LA Faces High Winds as Fire Battle Continues; SEC Sues Elon Musk

Bloomberg Audio Studios, podcasts, radio news. 0:00:10.240 --> 0:00:13.440 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.440 --> 0:00:15.160 are the stories we're following today. 0:00:15.320 --> 0:00:18.239 Karen, we begin with the latest on the Los Angeles wildfires. 0:00:18.320 --> 0:00:21.080 Crews from as far away as Canada are still struggling 0:00:21.120 --> 0:00:24.200 to contain the massive blazes that broke out eight days ago. 0:00:24.720 --> 0:00:27.680 Now the same combination of high winds and low humidity 0:00:27.680 --> 0:00:29.960 that set them off in the first place is threatening 0:00:30.000 --> 0:00:33.000 the region again. LA Mayor Karen Bass says the next 0:00:33.000 --> 0:00:35.360 twenty four to forty eight hours will be critical. 0:00:35.720 --> 0:00:38.920 If you are told that you are in a warning zone. 0:00:39.280 --> 0:00:42.960 It would be advised that you actually take that opportunity 0:00:43.000 --> 0:00:45.880 to leave, get packed, get everything ready. 0:00:46.080 --> 0:00:49.040 Mayor Karen Bass says she's issued directives to help fast 0:00:49.080 --> 0:00:52.080 track the rebuilding, but first conditions on the ground need 0:00:52.120 --> 0:00:56.480 to improve. Palisades Fire incident meteorologist Rich Thompson says they're 0:00:56.480 --> 0:00:57.080 getting there. 0:00:57.280 --> 0:01:00.000 Critical fire re conditions, red flag warnings in effect untils 0:01:00.040 --> 0:01:03.440 six pm Wednesday evening. Now by Wednesday evening Wednesday night, 0:01:03.520 --> 0:01:06.160 I expect the critical conditions to diminish, and then for 0:01:06.280 --> 0:01:08.440 Thursday into the weekend, we're actually get back to a 0:01:08.440 --> 0:01:11.440 more normal weather powder here for this part of the country. 0:01:11.840 --> 0:01:14.320 As it stands now, the biggest fire in the Palisades 0:01:14.360 --> 0:01:17.679 is eighteen percent contained. The Eton Fire, which destroyed much 0:01:17.720 --> 0:01:20.959 of Altadena, is under thirty five percent containment. The death 0:01:21.000 --> 0:01:24.520 toll remains at twenty four Estimates of insured losses running 0:01:24.520 --> 0:01:27.440 as high as forty billion dollars well Nathan. 0:01:27.480 --> 0:01:30.080 The fires are also threatening to make the Los Angeles 0:01:30.120 --> 0:01:33.840 housing crisis even worse. Before the fires, only about five 0:01:33.920 --> 0:01:36.920 percent of LA apartments were vacant, with the median rent 0:01:37.240 --> 0:01:40.480 of twenty two hundred ninety nine dollars. Now more than 0:01:40.520 --> 0:01:43.759 twelve thousand buildings have been destroyed, many of them homes. 0:01:44.000 --> 0:01:47.560 One rental company that manages some of LA's priciest neighborhood 0:01:47.640 --> 0:01:50.520 says it's getting more than ten times as many calls 0:01:50.560 --> 0:01:53.520 as it did before the fires. The firm recently arranged 0:01:53.560 --> 0:01:56.480 a twelve month lease for one tenant in Beverly Hills 0:01:56.520 --> 0:01:59.800 for thirty five thousand dollars. A month after the fires, 0:01:59.800 --> 0:02:02.240 the owner raised the rent to forty thousand. 0:02:02.800 --> 0:02:04.760 Now to the latest on efforts for a truce in 0:02:04.800 --> 0:02:07.640 the Middle East, Israel and Hamas are now accusing one 0:02:07.680 --> 0:02:11.280 another of delaying a Gaza ceasefire aimed at exchanging hostages 0:02:11.280 --> 0:02:14.640 for prisoners and sending aid to the beleaguered Palestinian territory. 