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Good morning, I'm Nathan Hager.
And I'm Karen Moscow. Here are the stories we're following today. We begin with breaking news out of Russia. Ukraine has carried out its first strike in a border region within Russian territory with a US made missile. This is according to RBC Ukraine, citing an official in the nation's military. The news came as Russian President Vladimir Putin approved a change to the country's nuclear doctrine that allows for the
expanded use of weapons. According to a document published by the Kremlin, the updated doctrine includes a possibility of a nuclear response to aggression by non nuclear states that is supported by other nuclear powers.
And beget more from Bloomberg's Bill Ferries.
Throughout this, you know, throughout this conflict, we've seen him raise the specter of nuclear weapons as a thread against the West.
It's worth noting that.
You know, it's if China has any real red lines and its support for Russia, one of them has been no first use of nuclear weapons. So if Putin went that far, there'd obviously be a whole range of consequences, but he would potentially be putting his biggest backer in a very difficult position as well. But I think, yes, I think this latest maneuver. I think it's his way of providing a response, a quick response to what appears to be Ukraine's use of these weapons now.
Bloomberg's Bill Ferries ads that the changes also say Russia may use nuclear weapons upon receiving information about a launch of ballistic missiles attacking Russia or its allies.
And staying with geopolitics, Karen, Day two of the G twenty Leader Summit gets underway this morning in Brazil.
Bloomberg's David Gora is there.
With the latest US President, Joe Biden is focused on his legacy and on the work he's done and continues to do on climate in the war in Ukraine. But Biden has only a few weeks left in office before Donald Trump returns to the White House, and that has diminished his role here at the G twenty summit in Rio de Janeiro, Biden is not holding many one on one meetings with other world leaders, and he seated much
of the spotlight to other heads of state. Biden even missed the G twenty photo shoot, a highly choreographed moment along with Prime Ministers Justin Trudeau and Georgia Maloney. David Gura Bloomberg Radio shandio.
All right, David, thank you back here in the US. President like Donald Trump, may be getting closer to a decision on the next Treasury secretary, sources Tol Bloomberg News.
His team is thinking of pairing Kevin.
Worsh in the Treasury role, but Scott Bessen as head of the National Economic Council. Bloomberg's Ferry Valerie Titel has more on Worsh.
He is a former FED governor. He was also rumored to be picked for the FED chair in twenty seventeen, but Trump was swayed by his then Treasury secretary to go for Powell instead, a move that he has said that he now regrets.
Plumber's Valerie Tiitewer reports there's some concern about whether Warsh would be loyal enough to Trump's economic agenda. He wrote a twenty eleven op ed with Jeb Bush warning of the quote rising tide of economic protectionism. Meantime, Nathan, there are more signs one of Trump's confirmed cabinet picks will
face a tough confirmation process. Senators from both sides of the Aisle are demanding more information on the House Ethics probe and to Matt Gates, Trump's choice to be Attorney General. Gates is accused of sexual misconduct and illicit drug use, though he's denied wrongdoing. Speaker Mike Johnson insists the panel's report should be kept confidential.
To use the House's resources in a manner that is virtually unprecedented, I think is a breach of protocol.
Still, the top Republican on the Senate Judiciary Committee says he expects the women who spoke to the Ethics Panel behind closed doors will testify before them.
The committee will.
Meet tomorrow to discuss how to handle its report. Axio supports President elect Trump has been calling senators personally oring them to support Gates and Karin.
The president's elect has also confirmed his plan to use the US military as part of a mass deportation program. We get more on that from Bloomberg's Amy Morris.
In Washington, Trump wrote true on his Truth social network in a reply to a post from the president of the conservative legal group Judicial Watch, who said Trump was reportedly prepared to declare a national emergency and use military assets for a mass deportation program. While on the campaign trail, Trump did pledge to secure the border with Mexico by finishing construction of a wall and carrying out mass deportations. Trump and his team have not outlined how they'll carry
this out. It will take substantial funding from Congress and cooperation from other countries. It may face legal challenges in Washington. Amy Morris Bloomberg Radio.
All right, Amy, thank you well.
Hedge Fund titan Ken Griffin says he's quote very anxious about Donald Trump's potential tariff policies. Speaking to the UK's Oxford Union, the Citadel founder and Publican donor said tariffs are a long, slippery slope that can be profitable in the short run, but damaging to US company's ability to compete.
Globally in the long run.
Morgan Stanley's CEO also voice concerns about the changing economic environment for business. Here's what Ted Pick told the HKMA Global Financial Leaders Summit.
In a sense, there is an inflationary backdrop, and there is now the additional complication of the potential for tars and actually net emigration also would be inflationary.
As for geopolitics.
