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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Well, Karen.
Global bond yields have risen to high's last scene in two thousand and nine. Ahead of the Federal Reserves the final policy meeting of the year. There is concern interest rate cutting cycles may be ending soon, but as for today, traders are all about certain a rate cut is on the way, as Bloomberg's Michael McKee reports, though that is not the only thing investors will be focused on.
The markets have priced in a quarter point cut, and the Fed doesn't like to disappoint, But the real questions revolve around descents, the dot plot and their twenty twenty six outlook. We may have three policymakers vote against the decision for the first time since twenty nineteen. Investors are also focused on what comes next. In September, FED officials saw just one rate cut for next year. At the moment,
the markets are pricing in three. How many they see now will depend on their forecasts for unemployment and inflation in twenty twenty six. They forecast improvement in both. Back in September, but have the risks changed. Michael McKee, Bloomberg Radio.
Okay, Mike, thank you for full coverage of the FED decision and remarks from Chairman J Powell. Tune into a special edition of Bloomberg Surveillance the FED decides. It kicks off this afternoon at one thirty Wall Street time on Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcast channel on YouTube.
Well ahead of the Fed's last policy decision of the year, Nathan, President Trump once again took aim at Feder Reserve Chairman J.
Powell.
The President spoke at a rally in Pennsylvania.
Well, checking this, you know, we have a bad head of the FED bed We're going to be making a change. Fortunately this guy soo.
And President Trump says he has a quote pretty good idea on who he wants to run the FED. The President says he may wait until early next year to publicly reveal the name.
The economy was front and center at the President's rally. He was out to address voters' concerns about the high cost of living, telling the Mount Pocono crowd, people are starting to see the benefits of tariffs.
It's amazing. It's the smart people understand it. Other people are starting to learn, but the smart people really understand it.
The President says tariffs have allowed him to provide aid to farmers and have forced manufacturers to build plants and data centers in the US, And he says he inherited high prices from the Biden administration.
They say affordability, and everyone says, oh, that must mean Trump has high prices. Now, our prices are coming down tremendously.
And at one point during the rally, President Trump suggested he could try to remove some FED governors if former President Biden signed their commissions with an auto pen. President Trump has criticized Biden's use of automatic signatures before presidents have used them since at least the nineteen forties.
Let's stick with politics here in Nathan. History has been made in Miami. Eileen Higgins won the city may oral runoff. She becomes the first woman ever and the first Democrat in nearly three decades to lead Miami. Higin's peed a Republican endorsed by President Trump. Higgin's victory adds to a recent stretch of Democratic gains, including last month's wins in New Jersey, and Virginia and zo orun Mom Donnie's victory as New York mayor.
In the nation's capital, kar and Senate Republicans are set to vote on a plan this week to counter Democrats push to extend expiring Affordable Care Act subsidies. We get more from Bloomberg Zamy Morris.
In Washington, Senate majority leader John Thunne promised Democrats a vote to extend Obamacare premium tax credits in exchange for reopening the government last month, but Republicans don't want to vote against the extension without an alternative plan. This proposal would offer people in some Affordable Care Act health plans up to fifteen hundred dollars in health savings accounts, but
it also includes restrictions that could ruin Democratic support. Neither the Republican nor Democratic plans are expected to get the sixty votes needed for Senate passage, and healthcare costs for more than twenty million people are set despite January first. In Washington, Amy Morris Bloomberg Radio, All.
Right, Amy, thank you now. We want to get the latest on the war in Ukraine. President Trump is saying Russia is in a stronger military position in the war he took aim at European leaders for what he sees as excessive dialogue that's produced few results. And here's part of Donald Trump's exchange with Politico's Dasher Burns.
They're not doing a good job. Europe is not doing a good job. In many ways, they're not doing a good job. I want to They talk too much and they're not producing. We're talking about Ukraine. They talk, but they don't produce, and the war just keeps going on and on.
