1 00:00:02,560 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. 2 00:00:10,000 --> 00:00:10,560 Speaker 2: Good morning. 3 00:00:10,600 --> 00:00:13,400 Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the 4 00:00:13,440 --> 00:00:14,920 Speaker 3: stories we're following today. 5 00:00:15,120 --> 00:00:17,200 Speaker 4: Karen, we begin with the latest on the next chairman 6 00:00:17,280 --> 00:00:20,520 Speaker 4: of the Federal Reserve. President Trump has not announced his 7 00:00:20,720 --> 00:00:24,520 Speaker 4: choice yet, but a top institutional investor says even if 8 00:00:24,560 --> 00:00:27,800 Speaker 4: front runner Kevin Hassett is appointed, he might not be 9 00:00:27,840 --> 00:00:30,800 Speaker 4: able to deliver the rapid pace of interest rate cuts 10 00:00:30,840 --> 00:00:34,320 Speaker 4: that the president would like. Gregory Peters, co Chief investment 11 00:00:34,360 --> 00:00:37,360 Speaker 4: officer at p JIM Fixed and Come told Bloomberg has 12 00:00:37,400 --> 00:00:39,880 Speaker 4: It wouldn't have the power to deliver cuts on his own. 13 00:00:40,200 --> 00:00:45,320 Speaker 5: Does he have the credibility within the committee to drive consensus. 14 00:00:45,840 --> 00:00:47,839 Speaker 5: I don't think he has that credibility. I think that's 15 00:00:47,880 --> 00:00:50,839 Speaker 5: what the bond mark is telling you. But it's important 16 00:00:50,840 --> 00:00:54,080 Speaker 5: to remember that it's a full committee and you have 17 00:00:54,160 --> 00:00:58,080 Speaker 5: to have the confidence of the committee to drive consensus, 18 00:00:58,080 --> 00:00:59,000 Speaker 5: and I don't know if he. 19 00:00:59,000 --> 00:01:00,400 Speaker 6: Has it Jims. 20 00:01:00,440 --> 00:01:03,400 Speaker 4: Greg Peters also says if Hasse gets the job, questions 21 00:01:03,400 --> 00:01:06,640 Speaker 4: about the Fed's independence will remain a major concern. 22 00:01:07,319 --> 00:01:11,039 Speaker 3: Well Nathan Ihasset does become the next FED chair, Bloomberg 23 00:01:11,080 --> 00:01:14,039 Speaker 3: News has learned President Trump's aids and allies are discussing 24 00:01:14,040 --> 00:01:18,000 Speaker 3: the possibility of making Treasury Secretary Scot Bessant the top 25 00:01:18,120 --> 00:01:20,920 Speaker 3: White House economic advisor. That would be in addition to 26 00:01:21,000 --> 00:01:23,640 Speaker 3: his current job. If Bessant is also named to the 27 00:01:23,720 --> 00:01:26,640 Speaker 3: National Economic Council, he would become the chief arbiter of 28 00:01:26,680 --> 00:01:31,040 Speaker 3: the administration's economic portfolio, spanning both the Treasury Department and 29 00:01:31,200 --> 00:01:34,640 Speaker 3: White House. It would also give Bessend a West Wing office, 30 00:01:34,800 --> 00:01:37,720 Speaker 3: granting him even more physical proximity to the President. 31 00:01:38,080 --> 00:01:39,840 Speaker 4: Now, Karen, let's get to the latest on efforts to 32 00:01:39,920 --> 00:01:42,560 Speaker 4: end the war in Ukraine. President Donald Trump is reacting 33 00:01:42,600 --> 00:01:45,240 Speaker 4: to the latest talks in Moscow with US on voice. 34 00:01:45,280 --> 00:01:47,280 Speaker 4: He's describing them as reasonably good. 35 00:01:47,600 --> 00:01:50,520 Speaker 7: President Putin had a very good meeting yesterday with Jared 36 00:01:50,560 --> 00:01:52,240 Speaker 7: Kushner and with Steve Whitcoff. 37 00:01:53,120 --> 00:01:54,080 Speaker 1: What comes out of that. 38 00:01:54,080 --> 00:01:56,480 Speaker 7: Meeting, I can't tell you, because it does take two 39 00:01:56,520 --> 00:01:56,960 Speaker 7: to tanger. 40 00:01:57,840 --> 00:02:00,320 Speaker 4: President Trump spoke yesterday from the Oval Office after the 41 00:02:00,400 --> 00:02:03,640 Speaker 4: Kremlin described the talks as very useful, but without breakthroughs 42 00:02:03,640 --> 00:02:06,440 Speaker 4: on some of its demands around territory and Ukraine's bid 43 00:02:06,480 --> 00:02:09,640 Speaker 4: to join NATO. We get more from Bloomberg's Greg Sullivan. 44 00:02:09,440 --> 00:02:12,000 Speaker 8: He did seem to moderate his tone a bit more 45 00:02:12,320 --> 00:02:14,480 Speaker 8: and express a little less confidence that a deal is 46 00:02:14,520 --> 00:02:17,120 Speaker 8: at hand. That's hardly surprising, given that there have been 47 00:02:17,160 --> 00:02:21,080 Speaker 8: several rounds of talks recently, all of which have ended inconclusively. Moscow, 48 00:02:21,120 --> 00:02:23,840 Speaker 8: throughout this process has stuck to hardline demands that Kiev 49 00:02:24,000 --> 00:02:26,640 Speaker 8: will not accept, and has shown little sign of backing 50 00:02:26,639 --> 00:02:29,480 Speaker 8: away from those demands, begging the question, how do the 51 00:02:29,520 --> 00:02:31,560 Speaker 8: two sides reach a consensus? 