WEBVTT - The US and China Spar Over Suspected Balloons

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<v Speaker 1>Lie from the Bloomberg Interactive Brooker Studios. This is Bloomberg

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<v Speaker 1>day Break for Monday, February thirteen. Coming up today, the

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<v Speaker 1>US military shoots down a fourth object in the skies

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<v Speaker 1>in a little over a week. China accuses the US

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<v Speaker 1>of illegally flying balloons more than ten times since the

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<v Speaker 1>death toll approaches thirty five thousand in the earthquake in Turkey,

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<v Speaker 1>and all Street braces for a key inflation report jury

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<v Speaker 1>in New York City today considered the death sentence for

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<v Speaker 1>at Islamic extremist. Plus will Manhattan see three pandemic in

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<v Speaker 1>office work schedules. I'm Michael Blar, more ahead. I've done

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<v Speaker 1>stas shower and sports than kids as city chiefs one

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<v Speaker 1>super Bowl met me seven and Phoenix they beat Philadelphia

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<v Speaker 1>thirty five. Patrick Mahomes named m v P. That's all

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<v Speaker 1>straight ahead on Bloomberg day Break, The business news you

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<v Speaker 1>need disturb your day, and just one fifteen minute podcast

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<v Speaker 1>each pointing on Apples, Spotify, the Bloomberg Business Appen everywhere

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<v Speaker 1>you get your podcasts. Good morning, I maybe Morris and

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<v Speaker 1>I'm career in Moscow. If here are the stories we're

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<v Speaker 1>following today. The US military has taken out of fourth

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<v Speaker 1>object in the skies in eight days. The Pentagon hell

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<v Speaker 1>the briefing last night during the Super Bowl to answer

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<v Speaker 1>questions about what these objects are and where they're from.

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<v Speaker 1>General Glenn Van Herk Is, commander of the North American

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<v Speaker 1>Aerospace Defense Command. They're similar in size, similar in speeds

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<v Speaker 1>that go with the wind on these objects that we've seen.

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<v Speaker 1>As far as specific shapes, we've got to get our

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<v Speaker 1>hands on those. Connecticut Representative Jim Hims tells NBC's Meet

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<v Speaker 1>the Press, heard Sundays on Bloomberg Radio that the US

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<v Speaker 1>is seeing more unidentified objects in our skies because we're

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<v Speaker 1>looking for them. Most of our sensors and most of

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<v Speaker 1>what we were looking for didn't look like balloons. Now,

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<v Speaker 1>of course we're looking for them, so I think we're

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<v Speaker 1>probably finding more stuff. Recovery efforts are underway for all

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<v Speaker 1>four objects, including the suspected spy balloon at the bottom

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<v Speaker 1>of the Atlantic Ocean. Well, I mean. The war of

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<v Speaker 1>words continues this morning over the balloon controversy. China says

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<v Speaker 1>the US has repeatedly flown balloons over its country. We

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<v Speaker 1>gain more from Bloomberg's Derek Wallbang, China says US balloons

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<v Speaker 1>trespassed over ten times since January, So now there's getting

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<v Speaker 1>to be a bit of a tip for Tatton back

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<v Speaker 1>and forth about who's doing what. All of this is

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<v Speaker 1>sounding very much unlike that detent that we were hearing

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<v Speaker 1>about out of the G twenty leaders meeting in Bali,

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<v Speaker 1>where Season Ping and Joe Biden we're talking about and

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<v Speaker 1>easing of ties and wanting to have senior officials meeting

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<v Speaker 1>and things, and and this has really gotten in the

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<v Speaker 1>way of that, and Bloombergs Derek Wallbang says. Media reports

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<v Speaker 1>at Asia say China is preparing to take down an

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<v Speaker 1>unidentified object found flying over its waters. And now we

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<v Speaker 1>turn to the latest on those two massive earthquakes that

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<v Speaker 1>struck Turkey and Syria last week. The death toll has

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<v Speaker 1>climbed in near thirty five thousand people. That has criticism

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<v Speaker 1>mounting on Turkey's government. Bloomberg simmendemic in reports from ms Dembul,

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<v Speaker 1>survivors and opposition policies are saying that the government was

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<v Speaker 1>just ill equipped and too slow in responding, especially on

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<v Speaker 1>the first day, missing a critical window of saving more people.

