Speaker 1: Hi, it's Carol and Tim's here too, and today we
Speaker 1: want to introduce you to the Bloomberg Daybreak podcast.
Speaker 2: We certainly do every day. Nathan Hager, Karen Moscow, and
Speaker 2: Amy Morris bring you a roundup of the top stories
Speaker 2: from Wall Street to Washington and around the world. It's
Speaker 2: all in the Daybreak podcast feed by six am each morning.
Speaker 1: And today, for our business week audience, we bring you
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Speaker 3: Good morning, I'm Nathan Hager.
Speaker 4: And I'm Karen Moscow. Here are the stories we're following today.
Speaker 3: We begin with the latest developments in the investigation into
Speaker 3: the door panel blowout on a Boeing seven thirty seven
Speaker 3: MAX nine. Bloomberg's John Tucker is here with the latest,
Speaker 3: John and Nathan.
Speaker 5: More and more of the focus is turning to bolts
Speaker 5: and whether they were properly tightened, as the NTSP tries
Speaker 5: to find answers to how that unused door panel blew
Speaker 5: off at Alaska Airlines Boeing seven thirty seven MAX nine
Speaker 5: over Portland, another airline, and says it's found loose poults.
Speaker 5: United confirms it found loose bolts after inspecting identical door
Speaker 5: plugs as the one that blew out on the Alaska plane.
Speaker 5: NTSB chairman Jennifer Hamendi, we are.
Speaker 6: Aware of the reports of that are coming back from
Speaker 6: the inspections from United and Alaska and Boeing. Our team
Speaker 6: is collecting that information and there will be some follow
Speaker 6: up from the inspections.
Speaker 5: It's unclear how many loose poults were found. The NTSB
Speaker 5: may now broaden the probe into other Max nine jets
Speaker 5: beyond the Alaska Airlines model on which the accident occurred.
Speaker 5: It intensified scrutiny of the manufacturing process that Boeing and
Speaker 5: its key supplier, Spirit Aerosystems, which makes the fuselage for
Speaker 5: the seven thirty seven Max. I'm John Tucker, Bloomberg Radio.
Speaker 4: All right, John, Thanks well. Another major story that we're
Speaker 4: following this morning involves a high stakes court hearing in Washington,
Speaker 4: d C. Lawyers for Donald Trumpel's spar with federal prosecutors
Speaker 4: over whether the former president is a uniform charge of
Speaker 4: trying to overturn the twenty twenty election results. Bloomberg's Amy
Speaker 4: Morris has more from Washington.
Speaker 7: Oral arguments are set for today before a three judge
Speaker 7: panel with the US Court of Appeals for the d
Speaker 7: C Circuit over whether Donald Trump is shielded from prosecution
Speaker 7: for his actions before and during the January sixth riot
Speaker 7: at the US Capitol. Now Trump said on social media
Speaker 7: he planned to attend, but he is not expected to
Speaker 7: address the court. The judges could hand down their ruling
Speaker 7: at any time after the hearing, and a ruling in
Speaker 7: favor of Trump could be a fatal blow to the
Speaker 7: Justice Department's efforts to try him. While either side has
Speaker 7: the right to appeal, neither the full DC Court nor
Speaker 7: the US Supreme Court are required to take the case,
Speaker 7: so this court's ruling could be the final word in Washington.
Speaker 7: Amy Morris Bloomberg Radio.
Speaker 3: Okay, Amy, thank you will staying in Washington. Bipartisan anger
Speaker 3: is building against Defense Secretary Lloyd Austin. We get that
Speaker 3: story from Bloomberg's Dan Schwartzman.
Speaker 8: Politicians on both sides of the isle are demanding answers
Speaker 8: as to why Defense Secretary Lloyd Austin failed let anyone
Speaker 8: know he was hospitalized done New Year's Day. The retired
Speaker 8: General didn't even let the White House know he was
Speaker 8: at Walter Reed Medical Center for four days, depending on
Speaker 8: a day after that, Austin was hospitalized, but did not
Speaker 8: tell the White House, Congress, or even the deputy Defense
Speaker 8: Secretary for several days. Republican Senator Susan Collins Remain says
Speaker 8: it's quote inexplicable that the Secretary's condition remains shrouded in secrecy,
Speaker 8: while Massachusetts Democrat Seth Moulden says this astounding that the
Speaker 8: President in Austin's own deputy did know he was in
Speaker 8: the hospital. According to White House spokesman John Kirby, President
Speaker 8: Biden has no plans to replace Austin. Dan Schwartzman Bloomberg Radio, all.
Speaker 4: Right, Dan, thanks now to the latest developments in the
Speaker 4: Middle East. Secretary of State Anthony Blencoln says, who the
Speaker 4: militants will face consequences if they continue to attack ships
Speaker 4: in the Red Sea, he told reporters, and more violence
Speaker 4: will be detrimental for the region.
Speaker 1: It's clearly not.
Speaker 3: In the interest to anyone Israel Lebanon has Bola for
Speaker 3: that matter.
Speaker 9: To see to see.
Speaker 3: This escalate and to see an actual conflict the Israelis
Speaker 3: have been very clear with us that they want to
Speaker 3: find a diplomatic way forward.
Speaker 4: Secretary of State Anthony Blinken meets with Israel's leader Benjaminte
Speaker 4: and Yahoo later today.
Speaker 3: Let's turn back to markets now, Karen, As you mentioned,
Speaker 3: futures are lower following yesterday's rally on Wall Street that
Speaker 3: saw the Nasdaq surge more than two percent. In Asia,
Speaker 3: the Knee Ky in Japan closed at its highest level
Speaker 3: in thirty four years.
Speaker 4: Me and Mole Nathan, former bond king Bill Gross is
Speaker 4: signaling he is now steering clear of treasuries. In a
Speaker 4: post on X grossad ten year treasury yields at four
Speaker 4: percent are overvalued. Gross made millions late last year after
Speaker 4: a big bet the Fed would pivot toward interest rate
Speaker 4: cuts for twenty twenty four.
Speaker 10: Well.
Speaker 3: Karen, the president's top economic advisor, says the White House's
Speaker 3: work is not done when it comes to lowering prices
Speaker 3: for American consumers. Lyyle Brainerd spoke with Joe Wisenthal and
Speaker 3: Tracy Alloway on the Bloomberg Godlots podcast.
Speaker 10: Some prices have not come down, and we're fighting pretty
Speaker 10: hard to get those prices to come down. One area
Speaker 10: that really is difficult for Americans is healthcare?
Speaker 3: White House Economic Advisor Lyle Brainerd ads the administration will
Speaker 3: use its position to continue calling out corporations who aren't
Speaker 3: passing along cost savings to consumers. For the full conversation,
Speaker 3: download the latest edition of Bloomberg Odd Lots that's available
Speaker 3: everywhere you get your podcasts. And Shares of Nvidia closed
Speaker 3: at a record high. The company's chip technology dominates in
Speaker 3: data centers used to create artificial intelligence software. Now, in
Speaker 3: Vidia's announced new products to help the personal computer industry
Speaker 3: lower consumers with AIPCS.
Speaker 4: Another chip maker in the spotlight this morning, Nathan Samsung
Speaker 4: Electronics is posted at six straight quarter of declining operating profit.
Speaker 4: The results underscore how demand for smartphones and the memory
Speaker 4: chips remain sluggish given economic uncertainty, and shares.
Speaker 3: Of Match are up more than eight percent in early trading,
Speaker 3: that says The Wall Street Journal reports Elliott Investment Management
Speaker 3: has built a stake of about a billion dollars in
Speaker 3: the dating app company.
Speaker 4: Time now for a look at some of the other
Speaker 4: stories making news around the world, and from that, we're
Speaker 4: joined by Bloomberg's Amy Morris. Amy, Good morning, Good.
Speaker 7: Morning, Karen, Homeland Security Secretary Alejandro Miworcis was an eagle
Speaker 7: pass taxes to meet with elected leaders and border patrol
Speaker 7: agents at the southern US border. Now, he says it's
Speaker 7: too early to tell if the significant drop in border
Speaker 7: crossings over the past week is related to the holiday
Speaker 7: season or stepped up enforcement operations in Mexico.
Speaker 6: Our immigration system is outdated and broken and has been
Speaker 6: in need of reform for literally decades.
Speaker 11: On this, everyone agrees.
Speaker 7: Arizona Senator Kirsten Cinema, an Independent who has been central
Speaker 7: in negotiations, says she's not sure whether text is going
Speaker 7: to be available, but she hopes there will be something
Speaker 7: to present this week. House Republicans are pushing to impeach
Speaker 7: ma Orcis. Senate Republicans want him to help cut a
Speaker 7: border security deal. President Biden meanwhile moving to win back
Speaker 7: black voters. Bloomberg's Nancy Lyons has more. On his trip
Speaker 7: to South Carol'm not.
Speaker 12: President Biden delivered remarks at Mother Emmanuel Ame Church in Charleston,
Speaker 12: South Carolina, where white supremacist killed nine people in twenty fifteen.
Speaker 12: Biden says our country must deal with racism.
Speaker 2: It is is a poison throughout our history, driptestination apart,
Speaker 2: he says no twice in America, not today tomorrow.
Speaker 12: Ever, Biden's favorability among black voters in seven swing states
Speaker 12: has slipped seven percentage points since October to sixty one
Speaker 12: percent in December. That's according to a Bloomberg News Morning
Speaker 12: Consult poll in Washington. Nancy lyons Bloomberg Radio.
Speaker 7: Now, former President Trump wants his supporters to give him
Speaker 7: a definitive win in Iowa, even with a commanding leading
Speaker 7: the polls with less than a week before the caucuses.
Speaker 7: Trump's stressed turnout, the.
Speaker 13: People of this state are going to cast the most
Speaker 13: important vote of your entire lives.
Speaker 11: I believe that too very much. I used to say
Speaker 11: that twenty sixteen.
Speaker 13: And I believed it then, and now I believe this
Speaker 13: is even much more important.
Speaker 7: The Trump campaign believes a decisive iow of victory would
Speaker 7: put pressure on his GOP rivals to drop out. Florida
Speaker 7: Governor Ron DeSantis and former South Carolina Governor Nikki Haley
Speaker 7: have failed to gain much significant ground in the Iowa
Speaker 7: polls against Trump. Next up New Hampshire January twenty third.
Speaker 7: That's where Nicki Haley has been gaining more momentum while
Speaker 7: still trailing Trump. Global news twenty four hours a day
Speaker 7: and whenever you want it with Bloomberg News Now. I'm
Speaker 7: Amy Morris and this is Bloomberg Karen.
Speaker 4: Right, Nimi. Thank you. We to bring you news throughout
Speaker 4: the day here on Bloomberg Radio. But now you can
Speaker 4: get the latest news on demand whenever you want it.
Speaker 4: Subscribe to Bloomberg News Now to get the latest headlines
Speaker 4: of the click of a button, get informed on your schedule.
Speaker 4: You can listen and subscribe to Bloomberg News Now on
Speaker 4: the Bloomberg Business app, Bloomberg dot Com plus apples, Spotify,
Speaker 4: and anywhere else you get your podcasts. Time now for
Speaker 4: the Bloomberg Sports Update. Here's John stash Hour John.
Speaker 13: Darren the Michigan Wolverines national champions in college footwaally in Houston.
Speaker 13: They beat Washington thirty four to thirteen. It was a
Speaker 13: quick start for Michigan. First two possessions were both Donovan
Speaker 13: Edwards touchdown runs.
Speaker 11: They covered forty one and forty three yards.
Speaker 13: Michigan didn't get into the end zone again until the
Speaker 13: fourth quarter.
Speaker 11: Blake Krum scored.
Speaker 13: Capping a seventy one yard drive and later Corum scored again,
Speaker 13: coming after Mike Stanrsill's eighty one yard interception return. Washington
Speaker 13: star quarterback Michael Pennix junior twenty seven of fifty one,
Speaker 13: did have two interceptions. Michigan goes fifteen to zero, wins
Speaker 13: the national title for the first time since nineteen ninety seven,
Speaker 13: and the question now is if Jim Harbar returns as coach.
Speaker 11: Our heads back to the NFL.
Speaker 13: The Washington Commanders looking for a new coach after they
Speaker 13: had the second worst record in the NFL. They've got
Speaker 13: new ownership and Ron Rivera fired after four years on
Speaker 13: the job. Carolina Panthers already knew they were looking for
Speaker 13: a new coach now at GM as well as the
Speaker 13: Panthers fired to the manager Scott Fitterer.
Speaker 11: Celtics got forty.
Speaker 13: Points from Jalen Brown but lost at Indiana won thirty
Speaker 13: three one thirty one. The Pacers lost their star player
Speaker 13: Tyrese Halliburton a hamstring injuries, headed for an MRI John
Speaker 13: Moran is headed for a season ending shoulder surgery. Memphisis
Speaker 13: star guard was suspended for the first twenty five games
Speaker 13: of the season and ends up only playing nine games.
Speaker 13: On the year Wizard's thirtieth loss of the year, beaten
Speaker 13: by Oklahoma City one thirty six to one twenty eight.
Speaker 13: The Bruins lost at Colorado four to three in a shootout.
Speaker 11: John Stashedward Bloomberg Sports.
Speaker 14: From coast to coast, from New York to San Francisco,
Speaker 14: Boston to Washington, DC, nationwide on SIRISXAM, the Bloomberg Business
Speaker 14: Appen Bloomberg dot Com.
Speaker 11: This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.
Speaker 3: Boeing is working to get at seven thirty seven Max
Speaker 3: nine jets back in the air after the FAA ordered
Speaker 3: them temporarily grounded following last week's door panel blowout. But
Speaker 3: the investigation into the cash cow for Boeing is finding
Speaker 3: more installation issues, maybe than just the ones on that
Speaker 3: Alaska Airlines spore from where we're joined now by Bloomberg
Speaker 3: News Global Aviation head Benedict Cammell. Thanks for being here, Benedict.
Speaker 3: Get us caught up on the investigation so far.
Speaker 9: Good morning. So we heard from the NTSB again yesterday.
Speaker 9: They're holding daily press briefings to give the latest update,
Speaker 9: and what we heard yesterday is that indeed they are
Speaker 9: still focused on this particular Alaska aircraft, but they've said
Speaker 9: that they might well be looking more deeply at other
Speaker 9: aircraft broadly, more broadly than just the seven three to
Speaker 9: seven Max nine. Right now, the focus remains very much
Speaker 9: on that door panel, on that plug as they call it,
Speaker 9: that came flying out, and they're trying to determine what
Speaker 9: exactly caused that component to come loose. One thing that
Speaker 9: they did say was they are focused intensely on the
Speaker 9: bolts that are sort of fixing that particular component. And
Speaker 9: speaking of bolts, we have heard from United Air and
Speaker 9: from Alaska that they've found some loose bolts on their aircraft,
Speaker 9: So obviously that's sort of the area around which the
Speaker 9: investigation has focused right now.
Speaker 3: How unusual is it to see these signs of improper
Speaker 3: tightening on an aircraft like this? Is this part of
Speaker 3: the reason why we're getting these suggestions that the investigation
Speaker 3: could go beyond the Max nine.
Speaker 9: Absolutely, and this is obviously something you don't want to
Speaker 9: find on an aircraft, but sadly it's something that they
Speaker 9: have found, not just in this case, but also in
Speaker 9: previous sort of investigations where they looked at improper manufacturing.
Speaker 9: We had a misaligned drilling holes on some seven three
Speaker 9: sevens last year. Then we had some loose bolts in
Speaker 9: another part of a plane. So these defects appear to
Speaker 9: come up again and again. And you have to remember
Speaker 9: the Max, the seven three seven Max has a very
Speaker 9: sort of fragile reputation after these two crashes that happened
Speaker 9: almost five years ago.
Speaker 11: A lot of people.
Speaker 9: Still somewhat squeamish about that aircraft and an abbus not abus.
Speaker 9: Boeing have managed to repair that reputation, but somewhat fragilely.
Speaker 9: And the question now is will that pull them back
Speaker 9: into a hole? How can they emerge from that? Those
Speaker 9: are a lot of things they're trying to work through
Speaker 9: right now.
Speaker 3: Yeah, it raises the question about whether Boeing could be
Speaker 3: running into a crisis of confidence with flyers. Is that
Speaker 3: the concern for Boeing, That.
Speaker 9: Is very much the concern. I mean, we've seen the
Speaker 9: crisis of confidence on the side of the investors. If
Speaker 9: you look at what happened with the stock yesterday took
Speaker 9: a deep tumble. Spirit Aerosystems, that's the company that makes
Speaker 9: the fuselage for the seven three seven is by an
Speaker 9: is by far Boeing's most important supplier. They also dropped
Speaker 9: quite sharply yesterday, so there is a real crisis in confidence.
Speaker 9: For the time being, it's the focus is very much
Speaker 9: sort of on the investor side, on the financial side.
Speaker 9: But if this spreads into a bigger crisis, say the flyers,
Speaker 9: the flying public, and then the customers ultimately, that will
Speaker 9: obviously be something very hard for Boeing to get back from.
Speaker 9: This had been the year, or supposed to be the
Speaker 9: year of the great comeback of Boeing. They they've had
Speaker 9: a couple of difficult years, as I said, but they'd
Speaker 9: managed to get their manufacturing back in order. The orders
Speaker 9: and deliveries are back, they'd planned to really increase the
Speaker 9: output rate of the seven three seven. All of these
Speaker 9: things were sort of what lay ahead for them for
Speaker 9: this year, and right now it looks as if things
Speaker 9: will certainly slow down for them quite a bit. The FAA,
Speaker 9: which is the regulator in the US, they're saying, not
Speaker 9: so fast. We want to make sure this plane is
Speaker 9: ready to fly again before we can unground it, and
Speaker 9: Boeing has to sort of comply with that.
Speaker 3: Is this something that could put the relationship between Boeing
Speaker 3: and Spirit Aerosystems in jeopardy. I mean, where could the
Speaker 3: blame potentially lie for this? Got about a minute left.
Speaker 9: It's a difficult relationship that these two companies have. Spirit
Speaker 9: used to be part of Boeing. Then it will spun out,
Speaker 9: but they're still very much sort of entwined, and they're
Speaker 9: locked in a slightly unhappy marriage here. They obviously Boeing
Speaker 9: needs to have very close quality controls at Spirit to
Speaker 9: make sure that the products that get shipped over to
Speaker 9: Boeing meet their standards, and that's something that hasn't always
Speaker 9: been the case in the past. So Boeing really needs
Speaker 9: to tighten the screws, as it were, on Spirit and
Speaker 9: make sure that they have the right people there, they
Speaker 9: have the right controls. There's new management at that company.
Speaker 9: Ultimately the buck stops with Boeing. They need to have
Speaker 9: the final sign off on the plane. So sure, you
Speaker 9: can blame Spirit and point your finger as much as
Speaker 9: you want at them, but the plane is ultimately sold
Speaker 9: by Boeing, so they need to make sure that their
Speaker 9: network is up to snuff.
Speaker 3: This is Bloomberg Daybreak Today, your morning brief, and the
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