Speaker 1: This is Tom Keane introducing you to the Bloomberg Daybreak podcast.
Speaker 1: Every day, Nathan Hager, Karen Moscow, and Michael Barr bring
Speaker 1: you a roundup of the top stories. It's all on
Speaker 1: the Daybreak podcast feed by six am each morning, and today,
Speaker 1: for our Bloomberg Surveillance audience, we bring you a sample
Speaker 1: of the show.
Speaker 2: Good morning, I'm Nathan Hager.
Speaker 3: And I'm Karen Moscow. Here are the stories we're following today.
Speaker 2: We began with the latest developments in the investigation into
Speaker 2: the door panel blowout on a Boeing seven thirty seven
Speaker 2: Max nine. Bloomberg's John Tucker is here with the latest
Speaker 2: John and Nathan.
Speaker 4: More and more of the focus is turning to bolts
Speaker 4: and whether they were properly tightened. As the NTSP tries
Speaker 4: to find answers to how that unused door panel blew
Speaker 4: off at Alaska Airlines Boeing seven thirty seven Max nine
Speaker 4: over Portland. Another airline says it's found loose bolts. United
Speaker 4: confirms it found loose bolts after inspanking identical door plugs
Speaker 4: as the one that blew out on the Alaska plane.
Speaker 4: NTSB chairman Jennifer Hamendi we are.
Speaker 5: Aware of the reports of that are coming back from
Speaker 5: the inspections from United and Alaska and Boeing. Our team
Speaker 5: is collecting that information and there will be some follow
Speaker 5: up from the inspections.
Speaker 4: It's unclear how many loose polts were found. The NTSB
Speaker 4: may now broaden the probe into other Max nine jets
Speaker 4: beyond the Alaska Airlines model on which the accident occurred.
Speaker 4: It intensified scrutiny of the manufacturing process that Boeing at
Speaker 4: its key supplier, Spirit Aerosystems, which makes the fuselage for
Speaker 4: the seven thirty seven Max. I'm John Tucker, Bloomberg Radio.
Speaker 3: All right, John, Thanks well. Another major story that we're
Speaker 3: following this morning involves a high stakes court hearing in Washington,
Speaker 3: d C. Lawyers for Donald Trumpel's spar with federal prosecutors
Speaker 3: over whether the former president is immuniform charges of trying
Speaker 3: to overturn the twenty twenty election results. Bloomberg's Amy Morris
Speaker 3: has more from Washington.
Speaker 6: Oral arguments are set for today before a three judge
Speaker 6: panel with the US Court of Appeals for the d
Speaker 6: C Circuit over whether Donald Trump is shielded from prosecution
Speaker 6: for his actions before and during the January sixth riot
Speaker 6: at the US Capitol. Now Trump said on social media
Speaker 6: he planned to attend, but he is not expected to
Speaker 6: address the court. The judges could hand down their ruling
Speaker 6: at any time after the hearing, and a ruling in
Speaker 6: favor of Trump could be a fatal blow to the
Speaker 6: Justice Department's efforts to try him. While either side has
Speaker 6: the right to appeal, neither the full DC Court nor
Speaker 6: the U. S. Supreme Court are required to take the case,
Speaker 6: so this Court's ruling could be the final word in Washington.
Speaker 6: Amy Moore as Bloomberg.
Speaker 2: Radio, Okay, Amy, thank you will staying in Washington. Bipartisan
Speaker 2: anger is building against Defense Secretary Lloyd Austin. We get
Speaker 2: that story from Bloomberg's Dan Schwartzman.
Speaker 7: Politicians on both sides of the isle are demanding answers
Speaker 7: as to why Defense Secretary Lloyd Austin failed to let
Speaker 7: anyone know he was hospitalized on New Year's Day. The
Speaker 7: retired general didn't even let the White House know he
Speaker 7: was at Walter Reed Medical Center for four days. On
Speaker 7: a day after that, Austin was hospitalized, but did not
Speaker 7: tell the White House, Congress, or even the Deputy Defense
Speaker 7: Secretary for several days. Republican Senator Susan Collins Remain says
Speaker 7: it's quote inexplicable that the secretary's condition remains shrouded in secrecy,
Speaker 7: while Massachusetts Democrat Seth Bulden says this astounding that the
Speaker 7: president in Austin's own deputy did know he was in
Speaker 7: the hospital. According to White House spokesman John Kirby, President
Speaker 7: Biden has no plans to replace Austin. Dan Schwartzman Bloomberg Radio.
Speaker 3: All right, Dan, thanks now to the latest developments in
Speaker 3: the Middle East. Secretary of State Anthony Blencoln says, who
Speaker 3: the militants will face consequences if they continue to attack
Speaker 3: ships in the Red Sea, he told reporters, and more
Speaker 3: violence will be detrimental for the region.
Speaker 8: It's clearly not in the interest to anyone Israel, Lebanon
Speaker 8: has Bola for that matter, to see this escalate and
Speaker 8: to see an actual conflict. And the Israelis have been
Speaker 8: very clear with us that they want to find a
Speaker 8: diplomatic way forward.
Speaker 3: Secretary of State Antony Blane and meets with Israel's leader
Speaker 3: Benjaminte and Yahoo later today.
Speaker 2: Let's turn back to markets now, Karen, as you mentioned,
Speaker 2: futures are lower following yesterday's rally on Wall Street that
Speaker 2: saw the Nasdaq surge more than two percent. In Asia,
Speaker 2: the Knee Ky in Japan closed at its highest level
Speaker 2: in thirty four years.
Speaker 3: Me and Mole Nathan. Former bond king Bill Gross is
Speaker 3: signaling he is now steering clear of treasuries. In a
Speaker 3: post on x Gros said ten year treasury yields at
Speaker 3: four percent are overvalued. Gross made millions late last year
Speaker 3: after a big bet the Fed would pivot toward interest
Speaker 3: rate cuts for twenty twenty four.
Speaker 2: Well Karen, the president's top economic advisor, says the White
Speaker 2: House's work is not done when it comes to lowering
Speaker 2: prices for American consumers. Lyle Brainerd spoke with Joe Wisenthal
Speaker 2: and Tracy Alloway on the Bloomberg Godlots podcast.
Speaker 9: Some prices have not come down, and we're fighting pretty
Speaker 9: hard to get those prices to come down. One area
Speaker 9: that really is difficult for Americans is healthcare.
Speaker 2: White House Economic advisor Lyle Brainerd a ads the administration
Speaker 2: will use its position to continue calling out corporations who
Speaker 2: aren't passing along cost savings to consumers For the full conversation,
Speaker 2: download the latest edition of Bloomberg Odd Lots that's available
Speaker 2: everywhere you get your podcasts. And Shares of Nvidia closed
Speaker 2: at a record high. The company's chip technology dominates in
Speaker 2: data centers used to create artificial intelligence software. Now, in
Speaker 2: Vidia's announced new products to help the personal computer industry
Speaker 2: lower consumers with AIPCS.
Speaker 3: Another chip maker in the spotlight this morning, Nathan Samsung
Speaker 3: Electronics is posted at six straight quarter of declining operating profit.
Speaker 3: The results underscore how demand for smartphones and the memory
Speaker 3: chips remain sluggish given economic uncertainty, and shares.
Speaker 2: Of Match are up more than eight percent in early trading,
Speaker 2: that says The Wall Street Journal reports Elliott Investment Management
Speaker 2: has built a stake of about a billion dollars in
Speaker 2: the dating app company.
Speaker 3: Time now for a look at some of the other
Speaker 3: stories making news around the world, and for that we're
Speaker 3: joined by Bloomberg's Amy Morris. See me, Good morning, Good.
Speaker 6: Morning, Karen. Homeland Security Secretary Alejandro new Orcas was an
Speaker 6: eagle pass taxes to meet with elected leaders and border
Speaker 6: patrol agents at the southern US border. Now, he says
Speaker 6: it's too early to tell if the significant drop in
Speaker 6: border crossings over the past week is related to the
Speaker 6: holiday season or stepped up enforcement operations in Mexico.
Speaker 5: Our immigration system is outdated and broken and has been
Speaker 5: in need of reform for literally decades.
Speaker 1: On this, everyone agrees.
Speaker 6: Arizona Senator Kirsten Cinema, an independent who has been central
Speaker 6: in negotiations, says she's not sure whether text is going
Speaker 6: to be available, but she hopes there will be something
Speaker 6: to present this week. House Republicans are pushing to impeach
Speaker 6: may Orcis. Senate Republicans want him to help cut a
Speaker 6: border security deal. President Biden meanwhile moving to win back
Speaker 6: black voters. Bloomberg's Nancy Lyons has more. On his trip
Speaker 6: to South Carolina.
Speaker 10: President Biden delivered remarks at Mother Emmanuel AMA Church in Charleston,
Speaker 10: South Carolina, where why supremacist killed nine people in twenty fifteen.
Speaker 10: Biden says our country must deal with racism.
Speaker 1: It is a poison throughout our history, driptestination apart, He says,
Speaker 1: no plice.
Speaker 2: In America, not today tomorrow.
Speaker 10: Ever, Biden's favorability among black voters in seven swing states
Speaker 10: has slipped seven percentage points since October to sixty one
Speaker 10: percent in December. That's according to a Bloomberg News Morning
Speaker 10: Consult poll in Washington. Nancy lyons Bloomberg Radio Now.
Speaker 6: Former President Trump wants his supporters to give him a
Speaker 6: definitive win in Iowa, even with a commanding leading the
Speaker 6: polls with less than a week before the caucuses. Trump's stressed, turnout, the.
Speaker 11: People of this state are going to cast the most
Speaker 11: important vote of your entire lives. I believe that too
Speaker 11: very much.
Speaker 12: I used to say that twenty sixteen, and I believed
Speaker 12: it then, and now I believe this is even much
Speaker 12: more important.
Speaker 6: The Trump campaign believes a decisive Iowa victory would put
Speaker 6: pressure on his GOP rivals to drop out. Florida Governor
Speaker 6: DeSantis and former South Carolina Governor Nikki Haley have failed
Speaker 6: to gain much significant ground in the Iowa polls against Trump.
Speaker 6: Next up New Hampshire January twenty third. That's where Nicki
Speaker 6: Haley has been gaining more momentum while still trailing Trump.
Speaker 6: Global News twenty four hours a day and whenever you
Speaker 6: want it with Bloomberg News Now, I'm Amy Morris, and
Speaker 6: this is Bloomberg. Karen right, Nimi, thank you.
Speaker 3: We to bring you news throughout the day here on
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Speaker 3: Bloomberg dot Com plus Apples, Spotify, and anywhere else you
Speaker 3: get your podcasts. Time now for the Bloomberg Sports Update.
Speaker 3: Here's John stash Hour John.
Speaker 12: Karn the Michigan Wolverines national champions in college footwall in Houston.
Speaker 12: They beat Washington thirty four to thirteen. It was a
Speaker 12: quick start for Michigan. First two possessions were both Donovan
Speaker 12: Edwards touchdown runs. They covered forty one and forty three yards.
Speaker 12: Michigan didn't get into the end zone again until the
Speaker 12: fourth quarter. Blake Corum scored, capping a seventy one yard drive,
Speaker 12: and later Corum scored again, coming after Mike Stanrsill's eighty
Speaker 12: one yard interception return. Washington star quarterback Michael Pennix junior
Speaker 12: twenty seven of fifty one did have two interceptions. Michigan
Speaker 12: goes fifteen to zero, wins the national title for the
Speaker 12: first time since nineteen ninety seven, and the question now
Speaker 12: is if Jim Harbar returns as coach. Our heads back
Speaker 12: to the NFL. The Washington Commanders looking for a new
Speaker 12: coach after they had the second worst record in the NFL.
Speaker 12: They've got new ownership and Ron Rivera fired after four
Speaker 12: years on the job. Carolina Panthers already knew they were
Speaker 12: looking for a new coach now at GM as well
Speaker 12: as the Panthers fired to the manager Scott Fitterer. Celtics
Speaker 12: got forty points from Jalen Brown but lost at Indiana
Speaker 12: one thirty three to one thirty one. The Pacers lost
Speaker 12: their star player Tyrese Haliburton a hamstring injuries, headed for
Speaker 12: an MP John Moran is headed for a season ending
Speaker 12: shoulder surgery. Memphisis star guard was suspended for the first
Speaker 12: twenty five games of the season and ends up only
Speaker 12: playing nine games on the year. Wizard's thirtieth loss of
Speaker 12: the year beaten by Oklahoma City one thirty six to
Speaker 12: one twenty eight. The Bruins lost at Colorado four to
Speaker 12: three in a shootout. John Stashedward Bloomberg Sports.
Speaker 11: From coast to coast, from New York to San Francisco,
Speaker 11: Boston to Washington, DC, nationwide on SIRIUSXAM, the Bloomberg Business app,
Speaker 11: and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 2: Good morning. I'm Nathan Hager. Boeing is working to get
Speaker 2: at seven thirty seven Max nine jets back in the
Speaker 2: air after the FAA ordered them temporarily grounded following last
Speaker 2: week's door panel blowout. But the investigation into the cash
Speaker 2: cow for Boeing is finding more installation issues maybe than
Speaker 2: just the ones on that Alaska airline's flight. For more,
Speaker 2: we're joined now by Bloomberg News Global Aviation head Benedict Campbell.
Speaker 2: Thanks for being here, Benedict. Get us caught up on
Speaker 2: the investigation so far.
Speaker 13: Good morning. So we heard from the NTSB again yesterday.
Speaker 13: They're holding daily press briefings to give the latest update.
Speaker 13: And what we heard yesterday is that indeed they are
Speaker 13: still focused on this particular Alaska aircraft, but they've said
Speaker 13: that they might well be looking more deeply at other
Speaker 13: aircraft broadly, more broadly than just the seven three seven
Speaker 13: Max nine. Right now, the focus remains very much on
Speaker 13: that door panel on that plug as they call it,
Speaker 13: that came flying out, and they're trying to determine what
Speaker 13: exactly caused that component to come loose. One thing that
Speaker 13: they did say was they are focused intensely on the
Speaker 13: bolts that are sort of fixing that particular component. And
Speaker 13: speaking of bolts, we have heard from United Air and
Speaker 13: from Alaska that they've found some loose bolts on their aircraft.
Speaker 13: So obviously that's sort of the area around which the
Speaker 13: investigation is focused right now.
Speaker 2: How unusual is it to see these signs of improper
Speaker 2: tightening on an aircraft like this? Is this part of
Speaker 2: the reason why we're getting these suggestions that the investigation
Speaker 2: could go beyond the Max nine.
Speaker 13: Absolutely, and this is obviously something you don't want to
Speaker 13: find on an aircraft, but sadly it's something that they
Speaker 13: have found, not just in this case, but also in
Speaker 13: previous sort of investigations where they looked at improper manufacturing.
Speaker 13: We had a misaligned drilling holes on some seven three
Speaker 13: sevens last year. Then we had some loose bolts in
Speaker 13: another part of a plane. So these defects appear to
Speaker 13: come up again and again, and you have to remember
Speaker 13: the max the seven three seven Max has a very
Speaker 13: sort of fragile reputation after these two crashes that happened
Speaker 13: almost five years ago. A lot of people still somewhat
Speaker 13: squeamish about that aircraft and an abbus not abbus. Boeing
Speaker 13: have managed to repair that reputation, but somewhat fragilely. And
Speaker 13: the question now is will that pull them back into
Speaker 13: a hole? How can they emerge from that? Those are
Speaker 13: a lot of things they're trying to work through right now.
Speaker 2: Yeah, it raises the question about whether Boeing could be
Speaker 2: running into a crisis of confidence with flyers. Is that
Speaker 2: the concern for Boeing, That is.
Speaker 13: Very much the concern. I mean, we've seen the crisis
Speaker 13: of confidence on the side of the investors. If you
Speaker 13: look at what happened with the stock yesterday took a
Speaker 13: deep tumble. Spirit Aerosystems, that's the company that makes the
Speaker 13: fuselage for the seven three seven is by an is
Speaker 13: by far Boeing's most important supplier. They also dropped quite
Speaker 13: sharply yesterday. So there is a real crisis in confidence
Speaker 13: for the time being. It's the focus is very much
Speaker 13: sort of on the investor side, on the financial side.
Speaker 13: But if this spreads into a bigger crisis, say the flyers,
Speaker 13: the flying public, and then the customers. Ultimately, that will
Speaker 13: obviously be something very hard for Boeing to get back from.
Speaker 13: This had been the year, or supposed to be the
Speaker 13: year of the great comeback of Boeing. They they've had
Speaker 13: a couple of difficult years, as I said, but they'd
Speaker 13: managed to get their manufacturing back in order. The orders
Speaker 13: and deliveries are back, They'd planned to really increase the
Speaker 13: output rate of the seven three seven. All of these
Speaker 13: things were sort of what lay ahead for them for
Speaker 13: this year. And right now it looks as if things
Speaker 13: will certainly slow down for them quite a bit. The FAA,
Speaker 13: which is the regulator in the US, they're saying, not
Speaker 13: so fast. We want to make sure this plane is
Speaker 13: ready to fly again before we can unground it, and
Speaker 13: Boeing has to sort of comply with that.
Speaker 2: Is this something that could put the relationship between Boeing
Speaker 2: and Spirit Aerosystems in jeopardy? I mean, where could the
Speaker 2: blame potentially lie for this? Got about a minute left.
Speaker 13: It's a difficult relationship that these two companies have. Spirit
Speaker 13: used to be part of Boeing. Then it will spun out,
Speaker 13: but they're still very much sort of entwined and they're
Speaker 13: locked in a slightly unhappy marriage here. They obviously Boeing
Speaker 13: needs to have very close quality controls at Spirit to
Speaker 13: make sure that the products that chipped over to Boeing
Speaker 13: meet their standards, and that's something that hasn't always been
Speaker 13: the case in the past. So Boeing really needs to
Speaker 13: tighten the screws, as it were, on Spirit and make
Speaker 13: sure that they have the right people there, they have
Speaker 13: the right controls. There's new management at that company. Ultimately
Speaker 13: the buck stops with Boeing. They need to have the
Speaker 13: final sign off on the plane. So sure, you can
Speaker 13: blame Spirit and point your finger as much as you
Speaker 13: want at them, but the plane is ultimately sold by Boeing,
Speaker 13: so they need to make sure that their network is
Speaker 13: up to snuff.
Speaker 2: This is Bloomberg Daybreak Today, your morning brief and the
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