Trump Calls Musk Presidency Talk Hoax; Nissan-Honda Merger
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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 politics. With less than a month until Donald Trump returns to the White House, the president-elect is rejecting concerns about the idea of a president Elon Musk. More from Bloomberg's Doug Krisner. On Sunday, Trump told a conservative audience in Phoenix he will be president of the U.S., not Elon Musk. No, he's not going to be president, that I can tell you.

And I'm safe. You know why? He can't be. He wasn't born in this country. That Trump would be compelled to address Musk's power is testimony to the unusual influence he's already displayed. Musk was an early and vocal opponent of a budget compromise in Congress last week. Meantime, his appointment to head a cost-cutting and deregulation effort has brought complaints of conflicts of interest.

In New York, I'm Doug Krisner, Bloomberg Radio. All right, Doug, thank you. President-elect Trump is continuing to fill out his administration. He announced at least a dozen appointments over the weekend, including key roles in defense and crypto policy. He's named billionaire Steven Feinberg Deputy Secretary of Defense. Feinberg is the co-founder of Cerberus Capital Management, and his companies have held significant defense contracts.

Trump has also picked Michael Kratios to lead the Office of Science and Technology Policy. Kratios is the managing director of Scale AI and has been helping to staff up Elon Musk's Department of Government Efficiency. Well, Karen, President-elect Trump's trade threats and diplomatic efforts are causing some global turmoil. The latest?

aimed at Panama. Trump is claiming the Panama Canal is charging the U.S. exorbitant prices and rates of passage, and he's demanding lower fees or else. The fees being charged by Panama are ridiculous, highly unfair, especially knowing the extraordinary generosity that has been bestowed to Panama, I say very foolishly, by the United States. This complete ripoff of our country will immediately stop.

The president-elect spoke at a conservative conference in Phoenix over the weekend. In a video statement, Panama's President José Raúl Molina rebuffed Trump's threat. Every square meter of the Panama Canal and its surroundings belongs to Panama and will continue to be. The sovereignty and the independence of our country are non-negotiable.

Panamanian President Jose Raul Molino spoke there through an interpreter. Writing on Truth Social, Trump hit back saying, quote, we'll see about that. Well, Nathan, the fight over spending in Washington is being put on hold for another three months. President Biden has signed the stopgap bill that keeps the government running until mid-March. Senate Democratic Leader Chuck Schumer celebrated after the bill passed early Saturday morning by a vote of 85 to 11. This is a good bill.

It'll keep the government open.

But the new law does not include a suspension of the debt ceiling that President-elect Trump demanded at the last minute. Republicans abandoned an earlier bipartisan deal under pressure from Trump and Elon Musk. In the end, Musk came out in support of the final bill. In a post on X, he wrote that it went from a bill that weighed pounds to one that weighed ounces.

Let's turn to markets now, Karen, and get the latest on a big combination in the auto industry. Japanese carmakers Honda and Nissan have taken their first steps toward creating one of the world's largest automakers, signing a basic agreement for merger talks with the goal of combining by 2026. Makoto Uchida is the CEO of Nissan.

In order to work together, we need to benefit from the huge synergies. Otherwise, it wouldn't be meaningful in the eyes of the stakeholders. So that is why we agreed to start the discussion. That is why we are making this announcement today. That was Nissan CEO Makoto Uchida speaking through an interpreter. Former Nissan chairman Carlos Ghosn says he sees tough times ahead for the combined company. There is no complementarity. The two companies are two Japanese companies.

They are strong in the same fields. They are weak in the same fields. Both of them have very developed technologies. From an industrial point of view, there is duplication everywhere. Former Nissan chairman Carlos Ghosn spoke at the Foreign Correspondents Club of Japan. Mitsubishi Motors, which is 24.5% owned by Nissan, also signed the Memorandum of Understanding and is expected to be part of the combined group.

Well, we have more deal news this morning, Nathan. Rupert Murdoch's News Corp has agreed to sell Foxtel Group to sports platform DAZN Group. The deal that values the Australian paid television and streaming service at $2.1 billion. DAZN backed by billionaire Len Blavatnik is a prominent player.

