Speaker 1: Live from the Bloomberg Interacted Brooker Studios. This is Bloomberg
Speaker 1: day Break for Tuesday January. Coming up this hour, the
Speaker 1: Justice Department may sue Google as earliest. Today, we are
Speaker 1: live with the latest new tensions between the US and China,
Speaker 1: this time over Russia. Microsoft gets set to report earnings
Speaker 1: and more job cuts come to Corporate America. Another mass
Speaker 1: shooting in California Monday leaves seven dead, plus a majority
Speaker 1: of New Yorkers one in battle. Republican Congressman Santos to resign.
Speaker 1: I'm Michael barn Moore a hand. I'm John stash Our
Speaker 1: in sports arranger went over Florida. The Islanders lost in
Speaker 1: Toronto and they're playing the quarter finals at the Australian Open.
Speaker 1: That's All's trended ahead on Bloomberg Daybreak on Bloomberg eleven
Speaker 1: three on New York, Bloomberg one, Washington, d C, Bloomberg
Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco
Speaker 1: Sirius x M one nine team and around the world
Speaker 1: on Bloomberg Radio dot Com and via The Bloomberg Business.
Speaker 1: Good morning, I'm Nathan Hagar, and I'm kerin Moscow. Here
Speaker 1: are the stories we're following today. We begin with a
Speaker 1: looming government lawsuit against Google. We get the latest live
Speaker 1: now with Bloomberg Steve Rappaport, Steve, good morning, Good morning,
Speaker 1: Nathan and Karen. The Justice Department is poised to sue
Speaker 1: Google for antitrust violations, alleging the tech giant unfairly dominates
Speaker 1: the digital ad market. Google has argued competition and online
Speaker 1: ads is quite healthy, noting its rivals include other power
Speaker 1: players like Amazon, Meta and Microsoft Alphabet's. Google is number
Speaker 1: one in the US digital ad market, controlling technology used
Speaker 1: to buy, sell, and service online ads. The company is
Speaker 1: projected to bring in nearly seventy billion dollars in US
Speaker 1: online advertising revenue this year. Live in New York, I'm
Speaker 1: Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you. I'll
Speaker 1: staying in Washington. Now. US China relations are in focus today.
Speaker 1: The Biden administration has confronted Beijing with evidence sets a
Speaker 1: j ties to Russia and support for Russia's war effort
Speaker 1: in Ukraine. Details now from Bloomberg's Amy Morris in osroom
Speaker 1: in Washington. Sources tell Bloomberg News that the U s
Speaker 1: suspects some Chinese state owned companies maybe providing assistance for
Speaker 1: Russia's war effort in Ukraine. The administration is reviewing the
Speaker 1: evidence it's accumulated to determine its significance. No word on
Speaker 1: what that evidence is. If the Biden administration finds that
Speaker 1: Chinese companies are supporting the invasion and that China's government
Speaker 1: knew about it or somehow involved, they would be forced
Speaker 1: to decide how much to push back, and that could
Speaker 1: risk opening a whole new area of dispute with China
Speaker 1: in Washington. I'm Amy Morris, Bloomberg Daybreak. Thank you, Amy.
Speaker 1: Let's turn back to these markets now, where we continue
Speaker 1: to see a bullish start to the NASTAC one hundreds
Speaker 1: coming off its best two day runs since November. It
Speaker 1: gained two percent yesterday and the SMP five hundred is
Speaker 1: up twelve percent from its October low. Still, Mike List,
Speaker 1: senior portfolio manager at American Century invest San, says it
Speaker 1: is a confusing time for investors. You've got lots of poses,
Speaker 1: like like a strong job market, consumers still spending of
Speaker 1: China's opening, and inflation slowing, but the negatives are race
Speaker 1: may have to stay elevated for a while, housing to
Speaker 1: drag miser contracting um, and you have elevated you political concerns.
Speaker 1: So it is very confusing out there. Lots of cross
Speaker 1: currents right now. Mike Liss with American Century Investments likes banks.
Speaker 1: He says he is overweight in the sector. Well, Nathan,
Speaker 1: Corporate earnings could be a determining factor to whether this
Speaker 1: rally has legs. And this afternoon we hear from tech
Speaker 1: heavyweight Microsoft and Bloomberg. Jeff Bellinger has a preview. Bloomberg
Speaker 1: Intelligence says the software giants quarterly results could reflect continued
Speaker 1: pressure on Windows and cloud products. Windows demand may have
Speaker 1: softened because of weaker PC sales, and the rate of
Speaker 1: growth for products from Azure two Dynamics three likely slowed.
Speaker 1: But with Microsoft and other technology companies that have yet
Speaker 1: to report, investors will be all ears when executives talk
Speaker 1: about the outlook. Guidance from the sector could offer clues
Speaker 1: to how long the pressure on earnings might last. Jeff Bullinger,
Speaker 1: Bloomberg Daybreak. Okay, Jeff, thanks, We're seeing more job cuts
Speaker 1: across corporate America. This morning, we get the latest on
Speaker 1: that live with Bloomberg's Dan Schwartzman. Good morning, Dan, Good
Speaker 1: morning Nathan and Karen. Bloomberg News learning that Gemini, the
Speaker 1: firm led by the Winklevoss twins, will lay off ten
Speaker 1: percent of its staff. It's the third round of job
Speaker 1: cuts for the cryptocurrency exchange dating back to June. Gemini
Speaker 1: Trust has been unable to pay out funds to some
Speaker 1: of its account holders due to the bankruptcy of Genesis
Speaker 1: Global Capital, who is set to oh around nine million
Speaker 1: dollars to clients. Meantime, the auto industry also seeing job losses.
Speaker 1: Ford Motor Company will be laying off workers across Europe,
Speaker 1: mostly in Germany. It wants to cut cost to pour
Speaker 1: more money it's electric vehicle production. Ford CEO Jim Farley
Speaker 1: has pledged more than fifty billion dollars toward the development
Speaker 1: of evs on Dan Schwartzman, Bloomberg Daybreak. All right, Dan,
Speaker 1: thank you. Now, let's turned to Silicon Valley and the
Speaker 1: trial of Elon Musk. The Tesla CEO is on the
Speaker 1: witness stand for a second day in his securities fraud case,
Speaker 1: defending tweets about taking the company private. Egg Baxter has
Speaker 1: the latest from our Bloomberg nine sixty newsroom in San Francisco.
Speaker 1: The crux of testimony centered around a deal with a
Speaker 1: Saudi public investment fund. He said he'd had a handshake
Speaker 1: agreement in getting help going private, but then they began
Speaker 1: to back pedal on the arrangement after his go private tweet.
Speaker 1: He also said he had support from Larry Ellison as
Speaker 1: well as two other investment firms. Musk also noted the
Speaker 1: wording of the text that he was contemplating taking the
Speaker 1: company private. He's back on the stand today in San Francisco.
Speaker 1: I'm at Baxter Bloomberg Daybreak, Okay, and thanks. I must
Speaker 1: continues to fight that court battle over Tesla. He's facing
Speaker 1: another legal challenge when it comes to Twitter. According to
Speaker 1: a lawsuit there, Musk is accused of not paying grant
Speaker 1: on the company san Francisco headquarters since December. The owner
Speaker 1: of the building says the social media company failed to
Speaker 1: pay almost seven million dollars in rent over the last
Speaker 1: two months. Well, Musk is caught up in legal battles, Nathan,
Speaker 1: he has seen his wealth increase thanks to a mini
Speaker 1: rally and Testlas shares. According to the Bloomberg Billionaires Index,
Speaker 1: Musk's fortune has swelled by more than ten billion dollars
Speaker 1: since Friday to reach a total of roughly one forty
Speaker 1: five billions since Friday. Musk last month became the first
Speaker 1: person ever to see two hundred billion dollars erased from
Speaker 1: their net worth in his thirty six degrees in Central Park.
Speaker 1: Cloudy skies will give way to sunshine today in a
Speaker 1: high near forty five. Those clouds are gonna roll back
Speaker 1: in tonight, though, ahead of a wintry mess tomorrow. Time
Speaker 1: now to take a look at some of the other
Speaker 1: stories making news in New York and around the world
Speaker 1: with Bloomberg's Michael bar Good morning, Michael, Good morning Nathan.
Speaker 1: Another mass shooting in California. Seven people were killed and
Speaker 1: another severely injured in shootings that took place at two
Speaker 1: separate locations in Half Moon Bay in northern California. Another
Speaker 1: person was wounded and taken to a hospital in critical condition.
Speaker 1: The other three bodies were discovered at a separate nursery
Speaker 1: with gunshot wounds. San Mateo County Sheriff of Christina Corpus
Speaker 1: calls it a horrific shooting. The motive through the shooting
Speaker 1: is currently unknown through investigation. The suspect identified as Chun Lizel,
Speaker 1: a sixty seven year old Half Room Bay resident. The
Speaker 1: shootings occurred two days after a gunmen killed eleven people
Speaker 1: at a dance club. The shootings in California led to
Speaker 1: a march in New York City. It went from Union
Speaker 1: Square to Chinatown to fight gun violence in the US.
Speaker 1: This person was at the event. Every time something like
Speaker 1: this happens, if we say, oh my god, never again,
Speaker 1: but when are we really going to finally say this
Speaker 1: is enough? Another marcher says gun violence is a public
Speaker 1: health crisis. Attorney General Merrit Garland dismissed criticism that the
Speaker 1: Justice Department is treating Donald Trump and Joe Biden differently
Speaker 1: when it comes to investigating their handling of classified documents.
Speaker 1: We do not have different rules for Denmark rats or Republicans,
Speaker 1: different rules for the powerful and the powerless, different rules
Speaker 1: for the rich for for the poor. We apply the
Speaker 1: facts and the law in each case in a neutral,
Speaker 1: nonpartisan manner. Uh. That is what we always do. A g.
Speaker 1: Garland made the comments during a meeting of the Reproductive
Speaker 1: Rights Task Force at the Justice Department. A new poll
Speaker 1: shows a majority of New Yorkers want Long Island GOP
Speaker 1: representative George Santos to resign. According to a Siena College
Speaker 1: Research Institute pole, nearly six out of ten New York
Speaker 1: voters said Santos should step down. At about half of
Speaker 1: Republicans say he should leave office. Santos admitted to lying
Speaker 1: about working at Goldman Sachs and other parts of his
Speaker 1: resume while campaigning. The Oscar nominations will be announced this morning.
Speaker 1: Some of the favorite movies include Top Gun, Maverick Avatar,
Speaker 1: The Way of Water, Black Panther, Wakonda Forever, and Elvis
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than seven hundred journalists
Speaker 1: analysts more than countries Michael Barr, and this is Bloomberg.
Speaker 1: Night's actually seen a couple of those. How about that?
Speaker 1: Thank you, Michael, except for the Bloomberg Sports Update now
Speaker 1: brought tier by tri State out Here. Good morning, John Stanshower,
Speaker 1: Good morning anything. Despite the shell lackein they took Saturday
Speaker 1: night in Philadelphia, the Giant season was arousing success. Passons
Speaker 1: two thousand and eleven and Napogins. What will be an
Speaker 1: interesting off season? Daniel Jones and Sa Kwan Barkley can
Speaker 1: both be unrestricted free agents. John's gentlemenator Joe Shane was
Speaker 1: asked about Barkley. We want to build this team and
Speaker 1: allocade our resources and that's that's what it comes down
Speaker 1: to you. So again, he's he's a good football player. Um,
Speaker 1: he was durable for this suit this year. He played well,
Speaker 1: and you know, again he's he's a guy that we
Speaker 1: might have back. Shane was more definitive about the chances
Speaker 1: of Jones Attorney. Giants have learned they'll have the twenty
Speaker 1: fifth pick of the draft. The Jets all pick thirteen.
Speaker 1: Chiefs coach Andy Reid says he expects Patrick Mahomes to
Speaker 1: play in Sunday's ANFC championship game but Sincinnat despite a
Speaker 1: high ankle sprain, it did not prevent the Homes from
Speaker 1: playing second half Last Saturday at the Garden Rangers Bead
Speaker 1: Florida six to two, para goals for Mekas Abantage had
Speaker 1: three assists for Timmy Panerain. Islanders lost in Toronto five
Speaker 1: to two. In the Isles have now lost five in
Speaker 1: a row nine of the last ten. Next tonight try
Speaker 1: to end a four game losing streak. They host Cleveland
Speaker 1: College Hoops. Kansas defending national champs was sixteen and one
Speaker 1: lost at Baylor. Jayhawks have lost their last three. Duke
Speaker 1: is just five and four in the a c C
Speaker 1: after a loss in Virginia Tech a couple of Russians
Speaker 1: and in the semifinals of the Australian Open, krinkatching off
Speaker 1: took out the American Sebastian Quarter Atlanta Rabkina coming off
Speaker 1: an upset of top seed Eka Schwech one again third
Speaker 1: seed in Jessica Pagoula has just lost her quarterfinal match
Speaker 1: with Victoria Azarenka six four or six one. We'll find
Speaker 1: out today who if anyone gets into the Baseball Hall
Speaker 1: of Fame. The philling is it could be a shutout,
Speaker 1: but if anyone has a chance, it might be Scott Rowland,
Speaker 1: John Stash and went Bloomberg Sports Live from coast to coast,
Speaker 1: from New York to San Francisco, Boston to Washington, d C.
Speaker 1: Nationwide on Sirius XAMP, the Bloomberg Business app, and Bloomberg
Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning up, Nathan Hagar.
Speaker 1: We're following a couple of significant developments when it comes
Speaker 1: to the war in Ukraine. Sources are telling Bloomberg News
Speaker 1: that the Biden administrations confronting China with evidence that state
Speaker 1: owned businesses maybe providing assistance to the Russian war effort.
Speaker 1: And now we have confirmation from Poland that it is
Speaker 1: asking the German government to allow it to send Leopard
Speaker 1: two tanks into Ukraine to support their war effort. From
Speaker 1: more on. All these stories were joined live by Bloomberg
Speaker 1: News Executive editor for International Government, Rosalind Mathison. Ros Good morning,
Speaker 1: thanks for being with us. I want to start with
Speaker 1: this a US China situation. What is the evidence that
Speaker 1: the US is talking about? What kind of assistance could
Speaker 1: a state owned enterprises be providing Russia. Well, there wasn't
Speaker 1: a lot of detail about that, but what we know
Speaker 1: is that there is a rising level of concern in
Speaker 1: the US administration about just how much economic activity is
Speaker 1: going on between China and Russia and how much that
Speaker 1: might be becoming deliberate in order to support of the
Speaker 1: Russian economy to facilitate its war in Ukraine. It seems
Speaker 1: to be focused around several things. One is just the
Speaker 1: activities of state owned enterprises doing business in China. The
Speaker 1: other is perhaps the provision of non lethal military assistance,
Speaker 1: which is sort of spare parts, goggles, that kind of
Speaker 1: thing that might be just, you know, what Russia actually
Speaker 1: needs right now, given its struggles in Ukraine, and certainly
Speaker 1: a trajectory that the US administration is seeing where some
Speaker 1: of that activity is picking up. Of course, it's not
Speaker 1: in violation of sanctions that are placed on Russia for now.
Speaker 1: Chinese companies have been pretty careful to stay in their
Speaker 1: lane on that, even though China never signed up to
Speaker 1: these sanctions to begin with. But what they're seeing as
Speaker 1: signs that some of that activity is on the rise,
Speaker 1: and therefore the warnings are coming to Beijing to watch it.
