Government Shutdown Looms; Trump Threatens EU Tariffs
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Welcome back, Ms. Klein.

Bloomberg Audio Studios. Podcasts, radio, news. Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with the latest on a possible government shutdown with a midnight deadline now just hours away. A revised funding plan backed by President-elect Donald Trump and Elon Musk.

has been rejected by the Republican-led House. That's after Musk and Trump came out against a previous bipartisan stopgap measure. House Speaker Mike Johnson spoke after 38 members of his own party voted alongside nearly all Democrats to reject the latest proposal.

Very disappointing to us that all but two Democrats voted against aid to farmers and ranchers, against disaster relief, against all these bipartisan measures that had already been negotiated and decided upon. Again, the only difference on this legislation was that we would push the debt ceiling to January of 2027. Now House Speaker Mike Johnson says Republicans will regroup and come up with another solution. Ahead of the vote, House Democratic Leader Hakeem Jeffries called the plan laughable.

One or two puppet masters weigh in and the extreme MAGA Republicans decide to do the bidding of the wealthy, the well-off, the well-connected millionaires and billionaires, not working class people. House Democratic Leader Hakeem Jeffrey says Republicans are driving the government to a shutdown.

Well, Nathan, President-elect Trump weighed in on Truth Social after the vote, saying there should be no government funding deal without removing the debt ceiling. As he put it, the pressure is on whoever is president. Vice President-elect J.D. Vance says Democrats are just trying to make things harder for a second Trump administration. They would rather shut down the government and fight for global censorship bulls**t

They've asked for a shutdown, and I think that's exactly what they're going to get. Vice President-elect J.D. Vance says Democrats don't want to give Trump negotiating leverage during his first year. But Democratic Congressman Jamie Raskin says his party mostly voted against the new plan after the original agreement blew up. I heard one Republican colleague say now it's President Musk and J.D. Vance as vice president. Where does that leave Donald Trump, the president-elect?

Democrat Jamie Raskin rejected the deal that would have set March 14th as the new funding deadline. Well, Karen, President-elect Trump is also taking to Truth Social to issue a new trade threat. He is warning the European Union that he'll hit the block with tariffs unless it increases purchases of American oil and gas. The U.S. is the world's biggest exporter of liquefied natural gas. More than half of American LNG exports went to the EU last year in the wake of Russia's invasion of Ukraine.

Well, Nathan, elsewhere overseas, a delegation of American diplomats has arrived in Syria this morning to meet with representatives of several Syrian factions. One of them is the rebel group HTS, which is designated a terrorist group and overthrew the country's longtime dictator Bashar al-Assad. Well, Karen, Secretary of State Antony Blinken says the U.S. has received positive signs from HTS. He spoke to Bloomberg about plans for engaging with Syria.

I think it's important to have direct communication. It's important to speak as clearly as possible, to listen, to make sure that we understand as best we can where they're going and where they want to go.

Secretary of State Blinken adds he's been in close contact with the incoming Trump administration. He says he wants to give them the best possible hand to play in geopolitical conflicts around the globe. Well, Nathan, we turn now to the markets and traders attention turns today to the last major data point of 2024, the personal consumption expenditures index for November.

It comes after yesterday's figures showed faster than expected economic growth and robust consumer spending. Those numbers weaken the case for imminent rate cuts after Fed Chair Jay Powell signaled a hawkish pivot earlier this week. RBC Chief Economist Francis Donald says economic data are likely not the only factor influencing the Fed's strategy.

This is really a Federal Reserve that even though they say they're not incorporating the effect of Trump policies, or some of them are, but some of them are not, is absolutely internalizing what they expect to come next. It is in their psyche, it is in their biases. They are afraid of inflation. And Powell, while trying to speak out of both sides of his mouth, really gave the impression that the Fed is focused on what those CPI, PCE numbers are going to look like, and therefore that's what the market will be focused on.

RBC chief economist Francis Donald says while sectors like manufacturing and housing face real price pressures, the AI and productivity boom may help sustain growth into next year.

Turning now to Bitcoin, the world's biggest cryptocurrency hit a record high this week, above $108,000 on hopes of crypto-friendly policies in a new Trump administration. The Fed's pivot, though, has sent the token down more than 10% since then. And checking Bitcoin prices right now, they're down another 3%, just below $95,000. But

But many are still bullish on Bitcoin, including ARK Investment Management CEO Kathy Wood. If institutional investors are looking at this new asset class more seriously, and Bitcoin is really the first of its kind in a new asset class and will be, we believe, the biggest opportunity of them all, they must consider an allocation.

