WEBVTT - Bloomberg Daybreak: January 5, 2023 - Hour 2 (Radio) 0:00:01.800 --> 0:00:05.080 By from the Bloomberg Interactive Burgers Studios. This is Bloomberg 0:00:05.160 --> 0:00:09.639 Game Break for Thursday, January. Coming up this hour, more 0:00:09.720 --> 0:00:12.719 setbacks for Kevin McCarthy in his quest to be Speaker 0:00:12.720 --> 0:00:16.520 of the House. Amazon is cutting more than eighteen thousand jobs. 0:00:16.800 --> 0:00:19.520 The Fed pushes back against rate cut beats as it 0:00:19.600 --> 0:00:22.680 tries to tackle inflation, and investors away. Two more key 0:00:22.720 --> 0:00:25.599 readings on the labor market ahead of tomorrow's jobs report. 0:00:25.760 --> 0:00:28.760 Mourners pay their respects at the funeral for former Pope 0:00:28.760 --> 0:00:31.720 Benedict Blust. President Biden says he intends to visit the 0:00:31.800 --> 0:00:35.519 US Mexico border. On Michael barr More, I'm John Stashow. 0:00:35.600 --> 0:00:37.720 In sports, the Knicks pulled out a narrow home win 0:00:37.840 --> 0:00:40.599 over the Spurs. The Nets win streak into at Chicago, 0:00:40.680 --> 0:00:45.800 The Devil's wand into Georgian. That's All's trained head on 0:00:45.920 --> 0:00:50.000 Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg 0:00:50.159 --> 0:00:54.160 ninety nine one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.440 --> 0:00:59.040 Bloomberg nine sixties and Francisco Syrius Exam one nine Team 0:00:59.120 --> 0:01:01.720 and around the World Old on Bloomberg Radio dot Com 0:01:02.000 --> 0:01:08.480 and via the Bloomberg Business app. Good morning, I'm Nathan 0:01:08.520 --> 0:01:12.160 Hagar and I'm Karen Moscow and US No index futures 0:01:12.200 --> 0:01:14.520 are a little change to hire this morning. We checked 0:01:14.520 --> 0:01:17.360 the markets all day long here on Bloomberg. Right now 0:01:17.400 --> 0:01:21.040 again SMP nastack and down futures, little change to hire. 0:01:21.080 --> 0:01:23.920 The decks in Germany also that'll change ten. Your treasury 0:01:24.240 --> 0:01:26.960 down two thirties seconds here three point six nine percent. 0:01:27.000 --> 0:01:29.679 They yield on the two year four point three seven percent. 0:01:30.200 --> 0:01:32.240 Nine x screwed oil on the rise of two point 0:01:32.240 --> 0:01:34.480 three percent of but allar seventy three. It's seventy four 0:01:34.520 --> 0:01:37.440 dollars fifty six cents of barrel and Comax gold is 0:01:37.520 --> 0:01:40.119 down three tenths of a percent. Nathan, all right, Karen. 0:01:40.160 --> 0:01:41.920 We'll have more on markets in a minute, but we 0:01:42.040 --> 0:01:45.520 begin with the political turmoil continuing in Washington, d C. 0:01:45.959 --> 0:01:49.160 The House has adjourned once again without electing a speaker. 0:01:49.560 --> 0:01:52.120 Let's get the latest from Amy Morris in our Bloomberg 0:01:52.720 --> 0:01:56.600 one newsroom. In the nation's capital, twenty hardline conservatives are 0:01:56.640 --> 0:01:59.840 blocking GOP leader Kevin McCarthy's ascension to Howse speaker, and 0:02:00.000 --> 0:02:03.160 Pennsylvania Scott Perry is one of them. Because we all 0:02:03.200 --> 0:02:07.520 acknowledge and we all know that Washington is broken. We 0:02:07.640 --> 0:02:10.720 must take a new path. Laurda's Catcamint called on the 0:02:10.760 --> 0:02:13.959 GOP to support McCarthy. He has proven that he is 0:02:14.000 --> 0:02:16.400 willing to stand up in the face of critics and 0:02:16.480 --> 0:02:19.360 not only prove them wrong, but work with them. How's 0:02:19.400 --> 0:02:22.000 Republican leaders held a meeting late yesterday to hammer out 0:02:22.000 --> 0:02:26.320 a deal. Still no resolution. Lawmakers reconvene at noon today 0:02:26.639 --> 0:02:29.400 to begin a seventh round of votes in Washington. I'm 0:02:29.440 --> 0:02:31.960 anymore as Bloomberg daybreak. All right, Amy, thank you. By 0:02:32.040 --> 0:02:34.560 The standoff on Capitol Hill is getting attention from the 0:02:34.600 --> 0:02:37.600 White House. President Biden says he hopes Congress can quote 0:02:37.680 --> 0:02:44.080 get their act together. Congress of Karen function, there's just embarrassing. 