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Bloomberg Audio Studios. Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. We begin with breaking news out of Russia. Ukraine has carried out its first strike in a border region within Russian territory with a US-made missile. This is according to RBC Ukraine citing an official in the nation's military.
The news came as Russian President Vladimir Putin approved a change to the country's nuclear doctrine that allows for the expanded use of weapons. According to a document published by the Kremlin, the updated doctrine includes a possibility of a nuclear response to aggression by non-nuclear states that is supported by other nuclear powers. And we get more from Bloomberg's Bill Fairies.
Throughout this conflict, we've seen him raise the specter of nuclear weapons as a threat against the West. It's worth noting that if China has any real red lines and its support for Russia, one of them has been no first use of nuclear weapons.
Putin went that far. There'd obviously be a whole range of consequences, but he would potentially be putting his biggest backer in a very difficult position as well. But I think, yes, I think this latest maneuver, I think it's his way of providing a response, a quick response to what appears to be Ukraine's use of these weapons now.
Bloomberg's Bill Ferries adds that the changes also say Russia may use nuclear weapons upon receiving information about a launch of ballistic missiles attacking Russia or its allies. When staying with geopolitics, Karen, day two of the G-20 leader summit gets underway this morning in Brazil, Bloomberg's David Gura is there with the latest.
U.S. President Joe Biden is focused on his legacy and on the work he's done and continues to do on climate and the war in Ukraine. But Biden has only a few weeks left in office before Donald Trump returns to the White House, and that has diminished his role here at the G20 summit in Rio de Janeiro.
Biden is not holding many one-on-one meetings with other world leaders, and he's seated much of the spotlight to other heads of state. Biden even missed the G20 photoshoot, a highly choreographed moment, along with Prime Minister Justin Trudeau and Georgia Maloney. David Gura, Bloomberg Radio, Rio de Janeiro.
All right, David, thank you. Back here in the U.S., President-elect Donald Trump may be getting closer to a decision on the next Treasury Secretary. Sources tell Bloomberg News, his team is thinking of pairing Kevin Warsh in the Treasury role, but Scott Besant is head of the National Economic Council. Bloomberg's very Valerie Taitel has more on Warsh.
He is a former Fed governor. He was also rumored to be picked for the Fed Chair in 2017, but Trump was swayed by his then Treasury Secretary to go for Powell instead, a move that he has said that he now regrets. Hillary's Valerie Teitel reports there's some concern about whether wars should be loyal enough to Trump's economic agenda. He wrote a 2011 op-ed with Jeb Bush warning of the quote, rising tide of economic protectionism.
Meantime, Nathan, there are more signs. One of Trump's confirmed cabinet picks will face a tough confirmation process. Senators from both sides of the aisle are demanding more information on the House ethics probe into Matt Gaetz. Trump's choice to be attorney general. Gaetz is accused of sexual misconduct and illicit drug use, though he's denied wrongdoing. House Speaker Mike Johnson insists the panel's report should be kept confidential.
to use the house's resources in a manner that is virtually unprecedented, I think, is a breach of protocol.
Still, the top Republican on the Senate Judiciary Committee says he expects the women who spoke to the ethics panel behind closed doors will testify before them. The committee will meet tomorrow to discuss how to handle its report. Axios reports, President-elect Trump has been calling senators personally urging them to support Gates. And Karen, the president-elect has also confirmed his plan to use the U.S. military as part of a mass deportation program. We get more on that from Bloomberg's Amy Morris in Washington.
Trump wrote true on his truth social network and a reply to a post from the president of the conservative legal group Judicial Watch, who said Trump was reportedly prepared to declare a national emergency and use military assets for a mass deportation program. While on the campaign trail, Trump did pledge to secure the border with Mexico by finishing construction of a wall and carrying out mass deportations.
Trump and his team have not outlined how they'll carry this out. It will take substantial funding from Congress and cooperation from other countries. It may face legal challenges in Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. Well, hedge fund Titan, Ken Griffin says he's quote very anxious about Donald Trump's potential tariff policies. Speaking to the UK's Oxford Union, the Citadel founder and Republican donor said tariffs are a long slippery slope
that can be profitable in the short run, but damaging to U.S. companies' ability to compete globally in the long run. Morgan Stanley, CEO, also voiced concerns about the changing economic environment for business. Here's what Ted Pick told the HKMA Global Financial Leaders Summit.
In a sense, there is an inflationary backdrop, and there is now the additional complication of the potential for tariffs and actually net emigration also would be inflationary.
