Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, the drop in futures closing out this trading week comes ahead of a closely watched inflation gage for the Federal Reserve. The Core Personal Consumption Expenditures price index is forecast to have fallen to three point three percent in November. That's from three and a half percent the prior month. The economists say that could bolster expectations for FED rate cuts next year. Former Dallas FED President Robert Caplan says, despite this morning's report, he expects the Fed to be patient.
The Fed is going to need to see at least two or three months more of continued improvement. I think tomorrow will probably be good news, but they're going to need to see sustained improvement before they're going to be willing to take more action. And so I think the market should expect that it's going to take a while and more sustained improvement before the Fed does something.
Former Dallas Fed chief Bob Kaplan's as markets overreacted to FED share j Powell's comments earlier this month on rate cuts.
Well in Europe Nathan's speculation is growing this morning that the Bank of England may cut interest rates as soon as this ring, and that's because the UK economy unexpectedly shrank in a third quarter. Dan Hansen is a senior economist for a Bloomberg News.
We've been having this conversation about recession for a while. I think we'll move on from it in the first half of twenty twenty four, which is obviously a good news story. But as things stand, obviously just looking at this data, it is a little bit worse than expected, and it does raise the risk of two consecutive quarters of negative growth, the sort of definition of a technical recession.
And Bloomberg New senior economist Dan Hansen says revised figures show GDP dropped a tenth of up percent from the second quarter, a downgrade from the zero growth initially estimated.
All right, Karen, that let's get to the latest from the Middle East.
The US is signaling it can now support a UN Security Council resolution to increase aid into Gaza. This proposal has been delayed several time times, but a vote could come as soon as today. White House National Security Spokesman John Kirby says the US still wants Israel to move to a different phase of fighting with Hamas.
We're not going to speak for their military operations. We recognize and they recognize that a transition is not only reasonable, but probably the most viable way to continue this fight.
John Kirby at the White House.
Now, the latest draft of the Security Council resolution calls for creating the conditions for a sustained cessation of hostilities. The US had been opposed to specific language for a ceasefire. Meanwhile, the Hamas run health ministry in Gaza says more than twenty thousand people have been killed in the territory since the October seventh attack on Israel.
Well Nathan, the US is preparing to lift a ban on weapons sales to Saudi Arabia. On Bloomberg's Amy Morris has more from Washington.
Officials tell The New York Times the Biden administration is prepared to relax some restrictions after taking note of Saudi Arabia's de facto ceasefire with the Houthi militia in Yemen. President Biden imposed the ban on the sale of certain weapons two years ago, concerned that US weapons were being used against civilians in Yemen. The US did not say when the easing of the band might happen, and it can be reversed at any time if the President decides
it's not in US interests. Saudi Arabia is the largest buyer of American weapons in Washington. Amy Moore as Bloomberg.
Radio, Okay, mee, thank you.
Meanwhile, closer to home, President Biden's preparing to send a team to Mexico to talk immigration. Bloomberg said, Baxter has that story.
The mission comes after a conversation with Mexico's President Lopez opened the door with increasing pressure as well to get something done regarding immigration. NSC spokesman John Kirby says it will be top officials prison.
Biden has asked Secretary of State Tony Blinken, Secretary of Homeland Security Alejandro Majorcis, and White House Homeland Security Advisor Liz Sherwood Randall to travel to Mexico in coming days.
Kirby says the trip will take place as soon as possible. Ed Baxter, Bloomberg.
Radio, All righted, thanks we all. Turning to corporate news now shares a Nike down eleven and a half percent in early trading, the sportsware giant is forecasting revenue to be down slightly in the fiscal third quarter and up in low single digits in the fourth quarter. Punham Goyle is a senior US e commerce and retail analyst at Bloomberg Intelligence.
They're still only expecting revenues to be up one percent, and that's a function of two things. One an uncertain macro and two weaker China. So those two things together is what's raising browse here because China, as everyone knows, is a real area of growth for them.
And Bloomberg Intelligence and Spoonhem Goyle says. Nike is also taking steps to streamline the organization and that's expected to result in pre tax restructuring charges of about four hundred to four hundred and fifty million dollars.
Well, Karen, we're.
