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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 a political move that is roiling markets this morning. President like Donald Trump has made his first specific threat to curb global trade flows since his election win. We get the details from Bloomberg's Doug Prisner.
In a post on Truth Social Trump said the US will impose an additional ten percent tariff on Chinese goods on top of all existing levies beginning his first day in office, and in a separate post, the president elect said he will impose a twenty five percent tariff on
all goods from Canada and Mexico. Trump framed these new levies as necessary to clamp down on migrants and illegal drugs flowing across borders, and the announcement came just after Trump tapped Scott Besson to be the next US Treasury Secretary. His selection was viewed is a sign of a more measured stance on tariffs in New York. I'm Doug Prisoner, Bloomberg Radio.
All Right, Doug, thanks, well, there's plenty of reaction this morning to Trump's tariff plans. Jennifer Hillman is the former General Counsel at the Office of the US Trade Representative.
I think again, you can expect this to be very, very transactional, and I think that's part of the reason for announcing it well before he's even in office. I mean, he is clearly looking for and I would say, you know, Canada and Mexico to come to him with offers of things that they can do.
Former General Counsel at the Office of the United States Trade Representative Jennifer Hillman made the comments on Bloomberg Insights with has Linda amin Well Caring.
The dollar rallied and Asian stocks fell as Trump's comments ratcheted up concerns about his America First policies. This morning, a China Foreign Ministry spokesperson was asked whether there are any plans for talks before Trump takes office.
Information to offer at this moment, but shall we remain open to gallog and communication in principle.
China's Foreign Ministry, reacting to Trump's comments, the offshore you on week into a four month low. The Mexican peso and Canadian dollar both tumbled more than one percent.
And Nathan Bloomberg News has learned shortly after Trump's post, Canadian Prime Minister Justin Trudeau contacted the President elect and the two leaders had a phone call to discuss border security and trade. Sources a Trudeau pointed out to Trump that the number of migrants who crossed the Canadian border into the US is minuscule compared to those who crossed from Mexico, well cairing.
The other major news coming out of Washington this morning is from the Justice Department. Federal prosecutors have moved to drop their two criminal cases against President elect Trump because he won the race. Bloomberg's Amy Morris reports from Washington.
In the court filing, special counsel Jack Smith says the Justice Department policy requires him to abandon the case. Smith was working to hold Trump criminally accountable for efforts to subvert the twenty twenty election and mishandling of classified documents. Smith's team also emphasized that the move to abandon their pross USANs was not a reflection of the merits of the cases, but a recognition of the legal shield that
surrounds any commander in chief. The team says it will continue to pursue cases against co defendants in the classified documents case. What is not clear is the fate of the state criminal cases still pending against Trump in Washington, Amy Moore as Bloomberg Radio.
All right, Amy, thank you now to the latest from the Middle East. And Israel and Hezbola may be getting closer to a size fire deal, even as both sides keep firing rockets and artillery at each other. Bloomberg'sdayna Chris reports Israel's security cabinet is expected to vote an agreement today.
This has come almost two months after negotiations have started. We were here about a month and a half ago in October when Israel agreed to a US and France proposal for ceasfire agreement, and then we saw Israel not backing this deal. So there could be some sort of backing out of the deal by Israel. There is some opposition among Israeli officials to that deal.
But if the deal passes, Bloomberg's Innacraser ports the US and France could announce it immediately. The latest proposal calls for a sixty day ceasefire where hez Below fighters had moved north of the tiny river, about nineteen miles from the Israeli border. Israel would reserve the right to respond if it sees hes below breaking the agreement. That part of the deal has gotten significant pushback well.
Turning back to markets now, Karen, As we mentioned, the dollar has been strengthening following Trump's latest tariff comments. Futures have turned higher as well. Stocks gained yesterday, fueled by the nomination of Scott Bessen to be of Trump's Treasury Secretary. Laurie Calvacina' head of US equity strategy at RBC Capital Markets, remains bullas she has a sixty six hundred price target for the SMP five hundred next year.
The sixty six hundred is the approximate median of those five different models than the outputs that they produced. There is a little bit of a range. At the low end, our valuation model, which also incorporates our earning testament, is getting this number a little bit below sixty two hundred or a pe at the end of next year on a trailing basis that would be about twenty two point
seven times. On the high end, our cross asset model is pointing to a twelve point seven percent return on the year, which gets us well above sixty seven hundred, So there's a little bit of a range there, but that's sixty six hundred we think is a really reasonable base case to focus on at this point.
RBC Capital Zori Calvicinas price target of sixty six hundred would be about a ten percent gain for the S and P five hundred from current levels.