52 00:02:31,639 --> 00:02:34,680 Speaker 4: Bloomberg's Greg Sullivan reports, us EN voice Steve whit Coffin 53 00:02:34,720 --> 00:02:38,160 Speaker 4: Jared Kushner will continue the discussions today with a Ukrainian 54 00:02:38,200 --> 00:02:39,560 Speaker 4: negotiator in Miami. 55 00:02:40,120 --> 00:02:43,520 Speaker 3: Well Back in Washington, Nathan Defense Secretary Pete Hegseth is 56 00:02:43,560 --> 00:02:47,240 Speaker 3: facing new pressure of our controversy from earlier this year. 57 00:02:47,560 --> 00:02:52,440 Speaker 3: Depentagon's Acting Inspector General has concluded that Hegseth risked endangering 58 00:02:52,520 --> 00:02:55,920 Speaker 3: American troops when he shared attack plans against Hoo. They 59 00:02:56,080 --> 00:02:59,920 Speaker 3: rebels on this signal messaging app The watchdog's're pored was 60 00:03:00,040 --> 00:03:03,240 Speaker 3: delivered to the Senate Armed Services Committee yesterday. Jack Reid 61 00:03:03,600 --> 00:03:05,040 Speaker 3: is the committee's top democrat. 62 00:03:05,440 --> 00:03:09,040 Speaker 9: I think the most compelling thing I've heard is a 63 00:03:09,080 --> 00:03:13,320 Speaker 9: conclusion that he jeopardized the lives of pilots that were 64 00:03:13,320 --> 00:03:17,280 Speaker 9: going into action by releasing critical data. How all of 65 00:03:17,320 --> 00:03:21,000 Speaker 9: this adds up to very very poor judgment. 66 00:03:21,360 --> 00:03:25,720 Speaker 3: Democratic Senator Jack Reid Haigseth says he only texted updates 67 00:03:25,720 --> 00:03:28,640 Speaker 3: that did not put anyone at risk, and he was 68 00:03:28,760 --> 00:03:32,920 Speaker 3: authorized to declassify any material in the chat. The IG's 69 00:03:32,960 --> 00:03:36,200 Speaker 3: report disagrees with that claim, but Dependinggon spokesman says the 70 00:03:36,280 --> 00:03:40,120 Speaker 3: report is quote total exoneration and it proves no classified 71 00:03:40,120 --> 00:03:43,440 Speaker 3: information was shared. The new attention on the signal chat 72 00:03:43,520 --> 00:03:46,480 Speaker 3: comes as Haygseth is already under scrutiny over a second 73 00:03:46,600 --> 00:03:50,200 Speaker 3: strike order that killed survivors on board a suspected drug 74 00:03:50,280 --> 00:03:51,200 Speaker 3: vote in the Caribbean. 75 00:03:51,480 --> 00:03:54,040 Speaker 4: Turning from the Caribbean now to Asia, Karen A new 76 00:03:54,080 --> 00:03:57,200 Speaker 4: poll says the majority of Americans back the US military 77 00:03:57,240 --> 00:04:01,960 Speaker 4: defending Taiwan against the potential invasion from mainland China. The survey, 78 00:04:02,000 --> 00:04:05,600 Speaker 4: conducted by the nonprofit Ronald Reagan Institute, found sixty percent 79 00:04:05,640 --> 00:04:09,840 Speaker 4: of Americans would support committing US forces to Taiwan's defense. 80 00:04:10,360 --> 00:04:13,600 Speaker 3: Meanwhile, Nathan Chinese leader Shi Jinping met with French President 81 00:04:13,600 --> 00:04:16,839 Speaker 3: Emmanuel mccron in Beijing at a time when relations between 82 00:04:16,839 --> 00:04:19,440 Speaker 3: the EU and China have been under strained. The two 83 00:04:19,520 --> 00:04:24,560 Speaker 3: leaders have discussed issues including economic ties, trade tensions, Taiwan, 84 00:04:24,960 --> 00:04:28,120 Speaker 3: and the war in Ukraine. She, speaking through an interpreter, 85 00:04:28,400 --> 00:04:31,400 Speaker 3: describe their tax as frank, fruitful and friendly. 86 00:04:32,000 --> 00:04:38,160 Speaker 6: Thank you, Jaswig. Today the world is undergoing profound changes 87 00:04:38,640 --> 00:04:43,200 Speaker 6: unseen in a century at an accelerated pace, and humanity 88 00:04:43,240 --> 00:04:47,239 Speaker 6: once again stands at a crossroads. China and France should 89 00:04:47,279 --> 00:04:52,480 Speaker 6: demonstrate their sense of responsibility, uphold the banner of multilateralism, 90 00:04:52,960 --> 00:04:57,159 Speaker 6: c through the fog of uncertainty, and firmly stand on 91 00:04:57,240 --> 00:04:58,880 Speaker 6: the right side of history. 92 00:04:59,320 --> 00:05:02,840 Speaker 3: On the issue Ukraine, she said that China hopes a fair, 93 00:05:02,960 --> 00:05:06,560 Speaker 3: binding agreement acceptable to all parties can be reached. Those 94 00:05:06,600 --> 00:05:09,520 Speaker 3: comments came as Macron renewed his call for Shee to 95 00:05:09,600 --> 00:05:14,360 Speaker 3: back europe stance on Ukraine and warned against the disaggregation 96 00:05:14,520 --> 00:05:15,360 Speaker 3: of the world order. 97 00:05:15,520 --> 00:05:17,520 Speaker 4: Well, let's look at some stocks on the move this morning. 