Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we begin well with the latest on the wildfires
Speaker 3: in Los Angeles. The death toll remains at twenty four,
Speaker 3: with at least three active fires still raging across the area.
Speaker 3: Another round of dangerous weather is in the forecast today
Speaker 3: for wind gusts as high as fifty miles an hour.
Speaker 3: Los Angeles County Deputy Fire Chief Robert Harris says people
Speaker 3: need to be ready.
Speaker 4: Severe weather conditions will continue through Wednesday. Please be assured
Speaker 4: that the Los Angeles County Fire Department is prepared and
Speaker 4: we are anticipating winds and humidity and low moisture which
Speaker 4: will be a threat to the Los Angeles County area.
Speaker 3: Deputy Fire Chief Robert Harris says that threat extends north
Speaker 3: to Ventura County as well. At the White House, President
Speaker 3: Biden is looking ahead to the recovery.
Speaker 5: To cover.
Speaker 6: The costs over the next one hundred and eighty days
Speaker 6: for making my firefront.
Speaker 2: Overtime, pay you breath and rumal temporary shelters.
Speaker 6: It's going to cost tens of billions of dollars.
Speaker 3: The presidents spoke at a White House briefing. Wells Fargo
Speaker 3: and Goldman Sachs estimate the insured losses alone could top
Speaker 3: thirty billion dollars.
Speaker 2: Meanwhile, Nathan officials are still looking into what could have
Speaker 2: caused these fires. LA County Sheriff Robert Luna says they're
Speaker 2: investigating whether power lines owned by Southern California Edison could
Speaker 2: have sparked the Eton fire that's devastated Alta Dina, But
Speaker 2: the CEO of Edison's parent company, Pedro Bizarro, tells Bloomberg,
Speaker 2: there's no evidence to lines we're having any issues.
Speaker 5: Typically, when you have a fire cost by electrical infrastructure,
Speaker 5: you do see a signature of voltage dropping, current increasing.
Speaker 6: We have not seen that in our study.
Speaker 2: CEO Pedro Pizarro's Edison International is facing a lawsuit over
Speaker 2: the Eton fire. Residents have also filed a lass against
Speaker 2: the LA Department of Power and Water over limited water
Speaker 2: supplies to fight the Palisades fire.
Speaker 3: Well, Karen. Another developing story we're following this morning is
Speaker 3: the release of part of Special Counsel Jack Smith's report.
Speaker 3: He says President ELEC. Donald Trump could have been convicted
Speaker 3: for trying to overturn the twenty twenty election. We get
Speaker 3: the details from Bloomberg's Genis Cervetti.
Speaker 5: The DOJ released Smith's one hundred thirty seven page report
Speaker 5: after a week of legal wrangling over whether the document
Speaker 5: could be made public. Trump's team had made emergency requests
Speaker 5: to federal courts to block it from being released. Had
Speaker 5: they succeeded, the new administration could have buried it for good.
Speaker 5: The report details Trump's efforts to pressure Vice President Mike
Speaker 5: Pence to reject congressional certification of the twenty twenty election,
Speaker 5: including a deadly attack on the US Capitol on January sixth,
Speaker 5: twenty twenty one. The report also highlights Trump's refusal to
Speaker 5: help stop the riot and his continued support for those
Speaker 5: who attacked the Capitol, which Smith sees as further evidence
Speaker 5: of Trump's gill Trump and his allies have long railed
Speaker 5: against Smith's investigation and findings, saying they represent a baseless
Speaker 5: political attack. Gina Cervetti, Bloomberg Radio.
Speaker 2: All right, Gina, thank you all. Turning now to the
Speaker 2: Middle East, The Wall Street Journal reports this morning that
Speaker 2: Israel and Hamas are finalizing terms on a ceasefire deal
Speaker 2: that could be announced as soon as today. Both sides
Speaker 2: are warning, however, that talks could still fall apart if
Speaker 2: all those comments are in President elect Trump and President Biden,
Speaker 2: who both say a pause and fighting could come before
Speaker 2: inauguration day next week. US National Security Advisor Jake Sullivan
Speaker 2: told Bloomberg he's also optimistic about a deal.
Speaker 7: I think the pressure is building for Hamas to come
Speaker 7: to yes. I think Israel also has achieved a huge
Speaker 7: amount of its military objectives in Gaza, and therefore they
Speaker 7: are in a position to be able to say yes.
Speaker 7: So there is a distinct possibility that we can get
Speaker 7: this deal done this week before President Biden leaves office.
Speaker 2: And despite progress, US National Security Advisor Jake Sullivan still
Speaker 2: urges caution about a possible sea fire. The proposed deal
Speaker 2: would involve a forty two day truce with Hamas releasing
Speaker 2: thirty three hostages in its first phase. According to senior
Speaker 2: Israeli officials, Palestinian prisoners would be released from Israeli jails
Speaker 2: and a buffer zone established in Gaza, with further negotiations
Speaker 2: to follow.
Speaker 3: Now Karen a Bloomberg News exclusive some of President elect
Speaker 3: Donald Trump's economic team is considering a plan to gradually
Speaker 3: increase trade tariffs. Sources say the discussions are looking at
Speaker 3: ratcheting up levies by about two to five percent each month.
Speaker 6: That we get more from Bloomberg's Critty Gupta, This.
Speaker 8: Of course, is still a proposal that's being reported on.
Speaker 8: It's not official yet, and it's also being proposed by
Speaker 8: people who are not in power just yet, so there
Speaker 8: are a lot of ifs and butts involved, But the
Speaker 8: crux of the idea simply that it uses an act
Speaker 8: that grants emergency powers to the president when declaring that
Speaker 8: the country is in a national emergency.
Speaker 3: Bloomberg's Pretty Gupta says Scott Bessen, Kevin Hassett, and Steven
Speaker 3: Moran are working on the plan, but the gradual tariff
Speaker 3: hike proposals in its early stages and has not yet
Speaker 3: been presented to Trump. A spokesman for the transition team
Speaker 3: referred to the president to likes previous public comments and
Speaker 3: social media posts about tariffs.
Speaker 5: Well.
Speaker 2: Nathan Elon Musk will continue to have major access to
Speaker 2: Donald Trump when he takes office. The New York Times
Speaker 2: is reporting Musk is expected to use office space adjacent
Speaker 2: to the White House as he launches the Department of
Speaker 2: Government Efficiency. Musk owns companies with billions of dollars in
Speaker 2: contracts with the federal government.
Speaker 3: And could the world's richest person be in line for
Speaker 3: another business Karen Bloomberg News has learned Chinese officials are
Speaker 3: evaluating the possible sale of TikTok's US operations to Musk.
Speaker 3: We are told it is one option being explored if
Speaker 3: TikTok fails to fend off a US ban or from
Speaker 3: Bloomberg's Annabelle Drulers, this is a.
Speaker 9: Potential deal that possibly does hold some appeal for the
Speaker 9: Chinese government, which does of course have say over whether
Speaker 9: TikTok is ultimately sold. The deal value of this I
Speaker 9: mean Bloomberg intelligence. Again, it's very difficult to say, but
Speaker 9: last year they were saying TikTok's the US operations could
Speaker 9: be worth something to magnitude of forty to fifty billion dollars.
Speaker 9: And it's also not sure what sort of structure the
Speaker 9: deal could take either, but it would certainly be a
Speaker 9: very complex process.
Speaker 6: It's Bloomberg's anabel Droolers.
Speaker 3: Last week, the Supreme Court signal that is likely to
Speaker 3: uphold the law that would ban the app in the
Speaker 3: US on national security grounds.
Speaker 2: Well, we turned to the markets now, Nathan, and futures
Speaker 2: are higher following yesterday's later turnaround on Wall Street. Today's
Speaker 2: trading could be impacted by the first of this week's.
Speaker 6: Key inflation reports.
Speaker 2: We get a preview of the Producer Price Index with
Speaker 2: Bloomberg's Michael McKee.
Speaker 10: Economists see further proof coming that disinflation has paused, if
Speaker 10: not ended, Rising monthly prices will be in significant jumps
Speaker 10: on an annual basis, something which might scare already nervous investors.
Speaker 10: While the PPI doesn't directly correlate to Wednesday's consumer price report,
Speaker 10: several of its components feed into the Fed's preferred inflation indicator,
Speaker 10: the PCE index. Bloomberg Economics sees portfolio management and airfares
Speaker 10: continuing to drift higher. All healthcare gains are muted ahead
Speaker 10: of January's cost resets. Michael McKee, Bloomberg Radio.
Speaker 2: And it's time now for look at some of the
Speaker 2: other stories making news in New York and around the world.
Speaker 2: And for that we're joined by Bloomberg's John Tucker.
Speaker 11: John, Good Morning, Good Morning, Karen, New York city's first
Speaker 11: in the nation, congestion pricing appears to be working. Let's
Speaker 11: get the story this morning from Bloomberg Jeff Bellinger.
Speaker 12: Traffic on New York's busiest streets dropped by seven and
Speaker 12: a half percent, and morning travel times fell on most
Speaker 12: major crossings into Manhattan during the first work week of
Speaker 12: the city's congestion pricing plan. The preliminary data from the
Speaker 12: Metropolitan Transportation Authority is the first glimpse into how the
Speaker 12: new charge is impacting commuting patterns. The early data follows
Speaker 12: a week of social media postings and reports of residents
Speaker 12: and drivers enjoying easier flowing traffic, and average five hundred
Speaker 12: and thirty nine thousand vehicles drove into the toll zone
Speaker 12: each day during the first work week of the program.
Speaker 12: That's about forty three thousand fewer than before congestion pricing began.
Speaker 12: Jeff Bellinger, Bloomberg Radio.
Speaker 11: President Biden touted his foreign policy accomplishments and a speech
Speaker 11: aimed at burnishing his luncacy before he departs office next week.
Speaker 3: BI administration is leaving the next administration with a very
Speaker 3: strong hand to play in America.
Speaker 12: More friends, strong reliance, xavasars are weaker and under pressure.
Speaker 11: Biden also reflecting on the competition with China, saying we
Speaker 11: expect China and everyone to abide by the international rules.
Speaker 11: Special Counsel David Weiss got the last word leading the
Speaker 11: investigation into Hunter Biden and the President's decision to part
Speaker 11: in his son. Weiss's final report was released yesterday. The
Speaker 11: President said the Hunter was treated differently and single out
Speaker 11: because he is his son. Weiss fired back, saying those
Speaker 11: baseless accusations have no merit and rescuers were sending a
Speaker 11: cage like structure into one of South Africa's deepest minds. Today,
Speaker 11: it's an attempt to bring out survivors among hundreds. If
Speaker 11: illegal mind trapped underground four months in an abandoned shaft,
Speaker 11: more than one hundred or believed to have died of
Speaker 11: starvation or dehydration. Global News twenty four hours a day.
Speaker 11: Whatever he wanted, we have Bloomberg News.
Speaker 2: Now.
Speaker 11: I'm John Tucker, and this is Bloomberg.
Speaker 6: Karen, Right, John Tucker, thank you.
Speaker 2: Time now for the Bloomberg Sports up Day, brought to
Speaker 2: you by Tri State Outing.
Speaker 6: Here's John Stanshawer. John, Good morning, Good morning, Karen.
Speaker 13: Sports is back in Los Angeles first time since the
Speaker 13: fires broke out home games last night for the Lakers,
Speaker 13: who lost and the Clippers, who won, and the Rams
Speaker 13: had their playoff game of the Vikings. It was moved
Speaker 13: out of LA into Phoenix, and the Rams won with
Speaker 13: surprising ease against the Minnesota team that went fourteen and
Speaker 13: three in the regular season. LA up twenty four to
Speaker 13: three at half time, went on to win twenty seven
Speaker 13: to nine a dominant defensive effort. They sacked Sam Darnold
Speaker 13: nine times, he threw an interception, he had a fumble
Speaker 13: that was returned for a Rams touchdown. Matthew Stafford threw
Speaker 13: for two TVs, then talked about the extra meaning of
Speaker 13: the victory.
Speaker 6: We know what we're playing today, you know, was it
Speaker 6: was go get the swim A man of swept people.
Speaker 14: Los Angeles struggling right now.
Speaker 7: It's been unbelieable to watch the gold community, you know,
Speaker 7: the state, the country kind of get behind him.
Speaker 6: It's it's a tough time to be back there. And uh, we're.
Speaker 7: Just happy that we came out and played like this
Speaker 7: Tonight's that gets, you know, something.
Speaker 6: To be happy about.
Speaker 13: Rams will now play Sunday afternoon in Philadelphia. This contract expired,
Speaker 13: the Dallas Cowboys cut ties with coach Mike McCarthy. Dallas
Speaker 13: just went through an injury ravage seven and ten season.
Speaker 13: They won twelve games each of the previous three. McCarthy's
Speaker 13: now free to pursue other jobs. Cowboys had previously prevented
Speaker 13: him from an interview with the Bears. Meanwhile, ESPN reported
Speaker 13: last night Cowboys owner Jerry Jones has already spoken with
Speaker 13: Colorado coach Eon Sanders. At the guard much improved Pistons
Speaker 13: beat the Knicks one twenty four to one nineteen. Led
Speaker 13: by Cade cunning Ham. He scored thirty six points, Jalen
Speaker 13: Brunts and led the Knicks with thirty one At the
Speaker 13: Australian Open first round straight said victories for Americans Taylor Fritz,
Speaker 13: Ben Shelton, Emma Navarro.
Speaker 6: And Madison Keats. John Stanshy that we're a Bloomberg Sports.
Speaker 1: Kennonnythan coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 1: and around the world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 6: Good morning.
Speaker 3: I'm Nathan Hager on another very challenging day in store
Speaker 3: for the Los Angeles area after now a week of
Speaker 3: deadly wildfires, more punishing winds or in the forecast today,
Speaker 3: but Los Angeles County Fire Captain Sheila Kelleher says they're
Speaker 3: as ready as there going to be.
Speaker 10: We have cruiseworthy belong everybody's in place, everybody knows the mission,
Speaker 10: everybody knows a game plan because when the winds start blowing,
Speaker 10: we will have our hands full.
Speaker 6: But we are ready for what's coming our way and
Speaker 6: from more.
Speaker 3: We are joined this morning by Bloomberg's Derek Wallbank. Derek,
Speaker 3: good morning, Let's talk about what is coming their way
Speaker 3: up to fifty mile an hour wind gusts and continued
Speaker 3: dangerous conditions.
Speaker 6: Good morning, Good morning.
Speaker 14: Yeah, that's exactly right. You know, you're talking about some
Speaker 14: conditions here that are going to mirror over the next
Speaker 14: little while the conditions that were in place at the
Speaker 14: start of the Palisades fire. This has a lot of
Speaker 14: people officials in the area on edge, and that's that's
Speaker 14: going to be the situation that we're facing for the
Speaker 14: next little while. As I say, at the same time,
Speaker 14: you know, we're getting accounts of exactly how much this
Speaker 14: is going to cost. The estimates keep going up. Acueathers
Speaker 14: overall estimate toll now somewhere around two hundred and fifty
Speaker 14: billion dollars billion, with a B dollars the insured losses
Speaker 14: on this. I've now seen two estimates that put that
Speaker 14: around the thirty billion dollar mark. That's that's continuing to
Speaker 14: rise as well. And you know that's just sort of
Speaker 14: Nathan where we stand right now. The more that you
Speaker 14: have fire conditions like this that prevent these from getting
Speaker 14: put out, that maybe put new ones in new areas,
Speaker 14: the more those totals may rise.
Speaker 3: And when you think, Derek about the human total in
Speaker 3: the economic toll, you have to wonder what the overall
Speaker 3: knock on effect on the US economy is going to
Speaker 3: take from these fires.
Speaker 14: Yeah, and you know, we saw we saw one one
Speaker 14: estimate that said that you could have a small effect
Speaker 14: on the on the jobless rate, that is, that is
Speaker 14: certainly something that's in play. You also could have a
Speaker 14: somewhat smaller effect on overall GDP. I think the main
Speaker 14: thing is that you have a little bit of a
Speaker 14: sectoral concentration. Right. We've written extensively. My colleague Lucashow particularly
Speaker 14: he has written extensive, extensively about the effects on the
Speaker 14: entertainment industry. Uh uh, you know, productions are generally shut
Speaker 14: down in the LA area even if it's not fire effected.
Speaker 14: You know, you're not necessarily getting the permits. Well, you know,
Speaker 14: if you need police or something else to be at
Speaker 14: your production, how are you going to go do that?
Speaker 14: So there's going to be some of those I mentioned. Insurers,
Speaker 14: particularly home insurers, are potentially exposed there, So there will
Speaker 14: be some sectors that are particularly gravely hit. And then
Speaker 14: that all raises the question, does it not of what
Speaker 14: the federal response is going to be in terms of reimbursing. Right,
Speaker 14: you know, President Joe Biden has talked about a potential
Speaker 14: federal bill for this in the tens of billions of dollars.
Speaker 14: And at the same time, we're hearing Republicans start to
Speaker 14: talk about the word offsets. Remember, there's going to be
Speaker 14: universal Republican control of Congress in the not too dissidant future,
Speaker 14: Congress and the White House in the not too distant future.
Speaker 14: They already have universal control of Congress. So that's going
Speaker 14: to be a really keen question that we're going to
Speaker 14: have to look at going.
Speaker 3: Forward as we continue to ask those questions and monitor
Speaker 3: the wildfire situation. We got the report dropped overnight from
Speaker 3: the Justice Department Special Counsel Jack Smith's investigation into twenty
Speaker 3: twenty election interference. How much of an impact could this
Speaker 3: have now with less than a week to go before
Speaker 3: President elect Trump becomes president?
Speaker 6: Trump again got about a minute.
Speaker 14: Well, Nathan, I don't think that it's going to prevent
Speaker 14: Trump from becoming president, right, And I think that a
Speaker 14: lot of this stuff this report. Our listeners will have
Speaker 14: a chance to read this as they wake up and
Speaker 14: they get into work. They will find a very compelling
Speaker 14: and detailed tale of what Trump was doing in and
Speaker 14: around those events at the Capitol of January sixth, and
Speaker 14: his efforts to try and to reverse the results of
Speaker 14: the election. Those have already been well litigated. I think
Speaker 14: the American public was very well aware of all of that.
Speaker 14: It factored into people's votes where they thought it ought to,
Speaker 14: and Trump was elected. Anyway. Trump is walking in here,
Speaker 14: as they say, into a situation with universal Republicans control.
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Speaker 6: And I'm Nathan Hager.
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Speaker 3: Ray