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Speaker 1: Live from the Bloomberg Interacted Burger Studios. This is Bloomberg

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Speaker 1: day Break for Friday January. Coming up this hour, the

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Speaker 1: US hits the debt ceiling. Now the debate over what

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Speaker 1: to do about it is just beginning. I'm all Street.

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Speaker 1: Netflix shares rally, a subscriber growth tops estimates, More feed

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Speaker 1: officials call for higher rates even as inflation eases, and

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Speaker 1: another crypto firm files for bankruptcy in the wake of

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Speaker 1: the ft X collapse. I'm a me Morris of federal

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Speaker 1: court orders Donald Trump to pay a million dollars for

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Speaker 1: a bogus lawsuit, and New York state revenue tops estimates

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Speaker 1: by billions of dollars. I'm John Stash and sports. The

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Speaker 1: net slump continued with the laws in Phoenix, the Rangers

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Speaker 1: lost to the Bruins. The Devils and Islanders both lost

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Speaker 1: in overtime. That's all s traded ahead on Bloomberg Daybreak

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Speaker 1: on Bloomberg eleven, Free on New York, Bloomberg one, Washington,

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Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine

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Speaker 1: sixties and Francisco Sirius x M one nineteen and around

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Speaker 1: the world on Bloomberg Radio. Dot Com and via The

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Speaker 1: Bloomberg Business. Good morning, I'm Nathan Hagar and I'm Cameron Moscow.

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Speaker 1: Here are the stories we're following today. Let's start in

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Speaker 1: Washington this morning, where a dispute could have market implications

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Speaker 1: over the next several months. The US has reached its

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Speaker 1: debt ceiling and now the Treasury departments stepping into retirement

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Speaker 1: funds to avoid a default. But those extraordinary measures, as

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Speaker 1: they're called, will only last till June. Democratic Senator Joe

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Speaker 1: Mansion is floating a compromise, raised the debt ceiling and

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Speaker 1: vote to create bipartisan panels to study government spending. We're

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Speaker 1: going to target basically the debt and increasing of the

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Speaker 1: debt to how we can basically prevent that from continue

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Speaker 1: to increase as it does and start downward trend. And

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Speaker 1: there has to be some discipline and there has to

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Speaker 1: be some sacrifice. Senator Mansion spoke with Bloomberg's David Weston

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Speaker 1: from the World Economic Forum in Davos, but his plan

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Speaker 1: is unlikely to fly in a deeply divided Congress. That's

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Speaker 1: according to Bloomberg Politics contributor Jeanie chan Zano, as whuch

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Speaker 1: as I give him credit for trying to push forward

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Speaker 1: the idea of a bipartisan anything that the reality is

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Speaker 1: tying together. The lifting or suspension of the debt ceiling

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Speaker 1: with spending is a non starter. Jennie Chanzano spoke with

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Speaker 1: our Washington corresponded Joe Matthew on Bloomberg Sound On. You

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Speaker 1: can catch the show weekdays at five pm Eastern on

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Speaker 1: Bloomberg Radio, and we'll have more of our interview with

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Speaker 1: Senator Mansion from Davos coming up shortly on Bloomberg Daybreak. Well,

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Speaker 1: Nathan returned to the markets. Now in US futures are

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Speaker 1: little change this Friday morning. We're closing out a week

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Speaker 1: that saw the S and P five hundred fall for

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Speaker 1: three straight sessions thanks to week economic data. Hank Smith,

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Speaker 1: as chief investment officer at Haverford Trust, I think there

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Speaker 1: is a chance that the gets lower low than the

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Speaker 1: October two low, But our view is it's likely that

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Speaker 1: we're going to have a recession, which equally as likely

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Speaker 1: that it's going to be mild and brief. Trust Hank

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Speaker 1: Smith says a key thing to watch today is the

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Speaker 1: mass expiration of options. It's said to be the biggest

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Speaker 1: January event in a decade. Well, one bright spot in

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Speaker 1: stocks this morning, Karen is Netflix. That company reported earnings

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Speaker 1: late yesterday that outperformed estimates, and we get the latest

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Speaker 1: Live with Bloomberg's John Tucker. Good morning, John, Good morning,

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Speaker 1: ninth of the streaming giant, adding seven point seven million

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Speaker 1: new subscribers in the fourth quarter that beat forecast. New

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Speaker 1: content brought in more viewers. The series Wednesday in Adam's

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Speaker 1: Family Spent Off was the company's third most popular series ever. Well,

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Speaker 1: the documentary Harry and Meghan was also a hit. Netflix

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Speaker 1: also had its own drama in the boardroom, the co

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Speaker 1: founder Read Hastings a stepping aside the CEO post now

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Speaker 1: being filled by his two longtime associates, Ted Surrandos and

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Speaker 1: Greg Peters. Shares are up over five percent pre market.

