Treasury Alleges Hack from China; Mike Johnson Speakership Uncertain

Bloomberg Audio Studios, Podcasts, Radio News. Good morning. I'm Amy 0:00:10.800 --> 0:00:13.680 Morris and I'm Karen Moscow. Here are the stories we're 0:00:13.720 --> 0:00:14.520 following today. 0:00:14.840 --> 0:00:17.840 Karen, We begin in Washington with a major story out 0:00:17.840 --> 0:00:20.759 of the US Treasury. The Treasury Department says it was 0:00:20.800 --> 0:00:24.640 hacked earlier this month by Chinese based cyber attackers. In 0:00:24.640 --> 0:00:28.600 a letter to Congress, Treasury says the major cybersecurity incident 0:00:28.960 --> 0:00:34.080 led to unauthorized accessing of workstations and unclassified documents. Bloomberg's 0:00:34.159 --> 0:00:37.320 John Harney says the news is likely to further complicate 0:00:37.360 --> 0:00:39.400 relations between Washington and Beijing. 0:00:40.120 --> 0:00:44.280 US China relationship whi's cover a vast bass scope for 0:00:44.560 --> 0:00:48.400 issues and agendas, etc. Has been improving somewhat, but this, 0:00:49.159 --> 0:00:52.400 as a trumpet administration is about to take office, suggests 0:00:52.440 --> 0:00:54.720 that much much remains to be resolved. 0:00:55.280 --> 0:00:58.600 Bloomberg editor John Harney says the hackers gained access via 0:00:58.680 --> 0:01:02.800 a third party software provider, Beyond Trust, which has contracts 0:01:02.800 --> 0:01:06.080 with the Defense and Justice Departments. In a statement, the 0:01:06.200 --> 0:01:09.640 Chinese Embassy in Washington called the claims smear attacks against 0:01:09.720 --> 0:01:11.480 China without any factual basis. 0:01:12.319 --> 0:01:15.280 Well Lamy over on Capitol Hill, the House votes Friday 0:01:15.280 --> 0:01:17.560 on the speaker of the next US Congress, but Mike 0:01:17.600 --> 0:01:21.959 Johnson's reelection bid remains uncertain. Yesterday, President elect Donald Trump 0:01:22.040 --> 0:01:25.360 through his support behind the Republican congressman, but with a 0:01:25.400 --> 0:01:28.679 thin GOP majority and Democrats expected to vote for Hakim 0:01:28.760 --> 0:01:32.160 Jeffreys along party lines, Johnson can only afford to lose 0:01:32.280 --> 0:01:36.680 one GOP vote, and yesterday, Arizona Representative Andy Biggs told 0:01:36.720 --> 0:01:39.640 Fox News he has not publicly or privately committed to 0:01:39.720 --> 0:01:43.720 voting for Johnson, and GOP representatives Andy Harris of Maryland 0:01:43.720 --> 0:01:47.240 and Thomas Massey at Kentucky also signaled they might not 0:01:47.480 --> 0:01:50.640 beck Johnson. Bloomberg's Joe matthew says a fight over the 0:01:50.680 --> 0:01:53.600 speakership will make it harder for a president elect Trump 0:01:53.640 --> 0:01:56.440 to govern on the mandate that got him re elected. 0:01:56.920 --> 0:01:59.680 When it comes to the legislature, this is an incredibly 0:02:00.000 --> 0:02:02.680 eight majority for Republicans in the House, and it could 0:02:02.680 --> 0:02:06.120 get tighter. Donald Trump has actually tapped three members to 0:02:06.240 --> 0:02:09.040 join his administration. If they all join, Mike Johnson has 0:02:09.080 --> 0:02:13.600 a majority of one, and good luck renegotiating the tax 0:02:13.680 --> 0:02:16.000 code right in an environment like that. We've got some 0:02:16.080 --> 0:02:18.639 big stuff coming including the debt ceiling, that they were 0:02:18.680 --> 0:02:19.640 unable to manage it. 0:02:19.840 --> 0:02:23.160 Bloomer's Joe Matthew shes the Republicans who have signed possible 0:02:23.160 --> 0:02:26.400 opposition to Mike Johnson, his House Speaker, are concerned about 0:02:26.480 --> 0:02:27.880 government spending. 