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Speaker 1: Bloomberg Audio Studios, podcasts, radio News. Good morning, I'm Maybe

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Speaker 1: Morris and I'm Karen Moscow. Here are the stories we're

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Speaker 1: following today. Karen, we begin with the markets. As twenty

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Speaker 1: twenty four draws to a close. Futures are lower as

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Speaker 1: we close out the week. This comes a day after

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Speaker 1: stocks were a little changed on Wall Street.

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Speaker 2: Still, for the year, the S and B five hundred

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Speaker 2: is up more than twenty six percent and NASDAC is

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Speaker 2: higher by more than thirty three percent. David Katz is

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Speaker 2: President and chief investment Officer at Matrix Asset Advisors.

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Speaker 3: We think that over the near term is more exuberance

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Speaker 3: to come. The market is really charged. On the day

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Speaker 3: that it's happy, it's up a few hundred points. On

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Speaker 3: the day that it gets spooks, that's down a few

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Speaker 3: hundred points. So we would not look at the short

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Speaker 3: term trend as continuing. We do think things are going

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Speaker 3: to change a little bit when you enter twenty twenty five.

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Speaker 3: There are big gains this year, so a lot of

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Speaker 3: people can sell stocks right now because they'd be paying

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Speaker 3: a lot of taxes. That changes January. Second, you have

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Speaker 3: a new administration take office late in January. They expect

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Speaker 3: to put a number of the policies that they've talked

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Speaker 3: about in place. We think the market could get spooked

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Speaker 3: by that, so we would not follow the significant rally

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Speaker 3: of the last few months and expect that to continue.

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Speaker 2: Matrix Asset Advisors CIO David Katz says while he expects

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Speaker 2: some market exuberance, now is not the time to increase

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Speaker 2: risk because he expects slower growth in the coming year well.

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Speaker 1: Amy A big focus for investors in twenty twenty five

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Speaker 1: will be Fed monetary policy. At his last policy meeting

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Speaker 1: of the year, j Powell signaled fewer rate cuts in

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Speaker 1: twenty twenty five. Drew Mattis, chief market strategistic MetLife Investment

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Speaker 1: Management says, if that is in a tricky position.

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Speaker 4: You never want to be too close to the edge

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Speaker 4: if you're the Federal Reserve. And I don't understand this

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Speaker 4: fixation on kind of ratifying market expectations, which quite frankly

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Speaker 4: are absurd at times, right, I mean, markets get ahead

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Speaker 4: of themselves, and then, particularly with regard to the Fed,

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Speaker 4: the last thing you want to do is ratify an

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Speaker 4: expectation for something now that's going to create an even

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Speaker 4: worse expectation later. And that's the game of the Fed

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Speaker 4: is playing right now, and it's one that could end badly,

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Speaker 4: particularly if inflation reaccelerates for a period of time.

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Speaker 1: Matt lives Drew mattis as the Fed may be forced

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Speaker 1: to actually raise rates next year.

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Speaker 2: Investors are also looking ahead to some economic data coming

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Speaker 2: out later this morning. We get those details from Bloomberg's

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Speaker 2: Denise Pellegrini.

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Speaker 5: Economists say advance retail inventories for November likely rose three

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Speaker 5: tenths of a percent, following just a one tenth percent

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Speaker 5: gain in October. One thing to watch for is whether

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Speaker 5: motor vehicles drove the inventory build again as more cars

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Speaker 5: sit on dealer lots. We'll also get government numbers on

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Speaker 5: wholesale inventories. Economists expect to build along the manufacturing line

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Speaker 5: east slightly to just one tenth of a percent month

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Speaker 5: on month. That could suggest as slight economic pickup, but

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Speaker 5: the numbers could also be skewed by buying or hoarding

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Speaker 5: ahead of possible new Trump tariffs. Denise Pelgriedy Bloomberg Radio.

