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Good morning, I'm Nathan Hager.
And I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with the Fed's final policy decision of the year. Economists expect the Central Bank to lower borrowing costs for a third straight meeting, while signaling fewer interst rate cuts next year. We get a preview from Bloomberg's Michael McKee.
Fed officials are in a way between a rock and a hard place. The economy is slowing, but inflation has gotten stuck above their two percent target. Interest rates for mortgages, cars, and credit cards remain tight, but financial conditions are easy and stock markets are setting all time highs. Before their blackout period, most central bankers were signaling they would support a rate cut today, although several said they do see reasons to pause. That puts the emphasis on their new
economic forecasts and dot plot. When do they cut again and how many times? In twenty twenty five? Michael McKee Bloomberg Radio.
All right, Mike, thanks and stick with Bloomberg for full FED coverage with a special edition of Bloomberg's Surveillance the Fed. The sides with Tom Keene, Jonathan Farrell, and Lisa A. Bromwitz. That's today one thirty pm, Ball Street Time on Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcasts page on YouTube.
Well Nathan, Bank of America CEO Brian moynihan expects the Fed to cut rates. He spoke about the future of monetary policy with Bloomberg's David Weston.
If the economist view is you have to have a real rate structure across the curve of seventy five basis points one hundred basis points. If you're four seventy five four fifty now in the flation rates three point three, that's bigger. So you got to start to bring it in normalized. We've got to get to know positive soap and curve a curve that has real rates across it. An invert a curve means something anticipatory is going to.
Go the other way.
All that's got to happen. So I think they need to bring it down a little bit. They just have to be more careful because the economy is stronger than we thought three months ago, six months ago, but it still has potential weaknesses.
Bank of America O Brian Monahan sees the FED lowering interest rates to the three point seventy five percent level, or three more cuts from where they are currently. Get the full conversation on the Bloomberg Talks podcast feed on Apple, Spotify, or anywhere else you download podcasts.
Well, Karen.
In the UK, inflation rows to an eighth month high in November. The consumer prices index increase two point six percent, drifting further above the Bank of England's two percent target. Economists say the latest report effectively ends any hope of an interest rate cut at the boees final meeting of the year.
On the stock story of the Day, Nathan comes out of the auto industry, shares of Nissans soaring on merger talks, We get the very latest at Bloomberg's Lisa Matteo Lisa, good morning.
Good morning, Karen. You have that merger reportedly between Nissan and Honda. Now you have Nissan shares up about twenty three percent in Japan, Honda down three percent. Sources telling Bloomberg the deal could be expanded to include Mitsubishi Motors, which already has capital ties with Nissan, and what's more, sources a Fox con the Taiwan based per user for
iPhones approached Nissan about taking a stake. Now, the nie Ke is reporting that that move while it helped accelerate merger efforts out of fears that the Japanese company could be vulnerable to take over by the Taiwanese firm. But here's the thing. If that deal were to go through, it would create the world's third largest automaker, putting the pressure on rival Toyota, as well as provide Honda and Nissan with more resources to compete with larger peers, especially
ev rivals like Tesla and Chinese automakers. And something else to keep in mind. French automaker Renault, well, it could also have a say in the deal, considering it owns about thirty six percent of Nissan. Lisa Matteo, Bloomberg Radio.
All right, Lisa, thank you now to the latest development in the killing of United Healthcare CEO Brian Thompson. The suspect Luigi Mangioni is now facing multiple murder charges in New York. Manhattan District Attorney Alvin Bragg laid out the counts.
They include one count of murder in the first degree as a killing and furthers of terrorism two counts of during the second degree. One charge of the killing was done as an act of terrorism, and the second pertain to the fact that the killing was intentional.
Manhattan DA Alvin Bragg was joined at the news conference by New York City Police Commissioner Jessica Tish. She had a message for those who have celebrated the crime.
