1
00:00:02,520 --> 00:00:07,040
Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

2
00:00:10,160 --> 00:00:13,399
Speaker 2: Good morning, I'm Nathan Hager and I'm Lisa Matteo. Here

3
00:00:13,440 --> 00:00:15,280
Speaker 2: are the top stories we're following today.

4
00:00:15,760 --> 00:00:18,439
Speaker 3: Lisa, we begin with new developments this morning on Warner

5
00:00:18,520 --> 00:00:22,880
Speaker 3: Brothers Discovery. President Trump is flagging concerns over Netflix, has

6
00:00:22,920 --> 00:00:26,599
Speaker 3: planned seventy two billion dollar acquisition of the company. The

7
00:00:26,680 --> 00:00:28,960
Speaker 3: deal is still in its early stages, but it would

8
00:00:28,960 --> 00:00:32,560
Speaker 3: bring together the world's dominant streaming service with the iconic

9
00:00:32,640 --> 00:00:37,120
Speaker 3: Hollywood movie studio. Praising Netflix CEO Ted Sarandos, whom he

10
00:00:37,159 --> 00:00:40,240
Speaker 3: met with recently, President Trump, though, is hinting to reporters

11
00:00:40,240 --> 00:00:43,559
Speaker 3: that regulators could take issue with the size of the

12
00:00:43,600 --> 00:00:44,440
Speaker 3: combined entity.

13
00:00:44,840 --> 00:00:46,839
Speaker 4: And he's done one of the greatest jobs in the

14
00:00:46,880 --> 00:00:51,080
Speaker 4: history of movies and other things that He's got a

15
00:00:51,080 --> 00:00:54,360
Speaker 4: lot of interesting things happening aside from what you're talking about.

16
00:00:55,120 --> 00:00:57,240
Speaker 4: But it is a big market channel, there's no question

17
00:00:57,280 --> 00:00:57,600
Speaker 4: about it.

18
00:00:58,160 --> 00:00:59,120
Speaker 5: It could be a problem.

19
00:00:59,360 --> 00:01:02,680
Speaker 3: President Trump hosted Serrandos at the White House in mid November,

20
00:01:02,720 --> 00:01:05,120
Speaker 3: when the pair discussed the deal and checking shares of

21
00:01:05,200 --> 00:01:07,640
Speaker 3: Warner Brothers Discovery in the pre market, they are down

22
00:01:07,840 --> 00:01:08,399
Speaker 3: two percent.

23
00:01:08,600 --> 00:01:10,120
Speaker 6: Well. Staying in Washington, Nathan.

24
00:01:10,240 --> 00:01:13,440
Speaker 2: Later today, President Trump he plans to unveil a long

25
00:01:13,480 --> 00:01:17,520
Speaker 2: awaited aid package for farmers, a White House official tells Bloomberg.

26
00:01:17,560 --> 00:01:21,360
Speaker 2: The twelve billion dollar package includes eleven billion dollars in

27
00:01:21,440 --> 00:01:25,679
Speaker 2: one time payments under the Agriculture Department's farmer Bridge Assistance program.

28
00:01:25,959 --> 00:01:29,120
Speaker 2: The move comes with farmers getting more frustrated about China's

29
00:01:29,120 --> 00:01:33,280
Speaker 2: slow pace of resuming soybean and other agricultural purchases, but

30
00:01:33,400 --> 00:01:36,760
Speaker 2: US Trade Representative Jamison Greer says China is holding up

31
00:01:36,800 --> 00:01:38,720
Speaker 2: its end to the trade agreement with the US.

32
00:01:39,000 --> 00:01:43,520
Speaker 7: The commitments are quite specific. They're about purchasing a certain

33
00:01:43,520 --> 00:01:46,360
Speaker 7: amount of soybeans, for example, through the rest of this

34
00:01:46,440 --> 00:01:48,280
Speaker 7: growing season and then each of the next years. These

35
00:01:48,280 --> 00:01:52,040
Speaker 7: are things that are quantifiable. The data are clear. We've

36
00:01:52,040 --> 00:01:54,520
Speaker 7: already seen that the Chinese are getting to about a

37
00:01:54,520 --> 00:01:56,560
Speaker 7: third of the way through their purchase commitment for this

38
00:01:56,680 --> 00:01:57,440
Speaker 7: growing season.

