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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: We begin with the latest developments involving Boeing after disaster

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Speaker 3: was narrowly averted on an Alaska Airlines flight on Friday.

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Speaker 3: Boring stock right now is down more than eight percent,

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Speaker 3: and we get more from Bloomberg's John Tucker, John and Nathan.

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Speaker 4: The airlines around the globe have been grounding Boeing seven

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Speaker 4: thirty seven Max nine half to a fuselage section on

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Speaker 4: a brand new Alaska Airlines jet blew out during a

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Speaker 4: flight on Friday. This is a door panel that can

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Speaker 4: be sealed or used for access, depending on the configuration.

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Speaker 4: Only luck prevented a more disastrous outcome. The National Transportation

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Speaker 4: Safety Board cheer Jennifer Homandi says Alaska Airlines pilots did

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Speaker 4: report pressurization warning lights on three earlier flights of the

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Speaker 4: two month old plane in question.

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Speaker 5: The auto pressurization fail light that did illuminate in three

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Speaker 5: previous flights, one on December seventh, one on January third,

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Speaker 5: and one on January fourth.

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Speaker 4: A schoolteacher in Portland found the missing fuselage door plug

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Speaker 4: in his backyard. The door plug that blew out was

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Speaker 4: next to seats twenty six A and twenty six P,

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Speaker 4: and just by chance, there was nobody sitting there. The

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Speaker 4: plane did carry one hundred and seventy one passengers, a

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Speaker 4: valuable data usually collected by the so called black box

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Speaker 4: that was a raised Boeing suppliers. Spirit Aerosystems Holdings was

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Speaker 4: the company that installed the planel on the nearly new jet.

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Speaker 4: John Tucker Bloomberg Radio, all.

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Speaker 2: Right, John, thank you well be now when to turn

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Speaker 2: to the latest developments in the Middle East. Secretary of

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Speaker 2: State Anthony Blincoln is in the region for a fourth

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Speaker 2: time since the Israeli Hamas war broke out. Lincoln is

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Speaker 2: warning the war could quote easily become a wider conflict.

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Speaker 2: He spoke during a news conference in Doha.

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Speaker 6: This is a conflict that could easily a tastasize, causing

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Speaker 6: even more insecurity, more suffering and.

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Speaker 2: Secretary of State blank And met with Jordan's Kingdomdullah on Sunday,

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Speaker 2: a day after stops in Turkey and Greece.

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Speaker 3: Well back here in the US here, and the risk

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Speaker 3: of a government shutdown on January twentieth has eased somewhat

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Speaker 3: with word of a deal on spending caps. Bloomberg's Amy

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Speaker 3: Morris has details from Washington.

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Speaker 7: Senate Majority Leader Chuck Schumer and House Speaker Mike Johnson

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Speaker 7: negotiated the bipartisan deal, which caps spending at one point

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Speaker 7: five to nine trillion dollars. Republicans have agreed to a

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Speaker 7: set of budget moves to spare immediate cuts to domestic

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Speaker 7: agency budgets. The deal does not include an agreement to

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Speaker 7: block all conservative policy writers, so there still may be

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Speaker 7: debates over defunding investigations into former President Trump, and while

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Speaker 7: that might cause an impass later, for now, lawmakers have

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Speaker 7: the framework they need to avoid a government shut down

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Speaker 7: this month. The next deadline is February second. In Washington,

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Speaker 7: Amy Morris, Bloomberg Radio.

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Speaker 2: All right, Amy, thank you now. The latest on the

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Speaker 2: health of Lloyd Austin. Bloomberg News has learned the Pentagon's

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Speaker 2: failure to notify prison and in bid and that his

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Speaker 2: Defense secretary had been hospitalized for four days, was the

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Speaker 2: result of a series of errors. They include confusion over

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Speaker 2: Austin's wishes and his chief of staff, Falling Hill from

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Speaker 2: a Republican Congressoman list. Cheney is looking for answers.

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Speaker 8: I think they've got some very serious explaining to do.

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Speaker 8: I think that there's a real difference between public transparency

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Speaker 8: and you know, alerting the commander in chief to the

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Speaker 8: fact that Secretary of Defense is in the hospital. Apparently

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Speaker 8: the deputy Secretary was on vacation in Puerto Rico. I

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Speaker 8: think it's inexplicable. We need to know more about exactly

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Speaker 8: what happened there. But that's not the way the Pentagon

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Speaker 8: ought to be conducting business.

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Speaker 2: And that's former Congressome and liszt Cheney. On Saturday, Secretary

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Speaker 2: Austin apologized for failing to inform the public for days,

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Speaker 2: while saying he's on the mend and expects to return

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Speaker 2: to the Pentagon soon.

