Speaker 1: Good morning. I'm Brian Curtis and I'm Doug Krisner. Here
Speaker 1: are the stories we're following today.
Speaker 2: Ukraine's President Vladimir Zelenski has spent the day meeting with
Speaker 2: President Joe Biden and members of Congress. Let's get right
Speaker 2: to Ed Baxter in San Francisco with all the latest.
Speaker 3: Did all right, Thank you very much, Brian. Yeah, he
Speaker 3: of course is asking for additional aid for the war effort.
Speaker 3: Apparently will leave empty handed from Congress, at least at
Speaker 3: the White House, though a pledge of support and the
Speaker 3: signing by the President of a two hundred million dollar
Speaker 3: draw down from Defense Department's budget. Biden and Zelenski held
Speaker 3: a joint news conference too, focusing on the success of
Speaker 3: the Ukraine US partnership to date.
Speaker 4: Remember how far Ukraine has come, Russia's failed, failed US
Speaker 4: far and trying to erase Ukraine from the map and
Speaker 4: subsume it into Russia ever since.
Speaker 5: We talked about today will help us in the year
Speaker 5: twenty twenty four. Today's discussions in the White House and
Speaker 5: then kumvres across booth and both chambers with a speaker.
Speaker 5: We are very productive. I thank you for the bipotesan support.
Speaker 3: Now, Zelenski's saying support for both and we'll wait for
Speaker 3: the final result over the packages and border policy to
Speaker 3: come together. House Speaker Mike Johnson is explaining domestic first
Speaker 3: in that debate.
Speaker 1: I've also made very clear from day one that our
Speaker 1: first condition on any national security supplemental spending package is
Speaker 1: about our own national security first.
Speaker 3: And in the Senate, Lindsey Graham was part of the
Speaker 3: meetings and his tie to border security is very strong.
Speaker 6: The likelihood of an attack on our homelands going up,
Speaker 6: and we're doing nothing in my view to secure the
Speaker 6: border from a national security perspective, with the proposals being
Speaker 6: made and sent a majority Leader Chuck Schumer.
Speaker 7: President Zelensky made it so clear how he needs help,
Speaker 7: but if he gets the help, he can win this war,
Speaker 7: and he outlined in some great detail a the kind
Speaker 7: of help he needs and how it will help win.
Speaker 3: But apparently he will leave with a White House money
Speaker 3: but no movement on the supplemental from Congress. Bloomberg e
Speaker 3: Saan Marie hor Dern is noting the stark difference between
Speaker 3: this year and last.
Speaker 8: He was really welcomed in Congress. Of course, at the
Speaker 8: White House, which he still is, but a war hero's welcome.
Speaker 8: It was triumphant, it was jubilant. Remember, everyone was even
Speaker 8: so shocked he was able to get to the United
Speaker 8: States safely, and this time he comes to the US
Speaker 8: feeling a bit more desperate and really trying to make
Speaker 8: his case behind closed doors with key senators and key
Speaker 8: congressmen and women.
Speaker 3: Meanwhile, President Biden has said today that Benjamin Nett and
Speaker 3: Yahoo will have to change or lose global support. At
Speaker 3: the news conference, he expanded saying that what Hamas has
Speaker 3: done and the terror and bloodshot at has spread cannot
Speaker 3: be ignored, but that strategy may need to be altered.
Speaker 4: And so the action they're taking must be consistent with
Speaker 4: attempting to do everything possible to prevent innocent Palestinian civilians
Speaker 4: being hurt, murdered, killed, lost.
Speaker 3: Center Biden also saying Israel needs to start thinking about
Speaker 3: a Palestinian state solution post war. And Time magazine is
Speaker 3: pushing out a story today saying there's an explosion in
Speaker 3: gambling addiction in the United States, saying that it shouldn't
Speaker 3: come as a surprise with the explosion of online and
Speaker 3: sports betting. The article quotes a study out of the
Speaker 3: University of Buffalo saying that one out of ten college
Speaker 3: students is a pathological gambler. That is more than a
Speaker 3: twenty five percent of the US population with a problem. No,
Speaker 3: I'm sorry, two point five percent of the population with
Speaker 3: a problem. It says it is going as far as
Speaker 3: in many cases as students depleting their aid money to
Speaker 3: feed their new habit Global news twenty four hours a
Speaker 3: day and whenever you want it with Bloomberg News Now
Speaker 3: in San Francisco. I'm at Baxter and this is Bloomberg Now.