Well, we turn to the economy now. Nathan in Minneapolis Fed President Neil cash Care retails Bloomberg that it is still appropriate to consider another interest rate cut at the Central Banks December meeting.
This is what I'm trying to understand right now is how much downward pressure are we putting on the economy and what is the path for inflation. But right now, knowing what I know today, you know still considering a twenty five basis point cut in December. It's a reasonable debate for us.
To have Minneapolis Fed President Neil Cashcar and officials or receive more data both on inflation and the labor market before their December meet up. The latest update on the FEDS preferred to price gauges will be released tomorrow.
In Company News, Karen Walmart is the latest business reversing course on diversity, equity and inclusion initiatives. The world's biggest retailer will no longer consider race and gender to boost diversity when granting supplier contracts, and will stop collecting demographic
data when assessing financing eligibility. Walmart joins at least ten other companies, from Deer to Boeing that have pulled back on DEI commitments in recent months as Corporate America reconsiders diversity policies in the wake of last year's Supreme Court ruling banning affirmative action in college admissions, and.
Nathan and Biden administration has finalized a deal to give Intel nearly seven point nine billion dollars in federal grants. That's the largest direct subsidy from a program to boost domestic semiconductor manufacturing. The agreement for the struggling chip maker, smaller than an earlier proposed award, means that Intel can begin receiving funds at it hits negotiated benchmarks on projects
in four US states. In another development, Bloomberg News has learned Qualcom's int in pursuing an acquisition of Intel has cooled, and Intel shares they are down about one in a third percent this morning time. Now for a look at some of the other stories making news in New York and around the world. And from that we're joined by Bloomberg's John Tucker, John, Good Morning, Yeah, Good morning.
Karen. The prosecutor oversees Wall Street stepping down. Manhattan US Attorney Damian Williams will resigned December thirteenth after three years. Let's get more from Bloomberg's Charlie Pellet.
It comes as the leadership of the office known as the Sheriff of Wall Street transitions to Donald Trump's new administration. The forty four year old Williams has announced he plans to step down. Deputy US Attorney Edward Kim will temporarily step into the top job after Williams leaves. Trump announced earlier this month that he will be nominating former SEC Chair Jay Clayton to lead the office in New York. Charlie Pellett, Bloomberg Radio.
Fifty thousand flights are set to take off nationwide today, the most of this busy holiday week for drivers. This Thanksgiving holiday triple ass more than seventy million are sent to hit the roads today. The good News gasoline prizes nationwide are at their lowest levels since twenty twenty one Republican lawmakers. They're calling on the Biden administration to preserve documents related to the proposed sale of US deal to
japan based Nippon Steal. They're expressing serious concerns that politics have tainted an ongoing national security review of the deal and raising the prospect of a congressional probe. And brothers Eric and Lyle Menendez were hoping for a December hearing to plead for their release after serving thirty five years for the nineteen eighty nine murders of their parents. Now the next hearing in Los Angeles is scheduled for late January, so it could be many months before the brothers could
be released. And the Macy's Thanksgiving Day Parade, a tradition that started a century ago, it remains one of the few spectacles that still draws on a big audience to broadcast teas. Now, according to the Wall Street Journal, airing it is going to get a lot more expensive. The paper says NBC, which has had the broadcast right since nineteen fifty three, is trying to hammer down a new deal with Macy's to keep the events on the network.
A new deal would kick in next year. With an average annual fee of more than sixty million dollars for around twenty million dollars in the current contract. Global News twenty four hours a day, whenever you want it with Bloomberg News Now. I'm John Tucker. This is Bloomberg. Karen.
All right, John, thank you. Time now with the Bloomberg Spores update, Bronty. If I try state and OUTI here's John Stanshawer, John, Good morning.
Good morning, Karen. The rare night when all five New York NBA and NHL teams were inaction, the hockey teams at home, the hoop teams.
On the road.
They both had impressive victories. The Knicks were in Denver. They are coming off a loss at Lowly Utah. With the Knicks against the Nuggets put on a show with sixty one percent shooting forty five assists, which ties the club record. The Nicks one going away one forty five to one eighteen for Ogiananobi, known more for his defense, a career high forty points. Karl Anthony Town scored thirty. Jalen Brunson had seventeen of those assists. Nets got thirty
one from Dennis Shrewder. Beat the Warriors one twenty eight to one twenty at the Garden Saint Louis Blues the day after making a coaching change, won the third period three nothing beat the Rangers five to two, just as the Devils one five to two in Newark over Nashville. First career hat trick for Nico Heastiere, it was the natural hat trick. All three came in the second period.
