Seahawks Win Super Bowl; China to Curb US Treasury Exposure

0:00Today's show is brought to you by Vanguard. To all the financial advisors listening, let's talk bonds for a minute. Capturing value and fixed income is not easy. Bond markets are massive, murky, and let's be real, lots of firms throw a couple flashy funds your way and call it a day. But not Vanguard. At Vanguard, institutional quality isn't a tagline. It's a commitment to your clients. We're talking top-grade products across the board of over 80 bond funds, actively managed by a 200-person global squad of sector specialists, analysts, and traders. These folks live and breathe fixed income. So if you're looking to give your clients consistent results year in and year out, go see the record for yourself at vanguard.com slash audio.

0:41That's vanguard.com slash audio. All investing and subject to risk, Vanguard Marketing Corporation Distributor. Donald Trump is rewriting the Washington rulebook and reshaping the global economy. If you're trying to connect the dots behind the headlines, Bloomberg's Trumponomics podcast is here to help. I'm Stephanie Flanders, Head of Government and Economics at Bloomberg. Every week I'll bring you a smart, focused conversation with reporters and experts from Washington, Wall Street and beyond. Listen to new episodes every Wednesday and follow Trumponomics wherever you listen.

1:20Bloomberg 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 begin with Super Bowl 60. The Seattle Seahawks beat the New England Patriots 29-13 for the franchise's second NFL title. For the details, we bring in Bloomberg's John Stashauer. John. All right, Nathan, thank you. There's that old sports cliche, offense wins games, defense wins championships. It was the Seattle defense that carried them to the victory in Super Bowl 60 in Santa Clara. In fact, the Seahawks' defense scored as many touchdowns as their offense.

2:02The Patriots have a first down, and the clock is ticking at 438, and they trail 22-7. Shotgun snap, 44 Seattle. He's hit as he drops back. The ball free, picked up by Noosu, running down the side. 30, 20, 10, 5, touchdown! That's what won the call of one of three second-half turnovers by Patriots quarterback Drake May. He got sacked six times. New England threw the first three quarters, had only five first downs and only 78 yards of offense. The Seahawks won 29-13 running back Kenneth Walker with 135 yards, named Super Bowl MVP. Much more coming up in sports. John Stashauer, Bloomberg Radio. Karen.

2:38And we look at markets now. Nathan, Bloomberg has learned that Chinese regulators have advised financial institutions to rein in their holdings of U.S. Treasury, citing concerns over concentration risks and market volatility. The guidance, which was communicated verbally to some of the biggest Chinese banks in recent weeks reflects growing weariness among officials that large holdings of U.S. government debt may expose banks to sharp swings. Bloomberg's Mark Cranfield covers Asian markets for Bloomberg News. The Chinese authorities are warning their banks at home. If you have got treasury holdings at the moment or U.S.

3:14bonds in general, prepare for a lot more volatility, possible curve steepening, and you might not be the only ones. Don't be the last one out of the gate. Because once the dollar and bonds start to move, it could be pretty big in these situations where treasuries haven't moved a great deal over the past few weeks. Volatility could increase very quickly. Nobody wants to be the last person through the exit door. Bloomberg's Mark Cranfield says the move was framed around diversifying market risk rather than anything to do with geopolitical maneuvering or a fundamental loss of confidence in U.S. credit worthiness.

3:46And staying in Asia, Karen, Japan's Prime Minister, Sanea Takeuchi secured a historic election triumph, marking her as the most powerful leader in Japan's post-war era. Takeuchi's Liberal Democratic Party won a two-thirds super majority in Sunday's lower House election. Analysts say it would be a clear mandate for Takeuchi to use fiscal stimulus to break a long-standing deflationary cycle. Treasury Secretary Scott Besson spoke about the election on Fox News' Sunday Morning Futures. Japan, the prime minister called a snap election, the quickest snap election in Japanese history. And boy, has she had a big victory today.