0:02:14.880 --> 0:02:17.320 While officials say an agreement for a six week pause 0:02:17.320 --> 0:02:20.120 in fighting is still likely soon, frequent failures to get 0:02:20.160 --> 0:02:24.200 a deal finalized have left everyone saying nothing is being 0:02:24.200 --> 0:02:27.520 taken for granted. CBS News previously reported that Israel and 0:02:27.520 --> 0:02:30.440 Hamas have agreed in principle to a ceasefire at. 0:02:30.280 --> 0:02:31.079 The Atlantic Council. 0:02:31.160 --> 0:02:34.000 Secretary of State Anthony Blincoln said he thinks they're close. 0:02:34.600 --> 0:02:37.239 I believe we will get a ceasefire, and whether we 0:02:37.320 --> 0:02:40.360 get there in the remaining days of our administration or 0:02:40.440 --> 0:02:43.600 after January twentieth, I believe the deal will follow closely 0:02:43.639 --> 0:02:45.639 the terms of the agreement that President Biden put forward 0:02:45.680 --> 0:02:49.000 last May, and our administration rallied the world behind. 0:02:49.440 --> 0:02:51.920 Secretary Blincoln added, the sides are discussing a pause to 0:02:51.919 --> 0:02:54.440 allow for the exchange of hostages and a boost in aid. 0:02:54.760 --> 0:02:57.280 During the truce, Israel and Hamas will start a second, 0:02:57.440 --> 0:03:00.679 more serious round of indirect negotiations about ending the war 0:03:00.919 --> 0:03:02.280 and rebuilding the territory. 0:03:03.040 --> 0:03:06.720 Meanwhile, Nathan and Washington President elect Donald Trump's pick for 0:03:06.880 --> 0:03:11.200 Defense Secretary, Pete Hankseth, appears on course to win confirmation 0:03:11.639 --> 0:03:15.079 after a half day Senate hearing. Bloomberg's Amy Morris is 0:03:15.080 --> 0:03:17.840 in Washington and has more on the heated hearing. 0:03:18.280 --> 0:03:22.600 New York Democratic Senator Kirsten Gillibrand questioned hag Seth's position 0:03:23.000 --> 0:03:24.400 on women in the military. 0:03:24.760 --> 0:03:27.760 You will have to change how you see women to 0:03:27.880 --> 0:03:29.600 do this job well, and I don't know if you 0:03:29.639 --> 0:03:30.480 are capable of that. 0:03:30.880 --> 0:03:34.760 And Virginia Democratic Senator Tim Caine questioned hag Seth's character. 0:03:35.000 --> 0:03:37.960 You had just fathered a child two months before by 0:03:37.960 --> 0:03:39.520 a woman that was not your wife. 0:03:39.640 --> 0:03:43.920 Senat Armed Services Committee chair, Republican Roger Wicker of Mississippi 0:03:44.160 --> 0:03:46.240 showed his support for the nominee. 0:03:46.280 --> 0:03:49.200 I'm confident that mister Hegseth, supported by a team of 0:03:49.240 --> 0:03:52.280 experienced top officials, will get the job done. 0:03:52.440 --> 0:03:55.280 Hag Seth himself laid out his objective for the Pentagon 0:03:55.440 --> 0:03:58.560 if he's confirmed. When President Trump chose me for this position, 0:03:58.600 --> 0:04:01.080 the primary charge he gave me was to bring the 0:04:01.160 --> 0:04:04.760 warrior culture back to the Department of Defense. Hag Seth 0:04:04.880 --> 0:04:07.760 does not need Democrats to win confirmation. But he can't 0:04:07.800 --> 0:04:11.120 lose more than three Republicans in Washington. Amy Moore as 0:04:11.120 --> 0:04:12.240 Bloomberg Radio. 0:04:12.320 --> 0:04:14.840 Amy, thanks. Turning to the economy now, A day after 0:04:14.880 --> 0:04:18.520 we learned US wholesale inflation unexpectedly cooled in December, we 0:04:18.560 --> 0:04:21.880 get another reading this morning. Consumer prices are forecasts to 0:04:21.880 --> 0:04:24.960 have risen four tenths of one percent last month. Let's 0:04:24.960 --> 0:04:27.000 get a preview from Bloomberg's Michael McKee. 