Stocks Near All-Time High; Tech Heavyweights Team Up on AI
On today's podcast:
1) US futures were steady, with an all-time high this year firmly in sight, and Treasuries gained amid optimism that the Federal Reserve is getting close to cutting interest rates.
2) Legendary designer Jony Ive and OpenAI’s Sam Altman are enlisting an Apple Inc. veteran to work on a new artificial intelligence hardware project, aiming to create devices with the latest capabilities.
3) US strikes on targets in Iraq and fresh attacks by Houthi militants on shipping in the Red Sea provided the latest warning signs that the war in Gaza risks expanding into a wider conflict destabilizing the Middle East.
Full Transcript:
Good morning. I'm John Tucker and I'm Karen Moscow. Here are the stories we're following today. In the markets, the S and P five hundred beginning to day hovering at a record The so called Santa Claus rally has left the index just half a percent off its all time high. Despite warnings about overpot levels, equities continue to power ahead on best. The Fed's going to cut rates as early as March, and Bloomberg's executive editor for Markets Paul Dobson says, there seems to be a lot of momentum in the markets. It may be in anticipation of big New year flows into equity funds and people trying to get a little bit ahead of that. As part of the explanation, I think, you know, we're getting very close to that record high in the SMP, and the market loves the target to chase. Bloomberg's Paul Dobson says if the S and P five hundred completes a ninth straight week of gains, it will be its longest winning streak since two thousand and four. Well in Company News, john Tesla could soon lose its title as the world's leader in electric vehicles. The Chinese automaker BYD's sales or forecast to overtake Tesla this quarter. Katrina Nicholas is Global Business editor for Bloomberg in Asia. BYD makes its own batteries and now it also makes its own chips. That has shielded the company from a lot of supply chain crunches over the years. Remember back in twenty twenty during COVID, we had a worldwide shortage of semiconductors and that snarled a lot of automakers. They couldn't get the chips that they needed to make the cous and Bloomberg Global Business Editor Katrina Nicholas as BYD offers half a dozen higher volume models that costs much less than what Tesla charges for its cheapest Model three sedan in China. Meanwhile, Tesla preparing to roll out a revamped version of its Model Y from its Shanghai plant. Bloomberg News has learned the electric carmaker currently conducting preparation work in China, and mass production may start as soon as mid twenty twenty four. Sources say the new Model Why will have much more obvious exterior and interior changes than the most recent update in October, which anadled a new wheel design and ambient lighting. Well John another high tech company in the spotlight this morning, Apple is appealing a US salesman of its smart watches after the White House refuse to overturn the measure. The company is trying to defend a business that generates roughly seventeen billion dollars a year. Mark German covers Apple for Bloomberg in Los Angeles. Apple's belief is they have a software update up at sleeves that will bring the Apple Watch in compliance with the ITC. And so what Apple has done is they submitted details of this software upgrade to the US Customs Agency and on January twelve, the US Customs Agency will make a decision whether or not to approve the refresh to the watch to make them fix. If they go ahead and approve that and the ITC and other entities and the US agree, the Apple Watch can come back to market and Bloomber's Mark German says the US International Trade Commission determined in October that Apple violated two Massimo health technology patents with a blood oxygen sensor in its watches, and Karen saying in the tech sector, a couple of heavyweights joining forces on the artificial intelligence That's good. Details this morning from Bloomberg's Jeff Bellinger. Legendary designer Johnny Ive and open ai Sam Altman are enlisting a veteran to work on a new artificial intelligence hardware project. Sources say that as part of the effort, outgoing Apple executive Tang Tan will join IVES design firm love From, which will shape the look and capabilities of the new products. Altman, an executive who has become the face of modern AI, plans to provide the software underpinnings. The work marks one of the most ambitious efforts undertaken by IVES since he left Apple in twenty nineteen. The designer is famous for the products he helped devise under Apple co founder Steve Jobs, including the iMac iPhone and the iPad. His hope is to turn the AI device work into a new company, but sources say development of the product's remains at an early stage. Jeff Bellinger, Bloomberg Radio. All right, Jeff, thanks, Now we turn to the latest developments in the Middle East. US strikes on targets in Iraq and fresh attacks by hu They militants in the Red Sea, providing the latest warning signs that the war in Gaza risks expanding into a wider conflict of stabilizing the region. Ras Madison is news director for Europe, the Middle East and Africa for a Bloomberg News. You've got all these groups operating in the region, supported by Iran, who are carrying out sort of unilateral attacks on targets throughout the region, including