4:23She's going to have two thirds majority in the upper house. President Trump endorsed her last week. She is a great, great ally, great relationship with the president. And when Japan is strong, the U.S. is strong in Asia. That was Treasury Secretary Scott Bessent on Fox News. Later on X, Takahichi said she's looking forward to visiting the White House in the spring to strengthen the Japan-U.S. alliance. In the U.K., Nathan Keir Starmer's future is in the balance after a crisis over the appointment of Peter Mendelsohn as ambassador to Washington claimed the prime minister's closest aide. We head to London now, get the latest of Bloomberg's James Wilcox.

5:02James, good morning. Good morning, Karen. Nathan, the prime minister meets his Labour Party lawmakers tonight. As his aides tell Bloomberg, they are bracing for some of Starmer's senior ministers to walk into number 10 Downing Street and threaten to quit unless he steps down. 18 months after winning a landslide majority, the UK leader's job is on a knife edge. It wasn't supposed to be this way, but a series of policy U-turns, a plummeting popularity and now fallout from the Epstein saga has changed the narrative around this Prime Minister. Now in markets and in Westminster, many are asking if his days are numbered.

5:39In London, James Wilcock, Bloomberg Radio. All right, James, thank you. Iran's president, Masoud Pazeshkian, described Friday's nuclear talks with the U.S. as a step forward. In an online post, the leader said dialogue has always been Iran's strategy, but he added the regime would not be intimidated. In recent weeks, President Trump has moved large amounts of military power to the Middle East and threatened strikes. The president called Friday's talks, quote, very good, and said another meeting is set for early this week. In Washington, Nathan, lawmakers have less than a week to reach an agreement on reining in immigration enforcement before funds run out for the Department of Homeland Security.

6:15House Minority Leader Hakeem Jeffries says Democrats won't give in on any of their demands on Border Patrol and Immigration and Customs Enforcement. We know that ICE is completely and totally out of control. They've gone way too far, and the American people want them reined in. House Minority Leader Hakeem Jeffries discussed Democrats' lists of 10 proposed restrictions on CNN's State of the Union. Republican Congressman Tony Gonzalez of Texas says some demands, like body cameras, make sense. But he says Republicans will not give in on other proposals. I'll tell you what's not going to be in there.

6:53Amnesty for illegal aliens. I'll tell you what's not going to be there. Stripping away protections for law enforcement officers that are trying to protect themselves. If rioters get to wear masks, then law enforcement gets to wear masks. Texas Republican Tony Gonzalez appeared on CBS's Face the Nation, which you can hear every Sunday on Bloomberg Radio. If Congress can't reach a deal by Friday night, a DHS shutdown would affect Customs and Border Protection, FEMA, the Transportation Security Administration and the Coast Guard. ICE would still have$75 billion in funds from President Trump's tax and spending cut law.

7:28Karen, the Trump administration plans to appeal a temporary court order blocking the federal government from withholding funds for a$16 billion rail tunnel under the Hudson River between New York and New Jersey. The Gateway Development Commission is building the new tunnel, but had to stop construction late Friday because it has exhausted all its funding resources. New York and New Jersey sued the administration in federal court after Gateway filed its own lawsuit in an effort to unlock more than$205 million of federal funds in the Court of Federal Claims. On Friday, a federal judge sided with the states and ordered the Trump administration to release the funds.

8:03Well, Nathan, in a message posted to social media this weekend, today's show anchor Savannah Guthrie addressed whoever is holding her mother. She appeared alongside her siblings, and Guthrie said they will pay ransom for her return. We received your message, and we understand. We beg you now to return our mother to us so that we can celebrate with her. This is the only way we will have peace. This is very valuable to us, and we will pay. Investigators believe Nancy Guthrie was taken against her will last weekend from her home just outside Tucson. DNA tests show blood on Guthrie's front porch was a match to her.

8:45That is according to the Pima County Sheriff Chris Nenos. And in company news, Karen Novo Nordisk shares are surging this morning. They're up more than 8 percent, reversing some of last week's plunge. That's after Hims and Hers Health pulled a copycat version of the new Wagovi weight loss pill. Hims and Hers says it'll stop offering the treatment. It said so in a post on X on Saturday. That was a day after the Food and Drug Administration pledged to crack down on copycat weight loss drugs. Hims and Hers shares in the pre-market are down nearly 15%.