0:04:27.240 --> 0:04:30.200 The change in the consumer price index usually doesn't match 0:04:30.279 --> 0:04:34.159 the change in producer prices, so yesterday's surprisingly tame PPI 0:04:34.279 --> 0:04:37.480 report probably tells us very little about what we'll see today. 0:04:38.080 --> 0:04:41.920 Investors and Fed officials will be watching housing costs, in particular, 0:04:42.040 --> 0:04:45.800 after housing inflation finally appeared to start cooling in November. 0:04:46.200 --> 0:04:49.440 If that continues, it's good news for the inflation outlook. 0:04:49.640 --> 0:04:53.799 Also under scrutiny used cars, food and energy, and airline fares. 0:04:54.160 --> 0:04:56.440 Nothing but a huge miss high or low would get 0:04:56.440 --> 0:04:59.520 Fed officials to consider changing their plan to hold rate 0:04:59.600 --> 0:05:02.919 steady at their January meeting. Michael McKee, Bloomberg Radio. 0:05:03.160 --> 0:05:04.200 All right, Michael, thank you. 0:05:04.240 --> 0:05:04.400 Well. 0:05:04.400 --> 0:05:07.599 On Wall Street, big bank earnings begin with Goldman Sachs 0:05:07.680 --> 0:05:11.360 City Group JP Morgan Chase and Wells Fargo. This morning, 0:05:11.400 --> 0:05:13.919 we get more on what to expect from Goldman with 0:05:13.960 --> 0:05:17.640 Bloomberg Intelligence senior Global Banks analyst Allison Williams. 0:05:17.760 --> 0:05:22.880 Ohman sachs they may post the strongest EPs growth compared 0:05:22.880 --> 0:05:26.680 to a year ago, as well as Morgan Stanley. Both 0:05:26.720 --> 0:05:30.000 of the banks are focused on the capital markets business, 0:05:30.400 --> 0:05:35.200 but Goldman is also benefiting from a honed focus. Much 0:05:35.200 --> 0:05:37.760 of the changes that they made last year have helped 0:05:37.760 --> 0:05:41.040 them sort of return to their core institutional strength, and 0:05:41.080 --> 0:05:44.560 we expect that they're going to show benefit from those 0:05:44.600 --> 0:05:48.200 trends as well as momentum into the first quarter, especially 0:05:48.240 --> 0:05:51.880 for their leading equities trading revenue as well as the 0:05:52.000 --> 0:05:52.839 M and A business. 0:05:53.040 --> 0:05:57.080 Bloomberg Intelligence Senior Global Banks analyst Allison Williams expects Goldman 0:05:57.160 --> 0:05:59.600 earnings at seven thirty am Wall Street Time. 0:06:00.000 --> 0:06:02.800 Well Karen Elon Musk is being sued by the Securities 0:06:02.839 --> 0:06:05.919 and Exchange Commission. The agency is accusing Musk of failing 0:06:05.960 --> 0:06:09.560 to timely disclose a major purchase of Twitter shares before 0:06:09.560 --> 0:06:12.240 he took over the social media platform. We get more 0:06:12.240 --> 0:06:13.560 from Bloomberg's Megan Howard. 0:06:13.920 --> 0:06:17.120 The agency is alleging that Musk waited to disclose his 0:06:17.279 --> 0:06:20.080 acquisition of Twitter shares in order to build his position 0:06:20.160 --> 0:06:24.480 at lower prices. They are also saying that must deliberately 0:06:24.560 --> 0:06:27.560 ignored a deadline to publicly disclose that he acquired more 0:06:27.560 --> 0:06:29.919 than a five percent stake in the company early in 0:06:29.960 --> 0:06:32.279 twenty twenty two, and this is actually something that he 0:06:32.320 --> 0:06:36.320 had previewed in a letter last month. So the agency 0:06:36.320 --> 0:06:39.760 has officially filed that lawsuit in federal court as of today. 0:06:39.920 --> 0:06:42.560 And Bloomberg's Megan Howard says the SEC is seeking a 0:06:42.600 --> 0:06:45.640 civil penalty and for Musk to return profits made from 0:06:45.720 --> 0:06:46.720 his stock purchases. 