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Speaker 1: Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg

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Speaker 1: day Break for Wednesday, January eleventh. Coming up this hour

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Speaker 1: No led up to the massive rains that have claimed

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Speaker 1: seventeen lives in California. President Biden speaks out about classified

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Speaker 1: documents in his old office as Republicans craped multiple investigations,

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Speaker 1: double lines. Jeffrey Gunla says listened to the bond market,

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Speaker 1: not the Fed. On races, and another big bank is

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Speaker 1: set to slash bonuses. New York Governor Holkel wants to

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Speaker 1: ban natural gas and buildings. Plus New Jersey Governor Murphy

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Speaker 1: calls to end double taxation of commuters to New York.

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Speaker 1: On Michael bar I'm John stas shower and sports, Carlos

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Speaker 1: Correa will be a twin, not a mat. The Rangers

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Speaker 1: and Devils won, the Islanders lost. That's all s Trady

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Speaker 1: head on Bloomberg day Break on Bloomberg eleven Free on

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Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh

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Speaker 1: six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x

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Speaker 1: M one nineteen and around the world on Bloomberg Radio

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Speaker 1: dot Com and via the Bloomberg Business. Good morning, I'm

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Speaker 1: Nathan Hagar and I'm Karin Moscow. If here are the

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Speaker 1: stories we're following today. We continue tracking the dangerous weather

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Speaker 1: on the West Coast. More storms are headed to California

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Speaker 1: as the state continues reeling from about with severe weather.

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Speaker 1: Ed Baxter has the latest from our Bloomberg nine sixty

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Speaker 1: newsroom in San Francisco. Just as some residents are allowed

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Speaker 1: back into their homes, they are being told they're going

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Speaker 1: to have to evacuate again. It is a story that's

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Speaker 1: being played out from the very north to the south

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Speaker 1: with a very threat of danger, pointed out by the

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Speaker 1: fact that at least fifteen people have lost their lives.

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Speaker 1: Governor Gavin Newsom says three more storms at least are

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Speaker 1: headed our way. We're not out of the woods. We

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Speaker 1: expect these storms to continue at least through the of

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Speaker 1: this month. The largest fear is in the hills and

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Speaker 1: along major rivers, But yesterday afternoon even San Francisco declared

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Speaker 1: a rare flash flood warning. In San Francis leus Go.

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Speaker 1: I'm at Baxter Bloomberg Daybreak. Alright, and thank you for

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Speaker 1: turning to politics. Now we're hearing from President Biden for

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Speaker 1: the first time since news broke that classified documents were

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Speaker 1: discovered in an office used before he was elected. I've

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Speaker 1: turned over the boxes, They've turned over the boxes to

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Speaker 1: the Archives, and we're co operating fully, co operating fully

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Speaker 1: with the review and which I hope will be finished

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Speaker 1: soon and it will be more detailed at that time.

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Speaker 1: And President Biden says his lawyers did the right thing

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Speaker 1: by calling the National Archives. Congressional Republicans are promising to

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Speaker 1: investigate well. President Biden spoke there caring at the end

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Speaker 1: of the North American leaders summit in Mexico City. That

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Speaker 1: event saw the President defending policies of the border and

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Speaker 1: downplaying differences with Canada and Mexico. Overtrade Lester Monson is

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Speaker 1: a principle at the government relations firm b GR Group.

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Speaker 1: He says, the US is stuck in an anti free

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Speaker 1: trade mentality, and if we can use this as a

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Speaker 1: way to kind of open up a little bit at

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Speaker 1: least two other countries that are nearby, countries that are

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Speaker 1: biologically aligned with US, that's good. I would like to

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Speaker 1: see you can kind of break out of a fortress

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Speaker 1: America thinking. Lester months in with b GR Group was

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Speaker 1: a guest on Bloomberg Sound On with Joe Matthew. Catch

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Speaker 1: the show weekdays at five pm Eastern on Bloomberg Radio

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Speaker 1: and listen on demand wherever you get your podcasts. Well,

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Speaker 1: turning to the markets now, Nathan stocks are coming off

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Speaker 1: gains which saw the S and P five hundred close

