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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 1: Karen, the rise in futures follows yesterday's selloff on Wall Street.

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Speaker 1: All three major indexes fell at least one and a

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Speaker 1: quarter percent. Risk assets took a breather after this month's

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Speaker 1: rally saw global stocks climb to their highest level of

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Speaker 1: the year. Alan Zapfron is a founding partner in co

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Speaker 1: CEO at IEQ Capital.

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Speaker 3: The market's probably a little bit ahead of itself with

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Speaker 3: full anticipation rate hikes are over cuts are coming, but

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Speaker 3: there's probably a bit too much near term enthusiasm. Albeit

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Speaker 3: the long term constructive view on the American economy. Rates

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Speaker 3: the same equities are part of a well diversified portfolio,

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Speaker 3: and you can't deny that you still need to have

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Speaker 3: some equity exposure.

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Speaker 1: I EQ Capitals. Alan Zaffren says overbought conditions also contributed

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Speaker 1: to yesterday selling well.

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Speaker 2: Nathan helping give a lift to equities this morning, as

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Speaker 2: Micron Technology shares are up about six percent after the

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Speaker 2: company gave a strong revenue forecast for the current period.

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Speaker 2: We get the story from Bloomberg's Charley Pellet.

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Speaker 4: Micron is the largest American maker of memory semiconductors, and

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Speaker 4: the quarter indicates that data center demand is helping make

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Speaker 4: up for a slowly recovering market for PCs and smartphones.

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Speaker 4: Micron said fiscal second quarter revenue will be five point

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Speaker 4: one to five point five billion dollars. Now that compares

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Speaker 4: with an average analysestimate of four point nine to nine billion.

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Speaker 4: The outlook signals that Micron is through the worst of

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Speaker 4: an industry wide slump, a moving back toward profitability in

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Speaker 4: New York, Charlie Pellett Bloomberg Radio.

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Speaker 1: All right, Charlie, thank you, and other high tech companies

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Speaker 1: in the spotlight.

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Speaker 5: Today is the day.

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Speaker 1: Apple plans to pull Series nine and Ultra two models

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Speaker 1: of its flagship smart watch from its online store. Apple

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Speaker 1: will also pull the watches from its physical retail locations

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Speaker 1: on Christmas Eve. This is because of a patent dispute

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Speaker 1: over technology that measures the amount of oxygen in a

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Speaker 1: user's blood.

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Speaker 2: Nathan. The US is reportedly considering raising tariffs on Chinese

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Speaker 2: electric cars. Bloomberg's Amy Morris has the details from Washington.

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Speaker 6: The Biden administration has for the most part left the

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Speaker 6: trompera tariffs in place on about three hundred billion dollars

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Speaker 6: of Chinese goods. Now, the White House is considering more

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Speaker 6: levies on evs and solar products. The Wall Street Journal

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Speaker 6: reports the US wants to limit reliance on China, which

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Speaker 6: has become a global powerhouse in electric cars, while shielding

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Speaker 6: its own green industry. A bipartisan group of lawmakers earlier

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Speaker 6: this month recommended raising tariffs on goods from China and

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Speaker 6: restricting investment in the country. China says raising tariffs would

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Speaker 6: undermine the security of the global supply chain. In Washington,

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Speaker 6: Amy Morris Bloomberg Radio.

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Speaker 1: All right, Amy, thank you. Now let's get to the

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Speaker 1: latest from the Middle East. The US continues to urge

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Speaker 1: Israel to move its war with Hummas from a large

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Speaker 1: scale assault to a more targeted operation in Gaza, but

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Speaker 1: Secretary of State Antony Blincoln says there's been too much

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Speaker 1: focus on calls for just Israel to end the war.

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Speaker 7: There seems to be silence on what Humas could do,

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Speaker 7: should do, must do if we want to, and the

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Speaker 7: suffering of innocent men, women and children. It would be

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Speaker 7: I think good if the world could unite around that

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Speaker 7: proposition as well.

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Speaker 1: The Secretary Blinken spoke as Israel's military says it's uncovered

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Speaker 1: a major Hamas command center in the heart of Gaza City.

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Speaker 1: The top Hamas leader is in Egypt for talks on

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Speaker 1: a new ceasefire and hostage prisoner exchanges with Israel.

