WEBVTT - Bloomberg Daybreak: January 4, 2023 - Hour 2 (Radio) 0:00:02.520 --> 0:00:05.840 Live from the Bloomberg Interactive Berger Studios. This is Bloomberg 0:00:05.920 --> 0:00:09.920 day Break for Wednesday, January four three. Coming up this hour, 0:00:10.160 --> 0:00:14.160 Kevin McCarthy's pushed to become House speaker suffers a historic setback. 0:00:14.320 --> 0:00:17.279 F d X founder Sam Bankman Fried pleas not guilty 0:00:17.320 --> 0:00:20.440 to criminal charges. We get more clues on FED policy 0:00:20.480 --> 0:00:23.200 as minutes from the last meeting are released, and Kathy 0:00:23.280 --> 0:00:26.680 wood It doubles down on Tesla yet again. Demand charged 0:00:26.720 --> 0:00:29.240 with shooting up a New York subway pleads guilty. Plus 0:00:29.360 --> 0:00:31.800 day one in the House for in Battle Long Island 0:00:31.800 --> 0:00:36.360 Representative George Santos, Michael bar More, I'm John Stagehoward towards 0:00:36.400 --> 0:00:39.200 the latest done de bar Hamlem the Rangers and Islanders 0:00:39.240 --> 0:00:42.200 both Long Biggie's losses for St. John's and seton Hall. 0:00:42.479 --> 0:00:46.240 That's all straight ahead on Bloomberg day Break on Bloomberg 0:00:46.320 --> 0:00:51.240 eleven Trio, New York, Bloomberg one, Washington, d C, Bloomberg 0:00:51.240 --> 0:00:55.840 one six one, Boston, Bloomberg nine sixties, San Francisco, Sirius 0:00:56.000 --> 0:00:59.280 x M one nineteen and around the world on Bloomberg 0:00:59.360 --> 0:01:07.959 Radio dot Com and via The Bloomberg Business add Good morning, 0:01:07.959 --> 0:01:11.320 I'm Nathan Hagar and I'm Karen Moscow. US Dock Index 0:01:11.400 --> 0:01:13.560 futures are on the rise this morning and which the 0:01:13.600 --> 0:01:16.320 markets all day long year on Bloomberg Right now, SMP 0:01:16.480 --> 0:01:19.200 futures are up twelve points or three tens of a percent. 0:01:19.600 --> 0:01:21.560 DAL future is up two tens of a percent or 0:01:21.600 --> 0:01:24.200 sixty five points. At NAST day futures up half percent 0:01:24.319 --> 0:01:27.680 or fifty one points, and the tenure Treasury is up 0:01:27.680 --> 0:01:30.920 twelve thirty seconds. The yield there's three point six nine percent. 0:01:31.000 --> 0:01:33.120 The yield on the two year at four point three 0:01:33.200 --> 0:01:36.480 four percent nine Max Screwed Oil down two point six 0:01:36.480 --> 0:01:38.839 percent out a dollar ninety six and seventy four dollars 0:01:38.920 --> 0:01:41.760 ninety seven cents of barrel and Co mex School is 0:01:41.840 --> 0:01:45.920 up one percent at eighteen sixty four unnounced Nathan. All right, Karen. 0:01:45.959 --> 0:01:47.680 We'll have more on markets in a minute, but we 0:01:47.760 --> 0:01:51.880 begin with political turmoil in Washington. After three rounds of voting, 0:01:52.120 --> 0:01:55.880 House Republican leader Kevin McCarthy has failed to secure the speakership. 0:01:56.160 --> 0:02:00.000 Amy Morris has the latest from our Bloomberg newsroom in Washington. 0:02:00.440 --> 0:02:05.120 McCarthy continued negotiations overnight after the House abruptly adjourned when 0:02:05.200 --> 0:02:08.080 three rounds of balloting failed to elect a Speaker of 0:02:08.120 --> 0:02:10.639 the House. This is the first time in one hundred 0:02:10.760 --> 0:02:13.480 years and the second time since the Civil War that 0:02:13.520 --> 0:02:16.280 a House speaker was not elected on the first ballot. 0:02:16.560 --> 0:02:23.799 McCarthy says he will not withdrawn, so I think from 0:02:23.840 --> 0:02:28.519 the whole perspective, we talk's lawmakers will reconvene at noon 0:02:28.560 --> 0:02:31.080 today for another round of votes to elect a speaker. 0:02:31.320 --> 0:02:34.600 In Washington, I'm anymore is Bloomberg daybreak and Amy, thank 0:02:34.600 --> 0:02:36.880 you on this bload at Kevin McCarthy has opened up 0:02:36.880 --> 0:02:39.880 a rift with a GOP. Former acting White House Chief 0:02:39.880 --> 0:02:43.280 of Staff mcmulvaney is co founder of the House Freedom Caucus. 