Speaker 1: Live from the Bloomberg Interactive Berger Studios. This is Bloomberg
Speaker 1: day Break for Wednesday, January four three. Coming up this hour,
Speaker 1: Kevin McCarthy's pushed to become House speaker suffers a historic setback.
Speaker 1: F d X founder Sam Bankman Fried pleas not guilty
Speaker 1: to criminal charges. We get more clues on FED policy
Speaker 1: as minutes from the last meeting are released, and Kathy
Speaker 1: wood It doubles down on Tesla yet again. Demand charged
Speaker 1: with shooting up a New York subway pleads guilty. Plus
Speaker 1: day one in the House for in Battle Long Island
Speaker 1: Representative George Santos, Michael bar More, I'm John Stagehoward towards
Speaker 1: the latest done de bar Hamlem the Rangers and Islanders
Speaker 1: both Long Biggie's losses for St. John's and seton Hall.
Speaker 1: That's all straight ahead on Bloomberg day Break on Bloomberg
Speaker 1: eleven Trio, New York, Bloomberg one, Washington, d C, Bloomberg
Speaker 1: one six one, Boston, Bloomberg nine sixties, San Francisco, Sirius
Speaker 1: x M one nineteen and around the world on Bloomberg
Speaker 1: Radio dot Com and via The Bloomberg Business add Good morning,
Speaker 1: I'm Nathan Hagar and I'm Karen Moscow. US Dock Index
Speaker 1: futures are on the rise this morning and which the
Speaker 1: markets all day long year on Bloomberg Right now, SMP
Speaker 1: futures are up twelve points or three tens of a percent.
Speaker 1: DAL future is up two tens of a percent or
Speaker 1: sixty five points. At NAST day futures up half percent
Speaker 1: or fifty one points, and the tenure Treasury is up
Speaker 1: twelve thirty seconds. The yield there's three point six nine percent.
Speaker 1: The yield on the two year at four point three
Speaker 1: four percent nine Max Screwed Oil down two point six
Speaker 1: percent out a dollar ninety six and seventy four dollars
Speaker 1: ninety seven cents of barrel and Co mex School is
Speaker 1: up one percent at eighteen sixty four unnounced Nathan. All right, Karen.
Speaker 1: We'll have more on markets in a minute, but we
Speaker 1: begin with political turmoil in Washington. After three rounds of voting,
Speaker 1: House Republican leader Kevin McCarthy has failed to secure the speakership.
Speaker 1: Amy Morris has the latest from our Bloomberg newsroom in Washington.
Speaker 1: McCarthy continued negotiations overnight after the House abruptly adjourned when
Speaker 1: three rounds of balloting failed to elect a Speaker of
Speaker 1: the House. This is the first time in one hundred
Speaker 1: years and the second time since the Civil War that
Speaker 1: a House speaker was not elected on the first ballot.
Speaker 1: McCarthy says he will not withdrawn, so I think from
Speaker 1: the whole perspective, we talk's lawmakers will reconvene at noon
Speaker 1: today for another round of votes to elect a speaker.
Speaker 1: In Washington, I'm anymore is Bloomberg daybreak and Amy, thank
Speaker 1: you on this bload at Kevin McCarthy has opened up
Speaker 1: a rift with a GOP. Former acting White House Chief
Speaker 1: of Staff mcmulvaney is co founder of the House Freedom Caucus.
Speaker 1: He says Republicans who voted against McCarthy are being hammered
Speaker 1: in conservative media outlets. They don't want to make it
Speaker 1: look like the Republicans are complete idiots when it comes
Speaker 1: to running the country, and that's sort of the message,
Speaker 1: you know that coming out of the House today is
Speaker 1: that we don't know how to govern and that's not
Speaker 1: a good thing for our brand. And former White House
Speaker 1: Chief of Staff mc mulvaney's our Washington corresponded Joe Matthew
Speaker 1: on Bloomberg Sound On. Catch the show weekdays at five
Speaker 1: pm Eastern on Bloomberg Radio. And here more of that
Speaker 1: interview coming up shortly on Bloomberg Daybreak. I'm staying in Washington, Karen.
Speaker 1: The White House is taking in its Southwest Airlines. The
Speaker 1: Biden administration says it will hold Southwest responsible for massive
Speaker 1: flight delays over the holidays. Bloomberg's Sad Baxter has that story.
Speaker 1: The White House says Southwest Airlines failed its customers point blank.
Speaker 1: White House spokeswoman Karine Jean Pierre says all cancelations December
Speaker 1: were controllable. She says that is according to Southwest. Well,
Speaker 1: every major airline space challenges from a pre Christmas storm,
Speaker 1: that wreck that wrecked havoc on the aviation system. All
Speaker 1: major airlines except for one, which is Southwest. Clearly we're
Speaker 1: able to recover quickly, and she says the Department of
Speaker 1: Transportation will make sure Southwest makes their customers whole. In
Speaker 1: San Francisco, I'm at Baxter Bloomberg Daybreak, all right, and
Speaker 1: thank you all. It's shaping up to be one of
Speaker 1: the highest profile white collar fraud cases and years the
Speaker 1: case of collapsed crypto exchange f t X is now
Speaker 1: making its way to the courtroom, and we get the
Speaker 1: very latest Live with Bloomberg. Steve Rappaport, Good morning, Steve,
Speaker 1: Good morning, Karen and Nathan. Disgraced f t X founder
Speaker 1: Sam Bankman Fried pled not guilty to eight criminal charges,
Speaker 1: including wire fraud and campaign finance violations. Authority say SPF
Speaker 1: duped investors out of one point eight billion dollars before
Speaker 1: his crypto company went belly up. Bankman Freed was released
Speaker 1: on two hundred fifty million dollars bail after being extradited
Speaker 1: to the US. Prosecutors want a judge to impost additional
Speaker 1: bail conditions. Bankman Fried's trial is scheduled to begin in October,
Speaker 1: Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Thanks Steve.
Speaker 1: Turning to markets now. Wall Street began the new year
Speaker 1: very much like two with losses Apple and Tesla led
Speaker 1: stock slore with the SMP five hundred falling four tenths
Speaker 1: percent yesterday. David Dietz is senior portfolio strategist at Pepack
Speaker 1: Private Wealth Management. It is a new counter year, but
Speaker 1: it's the same old problem. Continue to plague us here.
Speaker 1: I think recession concerns are probably at the top, particularly
Speaker 1: for equity investors, because uh, that could hurt corporate earnings,
Speaker 1: and that's the lifeblob for stuck p pack Private Walt
Speaker 1: David diet says he's concerned there is not concrete evidence
Speaker 1: inflation has peaked. Nathan, and we see today how the
Speaker 1: inflation picture is impacting views at the Federal Reserve. Minutes
Speaker 1: of the Central banks December meeting are released this afternoon.
Speaker 1: We get more from Bloomberg's vine down with inflation staging
Speaker 1: a dramatic break at the FED lifted its benchmark interest
Speaker 1: rate from zero to four point five percent over the
Speaker 1: course of two By many accounts, the Fed will keep tightening,
Speaker 1: lifting the federal funds rate to five percent or even higher.
Speaker 1: Bloombrig economics as key drivers of the inflation rampage, such
Speaker 1: as rising labor course, are alive and well fed. Jared's
Speaker 1: your own Palace said, central bankers still have some ways
Speaker 1: to go. Finny Dells Bloomberg day break. All right, Vinnie, thanks,
Speaker 1: you got a couple inflation readings out of Europe this morning. Friend.
Speaker 1: Inflation unexpectedly slowed in December, consumer prices rose six point
Speaker 1: seven percent from a year earlier. That's after record increases
Speaker 1: of seven point one percent in October November, and food
Speaker 1: inflation in UK stores jumped to a record high thirteen
Speaker 1: point three percent last month. And finally, Nathan cathy Wood
Speaker 1: continues to double down on Tesla, the investor about more
Speaker 1: than one hundred seventy six thousand shares the electric vehicle producer.
