WEBVTT - January 11, 2023

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<v Speaker 1>Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg

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<v Speaker 1>day Break for Wednesday, January eleventh. Coming up this hour

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<v Speaker 1>No led up to the massive rains that have claimed

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<v Speaker 1>seventeen lives in California. President Biden speaks out about classified

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<v Speaker 1>documents in his old office as Republicans craped multiple investigations,

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<v Speaker 1>double lines. Jeffrey Gunla says listened to the bond market,

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<v Speaker 1>not the Fed. On races, and another big bank is

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<v Speaker 1>set to slash bonuses. New York Governor Holkel wants to

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<v Speaker 1>ban natural gas and buildings. Plus New Jersey Governor Murphy

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<v Speaker 1>calls to end double taxation of commuters to New York.

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<v Speaker 1>On Michael bar I'm John stas shower and sports, Carlos

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<v Speaker 1>Correa will be a twin, not a mat. The Rangers

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<v Speaker 1>and Devils won, the Islanders lost. That's all s Trady

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<v Speaker 1>head on Bloomberg day Break on Bloomberg eleven Free on

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<v Speaker 1>New York, Bloomberg one, Washington, d C, Bloomberg one oh

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<v Speaker 1>six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x

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<v Speaker 1>M one nineteen and around the world on Bloomberg Radio

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

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<v Speaker 1>Nathan Hagar and I'm Karin Moscow. If here are the

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<v Speaker 1>stories we're following today. We continue tracking the dangerous weather

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<v Speaker 1>on the West Coast. More storms are headed to California

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<v Speaker 1>as the state continues reeling from about with severe weather.

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<v Speaker 1>Ed Baxter has the latest from our Bloomberg nine sixty

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<v Speaker 1>newsroom in San Francisco. Just as some residents are allowed

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<v Speaker 1>back into their homes, they are being told they're going

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<v Speaker 1>to have to evacuate again. It is a story that's

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<v Speaker 1>being played out from the very north to the south

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<v Speaker 1>with a very threat of danger, pointed out by the

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<v Speaker 1>fact that at least fifteen people have lost their lives.

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<v Speaker 1>Governor Gavin Newsom says three more storms at least are

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<v Speaker 1>headed our way. We're not out of the woods. We

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<v Speaker 1>expect these storms to continue at least through the of

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<v Speaker 1>this month. The largest fear is in the hills and

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<v Speaker 1>along major rivers, But yesterday afternoon even San Francisco declared

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<v Speaker 1>a rare flash flood warning. In San Francis leus Go.

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

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<v Speaker 1>turning to politics. Now we're hearing from President Biden for

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<v Speaker 1>the first time since news broke that classified documents were

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<v Speaker 1>discovered in an office used before he was elected. I've

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<v Speaker 1>turned over the boxes, They've turned over the boxes to

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<v Speaker 1>the Archives, and we're co operating fully, co operating fully

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<v Speaker 1>with the review and which I hope will be finished

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<v Speaker 1>soon and it will be more detailed at that time.

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<v Speaker 1>And President Biden says his lawyers did the right thing

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<v Speaker 1>by calling the National Archives. Congressional Republicans are promising to

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<v Speaker 1>investigate well. President Biden spoke there caring at the end

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<v Speaker 1>of the North American leaders summit in Mexico City. That

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<v Speaker 1>event saw the President defending policies of the border and

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<v Speaker 1>downplaying differences with Canada and Mexico. Overtrade Lester Monson is

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<v Speaker 1>a principle at the government relations firm b GR Group.

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<v Speaker 1>He says, the US is stuck in an anti free

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<v Speaker 1>trade mentality, and if we can use this as a

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<v Speaker 1>way to kind of open up a little bit at

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<v Speaker 1>least two other countries that are nearby, countries that are

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

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<v Speaker 1>see you can kind of break out of a fortress

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<v Speaker 1>America thinking. Lester months in with b GR Group was

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<v Speaker 1>a guest on Bloomberg Sound On with Joe Matthew. Catch

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<v Speaker 1>the show weekdays at five pm Eastern on Bloomberg Radio

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<v Speaker 1>and listen on demand wherever you get your podcasts. Well,

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<v Speaker 1>turning to the markets now, Nathan stocks are coming off

