Government Shutdown Looms; Trump Threatens EU Tariffs
Bloomberg Daybreak: US Edition
Deep Dive
Why did the House reject the stopgap funding plan backed by President-elect Trump?
The House rejected the stopgap funding plan after 38 Republicans voted against it, alongside nearly all Democrats. The plan included pushing the debt ceiling to January 2027, which was a sticking point for many lawmakers. House Speaker Mike Johnson expressed disappointment, while House Democratic Leader Hakeem Jeffries called the plan laughable, accusing Republicans of prioritizing the wealthy over working-class people.
What trade threat did President-elect Trump issue to the European Union?
President-elect Trump warned the European Union that he would impose tariffs unless it increases purchases of American oil and gas. The U.S. is the world's largest exporter of liquefied natural gas (LNG), with more than half of its exports going to the EU last year, particularly after Russia's invasion of Ukraine.
What is the significance of U.S. diplomats arriving in Syria for talks?
U.S. diplomats arrived in Syria to engage with various Syrian factions, including the rebel group HTS, which is designated as a terrorist organization. Secretary of State Antony Blinken emphasized the importance of direct communication to understand the factions' goals and ensure a smooth transition in the country.
Why did Bitcoin hit a record high this week?
Bitcoin reached a record high above $108,000 due to optimism about crypto-friendly policies under a potential new Trump administration. However, the Federal Reserve's hawkish pivot caused the cryptocurrency to drop by more than 10% shortly after.
What are Starbucks baristas striking for?
Starbucks baristas are striking for five days across Los Angeles, Chicago, and Seattle, demanding better pay, schedules, and hours. The Starbucks Workers United Union expects the strike to expand to hundreds of stores by Christmas Eve, while Starbucks claims the union prematurely ended negotiations.
What is the Federal Reserve's stance on inflation and Trump's policies?
The Federal Reserve, under Chair Jay Powell, remains focused on inflation and is wary of potential economic impacts from Trump's policies. RBC Chief Economist Francis Donald noted that while the Fed claims not to incorporate Trump's policies, it is internalizing expectations of future economic changes, particularly in sectors like manufacturing and housing.
What is the status of the potential merger between Nissan and Honda?
Foxconn has paused its interest in pursuing Nissan after sending a delegation to meet with Renault, which owns 36% of Nissan. Foxconn is waiting to see if Nissan and Honda make progress on a potential merger before deciding its next move.
What cybersecurity insights were revealed by Google's research?
Google's research found that organizations using 10 or more security tools experience an average of 14 cybersecurity incidents per year, more than double those using fewer tools. The study recommends investing in secure-by-design productivity tools to reduce reliance on software patching and ease the burden on IT and cybersecurity teams.
- House rejects Trump-backed funding plan
- Midnight deadline looms for government shutdown
- Democrats call plan 'laughable'
- Republicans to regroup and find another solution
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