39
00:01:57,760 --> 00:02:01,480
Speaker 2: US Trade Representative Jamison Greer appeared on Fox News. President

40
00:02:01,560 --> 00:02:04,320
Speaker 2: Trump is scheduled to unveil the farm aid this afternoon

41
00:02:04,400 --> 00:02:06,520
Speaker 2: at two pm Wall Street time, and an event with

42
00:02:06,600 --> 00:02:11,680
Speaker 2: crop farmers, Treasury Secretary Scott Besson and Agriculture Secretary Brook Rollins.

43
00:02:11,360 --> 00:02:12,560
Speaker 5: Ahead of that event Lisa.

44
00:02:12,639 --> 00:02:16,800
Speaker 3: Treasury Secretary Besson says the Trump administration is focused on affordability.

45
00:02:16,800 --> 00:02:19,040
Speaker 5: He spoke yesterday on CBS's Face the Nation.

46
00:02:19,600 --> 00:02:23,880
Speaker 8: Democrats created scarcity, whether it's an energy or over regulation,

47
00:02:24,680 --> 00:02:29,160
Speaker 8: that we are now seeing the suffordability problem, and I

48
00:02:29,160 --> 00:02:31,280
Speaker 8: think next year we're going to move on to prosperity.

49
00:02:31,360 --> 00:02:34,079
Speaker 3: The Treasury Secretary Scott Besson says he expects the US

50
00:02:34,160 --> 00:02:36,840
Speaker 3: economy to end the year with three percent GDP growth.

51
00:02:36,840 --> 00:02:39,760
Speaker 3: And you can catch CBS's face the Nation Sunday afternoons

52
00:02:39,840 --> 00:02:40,760
Speaker 3: on Bloomberg Radio.

53
00:02:40,960 --> 00:02:45,320
Speaker 2: Turning now to geopolitics, Nathan Defense Secretary Pete Hegseth he's

54
00:02:45,360 --> 00:02:48,840
Speaker 2: doubling down on deadly air strikes on suspected drug running

55
00:02:48,840 --> 00:02:52,120
Speaker 2: boats off the Venezuelan coast. At the Reagan Defense Forum

56
00:02:52,160 --> 00:02:55,880
Speaker 2: in California over the weekend, Hegseth defended Admiral Frank Bradley

57
00:02:55,960 --> 00:02:59,359
Speaker 2: for ordering a second strike that killed survivors aboard one

58
00:02:59,440 --> 00:03:00,800
Speaker 2: vessel on September second.

59
00:03:01,120 --> 00:03:03,640
Speaker 5: From what I understood then and what I understand now,

60
00:03:03,720 --> 00:03:06,760
Speaker 5: I fully support that strike. I would have made the

61
00:03:06,760 --> 00:03:08,000
Speaker 5: same call myself.

62
00:03:08,200 --> 00:03:12,000
Speaker 2: Defense Secretary Pete Hegseth says the Pentagon is reviewing video

63
00:03:12,040 --> 00:03:14,680
Speaker 2: of the attack. He's declining to say whether it will

64
00:03:14,720 --> 00:03:17,800
Speaker 2: be released to the public. Jim Hins is a top

65
00:03:17,840 --> 00:03:20,120
Speaker 2: Democrat on the House Intelligence Committee.

66
00:03:20,160 --> 00:03:21,839
Speaker 6: He says a video should come to light.

67
00:03:22,160 --> 00:03:24,160
Speaker 9: I think it's really important that people see what it

68
00:03:24,200 --> 00:03:26,400
Speaker 9: looks like when the full force of the United States

69
00:03:26,400 --> 00:03:29,760
Speaker 9: military has turned on two guys who are clinging to

70
00:03:29,800 --> 00:03:31,800
Speaker 9: a piece of wood and about to go under, just

71
00:03:31,840 --> 00:03:33,520
Speaker 9: so that they have sort of a visceral feel for

72
00:03:33,560 --> 00:03:34,560
Speaker 9: what it is that we're doing.

73
00:03:34,720 --> 00:03:38,119
Speaker 2: Democratic Congressman Jim Hines appeared on CBS's Face a Nation

74
00:03:38,240 --> 00:03:40,320
Speaker 2: Heard every Sunday on Bloomberg Radio.

75
00:03:40,520 --> 00:03:42,760
Speaker 3: Let's turn now, Lisa to the latest developments on ending

76
00:03:42,840 --> 00:03:45,760
Speaker 3: the war in Ukraine. UK Prime Minister Keir Starmer is

77
00:03:45,760 --> 00:03:49,080
Speaker 3: set to host Ukrainian President Vladimir Zelenski in London today.