ARK CEO Kathy Wood tells Bloomberg she thinks Bitcoin could top a million dollars by 2030. Meanwhile, Nathan, we have a fresh headline on the potential merger of Nissan and Honda. Bloomberg News has learned Foxconn is putting its interest in pursuing Nissan on hold.

after the Taiwanese smartphone maker sent a delegation to meet with Renault, which owns 36% of Nissan. Sources tell us Foxconn is waiting to see if Nissan and Honda make real progress on a deal before deciding its next move. In other company news, Karen Alphabet, CEO Sundar Pichai told employees this week that Google cut its manager, director, and vice president roles by 10% in a push for efficiency. That is according to a report from Business Insider.

Back in 2022, Pichai said he wanted Google to be 20% more efficient. He eliminated 12,000 rolls the following year. And finally, Nathan, Starbucks baristas are going on strike for five days starting today in stores across Los Angeles, Chicago, and Seattle. The strike is a result of an impasse in bargaining sessions.

The Starbucks Workers United Union is seeking better pay, schedules and hours. The union expects the strike to spread to hundreds of stores by Christmas Eve. Starbucks says the union prematurely ended negotiations.

Time now for a 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 John Tucker. John, good morning. And good morning, Karen Hillage. CEO killer Luigi Mangione is back in New York and could now face the federal death penalty. And Bloomberg's Lisa Mateo joining us live this morning with the very latest. Lisa, good morning. Good morning, John. Yeah, Mangione was charged with murder by federal prosecutors for killing of United Health Group executive Brian Thompson.

Well, now a lawyer for the alleged killer told a U.S. judge in New York that one of those federal charges was, quote, death eligible. Karen Freeman on NIFLO, she complained that the theories between separate cases filed by the state and federal prosecutors seem different and that she's, quote, never seen anything like what is happening here in over three decades of practicing law. Now, what's interesting, John, is that in New York State, well, they haven't executed a convicted felon in more than 60 years.

Bloomberg's Lisa Mateo. Lisa, thanks. The Pentagon has shipped anti-drone technology to an area of New Jersey located where sightings of mysterious aircraft has set residents on edge. And drone accusations that the federal government isn't taking the incident seriously. The Defense Department provided equipment capable both of detecting drones and also disabling them. Weather could put the freeze on some holiday travel plans. Bloomberg meteorologist Rob Carlin gives us the update. John.

John, Arctic high pressure building out of the Dakotas this morning will continue to affect the Central Plains and eventually move through the mid-Atlantic states, the Great Lakes, the Ohio River Valley, and the Northeast with some of the coldest air we've seen so far this season. And it looks like that air is going to remain in place right through Christmas Eve day. Bloomberg meteorologist Rob Carroll and thousands of Amazon workers striking for better pay and working conditions.

The estimated numbers believed to be around 10,000 strikers. That's out of approximately 800,000 Amazon employees. Meantime, Amazon will pay $145,000 in penalties. That's part of a settlement with the federal workplace regulators regarding allegedly unsafe conditions at several of its U.S. warehouse and logistics facilities.

Global News 24 hours a day, whenever you want it, with Bloomberg News Now. I'm John Tucker, and this is Bloomberg Karen. All right, John Tucker, thank you. As criminal ransomware and state-sponsored attacks continue to escalate, a bolted-on approach to cybersecurity isn't cutting it. In fact, the more security tools an organization uses, the more security incidents it has.

According to new research from Google, companies that use 10 or more security tools average 14 incidents per year. That's more than double the amount for those that use fewer than 10 tools. To proactively manage cyber attacks, organizations should invest in productivity tools across email, documents, and video conferencing that are secure by design, hopping off the treadmill of software patching and lightening the load on their embattled IT and cybersecurity teams.

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Take your business further at T-Mobile.com slash now. Time now for the Bloomberg Sports Update brought to you by Tri-State Audi. Here's John Stashower. John, good morning. Good morning, Karen. Carl Anthony Towns spent nine years in Minnesota. He's the second leading scorer in Timberwolves history. He didn't leave as a free agent. He got traded to the Knicks, so he got a big ovation in his return and then put on a show. 32 points, 20 rebounds. Towns shot 10 of 12, made all five of his three-pointers. The Knicks outscored the T-Wolves.

41-18 in the second quarter. Went on to win going away. 133-107. Mikael Bridges added 29 points. Julius Randle also playing his former team. Scored 24. The Nets got 33 from Cam Johnson and won 101-94 in Toronto. The Celtics outscored by 13 in the fourth quarter. Upset at home by Chicago. Rare win for the Wizards. Just their fourth of the season. They beat Charlotte in a Lakers win.

at Sacramento. LeBron James passed Kareem Abdul-Jabbar. LeBron has now played the most minutes in NBA history. Devils lost 4-2 at Columbus. The Bruins lost in overtime at Edmonton. Week 16 began in the AFC West where Kansas City has clinched the division. The Broncos and Chargers

Looking very much like they'll be AFC wildcards. They met in L.A. Denver going for a fifth straight win. Had an 11-point lead with three minutes left in the third quarter. The Chargers rallied two fourth-quarter touchdown passes by Justin Herbert. L.A. won 34-27. Both teams now 9-6. Indiana and Notre Dame both went 11-1. They played tonight an in-state battle in South Bend to start the now 12-team 11-game college football playoff with three more games tomorrow.