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Speaker 2: Well Nathan Yemen's Houthi rebels say they will continue targeting

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Speaker 2: ships in the Red Sea, despite US moves to build

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Speaker 2: an international naval task force to protect trade in the region.

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Speaker 2: The Iran backed group also warrant it's willing to retaliate

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Speaker 2: at the US attack who the bases, signaling possible for

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Speaker 2: their escalation. Senior White House Advisor for Energy and Investment

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Speaker 2: Almos Hakstein says the BODI and administration is focused on

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Speaker 2: defensive action.

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Speaker 8: The United States has joined now in a coalition of

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Speaker 8: approximately ten countries already in making sure that there are patrols, surveillance,

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Speaker 8: patrols of aircraft and ships, and to take defensive measures

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Speaker 8: if needed. We continue to have other conversations with allies

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Speaker 8: to ensure that we have a coalition, and reason for

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Speaker 8: that is because this is not a US concern, this

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Speaker 8: is a global markets concern.

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Speaker 2: And Almos Hakstein spoke to Bloomberg after the US and

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Speaker 2: UK Navy shot down fifteen drones launch from who decontrolled

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Speaker 2: areas of Yemen over the weekend.

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Speaker 1: Back home, on the political front, Caaren Donald Trump's legal

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Speaker 1: team is urging the Supreme Court to hold off on

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Speaker 1: intervening in his election obstruction case. We get that story

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Speaker 1: from Bloomberg's Ed Baxter.

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Speaker 5: This is the case brought by Special counsel Jack Smith,

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Speaker 5: saying Trump conspire to overturn the twenty twenty election. Smith

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Speaker 5: requested the consideration of Trump's immunity claim, seeking to ensure

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Speaker 5: the trial can start on March fourth. Trump's lawyers are

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Speaker 5: arguing there has not been identification of a compelling reason

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Speaker 5: for the quote's extraordinary haste he proposes. Trump has long

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Speaker 5: said he wants the cases put off until after the

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Speaker 5: twenty twenty four election. This is the first Trump criminal

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Speaker 5: case to hit the Supreme Court, and the court could

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Speaker 5: rule as early as this week whether it will hear it.

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Speaker 5: Ad Baxter Bloomberg Radio, All.

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Speaker 2: Right, Ed, thank you, Let's turn to some company news.

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Speaker 2: Toyota Motor is recalling about one million vehicles sold in

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Speaker 2: the US that are at risk of having passenger side

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Speaker 2: airbags failed to deploy properly due to a passenger seat

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Speaker 2: sensor issue. They affect some Toyota and Lexus brand Sedan's.

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Speaker 2: Toyota also said subsidiary Daihatsu Motors offices were rated over

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Speaker 2: a safety scandal, and Toyota shares dropped four percent in Asia.

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Speaker 1: And Karen, A mega media deal maybe in the works.

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Speaker 1: Bloomberg News has learned Warner Brothers Discoveries held talks on

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Speaker 1: a possible merger with Paramount Global. A combination would unite

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Speaker 1: the Paramount and Warner Brothers film and TV studios and

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Speaker 1: put a number of PayTV and broadcast stations, including HBO

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Speaker 1: and CBS, under a single roof. This is Bloomberg, all.

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Speaker 2: Right, Nathan, Thanks time now for a look at some

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Speaker 2: of the other stories making news around the world, and

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Speaker 2: for that we're joined by Bloomberg's Amy Morris.

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Speaker 6: Amy, Good morning, Good morning, Karen. All ten Americans who

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Speaker 6: were detained in Venezuela and exchanged in a prisoner swap

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Speaker 6: are now back on US soil. Ambassador Roger Carstons flew

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Speaker 6: with some of the freed Americans from Venezuela to Texas.

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Speaker 8: There were so Obviously the rumors that things might be happening,

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Speaker 8: but I think it wasn't real until someone came to

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Speaker 8: their cell this morning and said, you follow me.

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Speaker 6: Six of the Americans landed at Joint Base San Antonio

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Speaker 6: last night. They'll be evaluated at the Brooke Army Medical Center.

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Speaker 6: If next year's presidential election comes down to President Biden

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Speaker 6: and former President Trump, a new poll indicates Americans are divided, Bloomberg.

