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 Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with politics and a new choice from Donald Trump to lead the Justice Department. The president-elect is nominating former Florida Attorney General Pam Bondi to run the DOJ. We get the story from Bloomberg's Doug prisoner.
The selection of Bondi comes after Trump's first pick Matt Gaetz withdrew from consideration. The former Florida congressman faced scrutiny over allegations of sexual misconduct. Now Gaetz denied them, but he lacked support among Senate Republicans to be confirmed. In Bondi, Trump is elevating another longtime ally with Florida roots. In the first Trump administration, Bondi worked out of the White House assisting in communications related to Trump's first impeachment trial.
and is Florida AG, Bondi earned national attention for her efforts to overturn the Affordable Care Act. In New York, I'm Doug Krisner, Bloomberg Radio.
All right, Doug, thank you. Well, Matt Gates may be out as Attorney General, but there's still a push on Capitol Hill to release the House Ethics investigation on the former Florida Congressman. Illinois Democrat Sean Castan sits on the Ethics Committee. It matters for the integrity of the law. It matters for the integrity of this House, and it matters for the respect that we expect the American people to give us, that those of us entrusted with this job will uphold the United States as a land where all are treated equally under the law.
Democratic Congressman Sean Caston there. Besides the misconduct accusations, Gates is facing campaign finance questions. Federal filings show the former congressman's main campaign arms spend $1.2 million on e-merchant fees to stripe the San Francisco-based FinTech. That's about 19 percent of Gates' contributions and campaigns typically spend one to four percent on payment processing.
Karen President-elect Trump still hasn't made a decision on a Treasury Secretary, but there is new word on how his thinking around the position is going. According to the Wall Street Journal, Trump is considering naming former Fed Governor Kevin Walsh to lead the Treasury Department, then putting him in charge of the Federal Reserve when Chairman Jay Powell's term ends in 2026.
At the same time, Trump could pick key square group founder Scott Bessent to lead the National Economic Council, then take over Treasury if Orish becomes Fed Chair. AIDS tell the journal Trump could change his mind. He is also considering Apollo Global Management CEO Mark Rowan for Treasury.
Well, another major story we're following this morning, Nathan, involves a warning from U.S. intelligence and national security agencies. It's about a sabotage threat from Russia. We get the details from Bloomberg's Oliver Crook. This is part of this sort of broader conversation that we've been having for a long time in Europe and in the United States about the sort of hybrid warfare that Russia has been waging in various different sectors, whether it's sort of in civilian infrastructure or just sort of some sort of psychological dimensions. And of course, the question of
social media, all of these sorts of things. But this is specifically directed at defense companies, warning basically that there could be active Russian sabotage operations in the United States and also abroad. And this is also coming as sort of Russian intelligence groups allegedly also try to identify and recruit individuals, sort of insiders of these industrial bases to try to sort of convert them or get information from them.
Bloomberg's Oliver Crook says President Biden's outgoing administration has warned allies about the risks of stepped-up Russian sabotage if the U.S. and its allies allowed Ukraine to fire Western weapons deep inside Russia. Meanwhile, Karen, the U.S. has confirmed Russia fired an experimental intermediate-range ballistic missile at Ukraine. President Vladimir Putin says the attack was in retaliation for Ukraine's use of American and British-made missiles earlier this week.
We consider ourselves entitled to use our weapons against military facilities of those countries that allow their weapons to be used against our facilities. And in the event of an escalation of aggressive actions, we will respond decisively. In a televised address in Russia, Vladimir Putin warned U.S. air defense systems would be powerless to stop the new missile. He says it flies at 10 times the speed of sound.
Well, Nathan, now to the latest on the war between Israel and Hamas, Benjamin Netanyahu is criticizing the International Criminal Court for issuing arrest warrants against him and a former minister and said his government won't be deterred from continuing its war against Hamas and Gaza.
I want to thank our many friends around the world, especially those in the United States, who have condemned this outrage, and who have said that this decision will have severe consequences for the ICC and those who cooperate with its decision. Israel will not recognize the validity of this decision. Nanyahu says the court's announcement was anti-Semitic and Israel will keep defending its citizens. The ICC also issued a warrant for Hamas Commander Mohammad Dave, who Israel said was killed in Gaza months ago.
Turning to markets now, Karen futures are lower following yesterday's Dow led rally on Wall Street. Bitcoin is on the rise again, nearing the $100,000 level. Right now, the digital token is just shy of 99,000. Mike Regan is Bloomberg's crypto team leader. He says it's not just because President-elect Donald Trump wants to deregulate the crypto industry that Bitcoin's moving on up. He says it's about Trump's promise to create a strategic Bitcoin stockpile.
