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 again in the Middle East. That's after Iran
Speaker 1: urged the Biden administration to use diplomacy as the US
Speaker 1: ways how to retaliate against a deadly attack at a
Speaker 1: military base in Jordan. Bloomberg's Amy Morris with the details
Speaker 1: from Washington.
Speaker 3: Iran's foreign minister says active diplomacy is underway to find
Speaker 3: a solution to the war in Gaza and the regional fallout.
Speaker 3: But three US soldiers were killed and dozens more were
Speaker 3: wounded in that drone attack by in Iran backed militia,
Speaker 3: and now there are concerns the US could be drawn
Speaker 3: into a war in the Middle East. Secretary of State
Speaker 3: Anthony Blincoln called out those rebel groups.
Speaker 4: They may say that they're doing that somehow in response
Speaker 4: to Gaza, but every action they're taking really is to
Speaker 4: perpetuate the conflict and to expand it.
Speaker 3: President Biden says there will be a response. Iran denies
Speaker 3: involvement in the strike in Washington, Amy Morris Blomberg Radio, All.
Speaker 2: Right, Amy, thank you well. In other developments in the
Speaker 2: Middle East, this morning, Israeli intelligence is claiming up to
Speaker 2: ten percent of the UN relief agencies twelve thousand workers
Speaker 2: in Gaza were members of Hamas and Palestinian Islamic Jihad.
Speaker 2: The United Nations fired several agency staffers last week in
Speaker 2: response to Israel's initial claim about their militant ties. They
Speaker 2: yet more from Bloomberg News Middle East Breaking News editor
Speaker 2: Dana Krash we.
Speaker 5: Did have a story on the terminal looking at some
Speaker 5: documents that Israel had shared with the US that ten
Speaker 5: percent of the onorwa's staff were involved in the October
Speaker 5: seven attack by Hamas. Now, the UN agency doesn't only
Speaker 5: eight Palestinians in Gaza, but it also refugees scattered in
Speaker 5: the region in places like Clebanon. So cutting funding would
Speaker 5: have an impact on the livelihood of Palestinians inside Gaza
Speaker 5: and the refugees elsewhere.
Speaker 2: Bloomberg's Dana Krajh says the document did not name any
Speaker 2: of the suspects and could not be independently verified.
Speaker 5: Well.
Speaker 1: Karen Let's turn out to a major technological development back
Speaker 1: here in the US. Elon Musk says the first human
Speaker 1: patient has received a brain implant from his Neuralink startup.
Speaker 1: In Bloomberg's Ed Baxter has the story.
Speaker 4: Musk says this is a significant step forward for the company.
Speaker 4: He says it aims to one day let humans control
Speaker 4: computers with their minds. He's posted that the patient is
Speaker 4: recovering well and that the initial results of the procedure
Speaker 4: are promising. The first goal for Neuralink is to help
Speaker 4: people with traumatic injuries to operate computers with only their thoughts,
Speaker 4: and to help patients with conditions from cervical spinal cord
Speaker 4: injury to als. It does have FDA clearance for the trials.
Speaker 4: Ed Baxter Bloomberg Radio, all.
Speaker 2: Right, Ed, thanks, So he turned to the markets. Now
Speaker 2: in stocks enter the day, coming off yet another record
Speaker 2: high earnings will once again be the focus, with thirty
Speaker 2: companies in the S and P five hundred reporting today,
Speaker 2: high tech will be a major theme and for where
Speaker 2: we're joined by Bloomberg's John Tucker, John.
Speaker 6: And Karen, the first of the Magnificence seven texts open
Speaker 6: their books with Google parent Alphabet and Microsoft both are
Speaker 6: likely to post record revenue. An A rag Rana with
Speaker 6: Bloomberg Intelligence is the big driver for Microsoft, which just
Speaker 6: hit a three trillion dollar market cap is the cloud
Speaker 6: infrastructure business because that intersects with the big players in
Speaker 6: artificial intelligence.
Speaker 7: Opening Eyes back end is Microsoft's cloud infrastructure, so you
Speaker 7: use a lot more Jack GPT.
Speaker 4: Microsoft makes more money off of it, So that's the
Speaker 4: way you want to think about it.
