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Speaker 1: Live from the Bloomberg Interactive Brooker Studios is Bloomberg day

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Speaker 1: Break for Wednesday, January eighteen. Coming up this hour. It's

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Speaker 1: day three of the World Economic Forum. We are in

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Speaker 1: Davos with the latest. The end tumbles after the Bank

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Speaker 1: of Japan keeps monetary settings unchanged. Secretary Yelling meets with

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Speaker 1: China's Vice Premier in a bid to manage tensions and

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Speaker 1: investors away key readings on inflation and retail sales babeled.

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Speaker 1: Congressman Santos has been assigned to House committee seats, whilst

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Speaker 1: the man accused of a deadly truck attack in Manhattan

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Speaker 1: is on trial. I'm Michael Vaughn More, I'm John Stasharon

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Speaker 1: Sports the de fleeted nets lost in San Antonio. The

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Speaker 1: next place tonight in the big upset at the Australian Open.

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Speaker 1: That's all's trendy ahead on Bloomberg Daybreak on Bloomberg eleven three,

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Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one

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Speaker 1: oh six one, Boston, Bloomberg nine sixties and Francisco Sirius

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Speaker 1: x M one nine team, and around the world on

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Speaker 1: Bloomberg Radio dot Com and via the Bloomberg Business. Good morning,

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Speaker 1: I'm Nathan Hagar and I'm kerin Moscow. Here are the

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Speaker 1: stories we're following today. Let's get to the latest from Davos.

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Speaker 1: It is day three of the World Economic Forum GIT

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Speaker 1: to Gopinath, the International Monetary Funds number two official, is there.

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Speaker 1: She tells us the global economy is showing signs of

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Speaker 1: resilience and China is a key. We expect to see

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Speaker 1: China's growth recover later this year, and also it has

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Speaker 1: that has positive spiller was for the rest of the world.

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Speaker 1: We've certainly seen more engagement between the U S and China.

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Speaker 1: I think one important meeting was what happened at the

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Speaker 1: Leader Summit in Bali in November between Prison Biden prison

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Speaker 1: Ugene Pink. That was a positive assigned. The idea was

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Speaker 1: to put the floor on their relationship. To Gopinath with

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Speaker 1: the i m F made those comments in an interview

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Speaker 1: with Bloomberg's Francine la Qua. Meantime, Nathan, we're watching for

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Speaker 1: more signs of improvement in US China relations. Treasury Secretary

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Speaker 1: Janet Yellen has held her first face to face meeting,

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Speaker 1: which Chinese Vice Premier Leo ha and Zurich and Bloomberg

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Speaker 1: Washington correspondent Joe Matthew has more. It's at the beginning

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Speaker 1: of a trip that she is making to Africa, which

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Speaker 1: is important. It's part of the strategy to try to

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Speaker 1: find elements around the world that that that can align

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Speaker 1: with the United States policy here and not China for

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Speaker 1: that matter. They've met three times by video conference, and

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Speaker 1: he's gonna be leaving his post when President she unveils

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Speaker 1: his new government in March, so this could be a

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Speaker 1: bit of a farewell conversation. Bloomberg's Joe Matthew reports that

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Speaker 1: during today's meeting, Secretary Yellen said the US and China

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Speaker 1: need to manage their differences and prevent competition from turning

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Speaker 1: into conflict. Turning back to markets, now, Karen, we're seeing

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Speaker 1: the yen get weaker this morning, trading at one twenty

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Speaker 1: nine point four four against the dollar. The move comes

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Speaker 1: after the Bank of Japan made no changes to its

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Speaker 1: yield curve control program. Bloomberg Daybreak Asia anchor Brian Curtis

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Speaker 1: has more. This was the b o J pushing back

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Speaker 1: against market speculation of change. The b o J double

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Speaker 1: down on its stimulus program, leading to huge swings in

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Speaker 1: bond yields and the end the b o J made

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Speaker 1: no key changes. That was more or less expected by economists,

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Speaker 1: but traders were betting that the yield curve control policy

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Speaker 1: would be altered or scrapped. The b o J said no,

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Speaker 1: and in effect we're content to stay at odds with

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Speaker 1: other central banks. Brian Curtis, Bloomberg debris greay, Brian, thank you.

