WEBVTT - Fed's Final Rate Decision of Year; Honda & Nissan Merger?  

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager.

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<v Speaker 1>And I'm Karen Moscow. Here are the stories we're following today.

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<v Speaker 2>Karen, we begin with the Fed's final policy decision of

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<v Speaker 2>the year. Economists expect the Central Bank to lower borrowing

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<v Speaker 2>costs for a third straight meeting, while signaling fewer interst

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<v Speaker 2>rate cuts next year. We get a preview from Bloomberg's

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<v Speaker 2>Michael McKee.

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<v Speaker 3>Fed officials are in a way between a rock and

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<v Speaker 3>a hard place. The economy is slowing, but inflation has

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<v Speaker 3>gotten stuck above their two percent target. Interest rates for mortgages, cars,

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<v Speaker 3>and credit cards remain tight, but financial conditions are easy

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<v Speaker 3>and stock markets are setting all time highs. Before their

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<v Speaker 3>blackout period, most central bankers were signaling they would support

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<v Speaker 3>a rate cut today, although several said they do see

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<v Speaker 3>reasons to pause. That puts the emphasis on their new

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<v Speaker 3>economic forecasts and dot plot. When do they cut again

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<v Speaker 3>and how many times? In twenty twenty five? Michael McKee

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<v Speaker 3>Bloomberg Radio.

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<v Speaker 2>All right, Mike, thanks and stick with Bloomberg for full

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<v Speaker 2>FED coverage with a special edition of Bloomberg's Surveillance the Fed.

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<v Speaker 2>The sides with Tom Keene, Jonathan Farrell, and Lisa A. Bromwitz.

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<v Speaker 2>That's today one thirty pm, Ball Street Time on Bloomberg Radio,

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<v Speaker 2>Bloomberg Television, and the Bloomberg Podcasts page on YouTube.

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<v Speaker 1>Well Nathan, Bank of America CEO Brian moynihan expects the

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<v Speaker 1>Fed to cut rates. He spoke about the future of

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<v Speaker 1>monetary policy with Bloomberg's David Weston.

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<v Speaker 4>If the economist view is you have to have a

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<v Speaker 4>real rate structure across the curve of seventy five basis

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<v Speaker 4>points one hundred basis points. If you're four seventy five

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<v Speaker 4>four fifty now in the flation rates three point three,

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<v Speaker 4>that's bigger. So you got to start to bring it

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<v Speaker 4>in normalized. We've got to get to know positive soap

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<v Speaker 4>and curve a curve that has real rates across it.

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<v Speaker 4>An invert a curve means something anticipatory is going to.

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<v Speaker 5>Go the other way.

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<v Speaker 4>All that's got to happen. So I think they need

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<v Speaker 4>to bring it down a little bit. They just have

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<v Speaker 4>to be more careful because the economy is stronger than

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<v Speaker 4>we thought three months ago, six months ago, but it

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<v Speaker 4>still has potential weaknesses.

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<v Speaker 1>Bank of America O Brian Monahan sees the FED lowering

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<v Speaker 1>interest rates to the three point seventy five percent level,

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<v Speaker 1>or three more cuts from where they are currently. Get

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<v Speaker 1>the full conversation on the Bloomberg Talks podcast feed on Apple, Spotify,

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<v Speaker 1>or anywhere else you download podcasts.

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<v Speaker 6>Well, Karen.

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<v Speaker 2>In the UK, inflation rows to an eighth month high

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<v Speaker 2>in November. The consumer prices index increase two point six percent,

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<v Speaker 2>drifting further above the Bank of England's two percent target.

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<v Speaker 2>Economists say the latest report effectively ends any hope of

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<v Speaker 2>an interest rate cut at the boees final meeting of

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<v Speaker 2>the year.

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<v Speaker 1>On the stock story of the Day, Nathan comes out

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<v Speaker 1>of the auto industry, shares of Nissans soaring on merger talks,

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<v Speaker 1>We get the very latest at Bloomberg's Lisa Matteo Lisa,

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<v Speaker 1>good morning.

