Legacy technology has IT and cybersecurity teams feeling overwhelmed. Research shows that 59% of security decision makers feel unprepared for the future with their current tools. What can they do to stand on firmer ground? Learn more later in the podcast. Are you looking for a new podcast about stuff related to money? Well, today's your lucky day. I'm Matt Levine. And I'm Katie Greifel.
and we are the hosts of Money Stuff, the podcast. Every Friday, we dive into the top stories about Wall Street, finance, and other stuff. We have fun, we get weird, and we want you to join us. You can listen to Money Stuff, the podcast on Apple Podcasts, Spotify, or wherever you get your podcasts. Bloomberg Audio Studios. Podcasts, Radio, News.
Good morning, I'm Amy Morris. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with the markets as 2024 draws to a close. Futures are lower as we close out the week. This comes a day after stocks were little changed on Wall Street. Still for the year, the S&P 500 is up more than 26% and NASDAQ is higher by more than 33%. David Katz is president and chief investment officer at Matrix Asset Advisors.
We think that over the near term, there's more exuberance to come. The market is really charged on the day that it's happy. It's up a few hundred points on the day that it gets spooked, sits down a few hundred points. So we would not look at the short term trend is continuing. We do think things are going to change a little bit when you enter 2025. There are
big gains this year. So a lot of people can sell stocks right now because they'd be paying a lot of taxes. That changes January 2nd. You have a new administration take office late in January. They expect to put a number of the policies that they've talked about in place. We think the market could get spooked by that. So we would not follow the significant rally of the last few months and expect that to continue.
Matrix Asset Advisor, CIO David Katz, says while he expects some market exuberance, now is not the time to increase risk because he expects slower growth in the coming year. Well, Amy, a big focus for investors in 2025 will be Fed monetary policy. At his last policy meeting of the year, Jay Powell signaled fewer rate cuts in 2025. Drew Mattis, Chief Market Strategist at MetLife Investment Management, says the Fed is in a tricky position.
You never want to be too close to the edge if you're the federal reserve. I don't understand this fixation on ratifying market expectations, which quite frankly are absurd at times. Markets get ahead of themselves, and then particularly with regard to the Fed. The last thing you want to do is ratify an expectation for something now.
that's going to create an even worse expectation later. And that's the game the Fed is playing right now, and it's one that could end badly, particularly if inflationary accelerates for a period of time.
Met Life's Jerome Addis says the Fed may be forced to actually raise rates next year. Investors are also looking ahead to some economic data coming out later this morning. We get those details from Bloomberg's Denise Pellegrini. Economists say advanced retail inventories for November likely rose three tenths of a percent following just a one tenth percent gain in October.
One thing to watch for is whether motor vehicles drove the inventory build again, as more cars sit on dealer lots. We'll also get government numbers on wholesale inventories. Economists expect to build along the manufacturing line eased slightly to just one tenth of a percent month on month. That could suggest a slight economic pickup, but the numbers could also be skewed by buying or hoarding ahead of possible new Trump tariffs. Denise Pellegrini Bloomberg Radio.
Denise, thank you. In Asia, Nissan Motor shares declined the most since August due to investor concern over the terms of its planned deal with Honda Motor. At one point, the stock tumbled as much as 15 percent before pairing its loss to nearly 8 percent. The yelling Japanese automaker aims to establish and list a joint holding company with Honda by August 2026. The exact terms of the arrangement are yet to be decided.
And now the latest on that Azerbaijan plane crash media reports say it was hit by the Russia air defense. 38 people were killed. The plane was en route from Azerbaijan to Russia's city of Grozny when it changed course on Christmas Day. Neither Russia nor Azerbaijan offered any suggestions of what might have happened to cause the crash. We get more from Bloomberg senior reporter Henry Mayer.
No one is suggesting that it was deliberately attacked in the area where this happens, which is in the vicinity of Brosni, the capital of the southern Russian region of Chechnya as the plane was approaching. That is when the incident happened and at that time there was a lot of cranium drone activity in the area. So it looks very much like
This was a mistake, but of course Azerbaijan now wants some kind of an explanation from Russia. And also, once the plane came under fire, it was not allowed to land at a nearby Russian airport, which could have actually saved lives.
Bloomberg senior reporter Henry Mayer says 29 people survived. The turmoil in South Korean politics continues. Amy, the country's Parliament, has voted to impeach acting President Han Daksu. It's the latest blow to a government already reeling after President Yun Sukh Yul's suspension less than two weeks ago for his martial law decree. The impeachment was sparked by Han's refusal to appoint three judges to the Constitutional Court, which could finalize President Yun Sukh Yul's removal from power.
