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Twice a week, we sit down with the perfect guest to answer these sort of questions and understand what's going on with the biggest stories in finance, economics, business, and market. I'm Tracy Alaway. And I'm Jill Wiesenthal. And we are the hosts of Bloomberg's All-Bots Podcast. Look us up wherever you get your podcasts. The All-Bots Podcast from Bloomberg.
Bloomberg Audio Studios. Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with a deadly plane crash involving a commercial airliner and an army helicopter at Reagan National Airport near Washington, D.C. Let's get the very latest now with Bloomberg's John Tucker John.
And Nathan American Airlines flight 5342 from Wichita, Kansas was on an approach for Landa get Reagan when it collided with a Zakorski H60 helicopter around 9 p.m. Eastern. Harry Schumann was driving home when he saw the plane falling from the sky. It was illuminated bright yellow underneath and there were the spray of sparks on the underside of the plane.
The jet was carrying 60 passengers and four crew members. Three soldiers were on board the helicopter. The first priority has been looking for survivors. However, remote the chance of finding anybody alive at this point. DC Fire and Rescue Chief John Donnelly. The water that we're operating in is about eight feet deep. There is wind. There is pieces of ice out there. So it's just dangerous and hard to work in.
The Bombardier CRJ701 twin engine jet manufactured in 2004 was inbound to Reagan National at an altitude of about 400 feet at a speed of about 140 miles per hour when it suffered a rapid loss of altitude over the Potomac River.
A few minutes before the landing, air traffic controllers did ask the arriving commercial jet if it could land on the shorter runway 33. Less than 30 seconds before the crash, air traffic controllers asked the helicopter if it had the arriving plane in sight. The controller made another radio call to the helicopter moments later, and seconds after that, the two collided.
Members of the U.S. figure skating team are on board. American Airlines flight 5342. There were athletes, coaches and family members who had been taking part to EA and the U.S. figure skating championships in Wichita. We have not had an airline crash more than 15 years in this country. A major one like this. I'm John Tucker Bloomberg radio. All right, John. Thank you. Well, American Airlines CEO Robert I some said the airline is working with emergency responders. He issued this video statement.
First and most importantly, I'd like to express our deep sorrow about these events. This is a difficult day for all of us at American Airlines, and our efforts now are focused entirely on the needs of our passengers, crew members, partners, first responders, along with their families and loved ones.
That was American Airlines CEO Robert Isum last night. Shares of American are down about 3 percent in early trading. The National Transportation Safety Board says they have sent a rapid response air accident investigation team to the site. President Trump criticized events in the run up to the collision in a truth social post, calling it a bad situation that looks like it should have been prevented.
And we will have much more on the plane crash throughout the program. But we now switch to the markets as investors react to the beginning of magnificent seven earnings. Shares of meta platforms are up 2 percent in early trading. The stock originally fell after hours after the Facebook owner forecast disappointing sales for the current quarter. But meta gained after CEO Mark Zuckerberg's comments about artificial intelligence on the company conference call.
This is going to be a really big year. Most of our long-term initiatives is going to be a lot clearer by the end of this year. In AI, I expect that this is going to be the year when a highly intelligent and personalized AI assistant reaches more than one billion people. And I expect MetaAI to be that leading AI assistant. Mark Zuckerberg told investors he thinks Meta will eventually spend hundreds of billions of dollars on AI infrastructure.
Well, Nathan shares a Tesla also on the rise. They're up 2.6 percent this morning. The company revealed plans to begin Robotaxy operations and forecast a sales recovery this year, fueling what Elon Musk predicted would be an epic period of growth for the electric vehicle maker. The comments largely sidestep the actual sales and profit results, which missed Wall Street estimates.
And on the flipside, Karen shares of Microsoft are down nearly 4%. The company says growth in its cloud computing business slow during the last three months of 2024. Microsoft is also ramping up spending on infrastructure for its AI products. Well, tech earnings continue today. Nathan with first quarter results from Apple out after the closing bell and Bloomberg's Tom Busby has a preview.
Despite a real slump in iPhone sales in China and being way behind other tech giants and rolling out AI products, Apple still forecast to post record results. With strong sales of the AI capable iPhone 16 here in the U.S., as well as continued strong demand for services like Apple Music and the App Store, Bloomberg is expecting revenues to rise 3.8%. Consensus calls for total revenue of 124.1 billion, earnings per share of $2.35.