Morgan Stanley's Ted Pigs said there was still need for a greater transparency in Chinese regulations and policymaking.
But on Legal news, top anti.
Trust officials said the Justice Department have decided to ask a federal judge to force Google to sell off its Chrome browser. Begin more with Bloomberg's Doug Chrisner.
We're told the DOJ we'll ask federal judge Ahmic Meta to also require measures related to artificial intelligence and Google's Android smartphone operating system. Meta is the same judge who ruled back in August that Google illegally monopolized the search market.
The DOJ officials, along with states that have joined the case, also plan to recommend Meta imposed data licensing requirements, and if Meta accepts these proposals, they have the potential to reshape the online search market and the developing AI industry. By the way, this case was filed under the first Trump administration and continued under President Biden. In New York, I'm Doug Prisner, Bloomberg Radio.
Doug, thank you. We get earnings this morning from the world's biggest retailer. Bloomberg's Tom Busby's here with the preview on what investors are looking for from Walmart.
With a lot of Americans pulling back on their discretionary spending this past quarter, investors expect Walmart's core shoppers and newer, higher earning customers to give a boost the sales of groceries and other essentials. Also in focus the outlook for holiday spending and consumer health. Bloomberg consensus calls for comp sales at US Walmart stores to rise one point two percent, so one hundred and sixty seven point five to one billion, and adjusted earnings per share of fifty three cents.
Tom buzzby Bloomberg.
Radio, All right, Tom, thanks.
Another company News shares a super a super Micro computer searching twenty nine percent in the pre market. The server maker says it has hired a new auditor, Bdousa, and found a plan to come into compliance with Nasdaq listing requirements. Super Micro is facing a Department of Justice probe, and last month it's auditor, Ernst and Young resigned, citing concerns over super Micro's transparency and governance. Shares of tumbled more than eighty five percent from a peak in March.
And Karen Blackstone may be hungry for an acquisition. Bloomberg News has learned the New York based money Manager's close to an agreement to buy the sandwich chain Jersey Mike's for about eight billion dollars, including debt.
Five thirty two.
On Wall Street, we bring in John Tucker now with more. What else is going on to New York and around the world?
John, Yeah, Good morning, Karen. New York City has issued its first drought warning and twenty two years. It comes after months of little rain and is going to restart the flow of drinking water from an out of service aqueduct as supplies run low. Dry conditions across the Northeast
have been blamed for hundreds of brush fires. They'd already prompted New York City and state officials to implement water conservation protocols, where Mayor Eric Adams upgraded the drought warning and temporarily halted an aqueduct repair project that had stopped drinking water flowing from some reservoirs in the Catskill region. A stabbing rampage has left three people dead in Manhattan. It happened yesterday morning. Please say the attacks were random.
A fifty two year old suspect is now in custody. Investigators are working to understand what propelled the rampage, which happened within two and a half hours. It happened across a Swatha, Manhattan, with a third fatal stabbing by the United Nations. The US is planning to make a huge investment at a new semiconductor research institute. Let's get more in this report from Bloomberg's Jeff Bellinger.
The institute is a total one billion dollar investment. It will be headquartered in North Carolina and run by Semiconductor Research and Industry Consortium. It will receive funding from the twenty twenty two Chips and Science Act. The latest investment has the goal of reducing the cost and time of chip development by roughly a third. The Commerce Department says
within five years. The new institute will help speed technology development, reduce the greenhouse gases associated with chip manufacturing by twenty five percent, and train more than one hundred thousand students and workers on digital twin technology. Jeff Bellinger Bloomberg Radio.
Ahead of Friday's hearing on his bail, prosecutors claim that music mogul Sean Ditty Combs has been trying to contact witnesses and victims from behind bars, accusing him of trying to influence the jury pool and subvert his criminal case. Prosecutors say he offered to pay one witness if she would make a public statement of support and managing the virtual world of Roblox says becoming easier for parents with the latest platform updates, popular on game environment for kids
rolling out new parental controls. Parents can now remotely change how much time their kids are playing on the platform, locked private messaging options, or even choose maturity levels that their kids are experiencing. Roadblocks is also turning off private messaging for kids under the age of thirteen. Global News twenty four hours a day and whatever you want it with Bloomberg News Now. I'm John Tucker. This is Bloomberg Karen.
All right, John, thank you.
Time now for the Bloomberg Sports Update, brought to you by Tri State Audie. Here's John stash Hour, John, Good morning.
Good morning, Karen. It was a couple of years ago that the Giants had to make a big decision, give the big money to Daniel Jones or Saquon Barkley.
They chose Jones. The decision has not gone well.