Speaker 2: It's time for the top business stories of the hour.
Speaker 2: And we just had this flash across the terminal that
Speaker 2: takes Interactive will join the Nasdaq one hundred index. CGEN
Speaker 2: will leave. Nasdaq is updating its annual changes to that index,
Speaker 2: and we'll have more throughout the program. Well. One metric
Speaker 2: of US consumer price is picked up in November on
Speaker 2: increases in housing and other service sector costs. We heard
Speaker 2: from David Leibovitz, global market strategists at JP Morgan Asset Management.
Speaker 2: He tells us what he thinks today's data means for
Speaker 2: the FED at its two day meeting.
Speaker 9: I think that the tone tomorrow is going to be
Speaker 9: more balanced than it's been in the past. I think
Speaker 9: that they're going to begin to view kind of the
Speaker 9: risks as being more two sided. To use a bit
Speaker 9: of a bit of Fed speak, but I think that
Speaker 9: they're going to push back again against what the market
Speaker 9: is pricing, which is a cut in the late spring
Speaker 9: and early summers. By our lights, the FED is probably
Speaker 9: going to remain on hold at least until the third
Speaker 9: quarter of next year. And again, I think that they
Speaker 9: want to see more progress on core inflation and even
Speaker 9: that supercore measure before they begin to signal easier policy,
Speaker 9: because we've seen this trade play out time and time again.
Speaker 9: The market gets a whiff that the FED may ease,
Speaker 9: and all of a sudden, financial conditions loosen.
Speaker 2: David Liebowitz, there a global market strategist at jp Morgan
Speaker 2: Asset Management. The FED will issue its latest monetary policy
Speaker 2: decision tomorrow, as you heard there, and we'll have live
Speaker 2: coverage of FED share Jpowell's news conference right here on
Speaker 2: Bloomberg Radio.
Speaker 1: Argentina has devalued its currency, the paso, by fifty four percent.
Speaker 1: The exchange rate is now eight hundred pesos per US dollar.
Speaker 1: This is part of an economic shock therapy program from
Speaker 1: newly inaugurated President Javi R. Milai. It was on Sunday.
Speaker 1: Mela said Argentines will have to endure months of pain
Speaker 1: while he works to pull the country from an economic
Speaker 1: crisis inherited by or from his predecessor. Inflation in Argentina
Speaker 1: is already running at more than one hundred and forty
Speaker 1: percent annually. Other measures announced by the government include reducing
Speaker 1: the number of ministries by half, cutting transfers to provinces,
Speaker 1: and suspending public works. Argentina's government will also reduce subsidies
Speaker 1: to both the transport and energy sectors.
Speaker 2: Brian well X, the social network formerly known as Twitter,
Speaker 2: is on track to finish the year hundreds of millions
Speaker 2: of dollars behind ad revenue predictions. Where's all the platforms
Speaker 2: generated just over six hundred million dollars from advertising in
Speaker 2: each of the first three quarters of this year. X
Speaker 2: on pace to make the same amount this quarter, and
Speaker 2: that may be disappointing to some. Last year, Twitter's ad
Speaker 2: revenue was more than a billion dollars per quarter. X
Speaker 2: has historically relied on advertising for the bulk of its sales,
Speaker 2: but that business has been in decline since the takeover
Speaker 2: by Elon Musk. Musk has blamed the decline on activists
Speaker 2: who've encouraged marketers to halt spending on the service.
Speaker 1: Want to know how many people are watching your favorite
Speaker 1: show on Netflix, Well now you can. Today Netflix released
Speaker 1: its global midyear viewer data for every title on its service,
Speaker 1: and the company is now planning to publish viewer data
Speaker 1: reports twice a year. Here's Bloomberg's Lucas Shaw.
