Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen will have more on the markets in a minute, but first, we have a major development in the race for the White House. The Colorado Supreme Court has ruled Donald Trump cannot appear on the presidential primary ballot in that state. We have team coverage beginning with Bloomberg's at Baxter.
The ruling, while at the same time pausing it to allow the US Supreme Court to rule. The Colorado Court set under the Fourteenth Amendment, Trump qualified as an insurrectionist and therefore cannot hold office, thereby taking him off the ballot. So among the issues for the highest court whether Trump is actually an insurrectionist and whether the Fourteenth Amendment refers
to the office of president. Trump's attorneys say they will appeal, and his campaign is issued a statement so reading verbatim here, Unsurprisingly, the all Democrat appointed Colorado Supreme Court has ruled against President Trump, supporting a Sorrow's funded li left wing group scheme to interfere in an election on behalf of crook of Joe Biden. For beatim from the statement ed Baxter Bloomberg Radio.
All right, ed, thanks well. The Colorado decision comes just weeks before the first votes will be cast in the Republican presidential race. Bloomberg News Managing editor Derek Wallbank continues, our team coverage.
Trump will be going before voters in the first primary state of Iowa, where they have caucuses, and Trump is right now well above fifty percent support in Iowa. He's got a thirty point plus lead in the polls, and so very soon the decision that was taken in Colorado will come into immense conflict with the state of Iowa, where he is right now polling like he's going to win.
And Bloomberg's Derek Wallbank notes those Iowa caucuses are less than four weeks away.
And former President Trump was back in Iowa last night, Karen. He didn't mention the Colorado ruling, but he did double down on anti immigrant rhetoric that's had members of both parties comparing his words to Adolf Hitler.
They're ruining our country, and it's true. They're destroying the blood of our country. That's what they're doing. They're destroying our country. They don't like it when I said that, and I never read mind com they said, Oh, Hitler said that in a much different way. Now they're coming from all over the world.
The former president made those comments at a stop in Waterloo, Iowa, at his own campaign fundraiser. Last night, President Biden warned donors that America could lose its democracy if Trump wins the White House next year.
Well, Nathan, we now turned to the latest developments in the Middle East. Israeli President Isaac Herzog says his country is prepared to agree to a second humanitarian pause in fighting in exchange for the return of more hostages held by Hamas, and Hamas says its top leader has arrived in Cairo for talks. Here's White House and National Security spokesperson John Kirby, we do support smaller, more localized, more targeted humanitarian pauses to get hostages out and to get
more aid in. White House National Security spokesperson John Kirby says Hamas still holds about one hundred and twenty nine of the two hundred and forty or more people it abducted in October.
Well, Meanwhile, Karen Ukraine heads into the new year with no guarantee of more USA lawmakers have been at an impasse over more than sixty billion dollars in fresh assistance. Now they have abandoned efforts to reach a deal before their holiday break. Here's Senate Majority Leader Chuck Schumer.
The bottom line, both Democrats and Republicans understand that there's more work to do to pass legislation protecting America's security and the security of the Western world.
Yeah that Senate Majority Leader Chuck Schumer. Republican lawmakers are demanding more restrictive border and immigration policies in exchange for war aid.
Well. Turning to the markets now, Nathan Stocks entering the day in record territory. Despite repeated warnings from policymakers reigning in expectations for rate cuts, both the Dow and the NASDAK closed at all time highsi yesterday. Atlanta Fed President Raphael boss Stick says he does not see urgency to lower rates next year.
I'm thinking if this is going to come down relatively slowly in the next six months, which means that there's not going to be urgency for us to start to pull off of our restrictive stands.
And like Atlanta Fed President Raphael Bostic, Chicago FED President Austin Golesby, and the Cleveland Fed's Loretta Mester are all suggesting that rate cut expectations are premature.
We'll talk of rate cuts in Europe. Is heating up, Karen after the latest Street on inflation there, Let's go to London and get the latest of Bloomberg's ewing parts.
Ewen, Nathan and Karen. A Christmas miracle for the UK government. Well, maybe not quite a miracle, but very welcome progress on the UK's inflation problem. Consumer prices rose three point nine percent in the year to November, down from four point six percent the previous month, at a much sharper slow down than forecast. The pound is lower on the news as trader's rampop bets on interest rate cuts by the Bank of England next year. A bit of festive cheer
for borrowers five days before Christmas in London. I'm une Pots, Bloomberg.
Radio, Craig, you and thank you staying in Europe. Shares of urgen x have lost about a third of their value in Brussels this morning. The Dutch biotechs only medicine did not help patients with a rare skin disorder. Depository receipts of our genicx trading in the US are plunging right now. They're down about thirty percent.
And shares of FedEx are down about nine and a half percent. Care in that company reported profit below analyst expectations. More from Bloomberg's Charlie Pellett.
Costcotts were not enough to make up for volume declines that the air freight and trucking units amid a lingering cargo recession. The company also lowered its sales forecast for the fiscal year ending May thirty first. This year's peak shipping season has been muted as consumers returned to stores and contend with inflation and higher interest rates, denting buying power in New York. Charlie Pellett Bloomberg Radio.
All right, Charlie, thank you. Futures pointing a touch lower this morning. S and P futures are down about a tenth of one percent. NASTAQ futures are three tenths of one percent lower. You're listening to Bloomberg Daybreak and Now with a look at some of the other stories making news in New York and around the world. Were joined by Bloomberg's Michael Barr.
Michael, thank you very much. Nathan. The cost of ensuring vessels that will transit the Red Sea jumped again this week after mounting attacks in the region forced some ships to avoid the vital waterway. Cover has now surged to about half a percent of the value of the ship's hull, according to experts involved in the market. That's a sharp increase from earlier this month, when costs were pegged at
around zero point one percent. It comes as the Pentagon established a multi national naval task force to protect commercial ships from hoothy missile and drone attacks in the Red Sea and the Gulf of Aden. Such attacks have escalated in the wake of the Israel Hamas War. State Department spokesman Matthew Miller.
There is no justification for these attacks on global commerce, and we hope the world will join us in condemning these attacks and working to stop them.
The task force, named Operation Prosperity Guardian, involves ten nations, including the UK and Canada. New York State is authorizing a commission to consider reparations for its role in perpetuating historic discrimination against blacks. Governor Kathy Hoko held a signing ceremony for the reparations commission.
It doesn't mean fixing the past on doing what happened. We can't do that, no one can. But it does mean more than giving people a simple apology.
One hundred and fifty years later.
Governor hokel says it is a key step in confronting the state's legacy of slavery and the resulting racial gaps in wealth, employment, housing, and criminal justice. Reverend Al Sharpton, this is a very historic day because it's the beginning of a process to repair a damage done. California launched the first state task force to develop reparation proposals for blacks. In twenty twenty, we're learning more about the cinnamon behind
hundreds of lead poisonings and linked to apple sauce. Cinnamon at a plan and an Ecuador, which manufactured apple sauce pouches now linked hundreds of lead poisoning nationwide, has now tested positive for lead concentrations thousands of times higher than what experts consider safe. FDA officials are looking into weather the cinnamon may have been intentionally contaminated by sellers looking to inflate the amount of money they could get for
the spice. Global News twenty four hours a day and whenever you want it with Bloomberg News now, Michael barn this is Bloomberg Nather.
Okay, Michael, thank you. Time for the Bloomberg Sports Update, brought to you by Tri stay down here.
Good morning, John stansh Ow, Good morning Nathan. Ever since the fourth snap of the Jets season on Aaron Rodgers tore his achilles, there's been constant speculation about a Rodgers return at some point. Yesterday, on ESPN, he made it all but official he won't make it back back. Rodgers admitted he's not one hundred percent. Said the hope is the Jets would make the playoffs without him and then
he'd returned. Jets have no chance to make the playoffs, but Rodgers indicate they'd like to play next year and the year after. He was effusive in his praise of his new team.
I've felt like when I came here that I got kind of a renewed passion and love for the game. And everything has been amazing here. Just the people have gotten to work, with the relationships I've got to form of my teammates and amazing men and women that work here at one Just Drive has been really special.
Jets QB Sunday, it will be either's Jack Wilson or Trevor Simmy and Wilson's and concussion protocol. NBA Celtics came in tied for the best record, Warriors still under five hundred, but Golden State one in overtime one thirty two one
twenty six. Steph Curry scored thirty three, Dammianlelard scored forty, Milwaukee be lowly San Antonio, Kevin Durant's forty not and off in a Phoenix loss at Portland, and Memphis by two at New Orleans on a game winning shot by John Morant in his first team with a season returning from a twenty five game suspension. Nixon Nets meet tonight in Brooklyn and Toronto Rangers third straight win five to two. Islanders beat Edmonton three to one. Flyers beat the day
and overtime. Bruins lost in ott to Minnesota, and the Columbus Bluejackets with their most goals in seven years a nine to four win at Buffalo. Top twenty five teams met in college groups, Memphis by twenty three over Virginia. John Stashedware Bloomberg sport.
From coast to coast, from New York to San Francisco, Boston, to Washington, DC nationwide on Syrias exam the Bloomberg Business app in Bloomberg dot Com. This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hager. It is another first in the norm breaking political career of Donald Trump. For the first time a court has found the former president ineligible to run again for the White House because of his actions on January sixth, twenty twenty one. This ruling from the Colorado Supreme Court under the Constitution's insurrection clause in the Fourteenth Amendment is now headed for a test before the US Supreme Court. And for more. We're joined by Terry Haynes,
the founder of Pangaepolicy. Terry, good morning, your reaction to this ruling?
Hi, Nathan, good morning. The thing to understand here is the sort of obvious this won't be over quickly. Firstly, the Supreme Court of the United States almost certainly takes this up because there are two federal rights that are implicated. First, Fourteenth Amendments insurrection clause, which has never really been interpreted by the court. But whatever else you can say about this ruling, state courts are not meant to be the
final arbiters of federal rights. So that you know this is going to go to the Supreme Court, who will take which will take it up just for the Fourteenth Amendment matter alone. And then there's a matter that the three descending Colorado justices three out of seven, So this is hardly the ut animous ruling or anything close to it.
The three descending justices point out, which is a Fifth Amendment due process claim, the idea that procedural due process needs to apply here, and whatever else you can say about the state process. What we're talking about here is the appeal of the in Colorado is the appeal of a state court trial ruling that in a trial had
that started less than two months ago. So the idea that such an important federal right as the ability to run for office can be can be ended in a state by a state court, you know, in a quick trial proceeding, is also something that I think the court takes up. In both cases, I think the the Supreme
Court overturns Colorado. But in terms of practical impact, this is the beginning of a lot of legal challenges, both on primary ballots, which is what Colorado is, and also proceedings to take Trump off the ballot in the general election and those haven't even really started yet. So sorry to go on, but complexity here.
Yeah, certainly.
Well, I want to ask you whether there is where there could be a difference for the Supreme Court when it comes to the question of primary versus general election ballots. I mean, that's a pretty significant difference, isn't it.
Yeah, it's a significan a difference. But in terms of the constitutional question, the constitutional question here is really the same. You know, firstly, the whether the candidate you're kind of what the scope of the Insurrection Clause is. And not only has the Insurrection Clause been around since, you know, just after the Civil War eighteen sixty eight, but one section of the Fourteenth Amendment is the Congress the sole ability to put laws together to interpret that and enforce it.
And Congress never really did that. That Congress kind of did the opposite. They engaged as the years went on and more and more amnesties of Confederates that were subject
to the clause. So you know, there's a situation where this part of the Constitution has never been interpreted by the Supreme Court firstly, and secondly, Congress has never really tried to enforce it in a in a consistent manner, so that that kind of cries out all by itself for a Supreme Court ruling here, because whatever else you can say about Trump or the insurrection claim or anything else, uh, it is you know, it's you know, the background that
I just cited here, the very quick trial, the perceived lack of due process by three Colorado justices, I think makes this a case ripe for the Supreme Court, and they've got really got to step in.
We lot, we have about a minute left here, Terry, but we know that the former president has been able to rally support around all these legal challenges he've been facing, with the Supreme Court potentially coming into this and deciding this constitutional question. What could that mean for democratic support from President Biden?
Well, I think it, uh, I think it firms it up a tiny bit. Firstly, deeconitely, you know, it makesh It'll be what will be the case that'll be made is that Biden, you know, needs to be the preserver of democracy and all the rest, and you know that'll have some some residents. The other thing I would say about Trump is really it's a fork in the road. On the one hand, you can see a supporters really feeling like he's his claims that he's being singled out
or validated. But on the other hand, it may cause voters in early primary states to seek an alternative. We don't know that, but we will in the next few weeks.
This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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