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Speaker 1: above the mark. Technical analysts cite that as a resistance

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Speaker 1: level that could help define a more solid trend. Amanda

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Speaker 1: got A Chief investment officer at p NCS Management, says

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Speaker 1: markets continue to be driven by the FED, with the

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Speaker 1: labor market just continuing to be so so strong, thinking

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Speaker 1: it's really a tough dynamic for the FED. All of

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Speaker 1: this is making the Fed's job much harder. And I

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Speaker 1: think it comes back to a concept we've been talking

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Speaker 1: about for the better part of two and that's the

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Speaker 1: perfect storm of macro headwinds that continue to swirl. The

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Speaker 1: things that are injecting inflation into the backdrop are not

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Speaker 1: the things that the FED policy tools and the tool

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Speaker 1: kids it can easily solve. P and C said Management's

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Speaker 1: Amanda Gotti says tomorrow's consumer price report will be big

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Speaker 1: for the markets. Well, everyone's watching the Fed, Karen, But

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Speaker 1: should they be watching yields instead. That's the view from

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Speaker 1: Jeffrey gun Black, the Double Line Capital CEO Investors, says

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Speaker 1: investors should pay attention to bonds, not the Fed for

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Speaker 1: the direction of interest rates, but the FED funds implied

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Speaker 1: rate by the yield curve. The treasure yield curve is

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Speaker 1: really become remarkable where we see that the bond market

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Speaker 1: pricing shows that the Fed is not going to make

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Speaker 1: it to five. They're gonna make it just under five

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Speaker 1: by mayor June. Double Lines Jeffrey Gunlike spoke there on

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Speaker 1: a webcast. He says bonds are more attractive than equities

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Speaker 1: right now. Well. In corporate news this morning, Nathan another

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Speaker 1: bank maybe cutting bonuses. Bloomberg News has learned that Credit

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Speaker 1: Suite is considering cutting its bonus pool for two by

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Speaker 1: about half. The possible move comes after Credit Sweeze was

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Speaker 1: forced to raise four billion dollars thanks to a string

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Speaker 1: of losses. The belt is likely more severe than at

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Speaker 1: places like JP Morgan and City Group, which you're also

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Speaker 1: set to cut bonuses. Also got news from Apple this morning, Karen.

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Speaker 1: The company is making moves to take over production of

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Speaker 1: even more key components. We get the story from Bloomberg's

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Speaker 1: Jeff Bellinger. Apple's years long effort to design its own

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Speaker 1: displays as nearing completion, and the company could start using

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Speaker 1: homegrown screens as soon as next year. Sources tell Bloomberg.

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Speaker 1: The first devices to get Apples micro LED screens will

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Speaker 1: be the top of the line Apple watches. The screens

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Speaker 1: will be an upgrade to the organic LED displays that

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Speaker 1: Apple currently buys from Samsung and l G. With screen

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Speaker 1: production in house, Apple will be able to better customize

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Speaker 1: its devices. Jeff Bollinger, Bloomberg Daybreak. All right, Jeff, thank

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Speaker 1: you Weill. Disney is rolling out the first changes at

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Speaker 1: its theme park since Bob Iger returned to CEO in November,

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Speaker 1: and we get that story from Bloomberg's Doug christ. Iger

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Speaker 1: is undoing some of the work of his predecessor, Bob Chapek,

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Speaker 1: who raised ticket prices and enter douce new reservation systems

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Speaker 1: that angered many long time visitors. Soon, customers at Disneyland

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Speaker 1: in California will be able to access photos taken by

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Speaker 1: professionals at the park for free, rather than paying for

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Speaker 1: a photo pass. The company is also offering more Disneyland

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Speaker 1: tickets at the lowest rate a hundred four dollars a day.

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Speaker 1: At Disney World in Florida, guest with annual passes will

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Speaker 1: now be able to enter the parks after two pm

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Speaker 1: without first obtaining reservations. In New York, I'm Doug Prisoner,

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Speaker 1: Bloomberg Daybreak, thanks uh SMP futures right now at nine

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Speaker 1: point staff futures up, seventy one nast Act futures up,

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Speaker 1: twenty seven local headlines in the check of sports. Next,

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Speaker 1: This is Bloomberg and it is currently thirty six degrees

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Speaker 1: in Central Park, and it's gonna be cloudy today, highs

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Speaker 1: in the low forties, and it's not gonna get much

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Speaker 1: cooler than that tonight. It's time now for a look

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Speaker 1: at some of the other stories making news in New

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Speaker 1: York and around the world. With Bloomberg's Michael bar Good morning, Michael,

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Speaker 1: Good morning, Nathan. Governor Kathy Hokel is proposing to make

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Speaker 1: New York the first day in the US to banned

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Speaker 1: natural gas heating and appliances and new buildings as a

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Speaker 1: way to find climate change. Holco called during her State

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Speaker 1: of the State address yesterday to ban the use of

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Speaker 1: fossil fuels by the end of the decade. I'm proposing

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Speaker 1: a plan to end the sale of new fossil powered

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Speaker 1: heating equipment by by calling for a construction of all

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Speaker 1: new construction zero emission, starting for small buildings for large buildings.

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Speaker 1: Holcol also talked about mental health and affordable housing. New

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Speaker 1: Jersey Governor Phil Murphy proposed offering incentives to employers for

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Speaker 1: establishing work from home in hybrid staffing policies, and a

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Speaker 1: bid to end the double taxation for residents who commute

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Speaker 1: to New York City. Murphy made the proposal yesterday during

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Speaker 1: his annual policy address in Trent. Before our administration took office,

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Speaker 1: our economic focus could be summed up as find a

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Speaker 1: big company, any company, throw a big enough tax break

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Speaker 1: at them to get them either to move to or

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Speaker 1: to stay in New Jersey. That way of doing things

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Speaker 1: came with limited successes. Governor Murphy also says he wants

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Speaker 1: to expand the number of liquor licenses in the state

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Speaker 1: to make the laws fair, and providing shore towns with

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Speaker 1: funding to help upgrade their boardwalks. It's day three of

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Speaker 1: a nurse's strike in New York City. Nurses and Mount

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Speaker 1: Sinai and Montefiora say they are on the picket lines

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Speaker 1: because of understaffing issues. Do not save the days are

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Speaker 1: incredibly overwhelming and stressful. At montefio Are both sides are

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Speaker 1: talking and said that they are close. Former Trump Organization

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Speaker 1: Chief financial officer Alan Weisselberg spent his first night in

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Speaker 1: Rikers Island as he begins his sentence for pleading guilty

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Speaker 1: last year to tax fraud. Weislberg was sentenced to five

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Speaker 1: months in jail as part of a prearranged plea agreement

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Speaker 1: with the Manhattan District that in his office. Global News

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Speaker 1: twenty four hours a day on airand on Bloomberg Quick Take,

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Speaker 1: powered by more than twenty seven hundred journalist and analyists

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Speaker 1: more than a hundred twenty countries. Michael Barr and this

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Speaker 1: is Bloomberg, Nathan. Thanks Michael, and now it's time for

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Speaker 1: the Bloomberg Sports Update, brought to you by tri State

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Speaker 1: out Here. Good morning, John stash Hour, morning Nathan. Safe

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Speaker 1: to say no one's ever had a more bizarre off

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Speaker 1: season than carlos Karea. He was a free agent a

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Speaker 1: year ago, signed a late deal with Minnesota, opted out

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Speaker 1: cut a deal with San Francisco, where they scheduled his

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Speaker 1: introductory press conference and then canceled it hours before it

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Speaker 1: was to take place amid concerns about an ankle injury.

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Speaker 1: So Korea pivoted and agreed to a deal with the Mets,

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Speaker 1: who then had similar concerns about that ankle. Let's try

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Speaker 1: to keep corea but with changes to the original agreement,

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Speaker 1: Karea balked at that he is instead going back to Minnesota.

