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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager.

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Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.

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Speaker 2: Karen, we begin with fast moving developments in Washington, DC

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Speaker 2: that are threatening to shut down the government by the

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Speaker 2: end of the week. The stopgap spending bill that a

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Speaker 2: lawmakers agreed to just this week is dead. That's after

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Speaker 2: President elect Donald Trump came out against it and threatened

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Speaker 2: to oust fellow Republicans who don't meet his demands. House

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Speaker 2: Majority Leader Steve Scalise says, now it's basically back to

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Speaker 2: square one. There's still a lot of negotiations conversations going on,

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Speaker 2: but there's no many agreement. Majority Leader Steve Scalie spoke

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Speaker 2: after meeting last night with Vice President elect JD.

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Speaker 3: Vance.

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Speaker 2: Both Vance and Trump are asking for a streamlined bill

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Speaker 2: that leaves out sweetener's like one hundred billion dollars for

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Speaker 2: disaster relief and ten billion for farmers. House MINORITI leader

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Speaker 2: high Kakim Jeffrey says they had a deal.

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Speaker 4: An agreement is an agreement. It was bipartisan and there

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Speaker 4: was nothing more to say.

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Speaker 2: MINORITI Leader Hakim Jeffrey says Republicans will own any harm

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Speaker 2: that results from a government shutdown.

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Speaker 1: Well, Nathan, President elect Trump is demanding even more than

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Speaker 1: just a clean spending bill, and we get more on

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Speaker 1: that with the Bloomberg's Laura Davison.

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Speaker 5: The thing that he's really asking that is probably going

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Speaker 5: to be the most politically problematic is he also wants

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Speaker 5: to vote on raising the debt ceiling. Now, Congress was

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Speaker 5: originally slated to do this sometime this summer. Trump says

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Speaker 5: he wants to do it under Biden's watch versus under his.

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Speaker 5: This is always a tough vote. Usually there are weeks

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Speaker 5: of negotiations heading up to this. To do it in

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Speaker 5: forty eight hours is going to be a really, really

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Speaker 5: tall ask and potentially means that we could be tipping

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Speaker 5: towards shutdown territory.

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Speaker 1: And Bloomberg's Laura Davison says, Congress has until the summer

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Speaker 1: to raise the debt ceiling, but if lawmakers can't reach

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Speaker 1: a new agreement on a funding plan, the government could

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Speaker 1: shut down after midnight tomorrow night.

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Speaker 2: Well, Karen, let's turn out to mark. It's where futures

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Speaker 2: are moving higher following yesterday's FED fueled sell off on

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Speaker 2: Wall Street. The Dow Jones Industrial average fell more than

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Speaker 2: eleven hundred points, or two point six percent. The S

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Speaker 2: and P five hundred fell three percent, while the Nasdaq

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Speaker 2: was hardest hit, sliding more than three and a half percent.

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Speaker 2: The turbulence came after the Fed scaled back the number

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Speaker 2: of cuts at season twenty twenty five to two and

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Speaker 2: chared your own. Pal said future easing would require fresh

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Speaker 2: progress on inflation.

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Speaker 6: Once again, we've you know, we've had a year on

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Speaker 6: projection for inflation and it's kind of fallen apart as

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Speaker 6: we've approached at the end of the year. So that

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Speaker 6: is certainly a large factor in people's thinking. I can

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Speaker 6: tell you that might be the single biggest factor is

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Speaker 6: inflation has once again underperformed relative to expectations. It's still,

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Speaker 6: you know, going to be between two and a half

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Speaker 6: and three. It's wave below where it was, but you know,

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Speaker 6: we really want to see progress on inflation.

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Speaker 2: J Pal and Company did deliver a widely expected quarter

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Speaker 2: percentage point rate cut yesterday. Cleveland FED President Beth Hammick

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Speaker 2: was the loan dissenting vote. She preferred to hold Rate's

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Speaker 2: study well.

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Speaker 1: Nathan. Reaction is still pouring into the hawk ish tilled

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Speaker 1: by the FED, and here's black rocks Jeffrey Rosenberg.

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Speaker 7: This is a surprise to markets. And so one of

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Speaker 7: the things the markets had hoped for was a FED

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Speaker 7: that was very much leaning towards easy financial conditions, focusing

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Speaker 7: more on the labor side than on the inflation side,

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Speaker 7: and that was pretty supportive to financial conditions and taking risks.

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Speaker 7: So you see the market reactions not what markets were expecting,

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Speaker 7: and so certainly that's a little bit less favorable environment

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Speaker 7: for risk taking.

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Speaker 1: In addition to blackrocks Jeffrey Rosenberg, we also cut up

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Speaker 1: with former Fed economist and Bloomberg opinion columnist Claudia sam We.

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Speaker 5: Know this FED like we have watched this Fed.

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Speaker 1: It is a one that understands the dual mandate and

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Speaker 1: it's very data driven.

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Speaker 5: Everything's going to hinge on what do we actually see

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Speaker 5: next year.

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Speaker 8: I mean, these projections are not that informative.

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Speaker 6: Is what are we facing?

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Speaker 1: And former Fed economist and Bloomberg opinion columnist Claudia Som

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Speaker 1: fifteen of nineteen officials now see a higher risk inflation

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Speaker 1: will exceed their expectations, as a massive shift from the

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Speaker 1: three who felt the same back in September Well Karen.

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Speaker 2: Monetary policy is also in focus around the world. This morning,

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Speaker 2: the Bank of Japan kept its policy rate unchanged, with

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Speaker 2: the benchmark remaining at around a quarter percent. However, the

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Speaker 2: end is weakening after comments by BOJ Governor Coswell Awaita

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Speaker 2: cast doubt on whether the bank could hike interest rates

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Speaker 2: in January.

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Speaker 1: Well, next Nathan, it is the Bank of England's turn.

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Speaker 1: Economists expect the BOE to hold interest rates. Study today

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Speaker 1: Bloomberry Chief UK economist Dan Hansen says there is still

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Speaker 1: scope for policymakers to cut rates in twenty twenty five.

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Speaker 9: I think there's probably more room for the Bank of

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Speaker 9: England's cut interest rates next year, so we think they'll

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Speaker 9: get down to three point seventy five percent, So that's

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Speaker 9: one hundred basis points cuts, which is obviously a lot

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Speaker 9: more than the market has at the moment. The market's

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Speaker 9: got about sixty. I think what that comes down to

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Speaker 9: really is your view about this idea of the neutral

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Speaker 9: rate and how well the rate that neither speeds up

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Speaker 9: nor slows down the economy.

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Speaker 1: In Bloomberg, Dan Hansen says BOE Governor Andrew Bailey and

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Speaker 1: his colleagues are likely to strike a conscious tone given

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Speaker 1: the inflation threats brewing at home and abroad.

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Speaker 2: And speaking of abroad, Karen, Sweden's central bank acted today,

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Speaker 2: lowering its benchmark rate by twenty five basis points to

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Speaker 2: a two year low of two and a half percent.

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Speaker 2: It also signaled its easing campaign is likely to be

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Speaker 2: wrapping up, with one cut left to deploy. Norway's Central

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Speaker 2: Bank kept its benchmark interest rate unchanged well.

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Speaker 1: Checking some stocks on the move here in the US,

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Speaker 1: Nathan shares of Micron. They are plunging down fourteen and

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Speaker 1: a half percent this morning. The largest US maker of

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Speaker 1: computer memory chips. Second quarter revenue forecast missed projections by

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Speaker 1: about one billion dollars. It was hurt by sluggish demand

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Speaker 1: for smartphones and personal computers.

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Speaker 2: Shares of Lenar carrying They're down more than five percent.

