1
00:00:02,520 --> 00:00:09,480
Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

2
00:00:09,960 --> 00:00:13,160
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

3
00:00:13,160 --> 00:00:15,280
Speaker 2: are the stories we're following today.

4
00:00:15,480 --> 00:00:15,920
Speaker 3: Well, Karen.

5
00:00:15,920 --> 00:00:18,599
Speaker 4: Global bond yields have risen to high's last scene in

6
00:00:18,640 --> 00:00:21,520
Speaker 4: two thousand and nine. Ahead of the Federal Reserves the

7
00:00:21,600 --> 00:00:25,200
Speaker 4: final policy meeting of the year. There is concern interest

8
00:00:25,280 --> 00:00:28,440
Speaker 4: rate cutting cycles may be ending soon, but as for today,

9
00:00:28,800 --> 00:00:31,639
Speaker 4: traders are all about certain a rate cut is on

10
00:00:31,760 --> 00:00:34,360
Speaker 4: the way, as Bloomberg's Michael McKee reports, though that is

11
00:00:34,400 --> 00:00:36,760
Speaker 4: not the only thing investors will be focused on.

12
00:00:37,120 --> 00:00:39,440
Speaker 5: The markets have priced in a quarter point cut, and

13
00:00:39,479 --> 00:00:42,479
Speaker 5: the Fed doesn't like to disappoint, But the real questions

14
00:00:42,520 --> 00:00:46,000
Speaker 5: revolve around descents, the dot plot and their twenty twenty

15
00:00:46,040 --> 00:00:49,680
Speaker 5: six outlook. We may have three policymakers vote against the

16
00:00:49,720 --> 00:00:53,599
Speaker 5: decision for the first time since twenty nineteen. Investors are

17
00:00:53,640 --> 00:00:57,520
Speaker 5: also focused on what comes next. In September, FED officials

18
00:00:57,520 --> 00:01:00,480
Speaker 5: saw just one rate cut for next year. At the moment,

19
00:01:00,600 --> 00:01:03,840
Speaker 5: the markets are pricing in three. How many they see

20
00:01:03,880 --> 00:01:07,160
Speaker 5: now will depend on their forecasts for unemployment and inflation

21
00:01:07,319 --> 00:01:10,720
Speaker 5: in twenty twenty six. They forecast improvement in both. Back

22
00:01:10,760 --> 00:01:15,280
Speaker 5: in September, but have the risks changed. Michael McKee, Bloomberg Radio.

23
00:01:15,400 --> 00:01:17,520
Speaker 4: Okay, Mike, thank you for full coverage of the FED

24
00:01:17,560 --> 00:01:20,679
Speaker 4: decision and remarks from Chairman J Powell. Tune into a

25
00:01:20,720 --> 00:01:24,960
Speaker 4: special edition of Bloomberg Surveillance the FED decides. It kicks

26
00:01:24,959 --> 00:01:27,560
Speaker 4: off this afternoon at one thirty Wall Street time on

27
00:01:27,600 --> 00:01:32,280
Speaker 4: Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcast channel on YouTube.

28
00:01:32,520 --> 00:01:36,080
Speaker 2: Well ahead of the Fed's last policy decision of the year, Nathan,

29
00:01:36,160 --> 00:01:39,840
Speaker 2: President Trump once again took aim at Feder Reserve Chairman J.

30
00:01:40,080 --> 00:01:40,520
Speaker 5: Powell.

31
00:01:40,560 --> 00:01:42,920
Speaker 2: The President spoke at a rally in Pennsylvania.

32
00:01:43,040 --> 00:01:45,080
Speaker 6: Well, checking this, you know, we have a bad head

33
00:01:45,080 --> 00:01:47,000
Speaker 6: of the FED bed We're going to be making a change.

34
00:01:47,040 --> 00:01:48,320
Speaker 6: Fortunately this guy soo.

35
00:01:50,920 --> 00:01:53,200
Speaker 2: And President Trump says he has a quote pretty good

36
00:01:53,200 --> 00:01:55,440
Speaker 2: idea on who he wants to run the FED. The

37
00:01:55,480 --> 00:01:58,040
Speaker 2: President says he may wait until early next year to

38
00:01:58,080 --> 00:01:59,280
Speaker 2: publicly reveal the name.

39
00:01:59,880 --> 00:02:03,000
Speaker 4: The economy was front and center at the President's rally.

40
00:02:03,040 --> 00:02:05,280
Speaker 4: He was out to address voters' concerns about the high

41
00:02:05,280 --> 00:02:08,600
Speaker 4: cost of living, telling the Mount Pocono crowd, people are

42
00:02:08,639 --> 00:02:10,680
Speaker 4: starting to see the benefits of tariffs.

43
00:02:11,000 --> 00:02:14,400
Speaker 6: It's amazing. It's the smart people understand it. Other people

44
00:02:14,400 --> 00:02:18,120
Speaker 6: are starting to learn, but the smart people really understand it.

45
00:02:18,320 --> 00:02:20,720
Speaker 4: The President says tariffs have allowed him to provide aid

46
00:02:20,720 --> 00:02:23,440
Speaker 4: to farmers and have forced manufacturers to build plants and

47
00:02:23,560 --> 00:02:26,280
Speaker 4: data centers in the US, And he says he inherited

48
00:02:26,360 --> 00:02:28,640
Speaker 4: high prices from the Biden administration.

49
00:02:29,160 --> 00:02:34,760
Speaker 6: They say affordability, and everyone says, oh, that must mean

50
00:02:34,800 --> 00:02:39,520
Speaker 6: Trump has high prices. Now, our prices are coming down tremendously.

51
00:02:39,840 --> 00:02:42,240
Speaker 4: And at one point during the rally, President Trump suggested

52
00:02:42,320 --> 00:02:45,080
Speaker 4: he could try to remove some FED governors if former

53
00:02:45,120 --> 00:02:48,400
Speaker 4: President Biden signed their commissions with an auto pen. President

54
00:02:48,400 --> 00:02:52,320
Speaker 4: Trump has criticized Biden's use of automatic signatures before presidents

55
00:02:52,320 --> 00:02:54,800
Speaker 4: have used them since at least the nineteen forties.

56
00:02:55,120 --> 00:02:57,520
Speaker 2: Let's stick with politics here in Nathan. History has been

57
00:02:57,560 --> 00:03:01,119
Speaker 2: made in Miami. Eileen Higgins won the city may oral runoff.

58
00:03:01,160 --> 00:03:03,800
Speaker 2: She becomes the first woman ever and the first Democrat

59
00:03:03,800 --> 00:03:07,079
Speaker 2: in nearly three decades to lead Miami. Higin's peed a

60
00:03:07,160 --> 00:03:11,040
Speaker 2: Republican endorsed by President Trump. Higgin's victory adds to a

61
00:03:11,080 --> 00:03:14,320
Speaker 2: recent stretch of Democratic gains, including last month's wins in

62
00:03:14,360 --> 00:03:17,840
Speaker 2: New Jersey, and Virginia and zo orun Mom Donnie's victory

63
00:03:17,919 --> 00:03:19,200
Speaker 2: as New York mayor.

64
00:03:19,280 --> 00:03:22,160
Speaker 4: In the nation's capital, kar and Senate Republicans are set

65
00:03:22,200 --> 00:03:24,680
Speaker 4: to vote on a plan this week to counter Democrats

66
00:03:24,720 --> 00:03:28,600
Speaker 4: push to extend expiring Affordable Care Act subsidies. We get

67
00:03:28,639 --> 00:03:30,040
Speaker 4: more from Bloomberg Zamy Morris.

68
00:03:30,080 --> 00:03:33,840
Speaker 7: In Washington, Senate majority leader John Thunne promised Democrats a

69
00:03:33,919 --> 00:03:37,680
Speaker 7: vote to extend Obamacare premium tax credits in exchange for

70
00:03:37,840 --> 00:03:41,280
Speaker 7: reopening the government last month, but Republicans don't want to

71
00:03:41,360 --> 00:03:45,560
Speaker 7: vote against the extension without an alternative plan. This proposal

72
00:03:45,600 --> 00:03:48,280
Speaker 7: would offer people in some Affordable Care Act health plans

73
00:03:48,360 --> 00:03:51,320
Speaker 7: up to fifteen hundred dollars in health savings accounts, but

74
00:03:51,400 --> 00:03:55,200
Speaker 7: it also includes restrictions that could ruin Democratic support. Neither

75
00:03:55,240 --> 00:03:58,280
Speaker 7: the Republican nor Democratic plans are expected to get the

76
00:03:58,360 --> 00:04:02,040
Speaker 7: sixty votes needed for Senate passage, and healthcare costs for

77
00:04:02,120 --> 00:04:05,400
Speaker 7: more than twenty million people are set despite January first.

