scarlet: welcome to "bloomberg markets," welcome to the first full official trading day of january, at least it feels like, with stocks gaining for a second day. the board is up by better than 1% building on friday's game. the magnificent seven stocks are leading the way. jensen wong will be speaking at the ces event later today. of course, later, investors are on walk for any -- on walk for anything he says about ai chip.

treasuries, modest moves with yields on the long end of the curve. third year paid a lot of attention to that, it hit a highest level since late 2020 three, yielding 4.8 6%, giving back a little bit but there is a ton of supply hitting the treasury market this week. look at the dollar. weaker today. fell on reports that the incoming president would consider imposing tariffs on all countries, keeping it narrow. later on donald trump denied the report and we saw the dollar repair some of the decline. going back to equities for a moment, individual names, we will take a look first at american airlines. they upgraded citing a constructive view of the airline industry as one of the factors. from the sky to the ground, loose it is higher on a report

that vehicle deliveries the average analyst estimates with sales production of gravity suv's earlier headed into a competitive 2025 market. staying on the auto theme, hoover, shares are rising after they entered a accelerated share buyback agreement with bank of america. don't forget about banks, they are rising today on news that the federal reserve vice chair for supervision plans to set down from one of his rules. bank stocks as you can see by the index climbing almost 2% after that recognition and resignation was announced by the fed at 11 a.m. time. michael mckee is our go to for all things fed here at bloomberg. and walk us through what michael barr is doing. he's not resigning from the federal reserve overall. mike: no.

he's resigning from a vice chair for supervision position that is relatively new. so, there is something of a president here -- precedent here, and his issue is does he want to stay on to fight with donald trump about what regulations should be. they were going to re-propose proposals in the first quarter, but that now appears to be kind of dead because the trump administration wouldn't want it anyway. he is not resigning as a governor of the federal reserve, meaning there is an opening and donald trump can only elevate someone who is on the board. he can't put in a new vice chair for supervision as governor, because it isn't an opening until january of 2026. scarlet: i see. as he won a month the vice chair for supervision? is this a role he's looking to fill?

mike: that's an interesting question. in wake of his decision to resign on february 28, they said they would not move forward on any major regulatory proposals until a successor it is in place. well, mickey bowman is the bank representative on the board now who is heavily involved in a republican. the president could elevate her but he can also say i don't want the fed to move forward, i won't appoint anyone for the time being, then next january he chooses someone to his liking. scarlet: it raises the bigger question of whether there will be other movement from within the federal reserve, like in specific posts work -- we are bringing up jay powell it was such a big question at the recent -- recent fomc about whether he would step down or change his role. here's chairman, but even if he steps down or is removed in some way, he could still stay on at

the fed. mike: he could. his term as chair is up next year and the president elect has made it pretty clear he wouldn't reappoint him, but he could stay on the board until 2028, preventing trump from the point anyone else within the board to be chair. you don't have to give the fed governor a chair of the federal reserve, but the chair of the open market committee that makes the interest rate decisions doesn't have to be on the fed. scarlet: like this speaker of the house situation. mike: right. he could still be on the board with a different person serving as chair. scarlet: like elon musk or something? mike: right, someone from the outside. probably none of this is going to happen, but it is kind of fascinating to contemplate. scarlet: good stuff.

michael mckee, alway a pleasure to have you on. personnel policy, taking shape here in washington. lawmakers reportedly working on a giant spending bill according to the post from donald trump, who said members of congress are getting to work on one powerful bill, saying that we have to renew the trump tax cuts and that republicans must unite and deliver these victories quickly for the american people, "get smart and tough." for more on government spending in the u.s. economic picture, let's welcome stephanie kelton, known for her book, "the deficit myth." she a professor of economic public policy at stony brook and we welcome you to "bloomberg markets," thank you so much. the trump agenda encompasses a lot of things like energy freedom and reducing regulations

. congress is on board to help them deliver. we know that. johnson discussed an all-encompassing bill for may or april. is that too aggressive? it would fit within the 100 day mark that any incoming president wants to deliver on, but it sounds like a lot. stephanie: it does sound like a lot and realistically it's more likely to be summer in possibly even fall. the tax cut jobs act the republicans passed the first time trump was president, that was december of 2017. it really took the better part of a year to get that done and they are really looking at something a lot more ambitious. scarlet: raising the question, why do it by one big bill? why not do it piecemeal? stephanie: i think the logic is

they have a better and stronger hand of holding the coalition together if everybody basically has to hold their nose and vote for pieces but they don't necessarily like to get the parts they do. that's the political calculus that has been taken. jd vance has indicated that this will make it smoother going through the senate, so that is the play here. go big or go home. katie: we have seen that play out and work or not work in other countries, like france and south korea dealing with political instability over budget. in brazil, currency assets tanked because of their fights. in the u.s. we have this red sweep unified government. doesn't make the u.s. different from those other countries?