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Speaker 6: Scott car explains.

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Speaker 9: Quinnipiac poll Wednesday showed in a head to head matchup,

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Speaker 9: forty seven percent of respondents supported President Biden, while forty

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Speaker 9: six percent supported Donald Trump. Polster for the College Tim

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Speaker 9: molloy says that's a statistical tie. But in a three

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Speaker 9: way race with third party candidate Robert F. Kennedy Junior,

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Speaker 9: Biden's support fell to thirty eight percent, Trump's to thirty

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Speaker 9: six percent, as Kennedy Junior drew twenty two percent, pulling

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Speaker 9: from the support base of both Biden and Trump.

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Speaker 7: Any of the pulling gun has shown that America is

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Speaker 7: like another alternative to Biden and Trump.

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Speaker 10: He maybe he may not be, but he's showing up

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Speaker 10: with a good number.

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Speaker 9: Scott Carr, Bloomberg radio.

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Speaker 6: In Boston, Mayor Michelle Wu has officially acknowledged and apologized

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Speaker 6: for the harm caused to the black community decades ago

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Speaker 6: when a man told police that his wife had been

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Speaker 6: shot by a black man, but it turned out he

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Speaker 6: had orchestrated the killing himself. Alan Swanson and Willie Bennett

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Speaker 6: were wrongfully arrested for that crime.

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Speaker 11: There was no evidence that a black man had committed

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Speaker 11: this crime, but that didn't matter because the story was

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Speaker 11: one that confirmed and exposed the beliefs that so many shared.

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Speaker 6: The families accepted the mayor's apology, calling it a personal triumph.

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Speaker 6: Several hundred families in Oklahoma City could lose their homes

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Speaker 6: over the holidays. They're given only five days notice and

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Speaker 6: then forty eight hours to get out amy cold try

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Speaker 6: and with housing authority. Shelter Well says women face the

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Speaker 6: brunt of those short term evictions.

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Speaker 12: Sixty one percent of those facing eviction are women, and

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Speaker 12: seventy one percent of those are households with children.

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Speaker 6: State Senator Julia Kurt has introduced a bill giving families

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Speaker 6: ten extra days to resolve those issues so they can

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Speaker 6: avoid eviction. Global News twenty four hours a day and

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Speaker 6: whenever you want it. With Bloomberg News Now, I may

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Speaker 6: Nee Morrison. This is Bloomberg Karen.

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Speaker 2: All right, Amy, thank you, And as Amy said, you

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Speaker 2: can get news throughout the day here on Bloomberg Radio.

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Speaker 2: But now even better, you can get the latest news

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Speaker 2: on demand. And that means whenever you want it. You

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Speaker 2: just subscribe to Bloomberg News Now and you can get

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Speaker 2: the latest headlines at the click of a button. You

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Speaker 2: can get informed on your schedule. You can listen and

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Speaker 2: subscribe to Bloomberg News Now on the Bloomberg Business app,

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Speaker 2: Bloomberg dot Com plus Apple, Spotify, and anywhere else you

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Speaker 2: get your podcasts. Time now for the Bloomberg Sport Update,

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Speaker 2: Here's John Stashauer John.

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Speaker 13: Karon was National Signing Day in college football. Though rich

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Speaker 13: get Richard, Georgia said to have had the best recruiting class,

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Speaker 13: Three of the top twelve players in the country head

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Speaker 13: into Athens. Twenty of Georgia's recruits a four star and

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Speaker 13: a defensive back who's considered a five star was going

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Speaker 13: to go to Florida State. Change his mind. We'll go

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Speaker 13: to Georgia, Florida State, and Georgia will play next week

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Speaker 13: and the Orange Bowl, Ohio State able to keep top

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Speaker 13: wide receiver Jeremiah Smith, who had said to be waivering.

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Speaker 13: College basketball, Yukon was ranked fifth. I FEDY national champs

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Speaker 13: were ten to one with four wins over top fifteen

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Speaker 13: teams and three over top ten teams, but the Huskies

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Speaker 13: upset lost at Seaton Hall seventy five to sixty. NBA

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Speaker 13: saw Philadelphia beat Minnesota one twenty seven to one thirteen.

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Speaker 13: The Timberwolves leave the West. It's just their second loss

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Speaker 13: in the last eleven games. For six Ers MVP Joe

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Speaker 13: lmbing fifty one points seventeen of twenty five from the field,

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Speaker 13: seventeen of eighteen from the free throw line. Lakers hoisted

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Speaker 13: that championship battle when they won that in season tournament.

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Speaker 13: Since they did that, they're one and four. They lost

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Speaker 13: at Chicago Lebron James in defeat twenty five points, just

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Speaker 13: an assist, shy of a triple double. The next beat

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Speaker 13: the Nets, they had lost their last six games in Brooklyn,

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Speaker 13: was one twenty one to oneh two. The Celtics won

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Speaker 13: at Sacramento one forty four till one nineteen. They did

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Speaker 13: it without Jason Tatum. Capitol scored in overtime beat the

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Speaker 13: Islanders three to two. The Mets have acquired pitcher Adrian

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Speaker 13: Helser from Milwaukee Johns Stashewer. Bloomberg Sports.

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Speaker 10: From coast to coast, from New York to San Francisco,

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Speaker 10: Boston to Washington, DC, nationwide on Syriasxam, the Bloomberg Business

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Speaker 10: Appen Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 5: Good morning.

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Speaker 1: I'm Nathan Hager, headed to the Thursday morning open. Futures

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Speaker 1: are on the rise, but global stocks have been taking

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Speaker 1: a bit of a breather from this month's rally that's

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Speaker 1: pushed equities to their highest levels of the year. Investors

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Speaker 1: maybe dialing back some optimism about the FED cutting in

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Speaker 1: interest rates early next year. For more, We're joined by

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Speaker 1: Bloomberg's Critty Gupta Critty, Good morning. It almost looks like

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Speaker 1: the Santa Claus rally got pulled forward just a bit.

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Speaker 1: Is that how things look to you?

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Speaker 12: Yeah, it does actually kind of look like that, except

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Speaker 12: now you're staring need to see the consequences of that decision,

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Speaker 12: which is simply that you are going to see a

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Speaker 12: bit of a selloff going into perhaps the new year.

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Speaker 12: Remember January is seasonally a lower performing month right next

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Speaker 12: to September, after the summer rally that we tend to see.

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Speaker 12: So the natural pullback is already existing. But someone argue

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Speaker 12: that this isn't necessarily a market narrative that we're seeing.

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Speaker 12: This is really a positioning story, because not only do

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Speaker 12: the Santa rally get pulled forward, but some of the data,

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Speaker 12: some of the rate cut narrative, and of course the

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Speaker 12: market's anticipation of what Shairpow was going to say in

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Speaker 12: his last press conference actually did a lot of the

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Speaker 12: work for some of the bowls in the market.

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Speaker 1: There's a lot of questions still, though, isn't there about

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Speaker 1: whether we are going to get a soft landing next year.

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Speaker 1: A lot of analysts are thinking that a recession is

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Speaker 1: still in the forecast. I mean, what could that mean

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Speaker 1: for stock setting into twenty twenty four.

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Speaker 12: Well, that's part of actually the case for a rate cut.

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Speaker 12: So if you actually look at what people are saying,

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Speaker 12: the last time a rate cut had actually happened prior

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Speaker 12: to COVID, it was in twenty nineteen. It was during

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Speaker 12: the Trump era. We were talking about a trade war

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Speaker 12: really upending global trade, and that was one Chair Powell

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Speaker 12: of all people, by the way, said we're actually going

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Speaker 12: to cut rates, not because we need to, but because

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Speaker 12: we might need to in the future. The idea of

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Speaker 12: an insurance cut, and that's exactly what the market is

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Speaker 12: saying is going to happen again. That it's not going

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Speaker 12: to be a question of does the economy hit a recession,

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Speaker 12: but do we start to go in that direction? And

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Speaker 12: Chair Powell in this peers at the FMC actually say

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Speaker 12: we see it coming, We're going to act very quickly,

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Speaker 12: and we're going to basically ensure ourselves cut rates. That

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Speaker 12: postpone some sort of turn down. But a lot of

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Speaker 12: pushback against that narrative is that recessions don't happen gradually.