0:02:28.240 --> 0:02:32.160 Elsewhere in Washington, President Biden marked Thursday, January ninth as 0:02:32.200 --> 0:02:35.400 a national day of mourning for former US President Jimmy Carter, 0:02:35.720 --> 0:02:38.120 who died at the age of one hundred. On Sunday, 0:02:38.600 --> 0:02:41.160 US doc markets will close in observance as part of 0:02:41.160 --> 0:02:44.919 a long standing American tradition. Bloomberg's Tyler Kendall has more 0:02:44.960 --> 0:02:47.040 on what we can expect on January ninth. 0:02:47.320 --> 0:02:50.760 We are expecting there to be a funeral procession first, 0:02:50.840 --> 0:02:54.400 though Jimmy Carter will lie in state in Atlanta and 0:02:54.440 --> 0:02:57.040 the Georgia State capital over the weekend. His body will 0:02:57.080 --> 0:03:00.560 then be transported to Washington on Monday, where he then 0:03:00.600 --> 0:03:03.800 will lie in state at the US Capitol. I've learned 0:03:03.840 --> 0:03:06.440 that only twelve other presidents have had that honor of 0:03:06.520 --> 0:03:09.400 lying in state at the US Capitol before his funeral 0:03:09.440 --> 0:03:11.640 possession to the National Cathedral. 0:03:11.919 --> 0:03:15.160 Bloomberg's Tyler Kendall says President Biden has also expected to 0:03:15.200 --> 0:03:18.480 deliver a eulogy for former President Carter on January ninth. 0:03:19.040 --> 0:03:22.919 Well in politics overseas, amy German leaders are expressing anger 0:03:22.919 --> 0:03:26.240 over Elon musks repeated public support to the country's far 0:03:26.400 --> 0:03:29.920 right party AfD. In a televised New Year's Eve address, 0:03:30.000 --> 0:03:34.080 German Chancellor Oloff Schultz said German citizens alone will decide 0:03:34.080 --> 0:03:37.800 the direction of the country, not owners of social media channels. 0:03:38.040 --> 0:03:41.120 Other major parties attacked Musk after he expressed support for 0:03:41.160 --> 0:03:44.320 the AfD party. With less than two months until the election, 0:03:44.480 --> 0:03:49.440 the conservative CDUCSU alliance has a comfortable lead in opinion polls, 0:03:49.480 --> 0:03:53.320 with the AfD in second place and Schultz's SPD party 0:03:53.400 --> 0:03:53.960 in third. 0:03:54.760 --> 0:03:57.960 Meanwhile, over in Asia, we are seeing positive signs from 0:03:58.040 --> 0:04:01.200 China's economy to end the yearsident that Shijinping says, the 0:04:01.280 --> 0:04:04.680 Chinese economy is expected to expand around five percent for 0:04:04.720 --> 0:04:08.000 twenty twenty four, signaling that Beijing is on track to 0:04:08.040 --> 0:04:10.840 meet its official targets now. This comes as new data 0:04:10.960 --> 0:04:14.760 shows China's services activities expanding at the fastest pace in 0:04:14.880 --> 0:04:18.160 nine months, while manufacturing grew for a third month in 0:04:18.200 --> 0:04:20.640 a row. China is expected to set a twenty twenty 0:04:20.720 --> 0:04:23.560 five growth target, similar to twenty twenty four. 0:04:23.800 --> 0:04:27.320 Well elsewhere in Asia, amy a South Korean court as 0:04:27.360 --> 0:04:30.240 issued an arrest warrant for President yunsuk u all over 0:04:30.400 --> 0:04:34.400 insurrection allegations related to his short lived martial law declaration. 