>> anything can go wrong. just because you have the seats. we saw that with the democrats, when they try to do bill back better, and they lost two members of -- in the senate of their own party, essentially forcing them to break it up into smaller pieces. republicans are saying we can do better than that, get the one big bill through. we will find out soon, but if i had to bet on it, from where i'm sitting right now i bet they pull off something close to what they are looking to do scarlet:. the question is always how you pay for all of these initiatives? through efficiency measures. do you see the do ge efficiency members paying for it? stephanie: this is a game and the cbo is an important player.

in many ways it's a number on papers game but cbo gets to weigh in and take a look and if republicans say that tax cuts will deliver a boon in terms of growth in revenue, cbo might see it another way with other parts of the republican agenda presented as so-called pay for's and republicans at the end of the day are going to have to decide how much of this they are willing to allowed to fall to the deficit to get the things they really want to achieve, even if it means not offsetting all the spending. scarlet: do you see the incoming white house just printing the money needed to finance deficits? stephanie: well, that's not what they suggest, it's not like a prescription for modern monetary theory, it's more of a prescription for analysis. if republicans took that lens seriously, they would realize there is no revenue constraint. they can afford to spend

whatever congress is willing to vote for. the lens is there to say before you do that, make sure you are thinking carefully about the inflationary effects of what it is you are proposing. it's not about printing or not printing money, there's only one way for the federal government to spend at the end of the day. the question is about the impact. if you are doing this the mmt way, you are betting that spending and tax cuts on risk for the inflation side, not because you are concerned about the size of the debt or its impact, per se. inflation is what matters. scarlet: do you believe that bond vigilantes are out there waiting to pounce on the bond market at the first sign of overspending or the deficit growing meaningfully larger? stephanie: investors are out there paying attention to the potential -- paying attention to the potential inflation risk.

look at the u.k. with liz truss in the mini budget. markets will react if they think you are likely to accelerate inflation. you will see that in interest rates, movements, spreads, and so forth. i don't have the nt is the right word, but i do think it's a right way to attribute policy when you think about inflation. investors and traders will be walking -- watching for heightened inflation risk if they decide the trump republican policies are likely to push inflation up. scarlet: do you see the 10 year going up as t. rowe price has warned? stephanie: anything is possible, but i'm not looking to see that sharp of a movement. scarlet: stephanie, always appreciate you joining us, thank you for coming into the studio. stephanie kelton, stony brook or. coming up, new alternative to cable after fumo in disney announced they would combine

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scarlet: timescarlet: now for the stock of the hour and we are focused on fumo tv, shares rising after they announced that they would be merging online live businesses with busy. maybe the biggest part of this is the development that as part of the deal, fubo has settled all litigation related to venue sports, the sports streaming platform being planned by

disney, fox, and warner bros. discovery, putting that legal issue to bed. joining us now, our correspondent from bloomberg intelligence. the history of media is about bundling and unbundling. looks like as everyone cut the cord to get away from pricey bundles, we are looking at a deal that just creates a bigger bundle. >> it does, yes, very true. we have seen this move away from traditional delivery mechanisms. keep the cable package, for instance or your fiber tv package with more or -- more and more streaming options. that's what food tv are, we call them virtual and bpd's. but we have seen with virtual and bpds is you to tv is the biggest operator in that space, but who live in fubo have struggled to get customers and there is typically a huge bump around the start of the football season and once the super bowl

is over, people's are. bundling these two together, this consolidation of who live with fubo is all about scale and it helps disney, as you rightly pointed out, bundling this product along with many more things they are going to offer, disney plus, the new espn product that comes out. it definitely paves the way for a lot more bundling in the future. scarlet: and we know that fubo had sued disney and the other partners for their sports streaming service that they had planned on introducing calling it anticompetitive. with this deal, that all goes away. everything goes forward, is that right? >> venue was supposed to debut last august at a $43 price point. but then you had this big lawsuit from fubo claiming

