Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. Good morning. I'm Amy
Speaker 1: Morris and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today.
Speaker 2: Karen, We begin in Washington with a major story out
Speaker 2: of the US Treasury. The Treasury Department says it was
Speaker 2: hacked earlier this month by Chinese based cyber attackers. In
Speaker 2: a letter to Congress, Treasury says the major cybersecurity incident
Speaker 2: led to unauthorized accessing of workstations and unclassified documents. Bloomberg's
Speaker 2: John Harney says the news is likely to further complicate
Speaker 2: relations between Washington and Beijing.
Speaker 3: US China relationship whi's cover a vast bass scope for
Speaker 3: issues and agendas, etc. Has been improving somewhat, but this,
Speaker 3: as a trumpet administration is about to take office, suggests
Speaker 3: that much much remains to be resolved.
Speaker 2: Bloomberg editor John Harney says the hackers gained access via
Speaker 2: a third party software provider, Beyond Trust, which has contracts
Speaker 2: with the Defense and Justice Departments. In a statement, the
Speaker 2: Chinese Embassy in Washington called the claims smear attacks against
Speaker 2: China without any factual basis.
Speaker 1: Well Lamy over on Capitol Hill, the House votes Friday
Speaker 1: on the speaker of the next US Congress, but Mike
Speaker 1: Johnson's reelection bid remains uncertain. Yesterday, President elect Donald Trump
Speaker 1: through his support behind the Republican congressman, but with a
Speaker 1: thin GOP majority and Democrats expected to vote for Hakim
Speaker 1: Jeffreys along party lines, Johnson can only afford to lose
Speaker 1: one GOP vote, and yesterday, Arizona Representative Andy Biggs told
Speaker 1: Fox News he has not publicly or privately committed to
Speaker 1: voting for Johnson, and GOP representatives Andy Harris of Maryland
Speaker 1: and Thomas Massey at Kentucky also signaled they might not
Speaker 1: beck Johnson. Bloomberg's Joe matthew says a fight over the
Speaker 1: speakership will make it harder for a president elect Trump
Speaker 1: to govern on the mandate that got him re elected.
Speaker 4: When it comes to the legislature, this is an incredibly
Speaker 4: eight majority for Republicans in the House, and it could
Speaker 4: get tighter. Donald Trump has actually tapped three members to
Speaker 4: join his administration. If they all join, Mike Johnson has
Speaker 4: a majority of one, and good luck renegotiating the tax
Speaker 4: code right in an environment like that. We've got some
Speaker 4: big stuff coming including the debt ceiling, that they were
Speaker 4: unable to manage it.
Speaker 1: Bloomer's Joe Matthew shes the Republicans who have signed possible
Speaker 1: opposition to Mike Johnson, his House Speaker, are concerned about
Speaker 1: government spending.
Speaker 2: Elsewhere in Washington, President Biden marked Thursday, January ninth as
Speaker 2: a national day of mourning for former US President Jimmy Carter,
Speaker 2: who died at the age of one hundred. On Sunday,
Speaker 2: US doc markets will close in observance as part of
Speaker 2: a long standing American tradition. Bloomberg's Tyler Kendall has more
Speaker 2: on what we can expect on January ninth.
Speaker 5: We are expecting there to be a funeral procession first,
Speaker 5: though Jimmy Carter will lie in state in Atlanta and
Speaker 5: the Georgia State capital over the weekend. His body will
Speaker 5: then be transported to Washington on Monday, where he then
Speaker 5: will lie in state at the US Capitol. I've learned
Speaker 5: that only twelve other presidents have had that honor of
Speaker 5: lying in state at the US Capitol before his funeral
Speaker 5: possession to the National Cathedral.
Speaker 2: Bloomberg's Tyler Kendall says President Biden has also expected to
Speaker 2: deliver a eulogy for former President Carter on January ninth.
Speaker 1: Well in politics overseas, amy German leaders are expressing anger
Speaker 1: over Elon musks repeated public support to the country's far
Speaker 1: right party AfD. In a televised New Year's Eve address,
Speaker 1: German Chancellor Oloff Schultz said German citizens alone will decide
Speaker 1: the direction of the country, not owners of social media channels.
Speaker 1: Other major parties attacked Musk after he expressed support for
Speaker 1: the AfD party. With less than two months until the election,
Speaker 1: the conservative CDUCSU alliance has a comfortable lead in opinion polls,
Speaker 1: with the AfD in second place and Schultz's SPD party
Speaker 1: in third.
Speaker 2: Meanwhile, over in Asia, we are seeing positive signs from
Speaker 2: China's economy to end the yearsident that Shijinping says, the
Speaker 2: Chinese economy is expected to expand around five percent for
Speaker 2: twenty twenty four, signaling that Beijing is on track to
Speaker 2: meet its official targets now. This comes as new data
Speaker 2: shows China's services activities expanding at the fastest pace in
Speaker 2: nine months, while manufacturing grew for a third month in
Speaker 2: a row. China is expected to set a twenty twenty
Speaker 2: five growth target, similar to twenty twenty four.
Speaker 1: Well elsewhere in Asia, amy a South Korean court as
Speaker 1: issued an arrest warrant for President yunsuk u all over
Speaker 1: insurrection allegations related to his short lived martial law declaration.
Speaker 1: If executed, Yun would be the first sitting president in
Speaker 1: South Korea's history to be arrested. It's unclear if investigators
Speaker 1: will be able to take him into custody. Yun's team
Speaker 1: is called the warrant illegal and invalid and plans to
Speaker 1: seek an injunction from the Constitutional Court.
Speaker 2: Let's turn out to markets. On the final trading day
Speaker 2: of twenty twenty four, Global equities are on course for
Speaker 2: their first quarterly loss of the year. Meanwhile, in the US,
Speaker 2: the S and P and Nasdaq each declined more more
Speaker 2: than one percent yesterday, marking the third time the indexes
Speaker 2: dropped more than one percent over the past eight sessions. Still,
Speaker 2: the S and B has gained more than twenty percent
Speaker 2: on the year, driven by the rally in megacats tech stocks.
Speaker 2: Anna wrathbund Cio at SEBIZ says, with the FED expected
Speaker 2: to keep monetary policy tied in twenty twenty five to
Speaker 2: bring inflation down to two percent, traders could see more
Speaker 2: choppy sessions in the new year.
Speaker 6: Two percent.
Speaker 7: We need to revisit that and we need to really
Speaker 7: talk about whether or not that's a realistic goal without
Speaker 7: slowing down the economy. And we think that we're in
Speaker 7: a higher for longer inflation environment, and that is that
Speaker 7: all of those things just basically mean higher tenure yield,
Speaker 7: and that's one of the reasons why we think there's going.
Speaker 2: To be price volatility and our wrathbund Cio at Sea
Speaker 2: Biz says. Additional investor concerns in twenty twenty five range
Speaker 2: from President elect Donald Trump's protectionist policies, to the health
Speaker 2: of the European and Chinese economies.
Speaker 1: And finally, amy as we ring in the new year,
Speaker 1: estimates from the US Census Bureaus say the world population
Speaker 1: will be almost eight point one billion people on January first.
Speaker 1: We get more on that with the Bloomberg's Charlie Pellett.
Speaker 6: Those estimates say the global population increased by more than
Speaker 6: seventy one million people in twenty twenty four, representing a
Speaker 6: point nine percent increase, which was a slight slowdown from
Speaker 6: twenty twenty three, when the world population grew by seventy
Speaker 6: five million people. The US meanwhile expanded by two point
Speaker 6: six million people, and on New Year's Day, the population
Speaker 6: count will be three hundred and forty one million people.
Speaker 6: The nation is expected to have one berth every nine
Speaker 6: seconds and one death every nine point four seconds. In
Speaker 6: January of twenty twenty five, in New York, Charlie Pellett
Speaker 6: Bloomberg Radio, it.
Speaker 1: Is time now for look at some of the other
Speaker 1: stories making news in New York and around the world.
