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