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Speaker 1: Last year, the company saw more than a third of

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Speaker 1: its value wiped out after poor showing in the first quarter.

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Speaker 1: Live in New York. I'm John Tucker, Bloomberg Daybreak. All right, John,

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Speaker 1: thank you. Well. On the economic front, we are seeing

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Speaker 1: more Fed officials call for high interest rate sense despite

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Speaker 1: signs inflation is cooling. Here's Federal Reserve Bank of New

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Speaker 1: York President John Williams some signs the inflations modtere. It

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Speaker 1: remains far too high, and it is my number one

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Speaker 1: concern going into twine twine free. And that sentiment from

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Speaker 1: John Williams was also echoed by the Vice Chair of

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Speaker 1: the Federal Reserve, Lyle brainerd. Inflation has declined in recent months,

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Speaker 1: but inflation is very high and it's going to take

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Speaker 1: time and resolve to get it back. And Vice Chair

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Speaker 1: Lyle brainer did not explicitly state a preference for the

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Speaker 1: size of the Fed's next rate. High traders are currently

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Speaker 1: pricing in a quarter point increase, the lowest yet in

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Speaker 1: the central banks current hiking cycle. We're wrapping up the

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Speaker 1: final day of the World Economic Forum today, Karen, and

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Speaker 1: one message is becoming clear. At Davos. Finance executives say

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Speaker 1: they now see reasons to be upbeat. We caught up

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Speaker 1: with Bank of America CEO Brian moynihan in the US

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Speaker 1: research team, which is the best in the business, as

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Speaker 1: a mild recession predicted sort of mid this year. In

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Speaker 1: next year, they pushed that out, and so why they

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Speaker 1: keep pushing out It's the strength of the US consumer.

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Speaker 1: They have the FED getting over five five five and

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Speaker 1: a quarter. Just this week, they moved at to three

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Speaker 1: bases point great rise as opposed to fifty. Bank of

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Speaker 1: America's CEO Brian moynihan spoke with Bloomberg's David Weston in Davos.

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Speaker 1: He joins Morgan Stanley's James Gorman and City Groups Jane

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Speaker 1: Frasier with signs of conscious optimism. Well. Speaking of Wall

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Speaker 1: Street's CEO, S Nathan JP, Morgan Chase is out with

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Speaker 1: fresh details on Jamie Diamond's pay. The bank is keeping

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Speaker 1: the CEO's total compensation unchanged. He'll get thirty four and

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Speaker 1: a half million for his work in two. It's a

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Speaker 1: year where the firm's profit fell by almost a quarter.

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Speaker 1: In JP Morgan Stock notched its worst annual performance in

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Speaker 1: more than a decade. Let's turn to crypto now, Karen

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Speaker 1: and another firm in the space filing for bankruptcy. It's

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Speaker 1: the latest fallout from the collapse of f t X Bloomberg.

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Speaker 1: Steve Rappaport joins US Live with the details. Good morning,

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Speaker 1: see Good Morning, Nathan and Karen. Genesis Global goes broke,

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Speaker 1: filing for Chapter eleven protection to keep running while the

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Speaker 1: crypto lender works to repay creditors. Genesis, in a statement,

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Speaker 1: says creditors will end up owning the reorganized business if

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Speaker 1: it fails to sell assets or raise money. The company

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Speaker 1: has one fifty million dollars to fund itself in bankruptcy.

