Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 1: Karen, the rise in futures follows yesterday's selloff on Wall Street.
Speaker 1: All three major indexes fell at least one and a
Speaker 1: quarter percent. Risk assets took a breather after this month's
Speaker 1: rally saw global stocks climb to their highest level of
Speaker 1: the year. Alan Zapfron is a founding partner in co
Speaker 1: CEO at IEQ Capital.
Speaker 3: The market's probably a little bit ahead of itself with
Speaker 3: full anticipation rate hikes are over cuts are coming, but
Speaker 3: there's probably a bit too much near term enthusiasm. Albeit
Speaker 3: the long term constructive view on the American economy. Rates
Speaker 3: the same equities are part of a well diversified portfolio,
Speaker 3: and you can't deny that you still need to have
Speaker 3: some equity exposure.
Speaker 1: I EQ Capitals. Alan Zaffren says overbought conditions also contributed
Speaker 1: to yesterday selling well.
Speaker 2: Nathan helping give a lift to equities this morning, as
Speaker 2: Micron Technology shares are up about six percent after the
Speaker 2: company gave a strong revenue forecast for the current period.
Speaker 2: We get the story from Bloomberg's Charley Pellet.
Speaker 4: Micron is the largest American maker of memory semiconductors, and
Speaker 4: the quarter indicates that data center demand is helping make
Speaker 4: up for a slowly recovering market for PCs and smartphones.
Speaker 4: Micron said fiscal second quarter revenue will be five point
Speaker 4: one to five point five billion dollars. Now that compares
Speaker 4: with an average analysestimate of four point nine to nine billion.
Speaker 4: The outlook signals that Micron is through the worst of
Speaker 4: an industry wide slump, a moving back toward profitability in
Speaker 4: New York, Charlie Pellett Bloomberg Radio.
Speaker 1: All right, Charlie, thank you, and other high tech companies
Speaker 1: in the spotlight.
Speaker 5: Today is the day.
Speaker 1: Apple plans to pull Series nine and Ultra two models
Speaker 1: of its flagship smart watch from its online store. Apple
Speaker 1: will also pull the watches from its physical retail locations
Speaker 1: on Christmas Eve. This is because of a patent dispute
Speaker 1: over technology that measures the amount of oxygen in a
Speaker 1: user's blood.
Speaker 2: Nathan. The US is reportedly considering raising tariffs on Chinese
Speaker 2: electric cars. Bloomberg's Amy Morris has the details from Washington.
Speaker 6: The Biden administration has for the most part left the
Speaker 6: trompera tariffs in place on about three hundred billion dollars
Speaker 6: of Chinese goods. Now, the White House is considering more
Speaker 6: levies on evs and solar products. The Wall Street Journal
Speaker 6: reports the US wants to limit reliance on China, which
Speaker 6: has become a global powerhouse in electric cars, while shielding
Speaker 6: its own green industry. A bipartisan group of lawmakers earlier
Speaker 6: this month recommended raising tariffs on goods from China and
Speaker 6: restricting investment in the country. China says raising tariffs would
Speaker 6: undermine the security of the global supply chain. In Washington,
Speaker 6: Amy Morris Bloomberg Radio.
Speaker 1: All right, Amy, thank you. Now let's get to the
Speaker 1: latest from the Middle East. The US continues to urge
Speaker 1: Israel to move its war with Hummas from a large
Speaker 1: scale assault to a more targeted operation in Gaza, but
Speaker 1: Secretary of State Antony Blincoln says there's been too much
Speaker 1: focus on calls for just Israel to end the war.
Speaker 7: There seems to be silence on what Humas could do,
Speaker 7: should do, must do if we want to, and the
Speaker 7: suffering of innocent men, women and children. It would be
Speaker 7: I think good if the world could unite around that
Speaker 7: proposition as well.
Speaker 1: The Secretary Blinken spoke as Israel's military says it's uncovered
Speaker 1: a major Hamas command center in the heart of Gaza City.
Speaker 1: The top Hamas leader is in Egypt for talks on
Speaker 1: a new ceasefire and hostage prisoner exchanges with Israel.