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<v Speaker 7>Good morning, Karen. You have that merger reportedly between Nissan

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<v Speaker 7>and Honda. Now you have Nissan shares up about twenty

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<v Speaker 7>three percent in Japan, Honda down three percent. Sources telling

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<v Speaker 7>Bloomberg the deal could be expanded to include Mitsubishi Motors,

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<v Speaker 7>which already has capital ties with Nissan, and what's more,

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<v Speaker 7>sources a Fox con the Taiwan based per user for

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<v Speaker 7>iPhones approached Nissan about taking a stake. Now, the nie

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<v Speaker 7>Ke is reporting that that move while it helped accelerate

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<v Speaker 7>merger efforts out of fears that the Japanese company could

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<v Speaker 7>be vulnerable to take over by the Taiwanese firm. But

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<v Speaker 7>here's the thing. If that deal were to go through,

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<v Speaker 7>it would create the world's third largest automaker, putting the

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<v Speaker 7>pressure on rival Toyota, as well as provide Honda and

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<v Speaker 7>Nissan with more resources to compete with larger peers, especially

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<v Speaker 7>ev rivals like Tesla and Chinese automakers. And something else

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<v Speaker 7>to keep in mind. French automaker Renault, well, it could

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<v Speaker 7>also have a say in the deal, considering it owns

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<v Speaker 7>about thirty six percent of Nissan. Lisa Matteo, Bloomberg Radio.

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<v Speaker 2>All right, Lisa, thank you now to the latest development

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<v Speaker 2>in the killing of United Healthcare CEO Brian Thompson. The

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<v Speaker 2>suspect Luigi Mangioni is now facing multiple murder charges in

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<v Speaker 2>New York. Manhattan District Attorney Alvin Bragg laid out the counts.

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<v Speaker 8>They include one count of murder in the first degree

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<v Speaker 8>as a killing and furthers of terrorism two counts of

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<v Speaker 8>during the second degree. One charge of the killing was

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<v Speaker 8>done as an act of terrorism, and the second pertain

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<v Speaker 8>to the fact that the killing was intentional.

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<v Speaker 2>Manhattan DA Alvin Bragg was joined at the news conference

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<v Speaker 2>by New York City Police Commissioner Jessica Tish. She had

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<v Speaker 2>a message for those who have celebrated the crime.

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<v Speaker 9>There is no heroism in what Mangioni did. This was

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<v Speaker 9>a senseless act of violence. It was a cold and

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<v Speaker 9>calculated crime that stole a life and put New Yorkers

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<v Speaker 9>at risk.

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<v Speaker 2>Missioner Jessica Tish and Alvin Bragg spoke ahead of two

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<v Speaker 2>scheduled hearings tomorrow from Mangioni in Blair County, Pennsylvania. Bragg

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<v Speaker 2>says Mangoni could give up his fight against extradition that

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<v Speaker 2>could bring him back to New York to face these

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<v Speaker 2>new charges by the end of the week.

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<v Speaker 1>Now, Nathan, let's get the latest on efforts to avoid

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<v Speaker 1>a government shutdown. Lawmakers on Capitol Hill have released a

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<v Speaker 1>stop gap spending measure, but it could be a preview of.

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<v Speaker 3>Fights to come.

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<v Speaker 1>We get more with the Bloombergy's Gina Cervetti.

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<v Speaker 10>The bill would extend current funding into mid March. It

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<v Speaker 10>includes more than one hundred billion dollars in emergency relief

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<v Speaker 10>for hurricane victims, the Maui wildfires, and the bridge collapse

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<v Speaker 10>in Baltimore. But the fight to get those measures attached

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<v Speaker 10>could point to even more challenges for President elect Trump's

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<v Speaker 10>early priorities. Republicans will have just a one vote majority

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<v Speaker 10>in the House through at least April. Since Trump picked

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<v Speaker 10>three GOP lawmakers to serve in his administration, that'll be

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<v Speaker 10>right in the middle of a push to pass a

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<v Speaker 10>new budget along party lines, not to mention bills on

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<v Speaker 10>border security, taxes and other budget issues. Gina Cervetti, Bloomberg Radio.