98 00:05:17,560 --> 00:05:20,599 Speaker 4: Karen shares of Salesforce re up almost two percent. The 99 00:05:20,640 --> 00:05:24,120 Speaker 4: software company's revenue outlook topped analyst estimates, but on the 100 00:05:24,120 --> 00:05:28,960 Speaker 4: flip side, shares of Snowflake are flurring lower by nearly 101 00:05:29,080 --> 00:05:32,440 Speaker 4: nine percent. Company makes software that helps organize, analyze, and 102 00:05:32,520 --> 00:05:35,239 Speaker 4: store corporate data in the cloud. It gave an operating 103 00:05:35,279 --> 00:05:37,720 Speaker 4: margin outlook that fell short of analyst testaments. 104 00:05:38,320 --> 00:05:41,320 Speaker 3: Now Nathan the latest on the battle for Warner Brothers Discovery. 105 00:05:41,360 --> 00:05:44,960 Speaker 3: Bloomberg News has learned Paramount sky Dance has more than 106 00:05:45,160 --> 00:05:48,719 Speaker 3: doubled the proposed breakup fee and its offered to acquire 107 00:05:48,760 --> 00:05:52,480 Speaker 3: the parent of HBO and CNN to five billion dollars. 108 00:05:52,520 --> 00:05:55,160 Speaker 3: The breakup fee would be paid to Warner Brothers if 109 00:05:55,160 --> 00:05:59,159 Speaker 3: a deal is agreed to but not consummated, and it's assigned. 110 00:05:59,200 --> 00:06:02,640 Speaker 3: Paramount is as confidence it's proposed merger would pass muster 111 00:06:02,760 --> 00:06:07,720 Speaker 3: with regulators. Warner Brothers is waging offers from three media companies, Paramount, Netflix, 112 00:06:07,760 --> 00:06:12,880 Speaker 3: and Comcast. Time Now for a look at some of 113 00:06:12,880 --> 00:06:14,560 Speaker 3: the o their stories making news in New York and 114 00:06:14,600 --> 00:06:16,640 Speaker 3: around the world, and for that were joined by Bloomberg's 115 00:06:16,680 --> 00:06:18,600 Speaker 3: Michael Barr Michael, Good Morning, Good. 116 00:06:18,360 --> 00:06:21,800 Speaker 10: Morning, Karen. President Trump unleashed another round of attacks on 117 00:06:21,920 --> 00:06:25,640 Speaker 10: Somemali immigrants during an event in the Oval Office yesterday. 118 00:06:25,760 --> 00:06:30,920 Speaker 10: President Trump said that Somali immigrants have destroyed Minnesota. He 119 00:06:31,000 --> 00:06:35,040 Speaker 10: also lashed out at Democratic Congresswoman Ilhan Omar, who is 120 00:06:35,080 --> 00:06:38,320 Speaker 10: an immigrant from Somalia, saying she should be thrown out 121 00:06:38,320 --> 00:06:38,920 Speaker 10: of the country. 122 00:06:39,279 --> 00:06:42,440 Speaker 7: All she does is complain about this country. Without this country, 123 00:06:42,480 --> 00:06:44,560 Speaker 7: she would not be in very good shape, probably wouldn't 124 00:06:44,560 --> 00:06:49,280 Speaker 7: be alive right now. So Somalia is considered by many 125 00:06:49,279 --> 00:06:52,680 Speaker 7: to be the worst country on Earth. I don't know. 126 00:06:52,839 --> 00:06:54,920 Speaker 7: I haven't been there. I won't be there anytime soon. 127 00:06:55,680 --> 00:07:00,560 Speaker 10: Minneapolis Mayor Jacob Fry dismissed President Trump as a quote. 128 00:07:01,120 --> 00:07:04,320 Speaker 10: Democrats on the House Oversight Committee have released new images 129 00:07:04,360 --> 00:07:08,040 Speaker 10: of the private island owned by convicted sex offender Jeffrey Epstein. 130 00:07:08,520 --> 00:07:12,120 Speaker 10: The videos and pictures were taken by local authorities, showing 131 00:07:12,160 --> 00:07:16,800 Speaker 10: where multiple accusers say they were trafficked and abused. Video 132 00:07:16,920 --> 00:07:20,720 Speaker 10: of the secluded hideaway shows the grounds, along with interior 133 00:07:20,760 --> 00:07:23,880 Speaker 10: images of a bedroom and bathroom, a room with a 134 00:07:23,960 --> 00:07:27,960 Speaker 10: dental chair, and face masks of men tacked to the wall. 135 00:07:28,600 --> 00:07:31,440 Speaker 10: President Trump has granted another pardon, this time to a 136 00:07:31,480 --> 00:07:35,880 Speaker 10: Democratic member of Congress. The president's pardon means Congressman Henry 137 00:07:35,960 --> 00:07:39,040 Speaker 10: Quahar of Texas and his wife won't go to trial 138 00:07:39,080 --> 00:07:42,320 Speaker 10: in April on federal bribery and corruption charges. 139 00:07:42,600 --> 00:07:46,000 Speaker 7: He's a respected person. He was treated very badly because 140 00:07:46,040 --> 00:07:48,600 Speaker 7: he said that people should not be allowed to pour 141 00:07:48,680 --> 00:07:49,520 Speaker 7: into our country. 142 00:07:49,680 --> 00:07:51,680 Speaker 10: Congressman Quay are thanks the President. 143 00:07:51,920 --> 00:07:53,080 Speaker 2: Now we can get back to work. 144 00:07:53,240 --> 00:07:54,240 Speaker 9: Nothing has changed. 145 00:07:54,960 --> 00:07:56,720 Speaker 2: We will continue working hard. 146 00:07:57,200 --> 00:08:00,480 Speaker 10: President Trump alleged without evidence, that the Biden administrator went 147 00:08:00,480 --> 00:08:04,360 Speaker 10: after Quayer because he criticized border policy. The annual lighting 148 00:08:04,400 --> 00:08:07,240 Speaker 10: of the Rockefeller Center Christmas Tree took place last night 149 00:08:07,280 --> 00:08:10,840 Speaker 10: in Manhattan. The seventy five foot tall Norway Spuce is 150 00:08:10,920 --> 00:08:15,520 Speaker 10: decked out in more than fifty thousand multi colored led lights. 