The market is thinking there's a good chance of that. And not only that, that other governments will have to follow suit if the US suddenly is treating Bitcoin like a major reserve asset. Other governments will likely be inspired to do the same. So that's kind of the backdrop for this just parabolic rally to the upside that we've seen. Bloomberg's Mike Regan says the crypto market as a whole has gained more than $900 billion since Trump's election win.
On 8th and the Euro trading at its lowest level in two years and traders ramping up bets on interest rate cuts from the European Central Bank. The drop comes after gauges of business activity and the Blanc's two biggest economies contracted more than expected. Rachel Evans, managing editor for FX and rates for Bloomberg News, says traders have up December rate cut bets from 15 percent yesterday to 50 percent today. These are
bad data figures. They are going to have to look at these and think about, does that really make sense for them to kind of continue with their hawkish stance? Or do they need to think about, you know, even if they're not going to go big in December, adding to bets next year? And indeed, the market is now predicting six bets by the ECB in 2025. Bloomberg's Rachel Evans says the Euro slide follows the composite PMI shrinking to 48.1 from 50 in October.
In merger news, Karen, a deal to create the largest U.S. pay TV service is all but dead. Direct TV has notified Echo Star of its intention to terminate an acquisition of Dish Network after they failed to win the consent of bondholders for a key debt exchange under the terms of the original transaction.
Direct TV was to acquire dish and sling TV from Echo Star for a dollar plus the assumption of about nine and three quarter billion dollars in debt. Direct TV, which is owned by AT&T and joint venture partner, TPG, would have become the largest paid TV provider in the US with about 18 million subscribers.
Some stocks on the move this morning, Nathan, gap. It is up more than 14 percent. The operator of Old Navy and Etheleta raising its full year outlook for sales. The apparel retailer says all of its brands are gaining market share on the flip side. Karen shares of Intuit are falling by more than 5 percent. The maker of TurboTax tax prep software gave a sales and profit outlook for the current quarter that fell short of analyst estimates.
It is 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 happy Friday, Karen, the federal government, including TSA air traffic controllers in the airline industry. They're getting ready for a record breaking Thanksgiving holiday week. Let's get more from Washington and Bloomberg's Amy Morris.
Transportation Secretary Pete Buttigieg told the Senate Appropriations Committee that the regulations put in place in the past four years are supported by passengers pretty much across the board. The public has been universally supportive. Any airline that failed to proactively offer refunds to passengers could be in violation of federal law.
The CEOs of Delta and Southwest Airlines say they hope the government will be more pro-business when President-elect Donald Trump returns to office in Washington, Amy Morris, Bloomberg Radio. Senator Bob Casey, part of the Democratic political dynasty, has conceded to his Republican opponent, David McCormick, and the Pennsylvania Senate race, a race that was so close it triggered a recount
McCormick was declared the winner by the Associated Press earlier this month until the state ordered the recount because the margin was less than 0.5 percent. The Commonwealth Secretary said this was the only the eighth time that the recount provision was triggered since 2004 when the state law was passed. A flash drought that has taken hold of much of the U.S. is threatening to push beef prices higher and could damage winter wheat crops across the Great Plains. The amount of land affected by all classes of drought
increase through October across the country now covers more than 45 percent of the contiguous U.S. while the dryness in the east has lent wildfires and water shortages. It's the drought across the Great Plains that has lent to higher beef prices. And more than 60 years after President John F. Kennedy was assassinated conspiracy theory still swirl. President-elect Donald Trump promised during his reelection campaign he would declassify all the remaining government records surrounding the assassination.
Today's 61st anniversary will be marked with a moment of silence and daily plaza where Kennedy's motorcade was passing through, but he was fatally shot. Global News 24 hours a day, whenever he wanted 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 lightning the load on their embattled IT and cybersecurity teams. To learn more, visit g.co slash workspace slash more secure.
The forces shaping markets and the economy are often hiding behind a blur of numbers. So that's why we created The Big Take from Bloomberg Podcasts, to give you the context you need to make sense of it all. Every day, in just 15 minutes, we dive into one global business story that matters. You'll hear from Bloomberg journalists like Matt Levine. A lot of this meme stock stuff is, I think, embarrassing to the SEC. Follow The Big Take Podcast on the iHeartRadio app, Apple Podcasts, or wherever you listen.
Time now for the Bloomberg Sports Update brought to you by Tri-State. Audi, here's John Stashauer. John, good morning. Good morning, Karen. The Yankees in their history have won more than their share of MVP wars. Yogi Bear won three. Roger Maris and Alex Rodriguez too. But only once Mickey Mantle and his Triple Crown season of 1956 had a Yankee won the MVP unanimously. Aaron Judd got every vote after a season where he hit three 22 with 58 home runs and what Judd was most pleased with 144 RBIs.