0:04:35.000 --> 0:04:38.080 If executed, Yun would be the first sitting president in 0:04:38.120 --> 0:04:41.680 South Korea's history to be arrested. It's unclear if investigators 0:04:41.680 --> 0:04:44.400 will be able to take him into custody. Yun's team 0:04:44.480 --> 0:04:47.359 is called the warrant illegal and invalid and plans to 0:04:47.360 --> 0:04:49.919 seek an injunction from the Constitutional Court. 0:04:50.400 --> 0:04:52.520 Let's turn out to markets. On the final trading day 0:04:52.560 --> 0:04:55.000 of twenty twenty four, Global equities are on course for 0:04:55.040 --> 0:04:58.000 their first quarterly loss of the year. Meanwhile, in the US, 0:04:58.040 --> 0:05:00.120 the S and P and Nasdaq each declined more more 0:05:00.120 --> 0:05:03.120 than one percent yesterday, marking the third time the indexes 0:05:03.200 --> 0:05:06.280 dropped more than one percent over the past eight sessions. Still, 0:05:06.320 --> 0:05:08.279 the S and B has gained more than twenty percent 0:05:08.279 --> 0:05:11.520 on the year, driven by the rally in megacats tech stocks. 0:05:11.720 --> 0:05:15.159 Anna wrathbund Cio at SEBIZ says, with the FED expected 0:05:15.200 --> 0:05:17.640 to keep monetary policy tied in twenty twenty five to 0:05:17.640 --> 0:05:20.560 bring inflation down to two percent, traders could see more 0:05:20.640 --> 0:05:22.360 choppy sessions in the new year. 0:05:22.880 --> 0:05:23.560 Two percent. 0:05:23.839 --> 0:05:25.880 We need to revisit that and we need to really 0:05:25.920 --> 0:05:28.359 talk about whether or not that's a realistic goal without 0:05:28.360 --> 0:05:31.200 slowing down the economy. And we think that we're in 0:05:31.279 --> 0:05:35.920 a higher for longer inflation environment, and that is that 0:05:36.080 --> 0:05:38.799 all of those things just basically mean higher tenure yield, 0:05:39.480 --> 0:05:41.360 and that's one of the reasons why we think there's going. 0:05:41.360 --> 0:05:45.080 To be price volatility and our wrathbund Cio at Sea 0:05:45.120 --> 0:05:48.720 Biz says. Additional investor concerns in twenty twenty five range 0:05:48.720 --> 0:05:52.320 from President elect Donald Trump's protectionist policies, to the health 0:05:52.360 --> 0:05:55.119 of the European and Chinese economies. 0:05:55.200 --> 0:05:57.640 And finally, amy as we ring in the new year, 0:05:58.080 --> 0:06:01.240 estimates from the US Census Bureaus say the world population 0:06:01.480 --> 0:06:05.240 will be almost eight point one billion people on January first. 0:06:05.279 --> 0:06:07.760 We get more on that with the Bloomberg's Charlie Pellett. 0:06:07.960 --> 0:06:11.640 Those estimates say the global population increased by more than 0:06:11.760 --> 0:06:15.160 seventy one million people in twenty twenty four, representing a 0:06:15.279 --> 0:06:19.080 point nine percent increase, which was a slight slowdown from 0:06:19.160 --> 0:06:22.719 twenty twenty three, when the world population grew by seventy 0:06:22.760 --> 0:06:26.520 five million people. The US meanwhile expanded by two point 0:06:26.600 --> 0:06:29.719 six million people, and on New Year's Day, the population 0:06:29.880 --> 0:06:32.599 count will be three hundred and forty one million people. 