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Speaker 2: The homebuilders forecast for new orders in the first quarter

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Speaker 2: missed analysts.

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Speaker 1: Estimates, and now Nathan, a Bloomberg exclusive, Apple is close

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Speaker 1: to getting Indonesia to lift its ban on iPhone sixteen sales.

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Speaker 1: The move comes after the country's president gave his approval

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Speaker 1: for the government to accept a one billion dollar investment

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Speaker 1: from the US tech giant. The country prohibited the sale

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Speaker 1: of Apple's flagship device last month, saying Apple had failed

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Speaker 1: to comply with domestic content requirements for smartphones and tablets.

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Speaker 1: And it's time now for a look at some of

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Speaker 1: the other stories making news in New York and around

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Speaker 1: the world. And for that we're joined by Bloomberg's John Tucker. John,

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Speaker 1: Good morning, Yeah, Good.

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Speaker 3: Morning, Karen. Well. Just in time for the holiday rush,

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Speaker 3: Amazon warehouse employees and contract drivers and four states planned

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Speaker 3: to walk off the job this morning. Bloomberg' Jeff Bellinger's

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Speaker 3: here with more.

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Speaker 8: Groups of workers at seven locations in California, New York, Illinois,

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Speaker 8: and Georgio will go on strike, and Teamster's local unions

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Speaker 8: will put up picket lines at hundreds of Amazon fulfillment

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Speaker 8: centers nationwide. The move comes after the Teamsters called on

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Speaker 8: Amazon to recognize its units and come to the bargaining

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Speaker 8: table to negotiate a contract. The union says the company

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Speaker 8: ignored the demands. Amazon says the Teamsters have intentionally misled

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Speaker 8: the public about union efforts at the company and threatened workers.

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Speaker 8: Jeff Bellinger, Bloomberg Radio.

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Speaker 3: The suspect charged with the shooting death of a health

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Speaker 3: insurance company executive on Manhattan Street will be in courts today.

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Speaker 3: In Pennsylvania, the AP reports Luigi Mangioni's expended wave extradition

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Speaker 3: clearing the way for his return to New York. It

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Speaker 3: could make the trip as soon as today. Mangioni faces

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Speaker 3: charges of murder as an act of terrorism in New York.

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Speaker 3: The Federal Aviation Administration it's warning the public against pointing

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Speaker 3: lasers at aircraft. This comes after a significant uptick and

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Speaker 3: reports amid the drone frenzy in the Northeast. Pilot reports

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Speaker 3: of laser strikes in New Jersey have increased to two

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Speaker 3: hundred and sixty nine percent. The FBI warns of an

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Speaker 3: increase in pilots being hit in the eyes by lasers

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Speaker 3: by people on the ground who've mistaken them for drones.

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Speaker 3: Subwayfairs and bridge tolls going up in New York. The MTA,

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Speaker 3: the largest mass transit provider in the US, approved a

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Speaker 3: nearly twenty billion dollar operating budget for twenty twenty five.

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Speaker 3: It includes a planned four percent fare and total increase.

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Speaker 3: The spending plan also assumes that a congestion pricing program

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Speaker 3: will begin on January fifth and San Francisco has lost

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Speaker 3: its top tier credit rating from S and P Global Ratings,

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Speaker 3: citing the city's projected eight hundred and seventy six million

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Speaker 3: dollar deficit over the next two years and weekend business

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Speaker 3: and property tax growth as reasons for the downgrade. Global

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Speaker 3: News twenty four hovers a day and whatever you want

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Speaker 3: it with Bloomberg News Now. I'm John Tucker. This is Bloomberg. Karen.

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Speaker 1: All right, John, thank you time now for the Bloomberg

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Speaker 1: Sports Update, brought to you by try Stan Outi. Here's

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Speaker 1: John Stashauer learning.

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Speaker 10: Good morning, Aaron. The next play tonight at Minnesota. It

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Speaker 10: was back in early October that the two teams made

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Speaker 10: the big trade, a swap of all star big men

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Speaker 10: Karl Anthony Towns for Julius Randall. The Nicks also dealt

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Speaker 10: Dante DiVincenzo. Nicks a pleased with the results, Town's averaging

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Speaker 10: twenty five points fourteen rebounds, Randall with the Timberwolves averaging

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Speaker 10: twenty a game. Before facing his former team, he looked

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Speaker 10: back on his time with the Knicks.

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Speaker 4: It's been a certain amount of time in the place,

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Speaker 4: New York, you know, going there five years ago, and

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Speaker 4: you know, having a goal in mind. You know, to

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Speaker 4: accomplish a lot of great things and you know a

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Speaker 4: lot of bluff sweatings. Here is putting into you know

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Speaker 4: that organization in uniform.

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Speaker 10: David Cenzone is one season with the Knicks at the

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Speaker 10: club record for most three pointers made. The Devils are

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Speaker 10: now sitting first place in the Metropolitan Division. Played tonight

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Speaker 10: at Columbus Devil's on the Monster road game in a month.

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Speaker 10: Rangers mean, while only three wins their last fourteen games,

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Speaker 10: they just made a trade. They sent Capbocacko to Seattle

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Speaker 10: for defenseman Will Borgan and two draft picks. Kaka was

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Speaker 10: the second overall pick of the twenty nineteen draft. Did

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Speaker 10: not live up to that. Moorgan could be a Ranger

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Speaker 10: of rent, though he could be a free agent after

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Speaker 10: the season. Max Freed was a free agent. The deally

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Speaker 10: signed with the Yankees was eight years, two hundred and

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Speaker 10: eighteen million dollars, most of it for a left handed pitcher.

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Speaker 10: Freed was at the stadium yesterday. He took a virtual

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Speaker 10: tour before signing and that included a visit to the

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Speaker 10: Yankee clubhouse.

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Speaker 11: Three words that were put on, you know, up on

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Speaker 11: the wall and it's prepared, compete and win. And I

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Speaker 11: thought a lot about that, and to me as a

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Speaker 11: competitor and just to me as a corp as a player. Uh,

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Speaker 11: they really resonated with me.

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Speaker 10: Yankee GM Brian Cashman said, We've done some heavy lifting,

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Speaker 10: got more to do. They scheduled to sit down with

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Speaker 10: Japanese picture in Rokie Suzaki. NFL tonight at AFC West

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Speaker 10: Broncos Chargers both looking like they'll be AFC wildcard teams

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Speaker 10: they play in La John Stashawer, Bloomberg Sports, Karen Nathan.

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Speaker 2: Coast to Coast on Bloomberg Radio nationwide on Syrias XM

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Speaker 2: and around the world on Bloomberg dot Com and the

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Speaker 2: Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm

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Speaker 2: Nathan Hager. Where the holiday spirit maybe run a little

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Speaker 2: cold In Washington, d C. President elect Donald Trump has

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Speaker 2: come out against the funding bill that was just agreed

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Speaker 2: to this week, and we'd keep the government from shutting

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Speaker 2: down after tomorrow night. And that is prompting one key

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Speaker 2: question for House Majority Leader Steve Scalise officially not right.

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Speaker 4: Yes.

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Speaker 2: Congressman Steve Scalie says the current continuing resolution on as

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Speaker 2: the cr is dead. Joining us this morning, Bloomberg new

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Speaker 2: senior editor Bill ferries the perennial question about Washington, DC, Bill,

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Speaker 2: what is going on in the nation's capital.

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Speaker 12: Good morning, Hey, good morning, Nathan. Well, it's a meltdown.

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Speaker 12: I think that's still in progress. We're going to learn

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Speaker 12: a lot more today. I'm sure it was not a

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Speaker 12: pleasant night for Speaker John or at least not for

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Speaker 12: his staff trying to figure out what the next plan

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Speaker 12: is here you heard from you heard from a congressman's

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Speaker 12: police right there. There did not appear to be a

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Speaker 12: plan B in case Donald Trump stepped in and voiced

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Speaker 12: his opposition as he did. So they're kind of be

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Speaker 12: scrambling to come up with alternatives to prevent the government,

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Speaker 12: or at least government part of the government, from shutting

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Speaker 12: down as soon as this weekend. But certainly, you know,

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Speaker 12: I think the Speaker and a lot of Republicans were

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Speaker 12: celebrating to the fact that they got this deal done.

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Speaker 12: Now it looks like they're going to have to figure

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Speaker 12: out an alternative strategy here.

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Speaker 2: What is it the President elect Trump is objecting to

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Speaker 2: in Plan A. I mean, a lot of the sweeteners

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Speaker 2: we've been talking about in this continuing resolution were things

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Speaker 2: that Republicans wanted, weren't they?

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Speaker 12: Yeah, I mean, you know, so on top of the

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Speaker 12: continuing Resolution just to keep government agencies going at the

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Speaker 12: levels they had been previously funded at, there was one

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Speaker 12: hundred billion dollars in there for disaster relief in the

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Speaker 12: aftermath of some of those the pair hurricanes we had

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Speaker 12: last year. Some of that money was also destined to

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Speaker 12: help rebuild the Baltimore Key bridge that collapsed. There's an

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Speaker 12: extension of the farm bill, There's ten billion dollars in

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Speaker 12: additional aid to farmers. There's five hundred million dollars for

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Speaker 12: childcare funds. So there's a lot of other measures in

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Speaker 12: there too, not necessarily all spending, but it sounds like,

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Speaker 12: I mean, what we can figure out from what we've

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Speaker 12: heard from the President elect, what we've heard from Vice

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Speaker 12: President elect jd Vance, and frankly what we've heard from

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Speaker 12: Elon Musk, is that Donald Trump would like to see

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Speaker 12: a clean continuing resolution, so a lot of those sweeteners

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Speaker 12: stripped out of there, and he really wants a deal

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Speaker 12: to lift the debt ceiling under this Congress. So it's

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Speaker 12: not something that he has to deal with, let's say,

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Speaker 12: next summer, in the early months of his presidency. That

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Speaker 12: to me, I think is one of the big things

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Speaker 12: they'll have to figure out if they can do now.

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Speaker 12: He wants he wants Joe Biden, he wants Democrats in

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Speaker 12: Congress to have to h to support that kind of

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Speaker 12: a measure. Lifting raising the debt ceiling all always a

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Speaker 12: tough vote for Republicans. It's just not clear whether they'll

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Speaker 12: be able to do that in the in the time remaining.

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Speaker 2: Yeah, that debate over a debt ceiling. I mean, as

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Speaker 2: you say, it's not supposed to be lifted potentially until

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Speaker 2: later on this summer in our last minute bill. Is

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Speaker 2: this a preview of fights to come between President elect

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Speaker 2: Trump and not just Democrats but his own Republicans.

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Speaker 12: Absolutely, I mean, I think this is going to be

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Speaker 12: the roadmap for what's coming. I mean, you think about

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Speaker 12: Speaker Johnson, He's already had to negotiate with the with

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Speaker 12: the with the President elect. He's had to negotiate with

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Speaker 12: Democrats and Congress and uh, and he's had noigate some

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Speaker 12: at some level with the White House. Last night, he

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Speaker 12: said he was also in the middle of texting Elon

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Speaker 12: Musk and vivek Ramas Swami about this legislation. So he's

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Speaker 12: got all these different people and parties he's got to

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Speaker 12: work with, including his own caucus. It's going to be

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Speaker 12: a very very bouncy, very tumultuous twenty twenty five in

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Speaker 12: particular for him.

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