As for geopolitics, Morgan Stanley's Ted Pick said there was still need for a greater transparency in Chinese regulations and policymaking. Well, in legal news, top antitrust officials at the Justice Department have decided to ask a federal judge to force Google to sell off its chrome browser. Begin more with Bloomberg's Doug Kristner.
We're told the DOJ will ask federal judge Amit Mehta to also require measures related to artificial intelligence and Google's Android smartphone operating system. Mehta is the same judge who ruled back in August that Google illegally monopolized the search market. The DOJ officials, along with states that have joined the case,
also plan to recommend Metaimpose data licensing requirements. And if Meta accepts these proposals, they have the potential to reshape the online search market and the developing AI industry. By the way, this case was filed under the first Trump administration and continued under President Biden. In New York, I'm Doug Kriesner, Bloomberg Radio. Doug, thank you. We get earnings this morning from the world's biggest retailer, Bloomberg's Tom Busby's here with a preview on what investors are looking for from Walmart.
With a lot of Americans pulling back on their discretionary spending this past quarter, investors expect Walmart's core shoppers and newer, higher earning customers to give a boost to sales of groceries and other essentials. Also in focus, the outlook for holiday spending and consumer health. Bloomberg consensus calls for comp sales at U.S. Walmart stores to rise 1.2 percent, revenue of 167.51 billion and adjusted earnings per share of 53 cents. Tom Busby, Bloomberg Radio.
All right, Tom, thanks. Another company news shares a super microcomputer surging 29 percent in the pre-market. The server maker says it has hired a new auditor, BDO USA, and filed a plan to come into compliance with NASDAQ listing requirements. Super micro is facing a Department of Justice probe, and last month, its auditor Ernst & Young reside, citing concerns over super micro's transparency in governance. Shares have tumbled more than 85 percent from a peak in March.
Karen Blackstone may be hungry for an acquisition. Bloomberg News has learned the New York-based money managers close to an agreement to buy the sandwich chain Jersey Mikes for about $8 billion, including debt.
532 on Wall Street. We bring in John Tucker now with more on what else is going on in New York and around the world, John. Good morning, Karen. New York City has issued its first drought warning in 22 years. It comes after months of little rain and is going to restart the flow of drinking water from an out of service aqueduct as supplies run low. Dry conditions across the Northeast have been blamed for hundreds of brush fires.
They had already prompted New York City and state officials to implement water conservation protocols where Mayor Eric Adams upgraded the drought warning and temporarily halted an aqueduct repair project that had stopped drinking water flowing from some reservoirs in the Cascale region.
A stabbing rampage has left three people dead Manhattan. It happened yesterday morning. Police say the attacks were random. A 52 year old suspect is now in custody. Investigators are working to understand what propelled the rampage which happened within two and a half hours. It happened across a swath of Manhattan with a third fatal stabbing by the United Nations. The US is planning to make a huge investment at a new semiconductor research institute. Let's get more in this report from Bloomberg's Jeff Bellinger.
The Institute is a total $1 billion investment. It will be headquartered in North Carolina and run by semiconductor research and industry consortium. It will receive funding from the 2022 Chips and Science Act. The latest investment has the goal of reducing the cost and time of chip development by roughly a third.
The Commerce Department says within five years the new institute will help speed technology development, reduce the greenhouse gases associated with chip manufacturing by 25 percent, and train more than 100,000 students and workers on digital twin technology. Jeff Bellinger, Bloomberg Radio.
Ahead of Friday's hearing on his bail, prosecutors claim that music mogul Sean Diddy Combs has been trying to contact witnesses and victims from behind bars accusing him of trying to influence the jury pool and subvert his criminal case. Prosecutors say he offered to pay one witness if she would make a public statement of support.
And managing the virtual world of Roblox is becoming easier for parents with the latest platform updates, popular on-game environment for kids rolling out new parental controls. Parents can now remotely change how much time their kids are playing on the platform, lock private messaging options, or even choose maturity levels that their kids are experiencing. Roblox is also turning off private messaging for kids under the age of 13.
Global news 24 hours a day, and whenever you want it with Bloomberg News Now, I'm John Tucker, and this is Bloomberg. Karen. Sorry, John. 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.
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. It was a couple of years ago that the Giants had to make a big decision. Give the big money to Daniel Jones or Saequan Barkley. They chose Jones. The decision has not gone well. Barkley's now with Philadelphia. I candid it to be the NFL MVP. Jones is now the Giants' third string quarterback. Coach Brian Dayball has put him on the bench. Sunday against Tampa Bay. His starting QB will be Tommy DeVito.
We're obviously not playing the way any of us want to play. And that's on all of us, but felt like this was a decision that we needed to make here and try to spark things, change things up. And we went and did it with Tommy. Again, we spent a lot of time here over the last week of evaluating a lot of things and just felt like this was the best thing for us.
Divino did create a buzz last season when Jones was injured. The New Jersey kid living with his parents led the Giants to three straight wins. Drew Locke will remain the backup QB. Jones cashed in into a strong 2022 season. But since then, 13 interceptions, a three and 13 record the Giants this year, two and eight, 0 and five at home. Dallas Cowboys not much better. Three and seven also 0 and five at home there without their QB Dak Prescott. And they just lost to Houston 34 to 10. Joe mixed in three touchdowns to the Texans.
with the guard. Nick's put up 40 points of the first quarter. The route was on 134 to 106 over Washington has lost nine in a row. The next begin a five game road trip tomorrow in Phoenix. Rangers are on the road plate tonight in Vancouver. The capitals 162 at Utah. Two goals for Alex Oveskin. Bruins fell under 500 lost at home to Columbus 5 to 1.
Luis Hill is the first Yankee pitcher to win rookie of the year since Dave Reghetti in 1981. He made it to the rotation due to Garrett Cole's injury and he stayed in by winning 15 games. Pirates, phenom, Paul Skeens, a runaway choice in the National League. The Hall of Fame ballot is out among those on it for the first time. Ichiro Suzuki and C.C. Savathia. John Stashnauer, Bloomberg Sports, Karen, anything?
All right, John, thank you. And the Bloomberg Sport Support brought to you by Audi. Visit your Tri-State Audi dealer today and get behind the wheel of the Audi model you've always wanted.
Coast to Coast on Bloomberg Radio nationwide on SiriusXM and around the world on Bloomberg.com and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. We are seeing a risk off move in the market this morning with reports that Ukraine has carried out its first strike inside Russia with Western supplied missiles
That's as Russian President Vladimir Putin has signed a new decree allowing for expanded use of nuclear weapons in response to a conventional attack. Let's bring in Bloomberg News Director for Europe, the Middle East, and Africa, Rosalyn Matheson for more on this, along with Bloomberg News senior editor Bill Fairies.
It's good to have you both with us this morning as we continue monitoring these developments in the Russia-Ukraine War. Roz, what do we know, first of all, about this reported strike using ATAKAM's missiles?
Well, what we have a Ukraine media report saying that AKA have did in fact carry out its first strike using these attack arms army tactical missile systems on an ammunition dump in an area that's just pretty much over the border about 70, 75 miles from the border between Russia.
and Ukraine. So a limited action if true and in line with what we were hearing beforehand in terms of the US authorizing the use of these weapons for some long-range strikes inside Russia to say that they had to be kept at least for now very much in those border areas. And these are parts of Russia where Ukrainian troops have been on the ground inside Russia fighting
Russian forces. So in the realm of what you would think of as the theatre in a way of this conflict. So would be a limited move if true, but also quite quick of the back of that announcement from the US that they are going to give Ukraine permission to use these weapons on Russian soil.
And it comes, Bill, as I just mentioned, that it so happens that Russian President Vladimir Putin has signed this decree, a new nuclear doctrine for Russia. Can we see this as a response to the Western supply of these longer-range missiles for Ukraine?
Well, I think you can in the sense that he's published this document detailing a little bit more of Russia's policy. I mean, this is something he talked about in September. And we have seen since the beginning of this conflict a lot of Russian saber rattling. You'll remember it was in the spring of 2023.
when Putin announced that he would be moving some tactical nuclear weapons, battlefield nuclear weapons into Belarus, which was a highly unusual move. But throughout this conflict, we've seen him raise the specter of
nuclear weapons as a threat against the West. It's worth noting that if China has any real red lines and its support for Russia, one of them has been no first use of nuclear weapons. So if Putin went that far, there'd obviously be a whole range of consequences, but he would potentially be putting his biggest backer in a very difficult position as well.
But I think, yes, I think this latest maneuver, I think it's his way of providing a response, a quick response to what appears to be Ukraine's use of these weapons now.
And Roz, up to now, this has come at a time when there's been a pretty breakneck effort by outgoing President Biden to shore up support for Ukraine. Ukrainian President Vladimir Zelensky has been talking about once President-elect Trump comes in, there's probably going to be a quick end to the war in some way. How could these latest developments sort of alter the calculus going forward?
Well, the latest developments, at least if this missile strike is confirmed, it doesn't tangibly change the trajectory of the war on the ground, although obviously been seen as an escalation, and we can see that in the rhetoric from Russia. Today, as Bill was saying, the timing of the announcement on the nuclear doctrine
that Vladimir Putin had signed it is interesting even though this is a doctrine they were talking about a change to months ago so the details themselves are not new or surprising so escalation there but also really you see Russia and Ukraine both trying to position themselves to be in the most advantageous position you know for the reality of that negotiations or talks
are likely, you know, Russia will have to feel that it's in their best interests to talk and to get some kind of negotiation. Going Ukraine needs to be in the strongest position, and that's very much the messaging that's coming from Ukraine's allies publicly at this point, a recognition that military and financial aid will start to slow, particularly from the US. And so the positioning is going on. You can see that from both Russia and Ukraine, and that's likely to be very much the case.
over the next couple of months until we have the Donald Trump back in the chair as president. And Bill, of course, this is coming at a time as well when we've seen North Korean troops move alongside Russian forces on the front lines. President Biden was saying that this authorized use of long-range missiles was a reaction to that as well. Where could we see this conflict go in the short to medium term as we are in the midst of this Trump transition?
Well, right. I think the North Korean, the North Korean troops are also a game changer in this situation. I mean, you have intelligence reports saying that while there's 10,000 North Korean troops in Russia now preparing to fight against the Ukrainians, there could be through rotations as many as 100,000 over time. That's a huge advantage to Russia in terms of replacing troops in terms
in terms of potentially expanding the battlefield. As Ross said, I think both sides are going to be intensely jockeying for all the leverage they can get at this point. For Ukraine, that means holding as much of that cursed region of Russia, that it
that it captured earlier this year. I think for Russia, it means pushing in across the entire front. And if they can do that with North Korean troops from their perspective, all the better. So I think the West has seen this arrival of North Koreans as an escalation, just as Russia sees the use of these attack missiles as a separate escalation here.
Speaking with Bill Ferry, senior editor for Bloomberg News and Roslyn Mathis and our news director for Europe, the Middle East and Africa. Since we've seen this decree signed just this morning by Russian President Vladimir Putin, it's worth going into detail on what the significance is of this change in the nuclear doctrine for Russia. How big a change is this from what we understand from the decree?
Well, it seems to be around the parameters of what Russia would say, you know, allows it to respond with the use of nuclear weapons. And one is a very large scale. And how do you define that conventional attack on Russia? That's quite a broad church there, potentially. And secondly,
that an attack on Russia by a non-nuclear state, i.e. Ukraine backed by a nuclear state, i.e. the US, would be seen as a joint attack on Russia involving a nuclear state and thereby a condition that could allow Russia to respond with nuclear force. And so some of the conditions that they would say are laid out for themselves for when they could use a nuclear weapon.
But we've seen throughout this conflict, as Bill was saying earlier, Russia has said repeatedly quite regularly throughout this. It raised the prospect of using nuclear weapons. At each step of the escalation, it says that comes from Ukraine or others, the use of certain types of weapons or something. They say, well, we could possibly use nuclear weapons in response. And obviously, that's not happened. So how much of it is saber rattling, obviously, remains to be seen. But certainly,
It gives them at least on paper some further parameters for which they could use nuclear weapons.
And it remains to be seen, I suppose, Bill, how NATO could react, how the incoming Trump administration could react to this as well with this transition underway. But what can we sort of glean from how NATO has been preparing for this kind of change and trying to show continued support for Ukraine, how NATO could respond to this shift in the Russian nuclear doctrine?
Well, I think some of the starting to be potentially conflicting messages we're getting here. You have the US saying it's basically the Biden administration saying they basically want to shovel all the money and weapons that they've promised Ukraine out the door, get them in Ukraine before Donald Trump takes office on January 20th.
And then you have some messaging from Europe now about a little bit of pressure coming from European leaders, from NATO leaders, about where is this headed? And can we start to see the outlines of some kind of a truce or a de-escalation here? You have President Erdogan airing some details about his peace or truce proposal.
And you have this call the other day between German Chancellor Olaf Scholz and Vladimir Putin as the first real communication at that level in about two years. So I think there's a lot of nervousness in Europe about what could be coming in the year ahead. Frankly, President Zelensky has said he'd like to see this come to a conclusion.
in the coming year. But I do think, you know, January 20th is looming very large, and everyone's minds at this point, whether you're in Moscow, whether you're in Brussels or anywhere else, or whether you're in Kyiv. That's the day that
that really thinks U.S. policy could very quickly change. You could see a rapid diminishment of support from Washington, and that will start to have a very quick impact on the ground. I don't think anyone expects Europe to make up the entirety of America backing away from this if that's indeed what happens.
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 11 3 0 in New York, Bloomberg 99 1 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.
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.