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Speaker 3: Let's turn to Wall Street now, Karen Bank earnings and

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Speaker 3: the possible Bitcoin ETF will be front and center this week.

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Speaker 3: More from Bloomberg's Charlie Pellett.

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Speaker 9: Friday, we hear from JP Morgan, Chase, City Group, Bank

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Speaker 9: of America, Anne Wells Fargo. Early earnings reports come amid

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Speaker 9: questions about the path of inflation and FED interest rate POTLESE.

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Speaker 9: Cameron Dawson is chief investment officer at New Edge Wealth.

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Speaker 10: The thing that's the biggest challenge for US for earning

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Speaker 10: sestaments in twenty four is the expectation that topline growth

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Speaker 10: will re accelerate in a year where nominal growth because

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Speaker 10: of inflation is expected to decelerate.

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Speaker 9: Also this week, the Securities and Exchange Commission will decide

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Speaker 9: whether to approve an exchange traded fund tied directly to

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Speaker 9: the world's largest cryptocurrency in New York, Charlie Bloomberg.

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Speaker 11: Radio, All right, Charlie. Thanks.

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Speaker 2: In company news, Bloomberg News has learned MRK is in

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Speaker 2: advanced talks to acquire cancer drugmaker Harpoon Therapeutics. The price

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Speaker 2: tag about seven hundred million dollars. San Francisco based Harpoon

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Speaker 2: is developing drugs that harness the body's immune system to

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Speaker 2: fight cancer. Shares of Harpoon are up about one hundred

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Speaker 2: percent well.

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Speaker 3: Also, while following Apple Care, which has fallen almost six

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Speaker 3: percent to kick off the new year, Jeffries says Apple's

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Speaker 3: iPhone sales slump in China is deepening and the companies

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Speaker 3: likely to see volumes decline further this year. Apple saw

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Speaker 3: a double digit falled volumes in December. Jeffries forecast a

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Speaker 3: similar decline for twenty twenty four. Checking shares of Apple

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Speaker 3: right now they are a little changed to the downside.

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Speaker 2: And on the economic front, Nathan, inflation will be the

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Speaker 2: focus for our investors. Bloomberg's Any del Judaice has more.

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Speaker 12: The Labor Department issues the Consumer Price Index Thursday and

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Speaker 12: the Producer Price Index Friday, both covered December. Rising gasoline

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Speaker 12: prices could have an impact on the household data, says

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Speaker 12: Bloomberg Economics.

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Speaker 11: Looking further out, Bloomberg.

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Speaker 12: Economics 's US inflation continuing to run above the federal

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Speaker 12: reserves two percent target this year, even with all the

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Speaker 12: raid hikes. Vinny del Judice, Bloomberg Radio.

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Speaker 2: Nathan, thank you. It's time for a look at some

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Speaker 2: of the other stories making news around the world, and

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Speaker 2: for that we're joined by Bloomberg's Amy Morris, Sammy, Good morning.

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Speaker 7: Good morning, Karen. Ukraine suffered a second large scale Russian

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Speaker 7: missile barrage this year as temperatures dropped below freezing in

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Speaker 7: the latest escalation of aerial attacks. Now, this barrage killed

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Speaker 7: one woman and left at least thirty more people wounded.

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Speaker 7: After months of relatively few air strikes, Russia is ramping

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Speaker 7: up bombardment just before the new year, firing hundreds of

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Speaker 7: missiles at cities across Ukraine, including the capital. Meanwhile, Ukraine

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Speaker 7: has been targeting bases and occupied Crimea, with the Air

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Speaker 7: Force saying over the weekend that it destroyed our Russian

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Speaker 7: command post there. Meanwhile, President Joe Biden is set to

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Speaker 7: visit Charleston, South Carolina, today, including a stop at Mother

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Speaker 7: Emmanuel Ame Church, where back in twenty fifteen, nine church

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Speaker 7: goers were shot and killed by a self proclaimed white supremacist.

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Speaker 7: Charlotte City Councilman Malcolm Graham is the brother of one

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Speaker 7: of those victims. Cynthia Graham heard and tells ABC News

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Speaker 7: that when the President visits local black history points of interest,

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Speaker 7: he's sending us strong message of.

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Speaker 6: Visiting sites like the new Historic African American Museum, he

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Speaker 6: makes a point that history matters, that black history matters.

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Speaker 6: It just not just occurs in the month of February,

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Speaker 6: that black history is also American history.

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Speaker 7: Biden, meanwhile working to shore up support among black voters

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Speaker 7: and Nicki Haley's home state as the Republican governor of

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Speaker 7: former governor of South Carolina, is rising in the polls.

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Speaker 7: Texas Republican Congressman Tony Gonzalez reflected on the third anniversary

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Speaker 7: of the January sixth attack on the Capitol and stands

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Speaker 7: by his labeling of the mob as domestic terrorists, refusing

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Speaker 7: to accept former President trump statements made on the writers

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Speaker 7: describing them as heroes and hostages.

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Speaker 9: They're certainly not heroes.

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Speaker 13: You know.

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Speaker 9: They broke the law, and we have to obey our laws.

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Speaker 9: We are a nation of laws, and they have to

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Speaker 9: obey the laws.

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Speaker 7: Representative Gonzales tells ABC's This Week he does not support

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Speaker 7: Donald Trump's proposed plan to pardon those convicted for their

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Speaker 7: actions that day. Hospitals across the country are telling people

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Speaker 7: mask up flu and COVID nineteen cases are once again

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Speaker 7: on the rise. The viruses have actually been on the

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Speaker 7: incline for the past few weeks. Health officials are predicting

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Speaker 7: infections will increase even more throughout this month. Global news

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Speaker 7: twenty four hours a day and whenever you want it

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Speaker 7: with Bloomberg News.

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Speaker 13: Now.

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Speaker 7: I'm Amy Morris and this is Bloomberg Karen.

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Speaker 2: Hurry, Amy, thank you. We do bring you news throughout

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Speaker 2: the day here on Bloomberg Radio. But now you can

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Speaker 2: get the latest news on demand, and that means whenever

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Speaker 2: you want it. Subscribe to Bloomberg News Now to get

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Speaker 2: the latest headlines at the click of a button. Get

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Speaker 2: informed on your schedule. You can listen and subscribe to

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Speaker 2: Bloomberg News Now on the Bloomberg Business app, Bloomberg dot

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Speaker 2: Com plus Apple, Spotify, and anywhere else you get your podcasts.

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Speaker 2: Time now for the Bloomberg Sports Update, here's John stash

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Speaker 2: Hour John Karen.

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Speaker 13: The NFL regular season is over. The playoffs begin on

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Speaker 13: Saturday with a late afternoon game between the Cleveland Browns

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Speaker 13: and the Houston Texans. A team that won only eleven

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Speaker 13: games over the previous three seasons won ten this year,

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Speaker 13: and the Texans won the AFC South when Jacksonville lost

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Speaker 13: its game yesterday at Tennessee twenty eight to twenty. Saturday night,

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Speaker 13: it'll be Miami at Kansas City. The Dolphins blew a

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Speaker 13: lead in the AFC East and last night's lost to

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Speaker 13: Buffalo twenty one to fourteen cost the Dolphins the AFC East,

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Speaker 13: so they're a wildcard and they'll take on the Chiefs

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Speaker 13: Sunday at one Eastern Pittsburgh in Buffalo. Then it's Green

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Speaker 13: Bay at Dallas. The Packers gaining a wildcard spot with

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Speaker 13: a seventeen to nine win over Chicago. The Cowboys won

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Speaker 13: the NFC East. They blew out Washington yesterday thirty eight

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Speaker 13: to ten. Sunday night, it'll be the Rams in Detroit,

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Speaker 13: so Matthew Stafford will face his former team in the

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Speaker 13: wildcard weekend will conclude next Monday night. Slumping Philadelphia at

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Speaker 13: Tampa Bay, Eagles have been a train wreck down the

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Speaker 13: stretch of the season, losing five to the last six.

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Speaker 13: They were beaten by the Giants yesterday twenty seven to ten.

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Speaker 13: The Bucks won the NFC South with a nine to

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Speaker 13: nothing win over Carolina Atlanta Falcons of fired coach Arthur Smith.

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Speaker 13: Will the Patriots part ways with Bill Belichick after twenty

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Speaker 13: five years as coach there? We should find out soon.

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Speaker 13: Michigan and Washington played tonight in the Houston for the

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Speaker 13: National Championship, both teams fourteen and er. Although the Huskies

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Speaker 13: haven't won a game by more than ten points since September,

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Speaker 13: the Wolverines are the famous.

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Speaker 9: From coast to coast, from New York to San Francisco,

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Speaker 9: Boston to Washington, DC, nationwide on Syrias Exam.

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Speaker 11: The Bloomberg Business app in Bloomberg dot Com. This is

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Speaker 11: Bloomberg Daybreak.

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Speaker 3: Good morning. I'm Nathan Hager. Airlines around the world are

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Speaker 3: starting to ground their Boeing seven thirty seven Max nine

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Speaker 3: jets after part of the fuselage blew out on a

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Speaker 3: brand new model operated by Alaska Airlines last Friday. It

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Speaker 3: is another blow to Boeing's turnaround efforts after two deadly

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Speaker 3: seven thirty seven Max crashes nearly five years ago. From More,

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Speaker 3: we were joined by Bloomberg News. Aviations are Anthony Palazzo. Anthony,

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Speaker 3: what more do we know about why this mishap happened

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Speaker 3: and where the investigation stands?