these shippers, and of course Iran sort of warning increasingly that this does increase the risk that they get drawn in. It also increases the risk that the US militarily gets drawn in because of course they're having to shoot down a bunch of this stuff as it's flying around the region targeting this shipping. And we're talking about a coalition of military ships in the region potentially to escort some of this commercial shipping through, and so all of that adds to environment of high tension in Bloomberg's ras Madison says. Benjamin Netanyahu says Israel will expand it's Garza ground defensive in the coming days, despite international efforts to halt the fighting and back here at home care on. Thousands of migrants and asylum seekers are moving north toward the American border. As tom US officials prepared to meet with Mexico's president. That story this morning from Bloomberg's and Baxter. The caravan has reached Chiapas, Mexico, thousands carrying signs that say exodus from poverty. The caravan hopes to reach the border as Secretary of State Anthony Blincoln and Homeland Security Chief Alejandro Majorcas meet with Mexican President Andres Manuel Lopez Odador. The State Department says item one is quote unprecedented irregular migration in the Western hemisphere. Now, the US says the parties need to address border security challenges and identify ways for Mexico to help in the fight. Some of the caravan have traveled from as far away as South America. At Baxter Bloomberg Radio. All right, thanks Karen, and that brings us to five oh seven Time down for a look at some of the other stories making news around the world. For that, we're joined by Bloomberg's Amy Morris. Amy, Good morning, Good morning John. Several pro Palestinian protesters were arrested after swarming Rockefeller Center, Grand Central and other areas of the long holiday weekend. Police arrested at least a half dozen people for disorderly conduct menacing at graffiti now In New York City, Mayor Eric Adams says there's always a serious concern about safety in Time Square. On New Year's Eve, he says there's an added concern protesters will disrupt more celebrations after pro Palestinian supporters tried to spoil the Rockefeller Center Christmas tree lighting over this past year. The police department did an amazing job doing the tree lighting to mitigate any form of major disruptions, and they're going to do it this year. Adam says NYPD will monitor online chatter. Top Biden administration officials are in Mexico today to discuss the influx of migrants. More on this from Bloomberg's Nancy Lyons. US Secretary of State Anthony Blincoln in Secretary of Homeland Security Alejandre Mayorcis will meet with Mexican President andres Manuel Lopez Obrador to address the ongoing border security challenges and what each country can do to alleviate the problem. B Lincoln's office notes the migration across the southern border has been unprecedented. B Lincoln is expected to focus on creating legal pathways into the US as well as additional enforcement in Washington. Nancy lyons Bloomberg Radio Now, one of Mayor Adam's main focuses next year will be trying to get the federal help on the migrant crisis. I have to keep hammering away at this issue, and I'm really pleased that we are now in the chorus of other cities that are joining us. There are currently sixty eight thousand asylum seekers in New York City's care right now. And a new program would allow New York City to direct money to new construction after a tax incentive favorable to developers lapsed last year. The New York Times reports the plan would direct public money toward mixed income housing projects in wealthier neighborhoods. The hope is that developers will produce more affordable units using the income from those high rent market rate apartments. The Global News twenty four hours a day and whenever you want it with Bloomberg News. Now, I'm maybe Morrison. This is Bloomberg John. All right, thanks Amy, and that brings us to five ten on Wall Street. Time down for the Bloomberg Sports Update. And for that, here's Dan Schwarzman. Good Morning John. Week seventeen of The NFL season kicks off tomorrow in Cleveland as the Browns are hosting the Jets. Cleveland is ten and five, Jets coming at six and nine. Jets head coach Robert Salad talking about how the Jets can take some inspiration from Cleveland season. They're doing a really nice job. Defensively, they're playing at an eightee level, very similar. Special teams are doing very well. But for sure, we'll definitely look at some things in areas where we can be better, so in the event this happens again, we can keep the vote above water and just kind of replicate what they're doing. That's courtesy of Jets dot Com. Trevor Simeons starting at quarterback for the Jets. Joe Flacco for the Browns. GA in the NBA to Detroit Pistons, setting a record for most consecutive losses in a single season in league history as they dropped their twenty seventh in a row, losing to the Brooklyn Nets won eighteen to one twelve, Cameron Johnson leading the Nets with twenty four points. Elsewhere in the league, futility in Washington as the Wizards are five and twenty four, losing to the Magic one twenty seven to one nineteen, while the Spurs are only four and twenty five after a one thirty one to eighteen home loss to the Jazz. The Nets added again tonight as their home