I try to like look back on the season and see where I could try to improve and get better for the next season. And that's one aspect of my game I wanted to improve on. It's just driving more runs in and it definitely helps. And you got a lot of guys on base in front of you. Judge on ESPN, Joey Otani won NL MVP. That was also unanimous.
This upset in the NFL, Cleveland came in two and eight, Pittsburgh eight and two, yet the Browns early fourth quarter took a 12-point lead. The Steelers rallied. They hadn't scored a touchdown in the last seven quarters. They scored two TDs in a minute 42 and led by one, but the Browns drove and scored in a heavy snowstorm with a minute left to win 24 to 19. Daniel Jones will only three games over the last two seasons. He admitted in a prepared statement. That's why he's no longer the Giants starting quarterback.
They've been some great times, but of course we all wish there'd been more of those. I take full responsibility for my part in not bringing more wins. No one wanted to win those win more games worse than me.
I gave everything I had on the field and in my preparations. Almost certain Jones won't play for the Giants again. Spent part of yesterday's practice on the scout team playing safety Rangers lost 3-2 in Calgary. Devils beat Carolina 4-2. Islanders lost 2-1 at Detroit. Heartbreak for St. John's. In the Bahamas, the Red Storm led Baylor by 14 at the half and by five with 18 seconds left in the second overtime. Baylor won with a three pointer at the buzzer. Seton Hall in Charleston, South Carolina won an overtime over VCU. John Stash, Edward Bloomberg Sports.
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 Gates out. Bondi in president like Donald Trump has named former Florida Attorney General Pam Bondi to be his attorney general hours after Matt Gates abruptly pulled himself from the running saying he didn't want to be a distraction. But Republican Senator Kevin Kramer says Gates just didn't have the votes.
simple math. I think it was made clear that there's not a path and if there's not a path, you just you're going to spend a lot of political capital for losing cause. Republican Kevin Kramer there on the shifting deck chairs in the Trump cabinet decision making. For more, we are joined by Bloomberg's Kevin White Law and Kevin. So Matt Gates is off the scene, but Pam Bondi may be Florida's former attorney general, but a pretty familiar name inside the bellway is someone very loyal to this incoming president. Good morning.
Hey, good morning. With Pam Bondi, she's picking someone whose qualifications are a lot more straightforward for the job than Matt Keatsons ever were. She served eight years as Attorney General in Florida and has an illegal career on both ends of that. But she also served as part of Trump's impeachment defense, was connected to various parts of his first term.
and has worked at a think tank associated with him and been basically a staunch loyalist in TV appearances and other venues throughout basically the whole time. So yeah, he's still picking someone who he feels is going to be loyal to him, is going to carry out his agenda, but she does have a much more extensive legal experience and has obviously served in a similar kind of role for the state of Florida.
The Attorney General position is typically seen as having a firewall between the Justice Department and the White House. Could Pam Bondi's ties to former President Trump be a hindrance once she faces Senate confirmation?
I mean, I think at this point, given the fact that she is qualified and given the fact that the Senate already made it clear that they weren't able to take the first one, I think her path is probably a lot clearer, although obviously it's still early days to sort of figure that one out. It doesn't seem to, you know, from what we've seen so far that Republicans are all that concerned about
sort of that loyalty factor. But I definitely think that for Democrats, there's an enormous amount of concern that the traditional sort of boundaries of a slightly independent justice department are not going to be in place under a Trump administration. But I think that's probably true almost no matter who he picks. Now, if Bank Gates didn't have the support from Senate Republicans on Capitol Hill, could some of Trump's other cabinet picks be watching their back now?
Well, yeah, I mean, I do think that there's clearly some questions surrounding his choice to run the Pentagon. I think some of the allegations that have started to come out, including police report about a possible sort of encounter.
are definitely something that is worrying a number of Republican senators. It's not clear yet they're ready to block him over that, but it is going to give them cause for concern. I also think Tulsi Gabbard's nomination for director of national intelligence has raised some concerns given some of the statements she's made about Russia and Syria and other things.
unclear as to whether they'll muster any kind of objection. You know, Trump does have a margin of a couple of senators. So it does take basically four senators would have to vote no to deny him any
Confirming his nomination. That may be, you know, tough to assemble, given, given, you know, the Republicans' desire to support Donald Trump. Still a lot to watch as the cabinet filling continues. Thanks, Kevin. Bloomberg's Kevin White Law there with us this morning. Karen.
Well, Nathan, we want to turn now to our discussion with Citadel founder Ken Griffin. Griffin sat down with Bloomberg Shinale Bassick at the Economic Club of New York discussing a range of topics, including the election and President-elect Trump's economic proposals. Let's listen in. The American voters have said, resoundingly, that immigration and inflation are two of the most critical problems that our country faces. And immigration is an area that the Trump administration is going to be very focused on.
And it's an area of real concern to me because much of our nation's success is rooted in our ability to attract the best and brightest from around the world to work for American firms and to start American firms. Roughly half of all the firms in the Silicon Valley that have been launched in the last 20 years are led by immigrants. And I would say roughly the majority of Citadel's leadership team
is immigrants. These people that have come to this country, they've left everything behind because they believe in the American dream and the opportunity that our country represents. And yet, I think everyone agrees that the chaos on the southern border
represents a broken immigration policy where there's very little control over who comes into our country, whether they come here to pursue the American Dreamer for more nefarious reasons, I think there's widespread agreement across our country that we need to secure our southern border and that we need a far more orderly structure for immigration to America. So this has been a really important
voice that the American voters have delivered to Washington. And I'm pleased to hear that voice, but I'd like to see Washington now execute an immigration policy that is thoughtful, that protects this nation's great stature in the world of being the country you come to to pursue your dreams.
Prior to the election, you had the committee for the responsible federal budget saying that you would really have an administration with the proposed policies that would add $7.5 trillion to the national debt over the next decade. How do you start to trim that fat? I mean, how do you start to bring that number down?
So here's the question. How much did both candidates run on a strategy of promise the world and then deliver reality post-election? I mean, neither party had a compelling story as to how they were going to put America's physical house order.
And I think it's very difficult to have judged either Vice President Harris or President Trump on the merits of their economic policy, because neither set forth a plan that was substantive, tangible, and would achieve the results that we need for the American people.
I think that's part of the reason that, for example, the Secretary of Treasury is so important, the role of the Senate, the role of the House. We're going to have to see the Republicans govern and make some very difficult decisions about where to cut, what tax cuts, if any, happen or are maintained. We've got to put the fiscal House in order. And these are really unpopular decisions for politicians to make.
A big part of that $7.5 trillion projection really does come from tax cuts more than you've seen in 2017. Do you think any of those can get done with where the deficit stands today? Of course, this administration is very different than when we saw Trump back then, given the size of the deficit ballooning. So in both scenarios, Trump has inherited the following problem.
American productivity is below where it needs to be for us to deliver on the promises that we have delivered to our retirees and our forthcoming retirees. There's no way out of our current situation in terms of the promises that we've made, other than to get American productivity. I think in the first set of tax cuts, and to be clear, I think Trump made a bet, if we cut taxes,
If we incentivize corporations and investors to take more risk, to put more money into R&D, to put more money into capital, to put more money into software and to modernize their businesses, we will get the productivity gains that we need. I will never know the answer to that because the pandemic hit shortly thereafter. We just won't know. And then the Biden administration, I think one of the real challenges for American business is the Biden administration was four years
of extremely difficult regulatory policy, and an extremely activist, both DOJ and FTC, that really struck at the core of America's competitiveness and our ability to increase productivity. So the big problem is we've got to get productivity growing. I don't think we have the fiscal room to cut taxes from where they are today.
And I think there's a real question about where do we need to raise taxes to start to put our house in order. You said just a couple of days ago, you're anxious about the president-elect's willingness to engage in tariffs as a matter of trade policy. What does the economy look like if he's successful in carrying out the policy that he campaigned on?
I am gravely concerned that the rise of tariffs puts us on a slippery slope towards cronyism capital. So when you implement tariffs for the American companies that produce goods in America, there's unquestionably a short-term benefit. You've just taken your competitors and severely disadvantaged them.
The challenge with this, and we know this from the history of economics, those same companies that enjoy that momentary sugar rush of having their competitors removed from the battlefield, soon become complacent.
soon take for granted their newfound economic superiority, and frankly, they become less competitive on both the world stage and less competitive at meeting the needs of the American consumer. And then, of course, once you're in this world where companies know that their very existence
is because of tariffs. Notice that the tariffs came down. They wouldn't be able to compete. They wouldn't be able to thrive. Now you're gonna find the halls of Washington really filled with the special interest groups and the lobbyists as people look for continued higher and higher tariffs to keep away foreign competition and to protect inefficient American businesses that fail to meet the needs of the American consumer.
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 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 Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.
The forces shaping markets and the economy are often hiding behind a blur of numbers. So that's why we created The Big Take from Bloomberg Podcasts, to give you the context you need to make sense of it all. Every day, in just 15 minutes, we dive into one global business story that matters. You'll hear from Bloomberg journalists like Matt Levine. A lot of this meme stock stuff is, I think, embarrassing to the SEC. Follow The Big Take Podcast on the iHeartRadio app, Apple Podcasts, or wherever you listen.
