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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Good morning, It's Tuesday, the twenty third of December. I'm

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Speaker 2: Caroline Hepga in London. Coming up today, Donald Trump warns

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Speaker 2: Venezuela not to play tough as the President seeks to

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Speaker 2: reshape the US diplomatic service. Mouthful of profit noa nor

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Speaker 2: disk wins US regulatory approval to sell a weight loss

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Speaker 2: pill from January, plus a confidence boost. UK businesses end

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Speaker 2: twenty twenty five more upbeat after being sped major tax hikes.

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Speaker 2: Let's start with the roundup of our top stories. President

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Speaker 2: Donald Trump is continuing to reshape America's foreign policy as

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Speaker 2: he ramps up pressure on Venezuela. In a press conference yesterday,

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Speaker 2: the leader warned President Nicolas Maduro not to challenge the US.

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Speaker 3: We have a message or a minor form, the biggest

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Speaker 3: we've ever heard and by far the biggest we've ever

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Speaker 3: had in South America. He could do whatever, much to

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Speaker 3: do it, whatever he wants to do, if he wants

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Speaker 3: to do something. If he placed tough, it will be

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Speaker 3: the last time he's ever everyone played out.

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Speaker 2: President Trump has repeatedly threatened to strike Venezuela's territory in

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Speaker 2: recent weeks and has stepped up a blockade of the

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Speaker 2: country's oil exports, sources tell Bloomberg. The President has also

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Speaker 2: asked dozens of US ambassadors to step down in recent days.

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Speaker 2: What's more, the President announced that the US Navy would

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Speaker 2: build a new class of battleship named after him. The

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Speaker 2: president breaking moves come as a report from the Union

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Speaker 2: for America's Diplomats WARN's US diplomacy is being quote decimated

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Speaker 2: from within. In corporate news, Larry Ellison has pledged forty

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Speaker 2: billion dollars of his personal wealth to boost Paramount's bid

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Speaker 2: for Warner Brothers Discovery. The billionaire who built his fortune

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Speaker 2: with Oracle is aiming to give his son, Paramount CEO

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Speaker 2: David Ellison, the advantage in a fiercely contested takeover battle

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Speaker 2: with Netflix. Bloomberg Intelligences senior credit analyst Stephen Flynn says

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Speaker 2: the change is just one of a number of adjustments

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Speaker 2: made in order to strengthen Paramount's bids.

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Speaker 4: Yeah.

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Speaker 5: Well, so, mid last week, the Warner Brothers Discovery board

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Speaker 5: recommended shareholders do not participate in the tenor offer, and

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Speaker 5: they listed the reasons why. Now what Paramount this morning

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Speaker 5: has done is kind of addressed many of those reasons,

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Speaker 5: particularly given the Larry Albison guarantee. So I believe Paramount

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Speaker 5: is going to see how many shares they yet to

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Speaker 5: participate in the tenor offer, and if they need to,

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Speaker 5: you know, conversations with shareholders, if they need to raise

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Speaker 5: it to a certain level at those Shuggle are still

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Speaker 5: comfortable with that, imagine that's what they would do.

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Speaker 2: Stephen Flynn from Bloomberg Intelligence speaking there yesterday, Warner Brothers

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Speaker 2: confirmed that it had received Paramount's amended offer and said

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Speaker 2: that it would evaluate the proposal, but the company says

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Speaker 2: that it still supports Netflix. Is competing offer. Nova nordisks

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Speaker 2: one approval to sell a pill version of its blockbuster

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Speaker 2: obesity drug wegav in the US. According to a statement,

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Speaker 2: Novote will start selling the pill in the US in

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Speaker 2: January to patients, set a starting price of one hundred

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Speaker 2: and forty nine dollars a month in cash, or potentially

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Speaker 2: for as little as twenty five dollars per month with

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Speaker 2: insurance cover. It's a crucial step in Novo's efforts to

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Speaker 2: defend its market share from rival Eli Lilly, which says

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Speaker 2: that its own oral OBEs drug could be approved by March.

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Speaker 2: Nova Nordisk also says that its bids for approval in

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Speaker 2: Europe and other parts of the world were filed in

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Speaker 2: the second half of twenty twenty five. Bank of America's

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Speaker 2: CEO says that artificial intelligence is starting to have a

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Speaker 2: bigger impact on the US economy. Brian Moynhern told Bloomberg

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Speaker 2: that the new technology is part of the bank's positive

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Speaker 2: forecast for twenty twenty six.