0:06:33.000 --> 0:06:35.680 The nation is expected to have one berth every nine 0:06:35.720 --> 0:06:39.599 seconds and one death every nine point four seconds. In 0:06:39.760 --> 0:06:43.520 January of twenty twenty five, in New York, Charlie Pellett 0:06:43.560 --> 0:06:48.240 Bloomberg Radio, it. 0:06:48.120 --> 0:06:49.440 Is time now for look at some of the other 0:06:49.520 --> 0:06:51.719 stories making news in New York and around the world. 0:06:51.760 --> 0:06:54.960 And for that we're joined by Bloomberg's Michael Barr Michael, good. 0:06:54.920 --> 0:06:58.920 Morning, Good morning, Karen Sight. Securities plan for New Year's celebrations, 0:06:58.960 --> 0:07:02.800 but no specific threats. According to law enforcement, Times Square 0:07:02.839 --> 0:07:05.560 in New York City will be packed with partygoers to 0:07:05.640 --> 0:07:09.200 ring in twenty twenty five. Mayor Eric Adams vows that 0:07:09.279 --> 0:07:13.400 they're increased NYPD presence, including K nine teams, drones, boats, 0:07:13.400 --> 0:07:16.920 and helicopters will provide a safe environment for visitors and 0:07:17.000 --> 0:07:20.720 New Yorkers alike. Make sure each one of those who 0:07:20.840 --> 0:07:23.600 come here to visit and enjoyed the ball drop will 0:07:23.640 --> 0:07:27.240 be safe. In Atlanta, large crowds are expected for the 0:07:27.360 --> 0:07:31.200 Peach Drop returning this year after a hiatus in Las Vegas. 0:07:31.240 --> 0:07:33.480 Two hundred and fifty thousand expected on the strip for 0:07:33.560 --> 0:07:37.280 the countdown to twenty twenty five. In Philadelphia, Deputy Police 0:07:37.280 --> 0:07:40.840 Commissioner Mike Cram says the city is preparing for Tomorrow's 0:07:40.960 --> 0:07:41.960 Mummers Parade. 0:07:42.120 --> 0:07:44.600 We always take a very layered approach, right, and that's 0:07:44.640 --> 0:07:48.320 everything from law enforcement to the use of other parts 0:07:48.320 --> 0:07:50.840 of the city. As you go around, you'll see sanitation 0:07:51.000 --> 0:07:55.280 trucks that doubles walking vehicles as well to restrict access 0:07:55.320 --> 0:07:57.120 onto the parade routes, things that nature. 0:07:57.440 --> 0:08:00.560 It's the oldest continuous Folk Day parade and a New 0:08:00.640 --> 0:08:04.960 Year's tradition since nineteen oh one. New York City's controversial 0:08:05.040 --> 0:08:08.680 pricing plan for drivers coming into parts of Manhattan is 0:08:08.720 --> 0:08:11.200 set to take effect Sunday, but a federal judge said 0:08:11.240 --> 0:08:14.440 hold on. They want more information about the effects of 0:08:14.520 --> 0:08:18.760 congestion pricing on communities in New Jersey. Lisaid Daglian is 0:08:18.760 --> 0:08:21.680 an advocate for congestion pricing in New York who says 0:08:21.720 --> 0:08:23.800 the MTA plan can still move forward. 0:08:24.120 --> 0:08:27.600 It would be different responses that will have to happen 0:08:27.760 --> 0:08:28.760 over sometime. 0:08:30.080 --> 0:08:31.520 It will have started. 0:08:31.680 --> 0:08:36.680 But New Jersey lawmakers disagree. New Jersey Congressman Josh Gotdheimer. 0:08:36.600 --> 0:08:39.240 And the way New Jersey's lawyers are responding is when 0:08:39.280 --> 0:08:42.839 you remand back for answers and further study, New York 0:08:42.880 --> 0:08:43.640 can't go ahead. 0:08:44.440 --> 0:08:47.280 The judge set a deadline of January seventeenth for New 0:08:47.320 --> 0:08:50.640 York to respond. President elect Donald Trump lost a bid 0:08:50.679 --> 0:08:53.719 to overturn a five million dollar judgment against him for 0:08:53.760 --> 0:08:57.599 sexual abuse and defamation. A federal appeals scored uphill the 0:08:57.679 --> 0:09:01.440 damages awarded to e Gene Carrell. The columnists hailed the 0:09:01.440 --> 0:09:05.240 decision in an online post, writing twenty twenty four ends 0:09:05.280 --> 0:09:08.120 with a win. Carol accused Trump of raping her in 0:09:08.160 --> 0:09:11.760 a department store dressing room about thirty years ago. Global 0:09:11.760 --> 0:09:14.280 News twenty four hours a day and whenever you want 0:09:14.320 --> 0:09:17.000 it with the Bloomberg News. Now, I'm Michael Barn. This 0:09:17.120 --> 0:09:17.720 is Bloomberg. 0:09:17.760 --> 0:09:18.040 Karen. 0:09:18.160 --> 0:09:24.760 All right, Michael Barn, thank you time now for the 0:09:24.760 --> 0:09:27.880 Bloomberg Sports Update, brought to you by tries Dade Audie. 0:09:27.920 --> 0:09:29.040 We bring in Dan Schwartzman. 0:09:29.120 --> 0:09:31.680 Dan, good morning, Good morning, Karen. The line's improving to 0:09:31.760 --> 0:09:33.760 fourteen and two as a big road win in San 0:09:33.800 --> 0:09:37.360 Francisco GoF here's a. 0:09:37.240 --> 0:09:41.520 Little lateral to Williams saying he's down the sunline and 0:09:41.880 --> 0:09:46.280 co on for a touchdown. Almond Ross Saint Brown made 0:09:46.320 --> 0:09:50.839 the catch. He's done this before this year, Almen Ross 0:09:50.880 --> 0:09:54.600 Saint Brown, and this time the lateral for the touchdown. 0:09:56.080 --> 0:09:59.160 That's Chrissy vspn Lines beating the forty nine Ers forty 0:09:59.160 --> 0:10:02.319 to thirty four in match of last year's NFC Championship 0:10:02.320 --> 0:10:04.880 game won by the Niners as shared goff throws for 0:10:04.920 --> 0:10:07.440 three hundred and three yards and three touchdowns. The win 0:10:07.520 --> 0:10:09.920 by the Lions setting up a week eighteen Sunday night 0:10:10.000 --> 0:10:12.760 showdown versus the fourteen to two Vikings for both the 0:10:12.880 --> 0:10:15.280 NFC North title as well as the top seat in 0:10:15.320 --> 0:10:18.320 the NFC and a first round by heading into the playoffs. 0:10:18.520 --> 0:10:21.760 The loser will become the NFL's first fourteen win wild 0:10:21.760 --> 0:10:24.400 card team Nicks winner eighth in a row. They knock 0:10:24.400 --> 0:10:26.560 off the Wizards one twenty six to one oh six, 0:10:26.600 --> 0:10:29.520 Karl Anthony Towns leading the next for thirty points and 0:10:29.640 --> 0:10:33.360 thirteen rebounds, else Arad Nikola Jokich putting up a ridiculous 0:10:33.360 --> 0:10:36.600 thirty six points with twenty two rebounds and eleven assists 0:10:36.760 --> 0:10:38.679 and a Nuggets one thirty two to one to twenty 0:10:38.679 --> 0:10:41.160 one win over the Jazz, while the Cavaliers improved our 0:10:41.240 --> 0:10:43.920 league best twenty eight and four with a one to 0:10:43.960 --> 0:10:47.120 thirteen to ninety five win over the Warriors. College football 0:10:47.120 --> 0:10:50.319 playoffs resuming tonight in Glendale, Arizona, with the first to 0:10:50.400 --> 0:10:53.000 four quarter final matchups as the third seed Boise State 0:10:53.040 --> 0:10:56.079 battle six seed a Penn State at the Verbo Fiesta Bowl. 0:10:56.280 --> 0:10:59.520 Kickoff is scheduled for seven thirty pm Eastern time. Light 0:10:59.600 --> 0:11:02.720 schedule on the NHL Rangers, though lose their fifteenth game 0:11:02.720 --> 0:11:05.400 in the last twenty they fall to the Florida Panthers 0:11:05.440 --> 0:11:08.040 five to three. They remain in last place in the 0:11:08.080 --> 0:11:11.960 Metropolitan Division. That's your Bloomberg Sports update. I'm Dan Schwartzman, 0:11:12.200 --> 0:11:13.240 Karen and Amy. 0:11:15.120 --> 0:11:20.160 Coast to Coast on Bloomberg Radio nationwide on SYRIUSXM. 0:11:19.320 --> 0:11:22.200 And around the world on Bloomberg dot Com and the 0:11:22.280 --> 0:11:25.679 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:27.520 --> 0:11:31.439 And the Treasury Department says Chinese hackers have remotely accessed 0:11:31.600 --> 0:11:36.800 several Treasury Department workstations and unclassified documents. After it was 0:11:36.840 --> 0:11:40.640 able to compromise a third party software service provider. We're 0:11:40.720 --> 0:11:43.839 joined now by Bloomberg Radio and TV Markets correspondent Creedy 0:11:43.880 --> 0:11:46.480 Gupta to sort of fill us in on exactly what's 0:11:46.559 --> 0:11:49.000 going on here. Creedy, we're getting a little more information 0:11:49.080 --> 0:11:52.960 now about the cyber incident. So Chinese hackers have accessed 0:11:53.160 --> 0:11:57.920 Treasury Department workstations, there was a third party software provider 0:11:57.960 --> 0:11:59.920 that was sort of their doorway to this. Tell us 0:12:00.000 --> 0:12:01.119 what's going on here. 0:12:01.559 --> 0:12:04.800 Good morning, Amy. So Beyond Trust is that third party 0:12:04.920 --> 0:12:10.439 software provider basically sells access software cybersecurity products to the 0:12:10.520 --> 0:12:13.360 likes of the US Treasury and other federal government agencies 0:12:13.400 --> 0:12:16.000 as well. It's a contract that's worth more than four 0:12:16.240 --> 0:12:20.559 million dollars. That's according to data compiled by Bloomberg. But Amy, 0:12:20.559 --> 0:12:23.080 I think what's scary here is that this is a 0:12:23.520 --> 0:12:25.719 kind of notification that Beyond Trust gave to the US 0:12:25.760 --> 0:12:28.640 Treasury Department that there was some sort of hacking tied 0:12:28.720 --> 0:12:31.200 to China, as as you had just said, but that 0:12:31.280 --> 0:12:33.960 they also Beyond Trust also does business with other departments 0:12:34.040 --> 0:12:36.480 like the Department of Defense, Department of Veterans Affairs, the 0:12:36.480 --> 0:12:39.760 Department of Justice, just to name a couple of other agencies. 0:12:39.840 --> 0:12:42.760 So it's uncleared the extent to which this has been 0:12:42.920 --> 0:12:45.720 affected or the amount of customers that were really involved. 0:12:45.880 --> 0:12:48.040 But so far, all we know is that Beyond Trust 0:12:48.080 --> 0:12:51.360 had notified the Treasury that a certain amount of kind 0:12:51.360 --> 0:12:54.559 of data and contact information, et cetera from an undisclosed 0:12:54.600 --> 0:12:58.000 number of Americans was accessed by this hacker that they 0:12:58.000 --> 0:12:59.319 have now traced back to China. 0:13:00.160 --> 0:13:03.240 Now, this is coming right after US officials dealing with 0:13:03.240 --> 0:13:07.240 the fallout of another cyber espionage campaign access in those 0:13:07.240 --> 0:13:11.320 private texts and phone conversations of an unknown number of Americans. 