The Islanders at Ubs lost to Detroit four to two in La the Battle of the Harbod Brothers, and like the Super Bowl twelve years ago, johns Ravens one beat Jim who now coaches the Chargers, thirty to twenty three. Lamar Jackson two touchdown passes, another on the ground Derrick Henry one hundred and forty rushing yards. After the Giants Laiden egg Sunday and a lopsided loss at Tampa Bay, couple of Giants like Dexter Lawrence and rookie Melik Neighbors
both called the Giants soft. Coach Brian Daboll reacted yesterday, I.
Thought our guys played hard, go back in the value at the tape. There was certain plays that you want back, you know. We talked about some of the mistackles that happened offensively, some of the negative plays, particularly in the first half, and we had seventeen plays and you know that created some third longs that we didn't pick up, didn't control the time of possession. But the guys played hard, they play with effort, just didn't do enough.
Meanwhile, Daniel Jones now officially an ex Giant and a free agent, having cleared waivers, College oaps and Maui second rank Yukon upset and overtime by Memphis ninety nine ninety seven. The Huskies came in with a record during twenty twenty four of thirty one and one. John stashed We're Bloomberg Sports Candy Mean.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. President to like Donald Trump has given markets a jolt with his threat to boost tariffs on Chinese imports by ten percent and twenty five percent for goods from Canada and Mexico, and an effort to stop I League immigration and Fentanel trafficking. Michael Stroback is chief investment officer at lombard Odia.
Tariffs are messing up with the terms of trades of countries in ways that firms are not prepared for long term short term. Therefore you're on the losing end if you get hit by tariffs.
That's Michael Stroback with lombard Odia. Joining us now is Lindsay Newman, geopolitical risk expert and calumnist for G zero Media. As we've watched the dollar strengthen and the currency is affected by these potential tariffs, we can on the news Lindsay, good morning. Should markets see this as a threat or a promise from the president?
Delect morning, Nathan, Thanks for having me on. There should be very little that's surprising about Trump's overnight announcements. He has been telling us throughout the campaign that he planned to rely heavily on the lever of tariffs, particularly visa via China. And as I've been saying for years, when he lays out a policy platform, when he sells you his priorities believe him. So markets should be prepared for this, They should take it seriously. They now have two months
before he actually steps into office to prepare. What I think is telling here, though, Nathan, is that he's decided not just to go after China, but also he's looking very closely in his neighborhood with Canada and Mexico. And this has to telegraph that no country is likely to be immune to Trump's scrutiny to his lens. It also has to be seen within the context of the upcoming USMCA trade agreement, which is going to be reviewed in twenty twenty six.
Yeah, I wanted to ask you about how this could affect the USMC. I mean, during the President Elect's first term, he renegotiated NAFTA. I mean, how could a tariff threat like this fit in to the current trade agreement in North America.
Yeah, he took the NAFTA, which he said was the worst trade deal, and then he renegotiated the USMCA trade deal, which he seemed pleased with at the time. You know, you hit the nail on the head here, though. This is really about a negotiation. These are really about negotiation tactics, right. You know, we have to always remember this is Trump's way. The fact that he himself has announced this news rather than relying on Scott Descent.
His appointee to release this news.
He's telling us on Thanksgiving week over his social media platform with various capitalizations. You can't distinguish between. We have to distinguish, I should say, between the noise and the signal. The noise is the style. The signal here is that he intends to go to pursue this and use it as a negotiating tactic, including for the USMCA trade deal, which they have to review and decide whether the US
is going to look to unwind it. So that's going to be the end here to build in these sort of security provisions, the immigration provisions that are priorities for the Trump administration.
Is there noise around this announcement when it comes to the progress that the Biden administration says it's made around illegal immigration as well as fentanyl trafficking, particularly.
With China, there's absolutely noise here. But Trump has put this at the center of his platform. When we saw that he appointed Tom Holman to be Borders are when he's announced Stephen Miller as his deputy chief of staff. This is signaling that the Trump two point zero administration plans to move quickly on these issues. On immigration on Ventanyl, I fully expect him to have a host of executive actions in addition to the ones he's referenced overnight for
his signature on day one. And look, Nathan, we saw, you know, Bloomberg reported that Prime Minister Justin Trudeau saw the post on True Social and called up Trump. So it's working. This is the intended outcome here. These are negotiating tactics. It's an opening salvo.
So how can we expect China to negotiate, particularly given the current economic constraints at sunder got about thirty seconds left.
Yeah, I mean, we've seen the response to the posts where that China says are not looking to enter into a full phone trade war, and we have to expect, you know, there should be more room for carveouts, for example for Canada and Mexico, as we saw during the Trump one administration. Absolutely in Trump two point zero, Trump plans to pursue China and extend what he pursued during Trump one point zero and also with the Biden administration
carried out. We have to remember they did not roll back any of those Trump one point zero tariffs.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak