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Speaker 1: Good morning. I'm John Tucker and.

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Speaker 2: I'm Karen Moscow. Here are the stories we're following today.

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Speaker 1: In the markets, the S and P five hundred beginning

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Speaker 1: to day hovering at a record The so called Santa

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Speaker 1: Claus rally has left the index just half a percent

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Speaker 1: off its all time high. Despite warnings about overpot levels,

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Speaker 1: equities continue to power ahead on best. The Fed's going

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Speaker 1: to cut rates as early as March, and Bloomberg's executive

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Speaker 1: editor for Markets Paul Dobson says, there seems to be

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Speaker 1: a lot of momentum in the markets.

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Speaker 3: It may be in anticipation of big New year flows

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Speaker 3: into equity funds and people trying to get a little

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Speaker 3: bit ahead of that. As part of the explanation, I think,

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Speaker 3: you know, we're getting very close to that record high

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Speaker 3: in the SMP, and the market loves the target to chase.

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Speaker 1: Bloomberg's Paul Dobson says if the S and P five

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Speaker 1: hundred completes a ninth straight week of gains, it will

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Speaker 1: be its longest winning streak since two thousand and four.

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Speaker 2: Well in Company News, john Tesla could soon lose its

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Speaker 2: title as the world's leader in electric vehicles. The Chinese

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Speaker 2: automaker BYD's sales or forecast to overtake Tesla this quarter.

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Speaker 2: Katrina Nicholas is Global Business editor for Bloomberg in Asia.

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Speaker 4: BYD makes its own batteries and now it also makes

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Speaker 4: its own chips. That has shielded the company from a

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Speaker 4: lot of supply chain crunches over the years. Remember back

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Speaker 4: in twenty twenty during COVID, we had a worldwide shortage

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Speaker 4: of semiconductors and that snarled a lot of automakers. They

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Speaker 4: couldn't get the chips that they needed to make the cous.

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Speaker 2: And Bloomberg Global Business Editor Katrina Nicholas as BYD offers

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Speaker 2: half a dozen higher volume models that costs much less

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Speaker 2: than what Tesla charges for its cheapest Model three sedan

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Speaker 2: in China.

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Speaker 1: Meanwhile, Tesla preparing to roll out a revamped version of

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Speaker 1: its Model Y from its Shanghai plant. Bloomberg News has

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Speaker 1: learned the electric carmaker currently conducting preparation work in China,

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Speaker 1: and mass production may start as soon as mid twenty

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Speaker 1: twenty four. Sources say the new Model Why will have

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Speaker 1: much more obvious exterior and interior changes than the most

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Speaker 1: recent update in October, which anadled a new wheel design

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Speaker 1: and ambient lighting.

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Speaker 2: Well John another high tech company in the spotlight this morning,

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Speaker 2: Apple is appealing a US salesman of its smart watches

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Speaker 2: after the White House refuse to overturn the measure. The

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Speaker 2: company is trying to defend a business that generates roughly

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Speaker 2: seventeen billion dollars a year. Mark German covers Apple for

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Speaker 2: Bloomberg in Los Angeles.

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Speaker 5: Apple's belief is they have a software update up at

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Speaker 5: sleeves that will bring the Apple Watch in compliance with

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Speaker 5: the ITC. And so what Apple has done is they

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Speaker 5: submitted details of this software upgrade to the US Customs

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Speaker 5: Agency and on January twelve, the US Customs Agency will

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Speaker 5: make a decision whether or not to approve the refresh

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Speaker 5: to the watch to make them fix. If they go

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Speaker 5: ahead and approve that and the ITC and other entities

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Speaker 5: and the US agree, the Apple Watch can come back

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Speaker 5: to market.

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Speaker 2: And Bloomber's Mark German says the US International Trade Commission

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Speaker 2: determined in October that Apple violated two Massimo health technology

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Speaker 2: patents with a blood oxygen sensor in its watches, and.

