 1>the Bronx went on strike, calling for better patient to

0:07:18.840 --> 0:07:23.000
<v Speaker 1>staff ratios. This nurse said. Montafiora says that the COVID

0:07:23.080 --> 0:07:27.200
<v Speaker 1>nineteen pandemic put stress on an already strained healthcare system.

0:07:27.360 --> 0:07:29.880
<v Speaker 1>We don't have a normal yet in healthcare because we

0:07:29.920 --> 0:07:33.360
<v Speaker 1>are still grappling with the effects of the pandemic, and

0:07:33.560 --> 0:07:38.000
<v Speaker 1>part of that is how much management is demanding of

0:07:38.160 --> 0:07:42.240
<v Speaker 1>nurses that is simply unsafe and not beneficial to the patients.

0:07:42.240 --> 0:07:44.880
<v Speaker 1>We are serving no word yet on any details of

0:07:44.920 --> 0:07:49.200
<v Speaker 1>the tentative pact. Embattled Republican Congressman George Santos of New

0:07:49.280 --> 0:07:52.840
<v Speaker 1>York is facing more calls to step down. Speaker Kevin

0:07:52.880 --> 0:07:56.360
<v Speaker 1>McCarthy declined to call for santos resignation on Capitol Hill,

0:07:56.440 --> 0:08:00.400
<v Speaker 1>and Santos says he won't step down. I will know

0:08:00.840 --> 0:08:03.800
<v Speaker 1>this as Republicans from his Long Island district called for

0:08:03.880 --> 0:08:07.120
<v Speaker 1>him to resign. The head of the party in Nassau County,

0:08:07.240 --> 0:08:11.920
<v Speaker 1>Joseph Cairo Jr. Says Santos ran a campaign of lies, deceit,

0:08:12.120 --> 0:08:17.240
<v Speaker 1>and fabrications. He disgraced the House of Representatives, and in particular,

0:08:17.480 --> 0:08:22.520
<v Speaker 1>his fabrications went too far. Many groups were hurt. Specifically,

0:08:23.000 --> 0:08:25.440
<v Speaker 1>I look at those families that were touched by the

0:08:25.440 --> 0:08:29.120
<v Speaker 1>horrors of the Holocaust and feel for them. The gops

0:08:29.200 --> 0:08:32.959
<v Speaker 1>Joseph Cairo as federal prosecutors are looking into santos his

0:08:33.040 --> 0:08:36.680
<v Speaker 1>financial disclosures after he admitted to lying about many parts

0:08:36.720 --> 0:08:40.000
<v Speaker 1>of his resume ahead of winning his seat. Thousands have

0:08:40.040 --> 0:08:43.000
<v Speaker 1>been evacuated in northern California, which has been hit by

0:08:43.120 --> 0:08:47.000
<v Speaker 1>days of heavy rain and powerful wind, with entire towns

0:08:47.080 --> 0:08:50.480
<v Speaker 1>under water. The death toll is now at least eighteen

0:08:50.840 --> 0:08:53.760
<v Speaker 1>over the past two weeks. Most of California received up

0:08:53.800 --> 0:08:58.840
<v Speaker 1>to six of its normal rainfall. A guitar powerhouse has

0:08:58.920 --> 0:09:04.640
<v Speaker 1>gone Jeff Beck, who pushed the boundaries of blues, jazz,

0:09:04.679 --> 0:09:08.400
<v Speaker 1>and rock and roll. As time, Jeff Beck was global

0:09:08.440 --> 0:09:10.920
<v Speaker 1>news twenty four hours a day on air and on

0:09:10.960 --> 0:09:14.600
<v Speaker 1>Bloomberg Quicktake, powered by more than twenty seven hundred journalists

0:09:14.600 --> 0:09:17.439
<v Speaker 1>and analysts more than a hundred twenty countries. Michael Barr

0:09:17.440 --> 0:09:24.640
<v Speaker 1>and this is Bloomberg. Nathan. All right, Michael, thanks time

0:09:24.679 --> 0:09:26.839
<v Speaker 1>for the Bloomberg Sports update, brought to you by Trice

0:09:26.880 --> 0:09:29.640
<v Speaker 1>stayed Out. Good morning, John stash Hour, Good morning, Nathan Knicks.