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<v Speaker 1>And there's all also huge complaints about shoddy construction Bloomberg

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<v Speaker 1>Simon Demo cans as dozens of contractors are under investigation

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<v Speaker 1>for shoddy construction following the earthquake. Three have been arrested. Well,

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<v Speaker 1>I mean, much more ahead of these developing stories throughout

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<v Speaker 1>the broadcast, but first we turn our attention to a

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<v Speaker 1>Super Bowl classic that is an enveloped in controversy. This

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<v Speaker 1>morning at Bloomberg, John Stashower joins US Live with the details. John,

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<v Speaker 1>good morning, give me wanning care in the kN City.

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<v Speaker 1>Chiefs went fifty years without winning or even playing in

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<v Speaker 1>the Super Bowl. This was their third the last four years,

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<v Speaker 1>and their second victory. This one, like the previous one,

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<v Speaker 1>a come from behind. When Chiefs only had the ball

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<v Speaker 1>for eight minutes of the first half, They trailed the

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<v Speaker 1>Eagles by ten, but scored three second half touchdowns that

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<v Speaker 1>go up by eight. Philadelphia then tied the game k

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<v Speaker 1>C one and a light field goal, help by a

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<v Speaker 1>questionable holding penalty again the Eagles. Patrick Mahomes named Super

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<v Speaker 1>Bowl m v P. Much more coming up in sports,

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<v Speaker 1>John stash Were Bloomberg Daybreak. All right, thank you, John,

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<v Speaker 1>We're gonna have more last night's game coming up in

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<v Speaker 1>our sports report, but first we turned to markets. Features

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<v Speaker 1>are mixed following the worst week for stocks since December.

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<v Speaker 1>Morgan Stanley strategist Mike Wilson says there's more selling ahead.

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<v Speaker 1>Wilson sees the SMP five ending the year at thirty

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<v Speaker 1>nine hundred, down nearly five percent from current levels. He

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<v Speaker 1>says stocks will fall as earnings estimates come down, before

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<v Speaker 1>rebounding in the second half well amy A catalyst for

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<v Speaker 1>stocks this week could come tomorrow, with the release of

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<v Speaker 1>a key inflation report. FED officials have been warning Wall

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<v Speaker 1>Street not to get carried away about a quick drop

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<v Speaker 1>and inflation, and Bloomberg Economics correspondent Michael McKee says tomorrow's

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<v Speaker 1>report will luckily prove their point. The CPI report, out

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<v Speaker 1>Tuesday morning, is forecast to show a big jump in

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<v Speaker 1>headline inflation during the month, in part because of oil prices.

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<v Speaker 1>Core expected to be unchanged, but both will be affected

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<v Speaker 1>by a rewaiting of sectors within the cp I to

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<v Speaker 1>better reflect what people are actually spending on. The annual

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<v Speaker 1>inflation rate will go down, but to the FED, the

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<v Speaker 1>most recent data matters the most. The other major data

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<v Speaker 1>point for the week is Wednesday's release on retail sales

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<v Speaker 1>for January. The forecast is for a big rebound after

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<v Speaker 1>a December decline. Both numbers likely reinforcing the Fed's argument

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<v Speaker 1>for more rate hikes. Ahead Michael McKey, Bloomberg Daybreak, Thanks,

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<v Speaker 1>Mike Eltwear on Wall Street. The boss at Goldman Sachs

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<v Speaker 1>says he should have slashed jobs sooner. Let's get those details.

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<v Speaker 1>Live with Bloomberg. Steve Rappaport, Good morning, Steve, Good morning,

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<v Speaker 1>Amy and Karen. David Solomon says he should have followed

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<v Speaker 1>his gut when it comes to job cuts. In a

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<v Speaker 1>private meeting with hundreds of Goldman's partners, Solomon lamented he

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<v Speaker 1>was too slow in reducing the workforce as the environment

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<v Speaker 1>was growing more complicated in the second quarter last year.

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<v Speaker 1>That's according to a report in The Financial Times, Goldman

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<v Speaker 1>Sacks slashed about thirty hundred jobs last month following a

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<v Speaker 1>larger than expected spike in expenses and plumbing revenue and profit.

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<v Speaker 1>Live in New York. I'm Steve Rappaport Bloomberg Daybreak. All right, Steve,

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<v Speaker 1>thank you, and again, futures are little change this morning,

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<v Speaker 1>at least SMP and down futures Nasdack futures are higher,

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<v Speaker 1>up a quarter percent or thirty points. The decks in

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<v Speaker 1>Germany's up a quarter percent to ten. Your treasury down

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<v Speaker 1>one thirty second. You have three point seven three percent.

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<v Speaker 1>They yield on the two year four point five three percent,

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<v Speaker 1>and NIMEX screwed oil is down one and a third percent.

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<v Speaker 1>Straight ahead, we have your latest local headlines, plus a

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<v Speaker 1>check of sports, and this is Bloomberg. Hey degrees in

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<v Speaker 1>New York, clouds give way to sunshine. Temperatures will stay

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<v Speaker 1>mild for February. We're going up to fifty five today

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<v Speaker 1>with clear skies tonight, down to thirty five, sunshine and

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<v Speaker 1>breezy tomorrow, going up to fifty tom Now to look

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

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<v Speaker 1>York and around the world. For that, we're joined by

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<v Speaker 1>Bloomberg's Michael bar Good morning, Michael, Good morning Amy. A

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<v Speaker 1>jury today will begin considering whether an Islamic extremist should

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<v Speaker 1>be sentenced to death for killing eight people on a

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<v Speaker 1>New York City bike path. Say fulusip Off was convicted

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<v Speaker 1>last month in the seventeen attack in which he mowed

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<v Speaker 1>down bicyclists with a truck. The same jury that found

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<v Speaker 1>ship Off guilty will now hear from additional witnesses in

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<v Speaker 1>the trial's penalty phase. The Philippines has accused a Chinese

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<v Speaker 1>Coastguard ship of hitting a Philippine Coastguard vessel with a

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<v Speaker 1>military grade laser and temporarily blinding some of its crew

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<v Speaker 1>in the disputed South China Sea. The Philippine officials says

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<v Speaker 1>it's the first time China has used lasers and caused

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<v Speaker 1>injury to Filipino personnel. Senate Majority Leader Chuck Schumer continued

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<v Speaker 1>to call on How Speaker Kevin McCarthy to publicly present

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<v Speaker 1>the Republican's budget proposal over the debt ceiling battle. Senator

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<v Speaker 1>Schumer says if he's prepared to hold the country's financial

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<v Speaker 1>future hostage by refusing to raise the debt ceiling, should

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<v Speaker 1>be opened about what these Republican demands for the country's

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<v Speaker 1>budget are. He wants to attach certain spending cuts to

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<v Speaker 1>do this. Hey, where is your plan, Mr McCarthy, He

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<v Speaker 1>says he wants cuts. We asked him which ones. He

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<v Speaker 1>won't say any Meanwhile, Republican Representative James Kohmer says that

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<v Speaker 1>Social Security and Medicare will not be among those cuts

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<v Speaker 1>and slams Democratic leaders for claiming they would be. When

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<v Speaker 1>you get to the point to where we are now,

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<v Speaker 1>where we've got to make cuts, it's a lot tougher.

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<v Speaker 1>We're not going to cut Social Security or Medicare. We've

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<v Speaker 1>been very clear about that. It's it's very disappointing that

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<v Speaker 1>the President and Chuck Schumer would continue to try to

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<v Speaker 1>scare seniors. Representative Komer and Senator Schumer spoke on ABC

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<v Speaker 1>S this week, which can be heard Sundays on Bloomberg.

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<v Speaker 1>New York City is bustling with office workers again, but

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<v Speaker 1>the end person work week has shrunk to Tuesday, Wednesday,

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<v Speaker 1>and Thursday. New data on in person work and analyze

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<v Speaker 1>by Bloomberg News shows Manhattan workers are spending at least

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<v Speaker 1>two twelve twelve point four billion less a year due

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<v Speaker 1>to about fewer days in the office. Global News twenty

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<v Speaker 1>four hours a day, powered by more than journalists, analysts

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<v Speaker 1>and over a hundred twenty countries. I'm Michael bar this

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<v Speaker 1>is Bloomberg Gaming. All right, thank you, Michael Ton now

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<v Speaker 1>for the sports report brought to you by Try State