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Speaker 1: Back in November, Genesis warned potential investors it was running

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Speaker 1: dry after ft X went under and halted customer withdrawals

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Speaker 1: to stay afloat. Live in New York. I'm Steve Rappaport,

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Speaker 1: Bloomberg Daybreak. It is forty degrees in Central Park. Clouds

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Speaker 1: breeze today, maybe a lingering shower. We'll get into the

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Speaker 1: upper forties. It'll turn partly cloudy tonight with a lone

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Speaker 1: near thirty five. Time now to take a look at

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Speaker 1: some of the other stories making news in New York

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Speaker 1: and around the world. Good morning, Amy Morris, Good morning,

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Speaker 1: Nathan Hagar. A federal judge has ruled Donald Trump has

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Speaker 1: to pay nearly a billion dollars for filing a bogus lawsuit.

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Speaker 1: The judge says the suit against Hillary Clinton and dozens

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Speaker 1: of the former presidents perceived political enemies was quote brought

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Speaker 1: in bad faith for an improper purpose. The New York

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Speaker 1: Times report The ruling was the latest setback for Trump,

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Speaker 1: who also faces a broad range of legal problems and

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Speaker 1: criminal investigations, and his lawyers are increasingly under scrutiny themselves

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Speaker 1: for their actions in those cases. New York State has

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Speaker 1: collected seven point seven billion dollars more in taxes in

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Speaker 1: the first nine months of the fiscal year than forecast.

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Speaker 1: State Comptroller Thomas Dinnapoli says much of that was from

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Speaker 1: personal income tax collections and that the tax collections are

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Speaker 1: exceeding expectations, but that concerns of an economic downturn create uncertainty.

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Speaker 1: A slowdown on Wall Street, lower banker bonuses, and a

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Speaker 1: potential recession could up end the state's finances. New York

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Speaker 1: Governor Kathy Hokel wants to bring one Buffalo Bill's player

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Speaker 1: to New York City. The governor was at an event

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Speaker 1: in East Harlem when she talked with Damar Hamlin. She

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Speaker 1: says he wants to use the gift of his story

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Speaker 1: to inspire others, and I said, you can be a

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Speaker 1: great voice to join with me and letting you know

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Speaker 1: people know that through sports or music, can culture and dance.

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Speaker 1: At places like this, they can have a better outcome,

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Speaker 1: so so I'm going to get him up here. Don't

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Speaker 1: know when Hamlin suffered cardiac arrest on the field during

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Speaker 1: a primetime game between the Bills and the Cincinnati Bengals.

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Speaker 1: He tweeted later that he is excited to see how

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Speaker 1: their future collaborations will help Nasall County officials are pen

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Speaker 1: pointing the source of an increase in overdoses over the

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Speaker 1: past week. Police and health officials say many of the

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Speaker 1: recent overdoses are linked to counterfeit prescription pills or presses.

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Speaker 1: The pills that are being circulated may contain fentonil and

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Speaker 1: could be deadly. Global news twenty four hours a day

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Speaker 1: on air and on Bloomberg Quicktake, powered by more than

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Speaker 1: twenty journalists and analysts and more than one twenty countries.

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Speaker 1: I'm maybe Morris, this is Bloomberg. Nathan all right, Amy,

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Speaker 1: thank you time now for our Bloomberg Sports update, brought

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Speaker 1: to you by try Stay Dutie for that and bring

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Speaker 1: in John stash Our all Nathan, thanks. The Giants either

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Speaker 1: today hit the Turnpike heading South playoff game tomorrow night

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Speaker 1: with their division Riyals. Giants have lost their last nine

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Speaker 1: games that they have played in Philadelphia. The Giants quarterback

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Speaker 1: is Daniel Jones. Game is different. You know, I think

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Speaker 1: UH will approach this um like we would any other game.

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Speaker 1: But but they're good, good team. It's a good environment. Uh.

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Speaker 1: They bring a lot of energy. Fans are passionate UM.

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Speaker 1: But like any road game, will prepare for that and

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Speaker 1: be able to uh, you know, handle that UM as

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Speaker 1: part of the game. The Eagles, top seeds in the NFC,

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Speaker 1: beat the Giants twice this year. They had a by

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Speaker 1: last week's fifth ever playoff game between the two teams,

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Speaker 1: and they both won twice. Sunday in the NFC, it's

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Speaker 1: Dallas at San Francisco. Will see how Brett Maher kicks

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Speaker 1: for the Cowboys coming off four missed extra points. The

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Speaker 1: Cowboys did sign another kicker, but they say Maher made

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Speaker 1: all his kicks yesterday in practice. A blow to the

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Speaker 1: next center Mitchell Robinson, key player with his defense and rebound.

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Speaker 1: He's got a broken thumb, likely to miss a month.

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Speaker 1: Nick's played tonight in Atlanta. The networ in Phoenix. The

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Speaker 1: Sun's let by twenty and the third quarter then held

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Speaker 1: on one seventeen to one twelve, and the Nets are

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Speaker 1: owing four since the Kevin Duran injury at the Garden,

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Speaker 1: Rangers didn't score until late They lost to the Bruins,

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Speaker 1: of the best record in the NHL, three to one.

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Speaker 1: Devil's lost in overtime at Seattle for three in the

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Speaker 1: Islanders a three two overtime lost in Buffalo as the

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Speaker 1: Sabers scored twelve seconds into ot College hoops. The Rutgers

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Speaker 1: lost at Michigan State seventy to fifty seven. The x

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Speaker 1: Yankee closed our oldest Chapman signed with Kansas City Coco

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Speaker 1: Golf into the third round our fourth round at the

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Speaker 1: Australian Open. On Jabber, second seed on the women's side,

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Speaker 1: lost her match John Stashward Bloomberg Sports live from coast

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Speaker 1: to coast, from New York to San Francisco, Boston to Washington,

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Speaker 1: d C. Nationwide on Sirius x AMP, the Bloomberg Business app,

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Speaker 1: and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning.

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Speaker 1: I'm Nathan Hager, and we want to take you back

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Speaker 1: to Davos now to bring you our interview with Senator

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Speaker 1: Joe o Manship, the Democrat from West Virginia. He spoke

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Speaker 1: with Bloomberg's David weston about his call for a bipartisan

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Speaker 1: solution to avert a government default that threatens to jolt

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Speaker 1: global markets. Man should also addressed questions about his plans

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Speaker 1: for re election next year. Let's listen into that conversation. Now,

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Speaker 1: we will pay our debts. We always have, We always will.

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Speaker 1: How mess is going to get getting from point A

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Speaker 1: to point B, we don't know yet. But I'd like

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Speaker 1: to see really truly a coalition of a bipartisan bicameral

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Speaker 1: Democrats and Republicans putting a group together that says we're

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Speaker 1: gonna look at all the trust funds to find out

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Speaker 1: the deficiencies when they're going to be insolvent and what

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Speaker 1: we can do to prevent that, and then basically have

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Speaker 1: a piece of legislation that we're saying, Okay, we will

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Speaker 1: make this deal, will raise the debt setting if you

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Speaker 1: allow us to have give the American public a look

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Speaker 1: at what we're dealing with and recommendations will make and

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Speaker 1: have a vote on the floor whether it goes up

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Speaker 1: or not. But at least it identifies it's serious. And

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Speaker 1: the same thing with the thirty one plus trillion dollars

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Speaker 1: of debt. So that sounds a little bit like some

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Speaker 1: commissions we've seen in the past, like base closings and

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Speaker 1: on Social Security. Where are you on that? Are you

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Speaker 1: starting to put that together the prospect. I'm just strolling

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Speaker 1: it out to make people. My dear friend Mitt Romney

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Speaker 1: has been working on the Trust Act. I joined him

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Speaker 1: on that. I think it's it's tremendous to identify that

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Speaker 1: we've got social Security and Medicare, we got the Highway trust.

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Speaker 1: He's been very good leading that, And we talked about

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Speaker 1: remember the old uh the bowls Simpson, let's look at

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Speaker 1: a hybrid of something that we're gonna have to agree

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Speaker 1: that we have a tremendous amount of debt that we're

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Speaker 1: writing checks our kids can't cash. So if you want

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Speaker 1: to have concerns about should we or should we not,

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Speaker 1: absolutely we should. We should pay our debts. Should we

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Speaker 1: allow him to grow disproportionately to where we have more

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Speaker 1: trouble every year? Coming to that conclusion to pay the

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Speaker 1: debts when we could have done something Kevin McCarthy is

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Speaker 1: a wonderful opportunity for him to say, listen, let's act

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Speaker 1: like adults. We've got a debt. Whose foot fault? We're

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Speaker 1: all at fault. How do we fix it together and

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Speaker 1: move forward? Well, that sounds like eminently good sense to me.