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<v Speaker 1>gains which saw the S and P five hundred close

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<v Speaker 1>above the mark. Technical analysts cite that as a resistance

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<v Speaker 1>level that could help define a more solid trend. Amanda

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<v Speaker 1>got A Chief investment officer at p NCS Management, says

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<v Speaker 1>markets continue to be driven by the FED, with the

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<v Speaker 1>labor market just continuing to be so so strong, thinking

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<v Speaker 1>it's really a tough dynamic for the FED. All of

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<v Speaker 1>this is making the Fed's job much harder. And I

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<v Speaker 1>think it comes back to a concept we've been talking

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<v Speaker 1>about for the better part of two and that's the

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<v Speaker 1>perfect storm of macro headwinds that continue to swirl. The

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<v Speaker 1>things that are injecting inflation into the backdrop are not

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<v Speaker 1>the things that the FED policy tools and the tool

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<v Speaker 1>kids it can easily solve. P and C said Management's

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<v Speaker 1>Amanda Gotti says tomorrow's consumer price report will be big

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<v Speaker 1>for the markets. Well, everyone's watching the Fed, Karen, But

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<v Speaker 1>should they be watching yields instead. That's the view from

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<v Speaker 1>Jeffrey gun Black, the Double Line Capital CEO Investors, says

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<v Speaker 1>investors should pay attention to bonds, not the Fed for

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<v Speaker 1>the direction of interest rates, but the FED funds implied

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<v Speaker 1>rate by the yield curve. The treasure yield curve is

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<v Speaker 1>really become remarkable where we see that the bond market

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<v Speaker 1>pricing shows that the Fed is not going to make

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<v Speaker 1>it to five. They're gonna make it just under five

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<v Speaker 1>by mayor June. Double Lines Jeffrey Gunlike spoke there on

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<v Speaker 1>a webcast. He says bonds are more attractive than equities

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<v Speaker 1>right now. Well. In corporate news this morning, Nathan another

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<v Speaker 1>bank maybe cutting bonuses. Bloomberg News has learned that Credit

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<v Speaker 1>Suite is considering cutting its bonus pool for two by

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<v Speaker 1>about half. The possible move comes after Credit Sweeze was

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<v Speaker 1>forced to raise four billion dollars thanks to a string

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<v Speaker 1>of losses. The belt is likely more severe than at

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<v Speaker 1>places like JP Morgan and City Group, which you're also

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

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<v Speaker 1>The company is making moves to take over production of

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<v Speaker 1>even more key components. We get the story from Bloomberg's

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<v Speaker 1>Jeff Bellinger. Apple's years long effort to design its own

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<v Speaker 1>displays as nearing completion, and the company could start using

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<v Speaker 1>homegrown screens as soon as next year. Sources tell Bloomberg.

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<v Speaker 1>The first devices to get Apples micro LED screens will

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<v Speaker 1>be the top of the line Apple watches. The screens

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<v Speaker 1>will be an upgrade to the organic LED displays that

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<v Speaker 1>Apple currently buys from Samsung and l G. With screen

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<v Speaker 1>production in house, Apple will be able to better customize

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<v Speaker 1>its devices. Jeff Bollinger, Bloomberg Daybreak. All right, Jeff, thank

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<v Speaker 1>you Weill. Disney is rolling out the first changes at

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<v Speaker 1>its theme park since Bob Iger returned to CEO in November,

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<v Speaker 1>and we get that story from Bloomberg's Doug christ. Iger

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<v Speaker 1>is undoing some of the work of his predecessor, Bob Chapek,

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<v Speaker 1>who raised ticket prices and enter douce new reservation systems

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<v Speaker 1>that angered many long time visitors. Soon, customers at Disneyland

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<v Speaker 1>in California will be able to access photos taken by

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<v Speaker 1>professionals at the park for free, rather than paying for

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<v Speaker 1>a photo pass. The company is also offering more Disneyland

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<v Speaker 1>tickets at the lowest rate a hundred four dollars a day.