0:02:44.200 --> 0:02:46.519 With the greatest nation in the world, How could that? 0:02:47.120 --> 0:02:50.320 President Biden says, dysfunction with the GOP is not a 0:02:50.320 --> 0:02:52.480 good look to the rest of the world. Now we're 0:02:52.480 --> 0:02:55.560 hearing reaction from former members of Congress as well. Karen 0:02:55.600 --> 0:02:58.800 Democrat Tim Rohmer is a former representative from Indiana. He 0:02:58.880 --> 0:03:02.280 says Republicans voted against McCarthy seemed determined to take him down, 0:03:02.400 --> 0:03:05.440 and Democrats have little reason to come to his rescue. 0:03:05.760 --> 0:03:08.720 The Democrats are in a very good position right now. 0:03:08.800 --> 0:03:13.240 There is no incentive for them to help Kevin McCarthy 0:03:13.320 --> 0:03:17.160 out of this deep dark well at a hole that 0:03:17.200 --> 0:03:20.160 he has dug for himself. Former Congressman Tim Rohmer was 0:03:20.200 --> 0:03:22.440 a guest on Bloomberg Sound On with Joe Matthew. You 0:03:22.480 --> 0:03:24.840 can catch the program weekdays at five pm Eastern on 0:03:24.840 --> 0:03:27.480 Bloomberg Radio and listen to the show on demand wherever 0:03:27.520 --> 0:03:31.000 you get your podcasts. Well, another major story we're following 0:03:31.040 --> 0:03:34.160 this morning, Nathan brings us to Amazon. We're learning job 0:03:34.200 --> 0:03:37.520 cuts of the company will be greater than initially anticipated, 0:03:37.560 --> 0:03:41.480 with Amazon planning to eliminate over eighteen thousand roles, and 0:03:41.520 --> 0:03:45.560 Bloomberg's Prisoner has the details. The figure includes cuts announced 0:03:45.600 --> 0:03:48.960 back in November, when about ten thousand workers lost their jobs. 0:03:49.160 --> 0:03:53.480 Uncertainty over the outlook caused Amazon to accelerate layoffs. CEO 0:03:53.600 --> 0:03:57.640 Andy Jesse told employees the company typically waits to communicate 0:03:57.720 --> 0:04:01.480 these outcomes until it speaks with is directly impacted, but 0:04:01.520 --> 0:04:03.920 the information was leaked to the Wall Street Journal, so 0:04:04.000 --> 0:04:07.560 the news was shared earlier and directly from Jesse. Most 0:04:07.560 --> 0:04:11.080 of the cuts are in Amazon's retail division and human resources. 0:04:11.480 --> 0:04:16.720 Jesse is already eliminated or curtailed experimental and unprofitable businesses 0:04:17.080 --> 0:04:19.680 in New York. I'm Doug Prisoner Bloomberg Daybreak are Doug, 0:04:19.720 --> 0:04:21.799 thank you, and those Amazon cuts come as we await 0:04:21.839 --> 0:04:24.400 two key readings on the labor market today ahead of 0:04:24.440 --> 0:04:27.680 tomorrow's jobs report, we get a preview from Bloomberg's Mike McKee. 0:04:28.000 --> 0:04:30.760 The Fed is focused on employment as they raise rates 0:04:30.760 --> 0:04:34.719 to slow the economy. Unemployment should rise, So far it hasn't. 0:04:34.800 --> 0:04:37.800 Jobless claims have remained low and steady, although economists say 0:04:37.920 --> 0:04:40.400 it's difficult to get a clear read on layoffs during 0:04:40.440 --> 0:04:44.080 the holidays, so don't expect a big change in claims yet. 0:04:44.240 --> 0:04:47.680 ADP measures the number of people on payrolls, in theory 0:04:48.040 --> 0:04:51.960 that should point to the direction of the overall labor market. ADP, however, 0:04:52.040 --> 0:04:55.040 has diverged from the government's payroll report, coming in weaker 0:04:55.120 --> 0:04:58.679 for the past five months. Bottom Line markets are likely 0:04:58.760 --> 0:05:02.040 to look past today's day ad to Friday's numbers, figuring 0:05:02.240 --> 0:05:05.560 that's what the Fed will be doing. Michael McKie Bloomberg Daybreak, 0:05:05.720 --> 0:05:08.479 All right, Michael, thank you. Meantime, the FEDS standing firm 0:05:08.520 --> 0:05:10.760 and it's resolved to bring down inflation, and we get 0:05:10.800 --> 0:05:13.800 the latest Live with Bloomberg. Steve Rappaport's Steve, good morning, 0:05:13.880 --> 0:05:16.520 Good morning, Karen and Nathan. With that resolve comes a 0:05:16.520 --> 0:05:19.360 delicate balancing act for the Federal Reserve. In a blunt 0:05:19.360 --> 0:05:22.159 warning to investors, minutes from the last policy meetings show 0:05:22.200 --> 0:05:24.640 the central bank will not cave to public pressure to 0:05:24.680 --> 0:05:27.480 lower interest rates. The FED is