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Speaker 1: Karen saying in the tech sector, a couple of heavyweights

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Speaker 1: joining forces on the artificial intelligence That's good. Details this

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Speaker 1: morning from Bloomberg's Jeff Bellinger.

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Speaker 6: Legendary designer Johnny Ive and open ai Sam Altman are

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Speaker 6: enlisting a veteran to work on a new artificial intelligence

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Speaker 6: hardware project. Sources say that as part of the effort,

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Speaker 6: outgoing Apple executive Tang Tan will join IVES design firm

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Speaker 6: love From, which will shape the look and capabilities of

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Speaker 6: the new products. Altman, an executive who has become the

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Speaker 6: face of modern AI, plans to provide the software underpinnings.

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Speaker 6: The work marks one of the most ambitious efforts undertaken

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Speaker 6: by IVES since he left Apple in twenty nineteen. The

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Speaker 6: designer is famous for the products he helped devise under

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Speaker 6: Apple co founder Steve Jobs, including the iMac iPhone and

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Speaker 6: the iPad. His hope is to turn the AI device

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Speaker 6: work into a new company, but sources say development of

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Speaker 6: the product's remains at an early stage. Jeff Bellinger, Bloomberg Radio.

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Speaker 2: All right, Jeff, thanks, Now we turn to the latest

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Speaker 2: developments in the Middle East. US strikes on targets in

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Speaker 2: Iraq and fresh attacks by hu They militants in the

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Speaker 2: Red Sea, providing the latest warning signs that the war

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Speaker 2: in Gaza risks expanding into a wider conflict of stabilizing

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Speaker 2: the region. Ras Madison is news director for Europe, the

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Speaker 2: Middle East and Africa for a Bloomberg News.

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Speaker 7: You've got all these groups operating in the region, supported

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Speaker 7: by Iran, who are carrying out sort of unilateral attacks

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Speaker 7: on targets throughout the region, including these shippers, and of

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Speaker 7: course Iran sort of warning increasingly that this does increase

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Speaker 7: the risk that they get drawn in. It also increases

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Speaker 7: the risk that the US militarily gets drawn in because

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Speaker 7: of course they're having to shoot down a bunch of

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Speaker 7: this stuff as it's flying around the region targeting this shipping.

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Speaker 7: And we're talking about a coalition of military ships in

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Speaker 7: the region potentially to escort some of this commercial shipping through,

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Speaker 7: and so all.

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Speaker 2: Of that adds to environment of high tension in Bloomberg's

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Speaker 2: ras Madison says. Benjamin Netanyahu says Israel will expand it's

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Speaker 2: Garza ground defensive in the coming days, despite international efforts

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Speaker 2: to halt the fighting and.

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Speaker 1: Back here at home care on. Thousands of migrants and

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Speaker 1: asylum seekers are moving north toward the American border. As

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Speaker 1: tom US officials prepared to meet with Mexico's president. That

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Speaker 1: story this morning from Bloomberg's and Baxter.

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Speaker 8: The caravan has reached Chiapas, Mexico, thousands carrying signs that

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Speaker 8: say exodus from poverty. The caravan hopes to reach the

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Speaker 8: border as Secretary of State Anthony Blincoln and Homeland Security

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Speaker 8: Chief Alejandro Majorcas meet with Mexican President Andres Manuel Lopez Odador.

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Speaker 8: The State Department says item one is quote unprecedented irregular

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Speaker 8: migration in the Western hemisphere. Now, the US says the

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Speaker 8: parties need to address border security challenges and identify ways

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Speaker 8: for Mexico to help in the fight. Some of the

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Speaker 8: caravan have traveled from as far away as South America.

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Speaker 8: At Baxter Bloomberg Radio.

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Speaker 1: All right, thanks Karen, and that brings us to five

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Speaker 1: oh seven Time down for a look at some of

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Speaker 1: the other stories making news around the world. For that,

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Speaker 1: we're joined by Bloomberg's Amy Morris. Amy, Good morning, Good

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Speaker 1: morning John.