Speaker 2: Well Nathan Yemen's Houthi rebels say they will continue targeting
Speaker 2: ships in the Red Sea, despite US moves to build
Speaker 2: an international naval task force to protect trade in the region.
Speaker 2: The Iran backed group also warrant it's willing to retaliate
Speaker 2: at the US attack who the bases, signaling possible for
Speaker 2: their escalation. Senior White House Advisor for Energy and Investment
Speaker 2: Almos Hakstein says the BODI and administration is focused on
Speaker 2: defensive action.
Speaker 8: The United States has joined now in a coalition of
Speaker 8: approximately ten countries already in making sure that there are patrols, surveillance,
Speaker 8: patrols of aircraft and ships, and to take defensive measures
Speaker 8: if needed. We continue to have other conversations with allies
Speaker 8: to ensure that we have a coalition, and reason for
Speaker 8: that is because this is not a US concern, this
Speaker 8: is a global markets concern.
Speaker 2: And Almos Hakstein spoke to Bloomberg after the US and
Speaker 2: UK Navy shot down fifteen drones launch from who decontrolled
Speaker 2: areas of Yemen over the weekend.
Speaker 1: Back home, on the political front, Caaren Donald Trump's legal
Speaker 1: team is urging the Supreme Court to hold off on
Speaker 1: intervening in his election obstruction case. We get that story
Speaker 1: from Bloomberg's Ed Baxter.
Speaker 5: This is the case brought by Special counsel Jack Smith,
Speaker 5: saying Trump conspire to overturn the twenty twenty election. Smith
Speaker 5: requested the consideration of Trump's immunity claim, seeking to ensure
Speaker 5: the trial can start on March fourth. Trump's lawyers are
Speaker 5: arguing there has not been identification of a compelling reason
Speaker 5: for the quote's extraordinary haste he proposes. Trump has long
Speaker 5: said he wants the cases put off until after the
Speaker 5: twenty twenty four election. This is the first Trump criminal
Speaker 5: case to hit the Supreme Court, and the court could
Speaker 5: rule as early as this week whether it will hear it.
Speaker 5: Ad Baxter Bloomberg Radio, All.
Speaker 2: Right, Ed, thank you, Let's turn to some company news.
Speaker 2: Toyota Motor is recalling about one million vehicles sold in
Speaker 2: the US that are at risk of having passenger side
Speaker 2: airbags failed to deploy properly due to a passenger seat
Speaker 2: sensor issue. They affect some Toyota and Lexus brand Sedan's.
Speaker 2: Toyota also said subsidiary Daihatsu Motors offices were rated over
Speaker 2: a safety scandal, and Toyota shares dropped four percent in Asia.
Speaker 1: And Karen, A mega media deal maybe in the works.
Speaker 1: Bloomberg News has learned Warner Brothers Discoveries held talks on
Speaker 1: a possible merger with Paramount Global. A combination would unite
Speaker 1: the Paramount and Warner Brothers film and TV studios and
Speaker 1: put a number of PayTV and broadcast stations, including HBO
Speaker 1: and CBS, under a single roof. This is Bloomberg, all.
Speaker 2: Right, Nathan, Thanks time now for a look at some
Speaker 2: of the other stories making news around the world, and
Speaker 2: for that we're joined by Bloomberg's Amy Morris.
Speaker 6: Amy, Good morning, Good morning, Karen. All ten Americans who
Speaker 6: were detained in Venezuela and exchanged in a prisoner swap
Speaker 6: are now back on US soil. Ambassador Roger Carstons flew
Speaker 6: with some of the freed Americans from Venezuela to Texas.
Speaker 8: There were so Obviously the rumors that things might be happening,
Speaker 8: but I think it wasn't real until someone came to
Speaker 8: their cell this morning and said, you follow me.
Speaker 6: Six of the Americans landed at Joint Base San Antonio
Speaker 6: last night. They'll be evaluated at the Brooke Army Medical Center.
Speaker 6: If next year's presidential election comes down to President Biden
Speaker 6: and former President Trump, a new poll indicates Americans are divided, Bloomberg.
Speaker 6: Scott car explains.
Speaker 9: Quinnipiac poll Wednesday showed in a head to head matchup,
Speaker 9: forty seven percent of respondents supported President Biden, while forty
Speaker 9: six percent supported Donald Trump. Polster for the College Tim
Speaker 9: molloy says that's a statistical tie. But in a three
Speaker 9: way race with third party candidate Robert F. Kennedy Junior,
Speaker 9: Biden's support fell to thirty eight percent, Trump's to thirty
Speaker 9: six percent, as Kennedy Junior drew twenty two percent, pulling
Speaker 9: from the support base of both Biden and Trump.
Speaker 7: Any of the pulling gun has shown that America is
Speaker 7: like another alternative to Biden and Trump.
Speaker 10: He maybe he may not be, but he's showing up
Speaker 10: with a good number.
Speaker 9: Scott Carr, Bloomberg radio.
Speaker 6: In Boston, Mayor Michelle Wu has officially acknowledged and apologized
Speaker 6: for the harm caused to the black community decades ago
Speaker 6: when a man told police that his wife had been
Speaker 6: shot by a black man, but it turned out he
Speaker 6: had orchestrated the killing himself. Alan Swanson and Willie Bennett
Speaker 6: were wrongfully arrested for that crime.
Speaker 11: There was no evidence that a black man had committed
Speaker 11: this crime, but that didn't matter because the story was
Speaker 11: one that confirmed and exposed the beliefs that so many shared.
Speaker 6: The families accepted the mayor's apology, calling it a personal triumph.
Speaker 6: Several hundred families in Oklahoma City could lose their homes
Speaker 6: over the holidays. They're given only five days notice and
Speaker 6: then forty eight hours to get out amy cold try
Speaker 6: and with housing authority. Shelter Well says women face the
Speaker 6: brunt of those short term evictions.
Speaker 12: Sixty one percent of those facing eviction are women, and
Speaker 12: seventy one percent of those are households with children.
Speaker 6: State Senator Julia Kurt has introduced a bill giving families
Speaker 6: ten extra days to resolve those issues so they can
Speaker 6: avoid eviction. Global News twenty four hours a day and
Speaker 6: whenever you want it. With Bloomberg News Now, I may
Speaker 6: Nee Morrison. This is Bloomberg Karen.
Speaker 2: All right, Amy, thank you, And as Amy said, you
Speaker 2: can get news throughout the day here on Bloomberg Radio.
Speaker 2: But now even better, you can get the latest news
Speaker 2: on demand. And that means whenever you want it. You
Speaker 2: just subscribe to Bloomberg News Now and you can get
Speaker 2: the latest headlines at the click of a button. You
Speaker 2: can get informed on your schedule. You can listen and
Speaker 2: subscribe to Bloomberg News Now on the Bloomberg Business app,
Speaker 2: Bloomberg dot Com plus Apple, Spotify, and anywhere else you
Speaker 2: get your podcasts. Time now for the Bloomberg Sport Update,
Speaker 2: Here's John Stashauer John.
Speaker 13: Karon was National Signing Day in college football. Though rich
Speaker 13: get Richard, Georgia said to have had the best recruiting class,
Speaker 13: Three of the top twelve players in the country head
Speaker 13: into Athens. Twenty of Georgia's recruits a four star and
Speaker 13: a defensive back who's considered a five star was going
Speaker 13: to go to Florida State. Change his mind. We'll go
Speaker 13: to Georgia, Florida State, and Georgia will play next week
Speaker 13: and the Orange Bowl, Ohio State able to keep top
Speaker 13: wide receiver Jeremiah Smith, who had said to be waivering.
Speaker 13: College basketball, Yukon was ranked fifth. I FEDY national champs
Speaker 13: were ten to one with four wins over top fifteen
Speaker 13: teams and three over top ten teams, but the Huskies
Speaker 13: upset lost at Seaton Hall seventy five to sixty. NBA
Speaker 13: saw Philadelphia beat Minnesota one twenty seven to one thirteen.