Barkley's now with Philadelphia, candidate to be the NFL MVP. Jones is now the Giants third string quarterback. Coage Brian Daboll has put them on the bench Sunday against Tampa Bay. OINGQB will be Tommy DeVito.
We're obviously not playing the way any of us want to play, and that's on all of us. But felt like this was a decision that we needed to make here and try to spark things, change things up, and you know, we went and did it with with Tommy Again. We spent a lot of time here over the last week of evaluating a lot of things and just felt like this was the best thing for us.
DeVito did create a buzz last season when Jones was injured in New Jersey, kid living with his parents led the Giants of three straight wins. Drew Lockwell remain the backup QB. Jones cashed in into a strong twenty twenty two season, but since then thirteen interceptions, a three and thirteen record of the Giants this year two and eight, oh and five at home. Dallas Cowboys not much better
three and seven, also and five at home. They're without their QB, Dak Prescott, and they just lost to Houston thirty four to ten. Joe Mixon three touchdowns for the Texans at the Garden, Knicks put up forty points to the first quarter. The route was on one thirty four to one oh six over a Washington who's lost nine in a row. The Nixts begin of five game road trip tomorrow in Phoenix. Rangers are on the road play
tonight in Vancouver. The Capitals won six two at Utah two goals for Alex loveskiin Bruins fell one hundred five hundred lost at home to Columbus five to one. Luise Hill is the first Yankee pitcher to win Rookie of the Year since Dave Righetti in nineteen eighty one. He made it to the rotation due to Garrett Cole's injury, and he stayed in by winning fifteen games. Pirates Phenom Paul Skein's a runaway choice in the National League.
The Hall of Fame ballot is out.
Among those on it for the first time, I Chiro Suzuki and C. C. Sabathia, John Stashawa, Bloomberg Sports, Karen.
Denethan, all right, John, thank you, and the Bloomberg Sports Report, Bronci you buy Audi, Visit your Tri State Audi dealer today and get behind the wheel of the Audi model you've always wanted.
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.
We are seeing a risk off move in the market this morning with reports that Ukraine has carried out its first strike inside Russia with Western supplied missiles. That says Russian President Vladimir Putin has signed a new decree allowing for expanded use of nuclear weapons in response to a conventional attack. Let's bring in Bloomberg News Director for Europe, the Middle East and Africa, Rosalind Mathieson for more on this,
along with Bloomberg News Senior editor Bill Ferries. It's good to have you both with us this morning as we continue monitoring these developments in the Russia Ukraine war Roz. What do we know first of all about this reported strike using Attackem's missiles.
Well, what we have a Ukraine media report saying that hey kV did in fact carry out its first strike using these attackers army tactical missile systems on an ammunition dump in an area that's just pretty much over the border, about seventy seventy five miles from the border between Russia
and Ukraine. So a limited action, if true, and in line with what we were hearing beforehand in terms of the US authorizing the use of these weapons for some long range strikes inside Russia, to say that they had to be kept at least for now, very much in those border areas. And these are parts of Russia where Ukrainian troops have been on the ground inside Russia fighting Russian forces, So in the realm of what you would think of as the theater in a way of this conflict.
So would be a limited move, if true, but also quite quick off the back of that announcement from the US that they are going to give our Ukraine permission to use these weapons on Russian soil.
And it comes bill as I just mentioned that it so happens that Russian President Vladimir Putin has signed this decree new nuclear doctrine for Russia. Can we see this as a response to the Western supply of these longer range missiles for Ukraine.
Well, I think you the sense that he's he's published this this document detailing a little bit more of Russia's policy. I mean, this is something he talked about in September, and we have seen since the beginning of this conflict a lot of Russian saber rattling. You'll remember it was in the spring of twenty twenty three when Putin announced that he would be moving some tactical nuclear weapons, battlefield nuclear weapons into Belarus, which was a highly unusual move.
But throughout this, you know, throughout this conflict, we've seen him raise the specter of nuclear weapons as a thread against the West. It's worth noting that, you know, it's if China has any real red lines and its support for Russia, one of them has been no first use of nuclear weapons. So if Putin went that far, there'd obviously be a whole range of consequences, but he would potentially be putting his biggest backer in a very difficult
position as well. But I think, yes, I think this latest maneuver, I think it's his way of providing a response, a quick response to what appears to be Ukraine's use of these weapons now.
And RIZ up to now.
This has come at a time when there's been a pretty breakneck effort by outgoing President Biden to shore up support for Ukraine. Ukrainian President Vladimir Zelenski has been talking about once President elect Trump comes in, there's probably going to be a quick end to the war in some way. How could these latest developments sort of alter the calculus going forward.