Speaker 1: What's the possibility rise that the Chinese government wouldn't potentially
Speaker 1: know about this kind of activity coming from its own
Speaker 1: Steino on enterprises, It's possible it is also through the
Speaker 1: private sector, and you've just got sort of the natural
Speaker 1: order of business. I mean, China is not just the
Speaker 1: only country who's really seeing business somewhat as usual with
Speaker 1: Russia despite its actions in Ukraine. India, countries in the
Speaker 1: Middle East, Africa and so on similarly have been continuing
Speaker 1: to trade and invest with Russia with certain enterprises, generally,
Speaker 1: they tend not to act without at least a sense
Speaker 1: of the mood in Beijing. It might not be an
Speaker 1: avert instruction from Beijing, but at least sort of knowing
Speaker 1: where the wind is with the leadership there in terms
Speaker 1: of things like their view on Russia and its actions
Speaker 1: in Ukraine. So they wouldn't be acting really without sort
Speaker 1: of a sense of that, even if it's not an
Speaker 1: overt instruction. Um So you can read from that that
Speaker 1: probably there is a sense of other mood shift in
Speaker 1: Beijing in the leadership about Russia on this and what's
Speaker 1: the potential of the mood shift affecting US China relations.
Speaker 1: We've had over the last couple of months at least
Speaker 1: an effort to try to stabilize, if not further improve
Speaker 1: Chinese relations after that meeting between the presidents of the
Speaker 1: U S and China. Well, certainly that is the balancing
Speaker 1: that we're seeing going on. As you've noted, there's been
Speaker 1: sort of a shift between China and the US at
Speaker 1: least an effort to put that relationship on a more
Speaker 1: even keel. And we're expecting the Secretary of State Anthony
Speaker 1: Lincoln to visit China before too long, and that would
Speaker 1: be sort of putting that on that further trajectory. So
Speaker 1: there will be probably an anxiety at least in Washington
Speaker 1: to make sure that these issues remain somewhat separate. Yeah,
Speaker 1: you continue to press China over Russia, over Ukraine, but
Speaker 1: equally you're trying to put sort of trade and investment
Speaker 1: and other other issues, including the need to tackle climate
Speaker 1: change collectively, for example, on a different track between the
Speaker 1: US and China relationship. So you'd imagine that there's a
Speaker 1: strong design not to have it in fect that broader
Speaker 1: trajectory too much. And I want to turn rise finally
Speaker 1: to this new development that just crossed the Bloomberg terminal
Speaker 1: moment ago, that Poland is now formally asking Germany for
Speaker 1: permission to send in Leopard two tanks. I guess this
Speaker 1: isn't too big a surprise here, but this does seem
Speaker 1: to have become something of a fracture in the Needle alliance.
Speaker 1: What more can you tell us about that? Well, that's
Speaker 1: right to some sense. It's a it's a formality because
Speaker 1: Poland has been asking for weeks and weeks or weeks
Speaker 1: for Germany to agree to this. Almost a daily commentary
Speaker 1: from someone in Poland saying Germany needs to now allow this.
Speaker 1: So it's just putting more pressure on on Berlin to
Speaker 1: to agree that other countries can send in their own
Speaker 1: German made heavy tanks, the Leopard tanks in particular. We
Speaker 1: are expecting that Germany will will sort of get over
Speaker 1: the line on this at some point, whether it's days
Speaker 1: or potentially still weeks, but the pressure is intense, and
Speaker 1: really even Germany is agreeing that Ukraine needs more heavy
Speaker 1: weapons if it's going to be able to push back
Speaker 1: against a possible Russian offensive that may come in the
Speaker 1: next couple of weeks or a couple of months. But
Speaker 1: it's really just sort of keeping that public pressure from
Speaker 1: Poland on Germany to agree just thirty seconds left her rise.
Speaker 1: But what's been holding Germany back up to this point, well,
Speaker 1: a bunch of things. One is obviously concern and Germany
Speaker 1: is not the only one saying this, is that the warriors,
Speaker 1: the more heavy kit you sent into Ukraine, the more
Speaker 1: at some point you possibly provoked Russia into a reaction.
Speaker 1: Although Vladimir Putin has threatened that before and not followed through.
Speaker 1: So that's really a fundamental concern. And also Germany is
Speaker 1: just very cautious about its weaponry going into other hands.
Speaker 1: That's been its position since the end of World War
Speaker 1: Two and something that it still holds very closely. So
Speaker 1: those are probably the two main drivers in that regard.
Speaker 1: This is Bloomberg Daybreak Today, your morning brief on the
Speaker 1: stories making news from Wall Street to Washington and beyond.
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