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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 1: We begin again in the Middle East. That's after Iran

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Speaker 1: urged the Biden administration to use diplomacy as the US

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Speaker 1: ways how to retaliate against a deadly attack at a

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Speaker 1: military base in Jordan. Bloomberg's Amy Morris with the details

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Speaker 1: from Washington.

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Speaker 3: Iran's foreign minister says active diplomacy is underway to find

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Speaker 3: a solution to the war in Gaza and the regional fallout.

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Speaker 3: But three US soldiers were killed and dozens more were

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Speaker 3: wounded in that drone attack by in Iran backed militia,

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Speaker 3: and now there are concerns the US could be drawn

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Speaker 3: into a war in the Middle East. Secretary of State

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Speaker 3: Anthony Blincoln called out those rebel groups.

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Speaker 4: They may say that they're doing that somehow in response

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Speaker 4: to Gaza, but every action they're taking really is to

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Speaker 4: perpetuate the conflict and to expand it.

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Speaker 3: President Biden says there will be a response. Iran denies

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Speaker 3: involvement in the strike in Washington, Amy Morris Blomberg Radio, All.

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Speaker 2: Right, Amy, thank you well. In other developments in the

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Speaker 2: Middle East, this morning, Israeli intelligence is claiming up to

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Speaker 2: ten percent of the UN relief agencies twelve thousand workers

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Speaker 2: in Gaza were members of Hamas and Palestinian Islamic Jihad.

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Speaker 2: The United Nations fired several agency staffers last week in

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Speaker 2: response to Israel's initial claim about their militant ties. They

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Speaker 2: yet more from Bloomberg News Middle East Breaking News editor

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Speaker 2: Dana Krash we.

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Speaker 5: Did have a story on the terminal looking at some

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Speaker 5: documents that Israel had shared with the US that ten

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Speaker 5: percent of the onorwa's staff were involved in the October

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Speaker 5: seven attack by Hamas. Now, the UN agency doesn't only

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Speaker 5: eight Palestinians in Gaza, but it also refugees scattered in

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Speaker 5: the region in places like Clebanon. So cutting funding would

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Speaker 5: have an impact on the livelihood of Palestinians inside Gaza

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Speaker 5: and the refugees elsewhere.

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Speaker 2: Bloomberg's Dana Krajh says the document did not name any

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Speaker 2: of the suspects and could not be independently verified.

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Speaker 5: Well.

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Speaker 1: Karen Let's turn out to a major technological development back

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Speaker 1: here in the US. Elon Musk says the first human

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Speaker 1: patient has received a brain implant from his Neuralink startup.

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Speaker 1: In Bloomberg's Ed Baxter has the story.

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Speaker 4: Musk says this is a significant step forward for the company.

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Speaker 4: He says it aims to one day let humans control

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Speaker 4: computers with their minds. He's posted that the patient is

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Speaker 4: recovering well and that the initial results of the procedure

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Speaker 4: are promising. The first goal for Neuralink is to help

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Speaker 4: people with traumatic injuries to operate computers with only their thoughts,

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Speaker 4: and to help patients with conditions from cervical spinal cord

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Speaker 4: injury to als. It does have FDA clearance for the trials.

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Speaker 4: Ed Baxter Bloomberg Radio, all.

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Speaker 2: Right, Ed, thanks, So he turned to the markets. Now

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Speaker 2: in stocks enter the day, coming off yet another record

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Speaker 2: high earnings will once again be the focus, with thirty

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Speaker 2: companies in the S and P five hundred reporting today,

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Speaker 2: high tech will be a major theme and for where

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Speaker 2: we're joined by Bloomberg's John Tucker, John.

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Speaker 6: And Karen, the first of the Magnificence seven texts open

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Speaker 6: their books with Google parent Alphabet and Microsoft both are

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Speaker 6: likely to post record revenue. An A rag Rana with

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Speaker 6: Bloomberg Intelligence is the big driver for Microsoft, which just

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Speaker 6: hit a three trillion dollar market cap is the cloud

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Speaker 6: infrastructure business because that intersects with the big players in

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Speaker 6: artificial intelligence.