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<v Speaker 2>Ni Gina, thank you and President Like Donald Trump has

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<v Speaker 2>chosen football legend Herschel Walker to be US Ambassador to

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<v Speaker 2>the Bahamas. Trump made the announcement in a post on

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<v Speaker 2>Truth Social, his social media website. Walker most recently had

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<v Speaker 2>an unsuccessful run for the US Senate in Georgia. To

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<v Speaker 2>hold the ambassador position, he'll need his nomination approved next

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<v Speaker 2>year by the Republican led Senate. Trump also announced he's

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<v Speaker 2>nominating art collector Nicole McGraw to be US Ambassador to Croatia.

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<v Speaker 1>Time now for a look at some of the other

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<v Speaker 1>stories making news in New York and around the world,

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<v Speaker 1>and for that we're joined by Bloomberg's John Tucker. John

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<v Speaker 1>Good Morning, Good Morning.

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<v Speaker 5>Karen, A Defense Department spokesman says none of the mysterious

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<v Speaker 5>drones reported over the skies of the US Northeast are

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<v Speaker 5>being flown by the Pentagon or are part of a

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<v Speaker 5>secret government test. President Joe Biden also weighed in, saying

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<v Speaker 5>there's nothing nefarious. Apparently there's a lot of drones authorized

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<v Speaker 5>up there.

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<v Speaker 6>I think you weren't started and they all guys, everybody's

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<v Speaker 6>wanting to getting a deal, but all the lovers were following.

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<v Speaker 5>Quote at the Pentagon, Major General pat Ryder told reporters

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<v Speaker 5>top Department officials take seriously any cases of drones flying

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<v Speaker 5>near or over US military, So it's that we added

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<v Speaker 5>this was not a new concern. Boeing says it's resumed

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<v Speaker 5>production across its range of aircraft programs at factories in

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<v Speaker 5>the Pacific Northwest after they were shut down for weeks

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<v Speaker 5>because of that lengthy worker strike. Following the resumption of

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<v Speaker 5>output of its popular seven thirty seven model last week,

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<v Speaker 5>Bois Navigan taking up building the largest seven sixty seven

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<v Speaker 5>and Triple seven aircraft again. Twana Looney, grandmother in Alabama,

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<v Speaker 5>is on the road to recovery after receiving a genetically

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<v Speaker 5>modified pig kidney at NYU Langone Health.

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<v Speaker 11>It's just like getting a second chance in life.

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<v Speaker 5>Doctors hope this will be the first long term success

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<v Speaker 5>case that could open the door for similar procedures for

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<v Speaker 5>tens of thousands of Americans waiting on the donor list,

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<v Speaker 5>and more delays for the SpaceX crew still stuck on

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<v Speaker 5>the International Space Station months after their mission was set

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<v Speaker 5>to end. A new SpaceX rocket was set to launch

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<v Speaker 5>this coming February to finally bring them home, but now

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<v Speaker 5>NASA is pushing back that mission until at least late March,

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<v Speaker 5>citing the need for more preparation. Time Global News twenty

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<v Speaker 5>four hours date whenever you wanted with Bloomberg News. Now,

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<v Speaker 5>I'm John Tucker and this is Bloomberg Karen.

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<v Speaker 1>All right, John, thank you some time now for the

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<v Speaker 1>Bloomberg Sports Update, brought to you by Tri State. Howdy.

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<v Speaker 1>Here's John Stashauer. John, Good morning, Good morning care.

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<v Speaker 6>Juan Soto has never won an MVP award. The guy

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<v Speaker 6>the Yankees just brought in to try and replace Soto

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<v Speaker 6>as a left handed hitting outfielder has Cody Bellinger. As

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<v Speaker 6>a twenty three year old in twenty nineteen with the Dodgers,

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<v Speaker 6>he hit three hundred and forty seven home runs, but

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<v Speaker 6>Bellinger has not been anywhere near that good since then,

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<v Speaker 6>and he's nowhere near the player Soto is. But the

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<v Speaker 6>Yanks will hope he can regain that MVP form acquired

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<v Speaker 6>from the Cubs and a Cody for Cody Trageicago gets

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<v Speaker 6>pitcher Cody Pote. Bellinger's father, Clay, was a Yankee on

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<v Speaker 6>two World Championship team. Soto not the only one who's

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<v Speaker 6>gone with the Yankees to the Mets. Clay Holmes was

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<v Speaker 6>a Yankee reliever. He's now a Mets starter.