for the Milwaukee Bucks, while the Knicks are on the road facing the thunder in Oklahoma City. The three day NHL Christmas Holiday is over most of the league in action tonight. The Rangers home for the Washington Capitals. Devil's welcoming in the Columbus Blue Jackets. It's the Boston Bruins on the road of the Buffalo Sabers, while the Islanders are home for the Pittsburgh Penguins. That's your Bloomberg Sports update on Dan Schwartzman from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syria's Exam, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm John Tucker. We are looking at the risk of a wider Admit East war. This morning. Fresh attacks by Houthi rebels shipping in the Red Sea provided the latest warning signs. Let's get the update this morning, and I'm happy to say. We're joined by Bloomberg's Rob Mathieson, the news director for Europe, the Middle East and Africa. Ro's nice to talk to you again. It's not anything new attacks in this region. What is different this time? Well, that's right. The attacks and themselves are not that new. They have been a patent for many years now in this sort of narrow area of water in the Red Sea. And of course the Houthies who are based in Yemen but bat by Iran sort of quite often targeting shipping in the area, but again sort of harrying them more than sort of causing serious damage. But what we're seeing is an escalation in that pattern of attacks in the backdrop of the war between Israel and Hamas in Gaza. And we're also seeing it come against the backdrop of those other attacks that are going on, strikes against US forces who are based in Iraq, retaliatory strikes against groups that are operating in Iraq, all of those groups in the end sort of seemingly linking back to Iran, which says it's not trying to disrupt commercial shipping in the area, but neither is it seemingly raining in these groups that it supports and so all of that comes at a moment of high tension in the region. You've got significant military forces operating. The US Navy is in the area, other countries sending naval ships to try and support shipping that's passing through, and so the possibility of sort of a broader conflict does exist as a result, although so far we haven't seen that happen, and Iran has sort of urged some restraint itself. In a climate where you just have shipping in such close proximity, the possibility of a broader conflict cannot be ruled out. Is this going to draw in other actors at this point, Well, there are multiple actors on this sort of the Iran supported side already involved in different ways. Obviously in the conflict itself with Israel. You've got Hesblah still lobbying things from the across the Lebanon border. You've got the Huthi's operating out of Yemen. You've got groups operating out of Iraq, so they've got quite a few proxies at the moment for Iran operating in the region. On the other side, you've got the US Navy quite actively trying to support shipping shooting down drones and other rockets as they're firing through the air from Yemen. You've got other countries sort of saying they want to send their ships to support, and this talk this plan for sort of a naval support task force that's going to support shipping and deter further strikes in the region. You've got India talking about sending warships. So again, you've just got an awful lot of actors involved, none of whom who want really to end up in an outright conflict. But again, with so much shipping in close proximity, be it commercial shipping and naval shipping, the possibility of an accident even cannot be ruled out. Yeah, is it likely that the US would be forced to act even more assertively in this region, Well, they're very much not wanting to unless they have to, particularly again when it comes to Yemen. The US has been working hard in recent years to extricate itself from Yemen and of course urging the Saudi Arabians to also de escalate there, and not something that the US President Joe Biden wants to get particularly directly involved in again and certainly doesn't want to get involved in a one on one conflict that involves Ran and so it does exist as a possibility. The US very much doesn't want to end up with boots on the ground in another conflict. They've become very risk averse about that if you see prior history involving places like Afghanistan for example, they don't want to do that. But again, more and more they are engaging directly in support of shipping in the region and shooting down stuff that might be even flying towards Israel from Yemen for example. So at some point it doesn't become a bit moot. Are they sort of involved militarily yes? Are they directly military involved? They would say no, and they don't want to be Whether or not this is your expertise, I don't know. But in terms of the impact on commodities, especially oil for instance, is it kind of surprising we haven't seen a bigger jump in commodity prices as a result of these attacks. Well, we are seeing oil at least being supported as a result of this. You've got brand near eighty one dollars a barrel, it's about the highest level in almost a month. You're also seeing gas prices rise in a way that the commodity that may react more to this is gas because of concerns around restrictions on supply in the region if Iran really got involved in a conflict, and so the immediate concern maybe less about oil and how much needs to be shipped through that region or how much oil can come from Iran, but really the concern is about a possible impact on gas. We saw some gas fields in fact out of operation in the early days of this conflict between Israel and her mask that was out of an abundance of caution, and they have now resumed operation. But really the commodity that may react the most of this is gas, and that's one that we're watching closely. Today. You're listening to Bloomberg Daybreak. Today you're warning brief the story is making news from Wall Street to Washington and beyond. Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts. You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three to zero in the New York, Bloomberg ninety nine one in Washington, Bloomberg one oh six one in Boston. And Bloomberg nine sixty in San Francisco. Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. Listen coast to coast on the Bloomberg Business app, serious xmvie iHeartRadio app, and on Bloomberg dot Com. I'm John Tucker and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day, right here on Bloomberg Daybreak
See omnystudio.com/listener for privacy information.
Available Results
Generated results are saved to the knowledge database for reuse and search.
Extract Knowledge
Pick what you want extracted first. Model, scope, and chapter options appear after a template is selected.
Transcript
Good morning. I'm John Tucker and. 0:00:04.080 --> 0:00:07.160 I'm Karen Moscow. Here are the stories we're following today. 0:00:07.720 --> 0:00:10.120 In the markets, the S and P five hundred beginning 0:00:10.160 --> 0:00:13.039 to day hovering at a record The so called Santa 0:00:13.039 --> 0:00:15.720 Claus rally has left the index just half a percent 0:00:15.840 --> 0:00:19.600 off its all time high. Despite warnings about overpot levels, 0:00:19.680 --> 0:00:22.360 equities continue to power ahead on best. The Fed's going 0:00:22.360 --> 0:00:25.840 to cut rates as early as March, and Bloomberg's executive 0:00:25.960 --> 0:00:28.640 editor for Markets Paul Dobson says, there seems to be 0:00:28.680 --> 0:00:30.440 a lot of momentum in the markets. 0:00:30.720 --> 0:00:34.239 It may be in anticipation of big New year flows 0:00:34.280 --> 0:00:36.520 into equity funds and people trying to get a little 0:00:36.520 --> 0:00:39.720 bit ahead of that. As part of the explanation, I think, 0:00:39.800 --> 0:00:41.879 you know, we're getting very close to that record high 0:00:41.920 --> 0:00:44.400 in the SMP, and the market loves the target to chase. 0:00:44.680 --> 0:00:47.080 Bloomberg's Paul Dobson says if the S and P five 0:00:47.159 --> 0:00:49.960 hundred completes a ninth straight week of gains, it will 0:00:49.960 --> 0:00:53.280 be its longest winning streak since two thousand and four. 0:00:53.800 --> 0:00:56.240 Well in Company News, john Tesla could soon lose its 0:00:56.320 --> 0:00:59.760 title as the world's leader in electric vehicles. The Chinese 0:00:59.760 --> 0:01:04.200 automaker BYD's sales or forecast to overtake Tesla this quarter. 0:01:04.600 --> 0:01:08.600 Katrina Nicholas is Global Business editor for Bloomberg in Asia. 0:01:09.280 --> 0:01:12.320 BYD makes its own batteries and now it also makes 0:01:12.360 --> 0:01:15.560 its own chips. That has shielded the company from a 0:01:15.560 --> 0:01:18.160 lot of supply chain crunches over the years. Remember back 0:01:18.240 --> 0:01:21.720 in twenty twenty during COVID, we had a worldwide shortage 0:01:21.760 --> 0:01:25.080 of semiconductors and that snarled a lot of automakers. They 0:01:25.120 --> 0:01:27.800 couldn't get the chips that they needed to make the cous. 0:01:28.280 --> 0:01:31.800 And Bloomberg Global Business Editor Katrina Nicholas as BYD offers 0:01:31.840 --> 0:01:34.959 half a dozen higher volume models that costs much less 0:01:35.000 --> 0:01:38.000 than what Tesla charges for its cheapest Model three sedan 0:01:38.120 --> 0:01:38.679 in China. 0:01:39.000 --> 0:01:41.880 Meanwhile, Tesla preparing to roll out a revamped version of 0:01:42.000 --> 0:01:45.360 its Model Y from its Shanghai plant. Bloomberg News has 0:01:45.400 --> 0:01:48.720 learned the electric carmaker currently conducting preparation work in China, 0:01:48.760 --> 0:01:52.040 and mass production may start as soon as mid twenty 0:01:52.120 --> 0:01:55.680 twenty four. Sources say the new Model Why will have 0:01:55.840 --> 0:01:59.960 much more obvious exterior and interior changes than the most 0:02:00.120 --> 0:02:03.240 recent update in October, which anadled a new wheel design 0:02:03.320 --> 0:02:04.400 and ambient lighting. 0:02:05.120 --> 0:02:08.080 Well John another high tech company in the spotlight this morning, 0:02:08.160 --> 0:02:11.680 Apple is appealing a US salesman of its smart watches 0:02:11.760 --> 0:02:14.640 after the White House refuse to overturn the measure. The 0:02:14.680 --> 0:02:17.600 company is trying to defend a business that generates roughly 0:02:17.680 --> 0:02:21.280 seventeen billion dollars a year. Mark German covers Apple for 0:02:21.360 --> 0:02:22.800 Bloomberg in Los Angeles. 