Speaker 1: And for that we're joined by Bloomberg's Michael Barr Michael, good.
Speaker 8: Morning, Good morning, Karen Sight. Securities plan for New Year's celebrations,
Speaker 8: but no specific threats. According to law enforcement, Times Square
Speaker 8: in New York City will be packed with partygoers to
Speaker 8: ring in twenty twenty five. Mayor Eric Adams vows that
Speaker 8: they're increased NYPD presence, including K nine teams, drones, boats,
Speaker 8: and helicopters will provide a safe environment for visitors and
Speaker 8: New Yorkers alike. Make sure each one of those who
Speaker 8: come here to visit and enjoyed the ball drop will
Speaker 8: be safe. In Atlanta, large crowds are expected for the
Speaker 8: Peach Drop returning this year after a hiatus in Las Vegas.
Speaker 8: Two hundred and fifty thousand expected on the strip for
Speaker 8: the countdown to twenty twenty five. In Philadelphia, Deputy Police
Speaker 8: Commissioner Mike Cram says the city is preparing for Tomorrow's
Speaker 8: Mummers Parade.
Speaker 9: We always take a very layered approach, right, and that's
Speaker 9: everything from law enforcement to the use of other parts
Speaker 9: of the city. As you go around, you'll see sanitation
Speaker 9: trucks that doubles walking vehicles as well to restrict access
Speaker 9: onto the parade routes, things that nature.
Speaker 8: It's the oldest continuous Folk Day parade and a New
Speaker 8: Year's tradition since nineteen oh one. New York City's controversial
Speaker 8: pricing plan for drivers coming into parts of Manhattan is
Speaker 8: set to take effect Sunday, but a federal judge said
Speaker 8: hold on. They want more information about the effects of
Speaker 8: congestion pricing on communities in New Jersey. Lisaid Daglian is
Speaker 8: an advocate for congestion pricing in New York who says
Speaker 8: the MTA plan can still move forward.
Speaker 2: It would be different responses that will have to happen
Speaker 2: over sometime.
Speaker 10: It will have started.
Speaker 8: But New Jersey lawmakers disagree. New Jersey Congressman Josh Gotdheimer.
Speaker 11: And the way New Jersey's lawyers are responding is when
Speaker 11: you remand back for answers and further study, New York
Speaker 11: can't go ahead.
Speaker 8: The judge set a deadline of January seventeenth for New
Speaker 8: York to respond. President elect Donald Trump lost a bid
Speaker 8: to overturn a five million dollar judgment against him for
Speaker 8: sexual abuse and defamation. A federal appeals scored uphill the
Speaker 8: damages awarded to e Gene Carrell. The columnists hailed the
Speaker 8: decision in an online post, writing twenty twenty four ends
Speaker 8: with a win. Carol accused Trump of raping her in
Speaker 8: a department store dressing room about thirty years ago. Global
Speaker 8: News twenty four hours a day and whenever you want
Speaker 8: it with the Bloomberg News. Now, I'm Michael Barn. This
Speaker 8: is Bloomberg.
Speaker 3: Karen.
Speaker 1: All right, Michael Barn, thank you time now for the
Speaker 1: Bloomberg Sports Update, brought to you by tries Dade Audie.
Speaker 1: We bring in Dan Schwartzman.
Speaker 12: Dan, good morning, Good morning, Karen. The line's improving to
Speaker 12: fourteen and two as a big road win in San
Speaker 12: Francisco GoF here's a.
Speaker 11: Little lateral to Williams saying he's down the sunline and
Speaker 11: co on for a touchdown. Almond Ross Saint Brown made
Speaker 11: the catch. He's done this before this year, Almen Ross
Speaker 11: Saint Brown, and this time the lateral for the touchdown.
Speaker 12: That's Chrissy vspn Lines beating the forty nine Ers forty
Speaker 12: to thirty four in match of last year's NFC Championship
Speaker 12: game won by the Niners as shared goff throws for
Speaker 12: three hundred and three yards and three touchdowns. The win
Speaker 12: by the Lions setting up a week eighteen Sunday night
Speaker 12: showdown versus the fourteen to two Vikings for both the
Speaker 12: NFC North title as well as the top seat in
Speaker 12: the NFC and a first round by heading into the playoffs.
Speaker 12: The loser will become the NFL's first fourteen win wild
Speaker 12: card team Nicks winner eighth in a row. They knock
Speaker 12: off the Wizards one twenty six to one oh six,
Speaker 12: Karl Anthony Towns leading the next for thirty points and
Speaker 12: thirteen rebounds, else Arad Nikola Jokich putting up a ridiculous
Speaker 12: thirty six points with twenty two rebounds and eleven assists
Speaker 12: and a Nuggets one thirty two to one to twenty
Speaker 12: one win over the Jazz, while the Cavaliers improved our
Speaker 12: league best twenty eight and four with a one to
Speaker 12: thirteen to ninety five win over the Warriors. College football
Speaker 12: playoffs resuming tonight in Glendale, Arizona, with the first to
Speaker 12: four quarter final matchups as the third seed Boise State
Speaker 12: battle six seed a Penn State at the Verbo Fiesta Bowl.
Speaker 12: Kickoff is scheduled for seven thirty pm Eastern time. Light
Speaker 12: schedule on the NHL Rangers, though lose their fifteenth game
Speaker 12: in the last twenty they fall to the Florida Panthers
Speaker 12: five to three. They remain in last place in the
Speaker 12: Metropolitan Division. That's your Bloomberg Sports update. I'm Dan Schwartzman,
Speaker 12: Karen and Amy.
Speaker 8: Coast to Coast on Bloomberg Radio nationwide on SYRIUSXM.
Speaker 6: And around the world on Bloomberg dot Com and the
Speaker 6: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 2: And the Treasury Department says Chinese hackers have remotely accessed
Speaker 2: several Treasury Department workstations and unclassified documents. After it was
Speaker 2: able to compromise a third party software service provider. We're
Speaker 2: joined now by Bloomberg Radio and TV Markets correspondent Creedy
Speaker 2: Gupta to sort of fill us in on exactly what's
Speaker 2: going on here. Creedy, we're getting a little more information
Speaker 2: now about the cyber incident. So Chinese hackers have accessed
Speaker 2: Treasury Department workstations, there was a third party software provider
Speaker 2: that was sort of their doorway to this. Tell us
Speaker 2: what's going on here.
Speaker 10: Good morning, Amy. So Beyond Trust is that third party
Speaker 10: software provider basically sells access software cybersecurity products to the
Speaker 10: likes of the US Treasury and other federal government agencies
Speaker 10: as well. It's a contract that's worth more than four
Speaker 10: million dollars. That's according to data compiled by Bloomberg. But Amy,
Speaker 10: I think what's scary here is that this is a
Speaker 10: kind of notification that Beyond Trust gave to the US
Speaker 10: Treasury Department that there was some sort of hacking tied
Speaker 10: to China, as as you had just said, but that
Speaker 10: they also Beyond Trust also does business with other departments
Speaker 10: like the Department of Defense, Department of Veterans Affairs, the
Speaker 10: Department of Justice, just to name a couple of other agencies.
Speaker 10: So it's uncleared the extent to which this has been
Speaker 10: affected or the amount of customers that were really involved.
Speaker 10: But so far, all we know is that Beyond Trust
Speaker 10: had notified the Treasury that a certain amount of kind
Speaker 10: of data and contact information, et cetera from an undisclosed
Speaker 10: number of Americans was accessed by this hacker that they
Speaker 10: have now traced back to China.
Speaker 2: Now, this is coming right after US officials dealing with
Speaker 2: the fallout of another cyber espionage campaign access in those
Speaker 2: private texts and phone conversations of an unknown number of Americans.
Speaker 2: Are we going to see more of this? What's going
Speaker 2: on here?
Speaker 10: I mean, we don't know if we're going to see
Speaker 10: more of this. I mean, there seems to be a
Speaker 10: pattern developing, as you just laid out, But that's exactly
Speaker 10: the pattern that the Chinese government is trying to get
Speaker 10: ahead of, because we still don't know if this was
Speaker 10: associated with the Chinese government. At the end of the day,
Speaker 10: the embassy of the Chinese embassy over in Washington already
Speaker 10: kind of being very outspoken about this, saying, quote, spare
Speaker 10: attacks against China without any factual basis. The US needs
Speaker 10: to stop using cybersecurity to smear and slander China and
Speaker 10: stop spreading all kinds of disinformation about the so called
Speaker 10: Chinese hacking throat. Those are the words of the Chinese
Speaker 10: embassy in Washington, which really speaks to this trend. Amy,
Speaker 10: as you said that this has been coming out of
Speaker 10: out of at least been associated with China lately in
Speaker 10: the campaign you were talking about, and now with this
Speaker 10: leak as well. But again it's unclear who's actually behind it.
Speaker 10: There's just clear that the US government is exposed in
Speaker 10: a way that they may never thought they would be
Speaker 10: before and taking.
Speaker 2: A broader look at this, as you said very rightly,
Speaker 2: So we don't really know if this is specifically associated
Speaker 2: with the Chinese government, but it's sure not going to
Speaker 2: help relations between Washington and Beijing.
Speaker 10: They absolutely aren't at a time when we know not
Speaker 10: only Donald Trump, but even under the Biden administration have
Speaker 10: been looking at ways at the American economy in the
Speaker 10: way the American stock market, for example, in other parts
Speaker 10: of the American infrastructure are intertwined but also under threat
Speaker 10: with China. And remember this comes after not only a
Speaker 10: trade war looming between the United States and China and
Speaker 10: perhaps even more terrift than a new administration. But the
Speaker 10: idea that we're talking about things like how much debt
Speaker 10: China buys from the United States. We're talking about how
Speaker 10: Chinese companies can or cannot be listed on the New
Speaker 10: York Stock Exchange, on the NASAC, et cetera. Not to
Speaker 10: mention some of the kind of spyware and cybersecurity threats
Speaker 10: as we were just talking about, and other alliances that
Speaker 10: they're making internationally. Remember the partnership between China and Russia,
Speaker 10: between China and India, between China and the EU are
Speaker 10: all under the magnifying glass right now in terms of
Speaker 10: how that all affects the United States. And I think
Speaker 10: Donald Trump is going to kind of put that under
Speaker 10: an even hotter spotlight.
Speaker 2: Absolutely, And you mentioned that other agencies that use this
Speaker 2: third party vendor maybe at risk. It isn't clear yet,
Speaker 2: but that this third party vendor also is associated with
Speaker 2: other federal agencies. Fair enough, could this put a chilling
Speaker 2: effect on using these third party type contractors for something like.
Speaker 10: This, It absolutely could. And remember we are not only
Speaker 10: seeing this in the government space. We saw this in
Speaker 10: the corporate space as well. When the Microsoft outage with
Speaker 10: several kind of data and cybersecurity providers with CrowdStrike led
Speaker 10: to a global outage, a grounding of flights that the
Speaker 10: one in Stock exchange was affected. So this is something
Speaker 10: that's getting a little bit scarier. And Amy are sure
Speaker 10: you'll remember on the onset of the war Ukraine, for example,
Speaker 10: cybersecurity stocks did really, really well because of this anticipation
Speaker 10: that that cybersecurity product would be needed.
Speaker 2: You talk about AI.
Speaker 10: This is just another element where cybersecurity has to be
Speaker 10: kind of intertwined with that story. But in terms of
Speaker 10: using the software, you also have to talk about what
Speaker 10: actions the government is going to be using. And Newburger,
Speaker 10: who's the Deputy National Security Advisor for cyber and Emerging Technologies,
Speaker 10: said that the administration has actions planned hole Beijing accountable
Speaker 10: after moving ahead with a band on Chinese telicom in
Speaker 10: the United States, so that maybe something they expand upon.
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