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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 began in the Middle East. In some late breaking news, Israeli Prime Minister Benjamin D'atanyahu is accusing Hamas of renegging on parts of a ceasefire agreement that looked set to pause more than fifteen months of fighting in Gaza starting Sunday. Naton Yahu's office says new demands by the Palestinian group are an effort to extort last minute concessions. We get more from Bloomberg's Ethan Brunner.
I mean, there are numerous, numerous details, which prisoners will be released on, what kind of schedule, all sorts of things that are not necessarily all written down, And so it's easy for one side to say suddenly the other side is making new demands, and fundamentally they have such different goals. The goal of Israel is for Hamas to be destroyed and eliminated in any position of power in Gaza, and the goal of Hamas is to retain its power
and drive Israel out of Gaza. So ultimately they're on a kind of collision course even though they're theoretically negotiating a compromise.
Bloomberg's Eeth and Brunner notes, under the terms of the agreement, Hamas would release thirty three hostages taken on October seventh, twenty twenty three, while Israel would pull out of populated areas in the Gaza Strip and release hundreds of Palestinian prisoners. Hama says it is committed to the ceasefire deal announced by the mediators.
Well, Nathan, we want to turn to Washington now and a farewell from President Joe Biden. The President took the cameras in the Oval Office to deliver a final address to the nation and a warning about the administration to come.
Today.
An oligarchy is taking shape in America, of extreme wealth, power and influence that literally threads our entire democracy.
President Biden echoed former President Dwight Eisenhower's warning of a military industrial complex, saying the nation now face is the threat of a tech industry real complex.
Trained to politics. North of the US. Karen Canada has drawn up an initial list of more than one hundred billion dollars of US manufactured items that would hit with tariffs if President elect Donald Trump decides to levy tariffs against Canadian goods. Sources tell us the list is a draft and would come into play only if the Trump administration moves First Prime Minister Justin Trudeau and the premiers
of Canada's provinces met yesterday. It's a plot, a strategy for dealing with US protectionism.
Well Nathan. Donald Trump's pick for Treasury Secretary is hedge fund investor Scott Besson. He faces a Senate committee for his confirmation hearing later this morning, and Bloomberg's Amy Morris has a preview from Washington.
Back in October, Besant told Bloomberg TV Donald Trump tends to be more involved in the financial side of things.
He has a deep understanding of financial markets as opposed to most politicians, so he wants to be involved in the conversation.
He has very well formed opinions. Bessett has said he plans to pursue policies that boost the US economic output whiles flashing budget deficits, and that his priority will be to deliver on Trump's tax cut proposals. But he's been known to not be as supportive of tariffs. That will be a big focus for senators and investors. Scott Besson still is expected to win approval easily from the Senate in Washington. Amy Moore as Bloomberg Radio.
Right, Amy, thank you well and prepared remark set for later this morning. Besson will say maintaining the dollar as the world's reserve asset is critical to US economic health and the nation's future. Stay with Bloomberg for full coverage of Besson's confirmation hearing starting at ten thirty am Wall Street Time on Bloomberg Radio and Television.
And Karen Is. TikTok continues to battle to keep its app operating in the US after this Sunday. The CEO of the company is joining the list of tech boguls attending Trump's inauguration on Monday. The New York Times is reporting CEO Show Choo has been invited to sit in a position of honor on the dais where former presidents and other important guests traditionally are seated. TikTok, which is owned by China's Bytdance, does face a Sunday deadline to find a US buyer in order to keep operating in
the country. Politicians from both parties are looking for ways to keep TikTok accessible in this country despite that impending ban.
All Nathan, we now want to turn to the latest developments in the battle if you contain the wildfires in Los Angeles and Bloomberg. John Tucker joins us for an update. John, Good morning, and good morning Careen.
The traumatized region made it through yesterday without another major fire breaking out, and the last of the red flag warnings they're expected to end this afternoon. Was fire crews work to gain control. Officials also speaking to witnesses to find the cause of the blazes, including the devastating palisades and eaten fires. Jose Medina is with the ATF.
We are talking to individuals about not just what they saw, but what they smelled and they heard.
The fires have killed twenty five and destroyed more than twelve thousand structures. The government has yet to release damage estimates, but private firms expect they'll climb into the tens of billions and it could become the costliest fire disag yes in US history. I'm John Tucker, Bloomberg Radio.
Thanks John. Turning out of Space Blue Origins new flagship rocket has lifted off for the first time and successfully reached orbit, all seven engines.
Of cold product taking the pressures of good people through the tower.
Now passing eighteen seconds in the.
Play, New Glen thundered off the launch padd at Cape Canaveral, Florida, just after two am Eastern time. This mission is expected to last several hours. It put the company's Blue Ring pathfinder test satellite into orbit. That it was the main objective of the flight, but launch commentators did confirm that the booster portion of the New Glenn rocket was destroyed as it attempted to land on a barge in the Atlantic Ocean. That fell short of the mission's secondary goal.
Well to the markets now, Nathan where futures are higher following Wednesday's one point eight percent rally on Wall Street that was the S and P five hundreds biggest gain since the aftermath of the election. The rally came out after core inflation eased for the first time in six months. Chicago Fed President Austin Goulesby says he's optimistic about the Fed's inflation battle.
The trend continues to be improvement in inflation. I'm still optimistic for twenty twenty five that we can continue growing and have a soft.
Landing Chicago Fed President Austin Goulesby. Investors are now betting the Central Bank is likely to lower itge benchmark interest rate by half a percentage point this year.
And bank earnings continue this morning, Karen, They come after blowout results yesterday from JP Morgan Chase, Goldman, Sachs, City Group, and Wells Fargo. We get more from Bloomberg Intelligence senior banking analyst Alison Williams.
Certainly the bar has been raised for Bank of America and Morgan Stanley after strong sets of results from the other four big US banks. We're expecting to see at Bank of America an interest income growth. We could see upside to the guidance in the near term. We've also I've seen good expense control and solid credit trends. We also expect to see a Bank of America. However, we note that their first quarter does tend to have seasonally higher expenses, so we could see that in their guidance.
Allison Williams of Bloomberg Intelligence says, so far, the big banks have notched their second most profitable year ever.
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 Michael Barr. Welcome back, Michael, Thank you.
Very much, Karen. President elect Trump's pick for Attorney General, Pam Bondy, was in the hot seat on Capitol Hill yesterday and the latest in the series of confirmation hearings for the incoming administration. During her confirmation hearing, Bondi refused to say that Trump lost the twenty twenty election. Democrats on the Senate Judiciary Committee press Bondy on whether she will truly be independent from President elect.
Trump if confirmed.
I will do everything in my power and it will be my great responsibility to make America safe again.
Bondi's confirmation is all but assured, with Republicans praisinger. President elect Trump has repeatedly expressed interest in either buying Greenland from Denmark We're taking it by force. During his Senate confirmation hearing, Senator Marco Rubio explained buying Greenland would be an important piece of land for the US. Trump has nominated Rubio as his next Secretary of State. Rubio says talking about acquiring Greenland isn't new.
Harry Truman made an effort to try to buy for one hundred million dollars. He was rebuffed, and then the US has maintained through a mutual defense agreement, there the opportunity to base its military bases, and I have them for a while.
It's believed the Senate will begin to start voting this Monday on Inauguration Day to confirm some of Trump's picks. The US Federal Trade Commission and two states who tractor giant Deer, alleging the company legally monopolized agricultural equipment repairs. The FTC and state attorneys general from Illinois and Minnesota filed a complaint in federal court in Chicago's saying the tractor manufacturer withheld key information and diagnostic tools from farmers
and independent repair shops. FTC chair Lina Khan spoke to Bloomberg.
They've been steered into Deer's network of authorized dealers, which practically means they're paying more, and especially for farmers that live in rural areas, it means they sometimes have to drive hours to even get to the nearest dealer.
Deer's vice president of after market and Customer Supports said in a statement the lawsuit is meritless. The FDA is ordering food and drug makers to remove a die called red number three from the products consumers eat and drink. The colorant was banned from cosmetics and non oral medications decades ago because the study showed it cause to cancer when eaten by rats. Global News twenty four hours a
day and whenever you want it with the Bloomberg News. Now, I'm Michael Barm, and this is Bloomberg caret all.
Right, Michael Barr, thank you time now for the Bloomberg Sports Update, brought to you by Tri State. Howdy. Here's John Stamshower. John, good morning, Good morning care.
Nixon Sixers in Philadelphia. Nicks had a sixteen point league, led by thirteen and a half in a fifty three minute game. They never once trailed, yet their victory was anything but easy. Philly made up the deficit in the third quarter of the game, was tied several times. In the fourth. It went to overtiming. With Karl Anthony Towns out with an injured thumb, Jalen Brunson stepped.
Up Clockett ten Kate Crockett twenty two fronts. It breaks his inside lead. Jalen Brunson exposure Bronts at thirty points five rebounds, four assists. You hear the Knicks chance meet in Philadelphia, bron sits.
Three stood how E spn Nicks won one twenty five one nineteen. Brunson scored thirty eight points. Josh Hart had triple double. The Los Angeles Nets and Clippers tie that to the first quarter, but LA won the second quarter by twenty three points and the third by twenty eight. In the fourth, they were up by sixty four. The Clippers won one twenty six to sixty seven. It's their biggest blowout win ever and the most lopsided loss in Net's history. They had lost by fifty two to Houston
in nineteen seventy eight. Celtics lost at Toronto, won ten ninety seven. The big East Seaton Hall loss at Butler. At Fordham's Venerable rose Hill Gym, they celebrated the one hundredth anniversary of college basketball's oldest still active arena, and then Fordham lost to UMass in triple overtime. Quinn ewers the quarterback at Texas the past three seasons going pro, which means Archie Manning will finally take over as the
Longhorn starting QB at the Australian Open. Taylor Fritz lost only three games in three sets, but fellow American Francis Tiafa lost in five sets. Top Seedionic Center playing now tied one set off. John stash Shower Bloomberg.
Sports, Jarny Nickols.
Coast to Coast on Bloomberg Radio, nationwide on Sirius Exam, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hager. Israel and Hamas appeared on the cusp of a pause to fifteen months of fighting after agreeing to a six week ceasefire and deferring hostages and moving in aid to Gaza. But as the deal was announced, White House National Security spokesman John Kirby sounded a tentative note.
Now comes the real hard work of putting the modalities of the plan in place and executing to it over the course of the weeks and months ahead, and that's going to be tough work.
John Kirby's words may be ringing true this morning. Is Israel now accuses Hamas of renegging on parts of the deal. For the very latest, we go to Tel Aviv and check in with Bloomberg News Israel Bureau chief Ethan Bronner. Ethan, good morning. What is Israel accusing Hamas of? Do we have a sense of what aspects of the deal that Hamas is accused of renegging on.
They haven't specified. Earlier in the day, the Prime Minister's office complained that Hamas was asserting that it had the right to choose all of the prisoners that were going to be released by Israel rather than clearing them with Israel, and that Israel said that was not part of the agreement. So that may be more of the same it maybe other details. There's so many details here that one could
accuse the other side of suddenly changing course on. I think it's important to say something else, which is that the deal is facing a fair amount opposition in the government on the far right of the government. Two parties that the coalition rely on, relies on to continue to exist, are threatening to possibly leave the government over this deal. So these two facts, two phenomena may be related. The Prime Minister's statement complaining about Hamas and the opposition here in Israel.
So then, Ethan, does this mean at this point that the deal is off or is there still a chance that this can be salvaged.
Well, the deal is not yet on. I wouldn't call it off, I have to. I just don't know the answer to that. I think that if in theory Hamas responds, it's already responded and said, that's not true. We're not doing anything that you're accusing us of. But if they somehow work out those details, I would imagine that the cabinet here would pass it. But they have. Prime Minister has announced that he's not even going to hold a vote in the cabinet until he solves this Hamas last
minute problem. And it's very hard to know what this amounts to. I really can't answer you. I don't know, Okay.
Well, in the speech that President Biden gave last night his farewell address, he mentioned the Gaza cease fire deal as one of his accomplishments, saying it was going to be something that was going to be left to the next administration to implement. We've talked before about the massive US pressure that's been put on both sides in these
last few weeks during the transition. What could this mean for the US in terms of its influence As we start to see this as you know, sort of tentative doubt raised about this proposal.
I think you're right to raise the question, Nathan. I mean, you know, in theory, everyone was giving a lot of credit to President Trump in coming President Trump for having squeezed this out of the nitagne Is and also from Katar onto Hamas, all those things. I think it's true.
But on the other hand, it's also the circumstances of the last six months that really made the difference, which had to do with the neutering Ofbellah and the killing of a number of Hamas leaders, the collapse of the Syrian regime under Havas Lasad, and the difficulties that Iran
has faced. So all those things are still here. But it turned out and so we thought that the circumstances were ripe for a deal, But it turned out that inside Israel, and it must be said, on the right side of the American Jewelry, there is a great concern that too much is being given to Hamas, that too many people with so called blood on their hands are going to be freed, and that this organization that's vowed
to destroy Israel will be reconstituted. That seems to be what's driving the anger on the right of the opposition, and it took me a little by surprise this morning that it has become so powerful. But we are in a situation where I don't know what's going to be.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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