Also seeing some other sporting goods companies follow after that disappointing Nike forecast. In Europe, shares of Adidas are down nearly six percent, Pumas down about four to five and a half percent, should say. And here in the US in early trading, we're watching shares a foot Locker. They are down six and two thirds percent. Under Armour is down about five percent, Dick Sporting Goods lower by more than four percent.
Well, Nathan Elon Musk is lashing out at the state of US financial market. Speaking to Our Investment Management CEO Kathy Wood during a discussion on his social media platform X, Musk complained about the scrutiny facing listed companies.
There's a lot of pressure, like an immense pressure on a public company to not have a bad quarter. So this can actually result in a less efficient operation where you're going to great lengths at the end of quarter to not disappoint people. You know, that's just just how it goes.
And Musk says keeping SpaceX private has also allowed him to take more appropriate risk compared with the publicly traded Tesla and.
Ten Cent Holdings is leaning an eighty billion dollars sell off in some of China's biggest online names. That's after China ensued a surprise imposition of new gaming curbs.
This is Bloomberg Porry.
Nathan thanks time now for a look at some of the other stories making news around the world, and for that we're joined by Bloomberg's Amy Morris.
Amy, Good morning, Good morning, Karen.
Increasing security concerns across the US. Deputy US Attorney General Lisa Monico says the biggest concern now is lone wolves and small groups acting with little to no notice.
Since October seventh, the FBI has received more than eighteen hundred report of threats or other types of tips or leads that are somehow related to or having access to the current conflict.
Deputy Attorney General Lisa Monicco was talking with ABC's This Week, which you can hear each Sunday afternoon here on Bloomberg Radio. Former Trump attorney Rudy Giuliani has filed for bankruptcy protection after a court ordered Our court ordered him to pay nearly one hundred and fifty million dollars for defaming two Georgia election workers. Loyola law professor Laurie Levinson says that doesn't ness necessarily let Juliani off the hook.
Finally, the bankruptcy might delay things, but ultimately, if his creditors can find assets that he does have, then they'll be able to go after those, either in the bankruptcy proceedings or otherwise.
Among the creditors Julianni lists are the Internal Revenue Service and Hunter Biden. Apple has now pulled its Apple Watches Series nine and Ultra iiO models from its online store to meet a ban ordered by the International Trade Commission. As Bloomberg's Scott Carr tells us, many of the watches are now also out of warranty.
The ban on the Apple smart watches also means the company is not allowed to fix models out of warranty. Apple's customer service teams were told in a memo this week that the company will no longer replace out of warranty models going back to the Apple Watch Series six. The company will still offer help. It can be done
via software, such as reinstalling the operating system. The ban affects most new Apple watches sold since twenty twenty that the ITC says includes a blood ox and censor that violates a patent held by Massimo, Scott car Bloomberg Radio.
And the Food and Drug Administration has seized thousands of units of counterfeit o zepic, a diabetes drug from Novo Nordisk. It's been adapted into a weight loss treatment. As you've heard, the FDA warns wholesalers, retail pharmacies, healthcare practitioners, and patients check your products. Make sure they're not fake. The FDA and Novo are testing seized products and they don't have
any information yet about their identity, quality or safety. Global news twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Amy Morris and this is Bloomberg Karen.
Sorry to Amy. Thank you what we do bring you news throughout the day here on Bloomberg Radio. But now, as Amy said, you can get the latest news on demand whenever you want it. Just subscribe to Bloomberg News Now to get the latest headlines at the click of a button. Get informed on your schedule. You can listen and subscribe to Bloomberg News Now on the Bloomberg Business app, Bloomberg dot Com, plus apples, Spotify, and anywhere else you
get your podcast. Time now for the Bloomberg Sports Update with John stash Hour John Karen.
The LA Dodgers have been in the baseball postseason eleven straight years. They have just the one World Series championship to show for it. That in the COVID shortened twenty twenty season. Making an effort to be better in October, have they ever spent money in this offseason? They acquired Tyler Glass now from Tampa Bay.
They gave him a.
