Mamdani Sworn In as NYC Mayor; US Sanctions Chinese Companies, Tankers With Venezuela Links

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 will have more on the markets as we
kick off the first trading day of twenty twenty six.
But we begin with a new era in New York politics.
Zoron Mumdani is officially in office and will lead New
York City for the next four years. We get more
from Bloomberg's John Tucker.
Good Morning, John, Good morning, Nathan. A thirty four year
old Democratic socialist born in Uganda, Mamdani becomes the city's
first mayor of South Asian descent, its first Muslim mayor,
and the youngest leader of the metropolis of nearly eight
and a half million people in more than a century.
The work, my friends, has only just begun.
Thank you with no apologies. During his inauguration, he laid
out his agenda.
City Hall will deliver an agenda of safety, affordability, an
abundance where government looks and lives like the people it represents.
He detailed many of the campaign promises that earned him
a decisive victory, including free childcare and bus transportation as
well as a vout of freeze rent for tenants and
stabilized apartments, and now comes the hard part. The price
tag for his universal childcare program may reach six billion
dollars a year, which would be funded through the imposition
of additional taxes on corporations and millionaires. But many any
new tax increase would require approval from Albity and Governor
Kathy Hockel, who has vowed not to raise taxes, and
Mamdani's promise to freeze rents in the city's rent stabilized
departments faces significant hurdles after the former mayor Eric Adams
named four members to the board that sets rents in
those units and as awarding to those who believed he
might moderate his positions after taking office. His inauguration featured
speeches by two of the US's most liberal members of
con Representative Alexandria Acazio Cortes and Senator Bernie Sanders. In
New York, I'm John Tucker Bloomberg Radio.
All right, John, thank you all. Rising healthcare costs are
now a pressing issue for millions of Americans. As a
New Year's Day enhanced tax credits that cut premium costs
for the vast majority of people with Affordable Care Act
plans have expired. Democrats forced a forty three day government
shutdown over the issue, but it wasn't enough to save
the subsidies. Pangaea Policy founder Terry Haynes says he thinks
lawmakers will find a way toward a solution.
You will see a lot of effort in the winter,
maybe even into the spring, to battle between trying to
keep the subsidies in place versus replacing the subsidies with
some sort of alternative tax favored account, whether it be
an HSA, whether it be a Health Freedom Account as
the President has talked about.
And that's Pangaea Policy founder Terry Haynes. But till then,
the health researcher case Ff estimates most Obamacare enrollies will
see their premiums rise on average one hundred and fourteen
percent this year. An analysis from the Urban Institute and
Commonwealth Fund projects four point eight million Americans will drop
their coverage without the subsidies.
Turned to geopolitics now, Karen, because the US is continuing
to ramp up the pressure on Venezuela. Let's get the
details from Bloomberg, Zerka Herskowitz.
The Trump administration has slapped sanctions on four companies based
in Hong Kong and mainland China with ties to Venezuela's
oil industry. It's also imposed penalties on four tankers connected
to those firms that it accuses of evading restrictions. This
comes as the US launches more strikes on purported drug
trafficking boats. US Southern Commands says it hit three more
vessels on Tuesday, killing three people, and it follows a
CIA led strike last week on a Venezuelan docking area
that the Trump administration believes was used by cartels. Venezuelan
President Silas Maduro says he's open to negotiating with the
US to combat drug trafficking, but he reiterated in a
New Year's Day interview that the US is trying to
force him from power and gain access to Venezuela's oil reserves.
Erica Herskowitz Bloomberg Radio.
All Right, Erica, thank you. President Trump pledged in now
Late Night is social media posts that the US will
come to the rescue of Iranian protesters if they're attacked
by Islamic Republic authorities. The post comes after protests erupted
this week into ran after the currency slumped to a
record low. Demonstrations have since spread to other parts of
the country, setting off clashes between civilians and security forces.