And the broadcast of live sports. Here in the U.S., Karen, futures are pointed higher as we kick off the holiday shortened trading week. Major stock indexes are coming off their worst week since mid-November after the Fed's decision to be more cautious about cutting interest rates next year roiled markets.

And in Europe, Nathan, the U.K. economy failed to grow in the third quarter. GDP was unchanged in the three months through September. That's a downgrade from its previous estimate of one-tenth percent growth. The figures deliver a further blow to Prime Minister Keir Starmer, who came to power promising to boost jobs and living standards.

And it's time now for a look at some of the other stories making news in New York and around the world. And for that, we welcome back Michael Barr. Michael, good morning. Good morning, Karen. New York City police say they have a suspect in custody in the death of a woman after a man set her on fire and watched as she burned. Police believe the victim may have fallen asleep on a subway train before being intentionally lit on fire by a man she did not know.

Transit police apprehended the suspect after receiving a report from three high school students who had recognized the man. They had seen images of him taken from surveillance and police body cam video and widely distributed by authorities.

New York City Police Commissioner Jessica Tisch. I want to thank the young people who called 911 to help. They saw something and they said something and they did something. MTA Chief Security Officer Michael Kemper says cameras now in every subway car is a game changer. It offered detectives immediately answers to questions that they had. What happened?

Police believe the suspect, who has not been identified, arrived in the U.S. from Guatemala in 2018.

The arraignment of the man accused of killing UnitedHealthcare CEO Brian Thompson is expected later today, now that he's back in New York. Prosecutors said 26-year-old Luigi Mangione's handwritten notes express hostility towards the health insurance industry and wealthy executives in particular. Authorities said the notebook describes an intent to...

whacked the CEO of one of the insurance companies at its investor conference. There's word a big report is expected to be released today in Washington. According to CBS, the House Ethics Committee is expected to release its report on former Florida Congressman Matt Gaetz. The investigation focused on allegations of sexual misconduct and obstruction. Gaetz has repeatedly denied any wrongdoing.

If you are traveling for the holiday, expect crowds, delays, and traffic. At LaGuardia Airport, the TSA expects to screen 40 million passengers between December 19th and January 2nd.

The terminals are full. I mean, I've never seen them that full before. That's a 6.2% hike from last year. On the roads, AAA expects 90% of the travelers to drive to their destinations. That's about $107 million. For those taking the train, Amtrak temporarily suspended their northeast corridor line from Philadelphia to New York on Sunday morning due to downed power lines. And there are still problems today.

Global News, 24 hours a day and whenever you want it. With Bloomberg News Now, I'm Michael Barr and this is Bloomberg, Karen. All right, Michael Barr, 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.

To learn more, visit g.co slash workspace slash more secure. 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. Time now for the Bloomberg Sports Update brought to you by Tri-State Audi. Here's Dan Schwartzman. Dan, good morning. Good morning, Karen and Nathan. Giants setting a franchise record for futility with their 10th loss in a row. The give to Robinson, a cutback. Robinson bouncing outside and Robinson playing into the end zone for the touchdown.

That's courtesy of Fox Sports. Giants lose to rookie quarterback Michael Penix and the Falcons 34-7 in Atlanta. Drew Locke struggling, throwing for 210 yards with a touchdown and two interceptions. Both, by the way, returned by Atlanta for touchdowns. Giants right now hold the first pick in the NFL draft with a league-worst record of 2-13. Meanwhile, the Jets lose their 11th game of the season, falling to the Rams at MetLife Stadium.

19-9, Los Angeles outscoring the Jets 13-0 in the fourth quarter. Jets lose despite allowing just 110 passing yards to Matthew Stafford. Elsewhere, the Commanders ending the Eagles' 10-game winning streak, knocking off Philly 36-33, while the Bills outlast the Patriots 24-21.

The Mets bringing back starter Sean Minaya with a three-year $75 million deal. The lefty went 12-6 last year at the Mets with a 3.47 ERA. In the NHL, Rangers continue to struggle. They fall to the Carolina Hurricanes 3-1. Elsewhere, the Capitals knocking off the Los Angeles Kings 3-1.

