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

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we are in the midst of a global market

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Speaker 3: sell off this morning, and if the future's on Wall

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Speaker 3: Street or any indication, the S and P five hundred

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Speaker 3: is on track for its fourth straight day of losses.

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Speaker 3: That would be the index's longest losing streak since August

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Speaker 3: In Asia, the n e K two to twenty five

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Speaker 3: stock average closed down three point two percent. Paul Dobson

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Speaker 3: is a Bloomberg Markets executive editor.

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Speaker 4: We sort of know a few of the risks that

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Speaker 4: are hanging over markets at the moment. Those about are

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Speaker 4: the valuation or the overvaluation potentially of the technology sector,

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Speaker 4: in particularly the AI companies, which have had such a

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Speaker 4: strong performance this year, and they're very extensive investment plans,

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Speaker 4: and whether there's appetite to fund that. That's one thing

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Speaker 4: that's worrying people at the moment. On top of that,

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Speaker 4: there's also of what the federal reserve policy is going

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Speaker 4: to look like. They seem to have been giving us

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Speaker 4: the signal they may not cut interest rates in December

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Speaker 4: which the market have been hyping for and expecting.

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Speaker 3: Now Bloomberg's Paul Dobson says, the S and P five

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Speaker 3: hundred is about three percent below it's October peak.

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Speaker 2: Even harder hit than equities, Nathan has been Bitcoin. It's

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Speaker 2: wiped out all of its gains this year, and earlier

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Speaker 2: this morning fell below ninety thousand. Mike McLoone covers cryptocurrencies

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Speaker 2: for Bloomberg Intelligence.

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Speaker 5: So I'll give you a good indication. I think it's

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Speaker 5: going to go lower. The Bloomberg Galaxy crypto Innix is

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Speaker 5: down ten percent of the year now. About a third

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Speaker 5: of that's Bitcoin. It's the rest of the space I

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Speaker 5: think is finally we're realizing it's unlimited supply, massive hubrey

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Speaker 5: and just speculative accesses look like they're just getting.

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Speaker 2: Pers and Bloomberg Intelligence senior Commodities strategist Mike mcgloane, they're

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Speaker 2: checking Bitcoin right now. It is training at ninety one thousand,

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Speaker 2: three hundred dollars. That's down half percent.

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Speaker 3: Another worry for investors, Karen, what we get from Nvidia

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Speaker 3: earnings that's coming up tomorrow. Bloomberg's Charlie Pellett continues, our

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Speaker 3: global team coverage of these markets.

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Speaker 6: In videos report, We'll be closely watched as investors are

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Speaker 6: uneasy over high AI valuations. Cameron Dawson is chief investment

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Speaker 6: officer at New Edge Wealth.

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Speaker 7: In video has shown a very consistent ability to jump

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Speaker 7: over that high bar. Earnings are expected to grow sixty

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Speaker 7: percent this quarter, and this is the third quarter twenty

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Speaker 7: twenty six earnings for them on a fiscal basis, so

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Speaker 7: in video is very much living in the future.

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Speaker 6: The chip maker is widely expected to deliver another earnings

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Speaker 6: beat in New York Charlie Pellett, Bloomberg Radio.

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Speaker 2: Meanwhile, Nathan notices of impending mass layoffs by US company

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Speaker 2: search in October to among the highest levels on record.

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Speaker 2: According to a tally by Federal Reserve Bank of Cleveland researchers,

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Speaker 2: about thirty nine thousand Americans were given advanced notice of

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Speaker 2: losing their job in monthly data from two thousand and six.

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Speaker 2: That number has only ever been higher in two thousand

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Speaker 2: and eight to twenty and nine, twenty twenty and May

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Speaker 2: twenty twenty five.

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Speaker 3: And Karen Fed Governor Christopher Waller is repeating his view

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Speaker 3: that the Central Bank should lower interest rates when policymakers

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Speaker 3: meet next month, Waller spoke in London.

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Speaker 8: My focus is on the labor market, and after months

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Speaker 8: of weakening, it is unlikely that the September jobs report

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Speaker 8: later this week, or any other data that's going to

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Speaker 8: come out in the next few weeks, is going to

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Speaker 8: change my view that another cut is an order.

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Speaker 3: Christopher Waller was appointed to the Fed's Board of Governors

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Speaker 3: by President Trump in twenty twenty. He is one of

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Speaker 3: five candidates that the White House is considering for the

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Speaker 3: FED chair position when Jay Powell's term expires in may Well.

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Speaker 2: On Capitol Hill, Nathan, the focus is about to turn

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Speaker 2: to the Jeffrey Epstein files. The House is set to

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Speaker 2: vote today on a bill that would force the Justice

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Speaker 2: Department to release its documents on the late sex offender.