151 00:08:15,760 --> 00:08:17,880 Speaker 10: Global News twenty four hours a day and whenever you 152 00:08:17,920 --> 00:08:20,400 Speaker 10: want it with Bloomberg News Now. I'm Michael Barr, and 153 00:08:20,520 --> 00:08:22,080 Speaker 10: this is Bloomberg Club. 154 00:08:22,840 --> 00:08:26,160 Speaker 3: Thanks Michael. A time now for our Bloomberg Sports updating. 155 00:08:26,240 --> 00:08:28,160 Speaker 3: For that, we bring in John Stashauer. 156 00:08:28,600 --> 00:08:31,800 Speaker 1: Thanks. Karain Giannis unto the compo in the news with 157 00:08:31,960 --> 00:08:35,000 Speaker 1: reports that he's unhappy with the Bucks sub five hundred 158 00:08:35,040 --> 00:08:37,720 Speaker 1: record and he's in talks with the team about getting 159 00:08:37,800 --> 00:08:41,120 Speaker 1: trained in His first desire is to go to the Knicks. 160 00:08:41,160 --> 00:08:44,160 Speaker 1: The Bucks then hosted the Pistons and Yannites. Three minutes 161 00:08:44,200 --> 00:08:46,559 Speaker 1: into the game hurt, his cash headed for an MRI. 162 00:08:46,760 --> 00:08:49,480 Speaker 1: The Bucks still won the game. Chris Paul released by 163 00:08:49,520 --> 00:08:52,640 Speaker 1: the Clippers, said to be friction with coach Tylu. The 164 00:08:52,679 --> 00:08:55,360 Speaker 1: game tonight in the NFL is Dallas at Detroit, a 165 00:08:55,360 --> 00:08:58,479 Speaker 1: big one in the NFC. That's your Bloomberg Sports update. 166 00:09:00,160 --> 00:09:03,560 Speaker 3: With us more from Bloomberg Daybreak coming up after this. 167 00:09:07,559 --> 00:09:11,840 Speaker 11: Coast to coast on Bloomberg Radio, nationwide on Sirius XM. 168 00:09:11,880 --> 00:09:14,720 Speaker 12: And around the world on Bloomberg dot com and the 169 00:09:14,760 --> 00:09:16,000 Speaker 12: Bloomberg Business App. 170 00:09:16,240 --> 00:09:17,840 Speaker 11: This is Bloomberg Daybreak. 171 00:09:18,760 --> 00:09:21,720 Speaker 4: Meta platforms has been hit by a full scale European 172 00:09:21,800 --> 00:09:25,960 Speaker 4: Union antitrust investigation over how it's artificial intelligence features in 173 00:09:26,000 --> 00:09:29,520 Speaker 4: WhatsApp may be harming competition. This is the latest EU 174 00:09:29,640 --> 00:09:32,560 Speaker 4: probe into big text dominance on the continent, and for 175 00:09:32,600 --> 00:09:36,120 Speaker 4: more we get details from Bloomberg Stephen Carroll in Brussels. Stephen, 176 00:09:36,200 --> 00:09:37,360 Speaker 4: what is this probe over? 177 00:09:37,559 --> 00:09:40,880 Speaker 12: This is Overmatt's new AI policy, which was announced in October, 178 00:09:40,920 --> 00:09:45,040 Speaker 12: which prohibits AI providers from using tools outland to communicate 179 00:09:45,320 --> 00:09:49,520 Speaker 12: with businesses via WhatsApp. This is specifically due due to 180 00:09:49,760 --> 00:09:52,520 Speaker 12: the sorts of services where AI is the main business 181 00:09:52,520 --> 00:09:56,439 Speaker 12: it's not automated customer support that many companies offered through WhatsApp. 182 00:09:56,440 --> 00:09:59,440 Speaker 12: It's and it's a specific AI product. What the Commission 183 00:09:59,480 --> 00:10:02,240 Speaker 12: is concerned about is that this new policy could prevent 184 00:10:02,360 --> 00:10:06,440 Speaker 12: these third party providers from offering their services through the 185 00:10:06,480 --> 00:10:10,160 Speaker 12: messaging service, and that could be anti competitive. The statement 186 00:10:10,440 --> 00:10:13,400 Speaker 12: from the Commission announcing this investigation says that as a 187 00:10:13,440 --> 00:10:17,520 Speaker 12: result of this new policy, competitors to Meta in Ai 188 00:10:17,640 --> 00:10:20,520 Speaker 12: could be blocked from reaching their customers, but Meta's own 189 00:10:20,559 --> 00:10:23,960 Speaker 12: AI service would remain accessible and Meta will be now 190 00:10:24,000 --> 00:10:27,200 Speaker 12: forced to submit solutions to try and appease the regulator's concerns. 191 00:10:27,200 --> 00:10:30,880 Speaker 12: But if this first of all investigation finds wrongdoing, and 192 00:10:31,040 --> 00:10:34,720 Speaker 12: if it is successfully upheld by the courts, it could 193 00:10:34,800 --> 00:10:36,920 Speaker 12: lead to a fine as high as ten percent of 194 00:10:36,960 --> 00:10:40,120 Speaker 12: global and you wal revenue. WhatsApp, in response to this, 195 00:10:40,160 --> 00:10:43,480 Speaker 12: have said the claims are unfounded, that they're API, the 196 00:10:43,600 --> 00:10:46,400 Speaker 12: technology underpinning WhatsApp was not designed to be used for 197 00:10:46,440 --> 00:10:49,720 Speaker 12: AI chatbots, and it would play severe strain on their services. 