0:06:47.200 --> 0:06:52.159 Well. Nathan Elon musk Space company SpaceX has had another 0:06:52.400 --> 0:07:01.000 landmark launch three two one Dignition and John go Hi Bay, 0:07:03.440 --> 0:07:06.000 a Falcon nine rocket with a pair of commercial satellites 0:07:06.000 --> 0:07:08.720 on board, took off from the Kennedy Space Center overnight. 0:07:08.760 --> 0:07:11.960 Both the satellites are carrying lunar rovers heading into the 0:07:11.960 --> 0:07:15.920 private sector moon race. One from Texas based Firefly Aerospace 0:07:16.040 --> 0:07:18.640 is named Blue Ghost. It'll attempt at moon landing in 0:07:18.680 --> 0:07:22.239 forty five days. The other is owned by Tokyo's Eye Space. 0:07:22.320 --> 0:07:25.320 The Hakuto R probe will try for its second trip 0:07:25.360 --> 0:07:31.720 to the Moon after a field attempt last April. Time 0:07:31.760 --> 0:07:33.200 now for a look at some of the other stories 0:07:33.240 --> 0:07:35.040 making news in New York and around the world. And 0:07:35.040 --> 0:07:38.520 for that we're joined by Bloomberg's John Tucker. John, Good morning, Yeah, Good. 0:07:38.360 --> 0:07:41.960 Morning, Karen. New York Governor Kathy Hochel proposing a middle 0:07:42.040 --> 0:07:44.640 class tax cut. Let's get more in the story. This 0:07:44.640 --> 0:07:46.680 morning from Bloomberg's Charlie pellan. 0:07:46.600 --> 0:07:49.400 Word came in her State of the State address, focusing 0:07:49.440 --> 0:07:51.120 on pocketbook concerns. 0:07:51.440 --> 0:07:55.000 First, I'm calling for a sweeping middle class tax cut. 0:07:55.120 --> 0:07:57.440 Benefiting eight point three million. 0:07:57.160 --> 0:08:00.160 Taxpayers making less than three d and twenty three two 0:08:00.240 --> 0:08:01.240 thousand dollars. 0:08:01.240 --> 0:08:04.880 The speech outlined a range of proposals aimed at reducing 0:08:04.920 --> 0:08:07.560 the cost of living in one of the most expensive 0:08:07.600 --> 0:08:12.560 states while expanding social services and reducing crime in New York, 0:08:12.680 --> 0:08:14.960 Charlie Bloomberg radios. 0:08:14.520 --> 0:08:17.560 Were this morning that Russia launched a massive aerial attack 0:08:17.600 --> 0:08:21.320 against Ukraine. The AP reports that force Ukraine to introduce 0:08:21.360 --> 0:08:24.840 preventative power cuts in the middle of winter. South Korean 0:08:24.880 --> 0:08:28.760 investigators arrested President yunsukiel today after launching a pre dawn 0:08:28.800 --> 0:08:32.200 operation to bring the impeached leader in for questioning. This 0:08:32.320 --> 0:08:35.960 comes over his short lived martial law declaration, and TikTok 0:08:36.040 --> 0:08:39.079 reportedly plans has shut off its app for US users 0:08:39.120 --> 0:08:41.800 on Sunday. That's the day it'll be banned unless the 0:08:41.960 --> 0:08:46.120 Supreme Court intervenes. Where the enormity of the destruction in 0:08:46.160 --> 0:08:49.600 southern California has quickly snuffed out all festiveness in the 0:08:49.600 --> 0:08:54.360 movie industry's high season of celebration. The Oscars remain as scheduled, 0:08:54.400 --> 0:08:57.719 but it's certain they'll be transformed due to the wildfires. 0:08:57.960 --> 0:09:01.040 Some telethon like element also seems sure to accompany the 0:09:01.040 --> 0:09:04.360 Oscars In recent days, many throughout the industry a voice 0:09:04.360 --> 0:09:08.839 suggestions for how that broadcast could be reconsidered. Global news 0:09:08.880 --> 0:09:10.720 twenty four hours a day, whenever you want it with 0:09:10.800 --> 0:09:11.600 Bloomberg News. 0:09:11.600 --> 0:09:11.760 Now. 0:09:11.800 --> 0:09:13.840 I'm John Tucker and this is Bloomberg. 0:09:13.960 --> 0:09:14.240 Karen. 