Speaker 1: The purchase came yesterday as Tesla stock plunge twelve percent.
Speaker 1: That's the biggest one day drop in more than two years.
Speaker 1: Was Exchange traded funds have bought more than nine hundred
Speaker 1: thirty eight thousand shares of Tesla since October, and this morning,
Speaker 1: Tesla shares are up almost two percent in early trading.
Speaker 1: Futures are up as well. Care and S and P
Speaker 1: futures right now are up fourteen points. That's the game
Speaker 1: of four tenth percent down. Futures are up seventy nine points,
Speaker 1: NASAAC futures leading the games up fifty nine points or
Speaker 1: a half percent, and the tenure treasury is up thirteen
Speaker 1: thirty seconds. Yell three point six nine percent. Local headlines
Speaker 1: and a check of sports just ahead This is Bloomberg
Speaker 1: Sound six oh seven on Wall Street, fifty seven degrees
Speaker 1: in Central Park. It's gonna be rainy this afternoon, mild
Speaker 1: two with highs and the low sixties, getting down to
Speaker 1: the upper forties tonight. Michael barrs here with more than
Speaker 1: what's going on in New York and around the world.
Speaker 1: Good morning, My call you, Good morning. Nathan, the man
Speaker 1: accused of shooting up in New York City subway car,
Speaker 1: pleaded guilty yesterday. Frank James shout and moved to ten
Speaker 1: passengers on the Manhattan bound N train in Brooklyn, April twelve.
Speaker 1: He did not say why, but James conceded, while I
Speaker 1: was on the train, I fired a weapon. James said
Speaker 1: he did not intend to kill anyone, but told the
Speaker 1: judge he was fully aware that deaths could occur as
Speaker 1: a result of discharging a firearm in such an enclosed space.
Speaker 1: Prosecutors revealed James had been planning the attacks since twenty seventeen,
Speaker 1: and even conducted a trial run. He faced his life
Speaker 1: in prison. It was day one Foreign battled Representative George
Speaker 1: Santos in Congress, and it was far from a house
Speaker 1: party when reporters shouted questions, Jimmy, you have the Long
Speaker 1: Island Republican did not answer questions and once in the
Speaker 1: House Chamber, sat by himself. Santo's admits he lied about
Speaker 1: his resume, including his education and work. There are calls
Speaker 1: for him to resign. The man suspected of killing four
Speaker 1: University of Idaho students could arrive back in Idaho today.
Speaker 1: Brian Coburger agreed to go voluntearily during a court hearing
Speaker 1: in Pennsylvania yesterday. Major Christopher Paris is with the Pennsylvania
Speaker 1: State Police. Arrangements currently are being made to deliver Coburger
Speaker 1: back to Idaho, where he can have continued to process
Speaker 1: and face these charges. The father of one of the victims,
Speaker 1: Kay League Gonclave's, welcome Coburger's arrest. It felt like a
Speaker 1: cloud was lifted off of us. It definitely provided belief
Speaker 1: in comfort to know that things were progressing. Coburger faces
Speaker 1: four counts of murder and one count of burglary. Emergency
Speaker 1: crew sifted through the rubble of a building struck by
Speaker 1: Ukrainian rockets, killing at least eighty nine Russian soldiers. It
Speaker 1: happened in the town partially Russian occupied in the Eastern
Speaker 1: Danesque region. A rule change by the FDA will allow
Speaker 1: a broader range of pharmacies to fill prescriptions for the
Speaker 1: abortion pill known as myth of pristone. The pharmacy must
Speaker 1: meet certain requirements and prescriptions can only be written by
Speaker 1: certified healthcare providers. Global News twenty four hours a day
Speaker 1: on air and on Bloomberg Quick Tank, powered by more
Speaker 1: than seven hundred journalists and analysts more than a hundred
Speaker 1: twenty countries. Michael Barron, this is Bloomberg, Nathan, Thanks Michael
Speaker 1: six o nine on Wall Street time for the Bloomberg
Speaker 1: Sports Update, brought to you by Tri State out He
Speaker 1: here's John stash Hour. All right, Nathan to mar Hamlin's
Speaker 1: uncle says, his nephew and still fighting the Buffalo Bill
Speaker 1: safety remains an intensive care and critical condition that Cincinnati
Speaker 1: hospital his heart because apparently was suscitated not only on
Speaker 1: the field Monday night, but again in the hospital. Reaction
Speaker 1: to Hamlin yesterday from longtime Steelers coach Mike Tomlin, that's
Speaker 1: a really the whole thing for me being a Pittsburgher
Speaker 1: and that young man being a Pittsburgh I've known that
Speaker 1: guy probably says he was about twelve. Um just got
Speaker 1: a lot of respect and love for him as a
Speaker 1: human being, his commitment to the pursuit of his goals,
Speaker 1: and drain their kids. You need to be reports the
Speaker 1: NFL wanted the game to be resumed. The league insisted
Speaker 1: that wasn't the case. In the NFL did announce the
Speaker 1: game will not be resumed this week. Bills and Bengals
Speaker 1: will play their scheduled games Sunday, which makes it scene
Speaker 1: they'll end up playing one fewer game and the a
Speaker 1: f C seedings was determined by win percentage. Carolina Hurricanes
Speaker 1: came to the Garden having won eleven a row, didn't
Speaker 1: trail until kay Andre Miller go midway to the third period.
Speaker 1: The Rangers scored three in the third and they beat
Speaker 1: the Keynes five to three. Of The Islanders won six
Speaker 1: two at Vancouver. Matthew bars All had a goal to
Speaker 1: assist Nix her home tight for San Antonio and the
Speaker 1: Nets bring their twelve game winning streak to Chicago. St.
Speaker 1: John's Blue Ella lost at home to Marquette in nineties
Speaker 1: six to eighty five in the Red Storm. Now just
Speaker 1: one and four in the Big East. We're seeing Hall
Speaker 1: lost like twenty two at Crainton, Yankees of hired Brian
Speaker 1: sabe into assist GM Brian Cashman. Sabian started his career
Speaker 1: in the Yankee front office and then spent thirty years
Speaker 1: with the San Francisco Giants. I'm John Stash Bloomberg Sports John.
Speaker 1: Thanks Bloomberg. Sports Report was brought to you by Audie.
Speaker 1: Don't let someone else drive off in the Audi model.
Speaker 1: You've always wanted to visit your local Tri state Audie
Speaker 1: dealer to get behind the wheel of yours today, or
Speaker 1: visit Autie Offers dot com for more information. What comes
Speaker 1: next in the speakership fight on Capitol Hill. We'll get
Speaker 1: insights on that live from Wendy Schiller, director of the
Speaker 1: Topman Center at Brown University. That's just ahead. First SMP
Speaker 1: futures are higher by fourteen points, staff futures up eighty
Speaker 1: five NASTACK futures up sixty three points. The tenure treasury
Speaker 1: is up thirteen thirty seconds, yield three point six eight percent,
Speaker 1: Nimex crew down two and a half percent at seventy
Speaker 1: oh for a barrel. Comics gold up one point one
Speaker 1: percent at eighteen sixty six ten announced, and the Euro
Speaker 1: trading at one point zero six one nine against the dollar.
