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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: Oil is surging this morning. It's up about three percent,

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Speaker 1: trading at seventy four dollars twenty three cents for a

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Speaker 1: barrel of West Texas Intermediate. That's after the US and

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Speaker 1: Allies launched more than sixty air strikes overnight on Houthy

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Speaker 1: targets in Yemen. They're trying to stop the Iran back

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Speaker 1: groups shipping attacks in the Red Sea. Bloomberg's Nick Watams

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Speaker 1: has more on the challenges ahead for the White House.

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Speaker 3: The challenge for Joe Biden is he said, they wanted

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Speaker 3: to deter the Uthies, but they also don't want to

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Speaker 3: ignite a wider war. And the question is whether the

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Speaker 3: Huties will stand down let's see if somewhat unlikely, or

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Speaker 3: use this as a rallying cry told me, pursue their

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Speaker 3: aims both against Israel and CEC's firing Gaza and against

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Speaker 3: the United States in the Dallies.

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Speaker 1: Bloomberg's Nick Watams reporting the Hoothie say the attacks killed

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Speaker 1: five of their members and wounded six others, and they

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Speaker 1: are promising the strikes will not go unanswered.

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Speaker 2: Well back here in the US, Nathan, closing arguments have

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Speaker 2: been delivered and now oh, we wait for the judge's decision.

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Speaker 2: And then. A New York civil fraud trial of former

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Speaker 2: President Donald Trump and Bloomberg's Amy Morris reports.

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Speaker 4: New York Attorney General Letitia James is seeking three hundred

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Speaker 4: and seventy million dollars in fines and to bar Trump

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Speaker 4: from the New York real estate industry.

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Speaker 5: No matter how powerful you are, no no matter how

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Speaker 5: rich you are, that no one is above the law.

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Speaker 4: Appeals are likely, but this case could end Donald Trump's

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Speaker 4: role in New York real estate for good. Trump spoke

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Speaker 4: out in court attacking the judge overseeing the case and

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Speaker 4: Attorney General James. Later, he gave a press conference outside

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Speaker 4: the courtroom.

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Speaker 6: He's a political hack, the attorney general.

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Speaker 7: The judge is obviously extremely friendly with.

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Speaker 4: The group the Attorney General's office, as Trump orchestrated a

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Speaker 4: sweeping fraud in which he inflated his net worth to

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Speaker 4: obtain favorable loans. The judge expects to rule by January

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Speaker 4: thirty first, Amy Morris, Bloomberg.

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Speaker 6: Radio, Okaymie, thank you.

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Speaker 1: Meanwhile, President Biden's son Hunter May face a trial of

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Speaker 1: his own this summer, right in the middle of his

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Speaker 1: father's reelection care campaign. Hunter Biden has pleaded not guilty

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Speaker 1: to charges that he failed to pay taxes on millions

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Speaker 1: of dollars in foreign business income that followed the collapse

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Speaker 1: of a plea deal last year. The judge in Los

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Speaker 1: Angeles says he's considering a June twentieth trial date.

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Speaker 2: Well. Turning to the markets now, Nathan, we continue to

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Speaker 2: watch bitcoin. Following yesterday's historic Wall Street debut, the first

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Speaker 2: US exchange traded funds investing directly in the largest digital

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Speaker 2: currency finally went live, and we get the latest from

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Speaker 2: Bloomberg's John Tucker, John and Karen.

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Speaker 8: The batch of almost a dozen funds, including offerings from

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Speaker 8: investment powerhouses black Rock and Fidelity Investments, got off to

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Speaker 8: a strong start with two point three billion dollars exchanging

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Speaker 8: hands the gray Scale Bitcoin Trust, so the largest ever

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Speaker 8: first date turnover for an ETF. Gray Scale Investment CEO

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Speaker 8: is Michael Sonenshein.

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Speaker 3: Is just such a historic moment, in such a milestone,

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Speaker 3: So thrilled, feeling really good today.

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Speaker 8: Black Rock ice Hears Bitcoin Trust saw a billion dollars

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Speaker 8: change hands that's the fifth largest ETF launch on record.