attempting to cut inflation 0:05:27.520 --> 0:05:30.960 without triggering a recession, but JP Morgan Chief US economist 0:05:31.000 --> 0:05:33.920 Michael Faroli tells Bloomberg gets likely too late to achieve 0:05:33.960 --> 0:05:36.600 that goal. We are expecting the economy to slip into 0:05:36.640 --> 0:05:38.919 recession by the end of the year, just due to 0:05:38.920 --> 0:05:41.440 the lag effect of the of the tightening and financial 0:05:41.480 --> 0:05:44.240 conditions that the Fed is engineered here, as well as 0:05:44.240 --> 0:05:47.680 the additional rate heights at their they're signaling today. The 0:05:47.760 --> 0:05:50.880 notes also highlight the Fed's rate projections being notably above 0:05:50.880 --> 0:05:54.080 market expectations from a policy standpoint, Live in New York. 0:05:54.120 --> 0:05:56.920 I'm Steve Rappaport, Bloomberg Daybreak, All right, Steve, thank you, 0:05:56.960 --> 0:05:59.919 Oh the SMP and NASDAC shook off fed caution yesterday's 0:06:00.000 --> 0:06:03.000 happening two days of losses, but Morgan Stanley chief US 0:06:03.040 --> 0:06:06.719 equity strategist Mike Wilson, who correctly predicted last year's dismal market, 0:06:06.800 --> 0:06:10.159 says stocks are heading even lower. We think three thousand 0:06:10.279 --> 0:06:14.680 is a very achievable number given our confidence on our 0:06:14.720 --> 0:06:17.960 earnings forecast. Ironically, I would say, in the absence of, 0:06:18.120 --> 0:06:22.880 you know, a recession meaning companies decide to not off aggressively, 0:06:23.160 --> 0:06:27.800 that target looks more achievable. Let may sound counterintuitive, but 0:06:28.040 --> 0:06:30.280 that's the way we're not modeling it today. So our 0:06:30.320 --> 0:06:32.760 bare case is actually kind of we avoid a recession, 0:06:32.800 --> 0:06:36.040 but not to slowdown. If that prediction from Morgan Stanley 0:06:36.080 --> 0:06:38.880 chief US equity strategist Mike Wilson comes true, stocks with 0:06:38.960 --> 0:06:42.240 decline more than from current levels, Well, Nathan s and 0:06:42.279 --> 0:06:44.520 P and Dow futures are a little change this morning. 0:06:44.560 --> 0:06:46.760 Nownsdays future is of a tenth of upper cent or 0:06:46.800 --> 0:06:49.440 twelve points, and the ten year treasury down one thirty 0:06:49.560 --> 0:06:53.720 second deal three point six eight per cent and straight ahead. 0:06:53.839 --> 0:06:57.440 We have your latest local headlines plus the check of sports, 0:06:57.560 --> 0:07:04.640 and this is Bloomberg. Karen. Thanks six o seven on 0:07:04.720 --> 0:07:07.240 Wall Street. Now forty nine degrees in Central Park. I've 0:07:07.279 --> 0:07:10.120 hatchee fog this morning. It's gonna stay cloudy and cooler 0:07:10.120 --> 0:07:12.760 today with him the low fifties, maybe a shower tonight. 0:07:12.800 --> 0:07:15.400 We'll get down to the low forties. And Michael Barre 0:07:15.480 --> 0:07:17.520 is here now with what else is going on in 0:07:17.520 --> 0:07:19.520 New York and around the world. Good morning, Michael, Good 0:07:19.560 --> 0:07:22.679 morning Nathan. Pope Francis delivered the amily at the funeral 0:07:22.760 --> 0:07:31.480 mass for former Pope Benedict Benedetto in Italian. Pope Francis said, Benedict, 0:07:31.600 --> 0:07:34.360 may your joy be complete as you hear his voice. 0:07:34.840 --> 0:07:38.160 Warners gathered in St. Peter Square outside the Vatican today 0:07:38.160 --> 0:07:41.960 where Benedict is being laid to rest. George Mason University 0:07:41.960 --> 0:07:46.720 professor Helen Alvary spoke about Benedict's legacy. I think he's 0:07:46.880 --> 0:07:50.640 a model of humility and modesty. He was definitely a 0:07:50.760 --> 0:07:54.440 servant of the Church. He didn't want to come to Rome. 0:07:54.560 --> 0:07:58.240 He wanted to stay in Germany and remain at Theologian. 0:07:58.560 --> 0:08:01.000 He didn't want to be head of the Office of Doctrine. 0:08:01.040 --> 0:08:03.680 But John Paul To really twisted his arm, and he 0:08:03.760 --> 0:08:07.520 really did not want to be pope. Ah he thought, 0:08:07.680 --> 0:08:10.480 you know, he was not great enough for it. Benedict 0:08:10.600 --> 0:08:13.800 will be buried in the crypt under St. Peter's Basilica. 