78
00:03:49,120 --> 00:03:51,240
Speaker 3: The leaders of France and Germany will join the meeting

79
00:03:51,320 --> 00:03:55,240
Speaker 3: as well. Tony Halpin leads Bloomberg's Economic and government coverage

80
00:03:55,360 --> 00:03:55,880
Speaker 3: of Russia.

81
00:03:56,240 --> 00:03:59,560
Speaker 10: The Europeans are trying to bolster the Ukraine's leverage at

82
00:03:59,600 --> 00:04:02,880
Speaker 10: this time because they themselves are not there, but at

83
00:04:02,880 --> 00:04:05,880
Speaker 10: the same time they want to help Ukraine maintain its

84
00:04:05,920 --> 00:04:09,280
Speaker 10: positions in the face of what is fairly considerable pressure

85
00:04:09,320 --> 00:04:12,080
Speaker 10: to agree to a deal. And the US has been

86
00:04:12,120 --> 00:04:15,440
Speaker 10: in direct negotiations with Ukraine and has been direct negotiations

87
00:04:15,440 --> 00:04:18,359
Speaker 10: with Russia. The peace plan that they are talking about

88
00:04:18,400 --> 00:04:21,920
Speaker 10: originated as a joint US Russia peace plan, and so

89
00:04:21,960 --> 00:04:25,200
Speaker 10: the European leaders are trying to ensure that Zelensky isn't

90
00:04:25,200 --> 00:04:27,520
Speaker 10: pushed into a corner and agrees to a deal that

91
00:04:27,880 --> 00:04:30,440
Speaker 10: doesn't secure Ukraine's long term security.

92
00:04:30,600 --> 00:04:31,960
Speaker 5: That's Bloomberg's Tony Halpin.

93
00:04:32,080 --> 00:04:35,560
Speaker 3: President Trump says he's disappointed in Zelenski's handling of the

94
00:04:35,680 --> 00:04:36,680
Speaker 3: US proposal to.

95
00:04:36,720 --> 00:04:39,000
Speaker 6: End the war well staying in Europe. Nathan JP.

96
00:04:39,160 --> 00:04:43,560
Speaker 2: Morgan CEO Jamie Diamond says bureaucracy is having a significant

97
00:04:43,600 --> 00:04:47,080
Speaker 2: impact on the continent's growth prospects. In an interview over

98
00:04:47,120 --> 00:04:50,360
Speaker 2: the weekend with Bloomberg's Caroline Hyde, Diamond also said a

99
00:04:50,400 --> 00:04:53,400
Speaker 2: fracturing of the continent could become a major problem for

100
00:04:53,440 --> 00:04:54,000
Speaker 2: the US.

101
00:04:54,279 --> 00:04:57,120
Speaker 11: If they fragment, you know, then you could say that

102
00:04:57,200 --> 00:05:00,400
Speaker 11: you know that America First will not will not be

103
00:05:00,520 --> 00:05:03,520
Speaker 11: around anymore. We It will hurt us more than anybody

104
00:05:03,520 --> 00:05:06,960
Speaker 11: else because they are a major ally in every single way,

105
00:05:07,000 --> 00:05:11,080
Speaker 11: including common values, which are really important. So therefore I

106
00:05:11,120 --> 00:05:16,960
Speaker 11: think we should be using our American capabilities trained coercion, democracy, trade,

107
00:05:17,000 --> 00:05:19,440
Speaker 11: investment to urge them to do it in their own

108
00:05:19,480 --> 00:05:20,200
Speaker 11: self interest.

109
00:05:20,400 --> 00:05:24,279
Speaker 2: Diamond's comments come at a difficult moment for US European relations,

110
00:05:24,480 --> 00:05:27,440
Speaker 2: as the two sides find themselves increasingly at odds on

111
00:05:27,520 --> 00:05:31,120
Speaker 2: issues ranging from Ukraine to trade and regulation. For the

112
00:05:31,160 --> 00:05:34,400
Speaker 2: full conversation, head over to the Bloomberg podcast channel on YouTube.

113
00:05:34,560 --> 00:05:37,599
Speaker 3: Turning the Market's Now, Lisa, Futures are mixed this morning

114
00:05:37,600 --> 00:05:40,680
Speaker 3: ahead of Wednesday's rate decision from the Federal Reserve, and

115
00:05:40,720 --> 00:05:43,320
Speaker 3: we have a couple of big market calls this morning.