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Speaker 8: Several firms turn to fee waivers in a bid to

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Speaker 8: stand out, offering their ETFs for free for the first

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Speaker 8: six or twelve months. One of the next stages of

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Speaker 8: Wall Street adoption it's going to be when options tied

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Speaker 8: to these ETFs are approved. A bitcoing this morning down

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Speaker 8: about half a percent to about forty six thousand dollars.

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Speaker 8: John Tucker, Bloomberg Radio, all.

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Speaker 6: Right, John, thank you.

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Speaker 1: Another focus for investors this morning turns to earnings, specifically

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Speaker 1: bank earnings. With four of Wall Street's biggest reporting today,

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Speaker 1: we get a preview from Bloomberg SHINELI, BASEK.

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Speaker 9: Investors will be watching for what the cost base looks like.

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Speaker 9: Has it gotten more expensive to operate and can they

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Speaker 9: keep those costs in lines under further pressure on certain

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Speaker 9: lines of revenue. Revenue might jump this year relative to

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Speaker 9: last year for some of these banks. Investors will be

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Speaker 9: watching for net interest income expectations at Bank of America, JP,

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Speaker 9: Morgan Wells Fargo, and City Group as interest rates start

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Speaker 9: to stabilize in twenty twenty four relative to the year before. Now,

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Speaker 9: the question is who's the big winner and how many

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Speaker 9: loans do Americans really need and how many of those

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Speaker 9: loans start to go sour? Shanalie Basset, Bloomberg Radio, all.

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Speaker 2: Right, Chanelle, thank you. On the economic front, we'll get

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Speaker 2: another reading on inflation this morning. The Producer Price Index

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Speaker 2: is forecast who have risen one tenth of one percent

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Speaker 2: in December. The report comes a day after consumer prices

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Speaker 2: rose more than expected. Cleveland Fed President Lorettamester says the

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Speaker 2: latest data may put on top of a possible rate

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Speaker 2: cut on hold.

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Speaker 10: I think March is probably too early in my estimation

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Speaker 10: for a rate decline because I think we need to

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Speaker 10: see some more evidence.

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Speaker 4: I think the December CPI report just shows there's more

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Speaker 4: work to do.

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Speaker 2: And Cleveland Fed President the Rettamester says the latest figures

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Speaker 2: reinforce her view that policy is in a good position

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Speaker 2: to assess incoming data on prices and employment.

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Speaker 1: And overseas, Karen Christine Leaguard says the European Central Bank

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Speaker 1: will start lowering interest rates once it's convinced inflation's headed

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Speaker 1: back to its two percent goal. Here's the ECB president

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Speaker 1: speaking through an interpreter on French television.

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Speaker 10: President, I cannot give you a date.

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Speaker 11: But if we win this battle, if we reach the

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Speaker 11: two percent inflation target as we're predicting twenty twenty five,

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Speaker 11: and if it's confirmed by the data in the months

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Speaker 11: to come, if this goes according to plan, and I'm

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Speaker 11: being careful the way I say it, but I'm very confident,

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Speaker 11: then the rates will start going down.

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Speaker 1: And after Christine le Guard spoke money markets adjusted their

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Speaker 1: rate cut bets. They now firmly favor six quarter percent

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Speaker 1: reductions this year instead of five.

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Speaker 2: Well, the UK economy saw a modest rebound in in November, Nathan,

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Speaker 2: gross domestic product rows three tenths of a percent, bouncing

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Speaker 2: back from a drop of the same scale in October.

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Speaker 2: Economists had expected an increase of two tenths of a

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Speaker 2: percent in.

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Speaker 1: Saying in the UK Karen shares of Berbery are being

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Speaker 1: taken to the cleaners. This morning, the trench code maker

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Speaker 1: slashed its profit forecast due to a drop in sales

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Speaker 1: in the key Christmas quarter. The one point, the shares

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Speaker 1: were down fourteen percent. Now Burbery is lower by about

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Speaker 1: seven percent.

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Speaker 10: All right, Nathan, thank you.

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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 Samy, Good morning.

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Speaker 4: Good morning, Karen. A polar vortex is about to unleash

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Speaker 4: an Arctic blast across much of the US this weekend.

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Speaker 4: Bloomberg meteorologist Rob Carolyn tracking the system.

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Speaker 5: Wizard warnings are effective for parts of Iowa, Illinois, and

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Speaker 5: southern Minnesota, while winter storm mornings are an effect for

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Speaker 5: much of the western and central Great Lakes. Win advisories

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Speaker 5: stretch from Texas into western New York and western New England.

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Speaker 5: Floodwatchers are in effect from coastal portions of New England

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Speaker 5: along the coast of New Jersey.

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Speaker 4: Bloomberg Meteorologist Rob Carolyn, and the storm is going to

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Speaker 4: bring with it bitter cold temperatures. On the day of

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Speaker 4: the GOP Iowa Caucus, Florida Governor Ron de Santez is

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Speaker 4: urging his supporters to brave the cold this coming Monday, So.

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Speaker 6: I'm asking you to go out there. I'm asking you

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Speaker 6: to brave the elements.

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Speaker 4: Former UN Ambassador NICKI Haley also acknowledged the coming bitter cold,

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Speaker 4: asking for support at the polls.

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Speaker 2: I'm going to be out there and i want you

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Speaker 2: to go out there.

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Speaker 4: Haley has topped Dissantis for the first time in the

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Speaker 4: latest Iowa poll, but former President Donald Trump holds a

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Speaker 4: dominant lead. Now that the Pentagon Inspector General is looking

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Speaker 4: into the secret hospitalization of Defense Secretary Lloyd Austin, the

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Speaker 4: administration is defending its procedures. Bloomberg's Nancy lions at the

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Speaker 4: very latest, the.

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Speaker 12: Inspector General will be looking into the process that's being

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Speaker 12: followed for tracking Secretary Austin. National Security Council spokesman John

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Speaker 12: Kirby says there is already a check in every morning

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Speaker 12: that is logged.

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Speaker 2: We're not going to track the GPS coordinates on a

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Speaker 2: somebody's mobile phone in the administration, and we're not going

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Speaker 2: to plan a microchip in their neck like their appoodle.

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Speaker 6: They check in every day and we know where they are.

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Speaker 12: Kirby admits the White House does need to know if

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Speaker 12: a cabinet official becomes hospitalized or needs to delegate his

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Speaker 12: or her authority. In Washington, Nancy lyons Bloomberg Radio.

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Speaker 4: The International Court of Justice is hearing South Africa's case

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Speaker 4: accusing Israel of genocide in its war in Gaza. Francis

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Speaker 4: Boyce is Professor of international law at the University of

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Speaker 4: Illinois and is a legal advisor to the State of Palestine.

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Speaker 13: South Africa presented a solid case. I predict South Africa

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Speaker 13: will win in order against Israel to cease and desist

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Speaker 13: from committing all acts of genocide against the Palestinians.

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Speaker 4: Israel is set to present its case today. Global news

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Speaker 4: twenty four hours a day and whenever you want it

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Speaker 4: with Bloomberg News Now, I maybe Morris in this is

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Speaker 4: Bloomberg caron.

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Speaker 2: All right, Ami, thank you. What we do bring you

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

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Speaker 2: now you can get the latest news on demand, and

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Speaker 2: that means whenever you want it. Just subscribe to Bloomberg

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Speaker 2: News Now to get the latest headlines if the click

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Speaker 2: of a button, get informed on your schedule. You can

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Speaker 2: listen and subscribe to Bloomberg News Now on the Bloomberg

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Speaker 2: Business app, Bloomberg dot Com plus Apples, Spotify, and anywhere

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Speaker 2: else you get your podcasts. Time now for the Bloomberg

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Speaker 2: Sports Update. Here's John Stashaur, John.

