Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm John.
Tucker and I'm Karen Moscow. Here are the stories we're following today.
And Karen, let's begin with politics. President of Like Donald Trump has named his White House chief of staff. Let's get the tales this morning from Bloomberg's Doug Prisoner.
Susie Wiles will be the first ever female White House Chief of staff. She was one of the top architects of Trump's twenty twenty four presidential campaign. Wiles was widely credited with bringing order and discipline to the chaotic world that Trump often cultivates. In a statement, Trump called her tough, smart, innovative, and universally admired and respected. Wiles is the daughter of
famed NFL broadcaster Pat Summarole. She's been in politics since nineteen eighty, when she worked on Ronald Reagan's presidential campaign in New York. I'm Doug Prisner, Bloomberg Radio.
All right, Doug, thanks, So when of Trump's most highly anticipated cabinet picks will be treasure Secretary. We get more with Bloomberg Senior editor Bill Ferries.
There's a lot of names out there that'll be familiar to people. Scott Bessant of Key Square Capital Management. He has been a big, big advocate for Trump on the campaign trail, a big fundraiser, and a big critic of treasure current Treasury Secretary Janet Yellen. But there's also people like Jay Clayton, who was Trump's sec chair. There's Tennessee Senator Bill Haggerty and former US Trade Representative Bob Leitthheiser. John Paulson is out there. So it's a huge number
of names. I should also mention Canner FitzGeralds Howard Lutnik.
And Bloomberg senior editor Bill Ferries notes that Trump's first Treasury Secretary, Steve Minuchen, was one of the few in his cabinet who served out the full term.
Hey, Donald Trump says he has spoken with Ukraine's President Vladimir Zelenski since the result, but not with Vladimir Putin. Speaking at a gathering associate the Russian president here at his hopes for working with a new US administrations.
I do not want to comment now on what was said consciously during the election campaign. I think it was said deliberately in the fight for votes, but it does not matter what was said in the desire to restore relations with Russia to help end the Ukrainian crisis, in my opinion, seems to deserve at least attention. I would like to take this opportunity to congratulate him on his election as President of the United States of America.
Vladimir Putin's speaking through an interpreter on the campaign trail, Trump predicted he could end the Russia Ukraine conflict. The day after his election.
Well, John Trump has received a phone call from current President Joe Biden. Biden spoke yesterday at the Rose Garden at the White House.
Yesterday, I spoke with President elect Trump to congratulate him on his victory, and I assured him if I direct my tired administration to work with his team to ensure a peaceful and orderly transition.
President Biden also praised Vice President Kamala Harris, saying she showed great character and should be proud of her campaign.
And shock up another battleground state win for Donald Trump. He has defeated Kamala Harris in Nevada, flipping a state that previously backed Democrats in twenty sixteen and twenty twenty, and that brings the electoral count to two hundred and ninety five for Trump and two hundred and twenty six.
For Harris and John. Control of the House is expected to be decided by races. In the Western US, Republicans hold two hundred eleven House seats to the Democrats one hundred ninety nine. Democrats hope to flip seats and races across California, Arizona, and possibly Oregon, but Republicans are showing leads and enough races to take a narrow majority. Back
eastern Pennsylvania, the GOP flipped two key races. Rob Abresnahan defeated incumbent Democrat Matt Cartwright fifty one to forty nine percent in District eight, and Democrats Susan Wilde lost this seventh district to the GOP's Ryan Mackenzie fifty point seven percent to forty nine point three percent, And in the tenth district, Republican Scott Perry held on to defeat Democrat Janelle Stellson fifty to forty nine percent. Control of the House likely won't be called until next week.
And meanwhile, in New York, Karen all House races they have been called, with a couple of districts flipping in democrats favor. Loren Gillen defeated the incumbent Republican Anthony de Esposito in New York's fourth district fifty point nine percent to forty nine point one percent. A Democrat, Josh Riley, secured victory in the state's nineteenth district, defeating Republican incumbent Mark Bolanaro fifty point five percent of forty nine point five percent.
Meanwhile, in the GOP controlled Senate, john Republicans widen their majority to fifty three seats, as former Bridgewater executive David McCormick defeated a longtime incumbent Democrat, Bob Casey in Pennsylvania forty nine to forty eight point five percent. Casey, who sald the seats since two thousand and seven, is Pennsylvania's longest serving Democrat ever in the Senate. It was one of the most expensive Senate races this cycle.