Tiger Woods and his 15-year-old son Charlie finishing second in a thrilling PNC championship as Bernhard Langer hit an 18-foot eagle putt in a playoff to win the event with his son Jason for a second straight year with different sons. Charlie Woods, meanwhile, hitting his first hole-in-one at the par-3 fourth hole. That's your Bloomberg Sports Update. I'm Dan Schwartzman, 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. After last week's drama over government spending in Washington, D.C. and the shutdown averted, President-elect Donald Trump is hitting back at what he calls the latest political hoax against him. President Trump has ceded the presidency to Elon Musk.

No, no, that's not happening. The president-elect spoke at a conservative turning point conference in Phoenix, Arizona over the weekend after his last-minute bid to lift the debt ceiling as part of a stopgap spending bill backed by himself and Elon Musk also turned out to be not happening. For more, we're joined by Terry Haynes, the founder of Pangea Policy. Terry, thanks for joining us.

Good morning. What does it tell you that the president-elect even has to address this subject, the idea that Elon Musk has so much influence over his incoming administration that he might as well be president himself? Good morning.

Good morning, Nathan. And yeah, I think it's something he'd rather not be talking about. Trump has this habit, and one of the habits is kind of letting people run unsupervised for a while and maybe a little bit too long. And he ends up reeling them back in as he's done, but the damage is done.

And the damage here is not small, frankly, because he's fractured, Musk has fractured Trump's relations with congressional Republicans and, frankly, some Democrats who might support Trump on taxes, spending, and nominees even before he's taken office. That's about the least productive thing Musk could have done.

So do you expect Elon Musk to continue to have the kind of influence that he's had during the transition after President Trump takes office? My instinct is that Musk and Ramaswamy will continue through the Doge initiative to be out there and around. But I do expect his influence, his external influence to be somewhat circumscribed. You know, there's the...

And famous people, rich people, rich and famous people tend to think that sometimes that their every utterance is important. And it's not. And this is a lesson that I think Musk is learning to some extent. And to some extent, I think Trump's probably imposing that lesson upon him. So I don't expect him to be to.

to be any less out there, I do expect him to be somewhat less influential and frankly stay in his own lane a little bit more. Although, interestingly, the utterances that we're hearing now from Elon Musk include a new post on X this morning going after staffing at the Federal Reserve. I wonder what you make of that, whether we could see threats to Fed independence under an incumbent Trump administration.

Well, markets see that all the time, and I spend a lot of time talking about it with you and others. And the administration does not understand, frankly, that the Fed is not a fourth branch of government. The Fed is not part of the White House. The Fed is a creation of Congress. It exercises congressional power over the monetary supply and regulation around it.

And, you know, frankly, it's not up to the president and certainly not up to Mr. Musk's Doge initiative to suggest staffing levels at an agency that, frankly, is Congress's, not the president's. I expect he'll learn that down the road.

I wonder what you make as well of the president-elect going after Panama now, the fees at the Panama Canal, and even this morning reviving the idea of the United States buying Greenland. A lot of talk about global policy with less than a month to go until Donald Trump retakes the White House.

I spend a lot of time with markets talking about geopolitics and geopolitical risk. And the one thing you should take from all that, and you summarized it very well, is that defense spending, defense posture, geopolitical risk is going to be much more part of the Trump administration than I think markets appreciate right now. What the Panama and

Greenland initiatives have in common, frankly, is that what we're talking about really is a defense perimeter for the United States.

in both the Atlantic and the Pacific, and in particular warning the Chinese off controlling the Panama Canal through some sort of friendly arrangement with Panama. And so that is a precursor, I think, to a much more aggressive defense posture in a way that might discomfort markets a little bit.

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.

From hobby farmers to weekend gardeners and everyone in between, Tractor Supply trusts 5G solutions from T-Mobile for Business to make shopping more personal. Together, we're connecting over 2,200 stores with 5G business internet and powering AI so team members can match shoppers with products faster. You're all set. This is enriching customer experience. This is Tractor Supply with T-Mobile for Business. Take your business further at T-Mobile.com slash now.

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