78
00:04:05,760 --> 00:04:08,400
Speaker 7: In Washington, Amy Morris Bloomberg Radio, All.

79
00:04:08,360 --> 00:04:09,800
Speaker 2: Right, Amy, thank you now. We want to get the

80
00:04:09,880 --> 00:04:13,320
Speaker 2: latest on the war in Ukraine. President Trump is saying

81
00:04:13,400 --> 00:04:17,280
Speaker 2: Russia is in a stronger military position in the war

82
00:04:17,440 --> 00:04:19,760
Speaker 2: he took aim at European leaders for what he sees

83
00:04:19,800 --> 00:04:23,800
Speaker 2: as excessive dialogue that's produced few results. And here's part

84
00:04:23,839 --> 00:04:27,160
Speaker 2: of Donald Trump's exchange with Politico's Dasher Burns.

85
00:04:27,520 --> 00:04:29,760
Speaker 6: They're not doing a good job. Europe is not doing

86
00:04:29,800 --> 00:04:31,599
Speaker 6: a good job. In many ways, they're not doing a

87
00:04:31,600 --> 00:04:35,960
Speaker 6: good job. I want to They talk too much and

88
00:04:36,000 --> 00:04:40,520
Speaker 6: they're not producing. We're talking about Ukraine. They talk, but

89
00:04:40,640 --> 00:04:44,839
Speaker 6: they don't produce, and the war just keeps going on

90
00:04:45,200 --> 00:04:45,719
Speaker 6: and on.

91
00:04:46,480 --> 00:04:49,599
Speaker 2: Almost four years since Putin's full scale invasion of Ukraine,

92
00:04:49,600 --> 00:04:52,280
Speaker 2: the war has come at a huge cost for both sides,

93
00:04:52,320 --> 00:04:55,080
Speaker 2: more than one and a half million troops killed or wounded,

94
00:04:55,360 --> 00:04:57,080
Speaker 2: according to Western estimates.

95
00:04:57,320 --> 00:04:59,000
Speaker 4: Well, now we want to turn care into a Bloomberg

96
00:04:59,040 --> 00:05:03,520
Speaker 4: News exclusive. A trove of emails reviewed by Bloomberg reveals

97
00:05:03,600 --> 00:05:07,760
Speaker 4: Jeffrey Epstein's financial ties on and off Wall Street were

98
00:05:07,760 --> 00:05:11,360
Speaker 4: broader than previously known. Let's get the details from Bloomberg's

99
00:05:11,400 --> 00:05:12,880
Speaker 4: John Tucker, Good Morning John.

100
00:05:12,720 --> 00:05:16,000
Speaker 8: And Nathan akash At. More than eighteen thousand emails sent

101
00:05:16,080 --> 00:05:20,200
Speaker 8: to in front Epstein's private Yahoo account shows, even after

102
00:05:20,279 --> 00:05:23,960
Speaker 8: stories of Epstein's teenage victims spilled into the open Wall

103
00:05:24,000 --> 00:05:27,240
Speaker 8: Street continued to stay in touch. Some helped keep his

104
00:05:27,360 --> 00:05:30,760
Speaker 8: money machine turning. He had access to prestigious names in

105
00:05:30,800 --> 00:05:35,880
Speaker 8: global finance, including legendary Renaissance Technologies and the investment firm

106
00:05:35,920 --> 00:05:39,479
Speaker 8: a billionaire Carl ICoD. Just week samter Epstein was charged

107
00:05:39,480 --> 00:05:43,479
Speaker 8: with soliciting prostitution. For example, he received a coveted invitation

108
00:05:43,640 --> 00:05:47,880
Speaker 8: from wealth manager Greg Hirsch to invest with Renaissance. Epstein

109
00:05:48,000 --> 00:05:50,799
Speaker 8: jumped to the chance. Hersh who now runs his own office,

110
00:05:50,839 --> 00:05:54,920
Speaker 8: said through a spokesperson his interactions were solely professional and

111
00:05:55,160 --> 00:05:56,919
Speaker 8: ended in two thousand and seven.

112
00:05:57,360 --> 00:05:57,520
Speaker 6: Well.

113
00:05:57,520 --> 00:06:01,360
Speaker 8: Epstein even fielded requests for investments until his last week

114
00:06:01,400 --> 00:06:04,359
Speaker 8: of freedom in New York. I'm John Tucker Bloomberg Radio.

115
00:06:04,680 --> 00:06:06,600
Speaker 2: All right, John, thank you. Well, there are some companies

116
00:06:06,600 --> 00:06:09,640
Speaker 2: in the news this morning, Paramount's guide and said Netflix,

117
00:06:09,640 --> 00:06:12,279
Speaker 2: the entertainment heavyweights so logging in a bidding war for

118
00:06:12,400 --> 00:06:15,479
Speaker 2: Warner Brothers Discovery are bracing for a battle that could

119
00:06:15,560 --> 00:06:19,560
Speaker 2: last months. Warner Brothers board is not planning to cancel

120
00:06:19,600 --> 00:06:22,240
Speaker 2: its merger agreement with Netflix, which would require a two

121
00:06:22,279 --> 00:06:25,080
Speaker 2: point eight billion dollar termination fee. And let's say that

122
00:06:25,120 --> 00:06:28,560
Speaker 2: now puts the onus on Paramount to make the next move. Meanwhile,

123
00:06:28,600 --> 00:06:32,039
Speaker 2: money manager Mariogabelli says it's quote highly likely he will

124
00:06:32,080 --> 00:06:35,159
Speaker 2: tender his client's Warner Brothers shares to paramount and an

125
00:06:35,200 --> 00:06:37,479
Speaker 2: effort to spark a bidding war for the film and

126
00:06:37,520 --> 00:06:38,240
Speaker 2: TV company.

127
00:06:38,440 --> 00:06:40,839
Speaker 4: We're watching shares a JP Morgan chase this morning, Karen.

128
00:06:40,880 --> 00:06:42,880
Speaker 4: They're up about a tenth percent, but that followed a

129
00:06:42,960 --> 00:06:46,720
Speaker 4: drop yesterday at four point seven percent after the bank's

130
00:06:46,800 --> 00:06:50,680
Speaker 4: Maryann Lake said JP Morgan anticipates spending one hundred and

131
00:06:50,720 --> 00:06:54,160
Speaker 4: five billion dollars next year. That outlook was more than

132
00:06:54,160 --> 00:06:55,200
Speaker 4: analysts we're looking for.

133
00:06:56,000 --> 00:06:59,160
Speaker 2: And SpaceX Nathan's moving ahead with plans for an initial

134
00:06:59,200 --> 00:07:01,839
Speaker 2: public offer a now would seek to ray significantly more

135
00:07:01,880 --> 00:07:05,080
Speaker 2: than thirty billion dollars. Sources say the Elon muss Lad

136
00:07:05,120 --> 00:07:07,480
Speaker 2: company is targeting a valuation of about one and a

137
00:07:07,520 --> 00:07:11,720
Speaker 2: half trillion for SpaceX, and Bloomberg Tech host ed Ludlow

138
00:07:11,760 --> 00:07:12,239
Speaker 2: has more.

139
00:07:12,520 --> 00:07:15,440
Speaker 9: They do need capital, you know, Elon Musk has posted

140
00:07:15,480 --> 00:07:18,680
Speaker 9: a lot recently about their cash flow position why they

141
00:07:18,680 --> 00:07:22,000
Speaker 9: don't need cash. But what I understand from sources is

142
00:07:22,040 --> 00:07:24,840
Speaker 9: the reason they're targeting a arrays of more than thirty

143
00:07:24,840 --> 00:07:29,160
Speaker 9: billion dollars, significantly more than thirty billion dollars, is that,

144
00:07:29,320 --> 00:07:33,400
Speaker 9: alongside all of SpaceX's other long term goals with Starship

145
00:07:33,440 --> 00:07:37,080
Speaker 9: in particular, they are looking at the market potential of

146
00:07:37,200 --> 00:07:42,480
Speaker 9: space or constellation based data center satellites that act in

147
00:07:42,560 --> 00:07:46,120
Speaker 9: consolation and aggregate as data centers where SpaceX needs a

148
00:07:46,200 --> 00:07:50,160
Speaker 9: capital to buy the semiconductors by the Chips.

149
00:07:49,960 --> 00:07:53,000
Speaker 2: And bloomberg Ed Ludlow says SpaceX is pursuing a listing

150
00:07:53,120 --> 00:07:59,520
Speaker 2: as soon as mid to late twenty twenty six. Time

151
00:07:59,560 --> 00:08:01,560
Speaker 2: now some of the other stories making news in New

152
00:08:01,640 --> 00:08:03,280
Speaker 2: York and around the world, and for that we're joined

153
00:08:03,280 --> 00:08:05,720
Speaker 2: by Bloomberg's and Michael Barr Michael good Morning.

154
00:08:05,480 --> 00:08:10,040
Speaker 3: Good Morning, Karen. Accused United Healthcare CEO killer Luigi Mangione

155
00:08:10,560 --> 00:08:13,800
Speaker 3: was back in the Manhattan court Tuesday for pre trial

156
00:08:13,840 --> 00:08:18,200
Speaker 3: hearings on evidence taken when he was arrested in an Altoona, Pennsylvania,

157
00:08:18,240 --> 00:08:22,080
Speaker 3: fast food restaurant last year. The court saw body camera

158
00:08:22,200 --> 00:08:26,040
Speaker 3: video of his arrest from a year ago. Mangione's attorneys

159
00:08:26,120 --> 00:08:29,120
Speaker 3: claimed that police searched him illegally and are fighting to

160
00:08:29,120 --> 00:08:32,920
Speaker 3: get key evidence seized from him thrown out. New York

161
00:08:32,960 --> 00:08:36,679
Speaker 3: City Mayor elect Zoron Mamdani met with real estate leaders

162
00:08:36,760 --> 00:08:39,760
Speaker 3: and members of the Partnership for New York City to

163
00:08:39,960 --> 00:08:44,079
Speaker 3: tackle the city's issue of housing the homeless. Mamdannie says

164
00:08:44,120 --> 00:08:47,600
Speaker 3: they discussed how to remove roadblocks that make building new

165
00:08:47,720 --> 00:08:51,199
Speaker 3: units difficult and secure more federal aid for development.

166
00:08:51,520 --> 00:08:53,640
Speaker 5: The question, however, is whether we will be satisfied by

167
00:08:53,679 --> 00:08:56,520
Speaker 5: just shuttling those New Yorkers to another equally cold place

168
00:08:56,559 --> 00:08:58,400
Speaker 5: in our city, or whether we want to connect them

169
00:08:58,440 --> 00:08:58,840
Speaker 5: to housing.

170
00:08:58,960 --> 00:09:02,000
Speaker 3: One New York Subway Writers says many homeless end up

171
00:09:02,000 --> 00:09:05,960
Speaker 3: on trains. Get these people into proper facilities, not the subway.

172
00:09:05,960 --> 00:09:08,559
Speaker 3: It's dangerous to have actions.

173
00:09:08,600 --> 00:09:10,920
Speaker 5: They could fall in the tracks, tents on the subway

174
00:09:11,000 --> 00:09:12,000
Speaker 5: with traffic rush.

175
00:09:12,440 --> 00:09:13,240
Speaker 9: How is that going to work?

176
00:09:13,440 --> 00:09:17,160
Speaker 3: Mayor electmam Donne sparked some controversy after his comments last

177
00:09:17,200 --> 00:09:20,840
Speaker 3: week saying that he would stop the NYPD from cracking

178
00:09:20,880 --> 00:09:24,920
Speaker 3: down on homeless encampments. A suspect is in constaday after

179
00:09:24,920 --> 00:09:28,680
Speaker 3: his shooting at Kentucky State University in Frankfort. Police say

180
00:09:28,880 --> 00:09:32,360
Speaker 3: Jacob Lee Bard of Evansville, Indiana is not a student

181
00:09:32,720 --> 00:09:35,800
Speaker 3: if already say Barred allegedly shot two students near a

182
00:09:35,880 --> 00:09:39,400
Speaker 3: residence hall. Scott Tracy is the assistant chief of the

183
00:09:39,400 --> 00:09:40,640
Speaker 3: Frankfort Police Department.

