Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: We begin with the latest developments involving Boeing after disaster
Speaker 3: was narrowly averted on an Alaska Airlines flight on Friday.
Speaker 3: Boring stock right now is down more than eight percent,
Speaker 3: and we get more from Bloomberg's John Tucker, John and Nathan.
Speaker 4: The airlines around the globe have been grounding Boeing seven
Speaker 4: thirty seven Max nine half to a fuselage section on
Speaker 4: a brand new Alaska Airlines jet blew out during a
Speaker 4: flight on Friday. This is a door panel that can
Speaker 4: be sealed or used for access, depending on the configuration.
Speaker 4: Only luck prevented a more disastrous outcome. The National Transportation
Speaker 4: Safety Board cheer Jennifer Homandi says Alaska Airlines pilots did
Speaker 4: report pressurization warning lights on three earlier flights of the
Speaker 4: two month old plane in question.
Speaker 5: The auto pressurization fail light that did illuminate in three
Speaker 5: previous flights, one on December seventh, one on January third,
Speaker 5: and one on January fourth.
Speaker 4: A schoolteacher in Portland found the missing fuselage door plug
Speaker 4: in his backyard. The door plug that blew out was
Speaker 4: next to seats twenty six A and twenty six P,
Speaker 4: and just by chance, there was nobody sitting there. The
Speaker 4: plane did carry one hundred and seventy one passengers, a
Speaker 4: valuable data usually collected by the so called black box
Speaker 4: that was a raised Boeing suppliers. Spirit Aerosystems Holdings was
Speaker 4: the company that installed the planel on the nearly new jet.
Speaker 4: John Tucker Bloomberg Radio, all.
Speaker 2: Right, John, thank you well be now when to turn
Speaker 2: to the latest developments in the Middle East. Secretary of
Speaker 2: State Anthony Blincoln is in the region for a fourth
Speaker 2: time since the Israeli Hamas war broke out. Lincoln is
Speaker 2: warning the war could quote easily become a wider conflict.
Speaker 2: He spoke during a news conference in Doha.
Speaker 6: This is a conflict that could easily a tastasize, causing
Speaker 6: even more insecurity, more suffering and.
Speaker 2: Secretary of State blank And met with Jordan's Kingdomdullah on Sunday,
Speaker 2: a day after stops in Turkey and Greece.
Speaker 3: Well back here in the US here, and the risk
Speaker 3: of a government shutdown on January twentieth has eased somewhat
Speaker 3: with word of a deal on spending caps. Bloomberg's Amy
Speaker 3: Morris has details from Washington.
Speaker 7: Senate Majority Leader Chuck Schumer and House Speaker Mike Johnson
Speaker 7: negotiated the bipartisan deal, which caps spending at one point
Speaker 7: five to nine trillion dollars. Republicans have agreed to a
Speaker 7: set of budget moves to spare immediate cuts to domestic
Speaker 7: agency budgets. The deal does not include an agreement to
Speaker 7: block all conservative policy writers, so there still may be
Speaker 7: debates over defunding investigations into former President Trump, and while
Speaker 7: that might cause an impass later, for now, lawmakers have
Speaker 7: the framework they need to avoid a government shut down
Speaker 7: this month. The next deadline is February second. In Washington,
Speaker 7: Amy Morris, Bloomberg Radio.
Speaker 2: All right, Amy, thank you now. The latest on the
Speaker 2: health of Lloyd Austin. Bloomberg News has learned the Pentagon's
Speaker 2: failure to notify prison and in bid and that his
Speaker 2: Defense secretary had been hospitalized for four days, was the
Speaker 2: result of a series of errors. They include confusion over
Speaker 2: Austin's wishes and his chief of staff, Falling Hill from
Speaker 2: a Republican Congressoman list. Cheney is looking for answers.
Speaker 8: I think they've got some very serious explaining to do.
Speaker 8: I think that there's a real difference between public transparency
Speaker 8: and you know, alerting the commander in chief to the
Speaker 8: fact that Secretary of Defense is in the hospital. Apparently
Speaker 8: the deputy Secretary was on vacation in Puerto Rico. I
Speaker 8: think it's inexplicable. We need to know more about exactly
Speaker 8: what happened there. But that's not the way the Pentagon
Speaker 8: ought to be conducting business.
Speaker 2: And that's former Congressome and liszt Cheney. On Saturday, Secretary
Speaker 2: Austin apologized for failing to inform the public for days,
Speaker 2: while saying he's on the mend and expects to return
Speaker 2: to the Pentagon soon.
Speaker 3: Let's turn to Wall Street now, Karen Bank earnings and
Speaker 3: the possible Bitcoin ETF will be front and center this week.
Speaker 3: More from Bloomberg's Charlie Pellett.
Speaker 9: Friday, we hear from JP Morgan, Chase, City Group, Bank
Speaker 9: of America, Anne Wells Fargo. Early earnings reports come amid
Speaker 9: questions about the path of inflation and FED interest rate POTLESE.
Speaker 9: Cameron Dawson is chief investment officer at New Edge Wealth.
Speaker 10: The thing that's the biggest challenge for US for earning
Speaker 10: sestaments in twenty four is the expectation that topline growth
Speaker 10: will re accelerate in a year where nominal growth because
Speaker 10: of inflation is expected to decelerate.
Speaker 9: Also this week, the Securities and Exchange Commission will decide
Speaker 9: whether to approve an exchange traded fund tied directly to
Speaker 9: the world's largest cryptocurrency in New York, Charlie Bloomberg.
Speaker 11: Radio, All right, Charlie. Thanks.
Speaker 2: In company news, Bloomberg News has learned MRK is in
Speaker 2: advanced talks to acquire cancer drugmaker Harpoon Therapeutics. The price
Speaker 2: tag about seven hundred million dollars. San Francisco based Harpoon
Speaker 2: is developing drugs that harness the body's immune system to
Speaker 2: fight cancer. Shares of Harpoon are up about one hundred
Speaker 2: percent well.
Speaker 3: Also, while following Apple Care, which has fallen almost six
Speaker 3: percent to kick off the new year, Jeffries says Apple's
Speaker 3: iPhone sales slump in China is deepening and the companies
Speaker 3: likely to see volumes decline further this year. Apple saw
Speaker 3: a double digit falled volumes in December. Jeffries forecast a
Speaker 3: similar decline for twenty twenty four. Checking shares of Apple
Speaker 3: right now they are a little changed to the downside.
Speaker 2: And on the economic front, Nathan, inflation will be the
Speaker 2: focus for our investors. Bloomberg's Any del Judaice has more.
Speaker 12: The Labor Department issues the Consumer Price Index Thursday and
Speaker 12: the Producer Price Index Friday, both covered December. Rising gasoline
Speaker 12: prices could have an impact on the household data, says
Speaker 12: Bloomberg Economics.
Speaker 11: Looking further out, Bloomberg.
Speaker 12: Economics 's US inflation continuing to run above the federal
Speaker 12: reserves two percent target this year, even with all the
Speaker 12: raid hikes. Vinny del Judice, Bloomberg Radio.
Speaker 2: Nathan, thank you. It's time for a look at some
Speaker 2: of the other stories making news around the world, and
Speaker 2: for that we're joined by Bloomberg's Amy Morris, Sammy, Good morning.
Speaker 7: Good morning, Karen. Ukraine suffered a second large scale Russian
Speaker 7: missile barrage this year as temperatures dropped below freezing in
Speaker 7: the latest escalation of aerial attacks. Now, this barrage killed
Speaker 7: one woman and left at least thirty more people wounded.
Speaker 7: After months of relatively few air strikes, Russia is ramping
Speaker 7: up bombardment just before the new year, firing hundreds of
Speaker 7: missiles at cities across Ukraine, including the capital. Meanwhile, Ukraine
Speaker 7: has been targeting bases and occupied Crimea, with the Air
Speaker 7: Force saying over the weekend that it destroyed our Russian
Speaker 7: command post there. Meanwhile, President Joe Biden is set to
Speaker 7: visit Charleston, South Carolina, today, including a stop at Mother
Speaker 7: Emmanuel Ame Church, where back in twenty fifteen, nine church
Speaker 7: goers were shot and killed by a self proclaimed white supremacist.
Speaker 7: Charlotte City Councilman Malcolm Graham is the brother of one
Speaker 7: of those victims. Cynthia Graham heard and tells ABC News
Speaker 7: that when the President visits local black history points of interest,
Speaker 7: he's sending us strong message of.
Speaker 6: Visiting sites like the new Historic African American Museum, he
Speaker 6: makes a point that history matters, that black history matters.
Speaker 6: It just not just occurs in the month of February,
Speaker 6: that black history is also American history.
Speaker 7: Biden, meanwhile working to shore up support among black voters
Speaker 7: and Nicki Haley's home state as the Republican governor of
Speaker 7: former governor of South Carolina, is rising in the polls.