And there's other election cent Levi's air. Daniel Lourie is set to become the mayor of San Francisco after spending more than eight million dollars of his own money to position himself as a political outsider who could best tackle the city's homelessness, drug and crime problems. A winner hasn't been officially called, but incumbent London Breed did concede the election last night.
I palled Daniel Lurie earlier today to congratulate him and made it very clear that my team and I stand ready to support him during his transition.
The preliminary results showed LORI had one about fifty six percent of the vote under the city's ranked choice voting system, compared with breeds forty four percent and a disclaimer. Michael Bloomberg, the founder of majority owner Bloomberg LP, donated one point four to five million dollars in support of Breed's re election campaign.
Well John Federal Reserve chair J Powell has made clear he's ready to defend the Central Bank from political pressure after the reelection of Donald Trump. Following the FED unanimous decision to cut rates by a quarter point, Powell was repeatedly asked in his press conference about his position under the incoming administration.
Some of the president's elects advisors have suggested that you should resign. If he asked you to leave, would you go?
No?
Can you follow up on do you think that legally you're not required to leave.
No, do you believe the president has the power to fire or demote you? And it has the FED determined the legality of a president demoting at will any of the other governors with leadership positions.
Not permitted under the law. Not what not permitted under the law?
Not. Trump told Bloomberg and June that he might want more of us, say in interest rates, though he added he let Powell serve out his current term, which ends in twenty twenty six.
Let's turn to the markets. The futures right now, they are mixed to little change following another record close on Wall Street gues some P five hundred gained seven tenths of a percent, the Nasdaq one hundred climbed one and a half percent at the closest today. Amanda Gotti, the chief investment officer P and C, says the market rally is going to continue.
Typically post election results, we tend to get some nice talwins out of the market because there's just some certainty out of what happened with the election. But the reality is there isn't going to be that much that gets done over the next six weeks.
It's just this idea that.
The Trump trade or the Trump bump is going to be very focused on the potential for cutting corporate tax rates, rolling back regulations, and so on and so forth, and so the market is just really excited, if not giddy, about that.
P and C Chief investment Officer Amanda Gotti notes the S and P five hundred finished with its forty ninth record this year.
Well, John investors are not too impressed with China's latest attempt to support the economy. There shiny is stocked and the yuana kline after authorities announced a one point for a trillion dollar program to refinance local government debt. Beijing is rolling out more measures to support a slowing economy facing new risks from the reelection of Donald Trump. And it's time now for 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 Amy morris Any. Good morning.
Leaders of Israel and the Netherlands are condemning what they called anti Semitic attacks on fans of soccer club Makibi Tel Aviv before and after a Europa League soccer match. The violence erupted despite a ban on a pro Palestinian demonstration near the soccer stadium. Five people are hospitalized, more than sixty are detained. Declared's details are not clear, but Israel ordered two planes be sent to the Dutch capital
to bring those Israelis home. A rapidly growing brush fire in the LA area has burned out of control, destroying homes and triggering evacuations northwest of Malibu. Ventura County Sheriff Jim Freihoff.
To date, we've evacuated over four hundred homes, two hundred and fifty residents choosing to stay and protect their homes, and there were eight hundred homes no one was home still, assuming they had either left before we arrived, were at work, or otherwise out of town.
Hundreds of firefighters of battling the blaze. More than fourteen thousand evacuation orders are sent. The FBI says it's in touch with the Justice Department over racist text messages sent to block Americans across the country. The texts, which were sent anonymously, addressed the recipients by name and told them they'd be selected for quote cotton picking. Some of the messages referenced President elect Donald Trump. His spokespeople say they
have nothing to do with that. A Detroit resident named Renee received one of the texts a plantation to send us back to a plantation.
Great uncalled.
And now CBS News is reporting some of those texts were sent to a voicemail identifying them as users of text Now, a provider that allows users to create phone numbers for free. The service says it has shut down those accounts. Global News twenty four hours a day and whenever you want it with Bloomberg News Now, I'm Amy Morris and this is Bloomberg.
Let's get the sports update. And for that, here is John Stasher at John Good morning, all right, good morning.
John Wild Thursday night game to kick off Week ten Bengals Ravens and AFC North battle in Baltimore that saw Cincinnati go up by two touchdowns. Baltimore rallied second half, had a Lamar Jackson eighty four yard TV pass and then a Joe Burrow seventy yard and a Jamar chase. Those two hooked up with thirty eight seconds that since he decided to go for a game winning two point conversion, but rather than the extra point in overtime incomplete pass
Baltimore one thirty five thirty four. Both the QBS through four TV passes. Three of burrows went to Chase who had two hundred and sixty four yards in reception.
Jackson now ten.
In one lifetime against Cincinnati. Next game up Sunday morning, New York Times Giants and Carolina in Munich. Giants flew out yesterday, and before they did, Daniel Jones recalled his previous trip to Europe.
We're excited to go over there. I think, you know, just the one experience I have to look back on as the London trip and just you know how how much energy and excitement there was in that stadium and the fans and how into it they are. You know, that was a really really cool experience.
Giants won that game two years ago with the Packers. That was part of a six and one start to that season. Since then, the Giants had twelve wins twenty five losses. That the Garden very much an off night three gor says Turk, and gave it five goals midway through the game, got pulled Buffalo all over the Rangers six to one, Islanders beat out of a four to two Devil's beat Montreal five to three Bruins and overtime
win over Calgary. Nick to Night hosts Milwaukee Nets are in Boston, and the seven to one Warriors visit nine in Old Cleveland. Johns Stasheward Bloomberg.
Sports Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business at This is Bloomberg Daybreak.
Hey, good morning, I'm John Tucker. Of course, the battle for control of the House still hasn't concluded, but a red sweep does look more and more likely after Donald Trump's election victory, and also Trump picks his chief of staff. Let's get around up with the late election related stories this morning. Stephanie Baker, Bloomberg News senior writer, is joining us this morning. Always a pleasure, Stephanie. If there is a red sweep in the House, what kind of majority
are we looking at right now? If it is a slim majority, does that actually narrow the scope of what can pass?
Really good question.
It does look like of the remaining uncalled seats, the majority are leaning Republican.
We'll see how that shakes out.
That they could have at least a handful of seats for the Republicans. A slim majority, but enough to get their agenda passed. And let's face it, this is a huge sweep by the Republicans control of the Senate, likely control of the House, and a Supreme Court where Donald Trump has chosen and picked several of the judges. So I think this is going to give Trump quite a wide mandate and quite sweeping powers to get his agenda across.
Just for the tally so far, the GOP holds a two hundred and eleven to one ninety nine edge in a House races that those of that have been called so far to eighteen is the majority. There are a number of people, including Speaker Johnson, who says he's a free trade proponent. Back to the agenda, is it really clear sailing for the Trump agenda if this pans out.
I think what Trump has said he wants to do is going to be harder to do in practice. He said he wants to deport a million immigrants on day one. I think that's going to be very hard just practically to carry out. He wants to impose sweeping tariffs. Now you know, under the Constitution, the Congress has a mandate to control tariffs, but they are also statutory regulations that
give the president authority to do that. Under the International Economic Powers Act, which is the Act that the Biden administration has used to roll out sanctions against Russia, Trump could use AIPA at this Act to roll out tariffs. Whether or not he will face opposition from Republicans in Congress for his tariffs that in a way that would stop him from going ahead with this, I don't know.
I think we're going to definitely see tariffs on some level, whether or not they'll be as sweeping as Trump has talked about remains to be seen.
As Chief of Staff, is Susie Wiles's calming, reasonable voice in this administration.
It's a really interesting pick. She's the first woman to hold that position. She's been a very quiet figure. She's not on social media much, she's not a regular on Fox News, and she's not a Washington insider, So that could spell trouble for her going forward. With Republicans likely in control of both houses of Congress, that might not
matter as much as it would in the past. She has remained as Trump's campaign chairman throughout the campaign, which was not the case last time around, which shows that she does have staying power, and she was applauded for having brought order to the Trump campaign. She may not have been able to control Trump the candidate and his messaging, but she ran a very tight operation, and I think that's indicative of what she'll bring to the White House.
Way too short of visit, Stephanie Baker, Bloomberg News Senior writer, Thank you very much, Karen well John.
We now want to bring you our discussion with our investment CEO, Kathy Wood. She joined Tim Stenoveek on Bloomberg Business Week discussing what a second Trump term means for investors and how it could reshape the financial industry. They began with a question on the regulatory environment in the US.
Let's listen in the regulations that have been creeping into the system. Actually they started to creep in. They've just flooded the system and really gummed it up. So the first the biggest regulatory issues have been around the SEC, especially when it comes to digital assets or crypto legislation and the FTCs as it relates to M and A activity, I think both they are going to be big changes there and that is going to be the beginning. I
think of a lot of regulatory changes. In his first administration, President Trump basically said for every regulation you want to introduce anyone in my administration, you must get rid of too. I think it's going to be maybe more dramatic than that this time around. And I also think having having Elon Musk, who I think today announced that he'd like to name a new department, the Department of Government Efficiency. Get that, Doge doage he I think he's going to
come into the administration. I don't think he'll be a formal part of the administration. He'll be more in an oversight role the more as I understand.
Yeah, well, hey, Kathy, I want to jump in here because you mentioned a few things that I want to follow up on. What is Elon Musk? Have you talked to Elon since the election?
No?
I have not talked to him since the election. I did see on X that he was part of the family as they were taking the picture around President Trump's acceptance speech, So you know, I know he's obviously had a tremendous impact on.
The election.
I think he had X made a big difference, and his ideas around government efficient, which will revolve importantly around technology. Artificial intelligence is doing wonders for the most bureaucratic organizations out there. We know from Pallunteer that it is having a tremendous impact on insurance companies, underwriting process timelines dropping from two weeks to three hours. And even in the military MAVEN pallunteers working on MAVEN with the DoD for
targeting the enemy, they have shrunk that department. They don't need as many people. They've gone from twenty to twenty people, which it's pretty amazing what's going on. And I think we'll see a lot of attrition. Any employee leaving the government probably will not be replaced. I don't think he'll I just I don't think he'll do two trillion dollars
in government spending savings in one year. That might be a five to ten year And I think between technology and attrition and lower regulations, maybe the abolition of certain departments that they'll go a long way.
So you don't see him serving a formal role, but still overseeing some sort of department of government efficiency in an informal way. Help me understand what you see him doing and whether or not it could be some sort of threat to you know, he's a very busy man.
He is the inventor of our age, and he comes into a problem, assesses it with first principles thinking, doesn't care how things have been done, and comes back with, you know, ingenious solutions to big problems, whether it's autonomous mobility, in the autonomous taxi space.
Or in.
The healthcare neuralink. He's in the social network space X in AI XAI, and a lot of people say and SpaceX of course the entire exploration going to Mars. I think a lot of people are I can't believe he can do this, But again, he cuts to the quick, first principles thinking and surrounds himself with brilliant people, people who really want to solve the hardest problems in the world.
And that's part of the secret to his success. Very high standards and people who want to be held accountable to very high standards and want to really transform the world.
Hey, we're going to get back to Elon and specifically Tesla in a few minutes, but I want to go back to something that you mentioned at the top of our interview, Kathy, and that's the idea of some of the regulatory challenges that you said have cropped up over the last couple of years and during the Biden administration specifically with regard to the FTC and the SEC not being present the second Trump administration, how do you think
the Trump regime will approach financial regulation given that he's bound to replace SEC Chair Gary Gensler, What does that look like?
I think, first, as it relates to crypto or digital asset regulation, they're going to replace Gary Gensler with someone who is much more open minded, I would say, and will let the legislative process work go to work. And the SEC is supposed to regulate and force laws. They're not supposed to create laws by enforcement, which is what Gary Gensler was doing. So I think that's going to
be important. I also think if you look at the public equity markets, I think the number of public companies out there right now has been cut in half in the last fifteen twenty years. The regulatory nightmare of being a public company has kept people, has kept leaders of companies basically saying if I don't have to go public,
I am not going public. And so I think we're going to see a lot more work in that regard to give you the average investor a shot at some of these moonshots, so I think that's going to become very important.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed by six am Eastern each morning, on Apple, Spotify, or anywhere else you listen.
You can also listen live each morning starting at five am Wall Street Time on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg ninety two nine in Boston, and nationwide on serious XM Channel one twenty one.
Plus listen coast to coast on the Bloomberg Business Now with Applecarplay and Android auto interfaces.
And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now and your favorite podcast platform to stay informed all day long. I'm Karen Moscow.
I'm John Tucker. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg day Break