Tom Busby, Bloomberg Radio. All right, Tom, thank you. Keeping an eye on shares of IBM, they are higher by about 7 percent. Big blue projected strong revenue growth in the new fiscal year and a jump in AI related bookings. And turning to earnings overseas, Nathan shares a Deutsche Bank are down three and a half percent. The bank's expenses rose 14 percent from a year ago. That's overshadowing a better than expected performance in its investment bank.
Turning to the economy now, Karen, the Federal Reserve voted unanimously to keep its benchmark rate on hold. Chair Jay Powell says the Fed will wait for further evidence of cooling inflation before adjusting interest rates again. With our policy stance significantly less restrictive than it had been in the economy remaining strong,
We do not need to be in a hurry to adjust our policy stance. Chairman Powell's press conference was followed by President Trump posting online that the Fed Chair had in his words done a terrible job on banking regulation and inflation.
Well, Nathan, let's turn to politics in Washington and a major reversal in the early days of President Trump's second term. The president has rescinded his order to freeze a wide array of federal grants, loans and financial assistance just days after his White House budget office announced it. Trump defended the order at his first bill signing yesterday. We are merely looking at parts of the big bureaucracy where there has been tremendous waste and fraud and abuse.
President Trump's order had already been temporarily blocked by a federal judge, but this might not be the end of it. A document seen by Bloomberg News says the White House is considering dozens of ways for the president to take greater control of the federal bureaucracy. They include challenging a 50-year-old law that limits the president's control of federal spending, making it easier to fire civil servants, curb pay, and rein in independent agencies.
Well, Karen, President Trump's nominee to lead the Department of Health and Human Services faced opposition from Democrats at the first of two confirmation hearings this week. Bloomberg's Amy Morris reports from Washington. Robert F Kennedy Jr. repeatedly insisted to lawmakers that he is not against vaccines. I support the measles vaccine. I support the polio vaccine. But the finance committee's Democrats led by Ron Wyden of Oregon were not convinced.
Anybody who believes that ought to look at the measles book you wrote saying parents have been misled into believing that measles is a deadly disease. That's not true. Kennedy, who had supported abortion rights while he was running for president, promised to back all the administration's positions on abortion. The hearing featured repeated interruptions from protesters. I am pro safety. But the room was also filled with several Kennedy supporters in Washington, Amy Morris Bloomberg Radio.
All right, Amy, thank you. Well, two more key Trump nominees will have confirmation hearings today. Tulsi Gabbard, the president's choice to be the director of national intelligence and Cash Patel, who is nominated to head the FBI, will bring you live coverage of Gabbard's hearing at 10 a.m. Wall Street time on Bloomberg Radio and the Bloomberg podcast page on YouTube.
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. The Justice Department is said to be in talks about dropping the corruption charges against New York City Mayor Eric Adams. So far no final decision has been made. Reports say talks between the DOJ and prosecutors
with the Southern District of New York had been preliminary. Last month, President said that Adams had been treated pretty unfairly by prosecutors and suggested he was considering issuing a pardon. Former U.S. Senator Bob Menendez has been sentenced to 11 years in prison for his conviction for accepting bribes of gold and cash and acting as an agent of Egypt.
before sentencing the New Jersey Democrat to fully address the judge saying he had lost everything he cared about except family outside the New York courthouse though a defiant Menendez aligned himself with President Donald Trump. Welcome to the Southern District of New York, the wild west of political prosecutions.
President Trump is right. This process is political and it's corrupted to the core. Two people convicted of bribing Menendez were sentenced to seven and eight years behind bars. Israel Defense Forces soldier Agam Burger abducted by Hamas in October of 2023 and held in Gaza since then has been released and is back in Israel. According to the IDF Burger,
is on her way to an initial reception point in southern Israel where she will be reunited with the parents. Earlier she was handed over to the Red Cross in Gaza who transferred her to Israeli forces in the Gaza script. Defense Secretary Pete Haggseth says the US had the right to do what is necessary to ensure access to the Panama Canal
adding to President Donald Trump's threats around the crucial trade waterway. Hexett, speaking to Fox News last night, also says he is establishing a task force to eliminate diversity, equity and inclusion policies in the U.S. military.
