Bloomberg Daybreak: US EditionTensions Rise as US Troops Killed; Earnings & Fed Decision This Week
On today's podcast:
1) Iran sought to distance itself from a deadly attack on a US base in Jordan by a Tehran-backed militia, as President Joe Biden faced mounting pressure to order a harsh response against the Islamic Republic.
2) China Evergrande Group received a liquidation order from a Hong Kong court, setting off a daunting process to carve up the biggest casualty of a property crisis that’s upending the world’s second-largest economy.
3) Nikki Haley vowed to stay in the Republican presidential primary race at least through Super Tuesday while chiding a tabled plan by the Republican National Committee that called for the party to coalesce around Donald Trump.
Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with rising tensions in the Middle East. The White House says Iranian backed militants killed three US soldiers.
In a drone strike over the weekend.
Now, Tran has denied any involvement in the attacks, but President Biden is facing mounting pressure to confront Iran over its support of militant organizations.
Bloomberg's Ed Baxter has the story, this.
Is coming as an attack by militants and Jordan killed three troops and wounded twenty five others. There are discussions underway regarding a number of options, including covert operations and multiple military strikes. The new Chair of the Joint Chiefs of Staff, General C. Q. Brown, says questions in the Middle East boiled down now to deterrence.
We think about the approach we take.
We want to ensure that we take away capability while we protect our forces at the same time, not have this brought into.
A much wider conflict.
How the attacks so far have slowed down the Iranian proxies at Baxter Bloomberg Radio, All.
Right, and thanks now to the latest on the Israel Hamas war. Benjamin at and Yahoo says a summit to negotiate the return of hostages held by Hamas in exchange for a ceasefire in Gaza was constructive, but significant gaps remain. Spy chiefs and top officials from Cutter Egypt, the US, and Israel met to try to secure the release of more than one hundred hostages taken from Israel on October seventh.
And back here in the US Karen.
Former President Donald Trump faces a pair of major legal verdicts in New York that risk wiping out most, if not all, of the cash he claims to have on hand. Bloomberg Zamy Morris reports Donald.
Trump was ordered to pay more than eighty three million dollars to writer Ajen Carroll for defaming her. Also, a verdict is expected this week in New York's civil fraud trial asking for three hundred and seventy million dollars in illegal profits Trump allegedly made by lying to get better terms on loans. He also faces mounting legal bills after being charged with ninety one criminal offenses in four criminal cases. Trump's campaign finances are reportedly still strong, but he's not allowed to use that to pay for those verdicts. The Bloomberg Billionaire's Index places Trump's liquid assets at about six hundred million dollars, although his exact financial status is unknown. Amy Moore as Bloomberg radio.
Er Amy thanks ash for the other Republican and the presidential race, Nikki Haley is saying she'll keep her campaign going at least through Super Tuesday. The former South Carolina governor says she doesn't need to win her home state next month to stay competitive.
What I do think I need to do is I need to show that I'm building momentum. I need to show that I'm stronger in South Carolina than New Hampshire. Does that have to be a win? I don't think that necessarily has to be a win, but it certainly has to be better than what I did New Hampshire, and it certainly has to be close.
Nicki Haley, speaking on NBC's meetha Press stop, short of committing to remain in the race through the Republican nominating Convention in July.
Turning to Wall Street Careen, this is a huge week on the economic front. It's highlighted by a FED decision and the jobs report Let's get a preview now from Bloomberg's Michael McKee.
A data dependent FED gets a lot of data this week, although most of it comes as and after they meet. The week's headliner is the Central Bank meeting. No change in rates expected, but global Wall Street will be looking for hints from Chairman Jay Powell about when rate cuts may come. The first half of the week sees consumer confidence the White House will be watching closely, and then a lot of labor data job Opening's ADP, employment, the Employment Cost Index, jobless claims capped Friday by the government's January Jobs report. All will feed into rate cut timing expectations. Michael McKee, Bloomberg Radio.
All right, Mike, thanks well. It's an equally big week on the equity side, with some of the Magnificent Seven leading a barrage of earnings on Wall Street. And we get more from Bloomberg's John Tucker.
And Karen They have led the major stocky indexes to record high's. Microsoft and Alphabet report earnings tomorrow, Apple, Amazon Meta platforms. They when their books on Thursday last week. You recall Microsoft joined the three trillion dollar club, which so far has only two members. The other being Apple. Analysts say AI will boost just about every part of Microsoft's portfolio. Apple's reliance on the iPhone that is an investor concern, with the earnings of the so called Magnificent Seven expected to have grown forty seven percent. That's according to data compiled by Bloomberg Intelligence. John Tucker Bloomberg Radio.
Okay, John, Thanks, in Asia, we have major developments involving Evergrand. A court in Hong Kong has ordered the liquidation of the massive Chinese developer. Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong.
Evigrand was unable to reach a restructuring agreement with creditors even after an eight week reprieve by the court. It's been a long and winding road to this winding up order, and he will send ripples through China's financial markets. Evigrind shares dropped twenty one percent before being suspended. The liquidator is likely to face a daunting process. Though most emigrant projects are operated by local units, it could be difficult for an offshore liquidator to seize them in Hong Kong. Brian Curtis, Bloomberg Radio.
All right, Brian, thanks well In Europe. Shares that Ryanair are down more than two percent, the discount carrier trimming its earnings forecast.
The company is a big customer for Boeing.
Brian Air Chief financial Officer Neil Sorahan says he does not see the grounding of the Max nine adding disruption to its delivery schedule.
I think things are moving in the right direction, but you know, they just need to make sure that you know, we're getting high quality aircraft on time all the time.
RYANAIRCFO Neil Sorahan said the company would happily snap up any extra Boeing jets if they become available.
And shares of Phillips are down more than six percent overseas. Caaren the Dutch manufacturers suspending sales of sleep apnea devices.
And ventilators in the US.
That's after Phillips reached an agreement with the US Food and Drug Administration over its faulty medical equipment. We have more global headlines and a check of sports. Next, this is bloomberg.
Ry, thanks to Nathan.
It's time now for a look at some of the other stories making news around the world, and for that we're joined by Bloomberg's Amy Moore.
Is Amy, Good morning, Good morning, Karen. A House Republican is calling Homelands Charity Secretary Alejandra Mayorcas the architect of destruction and says his actions warrant impeachment. Texas Congressman Michael McCall on Fox News Sunday says Mayorcas is solely responsible for the amount of fentanyl and the number of people on the terror watch list that have come into the US across the southern border.
Eight million encounters, three hundred on the terror watch list, two hundred million people dead now thanks to fetnel poising.
McCall accused Mayorcis of dereliction of duty and breach of the public trust. House Republicans released two articles of impeachment yes yesterday. The House Homelands Charity Committee is scheduled to meet tomorrow to determine if it will move impeachment to a vote on the House floor. A Democratic senator who's been helping the gociate a bipartisan deal on US border security says Republicans can choose between border reform or Trump chaos. Bloomberg's Scott car with that story.
Bipartisan bill would give the president new emergency authority to close the US border when it becomes overwhelmed, something President Biden says he might do if Congress approves it. Republican House Speaker Mike Johnson, however, is indicated the deal would be dead on a rival in the Republican controlled House. Senator Chris Murphy of Connecticut tell CNN State of the Union the text is done on the bill that's tied to critical aid for Ukraine and its war against Russia.
Bloomber Scott car reporting, California Governor Gavin Newsom says getting the vote out is what Democrats need to do to keep a third party candidate from being a spoiler. In November, he spoke out while on ABC's This Week against efforts by some Democrats to keep third party candidates off the ballot.
When you try to suppress choice and voice, it tends to backfire.
He also urged Democrats to check the platform of the No Label's third party movement, saying it literally quote it reads as the accomplishment list of the Biden Harris administration. He called no labels a solution in search of a problem. President Biden says the US will respond after three American service members were killed in an overnight drone attack in Jordan. Biden held a moment of silence for the soldiers killed during an event in a South Carolina yesterday, calling it a tough day in the Middle East. The White House is blaming radical Iran backed militant groups for that strike. Global news twenty four hours a day, whenever you want it with Bloomberg News Now. I'm Amy Morris and this is Bloomberg Karen.
All right, Amy, thank you. What we do bring you news throughout the day right here on Bloomberg Radio. But now you can get the latest news on demand whenever you want it. Just subscribe to a Bloomberg News Now to get the latest headlines of the click of a button. Get informed on your schedule. You can listen and subscribe to Bloomberg News Now on the Bloomberg Business Now, Bloomberg dot Com plus Apples, Spotify, or anywhere else you get your podcasts. Time Now of the Bloomberg Sports Update, here's John stash Hour John Karen.
Conference Championships Sunday began in Baltimore, first championship game played there since nineteen seventy one. The Chiefs the Tenning Super Bowl champs, but the Ravens the favorites based on a regular season where they outscored the opponent by more than two hundred points, and yet Kansas City started the game with touchdown drives that covered eighty six and seventy five yards. The second one lasted nine minutes. They led seventeen to seven at halftime, and the AFC title game remained scoreless until a late Baltimore field goal. Chiefs won seventeen to ten. They're going to the Super Bowl fourth time in the last five years, and in Las Vegas they'll try to win their third. The first win came when they beat the forty nine Ers four years ago. They will play them again. The Niners NFC champs, with a huge comeback at home on Detroit trailed twenty four to seven and a half time, and then scored the next twenty seven points to win thirty four to thirty one. They had seventeen points in an eight minute span. The Lions helped them out a costly fumble, two incomplete passes on fourth down at tempt when they could have tried a makeable field goal. The Lions' best season in sixty six years comes to an end. The Niners have been made a very slight favorite to beat the Chiefs in Super Bowl fifty eight. Twenty two year old Yannick Singer, Australian Open champion, only the second time in Italian has won a men's singles Grand Slam in the.