President-elect Donald Trump's threat of tariffs has set off a global supply chain freak out. The uncertainty and potential costs of those tariffs are causing widespread concerns, with many businesses expecting to pass on increased cost to customers and bracing for higher expenses and potential disruptions.
businesses worldwide are rushing to prepare for potential tariffs and trade wars leading to a surge in imports and supply chain disruptions. Companies are talking or taking rather preemptive measures such as front-loading orders, seeking new suppliers and renegotiating terms. Malaimi, the business world, mourning the death of Richard Parsons this morning. The executive was dubbed Captain Emergency for his record of stabilizing ailing companies. We get more with Bloomberg's Charlie Pellet.
Those companies included AOL Time Warner, Citigroup, and Dime Savings Bank of New York. Parsons was 76. He died at his home in Manhattan. The New York Times said the cause of death was bone cancer. Parsons was named chairman of CBS in September of 2018.
He resigned less than one month later citing complications from multiple myeloma, a blood cancer. Parsons was also chairman of the Rockefeller Foundation. In New York, Charlie Pellett, Bloomberg Radio.
And it's time now for a look at some of the 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. New York City Mayor Eric Adams is suggesting federal prosecutors take the case of accused subway arsonist Sebastian Zapata.
Police say the suspect killed a woman by setting her on fire on the subway last week. The move indicates the mayor's increasing willingness to work with federal law officials to remove migrants charged with crimes from the city. The woman's identity remains unknown. However, a vigil was held yesterday at the subway station in Coney Island. Reverend Kevin McCall with Crisis Action Network criticized onlookers for now to helping the woman. They're slogan in this
The city is, if you see something, say something. But no one said nothing. No one did nothing.
They just watched this young lady burn on fire alive. Reverend Kevin McCall with Crisis Action Network. A month after a stowaway on a Delta Airlines flight from New York to Paris, we're learning another attempt has been foiled in Seattle this week after a passenger got on board a flight to Honolulu without a ticket.
officials say the stowaway got off the plane and was eventually tracked out inside an airport bathroom. The TSA confirms the passenger was screened at a security checkpoint, but was somehow able to bypass the identity verification process and make it onto the plane without a boarding pass. Aviation analyst John Nance.
This has got to stop because there is a very definite security risk in having people get aboard without a ticket. Aviation analyst John Nance spoke to ABC. Parts of Texas, Louisiana and Arkansas are under severe weather watches as the National Weather Service predicts a storm system in the Gulf of Mexico could bring high winds, hail and possible tornadoes to the region.
more than 100 flights were delayed and dozens more were canceled Thursday at airports in Dallas and Houston. Finally tonight's mega millions of lottery jackpot drawing is now worth over $1 billion a jackpot that's been steadily growing since September. Many are ready to take their chance tonight like this man.
If I win, I'm buying people out. I'm buying businesses, I'm buying up blocks, I'm buying an island. Oh my, global news, 24 hours a day, and whenever you want it with Bloomberg News Now, I'm Michael Barr. This is Bloomberg, Karen.
I'm sure I can find an old toaster to sell them. I mean, Michael Barr, thank you. Well, thanks, Michael Barr. 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 lightning the load on their embattled IT and cybersecurity teams. To learn more, visit g.co slash workspace slash more secure.
What could you do if your data was working for you, and not against you? With Bloomberg delivering enterprise data directly to your systems, you get easy access to the details you want, optimized for higher-level analysis, and financial data experts committed to helping you maximize your every move. Our data is made for more, so you can show the world what you're made of. Visit Bloomberg.com slash Enterprise Data to learn more.
Time now for the Bloomberg Sports Update. It's brought to you by Tri-State Audi. We bring in Dan Shortsman for that. Dan, good morning. Good morning, Karen. The Seahawks keeping their playoff hopes alive with a big win in Chicago. Close it up in the air and it is intercepted.
By weak woman. That's courtesy of Amazon Prime with that interception. The Seahawks finishing off a six to three win over the Bears to improve to nine and seven Seattle getting two field goals from Jason Myers. Seahawks will be rooting for the Cardinals to beat the Rams on Saturday before the head to head match up with LA in a week 18 game and that of course would determine if they make the playoffs or not. Cowboys shut down wide receiver CD lamb for the final two games. The all-pro dealing with a sprained AC joint in his shoulder.
NBA action last night and that's rallying in the fourth quarter to knock off the Bucks in Milwaukee 113 to 105. Bucks are playing without stars. Yana sent to the Coompa or Damian Lillard elsewhere. Wizards knocking off the hornets at home 113 to 110 while the heat slip past the magic 89 to 88.