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Speaker 9: Several pro Palestinian protesters were arrested after swarming Rockefeller Center,

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Speaker 9: Grand Central and other areas of the long holiday weekend.

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Speaker 9: Police arrested at least a half dozen people for disorderly

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Speaker 9: conduct menacing at graffiti now In New York City, Mayor

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Speaker 9: Eric Adams says there's always a serious concern about safety

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Speaker 9: in Time Square. On New Year's Eve, he says there's

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Speaker 9: an added concern protesters will disrupt more celebrations after pro

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Speaker 9: Palestinian supporters tried to spoil the Rockefeller Center Christmas tree

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Speaker 9: lighting over this past year.

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Speaker 10: The police department did an amazing job doing the tree

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Speaker 10: lighting to mitigate any form of major disruptions, and they're

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Speaker 10: going to do it this year.

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Speaker 11: Adam says NYPD will monitor online chatter.

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Speaker 9: Top Biden administration officials are in Mexico today to discuss

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Speaker 9: the influx of migrants.

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Speaker 11: More on this from Bloomberg's Nancy Lyons.

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Speaker 12: US Secretary of State Anthony Blincoln in Secretary of Homeland

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Speaker 12: Security Alejandre Mayorcis will meet with Mexican President andres Manuel

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Speaker 12: Lopez Obrador to address the ongoing border security challenges and

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Speaker 12: what each country can do to alleviate the problem. B

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Speaker 12: Lincoln's office notes the migration across the southern border has

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Speaker 12: been unprecedented. B Lincoln is expected to focus on creating

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Speaker 12: legal pathways into the US as well as additional enforcement

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Speaker 12: in Washington. Nancy lyons Bloomberg Radio.

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Speaker 9: Now, one of Mayor Adam's main focuses next year will

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Speaker 9: be trying to get the federal help on the migrant crisis.

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Speaker 10: I have to keep hammering away at this issue, and

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Speaker 10: I'm really pleased that we are now in the chorus

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Speaker 10: of other cities that are joining us.

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Speaker 9: There are currently sixty eight thousand asylum seekers in New

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Speaker 9: York City's care right now. And a new program would

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Speaker 9: allow New York City to direct money to new construction

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Speaker 9: after a tax incentive favorable to developers lapsed last year.

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Speaker 9: The New York Times reports the plan would direct public

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Speaker 9: money toward mixed income housing projects in wealthier neighborhoods. The

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Speaker 9: hope is that developers will produce more affordable units using

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Speaker 9: the income from those high rent market rate apartments. The

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Speaker 9: Global News twenty four hours a day and whenever you

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Speaker 9: want it with Bloomberg News.

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Speaker 11: Now, I'm maybe Morrison. This is Bloomberg John.

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Speaker 1: All right, thanks Amy, and that brings us to five

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Speaker 1: ten on Wall Street. Time down for the Bloomberg Sports Update.

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Speaker 1: And for that, here's Dan Schwarzman.

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Speaker 11: Good Morning John.

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Speaker 13: Week seventeen of The NFL season kicks off tomorrow in

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Speaker 13: Cleveland as the Browns are hosting the Jets. Cleveland is

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Speaker 13: ten and five, Jets coming at six and nine. Jets

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Speaker 13: head coach Robert Salad talking about how the Jets can

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Speaker 13: take some inspiration from Cleveland season.

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Speaker 14: They're doing a really nice job. Defensively, they're playing at

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Speaker 14: an eightee level, very similar. Special teams are doing very well.

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Speaker 14: But for sure, we'll definitely look at some things in

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Speaker 14: areas where we can be better, so in the event

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Speaker 14: this happens again, we can keep the vote above water

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Speaker 14: and just kind of replicate what they're doing.

