Fire Scarred LA Braces for More Wind; DOJ Trump Election Case Report Released

Published Jan 14, 2025, 10:32 AM

On today's podcast:

1) Fire-Scarred Los Angeles Braces for More Extreme Wind

2) DOJ Report Says Trump Would Have Been Convicted in Election Case

3) China Weighs Sale of TikTok US to Musk as a Possible Option

Bloomberg Audio Studios, Podcasts, radio News.

Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.

Karen, we begin well with the latest on the wildfires in Los Angeles. The death toll remains at twenty four, with at least three active fires still raging across the area. Another round of dangerous weather is in the forecast today for wind gusts as high as fifty miles an hour. Los Angeles County Deputy Fire Chief Robert Harris says people need to be ready.

Severe weather conditions will continue through Wednesday. Please be assured that the Los Angeles County Fire Department is prepared and we are anticipating winds and humidity and low moisture which will be a threat to the Los Angeles County area.

Deputy Fire Chief Robert Harris says that threat extends north to Ventura County as well. At the White House, President Biden is looking ahead to the recovery.

To cover.

The costs over the next one hundred and eighty days for making my firefront.

Overtime, pay you breath and rumal temporary shelters.

It's going to cost tens of billions of dollars.

The presidents spoke at a White House briefing. Wells Fargo and Goldman Sachs estimate the insured losses alone could top thirty billion dollars.

Meanwhile, Nathan officials are still looking into what could have caused these fires. LA County Sheriff Robert Luna says they're investigating whether power lines owned by Southern California Edison could have sparked the Eton fire that's devastated Alta Dina, But the CEO of Edison's parent company, Pedro Bizarro, tells Bloomberg, there's no evidence to lines we're having any issues.

Typically, when you have a fire cost by electrical infrastructure, you do see a signature of voltage dropping, current increasing.

We have not seen that in our study.

CEO Pedro Pizarro's Edison International is facing a lawsuit over the Eton fire. Residents have also filed a lass against the LA Department of Power and Water over limited water supplies to fight the Palisades fire.

Well, Karen. Another developing story we're following this morning is the release of part of Special Counsel Jack Smith's report. He says President ELEC. Donald Trump could have been convicted for trying to overturn the twenty twenty election. We get the details from Bloomberg's Genis Cervetti.

The DOJ released Smith's one hundred thirty seven page report after a week of legal wrangling over whether the document could be made public. Trump's team had made emergency requests to federal courts to block it from being released. Had they succeeded, the new administration could have buried it for good. The report details Trump's efforts to pressure Vice President Mike Pence to reject congressional certification of the twenty twenty election, including a deadly attack on the US Capitol on January sixth, twenty twenty one. The report also highlights Trump's refusal to help stop the riot and his continued support for those who attacked the Capitol, which Smith sees as further evidence of Trump's gill Trump and his allies have long railed against Smith's investigation and findings, saying they represent a baseless political attack. Gina Cervetti, Bloomberg Radio.

All right, Gina, thank you all. Turning now to the Middle East, The Wall Street Journal reports this morning that Israel and Hamas are finalizing terms on a ceasefire deal that could be announced as soon as today. Both sides are warning, however, that talks could still fall apart if all those comments are in President elect Trump and President Biden, who both say a pause and fighting could come before inauguration day next week. US National Security Advisor Jake Sullivan told Bloomberg he's also optimistic about a deal.

I think the pressure is building for Hamas to come to yes. I think Israel also has achieved a huge amount of its military objectives in Gaza, and therefore they are in a position to be able to say yes. So there is a distinct possibility that we can get this deal done this week before President Biden leaves office.

And despite progress, US National Security Advisor Jake Sullivan still urges caution about a possible sea fire. The proposed deal would involve a forty two day truce with Hamas releasing thirty three hostages in its first phase. According to senior Israeli officials, Palestinian prisoners would be released from Israeli jails and a buffer zone established in Gaza, with further negotiations to follow.

Now Karen a Bloomberg News exclusive some of President elect Donald Trump's economic team is considering a plan to gradually increase trade tariffs. Sources say the discussions are looking at ratcheting up levies by about two to five percent each month.

That we get more from Bloomberg's Critty Gupta, This.

Of course, is still a proposal that's being reported on. It's not official yet, and it's also being proposed by people who are not in power just yet, so there are a lot of ifs and butts involved, But the crux of the idea simply that it uses an act that grants emergency powers to the president when declaring that the country is in a national emergency.

Bloomberg's Pretty Gupta says Scott Bessen, Kevin Hassett, and Steven Moran are working on the plan, but the gradual tariff hike proposals in its early stages and has not yet been presented to Trump. A spokesman for the transition team referred to the president to likes previous public comments and social media posts about tariffs.