116
00:05:43,560 --> 00:05:46,680
Speaker 3: Morgan Stanley's Mike Wilson says US equities face a quote

117
00:05:46,760 --> 00:05:50,919
Speaker 3: bullish setup given expectations of great cuts and the outlook

118
00:05:50,920 --> 00:05:55,240
Speaker 3: for improving earnings. John Staltzfis, chief investment strategist at Oppenheimer

119
00:05:55,279 --> 00:05:57,480
Speaker 3: Asset Management, says the S and P five hundred will

120
00:05:57,520 --> 00:06:01,200
Speaker 3: surge eighteen percent in twenty twenty six as earnings per

121
00:06:01,200 --> 00:06:03,920
Speaker 3: share continue to rise in double digits, and Wall Street

122
00:06:04,040 --> 00:06:07,919
Speaker 3: Research veteran ed Yard Denny is now recommending underweighting the

123
00:06:08,000 --> 00:06:11,560
Speaker 3: magnificent seven megacap tech stocks versus the rest of the

124
00:06:11,640 --> 00:06:12,719
Speaker 3: s and P five hundred.

125
00:06:13,000 --> 00:06:16,720
Speaker 12: It's hard to recommend overweighting something that's already quite overweight.

126
00:06:16,920 --> 00:06:19,360
Speaker 12: I mean, if you just told people just to maintain

127
00:06:19,440 --> 00:06:22,240
Speaker 12: the current weight of the index, that would still be

128
00:06:22,279 --> 00:06:26,160
Speaker 12: an overweight position relative to what most people will think

129
00:06:26,160 --> 00:06:27,800
Speaker 12: would be a diversified portfolio.

130
00:06:27,880 --> 00:06:31,040
Speaker 3: And your Denny of Yard Denny Research instead recommends investing

131
00:06:31,080 --> 00:06:33,120
Speaker 3: in financials, industrials, and healthcare.

132
00:06:33,240 --> 00:06:36,240
Speaker 2: In company news, Nathan the Wall Street Journal reporting IBM

133
00:06:36,360 --> 00:06:40,839
Speaker 2: is in advanced negotiations to acquire data infrastructure firm Confluent

134
00:06:40,880 --> 00:06:44,400
Speaker 2: for about eleven billion dollars. The paper says a deal,

135
00:06:44,440 --> 00:06:47,839
Speaker 2: which would mark one of IBM's biggest acquisitions in recent years,

136
00:06:47,960 --> 00:06:50,680
Speaker 2: could be announced as early as today. Chairs of Confluent

137
00:06:50,800 --> 00:06:53,560
Speaker 2: are thirty one percent in early trading.

138
00:06:56,480 --> 00:06:56,680
Speaker 13: Time.

139
00:06:56,680 --> 00:06:58,200
Speaker 2: Now for a look at some of the other stories

140
00:06:58,200 --> 00:07:00,240
Speaker 2: making news in New York and around the world that

141
00:07:00,200 --> 00:07:03,040
Speaker 2: we're joined by Bloomberg's Michael bar Good morning, Michael.

142
00:07:02,880 --> 00:07:05,719
Speaker 14: Good morning, Lisa. A pre trial hearing is schedule to

143
00:07:05,760 --> 00:07:08,520
Speaker 14: resume today with the man accused of killing the CEO

144
00:07:09,040 --> 00:07:12,680
Speaker 14: of United Healthcare. A New York judge is considering whether

145
00:07:12,800 --> 00:07:16,440
Speaker 14: certain pieces of evidence can be used against Luigi Mangione

146
00:07:16,600 --> 00:07:20,680
Speaker 14: during his state trial. Mangioni's defense attorneys said that the

147
00:07:20,720 --> 00:07:25,440
Speaker 14: police did not read their client his Miranda rights. New

148
00:07:25,480 --> 00:07:28,160
Speaker 14: images were released over the weekend from the day of

149
00:07:28,240 --> 00:07:32,720
Speaker 14: Mangione's arrest. Those include a USB stick that he was

150
00:07:32,760 --> 00:07:36,160
Speaker 14: wearing as a necklace, a December fourth bus ticket from

151
00:07:36,200 --> 00:07:39,880
Speaker 14: Philadelphia to Pittsburgh, and a to do list that was

152
00:07:39,920 --> 00:07:43,600
Speaker 14: found folded up in his pocket. Israeli Prime Minister Benjamin

153
00:07:43,640 --> 00:07:46,280
Speaker 14: Dettan Yaho says Israel expects to move to the next

154
00:07:46,320 --> 00:07:51,040
Speaker 14: phase of the Gaza ceasefire plan soon. Detan Yahoo says

155
00:07:51,200 --> 00:07:54,920
Speaker 14: that he would discuss opportunities for peace with President Trump

156
00:07:55,000 --> 00:07:57,920
Speaker 14: when he meets him later this month. Det Yahoo also

157
00:07:58,080 --> 00:08:00,240
Speaker 14: voiced opposition to a Palestinian state.

