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

0:00Hello, I'm Stephen Carroll. I'm in Brussels where many of Europe's biggest decisions get made. And I'm Caroline Hepker in London with the hosts of the Bloomberg Daybreak Europe podcast. We're up early every weekday keeping an eye on what's happening across Europe and around the world. We do it early so the news is fresh, not recycled and so you know what actually matters as the day gets going. From Brussels, I'm following the politics, policy and the people shaping the European Union right now. And from London, I'm looking at what all that means for markets, money and the wider economy. We've got reporters across Europe and around the globe feeding in as stories break.

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1:02Bloomberg 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 2026. But we begin with a new era in New York politics. Zoran Mamdani 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 34-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 8.5 million people in more than a century.

1:47The 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, and 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 child care and bus transportation, as well as a vow to freeze rent for tenants and stabilized apartments. And now comes the hard part. The price tag for his universal child care program may reach$6 billion a year, which would be funded through the imposition of additional taxes on corporations and millionaires.

2:31But many any new tax increase would require approval from Albany and Governor Kathy Hochul, 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 a warning to those who believed he might moderate his positions after taking office, His inauguration featured speeches by two of the U.S.'s most liberal members of Congress, Representative Alexandria Ocasio-Cortez and Senator Bernie Sanders. In New York, I'm John Tucker, Bloomberg Radio.

3:07All right, John, thank you. Rising health care costs are now a pressing issue for millions of Americans. As of 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 43-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 and 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.

3:55MS Pangaea policy founder Terry Haynes. But till then, the health researcher KFF estimates most Obamacare enrollees will see their premiums rise, an average 114 percent this year. An analysis from the Urban Institute and Commonwealth Fund projects 4.8 million Americans will drop their coverage without the subsidies. Let's turn to geopolitics now, Karen, because the U.S. is continuing to ramp up the pressure on Venezuela. Let's get the details from Bloomberg's Erika Herskowitz. The Trump administration has slapped sanctions on four companies based in Hong Kong and mainland China with ties to Venezuela's oil industry.

4:34It's also imposed penalties on four tankers connected to those firms that it accuses of evading restrictions. This comes as the U.S. launches more strikes on purported drug trafficking boats. U.S. Southern Command 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 Nicolas Maduro says he's open to negotiating with the U.S. to combat drug trafficking, but he reiterated in a New Year's Day interview that the U.S. is trying to force him from power and gain access to Venezuela's oil reserves.

5:12Erica Herskowitz, Bloomberg Radio. All right, Erica, thank you. President Trump pledged in a late night social media post that the U.S. will come to the rescue of Iranian protesters if they're attacked by Islamic Republic authorities. The post comes after protests erupted this week in Tehran 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 now, Karen, to the latest on a tragedy in Switzerland. Officials there say about 40 people have died in a fire at a ski resort bar where partygoers were celebrating the new year.

5:50They estimate more than 100 others were injured after flames ripped through the bar at the popular alpine resort Crom, Montana. Swiss President Guy Parmalas says it's one of the worst tragedies 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 their memory to make sure that such a tragedy never happens again. That was Swiss President Guy Parmalon speaking through an interpreter there. Eyewitnesses tell French media a sparkler in a bottle ignited the ceiling. Well, Nathan, we turn now to the markets where futures are higher as we kick off the new year.

6:32Global stocks are coming off their strongest year since 2019, supported by expectations of stronger earnings and optimism around AI. Christina Hooper is chief market strategist at 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 a recovery. So I certainly think stocks, U.S. stocks could eke out gains next year, maybe even as much as a 10 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.

7:13The S &P 500 rose 16 percent in 2025, a gain which follows surges of more than 20 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 1953, the S &P 500's median 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 1979. Goldman Sachs says its base case for gold is a rally to$4 ,900 an ounce.

7:52Right now, it is trading at$4 ,398 an ounce. That is COMEX Gold. Silver currently spots. Silver is at$74.47 an ounce. That's up almost 4%. And aluminum touched$3 ,000 a ton for the first time in more than three years due to a tightening supply outlook and bets on long-term demand. And when it comes to fixed income, Karen Treasuries are falling to start the new year. The yield on 30-year bonds is rising to its highest level since early September. The move comes after data showed applications for U.S. unemployment benefits fell last week to one of the lowest levels over the past year. And in Asia overnight, Nathan shares of Baidu rose more than 9%.

8:34The Beijing firm's 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. Well, then for that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. Parts of northern New York state got clobbered with snow, and more is on the way. Bloomberg meteorologist 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 I-90 from just south of Buffalo down towards Jamestown.

9:11This area could see anywhere from another 8 to 16 inches of snow. Lake effect snow warnings and winter storm warnings remain in effect for that area at least into Saturday morning. Now north of that, running along and north of I-90 and up and down I-81, 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 meteorologist 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 and Huntington Beach is closed due to flooding.

9:48President Donald Trump defended his energy and health in an interview with the Wall Street Journal. President Trump, who is 79, also disclosed that he had a CT scan, not an MRI, 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 Dr. Stephanie Whitmer says the benefits of taking a month off from alcohol can show up fairly quickly.

10:29Even if you're just stopping for a month, 30, 31 days, some people report better sleep within days. They can report improved energy, focus, better mood. Some report fewer headaches and less reflux. Dr. Whitmer warns that people who drink daily or drink heavily or have a history of alcohol dependence should talk with their doctor before trying dry January. Global News, 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. We're in a trio of college football playoff games, starting with the Orange Bowl in Miami and a shutout win for Oregon, 23-0 over Texas Tech, who had four turnovers.

11:15The Rose Bowl in Pasadena was an easy win for Indiana, 38-3 over Alabama. For an Endo Mendoza, the Heisman Trophy won only two incomplete passes. He threw three TD passes. And then the Sugar Bowl in New Orleans in a back-and-forth game, won by Ole Miss, 39-34 over Georgia. The Rebels broke a tie on a field goal with six seconds left. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this.

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12:51Coast 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 with a new era underway in New York City. After the celebration of the inauguration, the work of governing begins now for new mayor Zoran Mamdani, 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 Mamdani is Bloomberg News editor-at-large Marty Shanker. Unapologetic in that nearly two-hour inaugural celebration, Marty.

13:32What 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 on 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? Well, that's the real issue because as mayor of New York, he really doesn't have much control over funding and taxes.

14:12That's in the hands of the governor, Nancy Hochul. And 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.

14:55He 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, celebrating the city's immigrant community in the speech as well, Does that set up a conflict with the Trump administration after that 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 pleading reference to Donald Trump directly. I think he only mentioned his name once.

15:38And 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 is a potential conflict there. But he seems to have very good relations with the White House. We'll see how long that lasts. In our last 30 seconds, should the city be concerned about potential cuts to federal funding after what we heard from Mayor Mumdani yesterday? Well, I think you have to be very cautious about that. Donald Trump says things and doesn't follow through.

16:20One 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 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 92.9 in Boston, and nationwide on Sirius XM Channel 121.

17:02Plus, 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 on 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.

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