antitrust, claiming that this would result in a loss of competition as well as, you know, pushing up prices. the judge at that point obviously blocked the service, but with fubo withdrawing litigation, obviously that, it's kind of this masterstroke by disney to get venue off the ground, potentially sometime this year, along with the espn product launch. scarlet: fubo now with this disney deal becomes the second-biggest pay-tv provider after youtube tv. what do you think it means in terms of other consolidation in the media space? who else will be combining to join forces? >> there will be a lot more consolidation because with streaming bundles what we will be seeing is a lot more cord cutting. that of course results in a lot of people across the media

system. we will see distributors consolidating. we saw a deal announced last year before it was scrapped, directv --, basically creating the largest pay-tv operator. we might see much more consolidation in that space. of course there will be a lot of consolidation even in the content space in that could come in many different forms. we know comcast is kind of spinning out the cable tv business. that could kind of set in motion a lot of these other companies spinning out cable tv businesses and roll them up into one big linear tv enterprise, if you will. a lot of consolidation is about to happen with the new administration. scarlet: thank you so much and happy new year to you. coming up, we will move north to take a look at what is going on in canada. the prime minister there just announced that he will stand

down as party leader, triggering a race to see who will lead the country from his party, next. that's coming up. this is bloomberg. ♪

scarlet: this is "bloomberg markets." justin trudeau saying he will be stepping down as party leader, insuring an election in the coming weeks. he made the announcement in auto up. >> i intend to resign as party leader and prime minister after the party selects its next leader through a robust nationwide competitive process.

last night i asked the president of the liberal party to begin that process. this country deserves a real choice in the next election and it has become clear to me that if i have to fight internal battles, i cannot be the best option in the election. scarlet: for more on this, let's bring in brian out of ottawa. feels like trudeau may have made the same mistake as joe biden, hanging on for too long. now that he made the announcement, how quickly do things need to unfold for the liberal party to have a new leader? >> there is a ticking clock in place. the parliamentary session has been suspended until the end of march, but it has to come back, there need to be votes to fund the government like basic money bills. they will need a new leader in

place by the end of march. the liberal party executive has to sit down and figure out the rules. people should expect we are looking at a two month process here. somewhere in that timeframe. scarlet: ok, pretty truncated. the canadian dollar is stronger today versus the u.s. dollar probably with relief that this has happened. who are you looking at to be in the running? i'm thinking about the long time deputy finance minister, whose resignation spark this latest crisis for justin trudeau. >> i spent a lot of time over the last year talking to people around him and putting questions to him and i believe he did not intend to resign until the freeland incident happened three weeks ago. chris you -- freeland took out the prime minister and she is sitting in the wings and i think it's very likely she will make a run for the leadership race. i have not been told that specifically by anybody around

her, but she's absolutely someone to watch. another person to watch is mark carney, so when he was trying to bring into his government. viewers probably know him as the central bank governors of england and canada, just a very long time prominent figure who has talked about running for politics someday. scarlet: full disclosure, he is the chair of bloomberg inc. as well. polling indicates the conservatives are out polling the liberals regardless of who might be the next leader. this is all kind of a shuffling of personnel without much to show for it in the end. >> we will see. at the moment the liberals looked at in the water. they are way behind in the polls and it looks likely that the conservative party would win the next election. but once you take trudeau out of the equation, it's hard to predict. scarlet: really appreciate you joining us on this developing and fast story.

i'm scarlet fu. that does it for us this hour. keep it here for "balance of next. this is bloomberg. ♪ lock in let's go. rated e for everyone. [rock and roll music playing] xfinity. made for gaming. rewards members, get early access to an ea sports fc25 kit. visit xfinity.com/rewards.

>> from the world of politics to the world of business, this is "balance of power."

live from washington, d.c. joe: it's time to certify the votes. welcome to the faster show in politics, as lawmakers gather in a joint session of congress to perform their constitutional duty four years after the process was interrupted by a mob of rioters. i'm joe mathieu alongside kailey leinz and washington, d.c. thanks for being with us on the monday edition of "balance of power." it is january sixth, four years later. kailey: this proceeding stands in stark contrast to what we saw four years ago as known inside or outside the capitol is contesting the results. the woman who was defeated in november will be presiding over the proceedings today. kamala harris already standing next to the speaker of the house, the gavel has come down, these proceedings will get underway shortly as the county's electoral votes and donald trump will officially be certified as