0:02:43.600 --> 0:02:47.160 He says Republicans who voted against McCarthy are being hammered 0:02:47.160 --> 0:02:50.320 in conservative media outlets. They don't want to make it 0:02:50.360 --> 0:02:52.680 look like the Republicans are complete idiots when it comes 0:02:52.680 --> 0:02:54.760 to running the country, and that's sort of the message, 0:02:55.160 --> 0:02:57.320 you know that coming out of the House today is 0:02:57.360 --> 0:03:00.200 that we don't know how to govern and that's not 0:03:00.320 --> 0:03:03.240 a good thing for our brand. And former White House 0:03:03.320 --> 0:03:06.720 Chief of Staff mc mulvaney's our Washington corresponded Joe Matthew 0:03:06.720 --> 0:03:09.320 on Bloomberg Sound On. Catch the show weekdays at five 0:03:09.320 --> 0:03:11.600 pm Eastern on Bloomberg Radio. And here more of that 0:03:11.639 --> 0:03:15.680 interview coming up shortly on Bloomberg Daybreak. I'm staying in Washington, Karen. 0:03:15.680 --> 0:03:18.600 The White House is taking in its Southwest Airlines. The 0:03:18.639 --> 0:03:21.880 Biden administration says it will hold Southwest responsible for massive 0:03:21.919 --> 0:03:25.480 flight delays over the holidays. Bloomberg's Sad Baxter has that story. 0:03:25.840 --> 0:03:30.080 The White House says Southwest Airlines failed its customers point blank. 0:03:30.520 --> 0:03:34.760 White House spokeswoman Karine Jean Pierre says all cancelations December 0:03:35.400 --> 0:03:38.920 were controllable. She says that is according to Southwest. Well, 0:03:38.960 --> 0:03:42.920 every major airline space challenges from a pre Christmas storm, 0:03:43.000 --> 0:03:46.520 that wreck that wrecked havoc on the aviation system. All 0:03:46.680 --> 0:03:50.840 major airlines except for one, which is Southwest. Clearly we're 0:03:51.040 --> 0:03:54.320 able to recover quickly, and she says the Department of 0:03:54.360 --> 0:03:59.480 Transportation will make sure Southwest makes their customers whole. In 0:03:59.600 --> 0:04:02.440 San Francisco, I'm at Baxter Bloomberg Daybreak, all right, and 0:04:02.520 --> 0:04:03.840 thank you all. It's shaping up to be one of 0:04:03.880 --> 0:04:07.040 the highest profile white collar fraud cases and years the 0:04:07.120 --> 0:04:10.200 case of collapsed crypto exchange f t X is now 0:04:10.240 --> 0:04:11.920 making its way to the courtroom, and we get the 0:04:11.960 --> 0:04:15.320 very latest Live with Bloomberg. Steve Rappaport, Good morning, Steve, 0:04:15.440 --> 0:04:18.080 Good morning, Karen and Nathan. Disgraced f t X founder 0:04:18.120 --> 0:04:21.120 Sam Bankman Fried pled not guilty to eight criminal charges, 0:04:21.200 --> 0:04:25.400 including wire fraud and campaign finance violations. Authority say SPF 0:04:25.480 --> 0:04:28.200 duped investors out of one point eight billion dollars before 0:04:28.200 --> 0:04:31.040 his crypto company went belly up. Bankman Freed was released 0:04:31.040 --> 0:04:33.960 on two hundred fifty million dollars bail after being extradited 0:04:34.000 --> 0:04:36.880 to the US. Prosecutors want a judge to impost additional 0:04:36.920 --> 0:04:40.359 bail conditions. Bankman Fried's trial is scheduled to begin in October, 0:04:40.480 --> 0:04:43.680 Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Thanks Steve. 0:04:43.720 --> 0:04:46.039 Turning to markets now. Wall Street began the new year 0:04:46.120 --> 0:04:49.600 very much like two with losses Apple and Tesla led 0:04:49.680 --> 0:04:52.240 stock slore with the SMP five hundred falling four tenths 0:04:52.240 --> 0:04:56.000 percent yesterday. David Dietz is senior portfolio strategist at Pepack 0:04:56.040 --> 0:04:58.719 Private Wealth Management. It is a new counter year, but 0:04:58.960 --> 0:05:02.119 it's the same old problem. Continue to plague us here. 0:05:02.760 --> 0:05:06.400 I think recession concerns are probably at the top, particularly 0:05:06.400 --> 0:05:11.240 for equity investors, because uh, that could hurt corporate earnings, 0:05:11.279 --> 0:05:14.560 and that's the lifeblob for stuck p pack Private Walt 0:05:14.600 --> 0:05:17.400 David diet says he's concerned there is not concrete evidence 0:05:17.440 --> 0:05:20.680 inflation has peaked. Nathan, and we see today how the 0:05:20.680 --> 0:05:24.039 inflation picture is impacting views at the Federal Reserve. Minutes 0:05:24.120 --> 0:05:26.960 of the Central banks December meeting are released this afternoon. 