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Speaker 1: In the UK this morning, data show inflation coming in

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Speaker 1: lower for the second month in a row. And let's

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Speaker 1: go live to London and get the details of a

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Speaker 1: Bloomberg's you win, pass you and good morning, Good morning,

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Speaker 1: Karen and Nathan. Consumer prices in the UK rose ten

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Speaker 1: point five percent in December from a year ago. That's

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Speaker 1: the second time that inflation has eased from its peak

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Speaker 1: above eleven percent back in October. But prices in Britain

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Speaker 1: are still increasing at five times the official two percent targets,

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Speaker 1: and that means another tough call for the Bank of

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Speaker 1: England at they're meeting on February first in London. I'mu

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Speaker 1: and pot Spoinberg debreak you and thank you. Interest rates

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Speaker 1: are also in focus at the European Central Bank their

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Speaker 1: speculation the e c B could slow its pace of hikes,

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Speaker 1: but Governing Council member Francois v Roy de Gallo is

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Speaker 1: pushing back at that idea. We caught up with him

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Speaker 1: at the World Economic Forum. Let me remind you of

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Speaker 1: the words of President Leaguard. It's her last press conference

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Speaker 1: in December. We should expect to raise weights at the

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Speaker 1: pace of fifty basis points for a period of time. Well,

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Speaker 1: the words are still valid today, but again we are pragmatic.

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Speaker 1: ECB Governing Council member Francois vi Roy de Gallo says

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Speaker 1: it's too soon to talk about the size of an

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Speaker 1: infrastrate hike in March. Well, back here in the US,

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Speaker 1: Nathan investors are waiting for two key readings on the

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Speaker 1: economy before the opening bell and Bloomberg's Michael McKee has

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Speaker 1: a preview of retail sales and PPI data for December.

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Speaker 1: Earlier holiday spending and inflation are expected to take a

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Speaker 1: bite out of December retail sales sales were up a

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Speaker 1: lot in October and if cooled since and are even

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Speaker 1: lower on an inflation adjusted basis. There may be some

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Speaker 1: good news on inflation, however, producer prices are FO asked

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Speaker 1: to have fallen on both a month over month and

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Speaker 1: annual basis. That likely would reinforce investor perceptions the feds

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Speaker 1: cumulative rate hikes are affecting inflation. Michael McKey Bloomberg Daybreak,

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Speaker 1: All right, Mike, thanks. The SMP five hundred's coming off,

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Speaker 1: its first loss in five days. Is disappointing earnings from

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Speaker 1: Goldman Sachs Way on stocks. Wells Fargo Securities head of

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Speaker 1: equity strategy Chris Harvey says there is room to go

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Speaker 1: lower from here. We think there's downside the DRED, but

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Speaker 1: ultimately do recover, right. We we do think that we

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Speaker 1: end up higher for DRED is the high for this year,

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Speaker 1: and we do think we get there. We think that again,

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Speaker 1: what you're facing is more of an economic malaise, not

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Speaker 1: a sharp sell off, not something that that's going to

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Speaker 1: be horrific, and as a result, we can muddle through that.

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Speaker 1: Wells fargoes. Chris Harvey, like so many other strategists, says

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Speaker 1: FED policy will be key for the path of equities

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Speaker 1: this year. Well. Returning to corporate News now, Nathan, and

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Speaker 1: we're seeing more job cuts in the tech industry, Let's

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Speaker 1: get the latest Live with the Bloomberg Steve Rappaport's Steve

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Speaker 1: good Good morning, Karen and Nathan. Add Microsoft to the

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Speaker 1: list of tech companies tightening the belt. The software giant

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Speaker 1: plans to slash jobs in various engineering divisions today. The

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Speaker 1: number of cuts is not clear, but a person familiar

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Speaker 1: with the matter tells Bloomberg the reduction will be significantly

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Speaker 1: larger than previous rounds of layoffs. The company stock closed

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Speaker 1: up yesterday by nearly half of a percent. Shares are

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Speaker 1: down slightly in pre market trading. Live in New York.