Speaker 13: The Timberwolves leave the West. It's just their second loss
Speaker 13: in the last eleven games. For six Ers MVP Joe
Speaker 13: lmbing fifty one points seventeen of twenty five from the field,
Speaker 13: seventeen of eighteen from the free throw line. Lakers hoisted
Speaker 13: that championship battle when they won that in season tournament.
Speaker 13: Since they did that, they're one and four. They lost
Speaker 13: at Chicago Lebron James in defeat twenty five points, just
Speaker 13: an assist, shy of a triple double. The next beat
Speaker 13: the Nets, they had lost their last six games in Brooklyn,
Speaker 13: was one twenty one to oneh two. The Celtics won
Speaker 13: at Sacramento one forty four till one nineteen. They did
Speaker 13: it without Jason Tatum. Capitol scored in overtime beat the
Speaker 13: Islanders three to two. The Mets have acquired pitcher Adrian
Speaker 13: Helser from Milwaukee Johns Stashewer. Bloomberg Sports.
Speaker 10: From coast to coast, from New York to San Francisco,
Speaker 10: Boston to Washington, DC, nationwide on Syriasxam, the Bloomberg Business
Speaker 10: Appen Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 5: Good morning.
Speaker 1: I'm Nathan Hager, headed to the Thursday morning open. Futures
Speaker 1: are on the rise, but global stocks have been taking
Speaker 1: a bit of a breather from this month's rally that's
Speaker 1: pushed equities to their highest levels of the year. Investors
Speaker 1: maybe dialing back some optimism about the FED cutting in
Speaker 1: interest rates early next year. For more, We're joined by
Speaker 1: Bloomberg's Critty Gupta Critty, Good morning. It almost looks like
Speaker 1: the Santa Claus rally got pulled forward just a bit.
Speaker 1: Is that how things look to you?
Speaker 12: Yeah, it does actually kind of look like that, except
Speaker 12: now you're staring need to see the consequences of that decision,
Speaker 12: which is simply that you are going to see a
Speaker 12: bit of a selloff going into perhaps the new year.
Speaker 12: Remember January is seasonally a lower performing month right next
Speaker 12: to September, after the summer rally that we tend to see.
Speaker 12: So the natural pullback is already existing. But someone argue
Speaker 12: that this isn't necessarily a market narrative that we're seeing.
Speaker 12: This is really a positioning story, because not only do
Speaker 12: the Santa rally get pulled forward, but some of the data,
Speaker 12: some of the rate cut narrative, and of course the
Speaker 12: market's anticipation of what Shairpow was going to say in
Speaker 12: his last press conference actually did a lot of the
Speaker 12: work for some of the bowls in the market.
Speaker 1: There's a lot of questions still, though, isn't there about
Speaker 1: whether we are going to get a soft landing next year.
Speaker 1: A lot of analysts are thinking that a recession is
Speaker 1: still in the forecast. I mean, what could that mean
Speaker 1: for stock setting into twenty twenty four.
Speaker 12: Well, that's part of actually the case for a rate cut.
Speaker 12: So if you actually look at what people are saying,
Speaker 12: the last time a rate cut had actually happened prior
Speaker 12: to COVID, it was in twenty nineteen. It was during
Speaker 12: the Trump era. We were talking about a trade war
Speaker 12: really upending global trade, and that was one Chair Powell
Speaker 12: of all people, by the way, said we're actually going
Speaker 12: to cut rates, not because we need to, but because
Speaker 12: we might need to in the future. The idea of
Speaker 12: an insurance cut, and that's exactly what the market is
Speaker 12: saying is going to happen again. That it's not going
Speaker 12: to be a question of does the economy hit a recession,
Speaker 12: but do we start to go in that direction? And
Speaker 12: Chair Powell in this peers at the FMC actually say
Speaker 12: we see it coming, We're going to act very quickly,
Speaker 12: and we're going to basically ensure ourselves cut rates. That
Speaker 12: postpone some sort of turn down. But a lot of
Speaker 12: pushback against that narrative is that recessions don't happen gradually.
Speaker 12: They happened very quickly and all at once, and the
Speaker 12: data deteriorates very very quickly, and the Federal Reserve naturally
Speaker 12: is data driven, so one data point may not be
Speaker 12: enough of a canary of the coal mine for them
Speaker 12: to catch it.