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Speaker 6: We go from basico two percent type of growth level

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Speaker 6: this year plus or mindus up to two point four percent,

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Speaker 6: which is all due to that in AIS kicking and

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Speaker 6: more and more, and so it's not all a tributable AI,

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Speaker 6: but that's having a marginal impact is pretty strong.

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Speaker 2: Menerhan added that the bank itself is now using its

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Speaker 2: own custom AI bots. The CEO's comments come as business

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Speaker 2: leaders debate whether there is a bubble in the AI space.

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Speaker 2: Billions of dollars have been pledged, but the returns and

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Speaker 2: when they will appear are still hard to gauge. Here

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Speaker 2: In the UK, businesses end this year feeling more upbeat.

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Speaker 2: Lloyd's Bank says that its gauge of business optimism rows

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Speaker 2: five points to a net balance of forty seven percent

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Speaker 2: in December. The figures add to evidence from the PMIS

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Speaker 2: suggesting business confidence bounce back after Chancellor Rachel Reeves unveiled

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Speaker 2: her fiscal plans in last month's budget. Reeves has vowed

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Speaker 2: to beat forecasts that point to pedestrian levels of economic

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Speaker 2: growth in the coming years. So those are some of

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Speaker 2: our top stories for you this morning. In terms of

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Speaker 2: the market, it's very interesting that we go into year

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Speaker 2: end with a global stocks rally. Yes, we're inching high.

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Speaker 2: The all country well did decks is up a tenth

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Speaker 2: of one percent. We've seen games for four sessions in

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Speaker 2: a row after a record high on Monday. Also for

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Speaker 2: the global stock index. The Japanese yea and also interesting

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Speaker 2: this morning, it strengthened quite aggressively after a warning from

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Speaker 2: the Finance Minister Satsuki Katayama, who said that the country

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Speaker 2: has a free hand to take bold action against currency moves.

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Speaker 2: Some of that has faded a little bit, but the

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Speaker 2: yen is still stronger six tents of one percent against you.

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Speaker 2: It still one hundred and fifty six spot zero six. Also,

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Speaker 2: you have gold, a fiftieth day of record highs for

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Speaker 2: the yellow metal up seven tens of one percent four

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Speaker 2: four hundred and seventy six dollars. You have the S

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Speaker 2: and P five hundred EMAII futures this morning in the red,

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Speaker 2: but we did erase all of December's losses on Monday

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Speaker 2: for the S and P five hundred and one European note.

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Speaker 2: European car sales rising two point four percent in November,

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Speaker 2: the latest data that we've had out this morning, So

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Speaker 2: those are the markets. In a moment, we're going to

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Speaker 2: bring you the latest on Venezuela, as President Maduro sounds

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Speaker 2: more conciliatory, it would seem, and will also bring you

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Speaker 2: the latest on the markets and this year end rally.

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Speaker 2: But before that, another story has caught my attention this morning. Parently,

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Speaker 2: dessert wines are making a comeback. Not only are they

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Speaker 2: more affordable than a red wine from a similar year,

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Speaker 2: but apparently they pair beautifully with desserts. Of course, as

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Speaker 2: the name would imply, but it also has to do

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Speaker 2: with the business of running a restaurant. A lot of

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Speaker 2: restaurants are doing away with pastry chefs, and so they're

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Speaker 2: filling their menus with things like sweeter drinks with cheese

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Speaker 2: courses that are simpler to prepare, maybe also boost their

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Speaker 2: bottom line a little bit. It's a push to change

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Speaker 2: people's skepticism also about dessert wines, because apparently people are

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Speaker 2: very skeptical about them. Is basically too sweet or unsophisticated.

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Speaker 2: But I learned from Bloomberg's Elena Didyk and her story

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Speaker 2: on this that actually still a lot of adults don't

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Speaker 2: consume al colat all fifty four percent. I didn't realize

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Speaker 2: it was that high, according to the latest gallop Pole.

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Speaker 2: But she points to Portuguese madeira, to French sootowns, and

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Speaker 2: to Hungarian dessert wines, all making renewed appearances apparently on

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Speaker 2: menus around the world and in sort of fine dining establishments. Anyway,

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Speaker 2: I'll be on the lookout for that perhaps this festive season.

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Speaker 2: We'll put a link to that article in our show notes.

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Speaker 2: You can read all about it now. President Donald Trump

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Speaker 2: has warned President Nicholas Maduro that he may well keep

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Speaker 2: oil seats from a super tanker, but he declined to

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Speaker 2: say if he's seeking to oust the Venezuelan leader. Joining

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Speaker 2: us now for more on this story, Bloomberg's senior editor

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Speaker 2: Brian Fowler Brian, good to speak to you today on

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Speaker 2: what is really much multi prongs and quite complex story

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Speaker 2: in some ways. Firstly, what is just happening with the

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Speaker 2: oil tank is off of Venezuela themselves.

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Speaker 1: Yeah, so this whole, this US campaign in the Caribbean

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Speaker 1: has continued to evolve from what started as anti drug

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Speaker 1: trafficking operations and now it's become something more amorphous. The

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Speaker 1: US has boarded two tankers so far, two of them

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Speaker 1: were over the weekend. One was in Panamanian flag vessel

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Speaker 1: that had loaded Venezuelan oil and I guess had disconnected

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Speaker 1: its transponder, and the US is in pursuit of a

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Speaker 1: third tanker called the below one, which it has determined

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Speaker 1: was not flying a valid national flag, and that chase continues.

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Speaker 1: But loadings are still happening at a roughly normal pace.

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Speaker 1: Since December eleventh, more than a dozen tankers have loaded

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Speaker 1: oil off Venezuela's coast, and at least six of those

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Speaker 1: ships are posedly under sanctions. So the work continues, and

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Speaker 1: the US continues to clamp down and send threats saying

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Speaker 1: it'll seize the oil and also warning yes, as you mentioned,

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Speaker 1: Maduro should not try to fight back against This.

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Speaker 2: Could escalate further because President Trump has repeated the threat

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Speaker 2: of land strikes again, this idea of hitting drug trafficking operations.

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Speaker 1: Yeah, exactly, it really it could escalate. He said, We're

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Speaker 1: going to have the same success on land. And it's

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Speaker 1: kind of hard to really imagine this sending US trips troops,

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Speaker 1: land troops to Venezuela, but that is what.

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Speaker 7: He has said.

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Speaker 1: And we've already had some opposition from around the world,

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Speaker 1: particularly from China. China is the number one importer of

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Speaker 1: Venezuelan oil, and it's criticized what the US is doing

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Speaker 1: as illegal, and we even have people in the US

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Speaker 1: government saying that they're seeing things that be very alarming

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Speaker 1: around Paul said, he sees this as basically a prelude

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Speaker 1: to war.

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Speaker 2: Yeah, and so to the question, is Venezuela actually about China.

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Speaker 1: Certainly China is part of it. This is one more

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Speaker 1: way for the US to apply pressure to China, especially

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Speaker 1: on its energy needs. But we haven't had the US

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Speaker 1: saying anything directly about that. Trump has stopped short of

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Speaker 1: saying that he's pursuing a regime change in Venezuela, but

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Speaker 1: members of his cabinet have been a lot more clear

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Speaker 1: on that. Christy Non, the Home Security Secretary, said it's

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Speaker 1: time for him to go. He needs to be gone.

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Speaker 1: So it's clear that people around Trump see this as

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Speaker 1: all about changing the regime in Venezuela for now.

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Speaker 2: Meanwhile, the US foreign policy itself is being reshaped. People

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Speaker 2: familiar saying that President Trump has ordered dozens of US

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Speaker 2: ambassadors to step down, so not necessarily firing them, but

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Speaker 2: sort of recalling. This does seem very signal, doesn't it.

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Speaker 1: It does, indeed, and it will certainly shake up, you know,

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Speaker 1: the process of building relationships with our allies. I mean

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Speaker 1: another story, we had Trump talking about Greenland overnight and

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Speaker 1: he's getting ready to send his new envoy there, Jeff Landry,

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Speaker 1: and Trump describes him as a deal maker type guy,

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Speaker 1: and then he says, well, you know, we want Greenland

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Speaker 1: and we need it now. We need it because of

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Speaker 1: national security reasons. That's not something that's going to play

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Speaker 1: well with our allies overseas. We've already had the European

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Speaker 1: Commissioned President Ursula vonder Lane saying that the EU stands

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Speaker 1: in full solidarity with Denmark and the people of Greenland.