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Speaker 2: Speaker Mike Johnson had resisted bringing the bill to the

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Speaker 2: House floor for months, but a discharge petition forced his hand,

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Speaker 2: and now President Trump says House Republican should vote for it.

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Speaker 2: Democratic Congressman Rocana is one of the bill's sponsors, and

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Speaker 2: he says today's vote could be overwhelming.

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Speaker 9: We may get to a unanimous vote. Look, this is

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Speaker 9: the most horrific disgusting scandal in American history. You had

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Speaker 9: Epstein with basically a rape violin thousand plus victims, and

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Speaker 9: rich and powerful men who raped underage girls or covered

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Speaker 9: it up and haven't had accountability.

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Speaker 2: Democrat Rocana spoke to ABC News. The meantime, the Epstein

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Speaker 2: records that have been released are forcing a reckoning. Former

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Speaker 2: Treasury Secretary Larry Summers says he's stepping back from his

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Speaker 2: public commitments after emails showed he'd been in correspondence with Epstein.

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Speaker 2: Summers is a paid Bloomberg TV contributor and a professor

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Speaker 2: at Harvard University. He says he'll continue to teach, but

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Speaker 2: will step away from public duties to repair relationships with

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Speaker 2: the people closest to him.

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Speaker 3: The White House, Karen, President Trump is getting ready for

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Speaker 3: a visit from Saudi Crown Prince Mohammed Ben Salmon. President

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Speaker 3: says he's ready to offer this Saudi leader something he's

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Speaker 3: wanted for years.

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Speaker 6: F thirty five fighter jets.

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Speaker 10: You're in a great allay. They've got to like us

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Speaker 10: very much. Look at the Iran situation, what we did their.

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Speaker 3: President Trump spoke there from the Oval Office. Former Vice

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Speaker 3: President Mike Pence says the F thirty five is America's

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Speaker 3: most advanced fighter jet. He notes Saudi Arabia has a

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Speaker 3: close relationship with China.

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Speaker 11: I have concerns about the sale of F thirty five

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Speaker 11: so to Saudi Arabia or any nation that could not

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Speaker 11: assure the United States that technology and the great advancements

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Speaker 11: that we've made with the F thirty five don't fall

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Speaker 11: into the hands of nations that are hostile to our interests.

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Speaker 3: Former Vice President Mike Pence tells Bloomberg's Pritty Gupta he

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Speaker 3: hopes today's visit with the Crown Prince brings Saudi Arabia

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Speaker 3: closer to normalizing ties with Israel under the Abraham Accords

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Speaker 3: and Nathan.

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Speaker 2: President Trump said his administration is making progress on lowering

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Speaker 2: prices as he faces new political headwinds, and a speech

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Speaker 2: to franchise owners from a Donalds, he thanked the fast

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Speaker 2: food giant for offering cheaper options.

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Speaker 8: I here you are.

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Speaker 10: Recommitting to the affordable options of Americans that we really

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Speaker 10: know and love all of the items that we love.

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Speaker 10: And I hear that McDonald's is playing a very big

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Speaker 10: role in that we're getting prices down for this country.

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Speaker 2: And McDonald's and his franchisees brought back extra value meals

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Speaker 2: at five dollars and eight dollars price points. I'm not

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Speaker 2: for look at some of the other stories making news

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Speaker 2: in New York and around the world. For that, we're

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Speaker 2: joined by Bloomber's Monica Ricks Monica, good morning.

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Speaker 12: Good morning, Karen. The United Nations has overwhelmingly approved the

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Speaker 12: Trump Administration's plan for the future of Gaza.

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Speaker 5: The drops resolution has been adopted as Resolution twenty eight

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Speaker 5: zero three.

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Speaker 12: Russia and China abstain from the vote, but the approval

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Speaker 12: is a crucial step now that provides international support for

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Speaker 12: US efforts to rebuild the war ravage region, in part

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Speaker 12: by establishing a Board of Peace that would run Gaza

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Speaker 12: over the next couple of years. Israeli officials have criticized

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Speaker 12: the resolution since it also offers a pathway to Palestinian statehood.

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Speaker 12: President Trump says he hasn't ruled out sending US troops

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Speaker 12: to Venezuela, following an announcement from the Trump administration that

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Speaker 12: it would designate of vellezuel and Cartel as a foreign

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Speaker 12: terrorist organization. President Nicolas Maduto is pleading for peace. Meantime,

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Speaker 12: Trump is urging more foreigners now to apply for visas

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Speaker 12: to watch next year's World Cup.

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Speaker 10: This will be a once in a lifetime opportunity to

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Speaker 10: showcase the greatness of American world class athletic competition as

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Speaker 10: we celebrate our nations two hundred and fiftieth year. The

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Speaker 10: World Cup will also be an incredibly significant economic opportunity

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Speaker 10: for Conculus American workers and businesses.

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Speaker 12: The massive tournament will feature more than one hundred matches

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Speaker 12: in the US, Canada, and Mexico next summer, and federal

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Speaker 12: prosecutors are now being forced to turn over all grand

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Speaker 12: jury material to former FBI Director James Comy's defense team

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Speaker 12: over a quote disturbing pattern of profound investigative missteps in

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Speaker 12: the handling of the case. Comy's accused of making false

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Speaker 12: statements and obstructing a congressional proceeding relating to his testimony

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Speaker 12: before the Senate Judiciary Committee back in twenty twenty. Both

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Speaker 12: sides expected in court tomorrow in Virginia. Global News twenty

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Speaker 12: four hours a day and whenever you want it with

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Speaker 12: Bloomberg News Now. I'm Monica Rix and this is Bloomberg Karen.

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Speaker 6: Thanks Monica.

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Speaker 2: Time now for our Bloomberg Sports Update, and for that

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Speaker 2: we bring in John stash Hour.

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Speaker 13: Thanks Jaren byther My football was in Las Vegas. A

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Speaker 13: three touchdowns second quarter for the Cowboys. They beat the

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Speaker 13: Raiders thirty three to sixteen. Dak Prescott finished with four

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Speaker 13: touchdown passes to four different receivers. Aaron Rodgers has an

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Speaker 13: injury to his left wrist. He's fifty to fifty to

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Speaker 13: play for the Steelers Sunday against the Vikings. The Atlanta

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Speaker 13: quarterback Michael Pennix as a knee injury. He's likely done

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Speaker 13: for the season. James Franklin surprisingly fired in mid season

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Speaker 13: by penn State, as landed as the new coach at

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Speaker 13: Virginia Tech. That's form Bloomberg Sports Update.

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Speaker 2: Stay with us more from Bloomberg day Break coming out after.

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Speaker 1: This coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 3: Good morning, I'm Nathan Hager. Not such a good morning

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Speaker 3: if your long equities markets are under pressure once again

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Speaker 3: this morning on concerns around AI valuations, the federal reserve outlook,

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Speaker 3: and a sell off in bitcoin. Grace Peters, co head

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Speaker 3: of Global Investment Strategy at JP Morgan Private Bank, says

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Speaker 3: she'd sum up her outlook for next year in three words,

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Speaker 3: pressure but promise.

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Speaker 14: Pressure from AI all we in a bubble. Questions still

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Speaker 14: around the meanings of global fragmentation and inflation as well.

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Speaker 14: But you know, as the title suggests, we do think

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Speaker 14: promise is going to win out.

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Speaker 3: That's Grace Peters of JP Morgan Private Bank. For more,

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Speaker 3: We're joined by Bloomberg Markets reporter Valerie Titel, So that's

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Speaker 3: the long term outlook, Valerie. But this morning feels like

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Speaker 3: pressure is front and center. Good morning, Hey.

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Speaker 15: Good morning, Nathan. Y S and P futures are in

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Speaker 15: the red for a fourth straight session in a row.

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Speaker 15: We're continuing to see underperformance in these tech shares, and

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Speaker 15: Video was one of the worst decliners on the Nasdaq

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Speaker 15: yesterday and the Nasdaq frankly, we really want to see

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Speaker 15: these tech shares at least find some balance, find some

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Speaker 15: ground somewhere before those earnings released from Nvidia on Wednesday night.

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Speaker 15: We know that can really be something that could set

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Speaker 15: the tone for tech stocks into your end. And as

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Speaker 15: Grace Peters was pointing out there, you don't really want

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Speaker 15: to end your end on a wobbly foot, because come January,

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Speaker 15: when these slates are wiped clean for the year, investors

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Speaker 15: really begin to rethink their allocations, and possibly the courus

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Speaker 15: is growing for those to rethink their allocations away from

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Speaker 15: US big tech. Now, what really started the weakness yesterday

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Speaker 15: was another hyperscaler approaching the bond market. We had Amazon

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Speaker 15: announcing a fifteen billion dollar bond offering, raising debt through

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Speaker 15: investment grade credit. This has been a theme of late

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Speaker 15: now that these hyperscalers have been needing to fund their

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Speaker 15: next stage of their buildout when it comes to data

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Speaker 15: centers using debt, and that does tie this tech story

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Speaker 15: in with the broader narrative when it comes to the

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Speaker 15: US Central Bank to the Federal Reserve. If they're needing

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Speaker 15: to use debt financing in order to scale up, they

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Speaker 15: are going to be dependent on whether the Federal Reserve

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Speaker 15: has been hawkish or dubvish, And lately the Federal Reserve

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Speaker 15: has been hawkish, putting that December cut wildly in doubt.

