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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 residents of Florida bracing for another hurricane. Milton is churning toward the state's west coast, and for the very latest we are joined by Bloomberg meteorologist Rob Carolyn.
Rob.
Good morning, Good morning, Nathan. Milton is now a Category five hurricane in the Gulf of Mexico, which sustained winds of one hundred and sixty miles an hour. It's moving towards the northeast at about fourteen miles an hour. It's expected to make landfall near the Tampa Bay area tonight around midnight and exit the Florida coast near Cape Canaveral
around one or two o'clock tomorrow afternoon. It will weaken a bit today, but we still expect the storm to produce a ten to fifteen foot storm surge in the Tampa Bay area late tonight. Also see winds probably in excess of one hundred and twenty five miles an hour in Tampa. And it's still going to be a hurricane as it passes close to the Lando area overnight and off shore of Cape Canaveral tomorrow.
So when do we expect it all to end?
Then, Rob, it looks like conditions will improve tomorrow afternoon, Nathan, across much of the state, except in northeastern Florida, where they could see hurricane force gusts tomorrow afternoon and into the early evening.
All right, Rob, Carolyn with us our Bloomberg meteorologists. Of course, we're going to be checking back with you for updates throughout the morning. Rob, Thank you well.
Nathan.
We have another major story that we're following this morning, a possible breakup of tech giant Google. We get the breaking details at the Bloomberg's John Tucker, John, good morning.
Good morning, Karen. The Justice Department considering asking a federal judge to force Google to sell off parts of its business. This is an effort to end Google's online search monopoly. In a late court filing Tuesday, Prosecutors we win, The Justice Department said, for more than a decade, Google has controlled the most popular distribution channels, leaving rivals with little to no incentive to compete for users. It would be an historic breakup of one of the world's biggest tech companies.
The US district judge in the case i'm had made a ruled in August that Google Search Engine has been illegally exploiting its dominance. He's outlined a timetable for a trial on the proposed remedies next spring and plans to issue a decision by August. Another option is to order Google to provide access to the underlying data it users to build its search results in artificial intelligence products. Google has already said it plans to appeal. Experts say that
appeals process could take as long as five years. The shares of Google parent Alphabet they are down one point three percent in pre market trading York. Come John Tucker, Bloomberg Radio.
All right, John, thank you. Also watching shares of Boeing this morning. They're down about one and a half percent. The planemaker has withdrawn its latest contract offer to its union to try to end a nearly month long strike. Both Boeing and the International Association Machinists and Aerospace Workers blame each other for the impasse. SMP Global Ratings is warning it may cut Boeing's credit grade to junk is the work stoppage that is hammering cash shows no sign of ending.
Let's turn to politics now, Nathan and Vice President Kamala Harris is seizing on claims that Donald Trump said Vladimir putin COVID test kits. Bloomberg's Ed Baxter has that story.
The claim in Bob Woodward's book says this was at the height of the pandemic. Harris told Howard Stern, this is just the most recent stark example of who Donald Trump is. She said, people were scrambling to get these kits and Trump is sending them to a murderous dictator for his personal use. Trump's campaign has responded that none of these made up stories are true and says Woodward had no access to them for the book. Ed Baxter Bloomberg Radio.
Right and thank You this morning. The Kremlin has confirmed Trump said putin COVID testing kids at the height of the pandemic, as recounted in Bob Woodward's book.
Well, Nathan, now to the latest from the Middle East. Israelly Defense Minister, you have galand has postponed a trip to Washington that was set for today. A source tells Bloomberg it is due to last minute objections from Prime Minister Benjamin at Yahoo. We get more from Bloomberg Middle East Breaking News editor Dana Crege.
The trip was scheduled for Gallant to go to the US and discuss with US officials the response to Iran's missile attack last week. This was supposed to be very significant and very important, So we actually carved the path towards what we can expect in the region. Is it an escalation or is it more, you know, reducing these tensions and calming things with the Lebanon situations flaring.
Bloomberg's Dana Creche or porst net and Yah, who didn't want Gallant to go before his warcabinet, agrees to an around plan first, and Israeli official says Netanya, who also wants to speak to President Biden first, that conversation is expected to happen today.
Well, training the markets now, Karen stocks sold off in China, falling more than seven percent. Chinese equities we're down even more, but they paired losses on word. China's finance minister will deliver a briefing on fiscal pol I'll see on Saturday.
Well, here in the US, Nathan more Fed officials are speaking out about the future of monetary policy. Boston President Susan Collins says policymakers should focus on incoming data to help preserve the strength of the economy.
Looking ahead, preserving the current favorable economic conditions will require adjusting monetary policy so as not to unnecessarily restrain demand, and that will require a careful databased approach as we balance the risks, and there are risks on both sides.
Boston Fed President Susan Colin says the economy is more vulnerable to shocks now that the labor market is cooling and economic growth is moderating.
Karen billionaire investor rate Dally Hotels Bloomberg, he does not anticipate the Fed making significant cuts and rates. After policymakers slash the federal funds rate by a half percentage point.
The economy by and large, right now itself is in relatively good balance. So if you look at where growth is, where inflation is, and so on right now, and you have a political year, I think the markets are getting ahead of themselves with expecting that, and I think the risks are more on the upside than the downside.
Bridgewater Associates founder Ray Dalio spoke with Bloomberg Shinelli Basset at the Granwich Economic Forum. You can hear their full conversation on the Bloomberg Talks podcast. It features the biggest interviews from Bloomberg each day. Find it on Apple, Spotify, or wherever you get your podcasts.
Well Nathan speaking of some of the biggest names across Bloomberg and other Wall Street titan is speaking about the economy. We spoke exclusively with JP Morgan Chase CEO Jamie Dimond about whether it's soft landing as possible.
I just think there's a lot of moving parts, a lot of things in the future which inflationary. These you know, the most important thing taking place of these wars overseas held politics. You know, there are terrible humane suffering, you know, but also the you know, much of these countries acting in cahoots against Western interests, against Israel, against Ukraine, against the United States, and that's really serious. So I look at a long amount of serious things softly are hard.
I hope it happens.
I don't know.
I just wouldn't count my eggs in that one.
JP Morgan Chase CEO Jamie Dimond spoke with Bloomberg's Lisa Abramowitz at the JP Morgan Tech Stars conference in London.
Finally, Karen, getting into the Happiest place on Earth now costsmore. In California, Disney is raising ticket prices at it's Disneyland and California Adventure theme parks by about six percent most days. The least expensive admission that covers fifteen days in January and February, that's going to stay unchanged at one hundred and four dollars, but the most expensive weekend and holiday tickets are going up to two hundred and six dollars per day. That change is in effect now.
Honest time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr. Good morning, Michael, Good.
Morning, Karen. The FBI says it arreested in Afghan man who was plotting a terror attack in the US on election Day, planning to kill America on behalf of ices. The suspect has been identified as twenty seven year old Nasir Ahmad Tahiti of Oklahoma City. Juvenile was also arrested as a co conspirator. DOJ officials say the investigation intensified after the FBI search Tahiti's phone and discovered communication with
an Afghan ISIS recruiter. Fourteen states filed a suit against video sharing app TikTok, alleging the effects of its platform are harming the mental health of millions of American children and teenagers. Doctor Darien Sutton told ABC doctors recommend limiting children's screen time.
General recommendations from the American Academy of Pediatrics. For example, children under two should have no screen time. Between two and five, no more than two hours of screen time that is monitored by an adult, and then above the age of five, for all of us, no more than two hours of screen time.
In a statement, TikTok responded to the lawsuits, saying the company has been trying to work with the Attorney's General to find constructive solutions to industry wide challenges. President Biden announced the final rule requiring drinking water systems nationwide replace lead pipes within.
Ten years, saving hundreds of thousands of mothers and infants from low birth rates and children with lasting brain damage, Protecting more than a thousand adults from premature death from heart disease every single year because of.
Lead Speaking in Milwaukee, Biden says he's securing fifteen billion dollars in funding through the Bipartisan Infrastructure Law for the work. Today, the Supreme Court will hear oral arguments in the case of Oklahoma death row inmate Richard Glossop, convicted in a nineteen ninety seven murder. The state's attorney general and others say new evidence shows prosecutorial misconduct at his trial, arguing
he should get a new one. The Supreme Court will now consider whether the eight must carry out his execution. Global News twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg Karen.
All right, Michael Barr, thank you time now for the Bloomberg Sports Update, brought to you by Tri State Audie. Here's John Stanshower. John, good morning, Good.
Morning, Karen.
This was a season where Mets ownership and management admitted they weren't.
Really going for it.
They would try to compete and then spend money going into twenty twenty five, and they began the season onh one five or later eleven games under five hundred, and yet here are the Mets a win today. They'll be playing to win the Pennant. Mets and Phillies. Game three in Cityfield, the Mets twice went over the wall in right.
First pitch on the way and high. They earn a light field, pretty deep Castiana's back at the track at the water stop.
He headed off.
Let's face sake, mom the second deck the Coca Cola corner. Another opposite field hold run for Peter. All two to one. Winker hits a high drive.
Right field toward the poll.
It is gone, second tech shot Jesse Winker.
The calls on whsq. Mets went on to win seven to two, seven strong names from Sean and I, and they leave the series to to one. Game four, also a five o'clock start in San Diego. The Padres put up six runs in the second inning. The Dodgers came back with four in the third to make it six to five. No scoring after that, and the Padres are up two games to one. The Yankees look to go up to one as they play Game three tonight in Kansas City. The Jets came home from the loss in
London that dropped them to two and three. Coach Robert Salam met the media as usual on Monday, and then yesterday met with his coaches before a visit to owner Woody Johnson, who fired him and Salah was escorted out of the building, replaced by defensive cordator Jeff Ulbrich. Johnson's made a ton of coaching changes, but this was his first in season change and worth noting. Only once in the last sixty two years as a team gone to the playoffs after making it in season t WNBA Minnesota,
Connecticut eighty eight seventy seven. So it's the Links who will face the Liberty and the Finals starting tomorrow in Brooklyn. John stash Aware, Bloomberg Sports Canny.
Nathan all Right, John, thank you. The Bloomberg Sports Update brought to you by Audi. Visit your Trili 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 Haygary could be one of the most significant antitrust actions against a big tech company in decades. The Justice Department is considering asking a federal judge to order Google to sell off parts of its business. And from where we're joined by Bloomberg News executive editor Peter Elstrom. Peter, good morning. So what is it exactly that the Justice Department is considering here?
So what we're seeing now is that the Justice Department is proposing potential solutions to this anti trust case that they have been waging against Google. Back in August, the judge in this case, Emmitt Meta, ruled that Google indeed did have a monopoly in search and it had abused its power in the search business. And so the Justice Department presented this thirty two page document where they laid out a framework of potential solutions that could now be
used to address those concerns. They include some structural changes and also some behavioral changes. Perhaps the most dramatic option here is that they're proposing the judge should order a breakup of Google.
That is certainly a dramatic possibility. I mean, it would be a pretty significant development. One of the biggest sense the effort to break up Microsoft.
Right right, of course, the effort to break up Microsoft did not result in a breakup of Microsoft. It did result in Microsoft having to pull back from some of the potential acquisitions and investments that perhaps they would have done, but at that time the US government was seeking to set rate perhaps the operating system or the Windows the
Windows operating system, or the office franchise from Microsoft. In this case, what the Justice Department is floating is perhaps separating out some of the different businesses of Google that it has been using to supplement that search business. Search has always been the most profitable business that at Google generates tremendous amounts of advertising profits for the company, but it also uses some of its ancillary businesses to build
up search. That includes Chrome, the browser where people often go to find different things. You can use that to search directly. That can funnel people to search. You've also got the Android operating system, which is the most popular mobile operating system, that also often uses its technology to direct people to Google Search. And then on top of that, what we find out during the case is that Google alphabet pays billions of dollars to different companies to use
Google Search, including Apple. Apple's one of the big beneficiaries on iPhone get directed to Google Search too, And.
It seems like a lot of this pressure has really ramped up with the rise of artificial intelligence alongside it, and how that's improved and increased the capabilities of that search function. How does artificial intelligence play into this anti trust scrutiny.
I think Apple and AI has been a threat more broadly to several different businesses, including Google's search business. There was discussion shortly after open ai introduced chet GPT that perhaps people wouldn't have to search anymore. Instead of going to Google getting that list of potential links and then clicking through them, you just go to shut gpt. You'd ask a question, you get an answer instead of a bunch of links. So that was clearly viewed as a
threat to Google's business. Since then, Google has accelerated its own AI efforts to try to catch up to some of the things that open ai had put into the market. Google is very advanced, They had done a ton of research and AI already, but they had him put some of those services into the market at this point. Now they're getting more aggressive through Gemini and some of their other products and using AI. But that is one of
the big potential prizes in the future. And I think one of the concerns that the Justice Department and FTC also is that the big tech companies are going to use their existing monopolies of their existing franchises to capitalize on AI, which is really the big prize in the future.
So this report's just come out, these potential remedies. Is there any way to tell at this point where the judge might lean in terms of the kind of remedies that he could seek in this case.
We really don't know that. What we got most recently is this thirty two page document where the Justice Department is laying out potential remedies that it sees in the case. Google immediately weighed in. They said these were radical proposals, they would have unintended consequences. At one point they said that a breakup would actually break the company, which is a bit surprising. And we have quite a few months
to go. There's going to be a hearing early next year where lawyers on both sides are going to be able to make their case in front of I'm at meta the judge, and then the expected target for a decision would be fairly late next year, roughly in August, So there are many months. There's a lot of arguments that are going to go into this. Again, if you look at historical president Microsoft, ultimately they decided that behavioral changes were more important than structural changes. That could be
the case here too. You know, Alternatively, they'd have to figure out how you would separate what's a very integrated company at this point and do it without causing unintended harm to consumers.
This is Bloombery day Break, 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.
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