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Speaker 13: That's courtesy of Jets dot Com. Trevor Simeons starting at

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Speaker 13: quarterback for the Jets. Joe Flacco for the Browns. GA

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Speaker 13: in the NBA to Detroit Pistons, setting a record for

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Speaker 13: most consecutive losses in a single season in league history

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Speaker 13: as they dropped their twenty seventh in a row, losing

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Speaker 13: to the Brooklyn Nets won eighteen to one twelve, Cameron

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Speaker 13: Johnson leading the Nets with twenty four points. Elsewhere in

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Speaker 13: the league, futility in Washington as the Wizards are five

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Speaker 13: and twenty four, losing to the Magic one twenty seven

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Speaker 13: to one nineteen, while the Spurs are only four and

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Speaker 13: twenty five after a one thirty one to eighteen home

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Speaker 13: loss to the Jazz. The Nets added again tonight as

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Speaker 13: their home for the Milwaukee Bucks, while the Knicks are

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Speaker 13: on the road facing the thunder in Oklahoma City. The

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Speaker 13: three day NHL Christmas Holiday is over most of the

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Speaker 13: league in action tonight. The Rangers home for the Washington Capitals.

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Speaker 13: Devil's welcoming in the Columbus Blue Jackets. It's the Boston

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Speaker 13: Bruins on the road of the Buffalo Sabers, while the

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Speaker 13: Islanders are home for the Pittsburgh Penguins. That's your Bloomberg

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Speaker 13: Sports update on Dan Schwartzman.

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Speaker 15: From coast to coast, from New York to San Francisco,

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Speaker 15: Boston to Washington, DC, nationwide on Syria's Exam, the Bloomberg

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Speaker 15: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 1: Good morning, I'm John Tucker. We are looking at the

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Speaker 1: risk of a wider Admit East war. This morning. Fresh

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Speaker 1: attacks by Houthi rebels shipping in the Red Sea provided

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Speaker 1: the latest warning signs. Let's get the update this morning,

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Speaker 1: and I'm happy to say. We're joined by Bloomberg's Rob Mathieson,

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Speaker 1: the news director for Europe, the Middle East and Africa.

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Speaker 1: Ro's nice to talk to you again. It's not anything

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Speaker 1: new attacks in this region. What is different this time?

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Speaker 11: Well, that's right.

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Speaker 7: The attacks and themselves are not that new. They have

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Speaker 7: been a patent for many years now in this sort

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Speaker 7: of narrow area of water in the Red Sea. And

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Speaker 7: of course the Houthies who are based in Yemen but

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Speaker 7: bat by Iran sort of quite often targeting shipping in

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Speaker 7: the area, but again sort of harrying them more than

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Speaker 7: sort of causing serious damage. But what we're seeing is

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Speaker 7: an escalation in that pattern of attacks in the backdrop

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Speaker 7: of the war between Israel and Hamas in Gaza. And

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Speaker 7: we're also seeing it come against the backdrop of those

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Speaker 7: other attacks that are going on, strikes against US forces

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Speaker 7: who are based in Iraq, retaliatory strikes against groups that

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Speaker 7: are operating in Iraq, all of those groups in the

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Speaker 7: end sort of seemingly linking back to Iran, which says

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Speaker 7: it's not trying to disrupt commercial shipping in the area,

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Speaker 7: but neither is it seemingly raining in these groups that

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Speaker 7: it supports and so all of that comes at a

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Speaker 7: moment of high tension in the region. You've got significant

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Speaker 7: military forces operating. The US Navy is in the area,

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Speaker 7: other countries sending naval ships to try and support shipping

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Speaker 7: that's passing through, and so the possibility of sort of

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Speaker 7: a broader conflict does exist as a result, although so

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Speaker 7: far we haven't seen that happen, and Iran has sort

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Speaker 7: of urged some restraint itself. In a climate where you

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Speaker 7: just have shipping in such close proximity, the possibility of

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Speaker 7: a broader conflict cannot be ruled out.

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Speaker 1: Is this going to draw in other actors at this point.