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Speaker 1: I'm Steve Rappaport, Bloomberg Daybreak. Thank you, Karen. It's forty

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Speaker 1: four degrees in Central Park. We're looking for sunshine today

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Speaker 1: and highs in the low fifties. It will turn cloudy tonight.

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Speaker 1: We'll get down to the up for thirties. Time not

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Speaker 1: to take a look at some of the other stories

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Speaker 1: making news in New York and around the world. Good morning,

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Speaker 1: Michael barn Good morning, Nathan. Despite being accused of violating

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Speaker 1: campaign finance laws and falsifying his resume, newly elected New

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Speaker 1: York Congressman George Santos is taking up his duties in Washington.

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Speaker 1: He's been assigned on two committees. It comes as calls

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Speaker 1: for the Long Island representative to resign are growing from

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Speaker 1: his District three and among lawmakers. Another New York congressman,

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Speaker 1: Democrat Richie Torres, says he has asked the Federal Elections

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Speaker 1: Commission to look into the campaign finance allegations tours. Speaking

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Speaker 1: to the adversary group Concerned Citizens of n Y three,

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Speaker 1: how to message for Santos, This will not end well

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Speaker 1: for you. You should resign in order to put to

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Speaker 1: rest the national nightmare you're creating, not only for yourself,

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Speaker 1: but for the people of New York three who are

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Speaker 1: being denied the representation that they deserve. Santos has sense

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Speaker 1: refused to step down. The Biden administration remains under pressure

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Speaker 1: to talk about the discovery of classified documents in the

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Speaker 1: President's home and think tank office. White House attorneys say

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Speaker 1: they turned in those documents voluntarily. White House Press Secretary

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Speaker 1: Kurin Jean Pierre, We're going to continue to uh as

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Speaker 1: we have said, fully cooperate with the Department of Justice.

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Speaker 1: We're going to fully cooperate with the President's team is

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Speaker 1: going to fully put with the special counsel. Republicans are

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Speaker 1: demanding investigations. However, the Biden administration is accusing the GOP

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Speaker 1: of hypocrisy, saying they showed little interest in investigating Donald

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Speaker 1: Trump took hundreds of classified documents to his Mara Lago home.

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Speaker 1: Ci Fulo Sipov is on trial this week on terror,

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Speaker 1: rism and murder charges in New York City. Thirty say

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Speaker 1: he is responsible for the deadly terror attack on Halloween

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Speaker 1: in seventeen in Manhattan. He is accused of driving a

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Speaker 1: rented truck down a bike path along the West Side Highway,

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Speaker 1: mowing down pedestrians and writers, killing eight and injuring many more.

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Speaker 1: Prosecutors say he wanted to join ISIS. The chief of

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Speaker 1: Ukraine's National Police says a helicopter crash and a Kiev

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Speaker 1: suburb has killed sixteen people. Those killed include Ukraine's Interior

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Speaker 1: minister and two children. Global News twenty four hours a

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Speaker 1: day on air and on Bloomberg Quittake, powered by more

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Speaker 1: than seven hundred journalists and analysts more than a hundred,

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Speaker 1: twenty countries. Michael Barrn, this is Bloomberg, Nathan Michael, thank

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Speaker 1: you time for a Bloomberg sports update. Brought to you

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Speaker 1: by Tri State OUTI good morning, John stanshawer morning, and

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Speaker 1: Nathan upset at the Australian Open, or I fail at

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Speaker 1: out the top seed in defending champion, the winner of

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Speaker 1: a record twenty two Grand slams out in the second

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Speaker 1: round and it was not closed, beating straight sets by

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Speaker 1: twenty seven year old American Mackenzie McDaniel, former n C

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Speaker 1: Double A champion u C l A. He's ranked sixty

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Speaker 1: five the dall seam Bothered by a hip injury, American

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Speaker 1: Francis Tiafo one straight sets, so to Jess Pagoula. She's

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Speaker 1: the third seed on the women's side, already without Kevin Durant,

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Speaker 1: Kyrie irving the late scratch for the Nets in San

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Speaker 1: Antonio like injured calf, and sure enough the Spurs one

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Speaker 1: one oh six to ninety eight. Keldon Johnson scored thirty

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Speaker 1: six no one for Brooklyn, hit for even twenty and

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Speaker 1: the Nets were three of twenty three on three pointers.

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Speaker 1: Nixon wizards. Tonight at the Garden, the Islanders host the

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Speaker 1: NHL leading Bruins. Brian dave Ball has already taken the

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Speaker 1: Giants to a place no one figured they'd be at

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Speaker 1: the division play else but not satisfied. Next stop Philadelphia.

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Speaker 1: Good to move on, but you gotta put that in

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Speaker 1: the past really quick and get to the preparation on

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Speaker 1: this week's opponent, which um number one seed going to

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Speaker 1: the East, that beat us twice. You got eight pro bowlers,

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Speaker 1: six all pros, and they can get your attention real quick,

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Speaker 1: so we'll get a lot of work to do. Saturday night,

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Speaker 1: fifth ever playoff game between the two teams. They both

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Speaker 1: won twice. The Giants have not won in Philly since

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Speaker 1: two thousand thirteen. Has forty five year old Tom Brady

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Speaker 1: weighs his NFL future, So does thirty nine year old

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Speaker 1: Aaron Rodgers. He said he's not ready to make a decision,

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Speaker 1: but says that the Packers want to go young and

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Speaker 1: he wants to keep playing. It have to be with

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Speaker 1: a different team. Rob Gronkowski says he considered coming out

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Speaker 1: of retirement again, decided against it, but if he did,

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Speaker 1: it was gonna be for Buffalo, the team he grew

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Speaker 1: up looking for. Live from coast to coast, from New

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Speaker 1: York to San Francisco, Boston to Washington, d C. Nationwide

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Speaker 1: on sirius X amp, the Bloomberg Business app, and bloom

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Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan

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Speaker 1: Hagar taking you back to Davos now bringing you some

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Speaker 1: of our conversations from day three of the World Economic Forum.

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Speaker 1: Managing Director of the International Monetary Fund, Gita Gopinath is

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Speaker 1: forecasting the year ahead for the global economy and the

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Speaker 1: influence of US and China relations. In a conversation with

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Speaker 1: Bloomberg's Francine la Quax, Gopinat says it is going to

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Speaker 1: be a rocky first half of the year as several

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Speaker 1: countries battle inflation and manage geopolitical risks. At the same time,

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Speaker 1: she thinks China's reopening is a key stimulus for the

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Speaker 1: global economy and as a result US China relations as well.

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Speaker 1: Let's listen in to part of that conversation. Now, you

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Speaker 1: seem a bit more optimistic than maybe a couple of

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Speaker 1: months ago. So overall, are you leading towards a better

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Speaker 1: forecast for the world economy this year? In terms of

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Speaker 1: the overall foecust We will have the south at the

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Speaker 1: end of January, but it will be in the ballpark

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Speaker 1: of what we put out in October. So I think

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Speaker 1: the positive way to think about it is, you know,

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Speaker 1: after going through about three rounds of downgrades, at least

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Speaker 1: we don't have a worse outcome that we're looking at

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Speaker 1: this time around. The positive news is that we have

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Speaker 1: global growth for the bottoming out of this year. It

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Speaker 1: improves towards the second half of this year and then

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Speaker 1: into four and that's because that we've seeing signs of resilience.

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Speaker 1: We have China that's ripped off with zero COVID policy,

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Speaker 1: so we're going to see some improvement towards the end

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Speaker 1: of the year. But again, this is still a tough here.

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Speaker 1: It is a tough here. But do you think inflation

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Speaker 1: has peaked? And if inflation speak doesn't make it again

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Speaker 1: much easier from the from the second half, is that

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Speaker 1: the main thing that would make a difference. Our expectation

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Speaker 1: is that headline inflation has peaked, But when it comes

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Speaker 1: to the more sticky components of inflation, which is inflation

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Speaker 1: services sector inflation, there are countries where that's still trending up.