0:08:14.000 --> 0:08:16.679 President Joe Biden says he intends to visit the US 0:08:16.760 --> 0:08:20.240 Mexico border next week for a firsthand look at conditions 0:08:20.280 --> 0:08:24.840 as his administration contends with a surge in migration. Biden 0:08:24.920 --> 0:08:27.480 is already scheduled to travel to Mexico next week to 0:08:27.520 --> 0:08:31.520 meet with the presidents of Mexico and Canada. He wanted violence. 0:08:31.640 --> 0:08:35.400 That's what investigators in New York City say about Trevor Bickford, 0:08:35.600 --> 0:08:39.640 arrested for allegedly attacking three police officers near Times Square 0:08:39.640 --> 0:08:42.480 on New Year's Eve. The nineteen year old from Maine 0:08:42.679 --> 0:08:45.200 was a rain yesterday in charge in the machete attack. 0:08:45.920 --> 0:08:48.320 It's a war of words between New York City Mayor 0:08:48.480 --> 0:08:52.720 Eric Adams and former Mayor Bill de Blasio's administration. Adams 0:08:52.840 --> 0:08:55.880 is calling on his predecessor to stop his team from 0:08:55.880 --> 0:08:59.400 criticizing the current administration. Not called build the other day, 0:08:59.480 --> 0:09:03.520 that's a bill. What's going on? You know what's going on? 0:09:03.720 --> 0:09:08.840 And then Big Bill's coms guy, who's probably the roast 0:09:08.920 --> 0:09:13.200 coms guy in the history of communication. Adams is talking 0:09:13.240 --> 0:09:17.280 about the blasil's former spokesperson Bill Neidhardt, who has been 0:09:17.320 --> 0:09:20.760 increasingly critical of Adams on Twitter. Adams said they had 0:09:20.800 --> 0:09:23.760 eight years to do their job. Once they're gone, they're 0:09:23.800 --> 0:09:27.880 experts on everything. Heavy rains and strong winds at California 0:09:28.000 --> 0:09:32.640 overnight as a powerful bomb cyclone washed ashore, knocking out power. 0:09:33.040 --> 0:09:35.480 Global News twenty four hours a day on air and 0:09:35.640 --> 0:09:39.240 on Bloomberg Quick Take, powered by more than journalists and 0:09:39.240 --> 0:09:43.160 analysts more than twenty countries. Michael Barr, this is Bloomberg. Nathan. 0:09:43.240 --> 0:09:49.840 All right, Michael, thank you, Coming up to six ten 0:09:49.880 --> 0:09:52.160 on Wall Street. Time for the Bloomberg Sports Update, brought 0:09:52.160 --> 0:09:54.520 to you by tri State out Here. Here's John stash Our. 0:09:54.559 --> 0:09:56.960 All right, Nathan Nicks lost to the lowly Spurs a 0:09:57.000 --> 0:09:59.760 week ago in San Antonio. Jalen Brunson didn't play that game. 0:09:59.760 --> 0:10:01.439 He'd did play last night at the Guard and he 0:10:01.480 --> 0:10:03.880 scored thirty eight points. That's a career high in the 0:10:03.920 --> 0:10:06.439 regular season. The Knicks pulled out the win one seventeen, 0:10:06.880 --> 0:10:09.680 won fourteen. The Nets brought their twelve game winning straight 0:10:09.720 --> 0:10:13.600 to Chicago the Bowls one one twelve to despite forty 0:10:13.640 --> 0:10:16.280 four points by Kevin Duran's, the Nets first loss in 0:10:16.320 --> 0:10:18.760 a month. Devil's won five one at Detroit. They're back 0:10:18.760 --> 0:10:21.320 home tonight. Road games tonight for both the Rangers and 0:10:21.360 --> 0:10:23.960 Islanders College Who's Fordham lost the Titlan at Rhode Island 0:10:24.040 --> 0:10:27.040 eight two seventy nine. Big East Providence beat Yukon. The 0:10:27.080 --> 0:10:30.199 Huskies were fourteen now they've lost their last two, and Georgetown, 0:10:30.559 --> 0:10:33.559 with a loss to Villanova, has now lost twenty five 0:10:33.640 --> 0:10:36.920 consecutive Big East games under coach Patrick. You're in a 0:10:37.040 --> 0:10:40.880 c c NC State beat Duke by twenty four. Duke 0:10:40.960 --> 0:10:44.079 was down twenty two at halftime. The Red Stocks having 0:10:44.080 --> 0:10:46.320 allowed short stops. Andrew Bogart has become a free agent, 0:10:46.440 --> 0:10:48.679 losing them to San Diego, holding on to All star 0:10:48.800 --> 0:10:52.720 third baseman Rafael Dever's new contract eleven years, three hundred 0:10:52.720 --> 0:10:55.720 and thirty one million. Jets closed out the season Sunday 0:10:55.800 --> 0:10:58.520 in Miami. It seems as if every press conference for 0:10:58.600 --> 0:11:02.000 Jets coach Robert Salah a discussion of where things stand 0:11:02.080 --> 0:11:05.360 with bench quarterback Zach Wilson. Zach has got all the 0:11:05.400 --> 0:11:07.440 talent in the world, and we have all the confidence 0:11:07.440 --> 0:11:08.960 in the world with him. It's just like I said, 0:11:08.960 --> 0:11:11.560 from this reset, and we're gonna we're gonna grind with him. 0:11:11.800 --> 0:11:14.640 We are and uh and through hell or high water, 0:11:14.679 --> 0:11:16.360 we're gonna figure out how to how to get him 0:11:16.360 --> 0:11:18.000 to where we know he can be. Mike White will 0:11:18.040 --> 0:11:21.160 be Salas starter Sunday. The Dolphins likely to start rookie QB. 0:11:21.360 --> 0:11:24.160 Skyler Thompson Miami, who liked the Jets, has lost five 0:11:24.200 --> 0:11:26.000 in a row. You can still make the playoffs with 0:11:26.080 --> 0:11:28.720 a win and in New England loss in Buffalo, Johns 0:11:28.760 --> 0:11:31.439 Dashware Bloomberg Sports Maybe, hey, John, thank you, and the 0:11:31.440 --> 0:11:33.599 Bloomberg Sports Report was brought to you by Audi. You 0:11:33.640 --> 0:11:35.760 don't let someone else drive off in the autie model 0:11:35.800 --> 0:11:38.800 you've always wanted. Visit your local Fry state autie dealer 0:11:39.160 --> 0:11:41.400 to get behind the wheel of yours today, or visit 0:11:41.400 --> 0:11:44.960 outie offers dot com for more information, such a for 0:11:45.160 --> 0:11:47.800 Day three of voting for Speaker of the House on 0:11:47.880 --> 0:11:51.040 Capitol Hill. Just ahead, first, we'll take a look at futures. 0:11:51.040 --> 0:11:53.920 They're starting to get some traction here. SMP futures up 0:11:53.920 --> 0:11:57.120 six point, staff futures up thirty. Nastac features now up 0:11:57.160 --> 0:12:03.840 a quarter percent, up twenty eight points, Live from coast 0:12:03.840 --> 0:12:07.520 to coast, from New York to San Francisco, Boston to Washington, 0:12:07.600 --> 0:12:11.400 d C. Nationwide on Sirius xamp, the Bloomberg Business app, 0:12:11.440 --> 0:12:16.320 and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning 0:12:16.320 --> 0:12:18.640 on Nathan Hagar. We are coming up on day three 0:12:18.720 --> 0:12:21.280 of voting in the U. S. House of Representatives on 0:12:21.559 --> 0:12:25.160 whom to elect as a new speaker. Kevin McCarthy, the 0:12:25.160 --> 0:12:28.680 House Republican leader, has failed to pick up any support 0:12:28.920 --> 0:12:31.319 after six straight rounds of voting. For this point, there 0:12:31.400 --> 0:12:34.640 is little end in sight to the standoff, with twenty 0:12:34.760 --> 0:12:38.480 or so now holdout Republicans. It's get something of an 0:12:38.480 --> 0:12:42.240 international perspective on what's happening in our nation's capital. Julie 0:12:42.240 --> 0:12:44.960 Norman joins US live from London this morning, co director 0:12:45.000 --> 0:12:48.440 of the Center on US Politics at University College London. 0:12:48.800 --> 0:12:51.800 Juliet's great to speak with you once again. We heard 0:12:51.880 --> 0:12:56.120 President Biden yesterday say the dysfunction on Capitol Hill isn't 0:12:56.120 --> 0:12:58.040 a good look with the rest of the world watching. 0:12:58.120 --> 0:13:02.440 So how is this standoff being viewed from where you said? Well, 0:13:02.480 --> 0:13:05.240 good morning, Nathan, Yeah, it's interesting I mean, as as 0:13:05.280 --> 0:13:08.400 we know from the US, this is such an unprecedented situation. 0:13:08.520 --> 0:13:12.000 So I think for people overseas just trying to underscore 0:13:12.000 --> 0:13:15.319 that this is not usual, and everyone, just like Americans, 0:13:15.360 --> 0:13:17.360 trying to see where will this go. I mean, this 0:13:17.440 --> 0:13:20.640 isn't obviously the same um level of concern as say, 0:13:20.720 --> 0:13:22.280 I use some of the incidents we've seen over the 0:13:22.360 --> 0:13:24.679 last two years, say January six, But it is just 0:13:24.720 --> 0:13:27.160 a question of what is happening with US politics? Can 0:13:27.160 --> 0:13:30.240 Republicans get it together? And what happens when the Congress 0:13:30.280 --> 0:13:33.000 is essentially not functioning for days or even weeks on end. 0:13:33.320 --> 0:13:36.439 I know you've been watching this as since it's been unfolding, 0:13:36.480 --> 0:13:41.560 even before the voting began, when presumably Leader McCarthy was 0:13:41.840 --> 0:13:44.160 doing a bit of horse trading with some of those 0:13:44.520 --> 0:13:47.560 holdout Republicans who now seem determined to block him from 0:13:47.600 --> 0:13:51.360 becoming speaker. Do you see any path to a compromise 0:13:51.400 --> 0:13:56.480 here within the Republican Party in the U. S. House? Well, Nathan, 0:13:56.520 --> 0:14:00.000 it's interesting. I mean McCarthy has already made multiple compromise, 0:14:00.240 --> 0:14:03.200 as you said, before the vote, you know, um agreeing 0:14:03.280 --> 0:14:06.000 to measures such as allowing a vote to House the 0:14:06.040 --> 0:14:08.600 Speaker with just five members of the party voting to 0:14:08.679 --> 0:14:11.920 do so, making some other concessions. But I do think 0:14:11.960 --> 0:14:15.040 that we heard some some chatter that last night some 0:14:15.240 --> 0:14:18.760 further negotiations have been going on. Some of the demands 0:14:18.800 --> 0:14:21.880 of the oppositionists has been for allowing that vote to 0:14:21.920 --> 0:14:24.320 House to Speaker from just one member of the party. 0:14:24.360 --> 0:14:27.480 That's apparently something that McCarthy is considering that that would 0:14:27.480 --> 0:14:31.960 make UM that speak composition very very attenuous to hold onto. UM. 0:14:31.960 --> 0:14:34.800 There's requests to have more of this particular group on 0:14:34.800 --> 0:14:37.640 the House Rules Committee UM and pushing different kinds of 0:14:37.640 --> 0:14:40.600 floor votes. So these are still some of the demands 0:14:40.600 --> 0:14:43.480 so to speak, that we're uh, not yet agreed to 0:14:43.480 --> 0:14:47.720 buy McCarthy Again, there's some murmurs that that those might 0:14:47.760 --> 0:14:50.240 be negotiated overnight, So we'll see what happens, and they 0:14:50.240 --> 0:14:54.240 reconduing it noon today. Yeah, while we wait for that reconvening, 0:14:54.680 --> 0:14:57.720 Congress remains out of stand still. I can't do anything 0:14:57.880 --> 0:15:02.240 until they elect to speak. Er, what is this situation 0:15:03.080 --> 0:15:08.320 foretell potentially about this Congress's ability to get anything done 0:15:08.440 --> 0:15:11.720 over the next two years? Yeah, what, we already knew 0:15:11.720 --> 0:15:13.600 that it was going to be tough. With the very 0:15:13.640 --> 0:15:17.560 slim majority for Republicans, that obviously legislation would be uh, 0:15:17.680 --> 0:15:19.440 you know, tough to get through, and that even the 0:15:19.520 --> 0:15:22.840 party would be quite beholden to any small group within it, 0:15:23.000 --> 0:15:25.040 such as this group of twenty that we're seeing now. 0:15:25.400 --> 0:15:28.040 I don't think anyone thought that leverage would be wielded 0:15:28.120 --> 0:15:30.680 quite as heavily, quite so soon. But it's a very 0:15:30.680 --> 0:15:33.640 clear indication that whoever ends up in the leadership is 0:15:33.680 --> 0:15:36.400 going to really be be governing with almost with a 0:15:36.400 --> 0:15:38.440 gun at their head. That they know the leadership can 0:15:38.440 --> 0:15:40.800 be pulled out from under them very quickly. They know 0:15:40.840 --> 0:15:42.520 they're gonna have to make a lot of compromises to 0:15:42.520 --> 0:15:45.320 get any votes, and we can expect that issues like 0:15:45.400 --> 0:15:48.200 the budget, issues like the debt ceiling will be um 0:15:48.240 --> 0:15:50.360 you know that that no holds will be barred on 0:15:50.360 --> 0:15:53.600 on making concessions and trying to force compromises on those issues. 0:15:54.120 --> 0:15:56.480 I mean, when you use an analogy like that of 0:15:56.880 --> 0:15:59.080 speakership with a gun to their head, I mean, we 0:15:59.160 --> 0:16:02.200 know that Kevin mc carthy has had this ambition for years, 0:16:02.760 --> 0:16:05.280 but if he does step aside, I mean, is there 0:16:05.280 --> 0:16:08.120 anyone who's going to be willing to step forward into 0:16:08.160 --> 0:16:11.720 this kind of fractiousness. Yeah, I think it's Yeah, I 0:16:11.760 --> 0:16:14.600 think that obviously. That's that's been the challenge for this 0:16:14.640 --> 0:16:17.240 whole week, is there's there's no clear alternative. I mean, 0:16:17.640 --> 0:16:20.120 