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Speaker 15: We're now down to around forty percent chance of a

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Speaker 15: Federal Reserve cut in December, their last meeting of twenty

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Speaker 15: twenty five.

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Speaker 3: Yeah, it's adding to all this debate about whether we're

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Speaker 3: in an AI bubble right now from the analysts and

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Speaker 3: strategists that you've been speaking to, Valerie, is it a

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Speaker 3: feeling that the bubble is popping or that some of

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Speaker 3: the air is just getting let out.

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Speaker 15: Look, I think that all really comes down to Nvidia

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Speaker 15: and what we hear on Wednesday night. Frankly, there has

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Speaker 15: been a lot of two way discussion about whether this

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Speaker 15: huge investment that we've seen into data centers is something

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Speaker 15: that's going to pay off or is it going to

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Speaker 15: be something that's going to have to mark down From

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Speaker 15: part now, it goes to that saying that the investment

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Speaker 15: in data centers this year has been something that has

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Speaker 15: held up GDP growth broadly for the US economy. We've

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Speaker 15: been hearing from the likes of other CEOs across the

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Speaker 15: world saying that data center spending an investment is still

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Speaker 15: holding up into the fourth quarter. So whether or not

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Speaker 15: it will pose another boom to GDP in twenty twenty six,

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Speaker 15: or perhaps we'll investors start to shy away from this

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Speaker 15: investment and perhaps cause this AI bubble to burst. I

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Speaker 15: think time is We're going to need some time on

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Speaker 15: our hands to tell. But I think what the equity

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Speaker 15: market is telling us right now is that there's a

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Speaker 15: lot of jitters going into end video's release.

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Speaker 3: Adding to those jitters some technical signals as well. With

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Speaker 3: the S and P five hundred falling below it's fifty

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Speaker 3: day moving average for the first time in months, we've

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Speaker 3: been talking about how we could be on track for

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Speaker 3: the four day losing streak. Here for the U S

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Speaker 3: and P five hundred, what's the technical signal that we're getting.

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Speaker 15: Well, Look, yesterday the S and P five hundred, as

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Speaker 15: you mentioned, did close below the fifty day moving average.

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Speaker 15: It's been something that it's been battling with though throughout

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Speaker 15: this equity weakness through the month of November. It's whether, Nathan,

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Speaker 15: we have a sustained break lower from that, then that

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Speaker 15: will be a key tell that momentum is on a

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Speaker 15: back foot, and essentially the market needs more good news

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Speaker 15: outweighing anything of just being the status quo in order

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Speaker 15: to rally back. But that being said, you know, we

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Speaker 15: do have to frame this and the fact that the

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Speaker 15: Nasdaq is still up seventeen percent on the year, the

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Speaker 15: broader S and P five hundred is up some twelve

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Speaker 15: and a half percent, So it has still been a

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Speaker 15: good year for the equity market. It's just the last

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Speaker 15: few weeks have been a struggle.

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Speaker 3: And when it comes to breaking news and gaming out

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Speaker 3: what the Fed could do. We are starting to get

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Speaker 3: a trickle of official economic data. We just got the

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Speaker 3: first round of weekly jobless claims from a month ago.

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Speaker 3: What does that tell us?

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Speaker 15: Yeah, so this this is a very odd one. The

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Speaker 15: Department of Labor, which runs the Bureau of Labor Statistic

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Speaker 15: posted figures for job as claims for the week ending

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Speaker 15: October eighteenth. Now, this does seem like to some a

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Speaker 15: random week in October that they were publishing figures for. However,

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Speaker 15: it is this survey week for non farm payrolls that

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Speaker 15: is their monthly survey of how many jobs the US

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Speaker 15: economy has added alongside the unemployment rates. So perhaps this

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Speaker 15: is telling us that the BLS is getting that October

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Speaker 15: jobs report in line. However, what the jobles claims figures

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Speaker 15: did show us that they job as claims were at

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Speaker 15: two hundred and thirty two k that week in October.

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Speaker 15: That is broadly in line with what city economists had

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Speaker 15: penciled in using state wide level data, and that gave

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Speaker 15: some solace to the market that economists who have been

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Speaker 15: estimating essentially seasonally adjusted jobbles claims from the non seasonally

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Speaker 15: adjusted state level figures have been broadly in lines that

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Speaker 15: did give some calm to the market when that was

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Speaker 15: released earlier this morning.

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