Harvard President Resignation Fallout; Trump Sues Maine; Wall Street Tech-Selloff

On today's podcast: 1) Claudine Gay is stepping down as president of Harvard University , ending a brief and tumultuous tenure marred by allegations of plagiarism and a campus controversy over antisemitism. 2) Donald Trump filed a lawsuit seeking to restore his name to Maine’s presidential primary ballot after the state disqualified him over his attempt to reverse the result of the 2020 election he lost to Joe Biden. 3) Traders hoping that a pan-markets year-end rally would pick up where it left off got the opposite on 2024’s first trading day, a session that featured one of the worst-ever concerted drops in stocks and bonds to start a year . Full transcript: Good morning. I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today. We begin with the leadership shakeup at the top of the IVY League. Claudine Gay is stepping down as president of Harvard University weeks after her highly criticized congressional testimony about the school's handling of campus anti semitism, alongside the presidents of MIT and the University of Pennsylvania. Bloomberg's David Weston begins our team coverage. It has been sort of a firestorm for these three presidents to deal with exactly how you control and influence discussion on the campus. There were also questions that developed over time about some of the work that President Gay had done for her dissertation for her PhD, and allegations that she had improperly used sources that she did not identify. Initially, the Corporation of Harvard, which is what they call the Board of Trustees of corporation, said there'd been an investigation and they had totally exonerated her. There was no problem. But now she said, she stepped down, and I take her to ward. At this point, and at some point, a leader becomes a distraction. Bloomberg's David Weston reports this is a dramatic about face for Harvard. Claudie Gay became the university's first black president just six months ago. Well Nathan, one of Gay's harshest critics, says her stepping down is long overdue, and Bloomberg's At Baxter has that part of the story. Congresswoman Elis Stefanik says Gay in the December hearing never condemned calls for genocide against Jews as a violation of university policy. This is part of what Gay said at that December hearing. We embrace a commitment to free expression, even of views that are objectionable, offensive, hateful. Stefanica is a Harvard alum who said Gay's statements were morally bankrupt. And Bill Ackman now who's also gone after Gay posted at two sally an apparent reference to the president of MIT at Baxter Bloomberg Radio, okay, and thanks. Sticking with politics, another legal battle is set in motion involving Donald Trump's ability to return to office. S Bloomberg's Amy Morris has the latest. Trump is not just appealing the decision in Maine to remove his name from the primary ballot. He's also suing the official mains Secretary of State, Senna Bellows, who made that decision. It's another legal argument that will likely be settled by the US Supreme Court, along with a case from Colorado where a group of voters is calling for the justices to quickly step in. They're asking for that case to be expedited. They'd like a ruling by February eleventh, and we could learn whether the Supreme Court will it Dervine in the Colorado case by this Friday. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thanks now to the latest developments in the Middle East. A senior Hamas leader has been killed by Israel on a explosion in Beirut. Hamas says Israel killed Sileai al Rory, deputy headed the group's polit bureau, who was known as the mastermind behind its armed wing in the West Bank. Began more from a Bloomberg Silary Liebert, it's sort of a no brainer that if they had a senior Hamas leader, they could find an attack who wasn't in some underground hiding place wherever he was, if they would go after him, and Bloomberg Larry Liebert. It says aler Rory would be the most senior Hamas leader killed during the war. Turning to markets now, Karen wall Street kicked off the new year with a thud. Both tech stocks and treasuries sold off. The Nasdaq one hundred index fell one point seven percent, at benchmark's biggest drop in two months. Rich Weiss is chief investment Officer of multi asset Strategies at American Century Investments. If you look from the start of twenty twenty two through the end of twenty twenty three, cash basically outperformed most equities, maybe not the Magnificent seven, but most equity portfolios. So cash has been king, likely to be king at least for the first half of this coming year, at least, we believe American Century Investments. Rich Weiss thinks it could be a tough earning season for corporate America well. One of the biggest losers in yesterday sell off, Nathan was Apple I lost more than one hundred seven billion dollars in value after Barclay's analysts downgraded the tech giant. Bloomberg's Mark German explains the bearish view of the iPhone maker four quarters plus in a row of holiday declines. The earnings report that's coming at the end of January early February will indicate that Q one was either in line, maybe a little bit more a little bit less than the prior quarter. You have these patent situations which are likely to crop up in higher frequency now given the success that Massimo has had over the past few months. And Bloomer's