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Speaker 1: Good morning. I'm Dereg Prisner and I'm Paul Allen. Here

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Speaker 1: are the stories we're following today. Palestinian authority says it's

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Speaker 1: working with US officials on a plan to run Gaza

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Speaker 1: after the war. Let's get to add back to for

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Speaker 1: the latest Eddy.

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Speaker 2: Yeah, that's right. I hope Samas will join as a

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Speaker 2: junior partner. Palestinian Prime Minister Mohammed Shataya, in an exclusive

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Speaker 2: Bloomberg interview, says Israel's goal of eliminating Hamas is not

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Speaker 2: realistic and so the plan would.

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Speaker 3: Be Israeli occupation to Gaza should not be allowed. One second,

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Speaker 3: Gaza should not shrink in terms of territory, and Israel

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Speaker 3: should not be allowed to annex certain areas that they

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Speaker 3: might call Baffar zones and so on. Third, there should

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Speaker 3: not be any forced transfer of Palestinians out of Gaza.

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Speaker 3: Egypt has been cooperating very well. And also this is

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Speaker 3: something that we did not want to see in the

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Speaker 3: same way that American administration did not want to see.

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Speaker 2: And he says the best solution would be for Hamas

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Speaker 2: to come under the umbrella of the PLO and help

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Speaker 2: build an independent state. This while Benjamin Nett, Yahoo and

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Speaker 2: Vladimir Putin. Vladimir Putin have held a lengthy talk today

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Speaker 2: as tensions have mounted over Russia's ties with Iran. Net

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Speaker 2: and Yahoo statements has he strongly criticized a dangerous cooperation

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Speaker 2: between Russia and Iran and expressed his displeasure with Moscow.

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Speaker 2: Putin has criticized Israel's tactics in the war in Gaza,

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Speaker 2: and US Secretary of State Anthony Blincoln says Hamas just

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Speaker 2: plainly has to give up.

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Speaker 4: There's a gap between the intent and the results, and

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Speaker 4: that's the gap that we're trying to make sure it

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Speaker 4: is closed. Look, this could be over tomorrow. This could

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Speaker 4: be over tomorrow if a mos got out of the

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Speaker 4: way of civilians instead of hiding behind them, if it

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Speaker 4: put down its weapons, if it's surrendered.

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Speaker 2: So pivoting to Ukraine, Lincoln says the move to pass

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Speaker 2: Congress to get tank ammunition to Ukraine is critical.

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Speaker 4: A small portion of what has been requested is going

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Speaker 4: through on an emergency basis, is moving quickly so that

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Speaker 4: Israel can have what it needs in hand, but virtually

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Speaker 4: everything else is going through the regular order through Congress.

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Speaker 2: Yeah, and the White House has issued a statement saying

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Speaker 2: the President has invited Ukraine's President Vladimir Zelenski to the

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Speaker 2: White House for a meeting on Tuesday. It is crunch

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Speaker 2: time at COP twenty eight in Dubai and Sulton al Jebra,

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Speaker 2: the President of the conference and UAE Special Envoy for

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Speaker 2: Climate Change, says there is some movement, but.

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Speaker 5: There are still more areas of divergence than agreement. The

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Speaker 5: window is closing to close the gaps. We are making progress,

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Speaker 5: but not fast enough. I'm not satisfying enough now.

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Speaker 2: Several US senators are there. Senator Ed Markey says Opek

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Speaker 2: is working against getting an agreement. I'm reducing greenhouse emissions.

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Speaker 6: Ope.

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Speaker 7: The oil companies right now trying to whitewash the Clark

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Speaker 7: crisis that has been created by Bossal Fuels, and US's

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Speaker 7: companies are part of this as well.

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Speaker 6: Now.

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Speaker 2: Markey says, at least, at the very least, they're working

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Speaker 2: to water it down. Chinese and Philippine vessels have faced

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Speaker 2: off on multiple clashes in the South China Sea over

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Speaker 2: the weekend. A Philippines task force says its vessels were

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Speaker 2: damaged after being directly targeted yesterday by a Chinese Coastguard

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Speaker 2: boat using a water cannon. Global News twenty four hours

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Speaker 2: a day and whenever you want it with Bloomberg News

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Speaker 2: Now in San Francisco. I'm ed Baxter in.