158
00:08:00,480 --> 00:08:01,120
Speaker 5: The purpose of.

159
00:08:01,040 --> 00:08:03,600
Speaker 13: A Palestinian state is to destroy the one and only

160
00:08:03,680 --> 00:08:07,400
Speaker 13: Jewish date. They already had a state in Gaza, a

161
00:08:07,480 --> 00:08:12,280
Speaker 13: defactive state, and it was used to try to destroy

162
00:08:12,440 --> 00:08:13,600
Speaker 13: the one in only Jewish date.

163
00:08:14,000 --> 00:08:17,280
Speaker 14: The truth between Israel and Amas remains fragile, with both

164
00:08:17,320 --> 00:08:21,240
Speaker 14: sides accusing the other of violations. The Trump administration has

165
00:08:21,280 --> 00:08:25,000
Speaker 14: released a new calendar that changes the free entry days

166
00:08:25,040 --> 00:08:28,760
Speaker 14: for national parks. It removes Martin Luther King Junior Day

167
00:08:28,880 --> 00:08:33,280
Speaker 14: and June teenth, both federal holidays, and adding Flag Day,

168
00:08:33,720 --> 00:08:37,280
Speaker 14: which is not a federal holiday on June fourteenth that

169
00:08:37,440 --> 00:08:41,000
Speaker 14: just happens to be President Trump's birthday. Pastor activist and

170
00:08:41,040 --> 00:08:43,120
Speaker 14: author Jamal Bryant, everything that.

171
00:08:43,040 --> 00:08:45,880
Speaker 9: They did in the civil rights community is trying to

172
00:08:45,920 --> 00:08:48,679
Speaker 9: be erased and dismiss as if it never happened.

173
00:08:48,960 --> 00:08:52,720
Speaker 14: Pastor Jamal Bryant and other critics say no sitting president

174
00:08:53,040 --> 00:08:55,280
Speaker 14: has had their birthday declared as a free day in

175
00:08:55,320 --> 00:08:58,520
Speaker 14: the park. Global News twenty four hours a day and

176
00:08:58,600 --> 00:09:01,080
Speaker 14: whenever you want it with the Bloomber News. Now, I'm

177
00:09:01,120 --> 00:09:03,199
Speaker 14: Michael Barrn. This is Bloomberg Leaser.

178
00:09:04,120 --> 00:09:04,760
Speaker 6: Thanks Michael.

179
00:09:05,000 --> 00:09:07,640
Speaker 2: Time now for our Bloomberg Sports update, and for that

180
00:09:07,679 --> 00:09:09,280
Speaker 2: we bring in John stash Hour.

181
00:09:09,640 --> 00:09:11,960
Speaker 15: There were some big games in the NFL. The Packers

182
00:09:11,960 --> 00:09:14,320
Speaker 15: never trailed, but the Bears twenty eight to twenty one.

183
00:09:14,400 --> 00:09:17,160
Speaker 15: The Steelers held off the Ravens in Baltimore twenty seven

184
00:09:17,160 --> 00:09:20,000
Speaker 15: to twenty two. The Jadwars top the Colts thirty six

185
00:09:20,040 --> 00:09:22,560
Speaker 15: to nineteen. In all three cases, the winner now in

186
00:09:22,640 --> 00:09:25,199
Speaker 15: sole possession of first in their division. Last night, Euston

187
00:09:25,200 --> 00:09:28,000
Speaker 15: won at Kansas City twenty to ten. Looks said the

188
00:09:28,040 --> 00:09:31,120
Speaker 15: Chiefs are gonna miss the playoffs. Jeff Kent named for

189
00:09:31,160 --> 00:09:33,280
Speaker 15: induction of the Baseball Hall of Fame as the most

190
00:09:33,280 --> 00:09:35,880
Speaker 15: home runs ever for a second baseman, Notre Dame got

191
00:09:35,920 --> 00:09:39,200
Speaker 15: snubbed didn't make the college football playoff. That's your Bloomberg

192
00:09:39,200 --> 00:09:39,800
Speaker 15: Sports update.

