Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: Karen, the drop in futures closing out this trading week
Speaker 3: comes ahead of a closely watched inflation gage for the
Speaker 3: Federal Reserve. The Core Personal Consumption Expenditures price index is
Speaker 3: forecast to have fallen to three point three percent in November.
Speaker 3: That's from three and a half percent the prior month.
Speaker 3: The economists say that could bolster expectations for FED rate cuts
Speaker 3: next year. Former Dallas FED President Robert Caplan says, despite
Speaker 3: this morning's report, he expects the Fed to be patient.
Speaker 4: The Fed is going to need to see at least
Speaker 4: two or three months more of continued improvement. I think
Speaker 4: tomorrow will probably be good news, but they're going to
Speaker 4: need to see sustained improvement before they're going to be
Speaker 4: willing to take more action. And so I think the
Speaker 4: market should expect that it's going to take a while
Speaker 4: and more sustained improvement before the Fed does something.
Speaker 3: Former Dallas Fed chief Bob Kaplan's as markets overreacted to
Speaker 3: FED share j Powell's comments earlier this month on rate cuts.
Speaker 2: Well in Europe Nathan's speculation is growing this morning that
Speaker 2: the Bank of England may cut interest rates as soon
Speaker 2: as this ring, and that's because the UK economy unexpectedly
Speaker 2: shrank in a third quarter. Dan Hansen is a senior
Speaker 2: economist for a Bloomberg News.
Speaker 5: We've been having this conversation about recession for a while.
Speaker 5: I think we'll move on from it in the first
Speaker 5: half of twenty twenty four, which is obviously a good
Speaker 5: news story. But as things stand, obviously just looking at
Speaker 5: this data, it is a little bit worse than expected,
Speaker 5: and it does raise the risk of two consecutive quarters
Speaker 5: of negative growth, the sort of definition of a technical recession.
Speaker 2: And Bloomberg New senior economist Dan Hansen says revised figures
Speaker 2: show GDP dropped a tenth of up percent from the
Speaker 2: second quarter, a downgrade from the zero growth initially estimated.
Speaker 1: All right, Karen, that let's get to the latest from
Speaker 1: the Middle East.
Speaker 3: The US is signaling it can now support a UN
Speaker 3: Security Council resolution to increase aid into Gaza. This proposal
Speaker 3: has been delayed several time times, but a vote could
Speaker 3: come as soon as today. White House National Security Spokesman
Speaker 3: John Kirby says the US still wants Israel to move
Speaker 3: to a different phase of fighting with Hamas.
Speaker 6: We're not going to speak for their military operations. We
Speaker 6: recognize and they recognize that a transition is not only reasonable,
Speaker 6: but probably the most viable way to continue this fight.
Speaker 1: John Kirby at the White House.
Speaker 3: Now, the latest draft of the Security Council resolution calls
Speaker 3: for creating the conditions for a sustained cessation of hostilities.
Speaker 3: The US had been opposed to specific language for a ceasefire. Meanwhile,
Speaker 3: the Hamas run health ministry in Gaza says more than
Speaker 3: twenty thousand people have been killed in the territory since
Speaker 3: the October seventh attack on Israel.
Speaker 2: Well Nathan, the US is preparing to lift a ban
Speaker 2: on weapons sales to Saudi Arabia. On Bloomberg's Amy Morris
Speaker 2: has more from Washington.
Speaker 7: Officials tell The New York Times the Biden administration is
Speaker 7: prepared to relax some restrictions after taking note of Saudi
Speaker 7: Arabia's de facto ceasefire with the Houthi militia in Yemen.
Speaker 7: President Biden imposed the ban on the sale of certain
Speaker 7: weapons two years ago, concerned that US weapons were being
Speaker 7: used against civilians in Yemen. The US did not say
Speaker 7: when the easing of the band might happen, and it
Speaker 7: can be reversed at any time if the President decides
Speaker 7: it's not in US interests. Saudi Arabia is the largest
Speaker 7: buyer of American weapons in Washington. Amy Moore as Bloomberg.
Speaker 1: Radio, Okay, mee, thank you.
Speaker 3: Meanwhile, closer to home, President Biden's preparing to send a
Speaker 3: team to Mexico to talk immigration. Bloomberg said, Baxter has
Speaker 3: that story.
Speaker 8: The mission comes after a conversation with Mexico's President Lopez
Speaker 8: opened the door with increasing pressure as well to get
Speaker 8: something done regarding immigration. NSC spokesman John Kirby says it
Speaker 8: will be top officials prison.
Speaker 6: Biden has asked Secretary of State Tony Blinken, Secretary of
Speaker 6: Homeland Security Alejandro Majorcis, and White House Homeland Security Advisor
Speaker 6: Liz Sherwood Randall to travel to Mexico in coming days.