Dallas Mavericks announcing some bad news on guard Luca Doncic. As the team says, the officer will be re-evaluated in a month after sustaining a left-cap train in the Christmas day lost to the Minnesota Timberwolves. Both the NFL and the NBA did well ratings-wise on Christmas. According to Nielsen and the NFL, 65 million viewers in the U.S. tuned in to watch at least a minute of one of the two games. The Ravens Texans game averaged 24.3 million viewers, while the Chiefs Steelers averaged 24.1 million.
the two games becoming the two most streamed games in league history. The NBA also doing well with its five game schedule, averaging five and a quarter million viewers per game, its best holiday numbers in five years. NHL resuming its regular season after the holiday break with the Devils hosting the hurricanes while the Bruins are on the road at the Blue Jackets. That's your Bloomberg Sports Update. I'm Dan Schwartzman, Karen and Amy.
on Bloomberg Radio nationwide on Sirius XM and around the world on Bloomberg.com and the Bloomberg Business app. This is Bloomberg Daybreak. And we are watching the market says we are just days away from 2025 want to know what to expect. Jeffrey, you have been why remains cautious and he joins us now. Jeffrey, always a pleasure. Thanks for joining us. You are cautious, but are you bearish?
Not bearish. I'm just cautious and the only reason for caution is positioning. We've been specifying this for quite some time now. If I look at the dollar, if I look at domestic buying of US treasuries, if I look at equity positioning, the fact is people are really loaded up on US exceptionalism. Not saying that shouldn't be the case right now. Wait and see approach, but do you really want to be adding to already extended positioning, heading into year end and early phases of next year with new policies coming through?
I think that's where the need for caution is rather than being bearish on the economy or anything. Right. Those new policies are coming in with a new administration that's coming in. There may be some uncertainty around that. So how do you work around that?
Well, it really depends on what we're looking for. Firstly, on the tariff side of things, I think that's pretty much in the price. A lot of the economies, they are dealing with it. You're reporting specified in advance of that as well. Could there be deals to be done? Will things be better than expected? I think that's much more manageable because we did get a
a dose of that a couple of years ago during the first Trump administration. Secondly, which is probably more problematic in terms of positioning, again, is the US fiscal position. That's where we need to look at a longer-term plan. There's need for government efficiency, of course, but at the same time, something along the lines of debt sustainability.
If markets were concerned about France over the last few months or so and its budget trajectory, the OECD notes that probably the only large economy with a worse budget track in France is actually in the US and given the level of positioning globally in the treasury market right now and probably the lack of buyers up ahead because global surpluses are coming down, especially amongst the Asian savers, that's where in terms of policies we really need a closer look.
But now, while there is some uncertainty, as you mentioned, President-elect Trump has been there before, and he's sort of foreshadowed what he wants to do. He's already said he wants tariffs in place, not small ones either. So how would you bake that into your positioning?
I think we need to look at the individual markets. If I look at, say, China, for example, markets are very, very light in terms of their position, not just in China, but APAC in general. If I look at Canada, if I look at Mexico, there's been quite a bit of hedging coming through as well. If I look at the euro, euro hedging by our international clients, many of which are based in the US, that's at the highest level, so highest levels of hedges against the euro since 2002. And back then, euro dollar was at
I repeat at 0.8 or so. That's when the ECB was trying to prop up the euro. But then Europe reformed by itself. We had the heart sphere reforms under Schroeder and guess what? In a few years, euro dollar 160. OK, so I actually see this less about the US, but more as an opportunity for Europe due to external pressures, an opportunity for them to change again, just as was the case 20 years ago. And if there's more of a domestic component rather than exports, then tariffs
big deal Europe can manage by itself and certainly has the funds to do so well what we have about a minute here what are you looking for from the central bank
Well, from the central bank, ECB more cuts to come. I think there will be a chance of a 50 basis point of one of the coming meetings also. I think if I look at the Bank of England, for example, markets are way too, I would say, less than they're less established or even hawkish. I think Governor Bailey's one cut per quarter view from a few weeks ago. That still stands now from the Fed. However, the last kind of maybe the last one for a while, market pricing right now, very cautious easing. I think that's something that we can live with them for the time being.
But really, apart from the US everywhere else, especially in the developed world, it's more easing up ahead and probably more than markets are pricing it. 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 in 99 one in Washington Bloomberg 929 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 and your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Amy Morris. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.
There are two kinds of people in the world. People who think about climate change and people who are doing something about it. On the Zero Podcast, we talk to both kinds of people. People you've heard of, like Bill Gates. I'm looking at what the world has to do to get to zero, not using climate as a moral crusade. And Justin Trudeau.
There are still people who are hell-bent on reversing our approach on fighting climate change. And the creative minds you haven't heard of yet really don't need to have a tomato in December. It's gonna taste like nothing anyway. Just don't do it.
What we've made here is inspired by Shock Skin. It is much more simplified than actual Shock Skin. Drilling industry has come up with some of the most creative job titles. Yeah. Tell me more. You can imagine. Tool pusher. No. Driller. Motorman. Mudlogger. It is serious stuff, but never doom and gloom. I am Akshad Ratty. Listen to Zero Every Thursday from Bloomberg Podcasts on Apple, Spotify, or anywhere else you get your podcast.