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Speaker 7: Opening Eyes back end is Microsoft's cloud infrastructure, so you

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Speaker 7: use a lot more Jack GPT.

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Speaker 4: Microsoft makes more money off of it, So that's the

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Speaker 4: way you want to think about it.

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Speaker 6: The investors will also be looking to hear more about

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Speaker 6: Alphabet's Gemini, the company's latest push in the AI, as

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Speaker 6: well as an update on the state of the advertising market.

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Speaker 6: Both companies are porty after the close. I'm John Tucker,

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Speaker 6: Bloomberg Radio.

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Speaker 1: All right, John, Thanks. It's also a busy day for

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Speaker 1: earnings in Europe, and one company across the pond is

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Speaker 1: disappointing investors. Shares of Diagio are down more than three percent.

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Speaker 1: For the explanation, we go to London and check in

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Speaker 1: with Bloomberg's Critty Goodda.

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Speaker 8: Critty Nathanrop an adjusting operating profit from the world's largest

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Speaker 8: makers of whiskey and tequila, Tashu, coming out with yet

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Speaker 8: another set of weak numbers after issuing a profit warning

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Speaker 8: back in November to slow down North American sales, compounding

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Speaker 8: with a collapse in demand from the Latin American and

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Speaker 8: Caribbean region. That means the company is staring down the

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Speaker 8: barrel of a price high. Ceo Deba cruising that the

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Speaker 8: focus is still on premiisation of products even as consumers

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Speaker 8: switch to cheaper alternatives. In the meantime, Tequila sales slowing

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Speaker 8: down in the United States, Theaggio's biggest market, something the

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Speaker 8: company is looking to expand in Europe. But the report

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Speaker 8: comes in start contrast to blockbuster numbers out of the

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Speaker 8: spears business here in lvmh and Remi contro creti Gupta

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Speaker 8: Bloomberg News, all.

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Speaker 2: Right, CRITI thank you. In Asia, Hong Kong stocks film

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Speaker 2: more than two percent. The impact of China, Evergrand Groups

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Speaker 2: liquidation order has had ripple effects. We get more from

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Speaker 2: Bloomberg's Justina Lee in Singapore.

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Speaker 9: Given that a big focus of this property crisis is

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Speaker 9: the are these like pre sold homes that people bought

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Speaker 9: kind of expecting for them to be delivered in a

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Speaker 9: few years. I think that's definitely going to hurt confidence

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Speaker 9: and as part of the market in particular, and that

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Speaker 9: is going to further kind of counteract all these moves

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Speaker 9: the government has been making in order to stabilize confidence.

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Speaker 2: Bloomberg Justina Elise As China's benchmark government bond yield fell

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Speaker 2: to its lowest in nearly twenty two years as mounting

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Speaker 2: expectations for further monetary easing increased.

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Speaker 1: Back to corporate news in the US, Karen IBM wants

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Speaker 1: its workers back in the office. In fact, the company

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Speaker 1: delivered an ultimatum to managers who are still working remotely

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Speaker 1: move near an office or leave the company. According to

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Speaker 1: a memo seen by Bloomberg, IBM workers must report to

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Speaker 1: an office at least three days a week, regardless of

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Speaker 1: current work location status.

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Speaker 2: Well, job cauds are coming at a major airline, Nathan

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Speaker 2: American Airline says it all layoff six hundred and fifty

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Speaker 2: six employees who help passengers with lost luggage and other

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Speaker 2: travel problems. Those jobs will be consolidated to other teams.

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Speaker 2: It's time now for a look at some of the

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Speaker 2: other stories making news around the world, and for that

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Speaker 2: we're joined by Bloomberg's Amy Morris. Say me, good morning, Good.

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Speaker 1: Morning, Kieren.

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Speaker 3: We do expect to learn more about the effort by

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Speaker 3: House Republicans to impeach Homeland Security Secretary Alejandro Miyorcis in

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Speaker 3: a hearing this morning at the Capitol, Republican Congressman Mike McCall,

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Speaker 3: who is chairing today's hearing, says Majorcus needs to pay

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Speaker 3: for the crisis at the border.

