LA Under Siege as New Fire Burns; Remembering Jimmy Carter
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Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with the deadly, out-of-control wildfires in California. At least five people have been killed. Hundreds of thousands are out of their homes. Let's get the very latest with Bloomberg's John Tucker. John. And Nathan, Los Angeles has plunged into its worst natural disaster in decades.

One of the worst I have ever seen, if not the worst. L.A. Fire Captain Eric Scott, a new wildfire flared and slowly expanded in the Hollywood Hills, fed by hurricane-force winds. Some residents tried in vain to fight back. The balcony was on fire, and I went around the back to grab the garden hose. For a brief period, winds died down. Crews took advantage of the window to attack the fire from the air.

There are currently five fires burning across Los Angeles. 100,000 residents have been forced to flee. This evacuation area includes landmarks like the TCL Chinese Theater and the Dolby Theater, the home of the Academy Awards, extending to a section of Hollywood Boulevard. Los Angeles Mayor Karen Bass.

To those who fled their homes, especially those who have lost your homes, our hearts are breaking for you and we stand with you. Not since the 1994 Northridge earthquake has a disaster affected so many lives across the city at once.

I'm John Tucker, Bloomberg Radio. All right, John, thank you. Well, the Los Angeles wildfires are projected to be one of the costliest natural disasters in U.S. history. AccuWeather estimates the damage and economic loss to be between $52 and $57 billion. Blazes burning around Santa Monica and Malibu are consuming some of the most pricey real estate in the U.S.,

affecting areas where the median home value is more than $2 million. And, Karen, President Biden has canceled the final overseas trip of his presidency, choosing to remain in Washington to monitor the response to those devastating fires. Biden was scheduled to leave for Rome this afternoon.

Meanwhile, Nathan, President Biden is celebrating a labor crisis averted that could have snarled American shipping. The International Longshoremen's Association, a major U.S. stockbrokers union, has reached a tentative agreement on a new six-year contract with the U.S. Maritime Alliance, the group that represents ocean carriers and terminal operators. A source tells Bloomberg the deal guarantees union jobs when certain technologies are implemented, including the semi-automated cranes that became a sticking point in the negotiations.

It also preserves a 62% pay raise that both sides agreed to in October after a three-day strike shut down every major port on the East and Gulf Coasts. Later today, Karen, of course, the nation says goodbye one last time to former President Jimmy Carter.

We get more from Bloomberg's David Gurra in Washington. The federal government is closed for a national day of mourning. Former President Carter has been lying in state in the U.S. Capitol, and thousands of people have visited the Capitol Rotunda to pay their respects.

After a departure ceremony this morning, there will be a state funeral at the Washington National Cathedral. Former presidents will attend the service, along with lawmakers and military leaders. Later, in Carter's home state, there will be a private funeral service, and the 39th president will be buried next to his wife, the former First Lady Rosalynn Carter, in Plains, Georgia.

In Washington, David Gurra, Bloomberg Radio. Thank you, David, and stay with Bloomberg for full coverage of President Carter's funeral. Live coverage of David Gurra and Bloomberg's Ann Marie Horton starts at 9 a.m. Wall Street time on Bloomberg Radio and Television.

Well, Nathan, President-elect Donald Trump will attend today's state funeral, but tomorrow he's scheduled to face sentencing in his New York hush money conviction. Trump has asked the Supreme Court to step in and put the case on hold. And now Justice Samuel Alito has confirmed he had a phone call with the president-elect the day before he put in that request.

In a statement, Alito says one of his former law clerks asked him to take the call so he could recommend him for a role in the Trump administration. Alito says he did not discuss the hush money case or know that Trump had filed for an emergency stay. The head of the nonprofit group Fix the Court tells Bloomberg Law all three, Trump, Alito and the former clerk, should have known better.

Well, Karen, now we turn to a Bloomberg News exclusive. The artificial intelligence phenomenon may result in thousands of job cuts on Wall Street. Let's get the details from Bloomberg's Lisa Mateo. Lisa.

Bloomberg Intelligence surveyed a peer group that included Citigroup, JPMorgan Chase and Goldman Sachs, and they found that AI could push global banks to cut as many as 200,000 jobs in the next three to five years. And this is as the technology takes tax over currently that are carried out by human workers.

And that amounts to about 3% of the industry's global workforce. So who's affected? Back office, middle office, operations likely to be the most at risk. Bloomberg Intelligence predicts the changes could mean improved earnings, with banks adding as much as $180 billion to their combined bottom line in 2027 as AI powers an increase in productivity. Lisa Mateo, Bloomberg Radio.

All right, Lisa, thank you. While chip stocks may be under pressure when trading resumes tomorrow, the stock market, of course, is closed today for the funeral of Jimmy Carter. After the bell yesterday, shares of NVIDIA dropped more than 1%. President Biden's administration plans one additional round of restrictions on the export of artificial intelligence chips from the likes of NVIDIA just days before leaving office. We get more with Bloomberg's Ian King.

First of all, is this going to get implemented? Secondly, we'll have to wait and see as it will, you know, take a lot of time to sort of pass how these restrictions will affect what companies do. And clearly, they're going to look very closely at what they can get away with. And we've seen in the past with these restrictions, you see an initial essential shutdown of shipments to certain places and then sort of gradually comes back as the lawyers work out what they can get away with. So it's going to be probably choppy to start off with.

Bloomberg's Ian King says the goal is to keep advanced technologies out of the hands of China and Russia. The outgoing chair of the Securities and Exchange Commission says there is more still to be done in regulating the cryptocurrency market. Bloomberg's David Gurra spoke with Gary Gensler. In this field,

It's rife with bad actors. I've been around finance for over four decades, and everything in the markets trade on a mixture of fundamentals and sentiment at any given time. But I've never seen a field that's so much wrapped up in sentiment and not so much about fundamentals. Gary Gensler will step down as chairman of the SEC on January 20th, the day President-elect Donald Trump is sworn into office.

And it's time now for a 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 Michael Barr. Michael, good morning. Good morning, Karen. Another blast of winter weather is set to grip the South at the end of the week, bringing heavy snow and possible difficult driving conditions over the coming days.

Schools and cities from Texas to Georgia are shutting down. Shoppers like this man in Jonesboro, Arkansas are stocking up ahead of the storm. I've got a half a gallon of milk. I'm going to stop and get me some milk. So I won't have to get out if it gets bad weather. Oklahoma City pretreated all of their roads ahead of today's snowstorm. OKC's Public Works Emergency Operations Manager Mike Love says they added beet juice to their mix.

"Heat juice is an additive that we put in our salt brine. We do a 20% to 10% mix depending on what kind of temperatures we're going to deal with. And what it really does is it makes our salt work better." Meanwhile, Virginia's capital, Richmond, remains under a weather-related water boil advisory.

New York Mayor Eric Adams is set to deliver his State of the City address today. Adams will deliver it at the Apollo Theater in Manhattan at noon Eastern time. The address comes as Adams faces legal troubles over accusations of taking luxury trips for political favors, something the mayor denies.

The outgoing Secretary of State is dismissing the notion President-elect Trump will try to take Greenland. Secretary of State Antony Blinken was asked about it while in Paris. The idea expressed about Greenland is obviously not a good one, but maybe more important, it's obviously one that's not going to happen. So we probably shouldn't waste a lot of time talking about it. Earlier this week, President-elect Trump declined to rule out using military force to take Greenland and the Panama Canal.

New York City's Taxi and Limousine Commission is proposing changes to Uber and Lyft's driver pay calculations to close a loophole that has denied drivers millions of dollars. The proposal would effectively raise driver rates by 6.1% and includes changes to utilization rates and a new rule requiring 72-hour advance notice to drivers before locking them out. However, Uber and Lyft are opposing the plan, warning that it would lead to more expensive rides for customers

The New York Taxi Workers Alliance supports the proposal as a step towards better driver pay and job security. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr. This is Bloomberg, Karen. All right, Michael Barr, thank you. This show is sponsored by BetterHelp. BetterHelp has been revolutionary in connecting people to mental health services. Using BetterHelp can be as easy as opening your laptop or your phone and clicking a button and the session begins.

Clients are able to choose in what way they would like to communicate with me, whether video or on the phone or chat texting. BetterHelp is there when you need it, and that's what makes all the difference. Visit betterhelp.com slash podbusiness to get 10% off your first month. Therapists were compensated. From providing extra support during busy seasons to replacing vacant roles.

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Time now for the Bloomberg Sports Update brought to you by Tri-State Audi. Here's John Stanshauer. John, good morning. Good morning, Karen. A little more like it for the Knicks. They had lost a season-high three games in a row. Really bad outing the other night against Orlando. But back at the Garden, they beat Toronto, a team with only one win in its last 15 games. 1-12 to 98. Coach Tom Thibodeau enjoyed this one. I thought we came out with a really strong spirit of togetherness.

And, you know, good things come from that. So they're a team that plays real fast, and they'll test you in terms of defensive transition, and I thought our guys responded well to that.