There is no heroism in what Mangioni did. This was a senseless act of violence. It was a cold and calculated crime that stole a life and put New Yorkers at risk.
Missioner Jessica Tish and Alvin Bragg spoke ahead of two scheduled hearings tomorrow from Mangioni in Blair County, Pennsylvania. Bragg says Mangoni could give up his fight against extradition that could bring him back to New York to face these new charges by the end of the week.
Now, Nathan, let's get the latest on efforts to avoid a government shutdown. Lawmakers on Capitol Hill have released a stop gap spending measure, but it could be a preview of.
Fights to come.
We get more with the Bloombergy's Gina Cervetti.
The bill would extend current funding into mid March. It includes more than one hundred billion dollars in emergency relief for hurricane victims, the Maui wildfires, and the bridge collapse in Baltimore. But the fight to get those measures attached could point to even more challenges for President elect Trump's early priorities. Republicans will have just a one vote majority
in the House through at least April. Since Trump picked three GOP lawmakers to serve in his administration, that'll be right in the middle of a push to pass a new budget along party lines, not to mention bills on border security, taxes and other budget issues. Gina Cervetti, Bloomberg Radio.
Ni Gina, thank you and President Like Donald Trump has chosen football legend Herschel Walker to be US Ambassador to the Bahamas. Trump made the announcement in a post on Truth Social, his social media website. Walker most recently had an unsuccessful run for the US Senate in Georgia. To hold the ambassador position, he'll need his nomination approved next year by the Republican led Senate. Trump also announced he's nominating art collector Nicole McGraw to be US Ambassador to Croatia.
Time now for a look at some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's John Tucker. John Good Morning, Good Morning.
Karen, A Defense Department spokesman says none of the mysterious drones reported over the skies of the US Northeast are being flown by the Pentagon or are part of a secret government test. President Joe Biden also weighed in, saying there's nothing nefarious. Apparently there's a lot of drones authorized up there.
I think you weren't started and they all guys, everybody's wanting to getting a deal, but all the lovers were following.
Quote at the Pentagon, Major General pat Ryder told reporters top Department officials take seriously any cases of drones flying near or over US military, So it's that we added this was not a new concern. Boeing says it's resumed production across its range of aircraft programs at factories in the Pacific Northwest after they were shut down for weeks
because of that lengthy worker strike. Following the resumption of output of its popular seven thirty seven model last week, Bois Navigan taking up building the largest seven sixty seven and Triple seven aircraft again. Twana Looney, grandmother in Alabama, is on the road to recovery after receiving a genetically modified pig kidney at NYU Langone Health.
It's just like getting a second chance in life.
Doctors hope this will be the first long term success case that could open the door for similar procedures for tens of thousands of Americans waiting on the donor list, and more delays for the SpaceX crew still stuck on the International Space Station months after their mission was set to end. A new SpaceX rocket was set to launch this coming February to finally bring them home, but now NASA is pushing back that mission until at least late March,
citing the need for more preparation. Time Global News twenty four hours date whenever you wanted with Bloomberg News. Now, I'm John Tucker and this is Bloomberg Karen.
All right, John, thank you some time now for the Bloomberg Sports Update, brought to you by Tri State. Howdy. Here's John Stashauer. John, Good morning, Good morning care.
Juan Soto has never won an MVP award. The guy the Yankees just brought in to try and replace Soto as a left handed hitting outfielder has Cody Bellinger. As a twenty three year old in twenty nineteen with the Dodgers, he hit three hundred and forty seven home runs, but Bellinger has not been anywhere near that good since then, and he's nowhere near the player Soto is. But the Yanks will hope he can regain that MVP form acquired from the Cubs and a Cody for Cody Trageicago gets
pitcher Cody Pote. Bellinger's father, Clay, was a Yankee on two World Championship team. Soto not the only one who's gone with the Yankees to the Mets. Clay Holmes was a Yankee reliever. He's now a Mets starter.
I want to look back in my career and say, man, you know what what had come from that?