New contract for one hundred and thirty six million dollars. They of course added Sho hey Otani price tag seven hundred million, and now they've added another Japanese player, twenty five year old pitcher Yashinobu Yamamoto. Dodgers haven't conferred the deal, but several media reports it's twelve years, three hundred and twenty five million, So betwe the two Japanese players. The
Dodgers pledged to pay a total of over a billion dollars. Yamamoto, pitching for the ORYX Buffaloes last year, won sixteen games, pitched to a one point two to one baseball with some rule changes for twenty twenty four, the pitchclock with men on base reduced from twenty seconds to eighteen now, wider runner lane towards first base, and mound visits reduced from five to four. Thursday Night football in La easy win for the Rams. Saints scored a couple of late touchdowns,
but the Rams won thirty to twenty two. Matthew Stafford through for three hundred and twenty eight yards. The Rams were three and six. They've now won five of their last six and at eight and seven, they're very much in it for a wildcar Clippers nine game winning street came to an end. They lost at Oklahoma City. The Lakers played without Lebron James. They lost at league leading Minnesota Johns. Dasheller Bloomberg's four.
From Coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on SYRIASXAM.
The Bloomberg Business app in Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
Now two and a half months into the war in Gaza, Israel continues to face pressure to move its fight with Hamas into a less intense phase. The UN is moving closer to a resolution to bring more aid into the territory, and The New York Times is reporting that the US is preparing to lift a ban on offensive arm sales to Saudi Arabia as red sea shipping comes under greater attack. And for more on all this, we were joined by
Bloomberg New Senior editor Bill Ferries. Bill, good morning. First off, what's the latest on this Security Council resolution on Gaza aid? This has been under debate all week long, hasn't it?
It has?
And if you remember earlier this month, the US was the only country voting against and effectively vetoing a UN Security Council resolution that was calling for an immediate ceasefire in the Israel Hamas war. Even US allies didn't stand
in the way of that resolution. So they've been trying to hammer out something all week that could pass, and it looks like there could be a vote Friday that US said it could support support a resolution that would beef up aid deliveries to Gaza, and we don't have all the details, but which would presumably involve some sort
of a cessation of hostilities. Right now, the draft that we've seen talks about working towards some kind of a ceasefire, so not declaring one at the outset, but that's been the goal along for most of the countries involved in this process. And we'll have to see what the final draft is later today and whether that goes down for a vote. But the US Ambassador to the UN signaling late last night that the US is likely to support such an effort.
What's the practical impact of a resolution like this when we are hearing comments from a White House National Security spokesman John Kirby, the Secretary of State Antony Blincoln and others calling on Israel to at least de intensify the war with Gaza, the war in Gaza.
Yeah, you've seen the US, particularly for for weeks now, trying to straddle this divide between signaling its support for Israel and saying it has, you know, continues to have the right to defend itself after those October seventh attacks by Hamas, but also signaling its real concern about the rising civilian death toll. And increasingly in recent weeks you've seen the focus of that balancing act shift towards the
civilian death toll. And you basically have both President Biden last week before a group of fundraisers and Secretary of Saint Anthony Blincoln this week saying that they really need to see a more.
Targeted approach by Israel Israel.
They you know, they're talking about Israel going after AMAS leader, specific Hamas leaders, rather than maybe the broader bombing campaign that we saw in the first several weeks and in actually the first two months of this conflict.
Bill What more can we say about this New York Times report that the Biden administration is getting ready to lift an offensive weapons ban on Saudi Arabia. This has to be related to some of the turmoil we're seeing in the Red Sea, doesn't it.
Yeah.
Absolutely, It's really interesting because you know, it shows how the world has changed in just a few years, Just two or three years ago, when there was a lot of frustration in the US about about the Saudi led war against the Huti Rebels and Yemen. It was considered one of the world's biggest humanitarian disasters at the time.
And you know, in the time since, there's been a little bit of a shift I think on Saudi Arabia's part, in particular, since this band went into a place where they are, they have been more recently trying to find a diplomatic approach to the Huti Rebels. And you know, the focus that Crown Prince Mohammed ben Salman had on persecuting a war has really changed now. So the Biden administration's argument seems to be, you know, the reason that we put this ban in place no longer really exists.
We can put it back in if we need to. But I think they're really trying to leverage the alliance or the partnership with the saudis to try to get them in a place where maybe they can put a little bit more pressure on the Hooties the Red Sea. It's really become a major crisis for global shipping. It's become something that threatens supply chains once again. It has a potential impact on inflation and obviously threatens human lives.
If these attacks on ships passing through that region continue, it has the really the bigger issue is it has the risk of expanding this war to a much broader area.
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I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day, right here on Bloomberg Daybreak