In that loss to the Magic, Carl Anthony Towns didn't play. He returned, led the Knicks with 27 points, 13 rebounds. Nets at Barclays, loss to much-improved Detroit. Won 13-98, Pistons move over 500. The big NBA game was in Cleveland, just the third game in history where both teams were riding winning streaks of at least 10 games. The Cavs beat Oklahoma City.

129-122. It's their 11th win in a row. They're now 32-4. The Thunder dropped to 30-6. It ends their 15-game win streak. The NHL game in Los Angeles between the Kings and Flames postponed due to the fires in L.A. There's an NFL playoff game at SoFi Stadium Monday night. Rams and Vikings. The NFL announced if it's determined the game can't be played in L.A.,

It'll be moved to Phoenix. Six teams looking for a new coach, including the Jets, who have a long list of candidates to interview. Yesterday was Kansas City assistant Matt Nagy, former head coach in Chicago. The Bears are looking again. They spoke with Mike Vrabel, who seems to be on everyone's list. New name has emerged in Chicago. Iowa State coach Matt Campbell. Tom Brady has an ownership stake in the Raiders. Reportedly, they asked Brady's old coach, Bill Belichick, if he was interested. He said he was not. Belichick just recently hired at North Carolina.

College football playoffs semifinals starting tonight in Miami with Penn State against Notre Dame. Texas takes on Ohio State tomorrow in Dallas. The four teams left, four of the seven winningest teams in college football history. John Stasiewicz, Bloomberg Sports, Karen Nathan.

Coast to coast on Bloomberg Radio. Nationwide on Sirius XM. And around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. This is a national day of mourning in honor of the late Jimmy Carter. The 39th president has been lying in state since Tuesday night in the U.S. Capitol ahead of the state funeral later this morning at Washington National Cathedral.

House Speaker Mike Johnson honored President Carter as his flag-draped casket arrived at the Capitol this week. We all know that his care for humanity didn't stop at building homes. In the face of illness, President Jimmy Carter brought life-saving medicine. In the face of conflict, he brokered peace. In the face of discrimination, he reminded us that we are all made in the image of God.

And this morning, we're pleased to be joined by Terry Haines, the founder of Pangea Policy. Terry, thanks so much for being with us. How can you sum up the legacy that Jimmy Carter leaves behind? Good morning. Good morning, Nathan, and thank you particularly for having me on to talk about Jimmy Carter today.

Two things to start. One is this is a man who wanted to live a useful life, and he achieved that, not just with the presidency, but with the Carter Center, with Habitat for Humanity, and a great deal more, some of which Speaker Johnson mentioned there, too. It's hard to imagine, but it's true that...

Carter was president nearly half his life ago, so he had an unprecedented opportunity to have a post-presidential career and really shaped, ironically, together with Richard Nixon to some extent, exactly what a post-presidential career looked like. In the Carter presidency, I would say just in some, people read obituaries and all the rest,

is really a hinge to the world we live in today in a lot of reasons, in a lot of ways. Finally, I would say that the markets particularly have Jimmy Carter to thank for today's market strength, because it was Carter's determination to break U.S. inflation, to

that including by appointing Paul Volcker, the Fed chair, and sticking with it, that really created the economy and the United States prosperity that we all enjoy today. There have been parallels drawn between how President Carter handled the inflationary situation to how President Biden has handled his own inflationary situation. What are the parallels you would draw?

You know, I would say two things. One is I do see the similarities, of course, and Carter, you know,

Inflation ruined Carter's presidency much as it ruined Biden's presidency. But the big difference between Carter and Biden, unappreciated at the time, I would say, is that Carter was doing something about it by appointing Volcker and really wanting to crack down on inflation. And to Carter's

great credit. He stuck to it. He told Volcker, you take care of the interest rates and the economy. I'll take care of the politics. Well, Volcker took care of his half, but circumstances made it too much for Carter to take care of the politics. And I would also give Ronald Reagan a shout out here as well, because Reagan continued those policies with Volcker at some cost to his presidency as well. It's forgotten now that

Reagan's first two years plus were anything but smooth on the inflation and economic front. But things eventually worked out and smoothed out thanks to both of those gentlemen sticking to it. Only have about 30 seconds left, but of course, these remembrances are coming at a time of presidential transition. We're expecting differences to be put aside, at least for today. What's it going to take to bring the comedy past today in Washington?

Pass today? You know, I think my answer to that, Nathan, just as when you and I talked after January 6th, 2021, is a little more humility from everybody. People get way over their skis on rhetoric.

People get way over their skis on divisiveness. We're entering a period here with geopolitical competition and confrontation where a little more humility across the board would serve Washington very well. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify or anywhere else you listen.

You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121. Plus, listen coast-to-coast on the Bloomberg Business app now with Apple CarPlay and Android Auto 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 Daybreak.

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