Speaker 1: Live from coast to coast, from New York to San Francisco,
Speaker 1: Boston to Washington, d C. Nationwide on Sirius xamp, the
Speaker 1: Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: Good morning, I'm Nathan Hager. As a fight over leadership
Speaker 1: on Capitol Hill continues later this afternoon, Kevin McCarthy is
Speaker 1: vowing to fight on in his long held ambition to
Speaker 1: become the next Speaker of the House, but that dream
Speaker 1: has been deferred delta serious blow yesterday after McCarthy lost
Speaker 1: three straight votes and failed to drum up any further
Speaker 1: support from his GOP caucus in the process. For more,
Speaker 1: we're joined by Wendy Schiller, director of the Tobbin Center
Speaker 1: for American Politics and Policy at Brown University. It's great
Speaker 1: to speak with you this morning, Wendy. You know, you're
Speaker 1: such an expert on the history of American politics, so
Speaker 1: I'm really curious to get your thoughts on where this
Speaker 1: stands compared to other speakership fights that we've seen in
Speaker 1: the past. As we been saying, it's been a hundred
Speaker 1: years since the last time speakership vote was determined by
Speaker 1: more than one ballot count. Yeah, and when that happened, um,
Speaker 1: the size of fail government was nothing compared to what
Speaker 1: it is today. And that's what we have to remember is,
Speaker 1: you know, is the federal government literally too big to fail? Now?
Speaker 1: In other words, you know, can we have can we
Speaker 1: have dysfunction in the House of Representatives and still function
Speaker 1: in terms of seneral government? And the answer is yes,
Speaker 1: we can, but it will feed more power, ironically to
Speaker 1: President Biden and the executive branch. We've seen this over
Speaker 1: the last twenty years, that power has shifted when Congress
Speaker 1: hasn't been able to get anything done to Presidents Bush, Obama, Trump,
Speaker 1: and Biden, and the same thing will happen, which is
Speaker 1: of course exactly the opposite of what the most uh
Speaker 1: you know, rebellious of the Republicans want. They want to undermine, uh,
Speaker 1: you know, destroy, bring down the federal government and Joe Biden.
Speaker 1: But if they can't function, then the president will have
Speaker 1: to function through executive or which only strengthens Joe Biden.
Speaker 1: So all their efforts on remind the speakership actually go
Speaker 1: awright against what they claim to profess to want to happen.
Speaker 1: Very interesting perspective there. Does this also give more power
Speaker 1: to the Democratic caucus within the House? Um? You know
Speaker 1: you'd like to think so if you're a Democrat, But
Speaker 1: I don't see how that gives you any more power
Speaker 1: except on things like the debt ceiling for example. I mean,
Speaker 1: if a new speaker, whether it's McCarthy, orether, it's Steve
Speaker 1: Scalase for example, a second in command, who may emerge
Speaker 1: to be the consensus choice, we don't know. Jim Jordan
Speaker 1: has said, even though they professed to bore for him,
Speaker 1: that people are going against McCarthy, that he doesn't want
Speaker 1: the job, he's not interested in it. Um. It may
Speaker 1: be turned to s glease And if they bring if
Speaker 1: they could even bring a bill to the floor, which
Speaker 1: you can do with a discharged position petition, which then
Speaker 1: you would need Democratic votes to do. Uh, then the
Speaker 1: Democrats would have to vote for an increase in the
Speaker 1: debt ceiling. So yes, I mean in the end of
Speaker 1: the day for the government of function. It looks like
Speaker 1: in the next at least the next couple of months,
Speaker 1: the Democrats may have to join with Republican leadership to
Speaker 1: get must pass bills um through and they'll have an
Speaker 1: insense to do that because they have a Democrat in
Speaker 1: the White House. So there is a glimmer of hope
Speaker 1: for functionality, but it's it's not going to be a
Speaker 1: straightforward majority party rule. And we've seen we've seen the
Speaker 1: seeds of this coming since the Tea Party came in.
Speaker 1: John Bayner couldn't get it done, Paul Ryan couldn't get
Speaker 1: it done. You know. It's McCarthy had really turned against Trump.
Speaker 1: For example, after January six. Some people argue, uh, he
Speaker 1: might have diminished kind of the energy that is fueling
Speaker 1: the rebellious twenty But he didn't do that. He chose
Speaker 1: to go the opposite direction and embrace Trump. And you
Speaker 1: have to ask yourself, is he is he really taking
Speaker 1: him out with a big mistake now because that has
Speaker 1: come back to on him. Well, it's interesting because listening
Speaker 1: to Kevin McCarthy after he failed in those votes yesterday,
Speaker 1: he's saying now that he still has former President Trump's support,
Speaker 1: what does that mean for his chances as he gets
Speaker 1: ready for yet another round of voting later this afternoon.
Speaker 1: The problem with that argument is that Trump's ability or
Speaker 1: persuasion for some of something newly elected members is waiting.
Speaker 1: You know, I think they see themselves as new Trumps.
Speaker 1: They don't need Trump anymore. They've got the energy, they
Speaker 1: got the voting base, they got the rhetoric, they've got
Speaker 1: the roadmap. Uh, they don't need Trump per se. And
Speaker 1: so I don't know that Trump's gonna have a lot
Speaker 1: of influence moving forward with them. You know, they want
Speaker 1: to bring down the federal government's apparatus. It's a huge,
Speaker 1: huge infrastructure in the fell government, and they want things
Speaker 1: to go back to the states, and they're gonna do
Speaker 1: everything they can to you know, cripple the functioning of
Speaker 1: the federal government and then show hey, look, country can
Speaker 1: still function, States can still fill in the gap. We
Speaker 1: don't need such a big federal government. But ironically, as
Speaker 1: I just said, if they don't do what they need
Speaker 1: to do, the president will have to resort to executive
Speaker 1: orders to get things done, and that will only expand
Speaker 1: the power or the federal government. Only about thirty seconds
Speaker 1: left here, Wendy, how much longer do you think this
Speaker 1: leadership fight lasts. It all depends on Kevin McCarthy. You know,
Speaker 1: if he wants to stick it out and keep going,
Speaker 1: keep going. Um, then you know he's going to make
Speaker 1: them continuously vote against him. And if nobody else steps
Speaker 1: up to say I'll be the alternative, then this can
Speaker 1: keep going. And the longer it goes, you know, the
Speaker 1: more delayed there is an investigating President Biden, which is
Speaker 1: of course what Jim Jordan and other people want to do.
Speaker 1: That's what they want to spend their time on. But
Speaker 1: you know, if you want publicity for Hunter Biden's laptop,
Speaker 1: you know, not being able to elect to speaker is
Speaker 1: not a great strategy for getting there. Thanks as always, professor,
Speaker 1: great to get your thoughts. Wendy Schiller, director of the
Speaker 1: Topman Center for American Politics and Policy at Brown University.
Speaker 1: Stay with Bloomberg Radio will continue following the leadership fight.
Speaker 1: It gets back going noon, Wall Street Time on Capitol Hill.
Speaker 1: How did the market open this morning? SMP futures are
Speaker 1: up sixteen points, staff futures are up nine and nastatic
Speaker 1: futures are higher by sixty nine points ten. Your treasuries
Speaker 1: up thirteen thirty seconds, you'll three point six percent. This
Speaker 1: is Bloomberg Markets, headlines and breaking news twenty four hours
Speaker 1: a day at Bloomberg dot com, the Bloomberg Business Out
Speaker 1: and at Bloomberg Quick Take, She's a Bloomberg Business lash
Speaker 1: and I'm kared Moscow. And this updates brought to you
Speaker 1: by Innovation Refunds. This is your daily reminder from Innovation
Speaker 1: Refunds to apply for a payroll tax refund if you're
Speaker 1: smaller medium sized business was impacted by COVID nineteen. Innovation
Speaker 1: Refunds clients already claimed over two billion dollars in payroll
Speaker 1: tax refunds. Get started at get refunds dot com. Futures
Speaker 1: on the rise this morning. We checked the markets all
Speaker 1: day long year on Bloomberg. Right now, SMP futures are
Speaker 1: up buddy teen points, up about half percent now, futures
Speaker 1: of three tens of upper cent or ninety eight points,
Speaker 1: and NASTACK futures up seven tenths of uppercent or seventy
Speaker 1: one points. The decks in Germany's up one and a
Speaker 1: half percent. Ten year treasury of fourteen thirty seconds, you know,
Speaker 1: three point six eight percent if they yield on the
Speaker 1: two year four point three four percent. Nine X freude
Speaker 1: oil is down two point four percent on a dollar
Speaker 1: eighty seven at seventy six cents of barrel. Comex gold
Speaker 1: up one point two percent, or twenty one dollars forty
Speaker 1: cents at eighteen sixty seven sixty announced, the Euro one
Speaker 1: point six one seven against the dollar, British pound one
Speaker 1: point to zero six seven, the yun is at one
Speaker 1: thirty point three four and bitcoin is up one point
Speaker 1: one percent at about sixteen thousand, eight hundred fifty dollars.