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<v Speaker 1>At Disney World in Florida, guest with annual passes will

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<v Speaker 1>now be able to enter the parks after two pm

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

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<v Speaker 1>Bloomberg Daybreak, thanks uh SMP futures right now at nine

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<v Speaker 1>point staff futures up, seventy one nast Act futures up,

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<v Speaker 1>twenty seven local headlines in the check of sports. Next,

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<v Speaker 1>This is Bloomberg and it is currently thirty six degrees

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<v Speaker 1>in Central Park, and it's gonna be cloudy today, highs

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<v Speaker 1>in the low forties, and it's not gonna get much

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<v Speaker 1>cooler than that tonight. It's time now for a look

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<v Speaker 1>at some of the other stories making news in New

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

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<v Speaker 1>Good morning, Nathan. Governor Kathy Hokel is proposing to make

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<v Speaker 1>New York the first day in the US to banned

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<v Speaker 1>natural gas heating and appliances and new buildings as a

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<v Speaker 1>way to find climate change. Holco called during her State

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<v Speaker 1>of the State address yesterday to ban the use of

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<v Speaker 1>fossil fuels by the end of the decade. I'm proposing

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<v Speaker 1>a plan to end the sale of new fossil powered

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<v Speaker 1>heating equipment by by calling for a construction of all

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<v Speaker 1>new construction zero emission, starting for small buildings for large buildings.

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<v Speaker 1>Holcol also talked about mental health and affordable housing. New

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<v Speaker 1>Jersey Governor Phil Murphy proposed offering incentives to employers for

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<v Speaker 1>establishing work from home in hybrid staffing policies, and a

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<v Speaker 1>bid to end the double taxation for residents who commute

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<v Speaker 1>to New York City. Murphy made the proposal yesterday during

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<v Speaker 1>his annual policy address in Trent. Before our administration took office,

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<v Speaker 1>our economic focus could be summed up as find a

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<v Speaker 1>big company, any company, throw a big enough tax break

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<v Speaker 1>at them to get them either to move to or

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<v Speaker 1>to stay in New Jersey. That way of doing things

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<v Speaker 1>came with limited successes. Governor Murphy also says he wants

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<v Speaker 1>to expand the number of liquor licenses in the state

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<v Speaker 1>to make the laws fair, and providing shore towns with

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<v Speaker 1>funding to help upgrade their boardwalks. It's day three of

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<v Speaker 1>a nurse's strike in New York City. Nurses and Mount

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<v Speaker 1>Sinai and Montefiora say they are on the picket lines

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<v Speaker 1>because of understaffing issues. Do not save the days are

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<v Speaker 1>incredibly overwhelming and stressful. At montefio Are both sides are

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<v Speaker 1>talking and said that they are close. Former Trump Organization

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<v Speaker 1>Chief financial officer Alan Weisselberg spent his first night in

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<v Speaker 1>Rikers Island as he begins his sentence for pleading guilty

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<v Speaker 1>last year to tax fraud. Weislberg was sentenced to five

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<v Speaker 1>months in jail as part of a prearranged plea agreement

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<v Speaker 1>with the Manhattan District that in his office. Global News

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<v Speaker 1>twenty four hours a day on airand on Bloomberg Quick Take,

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<v Speaker 1>powered by more than twenty seven hundred journalist and analyists

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<v Speaker 1>more than a hundred twenty countries. Michael Barr and this

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

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<v Speaker 1>the Bloomberg Sports Update, brought to you by tri State

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<v Speaker 1>out Here. Good morning, John stash Hour, morning Nathan. Safe

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<v Speaker 1>to say no one's ever had a more bizarre off

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<v Speaker 1>season than carlos Karea. He was a free agent a

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<v Speaker 1>year ago, signed a late deal with Minnesota, opted out

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<v Speaker 1>cut a deal with San Francisco, where they scheduled his

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<v Speaker 1>introductory press conference and then canceled it hours before it

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<v Speaker 1>was to take place amid concerns about an ankle injury.

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<v Speaker 1>So Korea pivoted and agreed to a deal with the Mets,

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<v Speaker 1>who then had similar concerns about that ankle. Let's try

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<v Speaker 1>to keep corea but with changes to the original agreement,

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<v Speaker 1>Karea balked at that he is instead going back to Minnesota.