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Speaker 1: Six year deal for two hundred million could turn out

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Speaker 1: to be longer and more lucrative, but the deals with

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Speaker 1: the Giants and Mets were for three hundred and fifty

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Speaker 1: and three hundred fifteen a million. At the Garden, Rangers

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Speaker 1: trailed Minnesota to nothing, then three to a Philip Eatle

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Speaker 1: goals six and half minutes left tied the game. Rangers

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Speaker 1: won four three and a shootout. They are twelve two

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Speaker 1: and two over their last sixteen games, with the Ubs,

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Speaker 1: Arena Islanders loss and a shootout the Dallas two to one.

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Speaker 1: Devil's at Carolina trailed three to one rally to win

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Speaker 1: five three. Hurricanes fourth straight loss, all coming after in

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Speaker 1: eleven game winning streak. NICK host Indiana Tonight Miami last

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Speaker 1: night set an NBA record and a one point win.

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Speaker 1: That Heat took forty free throws made all forty. Jimmy

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Speaker 1: Butler was twenty three for twenty three Big East much

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Speaker 1: needed win for st. John snapped to five game losing

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Speaker 1: streak seventy seven sixty one over Butler. Joels Oriano twenty points,

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Speaker 1: ten rebound Seaton Hall one at Georgetown sixty six fifty one.

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Speaker 1: That's twenty seven consecutive conference losses for one time Big

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Speaker 1: East power Georgetown. Also at Rose Hill, Fordham blown out

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Speaker 1: by Dayton eighty two fifty year John Stashwar Boomberg Sports

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Speaker 1: Nathan all Right, John, thank you. The Bloomberg Sports Report

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Speaker 1: was brought to you by Audie. Don't let someone else

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Speaker 1: for more information. Just ahead, we'll take a look at

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Speaker 1: the investigations planned on Capitol Hill with Republicans in the

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Speaker 1: majority of the House. First, SMP futures are higher by

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Speaker 1: eleven points. Staff futures up eighty two, Nastack futures up

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Speaker 1: thirty two points ten. Your treasury is up fourteen thirty seconds,

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Speaker 1: you know, three point five six percent. Nimex s crudes

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Speaker 1: up three tents and one percent at seventy two A

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Speaker 1: barrel in comics gold trading right now at announced. This

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Speaker 1: is Bloomberg Live from coast to coast, from New York

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Speaker 1: to San Francisco, Boston to Washington, d C. Nationwide on

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Speaker 1: sirius xamp, the Bloomberg Business app, and Bloomberg dot Com.

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Speaker 1: This is Bloomberg Daybreak. Good morning, I'm Nathan Hagar. Let's

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Speaker 1: turn to the nation's capitol now, where the new Republican

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Speaker 1: majority in the House of Representatives is preparing to embark

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Speaker 1: on a wide range of investigations into President Biden, his family,

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Speaker 1: and his policies. Joining us now is Greg Valier, chief

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Speaker 1: US policy strategist at a GF investment. So how do

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Speaker 1: you strategize policy? Greg? Now that the House Republicans have

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Speaker 1: indicated that they're going to spend a lot of their

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Speaker 1: time over the next two years investigating, well, there's so

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Speaker 1: much going on, so many very bitter partisan hearings. I

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Speaker 1: think personally, I will focus on what they can get done,

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Speaker 1: and they actually did something. Yesterday, Kevin McCarthy got a

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Speaker 1: bill passed with overwhelming support from Democrats to create a

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Speaker 1: committee to investigate China, China's theft of technology China's trade policies.

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Speaker 1: That was a surprise to get an overwhelming majority in

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Speaker 1: McCarthy's first real vote. Hell, I suppose it's not too

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Speaker 1: much of a surprise given the bipart as an animous

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Speaker 1: there seems to be now when it comes to China.

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Speaker 1: Are you looking at any other investigations that could bear

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Speaker 1: fruit on Capitol Hill? Well, it will certainly get headlines.

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Speaker 1: And the report in the last day or so that

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Speaker 1: the Biden of people had documents that were taught secret

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Speaker 1: doesn't help. It just raises the temperature even more. I

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Speaker 1: think the hearings that will be the most intriguing will

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Speaker 1: be the origin of COVID. I think that will be

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Speaker 1: a big one, obviously, Hunter Biden, and I think the

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Speaker 1: withdrawal by the US from Afghanistan. But there's many, many more. Uh.