Speaker 6: The investors will also be looking to hear more about
Speaker 6: Alphabet's Gemini, the company's latest push in the AI, as
Speaker 6: well as an update on the state of the advertising market.
Speaker 6: Both companies are porty after the close. I'm John Tucker,
Speaker 6: Bloomberg Radio.
Speaker 1: All right, John, Thanks. It's also a busy day for
Speaker 1: earnings in Europe, and one company across the pond is
Speaker 1: disappointing investors. Shares of Diagio are down more than three percent.
Speaker 1: For the explanation, we go to London and check in
Speaker 1: with Bloomberg's Critty Goodda.
Speaker 8: Critty Nathanrop an adjusting operating profit from the world's largest
Speaker 8: makers of whiskey and tequila, Tashu, coming out with yet
Speaker 8: another set of weak numbers after issuing a profit warning
Speaker 8: back in November to slow down North American sales, compounding
Speaker 8: with a collapse in demand from the Latin American and
Speaker 8: Caribbean region. That means the company is staring down the
Speaker 8: barrel of a price high. Ceo Deba cruising that the
Speaker 8: focus is still on premiisation of products even as consumers
Speaker 8: switch to cheaper alternatives. In the meantime, Tequila sales slowing
Speaker 8: down in the United States, Theaggio's biggest market, something the
Speaker 8: company is looking to expand in Europe. But the report
Speaker 8: comes in start contrast to blockbuster numbers out of the
Speaker 8: spears business here in lvmh and Remi contro creti Gupta
Speaker 8: Bloomberg News, all.
Speaker 2: Right, CRITI thank you. In Asia, Hong Kong stocks film
Speaker 2: more than two percent. The impact of China, Evergrand Groups
Speaker 2: liquidation order has had ripple effects. We get more from
Speaker 2: Bloomberg's Justina Lee in Singapore.
Speaker 9: Given that a big focus of this property crisis is
Speaker 9: the are these like pre sold homes that people bought
Speaker 9: kind of expecting for them to be delivered in a
Speaker 9: few years. I think that's definitely going to hurt confidence
Speaker 9: and as part of the market in particular, and that
Speaker 9: is going to further kind of counteract all these moves
Speaker 9: the government has been making in order to stabilize confidence.
Speaker 2: Bloomberg Justina Elise As China's benchmark government bond yield fell
Speaker 2: to its lowest in nearly twenty two years as mounting
Speaker 2: expectations for further monetary easing increased.
Speaker 1: Back to corporate news in the US, Karen IBM wants
Speaker 1: its workers back in the office. In fact, the company
Speaker 1: delivered an ultimatum to managers who are still working remotely
Speaker 1: move near an office or leave the company. According to
Speaker 1: a memo seen by Bloomberg, IBM workers must report to
Speaker 1: an office at least three days a week, regardless of
Speaker 1: current work location status.
Speaker 2: Well, job cauds are coming at a major airline, Nathan
Speaker 2: American Airline says it all layoff six hundred and fifty
Speaker 2: six employees who help passengers with lost luggage and other
Speaker 2: travel problems. Those jobs will be consolidated to other teams.
Speaker 2: It's time now for a look at some of the
Speaker 2: other stories making news around the world, and for that
Speaker 2: we're joined by Bloomberg's Amy Morris. Say me, good morning, Good.
Speaker 1: Morning, Kieren.
Speaker 3: We do expect to learn more about the effort by
Speaker 3: House Republicans to impeach Homeland Security Secretary Alejandro Miyorcis in
Speaker 3: a hearing this morning at the Capitol, Republican Congressman Mike McCall,
Speaker 3: who is chairing today's hearing, says Majorcus needs to pay
Speaker 3: for the crisis at the border.
Speaker 6: Nobody deserves it more than this man.
Speaker 4: I call him the architect of destruction and chaos.
Speaker 10: He has created this crisis and he knows better.
Speaker 3: Lawmakers are expected to go over two articles of impeachment,
Speaker 3: Democrats say the efforts of political sham. The Biden administration
Speaker 3: is calling on House Republicans to get on board with
Speaker 3: the bipartisan border deal expected to come out of the Senate.
Speaker 3: Press Secretary Karine Jean Pierre.
Speaker 11: The byperson agreement that they're coming forward with are things
Speaker 11: that House Republicans have said, and Republicans more broadly said
Speaker 11: they wanted. They have said over and over again, this
Speaker 11: is what they want to see.
Speaker 3: This comes after House Speaker Mike Johnson laid last week
Speaker 3: says the deal is likely dead on arrival in his
Speaker 3: chamber as it doesn't go far enough. US officials believe
Speaker 3: the drone attack at a US base in Jordan over
Speaker 3: the weekend that killed three Americans may have been a
Speaker 3: case of mistaken identity. Bloomberg's Nancy Lions explains.
Speaker 7: US officials say their preliminary investigation is discovered. The drone
Speaker 7: that carried out the attack was apparently confused with an
Speaker 7: American drone that was returning to the base. That's why
Speaker 7: it was not shot down. And Deputy Press Secretary for
Speaker 7: the Pentagon, Sabrina Singh says they're also trying to determine
Speaker 7: who was behind the attack. We know these groups are
Speaker 7: supported by Iran and therefore they do have their fingerprints
Speaker 7: on this, but I can't tell you more in terms
Speaker 7: of who directed the attack. All three soldiers lost were
Speaker 7: based out of Fort Moore, Georgia. US officials say they
Speaker 7: will hold those responsible to account. In Washington, Nancy Lyons
Speaker 7: Bloomberg Radio.
Speaker 3: Florida Governor Ronda Santis is calling for constitutional reforms in
Speaker 3: Washington after he got out of the presidential race.
Speaker 12: We have it in Flora. You know what.
Speaker 4: It works because people have a limited amount of time.
Speaker 3: Their incentives are to make a difference, not to stay
Speaker 3: in office for thirty or forty years. Dessenttis calling for
Speaker 3: a balanced budget, giving the president a line item veto,
Speaker 3: and term limits for all members of Congress. Global News
Speaker 3: twenty four hours a day and whenever you want it.
Speaker 3: With Bloomberg News Now. I'm Amy Morrison. This is Bloomberg Karen.
Speaker 2: All right, Amy, thank you. We do bring you news
Speaker 2: throughout the day right here on Bloomberg Radio. But now
Speaker 2: you can get the latest news on demand whenever you
Speaker 2: want it. Just subscribe to Bloomberg News Now and you
Speaker 2: can get the latest headlines right to the click of
Speaker 2: a button. Get informed on your schedule. You can listen
Speaker 2: and subscribe to Bloomberg News Now on the Bloomberg Business app,
Speaker 2: Bloomberg dot Com plus apples, Spotify, and anywhere else you
Speaker 2: get your podcasts. Time now for the Bloomberg Sports Update
Speaker 2: with John stash Hour.
Speaker 10: John here, I'm busy tonight in the NBA, a twelve
Speaker 10: game swait including the top two teams in the West
Speaker 10: meeting in Oklahoma City, Minnesota won one oh seven, one
Speaker 10: oh one, and the Timberwolves have a one game lead.
Speaker 10: Lakers were in Houston. There's some history between Lebron James
Speaker 10: and the Rockets Dylan Brooks, and in the second half,
Speaker 10: Brooks hit Lebron in the face. Anthony Davis said later
Speaker 10: he should have been kicked out of the game. The
Speaker 10: Rockets were up by thirty at one point. They beat
Speaker 10: the Lakers one thirty five till one nineteen. Top Rivers
Speaker 10: first game on the bench from Milwaukee. The Bucks lost
Speaker 10: at Denver one thirteen, one oh seven of the Kola
Speaker 10: Yokud scored twenty five.
Speaker 6: He had a triple double.
Speaker 10: Phoenix won in Miami one eighteen to one oh five
Speaker 10: that he had now lost seven to row there just
Speaker 10: a game over five hundred. Celtics found themselves down nine
Speaker 10: in the first quarter, came back beating New Orleans one
Speaker 10: eighteen to one twelve. Jason Tatum twenty eight points, ten rebounds,
Speaker 10: eight assists. Wizards was just their ninth win of the
Speaker 10: season one eighteen, one thirteen at San Antonio, the Sprus
Speaker 10: only won ten. College Joads Dukes won three straight eleven
Speaker 10: of the last twelve, now seventh of the nation. Who
Speaker 10: Devil's one of Virginia Techs seventy seven sixty seven, Houston
Speaker 10: ranked fourth, needed overtime one at Texas seventy six seventy two.
Speaker 10: Jamal Seed scored twenty five. Jeeves and forty nine ers
Speaker 10: getting ready for Super Bowl fifty eight in Las Vegas,
Speaker 10: both had tough stretches during the regular season, the Niners
Speaker 10: had a three game losing streaking in October, though are
Speaker 10: fourteen and two. Outside of that that, Chiefs had an
Speaker 10: eight game stretcher, they went just three and five. Obviously,
Speaker 10: have turned things around with three playoff wins. John stash
Speaker 10: Ellen Bloomberg.
Speaker 12: Sports from coast to coast, from New York to San Francisco,
Speaker 12: Boston to Washington, DC, nationwide on Syrias Exam the Bloomberg
Speaker 12: Business app in Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: Good morning, I'm Nathan Hager. The White House continues to
Speaker 1: weigh its response to the drone attack that killed three
Speaker 1: US soldiers over the weekend in Jordan, but President Biden
Speaker 1: is trying to avoid a direct confrontation with Iran, the
Speaker 1: country that backs the militant group blamed for that strike.
Speaker 1: For the latest spear, joined by Roslind Matheson, Bloomberg's news
Speaker 1: director for Europe, the Middle East and Africa, Ros, good morning.
Speaker 1: Whatever the options are, it doesn't sound like they are
Speaker 1: easy for this White House. What could the potential options be?
Speaker 13: Well, it is, as you say, not easy at all.
Speaker 13: It's a bit like weighing a scale, because you need
Speaker 13: to have a response that sort of sends a strong
Speaker 13: message from the US but doesn't tip things over in
Speaker 13: terms of a full scale conflict potentially with Iran. So
Speaker 13: the options range from the ultimate one, which is hitting
Speaker 13: Iran directly a site in Iran directly by the US.
Speaker 13: That's not something that's happened in quite some time, to
Speaker 13: retaliating in other ways, which might be attacking Iranian assets
Speaker 13: in a place like Syria or in Iraq or somewhere else.
Speaker 13: Of course, they've already been conducting air strikes on the
Speaker 13: Huthi militants in Yemen, also backed by Iran, so just
Speaker 13: doing a repeat of that probably doesn't send that stepped
Speaker 13: up message. Or maybe you know, Israel has sort of
Speaker 13: made noises for quite some time about their desire potentially
Speaker 13: to hit Iran themselves, maybe the US gives them a
Speaker 13: pass to do so. So there's a whole range of
Speaker 13: things that are potentially on the table. But again, the
Speaker 13: end calculations, you say, is finding that response that is
Speaker 13: a step up from what they've been doing so far,
Speaker 13: but doesn't lead Aroun to do something even bigger in response.
Speaker 1: Now, in response, the Foreign Minister of Iran has gone
Speaker 1: on social media, the X platform, saying that the White
Speaker 1: House knows full well the only solution to resolving the
Speaker 1: crisis in the Middle East is political pushing diplomacy as
Speaker 1: an option. But I mean, that's got to be a
Speaker 1: tough cell, given that the US sees Iran behind so
Speaker 1: many of the militant groups in the Middle East, not
Speaker 1: the least of which is Hamas and Gaza.
Speaker 13: What's interesting seeing the Iranian response in recent days, because,
Speaker 13: for start, they sort of distanced themselves from this drone
Speaker 13: attack on the US troops in Jordan. I'm saying that
Speaker 13: was not something that they had ordered and in a
Speaker 13: way down playing their ability to give instructions to these
Speaker 13: proxies operating in these places. Perhaps that's deliberate, Perhaps there's
Speaker 13: some reality in that, and that's that Iran doesn't control
Speaker 13: these proxies as much as we think, and perhaps they
Speaker 13: did act on their own regard. But certainly there's been
Speaker 13: a bit of an effort, it seems, by Iran to
Speaker 13: put some space between itself and this attack on US soldiers,
Speaker 13: and as you say, sort of talk about diplomatic overtures
Speaker 13: and measures. We do know there have been back channels
Speaker 13: continuing between the US and Iran throughout. That's been acknowledged,
Speaker 13: certainly by the US. Also, we know they're passing messages
Speaker 13: to each other, so at least those lines of communication
Speaker 13: remain open. But as you say, at this point, given
Speaker 13: what happened in Jordan, the US will feel compelled in
Speaker 13: some way to respond.
Speaker 1: Now, I think the closest I've heard to the US
Speaker 1: blaming Iran for this attack is saying that Tehran has
Speaker 1: its fingerprints on the Jordan's strike. Does that point potentially
Speaker 1: to how the US could respond to this?
Speaker 13: It does a bit. As you say, they're all being
Speaker 13: very very careful with language at the moment, including the US.
Speaker 13: So you can see that from what we've been hearing
Speaker 13: from the White House overnight, again both publicly and what
Speaker 13: we know is happening in their conversations privately. But the
Speaker 13: end result is simply that the US is going to
Speaker 13: probably have to find some way to respond. The pressure
Speaker 13: on the US President Joe Biden to do something is enormous,
Speaker 13: not just from his own ranks, but also from Republicans
Speaker 13: in the US, certainly some conservative quarters who are saying
Speaker 13: he needs to hit Tehran outright. So there's public pressure
Speaker 13: on him to do something and of course to hit
Speaker 13: that right note in terms of the response. But least
Speaker 13: of all, the US president does not want to be
Speaker 13: pulling the US into a full conflict in the Middle
Speaker 13: East in an election year.
Speaker 1: And on the other side of the coin, I'd have
Speaker 1: to think the president is facing pressure as well not
Speaker 1: to royal the global economy because of the kind of
Speaker 1: ripple effect that a direct conference whether I ran could have.
Speaker 13: Well, that's right, and we've already seen the impact of
Speaker 13: the disruption for some months now to shipping in the
Speaker 13: Red Sea because of the hoothy attacks on shipping and
Speaker 13: the longer routes that ships are having to take. We're
Speaker 13: seeing that impact some of the global supply chain for produce,
Speaker 13: for livestock, for parts for cars and so on, and
Speaker 13: also for oil and gas. I mean, we're helped at
Speaker 13: the moment by the fact that demand for oil has
Speaker 13: been on a downtech. Our gas supplies plentiful in Europe,
Speaker 13: So those disruptions are not feeding significantly into the market
Speaker 13: or the real economy at the moment. But if you
Speaker 13: talk about a full conflict with the Ruan, then you're
Speaker 13: talking about major disruption to global supply, particularly again of
Speaker 13: oil and gas, and certainly a knock on effect to
Speaker 13: the global economy at that point. And that's something the
Speaker 13: US President is very attuned to. A this is not
Speaker 13: a moment the economy globally can afford that, and also
Speaker 13: politically at home, can he afford that.
Speaker 1: This is Bloomberg Daybreak Today morning brief on the stories
Speaker 1: making news from Wall Street to Washington and beyond.
Speaker 2: Look for us on your podcast feed at six am
Speaker 2: Eastern each morning, on Apple, Spotify, and anywhere else you
Speaker 2: get your podcasts.
Speaker 1: You can also listen live each morning starting at five
Speaker 1: am Wall Street time on Bloomberg eleven three to zero
Speaker 1: in New York, Bloomberg ninety nine to one in Washington,
Speaker 1: Bloomberg one oh six to one in Boston, and Bloomberg
Speaker 1: ninety sixty in San Francisco.
Speaker 2: Our flagship New York station is also available on your
Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus.
Speaker 1: Listen coast to coast on the Bloomberg Business app, SERIUSXM,
Speaker 1: the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan
Speaker 1: Hager and I'm Karen Moscow.
Speaker 2: Join us again. Tomorrow morning for all the news you
Speaker 2: need to start your day right here on Bloomberg Daybreak.
Speaker 6: He then