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<v Speaker 1>OUTI here's Jon stash Our Samy. Three years after Kansas

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<v Speaker 1>Cy Chiefs won the Super Bowl by coming from behind

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<v Speaker 1>the second half. They did it again in Phoenix. They

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<v Speaker 1>trailed Philadelphia by senate a halftime Chiefs couldn't stop the Eagles,

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<v Speaker 1>who held Casey the only eight minutes of first half

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<v Speaker 1>possession time. But things changed second half. Patrick Mahomes engineered

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<v Speaker 1>to seventy five yard ten drives. The second one ended

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<v Speaker 1>and is scored by Cadarius Tony, who was the Giant's

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<v Speaker 1>first round draft pick last year. They traded him to

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<v Speaker 1>the Chiefs and Tony was hardly done there over in

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<v Speaker 1>shorter punt and Tony will take it low at the

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<v Speaker 1>thirty five. Now cuts back to the right. He's got

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<v Speaker 1>a wall set. If you can get to the edge,

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<v Speaker 1>they you need to pluck the putter. They do. Tony's

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<v Speaker 1>at the forty, up the side line. At the thirty,

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<v Speaker 1>he's at the twenty. Tony put the plot trying to

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<v Speaker 1>stay in place down to the five yards. Fredy have

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<v Speaker 1>to call Super Bowl record sixty five yard return set

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<v Speaker 1>up another case He touchdown, put him up by eight.

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<v Speaker 1>Eagles rallied to tie on Jail and Urtz is thir

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<v Speaker 1>t d run of the game outside of Super Bowl record.

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<v Speaker 1>He added the game tying two point conversion, but the

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<v Speaker 1>Chiefs drove My Home shook off his ankle injury for

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<v Speaker 1>a twenty six yard run. Eagles got called for a

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<v Speaker 1>costly holding penalty. A k C field goal gave them

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<v Speaker 1>the win thirty thirty five. My Home, three days after

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<v Speaker 1>be named regular season m v P named Super Bowl

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<v Speaker 1>m v P. Andy Reid beats his former team set

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<v Speaker 1>after the game, he expects to be back coaching the

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<v Speaker 1>Chiefs in three Who will be the Jets QB ESPN

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<v Speaker 1>report of the Jets have reached out to the Packers

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<v Speaker 1>inquiring about a trade for Aaron Rodgers and longtime Raiders

0:10:46.440 --> 0:10:48.480
<v Speaker 1>QB Derek Cart could be a free agent as soon

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<v Speaker 1>as today and he would be eligible to sign right away.

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<v Speaker 1>John Stash Edward Bloomberg Sports live from coast to coast,

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<v Speaker 1>from New York to San Francisco, Auston to Washington, d C.

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<v Speaker 1>Nationwide on Sirius x Amp of Bloomberg Business app and

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<v Speaker 1>Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm

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<v Speaker 1>Abe Morris. In the past eight days, the US military

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<v Speaker 1>has shot down four unidentified objects in North American airspace,

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<v Speaker 1>and now China says US balloons are flying illegally or

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<v Speaker 1>have been flying illegally in China's airspace at least ten

0:11:25.280 --> 0:11:28.000
<v Speaker 1>times in the past year. Let's get more on all

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<v Speaker 1>of this from Bloomberg News Managing editor Derek Wallbang in Singapore. Derek,

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<v Speaker 1>it is a pleasure to talk to you. Thanks so

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<v Speaker 1>much for taking the time with us. Oh, thank you

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<v Speaker 1>so much for having me. Uh, let's just start right away.

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<v Speaker 1>The response from China ten U S balloons at minimum

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<v Speaker 1>in the past year. Tell us about that. That is

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<v Speaker 1>what they said, Foreign Ministry spokesman and actually told reporters quote,

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<v Speaker 1>it's nothing rare for U S balloons to illegally enter

0:11:53.640 --> 0:11:59.640
<v Speaker 1>other countries airspace. Um added added that the US quote

0:11:59.640 --> 0:12:04.160
<v Speaker 1>needs to reflect upon itself and change it's wrong practice. Uh.