Speaker 7: Texas Republican Congressman Tony Gonzalez reflected on the third anniversary
Speaker 7: of the January sixth attack on the Capitol and stands
Speaker 7: by his labeling of the mob as domestic terrorists, refusing
Speaker 7: to accept former President trump statements made on the writers
Speaker 7: describing them as heroes and hostages.
Speaker 9: They're certainly not heroes.
Speaker 13: You know.
Speaker 9: They broke the law, and we have to obey our laws.
Speaker 9: We are a nation of laws, and they have to
Speaker 9: obey the laws.
Speaker 7: Representative Gonzales tells ABC's This Week he does not support
Speaker 7: Donald Trump's proposed plan to pardon those convicted for their
Speaker 7: actions that day. Hospitals across the country are telling people
Speaker 7: mask up flu and COVID nineteen cases are once again
Speaker 7: on the rise. The viruses have actually been on the
Speaker 7: incline for the past few weeks. Health officials are predicting
Speaker 7: infections will increase even more throughout this month. Global news
Speaker 7: twenty four hours a day and whenever you want it
Speaker 7: with Bloomberg News.
Speaker 13: Now.
Speaker 7: I'm Amy Morris and this is Bloomberg Karen.
Speaker 2: Hurry, Amy, thank you. We do bring you news throughout
Speaker 2: the day here on Bloomberg Radio. But now you can
Speaker 2: get the latest news on demand, and that means whenever
Speaker 2: you want it. Subscribe to Bloomberg News Now to get
Speaker 2: the latest headlines at the click of a button. Get
Speaker 2: informed on your schedule. You can listen and subscribe to
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Speaker 2: Com plus Apple, Spotify, and anywhere else you get your podcasts.
Speaker 2: Time now for the Bloomberg Sports Update, here's John stash
Speaker 2: Hour John Karen.
Speaker 13: The NFL regular season is over. The playoffs begin on
Speaker 13: Saturday with a late afternoon game between the Cleveland Browns
Speaker 13: and the Houston Texans. A team that won only eleven
Speaker 13: games over the previous three seasons won ten this year,
Speaker 13: and the Texans won the AFC South when Jacksonville lost
Speaker 13: its game yesterday at Tennessee twenty eight to twenty. Saturday night,
Speaker 13: it'll be Miami at Kansas City. The Dolphins blew a
Speaker 13: lead in the AFC East and last night's lost to
Speaker 13: Buffalo twenty one to fourteen cost the Dolphins the AFC East,
Speaker 13: so they're a wildcard and they'll take on the Chiefs
Speaker 13: Sunday at one Eastern Pittsburgh in Buffalo. Then it's Green
Speaker 13: Bay at Dallas. The Packers gaining a wildcard spot with
Speaker 13: a seventeen to nine win over Chicago. The Cowboys won
Speaker 13: the NFC East. They blew out Washington yesterday thirty eight
Speaker 13: to ten. Sunday night, it'll be the Rams in Detroit,
Speaker 13: so Matthew Stafford will face his former team in the
Speaker 13: wildcard weekend will conclude next Monday night. Slumping Philadelphia at
Speaker 13: Tampa Bay, Eagles have been a train wreck down the
Speaker 13: stretch of the season, losing five to the last six.
Speaker 13: They were beaten by the Giants yesterday twenty seven to ten.
Speaker 13: The Bucks won the NFC South with a nine to
Speaker 13: nothing win over Carolina Atlanta Falcons of fired coach Arthur Smith.
Speaker 13: Will the Patriots part ways with Bill Belichick after twenty
Speaker 13: five years as coach there? We should find out soon.
Speaker 13: Michigan and Washington played tonight in the Houston for the
Speaker 13: National Championship, both teams fourteen and er. Although the Huskies
Speaker 13: haven't won a game by more than ten points since September,
Speaker 13: the Wolverines are the famous.
Speaker 9: From coast to coast, from New York to San Francisco,
Speaker 9: Boston to Washington, DC, nationwide on Syrias Exam.
Speaker 11: The Bloomberg Business app in Bloomberg dot Com. This is
Speaker 11: Bloomberg Daybreak.
Speaker 3: Good morning. I'm Nathan Hager. Airlines around the world are
Speaker 3: starting to ground their Boeing seven thirty seven Max nine
Speaker 3: jets after part of the fuselage blew out on a
Speaker 3: brand new model operated by Alaska Airlines last Friday. It
Speaker 3: is another blow to Boeing's turnaround efforts after two deadly
Speaker 3: seven thirty seven Max crashes nearly five years ago. From More,
Speaker 3: we were joined by Bloomberg News. Aviations are Anthony Palazzo. Anthony,
Speaker 3: what more do we know about why this mishap happened
Speaker 3: and where the investigation stands?
Speaker 11: Hi Nathan, thanks for having me.
Speaker 14: Yeah, So, we had two developments late late yesterday. One
Speaker 14: is that the investigators have found the door panel that
Speaker 14: fell out of the plane.
Speaker 11: This is a key piece of evidence.
Speaker 14: And they're going to be looking very closely at the
Speaker 14: condition of that panel to understand why it popped out
Speaker 14: of the fuselage section. The panel was found in the
Speaker 14: backyard of a Portland area school teacher.
Speaker 3: So what could that panel tell us about how this happened?
Speaker 14: Well, well, what they've what they've said so far is
Speaker 14: that they've looked at they've looked at the tabs that
Speaker 14: hold that panel in from the interier of the plane,
Speaker 14: which was largely undamaged, and that they didn't find a
Speaker 14: whole lot of They didn't find, you know, a problem there.
Speaker 14: So they're gonna so they're going to need to keep
Speaker 14: going to understand exactly how this came off. Those those
Speaker 14: panels are screwed in with four bolts. They're not in use,
Speaker 14: although they can be opened from the outside of the plane.
Speaker 14: Those are essentially openings that are built for an emergency door.
Speaker 14: But a lot of the a lot of the airlines
Speaker 14: that use this aircraft, it's a stretched Boeing seven point
Speaker 14: thirty seven Max Jet, a lot of the airlines don't
Speaker 14: use those exit doors because they're not needed for the
Speaker 14: seat configurations that they need.
Speaker 3: So this is putting more scrutiny on the manufacturing process
Speaker 3: at Boeing, particularly around the seven thirty seven Max. Is
Speaker 3: there something particular about the Max nine that could have
Speaker 3: caused a problem like this as opposed to the seven
Speaker 3: thirty seven Maxes that were involved in those crashes that
Speaker 3: we all remember just a few years ago.
Speaker 14: Yes, well, the well, the the Max nine is a
Speaker 14: stretched version of the of the core Boeing Max plane,
Speaker 14: which is called the Max eight. So it's a it's
Speaker 14: a bit longer, and it can seat more people. But
Speaker 14: because it can seat more people in its in its
Speaker 14: most densely packed configurations, it requires more additional safety exits.
Speaker 11: So a lot of a lot of the low cost.
Speaker 14: Carriers that would use that plane would would want to
Speaker 14: put in more seats and therefore more more emergency exits
Speaker 14: most carriers.
Speaker 11: So now the Max eight does not have.
Speaker 14: That that kind of a kind of configuration, doesn't have
Speaker 14: those exits and doesn't need them. The way that Boeing
Speaker 14: has done it is that they put in the essentially
Speaker 14: modular cutouts into the frame so they can make all
Speaker 14: the fuselages the same, and then when they finish the
Speaker 14: aircraft they can decide, you know, with the customer whether
Speaker 14: or not to install those doors or to install plugs.
Speaker 11: In those holes. So now that's the difference.
Speaker 3: Yeah, right, And now we have a couple of hundred
Speaker 3: of these seven thirty seven Max nines getting taken out
Speaker 3: of service, these low cost carriers including Alaska and United
Speaker 3: grounding these jets. How big a blow potentially could this
Speaker 3: be for Boeing When it's been trying to put a
Speaker 3: turnaround plan into place.
Speaker 11: Well, it's a real setback, you know.
Speaker 14: The extent to how deep or how long term it
Speaker 14: ends up being that's all yet to be determined.
Speaker 11: But certainly investors are selling down the stock.
Speaker 14: This morning we sell that shares go down about eight
Speaker 14: point three percent in pre market trading. Their supplier is
Speaker 14: Spirit Aero Systems, that is a former Boeing unit that
Speaker 14: makes the fuselage and they they're down about sixteen percent.
Speaker 14: I think there's been there's been a lot of there's
Speaker 14: been a lot of speculation about the relationship between Boeing
Speaker 14: and Spirit and how wise it was to separate the
Speaker 14: two companies. You know, Spirit's been responsible for a couple
Speaker 14: of the real supplier glitches that have held that production
Speaker 14: at Boeing, and they've been weakened financially. Boeing had to
Speaker 14: reduce some contracts with Spirit, they had to infuse some
Speaker 14: money into it. So this may be something that that
Speaker 14: Boeing recon suitors in the longer term.
Speaker 1: This is Bloomberg Daybreak Today, your morning brief on the
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