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Speaker 12: They happened very quickly and all at once, and the

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Speaker 12: data deteriorates very very quickly, and the Federal Reserve naturally

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Speaker 12: is data driven, so one data point may not be

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Speaker 12: enough of a canary of the coal mine for them

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Speaker 12: to catch it.

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Speaker 1: Well, we are going to get a pretty significant, well

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Speaker 1: a couple of pretty significant data points even before the

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Speaker 1: end of this year. We got GDP coming out and

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Speaker 1: the Feds for Ferred inflation gauge tomorrow. I mean, what

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Speaker 1: kind of volatility could we be looking at depending on

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Speaker 1: how those indicators turn out.

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Speaker 12: Yeah, well, a lot of volatility. Because it's not just

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Speaker 12: about the economic data itself. It's also about the geopolitics.

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Speaker 12: And here's why this really matters. Of course, the war

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Speaker 12: in the Middle East is going to be a big

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Speaker 12: part of that equation. One of the big fears. I

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Speaker 12: imagine what Chair Powell's worst nightmare is going to be

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Speaker 12: is some sort of tick up in inflation. Where does

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Speaker 12: that tick up come from, Nathan, It comes from potentially commodities,

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Speaker 12: It comes from wages. It also comes from a sort

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Speaker 12: of geopolitical conflict that is long lasting. So if you

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Speaker 12: start to see more of a read through into commodity

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Speaker 12: prices or more of a read through into shipping costs,

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Speaker 12: all eventually, if it lasts long enough, translates into prices

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Speaker 12: for the American consumer. You're already seeing that with some

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Speaker 12: of the shipping companies actually rally leating, the stocks actually

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Speaker 12: higher because they can pass on those costs. That is

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Speaker 12: all inflationary, and that's going to really upend any of

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Speaker 12: this dubvish narrative that the Chair is really setting right now.

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Speaker 1: So the market participants that you're talking to as we

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Speaker 1: watch these ships you're around Africa to get around the

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Speaker 1: way of the Red Sea. I mean, how do you

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Speaker 1: play this well?

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Speaker 12: I mean the question of the day is how do

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Speaker 12: you hedge it? And for so long the only people

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Speaker 12: we are hedging it and using the US dollar. But Nathan,

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Speaker 12: going into an election year, that is especially a trade

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Speaker 12: that could go to hour very very quickly in terms

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Speaker 12: of what the hedge actually is. People are buying back

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Speaker 12: into commodities because at the end of the day, most

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Speaker 12: of the trade that happens in the Red Sea is

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Speaker 12: oil related. So if you start to see oil prices

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Speaker 12: get higher as a function of higher tanker rates, higher

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Speaker 12: insurance rates of the shipping equation, that is all going

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Speaker 12: to push oil prices higher as well. The reason you're

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Speaker 12: not seeing that in the market right now is because

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Speaker 12: most of it is actually kind of cushioned by the

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Speaker 12: OPEQ plus supply narrative. But then hey, take a look

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Speaker 12: at what you're seeing in the US benchmark, and that

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Speaker 12: move is actually more substantial.

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Speaker 1: What's the bull case for stocks next year given so

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Speaker 1: much of the uncertainty that we still have.

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Speaker 12: The ballcase is simply if the resilience lasts even longer,

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Speaker 12: and you'll remember that a good chunk of the stock

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Speaker 12: rally has really been what a lot might call a

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Speaker 12: magnificent seven, which has really been a function of the

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Speaker 12: AI frenzy. So now you have to see a lot

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Speaker 12: of people deliver on it. Nathan, there is historical precedent

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Speaker 12: for this when cloud was the buzzword a couple of

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Speaker 12: years ago, where Oracle, Alphabet, Microsoft, we're all kind of

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Speaker 12: competing for being the title of kind of the king

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Speaker 12: of the cloud. And I think what's really important here

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Speaker 12: is that Microsoft really came out and won out on

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Speaker 12: that business because they were able to deliver. AI is

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Speaker 12: very different because they are dealing with far more regulatory challenges,

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Speaker 12: far more labor challenges, and of course a general understanding

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Speaker 12: of whether or not you actually want AI in everyday

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Speaker 12: societal matters, and that appetite is where you could see

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Speaker 12: really the case for tech get made or broken and

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Speaker 12: vice versa potentially lead to a rally or lead to

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Speaker 12: a major correction.

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