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Speaker 6: Nobody deserves it more than this man.

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Speaker 4: I call him the architect of destruction and chaos.

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Speaker 10: He has created this crisis and he knows better.

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Speaker 3: Lawmakers are expected to go over two articles of impeachment,

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Speaker 3: Democrats say the efforts of political sham. The Biden administration

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Speaker 3: is calling on House Republicans to get on board with

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Speaker 3: the bipartisan border deal expected to come out of the Senate.

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Speaker 3: Press Secretary Karine Jean Pierre.

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Speaker 11: The byperson agreement that they're coming forward with are things

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Speaker 11: that House Republicans have said, and Republicans more broadly said

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Speaker 11: they wanted. They have said over and over again, this

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Speaker 11: is what they want to see.

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Speaker 3: This comes after House Speaker Mike Johnson laid last week

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Speaker 3: says the deal is likely dead on arrival in his

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Speaker 3: chamber as it doesn't go far enough. US officials believe

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Speaker 3: the drone attack at a US base in Jordan over

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Speaker 3: the weekend that killed three Americans may have been a

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Speaker 3: case of mistaken identity. Bloomberg's Nancy Lions explains.

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Speaker 7: US officials say their preliminary investigation is discovered. The drone

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Speaker 7: that carried out the attack was apparently confused with an

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Speaker 7: American drone that was returning to the base. That's why

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Speaker 7: it was not shot down. And Deputy Press Secretary for

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Speaker 7: the Pentagon, Sabrina Singh says they're also trying to determine

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Speaker 7: who was behind the attack. We know these groups are

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Speaker 7: supported by Iran and therefore they do have their fingerprints

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Speaker 7: on this, but I can't tell you more in terms

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Speaker 7: of who directed the attack. All three soldiers lost were

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Speaker 7: based out of Fort Moore, Georgia. US officials say they

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Speaker 7: will hold those responsible to account. In Washington, Nancy Lyons

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Speaker 7: Bloomberg Radio.

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Speaker 3: Florida Governor Ronda Santis is calling for constitutional reforms in

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Speaker 3: Washington after he got out of the presidential race.

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Speaker 12: We have it in Flora. You know what.

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Speaker 4: It works because people have a limited amount of time.

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Speaker 3: Their incentives are to make a difference, not to stay

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Speaker 3: in office for thirty or forty years. Dessenttis calling for

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Speaker 3: a balanced budget, giving the president a line item veto,

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Speaker 3: and term limits for all members of Congress. Global News

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Speaker 3: twenty four hours a day and whenever you want it.

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Speaker 3: With Bloomberg News Now. I'm Amy Morrison. This is Bloomberg Karen.

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Speaker 2: All right, Amy, thank you. We do bring you news

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Speaker 2: throughout the day right here on Bloomberg Radio. But now

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Speaker 2: you can get the latest news on demand whenever you

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Speaker 2: want it. Just subscribe to Bloomberg News Now and you

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Speaker 2: can get the latest headlines right to the click of

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Speaker 2: a button. Get informed on your schedule. You can listen

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Speaker 2: and subscribe to Bloomberg News Now on the Bloomberg Business app,

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Speaker 2: Bloomberg dot Com plus apples, Spotify, and anywhere else you

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Speaker 2: get your podcasts. Time now for the Bloomberg Sports Update

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Speaker 2: with John stash Hour.

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Speaker 10: John here, I'm busy tonight in the NBA, a twelve

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Speaker 10: game swait including the top two teams in the West

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Speaker 10: meeting in Oklahoma City, Minnesota won one oh seven, one

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Speaker 10: oh one, and the Timberwolves have a one game lead.

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Speaker 10: Lakers were in Houston. There's some history between Lebron James

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Speaker 10: and the Rockets Dylan Brooks, and in the second half,

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Speaker 10: Brooks hit Lebron in the face. Anthony Davis said later

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Speaker 10: he should have been kicked out of the game. The

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Speaker 10: Rockets were up by thirty at one point. They beat

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Speaker 10: the Lakers one thirty five till one nineteen. Top Rivers

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Speaker 10: first game on the bench from Milwaukee. The Bucks lost

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Speaker 10: at Denver one thirteen, one oh seven of the Kola

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Speaker 10: Yokud scored twenty five.