0:02:23.200 --> 0:02:25.400 Apple's belief is they have a software update up at 0:02:25.440 --> 0:02:28.480 sleeves that will bring the Apple Watch in compliance with 0:02:28.560 --> 0:02:30.720 the ITC. And so what Apple has done is they 0:02:30.880 --> 0:02:34.639 submitted details of this software upgrade to the US Customs 0:02:34.639 --> 0:02:38.000 Agency and on January twelve, the US Customs Agency will 0:02:38.000 --> 0:02:40.560 make a decision whether or not to approve the refresh 0:02:40.560 --> 0:02:42.600 to the watch to make them fix. If they go 0:02:42.639 --> 0:02:46.080 ahead and approve that and the ITC and other entities 0:02:46.120 --> 0:02:48.200 and the US agree, the Apple Watch can come back 0:02:48.200 --> 0:02:49.000 to market. 0:02:49.080 --> 0:02:52.120 And Bloomber's Mark German says the US International Trade Commission 0:02:52.160 --> 0:02:56.120 determined in October that Apple violated two Massimo health technology 0:02:56.160 --> 0:02:59.600 patents with a blood oxygen sensor in its watches, and. 0:02:59.600 --> 0:03:02.160 Karen saying in the tech sector, a couple of heavyweights 0:03:02.360 --> 0:03:06.560 joining forces on the artificial intelligence That's good. Details this 0:03:06.639 --> 0:03:08.360 morning from Bloomberg's Jeff Bellinger. 0:03:09.200 --> 0:03:13.080 Legendary designer Johnny Ive and open ai Sam Altman are 0:03:13.120 --> 0:03:16.360 enlisting a veteran to work on a new artificial intelligence 0:03:16.400 --> 0:03:19.639 hardware project. Sources say that as part of the effort, 0:03:19.760 --> 0:03:24.320 outgoing Apple executive Tang Tan will join IVES design firm 0:03:24.560 --> 0:03:27.679 love From, which will shape the look and capabilities of 0:03:27.720 --> 0:03:31.040 the new products. Altman, an executive who has become the 0:03:31.080 --> 0:03:35.240 face of modern AI, plans to provide the software underpinnings. 0:03:35.600 --> 0:03:38.680 The work marks one of the most ambitious efforts undertaken 0:03:38.720 --> 0:03:41.840 by IVES since he left Apple in twenty nineteen. The 0:03:41.920 --> 0:03:45.080 designer is famous for the products he helped devise under 0:03:45.120 --> 0:03:49.200 Apple co founder Steve Jobs, including the iMac iPhone and 0:03:49.240 --> 0:03:52.480 the iPad. His hope is to turn the AI device 0:03:52.560 --> 0:03:55.680 work into a new company, but sources say development of 0:03:55.720 --> 0:04:00.680 the product's remains at an early stage. Jeff Bellinger, Bloomberg Radio. 0:04:00.920 --> 0:04:02.760 All right, Jeff, thanks, Now we turn to the latest 0:04:02.800 --> 0:04:05.640 developments in the Middle East. US strikes on targets in 0:04:05.680 --> 0:04:08.600 Iraq and fresh attacks by hu They militants in the 0:04:08.600 --> 0:04:11.680 Red Sea, providing the latest warning signs that the war 0:04:11.760 --> 0:04:15.440 in Gaza risks expanding into a wider conflict of stabilizing 0:04:15.480 --> 0:04:18.640 the region. Ras Madison is news director for Europe, the 0:04:18.680 --> 0:04:21.080 Middle East and Africa for a Bloomberg News. 0:04:21.320 --> 0:04:24.520 You've got all these groups operating in the region, supported 0:04:24.520 --> 0:04:27.520 by Iran, who are carrying out sort of unilateral attacks 0:04:27.560 --> 0:04:31.200 on targets throughout the region, including these shippers, and of 0:04:31.200 --> 0:04:35.200 course Iran sort of warning increasingly that this does increase 0:04:35.240 --> 0:04:37.320 the risk that they get drawn in. It also increases 0:04:37.360 --> 0:04:39.800 the risk that the US militarily gets drawn in because 0:04:39.839 --> 0:04:41.520 of course they're having to shoot down a bunch of 0:04:41.560 --> 0:04:44.640 this stuff as it's flying around the region targeting this shipping. 0:04:44.680 --> 0:04:47.960 And we're talking about a coalition of military ships in 0:04:48.000 --> 0:04:51.440 the region potentially to escort some of this commercial shipping through, 0:04:51.560 --> 0:04:52.360 and so all. 0:04:52.240 --> 0:04:55.479 Of that adds to environment of high tension in Bloomberg's 0:04:55.520 --> 0:04:59.320 ras Madison says. Benjamin Netanyahu says Israel will expand it's 0:04:59.360 --> 0:05:03.480 Garza ground defensive in the coming days, despite international efforts 0:05:03.480 --> 0:05:05.640 to halt the fighting and. 0:05:05.560 --> 0:05:08.279 Back here at home care on. Thousands of migrants and 0:05:08.320 --> 0:05:11.800 asylum seekers are moving north toward the American border. As 0:05:11.800 --> 0:05:15.440 tom US officials prepared to meet with Mexico's president. That 0:05:15.520 --> 0:05:17.440 story this morning from Bloomberg's and Baxter. 0:05:17.760 --> 0:05:21.719 The caravan has reached Chiapas, Mexico, thousands carrying signs that 0:05:21.839 --> 0:05:25.800 say exodus from poverty. The caravan hopes to reach the 0:05:25.839 --> 0:05:29.279 border as Secretary of State Anthony Blincoln and Homeland Security 0:05:29.360 --> 0:05:35.080 Chief Alejandro Majorcas meet with Mexican President Andres Manuel Lopez Odador. 0:05:35.640 --> 0:05:40.880 The State Department says item one is quote unprecedented irregular 0:05:40.960 --> 0:05:44.359 migration in the Western hemisphere. Now, the US says the 0:05:44.360 --> 0:05:48.560 parties need to address border security challenges and identify ways 0:05:48.600 --> 0:05:51.240 for Mexico to help in the fight. Some of the 0:05:51.279 --> 0:05:55.120 caravan have traveled from as far away as South America. 0:05:55.480 --> 0:05:59.840 At Baxter Bloomberg Radio. 0:06:00.160 --> 0:06:02.000 All right, thanks Karen, and that brings us to five 0:06:02.080 --> 0:06:03.840 oh seven Time down for a look at some of 0:06:03.920 --> 0:06:06.760 the other stories making news around the world. For that, 0:06:06.800 --> 0:06:10.280 we're joined by Bloomberg's Amy Morris. Amy, Good morning, Good 0:06:10.279 --> 0:06:10.920 morning John. 0:06:11.000 --> 0:06:15.160 Several pro Palestinian protesters were arrested after swarming Rockefeller Center, 0:06:15.200 --> 0:06:18.080 Grand Central and other areas of the long holiday weekend. 0:06:18.360 --> 0:06:21.200 Police arrested at least a half dozen people for disorderly 0:06:21.240 --> 0:06:24.200 conduct menacing at graffiti now In New York City, Mayor 0:06:24.320 --> 0:06:27.719 Eric Adams says there's always a serious concern about safety 0:06:27.720 --> 0:06:30.120 in Time Square. On New Year's Eve, he says there's 0:06:30.160 --> 0:06:34.280 an added concern protesters will disrupt more celebrations after pro 0:06:34.400 --> 0:06:38.960 Palestinian supporters tried to spoil the Rockefeller Center Christmas tree 0:06:39.080 --> 0:06:40.760 lighting over this past year. 0:06:40.960 --> 0:06:43.440 The police department did an amazing job doing the tree 0:06:43.520 --> 0:06:48.800 lighting to mitigate any form of major disruptions, and they're 0:06:48.800 --> 0:06:49.640 going to do it this year. 0:06:49.800 --> 0:06:52.359 Adam says NYPD will monitor online chatter. 0:06:52.600 --> 0:06:56.039 Top Biden administration officials are in Mexico today to discuss 0:06:56.080 --> 0:06:57.320 the influx of migrants. 0:06:57.360 --> 0:06:59.159 More on this from Bloomberg's Nancy Lyons. 0:06:59.279 --> 0:07:02.719 US Secretary of State Anthony Blincoln in Secretary of Homeland 0:07:02.760 --> 0:07:07.640 Security Alejandre Mayorcis will meet with Mexican President andres Manuel 0:07:07.720 --> 0:07:12.000 Lopez Obrador to address the ongoing border security challenges and 0:07:12.080 --> 0:07:14.960 what each country can do to alleviate the problem. B 0:07:15.000 --> 0:07:18.480 Lincoln's office notes the migration across the southern border has 0:07:18.520 --> 0:07:22.200 been unprecedented. B Lincoln is expected to focus on creating 0:07:22.280 --> 0:07:26.120 legal pathways into the US as well as additional enforcement 0:07:26.640 --> 0:07:29.120 in Washington. Nancy lyons Bloomberg Radio. 0:07:28.960 --> 0:07:31.680 Now, one of Mayor Adam's main focuses next year will 0:07:31.720 --> 0:07:34.600 be trying to get the federal help on the migrant crisis. 0:07:34.680 --> 0:07:37.840 I have to keep hammering away at this issue, and 0:07:38.120 --> 0:07:41.200 I'm really pleased that we are now in the chorus 0:07:41.320 --> 0:07:43.560 of other cities that are joining us. 0:07:43.560 --> 0:07:47.040 There are currently sixty eight thousand asylum seekers in New 0:07:47.080 --> 0:07:49.800 York City's care right now. And a new program would 0:07:49.800 --> 0:07:52.480 allow New York City to direct money to new construction 0:07:52.800 --> 0:07:57.120 after a tax incentive favorable to developers lapsed last year. 0:07:57.280 --> 0:07:59.600 The New York Times reports the plan would direct public 0:07:59.640 --> 0:08:03.720 money toward mixed income housing projects in wealthier neighborhoods. The 0:08:03.760 --> 0:08:07.240 hope is that developers will produce more affordable units using 0:08:07.280 --> 0:08:10.800 the income from those high rent market rate apartments. The 0:08:10.840 --> 0:08:13.000 Global News twenty four hours a day and whenever you 0:08:13.040 --> 0:08:14.280 want it with Bloomberg News. 0:08:14.280 --> 0:08:16.840 Now, I'm maybe Morrison. This is Bloomberg John. 0:08:16.960 --> 0:08:23.680 All right, thanks Amy, and that brings us to five 0:08:23.760 --> 0:08:26.600 ten on Wall Street. Time down for the Bloomberg Sports Update. 0:08:26.720 --> 0:08:28.720 And for that, here's Dan Schwarzman. 0:08:29.240 --> 0:08:30.160 Good Morning John. 0:08:30.200 --> 0:08:32.840 Week seventeen of The NFL season kicks off tomorrow in 0:08:32.880 --> 0:08:36.000 Cleveland as the Browns are hosting the Jets. Cleveland is 0:08:36.040 --> 0:08:38.600 ten and five, Jets coming at six and nine. Jets 0:08:38.679 --> 0:08:41.160 head coach Robert Salad talking about how the Jets can 0:08:41.200 --> 0:08:43.400 take some inspiration from Cleveland season. 0:08:43.760 --> 0:08:46.679 They're doing a really nice job. Defensively, they're playing at 0:08:46.679 --> 0:08:50.480 an eightee level, very similar. Special teams are doing very well. 0:08:52.000 --> 0:08:54.680 But for sure, we'll definitely look at some things in 0:08:54.800 --> 0:08:57.480 areas where we can be better, so in the event 0:08:57.760 --> 0:09:01.280 this happens again, we can keep the vote above water 0:09:01.640 --> 0:09:03.840 and just kind of replicate what they're doing. 