Almost four years since Putin's full scale invasion of Ukraine, the war has come at a huge cost for both sides, more than one and a half million troops killed or wounded, according to Western estimates.
Well, now we want to turn care into a Bloomberg News exclusive. A trove of emails reviewed by Bloomberg reveals Jeffrey Epstein's financial ties on and off Wall Street were broader than previously known. Let's get the details from Bloomberg's John Tucker, Good Morning John.
And Nathan akash At. More than eighteen thousand emails sent to in front Epstein's private Yahoo account shows, even after stories of Epstein's teenage victims spilled into the open Wall Street continued to stay in touch. Some helped keep his money machine turning. He had access to prestigious names in global finance, including legendary Renaissance Technologies and the investment firm a billionaire Carl ICoD. Just week samter Epstein was charged
with soliciting prostitution. For example, he received a coveted invitation from wealth manager Greg Hirsch to invest with Renaissance. Epstein jumped to the chance. Hersh who now runs his own office, said through a spokesperson his interactions were solely professional and ended in two thousand and seven.
Well.
Epstein even fielded requests for investments until his last week of freedom in New York. I'm John Tucker Bloomberg Radio.
All right, John, thank you. Well, there are some companies in the news this morning, Paramount's guide and said Netflix, the entertainment heavyweights so logging in a bidding war for Warner Brothers Discovery are bracing for a battle that could last months. Warner Brothers board is not planning to cancel its merger agreement with Netflix, which would require a two point eight billion dollar termination fee. And let's say that
now puts the onus on Paramount to make the next move. Meanwhile, money manager Mariogabelli says it's quote highly likely he will tender his client's Warner Brothers shares to paramount and an effort to spark a bidding war for the film and TV company.
We're watching shares a JP Morgan chase this morning, Karen. They're up about a tenth percent, but that followed a drop yesterday at four point seven percent after the bank's Maryann Lake said JP Morgan anticipates spending one hundred and five billion dollars next year. That outlook was more than analysts we're looking for.
And SpaceX Nathan's moving ahead with plans for an initial public offer a now would seek to ray significantly more than thirty billion dollars. Sources say the Elon muss Lad company is targeting a valuation of about one and a half trillion for SpaceX, and Bloomberg Tech host ed Ludlow has more.
They do need capital, you know, Elon Musk has posted a lot recently about their cash flow position why they
don't need cash. But what I understand from sources is the reason they're targeting a arrays of more than thirty billion dollars, significantly more than thirty billion dollars, is that, alongside all of SpaceX's other long term goals with Starship in particular, they are looking at the market potential of space or constellation based data center satellites that act in consolation and aggregate as data centers where SpaceX needs a capital to buy the semiconductors by the Chips.
And bloomberg Ed Ludlow says SpaceX is pursuing a listing as soon as mid to late twenty twenty six. Time now some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's and Michael Barr Michael good Morning.
Good Morning, Karen. Accused United Healthcare CEO killer Luigi Mangione was back in the Manhattan court Tuesday for pre trial hearings on evidence taken when he was arrested in an Altoona, Pennsylvania, fast food restaurant last year. The court saw body camera video of his arrest from a year ago. Mangione's attorneys claimed that police searched him illegally and are fighting to
get key evidence seized from him thrown out. New York City Mayor elect Zoron Mamdani met with real estate leaders and members of the Partnership for New York City to tackle the city's issue of housing the homeless. Mamdannie says they discussed how to remove roadblocks that make building new units difficult and secure more federal aid for development.
The question, however, is whether we will be satisfied by just shuttling those New Yorkers to another equally cold place in our city, or whether we want to connect them to housing.
One New York Subway Writers says many homeless end up on trains. Get these people into proper facilities, not the subway. It's dangerous to have actions.
They could fall in the tracks, tents on the subway with traffic rush.
How is that going to work?