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<v Speaker 1>Six year deal for two hundred million could turn out

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<v Speaker 1>to be longer and more lucrative, but the deals with

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<v Speaker 1>the Giants and Mets were for three hundred and fifty

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<v Speaker 1>and three hundred fifteen a million. At the Garden, Rangers

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<v Speaker 1>trailed Minnesota to nothing, then three to a Philip Eatle

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<v Speaker 1>goals six and half minutes left tied the game. Rangers

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<v Speaker 1>won four three and a shootout. They are twelve two

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<v Speaker 1>and two over their last sixteen games, with the Ubs,

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<v Speaker 1>Arena Islanders loss and a shootout the Dallas two to one.

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<v Speaker 1>Devil's at Carolina trailed three to one rally to win

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<v Speaker 1>five three. Hurricanes fourth straight loss, all coming after in

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<v Speaker 1>eleven game winning streak. NICK host Indiana Tonight Miami last

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<v Speaker 1>night set an NBA record and a one point win.

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<v Speaker 1>That Heat took forty free throws made all forty. Jimmy

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<v Speaker 1>Butler was twenty three for twenty three Big East much

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<v Speaker 1>needed win for st. John snapped to five game losing

0:10:39.679 --> 0:10:44.120
<v Speaker 1>streak seventy seven sixty one over Butler. Joels Oriano twenty points,

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<v Speaker 1>ten rebound Seaton Hall one at Georgetown sixty six fifty one.

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<v Speaker 1>That's twenty seven consecutive conference losses for one time Big

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<v Speaker 1>East power Georgetown. Also at Rose Hill, Fordham blown out

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<v Speaker 1>by Dayton eighty two fifty year John Stashwar Boomberg Sports

0:10:59.000 --> 0:11:01.520
<v Speaker 1>Nathan all Right, John, thank you. The Bloomberg Sports Report

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<v Speaker 1>was brought to you by Audie. Don't let someone else

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

0:11:14.640 --> 0:11:18.880
<v Speaker 1>the investigations planned on Capitol Hill with Republicans in the

0:11:18.920 --> 0:11:22.160
<v Speaker 1>majority of the House. First, SMP futures are higher by

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<v Speaker 1>eleven points. Staff futures up eighty two, Nastack futures up

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<v Speaker 1>thirty two points ten. Your treasury is up fourteen thirty seconds,

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<v Speaker 1>you know, three point five six percent. Nimex s crudes

0:11:31.120 --> 0:11:33.520
<v Speaker 1>up three tents and one percent at seventy two A

0:11:33.559 --> 0:11:37.360
<v Speaker 1>barrel in comics gold trading right now at announced. This

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<v Speaker 1>is Bloomberg Live from coast to coast, from New York

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<v Speaker 1>to San Francisco, Boston to Washington, d C. Nationwide on

0:11:48.640 --> 0:11:52.439
<v Speaker 1>sirius xamp, the Bloomberg Business app, and Bloomberg dot Com.

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

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<v Speaker 1>turn to the nation's capitol now, where the new Republican

0:11:59.320 --> 0:12:02.160
<v Speaker 1>majority in the House of Representatives is preparing to embark

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<v Speaker 1>on a wide range of investigations into President Biden, his family,

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<v Speaker 1>and his policies. Joining us now is Greg Valier, chief

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<v Speaker 1>US policy strategist at a GF investment. So how do

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<v Speaker 1>you strategize policy? Greg? Now that the House Republicans have

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<v Speaker 1>indicated that they're going to spend a lot of their

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<v Speaker 1>time over the next two years investigating, well, there's so

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<v Speaker 1>much going on, so many very bitter partisan hearings. I

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<v Speaker 1>think personally, I will focus on what they can get done,

0:12:30.240 --> 0:12:34.199
<v Speaker 1>and they actually did something. Yesterday, Kevin McCarthy got a

0:12:34.240 --> 0:12:38.840
<v Speaker 1>bill passed with overwhelming support from Democrats to create a

0:12:38.920 --> 0:12:44.720
<v Speaker 1>committee to investigate China, China's theft of technology China's trade policies.

0:12:45.120 --> 0:12:48.320
<v Speaker 1>That was a surprise to get an overwhelming majority in

0:12:48.400 --> 0:12:51.520
<v Speaker 1>McCarthy's first real vote. Hell, I suppose it's not too

0:12:51.640 --> 0:12:55.679
<v Speaker 1>much of a surprise given the bipart as an animous

0:12:55.720 --> 0:12:58.560
<v Speaker 1>there seems to be now when it comes to China.