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Speaker 7: Well, there are multiple actors on this sort of the

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Speaker 7: Iran supported side already involved in different ways.

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Speaker 11: Obviously in the conflict itself with Israel.

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Speaker 7: You've got Hesblah still lobbying things from the across the

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Speaker 7: Lebanon border.

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Speaker 11: You've got the Huthi's operating out of Yemen.

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Speaker 7: You've got groups operating out of Iraq, so they've got

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Speaker 7: quite a few proxies at the moment for Iran operating

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Speaker 7: in the region. On the other side, you've got the

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Speaker 7: US Navy quite actively trying to support shipping shooting down

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Speaker 7: drones and other rockets as they're firing through the air

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Speaker 7: from Yemen. You've got other countries sort of saying they

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Speaker 7: want to send their ships to support, and this talk

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Speaker 7: this plan for sort of a naval support task force

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Speaker 7: that's going to support shipping and deter further strikes in

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Speaker 7: the region. You've got India talking about sending warships. So again,

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Speaker 7: you've just got an awful lot of actors involved, none

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Speaker 7: of whom who want really to end up in an

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Speaker 7: outright conflict. But again, with so much shipping in close proximity,

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Speaker 7: be it commercial shipping and naval shipping, the possibility of

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Speaker 7: an accident even cannot be ruled out.

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Speaker 1: Yeah, is it likely that the US would be forced

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Speaker 1: to act even more assertively in this region.

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Speaker 7: Well, they're very much not wanting to unless they have to,

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Speaker 7: particularly again when it comes to Yemen. The US has

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Speaker 7: been working hard in recent years to extricate itself from

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Speaker 7: Yemen and of course urging the Saudi Arabians to also

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Speaker 7: de escalate there, and not something that the US President

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Speaker 7: Joe Biden wants to get particularly directly involved in again

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Speaker 7: and certainly doesn't want to get involved in a one

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Speaker 7: on one conflict that involves Ran and so it does

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Speaker 7: exist as a possibility. The US very much doesn't want

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Speaker 7: to end up with boots on the ground in another conflict.

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Speaker 7: They've become very risk averse about that if you see

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Speaker 7: prior history involving places like Afghanistan for example, they don't

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Speaker 7: want to do that. But again, more and more they

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Speaker 7: are engaging directly in support of shipping in the region

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Speaker 7: and shooting down stuff that might be even flying towards

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Speaker 7: Israel from Yemen for example. So at some point it

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Speaker 7: doesn't become a bit moot. Are they sort of involved

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Speaker 7: militarily yes? Are they directly military involved? They would say no,

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Speaker 7: and they don't want to.

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Speaker 1: Be Whether or not this is your expertise, I don't know.

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Speaker 1: But in terms of the impact on commodities, especially oil

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Speaker 1: for instance, is it kind of surprising we haven't seen

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Speaker 1: a bigger jump in commodity prices as a result of

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Speaker 1: these attacks.

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Speaker 7: Well, we are seeing oil at least being supported as

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Speaker 7: a result of this. You've got brand near eighty one

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Speaker 7: dollars a barrel, it's about the highest level in almost

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Speaker 7: a month. You're also seeing gas prices rise in a

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Speaker 7: way that the commodity that may react more to this

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Speaker 7: is gas because of concerns around restrictions on supply in

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Speaker 7: the region if Iran really got involved in a conflict,

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Speaker 7: and so the immediate concern maybe less about oil and

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Speaker 7: how much needs to be shipped through that region or

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Speaker 7: how much oil can come from Iran, but really the

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Speaker 7: concern is about a possible impact on gas. We saw

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Speaker 7: some gas fields in fact out of operation in the

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Speaker 7: early days of this conflict between Israel and her mask

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Speaker 7: that was out of an abundance.

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Speaker 11: Of caution, and they have now resumed operation.

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Speaker 7: But really the commodity that may react the most of

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Speaker 7: this is gas, and that's one that we're watching closely.

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