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Speaker 1: Do you have time because we've heard from Janiellary already

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Speaker 1: she's taking extraordinary measures. There's a speculation about June July

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Speaker 1: we're gonna actually run out of the money. Do you

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Speaker 1: have time to get all that accomplisutions described before. We're

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Speaker 1: not talking about bills. We're talking about basically a framework

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Speaker 1: to bring a bill to the floor within a ninety

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Speaker 1: day period. If we agree, yes, we're gonna do. Target

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Speaker 1: that we're talking of the trust. Make sure that we

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Speaker 1: know what we're dealing with. We're gonna target basically the

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Speaker 1: debt and increasing of the debt to how we can

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Speaker 1: basically prevent that from continue to increase as it does

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Speaker 1: and started downward trend. And there has to be some

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Speaker 1: discipline and there has to be some sacrifice. What about

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Speaker 1: strings attached to an increase in the debt? Selling along

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Speaker 1: lines you're saying, say that we don't have time to

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Speaker 1: get all the work done, get all the approvals through,

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Speaker 1: but we want a commitment that we're going to go

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Speaker 1: on the path you're describing right now. If you were increased,

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Speaker 1: if you come here and says we're gonna cut military,

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Speaker 1: We're gonna cut the Social Security in and all the

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Speaker 1: different safety things. You have to have your military for

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Speaker 1: the defense. We have an a geo political unrest. You're

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Speaker 1: not going to leave senior citizens who have worked and

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Speaker 1: paid into it stranded. So quick talking and scaring them

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Speaker 1: Jesus out of people. Find a path that works, and

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Speaker 1: you can't do it, just okay, here's we gotta do.

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Speaker 1: If you do this, then I'll vote for If you

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Speaker 1: don't do this, I'm gonna vote against it. I'm not

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Speaker 1: going to hold hostage. I want to get a reasonable

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Speaker 1: approach to find something that has long lasting and has results,

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Speaker 1: long lasting results. What about the White House? What the present?

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Speaker 1: But saying we're not gonna even negotiate, I'm not sure

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Speaker 1: how that works right now. What he's saying on negotiation,

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Speaker 1: he don't he's not. I don't blame it. Don't be

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Speaker 1: held hostage. They shouldn't be held hostage. You can't help

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Speaker 1: You can't hold the good faith of the greatest economy

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Speaker 1: in the world hostage by saying we're gonna destroy your

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Speaker 1: credit ratings. But the rest of the world and how

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Speaker 1: they think about our country, how they investor buy our

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Speaker 1: bonds and and and things of that sort, that that's

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Speaker 1: something that can happen. It was done in two thousand eleven,

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Speaker 1: two thou thirteen, it didn't work out. Well, why would

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Speaker 1: they try to get But there's an awful lot of

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Speaker 1: leverage to do something very very constructive that will be productive.

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Speaker 1: There are others that are willing to join. I think

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Speaker 1: there is, I there's there's there's a growing amount of

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Speaker 1: people that would like to say, Okay, how do we

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Speaker 1: fix this. I don't know until I get Democrats and

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Speaker 1: Republicans who are like mine that put the country before

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Speaker 1: the party. But if you're just thinking, well let me

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Speaker 1: see if we don't fix this, I can blame you

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Speaker 1: for that. And if you're a d or and are,

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Speaker 1: you're blaming one side or the other. So you're not

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Speaker 1: looking for solutions. You're looking at basically create more chaos

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Speaker 1: within the political and that's not what we need right now.

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Speaker 1: And I'm hoping that Kevin I'm I didn't tell Kevin

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Speaker 1: McArthur right now, whatever I can do to help you

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Speaker 1: and work with you, I want you to succeed election.

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Speaker 1: You get the wild one Democrat. I really haven't made

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Speaker 1: that decision. I really haven't. I'm I'm so engaged basically

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Speaker 1: in trying to bring this country together, to unite the

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Speaker 1: country to where people aren't afraid to say, hey day,

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Speaker 1: that makes sense. I'm gonna work with you on that.

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Speaker 1: It might be a the opposite party. They're almost afraid

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Speaker 1: to have a conversation. It used to be it used

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Speaker 1: to be guilt by by association. Now it's guilt by conversation.

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Speaker 1: That's awful. So we've got it. We've got to bring

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Speaker 1: this back. This is Bloomberg Daybreak Today, your morning brief

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Speaker 1: Hager and I'm Karen Moscow. Join us again tomorrow morning

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