9:21Time 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 Seahawks beat the Patriots 29-13, but one of the most talked about moments of Super Bowl 60 appeared to come from the halftime headliner, Bad Bunny. The halftime performance was a piece of history, with Bad Bunny becoming the first Spanish-language artist to headline the show.

9:55President Trump said his dislike of Bad Bunny was the chief reason he opted not to attend Super Bowl 60. But for many fans, Bad Bunny was the number one reason they were there. Senior Nielsen VP Stacey DeArmas. The Latino fan base is set to grow with the NFL, and Nielsen data tells us things are lined up perfectly for a win. Kit Rock was the headliner at the conservative alternative to Bad Bunny's main event at the Super Bowl last night. Turning Point USA's All-American Halftime Show was streamed during the concert. There are renewed concerns about press freedom in Hong Kong and beyond after Jimmy Lai, the 78-year-old pro-democracy former media tycoon and a fierce critic of Beijing, is sentenced to 20 years in prison.

10:44Lai was prosecuted under China's national security law. The list of Republicans criticizing President Trump for the video that depicted former President Barack Obama and former First Lady Michelle Obama in a racist meme is growing. From Senator Tim Scott of South Carolina, the Senate's only black Republican, to dozens of other members of Congress, there is condemnation for posting it in the first place and calls for a public apology. Mark Morial, president of the National Urban League, says this is beyond how a world leader should behave. It doesn't surprise me that he wouldn't take responsibility and the fact that he would not very quickly take responsibility and say it was wrong is why the Congress, by joint resolution, should condemn this.

11:31The Urban League's Mark Morial is also calling on religious leaders to tell President Trump to apologize. 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.

11:51time now for the bloomberg sports update is brought to you by flushing bank and for that we bring back john stash shower john good morning yeah thanks karen super bowl 60 dominated by the defenses it wasn't until the fourth quarter that anyone got into the end zone darnold under center five on the defensive line he gets the snap turns right takes the handoff Here comes the blitz. Here goes the throw in zone. Caught touchdown. Caught touchdown, Farner. The tight end over the shoulder catch in the corner of the end zone. And we've got our first touchdown of Super Bowl 60. Westman won the call. No TDs first three quarters and then four in a span of 11 minutes.

12:31Two for each team. That's Sam Darnold, TD Bass, followed by two from Drake May. But he also threw a 45-yard pick six. May had three second-half turnovers. He got sacked six times in the game, and Darnold and the Seahawks beat the Patriots 29-13. Darnold, the Super Bowl winner after a rough first six years of his career when he was considered an NFL bust. I told my, me and my dad don't really cry very often. And, you know, I told my dad I was, you know, and my mom. But, you know, just I was, I'm here because of their belief in me. And they believed in me throughout my entire career. and I think that's why I was able to believe in myself almost ad nauseum.

13:14Darnold with his last two seasons won 31 games. Seahawks now 2-2 in their history in Super Bowls. The Patriots are now 6-6. The next weekend began with that 38-point loss in Detroit but then a 22-point win in Boston to tie them with the Celtics for second place in the East. Jalen Brunson who shot 4-20 on Friday this time scored 31. The Dolphin Phoenix won by American Chris Goddard up in a playoff with Hideki Matsuyama. It's already his second win of the year. Two gold medals for the U.S. at the Olympics. Breezy Johnson, the women's downhill, only the second American to win it. The other was Lindsey Vonn, 16 years ago.

13:47She crashed 14 seconds in, nine days after Vonn tore her ACL. She broke her leg in a repeat gold for the U.S. in team figure skating. John Stash, our Bloomberg Sports, Karen Nathan. Stay with us. More from Bloomberg Daybreak coming up after this. Today's show is brought to you by Vanguard. To all the financial advisors listening, let's talk bonds for a minute. Capturing value and fixed income is not easy. Bond markets are massive, murky, and let's be real, lots of firms throw a couple flashy funds your way and call it a day. But not Vanguard. At Vanguard, institutional quality isn't a tagline.