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Speaker 1: All right, Denise, thank you. In Asia, Nissan motor shares

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Speaker 1: decline the motions August due to investor concern over the

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Speaker 1: terms of its plan deal with Honda Motor. At one point,

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Speaker 1: the stock tumbled as much as fifteen percent before pairing.

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Speaker 1: It's lost to nearly eight percent. The yelling Japanese automaker

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Speaker 1: aims to establish and list a joint holding company with

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Speaker 1: Honda by August twenty twenty six. The exact terms of

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Speaker 1: the arrangement are yet to be decided.

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Speaker 2: And now the latest on that Azerbaijan plane crash. Media

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Speaker 2: reports say it was hit by the Russia Air Defense.

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Speaker 2: Thirty eight people were killed. The plane was en route

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Speaker 2: from Azerbaijan to Russia's city of Grosny when it changed

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Speaker 2: course on Christmas Day. Neither Russia nor Azerbaijan offered any

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Speaker 2: suggestions of what might have happened to cause the crash.

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Speaker 2: We get more from Bloomberg senior reporter Henry Mayer.

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Speaker 6: I want to suggesting that it was deliberately attacked in

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Speaker 6: the area where this happened, which is in the vicinity

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Speaker 6: of Brosny, the capital of the Southern Russian region of Chechnya.

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Speaker 6: As the plane was approaching that is where that is

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Speaker 6: when the incident happened, And at that time there was

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Speaker 6: a lot of Ukrainian drone activity in the area, So

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Speaker 6: it looks very much like this was a mistake. But

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Speaker 6: of course azerbai Jan now wants some kind of an

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Speaker 6: explanation from Russia. And also, you know, once the plane

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Speaker 6: came under fire, it was not allowed to land at

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Speaker 6: a nearby Russian airport, which could have actually saved lives.

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Speaker 2: Bloomberg Seenior reporter Henry Mayer says twenty nine people survived.

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Speaker 1: The turmoil in South Korean politics continues amy the country's

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Speaker 1: parliament has voted to impeach acting President Han Dak su.

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Speaker 1: It's the latest blow to a government already reeling after

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Speaker 1: President Yunsuk Yule's suspension less than two weeks ago for

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Speaker 1: his martial law degree. The impeachment was sparked by Hans's

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Speaker 1: refusal to appoint three judges Constitutional Court, which could finalize

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Speaker 1: President Yunsuk Yule's removal from power.

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Speaker 2: President elect Donald Trump's thread of tariffs has set off

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Speaker 2: a global supply chain freakout. The uncertainty and potential costs

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Speaker 2: of those tariffs are causing widespread concerns, with many businesses

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Speaker 2: expecting to pass on increased cost to customers and bracing

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Speaker 2: for higher expenses and potential disruptions. Businesses worldwide are rushing

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Speaker 2: to prepare for potential tariffs and trade wars, leading to

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Speaker 2: a surge in imports and supply chain disruptions. Companies are

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Speaker 2: talking are taking rather preemptive measures, such as front loading orders,

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Speaker 2: seeking new suppliers, and renegotiating terms.

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Speaker 1: Malami. The business world to mourning the death of Richard

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Speaker 1: Parsons this morning. The executive was dubbed Captain Emergency for

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Speaker 1: his record of stabilizing ailing companies begin more with Bloomberg's

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Speaker 1: Charlie Pellett.

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Speaker 7: Those companies included Aol, Time, Warner City Group, and Dime

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Speaker 7: Savings Bank of New York. Parsons was seventy six at

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Speaker 7: his home in Manhattan. The New York Times said the

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Speaker 7: cause of death was bone cancer. Parsons was named chairman

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Speaker 7: of CBS in September of twenty eighteen. He resigned less

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Speaker 7: than one month later, citing complications from multiple myeloma, a

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Speaker 7: blood cancer. Parsons was also chairman of the Rockefeller Foundation

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Speaker 7: in New York. Charlie Pellett Bloomberg Radio and.