Speaker 1: Well, we are going to get a pretty significant, well
Speaker 1: a couple of pretty significant data points even before the
Speaker 1: end of this year. We got GDP coming out and
Speaker 1: the Feds for Ferred inflation gauge tomorrow. I mean, what
Speaker 1: kind of volatility could we be looking at depending on
Speaker 1: how those indicators turn out.
Speaker 12: Yeah, well, a lot of volatility. Because it's not just
Speaker 12: about the economic data itself. It's also about the geopolitics.
Speaker 12: And here's why this really matters. Of course, the war
Speaker 12: in the Middle East is going to be a big
Speaker 12: part of that equation. One of the big fears. I
Speaker 12: imagine what Chair Powell's worst nightmare is going to be
Speaker 12: is some sort of tick up in inflation. Where does
Speaker 12: that tick up come from, Nathan, It comes from potentially commodities,
Speaker 12: It comes from wages. It also comes from a sort
Speaker 12: of geopolitical conflict that is long lasting. So if you
Speaker 12: start to see more of a read through into commodity
Speaker 12: prices or more of a read through into shipping costs,
Speaker 12: all eventually, if it lasts long enough, translates into prices
Speaker 12: for the American consumer. You're already seeing that with some
Speaker 12: of the shipping companies actually rally leating, the stocks actually
Speaker 12: higher because they can pass on those costs. That is
Speaker 12: all inflationary, and that's going to really upend any of
Speaker 12: this dubvish narrative that the Chair is really setting right now.
Speaker 1: So the market participants that you're talking to as we
Speaker 1: watch these ships you're around Africa to get around the
Speaker 1: way of the Red Sea. I mean, how do you
Speaker 1: play this well?
Speaker 12: I mean the question of the day is how do
Speaker 12: you hedge it? And for so long the only people
Speaker 12: we are hedging it and using the US dollar. But Nathan,
Speaker 12: going into an election year, that is especially a trade
Speaker 12: that could go to hour very very quickly in terms
Speaker 12: of what the hedge actually is. People are buying back
Speaker 12: into commodities because at the end of the day, most
Speaker 12: of the trade that happens in the Red Sea is
Speaker 12: oil related. So if you start to see oil prices
Speaker 12: get higher as a function of higher tanker rates, higher
Speaker 12: insurance rates of the shipping equation, that is all going
Speaker 12: to push oil prices higher as well. The reason you're
Speaker 12: not seeing that in the market right now is because
Speaker 12: most of it is actually kind of cushioned by the
Speaker 12: OPEQ plus supply narrative. But then hey, take a look
Speaker 12: at what you're seeing in the US benchmark, and that
Speaker 12: move is actually more substantial.
Speaker 1: What's the bull case for stocks next year given so
Speaker 1: much of the uncertainty that we still have.
Speaker 12: The ballcase is simply if the resilience lasts even longer,
Speaker 12: and you'll remember that a good chunk of the stock
Speaker 12: rally has really been what a lot might call a
Speaker 12: magnificent seven, which has really been a function of the
Speaker 12: AI frenzy. So now you have to see a lot
Speaker 12: of people deliver on it. Nathan, there is historical precedent
Speaker 12: for this when cloud was the buzzword a couple of
Speaker 12: years ago, where Oracle, Alphabet, Microsoft, we're all kind of
Speaker 12: competing for being the title of kind of the king
Speaker 12: of the cloud. And I think what's really important here
Speaker 12: is that Microsoft really came out and won out on
Speaker 12: that business because they were able to deliver. AI is
Speaker 12: very different because they are dealing with far more regulatory challenges,
Speaker 12: far more labor challenges, and of course a general understanding
Speaker 12: of whether or not you actually want AI in everyday
Speaker 12: societal matters, and that appetite is where you could see
Speaker 12: really the case for tech get made or broken and
Speaker 12: vice versa potentially lead to a rally or lead to
Speaker 12: a major correction.
Speaker 1: This is Bloomberg Daybreak Today, your morning brief on the
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