Speaker 10: Netflix has clearly gotten the point where it is so
Speaker 10: big and commands so much viewership that, after years of
Speaker 10: not wanting to disclose anything for competitive reasons, it now
Speaker 10: feels very comfortable sharing because it makes.
Speaker 2: It look really good.
Speaker 1: That is Bloomberg's Lucas Shaw.
Speaker 5: Now.
Speaker 1: Netflix said its political thriller The Night Agent was the
Speaker 1: most watched title globally in the first half of twenty
Speaker 1: twenty three.
Speaker 2: Brian Well China has vowed to make industrial policy its
Speaker 2: top economic priority next year. Bloomberg's Yvon Mann has more.
Speaker 11: From Hong Kong, the annual Economic Work Conference saw an
Speaker 11: emphasis on supporting companies to produce high value products. It
Speaker 11: also called for steps to vigorously develop the digital economy
Speaker 11: and AI technologies. The news is likely to disappoint investors
Speaker 11: hoping for consumer focused stimulus to boost growth, but policymakers
Speaker 11: did hint at providing subsidies for households to spur consumption.
Speaker 11: On the property crisis, leaders pledged to meet developers financing needs.
Speaker 11: There was also so a vague vow to launch a
Speaker 11: new round of tax reform. The overall focus of the
Speaker 11: conference was to emphasize structural reform rather than cyclical stimulus.
Speaker 11: In Hong Kong, I'm von Mann Bloomberg Radio.
Speaker 1: Chinese President Chichenping has pledged to prioritize diplomacy with Vietnam.
Speaker 1: The story from Bloomberg's Juan Wong in Hong Kong.
Speaker 10: President she says the partnership was annoyed needs to be deepened.
Speaker 10: The two nations signed thirty seven agreements, including China funding
Speaker 10: a cross border railway a maritime issues. She said that
Speaker 10: two sides should manage differences and turn challenges into opportunities.
Speaker 10: They've agreed to hold joint maritime patrols. The two nations
Speaker 10: also agreed to boost trade. Shees foul comes as Vietnam
Speaker 10: for just closer ties with the US and its allies.
Speaker 10: That has not gone unnoticed by China. She recently said
Speaker 10: Vietnam to remember its traditional friendship with its neighbor in
Speaker 10: Hong Kong. Join Wang Bloomberg Radio.
Speaker 2: This is Bloomberg Daybreak Asia. I'm Brian Curtis along with
Speaker 2: Paul Allen in Sydney, and our guest is Edward Harrison,
Speaker 2: Bloomberg team leader for the Americas on FX and rates.
Speaker 2: To take a closer look at this CPIDA, Edward, the
Speaker 2: latest data was essentially in line, although you did have
Speaker 2: that CPIX food and energy ticking up month on month,
Speaker 2: and that has led to a little bit of speculation
Speaker 2: that the Fed's not going to be in any hurry
Speaker 2: to claim victory on inflation or start lowering interest rates.
Speaker 2: The only interesting thing about this is that the market's
Speaker 2: actually moved a little bit higher today in terms of
Speaker 2: the equity market, and perhaps because the data also suggests
Speaker 2: that consumers are still spending. Your take on the.
Speaker 12: Data, Yeah, very good questions about where we are, and
Speaker 12: I think that there aren't any answers until the FED
Speaker 12: comes out, particularly with dot pot, because you can read
Speaker 12: the data in many different ways. For example, the CPI
Speaker 12: month on month was up zero point one percent, which
Speaker 12: is which is relatively low, especially we had a zero
Speaker 12: point zero in the prior reading, which suggests that overall
Speaker 12: inflation's coming down. On the same day we saw gasoline
Speaker 12: prices and oil prices go down considerably. We saw a
Speaker 12: WTI in the United States below seventy dollars a barrel,
Speaker 12: and that is leading to inflation expectations going down. We
Speaker 12: have the lowest break even on tips, which are the
Speaker 12: inflation exation component of Treasury inflation protected securities, since June,
Speaker 12: and that's telling us that the Fed has room to
Speaker 12: cut as the market is expecting. So it's not clear
Speaker 12: what the Fed's going to do in terms of its
Speaker 12: dot plot, which shows what it's forward guidance for two
Speaker 12: thousand and twenty four will be.
Speaker 13: So the Fans got room to cuts, but the question
Speaker 13: doesn't need to because typically it stopped easing if the
Speaker 13: economy was in trouble and it's looking pretty robust.
Speaker 12: Yeah, and that's the big question is are we in
Speaker 12: a different paradigm it Does the FED have room to
Speaker 12: cut and if they do, because they're concerned that we're
Speaker 12: real interest rates will choke off the economy. Do they
Speaker 12: actually forecast that they expect that to happen. I mean
Speaker 12: the last time that the Fed made these sorts of projections,
Speaker 12: that was in September. They said that they were going
Speaker 12: to reduce and to raised by fifty basis points and
Speaker 12: a half percentage point in twenty twenty four, and so
Speaker 12: there's speculation about what they're going to do. The market
Speaker 12: is talking more than one hundred basis points. Bloomberg Economics
Speaker 12: is expecting seventy five. But given how much of a
Speaker 12: loosing of financial conditions we've seen recently, it go either
Speaker 12: way for the Fed. So there's a lot of speculation.
Speaker 12: There's a lot of anticipation for this next meeting.
Speaker 2: Yeah, I suppose the people who really love goldilocks, So
Speaker 2: we'll be happy with this latest data because it does,
Speaker 2: you know, it does suggest that while inflation is coming down,
Speaker 2: it's a little choppy and spending is still holding in there.
Speaker 2: We did see some increase in housing in the CPI report,
Speaker 2: but we've also been led to believe that that housing
Speaker 2: is actually coming down and it's just delayed to be
Speaker 2: to show up in the data. Can you clarify that
Speaker 2: for us? Yeah?
Speaker 12: You know, I think that when we think about owners
Speaker 12: a clue rent going up. That's you know, there's a
Speaker 12: delay of fact in terms of when that actually gets
Speaker 12: and put it into the actual data. So these are
Speaker 12: numbers that are more consistent with what we saw, say
Speaker 12: six or twelve months ago, and that the real data
Speaker 12: on an actual basis is going down, and so therefore
Speaker 12: we should expect that particular component to add to the
Speaker 12: disinflation that we've seen thus far. So we see good disinflation,
Speaker 12: we see housing disinflation. But then the question becomes core services.
Speaker 12: That is, you know, the sticky component is everything else
Speaker 12: in the sector at say three percent even four percent,
Speaker 12: and that's the worrying factor that would keep the Fed
Speaker 12: on hold.
Speaker 13: It would you're an fix guy as well. Can you
Speaker 13: give us a sense of what this means for the
Speaker 13: dollar going forward?
Speaker 12: Yeah, So for the dollar going forward, I think that
Speaker 12: it puts it a bit under pressure. The dollar, you know,
Speaker 12: fell in November as interest rates fell, and to the
Speaker 12: degree that interest rates could continue to fall, then we
Speaker 12: would see the dollar under pressure. But at the same time,
Speaker 12: there are a number of other central banks that are
Speaker 12: going to be easing, in particular the ECB and to
Speaker 12: the degree that the ECB is easing some other European
Speaker 12: central banks like the S and B, the Swiss National Bag,
Speaker 12: and so therefore, you know, even though you would think
Speaker 12: it would put the dollar under pressure, it's not. It's
Speaker 12: not decisive as to which direction the dollar will go
Speaker 12: ultimately over say, you know, the next month, two months,
Speaker 12: because the Europe's in a recession, and it may well
Speaker 12: be that the ECB cuts first, S and B also follows,
Speaker 12: and that the Fed stays a pat which would mean
Speaker 12: that the dollar also is bid somewhat in that scenario.
Speaker 2: This is Bloomberg Daybreak Asia, your morning brief on this
Speaker 2: story is making news from Hong Kong to Singapore and
Speaker 2: Wall Street.
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Speaker 1: I'm Brian Curtis and I'm Doug Krisner. Join us again
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