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Speaker 1: This is Bloomberg Eddie b Thank you well. This is

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Speaker 1: going to be the first opportunity for markets in Asia

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Speaker 1: to react to that US jobs data from Friday and

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Speaker 1: unexpected strengthening in the month of November, an increase in

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Speaker 1: non farm payrolls of one hundred and ninety nine thousand

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Speaker 1: that obviously above estimates, and it seemed to temper bets

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Speaker 1: on FED rate cuts. Former US Treasury Secretary Larry Summers

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Speaker 1: was saying the FED should wait. He said, the moment

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Speaker 1: the FED turns or announces it's going to turn is

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Speaker 1: going to be a seismic moment.

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Speaker 8: They probably need to be very deliberative and careful about

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Speaker 8: getting to that point and waiting until they see some

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Speaker 8: overwhelming evidence of inflation being locked in low or see

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Speaker 8: some real evidence of the economy turning over.

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Speaker 1: That is former US Treasury Secretary Larry Summers. By the way,

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Speaker 1: the FED will meet this week. We'll have a decision

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Speaker 1: on Wednesday. Officials are widely expected to hold the key

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Speaker 1: policy rates steady Paul.

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Speaker 9: University of Pennsylvania president Liz McGill and board chairs Scott

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Speaker 9: Bock resigned this weekend. This comes after congressional testimony where

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Speaker 9: McGill declined to say the calling for the genocide of

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Speaker 9: Jews always violates the school's code of conduct. Today, Pennsylvania

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Speaker 9: Senator Bob Casey and Governor Josh Shapiro joined local leaders

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Speaker 9: in Philadelphia for a rally against anti Semitism. Senator Casey

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Speaker 9: said reports of antisemitic incidents have increased almost fourfold since

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Speaker 9: the start of the war between Israel and Hamas with

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Speaker 9: many of the incidents reported on college campuses.

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Speaker 10: Those of us who have the authority in this case

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Speaker 10: one legislative body, the United States Congress or two houses

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Speaker 10: of one Congress, is to get them the funds they

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Speaker 10: need so they can fully investigate and prosecute these cases

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Speaker 10: where there is a hostile environment on the campus.

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Speaker 9: That's Pennsylvania Senator Bob Casey.

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Speaker 6: There.

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Speaker 9: With Lis micgill's resignation, the focus will turn to the

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Speaker 9: presidents of Harvard and MIT, who are also criticized for

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Speaker 9: their responses before a House committee last week.

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Speaker 1: Doug we are hearing Macy's has received a buy out

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Speaker 1: offer worth five point eight billion dollars. This comes from

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Speaker 1: two firms, the real estate investment firm Arc House Management

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Speaker 1: and the global asset manager Brigade Capital Management. Now the

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Speaker 1: aim here is to take Macy's private. The company currently

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Speaker 1: as a market cap of roughly four point seven billion dollars.

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Speaker 1: It was last month Macy's reported a decline in same

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Speaker 1: store sales of seven percent for the third quarter, and

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Speaker 1: so far this year, macy shares are down sixteen percent.

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Speaker 9: Paul Health insure A Signa is said to have walked

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Speaker 9: away from talks to merge with rival Jomana. The combination

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Speaker 9: would have created a giant in the industry. We've gone

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Speaker 9: more from Bloomberg's Denise Pellegrini.

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Speaker 11: A source tells us Signa is abandoning the discussions to

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Speaker 11: combine in a cash and stock deal, and Signa is

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Speaker 11: committing an additional ten billion dollars to its own one

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Speaker 11: point three billion dollars stock buyback plan instead. Analysts had

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Speaker 11: said a Signa humanic combination would have made sense. Signa

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Speaker 11: owns express Scripts, one of the largest managers of pharmacy benefits,

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Speaker 11: where Humana is a smaller player and Humano plans to

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Speaker 11: stop selling employer coverage where SIGNA is strongest, but despite

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Speaker 11: potential synergies, Bloomberg Intelligence had said antitrust approval of a

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Speaker 11: Signa Humana deal would have been tricky. Regulators blocked a

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Speaker 11: Signa Anthem merger and a Humana Etna deal in recent years.

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Speaker 11: Denise pelygreny Bloomberg Radio, we.

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Speaker 1: Go to China next, where the government is raising expectations

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Speaker 1: for its ambitious goal on GDP for the next year.

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Speaker 1: The story from Bloomberg savon men in Hong Kong.

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Speaker 12: China's Paula Buro pledged to strengthen fiscal support at a

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Speaker 12: meeting on Friday. It also introduced a new slogan, use

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Speaker 12: progress to promote stability. The message supports economists expectations for

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Speaker 12: a growth goal of around five percent for next year.

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Speaker 12: The Paula Bureau also declared that monetary policy should be flexible, appropriate,

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Speaker 12: targeted and effective. One thing to note is the previous

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Speaker 12: wording forceful was dropped from the statement. Economists say that

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Speaker 12: change indicates more caution to war or broad monetary easing

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Speaker 12: and a greater focus on targeted tools. In Hong Kong,

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Speaker 12: I'm Yvon Mann, Bloomberg Radio.

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Speaker 9: Meanwhile, China's consumer prices fell at the steepest pace in

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Speaker 9: three years. Bloomberg's Joan Wong has more.

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Speaker 13: China CPI fell half a percent last once from a

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Speaker 13: year earlier. That's the biggest drop since November twenty twenty.

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Speaker 13: It's also weaker than a zero point two percent drop

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Speaker 13: projected by economists in a Bloomberg survey. Producer costs dropped

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Speaker 13: even further into negative territory. It fell three percent, compared

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Speaker 13: to a forecast decline of two point eight percent. China

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Speaker 13: has struggled with falling prices much as this year. It

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Speaker 13: has set an annual inflation target of around three percent

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Speaker 13: this year, which it is nearly certain to miss. Bloomberg

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Speaker 13: Economics expects the inflationary risks to persist into twenty twenty

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Speaker 13: four due to a weak domestic demand in Hong Kong.

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Speaker 13: Joined Wang Bloomberg Radio.

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Speaker 1: We talked a moment ago about the fact that we've

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Speaker 1: got a FED meeting in the week ahead. Let's preview

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Speaker 1: the gathering with our own Steve Matthews, Bloomberg's economics reporter

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Speaker 1: who joins us from Atlanta. Steve, I think we can

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Speaker 1: agree that that job's data on Friday stronger than forecast.

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Speaker 1: You combine that with what appears to be a moderation

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Speaker 1: in consumer expectations for inflation. Where does this leave us

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Speaker 1: in terms of FED policy?

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Speaker 6: Well, if you are inclined to do a victory dance,

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Speaker 6: I mean you could basically, you know, declare victory and

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Speaker 6: say we're thrilled with how things are going. But you

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Speaker 6: won't hear cherr Pal do that on Wednesday. It's pretty

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Speaker 6: clear that the idea of a soft landing is taking hold.

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Speaker 6: I mean, the SAID has been on the soft landing

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Speaker 6: camp for really since July, and a lot of Wall

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Speaker 6: Street is as well. You know, as far as this meeting,

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Speaker 6: it's clear they are going to do nothing in terms

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Speaker 6: of rights. The big news will be in the dot

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Speaker 6: plot of the projections for interest rates of the FMC

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Speaker 6: and you know, you have Wall Street. You know, the

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Speaker 6: pricing is for about fifty percent for the first rate

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Speaker 6: cut in March, and it will be really interesting to

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Speaker 6: see where the FED is. The FED will not be

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Speaker 6: there quite yet. I mean, in our survey of economists

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Speaker 6: that came out today, they're predicting that the dots will

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Speaker 6: show two rate touch two quarter point rate cuts this year,

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Speaker 6: which would be much stingier than you know, the four

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Speaker 6: or five that most of the folks on Wall Street

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Speaker 6: are looking for.

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Speaker 9: Yeah, I'm enjoying the imagery of a victory Dancia. But

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Speaker 9: in terms of right cuts, it's all about perception, isn't

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Speaker 9: it that the FED would really want to avoid being

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Speaker 9: seen to endorse this market perception that easing is coming exactly.