We want to turn down, Karen to the latest on
a tragedy in Switzerland. Officials there say about forty people
have died in a fire at a ski resort bar
where partygoers were celebrating the new year. They estimate more
than one hundred others were injured after flames ripped through
the bar the popular alpine resort craal Montana. Swiss President
Guy palmer Law says it's one of the worst tragedy
his country has ever experienced.
Their lives should be honored for what they were promise
energy a part of our shared future. We owe it
to them to respect them. We owe it to that
memory to make sure that such a tragedy never happens again.
That was Swiss President Guy parmer Law speaking through an interpreter.
There.
Eyewitnesses tell French media a sparkler in a bottle ignited
the ceiling.
Well, Nathan, we turned out to the markets where futures
are higher as we kick off the new year. Global
stocks are coming off their strongest years since twenty nineteen,
supported by expectations of stronger earnings and optimism around AI.
Christina Hooper, as chief market strategistic Man Group, I.
Think we have to anticipate more volatility, and in fact
I would expect some kind of significant sell off earlier
in the year, foreshadowing an economic downturn, arguably a modest recession,
and then are recovery. So I certainly think stock US
stocks could eke out gains next year, maybe even as
much as a ten percent gain next year, but it
will not be an easy path to the end of
the year.
And that's Man Groups Christina Hooper. The S and P
five hundred rows sixteen percent and twenty twenty five, a
gain which follows surgism more than twenty percent in the
two prior years.
And despite the rise in futures to kick off this
trading year, Karen History suggests caution. Market research firm Bespoke
Investment Group says since nineteen fifty three, the S and
P five hundred's medium change to kick off the new
year has been a drop of three tenths of one percent.
The stock market has traded lower on the first trading
day of each of the past three years well.
Nathan gold and silver are advancing today, building on their
best annual performance since nineteen seventy nine. Goldman Sachs says
it's base case for gold is a rally to forty
nine one hundred dollars an ounce. Right now, it is
trading at four thousand, three hundred and ninety eight dollars
announced that is comex gold silver currently spots, silver is
at seventy four dollars forty seven cents announce, sets up
almost four percent, and aluminum touched three thousand dollars a
ton for the first time in more than three years
due to a tightening supply outlook and bets on long
term demand.
And then when it comes to fixed income, Karen treasuries
are falling to start the new year. The yield on
thirty year bonds is rising to its highest level since
early September. The move comes after data showed applications for
US unemployment benefits fell last week to one of the
lowest levels over the past year.
And in Asia overnight, Nathan shares a buy Do rose
more than nine percent. The Beijing Firms artificial intelligence chip
unit has filed for a Hong Kong initial public offering
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 bar Michael,
good Morning.
Good morning, Karen. Parts of northern New York State got
clabbered with snow, and more is on the way. Bloomberg
Meeting Religions Craig Allen has the latest.
The western part of New York has two clusters with
very heavy bands of snow. The southwest portion of the state,
running up and down EYE ninety from just south of
Buffalo down towards Jamestown. This area could see anywhere from
another eight to sixteen inches of snow lake effects, snow
warnings and winter storm warnings remain in effect for that
area at least in two Saturday morning. Now north of that,
running along and north of I ninety and up and
down I eighty one, a tremendous amount of snowfall. Another
two to four feet of snow possible in areas that
have already had over two feet of snow.
Bloomberg Media, Religions Craig Allen. Parts of California are seeing
a wet start to the new year as a powerful
storm system moves through the area. A section of the
Pacific Coast Highway in Huntington Beach is closed due to flooding.
President Donald Trump defended his energy and health in an
interview with The Wall Street Journal. President Trump, who is
seventy nine, also disclosed that he had a CT scan,
not an MR, during an October examination. His physicians said
in a memo the White House released in December that
he had advanced imaging as a preventative screening for men
his age. The final parties of New Year's Day are done,
and now a lot of people are looking ahead to
Dry January, a resolution to take a break from alcohol.
Emergency and addiction specialist doctor Stephanie Whitmer says the benefits
of taking a month off from alcohol can show up
fairly quickly.
Even if you're just stopping for a month thirty thirty
one days. Some people report better sleep. Within days, they
can report improved energy, focus, better mood. Some report fewer
headaches and less reflux.
Doctor Whitmer warns that people who drink daily, or drink heavily,
or have a history of alcohol dependents should talk with
their doctor before trying dry January. Global News twenty four
hours a day and whenever you want it with Bloomberg
News Now, I'm Michael Barr, and this is Bloomberg Hearon.
Thanks Michael.
Time now for our Bloomberg Sports update, and for that
we bring in John stash Hour.
Thanks darn. A trio of college football playoff games, starting
with the Orange Bowl in Miami in a shutout win
for Oregon twenty three to nothing over Texas Tech. You
had four turnovers. The Rose Bowl in Pasadena was an
easy win for Indiana thirty eight to three over Alabama.
For an Endo Mendoza, the Heisman Trophy went only two
in complete passes. He threw three TD passes. And then
the Sugar Bowl in New Orleans, in a back and
forth game won by Ole Miss thirty nine to thirty
four over Georgia. The Rebels broke a tie on a
field goal with six seconds left. That's a Bloomberg Sports update.
Stay with us. More from Bloomberg day Break coming up after.
This Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business out. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. With a new era underway
in New York City. After the celebration of the inauguration,
the work of governing begins now for new Mayor Zorn Mumdanni,
and he is already staking his claim on how he
plans to do it.
I was elected as a democratic socialist, and I will
govern as a democratic socialist.
Joining us this morning after the inauguration of Mayor Mumdanni
as Bloomberg News Editor at Large, Marty Schanker unapologetic in
that nearly two hour inaugural celebration, Marty, what is the
message that the new mayor is sending to the business community,
to the country at large?
Good morning, Good morning.
Well, certainly he's not backing down at all from some
of the more ambitious promises he made in the campaign trail,
and he himself made the point that many times people
say you should reset those expectations, but he did not
do that. He doubled down on them.
In doubling down, is he going to be able to
govern as a democratic socialist?
Is the city?
Is the state going to let.
Him to the real issue, because as mayor of New
York he really doesn't have much control over funding and taxes.
That's in the hands of the governor, Nancy hocaland.
She has said that she.
Does not want to raise taxes, and the expense of
for instance, free daycare is going to have to be
paid for somehow. So it'll be really interesting to see
the dynamic between the governor and the mayor.
And it sets up the question about what kind of
challenges this new mayor is going to face, just with
having to put together a new budget in the next
few months. I mean, that's something that he's going to
have to do very quickly.
Here, Yes, he is, and it'll be very fascinating to
see how he manages to meet the very lofty expectations
that the City of New York has for him. He
still needs to figure out a way to do the
things he says he wants to do, for instance, free
and fast buses, and how you're going to pay to
make that happen is a real question for him.
And with the message that he put out there, you know,
celebrating the city's immigrant community in the speech as well,
does that set up a conflict with the Trump administration
After that you know pretty well celebrated Oval office meeting
that the then mayor elect had with the President in
the Oval office.
Yeah, it was really interesting that he only made a
fleeting reference to Donald Trump directly. I think he only
mentioned his name once, and he did have that very
surprisingly amicable meeting with the President last month. But you know,
he did make it clear he is not going to
allow the immigrant community in New York City to be
victimized by immigration policies of the administration, and there's is
a potential conflict there, but he seems to have a
very good relationship with the White House. We'll see how
along that lasts.
In our last thirty seconds, Should the city be concerned
about potential cuts to federal funding after what we heard
from Mayor mum Donnie yesterday.
Well, I think you have to be very cautious about that.
Donald Trump says things and doesn't follow through. One thing
you do have to worry about is his promise to
tax the rich. That was a very strong theme and
it'll be really fascinating to see whether the governor figures
out a way to do that.
This is Bloomberg day Break, your morning podcast on the
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