Speaker 1: And that's a Bloomberg business flash. Now here's Michael Barr
Speaker 1: Withpore on what's going on around the world. Michael darre in.
Speaker 1: The House will convene today as Republicans trag in who
Speaker 1: elected speaker for the new Congress. Up leader Kevin mccarnthy,
Speaker 1: came short of overcoming opposition from the far right of
Speaker 1: his party after three votes. In the NBA at the
Speaker 1: Celtic Wizards lost the hockey game of the Rangers and Islanders.
Speaker 1: They won capitals, lost in not bills. DeMar Hamlin remains
Speaker 1: a critical condition after a cardiac arrest during a Monday
Speaker 1: night football game. Hamelin's uncle says that doctors produced the
Speaker 1: amount of oxygen. Hamlin was seaving global news twenty four
Speaker 1: hours a day on the air and on Bloomberg Quick
Speaker 1: Take Power about more than seven d journalists man less
Speaker 1: more than a hundred twenty countries. On Michael Barr, this
Speaker 1: is Bloomberg, nath thank you, Michael. It is six on
Speaker 1: Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak. And
Speaker 1: House Republican leader Kevin McCarthy may be hoping the fourth
Speaker 1: time is the charm in his bid to become the
Speaker 1: next Speaker of the House. For the first time in
Speaker 1: a hundred years, a House speaker has not been elected
Speaker 1: on the first ballot, so lawmakers will be back at
Speaker 1: it again Noon Wall Street Time today. Nick mulvaney, former
Speaker 1: Wine House chief of staff and co founder of the
Speaker 1: House Freedom Caucus, is weighing in on the speakership fight.
Speaker 1: He spoke with our Washington correspondent Joe Matthew late yesterday.
Speaker 1: Let's listen in. I know this is more complicated than
Speaker 1: it being a so called freedom Caucus thing. What is
Speaker 1: the problem with Kevin McCarthy. Oh, it's let's be clear,
Speaker 1: it's not a freedom Caucus thing. The majority of the
Speaker 1: Freedom Caucus voted for Kevin McCarthy three times today, So no,
Speaker 1: a lot of these folks, not all of them. A
Speaker 1: lot of these folks were post Kevin are in the
Speaker 1: Freedom Caucus, but this is not a Freedom Caucus sort
Speaker 1: of rebellion. I don't know what the objection is, you know.
Speaker 1: And I talked to Ralph Norman, my congressman the South,
Speaker 1: and I said, you know, why are you doing this?
Speaker 1: Because well, we're losing our country. I'm like, okay, I
Speaker 1: guess I agree with that, because you know, we're drowning
Speaker 1: it dead. I'm like, I get that, But tell me
Speaker 1: how you know not voting for Kevin McCarthy solves that.
Speaker 1: And there's no response to that. There's just a lot
Speaker 1: of personal animals that I don't understand, and that's not
Speaker 1: a good reason. Sometimes you have to put your personal
Speaker 1: preferences aside and you know, vote your head and not
Speaker 1: your heart. And I just don't see them doing that
Speaker 1: right now. Have you surprised Donald Trump couldn't turn this
Speaker 1: around by working the phones a little bit more? Did
Speaker 1: that turn into a liability? Yeah, I've heard he's actually
Speaker 1: is on the phone a little bit. I don't think
Speaker 1: it's a liability because I think he knows, you know,
Speaker 1: I'm Trump still one of the best you know, gut
Speaker 1: politicians I've ever met my entire life. Say what you
Speaker 1: want to around him. You've got a lot of weaknesses,
Speaker 1: but he's a prett good politician many but it runs
Speaker 1: for president one time, and when the first time through
Speaker 1: is going to prove that I think, Uh, he knows
Speaker 1: that if McCarthy loses, Trump will also be one of
Speaker 1: the losers here because regardless of the work that he
Speaker 1: might or might have not done in the last twenty
Speaker 1: four hours, everybody knows that he supports Kevin McCarthy. So
Speaker 1: these people are actually thumbing their nose at the president.
Speaker 1: And if McCarthy loses, it will be just another blow
Speaker 1: to to Trump's reputation, into his credibility, and to his electability.
Speaker 1: He was a huge took a huge hit in the
Speaker 1: midterms and not being able to get his guy elected
Speaker 1: speaker out and could get another blow that was just
Speaker 1: convoldon his opponent. The Democrats pick up the phone tonight, Mick,
Speaker 1: is there is there a strategy here for Hockeen, Jeffreys
Speaker 1: and his early going to strike a deal that might
Speaker 1: help their minority status. Yeah. I was over in the
Speaker 1: Senate today. All the new members get sworn in in
Speaker 1: the Senate because it's functioning properly, swore in the new members.
Speaker 1: I start talk kind to some friends of mind it
Speaker 1: from too into a Democrat on the train coming back,
Speaker 1: and he just sort of looked at me and says, Nick,
Speaker 1: when when are you guys gonna call us? Uh? And
Speaker 1: I think that's that's what they're waiting for. Is they're
Speaker 1: waiting for a phone call from some group of Republicans
Speaker 1: is to uh strigae out a way to hammer out
Speaker 1: a deal. We did this when I was in the
Speaker 1: state legislature back in South Carolina, and we had somebody
Speaker 1: who ran the speaker at about a third of the
Speaker 1: support of the Republicans and kind of deal with the
Speaker 1: Democrats and end up giving them a couple of committee
Speaker 1: chairs to do it. So certain of the precedent is
Speaker 1: there many many times over to cut deals to get speakerships.
Speaker 1: And my guess is a team is is going to
Speaker 1: answer his phone for anybody that wants to call him tonight. Incredible,
Speaker 1: What a way to make a living, great conversation. MC
Speaker 1: mulvaney is great to hear your voice again. Happy New Year,
Speaker 1: Thanks for coming back in to talk to us. On
Speaker 1: what I know is a very busy day, and it
Speaker 1: could be another very busy day today when the voting
Speaker 1: continues on Capitol Hill. That was former White House Chief
Speaker 1: of Stack mcmulvaney speaking with our Joe Matthew on Bloomberg
Speaker 1: Sound On. You can catch the show Bloomberg Sound on
Speaker 1: weeknights on Bloomberg Radio five pm Wall Street Time, or
Speaker 1: anytime if you download the Bloomberg sound On podcast wherever
Speaker 1: you get your podcasts. We'll get a check of this
Speaker 1: morning's top stories and local headlines, and a full check
Speaker 1: of markets. Just ahead. First, Bloomberg Meteorologist Rob Carolyn with
Speaker 1: today's weather forecast. Clouds today will actually see some rain
Speaker 1: moving into the Tristead area of this safternoon as low
Speaker 1: pressure comes up from the south. It's going to be
Speaker 1: unusually warm ahead of that system. We're already mild this morning,
Speaker 1: six to sixty five. Rain ends tonight. We're forty five
Speaker 1: to fifty's more, mostly cloudy in fifty to fifty five,
Speaker 1: turning partly Sunday. Friday high forty five to fifty. We'll
Speaker 1: see some sunshine Saturday too. I'm Rob Caroline with your
Speaker 1: three day forecast on Bloomberg eleven three oh broadcasting live
Speaker 1: from the Bloomberg Interactive Broker's studio in New York, Bloomberg
Speaker 1: eving freg to Washington, d C Bloomberg, On to Boston
Speaker 1: Bloomberg one oh six one to San Francisco Bloomberg and No.