0:13:11.360 --> 0:13:12.960 Are we going to see more of this? What's going 0:13:13.000 --> 0:13:13.439 on here? 0:13:14.040 --> 0:13:15.240 I mean, we don't know if we're going to see 0:13:15.280 --> 0:13:16.920 more of this. I mean, there seems to be a 0:13:17.040 --> 0:13:19.720 pattern developing, as you just laid out, But that's exactly 0:13:19.760 --> 0:13:22.640 the pattern that the Chinese government is trying to get 0:13:22.679 --> 0:13:24.520 ahead of, because we still don't know if this was 0:13:24.600 --> 0:13:26.760 associated with the Chinese government. At the end of the day, 0:13:26.800 --> 0:13:29.880 the embassy of the Chinese embassy over in Washington already 0:13:30.200 --> 0:13:33.120 kind of being very outspoken about this, saying, quote, spare 0:13:33.160 --> 0:13:37.520 attacks against China without any factual basis. The US needs 0:13:37.559 --> 0:13:40.600 to stop using cybersecurity to smear and slander China and 0:13:40.600 --> 0:13:44.559 stop spreading all kinds of disinformation about the so called 0:13:44.720 --> 0:13:46.960 Chinese hacking throat. Those are the words of the Chinese 0:13:46.960 --> 0:13:50.040 embassy in Washington, which really speaks to this trend. Amy, 0:13:50.080 --> 0:13:52.559 as you said that this has been coming out of 0:13:52.720 --> 0:13:55.559 out of at least been associated with China lately in 0:13:55.840 --> 0:13:58.120 the campaign you were talking about, and now with this 0:13:58.200 --> 0:14:01.440 leak as well. But again it's unclear who's actually behind it. 0:14:01.480 --> 0:14:04.600 There's just clear that the US government is exposed in 0:14:04.600 --> 0:14:06.720 a way that they may never thought they would be 0:14:06.720 --> 0:14:08.479 before and taking. 0:14:08.240 --> 0:14:10.959 A broader look at this, as you said very rightly, 0:14:11.000 --> 0:14:13.920 So we don't really know if this is specifically associated 0:14:14.160 --> 0:14:16.400 with the Chinese government, but it's sure not going to 0:14:16.400 --> 0:14:18.400 help relations between Washington and Beijing. 0:14:18.920 --> 0:14:21.320 They absolutely aren't at a time when we know not 0:14:21.360 --> 0:14:23.760 only Donald Trump, but even under the Biden administration have 0:14:23.840 --> 0:14:26.400 been looking at ways at the American economy in the 0:14:26.440 --> 0:14:29.560 way the American stock market, for example, in other parts 0:14:29.840 --> 0:14:33.440 of the American infrastructure are intertwined but also under threat 0:14:33.480 --> 0:14:36.200 with China. And remember this comes after not only a 0:14:36.240 --> 0:14:38.960 trade war looming between the United States and China and 0:14:38.960 --> 0:14:41.760 perhaps even more terrift than a new administration. But the 0:14:41.800 --> 0:14:45.720 idea that we're talking about things like how much debt 0:14:45.920 --> 0:14:48.920 China buys from the United States. We're talking about how 0:14:49.200 --> 0:14:51.720 Chinese companies can or cannot be listed on the New 0:14:51.800 --> 0:14:55.160 York Stock Exchange, on the NASAC, et cetera. Not to 0:14:55.240 --> 0:14:58.600 mention some of the kind of spyware and cybersecurity threats 0:14:58.640 --> 0:15:01.280 as we were just talking about, and other alliances that 0:15:01.280 --> 0:15:05.480 they're making internationally. Remember the partnership between China and Russia, 0:15:05.520 --> 0:15:08.160 between China and India, between China and the EU are 0:15:08.240 --> 0:15:10.440 all under the magnifying glass right now in terms of 0:15:10.520 --> 0:15:13.440 how that all affects the United States. And I think 0:15:13.480 --> 0:15:16.440 Donald Trump is going to kind of put that under 0:15:16.480 --> 0:15:17.800 an even hotter spotlight. 