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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning.

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Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today.

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Speaker 2: Karen, we begin in Washington, where President Trump has directed

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Speaker 2: federal agencies to comply with job cuts led by Elon

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Speaker 2: Musk and his so called Department of Government Efficiency. A

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Speaker 2: White House fact sheet seen by Bloomberg shows agencies will

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Speaker 2: be permitted to hire no more than one employee for

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Speaker 2: every four that leave, and they'll have to limit hiring

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Speaker 2: to essential positions. As heard here on Bloomberg Radio, the

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Speaker 2: President spoke to reporters in the Oval Office.

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Speaker 4: I hope that the court system is going to allow

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Speaker 4: us to do what we have to do we got

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Speaker 4: elected to, among other things, all of this fraud abuse,

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Speaker 4: all of this this horrible stuff going on, and we've

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Speaker 4: already found billions of does not like a little bit,

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Speaker 4: billions many billions of dough.

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Speaker 3: And standing alongside President Trump in the Oval Office was

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Speaker 3: the world's richest man. Elon Musk defended his cost cutting approach,

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Speaker 3: which did involve obtaining access to sensitive computer systems and

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Speaker 3: employee data.

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Speaker 5: Your tax dollars need to be spent wisely on the

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Speaker 5: things that matter to the people. I mean these things

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Speaker 5: like it's just common sense. It's not draconian or radical.

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Speaker 5: I think it's it's really just saying, best look at

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Speaker 5: each of these expenditors and say, is this actually in

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Speaker 5: the best interest to the people, and if it is,

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Speaker 5: it's proved not, we should think about it.

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Speaker 3: Elon Musk also increased attacks on federal officials and judges,

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Speaker 3: who he says are stalling progress and cost cutting, but

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Speaker 3: he also says he expects resistance.

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Speaker 5: I fully expect to be scrutinized and get a daily

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Speaker 5: proctology exam.

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Speaker 3: Basically, and must call for the impeachment of some officials.

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Speaker 3: He says they're being corrupt and activist and.

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Speaker 2: Karen one of the world's most successful multi strategy hedge

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Speaker 2: fund founders, Ken Griffin, is praising Elon musk efforts. The

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Speaker 2: Citadel CEO spoke at the UBS Financial Services Conference in Miami.

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Speaker 6: This is a man who slept on the floor of

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Speaker 6: his factory to make sure testls got produced. He will

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Speaker 6: do what it takes to win. We want people who

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Speaker 6: are in Washington who will.

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Speaker 2: Do what it takes to help the American taxpayer and

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Speaker 2: the American people Win Citadel CEO Ken Griffin, though did

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Speaker 2: criticize President Trump's approach to tariffs. He says the trade

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Speaker 2: plans dull the country's competitive edge and breed mistrust amongst

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Speaker 2: allies Nathan.

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Speaker 3: Many on the Democratic side of the aisle have not

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Speaker 3: been as supportive of the administration's efforts. Massachusetts Senator Elizabeth

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Speaker 3: Warren tells Bloomberg Balance of Power that Elon musk move

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Speaker 3: to shut down us AID is effectively a move to

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Speaker 3: shut down the government. Donald Trump, through his co president

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Speaker 3: Elon Musk, is in the business of trying to shut

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Speaker 3: down the government right now and doing so illegally. Senator

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Speaker 3: Elizabeth Warren also accused tru Ump and Musk of effectively

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Speaker 3: sidelining the nation's financial cops by shutting down the Consumer

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Speaker 3: Financial Protection Bureau. Here Senator Warren's full conversation with Bloomberg's

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Speaker 3: Joe Matthew and Kayley Lines on the Bloomberg Talks podcast

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Speaker 3: feed then Karen.

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Speaker 2: Senator Warren's comments come as The Wall Street Journal reports

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Speaker 2: the Trump administration is looking into plans to consolidate the

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Speaker 2: power of banking regulators without congressional approval. The journal says

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Speaker 2: administration officials are looking into whether they can collapse the

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Speaker 2: Federal Deposit Insurance Corporation the FDIC, into the Treasury Department.