14:23It's a commitment to your clients. We're talking top-grade products across the board of over 80 bond funds, actively managed by a 200-person global squad of sector specialists, analysts, and traders. These folks live and breathe fixed income. So if you're looking to give your clients consistent results year in and year out, go see the record for yourself at Vanguard.com slash audio. That's Vanguard.com slash audio. All investing is subject to risk, Vanguard Marketing Corporation Distributor. Hello, I'm Stephen Carroll. I'm in Brussels, where many of Europe's biggest decisions get made. And I'm Caroline Hepker in London.

14:59We're 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. So whether it's geopolitics, energy, tech or markets, you're hearing it while it happens.

15:35It's smart, calm and to the point. And it fits into your morning. You can find new episodes of the Bloomberg Daybreak Europe podcast by 7am in Dublin or 8am in Brussels, Berlin and Paris. On Apple, Spotify, YouTube or wherever you get your podcasts.

15:55Coast to coast on Bloomberg Radio. Nationwide on Sirius XM. and around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Treasury yields are rising across the curve this morning with sources telling Bloomberg News that Chinese regulators are urging the country's banks to limit their exposure to U.S. government debt. People familiar are saying they're citing concerns over concentration risks and market volatility. For more, we're joined by Sylvia Westall, Bloomberg News Managing Director for FX and Rates. She's in our London newsroom this morning.

16:27Sylvia, good morning. how significant could this Chinese warning be for U.S. Treasuries? I think the timing is quite interesting. I mean, they did frame this around diversifying risk, but there has been this sort of recent global trend that's seen India and Brazil lower their exposure to Treasuries, and growing doubts kind of about the appeal of U.S. assets. You've had Trump's threats over Greenland. You've had just General Lannis there, and that's spurred the hunt for alternative assets such as gold. Although overall, I think we have to look at the bigger picture here. And overseas holdings of treasuries actually advanced in November to the highest level on record.

17:08That's the most recent data we have. So, we have countries like Norway, Canada and Saudi Arabia offsetting some of the countries, including China, that have sort of let treasuries go. And overall, last year as well, treasuries had their best returns for a long time and they did particularly well compared to other peers. So it was actually quite a good time to hold treasuries last year, whether you were a domestic or foreign investor. So there's a sort of broader picture here to tell. But definitely in terms of timing, in terms of what it says symbolically, it's an important shift. And part of this timing is Treasury Secretary Scott Besant on Fox News yesterday saying that Chinese traders could be part of the reason why we saw the volatility in gold last week.

17:51Does this point to a new tension point between the U.S. and China? It's definitely been something whenever the US has had tensions with countries around the world that treasuries have come up because, of course, so much of, you know, this huge amounts of US debt are held overseas. I think, I guess the question mark is, you know, what kind of wash comes into the Fed and what his outlook is. I do think we're probably going to see more of this back and forth going forward if you kind of look at what the sort of signals are being sent and the timing of it as well, given the sort of question marks over US assets coming.

18:24So I think we're in for a period of volatility and different countries and different people might blame one or the other. But I think what's certain is that, you know, in this time of volatility, people might try and hold their positions and see where things go. That's definitely what we saw towards the end of the year with treasuries. Many of the big investment houses held firm on their calls and held on to what they were doing because there was so much uncertainty out there. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

18:56Look 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. 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 on your favorite podcast platform to stay informed all day long.

19:34I'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.

19:52I'm Barry Ritholtz, inviting you to join me for the Masters in Business podcast. Every week, we bring you fascinating conversations with the people who shape markets, investing, and business. CEOs, fund managers, billionaires, Nobel laureates, traders, analysts, economists, everybody that affects what's going on in the market, whether you own stocks, bonds, real estate, commodities, crypto, you really need to hear these conversations. Sometimes it's behaviorists like Dick Thaler or Bob Schiller. Sometimes it's fund managers like Peter Lynch, Bill Miller, Ray Dalio. Sometimes it's authors, Michael Lewis, author of The Big Short, and Moneyball.

20:37Regardless of the conversation, these are the folks that move markets each week. That's the Masters in Business podcast with me, Barry Ritholtz. Listen on Apple, Spotify, or wherever you get your podcasts.