0:05:27.040 --> 0:05:30.919 We get more from Bloomberg's vine down with inflation staging 0:05:30.960 --> 0:05:34.080 a dramatic break at the FED lifted its benchmark interest 0:05:34.160 --> 0:05:36.520 rate from zero to four point five percent over the 0:05:36.520 --> 0:05:40.560 course of two By many accounts, the Fed will keep tightening, 0:05:40.800 --> 0:05:44.200 lifting the federal funds rate to five percent or even higher. 0:05:44.440 --> 0:05:48.159 Bloombrig economics as key drivers of the inflation rampage, such 0:05:48.240 --> 0:05:51.640 as rising labor course, are alive and well fed. Jared's 0:05:51.640 --> 0:05:54.239 your own Palace said, central bankers still have some ways 0:05:54.279 --> 0:05:57.360 to go. Finny Dells Bloomberg day break. All right, Vinnie, thanks, 0:05:57.360 --> 0:05:59.960 you got a couple inflation readings out of Europe this morning. Friend. 0:06:00.200 --> 0:06:04.240 Inflation unexpectedly slowed in December, consumer prices rose six point 0:06:04.279 --> 0:06:07.600 seven percent from a year earlier. That's after record increases 0:06:07.640 --> 0:06:10.719 of seven point one percent in October November, and food 0:06:10.720 --> 0:06:13.799 inflation in UK stores jumped to a record high thirteen 0:06:13.839 --> 0:06:17.480 point three percent last month. And finally, Nathan cathy Wood 0:06:17.520 --> 0:06:20.200 continues to double down on Tesla, the investor about more 0:06:20.240 --> 0:06:23.799 than one hundred seventy six thousand shares the electric vehicle producer. 0:06:24.120 --> 0:06:27.200 The purchase came yesterday as Tesla stock plunge twelve percent. 0:06:27.440 --> 0:06:29.920 That's the biggest one day drop in more than two years. 0:06:30.240 --> 0:06:32.679 Was Exchange traded funds have bought more than nine hundred 0:06:32.720 --> 0:06:36.200 thirty eight thousand shares of Tesla since October, and this morning, 0:06:36.240 --> 0:06:39.280 Tesla shares are up almost two percent in early trading. 0:06:39.600 --> 0:06:41.080 Futures are up as well. Care and S and P 0:06:41.240 --> 0:06:43.280 futures right now are up fourteen points. That's the game 0:06:43.320 --> 0:06:46.000 of four tenth percent down. Futures are up seventy nine points, 0:06:46.320 --> 0:06:49.520 NASAAC futures leading the games up fifty nine points or 0:06:49.600 --> 0:06:52.200 a half percent, and the tenure treasury is up thirteen 0:06:52.240 --> 0:06:55.880 thirty seconds. Yell three point six nine percent. Local headlines 0:06:55.960 --> 0:06:59.719 and a check of sports just ahead This is Bloomberg 0:07:03.279 --> 0:07:05.679 Sound six oh seven on Wall Street, fifty seven degrees 0:07:05.800 --> 0:07:08.719 in Central Park. It's gonna be rainy this afternoon, mild 0:07:08.720 --> 0:07:10.920 two with highs and the low sixties, getting down to 0:07:10.920 --> 0:07:13.800 the upper forties tonight. Michael barrs here with more than 0:07:13.840 --> 0:07:15.680 what's going on in New York and around the world. 0:07:15.720 --> 0:07:17.520 Good morning, My call you, Good morning. Nathan, the man 0:07:17.560 --> 0:07:19.840 accused of shooting up in New York City subway car, 0:07:19.960 --> 0:07:23.440 pleaded guilty yesterday. Frank James shout and moved to ten 0:07:23.480 --> 0:07:27.360 passengers on the Manhattan bound N train in Brooklyn, April twelve. 0:07:27.760 --> 0:07:30.240 He did not say why, but James conceded, while I 0:07:30.280 --> 0:07:33.280 was on the train, I fired a weapon. James said 0:07:33.320 --> 0:07:35.760 he did not intend to kill anyone, but told the 0:07:35.880 --> 0:07:39.160 judge he was fully aware that deaths could occur as 0:07:39.160 --> 0:07:42.480 a result of discharging a firearm in such an enclosed space. 0:07:42.960 --> 0:07:47.040 Prosecutors revealed James had been planning the attacks since twenty seventeen, 0:07:47.080 --> 0:07:50.000 and even conducted a trial run. He faced his life 0:07:50.000 --> 0:07:53.680 in prison. It was day one Foreign battled Representative George 0:07:53.680 --> 0:07:56.600 Santos in Congress, and it was far from a house 0:07:56.600 --> 0:08:06.440 party when reporters shouted questions, Jimmy, you have the Long 0:08:06.480 --> 0:08:09.440 Island Republican did not answer questions and once in the 0:08:09.480 --> 0:08:13.080 House Chamber, sat by himself. Santo's admits he lied about 0:08:13.120 --> 0:08:16.160 his resume, including his education and work. There are calls 0:08:16.200 --> 0:08:19.000 for him to resign. The man suspected of killing four 0:08:19.120 --> 0:08:22.160 University of Idaho students could arrive back in Idaho today. 0:08:22.520 --> 0:08:25.960 Brian Coburger agreed to go voluntearily during a court hearing 0:08:25.960 --> 0:08:29.960 in Pennsylvania yesterday. Major Christopher Paris is with the Pennsylvania 0:08:30.040 --> 0:08:34.520 State Police. Arrangements currently are being made to deliver Coburger 0:08:34.520 --> 0:08:37.600 back to Idaho, where he can have continued to process 0:08:37.640 --> 0:08:40.400 and face these charges. The father of one of the victims, 0:08:40.480 --> 0:08:44.240 Kay League Gonclave's, welcome Coburger's arrest. It felt like a 0:08:44.280 --> 0:08:47.080 cloud was lifted off of us. It definitely provided belief 0:08:47.679 --> 0:08:52.040 in comfort to know that things were progressing. Coburger faces 0:08:52.040 --> 0:08:55.520 four counts of murder and one count of burglary. Emergency 0:08:55.559 --> 0:08:57.880 crew sifted through the rubble of a building struck by 0:08:58.000 --> 0:09:01.240 Ukrainian rockets, killing at least eighty nine Russian soldiers. It 0:09:01.320 --> 0:09:04.800 happened in the town partially Russian occupied in the Eastern 0:09:04.920 --> 0:09:08.520 Danesque region. A rule change by the FDA will allow 0:09:08.559 --> 0:09:11.200 a broader range of pharmacies to fill prescriptions for the 0:09:11.200 --> 0:09:15.280 abortion pill known as myth of pristone. The pharmacy must 0:09:15.320 --> 0:09:18.800 meet certain requirements and prescriptions can only be written by 0:09:18.840 --> 0:09:22.480 certified healthcare providers. Global News twenty four hours a day 0:09:22.520 --> 0:09:25.400 on air and on Bloomberg Quick Tank, powered by more 0:09:25.440 --> 0:09:28.280 than seven hundred journalists and analysts more than a hundred 0:09:28.280 --> 0:09:32.000 twenty countries. Michael Barron, this is Bloomberg, Nathan, Thanks Michael 0:09:36.679 --> 0:09:38.640 six o nine on Wall Street time for the Bloomberg 0:09:38.679 --> 0:09:40.840 Sports Update, brought to you by Tri State out He 0:09:40.840 --> 0:09:43.560 here's John stash Hour. All right, Nathan to mar Hamlin's 0:09:43.640 --> 0:09:46.679 uncle says, his nephew and still fighting the Buffalo Bill 0:09:46.720 --> 0:09:49.920 safety remains an intensive care and critical condition that Cincinnati 0:09:49.960 --> 0:09:52.720 hospital his heart because apparently was suscitated not only on 0:09:52.760 --> 0:09:55.840 the field Monday night, but again in the hospital. Reaction 0:09:55.920 --> 0:09:59.439 to Hamlin yesterday from longtime Steelers coach Mike Tomlin, that's 0:09:59.440 --> 0:10:02.360 a really the whole thing for me being a Pittsburgher 0:10:03.160 --> 0:10:05.240 and that young man being a Pittsburgh I've known that 0:10:05.320 --> 0:10:09.160 guy probably says he was about twelve. Um just got 0:10:09.200 --> 0:10:11.760 a lot of respect and love for him as a 0:10:11.840 --> 0:10:16.200 human being, his commitment to the pursuit of his goals, 0:10:16.200 --> 0:10:17.959 and drain their kids. You need to be reports the 0:10:18.040 --> 0:10:20.959 NFL wanted the game to be resumed. The league insisted 0:10:21.040 --> 0:10:22.720 that wasn't the case. In the NFL did announce the 0:10:22.720 --> 0:10:25.280 game will not be resumed this week. Bills and Bengals 0:10:25.320 --> 0:10:27.880 will play their scheduled games Sunday, which makes it scene 0:10:27.880 --> 0:10:30.439 they'll end up playing one fewer game and the a 0:10:30.640 --> 0:10:33.800 f C seedings was determined by win percentage. Carolina Hurricanes 0:10:33.800 --> 0:10:35.480 came to the Garden having won eleven a row, didn't 0:10:35.480 --> 0:10:38.560 trail until kay Andre Miller go midway to the third period. 