Well, the latest developments at least if this missile strike is confirmed, it doesn't tangibly change the trajectory of the war on the ground, although obviously being seen as an escalation, and we can see that in the retoric from Russia today is Bill was saying the timing of the announcement on the nuclear doctrine that Vladimir Putin had signed, it is interesting even though this is a doctrine, they were talking about a change to what months ago. So the
details themselves are not new or surprising. So escalation there, but also really you see Russia and Ukraine both trying to position themselves to be in the most advantageous position, you know, for the reality of that negotiations or talks likely, you know, Russia will have to feel that it's in their best interests to talk and to get some kind.
Of negotiation going. Ukraine needs to be in the strongest position.
That's very much the messaging that's coming from Ukraine's allies publicly at this point, a recognition that military and financial aid will start to slow, particularly from the US, and so the positioning is going on. You can see that from both Russia and Ukraine, and that's likely to be very much the case over the next couple of months until we have the Donald Trump back in the chair as president and Bill.
Of course, this is coming at a time as well when we've seen North Korean troops move alongside Russian forces on the front lines. President Biden was saying that this authorized use of long range missiles was a reaction to that as well. Where could we see this conflict go in the short to medium term as we are in the midst of this Trump transition.
Well, right, I think the North Korean the North Korean troops are also a game changer in this situation. I mean, you have intelligence reports saying that while there's ten thousand North Korean troops in Russia now preparing to fight against the Ukrainians, there could be through rotations as many as one hundred thousand over time. That's a huge advantage to Russia in terms of replacing troops in in terms of
potentially expanding the battlefield. As ros said, I think both sides are going to be intensely jocking for all the leverage they can get at this point. For Ukraine that means holding as much of that cursed region of Russia that it captured earlier this year. I think for Russia it means pushing in across the entire front, and if they can do that with North Korean troops from their.
Perspective, all the better.
So I think, you know, the West has seen this arrival of North Koreans as an escalation, just as Russia sees the use of these attack em missiles as a separate escalation.
Here speaking with Bill Ferry, senior editor for Bloomberg News, and Rosalind Mathison, our news director for Europe, the Middle East and Africa, Roz. Since we've seen this decree signed just this morning by Russian President Vladimir Putin, it's worth going into detail on what the significance is of this change in the nuclear doctrine for Russia. How big a change is this From what we understand from the decree.
Well, it seems to be around the parameters of what Russia would say you know, allows it to respond with the use of nuclear weapons. And one is a very large scale and how do you define that conventional attack on Russia. That's quite a broad church there, potentially. And secondly that an attack on Russia by a non nuclear state ie Ukraine, backed by a nuclear state i e. The US, would be seen as a joint attack on Russia involving a nuclear state, and thereby a condition that
could allow Russia to respond with nuclear force. And so some of the conditions that they would say, you know, are laid out for themselves for when they could use a nuclear weapon. But we've seen throughout this conflict, you know, as Bill was saying earlier, Russia has said repeatedly or quite quite regularly throughout this raise the prospect of using nuclear weapons at each step of the escalation it says that comes from Ukraine or others, the use of certain
types of weapons or something. They say, well, we could possibly use nuclear weapons in response, and obviously that's not happened. So how much of it is saber rattling, you know, obviously remains to be seen. But certainly it gives them, at least on paper, some further parameters for which they could use nuclear weapons, and.
It remains to be seen. I suppose Bill, how NATO could react, how the incoming Trump administration could react to this as well, with this transition under way. But what can we sort of glean from how NATO has been preparing for this kind of change and trying to show continued support for Ukraine. How NATO could respond to this shift in the Russian nuclear doctrine.
Well, I think, you know, some of the starting to be potentially conflicting messages we're getting here. You have the US saying it's basically the Biden administration is saying they basically want to shovel all the money and weapons that they've promised Ukraine out the door, get them in Ukraine
before Donald Trump takes office on January twentieth. And then you have some messaging from Europe now about you know a little bit of pressure coming from European leaders from NATO leaders about you know, where is this headed and can we start to see the outlines of some kind
of a truce or a de escalation. Here you have President Erdowan airing some details about his peace or truce proposal, and you have this, you know, this call the other day between German Chancellor Olaf Schultz and Vladimir Putin is the first real communication at that level in about two years. So I think there's a lot of nervousness in Europe about what could be coming in the year ahead. Frankly, President Zelensky has said he'd like to see this come
to a conclusion in the coming year. But I do think, you know, January twentieth is looming very large in everyone's minds at this point. Whether you're in Moscow, whether you're in Brussels or anywhere else, or whether you're in Kiev. That is that's the day that really thinks US policy could very quickly change. You could see a rapid diminishment of support from Washington, and that will start to have
a very quick impact on the ground. I don't think anyone expects Europe to make up the entirety of America backing away from this, if that's indeed what happens.
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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 Day Ray