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Speaker 11: Hi Nathan, thanks for having me.

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Speaker 14: Yeah, So, we had two developments late late yesterday. One

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Speaker 14: is that the investigators have found the door panel that

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Speaker 14: fell out of the plane.

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Speaker 11: This is a key piece of evidence.

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Speaker 14: And they're going to be looking very closely at the

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Speaker 14: condition of that panel to understand why it popped out

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Speaker 14: of the fuselage section. The panel was found in the

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Speaker 14: backyard of a Portland area school teacher.

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Speaker 3: So what could that panel tell us about how this happened?

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Speaker 14: Well, well, what they've what they've said so far is

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Speaker 14: that they've looked at they've looked at the tabs that

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Speaker 14: hold that panel in from the interier of the plane,

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Speaker 14: which was largely undamaged, and that they didn't find a

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Speaker 14: whole lot of They didn't find, you know, a problem there.

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Speaker 14: So they're gonna so they're going to need to keep

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Speaker 14: going to understand exactly how this came off. Those those

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Speaker 14: panels are screwed in with four bolts. They're not in use,

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Speaker 14: although they can be opened from the outside of the plane.

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Speaker 14: Those are essentially openings that are built for an emergency door.

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Speaker 14: But a lot of the a lot of the airlines

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Speaker 14: that use this aircraft, it's a stretched Boeing seven point

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Speaker 14: thirty seven Max Jet, a lot of the airlines don't

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Speaker 14: use those exit doors because they're not needed for the

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Speaker 14: seat configurations that they need.

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Speaker 3: So this is putting more scrutiny on the manufacturing process

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Speaker 3: at Boeing, particularly around the seven thirty seven Max. Is

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Speaker 3: there something particular about the Max nine that could have

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Speaker 3: caused a problem like this as opposed to the seven

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Speaker 3: thirty seven Maxes that were involved in those crashes that

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Speaker 3: we all remember just a few years ago.

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Speaker 14: Yes, well, the well, the the Max nine is a

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Speaker 14: stretched version of the of the core Boeing Max plane,

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Speaker 14: which is called the Max eight. So it's a it's

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Speaker 14: a bit longer, and it can seat more people. But

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Speaker 14: because it can seat more people in its in its

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Speaker 14: most densely packed configurations, it requires more additional safety exits.

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Speaker 11: So a lot of a lot of the low cost.

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Speaker 14: Carriers that would use that plane would would want to

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Speaker 14: put in more seats and therefore more more emergency exits

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Speaker 14: most carriers.

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Speaker 11: So now the Max eight does not have.

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Speaker 14: That that kind of a kind of configuration, doesn't have

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Speaker 14: those exits and doesn't need them. The way that Boeing

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Speaker 14: has done it is that they put in the essentially

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Speaker 14: modular cutouts into the frame so they can make all

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Speaker 14: the fuselages the same, and then when they finish the

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Speaker 14: aircraft they can decide, you know, with the customer whether

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Speaker 14: or not to install those doors or to install plugs.

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Speaker 11: In those holes. So now that's the difference.

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Speaker 3: Yeah, right, And now we have a couple of hundred

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Speaker 3: of these seven thirty seven Max nines getting taken out

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Speaker 3: of service, these low cost carriers including Alaska and United

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Speaker 3: grounding these jets. How big a blow potentially could this

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Speaker 3: be for Boeing When it's been trying to put a

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Speaker 3: turnaround plan into place.

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Speaker 11: Well, it's a real setback, you know.

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Speaker 14: The extent to how deep or how long term it

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Speaker 14: ends up being that's all yet to be determined.

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Speaker 11: But certainly investors are selling down the stock.

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Speaker 14: This morning we sell that shares go down about eight

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Speaker 14: point three percent in pre market trading. Their supplier is

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Speaker 14: Spirit Aero Systems, that is a former Boeing unit that

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Speaker 14: makes the fuselage and they they're down about sixteen percent.

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Speaker 14: I think there's been there's been a lot of there's

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Speaker 14: been a lot of speculation about the relationship between Boeing

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Speaker 14: and Spirit and how wise it was to separate the

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Speaker 14: two companies. You know, Spirit's been responsible for a couple

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Speaker 14: of the real supplier glitches that have held that production

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Speaker 14: at Boeing, and they've been weakened financially. Boeing had to

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Speaker 14: reduce some contracts with Spirit, they had to infuse some

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Speaker 14: money into it. So this may be something that that

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Speaker 14: Boeing recon suitors in the longer term.

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