Well.

Nathan Elon Musk will continue to have major access to Donald Trump when he takes office. The New York Times is reporting Musk is expected to use office space adjacent to the White House as he launches the Department of Government Efficiency. Musk owns companies with billions of dollars in contracts with the federal government.

And could the world's richest person be in line for another business Karen Bloomberg News has learned Chinese officials are evaluating the possible sale of TikTok's US operations to Musk. We are told it is one option being explored if TikTok fails to fend off a US ban or from Bloomberg's Annabelle Drulers, this is a.

Potential deal that possibly does hold some appeal for the Chinese government, which does of course have say over whether TikTok is ultimately sold. The deal value of this I mean Bloomberg intelligence. Again, it's very difficult to say, but last year they were saying TikTok's the US operations could be worth something to magnitude of forty to fifty billion dollars. And it's also not sure what sort of structure the deal could take either, but it would certainly be a very complex process.

It's Bloomberg's anabel Droolers.

Last week, the Supreme Court signal that is likely to uphold the law that would ban the app in the US on national security grounds.

Well, we turned to the markets now, Nathan, and futures are higher following yesterday's later turnaround on Wall Street. Today's trading could be impacted by the first of this week's.

Key inflation reports.

We get a preview of the Producer Price Index with Bloomberg's Michael McKee.

Economists see further proof coming that disinflation has paused, if not ended, Rising monthly prices will be in significant jumps on an annual basis, something which might scare already nervous investors. While the PPI doesn't directly correlate to Wednesday's consumer price report, several of its components feed into the Fed's preferred inflation indicator, the PCE index. Bloomberg Economics sees portfolio management and airfares continuing to drift higher. All healthcare gains are muted ahead of January's cost resets. Michael McKee, Bloomberg Radio.

And it's time now for look at some of the other stories making news in New York and around the world. And for that we're joined by Bloomberg's John Tucker.

John, Good Morning, Good Morning, Karen, New York city's first in the nation, congestion pricing appears to be working. Let's get the story this morning from Bloomberg Jeff Bellinger.

Traffic on New York's busiest streets dropped by seven and a half percent, and morning travel times fell on most major crossings into Manhattan during the first work week of the city's congestion pricing plan. The preliminary data from the Metropolitan Transportation Authority is the first glimpse into how the new charge is impacting commuting patterns. The early data follows a week of social media postings and reports of residents and drivers enjoying easier flowing traffic, and average five hundred and thirty nine thousand vehicles drove into the toll zone each day during the first work week of the program. That's about forty three thousand fewer than before congestion pricing began. Jeff Bellinger, Bloomberg Radio.

President Biden touted his foreign policy accomplishments and a speech aimed at burnishing his luncacy before he departs office next week.

BI administration is leaving the next administration with a very strong hand to play in America.

More friends, strong reliance, xavasars are weaker and under pressure.

Biden also reflecting on the competition with China, saying we expect China and everyone to abide by the international rules. Special Counsel David Weiss got the last word leading the investigation into Hunter Biden and the President's decision to part in his son. Weiss's final report was released yesterday. The President said the Hunter was treated differently and single out because he is his son. Weiss fired back, saying those baseless accusations have no merit and rescuers were sending a cage like structure into one of South Africa's deepest minds. Today, it's an attempt to bring out survivors among hundreds. If illegal mind trapped underground four months in an abandoned shaft, more than one hundred or believed to have died of starvation or dehydration. Global News twenty four hours a day. Whatever he wanted, we have Bloomberg News.

Now.

I'm John Tucker, and this is Bloomberg.

Karen, Right, John Tucker, thank you.

Time now for the Bloomberg Sports up Day, brought to you by Tri State Outing.

Here's John Stanshawer. John, Good morning, Good morning, Karen.

Sports is back in Los Angeles first time since the fires broke out home games last night for the Lakers, who lost and the Clippers, who won, and the Rams had their playoff game of the Vikings. It was moved out of LA into Phoenix, and the Rams won with surprising ease against the Minnesota team that went fourteen and three in the regular season. LA up twenty four to three at half time, went on to win twenty seven to nine a dominant defensive effort. They sacked Sam Darnold nine times, he threw an interception, he had a fumble that was returned for a Rams touchdown. Matthew Stafford threw for two TVs, then talked about the extra meaning of the victory.

We know what we're playing today, you know, was it was go get the swim A man of swept people.

Los Angeles struggling right now.

It's been unbelieable to watch the gold community, you know, the state, the country kind of get behind him.

It's it's a tough time to be back there. And uh, we're.

Just happy that we came out and played like this Tonight's that gets, you know, something.

To be happy about.

Rams will now play Sunday afternoon in Philadelphia. This contract expired, the Dallas Cowboys cut ties with coach Mike McCarthy. Dallas just went through an injury ravage seven and ten season. They won twelve games each of the previous three. McCarthy's now free to pursue other jobs. Cowboys had previously prevented him from an interview with the Bears. Meanwhile, ESPN reported last night Cowboys owner Jerry Jones has already spoken with Colorado coach Eon Sanders. At the guard much improved Pistons beat the Knicks one twenty four to one nineteen. Led by Cade cunning Ham. He scored thirty six points, Jalen Brunts and led the Knicks with thirty one At the Australian Open first round straight said victories for Americans Taylor Fritz, Ben Shelton, Emma Navarro.

And Madison Keats. John Stanshy that we're a Bloomberg Sports.

Kennonnythan coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.

Good morning.

I'm Nathan Hager on another very challenging day in store for the Los Angeles area after now a week of deadly wildfires, more punishing winds or in the forecast today, but Los Angeles County Fire Captain Sheila Kelleher says they're as ready as there going to be.

We have cruiseworthy belong everybody's in place, everybody knows the mission, everybody knows a game plan because when the winds start blowing, we will have our hands full.

But we are ready for what's coming our way and from more.

We are joined this morning by Bloomberg's Derek Wallbank. Derek, good morning, Let's talk about what is coming their way up to fifty mile an hour wind gusts and continued dangerous conditions.

Good morning, Good morning.

Yeah, that's exactly right. You know, you're talking about some conditions here that are going to mirror over the next little while the conditions that were in place at the start of the Palisades fire. This has a lot of people officials in the area on edge, and that's that's going to be the situation that we're facing for the next little while. As I say, at the same time, you know, we're getting accounts of exactly how much this is going to cost. The estimates keep going up. Acueathers overall estimate toll now somewhere around two hundred and fifty billion dollars billion, with a B dollars the insured losses on this. I've now seen two estimates that put that around the thirty billion dollar mark. That's that's continuing to rise as well. And you know that's just sort of Nathan where we stand right now. The more that you have fire conditions like this that prevent these from getting put out, that maybe put new ones in new areas, the more those totals may rise.

And when you think, Derek about the human total in the economic toll, you have to wonder what the overall knock on effect on the US economy is going to take from these fires.

Yeah, and you know, we saw we saw one one estimate that said that you could have a small effect on the on the jobless rate, that is, that is certainly something that's in play. You also could have a somewhat smaller effect on overall GDP. I think the main thing is that you have a little bit of a sectoral concentration. Right. We've written extensively. My colleague Lucashow particularly he has written extensive, extensively about the effects on the entertainment industry. Uh uh, you know, productions are generally shut down in the LA area even if it's not fire effected. You know, you're not necessarily getting the permits. Well, you know, if you need police or something else to be at your production, how are you going to go do that? So there's going to be some of those I mentioned. Insurers, particularly home insurers, are potentially exposed there, So there will be some sectors that are particularly gravely hit. And then that all raises the question, does it not of what the federal response is going to be in terms of reimbursing. Right, you know, President Joe Biden has talked about a potential federal bill for this in the tens of billions of dollars. And at the same time, we're hearing Republicans start to talk about the word offsets. Remember, there's going to be universal Republican control of Congress in the not too dissidant future, Congress and the White House in the not too distant future. They already have universal control of Congress. So that's going to be a really keen question that we're going to have to look at going.

Forward as we continue to ask those questions and monitor the wildfire situation. We got the report dropped overnight from the Justice Department Special Counsel Jack Smith's investigation into twenty twenty election interference. How much of an impact could this have now with less than a week to go before President elect Trump becomes president?

Trump again got about a minute.

Well, Nathan, I don't think that it's going to prevent Trump from becoming president, right, And I think that a lot of this stuff this report. Our listeners will have a chance to read this as they wake up and they get into work. They will find a very compelling and detailed tale of what Trump was doing in and around those events at the Capitol of January sixth, and his efforts to try and to reverse the results of the election. Those have already been well litigated. I think the American public was very well aware of all of that. It factored into people's votes where they thought it ought to, and Trump was elected. Anyway. Trump is walking in here, as they say, into a situation with universal Republicans control.

This is Bloombery Daybreak, your Morning podcast and the stories making news from Wall Street to Washington and beyond.

Look for us on your podcast by six am Eastern each morning, on Apple, Spotify, or anywhere else you listen.

You can also listen live each morning starting at five am Wall Street Time on Bloomberg eleven three to zero in New York, Bloomberg in ninety nine to one in Washington, Bloomberg ninety two nine in Boston, and nationwide on serious XM Channel one twenty one.

Plus listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Atuto interfaces.

And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow.

And I'm Nathan Hager.

Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Day Ray