0:09:29.679 --> 0:09:31.800
<v Speaker 1>Back at the Garden two nights after they blew us

0:09:31.840 --> 0:09:35.000
<v Speaker 1>seventeen point third quarter lead, and nearly happened again. Nicks

0:09:35.000 --> 0:09:38.000
<v Speaker 1>went from up five up only two. What a seven

0:09:38.000 --> 0:09:41.160
<v Speaker 1>nothing run games ceiling three pointer by Quentin Grimes. Nicks

0:09:41.200 --> 0:09:44.079
<v Speaker 1>beat Indiana one nineteen one thirteen of the big game

0:09:44.120 --> 0:09:46.480
<v Speaker 1>for Jalen Brunts, and he followed up his forty four

0:09:46.520 --> 0:09:49.600
<v Speaker 1>point game with thirty four more. R J. Barrett returned

0:09:49.600 --> 0:09:51.640
<v Speaker 1>from his finger injury to score twenty seven and Knicks

0:09:51.679 --> 0:09:55.360
<v Speaker 1>visit Washington tomorrow. The NETS's Boston tonight battle the top

0:09:55.400 --> 0:09:57.719
<v Speaker 1>two teams in the East. Rangers and Islanders both have

0:09:57.800 --> 0:10:00.920
<v Speaker 1>home games tonight as well. College hoops Ructors at Northwestern

0:10:01.000 --> 0:10:03.840
<v Speaker 1>Cam Spencer twenty three points. He made six of seven

0:10:03.920 --> 0:10:07.840
<v Speaker 1>three pointers. Carlos Correa passed his physical in Minnesota, something

0:10:07.880 --> 0:10:10.600
<v Speaker 1>that did not happen with the Mets or Giants. Robert

0:10:10.600 --> 0:10:13.400
<v Speaker 1>Sale goes way back with his offensive pointer. Mike Lafleur,

0:10:13.520 --> 0:10:16.480
<v Speaker 1>but la Fleur coach the Jets offense that was dreadful,

0:10:16.559 --> 0:10:19.680
<v Speaker 1>especially down the stretch, and Salah fired. La Fleur, whose

0:10:19.760 --> 0:10:21.520
<v Speaker 1>brother is the head coach at Dream Bay, asked for

0:10:21.600 --> 0:10:24.240
<v Speaker 1>Giants coach Brian day Ball. He was asked if making

0:10:24.280 --> 0:10:26.679
<v Speaker 1>the playoffs was the goal at the start, goal is

0:10:26.679 --> 0:10:31.920
<v Speaker 1>gonna come out every season and beating lousy. It's to

0:10:32.000 --> 0:10:34.680
<v Speaker 1>improve and keep competing and win as many football games

0:10:34.679 --> 0:10:37.480
<v Speaker 1>as you can. You know, our foundation is built on

0:10:38.080 --> 0:10:41.920
<v Speaker 1>our consistency, our approach, our work ethic, how we do

0:10:42.040 --> 0:10:44.240
<v Speaker 1>things on and off the field, all those type of things.

0:10:44.840 --> 0:10:48.400
<v Speaker 1>And again, you know, like I say every week, I

0:10:48.720 --> 0:10:51.160
<v Speaker 1>can live with the with the results. I don't like him.

0:10:51.679 --> 0:10:53.600
<v Speaker 1>I can live with them if we're doing the right stuff.

0:10:53.640 --> 0:10:57.360
<v Speaker 1>It's Giants and Vikings Sunday in Minnesota, playoff game between

0:10:57.400 --> 0:11:00.800
<v Speaker 1>two teams who both were outscored to the regular season.

0:11:01.120 --> 0:11:04.640
<v Speaker 1>John Stash, Bloomberg Sports, Nathan thank John Bloomberg Sports was

0:11:04.679 --> 0:11:06.800
<v Speaker 1>brought to you by Audie. Don't let someone else drive

0:11:06.840 --> 0:11:09.120
<v Speaker 1>off in the Audi model you've always wanted. Visit your

0:11:09.160 --> 0:11:11.680
<v Speaker 1>local Tri state Audie dealer to get behind the wheel

0:11:11.720 --> 0:11:15.360
<v Speaker 1>of yours today, or visit Autie Offers dot com for

0:11:15.400 --> 0:11:19.400
<v Speaker 1>more information. We'll hear about the potential Washington reaction to

0:11:19.520 --> 0:11:23.280
<v Speaker 1>the airport meltdown. Just to head first, SMP futures are

0:11:23.320 --> 0:11:27.079
<v Speaker 1>down two points down, futures down fourteen, NASTAC futures down

0:11:27.160 --> 0:11:30.199
<v Speaker 1>nine points ten, Your treasuries down one thirty second yield

0:11:30.200 --> 0:11:32.520
<v Speaker 1>three point five percent, and the yield on the two

0:11:32.600 --> 0:11:35.160
<v Speaker 1>year is four point to four percent. As we wait

0:11:35.240 --> 0:11:41.840
<v Speaker 1>CPI data eight thirty Wall Street Time live from coast

0:11:41.840 --> 0:11:45.520
<v Speaker 1>to coast, from New York to San Francisco, Boston to Washington,

0:11:45.600 --> 0:11:49.400
<v Speaker 1>d C. Nationwide on sirius xamp, the Bloomberg Business app,

0:11:49.440 --> 0:11:54.400
<v Speaker 1>and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning.

0:11:54.440 --> 0:11:56.800
<v Speaker 1>I'm Nathan Haygar on a morning when the Biden administration

0:11:56.840 --> 0:12:01.079
<v Speaker 1>is facing pressure on policy and political fronts. First, on policy,

0:12:01.200 --> 0:12:04.560
<v Speaker 1>lots of questions for the Federal Aviation Administration this morning,

0:12:04.600 --> 0:12:07.720
<v Speaker 1>after that system meltdown that stranded thousands of flights across

0:12:07.800 --> 0:12:11.800
<v Speaker 1>the country. And on politics, another batch of classified documents

0:12:11.840 --> 0:12:14.880
<v Speaker 1>could give Republicans more fodder to use against the president.

0:12:15.240 --> 0:12:17.280
<v Speaker 1>From more on all this, We're joined by Terry Haynes,

0:12:17.320 --> 0:12:20.320
<v Speaker 1>founder of PANGEA Policy. Terry, it's good to speak with you.

0:12:20.559 --> 0:12:23.200
<v Speaker 1>Let's start with the f a A. What does this

0:12:23.440 --> 0:12:27.360
<v Speaker 1>flight system meltdown mean when it comes to the effectiveness

0:12:27.400 --> 0:12:30.560
<v Speaker 1>of the regulators whose goal it is, whose job it

0:12:30.679 --> 0:12:35.160
<v Speaker 1>is to keep passengers safe in the air. Good morning, Nathan.

0:12:35.360 --> 0:12:38.640
<v Speaker 1>A couple of things on that one. Uh. Uh yeah,

0:12:38.760 --> 0:12:42.680
<v Speaker 1>kudos to them in the for for at least stepping

0:12:42.760 --> 0:12:45.079
<v Speaker 1>up and been doing the right thing when they when

0:12:45.080 --> 0:12:48.439
<v Speaker 1>they saw something go haywire. Uh. That inconvenienced an awful

0:12:48.440 --> 0:12:51.320
<v Speaker 1>lot of people. But uh, but it was the right

0:12:51.360 --> 0:12:55.800
<v Speaker 1>decision to take. Uh. So you know firstly that Secondly,

0:12:56.160 --> 0:12:59.280
<v Speaker 1>I think we're about to find out whether Secretary Buddhas

0:12:59.360 --> 0:13:05.079
<v Speaker 1>is an active or reactive Secretary of Transportation. What you

0:13:05.200 --> 0:13:11.960
<v Speaker 1>got here is uh a situation where the the oversight

0:13:12.040 --> 0:13:14.679
<v Speaker 1>of the department on the f A and the FA

0:13:14.720 --> 0:13:18.560
<v Speaker 1>itself looks much more passive than active. Uh. Bloomberg has

0:13:18.600 --> 0:13:20.480
<v Speaker 1>been doing some excellent reporting on this, by the way,

0:13:20.520 --> 0:13:24.040
<v Speaker 1>and the one of the things that your reporter's note

0:13:24.280 --> 0:13:27.280
<v Speaker 1>is that, uh, the agency has been in the process

0:13:27.320 --> 0:13:30.480
<v Speaker 1>of updating this no TAM system, but the upgrade is

0:13:30.520 --> 0:13:33.960
<v Speaker 1>behind schedule, apparently in in part because of cuts and

0:13:34.080 --> 0:13:38.720
<v Speaker 1>funding to the agency's technology budget. And uh and the

0:13:38.800 --> 0:13:42.360
<v Speaker 1>system that failed was based on older technology. So UH,

0:13:42.400 --> 0:13:44.760
<v Speaker 1>the department, I think is gonna in the Secretary himself,

0:13:44.760 --> 0:13:46.760
<v Speaker 1>since he's been there for two years, is going to

0:13:46.840 --> 0:13:49.520
<v Speaker 1>have a lot of questions the answer about what the

0:13:49.559 --> 0:13:54.000
<v Speaker 1>department's priorities are and frankly, why they're not uh, why

0:13:54.000 --> 0:13:56.480
<v Speaker 1>they're not paying better attention to make sure that the

0:13:56.520 --> 0:13:59.960
<v Speaker 1>pipes that that link the transportation systems all to get

0:14:00.040 --> 0:14:03.719
<v Speaker 1>other aren't leaking and in fact or state of the art. Well,

0:14:03.720 --> 0:14:05.920
<v Speaker 1>what do you need to see, Terry, in order to

0:14:05.960 --> 0:14:08.560
<v Speaker 1>show that the f A is making progress in keeping

0:14:08.559 --> 0:14:11.800
<v Speaker 1>its systems up to date? Uh, Well, they're gonna have

0:14:11.840 --> 0:14:13.160
<v Speaker 1>to do on a whole lot more. They're gonna have

0:14:13.200 --> 0:14:16.040
<v Speaker 1>to uh, pour a lot more money into technology. And

0:14:16.080 --> 0:14:19.200
<v Speaker 1>that's a decision for the Secretary and for for Congress,

0:14:19.240 --> 0:14:21.920
<v Speaker 1>to the extent the Congress is involved in making the cuts,

0:14:22.680 --> 0:14:26.320
<v Speaker 1>but certainly for the Secretary, who can reprogram some money. Uh.

0:14:26.400 --> 0:14:28.680
<v Speaker 1>And uh, you know, if I were them, I'd be

0:14:28.800 --> 0:14:33.000
<v Speaker 1>I'd be interested in doing a task force that made

0:14:33.040 --> 0:14:36.240
<v Speaker 1>it clear substantially and made it clear to the public

0:14:36.680 --> 0:14:41.120
<v Speaker 1>that fixing this and making it making the system overall

0:14:41.200 --> 0:14:44.080
<v Speaker 1>better is the top priority of the agency. Um. And

0:14:44.120 --> 0:14:46.560
<v Speaker 1>it's not clear that it is right now. I want

0:14:46.560 --> 0:14:49.480
<v Speaker 1>to move to this report of another set of classified

0:14:49.480 --> 0:14:53.120
<v Speaker 1>documents reportedly found at another office the President Biden used

0:14:53.120 --> 0:14:55.480
<v Speaker 1>while he was out of office. Is this going to

0:14:55.560 --> 0:14:59.560
<v Speaker 1>be tougher for the President to explain it already is

0:15:00.200 --> 0:15:04.120
<v Speaker 1>you know glass houses. Huh. A lot of a lot

0:15:04.160 --> 0:15:08.800
<v Speaker 1>of people, including uh, including this network who uh you know,

0:15:08.840 --> 0:15:12.680
<v Speaker 1>brought out all the all the outrage that Biden expressed

0:15:12.720 --> 0:15:16.240
<v Speaker 1>about the things that Trump was doing. I'm not meaning to,

0:15:16.760 --> 0:15:20.200
<v Speaker 1>uh to suggest equivalency here. There's two there's strengthly too

0:15:20.240 --> 0:15:24.200
<v Speaker 1>much we don't know. But the behavior so far, I

0:15:24.240 --> 0:15:28.920
<v Speaker 1>think is is troubling. In out of trouble anybody who's

0:15:28.920 --> 0:15:32.160
<v Speaker 1>a supporter of the president's You've got before the even

0:15:32.160 --> 0:15:36.440
<v Speaker 1>the first uh revelation if two to three months lag

0:15:36.600 --> 0:15:41.800
<v Speaker 1>here in uh in talking about it publicly, which is curious. Um,

0:15:42.280 --> 0:15:46.760
<v Speaker 1>and there's no comment at all on on you know

0:15:46.920 --> 0:15:50.880
<v Speaker 1>what or why these problems are existing and UH, and

0:15:51.000 --> 0:15:54.120
<v Speaker 1>it's very strange that you've got a situation, you know,

0:15:55.040 --> 0:15:57.880
<v Speaker 1>over two years or about two years after the president

0:15:57.960 --> 0:16:02.880
<v Speaker 1>became president, that there's still offices around that are that

0:16:02.920 --> 0:16:05.760
<v Speaker 1>have documents and of any kind of I mean, I

0:16:05.800 --> 0:16:09.240
<v Speaker 1>don't understand what they're doing with that. Uh. So you know,

0:16:09.320 --> 0:16:12.040
<v Speaker 1>there's a bigger story here. No nobody knows what it

0:16:12.160 --> 0:16:14.880
<v Speaker 1>is right now. I think Congress will play some role

0:16:14.920 --> 0:16:17.440
<v Speaker 1>in getting to the bottom of that. But UH, and

0:16:17.480 --> 0:16:20.280
<v Speaker 1>I think frankly the press will too. But White House

0:16:20.320 --> 0:16:22.360
<v Speaker 1>is behind the eight ball on this so far. Only

0:16:22.400 --> 0:16:25.280
<v Speaker 1>about thirty seconds left here, Terry. But the Republicans have

0:16:25.360 --> 0:16:29.720
<v Speaker 1>said that they're going to investigate the president on multiple fronts.

0:16:29.800 --> 0:16:33.360
<v Speaker 1>Does this turn into a main focus for them? It'll

0:16:33.360 --> 0:16:35.800
<v Speaker 1>turn into a big a much bigger focus than it

0:16:35.880 --> 0:16:39.960
<v Speaker 1>had before. It is a matter of going back to

0:16:40.040 --> 0:16:43.400
<v Speaker 1>the not meaning to compare this to water Gate, of course,

0:16:43.440 --> 0:16:45.800
<v Speaker 1>but going back to the Watergate days. This is gonna

0:16:45.840 --> 0:16:48.080
<v Speaker 1>be a matter of what the president knew and uh

0:16:48.240 --> 0:16:50.800
<v Speaker 1>and when did he know it? Uh? They're going to

0:16:50.880 --> 0:16:55.760
<v Speaker 1>have a chain of custody, uh, argument and uh and

0:16:55.760 --> 0:16:57.320
<v Speaker 1>and the White House is not going to have any

0:16:57.320 --> 0:17:00.440
<v Speaker 1>good answers as to how this occurred that gonna fan

0:17:00.520 --> 0:17:05.320
<v Speaker 1>the Flans here. This is Bloomberg Daybreak Today, your morning

0:17:05.359 --> 0:17:07.960
<v Speaker 1>brief on the stories making news from Wall Street to

0:17:08.040 --> 0:17:11.560
<v Speaker 1>Washington and beyond. Look for us on your podcast feed

0:17:11.600 --> 0:17:15.280
<v Speaker 1>at six am Eastern each morning, on Apple, Spotify, and

0:17:15.320 --> 0:17:18.480
<v Speaker 1>anywhere else you get your podcasts. You can also listen

0:17:18.560 --> 0:17:21.400
<v Speaker 1>live each morning starting at five am Wall Street time

0:17:21.440 --> 0:17:25.679
<v Speaker 1>on Bloomberg eleven three oh in New York. Bloomberg in Washington,

0:17:25.840 --> 0:17:29.080
<v Speaker 1>Bloomberg one oh six one in Boston, and Bloomberg nine

0:17:29.119 --> 0:17:32.639
<v Speaker 1>six in San Francisco. Our flagship New York station is

0:17:32.720 --> 0:17:37.040
<v Speaker 1>also available on your Amazon Alexa devices. Just say Alexa

0:17:37.200 --> 0:17:40.879
<v Speaker 1>Play Bloomberg eleven Plus listen coast to coast on the

0:17:40.880 --> 0:17:44.520
<v Speaker 1>Bloomberg Business app, Serius XM Channel one nine, the I

0:17:44.640 --> 0:17:47.840
<v Speaker 1>Heart Radio app, and on Bloomberg dot Com. I'm Nathan

0:17:47.880 --> 0:17:51.359
<v Speaker 1>Hager and I'm Karen Moscow. Join us again tomorrow morning

0:17:51.440 --> 0:17:53.720
<v Speaker 1>for all the news you need to start your day

0:17:54.000 --> 0:18:04.520
<v Speaker 1>right here on Bloomberg Daybreak