198 00:10:49,760 --> 00:10:52,000 Speaker 12: They say that's why this policy has come into force, 199 00:10:52,160 --> 00:10:55,160 Speaker 12: but the investigation will now proceed at force. It's, of course, 200 00:10:55,280 --> 00:10:58,960 Speaker 12: the latest strand of the EU investigations targeting big tech companies, 201 00:10:59,040 --> 00:11:02,480 Speaker 12: and we know that that's been particularly politically sensitive issue 202 00:11:02,520 --> 00:11:04,040 Speaker 12: when it comes to the Trump administration. 203 00:11:04,360 --> 00:11:06,960 Speaker 4: Now we understand Stephen, that this is coming under the 204 00:11:07,240 --> 00:11:11,720 Speaker 4: European Union's traditional antitrust law, not necessarily under the digital 205 00:11:11,760 --> 00:11:15,320 Speaker 4: services laws that have come under so much criticism from 206 00:11:15,400 --> 00:11:16,360 Speaker 4: the Trump administration. 207 00:11:16,760 --> 00:11:18,920 Speaker 12: Yeah, that's right. This is the old set of rules 208 00:11:18,920 --> 00:11:21,679 Speaker 12: as opposed to the new ones that Meta is being 209 00:11:21,760 --> 00:11:24,840 Speaker 12: hit by. The Digital Markets Act in particular, is the 210 00:11:24,880 --> 00:11:27,320 Speaker 12: one that has caused a lot of hand ringing among 211 00:11:27,400 --> 00:11:31,560 Speaker 12: technology companies, and a final already issued under the Digital 212 00:11:31,559 --> 00:11:34,760 Speaker 12: Markets Act against Meta for two hundred million euros was 213 00:11:34,760 --> 00:11:37,920 Speaker 12: issued in April of this year, and it also had 214 00:11:37,960 --> 00:11:40,400 Speaker 12: to pay a seven hundred and ninety eight million euro 215 00:11:40,600 --> 00:11:44,160 Speaker 12: fine for tying its Facebook marketplace service to its social 216 00:11:44,200 --> 00:11:47,040 Speaker 12: network that was an abuse of dominance question as well. 217 00:11:47,040 --> 00:11:50,320 Speaker 12: This is the multi layered regulations that tech companies have 218 00:11:50,360 --> 00:11:53,760 Speaker 12: to face in the European Union. That's part of the 219 00:11:54,200 --> 00:11:57,040 Speaker 12: contract for doing business in this area. But this is 220 00:11:57,080 --> 00:11:59,560 Speaker 12: a more traditional sort of case that we've seen, and 221 00:11:59,640 --> 00:12:01,840 Speaker 12: of course Meta will be building its response to this 222 00:12:01,920 --> 00:12:02,880 Speaker 12: investigation now. 223 00:12:03,280 --> 00:12:06,640 Speaker 4: So given that it is more of a traditional antitrust probe. 224 00:12:06,679 --> 00:12:09,600 Speaker 4: What's the potential timeline for how this all could play out? 225 00:12:10,520 --> 00:12:12,480 Speaker 12: The Roping Commission hasn't given a timeline and how long 226 00:12:12,520 --> 00:12:15,240 Speaker 12: it takes. It can technically take years to get through 227 00:12:15,240 --> 00:12:17,960 Speaker 12: the full process because you come to a conclusion and 228 00:12:18,000 --> 00:12:20,040 Speaker 12: then there can be an appeal that goes through several 229 00:12:20,080 --> 00:12:22,280 Speaker 12: levels of the European courts here as well. So this 230 00:12:22,360 --> 00:12:25,000 Speaker 12: could be something that we're talking about in a couple 231 00:12:25,000 --> 00:12:27,440 Speaker 12: of years time, but it is something that both the 232 00:12:27,480 --> 00:12:30,320 Speaker 12: EU and the companies take very seriously because of the 233 00:12:30,360 --> 00:12:33,360 Speaker 12: potential fins involved. I've talked about you know, over a 234 00:12:33,400 --> 00:12:38,040 Speaker 12: billion euros already being levied against Meta over previous cases. 235 00:12:38,200 --> 00:12:41,760 Speaker 12: Ten percent of global annual revenue is what can be 236 00:12:42,000 --> 00:12:46,560 Speaker 12: imposed if wrongdoing is found at these sorts of investigations, 237 00:12:46,679 --> 00:12:50,240 Speaker 12: even and that is something that can often be reduced 238 00:12:50,240 --> 00:12:52,720 Speaker 12: to below that level, particularly if we're talking about short 239 00:12:52,760 --> 00:12:55,600 Speaker 12: lived wrongdoing, And given that this is an investigation about 240 00:12:55,640 --> 00:12:58,199 Speaker 12: a policy that's only coming into effect in the coming 241 00:12:58,240 --> 00:13:00,760 Speaker 12: weeks and months, it might act actually be something that 242 00:13:00,760 --> 00:13:04,120 Speaker 12: META puts a pause on that while this investigation is underway, 243 00:13:04,160 --> 00:13:06,360 Speaker 12: we'll be watching closely to see how they react to 244 00:13:06,400 --> 00:13:07,240 Speaker 12: it and. 245 00:13:07,600 --> 00:13:11,680 Speaker 4: Just quickly given the fact that this is yet another 246 00:13:12,400 --> 00:13:15,840 Speaker 4: antitrust effort by the European Union over big tech, it 247 00:13:15,880 --> 00:13:18,600 Speaker 4: kind of stands in contrast what we've seen from Meta 248 00:13:18,640 --> 00:13:22,280 Speaker 4: platforms here in the US, where just recently Meta was 249 00:13:22,320 --> 00:13:23,960 Speaker 4: found not to be a monopoly. 