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Speaker 2: The report says staff inside the FDIC and the Office

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Speaker 2: of the Controller of the Currency expect to hear from

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Speaker 2: the Department of Government Efficiency soon.

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Speaker 3: Meanwhile, on Capitol Hill yesterday, Nathan Senators heard from a

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Speaker 3: Federal Reserve Chair Jerome Powell, who testify to the Senate

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Speaker 3: Banking Committee. Powell told them he thinks the Central Bank

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Speaker 3: does not need to rush to lower rates.

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Speaker 7: As the economy evolves. We will adjust our policy stamps

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Speaker 7: in a manner that best promotes our maximum employment and

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Speaker 7: priced ability goals. If the economy remains strong and inflation

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Speaker 7: does not continue to move sustainably toward two percent, we

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Speaker 7: can maintain policy restrained for longer.

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Speaker 3: Von yields climbed after Fed Chair j Powell's comments, Markets

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Speaker 3: are pricing in around thirty three basis points of cuts

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Speaker 3: in twenty twenty five, with the next move not expected

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Speaker 3: until September. Powell will testify in the House today. Stay

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Speaker 3: with Bloomberg for full coverage of his remarks starting at

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Speaker 3: ten am Wall Street time on Bloomberg Radio and the

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Speaker 3: Bloomberg's podcast page on YouTube.

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Speaker 2: Well ahead of all that, Karen, investors will have a

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Speaker 2: key economic report to digest this morning. The Consumer Price Index,

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Speaker 2: says do out at eight thirty am Wall Street Time.

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Speaker 2: Let's get a preview now from Bloomberg's John Tucker. So, John,

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Speaker 2: what are we expecting?

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Speaker 8: Well?

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Speaker 9: Inflation Nathan proving to be stubborn as a mule. When

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Speaker 9: you strip out more vulnerable components, economists suspected jump three

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Speaker 9: tenths of eight percent month over month at three point

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Speaker 9: one percent on a yearly basis. Now, remember the federal

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Speaker 9: reserves target is two percent. If those turn out to

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Speaker 9: be the number in this morning's report, the Fed will

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Speaker 9: be in no rush to cut of indust rates. As

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Speaker 9: Chairman Pale indicated, January would mark the fifth month in

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Speaker 9: the last six that the core CPI has advanced three

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Speaker 9: tenths of a percent. That is consistent with stalled progress

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Speaker 9: and reducing inflation. The overall CPI probably will be driven

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Speaker 9: by higher prices for energy and food, most notably eggs.

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Speaker 9: Keep in mind, too, that a lot of companies and

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Speaker 9: service providers they tend to hike prices and fees at

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Speaker 9: the start of the year when consumers seem to be

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Speaker 9: more willing to absorb the extra costs. In New York,

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Speaker 9: I'm John Tucker, Bloomberg Radio.

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Speaker 3: All right, John, thank you. In addition to CPI, traders

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Speaker 3: continue to follow FED speak to get hints on the

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Speaker 3: path of interest rates. Yesterday, New York Fed President John

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Speaker 3: Williams said he expects inflation to slow toward two percent,

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Speaker 3: but notes that policy related on certainty clouds the economic outlook.

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Speaker 3: Williams added he'll closely watch prices to assess the impact

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Speaker 3: on tariffs. Today, traders will hear from Atlanta FED President

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Speaker 3: Raphael Bostik and Fedgunir Christopher Waller.

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Speaker 2: On the geopolitical front, careen, President Trump is hailing the

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Speaker 2: release of American Mark Fogel. The schoolteacher had been detained

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Speaker 2: in Russia since twenty twenty one. Fogel was at the

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Speaker 2: White House after his release.

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Speaker 10: The super organism of people that came to my support

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Speaker 10: and the love that I was given sustain me for

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Speaker 10: three and a half years, and.

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Speaker 2: Mark Fogel is calling President Trump a hero. The President

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Speaker 2: says the terms of Fogel's release were very fair, but

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Speaker 2: he didn't go into specifics. Trump says he hopes the

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Speaker 2: move will allow Russia to work toward ending the war

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Speaker 2: in Ukraine well Nathan.

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Speaker 3: President Trump also backed off threats to withhold aid from

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Speaker 3: Jordan after King of Dullah agreed to accept two thousand

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Speaker 3: ill children from Gaza. Trump had threatened to withhold aid

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Speaker 3: from Jordan and Egypt ahead of the King's visit Tuesday

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Speaker 3: should the countries not accept Palestinian refugees. President Trump reiterated

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Speaker 3: plans for the US to take ownership of Gaza and

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Speaker 3: for Jordan and Egypt to absorb Palestinians, which Arab states

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Speaker 3: are firmly against, and Trump's warning that Israel's break and

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Speaker 3: Trump's warning that Israel break it ceasefire if AMOST delays

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Speaker 3: the release of hostages by Saturday.

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Speaker 2: Finally, Karen Apple has renamed the Gulf of Mexico the

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Speaker 2: Gulf of America on its Apple Maps app. That follows

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Speaker 2: the executive order the President Trump signed on his first

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Speaker 2: day in office to change the name of the body

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Speaker 2: of water. Comes after the US government updated its official

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Speaker 2: map to reflect the new name as well. Alphabet's Google

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Speaker 2: has made a similar update to its Google Maps, so

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Speaker 2: has Microsoft's bing Maps.

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Speaker 3: Time now for look at some of the other stories

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Speaker 3: making news in New York and around the world. And

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Speaker 3: for that we're joined by Bloomberg's Michael bar Michael, good morning.

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Speaker 8: Good morning, Karen. The morning commute could be a bit

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Speaker 8: tricky after more winter weinther accumulating snow will linger into

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Speaker 8: this morning. For New York City and central New Jersey.

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Speaker 8: The snowfall began last night north and west of the city.

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Speaker 8: I barely got snow, if any, but in southern New

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Speaker 8: Jersey close to a half a foot fell, where a

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Speaker 8: winter storm warning was issued tonight. A new system light

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Speaker 8: snow returns, changing the rain over night and could cause

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Speaker 8: some icing problems before the rain ends Thursday morning. Meanwhile,

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Speaker 8: in Washington, d C. A winter's Storm warning remains in

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Speaker 8: effect until seven am. Heavy snow has also been falling

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Speaker 8: in mid Atlantic states. This first responder is with the

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Speaker 8: fire department in the Potomac Mills area of Virginia. If

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Speaker 8: you don't need to drive, you should be off the roads.

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Speaker 8: One of the biggest things that I've seen is that

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Speaker 8: a lot of accidents happen from people not being properly prepared.

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Speaker 8: He called it the most difficult fifteen months of his life.

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Speaker 8: New York Mayor Eric Adams denied that he broke the

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Speaker 8: law in his first public remarks since the Justice Department

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Speaker 8: instructed Manhattan federal prosecutors to drop the corruption case he faced.

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Speaker 8: Adams also says he realizes as many New Yorkers do

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Speaker 8: not trust.

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Speaker 11: Him no, but I must continue to regain your trust.

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Speaker 11: I have learned a lot over the last year, and

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Speaker 11: this experience has been humbling many or.

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Speaker 8: Adams went on to say we can put this cruel

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Speaker 8: episode behind us. President Trump's longtime confident, Steve Bannon, pleaded

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Speaker 8: guilty to a fraud charge relating to duping donors who

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Speaker 8: gave money to a fundraiser to build a wall along

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Speaker 8: the southern border. The plea deal means Bannon avoids jail time.

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Speaker 8: After yesterday's court hearing, Bannon said New York's law enforcers

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Speaker 8: should be investigated.

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Speaker 12: I'm calling on right now the Attorney General Pam Bonnie

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Speaker 12: to begin an immediate criminal investigation to Letitia James Alvin

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Speaker 12: Bragg Oliver for what they did to President Trump.

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Speaker 8: Finally, a dog from the Working Group is named beston

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Speaker 8: Show at the Westminster Kennel Club Dog.

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Speaker 3: Show for Beston's Show at the one and forty ninth

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Speaker 3: annual Westminster Kennel Club Dog Show.

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Speaker 5: I choose the Giant Sall.

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Speaker 8: The Giant Snauzer from New Jersey won the award at

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Speaker 8: New York's Madison Square Garden last night. Global News twenty

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Speaker 8: four hours a day and whenever you won it with

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Speaker 8: the Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg.

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Speaker 3: Herron Monty from New Jersey. I love it. Thank you,

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Speaker 3: Michael Barr. Time now for the Bloomberg Sports Update. Brownt

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Speaker 3: to you. I Tri State Outie. Here's John stash Hour,

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Speaker 3: John good lerning.

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Speaker 10: Thanks.

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Speaker 1: Karrent's top team in college basketball, the Auburn Tigers coming off.

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Speaker 1: I lost to Florida, but still ranked number one and

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Speaker 1: now twenty two and two with an eighty to sixty

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Speaker 1: eight win at Vanderbilt. Saturday, Auburn visits our tribal Alabamo,

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Speaker 1: who's ranked number two. Crimson tie twenty one and three,

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Speaker 1: Blue Out Texas one O three to eighty. Clayton Kershaw,

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Speaker 1: at age thirty six, will be back for an eighteenth

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Speaker 1: season with the LA Dodgers. He had knee and toe

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Speaker 1: injuries last season, only pitched seven games. That's a Bloomberg Sports.

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Speaker 6: Update Coast to coast.

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Speaker 2: I'm Bloomberg Radio Nition White on Sirius XM and around

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Speaker 2: the world on Bloomberg dot Com and the Bloomberg Business app.

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Speaker 6: This is Bloomberg Daybreak.

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Speaker 2: President Donald Trump is moving ahead with his push to

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Speaker 2: slash the size of the federal government. He assigned in

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Speaker 2: executive order for agencies to work with Elon Musk and

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Speaker 2: his Department of Government Efficiency and to hire no more

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Speaker 2: than one person for every four who leave the federal government.

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Speaker 2: Elon Musk was in the Oval Office as the President

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Speaker 2: issued that directive.

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Speaker 5: The people voted for major government reform, and that's what

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Speaker 5: people are going to get. They're going to get what

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Speaker 5: they voted for and for more.

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Speaker 2: This morning, we are joined by Terry Haynes, the founder

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Speaker 2: of Pangea Policy. It's great to speak with you this

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Speaker 2: morning after we saw that rare appearance from Elon Musk

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Speaker 2: defending the so called Doge effort, but at the same

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Speaker 2: time saying that you know, with all the revelations that

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Speaker 2: he's put online, there are going to be some mistakes

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Speaker 2: that he's going to need to be corrected. Is a

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Speaker 2: move fast and break things model the right approach when

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Speaker 2: it comes to reigning in the federal government.

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Speaker 6: Terry, good morning, Good morning, Nathan. I think what they've

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Speaker 6: concluded before the inauguration is that it's pretty much the

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Speaker 6: only way. One of the older adages of Washington has

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Speaker 6: never let process be the issue, and lots and lots

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Speaker 6: of presidents have followed that in pursuit of bigger goals.

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Speaker 6: Ronald Reagan, for example, came in in part on the

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Speaker 6: expectation that from his supporters that he'd do something broadly

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Speaker 6: similar to what's happening today. But they concluded that that

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Speaker 6: was going to actually break things. He didn't have the

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Speaker 6: political support for it or the political environment for it

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Speaker 6: with one House Democratic, and what would have you know

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Speaker 6: ended up happening is he ended up focusing on big

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Speaker 6: policy issues and kind of let the the machinery of

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Speaker 6: Washington aside. Same thing right before nine to eleven, Don

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Speaker 6: Rumsfeld wanted to end the Pentagon's a lot of waste,

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Speaker 6: fraud and abuse, and the next day we had nine

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Speaker 6: to eleven and that was the end of it. But

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Speaker 6: here I think they've decided this is the only way

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Speaker 6: to do things, and if they end up with seventy

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Speaker 6: five percent of what they propose and try to achieve

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Speaker 6: that'll be a good time for them.

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Speaker 2: Is it really the only way, though, Terry. I mean,

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Speaker 2: we've already seen the massive amount of lawsuits that have

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Speaker 2: put up against the DOJE effort, and lots of criticism

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Speaker 2: from Democrats as well when it comes to these ideas

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Speaker 2: that have been thrown out of you know, shutting down

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Speaker 2: certain agencies that have Congressional approval and would presumably need

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Speaker 2: Congress to say so to get rid of.

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Speaker 6: Well, these days, there will always be lawsuits, and I

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Speaker 6: would note for the audience that it's they're just injunctions.

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Speaker 6: What will end up happening is these things go fully litigated.

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Speaker 6: And that's fine. They expected that. I think Trump now

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Speaker 6: has said twice this week you know he expects that,

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Speaker 6: and he's pretty even keeled about it. They think that.

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Speaker 6: The second thing is that the machinery of Washington today

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Speaker 6: with the tiny Republican majorities, is one where you can't

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Speaker 6: get efficiencies done quickly and effectively. You know, whether it

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Speaker 6: be collapsing departments or agencies or anything else. And you know,

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Speaker 6: when you need sixty votes in the Senate, it's just

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Speaker 6: not going to happen. So there's that. Finally, you know,

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Speaker 6: what they're looking at is a situation where you know,

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Speaker 6: the government, excuse me, the public has long since supported

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Speaker 6: the idea of pursuing efficiencies in government, thank you. And

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Speaker 6: I talked a couple of months ago about this brewing

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Speaker 6: DOJE idea, and I said, look, I'm you know, they

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Speaker 6: want to get two billion or excuse me, two trillion efficiencies.

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Speaker 6: I guarantee you they can find half of that right

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Speaker 6: off the top, and they're they're working on that, you know.

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Speaker 6: But finally, I would also point out that they're not

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Speaker 6: talking about ending entire programs. They're not talking about ending

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Speaker 6: for an aid for example. What they're trying to do

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Speaker 6: is is you know, I would look at it as

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Speaker 6: essentially kind of purifying the stream and making sure that

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Speaker 6: the dollars that are going where they're supposed to go

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Speaker 6: are going for proper things and not for the long

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Speaker 6: laundry list parade of horribles that we've seen earlier.

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Speaker 2: There's still going to be a lot of question, isn't

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Speaker 2: there about whether Elon Musk should be leading this effort.

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Speaker 2: He's been named a special government employee, but he hasn't

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Speaker 2: been confirmed by the Senate. His position doesn't require Senate

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Speaker 2: confirmation because there's a question still, isn't there about what

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Speaker 2: exactly that position is. We got about a minute left.

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Speaker 6: Yeah, there are questions about that, and they're going to

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Speaker 6: be questions about that. You know, I'd say that the

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Speaker 6: two things. One is that you know, people that are

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Speaker 6: focusing on Musk Qualm Musk are missing the point. It's

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Speaker 6: you know, you're not We're not in a situation here

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Speaker 6: where the president has been supplanned somehow, or in a

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Speaker 6: situation where the president very clearly is saying, you know,

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Speaker 6: this is a guy who's doing this job before me

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Speaker 6: and subject to my approval. The other thing is, you know,

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Speaker 6: there's a political dimension to this, and the political dimension

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Speaker 6: hugely favors Republicans. On this Democratic Party is essentially split

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Speaker 6: right down the middle on whether they had to be

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Speaker 6: spending time on nattering on about Musk or actually getting

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Speaker 6: around a series of issues that actually help average people.

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Speaker 6: And you know, the folks who are going on and

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Speaker 6: on about Musk like this is some great constitutional crisis,

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Speaker 6: I think are missing a much bigger point.

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