184
00:09:41,000 --> 00:09:44,960
Speaker 10: They were quickly transported to a local hospital for treatment

185
00:09:45,320 --> 00:09:50,680
Speaker 10: by Frankfort Fire and EMS. Tragically, one has passed away

186
00:09:50,679 --> 00:09:54,439
Speaker 10: from injuries, the other remains in critical condition.

187
00:09:55,160 --> 00:09:58,400
Speaker 3: Assistant Chief Tracy did not release a motive, except to

188
00:09:58,440 --> 00:10:01,959
Speaker 3: say it stemmed from a personal dispute. Global News twenty

189
00:10:01,960 --> 00:10:04,080
Speaker 3: four hours a day and whenever you want it with

190
00:10:04,120 --> 00:10:07,520
Speaker 3: Bloomberg News Now. I'm Michael laarm and this is Bloomberg Karen.

191
00:10:08,559 --> 00:10:09,240
Speaker 5: Thanks Michael.

192
00:10:09,440 --> 00:10:12,240
Speaker 2: Time now for our Bloomberg Sports Update, and for that

193
00:10:12,320 --> 00:10:13,840
Speaker 2: we bring in John stash Hour.

194
00:10:14,080 --> 00:10:17,239
Speaker 11: Thanks Karen Orlando, and the next advance of the semifinals

195
00:10:17,240 --> 00:10:19,240
Speaker 11: of the NBA Cup. The Magic beat the Heat one

196
00:10:19,320 --> 00:10:21,679
Speaker 11: seventeen one oh eight. The Knicks one in Toronto won

197
00:10:21,760 --> 00:10:24,160
Speaker 11: seventeen one oh one. Jalen Brunton scare thirty five e

198
00:10:24,200 --> 00:10:27,120
Speaker 11: at twenty in the first quarter. Two big news items

199
00:10:27,120 --> 00:10:29,760
Speaker 11: for the baseball winner Meetium is Kyle Schwarber is staying

200
00:10:29,760 --> 00:10:31,640
Speaker 11: with the Phillies a five year deal for one hundred

201
00:10:31,679 --> 00:10:34,000
Speaker 11: and fifty million. It hit fifty six on ONNS last season,

202
00:10:34,320 --> 00:10:37,400
Speaker 11: and closer Edwin Diaz leaving the Mets to sign with

203
00:10:37,440 --> 00:10:40,360
Speaker 11: the world champion Dodgers. Forty four year old Philip Rivers

204
00:10:40,520 --> 00:10:42,959
Speaker 11: coming out of retirement to sign with the Colts. That's

205
00:10:43,000 --> 00:10:44,160
Speaker 11: to Bloomberg Sports Update.

206
00:10:45,559 --> 00:10:48,439
Speaker 2: Stay with us more from Bloomberg day Break coming up

207
00:10:48,640 --> 00:10:49,360
Speaker 2: after this.

208
00:10:53,480 --> 00:10:57,480
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

209
00:10:57,800 --> 00:11:00,520
Speaker 1: and around the world on Bloomberg dot Com, home and

210
00:11:00,559 --> 00:11:03,760
Speaker 1: the Bloomberg Business app. This is Bloomberg day Break.

211
00:11:03,880 --> 00:11:06,400
Speaker 4: Good morning, I'm Nathan Hager on the morning before the

212
00:11:06,440 --> 00:11:09,720
Speaker 4: final Federal reserve rate decision of twenty twenty five. Last

213
00:11:09,760 --> 00:11:12,440
Speaker 4: time we heard from FED Chair J Powell at the

214
00:11:12,480 --> 00:11:16,800
Speaker 4: October meeting, he was already talking about December. A further

215
00:11:16,840 --> 00:11:19,840
Speaker 4: reduction in the policy rate at the December meeting is

216
00:11:19,880 --> 00:11:21,160
Speaker 4: not a foregone conclusion.

217
00:11:22,000 --> 00:11:22,600
Speaker 8: Far from it.

218
00:11:22,840 --> 00:11:25,520
Speaker 4: Fast forward to today, markets do seem to think a

219
00:11:25,559 --> 00:11:29,680
Speaker 4: cut is a foregone conclusion. The question now is what next?