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<v Speaker 1>This is a sort of response about you know, you're

0:12:07.760 --> 0:12:10.920
<v Speaker 1>you're mad, You're you're worse, you're doing it to um,

0:12:10.960 --> 0:12:13.800
<v Speaker 1>you know sort of that that I guess one might

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<v Speaker 1>say a playground style back and forth. Um. But it's

0:12:17.120 --> 0:12:22.840
<v Speaker 1>really clear that the balloons or or whatever is going

0:12:22.920 --> 0:12:28.200
<v Speaker 1>on is is limiting that day to between the US

0:12:28.240 --> 0:12:29.760
<v Speaker 1>and China that you saw come out of the G

0:12:29.920 --> 0:12:35.240
<v Speaker 1>twenty and Bali in November. There had been ideas about

0:12:35.240 --> 0:12:40.200
<v Speaker 1>a warmer relationship. There had been uh talks about senior

0:12:40.280 --> 0:12:43.760
<v Speaker 1>level visits from one country to another. A lot of

0:12:43.800 --> 0:12:46.760
<v Speaker 1>that has been put on hold. And you're what you're

0:12:46.800 --> 0:12:50.880
<v Speaker 1>hearing right now is rhetoric that is suggesting going exactly

0:12:50.920 --> 0:12:56.080
<v Speaker 1>the opposite way, Uh from where where Joe Biden and

0:12:56.120 --> 0:13:00.079
<v Speaker 1>Hi Jimping were. Uh, we're signaling how do they it

0:13:00.240 --> 0:13:04.640
<v Speaker 1>passed this at this point? My question is whether the

0:13:04.720 --> 0:13:08.920
<v Speaker 1>US has been shooting down these objects. If China starts

0:13:08.960 --> 0:13:13.880
<v Speaker 1>shooting down these objects, does this escalate? Can it get worse? Well?

0:13:13.920 --> 0:13:16.400
<v Speaker 1>I think one of the things that it highlights to

0:13:16.520 --> 0:13:19.080
<v Speaker 1>me is I think I'd say two things here. One

0:13:19.559 --> 0:13:22.720
<v Speaker 1>is it highlights how much of that detent was built

0:13:22.720 --> 0:13:24.920
<v Speaker 1>on a sort of fragility, Right the U. S And

0:13:25.000 --> 0:13:29.560
<v Speaker 1>China fundamental differences, Uh, those didn't necessarily ease And if

0:13:29.640 --> 0:13:34.400
<v Speaker 1>it takes one weather balloon looking thing carrying whatever it

0:13:34.480 --> 0:13:38.320
<v Speaker 1>was carrying, crossing over the United States to completely upend

0:13:38.360 --> 0:13:41.679
<v Speaker 1>that what a fragile piece that had been built. A

0:13:41.800 --> 0:13:45.480
<v Speaker 1>second thing is I think that there is a bigger

0:13:45.559 --> 0:13:47.840
<v Speaker 1>awakening I guess I would say across the world to

0:13:48.000 --> 0:13:51.679
<v Speaker 1>this sort of what may be surveillance. Right, you're talking

0:13:51.720 --> 0:13:55.040
<v Speaker 1>about four items shot down over North America. You're talking

0:13:55.040 --> 0:14:00.480
<v Speaker 1>about a possible balloon like item overt over Latin America. Uh.

0:14:00.520 --> 0:14:04.880
<v Speaker 1>Taiwan said balloon style incursions are a regular thing. Uh.

0:14:04.920 --> 0:14:10.080
<v Speaker 1>And then the UK says that that Chinese surveillance balloons

0:14:10.080 --> 0:14:12.840
<v Speaker 1>may have been spying over Britain as well. So all

0:14:12.880 --> 0:14:17.280
<v Speaker 1>across there, you're you're having this bigger awareness of what's

0:14:17.320 --> 0:14:19.760
<v Speaker 1>going on. And additionally, I think I might I might

0:14:19.800 --> 0:14:22.960
<v Speaker 1>note any is that the U s policy on this

0:14:23.080 --> 0:14:24.720
<v Speaker 1>has moved rapidly, and I think a lot of the

0:14:24.720 --> 0:14:29.560
<v Speaker 1>world's policy has moved rapidly from um a curiosity and

0:14:29.680 --> 0:14:32.600
<v Speaker 1>wondering what should be done to just decisive action. We're

0:14:32.640 --> 0:14:34.560
<v Speaker 1>just going to shoot this right down, because you remember

0:14:34.600 --> 0:14:36.880
<v Speaker 1>that first one that went went over the US, right

0:14:36.880 --> 0:14:38.960
<v Speaker 1>across quite a lot of territory, quite a lot of days,

0:14:39.000 --> 0:14:42.720
<v Speaker 1>eventually gets taken out just off the coast of South Carolina.

0:14:43.160 --> 0:14:47.120
<v Speaker 1>Numbers two, three, and four went down real fast. You know,

0:14:47.200 --> 0:14:49.680
<v Speaker 1>I was gonna ask you about that very thing, because

0:14:49.680 --> 0:14:54.200
<v Speaker 1>they seemed to be comfortable watching it and tracking it

0:14:54.240 --> 0:14:57.600
<v Speaker 1>while it flew by, and once they got over you know,

0:14:57.760 --> 0:14:59.640
<v Speaker 1>out into the Atlantic. They were able to take that

0:14:59.760 --> 0:15:03.880
<v Speaker 1>first one down. But my question now then is is

0:15:03.920 --> 0:15:06.960
<v Speaker 1>this getting traction because they're being tracked now? Are they

0:15:07.000 --> 0:15:10.840
<v Speaker 1>tracking them more closely? There are these balloons of common

0:15:10.840 --> 0:15:12.840
<v Speaker 1>practice that the rest of us are just now becoming

0:15:12.880 --> 0:15:15.160
<v Speaker 1>aware of because of that balloon off the coast of

0:15:15.200 --> 0:15:18.080
<v Speaker 1>South Carolina. Well, I think that's a great question. And

0:15:18.080 --> 0:15:22.960
<v Speaker 1>the Defense Department told reporters the other day that they've

0:15:23.000 --> 0:15:27.480
<v Speaker 1>been more closely scrutinizing airspace at the altitudes that these

0:15:27.960 --> 0:15:32.280
<v Speaker 1>objects had been traversing, and including enhancing radar, which might

0:15:32.400 --> 0:15:37.160
<v Speaker 1>explain partly the increase in object detected recently. So it

0:15:37.200 --> 0:15:40.760
<v Speaker 1>may be in some way that you're finding more things

0:15:40.800 --> 0:15:43.760
<v Speaker 1>because you're looking for them right, Um, there may be

0:15:43.920 --> 0:15:47.640
<v Speaker 1>a certain additional awareness. I also think, I mean, surveillance

0:15:47.680 --> 0:15:50.600
<v Speaker 1>between great powers is not new. There's by efforts that

0:15:50.640 --> 0:15:54.080
<v Speaker 1>go on all the time. Nobody should be you know,

0:15:54.160 --> 0:15:56.800
<v Speaker 1>there's no no fainting couches needed for any of that.

0:15:57.040 --> 0:16:01.440
<v Speaker 1>But um, I think of this vehicular type of surveillance,

0:16:01.480 --> 0:16:04.240
<v Speaker 1>I think there's been a large increase in awareness and

0:16:04.240 --> 0:16:06.040
<v Speaker 1>also think that there's you know, as I mentioned that

0:16:06.080 --> 0:16:09.480
<v Speaker 1>there's been a large increase in certainty about what to

0:16:09.600 --> 0:16:13.479
<v Speaker 1>do about it when it comes, as well as uh,

0:16:13.560 --> 0:16:18.200
<v Speaker 1>you know, reactions that this is perhaps, uh not something

0:16:18.240 --> 0:16:20.360
<v Speaker 1>that people are willing to put up with. You see,

0:16:20.440 --> 0:16:23.360
<v Speaker 1>you see threats of sanctions, You see other sorts of

0:16:24.000 --> 0:16:28.000
<v Speaker 1>ties that get affected by this. So it's got a

0:16:28.040 --> 0:16:30.920
<v Speaker 1>little bit of a if you'll forgive the horrible pun.

0:16:31.320 --> 0:16:33.840
<v Speaker 1>These balloons get down, get shot down, and they make

0:16:34.160 --> 0:16:37.800
<v Speaker 1>a much bigger splash than just the than just the

0:16:37.880 --> 0:16:41.640
<v Speaker 1>question of whether or not you take them out. You're

0:16:41.680 --> 0:16:44.920
<v Speaker 1>listening to Bloomberg Daybreak today, your morning grief on the

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