0:09:04.000 --> 0:09:06.960 That's courtesy of Jets dot Com. Trevor Simeons starting at 0:09:07.040 --> 0:09:09.640 quarterback for the Jets. Joe Flacco for the Browns. GA 0:09:09.679 --> 0:09:12.280 in the NBA to Detroit Pistons, setting a record for 0:09:12.400 --> 0:09:15.360 most consecutive losses in a single season in league history 0:09:15.520 --> 0:09:18.040 as they dropped their twenty seventh in a row, losing 0:09:18.040 --> 0:09:20.880 to the Brooklyn Nets won eighteen to one twelve, Cameron 0:09:20.920 --> 0:09:23.800 Johnson leading the Nets with twenty four points. Elsewhere in 0:09:23.840 --> 0:09:26.280 the league, futility in Washington as the Wizards are five 0:09:26.320 --> 0:09:28.520 and twenty four, losing to the Magic one twenty seven 0:09:28.559 --> 0:09:30.959 to one nineteen, while the Spurs are only four and 0:09:31.080 --> 0:09:33.480 twenty five after a one thirty one to eighteen home 0:09:33.520 --> 0:09:36.080 loss to the Jazz. The Nets added again tonight as 0:09:36.080 --> 0:09:38.280 their home for the Milwaukee Bucks, while the Knicks are 0:09:38.320 --> 0:09:41.200 on the road facing the thunder in Oklahoma City. The 0:09:41.280 --> 0:09:44.400 three day NHL Christmas Holiday is over most of the 0:09:44.440 --> 0:09:47.800 league in action tonight. The Rangers home for the Washington Capitals. 0:09:48.040 --> 0:09:51.160 Devil's welcoming in the Columbus Blue Jackets. It's the Boston 0:09:51.200 --> 0:09:53.599 Bruins on the road of the Buffalo Sabers, while the 0:09:53.600 --> 0:09:56.640 Islanders are home for the Pittsburgh Penguins. That's your Bloomberg 0:09:56.640 --> 0:09:59.000 Sports update on Dan Schwartzman. 0:10:01.280 --> 0:10:04.239 From coast to coast, from New York to San Francisco, 0:10:04.640 --> 0:10:09.280 Boston to Washington, DC, nationwide on Syria's Exam, the Bloomberg 0:10:09.320 --> 0:10:13.480 Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. 0:10:14.880 --> 0:10:17.040 Good morning, I'm John Tucker. We are looking at the 0:10:17.120 --> 0:10:20.160 risk of a wider Admit East war. This morning. Fresh 0:10:20.200 --> 0:10:23.680 attacks by Houthi rebels shipping in the Red Sea provided 0:10:23.720 --> 0:10:26.680 the latest warning signs. Let's get the update this morning, 0:10:26.840 --> 0:10:30.000 and I'm happy to say. We're joined by Bloomberg's Rob Mathieson, 0:10:30.040 --> 0:10:33.760 the news director for Europe, the Middle East and Africa. 0:10:34.000 --> 0:10:37.120 Ro's nice to talk to you again. It's not anything 0:10:37.200 --> 0:10:40.840 new attacks in this region. What is different this time? 0:10:42.040 --> 0:10:42.640 Well, that's right. 0:10:42.679 --> 0:10:45.280 The attacks and themselves are not that new. They have 0:10:45.440 --> 0:10:49.200 been a patent for many years now in this sort 0:10:49.200 --> 0:10:51.679 of narrow area of water in the Red Sea. And 0:10:51.800 --> 0:10:54.560 of course the Houthies who are based in Yemen but 0:10:54.640 --> 0:10:58.280 bat by Iran sort of quite often targeting shipping in 0:10:58.320 --> 0:11:00.560 the area, but again sort of harrying them more than 0:11:00.679 --> 0:11:03.920 sort of causing serious damage. But what we're seeing is 0:11:03.920 --> 0:11:08.360 an escalation in that pattern of attacks in the backdrop 0:11:08.440 --> 0:11:12.080 of the war between Israel and Hamas in Gaza. And 0:11:12.120 --> 0:11:14.720 we're also seeing it come against the backdrop of those 0:11:14.800 --> 0:11:19.640 other attacks that are going on, strikes against US forces 0:11:19.640 --> 0:11:23.720 who are based in Iraq, retaliatory strikes against groups that 0:11:23.760 --> 0:11:26.840 are operating in Iraq, all of those groups in the 0:11:26.960 --> 0:11:30.080 end sort of seemingly linking back to Iran, which says 0:11:30.120 --> 0:11:33.520 it's not trying to disrupt commercial shipping in the area, 0:11:34.120 --> 0:11:36.960 but neither is it seemingly raining in these groups that 0:11:37.040 --> 0:11:39.600 it supports and so all of that comes at a 0:11:39.640 --> 0:11:43.000 moment of high tension in the region. You've got significant 0:11:43.000 --> 0:11:46.880 military forces operating. The US Navy is in the area, 0:11:47.160 --> 0:11:51.560 other countries sending naval ships to try and support shipping 0:11:51.640 --> 0:11:55.320 that's passing through, and so the possibility of sort of 0:11:55.320 --> 0:11:58.640 a broader conflict does exist as a result, although so 0:11:58.720 --> 0:12:01.959 far we haven't seen that happen, and Iran has sort 0:12:02.000 --> 0:12:05.680 of urged some restraint itself. In a climate where you 0:12:05.760 --> 0:12:09.320 just have shipping in such close proximity, the possibility of 0:12:09.360 --> 0:12:11.200 a broader conflict cannot be ruled out. 0:12:11.520 --> 0:12:14.479 Is this going to draw in other actors at this point. 0:12:15.760 --> 0:12:18.160 Well, there are multiple actors on this sort of the 0:12:18.160 --> 0:12:21.680 Iran supported side already involved in different ways. 0:12:21.720 --> 0:12:24.080 Obviously in the conflict itself with Israel. 0:12:24.080 --> 0:12:27.760 You've got Hesblah still lobbying things from the across the 0:12:28.200 --> 0:12:29.040 Lebanon border. 0:12:29.120 --> 0:12:32.120 You've got the Huthi's operating out of Yemen. 