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<v Speaker 2>I want to look back in my career and say, man,

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<v Speaker 2>you know what what had come from that?

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<v Speaker 5>And I think it was something that you know.

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<v Speaker 1>Still a deep doubt I had, you know, a passion

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<v Speaker 1>board and excited me and you know, very thankful for it.

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<v Speaker 11>Yeah, the soccer Davis come, he's sit here with the mess.

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<v Speaker 11>You stay here in New York and.

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<v Speaker 5>Be with the mess.

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<v Speaker 6>Holmes met the media yesterday, as did Devin Williams, who

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<v Speaker 6>the Yanks acquired to replace Holmes. What has happened to

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<v Speaker 6>the Rangers a month ago? A record of twelve and

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<v Speaker 6>four since then three and eleven shut out by Lowling

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<v Speaker 6>Nashville two nothing only the Predators ninth win of the season.

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<v Speaker 6>Islanders also blank four nothing at Carolina. The Devils won

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<v Speaker 6>four one at Saint Louis. In Vegas, Milwaukee won the

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<v Speaker 6>NBA Cup held Oklahoma City only thirty one second half

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<v Speaker 6>points and won ninety seven to eighty one. Giannis unto

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<v Speaker 6>the Comfo twenty six points in a triple double. Also

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<v Speaker 6>in Vegas, with some made for TV Golf, the PGA

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<v Speaker 6>team of Rory McElroy and Scottie Scheffler easily defeated the

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<v Speaker 6>live duo of Brooks Koepka and Bryson Deshambell. The Atlanta

0:09:45.679 --> 0:09:47.719
<v Speaker 6>Falcons only a game at a first place, but they're

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<v Speaker 6>making a quarterback change starting with Sunday's game against the Giants.

0:09:51.280 --> 0:09:54.520
<v Speaker 6>They'll start rookie Michael Pennix Junior and bench the veteran

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<v Speaker 6>Kirk Cousins, who has been struggling. Mighty lead of late

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<v Speaker 6>Johns Stashewer.

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<v Speaker 1>Bloomberg Sports carry Me All right, John, Thank you, and

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<v Speaker 1>Bloomberg Daybreak is brought to you by Audi. Visit your

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<v Speaker 2>This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. On

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<v Speaker 2>this FED day, the final rate decision of twenty twenty

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<v Speaker 2>four is nearly upon US investors looking for more clues

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<v Speaker 2>on the path for next year. Meanwhile, there may be

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<v Speaker 2>a path to a deal for two Japanese automakers to

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<v Speaker 2>take on the biggest carmaker in the world. Lots to

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<v Speaker 2>discuss this morning, so let's get right to it with

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<v Speaker 2>Bloomberg Radio and television news anchor Kritti Gupta Critty, Good morning. So,

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<v Speaker 2>how big a surprise would it be if the FED

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<v Speaker 2>decided they're going to pause today?

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<v Speaker 10>Good morning, Good morning, Nathan. It would be a surprise,

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<v Speaker 10>but perhaps not a shock.

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<v Speaker 11>And I think that's a crucial difference here, simply because

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<v Speaker 11>the market is primed and priced for what could be

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<v Speaker 11>the last rate cut not only twenty twenty four, but

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<v Speaker 11>that we could see for some time out of the

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<v Speaker 11>Federal Reserve. But if they were to hold earlier, it

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<v Speaker 11>would signal that there is perhaps extreme confidence in this

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<v Speaker 11>economy's willingness to digest and ability to digest any sort

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<v Speaker 11>of pitfalls that we may see into next year. And

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<v Speaker 11>I think this is a really crucial one because if

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<v Speaker 11>you do see a cut, there's questions of what data

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<v Speaker 11>justifies that cut. Now, Federal Reserve officials will likely say,

0:11:26.920 --> 0:11:28.880
<v Speaker 11>and have said on the wire and in the last

0:11:28.920 --> 0:11:31.120
<v Speaker 11>couple of weeks and months, that any sort of cut

0:11:31.280 --> 0:11:34.480
<v Speaker 11>is simply taking policy from a super restrictive level to

0:11:34.920 --> 0:11:37.920
<v Speaker 11>a slightly less but still restrictive level in terms of

0:11:37.960 --> 0:11:41.200
<v Speaker 11>being able to tackle that inflation uptick. But others may

0:11:41.360 --> 0:11:43.920
<v Speaker 11>question that and say, is this rate cut, if we

0:11:44.000 --> 0:11:46.840
<v Speaker 11>do indeed get one, something similar to a rate cut

0:11:46.920 --> 0:11:49.360
<v Speaker 11>that we got in the likes of March of twenty

0:11:49.480 --> 0:11:50.160
<v Speaker 11>nineteen when J.

0:11:50.320 --> 0:11:52.320
<v Speaker 10>Powell had that insurance.

0:11:52.000 --> 0:11:55.320
<v Speaker 11>Rate cut, even though the economy was doing quite well

0:11:55.360 --> 0:11:58.520
<v Speaker 11>at the time, the unemployment rate was quite low, the

0:11:58.760 --> 0:12:00.679
<v Speaker 11>peril's numbers were coming in quite strong, but it was

0:12:00.720 --> 0:12:03.640
<v Speaker 11>an insurance rate cut in response to what could have

0:12:03.760 --> 0:12:07.160
<v Speaker 11>been a more extreme trade war between the United States

0:12:07.200 --> 0:12:09.599
<v Speaker 11>and China. And in retrospect, say in a couple of

0:12:09.640 --> 0:12:12.240
<v Speaker 11>months time, there's a very real likelihood that we asked

0:12:12.240 --> 0:12:14.960
<v Speaker 11>the same questions about what drove today's rate cut if

0:12:15.000 --> 0:12:16.880
<v Speaker 11>we do indeed get one and.

0:12:16.920 --> 0:12:19.160
<v Speaker 2>As if a FED day weren't enough. Now, this news

0:12:19.240 --> 0:12:23.199
<v Speaker 2>that Nissan and Honda are apparently in merger talks, this

0:12:23.400 --> 0:12:26.839
<v Speaker 2>is really a fight for survival for Nissan Critty it is.

0:12:27.160 --> 0:12:30.520
<v Speaker 11>And look, there's a third and fourth player worth mentioning here,

0:12:30.559 --> 0:12:33.400
<v Speaker 11>which is Renault has a more than forty three percent

0:12:33.480 --> 0:12:36.079
<v Speaker 11>stake in Nissan at the moment. It's been trying to

0:12:36.200 --> 0:12:39.079
<v Speaker 11>reduce at stake to about fifteen percent and do it

0:12:39.200 --> 0:12:41.040
<v Speaker 11>in a way that they can get a pretty decent

0:12:41.200 --> 0:12:43.680
<v Speaker 11>kind of bang for their buck. If they do see

0:12:43.720 --> 0:12:47.920
<v Speaker 11>this kind of consolidation between Nissan and Honda, it could

0:12:47.960 --> 0:12:50.760
<v Speaker 11>be a pretty big boost for the likes of Renault.

0:12:50.760 --> 0:12:53.199
<v Speaker 11>But then there's another player here worth paying attention to,

0:12:53.559 --> 0:12:56.559
<v Speaker 11>and that's Fox Con. What we know is kind of

0:12:56.559 --> 0:12:59.040
<v Speaker 11>the assembler of smartphones. It's in the Apple supply chain.

0:12:59.320 --> 0:13:01.160
<v Speaker 11>They've been trying to get a steak in the EV

0:13:01.320 --> 0:13:04.319
<v Speaker 11>maker for some time and struggling to get that steak.

0:13:04.640 --> 0:13:06.640
<v Speaker 11>If they do indeed get it, though, Nathan, it brings

0:13:06.720 --> 0:13:09.760
<v Speaker 11>up a lot of questions about kind of cross border consolidation,

0:13:09.920 --> 0:13:14.160
<v Speaker 11>cross border steaks between a Taiwanese company into what could

0:13:14.240 --> 0:13:16.360
<v Speaker 11>be a Japanese carmcon giants.

0:13:16.720 --> 0:13:20.120
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