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Speaker 1: This this will be a year of investigations. Now we

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Speaker 1: did here for the first time from Mexico City from

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Speaker 1: President Biden on the discovery of those classified documents in

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Speaker 1: his old office. I wonder what you make of his

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Speaker 1: reaction to that, and whether this is going to be

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Speaker 1: more than just a political headache for the president. Yeah.

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Speaker 1: I could give you a long answer about how the

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Speaker 1: what Biden did is not comparable to what Trump did.

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Speaker 1: That's what Biden's people are saying. However, this does muddies

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Speaker 1: the waters. I think for a lot of people who

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Speaker 1: aren't obsessed with this like we are, it will be

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Speaker 1: a sign that everybody doesn't. So I think this will

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Speaker 1: hurt Biden, even though perhaps his offenses were not as

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Speaker 1: grievous as Trump's. Now given that idea that any voters

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Speaker 1: could think that everybody does it. Does this have any

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Speaker 1: impact on the ongoing investigation intomorrow lago into the boxes

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Speaker 1: of documents that were founded former President Trump's home. Probably not.

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Speaker 1: I think that will continue on its current path. The

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Speaker 1: really intriguing story right now is in Georgia. Uh the

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Speaker 1: attorney general and Georgia has finished her investigation. There's going

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Speaker 1: to be a public press conference on the twenty four

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Speaker 1: or five of January. There's widespread belief that she will

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Speaker 1: indict Biden. I also wonder what you indict Trump? Oh? Sorry,

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Speaker 1: I also wonder what you think as well of this

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Speaker 1: subcommittee into the weaponization of the federal government that's gotten

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Speaker 1: a lot of attention on Capitol Hill and even outside

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Speaker 1: the Beltway to some extent, Is that going to be

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Speaker 1: more than just political? Probably bitterly political with Jim Jordan,

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Speaker 1: who is quite the pitbull on these issues. But you know, again,

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Speaker 1: I can't see how this is going to be a

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Speaker 1: big issue for the markets. I mean, that's my focus,

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Speaker 1: and even though there will be revelations and bitterness, I

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Speaker 1: think for the markets there are bigger stories like the

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Speaker 1: Federal Reserve, not just the Federal Reserve, but also the

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Speaker 1: debt ceiling and dealing with the full faith and credit

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Speaker 1: of the US. Given the focus on investigations, does that

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Speaker 1: have any impact on must pass legislation like spending bills,

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Speaker 1: like confronting the debt ceiling, Well, it doesn't help. And

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Speaker 1: I do think that we are on a collision course.

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Speaker 1: There are options that could maybe avoid a default threat.

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Speaker 1: But I wrote yesterday and I still feel that the

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Speaker 1: chances of a federal default on our debt is maybe

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Speaker 1: sixty forty will get a deal. But if you say

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Speaker 1: there's a chance of default, that's something the markets have

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Speaker 1: to follow. Yeah, certainly not the kind of odds you

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Speaker 1: want to hear in our last thirty seconds or so. Here, Greg,

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Speaker 1: I'd love to get your takeaways from the North American

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Speaker 1: Leader summit. Did you see any actual policy advancements there? No,

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Speaker 1: it was it was mostly platitudes. Uh. You know, Biden's

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Speaker 1: going to go to Canada in March. There's a few

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Speaker 1: things that they agreed on, but the really big stuff

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Speaker 1: energy trade disputes, Brazil, Haiti, and especially the wall with Mexico,

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Speaker 1: we're not addressed. So this will just drag on for

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Speaker 1: the rest of the year without any real breakthrough and

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Speaker 1: just quickly. Do you see any pressure on the president

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Speaker 1: to put any further focus on issues on this continent. Yeah.

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Speaker 1: I think he feels bipartisanship can work. I think you'd

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Speaker 1: like to do that, but that's going to be really tough. First,

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Speaker 1: we got to see if he's running for re election.

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Speaker 1: I think he is, but it's not sir. This is

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