0:12:32.160 --> 0:12:35.160 You've got groups operating out of Iraq, so they've got 0:12:35.240 --> 0:12:38.360 quite a few proxies at the moment for Iran operating 0:12:38.360 --> 0:12:40.120 in the region. On the other side, you've got the 0:12:40.200 --> 0:12:44.400 US Navy quite actively trying to support shipping shooting down 0:12:44.520 --> 0:12:47.960 drones and other rockets as they're firing through the air 0:12:48.000 --> 0:12:50.880 from Yemen. You've got other countries sort of saying they 0:12:50.880 --> 0:12:53.920 want to send their ships to support, and this talk 0:12:54.000 --> 0:12:59.559 this plan for sort of a naval support task force 0:12:59.600 --> 0:13:03.680 that's going to support shipping and deter further strikes in 0:13:03.679 --> 0:13:07.040 the region. You've got India talking about sending warships. So again, 0:13:07.120 --> 0:13:10.120 you've just got an awful lot of actors involved, none 0:13:10.160 --> 0:13:12.400 of whom who want really to end up in an 0:13:12.400 --> 0:13:17.800 outright conflict. But again, with so much shipping in close proximity, 0:13:17.880 --> 0:13:20.560 be it commercial shipping and naval shipping, the possibility of 0:13:20.559 --> 0:13:22.920 an accident even cannot be ruled out. 0:13:23.040 --> 0:13:25.280 Yeah, is it likely that the US would be forced 0:13:25.280 --> 0:13:28.359 to act even more assertively in this region. 0:13:29.160 --> 0:13:32.040 Well, they're very much not wanting to unless they have to, 0:13:32.160 --> 0:13:35.040 particularly again when it comes to Yemen. The US has 0:13:35.080 --> 0:13:38.520 been working hard in recent years to extricate itself from 0:13:38.640 --> 0:13:42.320 Yemen and of course urging the Saudi Arabians to also 0:13:42.800 --> 0:13:46.240 de escalate there, and not something that the US President 0:13:46.320 --> 0:13:50.160 Joe Biden wants to get particularly directly involved in again 0:13:50.679 --> 0:13:52.760 and certainly doesn't want to get involved in a one 0:13:52.800 --> 0:13:56.920 on one conflict that involves Ran and so it does 0:13:56.960 --> 0:13:59.719 exist as a possibility. The US very much doesn't want 0:13:59.760 --> 0:14:03.079 to end up with boots on the ground in another conflict. 0:14:03.559 --> 0:14:06.600 They've become very risk averse about that if you see 0:14:06.600 --> 0:14:10.760 prior history involving places like Afghanistan for example, they don't 0:14:10.760 --> 0:14:13.800 want to do that. But again, more and more they 0:14:13.800 --> 0:14:17.760 are engaging directly in support of shipping in the region 0:14:17.800 --> 0:14:20.360 and shooting down stuff that might be even flying towards 0:14:20.520 --> 0:14:23.760 Israel from Yemen for example. So at some point it 0:14:23.760 --> 0:14:26.320 doesn't become a bit moot. Are they sort of involved 0:14:26.320 --> 0:14:30.000 militarily yes? Are they directly military involved? They would say no, 0:14:30.200 --> 0:14:31.040 and they don't want to. 0:14:30.960 --> 0:14:34.240 Be Whether or not this is your expertise, I don't know. 0:14:34.360 --> 0:14:38.000 But in terms of the impact on commodities, especially oil 0:14:38.280 --> 0:14:40.760 for instance, is it kind of surprising we haven't seen 0:14:40.840 --> 0:14:43.920 a bigger jump in commodity prices as a result of 0:14:43.960 --> 0:14:44.600 these attacks. 0:14:45.520 --> 0:14:49.000 Well, we are seeing oil at least being supported as 0:14:49.040 --> 0:14:51.320 a result of this. You've got brand near eighty one 0:14:51.360 --> 0:14:54.760 dollars a barrel, it's about the highest level in almost 0:14:54.760 --> 0:14:58.120 a month. You're also seeing gas prices rise in a 0:14:58.120 --> 0:15:01.320 way that the commodity that may react more to this 0:15:01.680 --> 0:15:05.840 is gas because of concerns around restrictions on supply in 0:15:05.840 --> 0:15:09.880 the region if Iran really got involved in a conflict, 0:15:09.920 --> 0:15:13.120 and so the immediate concern maybe less about oil and 0:15:13.120 --> 0:15:15.160 how much needs to be shipped through that region or 0:15:15.160 --> 0:15:17.840 how much oil can come from Iran, but really the 0:15:17.920 --> 0:15:20.640 concern is about a possible impact on gas. We saw 0:15:20.680 --> 0:15:23.760 some gas fields in fact out of operation in the 0:15:23.800 --> 0:15:27.240 early days of this conflict between Israel and her mask 0:15:27.280 --> 0:15:29.240 that was out of an abundance. 0:15:29.080 --> 0:15:32.120 Of caution, and they have now resumed operation. 0:15:32.320 --> 0:15:35.640 But really the commodity that may react the most of 0:15:35.680 --> 0:15:38.240 this is gas, and that's one that we're watching closely. 0:15:38.280 --> 0:15:38.600 Today. 0:15:40.040 --> 0:15:43.200 You're listening to Bloomberg Daybreak. Today you're warning brief the 0:15:43.240 --> 0:15:46.680 story is making news from Wall Street to Washington and beyond. 0:15:46.800 --> 0:15:49.560 Look for us on your podcast feed at six am 0:15:49.640 --> 0:15:53.320 Eastern each morning, on Apple, Spotify, and anywhere else you 0:15:53.360 --> 0:15:54.440 get your podcasts. 0:15:54.880 --> 0:15:57.280 You can also listen live each morning starting at five 0:15:57.320 --> 0:15:59.760 am Wall Street time on Bloomberg eleven three to zero 0:15:59.800 --> 0:16:02.680 in the New York, Bloomberg ninety nine one in Washington, 0:16:02.960 --> 0:16:05.880 Bloomberg one oh six one in Boston. And Bloomberg nine 0:16:05.960 --> 0:16:07.239 sixty in San Francisco. 0:16:07.680 --> 0:16:10.840 Our flagship New York station is also available on your 0:16:10.880 --> 0:16:16.480 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. 0:16:16.640 --> 0:16:19.560 Listen coast to coast on the Bloomberg Business app, serious 0:16:19.880 --> 0:16:23.360 xmvie iHeartRadio app, and on Bloomberg dot Com. 0:16:23.520 --> 0:16:26.120 I'm John Tucker and I'm Karen Moscow. 0:16:26.320 --> 0:16:29.080 Join us again tomorrow morning for all the news you 0:16:29.200 --> 0:16:32.400 need to start your day, right here on Bloomberg Daybreak