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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we begin with the latest on the situation in Venezuela,

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Speaker 3: following an extraordinary weekend of air strikes in and around

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Speaker 3: Caracas and the capture of President Nicolas Maduro. With questions

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Speaker 3: swirling about what comes next. President Trump says the US

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Speaker 3: needs total access to Venezuela.

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Speaker 4: We're going to run everything. We're going to run it,

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Speaker 4: fix it. We'll have elections at the right time. But

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Speaker 4: the main thing you have to fix it is a

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Speaker 4: broken country.

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Speaker 3: President Trump spoke aboard Air Force One on his way

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Speaker 3: back to Washington from mar A Lago, where he oversaw

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Speaker 3: the weekend strike. The President says the US will work

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Speaker 3: with acting Venezuelan President Delsea Rodriguez, though he says he

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Speaker 3: has not spoken to her. Rodriguez put out a statement

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Speaker 3: last night inviting the US to work with her on

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Speaker 3: a cooperation agenda. It's a contrast to her initial reaction

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Speaker 3: calling for Maduro's return.

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Speaker 5: As we hear from Bloomberg's Jill.

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Speaker 6: Deesis definitely a change in tone from her initial statements

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Speaker 6: which we're denouncing the actions of the US and calling

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Speaker 6: for Maduro's return. But I think the really important thing

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Speaker 6: to remember here is that, I mean, Trump seems them know,

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Speaker 6: certainly content with leaving her in charge, So you know,

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Speaker 6: it kind of points to that as being potentially a

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Speaker 6: factor there in her now talking about cooperation.

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Speaker 5: It's Bloomberg's Jill Deesis.

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Speaker 3: As for Maduro, he is due to appear in Manhattan

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Speaker 3: federal court today to face charges that could keep him

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Speaker 3: and his wife behind bars for the rest of his life.

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Speaker 3: A trial on narco terrorism charges is not expected until

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Speaker 3: next year. It's unclear if Maduro has hired a lawyer

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Speaker 3: for today's hearing well Nathan.

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Speaker 2: Secretary of State Marco Rubio is emerging as the Trump

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Speaker 2: administration's point man on Venezuela. He appeared on several of

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Speaker 2: the Sunday political shows to say, the US is running

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Speaker 2: where Venezuela goes from here.

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Speaker 7: There's a quarantine right now in which sanctioned oil shipments.

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Speaker 7: There's a boat and that boat is under US sanctions.

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Speaker 7: We go get a corridor or we will seize it

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Speaker 7: that remains in place, and that's a tremendous amount of

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Speaker 7: leverage that will continue to be in place until we

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Speaker 7: see changes not just further the national interest of the

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Speaker 7: United States, which is number one, but also that lead

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Speaker 7: to a better future for the people of Venezuela.

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Speaker 2: And that as Secretary Rubio on CBS has Faced the Nation,

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Speaker 2: Republican hawks are rallying around the administration following the weekend

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Speaker 2: of texts and Intelligence Chairman Tom Cotton was also on

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Speaker 2: Face the Nation.

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Speaker 8: This was an excellent operation only the United States military

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Speaker 8: could have pulled off, but they couldn't have pulled it

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Speaker 8: off with the support without the support of the professionals

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Speaker 8: and the intelligence.

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Speaker 2: Community Republican Senator Tom Cotton, but isolationists within the party

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Speaker 2: like Congressoman Marjorie Taylor Green are criticizing the strike.

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Speaker 9: This is the same Washington playbook that we are so

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Speaker 9: sick and tired of that doesn't serve the American people

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Speaker 9: but actually serves the big corporations, the banks, and the

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Speaker 9: oil executives.

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Speaker 2: Congressoman Marjorie Taylor Green appeared on NBA sees Meet the Press,

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Speaker 2: and you can hear Meet the Press and Face the

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Speaker 2: Nation every Sunday on Bloomberg Radio.

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Speaker 3: Well here in the US plan to revive Venezuela's oil

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Speaker 3: industry could take years and cost up to one hundred

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Speaker 3: billion dollars.

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Speaker 5: Bloomberg's John Tucker joins us at that part of the story.

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Speaker 10: John good Morning and Nathan Experts say rebuilding Venezuela's oil

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Speaker 10: infrastructure enough to lift output back to its peak levels

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Speaker 10: of the nineteen seventies would require companies that include Chevron

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Speaker 10: to invest about ten billion dollars a year over the

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Speaker 10: next decade or right now, Chevron shares up eight percent

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Speaker 10: pre market. Chris Sabatini, senior research fellow at Chatham House,

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Speaker 10: says there isn't much left of the oil infrastructure in Venezuela.

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Speaker 5: Pullm is and this was the case in I Rock too.

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Speaker 3: You're looking at, basically, in the case of Venezuela, more

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Speaker 3: than two decades on an autocratic, corrupt regime.

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Speaker 10: At Venezuela's oil parse, the equipment is in such poor

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Speaker 10: shape it takes up to five days to fully load supertankers.

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Speaker 10: Oil rigs have been abandoned, spills go unchecked, drilling pans

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Speaker 10: have been ransacked, Fires and explosions have gutted equipment. There

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Speaker 10: Venezuela does sit atop the world's largest oil reserves, but

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Speaker 10: output plummeted during the twelve year term of Nicholas Maduro.

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Speaker 10: The nation currently produces about one million barrels a day,

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Speaker 10: comparing that to nearly four billion barrels in nineteen seventy four.

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Speaker 10: And if output does increase, oil prices may decline, offering

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Speaker 10: less incentive for the oil companies to invest in New York.

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Speaker 10: On John Tucker Bloomberg.

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Speaker 2: Radio, all right, John, thank you. While the Chinese Foreign

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Speaker 2: Ministry is expressing concerns about the capture of Venezuela's Nicholas Maduro,

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Speaker 2: and here's spokesman Lyn Jan speaking through an interpreter earlier

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Speaker 2: in Beijing.

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Speaker 11: Some Tuji China express his grave concern of the US

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Speaker 11: seizing Nicholas Maduro and his wife and taking them out

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Speaker 11: of the country. The US move is in clear violation

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Speaker 11: of international law and the principles of the UN Charter.

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Speaker 11: China caused the US to enshare personal safety of President

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Speaker 11: Nicholas Maduro and his wife, released them, stopped heppling the

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Speaker 11: government of Venezuela and resolve issues through dialogue and negotiations.

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Speaker 2: Spokesman Lend Gion says China is committed to deepening cooperation

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Speaker 2: with Venezuela well.

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Speaker 3: For his part, care and President Trump is warning other

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Speaker 3: drug producing nations in the Western Hemisphere that he won't

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Speaker 3: long tolerate the flow of illegal substances into the US.

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Speaker 3: Here he is again a bord air Force one.

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Speaker 4: We have a very sick neighbor. He's not a neighbor,

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Speaker 4: but it's close to a neighbor, and that's Venezuela. It's

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Speaker 4: very sick. Colombia is very sick too, run by a

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Speaker 4: sick man who likes making cocaine and selling.

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Speaker 5: It to the United States.

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Speaker 4: And he's not going to be doing it very long.

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Speaker 11: Let me tell you.

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Speaker 3: President Trump rerefurther to Colombian President Gustavo Petro, a frequent

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Speaker 3: Trump critic, who denounced the weekend raid.

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Speaker 2: Then, the events in Venezuela have spark new questions about

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Speaker 2: America's stands toward Europe. Denmark's Prime Minister Metef Frederickson is

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Speaker 2: urging President Trump to stop threatening to annex Greenland. The

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Speaker 2: comments come after President Trump again doubled down that he

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Speaker 2: wants to take over the country right now.

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Speaker 12: Greenland is covered with Russian and Chinese ships all over

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Speaker 12: the place. We need Greenland from the standpoint of national security,

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Speaker 12: and Denmark is not going to be able to do it, I.

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Speaker 5: Can tell you.

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Speaker 2: And Greenland's elected a leader. Jens Frederick Nielsen posted on

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Speaker 2: Facebook saying there's no reason for panic as Greenland's position

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Speaker 2: is firmly anchored in international law.

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Speaker 3: No, we're seeing immediate reaction to the developments in Venezuela

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Speaker 3: across several markets. Karen spot gold has climbed above forty

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Speaker 3: four hundred dollars an ounce right now, it's at forty

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Speaker 3: four to thirty one, while silver is up nearly five percent.

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Speaker 2: Well surprising to some, Nathan, we are not seeing a

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Speaker 2: dramatic move in the oil sector in fact right now,

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Speaker 2: and Nimex crude oil is a little changed at fifty

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Speaker 2: seven dollars twenty nine cents a barrel. Steven Stepsinski leads

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Speaker 2: Bloomberg's team covering energy.

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Speaker 8: I think overall, you just look at what is being

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Speaker 8: produced out of Venezuela, and they produced some one percent

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Speaker 8: of global supply, and so where they stand in the

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Speaker 8: grand scheme of things. If you were to cut out

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Speaker 8: their supply, it can be easily replaced. But also there's

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Speaker 8: this look at, well, they have all these reserves, can

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Speaker 8: they add that supply as well? And there's expectations that

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Speaker 8: they can't really add the supply very quickly either for

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Speaker 8: a number of reasons. So the market has really shrugged

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Speaker 8: those off. There's sort of been a wait and see

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Speaker 8: situation and.

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Speaker 2: In a separate no Bloomberg Stevens step Sinski says at

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Speaker 2: a meeting yesterday, opek Plus stuck with plans to pause

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Speaker 2: supply increases in the first quarter, and.

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Speaker 3: Karen US Airlines have begun rebuilding their Caribbean operations after

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Speaker 3: the military incursion in Venezuela suggared airspace closures across the region.

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Speaker 3: American Airlines and Delta are among those that have added extra

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Speaker 3: flights and seats to accommodate displaced customers. Hundreds of flights

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Speaker 3: were canceled over the weekend after the Federal Aviation Administration

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Speaker 3: restricted parts of Caribbean airspace.

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Speaker 2: Time now for look at some of the other stories

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Speaker 2: making news in New York and around the world, and

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Speaker 2: for Never joined by Bloomberg's Michael Barr Michael, Good Morning.

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Speaker 13: Good Morning. Karen. Congress returns to Washington this week. The

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Speaker 13: Senate returns today. The House comes back Tuesday. They will

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Speaker 13: address government funding, with a January thirtieth deadline to pass

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Speaker 13: a bill or face another government shutdown. In addition, Congress

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Speaker 13: must deal with healthcare now that healthcare tax credits under

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Speaker 13: the Affordable Care Act expired last month. Millions of Americans

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Speaker 13: are unable to afford health insurance without the sub disease.

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Speaker 13: Senate Minority Leader Chuck Schumer says Democrats are willing to

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Speaker 13: work with Republicans on their plan to bring health care

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Speaker 13: costs down, hinting that refusal to do so could impact

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Speaker 13: the GOP in the midterm elections.

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Speaker 5: The Republicans have screwed this up to a fairly will.

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Speaker 14: If they can find a way out of the mess,

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Speaker 14: we want to work with anybody to lower the prices.

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Speaker 13: Senator Schumer spoke on ABC's This Week Heard Sundays on Bloomberg.

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Speaker 13: Republican Georgia Representative Marjorie Taylor Green's resignation from Congress take

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Speaker 13: effect today. There are mixed reviews about her legacy. Larry

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Speaker 13: Sabato is the director of the Center for Politics at

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Speaker 13: the University of Virginia.

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Speaker 15: I think it's always wrong to focus on the latest

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Speaker 15: event involving a person and not look at the entirety,

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Speaker 15: at least of the public career and her career. To

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Speaker 15: say it's been checkered is a compliment.

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Speaker 13: Larry Sabato is with the University of Virginia. Meanwhile, local

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Speaker 13: Republican Party chair Jackie Harling says Green was a fighter

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Speaker 13: who gave them a voice. Green's resignation will shrink the

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Speaker 13: Republican majority in the House of Representatives to six seats.

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Speaker 13: Protests continue to grow in Iran over the weekend as

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Speaker 13: concerns sparked by the Islamic Republic's ailing economy puts new

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Speaker 13: pressure on its regime to act. Since international sanctions returned

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Speaker 13: in September, Iran's currency is now in a free fall.

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Speaker 13: More than five hundred and eighty protesters have been rested.

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Speaker 13: Cruz cleared mud from key California highways. Forecasters warned that

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Speaker 13: more thunderstorms were on the way after downpours and high

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Speaker 13: tides caused flooding, prompting road closures and rescues of people

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Speaker 13: trapped in cards. Global News twenty four hours a day

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Speaker 13: and whenever you want it with Bloomberg News Now, Michael

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Speaker 13: Barr and This is Bloomberg Karen.

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Speaker 10: Well, well, thanks Michael.

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Speaker 2: Time now for our Bloomberg Sports update, and for that

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Speaker 2: we bring in John stash Hour tris staring.

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Speaker 14: The NFL regular season is over. The playoffs begin on Saturday.

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Speaker 14: There were still two spots up for grabs. Yesterday, Carolina

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Speaker 14: won the NFC South despite losing its game Saturday at

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Speaker 14: Tampa Bay. Atlanta's win over New Orleans created a three

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Speaker 14: way tie and the Panthers won the tiebreaker. The Falcons,

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Speaker 14: after winning that game, fired their coach Raheem Morris. Last

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Speaker 14: game of the season was last night in Pittsburgh, a

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Speaker 14: back and forth fourth quarter. The Steelers on an Aaron

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Speaker 14: Rodgers touchdown pass with a minute ago beat the Ravens

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Speaker 14: twenty six to twenty four won the division. That's the

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Speaker 14: Bloomberg Sports Update.

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Speaker 2: Hey with us. More from Bloomberg day Break coming up

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Speaker 2: after this.

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Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 5: Good morning, I'm Nathan Hager.

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Speaker 3: After an extraordinary weekend of airstrikes and the ouster of

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Speaker 3: Nicolas Maduro. The world is watching for what comes next

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Speaker 3: in Venezuela. President Trump says, leadership in the country right

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Speaker 3: now is clear.

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Speaker 4: Don't ask me who's in judge, because I'll give you

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Speaker 4: an answer and it'll be very contro ration.

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Speaker 14: What does that mean we're in judge?

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Speaker 3: That was President Trump aboard Air Force one last night.

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Speaker 3: This morning, we're joined by Terry Haynes, the founder of

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Speaker 3: Pangaea Policy. Sharp words Terry from the President. But it

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Speaker 3: does leave a question, doesn't it, of what the US

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Speaker 3: in charge means in Venezuela. What does it mean?

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Speaker 16: Good morning, Hi, Good morning, Nathan.

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Speaker 2: Uh.

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Speaker 16: Bottom line is I wish I knew and that's no

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Speaker 16: jab at the Trump administration, I think, but I think

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Speaker 16: the policy here is a little more improvisational than a

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Speaker 16: lot of people would like, particularly in markets. Uh. They are,

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Speaker 16: I think, going to make this up as it goes

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Speaker 16: along if they can get if they can get some

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Speaker 16: sort of cooperation from the existing government, they might take that.

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Speaker 2: Uh.

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Speaker 16: I think that the existing government, from Miss Rodriguez on

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Speaker 16: down is likely to be likely to be found wanting

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Speaker 16: you know, the you know, people forget that it's not

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Speaker 16: just Maduro that's under under indictment. Uh. And and people

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Speaker 16: also forget that it's not as if this is a

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Speaker 16: some sort of conventional democratic country uh, in which you know,

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Speaker 16: the succession will work and you know somehow they'll, you know,

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Speaker 16: they'll manage to seer the ships. Slightly differently, the kind

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Speaker 16: of change that the United States now wants in Venezuela

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Speaker 16: is not to kind of change these people are poised

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Speaker 16: to deliver.

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Speaker 3: I think, well, if it is the US making it

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Speaker 3: up as it goes along, terry, what does that mean

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Speaker 3: in terms of a potential US military presence in Venezuela

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Speaker 3: and this idea of US oil companies coming in to

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Speaker 3: rebuild Venezuela's vastly decimated oil infrastructure.

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Speaker 16: Well, two things. One, I think that the I think

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Speaker 16: that it is very unlikely that there will be some

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Speaker 16: kind of major sustained boots on the ground presence in

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Speaker 16: the United States or from the United States to Venezuela.

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Speaker 16: You know, might there be some sort of small, relatively

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Speaker 16: small force that does specific things. That's entirely possible. I mean,

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Speaker 16: but we have that all over the world in a

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Speaker 16: variety of ways, in a variety of guises. So I'd

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Speaker 16: kind of look at that in the extreme. Secondly, you know,

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Speaker 16: the I think what the lookd at very broadly, the

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Speaker 16: the observations that what's going on in Venezuela, or what

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Speaker 16: had been going on in Venezuela for that matter, in

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Speaker 16: South as part of the South America policy of the

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Speaker 16: administration is about oil or resources or something else. That's

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Speaker 16: both true and too narrow a focus. You know, from

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Speaker 16: the national security perspective of the Trump administration, if you

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Speaker 16: have to look at it holistically, meaning of understanding what

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Speaker 16: the situation is. You know, pre last weekend, those competing

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Speaker 16: or opposing the United States now have control of all

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Speaker 16: those resources. So it is very important for this country.

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Speaker 16: Our government judges that we have we have access to

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Speaker 16: that as well.

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Speaker 3: Taking your point about looking at it holistically, the administration

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Speaker 3: has said it's about oil and it's about drug flows

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Speaker 3: out of Venezuela as well. And the president just last

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Speaker 3: night aboard Air Force Verse one sent a warning to

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Speaker 3: the President of Colombia, calling him a very sick man.

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Speaker 3: What could potentially come next here given those potential implications, Harry.

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Speaker 16: Well, I think the uh, yeah, I've been pointing out

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Speaker 16: since uh, since the release of the National Security strategy

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Speaker 16: in November. Uh that what was in that document was

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Speaker 16: called the Trump Corollary to the Monroe Doctrine, uh you know,

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Speaker 16: had in its sites uh you know, basically reducing Chinese

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Speaker 16: influence in South America. It needs to be understood that

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Speaker 16: China is today South America's largest trading partner and uh

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Speaker 16: and they seek to use that trade status to increase

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Speaker 16: its geopolitical influence in South America. Uh. What that means,

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Speaker 16: I think for the overall region is that uh you have,

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Speaker 16: whether it be in Cuba or Columbia or elsewhere. Uh.

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Speaker 16: You know, the administration has now uh put those folks

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Speaker 16: on notice that it is very interested in changing that

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Speaker 16: behavior or having those governments fall. Frankly, and the President

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Speaker 16: was very explicit about that in Cuba, but also thinks

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Speaker 16: that no United States action is necessary to bring that about.

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Speaker 16: I'd suggest only there that the Cubans have proved themselves

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Speaker 16: to be far more tenacious. Uh uh you know, surviving

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Speaker 16: the loss of the Soviet Union, now surviving the loss

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Speaker 16: of Venezuela. Uh and and you know, we'll see if

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Speaker 16: they can find another benefactor.

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Speaker 3: Now, well, one of the big benefactors of Venezuela has

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Speaker 3: been China, of course. I mean we've seen the Chinese

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Speaker 3: Foreign Ministry come out pretty strongly against the weekend events.

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Speaker 3: I mean, what could this bean for the US China

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Speaker 3: situation where they're trying to keep a trade truce intact.

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Speaker 16: Well, they're they're trying, well, you know, the China. The

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Speaker 16: China statement, I've had a lot of irony to it.

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Speaker 16: Nothing beats the nothing beats the Russian state. And of

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Speaker 16: course for irony, I'll let the listeners go look that up.

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Speaker 16: But you know what that means fundamentally is, you know,

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Speaker 16: the terms of the United States competition here has been

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Speaker 16: that what we're trying to do as the United States

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Speaker 16: government is you know, really try to right size and

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Speaker 16: push back against China adventurism and trying to influence gathering

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Speaker 16: in you know, many different continents. And the administration judges

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Speaker 16: that it's going to start in it's going to start

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Speaker 16: in South America. But Trump since day one has expressed

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Speaker 16: interest for to kind of clean up the United States

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Speaker 16: defense in the Atlantic and the Pacific. And this is

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Speaker 16: why Greenland is discussed. For example, it's not just because

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Speaker 16: of the resources, but also because it's got you know,

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Speaker 16: it's right on the front lines, whether you look across

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Speaker 16: to Europe up through the Arctic, which increasingly is more important.

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Speaker 16: But you know, we've been pushing back at China for

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Speaker 16: a year now, whether it be you know, kind of

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Speaker 16: pushing back against its client state Russia and Ukraine, its interests,

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Speaker 16: been pushing it around and its proxies in the Middle East,

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Speaker 16: and also helping our ally Japan and others in the

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Speaker 16: Philippines and other others in the South China Sea.

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Speaker 5: You mentioned Greenland.

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Speaker 3: Do you think there's going to be a serious move

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Speaker 3: by the US on Greenland in the short to medium term.

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Speaker 16: Now today I look at I look at this more

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Speaker 16: as a means of the takeover talk of Trump's as

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Speaker 16: pressuring Denmark to make some sort of a deal on Greenland.

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Speaker 16: It's also it also bears noting that going back a

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Speaker 16: few years, there was some interest in Greenland itself to

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Speaker 16: say oparat or created different a different political arrangement with Denmark.

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Speaker 16: I think both of those strings are being twanged rather unsubtly.

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Speaker 16: But I look at this as much the administration's view

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Speaker 16: as much more interested in making some sort of oil

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Speaker 16: minerals deal, and all the rest again, going back to China,

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Speaker 16: I think none of this consider that none of this

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Speaker 16: might have happened had not China kind of pulled the

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Speaker 16: rare earths string here, which is still unresolved and part

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Speaker 16: of the unresolved US China trade tengency.

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