0:10:38.600 --> 0:10:40.360 The Rangers scored three in the third and they beat 0:10:40.360 --> 0:10:42.400 the Keynes five to three. Of The Islanders won six 0:10:42.440 --> 0:10:45.000 two at Vancouver. Matthew bars All had a goal to 0:10:45.040 --> 0:10:47.160 assist Nix her home tight for San Antonio and the 0:10:47.200 --> 0:10:50.560 Nets bring their twelve game winning streak to Chicago. St. 0:10:50.600 --> 0:10:53.400 John's Blue Ella lost at home to Marquette in nineties 0:10:53.440 --> 0:10:55.960 six to eighty five in the Red Storm. Now just 0:10:56.000 --> 0:10:58.080 one and four in the Big East. We're seeing Hall 0:10:58.160 --> 0:11:00.600 lost like twenty two at Crainton, Yankees of hired Brian 0:11:00.720 --> 0:11:04.040 sabe into assist GM Brian Cashman. Sabian started his career 0:11:04.080 --> 0:11:06.360 in the Yankee front office and then spent thirty years 0:11:06.679 --> 0:11:11.040 with the San Francisco Giants. I'm John Stash Bloomberg Sports John. 0:11:11.080 --> 0:11:13.600 Thanks Bloomberg. Sports Report was brought to you by Audie. 0:11:13.640 --> 0:11:16.160 Don't let someone else drive off in the Audi model. 0:11:16.200 --> 0:11:18.880 You've always wanted to visit your local Tri state Audie 0:11:18.880 --> 0:11:20.920 dealer to get behind the wheel of yours today, or 0:11:21.000 --> 0:11:24.600 visit Autie Offers dot com for more information. What comes 0:11:24.640 --> 0:11:28.280 next in the speakership fight on Capitol Hill. We'll get 0:11:28.320 --> 0:11:31.800 insights on that live from Wendy Schiller, director of the 0:11:31.920 --> 0:11:36.880 Topman Center at Brown University. That's just ahead. First SMP 0:11:36.960 --> 0:11:40.360 futures are higher by fourteen points, staff futures up eighty 0:11:40.360 --> 0:11:43.400 five NASTACK futures up sixty three points. The tenure treasury 0:11:43.440 --> 0:11:46.880 is up thirteen thirty seconds, yield three point six eight percent, 0:11:47.040 --> 0:11:49.640 Nimex crew down two and a half percent at seventy 0:11:49.880 --> 0:11:52.600 oh for a barrel. Comics gold up one point one 0:11:52.600 --> 0:11:55.240 percent at eighteen sixty six ten announced, and the Euro 0:11:55.320 --> 0:11:58.880 trading at one point zero six one nine against the dollar. 0:12:02.640 --> 0:12:06.040 Live from coast to coast, from New York to San Francisco, 0:12:06.240 --> 0:12:10.120 Boston to Washington, d C. Nationwide on Sirius xamp, the 0:12:10.160 --> 0:12:14.840 Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. 0:12:15.360 --> 0:12:18.319 Good morning, I'm Nathan Hager. As a fight over leadership 0:12:18.400 --> 0:12:23.880 on Capitol Hill continues later this afternoon, Kevin McCarthy is 0:12:24.000 --> 0:12:26.760 vowing to fight on in his long held ambition to 0:12:26.840 --> 0:12:29.520 become the next Speaker of the House, but that dream 0:12:29.600 --> 0:12:33.760 has been deferred delta serious blow yesterday after McCarthy lost 0:12:33.880 --> 0:12:36.480 three straight votes and failed to drum up any further 0:12:36.559 --> 0:12:39.800 support from his GOP caucus in the process. For more, 0:12:39.840 --> 0:12:42.679 we're joined by Wendy Schiller, director of the Tobbin Center 0:12:42.720 --> 0:12:46.000 for American Politics and Policy at Brown University. It's great 0:12:46.040 --> 0:12:48.000 to speak with you this morning, Wendy. You know, you're 0:12:48.000 --> 0:12:51.280 such an expert on the history of American politics, so 0:12:51.320 --> 0:12:54.920 I'm really curious to get your thoughts on where this 0:12:55.040 --> 0:12:59.160 stands compared to other speakership fights that we've seen in 0:12:59.200 --> 0:13:01.360 the past. As we been saying, it's been a hundred 0:13:01.480 --> 0:13:07.040 years since the last time speakership vote was determined by 0:13:07.080 --> 0:13:12.160 more than one ballot count. Yeah, and when that happened, um, 0:13:12.240 --> 0:13:14.600 the size of fail government was nothing compared to what 0:13:14.640 --> 0:13:16.520 it is today. And that's what we have to remember is, 0:13:16.760 --> 0:13:20.160 you know, is the federal government literally too big to fail? Now? 0:13:20.520 --> 0:13:22.480 In other words, you know, can we have can we 0:13:22.520 --> 0:13:25.080 have dysfunction in the House of Representatives and still function 0:13:25.600 --> 0:13:28.199 in terms of seneral government? And the answer is yes, 0:13:28.320 --> 0:13:32.040 we can, but it will feed more power, ironically to 0:13:32.120 --> 0:13:34.520 President Biden and the executive branch. We've seen this over 0:13:34.520 --> 0:13:37.800 the last twenty years, that power has shifted when Congress 0:13:37.800 --> 0:13:41.480 hasn't been able to get anything done to Presidents Bush, Obama, Trump, 0:13:41.720 --> 0:13:43.959 and Biden, and the same thing will happen, which is 0:13:43.960 --> 0:13:48.240 of course exactly the opposite of what the most uh 0:13:48.440 --> 0:13:52.640 you know, rebellious of the Republicans want. They want to undermine, uh, 0:13:52.679 --> 0:13:56.000 you know, destroy, bring down the federal government and Joe Biden. 0:13:56.280 --> 0:13:58.600 But if they can't function, then the president will have 0:13:58.679 --> 0:14:01.840 to function through executive or which only strengthens Joe Biden. 0:14:01.960 --> 0:14:04.840 So all their efforts on remind the speakership actually go 0:14:04.880 --> 0:14:07.880 awright against what they claim to profess to want to happen. 0:14:08.280 --> 0:14:13.600 Very interesting perspective there. Does this also give more power 0:14:13.960 --> 0:14:19.520 to the Democratic caucus within the House? Um? You know 0:14:19.880 --> 0:14:21.680 you'd like to think so if you're a Democrat, But 0:14:21.720 --> 0:14:24.360 I don't see how that gives you any more power 0:14:24.680 --> 0:14:27.880 except on things like the debt ceiling for example. I mean, 0:14:27.920 --> 0:14:30.720 if a new speaker, whether it's McCarthy, orether, it's Steve 0:14:30.800 --> 0:14:34.160 Scalase for example, a second in command, who may emerge 0:14:34.240 --> 0:14:36.880 to be the consensus choice, we don't know. Jim Jordan 0:14:36.960 --> 0:14:39.360 has said, even though they professed to bore for him, 0:14:39.400 --> 0:14:41.640 that people are going against McCarthy, that he doesn't want 0:14:41.640 --> 0:14:44.320 the job, he's not interested in it. Um. It may 0:14:44.360 --> 0:14:46.280 be turned to s glease And if they bring if 0:14:46.280 --> 0:14:48.880 they could even bring a bill to the floor, which 0:14:48.880 --> 0:14:52.240 you can do with a discharged position petition, which then 0:14:52.240 --> 0:14:54.720 you would need Democratic votes to do. Uh, then the 0:14:54.760 --> 0:14:56.880 Democrats would have to vote for an increase in the 0:14:56.880 --> 0:14:58.960 debt ceiling. So yes, I mean in the end of 0:14:58.960 --> 0:15:00.800 the day for the government of function. It looks like 0:15:00.840 --> 0:15:02.800 in the next at least the next couple of months, 0:15:02.840 --> 0:15:05.560 the Democrats may have to join with Republican leadership to 0:15:05.600 --> 0:15:08.640 get must pass bills um through and they'll have an 0:15:08.640 --> 0:15:10.880 insense to do that because they have a Democrat in 0:15:10.880 --> 0:15:13.520 the White House. So there is a glimmer of hope 0:15:13.560 --> 0:15:16.200 for functionality, but it's it's not going to be a 0:15:16.240 --> 0:15:19.040 straightforward majority party rule. And we've seen we've seen the 0:15:19.080 --> 0:15:21.560 seeds of this coming since the Tea Party came in. 0:15:22.480 --> 0:15:25.640 John Bayner couldn't get it done, Paul Ryan couldn't get 0:15:25.640 --> 0:15:29.160 it done. You know. It's McCarthy had really turned against Trump. 0:15:29.160 --> 0:15:32.080 For example, after January six. Some people argue, uh, he 0:15:32.200 --> 0:15:35.160 might have diminished kind of the energy that is fueling 0:15:35.760 --> 0:15:39.160 the rebellious twenty But he didn't do that. He chose 0:15:39.200 --> 0:15:41.400 to go the opposite direction and embrace Trump. And you 0:15:41.480 --> 0:15:43.880 have to ask yourself, is he is he really taking 0:15:43.920 --> 0:15:46.400 him out with a big mistake now because that has 0:15:46.400 --> 0:15:49.400 come back to on him. Well, it's interesting because listening 0:15:49.400 --> 0:15:52.760 to Kevin McCarthy after he failed in those votes yesterday, 0:15:52.840 --> 0:15:56.320 he's saying now that he still has former President Trump's support, 0:15:56.480 --> 0:16:00.760 what does that mean for his chances as he gets 0:16:00.800 --> 0:16:04.320 ready for yet another round of voting later this afternoon. 0:16:05.760 --> 0:16:09.480 The problem with that argument is that Trump's ability or 0:16:09.600 --> 0:16:13.400 persuasion for some of something newly elected members is waiting. 0:16:13.640 --> 0:16:16.000 You know, I think they see themselves as new Trumps. 0:16:16.040 --> 0:16:18.200 They don't need Trump anymore. They've got the energy, they 0:16:18.240 --> 0:16:20.320 got the voting base, they got the rhetoric, they've got 0:16:20.360 --> 0:16:23.200 the roadmap. Uh, they don't need Trump per se. And 0:16:23.280 --> 0:16:25.000 so I don't know that Trump's gonna have a lot 0:16:25.040 --> 0:16:28.200 of influence moving forward with them. You know, they want 0:16:28.280 --> 0:16:31.720 to bring down the federal government's apparatus. It's a huge, 0:16:31.840 --> 0:16:34.720 huge infrastructure in the fell government, and they want things 0:16:34.760 --> 0:16:36.480 to go back to the states, and they're gonna do 0:16:36.480 --> 0:16:39.240 everything they can to you know, cripple the functioning of 0:16:39.240 --> 0:16:41.680 the federal government and then show hey, look, country can 0:16:41.680 --> 0:16:44.160 still function, States can still fill in the gap. We 0:16:44.200 --> 0:16:47.520 don't need such a big federal government. But ironically, as 0:16:47.560 --> 0:16:49.520 I just said, if they don't do what they need 0:16:49.600 --> 0:16:51.640 to do, the president will have to resort to executive 0:16:51.720 --> 0:16:54.160 orders to get things done, and that will only expand 0:16:54.200 --> 0:16:56.680 the power or the federal government. Only about thirty seconds 0:16:56.760 --> 0:16:58.560 left here, Wendy, how much longer do you think this 0:16:58.640 --> 0:17:02.600 leadership fight lasts. It all depends on Kevin McCarthy. You know, 0:17:02.640 --> 0:17:04.360 if he wants to stick it out and keep going, 0:17:04.520 --> 0:17:07.040 keep going. Um, then you know he's going to make 0:17:07.080 --> 0:17:09.719 them continuously vote against him. And if nobody else steps 0:17:09.800 --> 0:17:13.000 up to say I'll be the alternative, then this can 0:17:13.080 --> 0:17:15.240 keep going. And the longer it goes, you know, the 0:17:15.280 --> 0:17:17.920 more delayed there is an investigating President Biden, which is 0:17:17.960 --> 0:17:20.080 of course what Jim Jordan and other people want to do. 0:17:20.359 --> 0:17:22.159 That's what they want to spend their time on. But 0:17:22.240 --> 0:17:24.520 you know, if you want publicity for Hunter Biden's laptop, 0:17:24.840 --> 0:17:26.760 you know, not being able to elect to speaker is 0:17:26.800 --> 0:17:30.560 not a great strategy for getting there. Thanks as always, professor, 0:17:30.640 --> 0:17:32.680 great to get your thoughts. Wendy Schiller, director of the 0:17:32.720 --> 0:17:37.119 Topman Center for American Politics and Policy at Brown University. 0:17:37.320 --> 0:17:41.240 Stay with Bloomberg Radio will continue following the leadership fight. 0:17:41.600 --> 0:17:46.000 It gets back going noon, Wall Street Time on Capitol Hill. 0:17:46.440 --> 0:17:49.439 How did the market open this morning? SMP futures are 0:17:49.480 --> 0:17:52.119 up sixteen points, staff futures are up nine and nastatic 0:17:52.160 --> 0:17:54.880 futures are higher by sixty nine points ten. Your treasuries 0:17:54.920 --> 0:17:58.639 up thirteen thirty seconds, you'll three point six percent. This 0:17:58.800 --> 0:18:05.120 is Bloomberg Markets, headlines and breaking news twenty four hours 0:18:05.119 --> 0:18:08.080 a day at Bloomberg dot com, the Bloomberg Business Out 0:18:08.160 --> 0:18:17.480 and at Bloomberg Quick Take, She's a Bloomberg Business lash 0:18:17.840 --> 0:18:20.040 and I'm kared Moscow. And this updates brought to you 0:18:20.080 --> 0:18:23.640 by Innovation Refunds. This is your daily reminder from Innovation 0:18:23.680 --> 0:18:26.480 Refunds to apply for a payroll tax refund if you're 0:18:26.560 --> 0:18:31.000 smaller medium sized business was impacted by COVID nineteen. Innovation 0:18:31.080 --> 0:18:34.800 Refunds clients already claimed over two billion dollars in payroll 0:18:34.840 --> 0:18:39.760 tax refunds. Get started at get refunds dot com. Futures 0:18:39.800 --> 0:18:41.840 on the rise this morning. We checked the markets all 0:18:41.920 --> 0:18:44.960 day long year on Bloomberg. Right now, SMP futures are 0:18:45.000 --> 0:18:48.159 up buddy teen points, up about half percent now, futures 0:18:48.160 --> 0:18:50.320 of three tens of upper cent or ninety eight points, 0:18:50.359 --> 0:18:53.560 and NASTACK futures up seven tenths of uppercent or seventy 0:18:53.560 --> 0:18:55.639 one points. The decks in Germany's up one and a 0:18:55.680 --> 0:18:58.800 half percent. Ten year treasury of fourteen thirty seconds, you know, 0:18:58.880 --> 0:19:00.639 three point six eight percent if they yield on the 0:19:00.680 --> 0:19:03.640 two year four point three four percent. Nine X freude 0:19:03.640 --> 0:19:06.000 oil is down two point four percent on a dollar 0:19:06.080 --> 0:19:09.359 eighty seven at seventy six cents of barrel. Comex gold 0:19:09.440 --> 0:19:11.520 up one point two percent, or twenty one dollars forty 0:19:11.600 --> 0:19:14.960 cents at eighteen sixty seven sixty announced, the Euro one 0:19:15.000 --> 0:19:17.679 point six one seven against the dollar, British pound one 0:19:17.680 --> 0:19:19.959 point to zero six seven, the yun is at one 0:19:20.040 --> 0:19:22.840 thirty point three four and bitcoin is up one point 0:19:22.880 --> 0:19:26.160 one percent at about sixteen thousand, eight hundred fifty dollars. 0:19:26.200 --> 0:19:28.600 And that's a Bloomberg business flash. Now here's Michael Barr 0:19:28.640 --> 0:19:31.280 Withpore on what's going on around the world. Michael darre in. 0:19:31.320 --> 0:19:33.840 The House will convene today as Republicans trag in who 0:19:33.840 --> 0:19:36.960 elected speaker for the new Congress. Up leader Kevin mccarnthy, 0:19:37.040 --> 0:19:39.520 came short of overcoming opposition from the far right of 0:19:39.560 --> 0:19:42.760 his party after three votes. In the NBA at the 0:19:42.800 --> 0:19:47.640 Celtic Wizards lost the hockey game of the Rangers and Islanders. 0:19:47.720 --> 0:19:51.840 They won capitals, lost in not bills. DeMar Hamlin remains 0:19:51.840 --> 0:19:55.000 a critical condition after a cardiac arrest during a Monday 0:19:55.080 --> 0:19:58.520 night football game. Hamelin's uncle says that doctors produced the 0:19:58.520 --> 0:20:01.199 amount of oxygen. Hamlin was seaving global news twenty four 0:20:01.240 --> 0:20:03.040 hours a day on the air and on Bloomberg Quick 0:20:03.080 --> 0:20:05.640 Take Power about more than seven d journalists man less 0:20:05.680 --> 0:20:07.399 more than a hundred twenty countries. On Michael Barr, this 0:20:07.440 --> 0:20:10.000 is Bloomberg, nath thank you, Michael. It is six on 0:20:10.000 --> 0:20:12.720 Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak. And 0:20:12.800 --> 0:20:15.639 House Republican leader Kevin McCarthy may be hoping the fourth 0:20:15.680 --> 0:20:18.040 time is the charm in his bid to become the 0:20:18.040 --> 0:20:19.920 next Speaker of the House. For the first time in 0:20:19.960 --> 0:20:23.080 a hundred years, a House speaker has not been elected 0:20:23.160 --> 0:20:26.320 on the first ballot, so lawmakers will be back at 0:20:26.359 --> 0:20:29.840 it again Noon Wall Street Time today. Nick mulvaney, former 0:20:29.840 --> 0:20:31.600 Wine House chief of staff and co founder of the 0:20:31.600 --> 0:20:35.080 House Freedom Caucus, is weighing in on the speakership fight. 0:20:35.119 --> 0:20:38.120 He spoke with our Washington correspondent Joe Matthew late yesterday. 0:20:38.200 --> 0:20:40.920 Let's listen in. I know this is more complicated than 0:20:40.960 --> 0:20:43.240 it being a so called freedom Caucus thing. What is 0:20:43.280 --> 0:20:46.160 the problem with Kevin McCarthy. Oh, it's let's be clear, 0:20:46.160 --> 0:20:47.960 it's not a freedom Caucus thing. The majority of the 0:20:48.000 --> 0:20:50.920 Freedom Caucus voted for Kevin McCarthy three times today, So no, 0:20:51.080 --> 0:20:52.919 a lot of these folks, not all of them. A 0:20:52.920 --> 0:20:54.639 lot of these folks were post Kevin are in the 0:20:54.640 --> 0:20:57.440 Freedom Caucus, but this is not a Freedom Caucus sort 0:20:57.440 --> 0:21:00.439 of rebellion. I don't know what the objection is, you know. 0:21:00.560 --> 0:21:03.600 And I talked to Ralph Norman, my congressman the South, 0:21:03.600 --> 0:21:04.879 and I said, you know, why are you doing this? 0:21:04.920 --> 0:21:07.359 Because well, we're losing our country. I'm like, okay, I 0:21:07.359 --> 0:21:09.879 guess I agree with that, because you know, we're drowning 0:21:09.880 --> 0:21:11.679 it dead. I'm like, I get that, But tell me 0:21:11.720 --> 0:21:14.800 how you know not voting for Kevin McCarthy solves that. 0:21:15.000 --> 0:21:17.360