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Speaker 1: It's time now for a look at some of their

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Speaker 1: stories making news in New York and around the world,

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Speaker 1: and for that were joined by Bloomberg's Michael Barr Michael

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Speaker 1: Good Morning, Good Morning Care.

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Speaker 8: In New York City, Mayor Eric Adams as suggesting federal

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Speaker 8: prosecutors take the case of accused subway arsonist Sebastian Sapata

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Speaker 8: please say the suspect killed a woman by setting her

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Speaker 8: on fire on the subway last week. The move indicates

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Speaker 8: the mayor's increasing willingness to work with federal law officials

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Speaker 8: to remove migrants charged with crimes from the city. The

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Speaker 8: woman's identity remains unknown, However, a vigil was held yesterday

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Speaker 8: at the subway station in Coney Island. Reverend Kevin McCall

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Speaker 8: with Crisis Action Network criticized onlookers for not helping the woman.

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Speaker 9: The slogan in.

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Speaker 4: This city is if you see something, say something.

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Speaker 5: But no one said nothing.

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Speaker 9: No one did nothing.

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Speaker 10: They just watched this young lady burn on fire.

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Speaker 8: Alive, Reverend Kevin McCall with Crisis Action Network. A month

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Speaker 8: after a stowaway on a Delta Airlines flying from New

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Speaker 8: York to Paris, we're learning another attempt has been foiled

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Speaker 8: in Seattle this week after a passenger got on board

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Speaker 8: a flight to Honolulu without a ticket. Official say the

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Speaker 8: stowaway got off the plane and was eventually tracked down

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Speaker 8: insign an airport bathroom. The TSA confirms the passenger we

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Speaker 8: screen at a security checkpoint, but was somehow able to

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Speaker 8: bypass the identity verification process and make it onto the

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Speaker 8: plane without a boarding pass. Aviation analyst John Nance.

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Speaker 10: This has gotta stop because there is a very definite

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Speaker 10: security risk and having people get aboard without a ticket.

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Speaker 8: Aviation analyst John Nance spoke to ABC. Parts of Texas, Louisiana,

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Speaker 8: and Arkansas are under severe weather watches as the National

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Speaker 8: Weather Service predicts a storm system in the Gulf of

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Speaker 8: Mexico could bring high winds, hail, and possible tornadoes to

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Speaker 8: the region. More than one hundred flights were delayed and

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Speaker 8: dozens more were canceled Thursday at airports in Dallas and Houston. Finally,

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Speaker 8: Tonight's Mega Millions, a lottery jackpot drawing, is now worth

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Speaker 8: over one billion dollars, a jackpot that's been steadily growing

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Speaker 8: since September. Many are ready to take their chance tonight.

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Speaker 8: Like this man.

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Speaker 3: If I win, I'm buying people out, I'm buying businesses

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Speaker 3: I'm buying up blocks.

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Speaker 10: I'm buying an island.

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Speaker 8: Oh my, Global news twenty four hours a day and

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Speaker 8: whenever you want it. Bloomberg News Now. I'm Michael barr

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Speaker 8: This is Bloomberg Karen.

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Speaker 1: I'm sure I can find an old toaster to sell them.

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Speaker 1: And Michael Barrack, thank you well, Thanks Michael barr Time

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Speaker 1: now for the Bloomberg Sports Update. It's brought to you

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Speaker 1: by Tri State. Audie. We bring in Dan Schwartzman for that.

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Speaker 9: Dan, good morning, Good morning Karen. The Seahawks, keeping their

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Speaker 9: playoff hopes alive with a big win in Chicago, throws

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Speaker 9: it up in the.

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Speaker 10: Air and it is intercepted.

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Speaker 7: Bye week, willmen.

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Speaker 9: That's Chrissy of Amazon Prime with that interception, the Seahawks

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Speaker 9: finishing off a six to three win over the Bears

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Speaker 9: to improve to nine and seven, Seattle getting two field

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Speaker 9: goals from Jason Myers. Seahawks will be rooting for the

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Speaker 9: Cardinals to beat the Rams on Saturday before the head

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Speaker 9: ted matchup with LA in a Week eighteen game, and that,

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Speaker 9: of course, will determined if they make the playoffs or not.

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Speaker 9: Cowboys shutdown wide receiver CD Lamb for the final two games.

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Speaker 9: The All Pro dealing with a sprain d ac joint in

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Speaker 9: his shoulder. NBA action last night, and that's in the

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Speaker 9: fourth quarter to knockoff the Bucks in Milwaukee one thirteen

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Speaker 9: to one oh five. Bucks are playing with out stars

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Speaker 9: Gianna Santa Ta Koompa or Damian Lillard Elsewhere, Wizards knocking

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Speaker 9: off the Hornets at home one thirteen to one ten,

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Speaker 9: while the Heat slip past the Magic eighty nine to

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Speaker 9: eighty eight. Dallas Mavericks announcing some bad news on guard

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Speaker 9: Luka Doncic, as the team says the All Star will

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Speaker 9: be reevaluated in a month after sustaining a left caffs

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Speaker 9: train in the Christmas Day loss to the Minnesota Timberwolves.

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Speaker 9: Both the NFL and the NBA did well ratings wise

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Speaker 9: on Christmas Cornthin Nielsen and the NFL sixty five million

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Speaker 9: viewers in the US tuned in to watch at least

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Speaker 9: a minute of one of the two games. The Ravens

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Speaker 9: Texans game averaged twenty four point three million viewers, while

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Speaker 9: the Chiefs Steelers averaged twenty four point one million, the

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Speaker 9: two games becoming the two most stream games in league history.

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Speaker 9: The NBA also doing well with its five game schedule,

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Speaker 9: averaging five and a quarter million viewers per game, its

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Speaker 9: best holiday numbers in five years. NHL resuming its regular

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Speaker 9: season after the holiday break, with the Devil's hosting the

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Speaker 9: Hurricanes while the Bruins are on the h at the

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Speaker 9: Blue Jackets. That's your Bloomberg Sports Update. I'm Dan Schwartzman,

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Speaker 9: Karen and Amy.

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Speaker 10: Coast to Coast on Bloomberg Radio nationwide on Sirius XM,

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Speaker 10: and around the world on Bloomberg dot Com and the

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Speaker 10: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 2: And we are watching the markets as we are just

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Speaker 2: days away from twenty twenty five. I want to know

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Speaker 2: what to expect. Jeffrey, you of b and why remains

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Speaker 2: cautious and he joins us now, Jeffrey, always a pleasure.

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Speaker 2: Thanks for joining us. You are cautious, but are you bearish?

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Speaker 11: Not bearish? I'm just cautious and the only reason for

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Speaker 11: caution is positioning. We've been specifying this for quite some

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Speaker 11: time now. If I look at the dollar, if I

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Speaker 11: look at domestic buying of US treasuries, if I look

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Speaker 11: at equity positioning, the fact is people are really loaded

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Speaker 11: up on US exceptionalism, not saying that shouldn't be the

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Speaker 11: case right now, wait and see approach, But do you

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Speaker 11: really want to be adding to already extended position heading

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Speaker 11: into year end and early phases of next year with

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Speaker 11: new policies coming through. I think that's where the need

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Speaker 11: for caution is rather than being bearish from the economy

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Speaker 11: or anything.

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Speaker 2: Right those new policies are coming in with a new

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Speaker 2: administration that's coming in. There may be some uncertainty around that.

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Speaker 2: So how do you work around that?

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Speaker 11: Well, really depends on what we're looking for. Firstly, on

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Speaker 11: the tariff side of things, I think that's pretty much

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Speaker 11: in the price a lot of them economies they are

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Speaker 11: dealing with it. You know, your own reporting specified in

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Speaker 11: advance of that as well, and could there be deals

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Speaker 11: to be done, you know, will things be better than expected?

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Speaker 11: I think that's much more manageable because we did get

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Speaker 11: a dose of that a couple of years ago during

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Speaker 11: the first and Trump administration. Secondlier, which is probably more

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Speaker 11: problematic in terms of positioning again, is the US's fiscal position.

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Speaker 11: That's where we need to look at a longer term plan.

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Speaker 11: There's need for government efficiency, of course, but at the

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Speaker 11: same time something along the lines of debt sustainability. If

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Speaker 11: markets were concerned about France over the last few months

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Speaker 11: or so and its budget and its budget trajectory, the

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Speaker 11: OECD notes that's probably the only large economy with a

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Speaker 11: worst budget track, and France is actually in the US.

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Speaker 11: And given the level of positioning globally in the trophy

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Speaker 11: market right now, and probably the lack of buyers up

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Speaker 11: ahead because global surpluses are coming down, especially amongst the

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Speaker 11: Ears Asian savers, that's where in terms of policies, we

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Speaker 11: really need a closer look now.

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Speaker 2: While there is some uncertainty, as you mentioned, President elect

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Speaker 2: Trump has been there before and he's sort of foreshadowed

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Speaker 2: what he wants to do. He's already said he wants

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Speaker 2: tariffs in place, not small ones either, So how would

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Speaker 2: you bake that into your positioning.

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Speaker 11: I think we need to look at the individual markets.

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Speaker 11: If I look at say like China, for example, markets

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Speaker 11: are very very light in terms of their positioning, not

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Speaker 11: just in China but Apac in general. If I look

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Speaker 11: at Canada, if I look at Mexico, there's been quite

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Speaker 11: a bit of hedging coming through as well. If I

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Speaker 11: look at the Euro Euro hedging by our international clients,

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Speaker 11: many of which are based in the US. That's at

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Speaker 11: the highest levels, so highest levels of hedges against the

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Speaker 11: euro since two thousand and two. And back then euro

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Speaker 11: dollar was at eighty I repeat, at zero point eight

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Speaker 11: or so. That's when the ECB was trying to prop

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Speaker 11: up the euro. But then Europe reformed by itself. We

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Speaker 11: had the heart sphere reforms under Schwerder and guess what

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Speaker 11: in a few years euro dollar one sixty. Okay, So

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Speaker 11: I actually see this less about the US, but more

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Speaker 11: as an opportunity for Europe due to external pressures, an

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Speaker 11: opportunity for them to change again, just as was the

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Speaker 11: case twenty years ago. And if there's more of a

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Speaker 11: domestic component rather than exports, then tariff's big deal. Europe

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Speaker 11: can manage by itself and certainly has the funds to

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Speaker 11: do so.

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Speaker 2: Well. Well, we have about a minute here. What are

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Speaker 2: you looking for from the Central Bank?

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Speaker 11: Well, from the Central Bank ECB more cuts to come.

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Speaker 11: I think there will be a chance of fifty basis

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Speaker 11: points on one of the coming meetings. Also, I think

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Speaker 11: if I look at the Bank of England, for example,

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Speaker 11: markets are way too I would say less than they're

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Speaker 11: less dubbish or even hawkish. I think Governor Bailey's one

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Speaker 11: cut per quarter view from a few weeks ago still

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Speaker 11: stands now From the Fed, however, the lost coat and

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Speaker 11: maybe the last one for a while. Market pricing right

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Speaker 11: now very cautious easing. I think that that's something that

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Speaker 11: we can live with for the time being. But really,

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Speaker 11: apart from the US, everywhere else, especially in the developed world,

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Speaker 11: it's more easing up ahead, and probably more the markets

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Speaker 11: are pricing in.

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