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Speaker 6: He had a triple double.

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Speaker 10: Phoenix won in Miami one eighteen to one oh five

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Speaker 10: that he had now lost seven to row there just

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Speaker 10: a game over five hundred. Celtics found themselves down nine

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Speaker 10: in the first quarter, came back beating New Orleans one

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Speaker 10: eighteen to one twelve. Jason Tatum twenty eight points, ten rebounds,

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Speaker 10: eight assists. Wizards was just their ninth win of the

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Speaker 10: season one eighteen, one thirteen at San Antonio, the Sprus

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Speaker 10: only won ten. College Joads Dukes won three straight eleven

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Speaker 10: of the last twelve, now seventh of the nation. Who

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Speaker 10: Devil's one of Virginia Techs seventy seven sixty seven, Houston

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Speaker 10: ranked fourth, needed overtime one at Texas seventy six seventy two.

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Speaker 10: Jamal Seed scored twenty five. Jeeves and forty nine ers

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Speaker 10: getting ready for Super Bowl fifty eight in Las Vegas,

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Speaker 10: both had tough stretches during the regular season, the Niners

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Speaker 10: had a three game losing streaking in October, though are

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Speaker 10: fourteen and two. Outside of that that, Chiefs had an

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Speaker 10: eight game stretcher, they went just three and five. Obviously,

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Speaker 10: have turned things around with three playoff wins. John stash

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Speaker 10: Ellen Bloomberg.

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Speaker 12: Sports from coast to coast, from New York to San Francisco,

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Speaker 12: Boston to Washington, DC, nationwide on Syrias Exam the Bloomberg

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Speaker 12: Business app in Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 1: Good morning, I'm Nathan Hager. The White House continues to

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Speaker 1: weigh its response to the drone attack that killed three

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Speaker 1: US soldiers over the weekend in Jordan, but President Biden

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Speaker 1: is trying to avoid a direct confrontation with Iran, the

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Speaker 1: country that backs the militant group blamed for that strike.

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Speaker 1: For the latest spear, joined by Roslind Matheson, Bloomberg's news

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Speaker 1: director for Europe, the Middle East and Africa, Ros, good morning.

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Speaker 1: Whatever the options are, it doesn't sound like they are

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Speaker 1: easy for this White House. What could the potential options be?

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Speaker 13: Well, it is, as you say, not easy at all.

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Speaker 13: It's a bit like weighing a scale, because you need

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Speaker 13: to have a response that sort of sends a strong

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Speaker 13: message from the US but doesn't tip things over in

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Speaker 13: terms of a full scale conflict potentially with Iran. So

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Speaker 13: the options range from the ultimate one, which is hitting

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Speaker 13: Iran directly a site in Iran directly by the US.

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Speaker 13: That's not something that's happened in quite some time, to

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Speaker 13: retaliating in other ways, which might be attacking Iranian assets

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Speaker 13: in a place like Syria or in Iraq or somewhere else.

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Speaker 13: Of course, they've already been conducting air strikes on the

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Speaker 13: Huthi militants in Yemen, also backed by Iran, so just

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Speaker 13: doing a repeat of that probably doesn't send that stepped

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Speaker 13: up message. Or maybe you know, Israel has sort of

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Speaker 13: made noises for quite some time about their desire potentially

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Speaker 13: to hit Iran themselves, maybe the US gives them a

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Speaker 13: pass to do so. So there's a whole range of

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Speaker 13: things that are potentially on the table. But again, the

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Speaker 13: end calculations, you say, is finding that response that is

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Speaker 13: a step up from what they've been doing so far,

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Speaker 13: but doesn't lead Aroun to do something even bigger in response.

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Speaker 1: Now, in response, the Foreign Minister of Iran has gone

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Speaker 1: on social media, the X platform, saying that the White

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Speaker 1: House knows full well the only solution to resolving the

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Speaker 1: crisis in the Middle East is political pushing diplomacy as

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Speaker 1: an option. But I mean, that's got to be a

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Speaker 1: tough cell, given that the US sees Iran behind so

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Speaker 1: many of the militant groups in the Middle East, not

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Speaker 1: the least of which is Hamas and Gaza.

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Speaker 13: What's interesting seeing the Iranian response in recent days, because,

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Speaker 13: for start, they sort of distanced themselves from this drone

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Speaker 13: attack on the US troops in Jordan. I'm saying that

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Speaker 13: was not something that they had ordered and in a

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Speaker 13: way down playing their ability to give instructions to these

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Speaker 13: proxies operating in these places. Perhaps that's deliberate, Perhaps there's

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Speaker 13: some reality in that, and that's that Iran doesn't control

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Speaker 13: these proxies as much as we think, and perhaps they

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Speaker 13: did act on their own regard. But certainly there's been

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Speaker 13: a bit of an effort, it seems, by Iran to

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Speaker 13: put some space between itself and this attack on US soldiers,

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Speaker 13: and as you say, sort of talk about diplomatic overtures

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Speaker 13: and measures. We do know there have been back channels

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Speaker 13: continuing between the US and Iran throughout. That's been acknowledged,

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Speaker 13: certainly by the US. Also, we know they're passing messages

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Speaker 13: to each other, so at least those lines of communication

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Speaker 13: remain open. But as you say, at this point, given

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Speaker 13: what happened in Jordan, the US will feel compelled in

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Speaker 13: some way to respond.

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Speaker 1: Now, I think the closest I've heard to the US

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Speaker 1: blaming Iran for this attack is saying that Tehran has

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Speaker 1: its fingerprints on the Jordan's strike. Does that point potentially

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Speaker 1: to how the US could respond to this?

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Speaker 13: It does a bit. As you say, they're all being

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Speaker 13: very very careful with language at the moment, including the US.

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Speaker 13: So you can see that from what we've been hearing

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Speaker 13: from the White House overnight, again both publicly and what

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Speaker 13: we know is happening in their conversations privately. But the

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Speaker 13: end result is simply that the US is going to

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Speaker 13: probably have to find some way to respond. The pressure

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Speaker 13: on the US President Joe Biden to do something is enormous,

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Speaker 13: not just from his own ranks, but also from Republicans

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Speaker 13: in the US, certainly some conservative quarters who are saying

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Speaker 13: he needs to hit Tehran outright. So there's public pressure

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Speaker 13: on him to do something and of course to hit

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Speaker 13: that right note in terms of the response. But least

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Speaker 13: of all, the US president does not want to be

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Speaker 13: pulling the US into a full conflict in the Middle

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Speaker 13: East in an election year.

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Speaker 1: And on the other side of the coin, I'd have

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Speaker 1: to think the president is facing pressure as well not

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Speaker 1: to royal the global economy because of the kind of

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Speaker 1: ripple effect that a direct conference whether I ran could have.

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Speaker 13: Well, that's right, and we've already seen the impact of

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Speaker 13: the disruption for some months now to shipping in the

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Speaker 13: Red Sea because of the hoothy attacks on shipping and

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Speaker 13: the longer routes that ships are having to take. We're

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Speaker 13: seeing that impact some of the global supply chain for produce,

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Speaker 13: for livestock, for parts for cars and so on, and

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Speaker 13: also for oil and gas. I mean, we're helped at

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Speaker 13: the moment by the fact that demand for oil has

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Speaker 13: been on a downtech. Our gas supplies plentiful in Europe,

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Speaker 13: So those disruptions are not feeding significantly into the market

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Speaker 13: or the real economy at the moment. But if you

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Speaker 13: talk about a full conflict with the Ruan, then you're

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Speaker 13: talking about major disruption to global supply, particularly again of

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Speaker 13: oil and gas, and certainly a knock on effect to

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Speaker 13: the global economy at that point. And that's something the

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Speaker 13: US President is very attuned to. A this is not

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Speaker 13: a moment the economy globally can afford that, and also

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Speaker 13: politically at home, can he afford that.

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Speaker 6: He then