0:15:18.520 --> 0:15:21.480 Absolutely, And you mentioned that other agencies that use this 0:15:21.640 --> 0:15:25.440 third party vendor maybe at risk. It isn't clear yet, 0:15:25.480 --> 0:15:30.440 but that this third party vendor also is associated with 0:15:30.480 --> 0:15:33.960 other federal agencies. Fair enough, could this put a chilling 0:15:34.000 --> 0:15:37.440 effect on using these third party type contractors for something like. 0:15:37.400 --> 0:15:41.160 This, It absolutely could. And remember we are not only 0:15:41.160 --> 0:15:42.840 seeing this in the government space. We saw this in 0:15:42.840 --> 0:15:46.120 the corporate space as well. When the Microsoft outage with 0:15:47.480 --> 0:15:50.600 several kind of data and cybersecurity providers with CrowdStrike led 0:15:50.640 --> 0:15:53.000 to a global outage, a grounding of flights that the 0:15:53.000 --> 0:15:55.440 one in Stock exchange was affected. So this is something 0:15:55.480 --> 0:15:58.440 that's getting a little bit scarier. And Amy are sure 0:15:58.440 --> 0:16:01.080 you'll remember on the onset of the war Ukraine, for example, 0:16:01.080 --> 0:16:05.440 cybersecurity stocks did really, really well because of this anticipation 0:16:05.560 --> 0:16:07.840 that that cybersecurity product would be needed. 0:16:07.880 --> 0:16:08.640 You talk about AI. 0:16:08.760 --> 0:16:11.400 This is just another element where cybersecurity has to be 0:16:11.640 --> 0:16:13.960 kind of intertwined with that story. But in terms of 0:16:14.080 --> 0:16:16.320 using the software, you also have to talk about what 0:16:16.560 --> 0:16:18.920 actions the government is going to be using. And Newburger, 0:16:18.960 --> 0:16:23.400 who's the Deputy National Security Advisor for cyber and Emerging Technologies, 0:16:23.760 --> 0:16:28.080 said that the administration has actions planned hole Beijing accountable 0:16:28.320 --> 0:16:30.880 after moving ahead with a band on Chinese telicom in 0:16:30.920 --> 0:16:33.360 the United States, so that maybe something they expand upon. 0:16:33.640 --> 0:16:36.560 This is Bloomberg day Break, your morning podcast and the 0:16:36.680 --> 0:16:40.200 stories making news from Wall Street to Washington and beyond. 0:16:40.520 --> 0:16:42.920 Look for us on your podcast feed by six am 0:16:42.960 --> 0:16:47.080 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:16:47.400 --> 0:16:50.280 You can also listen live each morning starting at five 0:16:50.320 --> 0:16:52.920 am Wall Street Time on Bloomberg eleven three to zero 0:16:53.040 --> 0:16:55.920 in New York, Bloomberg ninety nine to one in Washington, 0:16:56.000 --> 0:16:59.280 Bloomberg ninety two to nine in Boston, and nationwide on 0:16:59.440 --> 0:17:01.680 serious XM Channel one twenty one. 0:17:02.000 --> 0:17:04.920 Plus listen coast to coast on the Bloomberg Business app 0:17:04.960 --> 0:17:08.040 now with Applecarplay and Android auto interfaces. 0:17:08.280 --> 0:17:11.280 And don't forget to subscribe to Bloomberg News Now. It's 0:17:11.320 --> 0:17:14.040 the latest news whenever you want it in five minutes 0:17:14.160 --> 0:17:17.280 or less. Search Bloomberg News Now and your favorite podcast 0:17:17.280 --> 0:17:21.400 platform to stay informed all day long. I'm Karen Moscow and. 0:17:21.400 --> 0:17:24.280 I'm Amy Morris. Join us again tomorrow morning for all 0:17:24.320 --> 0:17:26.520 the news you need to start your day right here 0:17:26.680 --> 0:17:27.880 on Bloomberg Daybreak