250 00:13:24,679 --> 00:13:26,400 Speaker 12: Indeed, and of course you have to remember these are 251 00:13:26,480 --> 00:13:29,560 Speaker 12: sprawling tech companies and each of these investigations is looking 252 00:13:29,600 --> 00:13:33,679 Speaker 12: at a different aspect of what a company like Meta does. 253 00:13:34,040 --> 00:13:37,200 Speaker 12: The overlapping rules do mean that you have investigations. I 254 00:13:37,200 --> 00:13:40,440 Speaker 12: mentioned what about Facebook marketplace. We know that Google has 255 00:13:40,480 --> 00:13:44,000 Speaker 12: faced cases over the years as well, because you're looking 256 00:13:44,040 --> 00:13:47,000 Speaker 12: at both a competition issue, but then the additional regulation 257 00:13:47,120 --> 00:13:50,000 Speaker 12: coming under the Digital Markets and Digital Services Acts as 258 00:13:50,040 --> 00:13:52,679 Speaker 12: well means it's a very complex legal network for these 259 00:13:52,720 --> 00:13:55,240 Speaker 12: companies to try and negotiate. If we're saying that Meta 260 00:13:55,280 --> 00:13:58,000 Speaker 12: shares and pre market are only up slightly this morning, 261 00:13:58,080 --> 00:14:00,760 Speaker 12: up seven tens of one percent, Investors don't seemed terribly 262 00:14:00,800 --> 00:14:03,680 Speaker 12: concerned by this latest announcement coming out of Brussels, and. 263 00:14:03,720 --> 00:14:05,840 Speaker 4: It certainly looks that way in the pre market trading. 264 00:14:05,920 --> 00:14:08,280 Speaker 4: Thank you for this, Steven really appreciated that is a 265 00:14:08,280 --> 00:14:12,000 Speaker 4: Bloomberg Daybreak. Europe Banker Stephen Carroll with us this morning 266 00:14:12,040 --> 00:14:13,000 Speaker 4: from Brussels. 267 00:14:13,160 --> 00:14:16,560 Speaker 3: Karen, Nathan Less repeat some of our top stories this morning. 268 00:14:16,679 --> 00:14:20,320 Speaker 3: President Trump says he thinks talks went reasonably well between 269 00:14:20,400 --> 00:14:24,080 Speaker 3: Russian President Vladimir Putin and US envoys Steve Witkoff and 270 00:14:24,160 --> 00:14:27,000 Speaker 3: Jared Kushner, but he says he does not know the 271 00:14:27,040 --> 00:14:30,800 Speaker 3: outcome with Ukraine, saying it takes two to tango. A 272 00:14:30,880 --> 00:14:34,440 Speaker 3: Pentagon watchdog report says Defense Secretary Pete Hagseth could have 273 00:14:34,520 --> 00:14:38,120 Speaker 3: endangered American lives by sharing who the attack plans on 274 00:14:38,160 --> 00:14:41,440 Speaker 3: a signal group chat. Hag Seth is already under scrutiny 275 00:14:41,480 --> 00:14:44,320 Speaker 3: over a second strike order that left no survivors on 276 00:14:44,360 --> 00:14:48,440 Speaker 3: a suspected drug boat, and French President Emanuel mccron is 277 00:14:48,480 --> 00:14:51,440 Speaker 3: pushing for a more Chinese investment during a state visit 278 00:14:51,480 --> 00:14:55,000 Speaker 3: with Chinese leader Shijinping. France is looking to rebalance its 279 00:14:55,040 --> 00:14:58,280 Speaker 3: economic ties with Beijing and narrow up persistent trade gap, 280 00:14:58,480 --> 00:15:00,440 Speaker 3: and we have more in those stories coming up on 281 00:15:00,480 --> 00:15:01,480 Speaker 3: Bloomberg Daybreak. 282 00:15:01,560 --> 00:15:03,880 Speaker 4: Nathan, all right, Karen, thank you. Let's turn back to 283 00:15:03,920 --> 00:15:06,640 Speaker 4: our top story. Now, doubts that maybe building in the 284 00:15:06,680 --> 00:15:10,240 Speaker 4: bond market on whether Kevin Hassett could deliver the rapid 285 00:15:10,280 --> 00:15:13,000 Speaker 4: interest rate cuts the President Trump wants, even if the 286 00:15:13,040 --> 00:15:16,840 Speaker 4: President gives his top economic advisor the nod to be 287 00:15:16,880 --> 00:15:19,000 Speaker 4: the next chairman of the Federal Reserve. For more on this, 288 00:15:19,040 --> 00:15:22,640 Speaker 4: we're joined by Bloomberg Markets reporter Valerie Titel and Valary. 289 00:15:22,680 --> 00:15:27,800 Speaker 4: Of course, that's a concern we heard live from Pjim's 290 00:15:27,840 --> 00:15:31,680 Speaker 4: Greg Peters on Bloomberg Television in the overnight hours. Is 291 00:15:31,680 --> 00:15:33,840 Speaker 4: that what we're seeing in the bond market, It looks, 292 00:15:33,960 --> 00:15:36,480 Speaker 4: at least in this morning's action, that things are kind 293 00:15:36,480 --> 00:15:37,080 Speaker 4: of seguine. 