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Speaker 14: Karen What a while twenty four hours of football coaching

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Speaker 14: departures first, Pete Carroll in Seattle followed quickly by Nick

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Speaker 14: Saban and Alabama, and then yesterday morning, Bill Belichick in

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Speaker 14: New England. Between the three, they held their most current

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Speaker 14: positions for total of fifty five years. Saban and Belichick

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Speaker 14: are close friends. In the nineteen nineties in Cleveland, Saban

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Speaker 14: was Belichick's assistant. When Belichick became Patriots coach, he replaced Carol,

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Speaker 14: and in nineteen eighty Carol left his job as defensive

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Speaker 14: back coach at Ohio State and was replaced by Saban.

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Speaker 14: NFL playoffs begain tomorrow Wildcard round with Cleveland at Euston,

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Speaker 14: the Browns quarterback by thirty eight year old Joe Flacco,

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Speaker 14: the Texans by twenty two year old CJ.

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Speaker 6: Straud, and then, in what's expected to.

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Speaker 14: Be a fringid cold night in Kansas City, it's the

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Speaker 14: Chiefs against the Dolphins tripleheader on Sunday, and then on Monday,

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Speaker 14: Philadelphia plays at Tampa Bay. The Celtics went to Milwaukee,

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Speaker 14: top two teams in the East. It was all Bucks

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Speaker 14: up seventy five to thirty eight at halftime. Milwaukee won

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Speaker 14: one thirty five to one oh two, now twenty six

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Speaker 14: and twelve on the seas in while the Celts dropped

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Speaker 14: to twenty nine to nine.

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Speaker 6: Talk about a blowout.

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Speaker 14: It was Oklahoma City one thirty nine and Portland seventy seven,

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Speaker 14: so the thunder one by sixty two.

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Speaker 6: There was a game in Paris.

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Speaker 14: Cleveland got forty five points from Donovan Mitchell Breet Brooklyn

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Speaker 14: one eleven to one O two.

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Speaker 6: John stansh Eward Bloomberg Sports.

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Speaker 7: From coast to coast, from New York to San Francisco,

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Speaker 7: Boston to Washington, DC, nationwide on Syrias exam the Bloomberg

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Speaker 7: Business Appen Bloomberg dot Com. This is Bloomberg Daybreak. Good morning.

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Speaker 7: I'm Nathan Hager. The risk of a wider war in

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Speaker 7: the Middle East is in focus. The US and UK

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Speaker 7: launched dozens of air strikes overnight against Hoothy militants in Yemen.

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Speaker 7: This follows weeks of attacks on red Sea shipping that

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Speaker 7: the Houthis have pledged to contin you until Israel stops

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Speaker 7: the fighting against Hamas in Gaza. For the latest were

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Speaker 7: joined by Rosalind mathieson our Europe, Middle East and Africa

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Speaker 7: news director for Bloomberg News. Ros thanks for being with

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Speaker 7: us once again. Now the Houthis are saying that these

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Speaker 7: new air strikes will not go unanswered. They say, several

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Speaker 7: of their members have been killed. What is the risk

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Speaker 7: of a wider war at this point.

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Speaker 10: Well, that is the big question in the aftermath of this.

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Speaker 15: The US had been saying for some days unless the

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Speaker 15: Houthis stopped their attacks on shipping in the Red Sea,

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Speaker 15: that there would be quoite consequences. So in a way

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Speaker 15: they were compelled to do something, and these were very tactical,

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Speaker 15: surgical strikes. The Houthis are saying that the death toll

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Speaker 15: was five on their end and fairly small, and that

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Speaker 15: these stripes were very well telegraphed also, which allowed them

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Speaker 15: to clear out of some of their bases. So it

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Speaker 15: does seem the objective was to make a point to

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Speaker 15: the Huthies without escalating, and the Hoothy's feeling they need

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Speaker 15: to take massive retaliation, or more importantly, their big backers

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Speaker 15: Iran feeling they need to take some kind of retaliatory action.

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Speaker 15: So it seems to have been sort of a calibrated

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Speaker 15: response by the US and the UK, and there are

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Speaker 15: other partners overnight. Of course, it does come though at

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Speaker 15: a time of high tension in the region. You've got

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Speaker 15: the war between Israel and Hamas and Gaza still going on.

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Speaker 15: You've got this disruption to shipping in the area. You've

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Speaker 15: got Hesblah occasionally having rocket exchanges with Israel from Lebanon

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Speaker 15: in the north, and so there's a lot going on

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Speaker 15: at the moment.

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Speaker 10: And a high tension environment.

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Speaker 15: And so the question is at what point, if any,

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Speaker 15: do some of these Iranian proxies tip things over into

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Speaker 15: a full scale conflict. At least we can The initial

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Speaker 15: interpretation from these air strikes overnight is that it's not

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Speaker 15: designed to do that.

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Speaker 1: We do have not just the Houthis backed by Iran,

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Speaker 1: but Hesbolah backed by Iran that's been engaged in cross

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Speaker 1: border skirmishes with Israel for months now as well. We

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Speaker 1: are seeing this jump in oil prices. You have to wonder,

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Speaker 1: when we're seeing the possibility of multiple fronts opening up

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Speaker 1: in this war, whether we could see even further risk

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Speaker 1: premium placed on commodities.

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Speaker 15: It was interesting because the main move overnight was in

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Speaker 15: oil and it moved up about two percent or so,

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Speaker 15: but other sort of major assets were fairly calm in

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Speaker 15: the face of this, because again it had been well

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Speaker 15: telegraphed and right now the main thing is that even

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Speaker 15: though there are these disruptions to shipping and there are concerns,

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Speaker 15: particularly about what Iran might do next, supply has not

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Speaker 15: been massively impacted. And it comes at a time, of course,

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Speaker 15: where there are sort of question's over demand at the

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Speaker 15: other end, and so you're not really seeing this long

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Speaker 15: sort of running premium come into.

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Speaker 10: Either oil or gas.

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Speaker 15: What you are seeing is disruption to supply chains that

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Speaker 15: may escalate and that may start to affect more companies

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Speaker 15: who need to have their parts or products shipped through

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Speaker 15: that part of the world, and that could be a

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Speaker 15: real issue if the Suez Canal comes into the mix further.

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Speaker 15: But it's interesting to not see a massive move so

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Speaker 15: far in oil or gas in recent weeks and even overnight,

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Speaker 15: and that is a signal that the market really seems

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Speaker 15: to think that supply is not currently at risk.

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Speaker 1: In terms of trying to tampen down the tensions in

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Speaker 1: the region, what's the balance that the Biden administration is

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Speaker 1: trying to strike here when we are starting to see

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Speaker 1: these attacks take place, just after Secretary of State Anthony

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Speaker 1: Blinkn had been back in the region trying to urge

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Speaker 1: Israel to lower the temperature with hummies.

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Speaker 10: Well, that's right.

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Speaker 15: He just wrapped up his latest trip, which was his

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Speaker 15: fourth I thinking in quick succession, and he toured the

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Speaker 15: region and he visited a lot of countries to get

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Speaker 15: their sense of things, and then ended up in Israel

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Speaker 15: at the end. But his message has been about ensuring

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Speaker 15: that this doesn't spill over into a broader crisis, messaging

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Speaker 15: quite strongly with a run on that front, but also

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Speaker 15: trying to press Israel to de escalate its conflict on

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Speaker 15: the ground in Gaza, and so far the signs are

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Speaker 15: that Israel's not particularly interested in doing that. They say

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Speaker 15: that their ultimate goal remains the same, which is to

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Speaker 15: make sure that Hamas can never again attack them in

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Speaker 15: the way that they did back in October, and there's

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Speaker 15: work still to be done there. So it seems as

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Speaker 15: though the US is not having massive success getting Israel

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Speaker 15: to listen to them on that front. In Israel says

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Speaker 15: their war in Gaza is likely to go on at

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Speaker 15: least for some months yet, and then the big question

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Speaker 15: about what happens in Gaza obviously when the fighting stops.

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Speaker 10: And so even though Blinken in.

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Speaker 15: His trip and other USE officials are sort of touting

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Speaker 15: the desire of everybody to find some stability in all

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Speaker 15: of this. You wouldn't really think that he came away

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Speaker 15: from his latest trip with much to show for it.

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