Speaker 8: Kirby says the trip will take place as soon as possible.
Speaker 8: Ed Baxter, Bloomberg.
Speaker 2: Radio, All righted, thanks we all. Turning to corporate news
Speaker 2: now shares a Nike down eleven and a half percent
Speaker 2: in early trading, the sportsware giant is forecasting revenue to
Speaker 2: be down slightly in the fiscal third quarter and up
Speaker 2: in low single digits in the fourth quarter. Punham Goyle
Speaker 2: is a senior US e commerce and retail analyst at
Speaker 2: Bloomberg Intelligence.
Speaker 9: They're still only expecting revenues to be up one percent,
Speaker 9: and that's a function of two things. One an uncertain
Speaker 9: macro and two weaker China. So those two things together
Speaker 9: is what's raising browse here because China, as everyone knows,
Speaker 9: is a real area of growth for them.
Speaker 2: And Bloomberg Intelligence and Spoonhem Goyle says. Nike is also
Speaker 2: taking steps to streamline the organization and that's expected to
Speaker 2: result in pre tax restructuring charges of about four hundred
Speaker 2: to four hundred and fifty million dollars.
Speaker 1: Well, Karen, we're.
Speaker 3: Also seeing some other sporting goods companies follow after that
Speaker 3: disappointing Nike forecast. In Europe, shares of Adidas are down
Speaker 3: nearly six percent, Pumas down about four to five and
Speaker 3: a half percent, should say. And here in the US
Speaker 3: in early trading, we're watching shares a foot Locker. They
Speaker 3: are down six and two thirds percent. Under Armour is
Speaker 3: down about five percent, Dick Sporting Goods lower by more
Speaker 3: than four percent.
Speaker 2: Well, Nathan Elon Musk is lashing out at the state
Speaker 2: of US financial market. Speaking to Our Investment Management CEO
Speaker 2: Kathy Wood during a discussion on his social media platform X,
Speaker 2: Musk complained about the scrutiny facing listed companies.
Speaker 10: There's a lot of pressure, like an immense pressure on
Speaker 10: a public company to not have a bad quarter. So
Speaker 10: this can actually result in a less efficient operation where
Speaker 10: you're going to great lengths at the end of quarter
Speaker 10: to not disappoint people. You know, that's just just how
Speaker 10: it goes.
Speaker 2: And Musk says keeping SpaceX private has also allowed him
Speaker 2: to take more appropriate risk compared with the publicly traded
Speaker 2: Tesla and.
Speaker 3: Ten Cent Holdings is leaning an eighty billion dollars sell
Speaker 3: off in some of China's biggest online names. That's after
Speaker 3: China ensued a surprise imposition of new gaming curbs.
Speaker 1: This is Bloomberg Porry.
Speaker 2: Nathan thanks time now for a look at some of
Speaker 2: the other stories making news around the world, and for
Speaker 2: that we're joined by Bloomberg's Amy Morris.
Speaker 1: Amy, Good morning, Good morning, Karen.
Speaker 7: Increasing security concerns across the US. Deputy US Attorney General
Speaker 7: Lisa Monico says the biggest concern now is lone wolves
Speaker 7: and small groups acting with little to no notice.
Speaker 11: Since October seventh, the FBI has received more than eighteen
Speaker 11: hundred report of threats or other types of tips or
Speaker 11: leads that are somehow related to or having access to
Speaker 11: the current conflict.
Speaker 7: Deputy Attorney General Lisa Monicco was talking with ABC's This Week,
Speaker 7: which you can hear each Sunday afternoon here on Bloomberg Radio.
Speaker 7: Former Trump attorney Rudy Giuliani has filed for bankruptcy protection
Speaker 7: after a court ordered Our court ordered him to pay
Speaker 7: nearly one hundred and fifty million dollars for defaming two
Speaker 7: Georgia election workers. Loyola law professor Laurie Levinson says that
Speaker 7: doesn't ness necessarily let Juliani off the hook.
Speaker 12: Finally, the bankruptcy might delay things, but ultimately, if his
Speaker 12: creditors can find assets that he does have, then they'll
Speaker 12: be able to go after those, either in the bankruptcy
Speaker 12: proceedings or otherwise.
Speaker 7: Among the creditors Julianni lists are the Internal Revenue Service
Speaker 7: and Hunter Biden. Apple has now pulled its Apple Watches
Speaker 7: Series nine and Ultra iiO models from its online store
Speaker 7: to meet a ban ordered by the International Trade Commission.
Speaker 7: As Bloomberg's Scott Carr tells us, many of the watches
Speaker 7: are now also out of warranty.
Speaker 13: The ban on the Apple smart watches also means the
Speaker 13: company is not allowed to fix models out of warranty.