220
00:11:30,000 --> 00:11:33,679
Speaker 4: Joining us for more on this Bloomberg Markets reporter Valerie Titel,

221
00:11:33,679 --> 00:11:36,120
Speaker 4: And that really is the question, isn't at Valerie? So

222
00:11:36,400 --> 00:11:39,160
Speaker 4: many diverging views on what the Fed should be doing

223
00:11:39,200 --> 00:11:40,280
Speaker 4: into twenty twenty six.

224
00:11:40,320 --> 00:11:44,120
Speaker 12: Good morning, Yeah, Good morning, Nathan, And just how will

225
00:11:44,200 --> 00:11:48,559
Speaker 12: Powell do. How will he succeed on managing a consensus

226
00:11:48,679 --> 00:11:52,640
Speaker 12: along this fractured committee. It is an unusually divided Fed

227
00:11:52,679 --> 00:11:55,360
Speaker 12: that we have at the moment. We have Stephen Myron

228
00:11:55,400 --> 00:11:58,320
Speaker 12: on one side clamoring for a faster pace of rate

229
00:11:58,400 --> 00:12:02,080
Speaker 12: cuts likely to dissent a larger jumbo fifty basis point

230
00:12:02,160 --> 00:12:04,760
Speaker 12: rate reduction today, and then on the more hawkish side,

231
00:12:04,800 --> 00:12:08,640
Speaker 12: we've had many regional FED presidents five in total who

232
00:12:08,720 --> 00:12:13,440
Speaker 12: have voiced some unnies about eight cutting rates here in December,

233
00:12:13,480 --> 00:12:16,520
Speaker 12: so we could be up for many of descents if

234
00:12:16,520 --> 00:12:19,040
Speaker 12: we get more than four, Nathan. That's something we've really

235
00:12:19,080 --> 00:12:22,120
Speaker 12: not seen in modern FED history. But Powell has done

236
00:12:22,400 --> 00:12:24,920
Speaker 12: a very good job as his tenure of FED chair

237
00:12:25,280 --> 00:12:28,679
Speaker 12: at managing a consensus, but today he'll really be put

238
00:12:28,720 --> 00:12:31,400
Speaker 12: to the test on that. To add to all of this,

239
00:12:31,520 --> 00:12:34,160
Speaker 12: there is still the division that has been exacerbated by

240
00:12:34,160 --> 00:12:37,720
Speaker 12: the lack of fresh economic data. The market and the

241
00:12:37,760 --> 00:12:41,960
Speaker 12: FED is still waiting for November CPI November non farm payrolls.

242
00:12:42,000 --> 00:12:44,079
Speaker 12: Really the last big set of data that they have

243
00:12:44,600 --> 00:12:47,319
Speaker 12: is all the way back in September before the government

244
00:12:47,320 --> 00:12:50,880
Speaker 12: shut down. So just how will he manage a consensus

245
00:12:50,920 --> 00:12:53,240
Speaker 12: around the fact that we are still in a data

246
00:12:53,280 --> 00:12:55,920
Speaker 12: fog that is unlikely to clear for another two weeks.

247
00:12:56,160 --> 00:12:58,840
Speaker 4: So then what kind of message can we expect from

248
00:12:58,960 --> 00:13:02,000
Speaker 4: Chairman Powell when it signaling what the path for policy

249
00:13:02,000 --> 00:13:04,839
Speaker 4: could be into next year given that kind of fog.

250
00:13:05,400 --> 00:13:07,480
Speaker 12: So I think the market is expecting him to sound

251
00:13:07,760 --> 00:13:10,600
Speaker 12: a little bit hawkish on next year. And the way

252
00:13:10,640 --> 00:13:12,920
Speaker 12: he could possibly do that in a very subtle way,

253
00:13:13,040 --> 00:13:16,800
Speaker 12: Nathan is by saying that, look, the last two FED

254
00:13:16,840 --> 00:13:20,600
Speaker 12: cuts were a risk management exercise, and now that risk

255
00:13:20,679 --> 00:13:23,640
Speaker 12: management exercise is coming to an end and we should

256
00:13:23,679 --> 00:13:25,760
Speaker 12: slow down our pace of rate cuts. He very much

257
00:13:25,800 --> 00:13:28,640
Speaker 12: framed the last two cuts in that way. It was

258
00:13:28,679 --> 00:13:32,720
Speaker 12: a risk management exercise to protect the labor market aside

259
00:13:32,840 --> 00:13:36,440
Speaker 12: from inflation being above target at that time. Perhaps he

260
00:13:36,480 --> 00:13:38,880
Speaker 12: will say that, you know, the risks to labor market

261
00:13:38,880 --> 00:13:41,160
Speaker 12: and the risk to inflation are more balanced at this decision,

262
00:13:41,440 --> 00:13:43,200
Speaker 12: and we need to slow down and wait for further

263
00:13:43,280 --> 00:13:45,400
Speaker 12: clarity on the data. That could be kind of a

264
00:13:45,480 --> 00:13:49,160
Speaker 12: hawkish hint to the market. But note, Nathan, the market

265
00:13:49,200 --> 00:13:52,000
Speaker 12: is already really they've already really priced in a more

266
00:13:52,000 --> 00:13:55,800
Speaker 12: hawkish FED today. If we look at how the money

267
00:13:55,840 --> 00:13:59,400
Speaker 12: markets are pricing in rate cuts for twenty twenty six.

268
00:14:00,120 --> 00:14:02,120
Speaker 12: Heard it back by quite a lot in the month

269
00:14:02,120 --> 00:14:05,520
Speaker 12: of December. We're only pricing in fifty basis points of

270
00:14:05,600 --> 00:14:08,720
Speaker 12: rate reductions in twenty twenty six. At the beginning of

271
00:14:08,760 --> 00:14:11,800
Speaker 12: December that number was closer to eighty basis points. We

272
00:14:11,840 --> 00:14:14,480
Speaker 12: have seen a decent pairback in what traders thinks the

273
00:14:14,520 --> 00:14:15,439
Speaker 12: Fed will do next year.

274
00:14:16,760 --> 00:14:19,720
Speaker 2: This is Bloomberg day Break, your morning podcast on the

275
00:14:19,800 --> 00:14:23,320
Speaker 2: stories making news from Wall Street to Washington and beyond.

276
00:14:23,560 --> 00:14:25,960
Speaker 4: Look for us on your podcast feed by six am

277
00:14:26,000 --> 00:14:29,400
Speaker 4: Eastern each morning, on Apple, Spotify, or anywhere else you listen.

278
00:14:29,600 --> 00:14:32,440
Speaker 2: You can also listen live each morning starting at five

279
00:14:32,480 --> 00:14:35,200
Speaker 2: am Wall Street time on Bloomberg eleven three to zero

280
00:14:35,200 --> 00:14:38,120
Speaker 2: in New York, Bloomberg in ninety nine to one in Washington,

281
00:14:38,160 --> 00:14:42,120
Speaker 2: Bloomberg ninety two nine in Boston, and nationwide on serious

282
00:14:42,320 --> 00:14:43,880
Speaker 2: XM Channel one twenty one.

283
00:14:44,280 --> 00:14:44,600
Speaker 7: Plus.

284
00:14:44,640 --> 00:14:47,200
Speaker 4: Listen coast to coast on the Bloomberg Business app now

285
00:14:47,240 --> 00:14:49,880
Speaker 4: with Apple CarPlay and Android auto interfaces.

286
00:14:50,080 --> 00:14:52,800
Speaker 2: And don't forget to subscribe to Bloomberg News Now.

287
00:14:52,960 --> 00:14:53,960
Speaker 7: It's the latest.

288
00:14:53,600 --> 00:14:56,400
Speaker 2: News whenever you want it in five minutes or less.

289
00:14:56,640 --> 00:14:59,680
Speaker 2: Search Bloomberg News Now on your favorite podcast platform to

290
00:14:59,680 --> 00:15:03,280
Speaker 2: stay in Performed all day long. I'm Karen Moscow.

291
00:15:03,040 --> 00:15:05,600
Speaker 4: And I'm Nathan Hager. Join us again tomorrow morning for

292
00:15:05,640 --> 00:15:07,560
Speaker 4: all the news you need to start your day, right

293
00:15:07,600 --> 00:15:08,640
Speaker 4: here on Bloomberg.

294
00:15:08,680 --> 00:15:09,040
Speaker 3: Dabraey