0:12:58.679 --> 0:13:02.840
<v Speaker 1>Are you looking at any other investigations that could bear

0:13:03.040 --> 0:13:07.240
<v Speaker 1>fruit on Capitol Hill? Well, it will certainly get headlines.

0:13:07.360 --> 0:13:10.040
<v Speaker 1>And the report in the last day or so that

0:13:10.360 --> 0:13:14.120
<v Speaker 1>the Biden of people had documents that were taught secret

0:13:14.440 --> 0:13:18.520
<v Speaker 1>doesn't help. It just raises the temperature even more. I

0:13:18.559 --> 0:13:21.240
<v Speaker 1>think the hearings that will be the most intriguing will

0:13:21.320 --> 0:13:24.720
<v Speaker 1>be the origin of COVID. I think that will be

0:13:24.760 --> 0:13:28.680
<v Speaker 1>a big one, obviously, Hunter Biden, and I think the

0:13:28.880 --> 0:13:33.880
<v Speaker 1>withdrawal by the US from Afghanistan. But there's many, many more. Uh.

0:13:33.920 --> 0:13:37.400
<v Speaker 1>This this will be a year of investigations. Now we

0:13:37.440 --> 0:13:40.600
<v Speaker 1>did here for the first time from Mexico City from

0:13:40.640 --> 0:13:44.480
<v Speaker 1>President Biden on the discovery of those classified documents in

0:13:44.600 --> 0:13:47.080
<v Speaker 1>his old office. I wonder what you make of his

0:13:47.320 --> 0:13:49.840
<v Speaker 1>reaction to that, and whether this is going to be

0:13:50.000 --> 0:13:52.680
<v Speaker 1>more than just a political headache for the president. Yeah.

0:13:52.760 --> 0:13:55.360
<v Speaker 1>I could give you a long answer about how the

0:13:55.520 --> 0:13:58.520
<v Speaker 1>what Biden did is not comparable to what Trump did.

0:13:58.559 --> 0:14:02.760
<v Speaker 1>That's what Biden's people are saying. However, this does muddies

0:14:02.800 --> 0:14:04.920
<v Speaker 1>the waters. I think for a lot of people who

0:14:05.000 --> 0:14:08.360
<v Speaker 1>aren't obsessed with this like we are, it will be

0:14:08.400 --> 0:14:11.679
<v Speaker 1>a sign that everybody doesn't. So I think this will

0:14:11.840 --> 0:14:16.640
<v Speaker 1>hurt Biden, even though perhaps his offenses were not as

0:14:16.679 --> 0:14:22.800
<v Speaker 1>grievous as Trump's. Now given that idea that any voters

0:14:22.840 --> 0:14:25.440
<v Speaker 1>could think that everybody does it. Does this have any

0:14:25.480 --> 0:14:30.280
<v Speaker 1>impact on the ongoing investigation intomorrow lago into the boxes

0:14:30.320 --> 0:14:34.360
<v Speaker 1>of documents that were founded former President Trump's home. Probably not.

0:14:34.600 --> 0:14:38.360
<v Speaker 1>I think that will continue on its current path. The

0:14:38.560 --> 0:14:41.720
<v Speaker 1>really intriguing story right now is in Georgia. Uh the

0:14:41.800 --> 0:14:45.480
<v Speaker 1>attorney general and Georgia has finished her investigation. There's going

0:14:45.520 --> 0:14:49.040
<v Speaker 1>to be a public press conference on the twenty four

0:14:49.240 --> 0:14:52.680
<v Speaker 1>or five of January. There's widespread belief that she will

0:14:52.720 --> 0:14:57.400
<v Speaker 1>indict Biden. I also wonder what you indict Trump? Oh? Sorry,

0:14:57.440 --> 0:14:59.520
<v Speaker 1>I also wonder what you think as well of this

0:15:00.440 --> 0:15:04.320
<v Speaker 1>subcommittee into the weaponization of the federal government that's gotten

0:15:04.320 --> 0:15:06.840
<v Speaker 1>a lot of attention on Capitol Hill and even outside

0:15:06.880 --> 0:15:08.880
<v Speaker 1>the Beltway to some extent, Is that going to be

0:15:08.920 --> 0:15:13.280
<v Speaker 1>more than just political? Probably bitterly political with Jim Jordan,

0:15:13.360 --> 0:15:17.840
<v Speaker 1>who is quite the pitbull on these issues. But you know, again,

0:15:17.880 --> 0:15:19.960
<v Speaker 1>I can't see how this is going to be a

0:15:19.960 --> 0:15:23.200
<v Speaker 1>big issue for the markets. I mean, that's my focus,

0:15:23.360 --> 0:15:27.320
<v Speaker 1>and even though there will be revelations and bitterness, I

0:15:27.360 --> 0:15:29.960
<v Speaker 1>think for the markets there are bigger stories like the

0:15:30.000 --> 0:15:34.360
<v Speaker 1>Federal Reserve, not just the Federal Reserve, but also the

0:15:34.640 --> 0:15:38.640
<v Speaker 1>debt ceiling and dealing with the full faith and credit

0:15:38.680 --> 0:15:42.360
<v Speaker 1>of the US. Given the focus on investigations, does that

0:15:42.520 --> 0:15:47.000
<v Speaker 1>have any impact on must pass legislation like spending bills,

0:15:47.320 --> 0:15:50.920
<v Speaker 1>like confronting the debt ceiling, Well, it doesn't help. And

0:15:51.040 --> 0:15:53.440
<v Speaker 1>I do think that we are on a collision course.

0:15:53.760 --> 0:15:57.720
<v Speaker 1>There are options that could maybe avoid a default threat.

0:15:58.080 --> 0:16:01.280
<v Speaker 1>But I wrote yesterday and I still feel that the

0:16:01.400 --> 0:16:05.920
<v Speaker 1>chances of a federal default on our debt is maybe

0:16:07.280 --> 0:16:09.760
<v Speaker 1>sixty forty will get a deal. But if you say

0:16:09.800 --> 0:16:13.520
<v Speaker 1>there's a chance of default, that's something the markets have

0:16:13.560 --> 0:16:16.680
<v Speaker 1>to follow. Yeah, certainly not the kind of odds you

0:16:16.720 --> 0:16:19.720
<v Speaker 1>want to hear in our last thirty seconds or so. Here, Greg,

0:16:19.760 --> 0:16:22.560
<v Speaker 1>I'd love to get your takeaways from the North American

0:16:22.640 --> 0:16:27.960
<v Speaker 1>Leader summit. Did you see any actual policy advancements there? No,

0:16:29.160 --> 0:16:32.720
<v Speaker 1>it was it was mostly platitudes. Uh. You know, Biden's

0:16:32.720 --> 0:16:34.840
<v Speaker 1>going to go to Canada in March. There's a few

0:16:35.080 --> 0:16:37.600
<v Speaker 1>things that they agreed on, but the really big stuff

0:16:38.240 --> 0:16:44.840
<v Speaker 1>energy trade disputes, Brazil, Haiti, and especially the wall with Mexico,

0:16:45.360 --> 0:16:48.600
<v Speaker 1>we're not addressed. So this will just drag on for

0:16:48.640 --> 0:16:51.400
<v Speaker 1>the rest of the year without any real breakthrough and

0:16:51.520 --> 0:16:53.920
<v Speaker 1>just quickly. Do you see any pressure on the president

0:16:53.960 --> 0:16:58.320
<v Speaker 1>to put any further focus on issues on this continent. Yeah.

0:16:58.360 --> 0:17:01.160
<v Speaker 1>I think he feels bipartisanship can work. I think you'd

0:17:01.160 --> 0:17:04.080
<v Speaker 1>like to do that, but that's going to be really tough. First,

0:17:04.080 --> 0:17:05.760
<v Speaker 1>we got to see if he's running for re election.

0:17:05.880 --> 0:17:09.600
<v Speaker 1>I think he is, but it's not sir. This is

0:17:09.640 --> 0:17:13.119
<v Speaker 1>Bloomberg Daybreak Today, your morning brief on the stories making

0:17:13.160 --> 0:17:16.439
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