294 00:15:37,200 --> 00:15:39,960 Speaker 11: Well, look, there's a few facets to this discussion, one 295 00:15:39,960 --> 00:15:42,320 Speaker 11: of which is being that, yes, the FED chair is 296 00:15:42,400 --> 00:15:46,160 Speaker 11: only one vote. He really has to get the whole 297 00:15:46,160 --> 00:15:49,440 Speaker 11: committee behind him in order to make these policy decisions. 298 00:15:49,440 --> 00:15:51,960 Speaker 11: So just because there is a new Trump pick as 299 00:15:51,960 --> 00:15:55,320 Speaker 11: FED chair doesn't necessarily mean that that FED Chair gets 300 00:15:55,360 --> 00:15:58,960 Speaker 11: to decide what goes on forward. The second thing is 301 00:15:59,120 --> 00:16:02,240 Speaker 11: that we need to keep mentioning here, Nathan, is that 302 00:16:02,560 --> 00:16:05,760 Speaker 11: the labor market is continuing to show weakness, and so 303 00:16:05,800 --> 00:16:07,880 Speaker 11: the market is already pricing in the fact that we 304 00:16:07,920 --> 00:16:10,920 Speaker 11: are going to have a FED cutting next year. We're 305 00:16:10,920 --> 00:16:14,000 Speaker 11: pricing in a FED cutting all the way down to 306 00:16:14,080 --> 00:16:17,800 Speaker 11: some three percent over the course of the next twelve months. 307 00:16:17,840 --> 00:16:20,280 Speaker 11: So that does kind of chime in with what these 308 00:16:20,320 --> 00:16:24,320 Speaker 11: more dubvish FED chair candidates have been calling for. We 309 00:16:24,400 --> 00:16:27,120 Speaker 11: know that Hasset has been a key part of Trump's 310 00:16:27,160 --> 00:16:30,760 Speaker 11: economic agenda, and he has always stood by quite adamantly 311 00:16:31,160 --> 00:16:35,280 Speaker 11: that Trump's policies are disinflationary in nature. He's not worried 312 00:16:35,280 --> 00:16:38,680 Speaker 11: about tariff induced inflation. If anything, he thinks that Trump's 313 00:16:38,680 --> 00:16:42,120 Speaker 11: policies around deregulation, this pro growth is going to be 314 00:16:42,120 --> 00:16:44,880 Speaker 11: something that is going to get inflation back to target 315 00:16:44,920 --> 00:16:47,280 Speaker 11: without the FED having to do anything, leaving the door 316 00:16:47,320 --> 00:16:49,440 Speaker 11: open for them to be cutting interest rates. The real 317 00:16:49,480 --> 00:16:53,080 Speaker 11: problem comes, Nathan, if, for instance, we get a reacceleration 318 00:16:53,760 --> 00:16:56,280 Speaker 11: of the US labor force. If early next year we 319 00:16:56,320 --> 00:16:59,760 Speaker 11: start to get a reacceleration of inflation, and then you have, 320 00:17:00,320 --> 00:17:03,160 Speaker 11: as the FED Chair in May, calling for FED cuts 321 00:17:03,200 --> 00:17:05,879 Speaker 11: when the market is pricing in perhaps a FED on hold. 322 00:17:06,280 --> 00:17:08,679 Speaker 11: That is when the situation gets hairy. But we are 323 00:17:08,720 --> 00:17:09,560 Speaker 11: not there yet. 324 00:17:09,680 --> 00:17:11,760 Speaker 4: And it does raise the question that we heard as 325 00:17:11,800 --> 00:17:16,280 Speaker 4: well from Greg Peters of pigeum about Federal Reserve independence. 326 00:17:16,480 --> 00:17:19,360 Speaker 4: But if there is a question about whether Hassett can 327 00:17:19,600 --> 00:17:22,640 Speaker 4: build the kind of consensus around rate cuts, wouldn't that 328 00:17:22,680 --> 00:17:25,000 Speaker 4: sort of obviate some of those concerns. 329 00:17:25,680 --> 00:17:28,159 Speaker 11: Well, look, you have to think that Kevin Hassett is 330 00:17:28,200 --> 00:17:32,080 Speaker 11: a respected economist. Paul is a lawyer by trade, but 331 00:17:32,119 --> 00:17:34,320 Speaker 11: he has done a very good job in getting a 332 00:17:34,320 --> 00:17:37,399 Speaker 11: consensus together on the committee. The question really is is 333 00:17:37,440 --> 00:17:39,879 Speaker 11: whether Hassett is going to have the view of an 334 00:17:39,920 --> 00:17:42,280 Speaker 11: economist or is he going to have the view of 335 00:17:42,320 --> 00:17:44,800 Speaker 11: the Trump administration when he sits down. So that's kind 336 00:17:44,800 --> 00:17:47,680 Speaker 11: of the concerns that some investors have. Even the Ft 337 00:17:47,960 --> 00:17:51,280 Speaker 11: was reporting that some senior bond investors have told them 338 00:17:51,320 --> 00:17:53,439 Speaker 11: that they would have been at least more comfortable with 339 00:17:53,480 --> 00:17:57,040 Speaker 11: someone who wasn't as close to the president as Kevin Hassett. 340 00:17:57,040 --> 00:18:00,280 Speaker 11: We had other candidates like black Rocks or Reader, also 341 00:18:00,359 --> 00:18:02,800 Speaker 11: current FED Governor Christopher Waller. We know that they were 342 00:18:02,840 --> 00:18:05,960 Speaker 11: part of the interview process for the FED chair as well, 343 00:18:06,000 --> 00:18:09,520 Speaker 11: who are dubvish in nature, but not necessarily people who 344 00:18:10,320 --> 00:18:13,440 Speaker 11: are very close to the Trump administration. So perhaps it's 345 00:18:13,480 --> 00:18:16,240 Speaker 11: the closeness to the Trump administration which is worrying people. 