you we obviously have heard, you know, Steve Schleecy could 0:16:20.960 --> 0:16:23.920 fall into that role. Some have said Jim Jordan's. I 0:16:23.960 --> 0:16:26.960 think even they would be very hard pressed. Um. You know, 0:16:27.440 --> 0:16:30.480 Jim Jordan especially would be seen as very much a 0:16:30.480 --> 0:16:33.320 firebrand in a position that's, you know, a very different 0:16:33.360 --> 0:16:36.080 kind of role than that. So I think the Republicans 0:16:36.120 --> 0:16:38.600 are up against it with who will be able to 0:16:38.760 --> 0:16:41.160 take that role and stay in that role. And my 0:16:41.240 --> 0:16:43.600 guess is that, you know, it wouldn't be It wouldn't 0:16:43.600 --> 0:16:46.640 be unsurprising if we see that role shifting several times 0:16:46.680 --> 0:16:49.160 over these next two years, especially if the rules changed 0:16:49.200 --> 0:16:51.840 with how they might be ousted. Kind about thirty seconds 0:16:51.920 --> 0:16:53.600 left here, Julie, But what do you make of Brian 0:16:53.760 --> 0:17:01.080 Byron Donald's Republican alternative emerging yesterday? Where did he come from? Yeah? 0:17:01.080 --> 0:17:03.280 So Donald, you know, he's only a sophomore. He was 0:17:03.320 --> 0:17:06.119 elected in twenty to the House um from the state 0:17:06.160 --> 0:17:08.640 of of of Florida. And it's someone that I think, 0:17:08.680 --> 0:17:10.920 you know, many thought maybe down the line would be 0:17:11.000 --> 0:17:13.800 in the leadership position, but certainly very premimature to see 0:17:13.840 --> 0:17:16.719 that now. Again, he's a name that was floated, I 0:17:16.760 --> 0:17:18.959 think more as a placeholder than anything else. I think 0:17:19.000 --> 0:17:22.120 would be very hard to get all Republicans behind him, 0:17:22.359 --> 0:17:24.920 but he was seen as an alternative to say, Jim 0:17:24.960 --> 0:17:27.040 Jordan's other names that were being floated just to kind 0:17:27.040 --> 0:17:29.320 of carry the votes through this week. All right, well, 0:17:29.359 --> 0:17:31.800 we'll see if there's any further movement. Hasn't been much 0:17:31.800 --> 0:17:34.280 of that over the last two days, but we continue 0:17:34.880 --> 0:17:38.159 to monitor at all on Capitol Hill. Julie Norman with 0:17:38.280 --> 0:17:42.280 the University College London Center on US Politics. Great as 0:17:42.320 --> 0:17:44.560 always to get your perspective. Thanks again for being with 0:17:44.640 --> 0:17:47.399 us this morning. Futures starting to move a bit higher 0:17:47.400 --> 0:17:49.840 now we have SMP futures up six points, STA futures 0:17:49.880 --> 0:17:52.240 up twenty nine. NASTAC future is a gain of three 0:17:52.240 --> 0:17:55.240 tenths percent, now up thirty points. In the tenure Treasury 0:17:55.320 --> 0:17:58.600 is down one thirty second, you're three point six. This 0:17:58.960 --> 0:18:04.800 is Blimberg Markets, headlines and breaking news twenty four hours 0:18:04.800 --> 0:18:07.960 a day at Bloomberg dot Com. The Bloomberg Business and 0:18:08.119 --> 0:18:17.760 at Bloomberg Quicktape is a Bloomberg business flash. And I'm 0:18:17.840 --> 0:18:21.280 Karen Moscow. And futures are higher this morning, SMP futures 0:18:21.320 --> 0:18:23.360 at the tenth of upper center five points and down 0:18:23.359 --> 0:18:26.080 futures that will change nasday futures up two ten percent 0:18:26.200 --> 0:18:28.520 or twenty five points of the tenure Treasury down one 0:18:28.560 --> 0:18:31.720 thirty second, you know, three point six eight percent. That's 0:18:31.760 --> 0:18:34.240 a Bloomberg business flash. Now here's Michael Barr with more 0:18:34.280 --> 0:18:36.399 on what's going on around the world. Michael tar In. 0:18:36.440 --> 0:18:39.080 The US House were resumed session later today after Kevin 0:18:39.160 --> 0:18:42.040 McCarthy and GOP dissidents failed to reach a deal on 0:18:42.080 --> 0:18:45.640 the California Republicans bid to become a speaker. Pope Francis 0:18:45.760 --> 0:18:49.119 is at the funeral for former Pope Benedict NBA. The 0:18:49.200 --> 0:18:52.040 next one, the Nets and Barriers lost the Hockey Action. 0:18:52.119 --> 0:18:54.920 The Devil's One Global news twenty four hours a day 0:18:54.920 --> 0:18:58.960 on air and on Bloomberg Quicktake, powered by more than journalists, 0:18:58.920 --> 0:19:01.520 analysts more than a hundred countries. Michael bar this is 0:19:01.520 --> 0:19:04.280 Bloomberg Naked. Thanks Michael six two on Wall Street. I'm 0:19:04.359 --> 0:19:07.320 Nathan Haggard. This is Bloomberg Daybreak. I want to shift 0:19:07.359 --> 0:19:10.520 gears now to a very specific part of the US economy. 0:19:10.760 --> 0:19:14.399 As growth slows, one area of investment is peaking some interest. 0:19:14.640 --> 0:19:18.639 Latinos are the fastest growing demographic of US entrepreneurs, and 0:19:18.760 --> 0:19:22.840 Latino owned businesses have historically seen under investment, but that 0:19:22.920 --> 0:19:26.400 may be set to change. Bloomberg's Lisa Matteo has more 0:19:26.560 --> 0:19:31.000 in this special report. The total economic output of US 0:19:31.080 --> 0:19:35.320 Latinos was two point eight trillion dollars in Yet, despite 0:19:35.320 --> 0:19:38.640 being a key driving force of the US economy, experts 0:19:38.680 --> 0:19:42.720 say the capital isn't flowing towards the growth. According to 0:19:42.760 --> 0:19:46.720 the Latino Business Action Network, Hispanic owned businesses have grown 0:19:46.800 --> 0:19:50.080 forty four percent in the last ten years, compared to 0:19:50.160 --> 0:19:53.400 just four percent for non Latinos, but less than two 0:19:53.440 --> 0:19:56.240 percent of the available venture capital funding in the US 0:19:56.520 --> 0:19:59.199 goes into this cohort. This is the best economy in 0:19:59.240 --> 0:20:02.719 the world that free and prices of it largely excludes 0:20:03.119 --> 0:20:07.080 small businesses and minority owned businesses. Even today, Romerica Vassos, 0:20:07.119 --> 0:20:10.240 as the President and CEO of the United States Hispanic 0:20:10.359 --> 0:20:12.560 Chamber of Commerce, than a big part of it. I 0:20:12.600 --> 0:20:16.560 think it's just relationships. It's networks, you know. I hate 0:20:16.560 --> 0:20:19.280 to say it, We're largely invisible. In order to make 0:20:19.320 --> 0:20:23.120 those connections, Anna Veldez, president and CEO of the Latino 0:20:23.240 --> 0:20:26.600 Donor Collaborative, says more vcs need to get out of 0:20:26.600 --> 0:20:29.520 their comfort zone. You need to start reaching out to 0:20:29.600 --> 0:20:32.399 places where you actually never reached. People that may not 0:20:32.680 --> 0:20:35.440 be as well versed, that may not come from your environment, 0:20:35.640 --> 0:20:37.520 that may not look like you, that may not talk 0:20:37.600 --> 0:20:39.720 like you, but there are that are making a lot 0:20:39.760 --> 0:20:44.280 of money. Anthony Alcasar is finding himself in the middle 0:20:44.320 --> 0:20:47.560 of the struggle. His company Mr Tortilla is number one 0:20:47.600 --> 0:20:51.000 on Amazon. They've expanded their product line and just opened 0:20:51.000 --> 0:20:54.880 a second factory. My projections are thirty millions of tween 0:20:55.280 --> 0:21:03.120 three million millions, and I can't get a fish shaped, 0:21:03.200 --> 0:21:06.120 he says. The offers he has received include a majority 0:21:06.200 --> 0:21:08.600 stake in his business. We worked a whole life for this, 0:21:08.800 --> 0:21:11.320 and so if I lose control ownership now, I can 0:21:11.400 --> 0:21:15.280 guarantee that they're going focusing philosophies and run our business. Await. 0:21:15.480 --> 0:21:20.040 We want to run it. That's why Latino ventured capitalists 0:21:20.080 --> 0:21:24.080 and banking and community lenders and c D Advice Unity 0:21:24.119 --> 0:21:26.800 Development and Finance Institution. We've got to get them to 0:21:26.840 --> 0:21:30.480 step up. Latitude Ventures is doing just that. The company 0:21:30.680 --> 0:21:34.520 recently launched a one million dollar fund focused on Latino 0:21:34.600 --> 0:21:39.040 founded early stage businesses. We're looking hard. We're creating the pipeline. 0:21:39.080 --> 0:21:42.200 We're creating the visibility so that any Latino and Latino 0:21:42.280 --> 0:21:44.440 that has been shut out that they can come here 0:21:44.480 --> 0:21:47.640 and they're gonna get a fair look. Company president sold through. 0:21:47.680 --> 0:21:50.760 He has his own prediction. My bed is between now 0:21:50.800 --> 0:21:53.200