193
00:09:41,559 --> 00:09:42,240
Speaker 5: Stay with us.

194
00:09:42,280 --> 00:09:44,880
Speaker 16: More from Bloomberg Daybreak coming up after this.

195
00:09:49,400 --> 00:09:53,600
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

196
00:09:53,720 --> 00:09:56,560
Speaker 1: and around the world on Bloomberg dot Com and the

197
00:09:56,600 --> 00:09:57,880
Speaker 1: Bloomberg Business Altum.

198
00:09:58,080 --> 00:09:59,640
Speaker 6: This is Bloomberg Daybreak.

199
00:09:59,679 --> 00:10:01,040
Speaker 5: Good mone warning on Nathan Hager.

200
00:10:01,080 --> 00:10:03,640
Speaker 3: One of the biggest mergers in Hollywood history could be

201
00:10:03,640 --> 00:10:04,680
Speaker 3: facing some pushback.

202
00:10:04,720 --> 00:10:05,839
Speaker 5: In Washington, d C.

203
00:10:06,160 --> 00:10:09,760
Speaker 3: President Trump is raising doubts about Netflix co CEO Ted

204
00:10:09,800 --> 00:10:13,400
Speaker 3: Sarandos and his planned seventy two billion dollar takeover of

205
00:10:13,480 --> 00:10:14,800
Speaker 3: Warner Brothers Discovery.

206
00:10:15,160 --> 00:10:17,960
Speaker 4: He's got a lot of interesting things happening aside from

207
00:10:17,960 --> 00:10:21,040
Speaker 4: what you're talking about. But it is a big market share,

208
00:10:21,160 --> 00:10:22,200
Speaker 4: There's no question about it.

209
00:10:22,920 --> 00:10:23,720
Speaker 5: Could be a problem.

210
00:10:23,960 --> 00:10:26,520
Speaker 3: President Trump spoke ahead of the Kennedy Center Honors in

211
00:10:26,559 --> 00:10:29,040
Speaker 3: the Nation's capital. For more, we're joined by a Bloomberg

212
00:10:29,040 --> 00:10:31,920
Speaker 3: Market's reporter, Valerie Titel, and of course, Valerie, we are

213
00:10:32,160 --> 00:10:36,440
Speaker 3: very early days into this planned merger, but could we

214
00:10:36,520 --> 00:10:39,319
Speaker 3: be seeing this deal stopped in its tracks out of

215
00:10:39,360 --> 00:10:40,200
Speaker 3: the Nation's capital.

216
00:10:40,240 --> 00:10:40,679
Speaker 5: Good morning.

217
00:10:40,760 --> 00:10:42,200
Speaker 17: Well, well, look, if we take a look at the

218
00:10:42,200 --> 00:10:45,120
Speaker 17: market reaction in pre market, we are seeing Netflix and

219
00:10:45,160 --> 00:10:48,200
Speaker 17: Warner Brothers reverse some of Friday's moves. So there is

220
00:10:48,240 --> 00:10:50,800
Speaker 17: a bit of skepticism on this deal now that we

221
00:10:50,880 --> 00:10:53,240
Speaker 17: heard these comments from President Trump that the size of

222
00:10:53,280 --> 00:10:56,520
Speaker 17: their market share combined could be a problem. We've seen

223
00:10:56,559 --> 00:11:00,800
Speaker 17: also bets on the prediction marketplace polymarket, which did show

224
00:11:00,920 --> 00:11:04,000
Speaker 17: a sixty percent chance of the deal closing in twenty

225
00:11:04,040 --> 00:11:07,000
Speaker 17: twenty six, is now all the way down to twenty five.

226
00:11:07,160 --> 00:11:10,360
Speaker 17: So the market is showing some skepticism here that this

227
00:11:10,520 --> 00:11:14,160
Speaker 17: combined unit between Netflix and Warner Brothers could be something

228
00:11:14,320 --> 00:11:18,480
Speaker 17: that the regulators could declare as harmful to consumers. The

229
00:11:18,480 --> 00:11:21,440
Speaker 17: combined unit would have some four hundred and fifty million

230
00:11:21,760 --> 00:11:25,200
Speaker 17: users under one streaming giant, and it will face a

231
00:11:25,320 --> 00:11:29,559
Speaker 17: lengthy Justice Department review. We have heard from US lawmakers

232
00:11:29,600 --> 00:11:34,200
Speaker 17: on both parties, including Democratic Senator Elizabeth Warren already faulting

233
00:11:34,240 --> 00:11:37,439
Speaker 17: the transaction as harmful to the consumer base and the

234
00:11:37,480 --> 00:11:41,160
Speaker 17: European Union. Regulators are also likely to subject the Netflix

235
00:11:41,200 --> 00:11:43,000
Speaker 17: proposal to an intensive review.

236
00:11:43,080 --> 00:11:45,520
Speaker 5: But it does follow some interesting Bloomberg reporting.

237
00:11:45,679 --> 00:11:48,600
Speaker 17: That the co CEO of Netflix was at the White

238
00:11:48,640 --> 00:11:52,040
Speaker 17: House back in November met with President Trump for over

239
00:11:52,080 --> 00:11:55,280
Speaker 17: an hour to get Trump's blessing on the proposed deal,

240
00:11:55,360 --> 00:11:58,840
Speaker 17: and he did leave with the impression that Netflix wouldn't

241
00:11:58,840 --> 00:12:02,120
Speaker 17: face immediate oppoiceition from the White House. Now, the other

242
00:12:02,440 --> 00:12:05,200
Speaker 17: thing that could complimentate this is the other bidder for

243
00:12:05,320 --> 00:12:09,480
Speaker 17: Warner Brothers Discovery that was paramounts sky Dance could perhaps

244
00:12:09,600 --> 00:12:12,559
Speaker 17: do some lobbying efforts to try to disrupt the plan. Now,

245
00:12:12,600 --> 00:12:16,119
Speaker 17: Paramount Skuydance wanted to buy the whole company, and regulators

246
00:12:16,160 --> 00:12:20,000
Speaker 17: are more likely to approve of a Paramount Warner Brothers

247
00:12:20,040 --> 00:12:22,600
Speaker 17: a merger. So still a lot of drama in this

248
00:12:22,720 --> 00:12:24,600
Speaker 17: merger to play out, But it does seem like there

249
00:12:24,640 --> 00:12:26,800
Speaker 17: is a hint of skepticism now trading in the markets

250
00:12:26,800 --> 00:12:27,760
Speaker 17: about this deal closing.

251
00:12:27,920 --> 00:12:31,240
Speaker 3: Yeah, interesting to hear that Paramount Skuiddance could potentially be

252
00:12:31,320 --> 00:12:35,920
Speaker 3: brought back into play here given the CEO David Ellison,

253
00:12:35,960 --> 00:12:39,000
Speaker 3: his fairly close ties to President Trump as well.

254
00:12:39,040 --> 00:12:39,920
Speaker 5: I mean, how.

255
00:12:39,840 --> 00:12:43,760
Speaker 3: Unusual is it to see this kind of politicization of a.

256
00:12:45,320 --> 00:12:47,840
Speaker 5: Merger like this so early in the process.

257
00:12:48,120 --> 00:12:50,720
Speaker 17: Well, at least one thing we know is that Trump

258
00:12:50,840 --> 00:12:53,880
Speaker 17: has had this push of deregulation. He has a new

259
00:12:53,920 --> 00:12:56,920
Speaker 17: head in the FTC, and they do have a flavor

260
00:12:57,000 --> 00:13:00,520
Speaker 17: of allowing companies a more activity like this. This does

261
00:13:00,840 --> 00:13:04,079
Speaker 17: perhaps pose a test to the White House whether they

262
00:13:04,160 --> 00:13:08,640
Speaker 17: stand by that commitment to deregulation, whether they would let

263
00:13:08,679 --> 00:13:10,439
Speaker 17: a deal like this go through. But it is very

264
00:13:10,440 --> 00:13:13,160
Speaker 17: interesting to see the politics so wrapped up. But in

265
00:13:13,160 --> 00:13:16,000
Speaker 17: a merger this size, Nathan, you're going to have many

266
00:13:16,120 --> 00:13:19,120
Speaker 17: regulators involved. As I mentioned, the European Union could also

267
00:13:19,120 --> 00:13:21,520
Speaker 17: get involved in this discussion as well. So it goes

268
00:13:21,559 --> 00:13:24,120
Speaker 17: down to the size of the merger and the massive

269
00:13:24,200 --> 00:13:28,319
Speaker 17: company it would create, with over four hundred million users

270
00:13:28,600 --> 00:13:31,360
Speaker 17: on one streaming giant platform if Netflix were to take

271
00:13:31,400 --> 00:13:32,440
Speaker 17: Warner Brothers Discovery.

272
00:13:32,559 --> 00:13:34,959
Speaker 3: In our last minute, let's talk about the broader market here.

273
00:13:35,000 --> 00:13:36,959
Speaker 3: I think a lot of the focus this morning, probably

274
00:13:37,000 --> 00:13:38,520
Speaker 3: for the rest of this week, is going to be

275
00:13:38,600 --> 00:13:42,800
Speaker 3: on the Federal Reserve and the final decision of twenty

276
00:13:42,840 --> 00:13:43,719
Speaker 3: twenty five.

277
00:13:43,720 --> 00:13:46,640
Speaker 17: Final decision for twenty twenty five, and while the markets

278
00:13:46,679 --> 00:13:49,480
Speaker 17: are wildly predicting the FED will cut interest rates by

279
00:13:49,480 --> 00:13:51,800
Speaker 17: twenty five basis points, we could be in for a

280
00:13:51,920 --> 00:13:55,840
Speaker 17: whopping number of descents in the voting. We've heard from

281
00:13:55,920 --> 00:13:59,480
Speaker 17: a raft of more hawkish FMC officials saying they're not

282
00:13:59,480 --> 00:14:03,160
Speaker 17: comfortable with cutting rates. Five of them have actually expressed

283
00:14:03,200 --> 00:14:06,880
Speaker 17: concerns in the last month. If they all dissent at

284
00:14:06,920 --> 00:14:09,880
Speaker 17: something that we have not seen in FED in modern

285
00:14:09,960 --> 00:14:13,280
Speaker 17: history of the Federal Reserve, a five descent decision if

286
00:14:13,320 --> 00:14:15,160
Speaker 17: they go ahead and cut interest rates on Wednesday, So

287
00:14:15,200 --> 00:14:17,920
Speaker 17: a fractured FED is the focus, and then the focus

288
00:14:18,040 --> 00:14:20,400
Speaker 17: is on the week after that. The backlog of data

289
00:14:20,440 --> 00:14:23,600
Speaker 17: the November CPI in non farm payroll reporters still do

290
00:14:23,800 --> 00:14:24,640
Speaker 17: before Christmas.

291
00:14:26,520 --> 00:14:29,520
Speaker 16: This is Bloomberg day Break, your morning podcast on the

292
00:14:29,560 --> 00:14:33,040
Speaker 16: stories making news from Wall Street to Washington and beyond.

293
00:14:33,120 --> 00:14:35,560
Speaker 2: Look for us on your podcast feed by six am

294
00:14:35,600 --> 00:14:39,360
Speaker 2: Eastern each morning, on Apple, Spotify, or anywhere else you listen.

295
00:14:39,480 --> 00:14:42,080
Speaker 3: You can also listen live each morning starting at five

296
00:14:42,120 --> 00:14:45,080
Speaker 3: am Wall Street time on Bloomberg eleven three to zero

297
00:14:45,080 --> 00:14:47,760
Speaker 3: in New York, Bloomberg ninety nine to one in Washington,

298
00:14:47,800 --> 00:14:51,120
Speaker 3: Bloomberg ninety two to nine in Boston, and nationwide on

299
00:14:51,280 --> 00:14:53,360
Speaker 3: Sirius XM Channel one twenty one.

300
00:14:53,480 --> 00:14:56,120
Speaker 2: Plus listen coast to coast on the Bloomberg Business App

301
00:14:56,200 --> 00:15:00,080
Speaker 2: now with Apple CarPlay and Android Auto Winterfaces.

302
00:14:59,520 --> 00:15:02,280
Speaker 16: And don't forge get to subscribe to Bloomberg News Now.

303
00:15:02,440 --> 00:15:05,080
Speaker 16: It's the latest news whenever you want it in five

304
00:15:05,160 --> 00:15:08,480
Speaker 16: minutes or less. Search Bloomberg News Now on your favorite

305
00:15:08,480 --> 00:15:12,280
Speaker 16: podcast platform to stay informed all day long. I'm Nathan

306
00:15:12,320 --> 00:15:13,000
Speaker 16: Hager and.

307
00:15:12,960 --> 00:15:13,880
Speaker 6: I'm Lisa Matteo.

308
00:15:14,080 --> 00:15:16,280
Speaker 2: Join us again tomorrow morning for all the news you

309
00:15:16,320 --> 00:15:19,120
Speaker 2: need to start your day right here on Bloomberg Daybreak