Speaker 1: Sixty to the Country Sirius XM H one nine and
Speaker 1: around the globe to Bloomberg Business and Bloomberg Radio dot Com.
Speaker 1: This is Bloomberg Daybreak. We're going up to six thirty
Speaker 1: on Wall Street. Good morning, I'm Nathan Hagar and I'm
Speaker 1: Karen Moscow. We are just about three hours away from
Speaker 1: the open of US training. It's time for the five
Speaker 1: things that you need to notice start your day. And
Speaker 1: at first we had to Washington, where a House Republican leader,
Speaker 1: Kevin McCarthy, has failed to secure the speakership. The blow
Speaker 1: to McCarthy and the GOP has drawn sharp criticism from
Speaker 1: conservative media. Mcmilvany, former acting White House Chief of Staff
Speaker 1: and co founder at the House Freedom Caucus, says it
Speaker 1: could open the door for a Democrat friendly House speaker.
Speaker 1: My guess is, if it's not Kevin, it will end
Speaker 1: up being a compromise candidate more towards the Democrat side
Speaker 1: of my party. More something like a thread outen and
Speaker 1: I've used Thread's name. I U said, you know what
Speaker 1: a smile on my face spread the friend of my
Speaker 1: but he's a very moderate Republican. Mcmilvany spoke with our
Speaker 1: Washington corresponded Joe Matthew on Bloomberg Sound on Catch the
Speaker 1: program weekdays at five pm Eastern on Bloomberg Radio and
Speaker 1: staying in Washington carrying the Widen administrations. Taking him at
Speaker 1: Southwest Airlines. White House Press Secretary Krein John Pierre says
Speaker 1: the Department of Transportation will hold Southwest accountable for holiday
Speaker 1: flight delays tied to implement weather. All major airlines except
Speaker 1: for one, which is Southwest. Clearly we're able to recover quickly.
Speaker 1: Prist Secretary Karine John Pierre says the White House wants
Speaker 1: Southwest to cover rebookings, hotel rooms, and other amenities well.
Speaker 1: Turning to Crypto now, Nathan, it could be one of
Speaker 1: the highest profile white collar fraud trials and years. The
Speaker 1: case of collapsed Crypto Exchange ft X is now making
Speaker 1: its way to the Core for Room and Bloomberg Steve
Speaker 1: Rappaport joins us live at the Latest. Good Morning, Steve,
Speaker 1: Good morning, Karen, and Nathan Sam. Bankman Freed will stand
Speaker 1: trial in October on eight federal charges, including wire fraud
Speaker 1: and campaign's finance violations. SPF pled not guilty to all
Speaker 1: counts yesterday. Prior to his arrest last month, Bankman Freed
Speaker 1: admitted to making mistakes but the night knowingly committing fraud.
Speaker 1: Prosecutors say they expect to lay out their case against
Speaker 1: the disgraced f t X founder in the next four weeks.
Speaker 1: Bankman Freed also faces civil action from government regulators. Those
Speaker 1: charges will likely be on hold while the criminal case
Speaker 1: plays out Live in New York Times. Steve Rappaport, Bloomberg
Speaker 1: day Break, Thank you, Stephen. Turning to markets, Wall Street
Speaker 1: began the new year very much like two with losses.
Speaker 1: Earned Gibbs, chief investment officer at main Street Asset Management,
Speaker 1: says more down days for growth stocks could be on
Speaker 1: the way as long as we're uncertain about the future.
Speaker 1: It's those growth stocks that are going to take the
Speaker 1: biggest hits, and your sense of sectors that are going
Speaker 1: to tend to hold up better. Aaron Gibbs with main
Speaker 1: Street asset management. Thanks growth. Stocks carry a lot of
Speaker 1: risk at the moment. And that's the five things that
Speaker 1: you need to notice start your day. We're also gonna
Speaker 1: bring it this headline crossing the Bloomberg salesforce to cut
Speaker 1: its workforce by about ten percent and a restructuring again
Speaker 1: a just crossing the Bloomberg and futures this morning are
Speaker 1: in the rise of SMP futures of about sixteen points
Speaker 1: or four tensive uppercent down futures a three tensive upper
Speaker 1: center one at its six points, and NASTAC future is
Speaker 1: up six tensive upper cent or sixty five points. Ten
Speaker 1: year treasury of fifteen thirty seconds. The yield is at
Speaker 1: three point six eight percent yield on a two year
Speaker 1: four point three four percent, and I'm ex screw oil
Speaker 1: down two point four percent. Straight ahead your latest local
Speaker 1: headlines plus a check of sports, and this is Bloomberg.
Speaker 1: Thank you. Caring at six thirty one on Wall Street
Speaker 1: of Michael Barre is here with those local headlines in
Speaker 1: New York and from around the world. Good morning, Michael,
Speaker 1: Good morning Nathan. The New York City native John smoke
Speaker 1: canisters inside a pack Brooklyn subway car before opening flyer
Speaker 1: on commuters last year. Is pleaded guilty to terrorism charges
Speaker 1: and gun charges. Frank James appeared in federal court in
Speaker 1: Brooklyn yesterday, faces up to life in prison in battle.
Speaker 1: Congressman George Santos didn't answer any questions shouted by reporters
Speaker 1: as he spent his first day in the House. Once
Speaker 1: in the chamber, Santos sat alone. The Long Island Republican
Speaker 1: Amidity lied about his resume while on the campaign trail.
Speaker 1: During her briefing, White House Press Secretary you're in, Jean
Speaker 1: Pierre commented on Santos, this is something that the House Republicans,
Speaker 1: the Republican Conference, they will have to decide what they
Speaker 1: owe to the American people in terms of standards and service.
Speaker 1: That is something that they have to decide on. They
Speaker 1: are growing calls for Santos to step down. The man
Speaker 1: charge in the November murders of Fort University of Idaho students,
Speaker 1: waived his right to an extradition hearing in Pennsylvania that
Speaker 1: will speed up twenty eight year old Brian Coburger's transfer
Speaker 1: to Moscow, Idaho, to stand trial. Colonel Robert Evanshick of
Speaker 1: the Pennsylvania State police. My heart goes out to the
Speaker 1: families of the victims, their friends, the community of Moscow,
Speaker 1: and the University of Idaho. Police say they have link
Speaker 1: Coburger to the crime scene through DNA. The Russian military
Speaker 1: says unauthorized use of cell phones by Russian soldiers led
Speaker 1: to a deadly Ukrainian rocket attack on the facility where
Speaker 1: they were stationed. It raised the death toll from the
Speaker 1: weekend attack to eight nine. Meanwhile, State Department spokesman Ed
Speaker 1: Price says that the US will support Ukraine. We will
Speaker 1: stand with Ukraine for as long as it takes. As
Speaker 1: we have said, President Putin can choose to end this war. Today,
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quick Take, powered by more than seven hundred
Speaker 1: journalists analysts more than unt He's Michael Bard. This is
Speaker 1: Bloomberg Nather. Thanks Michael. Six thirty three on Wall Street
Speaker 1: Time for the Bloomberg Sports that they brought to you
Speaker 1: by Try State out of Here's John stash Out all right,
Speaker 1: Nathan Buffalo Bill Safety. Damar Hamlin remains an intensive care
Speaker 1: and critical condition. His uncle says, Hamlin had his heart
Speaker 1: resuscitated twice Monday, night, once on the field and then
Speaker 1: again in the hospital. Of the family released a statement
Speaker 1: expressing its gratitude to the outpouring of support. Hamlin has
Speaker 1: a go fund me for a toy drive and in
Speaker 1: twenty four hours it went from having twenty dollars in
Speaker 1: it too now more than five million. Rangers also the
Speaker 1: hottest steven hockey Carolina had won eleven row brought a
Speaker 1: lead of the third period at the Gardener. Timmi Panarin
Speaker 1: tied the game thirty six seconds into the third and
Speaker 1: then midway through sleep and tackle gets it back behind
Speaker 1: that drives to the edge of the traffics Oi to
Speaker 1: the far circle. Cockle took points of Bamma Javels last.
Speaker 1: This could have been deflected as well for three Rangers
Speaker 1: their first lead to the game ESPN direct DeAndre Miller
Speaker 1: got the goal the Rangers at an empty net or
Speaker 1: They beat the Hurricanes five to three, Islanders three goals
Speaker 1: in both the second and third periods and a six
Speaker 1: to win at Vancouver Nixon Nets, both playing Tonight Nets
Speaker 1: going for a thirteenth win in a row. The season
Speaker 1: began well for St. John's. They were eight, no, eleven
Speaker 1: and one, but a fourth Strade Big East loss, Marquette
Speaker 1: won the second half fifty five, thirty seven took the
Speaker 1: game nineties six to eight and five, and Seaton all
Speaker 1: lost by twenty two at Crayton. Bryan Sabian began his
Speaker 1: career in the Yankee front office. He oversaw the drafting
Speaker 1: of the Yankee Corps four that led them to four championships.
Speaker 1: He then spent thirty years with the San Francisco Giants,
Speaker 1: winning three World Series. Now Sabian returning to the Yanks
Speaker 1: to be an adviser Here a long time g M.
Speaker 1: Brian Cash, John Stash went Bloomberg Sports Nathan Okay, John,
Speaker 1: thank you and the Bloomberg Sports Report was brought to
Speaker 1: you by Audie. Don't let someone else drive off in
Speaker 1: the Outye model you've always wanted. Visit your local Trice
Speaker 1: State Audie dealer to get behind the wheel of yours today,
Speaker 1: or visit Autie Offers dot com for more information. Six
Speaker 1: thirty five on Wall Street, Bloomberg Radio is on the
Speaker 1: air from San Francisco to New York, London to Hong Kong.
Speaker 1: Let's check in with our global news team for some
Speaker 1: of the top stories heard on our three hundred affiliate
Speaker 1: radio stations around the world. I'm Steve Polist and X
Speaker 1: to Los Angeles. We're talking about the Federal Trade Commission
Speaker 1: saying there are no settlement talks underway to resolve its
Speaker 1: opposition to a Microsoft takeover of Activision Blizzard um Corney
Speaker 1: Donahoe on ktr H in Houston. Americans moving last year
Speaker 1: were drawn to cheaper and less densely packed locations. I'm
Speaker 1: Caroline Head Film Bloomberg d a B Radio in London.
Speaker 1: We've been reporting on new figures showing food prices in
Speaker 1: Britain rising by more than in the past year. I'm
Speaker 1: Ed Corey on w w J in Detroit. I'm reporting
Speaker 1: most automakers report sales today and those are some of
Speaker 1: the stories. Are twenty seven hundred Bloomberg journalist and analysts
Speaker 1: working on this morning around the world. It's sixty six
Speaker 1: on Wall Street. The following is an editorial from Bloomberg Opinion.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. During
Speaker 1: the chaotic US withdrawal from Afghanistan, in the Biden administration
Speaker 1: granted so called humanitarian parole to more than seventy thousand
Speaker 1: Afghan evacuees to allow their entry into the US. This
Speaker 1: designation expires after two years. Without an adjustment in their
Speaker 1: immigration status, these Afghans will have to request asylum to
Speaker 1: stay in the US, a lengthy, confusing, and expensive process.
Speaker 1: The bipartisan Afghan Adjustment Act, which lawmakers introduced last August,
Speaker 1: provides a common sense solution, but Congress left it out
Speaker 1: of the four thousand page spending bill President Joe Biden
Speaker 1: signed in the law last week. That isn't just cruel,
Speaker 1: it's damaging to national security. Allowing this issue to slide
Speaker 1: further will undermine American credibility and confirm accusations of US hypocrisy.
Speaker 1: The eighteenth Congress should resolve this matter without delay. Anything
Speaker 1: less would be a betrayal of America's allies and ideals.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash
Speaker 1: opinion or opi and go on the Bloomberg Terminal. These
Speaker 1: has been Bloomberg Opinion. Listen for Bloomberg opinion editorials every weekday.
Speaker 1: At this time. Terminal customers can read more at O, P,
Speaker 1: I N GO. Another story we're watching is Another policy
Speaker 1: shift at Twitter, one of many since Elon Musk's take over.
Speaker 1: The company will relax a three year old ban on
Speaker 1: political advertising to quote facilitate public conversation around important topics.
Speaker 1: Further details haven't been announced yet. Twitter and Post that
Speaker 1: ban in twenty nineteen, saying political message reach should be earned,
Speaker 1: not bought. Also watching shares of Salesforce up two percent
Speaker 1: in the pre market, The cloud software company says it's
Speaker 1: going to cut about ten percent of its workforce in
Speaker 1: a restructuring. Salesforce says it hired too many people leaning
Speaker 1: into an economic downturn, and affected employees will get a
Speaker 1: minimum nearly five months Pad futures hire. This morning, and
Speaker 1: you're listening to Bloomberg Gaber Markets headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot Com, the
Speaker 1: Bloomberg Business apt and at Bloomberg Quick Take. He's a
Speaker 1: Bloomberg Business Lash and I'm Karen Moscow Future is on
Speaker 1: the rise this morning, and we're gonn the first Word
Speaker 1: breaking news desk for today's morning call. Here's Vil Maloney, Bill,
Speaker 1: Good morning, and good morning Karen. That's right, US futures
Speaker 1: are pointing to a higher open without futures of a
Speaker 1: hundred eighteen points, SIPs Game nineteen and NASDA futures rise
Speaker 1: by eighty two. The US ten year old at three
Speaker 1: point six eight percent, gold is hired by twenty one,
Speaker 1: oil is trading in the red, and bitcoin is higher
Speaker 1: by one percent. Hong Kong rose three percent overnight, while
Speaker 1: up markets are firmly in the green this morning and
Speaker 1: back in the US. On the economic front, at ten o'clock,
Speaker 1: I s M Manufacturing and at two o'clock minutes from
Speaker 1: the f O M Seed. In other news, Kathy Wood
Speaker 1: bought more Tesla stock during yesterday's launch, and Salesforce is
Speaker 1: cutting ten percent of its workforce. In the hedge fund space,
Speaker 1: Chrispin O'Day's flagship hedge Fund searched a hundred and fifty
Speaker 1: two percent last year, and wrapping things up back in
Speaker 1: New York, Mountain and Schwab were both raised by overaclemeant Sacks,
Speaker 1: Northern Trust was cut to neutral and Boston Beer was
Speaker 1: cut to underperform well. Fred Jeffreys Live from the first
Speaker 1: Breaking News bestcomb Bill Maloney care Right, Bill, thank you
Speaker 1: to hear live breaking news over her Bloombergy Times Squawk
Speaker 1: on your terminal SCU A w K and that's a
Speaker 1: Bloomberg business flash. Now here's Michael Barr with more on
Speaker 1: what's going on around the world, Michael Karen. For the
Speaker 1: first time in the one hundred years, members of Congress
Speaker 1: failed to elect an outspeaker yesterday on Day one, the
Speaker 1: man running for the speakership, Republican leader Kevin McCarthy, was
Speaker 1: rebuffed three times. Emergency crews on sifted through Emergency crew
Speaker 1: sifted through the rubble of a building struck by Ukrainian rockets.
Speaker 1: Moscow says that it killed at least eighty nine Russian
Speaker 1: soldiers baricked there, according to the Ukrainian Rockets. In the NBA,
Speaker 1: the Celtics and Wizards lost in hockey, the Rangers and
Speaker 1: Islanders won. The Capital's lost to note. Buffalo safety Damar
Speaker 1: Hamlin remains in critical condition after suffering cardiac arrest during
Speaker 1: a Monday night football game. Hamelin's uncle told CNN doctors
Speaker 1: reduced the amount of oxygen. Hamlin was receiving global news
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quick Take, powered by more than journalists analysts more than
Speaker 1: twenty countries. I'm Michael bar this is Bloomberg. Karen al right,
Speaker 1: Michael Barr, thank you at a six forty two on
Speaker 1: Wall Street, and we turned to news now and science
Speaker 1: and technology with a Bloomberg and j A t. Stem report.
Speaker 1: And here's just making news in science, technology, engineering and math.
Speaker 1: The European Union is moving toward requiring COVID tests for
Speaker 1: travelers from China. EU health advisors have agreed on a
Speaker 1: draft opinion that includes masking and preflight testing requirements. Several
Speaker 1: European countries, including Italy and Spain, have already imposed testing
Speaker 1: rules on flights from China. Meanwhile, China is pausing massive
Speaker 1: investments aimed at building a ship industry to compete with
Speaker 1: the US. Bloomberg News has learned that top officials are
Speaker 1: discussing ways to move away from constantly subsidies that have
Speaker 1: done little but encouraged graft and American sanctions, and a
Speaker 1: steady slide in Apple shares has pushed the iPhone maker's
Speaker 1: market value below two trillion dollars. Apple fell three point
Speaker 1: seven percent yesterday, closing at its lowest since June one.
Speaker 1: Concerns about iPhone supply and the important holiday quarter are
Speaker 1: weighing on the stock exactly a year ago. Apple shares
Speaker 1: briefly rallied to climb over three trillion dollars in market
Speaker 1: value as the SNP five hundred hit a record high.
Speaker 1: And that's the Bloomberg n j I t STEM report,
Speaker 1: Nat that it seems like a while ago three trillion
Speaker 1: dollar valuation, doesn't it? All right? Karen, thank you. We're
Speaker 1: coming up to on Wall Street. Now it's time to
Speaker 1: check what's going on in d C, where some of
Speaker 1: the top stories include Kevin McCarthy's speakership hopes in doubt
Speaker 1: after losing three votes. Also making news, George Santos isolated
Speaker 1: in the House as resignation calls mount even before he
Speaker 1: takes the oath of office, and President Biden promoting bipartisan
Speaker 1: victories as divisions royal to gop let's bring in Boomberg.
Speaker 1: Government reporter Emily Wilkins after a tumultuous day on Capitol Hill.
Speaker 1: Emily getting ready for another long one today, getting head
Speaker 1: is another long one today, Mentually prepared for another long
Speaker 1: one the day after today. I'm just it's it's really
Speaker 1: really a fascinating time, the level of chaos on the Hill,
Speaker 1: the crisis that House Republicans are in really can't be overstated.
Speaker 1: I mean, Nathan, no other legislation can move until they
Speaker 1: figure out who the speaker is. And at this point
Speaker 1: both sides of just really promised to dig in. Last night,
Speaker 1: McCarthy was making phone calls with members, he was having
Speaker 1: his allies meet with some of the holdouts, but it
Speaker 1: just really did not seem like it made much of
Speaker 1: a difference. We're not aware of anyone at this point
Speaker 1: who's changed their mind, but McCarthy is going to have
Speaker 1: to show some pro risk today. His supporters are willing
Speaker 1: to stick behind him for vote after vote after vote,
Speaker 1: but there needs to be some light at the end
Speaker 1: of the tunnel today. And and that's really what we're
Speaker 1: looking for in terms of whether McCarthy is going to
Speaker 1: be able to start keeling off some of those holdouts
Speaker 1: and cuttings and deals that will ultimately give him the speakership. Otherwise, eventually,
Speaker 1: folks are going to get tired and other options are
Speaker 1: going to start becoming more and more likely. Well, what
Speaker 1: are some of those other options, Emily, I mean, you
Speaker 1: mentioned some of the supporters sticking with Kevin McCarthy. They
Speaker 1: include a couple of names that have been bandied about
Speaker 1: as potential alternate picks, Steve Scalise and Jim Jordan's. Yeah, absolutely,
Speaker 1: And I mean, look, there are questions right now about
Speaker 1: who would be able to get to that magic number
Speaker 1: of to eighteen to get to the number that they
Speaker 1: would need to become speaker, And at this point, as
Speaker 1: McCarthy pointed out, it's not really clear that anyone has
Speaker 1: the ability to do that. Even though that there's a
Speaker 1: lot of support in the caucus for say Steve Sclease,
Speaker 1: who's the number two Republicans. There are certain members who
Speaker 1: have told me that, you know, they feel like going
Speaker 1: with anyone, but McCarthy is to give into this hostage
Speaker 1: taking that's being done by a small fraction of their
Speaker 1: of the House Republican conference, and so there's a lot
Speaker 1: of concern about, I think, switching at this point. But look,
Speaker 1: you could see Steve Scalasee, you could see Patrick McHenry.
Speaker 1: I think at least deponic some of these folks who
Speaker 1: have already had leadership positions within House Republicans. But I
Speaker 1: think at this point it really does seem like a
Speaker 1: huge question mark. I mean, I don't think Jim Jordan's
Speaker 1: would be able to get to to eighteen. I don't
Speaker 1: think a lot of the folks that the Freedom Caucus
Speaker 1: would want to put forward could get to to eighteen. Um,
Speaker 1: and then there's a huge question. You've heard about a
Speaker 1: consensus candidate, but no real names have been put forward.
Speaker 1: It's just not clear who Republicans could offer up that
Speaker 1: would allow enough Democrats to come over vote for them
Speaker 1: and eventually get to someone winning the speakership. Yeah, and
Speaker 1: I guess there's still an open question about no matter
Speaker 1: who gets to to eighteen, whether that person is going
Speaker 1: to have any kind of power uh in the speakership.
Speaker 1: I mean, it seems like the position is really diminished
Speaker 1: at this point or is that just me? I mean,
Speaker 1: to a certain extent, the power of the speaker is
Speaker 1: the power for you to unify your members and hold
Speaker 1: them together. And right now, even McCarthy, if McCarthy does
Speaker 1: wind up getting to guess, his power to do that
Speaker 1: has been very much diminished. These fringe members have seen
Speaker 1: that they are able to really stop the process and
Speaker 1: hold things up if just a couple of them stick together.
Speaker 1: McCarthy's working with very narrow margins, the same frankly that
Speaker 1: Pelosi worked with last time, and so yes, there's that.