The newest Yankee Cody Bellinger has already played in two large markets with the Dodgers and Cubs was asked about now playing in New York. I have an opportunity here to play for one of the best franchises in all sports. I knew there was interest.

And, you know, like I said, I wanted to take advantage of the opportunity. And I'm just glad that it was all able to work out. Bellinger admitted his father very happy with the trade. Clay Bellinger was a Yankee for three seasons, won two championships. John Staschauer, Bloomberg Sports, Karen and Nathan.

Coast to coast on Bloomberg Radio. Nationwide on Sirius XM. And around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Will the third time be the charm in Washington, D.C.? Well, the pressure is really on lawmakers now with less than 24 hours till a government shutdown deadline. The House has voted down the latest proposal that was backed by President-elect Donald Trump to keep the government open into March.

And to keep the debt ceiling from existing for another two years, Chip Roy of Texas is one of the 38 Republicans who voted no. Not going to go vote for another debt ceiling increase without actual specifics on what the cuts will be. That's a non-starter for me. Republican Chip Roy of Texas, after the latest stopgap went down in defeat last night. For more this morning, we are joined by Terry Haynes.

founder of Pangea Policy. Is your countdown clock set up, Terry? What's the risk of a prolonged shutdown now? Good morning. Good morning, Nathan. You know, these things never really last very long. You know, the politics, you know, two things. One is, you know, you've got a bunch of politicians here that are showing on this issue that they're not really very good at politics, which is sort of weird, but there it is. And

you know good politicians talk to each other good politicians uh... you know even offered me particularly from one the other side uh... you know what's gonna happen and uh... did kind of what the room for maneuver is none of that's happening here uh... secondly on uh...

on trump and musk and ramos swami and those folks uh... you know turning it up to eleven uh... like uh... spinal tap uh... deal with it at the very last minute uh... shows a lot of things but one of the things that shows markets is that trumps much less likely to actually achieve the things that they think he's uh...

until recently that he was very likely to achieve. That's a very bad look for Trump. And I think what he needs to do is stand down, stand back from this and cool the temperature off. But, you know, I think I think what the politicians will do over the weekend is figure out the minimum they need to do and actually do it and be done. Why have this debt ceiling fight now? What is Trump wanting out of this?

You know, what he wants and what he's getting are really two different things. What he wants is he doesn't want the debt ceiling fight, which has to happen in

in the late winter, early spring, excuse me, in the late winter, early spring to, uh, to overshadow the tax, uh, the tax bill and, uh, revenue raising and the other things that he wants to do. Uh, but what he's, uh, what he's showing is that he doesn't understand how dug in a lot of Republicans are not just the 38 or so that voted against, uh, voted against last night. Uh,

But how much of an article of faith keeping the debt ceiling and keeping some sort of restraint on federal spending is and has been to Republicans for a lot of years. So what it shows is that he's out of touch with his own political base in Congress. That's a very bad look for him.

Well, he was threatening to primary Republicans who voted against this. And as we heard Chip Roy there, he's one of the hardliners on Capitol Hill. How serious is that primary threat from President-elect Trump?

Well, I think that's one of the things that my guess is, that that's one of the things that kind of gets said in the heat of the moment, probably goes away after all this is over. There's going to be a lot of patching up that's going to have to be done on the Trump side as well as from the Republican side. But, you know, Trump thought he was just going to steamroll these guys into voting for something that they wouldn't vote for.

you know, he's got another thing coming, frankly. This is, it's difficult to impossible to steamroll, you know, the co-equal branch of government. And that's exactly what Congress is. And more importantly, what they consider themselves to be. And, you know, you can't, your first

Your first goal here, it can't be to unman these folks, particularly when you need all of them just to accomplish anything that you want to accomplish. He can't accomplish without them. So therefore, therefore, he's going to have to make it up to them, not the other way around. We have just 30 seconds left, Terry. But where's President Biden in all this? Does he need to speak up more?

Well, I think it's past the time in which anybody, even in Biden's own party, is going to be able, is going to listen to him or much care. They think they've been carrying water for him for way too long. They need to forge their own path forward, and they're trying to do that.

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 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121.

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From the Delta Sky Club to the Jet Bridge, Delta Airlines relies on 5G solutions from T-Mobile for Business to power operations and serve customers faster. Together, we're putting 5G into the hands of ground staff so they can better assist on-the-go travelers with real-time information throughout the airport. This is elevating customer experience. This is Delta Airlines with T-Mobile for Business. Take your business further at T-Mobile.com slash now.

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