Mark German notes that Apple shares rose around fifty percent to a record last year. Well, on the flip side, shares of JP Morgan closed at a record to kick off the new year. The bank's rebound from its twenty twenty two low has now pushed its market capitalization to about five hundred billion dollars. The lender's been a top performer in the banking industry following record results last year. Well Nathan investors will turn their attention for more clues on the future of interest to rates. This afternoon, the Federal Reserve issues minutes of dece meeting, and Bloomberg's Vinidel Judai reports Bloomberg Economics as the minutes could signal interest rate cuts aren't imminent, they'll fetcher. Jerome pal did strike a dubvish tone last month's news conference that officials voted to hold the benchmark interest rate target steady for the third time at December's meeting after more than a year of tightening. Next session, January thirtieth and thirty first. Also on today's US economic agenda, job openings, as well as ISM factory data. If Anny Dale, Judeace, Bloomberg Radio, Sorry, and Ethan Thanks. It's time out for a look at some of the other stories making news around the world, and for now we're joined by Bloomberg's Amy Morris. Amy, good morning, Good morning, Karen. Migrants sent mostly from Texas, have been showing up at train stops outside New York City over the weekend, sidestepping a new order limiting how they arrive. Hundreds of migrants took a detour in New York and New Jersey to bypass the New York order limiting the seat the number of arrivals. New York City and Chicago recently began restricting migrant bus arrivals, and now the crackdown spreading to the suburbs. Woodstock Mayor Michael Turner spoke at a city council meeting, we do not have the staff the expertise for the money, and that may not be the ideal. We may all wish it was something different, but that's the reality for Chicago. Suburbs in Hinsdale, Woodstock, Buffalo Grove, and Juliette taking official action now passing ordinances to find bus companies dropping off migrants without notice. Meanwhile, four ports of entry at the southern border will be reopened tomorrow. Those ports were closed because of a record influx of migrants. Officials said closing the border crossings was just a last resort to stem the flow of people crossing the border. Hospitals across the country now initiating some new policies in response to a rise in respiratory illness cases, more emergency room visits because of flu, COVID and RSV, prompting some hospitals to require prior off authorization for visitors younger than twelve years old. Duke Health infectious disease specialist doctor Cameron Wolf says, for the most part, people understands it. Ever easy decisions like people want to be able to come and visit their love ones in a hospital, but I think in general people understand. The CDC says more than half the country is experiencing a rise in COVID flu and RSV cases. Hospitals in at least ten states and Washington, DC have now reinstated mask mandates. Israel is planning to withdraw several thousand troops from the Gaza Strip. The IDF announced the move, noting the nearly three month war has taken a growing toll on the Israeli economy. The United Nations says more than eighty five percent of Gaza's residents have been displaced from their homes and the fighting has left more than twenty thousand people dead. And a messy winter storm is headed for the East Coast this weekend. Forecasters are expecting measurable snow from Washington, DC to New York and rain showers down south. Global news twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Amy Morrison. This is Bloomberg Karen all right, Amy, thank you well. As Amy said you, we do bring you news throughout the day here on Bloomberg Radio. But now you can get the latest news on demand, and that means whenever you want it. You just subscribed to Bloomberg News. Now he can get the latest headlines right at the click of a button get informed on your schedule. You can listen and subscribe to Bloomberg News Now on the Bloomberg Business app, Bloomberg dot Com plus apples, Spotify, and anywhere else you get your podcasts. Time now for the Bloomberg Sports Update, here's John Stashaur John Karen. Just two years ago, the Oklahoma City Thunder lost fifty eight games. This year they might end up winning fifty eight. Fifth straight win for OKC now twenty three at nine on the season. They beat the league leading Celtics one twenty seven to one twenty three. Shay Gilgess Alexander's been on a scoring tear. He went for thirty six points. Christaph Porzingis had Boston with thirty four. Jayson Tatum scored thirty, but Jalen Brown shot only four of eighteen thirty six points for Steph Curry's Golden State Feed, Orlando won twenty one to one fifteen. Terry Rozier scored thirty four Charlotte with a win at Sacramento, John Moran twenty six points, ten assists Memphis Town San Antonio and Joe Lamby thirty one points at a triple double easy win for Philadelphia over Chicago. The Sixers were up by twenty five in the first quarter New Orleans out of twenty five point lead at halftime. Pelicans rolled to an easy win over the book for the Nets Perdue number one in college basketball and now thirteen and one boiler Makers with a big ten win at Maryland sixty seven to fifty three. Acced Duke rolled pass Syracuse eighty six to sixty six, Big East Yukon and easy win over