Speaker 1: And then of course there's the House rules. I know
Speaker 1: those are super wonky. I'm not going to get into
Speaker 1: the nitty gritty of them. But the thing about the
Speaker 1: rules is that the rules dictate who has the power
Speaker 1: in the Chamber. And that's what this all boils down
Speaker 1: to these rank and file members. They want to have
Speaker 1: more power, they want to have more say some folks
Speaker 1: argue that that's a perfectly good thing, but the fact
Speaker 1: of the matter is that the more power you give
Speaker 1: to UH at the average member, the harder it can
Speaker 1: be to get things done. And in our last minute
Speaker 1: here Emily, while all this turmoil continues to unfold on
Speaker 1: Capitol Hill, here's President Biden heading back out on the
Speaker 1: road promoting his agenda and promoting it with Mitch McConnell,
Speaker 1: which I think is the most interesting exactly, And you wonder,
Speaker 1: I mean, the speculation, of course, is that you know,
Speaker 1: Biden is considering running. In the last time he ran,
Speaker 1: he ran as a consensus candidate. He has a few
Speaker 1: things to show for that. He can point to things
Speaker 1: like the infrastructure Bill and say, hey, I got Republican
Speaker 1: support for this one. Um but you know, I think
Speaker 1: there's still a sense that there's still a lot of
Speaker 1: partisanship in the US. There's still a lot of desire
Speaker 1: for people to come together, and this trip could be
Speaker 1: of something that Biden begins to use as he tries
Speaker 1: to build up campaign. God all will be helpful as
Speaker 1: he tries to figure out how he's going to wind
Speaker 1: up brasing the depth sailing, bunding the government and doing
Speaker 1: all the other must pass bills that he does, especially
Speaker 1: with the House of being as acrimonious as it is. Yeah,
Speaker 1: I mean, first they've got to get a speaker decided
Speaker 1: before they can move any bills, as you mentioned just
Speaker 1: a few minutes ago. So Bloomberg Government's Emily Wilkins um,
Speaker 1: I guess brace herself for what's to come for the
Speaker 1: next day, maybe several days, as the fight unfolds on
Speaker 1: Capitol Hill, and you can read more about it on
Speaker 1: Bloomberg dot com and on the Bloomberg terminal. Follow all
Speaker 1: the latest on Bloomberg Radio in Washington at Bloomberg and
Speaker 1: one oh five point seven FM HD two. Right now,
Speaker 1: SMP futures are hired by sixteen points staff futures up
Speaker 1: ninety eight and Nasdaq futures highed by seventy five points.
Speaker 1: Now they just keep rising ten Your treasury is up
Speaker 1: sixteen thirty seconds now for a yield of three point
Speaker 1: six seven per cent. And you're listening to Bloomberg Day Right,
Speaker 1: markets headlines and breaking news twenty four hours a day
Speaker 1: at Bloomberg dot com, the Bloomberg Business at and at
Speaker 1: Bloomberg Quick Tape. This is a Bloomberg Business lash and
Speaker 1: I'm Karen. Moscow stocks on the rise this morning, along
Speaker 1: with US stock index futures as favorable news reports from
Speaker 1: Shina and data from Europe boost risk appetite. We checked
Speaker 1: the markets all day long here on Bloomberg SMP futures
Speaker 1: of eighteen points or half percent down futures have a
Speaker 1: third of upper cent or a hundred twelve points, and
Speaker 1: NASDACK futures up seven tens of a percent or about
Speaker 1: eighty points. And Jacks in Germany's at one point seven percent,
Speaker 1: and your treasury of sixteen thirty seconds you have three
Speaker 1: point six seven percent. They yield them at two year,
Speaker 1: four point three three percent. Nime X screwed oil is
Speaker 1: down two point six percent at a dollar nine eight
Speaker 1: at seventy four dollars ninety six cents of Barrel Comic
Speaker 1: school that more than one percent, or nineteen dollars fifty
Speaker 1: cents at eighteen sixty five sixty announced the euro one
Speaker 1: point six seven against the dollar, British bound one point
Speaker 1: to zero five zero begin at one thirty point five
Speaker 1: four and bitcoin is that more than one percent at
Speaker 1: about sixteen thousand, eight hundred dollars. And that's a Bloomberg
Speaker 1: busy flash, Nathan, all right, Karen, thank you, six fifty
Speaker 1: six on Wall Street. Ahead of Bloomberg surveillance starting in
Speaker 1: just a few minutes, we want to take a look
Speaker 1: at some of the names moving in this pre market.
Speaker 1: We're joined by Bloomberg Radio and TV markets correspondent Pretty goofed,
Speaker 1: Happy New year, Pretty uh, I see We've got just
Speaker 1: broken the news a few minutes ago that Salesforce is
Speaker 1: getting ready to restructure, getting ready to cut some jobs,
Speaker 1: and looks like the stocks getting a bit of a
Speaker 1: pop on the back of that. Yeah, happy new Year.
Speaker 1: You are starting to see a little bit of a
Speaker 1: new strategy being taken by Salesforce. In three they are
Speaker 1: cutting ten percent of their workforce, setting up to two
Speaker 1: point one billion dollars in charges. Now this is really
Speaker 1: important because of course a ten percent cut in workforce
Speaker 1: is not necessarily happy news for for anyone from a
Speaker 1: human impact. But what you have seen from a lot
Speaker 1: of these tech companies that are kind of cutting back
Speaker 1: is this idea that they're actually getting rewarded for it
Speaker 1: in the stock market. And the logic here is simple.
Speaker 1: They are actually being able to cut back on those
Speaker 1: costs and able to perhaps reinvest that money elsewhere, and
Speaker 1: that's usually seen as a positive um when you look
Speaker 1: at the investment scenario. So CRM is the ticker there,
Speaker 1: it is up about two point eight percent in the
Speaker 1: pre market. It's not the only one though. You do
Speaker 1: have a pretty big move showing up in some of
Speaker 1: these Chinese a d rs. Ali Baba is our poster
Speaker 1: child for that b A b A up seven point
Speaker 1: one percent essentially comes after ants approved fundraising plan is
Speaker 1: starting to boost a little bit of optimism when it
Speaker 1: comes to the Chinese regulatory space. This is a pretty
Speaker 1: big deal because, of course we know not only is
Speaker 1: Ali Baba kind of our poster child for all things
Speaker 1: China when it comes to the investment case, and how
Speaker 1: much people really want to hop into the A d
Speaker 1: r s, but also because Aunt group itself wanted to
Speaker 1: become this big kind of behemoth, the idea that I
Speaker 1: want to take on a kind of financial business in
Speaker 1: addition to its commercial business and was then the target
Speaker 1: of the Chinese government for a very long time. And
Speaker 1: speaking of China, Uh, you are seeing not just Ali Baba,
Speaker 1: but all the A d r s actually up by
Speaker 1: quite a bit. B A B A shares up about
Speaker 1: seven percent in the pre market. And they're also coming
Speaker 1: out with a new plan Nathan to talk about subsidies
Speaker 1: when it comes to easing some of the semiconductor materials.
Speaker 1: So you're seeing a lot of the chip stocks higher
Speaker 1: around the world as well, saying you know what, we're
Speaker 1: going to try to compete given some of the restrictions
Speaker 1: the US has put and we are still um going
Speaker 1: to do it by lowering those material costs down. Some
Speaker 1: names like Micron for example, m you up about three
Speaker 1: point eight percent of the pre market. Now we got
Speaker 1: to talk about Tesla as well this morning, Creaty, because
Speaker 1: it looks like once again Cathy would has bought the
Speaker 1: dep They absolutely haven't. It's good enough for investors to
Speaker 1: follow suit. T s l A shares up one point
Speaker 1: four percent. Let's see how long it lasts. Though some
Speaker 1: of this might just be kind of a reaction from
Speaker 1: some of the pain we saw yesterday. I want to
Speaker 1: end Nathan very quickly with Microsoft shares are actually down
Speaker 1: two percent after UBS downgraded the company to a neutral
Speaker 1: from a boy saying that their cloud computing services businesses
Speaker 1: may see a steep growth deceleration that could be worse
Speaker 1: than expected. M s f T is the ticker there. Yeah,
Speaker 1: more potential macro headwinds. Big call there from UVS. Thanks
Speaker 1: for this as always. Bloomberg Radio and TV Markets correspondent
Speaker 1: Krety Gupta with us this morning. SMP futures right now
Speaker 1: up fourteen points, staff futures of NASTAC futures up sixty
Speaker 1: seven points. This is Bloomberg Daybreak. I'm Nathan Hagar along
Speaker 1: with Karen Moscow. It is six fifty nine on Wall
Speaker 1: Street and Bloomberg Surveillance with Tom Keene, Jonathan Farrell, and
Speaker 1: Lisa Abramo. It starts right now by from the Financial
Speaker 1: Capital of the World, broadcasting across thelo This is w
Speaker 1: b b R, New York Bloomberg he living trio. There
Speaker 1: are a lot of real fundamental issues that are gonna
Speaker 1: be pulling down inflation next quarter or two. We stayed