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Speaker 6: And you know, there is a good portion of the

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Speaker 6: FED that would agree pretty much entirely with what Larry

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Speaker 6: Summers was saying. I mean, these are folks that they

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Speaker 6: grew up in the seventies. You know, they understand the

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Speaker 6: seventies experience with inflation. They want to be certain that

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Speaker 6: they have you know, killed the inflation dragon before before

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Speaker 6: they are ready to kind of you know, be done

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Speaker 6: with it. And so you know, they would prefer to

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Speaker 6: keep rates higher for longer, wait a while in terms

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Speaker 6: of actually cutting rates, And I think the tone of

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Speaker 6: power will be really interesting that plus the dot plot

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Speaker 6: or what people will be focused on. But you know,

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Speaker 6: I think in his speech December one in at Laana

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Speaker 6: at Spelman College, he said it was too soon to

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Speaker 6: speculate on right cuts, and I think you'll see him

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Speaker 6: reiterate that this week.

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Speaker 1: You use the term soft landing a moment ago, Steve,

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Speaker 1: and I'm looking at the piece that you authored for

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Speaker 1: Bloomberg News with your colleague Rich Miller. The Fed starts

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Speaker 1: to confront the next big question, why to cut rates.

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Speaker 1: So if we don't get a soft landing and we

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Speaker 1: get a mild recession instead, might that be the catalyst?

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Speaker 6: Yeah, yeah, that's exactly right. And you know that's the

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Speaker 6: big difference on Wall Street. Most everybody on Wall Street

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Speaker 6: expects right cuts this year, and in fact the Fed

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Speaker 6: does too. But if you have some kind of financial shock,

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Speaker 6: you have a decline and unemployment and employment, a big

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Speaker 6: rise in unemployment, that that would be, you know, a

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Speaker 6: catalyst for both near term cuts and perhaps sharper cuts.

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Speaker 6: And we haven't seen any sign of that yet, but

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Speaker 6: you know, that would be a really negative view for

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Speaker 6: the economy and a really you know, dangerous view. But

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Speaker 6: you know, what everyone is hoping for, and most of

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Speaker 6: the economists in our survey predict is that you'll have

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Speaker 6: something much more benign, and just the fact that inflation

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Speaker 6: is coming down. When inflation comes down. You know, if

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Speaker 6: you look at different economic models, like the Taylor Rule,

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Speaker 6: the John Taylor's creation, the Stanford Professor, they all suggested

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Speaker 6: when when inflation comes down, it's appropriate to cut rights.

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Speaker 6: And that's what Governor Chris Waller said a couple of

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Speaker 6: weeks ago. And the market's got very excited about and

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Speaker 6: that would be, you know, the ideal course inflation's coming down.

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Speaker 6: So therefore, based on these various monetary policy benchmarks, it

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Speaker 6: would be appropriate to cut rights.

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Speaker 9: Yeah, well, to say, we'll be hitting into this meeting

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Speaker 9: armed with the CPI November numbers and that number of

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Speaker 9: those scene accelerating a little upper third of one percent

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Speaker 9: on tyber hesitate the words. But is that just going

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Speaker 9: to be a transitory blip.

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Speaker 6: Yeah, it's truly interesting because I mean the headline number

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Speaker 6: would be that folks are forecasting is that no, there'd

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Speaker 6: be no change at all, essentially zero inflation because of

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Speaker 6: declines and energy prices. Core inflation excluding food energy might

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Speaker 6: tick up a bit, but yeah, the the expectation is

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Speaker 6: that both declining energy prices that will feed into core

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Speaker 6: inflation over some period of time. Housing prices are likely

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Speaker 6: poised to decline. If you look at what's happening with

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Speaker 6: apartment rents. Plus, if you look what's happening with for example,

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Speaker 6: use cars, use car prices, and we get you know,

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Speaker 6: various indexes monthly. They are coming down. So that should

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Speaker 6: also feed into core inflation over time. So yeah, if

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Speaker 6: there is a tick up, the expectation would be that

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Speaker 6: that would not necessarily last. But as Powell has said,

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Speaker 6: you know, they expect that the course to dis inflation

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Speaker 6: will be bumpy. It's not going to happen, you know,

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Speaker 6: without some bumps along the way.

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Speaker 9: Mm hmm