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Speaker 1: So she's putting a line in the sand there saying

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Speaker 1: that the importance of territorial integrity and sovereignty is number one.

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Speaker 2: Yeah. Indeed, so that is also another story that we're

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Speaker 2: going to keep a close eye on that semi autonomous

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Speaker 2: island Greenland. That President John has said that she doesn't

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Speaker 2: want Greenland for minerals or oil, but for security. But yes,

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Speaker 2: the threat also against Greenland seems very pertinent. Brian, Thank

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Speaker 2: you so much for being with us this morning talking

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Speaker 2: about well, President Trump really pursuing foreign policy agendas. As

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Speaker 2: you say, Brian Fowler there this morning, Thank you for

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Speaker 2: your time, stay with us. More from Bloomberg daybakeup coming

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Speaker 2: up after this, right, let's go from well, foreign policy

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Speaker 2: to what's happening in the markets. Global stocks have extended

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Speaker 2: their record breaking run today. Gold has broken through another

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Speaker 2: all time record high for a fiftieth day this year,

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Speaker 2: and we did get the we will get the last

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Speaker 2: big reading of the US economy for twenty twenty five.

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Speaker 2: Joining me is Bloomberg's cross assets strategist Ven Ram to

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Speaker 2: discuss Ven good morning, what is driving this stock rally

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Speaker 2: and what is a very light holiday week.

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Speaker 4: It seems to me that it's like the market front

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Speaker 4: running the January effect, where people generally bid up stocks

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Speaker 4: at the start of the year's fund managers open allocations

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Speaker 4: for the year. Now we all know the feel good

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Speaker 4: story in the markets, the promise of AI, its effect

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Speaker 4: on productivity and earnings. But even so, I don't think

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Speaker 4: it's going to be a slam drunk for the markets

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Speaker 4: in the new year. They're going to be testing periods.

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Speaker 4: There are bound to be a lot of questions around

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Speaker 4: capital spending and when exactly the payoff around that spending

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Speaker 4: will come. But even so, the big posal from traders, Carolin,

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Speaker 4: is that you know, they seem to be asking the

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Speaker 4: question shows one overwhelming reason why we should be selling

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Speaker 4: down stocks viciously from here. And apart from overstretched valuations,

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Speaker 4: which speculators just don't care about, there isn't any and

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Speaker 4: that's what worries me. Overstretched valuations or warning definitely, but

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Speaker 4: they sell them a catalyst for trading action, and that's

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Speaker 4: why I'm kind of concerned. That's what would keep should

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Speaker 4: keep up investors at night.

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Speaker 2: Yes, yes, I suppose, when there's so much relitionists, one

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Speaker 2: has to ask why, whether it's justified, and so on

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Speaker 2: do you think that gold, you know, would be in

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Speaker 2: the kind of position that it is in now when

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Speaker 2: you think back to the start of this year, because

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Speaker 2: that's the other extraordinary stories, is this record breaking run

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Speaker 2: for brillion.

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Speaker 4: It's very incredible, isn't it. I mean, to be honest,

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Speaker 4: I was constructive, but not certainly not so for rish

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Speaker 4: that I foresaw a seventy percent rally. I mean, this

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Speaker 4: is the stuff of fairy tales. Bullion has never had

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Speaker 4: such a good year in the modern era, except in

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Speaker 4: nineteen seventy nine when it went even higher. The point

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Speaker 4: is that those who bought into the height of that

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Speaker 4: bubble back then had to cool their heels for decades

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Speaker 4: before they even broke even so, yet, given the momentum

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Speaker 4: that gold has, it is likely that you know, five

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Speaker 4: thousand dollars announced, it's becoming more of a self fulfilling

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Speaker 4: prophecy for the markets. So it is likely that you'll

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Speaker 4: see gold pushed through that level next year, perhaps early

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Speaker 4: next year, at the pace it's galloping, but it's I

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Speaker 4: want to see it pushing higher from there. The fair

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Speaker 4: value of gold cattle in based on inflation, central bank purchases,

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Speaker 4: and the dollar is at around three thousand dollars an ounce,

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Speaker 4: So the risks reward point investors from here is lopsided

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Speaker 4: and they should definitely keep in mind what happened in

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Speaker 4: nineteen seventy nine.

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Speaker 7: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 7: stories making news from London to Wall Street and beyond.

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Speaker 2: I'm Caroline Hepka.

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