First and forty eight years.
He came from two sets down to beat the Neil Medvedet, top two in college basketball. Both won Yukon by forty three over Xavier Perdue one at lucer. John Stashwa Bloomberg Sports kem all.
Right, John, thanks well, straight ahead, We're going to get the very latest out of the Middle East. Will be joined by Bloomberg News Senior editor Bill Ferries. And ahead of that discussion, SMP futures our little change this morning. Down Futures down a tenth of up percent, down about forty eight points, and Nasdaq Future is higher, up two tenths of up percent, or about thirty four points. A ten year Treasury up ten thirty seconds, held four point one zero percent, the yield on the two year at four point three to two percent.
And this is Bloomberg.
From coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias exam the Bloomberg Business app and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. President Biden is vowing the US will respond in a time and manner of its choosing, following the killings of three US soldiers in a drone strike in northeast Jordan. These are the first American deaths under enemy fire since the start of the Israel Hamas War, and they risk precisely the kind of escalation in the Middle East that this president has been trying to avoid. So for more we are joined now by Bloomberg News Senior editor Bill Ferries. Bill, the President does face a very difficult decision after this drone attack. What are his options now, Well.
You're right, Nathan, the US has vowed to respond to this attack. As you said, it's the first America deaths of American soldiers since this war started. And I think it's going to have to be a very delicate response because these are proxy groups and not actually you know, Iranian military or the Iranian government directly behind them. I think that's going to require the US to do some sort of calibration. It can look at targeting facilities that these different groups have in places like in places like Syria, Iraq, and even in Iran, but it probably has to distinguish its response from attacking an attack on Iran directly or on Iranian government facilities, because once you have a nation state going against another nation state, that would be exactly the kind of escalation that I think the US and a lot of other countries have sought to avoid. There also could very well be a very covert response to this. There could be some sort of a you know, the big hacking attack that's unleashed on ira facilities. There could be other things going on behind the scenes. But I think the fact that you have three US troops killed, I think that requires something of a public response as well. So you could have both, but there is likely to be some sort of a public response.
It does sound though, like the kind of options that you laid out are similar to what the US has been mounting against the Hooti rebels in Yemen to try to deter the red sea attacks. But at this point it doesn't seem to have had much effect on red sea shipping right.
I think, you know, the administration's argument has been that they're hitting these stockpiles of weapons that the Jutis had. They're they're hitting different facilities, they're looking at a missile launchers right before right when they're loaded up, and that it will over time they will have, you know, significantly degraded the UTI's ability to do this. But you're you're right, it hasn't stopped them. If they can just get one missile off that hits a ship, they've kind of achieved their goal in that kind of attack. So it's very hard to shut that down entirely. And the big question is on this latest incident is if they do hit a proxy, Iranian proxy's facilities or personnel or weapons depots, will that really be enough to make those groups think twice?
And in the meantime, the US is trying to de escalate things in the Gaza Strip and foster further negotiations between Israel and Hamas in getting hostages released. We had a summit in Paris over the weekend. What's the sense about how that's going well.
I think you're right, the latest tensions with Iran could really work to derail that. What we're seeing come out of these talks so far is there's reports that a deal could be underway that would involve basically a cessation of the conflict in Gaza. For weeks, possibly more than a month, we had Israeli Prime Minister Benjamin Netanyah who come out and saying that the sides are very far apart at this point. But it is, you know, I think it is. It's a positive that there's some of these discussions going on. I don't think you're going to hear either side budge until they get right up to an agreement and are ready to announce. But this latest attack on the US forces and the possible escalation with Iran, that will throw a lot of this into question. If there is, if there is a broader conflict, Iran is likely to strike out at a range of targets and that's not gonna that's really not going to make things easier in Gaza.
So in our last minute, are we hearing anything further from US or Israeli allies about how they could respond to what's been happening with the US soldiers killed as well as with what's happening in the Gaza strip.
Well, there's been you know, the condemnation you would expect, and also you know, a plea from Jordan for more more weapons and defensive weapons to help it sort of protect its borders. This this latest attack to place up in the northeast corner of Jordan, and it's close to where Isis once had a very strong base. That's why the US troops are there, and why the US troops are just over the border along that highway that leads from I Rock into Syria. But I think you have all sides very much holding their breath to see whether this attack on US forces results in something much bigger in the coming hours or coming days.
That will be following. Thank you, Bill, as always. Bill Ferries, senior editor for Bloomberg News, on the heightened tensions in the Middle East following that drone strike at northeast Jordan that claimed three American lives over the weekend. This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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