And I think it was something that you know.
Still a deep doubt I had, you know, a passion board and excited me and you know, very thankful for it.
Yeah, the soccer Davis come, he's sit here with the mess. You stay here in New York and.
Be with the mess.
Holmes met the media yesterday, as did Devin Williams, who the Yanks acquired to replace Holmes. What has happened to the Rangers a month ago? A record of twelve and four since then three and eleven shut out by Lowling Nashville two nothing only the Predators ninth win of the season. Islanders also blank four nothing at Carolina. The Devils won four one at Saint Louis. In Vegas, Milwaukee won the NBA Cup held Oklahoma City only thirty one second half
points and won ninety seven to eighty one. Giannis unto the Comfo twenty six points in a triple double. Also in Vegas, with some made for TV Golf, the PGA team of Rory McElroy and Scottie Scheffler easily defeated the live duo of Brooks Koepka and Bryson Deshambell. The Atlanta Falcons only a game at a first place, but they're making a quarterback change starting with Sunday's game against the Giants. They'll start rookie Michael Pennix Junior and bench the veteran
Kirk Cousins, who has been struggling. Mighty lead of late Johns Stashewer.
Bloomberg Sports carry Me All right, John, Thank you, and Bloomberg Daybreak is brought to you by Audi. Visit your trying state Audi dealer today and get behind the wheel of the Audi model you've always wanted.
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This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. On this FED day, the final rate decision of twenty twenty four is nearly upon US investors looking for more clues on the path for next year. Meanwhile, there may be a path to a deal for two Japanese automakers to take on the biggest carmaker in the world. Lots to discuss this morning, so let's get right to it with
Bloomberg Radio and television news anchor Kritti Gupta Critty, Good morning. So, how big a surprise would it be if the FED decided they're going to pause today?
Good morning, Good morning, Nathan. It would be a surprise, but perhaps not a shock.
And I think that's a crucial difference here, simply because the market is primed and priced for what could be the last rate cut not only twenty twenty four, but that we could see for some time out of the Federal Reserve. But if they were to hold earlier, it would signal that there is perhaps extreme confidence in this economy's willingness to digest and ability to digest any sort
of pitfalls that we may see into next year. And I think this is a really crucial one because if you do see a cut, there's questions of what data justifies that cut. Now, Federal Reserve officials will likely say, and have said on the wire and in the last couple of weeks and months, that any sort of cut is simply taking policy from a super restrictive level to a slightly less but still restrictive level in terms of
being able to tackle that inflation uptick. But others may question that and say, is this rate cut, if we do indeed get one, something similar to a rate cut that we got in the likes of March of twenty nineteen when J.
Powell had that insurance.
Rate cut, even though the economy was doing quite well at the time, the unemployment rate was quite low, the peril's numbers were coming in quite strong, but it was an insurance rate cut in response to what could have been a more extreme trade war between the United States and China. And in retrospect, say in a couple of months time, there's a very real likelihood that we asked the same questions about what drove today's rate cut if we do indeed get one and.
As if a FED day weren't enough. Now, this news that Nissan and Honda are apparently in merger talks, this is really a fight for survival for Nissan Critty it is.
And look, there's a third and fourth player worth mentioning here, which is Renault has a more than forty three percent stake in Nissan at the moment. It's been trying to reduce at stake to about fifteen percent and do it in a way that they can get a pretty decent kind of bang for their buck. If they do see this kind of consolidation between Nissan and Honda, it could be a pretty big boost for the likes of Renault. But then there's another player here worth paying attention to,
and that's Fox Con. What we know is kind of the assembler of smartphones. It's in the Apple supply chain. They've been trying to get a steak in the EV maker for some time and struggling to get that steak. If they do indeed get it, though, Nathan, it brings up a lot of questions about kind of cross border consolidation, cross border steaks between a Taiwanese company into what could be a Japanese carmcon giants.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak