LA Wildfires Burn Out of Control; Trump’s Panama and Greenland Threats
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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 dangerous situation this morning in Southern California. Tens of thousands have fled their homes as wildfires burn out of control in the Los Angeles area. We get the very latest now with Bloomberg's John Tucker. John. And Nathan, it sounds like a freight train moving through.

Mandatory evacuation orders have now been expanded to parts of northern Santa Monica. The wind is so strong it'll almost knock you over and the embers are blowing through the parking lot and the ash will hit you in the eyes. The Palisades fire has burned almost 3,000 acres with those strong winds hampering firefighting efforts. Here's California Governor Gavin Newsom. Having just quite literally an hour or so ago gone up the canyon and saw firsthand the

the impact of these swirling winds and the embers and the number of structures that are destroyed. Not a few, many structures already destroyed. Governor Newsom declaring a state of emergency. Isolated wind gusts could be as strong as 100 miles per hour. The fires have prevented emergency vehicles from getting through. And on Sunset Boulevard, bulldozers were brought in to push abandoned cars to the side and create a path.

Over 220,000 customers are without power. I'm John Tucker, Bloomberg Radio. All right, John, thank you. Well, we want to get the latest on politics now in the wide-ranging news conference from President-elect Donald Trump. He called reporters to Mar-a-Lago to announce a $20 billion data center investment.

But he also used the event to ramp up threats on Canada, Greenland and the Panama Canal. Trump was asked directly whether he could assure the world he'd rule out military force to take over Greenland or the canal. No, I can't assure you on either of those two. But I can say this.

We need them for economic security. The president-elect also said he would use economic force to make Canada the 51st state. Because Canada and the United States, that would really be something. You get rid of that artificially drawn line...

And you take a look at what that looks like. And it would also be much better for national security. Don't forget, we basically protect Canada. And Trump took a swipe at Mexico with this announcement. We're going to be changing the name of the Gulf of Mexico to Mexico.

The Gulf of America. Donald Trump has threatened both Mexico and Canada with new tariffs if they don't do more to stem migrant and drug flows into the U.S. Meanwhile, Karen, a group of House Republicans is going to meet with President-elect Trump ahead of a looming fight over extending his 2017 tax cuts. We get that story from Bloomberg's Doug Krisner. The meeting will happen at Mar-a-Lago this weekend and include 20 GOP House members from New York, New Jersey, and California.

New York Representative Nick Lelota says the plan is to discuss increasing the $10,000 cap on state and local tax deductions, known as SALT. It disproportionately hurts voters in three high-tax states. Lelota says the group will push for a reasonable adjustment to the cap. It was imposed as part of the 2017 tax bill, and now Republicans in Congress are beginning to negotiate a package to extend those 2017 tax cuts.

In New York, I'm Doug Krisner, Bloomberg Radio. All right, Doug, thank you. Well, in videos, Jensen Wong, the CEO at the center of the artificial intelligence boom, says he's ready to meet President-elect Donald Trump and offer his help to the coming administration. Wong spoke with Bloomberg's Ed Ludlow. I'd be delighted to go see him. Have you been invited? Not yet, but I would be delighted to go see him.

congratulate him and do everything we can to help this administration succeed. Donald Trump has said that he will impose trade tariffs that may affect companies like NVIDIA, which rely heavily on overseas sales and outsourced manufacturing. Well, Karen, NVIDIA was one of the biggest losers in yesterday's declines on Wall Street. The AI chip giant fell more than 6%. Megan Horniman, chief investment officer at Verdant's Capital Advisor, says there's some tough sledding ahead for last year's tech darlings. I

I think the Magnificent Seven specifically are going to have a bit of a difficult year. Now while there may be earnings growth there, I'm not saying this is a negative earnings growth environment, but the interest rate environment is not going to be as favorable as to really warrant these elevated P.E. multiples.

Sometimes we don't see a correction that's really led by any specific catalyst, but just a valuation correction. And I think the Magnificent Seven can be due for that in the first half of this year. That's Verdant's Capital Advisors Megan Horniman. A gauge of the Magnificent Seven mega cap stocks sank 2.5% yesterday.

And Nathan, we'll get a slew of economic reports today because of the closure of the markets tomorrow. The labor market will be in focus ahead of Friday's jobs report, and we get a preview from Bloomberg's Michael McKee. Investors like to trade on the ADP employment report, even though it usually bears no resemblance to the nonfarm payrolls number due Friday.

ADP found 146,000 new private sector jobs in November, while the government reported 194,000. For December, the payroll processor anticipates a slowdown in that job growth. If that happens, it may influence some final estimates for Friday. Right now, the range of economists' forecast is quite wide, from 95,000 to 203,000.

We also get jobless claims today. Moved from Thursday because of the memorial service for former President Jimmy Carter, little change from continuing low levels is forecast. Michael McKee, Bloomberg Radio. All right, Mike, thanks. In company news, JPMorgan Chase is preparing to require all its employees to return to the office five days a week. That would end the bank's hybrid work option. We get more from Bloomberg News Senior Finance Reporter Sreenad Rajan.

Very fair to assume Jamie Dimon's on board. If there's anyone on board, it's Jamie Dimon. Everyone else has to fall in line. But all the sense we're getting, unless plans fall apart last minute, is sometime in the next few weeks, in a week or two, you could very well see J.P. Morgan come out and say they want everyone back in office five days a week. Bloomberg's Srinath Rajan says the largest U.S. bank employs more than 300,000 people globally.

Well, Nathan, $1 billion is not enough. Indonesia kept a ban on the sale of Apple's iPhone 16, saying its $1 billion plan that includes building an AirTag factory is insufficient to meet local investment requirements. The government said it's willing to negotiate with Apple but may impose sanctions if the company continues to not comply with local investment rules. And Karen, NFL gamblers are winning too much. That's the word from FanDuel owner

Flutter shares of that company fell 5% in Europe after warning its fourth quarter profits would be hurt after a string of, quote, very unfavorable sports results in the U.S. Flutter says NFL games have been the most customer-friendly since it launched online sports betting.

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 Michael Barr. Michael, good morning. Good morning, Karen. Former President Jimmy Carter will continue to lie in state after his remains arrived in Washington Tuesday. Carter served as president from 1977 to 81 and went through a rocky four years of economic unrest and international unrest.

that ended with his defeat to Republican Ronald Reagan. In a ceremony, Vice President Kamala Harris spoke about Carter's political legacy. In the wake of Watergate, Jimmy Carter passed historic ethics legislation.

to help rebuild America's faith in government. Also at Tuesday's ceremony, House Speaker Mike Johnson spoke about Carter's long devotion to service after he left the White House. We all know that his care for humanity didn't stop at building homes. In the face of illness, President...

Jimmy Carter brought life-saving medicine. In the face of conflict, he brokered peace. In the face of discrimination, he reminded us that we are all made in the image of God. Carter will remain at the Capitol until Thursday morning when he is transported to Washington National Cathedral for a state funeral.

Rescue workers in Tibet are searching for more survivors and victims. One day after a strong earthquake leveled thousands of houses and killed at least 126 people and injured around 190 others. Tents, quilts and other relief items were being delivered to the western China region to provide shelter for those whose homes are uninhabitable or unsafe.

Wintery temperatures fell well below freezing overnight. The earthquake struck about 50 miles from Mount Everest and the border with Nepal. It's not cleared for takeoff yet, but a new technology could be poised to change the future of transportation. Some few American companies are developing flying cars, also called air taxis. Jobin Bevert is the CEO of California-based Joby Aviation.

We see this as a new class of transportation, as a first step in moving into the skies for our daily transportation. Joe Ben Bevard with Joby Aviation says the electric vertical takeoff and landing aircraft has already been given their own FAA designation, although they're not allowed to carry civilians just yet.

Global news 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg. Are you still quoting 30-year-old movies? Have you said cool beans in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99% of places that take credit cards nationwide. And every time you make a purchase with your card, you automatically earn cash back.

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Visit LifeLock.com slash iHeart and save up to 40% your first year. That's 40% off at LifeLock.com slash iHeart. Terms apply. It is 5-11 on Wall Street. Donald Trump says he will not rule out using military force to take control of Greenland and the Panama Canal. And he says he would use economic force to absorb Canada. And that was just a small part of a wide-ranging news conference at Mar-a-Lago.

We're spending hundreds of billions a year to protect it. We're spending hundreds of billions a year to take care of Canada. And for more, this morning after that news conference, we're joined by Bloomberg's Kevin Whitelaw. Kevin, good morning. We did hear quite a number of threats from President-elect Trump at Mar-a-Lago. How much of this could he be serious about?

Well, I mean, it really brought back a lot of memories from the first four years of his administration because you sort of end up at – you come to the end of one of these things and you do try to find out – pick it apart what is real, what's not, what's serious, what's not, and what's literal and what's not. And I think that it's going to take a while before we can really actually understand what he's –

really looking for in each of these situations. And I think the notion that he's going to, like, you know, invade Greenland is not where this is headed. But having said that, you know, it shows that he is feeling that he is not constrained by any of the

you know, sort of general practices of the past. He's not going to come in and be listening to a lot of the sort of, you know, Republican graveyard and folks who've been around for a long time. He's going to act impulsively. He's going to be looking for deals and he's going to be looking for high profile ways to show that he's making a difference and making an impact. And whether that means that Denmark...

for example, would be able to satisfy him by perhaps allowing additional U.S. military activities in Greenland or some kind of other economic deals. That is where we'll have to see. So what the bottom line is, it'll take a little while to actually sort out. But in the meantime, it puts a real squeeze on certainly Denmark, which finds itself in a suddenly uncomfortable position.

Yeah, it certainly does. Not just Denmark, but Panama as well and even Canada. And I mean, we've already seen the fallout from how to confront President-elect Trump with Canadian Prime Minister Justin Trudeau announcing that he's going to step aside in a couple of months. Where could things go now?

As we start to prepare for the presidency of Donald Trump in less than two weeks here. Well, you know, I think obviously he's going to want to come in with a bang. He's going to want to come in and make a real impact. A lot of that, I think, is going to be domestic, but obviously countries like China,

Canada, Mexico, to a slightly but not much lesser degree, parts of Europe and China are going to have to be ready for it. At the same time, keep in mind, the reality is going to intrude pretty quickly on the president. Crises are going to happen.

and things are going to crop up, he's going to come up against some of the realities and limitations of what he can actually do. And he's going to have to also confront some of the potential negative impact and market effects of some of these activities. So, you know, he'll come out, he'll come out, he'll come out swinging. But,

but he's also going to have the same kinds of crises and and other things that that'd be deviled every every u_s_ president i mean you know even in the news this you know this morning we're watching these uh... very very very serious wildfires and in california just that reminder that that the president is going to have to deal with the set of reality no matter what it is he wants to come in and and try to do

I want to touch on something you said earlier, that this idea that the president-elect is going to act on impulse once he retakes office. That raises the question about whether he does have concrete plans to carry out some of these things, including this idea of economic force to make Canada the 51st state. I mean, whether even that idea is serious. But the economic force idea certainly could be, couldn't it?

Well, that's right. And I do think that we are going to see some kind of tariff announcement very soon. But obviously, we don't really know what that is going to look like. Is it going to be across the board? Is it going to be targeted? Is it going to be big? Is it going to be small? Is it going to be a threat that then results in a series of negotiations? Or does it get to sort of happen and then people try to find ways to alleviate it over time? You know,

he may well go ahead with something that sounds very big, but he also has to worry about potential market impact. You know, we do know that he measures his own success in part on, you know, the stock market and where it's headed. And so, you know, he's going to confront the reality that some of the plans he's talking about, say, across the board tariffs, have the potential to exacerbate the kind of inflation, particularly, say, on food prices that he's promised to fight. So, you

Is there a way he can do something a little more targeted and then, you know, that becomes part of a new negotiation? It certainly could. But if he wants to come make a big splash, look like he's following through on something, then, you know, he may have to deal with a set of negative consequences and political fallout, including within his own party, which maintains the narrowest of majorities in the House.

Got about a minute left, Kevin, and I probably don't have to tell you, but here in Washington, when President-elect Trump made this announcement that he's going to rename the Gulf of Mexico the Gulf of America, that raised a lot of eyebrows. Where did that come from? I mean, it's the first I'd heard of it. You know, we've, you know, looked...

Trump's all about branding. He's always been about branding. He's been about deals. He's been about these things. So, you know, whether that one is real or not, I, I, I certainly guess we're, you know, we'll, we'll have to see, but, um, you know, the, the, to me, the, the real difference this time looking around is he's not going to come in with

the kind of people who are likely to restrain him. He is mostly surrounding himself with people who want to enable him. And so that does mean that there are going to be some things that maybe got squashed in the last four years that are going to get a lot further this time around. And I do think that that means that everyone needs to gird themselves for what's going to be a very likely disruptive couple of months ahead.

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.

Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. 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 Daybreak.

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