346 00:18:16,280 --> 00:18:19,119 Speaker 11: But again, we just don't know when Kevin Hassett, if 347 00:18:19,160 --> 00:18:22,080 Speaker 11: he does get the seat and accept the nomination, when 348 00:18:22,119 --> 00:18:24,399 Speaker 11: he sits down in May, what kind of hat is 349 00:18:24,440 --> 00:18:25,639 Speaker 11: he going to be wearing. Is it going to be 350 00:18:25,640 --> 00:18:29,200 Speaker 11: one of a conservative economist that supports Trump's policies or 351 00:18:29,359 --> 00:18:33,840 Speaker 11: one of pushing adamantly for rate cuts that Trump has 352 00:18:33,840 --> 00:18:35,800 Speaker 11: been very vocal and asking for. 353 00:18:36,119 --> 00:18:39,880 Speaker 4: That is an if, because President Trump hasn't formally made 354 00:18:39,920 --> 00:18:41,520 Speaker 4: the announcement yet. He says he's going to make it 355 00:18:41,560 --> 00:18:44,880 Speaker 4: earlier next year. But we are getting some reporting that 356 00:18:44,920 --> 00:18:48,160 Speaker 4: there's discussion within the White House that if Hassett gets 357 00:18:48,200 --> 00:18:51,800 Speaker 4: the nod, maybe Treasury Secretary Scott Bessant could be the 358 00:18:51,920 --> 00:18:55,760 Speaker 4: National Economic Council director, the top economic advisor. Does that 359 00:18:55,880 --> 00:18:58,560 Speaker 4: make us more of a signal that Hassett could be 360 00:18:59,119 --> 00:19:00,000 Speaker 4: a done deal here? 361 00:19:01,119 --> 00:19:03,840 Speaker 11: Yeah, Well, I think this is another hint that they 362 00:19:03,840 --> 00:19:06,840 Speaker 11: are seriously considering Kevin Hassett for the Fed shairt because 363 00:19:06,840 --> 00:19:10,040 Speaker 11: there looks like to be seriously considering what to do 364 00:19:10,119 --> 00:19:13,760 Speaker 11: with his open position once Kevin Hassett moves on. Now, 365 00:19:13,760 --> 00:19:16,520 Speaker 11: the director of the National Economic Council, as you mentioned, 366 00:19:16,560 --> 00:19:20,359 Speaker 11: is essentially the top White House economic advisor. If it 367 00:19:20,400 --> 00:19:24,080 Speaker 11: goes to Scott Bessant and he wears that hat alongside 368 00:19:24,280 --> 00:19:28,440 Speaker 11: Treasury Secretary, it would really allow him to consolidate oversight 369 00:19:28,920 --> 00:19:32,800 Speaker 11: of Trump's economic policies from the White House to the Treasury. 370 00:19:32,840 --> 00:19:36,280 Speaker 11: Would also give him more proximity to the President. He 371 00:19:36,280 --> 00:19:39,720 Speaker 11: would get a West Wing office in the White House. 372 00:19:40,080 --> 00:19:42,960 Speaker 11: So this is just telling us perhaps that at least 373 00:19:42,960 --> 00:19:47,040 Speaker 11: within the Trump administration, Bessent is playing such a key 374 00:19:47,160 --> 00:19:49,960 Speaker 11: role that he is being considered for a second one. 375 00:19:50,880 --> 00:19:54,320 Speaker 3: This is Bloomberg Daybreak, your morning podcast on the stories 376 00:19:54,400 --> 00:19:57,400 Speaker 3: making news from Wall Street to Washington and beyond. 377 00:19:57,680 --> 00:20:00,000 Speaker 2: Look for us on your podcast feed by six as 378 00:20:00,000 --> 00:20:03,040 Speaker 2: I'm Eastern each morning, on Apple, Spotify, or anywhere else 379 00:20:03,040 --> 00:20:03,520 Speaker 2: you listen. 380 00:20:03,720 --> 00:20:06,560 Speaker 3: You can also listen live each morning starting at five 381 00:20:06,600 --> 00:20:09,320 Speaker 3: am Wall Street time on Bloomberg eleven three to zero 382 00:20:09,320 --> 00:20:12,200 Speaker 3: in New York, Bloomberg ninety nine to one in Washington, 383 00:20:12,280 --> 00:20:16,280 Speaker 3: Bloomberg ninety two nine in Boston, and nationwide on serious 384 00:20:16,440 --> 00:20:18,520 Speaker 3: XM Channel one twenty one. 385 00:20:18,440 --> 00:20:21,120 Speaker 2: LUs Listen coast to coast on the Bloomberg Business app 386 00:20:21,160 --> 00:20:24,639 Speaker 2: now with Apple CarPlay and Android Atto interfaces. 387 00:20:24,200 --> 00:20:27,200 Speaker 3: And don't forget to subscribe to Bloomberg News Now. It's 388 00:20:27,240 --> 00:20:29,960 Speaker 3: the latest news, whenever you want it in five minutes 389 00:20:30,080 --> 00:20:33,200 Speaker 3: or less. Search Bloomberg News Now on your favorite podcast 390 00:20:33,200 --> 00:20:37,320 Speaker 3: platform to stay informed all day long. I'm Karen Moscow. 391 00:20:37,160 --> 00:20:39,679 Speaker 2: And I'm Nathan Hager. Join us again tomorrow morning for 392 00:20:39,760 --> 00:20:41,680 Speaker 2: all the news you need to start your day right 393 00:20:41,720 --> 00:20:43,200 Speaker 2: here on Bloomberg day Break.