De Paul eighty five to fifty six. College Football's National Championship game Monday in Houston, and Michigan is a four and a half point favorite to beat Washington. Both teams are undefeated, but Washington has only had one win by a ten or more points since September. They may not have running back Dylan Johnson. He got caught it off late in that semifinal win over Texas Johns Dan Shower. Bloomberg Sports from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Washington may have just flexed its muscles with the IVY leagues now that Claudine Gay is stepping down as president of Harvard University, comes weeks after widely criticized testimony about her handling anti Semitism on campus alongside the presidents of MIT and Penn, along with new questions specifically about Clining Gay's academic record some of her past dissertations. Meanwhile, with less than two weeks until voting begins in the Republican presidential race, former President Donald Trump is fighting to stay on a second state's primary ballot after Maine kicked him off over his actions on January sixth, twenty twenty one. Lots of political news to discuss this morning, and here to do that with us is Greg Valier, chief US policy strategist at AGF Investments. Greg, good morning. First, I want to get your reaction to the sudden departure of Claudine Gay as Harvard University. She just became Harvard's first black president in July. Now, apparently after this widely panned congressional testimony and the mounting political end donor pressure, she's out. I mean, what does that say about Washington's influence over higher education. Well, there is influence, Navan, good morning, But I think a bigger factor may have been the donor's donations were way down and applications were way down, and I think that may have had a bigger impact. Well, we did have the impact of a last Stephonica Harvard alum with that viral testimony, the questioning that she gave asking them pointedly whether calling for the genocide of Jews it violates school policy, and sort of wiggling on the answers. I mean this says something about a least stephonics clout as well, doesn't it. Yeah, two points. First of all, I think she is going to be a real player. She is already, but I think she's going to be a pit bull on these issues and she summoned to watch over the next few years. Secondly, I think that the university presidents, all three of them, were just extraordinarily tone deaf. You know, maybe what they said technically was correct, but it certainly did not soothe the issue. It just inflamed the issue. Not just that we know that the committee that brought those university presidents to Capitol Hill is expanding its investigation into some of these allegations of plagiarism against now former president Claudine Gay. Where do you see this investigation going into what's happening on these campuses. Well, I think that that is going to be fair game throughout the country, and I think it's not just these three presidents. I think it's probably a lot of other university officials that are now going to have to worry. I want to talk about the constitutional crisis potentially here with former President Donald Trump now suing to try to stay on Main's primary ballot after the Secretary of State made that move. Where do you see this going? Well, first of all, Nathan, I think it's probably ninety ninety five percent chance that the Supreme Court will take the issue. I think they have to beyond that. I think the odds would favor this court, which has three Trump appointees of six to three conservatives on the court. I suspect they would reject the argument that Trump has to be taken off the ballot. I think the Court could decide this within the next few weeks, before Super Tuesday on March five. I think that in the final analysis, Trump will be on the ballots. There is a difference between a secretary of state making a move like this and a Supreme Court like what happened in Colorado, Does that make any difference for the Supreme Court if it does come to that. It could, and there will be lots of issues debated, but I think the main one is can you quickly prove that Trump supported an insurrection? I mean that's a case that could take years, certainly many many months, and we don't have that kind of time with an election coming up. So barring any definitive ruling on the January sixth insurrection, I just don't see this going anywhere. Well, that being said, why do you think the Supreme Court would make a decision quickly if, as you say, it would take a substantial amount of time before the Supreme Court to determine whether former President Trump did indeed commit insurrection? Well, I think the Court we'll just have a cotton dried decision saying that that they don't have the jurisdiction right now to define insurrection or decide whether there was insurrection. And I think without that finding, again, I just don't think it's going to go anywhere. This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts. You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg one sixty one in Boston, and Bloomberg ninety sixty in San Francisco. Our flagship New York station is also available on your Amazon Election device. Just say Alexa play Bloomberg eleven thirty plus. Listen coast to coast on the Bloomberg Business app, SERRIUSXM, the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak See omnystudio.com/listener for privacy information.