0:09:14.480 --> 0:09:21.280 All right, John Tucker, thank you time now for the 0:09:21.280 --> 0:09:24.000 Bloomberg Sports Update, brought to you by Tri State Outie. 0:09:24.040 --> 0:09:26.160 Here's John Stashaur, John, Good morning. 0:09:25.920 --> 0:09:26.600 Good morning, Karen. 0:09:26.640 --> 0:09:29.600 It was forty years ago that Saint John's and Georgetown 0:09:29.640 --> 0:09:32.079 played at the Garden, one of the most hyped college 0:09:32.120 --> 0:09:34.520 basketball games ever. They were ranked one two in the country. 0:09:34.559 --> 0:09:37.680 The Hoyas won that game. They'd hardly won the previous 0:09:37.720 --> 0:09:40.920 three seasons, a Big East record of four and fifty eight, 0:09:40.960 --> 0:09:44.080 but they're much better this season and at MSG Georgetown 0:09:44.120 --> 0:09:46.320 had a fourteen point lead early in the second half, 0:09:46.320 --> 0:09:49.679 Saint John's responded a nineteen to two run to win 0:09:49.800 --> 0:09:52.400 sixty three point fifty eight. Coach of the Red Storm, 0:09:52.480 --> 0:09:54.360 Rick Patino was on NBC for you. 0:09:54.360 --> 0:09:56.560 Don't have a great night, they come back and win. 0:09:57.080 --> 0:09:59.559 It tells you who you are and what you're all about. 0:10:00.160 --> 0:10:03.240 And these guys were about winning and that's all that counts. 0:10:03.480 --> 0:10:05.319 They came out and said, don't worry about it. We're 0:10:05.360 --> 0:10:07.240 gonna get a single digits, will win this game. 0:10:07.280 --> 0:10:09.600 And see John's now fifteen and three, six and one 0:10:09.600 --> 0:10:11.520 of the Big East. Auburn's ranked number one, which is 0:10:11.559 --> 0:10:14.199 the second time ever Tigers meet Mississippi State. By twenty two, 0:10:14.640 --> 0:10:17.920 they're sixteen and one. Third ranked. Duke now seventeen and two, 0:10:18.080 --> 0:10:20.679 beat Miami by thirty five the Nets, but just their 0:10:20.760 --> 0:10:23.240 fifth win since November one, thirty two to one to 0:10:23.280 --> 0:10:25.800 fourteen in Portland. Nick's play tonight in Philadelphia. They may 0:10:25.840 --> 0:10:28.480 be without Karl Anthony Towns. He hurt his thumb in 0:10:28.520 --> 0:10:31.000 the game. This past Monday, all three New York hockey 0:10:31.000 --> 0:10:34.320 teams lost. Rangers at Colorado three two in overtime. The 0:10:34.320 --> 0:10:37.040 Acid tie the game of the minute. Thirteen left Islanders 0:10:37.080 --> 0:10:39.080 got shut out by Ottawa two nothing. The Devil's lost 0:10:39.080 --> 0:10:41.080 to Florida two to one in the shootout. First place 0:10:41.160 --> 0:10:44.480 Capitals three nothing went over. Anaheim Bruins beat Tampa Bay 0:10:44.520 --> 0:10:46.920 six to two. Round to the Australian Open saw a 0:10:47.040 --> 0:10:49.960 second straight four set victory for the ten time champion 0:10:50.040 --> 0:10:53.840 Novak Djocovis. Carlos Alca has lost only five games straight 0:10:53.880 --> 0:10:56.160 set wins for the women's top seed, Arena Sablanca as 0:10:56.200 --> 0:10:59.000 well as Jess Pagoula and Coco Got. The second week 0:10:59.040 --> 0:11:02.520 of TGL That's Tomorrow's Golf League played indoors, some real, 0:11:02.600 --> 0:11:05.360 some simulated. Tiger Woods one of the founders, and he 0:11:05.480 --> 0:11:08.120 played not all that well. Tiger's team lost the fifty 0:11:08.160 --> 0:11:12.319 hole match twelve to one. Johns Dashieller, Bloomberg Sports Karen Nathan. 0:11:14.440 --> 0:11:18.439 Coast to Coast on Bloomberg Radio, nationwide on Sirius. 0:11:18.240 --> 0:11:21.440 XM, and around the world on Bloomberg dot Com and 0:11:21.480 --> 0:11:22.800 the Bloomberg Business app. 0:11:23.120 --> 0:11:24.679 This is Bloomberg Daybreak. 0:11:24.840 --> 0:11:27.839 Good morning, I'm Nathan Hager. Another morning with little led 0:11:27.920 --> 0:11:30.280 up to the dangerous weather that has fueled the Los 0:11:30.320 --> 0:11:33.280 Angeles wildfires for more than a week. Now, even more 0:11:33.400 --> 0:11:36.280 challenging conditions are in the forecast for today and the 0:11:36.320 --> 0:11:38.840 warning from La Mayor Karen Bass. 0:11:39.280 --> 0:11:41.640 We are not out of this crisis yet. 0:11:41.840 --> 0:11:44.880 We still have another twenty four to forty eight hours 0:11:45.080 --> 0:11:47.720 and so Angelino's please be safe. 0:11:48.000 --> 0:11:50.880 Joining us now for the update Bloomberg News Senior editor 0:11:50.920 --> 0:11:54.040 Bill Ferries. So, Bill, where do things stand now? What 0:11:54.120 --> 0:11:56.080 kind of conditions are we expecting today? 0:11:56.120 --> 0:11:58.800 Good morning, Good morning, Nathan. 0:11:58.840 --> 0:12:02.400 Yeah, there's really been no reprieve for residents of Los Angeles, 0:12:02.400 --> 0:12:06.280 southern California or the firefighters out still battling these blazes. 0:12:07.040 --> 0:12:10.040 With those Santa Ana wins continuing to gust up to 0:12:10.160 --> 0:12:11.280 sixty miles an hour. 0:12:11.880 --> 0:12:12.439 There were some. 0:12:12.520 --> 0:12:17.480 New fires that started over the last day. Firefighters were 0:12:17.559 --> 0:12:21.520 largely able to contain or extinguish those. But when you're 0:12:21.520 --> 0:12:24.200 talking about the two main fires, they eat and fire 0:12:24.559 --> 0:12:28.160 that's only thirty five percent contained still, and the Palisades 0:12:28.200 --> 0:12:32.160 fire even in worse shape eighteen percent contained, so a 0:12:32.160 --> 0:12:35.199 lot of work still ahead. There is some hope that 0:12:35.640 --> 0:12:39.440 humidity levels at least will be picking up later in 0:12:39.480 --> 0:12:42.160 the week and maybe the winds dying down a little bit. 0:12:42.240 --> 0:12:47.319 That's important in terms of helping the vegetation not become 0:12:47.440 --> 0:12:50.800 quite as dry. But there are already some concerns about 0:12:50.840 --> 0:12:53.200 weather winds might be picking up about a week from 0:12:53.200 --> 0:12:57.600 now when the weather conditions shift again. So still very 0:12:57.600 --> 0:13:02.000 tough time. You've got eighty eighty eight thousand residents under 0:13:02.000 --> 0:13:06.480 evacuation orders and two million people in that region facing 0:13:06.520 --> 0:13:07.839 extreme fire conditions. 0:13:08.240 --> 0:13:11.319 Wow, and it sounds as though the resources that are 0:13:11.320 --> 0:13:15.560 being put to bear against these fires are really overwhelming 0:13:15.679 --> 0:13:19.479 now firefighters from as far away as Mexico and Canada. 0:13:19.559 --> 0:13:23.240 Is there still a question about whether there's enough resources 0:13:23.280 --> 0:13:23.760 going into this. 0:13:25.720 --> 0:13:29.520 It seems an issue of the resources than just the 0:13:29.559 --> 0:13:32.360 scale of the of what they're facing at this point. 0:13:32.960 --> 0:13:36.280 It's you know, it's really the conditions are really not 0:13:37.880 --> 0:13:41.160 favorable to the firefighters at this point. It haven't been. 0:13:41.240 --> 0:13:45.199 You have these strong winds continuing to blow. Those can 0:13:45.280 --> 0:13:50.320 really fueling those fires and keep them kind of moving along. 0:13:50.559 --> 0:13:54.640 So it's less it seems less an issue with the resources, 0:13:54.679 --> 0:13:59.000 whether it's personnel or water, than just the kind of 0:13:59.080 --> 0:14:03.920 the huge, the huge conditions that they are up against 0:14:03.960 --> 0:14:05.360 at this point. 0:14:05.160 --> 0:14:07.400 Just as shift gears. Another major story I know you're 0:14:07.480 --> 0:14:12.000 following is this Securities and Exchange Commission lawsuit that Elon 0:14:12.120 --> 0:14:16.079 Musk is now facing over his disclosures ahead of the 0:14:16.360 --> 0:14:20.560 Twitter buyout. Is this the kind of case that we 0:14:20.560 --> 0:14:24.040 were expecting the SEC to make against Musk, given that 0:14:24.080 --> 0:14:26.560 he's really been under scrutiny for quite some time now. 0:14:27.720 --> 0:14:27.920 Yeah. 0:14:28.000 --> 0:14:30.640 I mean, Musk did provide a hint of this in 0:14:30.680 --> 0:14:35.120 December when he released a letter he had received from 0:14:35.160 --> 0:14:38.160 the SEC. It's really hard to know whether this is 0:14:38.440 --> 0:14:42.040 kind of more of a symbolic parting shot by the 0:14:42.080 --> 0:14:47.680 outgoing Bided administration and the SEC chief, or whether it 0:14:47.680 --> 0:14:49.720 will really have an impact. I mean, the crux of 0:14:49.760 --> 0:14:53.960 their argument is that Musk, when he was he passed 0:14:53.960 --> 0:14:57.840 this five percent ownership threshold in Twitter in late March 0:14:57.880 --> 0:15:02.000 twenty twenty two, that he did not let the public 0:15:02.080 --> 0:15:05.360 let investors know as quickly as he should have that 0:15:05.480 --> 0:15:10.560 he was becoming a large stakeholder in the company in 0:15:10.640 --> 0:15:13.880 that time. When that information wasn't public, he continued to 0:15:13.880 --> 0:15:17.240 buy hundreds of millions of dollars in shares. If investors 0:15:17.240 --> 0:15:20.480 had known Elon Musk was there doing that, they probably 0:15:20.480 --> 0:15:23.200 would have gotten a higher price. That's what the SEC 0:15:23.280 --> 0:15:25.800 is saying, that investors were built of about one hundred 0:15:25.800 --> 0:15:28.880 and fifty million dollars. But whether that case is something 0:15:28.920 --> 0:15:31.640 that goes forward in the next administration when you have 0:15:31.680 --> 0:15:33.840 a new SEC share, that's something we're going to have 0:15:33.840 --> 0:15:34.680 to wait and find out. 0:15:34.960 --> 0:15:37.920 This is Bloomberg Day Break, your morning podcast on the 0:15:38.000 --> 0:15:41.480 stories making news from Wall Street to Washington and beyond. 0:15:41.760 --> 0:15:44.160 Look for us on your podcast feed by six am 0:15:44.200 --> 0:15:47.560 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:15:47.800 --> 0:15:50.640 You can also listen live each morning starting at five 0:15:50.680 --> 0:15:53.400 am Wall Street time on Bloomberg eleven three to zero 0:15:53.400 --> 0:15:56.320 in New York, Bloomberg ninety nine to one in Washington, 0:15:56.360 --> 0:15:59.920 Bloomberg ninety two nine in Boston, and nationwide on Seri 0:16:00.520 --> 0:16:02.080 XM Channel one twenty one. 0:16:02.480 --> 0:16:05.200 Plus listen coast to coast on the Bloomberg Business app 0:16:05.240 --> 0:16:08.440 now with Apple CarPlay and Android auto interfaces, and. 0:16:08.400 --> 0:16:11.360 Don't forget to subscribe to Bloomberg News Now. It's the 0:16:11.440 --> 0:16:14.600 latest news, whenever you want it in five minutes or less. 0:16:14.840 --> 0:16:17.920 Search Bloomberg News Now on your favorite podcast platform to 0:16:17.960 --> 0:16:21.520 stay informed all day long. I'm Karen Moscow. 0:16:21.240 --> 0:16:23.760 And I'm Nathan Hager. Join us again tomorrow morning for 0:16:23.840 --> 0:16:25.760 all the news you need to start your day right 0:16:25.760 --> 0:16:27.240 here on Bloomberg debray