Speaker 1: Live from the Bloomberg Interacted Burger Studios. This is Bloomberg
Speaker 1: day Break for Thursday, January twelve. Coming up this hour,
Speaker 1: new questions for the f a A after that system
Speaker 1: meltdown held up thousands of flights. Pressure amounts on President
Speaker 1: Biden after a second batch of classified documents has found
Speaker 1: Wall Street braces for this morning's inflation report and sandwich
Speaker 1: chain subway maybe up for sale. There's word of attentative
Speaker 1: agreement in the fourth day of a nurse's strike in
Speaker 1: New York City hospitals. Plus calls are growing for New
Speaker 1: York Congressman George Santos to resign. I'm Michael Barr more ahead,
Speaker 1: I'm John staf Showard Sports Jalen Brunson lived the next
Speaker 1: to a home win over in Vienna. A change on
Speaker 1: the Jets coaching stand. That's all s tradyhead on Bloomberg
Speaker 1: Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine
Speaker 1: sixties and Francisco Sirius x M one nineteen and around
Speaker 1: the world the Bloomberg Radio dot Com and via the
Speaker 1: Bloomberg Business app. Good morning. I'm Nathan Hagar and I'm
Speaker 1: Karin Moscow. Here are the stories we're following today. We're
Speaker 1: learning more about yesterday's air traffic meltdown and how a
Speaker 1: computer failure caused a cascading series of problems. Amy Morris
Speaker 1: has the latest from our Bloomberg newsroom in Washington. Federal
Speaker 1: officials say this was not a cyber attack. It was
Speaker 1: a corrupted file caused by an engineer who replaced one
Speaker 1: file with another by mistake. Transportation Secretary Pete Buddha Jedge
Speaker 1: tells CBS that the investigation is ongoing. We will not
Speaker 1: allow anything to take place that is not safe. But
Speaker 1: this is precisely why our focus right now is on understanding, identifying,
Speaker 1: and correcting anything related to the root cause of how
Speaker 1: this happened at the first place. Now, sources tell Bloomberg
Speaker 1: the problem which impacted the notice to air missions are
Speaker 1: no TAMP system also caused a failure in a related
Speaker 1: backup system, resulting in thousands of delayed and canceled flights
Speaker 1: in Washington. I'm Amy Morris, Bloomberg Daybreak. All right, Amy,
Speaker 1: thank you. Now, another major story we're following out of
Speaker 1: Washington This morning, President Joe Biden's aides have found another
Speaker 1: set of classified documents. This time they were found in
Speaker 1: a separate location from the first, and Bloomberg said Baxter
Speaker 1: has that story. Aids have been scouring offices of Mr
Speaker 1: Biden used after his vice presidency, according to multiple media reports,
Speaker 1: this after the finding of classified documents in Pennsylvania. It's
Speaker 1: not clear when these were found and whether they've been
Speaker 1: returned to the National Archives, as the first ones were
Speaker 1: White House spokes when Karine Jean Pierre says the White
Speaker 1: House will do the proper thing. We're committed to doing
Speaker 1: the right thing. Uh, doing the doing this in the
Speaker 1: right way, and says these fines are not akin to
Speaker 1: Donald Trump taking classified files tomorrow. Lago House Speaker Kevin
Speaker 1: McCarthy has accused the Department of Justice of giving President
Speaker 1: Biden preferential treatment in San Francisco. I'm at Baxter Bloomberg Daybreak,
Speaker 1: Thank you. Turning to markets now, stocks are coming off
Speaker 1: two straight days of gains and there is optimism that
Speaker 1: softening inflation will lead the Fed to change gears on
Speaker 1: rate hikes. Yr Denny Research President Edyard Denny thinks the
Speaker 1: worst of the market sell off is now behind us.
Speaker 1: I think we made a low on October twelfth in
Speaker 1: the market. I think that was the end of the
Speaker 1: bear market, and I think we're back in a bull market.
Speaker 1: Not straight up, a lot of volatility, but I think
Speaker 1: the markets are telling us that the world economy is improving.
Speaker 1: Ed Yar Denny made those comments on Bloomberg Surveillance. You
Speaker 1: can catch the show weekdays at seven am All Street
Speaker 1: time on Bloomberg Radio and subscribe to Surveillance anywhere you
Speaker 1: get your podcasts. Of course, nathany immediate direction of markets
Speaker 1: will be greatly impacted by this morning's inflation report, and
Speaker 1: we get a preview from Bloomberg Economics correspondent Michael McKee.
Speaker 1: Old data may help the Fed make a new decision
Speaker 1: next month. Economists think December may have seen the first
Speaker 1: decline in the consumer Price Index since May. While the
Speaker 1: drop would be largely a result of falling energy prices,
Speaker 1: it signal progress in the feds fight against inflation. And
Speaker 1: while core prices are forecast to have ticked up a
Speaker 1: bit last month, both corps and headline CPI should drop
Speaker 1: significantly compared with last year. That likely would lead Fed
Speaker 1: officials to dial back their next rate increase to just
Speaker 1: a quarter percentage point on February one. Michael McKee, Bloomberg Daybreak,
Speaker 1: All right, Mike, thanks. We also got inflation numbers out
Speaker 1: of Asia overnight. China's factory gate deflation narrowed in December,
Speaker 1: even as COVID infections slowed plant operations. Bloomberg Daybreak Asia
Speaker 1: anchor Brian Curtis has more from Hong Kong. The PPI
Speaker 1: dropped zero point seven percent, the estimate minus zero point
Speaker 1: one percent. Consumer prices ticked up one point eight percent,
Speaker 1: which was in line with estimates. The sudden end to
Speaker 1: COVID zero slowed factory operations as workers called in sick.
Speaker 1: Officials say the reopening gains will gather momentum and both
Speaker 1: consumer and producer prices will warm up, but they say
Speaker 1: overall inflation remains mild in Hong Kong. Priyan Curtis, Bloomberg
Speaker 1: da Break, Right, Brian, thank you. One other note out
Speaker 1: of Asia this morning, China has not updated its daily
Speaker 1: COVID data for three days. That's adding to global concerns
Speaker 1: that Beijing is masking the true impact of the world's
Speaker 1: largest outbreak. The World Health Organization is renewing its call
Speaker 1: for more COVID data from China, and we got a
Speaker 1: couple of corporate story step take you this morning on
Speaker 1: Karen's Starting with Subway, there's where the sandwich chain maybe
Speaker 1: considering a sale Bloomberg. Jeff Balinger has the story. Subway
Speaker 1: has long been a potential target for private equity firms
Speaker 1: and other companies, and a person familiar with the matter
Speaker 1: tells Bloomberg the scent which chain is exploring a potential deal.
Speaker 1: A sale could value Subway at more than ten billion dollars.
Speaker 1: The process is said to be in the early stages,
Speaker 1: and Subway could still decide against a sale, and emailed
Speaker 1: statement from Subway notes it is a privately held company
Speaker 1: and it does not comment on its business plans. Jeff Bellinger,
Speaker 1: Bloomberg day Break Right, Jeff, thank you. Bloomberg News has
Speaker 1: also learned that T Mobile may buy a budget wireless
Speaker 1: carrier back by actor Ryan Reynolds, Mint Mobile. We're told
Speaker 1: T Mobile has been holding talks with mint but no
Speaker 1: final decision has been made. Reynolds owns about one fourth
Speaker 1: of the company, and Disney is preparing for a proxy
Speaker 1: war with activist investor Nelson pelts Peltz nominated himself to
Speaker 1: the board and what could become a highly public debate
Speaker 1: over CEO Bob Iger's leadership. At the same time, the
Speaker 1: executive chair of Nike, Mark Parker, will take over as
Speaker 1: Disney's chairman. Parker will advise Eiger and the board in
Speaker 1: finding the CEO's replacement. Straight ahead, your latest local headlines
Speaker 1: plus a check of sports. This is Bloomberg starting nine
Speaker 1: degrees in Central Park right now. We're expecting scattered showers
Speaker 1: today behind your fifty. Temperatures are gonna rise a bit
Speaker 1: tonight as the rain and a breeze continue. Time to
Speaker 1: take a look at some of the other stories now
Speaker 1: making news in New York and around the world, with
Speaker 1: Bloomberg's Michael Bark. Good morning, Michael, Good morning Nathan. There
Speaker 1: are reports of a possible tentative agreement overnight as we
Speaker 1: enter day four of a nurse's strike in New York City.
Speaker 1: As according to ABC seven, the nurses union and administrators
Speaker 1: from the two hospitals effected have been negotiating. Roughly seven
Speaker 1: thousand nurses from Mount Sinai in Manhattan and Montefiore in
Speaker 1: the Bronx went on strike, calling for better patient to
Speaker 1: staff ratios. This nurse said. Montafiora says that the COVID
Speaker 1: nineteen pandemic put stress on an already strained healthcare system.
Speaker 1: We don't have a normal yet in healthcare because we
Speaker 1: are still grappling with the effects of the pandemic, and
Speaker 1: part of that is how much management is demanding of
Speaker 1: nurses that is simply unsafe and not beneficial to the patients.
Speaker 1: We are serving no word yet on any details of
Speaker 1: the tentative pact. Embattled Republican Congressman George Santos of New
Speaker 1: York is facing more calls to step down. Speaker Kevin
Speaker 1: McCarthy declined to call for santos resignation on Capitol Hill,
Speaker 1: and Santos says he won't step down. I will know
Speaker 1: this as Republicans from his Long Island district called for
Speaker 1: him to resign. The head of the party in Nassau County,
Speaker 1: Joseph Cairo Jr. Says Santos ran a campaign of lies, deceit,
Speaker 1: and fabrications. He disgraced the House of Representatives, and in particular,
Speaker 1: his fabrications went too far. Many groups were hurt. Specifically,
Speaker 1: I look at those families that were touched by the
Speaker 1: horrors of the Holocaust and feel for them. The gops
Speaker 1: Joseph Cairo as federal prosecutors are looking into santos his
Speaker 1: financial disclosures after he admitted to lying about many parts
Speaker 1: of his resume ahead of winning his seat. Thousands have
Speaker 1: been evacuated in northern California, which has been hit by
Speaker 1: days of heavy rain and powerful wind, with entire towns
Speaker 1: under water. The death toll is now at least eighteen
Speaker 1: over the past two weeks. Most of California received up
Speaker 1: to six of its normal rainfall. A guitar powerhouse has
Speaker 1: gone Jeff Beck, who pushed the boundaries of blues, jazz,
Speaker 1: and rock and roll. As time, Jeff Beck was global
Speaker 1: news twenty four hours a day on air and on
Speaker 1: Bloomberg Quicktake, powered by more than twenty seven hundred journalists
Speaker 1: and analysts more than a hundred twenty countries. Michael Barr
Speaker 1: and this is Bloomberg. Nathan. All right, Michael, thanks time
Speaker 1: for the Bloomberg Sports update, brought to you by Trice
Speaker 1: stayed Out. Good morning, John stash Hour, Good morning, Nathan Knicks.
Speaker 1: Back at the Garden two nights after they blew us
Speaker 1: seventeen point third quarter lead, and nearly happened again. Nicks
Speaker 1: went from up five up only two. What a seven
Speaker 1: nothing run games ceiling three pointer by Quentin Grimes. Nicks
Speaker 1: beat Indiana one nineteen one thirteen of the big game
Speaker 1: for Jalen Brunts, and he followed up his forty four
Speaker 1: point game with thirty four more. R J. Barrett returned
Speaker 1: from his finger injury to score twenty seven and Knicks
Speaker 1: visit Washington tomorrow. The NETS's Boston tonight battle the top
Speaker 1: two teams in the East. Rangers and Islanders both have
Speaker 1: home games tonight as well. College hoops Ructors at Northwestern
Speaker 1: Cam Spencer twenty three points. He made six of seven
Speaker 1: three pointers. Carlos Correa passed his physical in Minnesota, something
Speaker 1: that did not happen with the Mets or Giants. Robert
Speaker 1: Sale goes way back with his offensive pointer. Mike Lafleur,
Speaker 1: but la Fleur coach the Jets offense that was dreadful,
Speaker 1: especially down the stretch, and Salah fired. La Fleur, whose
Speaker 1: brother is the head coach at Dream Bay, asked for
Speaker 1: Giants coach Brian day Ball. He was asked if making
Speaker 1: the playoffs was the goal at the start, goal is
Speaker 1: gonna come out every season and beating lousy. It's to
Speaker 1: improve and keep competing and win as many football games
Speaker 1: as you can. You know, our foundation is built on
Speaker 1: our consistency, our approach, our work ethic, how we do
Speaker 1: things on and off the field, all those type of things.
Speaker 1: And again, you know, like I say every week, I
Speaker 1: can live with the with the results. I don't like him.
Speaker 1: I can live with them if we're doing the right stuff.
Speaker 1: It's Giants and Vikings Sunday in Minnesota, playoff game between
Speaker 1: two teams who both were outscored to the regular season.
Speaker 1: John Stash, Bloomberg Sports, Nathan thank John Bloomberg Sports was
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Speaker 1: more information. We'll hear about the potential Washington reaction to
Speaker 1: the airport meltdown. Just to head first, SMP futures are
Speaker 1: down two points down, futures down fourteen, NASTAC futures down
Speaker 1: nine points ten, Your treasuries down one thirty second yield
Speaker 1: three point five percent, and the yield on the two
Speaker 1: year is four point to four percent. As we wait
Speaker 1: CPI data eight thirty Wall Street Time live from coast
Speaker 1: to coast, from New York to San Francisco, Boston to Washington,
Speaker 1: d C. Nationwide on sirius xamp, the Bloomberg Business app,
Speaker 1: and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning.
Speaker 1: I'm Nathan Haygar on a morning when the Biden administration
Speaker 1: is facing pressure on policy and political fronts. First, on policy,
Speaker 1: lots of questions for the Federal Aviation Administration this morning,
Speaker 1: after that system meltdown that stranded thousands of flights across
Speaker 1: the country. And on politics, another batch of classified documents
Speaker 1: could give Republicans more fodder to use against the president.
Speaker 1: From more on all this, We're joined by Terry Haynes,
Speaker 1: founder of PANGEA Policy. Terry, it's good to speak with you.
Speaker 1: Let's start with the f a A. What does this
Speaker 1: flight system meltdown mean when it comes to the effectiveness
Speaker 1: of the regulators whose goal it is, whose job it
Speaker 1: is to keep passengers safe in the air. Good morning, Nathan.
Speaker 1: A couple of things on that one. Uh. Uh yeah,
Speaker 1: kudos to them in the for for at least stepping
Speaker 1: up and been doing the right thing when they when
Speaker 1: they saw something go haywire. Uh. That inconvenienced an awful
Speaker 1: lot of people. But uh, but it was the right
Speaker 1: decision to take. Uh. So you know firstly that Secondly,
Speaker 1: I think we're about to find out whether Secretary Buddhas
Speaker 1: is an active or reactive Secretary of Transportation. What you
Speaker 1: got here is uh a situation where the the oversight
Speaker 1: of the department on the f A and the FA
Speaker 1: itself looks much more passive than active. Uh. Bloomberg has
Speaker 1: been doing some excellent reporting on this, by the way,
Speaker 1: and the one of the things that your reporter's note
Speaker 1: is that, uh, the agency has been in the process
Speaker 1: of updating this no TAM system, but the upgrade is
Speaker 1: behind schedule, apparently in in part because of cuts and
Speaker 1: funding to the agency's technology budget. And uh and the
Speaker 1: system that failed was based on older technology. So UH,
Speaker 1: the department, I think is gonna in the Secretary himself,
Speaker 1: since he's been there for two years, is going to
Speaker 1: have a lot of questions the answer about what the
Speaker 1: department's priorities are and frankly, why they're not uh, why
Speaker 1: they're not paying better attention to make sure that the
Speaker 1: pipes that that link the transportation systems all to get
Speaker 1: other aren't leaking and in fact or state of the art. Well,
Speaker 1: what do you need to see, Terry, in order to
Speaker 1: show that the f A is making progress in keeping
Speaker 1: its systems up to date? Uh, Well, they're gonna have
Speaker 1: to do on a whole lot more. They're gonna have
Speaker 1: to uh, pour a lot more money into technology. And
Speaker 1: that's a decision for the Secretary and for for Congress,
Speaker 1: to the extent the Congress is involved in making the cuts,
Speaker 1: but certainly for the Secretary, who can reprogram some money. Uh.
Speaker 1: And uh, you know, if I were them, I'd be
Speaker 1: I'd be interested in doing a task force that made
Speaker 1: it clear substantially and made it clear to the public
Speaker 1: that fixing this and making it making the system overall
Speaker 1: better is the top priority of the agency. Um. And
Speaker 1: it's not clear that it is right now. I want
Speaker 1: to move to this report of another set of classified
Speaker 1: documents reportedly found at another office the President Biden used
Speaker 1: while he was out of office. Is this going to
Speaker 1: be tougher for the President to explain it already is
Speaker 1: you know glass houses. Huh. A lot of a lot
Speaker 1: of people, including uh, including this network who uh you know,
Speaker 1: brought out all the all the outrage that Biden expressed
Speaker 1: about the things that Trump was doing. I'm not meaning to,
Speaker 1: uh to suggest equivalency here. There's two there's strengthly too
Speaker 1: much we don't know. But the behavior so far, I
Speaker 1: think is is troubling. In out of trouble anybody who's
Speaker 1: a supporter of the president's You've got before the even
Speaker 1: the first uh revelation if two to three months lag
Speaker 1: here in uh in talking about it publicly, which is curious. Um,
Speaker 1: and there's no comment at all on on you know
Speaker 1: what or why these problems are existing and UH, and
Speaker 1: it's very strange that you've got a situation, you know,
Speaker 1: over two years or about two years after the president
Speaker 1: became president, that there's still offices around that are that
Speaker 1: have documents and of any kind of I mean, I
Speaker 1: don't understand what they're doing with that. Uh. So you know,
Speaker 1: there's a bigger story here. No nobody knows what it
Speaker 1: is right now. I think Congress will play some role
Speaker 1: in getting to the bottom of that. But UH, and
Speaker 1: I think frankly the press will too. But White House
Speaker 1: is behind the eight ball on this so far. Only
Speaker 1: about thirty seconds left here, Terry. But the Republicans have
Speaker 1: said that they're going to investigate the president on multiple fronts.
Speaker 1: Does this turn into a main focus for them? It'll
Speaker 1: turn into a big a much bigger focus than it
Speaker 1: had before. It is a matter of going back to
Speaker 1: the not meaning to compare this to water Gate, of course,
Speaker 1: but going back to the Watergate days. This is gonna
Speaker 1: be a matter of what the president knew and uh
Speaker 1: and when did he know it? Uh? They're going to
Speaker 1: have a chain of custody, uh, argument and uh and
Speaker 1: and the White House is not going to have any
Speaker 1: good answers as to how this occurred that gonna fan
Speaker 1: the Flans here. This is Bloomberg Daybreak Today, your morning
Speaker 1: brief on the stories making news from Wall Street to
Speaker 1: Washington and beyond. Look for us on your podcast feed
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