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