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Speaker 1: In the US, we've seeing signs of its slowing, but

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Speaker 1: we're gonna have to wait for a few more months

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Speaker 1: of the kind of good data that we suffering come

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Speaker 1: out of the US just to start thinking that, Okay,

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Speaker 1: now we're truly on the part towards the two percent target.

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Speaker 1: I think one three policy will have to stay the

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Speaker 1: course through three git. How are you expecting the China

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Speaker 1: reopening to go ahead? So today we also have Janet Yellen,

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Speaker 1: Treasury Secretary, meeting with the Vice Primery of China in Zurich.

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Speaker 1: Are you expecting a rap prosh ball between the two

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Speaker 1: and does that help with the world economy? I mean, firstly,

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Speaker 1: we have a China reopening, which literally means that they're

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Speaker 1: going to travel two different paths of the world after

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Speaker 1: being shut out for a couple of years. So that

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Speaker 1: with the increasing mobility, we expect to see China's growth

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Speaker 1: recover later this year. And also it has that has

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Speaker 1: positive spillers for the rest of the world. We've certainly

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Speaker 1: seen more engagement between the US and China. I think

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Speaker 1: one important meeting was what happened at the Leader summit

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Speaker 1: in Bali in November between prison by didn President Juan

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Speaker 1: pink That was a positive signed. The idea was to

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Speaker 1: put a floor on their relationship, and I think these

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Speaker 1: meetings are critical. I mean, these are the two largest

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Speaker 1: economies of the world. It's important for the rest of

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Speaker 1: the world that they work closely together. How worried are

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Speaker 1: you about the US sailing? It really should not be

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Speaker 1: something we are even second guessing at this point. Right

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Speaker 1: the US has the highest investment grade rating in the world.

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Speaker 1: There's already enough uncertainty, there are enough risks that we

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Speaker 1: have to deal with. This should not be an additional

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Speaker 1: risk that the US or the world should have to

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Speaker 1: deal with. But is it. I feel like a lot

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Speaker 1: of the charters here on Dables and elsewhere, is that,

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Speaker 1: actually we could see that sailing. It could be difficult

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Speaker 1: to get through it, and we could even see US

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Speaker 1: being downgraded. There was certainly a risk to it. I mean,

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Speaker 1: there is certainly, given the dynamics that we have in

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Speaker 1: the US Congress, there will certainly be some tensions around it.

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Speaker 1: But I really hope they just get the job done

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Speaker 1: and do the right thing. We just moved the death ceiling.

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Speaker 1: Do what's needed to make sure that this is not

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Speaker 1: in question. I know you focus a lot of your

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Speaker 1: energy on talking about fragmentation, and actually I guess the

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Speaker 1: pitfalls of that. Are we seeing a more fragmented world

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Speaker 1: than we did even last year. The world has been

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Speaker 1: moving towards fragmentation, say over the last few years. They

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Speaker 1: started with the U. S. China trade tensions before the pandemic.

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Speaker 1: Now you've had the pandemic. In the war, everybody is

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Speaker 1: very concerned about economic security and national security. You know,

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Speaker 1: those are good things. It's important for countries to build resilience.

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Speaker 1: But we're also seeing that as kind of ensuring, which

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Speaker 1: is bringing production back home. And that's if we move

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Speaker 1: in that direction, I think it's just going to be

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Speaker 1: costly for both households and for farms everywhere. We've seen

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Speaker 1: quite a lot of vlatility in the market because the

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Speaker 1: b A jayput or didn't put in place. Do you

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Speaker 1: support to those kind of moves. So the Bank of

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Speaker 1: Japan has a pretty complex decision to deal with unlikes

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Speaker 1: the other major economies of the world. Yes, they have

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Speaker 1: inflation going going up, but the risk of inflation sliding

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Speaker 1: back well below their target remains high. So they have

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Speaker 1: to do this complex straight off keeping monetary policy accommodative

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Speaker 1: while ensuring that it's consistent with the inflation data that's

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Speaker 1: coming up. We have actually a mission in Japan Right

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Speaker 1: now on the ground, We're gonna have a report coming

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Speaker 1: out of Japan relatively suitor to their future. This is

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Speaker 1: Bloomberg Daybreak Today, your morning brief on the stories making

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