Speaker 13: Apple's customer service teams were told in a memo this
Speaker 13: week that the company will no longer replace out of
Speaker 13: warranty models going back to the Apple Watch Series six.
Speaker 13: The company will still offer help. It can be done
Speaker 13: via software, such as reinstalling the operating system. The ban
Speaker 13: affects most new Apple watches sold since twenty twenty that
Speaker 13: the ITC says includes a blood ox and censor that
Speaker 13: violates a patent held by Massimo, Scott car Bloomberg Radio.
Speaker 7: And the Food and Drug Administration has seized thousands of
Speaker 7: units of counterfeit o zepic, a diabetes drug from Novo Nordisk.
Speaker 7: It's been adapted into a weight loss treatment. As you've heard,
Speaker 7: the FDA warns wholesalers, retail pharmacies, healthcare practitioners, and patients
Speaker 7: check your products. Make sure they're not fake. The FDA
Speaker 7: and Novo are testing seized products and they don't have
Speaker 7: any information yet about their identity, quality or safety. Global
Speaker 7: news twenty four hours a day and whenever you want
Speaker 7: it with Bloomberg News Now. I'm Amy Morris and this
Speaker 7: is Bloomberg Karen.
Speaker 2: Sorry to Amy. Thank you what we do bring you
Speaker 2: news throughout the day here on Bloomberg Radio. But now,
Speaker 2: as Amy said, you can get the latest news on
Speaker 2: demand whenever you want it. Just subscribe to Bloomberg News
Speaker 2: Now to get the latest headlines at the click of
Speaker 2: a button. Get informed on your schedule. You can listen
Speaker 2: and subscribe to Bloomberg News Now on the Bloomberg Business app,
Speaker 2: Bloomberg dot Com, plus apples, Spotify, and anywhere else you
Speaker 2: get your podcast. Time now for the Bloomberg Sports Update
Speaker 2: with John stash Hour John Karen.
Speaker 14: The LA Dodgers have been in the baseball postseason eleven
Speaker 14: straight years. They have just the one World Series championship
Speaker 14: to show for it. That in the COVID shortened twenty
Speaker 14: twenty season. Making an effort to be better in October,
Speaker 14: have they ever spent money in this offseason? They acquired
Speaker 14: Tyler Glass now from Tampa Bay.
Speaker 1: They gave him a.
Speaker 14: New contract for one hundred and thirty six million dollars.
Speaker 14: They of course added Sho hey Otani price tag seven
Speaker 14: hundred million, and now they've added another Japanese player, twenty
Speaker 14: five year old pitcher Yashinobu Yamamoto. Dodgers haven't conferred the deal,
Speaker 14: but several media reports it's twelve years, three hundred and
Speaker 14: twenty five million, So betwe the two Japanese players. The
Speaker 14: Dodgers pledged to pay a total of over a billion dollars. Yamamoto,
Speaker 14: pitching for the ORYX Buffaloes last year, won sixteen games,
Speaker 14: pitched to a one point two to one baseball with
Speaker 14: some rule changes for twenty twenty four, the pitchclock with
Speaker 14: men on base reduced from twenty seconds to eighteen now,
Speaker 14: wider runner lane towards first base, and mound visits reduced
Speaker 14: from five to four. Thursday Night football in La easy
Speaker 14: win for the Rams. Saints scored a couple of late touchdowns,
Speaker 14: but the Rams won thirty to twenty two. Matthew Stafford
Speaker 14: through for three hundred and twenty eight yards. The Rams
Speaker 14: were three and six. They've now won five of their
Speaker 14: last six and at eight and seven, they're very much
Speaker 14: in it for a wildcar Clippers nine game winning street
Speaker 14: came to an end. They lost at Oklahoma City. The
Speaker 14: Lakers played without Lebron James. They lost at league leading
Speaker 14: Minnesota Johns. Dasheller Bloomberg's four.
Speaker 8: From Coast to coast, from New York to San Francisco,
Speaker 8: Boston to Washington, DC, nationwide on SYRIASXAM.
Speaker 1: The Bloomberg Business app in Bloomberg dot Com. This is
Speaker 1: Bloomberg Daybreak. Good morning, I'm Nathan Hager.
Speaker 3: Now two and a half months into the war in Gaza,
Speaker 3: Israel continues to face pressure to move its fight with
Speaker 3: Hamas into a less intense phase. The UN is moving
Speaker 3: closer to a resolution to bring more aid into the territory,
Speaker 3: and The New York Times is reporting that the US
Speaker 3: is preparing to lift a ban on offensive arm sales
Speaker 3: to Saudi Arabia as red sea shipping comes under greater attack.
Speaker 3: And for more on all this, we were joined by
Speaker 3: Bloomberg New Senior editor Bill Ferries. Bill, good morning. First off,
Speaker 3: what's the latest on this Security Council resolution on Gaza aid?
Speaker 3: This has been under debate all week long, hasn't it?
Speaker 1: It has?
Speaker 15: And if you remember earlier this month, the US was
Speaker 15: the only country voting against and effectively vetoing a UN
Speaker 15: Security Council resolution that was calling for an immediate ceasefire
Speaker 15: in the Israel Hamas war. Even US allies didn't stand
Speaker 15: in the way of that resolution. So they've been trying
Speaker 15: to hammer out something all week that could pass, and
Speaker 15: it looks like there could be a vote Friday that
Speaker 15: US said it could support support a resolution that would
Speaker 15: beef up aid deliveries to Gaza, and we don't have
Speaker 15: all the details, but which would presumably involve some sort
Speaker 15: of a cessation of hostilities. Right now, the draft that
Speaker 15: we've seen talks about working towards some kind of a ceasefire,
Speaker 15: so not declaring one at the outset, but that's been
Speaker 15: the goal along for most of the countries involved in
Speaker 15: this process. And we'll have to see what the final
Speaker 15: draft is later today and whether that goes down for
Speaker 15: a vote. But the US Ambassador to the UN signaling
Speaker 15: late last night that the US is likely to support
Speaker 15: such an effort.
Speaker 3: What's the practical impact of a resolution like this when
Speaker 3: we are hearing comments from a White House National Security
Speaker 3: spokesman John Kirby, the Secretary of State Antony Blincoln and
Speaker 3: others calling on Israel to at least de intensify the
Speaker 3: war with Gaza, the war in Gaza.
Speaker 15: Yeah, you've seen the US, particularly for for weeks now,
Speaker 15: trying to straddle this divide between signaling its support for
Speaker 15: Israel and saying it has, you know, continues to have
Speaker 15: the right to defend itself after those October seventh attacks
Speaker 15: by Hamas, but also signaling its real concern about the
Speaker 15: rising civilian death toll. And increasingly in recent weeks you've
Speaker 15: seen the focus of that balancing act shift towards the
Speaker 15: civilian death toll. And you basically have both President Biden
Speaker 15: last week before a group of fundraisers and Secretary of
Speaker 15: Saint Anthony Blincoln this week saying that they really need
Speaker 15: to see a more.
Speaker 1: Targeted approach by Israel Israel.
Speaker 15: They you know, they're talking about Israel going after AMAS leader,
Speaker 15: specific Hamas leaders, rather than maybe the broader bombing campaign
Speaker 15: that we saw in the first several weeks and in
Speaker 15: actually the first two months of this conflict.
Speaker 3: Bill What more can we say about this New York
Speaker 3: Times report that the Biden administration is getting ready to
Speaker 3: lift an offensive weapons ban on Saudi Arabia. This has
Speaker 3: to be related to some of the turmoil we're seeing
Speaker 3: in the Red Sea, doesn't it.
Speaker 11: Yeah.
Speaker 15: Absolutely, It's really interesting because you know, it shows how
Speaker 15: the world has changed in just a few years, Just
Speaker 15: two or three years ago, when there was a lot
Speaker 15: of frustration in the US about about the Saudi led
Speaker 15: war against the Huti Rebels and Yemen. It was considered
Speaker 15: one of the world's biggest humanitarian disasters at the time.
Speaker 15: And you know, in the time since, there's been a
Speaker 15: little bit of a shift I think on Saudi Arabia's part,
Speaker 15: in particular, since this band went into a place where
Speaker 15: they are, they have been more recently trying to find
Speaker 15: a diplomatic approach to the Huti Rebels. And you know,
Speaker 15: the focus that Crown Prince Mohammed ben Salman had on
Speaker 15: persecuting a war has really changed now. So the Biden
Speaker 15: administration's argument seems to be, you know, the reason that
Speaker 15: we put this ban in place no longer really exists.
Speaker 15: We can put it back in if we need to.
Speaker 15: But I think they're really trying to leverage the alliance
Speaker 15: or the partnership with the saudis to try to get
Speaker 15: them in a place where maybe they can put a
Speaker 15: little bit more pressure on the Hooties the Red Sea.
Speaker 15: It's really become a major crisis for global shipping. It's
Speaker 15: become something that threatens supply chains once again. It has
Speaker 15: a potential impact on inflation and obviously threatens human lives.
Speaker 15: If these attacks on ships passing through that region continue,
Speaker 15: it has the really the bigger issue is it has
Speaker 15: the risk of expanding this war to a much broader area.
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Speaker 1: I'm Nathan Hager and.
Speaker 2: I'm Karen Moscow. Join us again tomorrow morning for all
Speaker 2: the news you need to start your day, right here
Speaker 2: on Bloomberg Daybreak