Mayor electmam Donne sparked some controversy after his comments last week saying that he would stop the NYPD from cracking down on homeless encampments. A suspect is in constaday after his shooting at Kentucky State University in Frankfort. Police say Jacob Lee Bard of Evansville, Indiana is not a student if already say Barred allegedly shot two students near a residence hall. Scott Tracy is the assistant chief of the Frankfort Police Department.
They were quickly transported to a local hospital for treatment by Frankfort Fire and EMS. Tragically, one has passed away from injuries, the other remains in critical condition.
Assistant Chief Tracy did not release a motive, except to say it stemmed from a personal dispute. Global News twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Michael laarm and this is Bloomberg Karen.
Thanks Michael.
Time now for our Bloomberg Sports Update, and for that we bring in John stash Hour.
Thanks Karen Orlando, and the next advance of the semifinals of the NBA Cup. The Magic beat the Heat one seventeen one oh eight. The Knicks one in Toronto won seventeen one oh one. Jalen Brunton scare thirty five e at twenty in the first quarter. Two big news items for the baseball winner Meetium is Kyle Schwarber is staying with the Phillies a five year deal for one hundred and fifty million. It hit fifty six on ONNS last season, and closer Edwin Diaz leaving the Mets to sign with
the world champion Dodgers. Forty four year old Philip Rivers coming out of retirement to sign with the Colts. That's to Bloomberg Sports Update.
Stay with us more from Bloomberg day Break coming up after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com, home and the Bloomberg Business app. This is Bloomberg day Break.
Good morning, I'm Nathan Hager on the morning before the final Federal reserve rate decision of twenty twenty five. Last time we heard from FED Chair J Powell at the October meeting, he was already talking about December. A further reduction in the policy rate at the December meeting is not a foregone conclusion.
Far from it.
Fast forward to today, markets do seem to think a cut is a foregone conclusion. The question now is what next? Joining us for more on this Bloomberg Markets reporter Valerie Titel, And that really is the question, isn't at Valerie? So many diverging views on what the Fed should be doing into twenty twenty six.
Good morning, Yeah, Good morning, Nathan, And just how will Powell do. How will he succeed on managing a consensus along this fractured committee. It is an unusually divided Fed
that we have at the moment. We have Stephen Myron on one side clamoring for a faster pace of rate cuts likely to dissent a larger jumbo fifty basis point rate reduction today, and then on the more hawkish side, we've had many regional FED presidents five in total who have voiced some unnies about eight cutting rates here in December, so we could be up for many of descents if we get more than four, Nathan. That's something we've really
not seen in modern FED history. But Powell has done a very good job as his tenure of FED chair at managing a consensus, but today he'll really be put to the test on that. To add to all of this, there is still the division that has been exacerbated by the lack of fresh economic data. The market and the FED is still waiting for November CPI November non farm payrolls. Really the last big set of data that they have is all the way back in September before the government
shut down. So just how will he manage a consensus around the fact that we are still in a data fog that is unlikely to clear for another two weeks.
So then what kind of message can we expect from Chairman Powell when it signaling what the path for policy could be into next year given that kind of fog.
So I think the market is expecting him to sound a little bit hawkish on next year. And the way he could possibly do that in a very subtle way, Nathan is by saying that, look, the last two FED cuts were a risk management exercise, and now that risk management exercise is coming to an end and we should slow down our pace of rate cuts. He very much framed the last two cuts in that way. It was a risk management exercise to protect the labor market aside
from inflation being above target at that time. Perhaps he will say that, you know, the risks to labor market and the risk to inflation are more balanced at this decision, and we need to slow down and wait for further clarity on the data. That could be kind of a hawkish hint to the market. But note, Nathan, the market is already really they've already really priced in a more hawkish FED today. If we look at how the money markets are pricing in rate cuts for twenty twenty six.
Heard it back by quite a lot in the month of December. We're only pricing in fifty basis points of rate reductions in twenty twenty six. At the beginning of December that number was closer to eighty basis points. We have seen a decent pairback in what traders thinks the Fed will do next year.
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News whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay in Performed all day long. I'm Karen Moscow.
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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