I think President Trump said it perfect in his inaugural address, which is what we're reinforcing in our directive as well. DoD will be colorblind and merit-based. Colorblind as it has been and merit-based as it should be, because as you know better than anybody, DEI sends the opposite signals. Global news 24 hours a day, and whenever you want it with Bloomberg News Now, I'm Michael Barr, and this is Bloomberg Karen. All right, Michael Barr, thank you.
Time now for the Bloomberg Sports Update brought to you by Tri-State Audi. Here's John Stashauer. John, good morning. Good morning, Karen Nixon. Nugget set the guard, and the Knicks get an early break when Denver star Nicola Yokos picked up his second foul, just 90 seconds in. He only played nine minutes for the first half, though. Denver in the third quarter went from down six to up eight. Knicks rallied. They won 122 to 112. Jalen Brunson 30 points, 15 assists. OG Anonobi scored.
23, four other Knicks also in double figures. It's five wins in a row for Coach John Thibodeau. Of the unselfishness, I think 33 assists, guys making plays, jailing 15 assists. And when you play like that, that gives your team a really strong spirit and togetherness. And I thought we were really connected and that's important to get those shots.
They'll look to keep it going Saturday night at the Garden against LeBron James and the Lakers next remain game behind the Celtics for second in the East in Boston. Kristoff's for Zinga scored 34 and a route of Chicago. Rare win for the Nets just their third of 2025 104 to 83 at Charlotte Cleveland one by 20 at Miami and Newark Devils with a five nothing blanking of the Flyers. Jake Allen 24 saves so they split.
A home at home with Philly, college hoops, top ranked Auburn, one at LSU, you can't beat the Paul Rutgers one at Northwestern. New Jets coach Aaron Glenn, who coached the defense that Detroit has hired as his defensive coordinator, Steve Wilkes, who didn't coach anywhere this past season, but Wilkes has coached
16 years for six NFL teams including two short stints as a head coach. Giants offensive coordinator Mike Kafka seen as one of two finalists to be the new head coach in New Orleans. His interview with the Saints went lasted nine hours with the favorite to get the Saints job is Eagles assistant Kellen Moore. Tommy Canely leaving the Yankee bullpen to pitch for Detroit. The Mets re-signed reliever Ryan Stanek. They start play today at Pebble Beach. The season they've used for Scotty Scheffler and Rory McElroy. John Stashdown where Bloomberg sports.
Want to understand exactly how interest rate rises will impact your mortgage? Or how New York City gets fresh produce? Or exactly what on earth was going on over at FTX before the whole thing collapsed?
Twice a week, we sit down with the perfect guests to answer these sort of questions and understand what's going on with the biggest stories in finance, economics, business, and market. I'm Tracy Alaway. And I'm Jill Wiesenthal. And we are the hosts of Bloomberg's All-Bots Podcast. Look us up wherever you get your podcasts. The All-Bots Podcast from Bloomberg.
coast to coast on Bloomberg radio nationwide on SiriusXM and around the world on Bloomberg.com and the Bloomberg business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. We return to the breaking news from overnight. A regional jet flown for American Airlines crashed with a military helicopter last night on approach to Reagan National Airport near Washington DC. It was on its way from Wichita, Kansas
It has sparked an all-out search and rescue effort in the Potomac River nearby. 64 people were on that American Airlines flight. Proning us now is Benedict Kamal, who heads up Bloomberg's global aviation coverage. Benedict, good morning. What is the latest that we know about this crash?
Good morning. So the latest is that we're still very much in the sort of salvage part of the operation. And this is a difficult exercise. We heard a couple of hours ago from some officials who had gathered at the airport and gave an update. There were members from the fire service. There was the mayor, the senator from Kansas where that plane originated, as you said. He was also there. And there's about 300 people on the ground, boats involved, ambulances, fire engines, and so on.
What we know at this point is that the incoming regional jet collided with the helicopter as it approached the runway. We don't know why that happened. We don't know who was to blame. So that's too early to say. The other thing crucially that we don't know at this point is whether there are survivors. The head of the fire brigade gave a
fairly grim assessment of the scene. He said this is very difficult to operate in. It's cold, it's icy, the water is murky, the plane is broken up. So it would really come down to a miracle if you find many if any survivors in this tragedy.
It has to be said that this is some of the most closely monitored and secure airspace in the United States, just across from the Pentagon, only a few miles from the White House and Capitol Hill. It has to raise a lot of questions now about how something like this could have happened so close to the seats of power in the United States.
Yes, you're absolutely right. I mean, it's not unusual for helicopters to be operating in this area, but clearly one of the aircraft was out of position. President Donald Trump weighed in a couple of hours with a message on his social media platform saying this is
an occurrence that should not have happened. He put, should we say, blame, or at least he pointed to the tower as being an area that should be investigated. But again, we are not in that phase of the investigation yet. The NTSB, the FAA, they're all on site. They have teams deployed that are there that will try and retrieve whatever they can be at the black boxes.
be it footage, as you said, this is a very heavily surveyed part of the country. There is somewhat murky, but still footage of the mid-air collision. So that might provide some clues as to who was out of position. There's the radio back and forth between air traffic control and the aircraft in the sky. So all of those clues will help paint a picture and provide better clues as to who was to blame and what can be done about this going forward.
Benedict, stay with us. We want to bring in Bloomberg's chief political correspondent, Anne-Marie Hoardern, who is with us now from Reagan National Airport. As I understand it, Anne-Marie, good morning. What can you tell us now about this search and rescue effort that, as I understand it, has been going on since last night when this crash first happened?
Yes, more than 300 individuals, hundreds really, part of this search and rescue team. What we know, according to CBS, that 18 bodies have been recovered after this fatal deadly crash around 9 p.m. last night. What I could tell you is that now that we move into this rescue mission,
A lot of questions are being asked. The National Transportation Safety Board will leave this investigation, of course, to be aided by the FAA. Last night, we did hear from a number of officials, including the just-worn and transportation secretary, Sean Duffy.
and Mayor of D.C., Muriel Bowser, is saying that they're going to provide another briefing this morning at 7.30 a.m. at D.C.A. So we will get another update from officials from local authorities this morning at D.C.A. The airport at the moment is closed till 11 a.m., potentially that can change. But that is the latest we have right now, as of course the nation is waking up to this heartbreaking news.
Yeah, it's going to be a crucial update coming up in just the next couple of hours here. But as you know, Anne Ray, the Potomac River is murky. It is cold. This is going to be a very difficult search and rescue operation. It raises a lot of questions about just what kind of survivability we could see following an incident like this. Absolutely, which is why this is so devastating to
to the entire nation to everyone involved families that were coming here last night with tons of questions, wanting to know whether, whether love them for anyone safe. The divers and refers responders that are out a part of this rescue mission or operating under extremely difficult conditions.
It's obviously dark. It's very cold. The water is very muddy. It's incredibly icy to the frigid temperatures that DC had last week. Remember last week the inauguration had to be moved inside because of those weather conditions. So it's incredibly, incredibly difficult right now. And there's just so many questions and just not enough answers.
And for a long time, Washingtonians, this is going to raise memories of the Air Florida crash into the 14th Street bridge that happened in 1982 more than 40 years ago. But Anne Marie, in this case, it doesn't look as though the weather, the ice on the wings back then was the culprit in this situation when we have a regional jet crashing into a military helicopter, apparently on a routine test flight. But obviously this anything but routine.
No, not anything but routine. I mean, this is Washington, DC. So you do have tons of military aircraft. We are just south of DCA from the Pentagon across the river from the nation's capital. And there is trainings that go on and go on at night. And that seems to be what this Black Hawk helicopter was doing with three US military personnel on board. This was training. But even the President of the United States, after the White House put out a statement,
last night that he was briefed on the matter. May God bless their soul. He talks about the individuals involved. He then took to truth social later in the evening. And really, you can tell his frustration about how he, he's asking the question, the President of the United States on Trump, why didn't the helicopter go up or down or turn?
Why didn't the control tower tell the helicopter what to do instead of asking if they saw the plane? You know, he's saying it's a bad situation and it feels like it could have been prevented, which is why there's going to be a ton of questions on what kind of radio frequency channels are these two individuals or these two helicopters in the passenger plane on?
what was the air traffic control, telling them at this time, you would think that this could never happen. But obviously, devastating tragedy did just 9 p.m. last night. And certainly a huge test for this young Trump administration, not just for the brand new transportation secretary, Sean Duffy, but for Pete Hagg Seth, who's in charge of that Sikorsky helicopter that's involved in this.
Absolutely. This is Sean Duffy was just born in yesterday. He had been on the job for not even 24 hours.
briefing reporters when it comes to Pete Haggsett. He's only been on the job for a few days. So of course, this is a huge test for this incoming administration. And we also know a number of individuals are just not in place yet because this is a transition. So they're dealing with a crisis when a lot of members of their team are just not yet in place because they are second week into a new administration.
Bloomberg chief political correspondent, Anne-Marie Horner, and with us this morning from Reagan National Airport, now the scene of a search and rescue operation following that deadly plane crash between the flight out of Wichita and the military helicopter.
out of Fort Belvoir, Virginia. Thanks for keeping us updated on that. We'll be looking to more of your reporting throughout the day. But now we want to bring back in Benedict Comble, who leads our global aviation coverage for Bloomberg News, raising so many of the questions now, Benedict, for officials, for rescuers, as far as how something like this could have happened. What are you looking for in terms of what could be gleaned out of this?
Well, to Anne-Marie's point that she raised just now, I think a lot of the focus will be on those fateful last moments and the sort of intercom between the tower and the aircraft, you know, what was said to whom, who was potentially out of position, that will
potentially provide an early clue as to who's to blame for this. The aircraft is equipped with what's commonly referred to black boxes. Those are two devices, one that records anything that's said in the cockpit as well as noises. And the other one is for sort of flight data metrics. And those will be very closely scrutinized to any clues in terms of who might have been out of position. We do have a little bit of footage from the ground. It's blurry somewhat, but again,
that might be pulled in. We've seen in the past that you have all these different metrics that you can draw on and the NTSB is obviously a very professional body, knows how to deal with these kinds of incidents.
As Anne-Marie said, as a huge amount of political pressure on this, the president has weighed in. It essentially happened, you know, Dara Sane is back yard. This is a test case for the new administration, for Pete Hexarth, for Sean Duffy, who spoke last night at the press conference, and who said himself, look, I've been in the job for a day. So this is really going to be a test case for him and how they handle this.
The truth will come out, but I think everyone was very clear at this point that we're not in that phase at the moment. This is about trying to find potential survivors, trying to race against time, essentially, because the cold water will be a very difficult environment for anyone to survive in. So that's sort of where the focus is right now. And then throughout the next day, maybe even at that 7.30 press conference that Amoree mentioned, we will get a little bit more.
And it has to be said that this is the first time that we've seen a regional jet crash like this in just about 15 years. It speaks to the rarity of something like this. And when it comes to Reagan National Airport, the flight patterns, they pretty much follow the Potomac River, whether you're coming in from the north or the south. And that raises a question, doesn't it, Benedict, about how something like this could have happened when we have such
you know, routine flight patterns in and out of Reagan National Airport. Yeah, you're absolutely right. And, you know, to widen the lens a little bit, we are coming out of a phase of extreme safety in terms of airspace. Might not feel that way off the back of a tragedy like this. And we've had a couple of similar tragedies in the last couple of weeks, even and throughout the last year, but longer term
aviation safety has improved tremendously. If you look at 2023, there was not a single civil aviation accident throughout the entire year. You had 37 million movements and not a single loss of life. So that gives you a sense of
where we're coming from. So obviously, every tragedy after that really puts the spotlight on safety. We had that incident about a year ago that people might remember about the collision in Japan. Atoko, there was a large aircraft that plowed into a stationary plane. Miraculously, everybody survived on that aircraft on the large plane. The people on the small plane died.
and then we had the incident in South Korea a couple of weeks ago where the plane attempted an emergency landing and then plowed into a concrete wall and tragically everybody died on that. So I'm raising these incidents because they are rare, they don't happen often, thankfully, but there's an eerie similarity because they're all somehow involved in collisions, in approach and so on. So this is something that will be very much watched.
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 929 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 and 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.
Are you looking for a new podcast about stuff related to money? Well, today's your lucky day. I'm Matt Levine. And I'm Katie Grifield. And we are the hosts of Money Stuff, the podcast. Every Friday, we dive into the top stories about Wall Street, finance, and other stuff. We have fun, we get weird, and we want you to join us. You can listen to Money Stuff, the podcast on Apple Podcasts, Spotify, or wherever you get your podcasts.