Wall Street Awaits Inflation Data; Nike Sinks on Forecast

Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:05.960 --> 0:00:07.400 stories we're following today. 0:00:07.600 --> 0:00:10.200 Karen, the drop in futures closing out this trading week 0:00:10.240 --> 0:00:13.360 comes ahead of a closely watched inflation gage for the 0:00:13.400 --> 0:00:18.040 Federal Reserve. The Core Personal Consumption Expenditures price index is 0:00:18.079 --> 0:00:21.440 forecast to have fallen to three point three percent in November. 0:00:21.600 --> 0:00:23.480 That's from three and a half percent the prior month. 0:00:23.480 --> 0:00:27.320 The economists say that could bolster expectations for FED rate cuts 0:00:27.480 --> 0:00:31.480 next year. Former Dallas FED President Robert Caplan says, despite 0:00:31.480 --> 0:00:34.120 this morning's report, he expects the Fed to be patient. 0:00:34.400 --> 0:00:37.680 The Fed is going to need to see at least 0:00:37.680 --> 0:00:41.320 two or three months more of continued improvement. I think 0:00:41.360 --> 0:00:43.920 tomorrow will probably be good news, but they're going to 0:00:44.000 --> 0:00:47.040 need to see sustained improvement before they're going to be 0:00:47.080 --> 0:00:51.479 willing to take more action. And so I think the 0:00:51.520 --> 0:00:55.000 market should expect that it's going to take a while 0:00:55.280 --> 0:00:57.800 and more sustained improvement before the Fed does something. 0:00:58.080 --> 0:01:01.560 Former Dallas Fed chief Bob Kaplan's as markets overreacted to 0:01:01.640 --> 0:01:04.880 FED share j Powell's comments earlier this month on rate cuts. 0:01:05.440 --> 0:01:08.320 Well in Europe Nathan's speculation is growing this morning that 0:01:08.400 --> 0:01:10.880 the Bank of England may cut interest rates as soon 0:01:11.000 --> 0:01:14.320 as this ring, and that's because the UK economy unexpectedly 0:01:14.360 --> 0:01:17.440 shrank in a third quarter. Dan Hansen is a senior 0:01:17.480 --> 0:01:19.160 economist for a Bloomberg News. 0:01:19.440 --> 0:01:21.920 We've been having this conversation about recession for a while. 0:01:23.000 --> 0:01:25.319 I think we'll move on from it in the first 0:01:25.400 --> 0:01:27.960 half of twenty twenty four, which is obviously a good 0:01:27.959 --> 0:01:30.399 news story. But as things stand, obviously just looking at 0:01:30.400 --> 0:01:33.600 this data, it is a little bit worse than expected, 0:01:33.640 --> 0:01:36.319 and it does raise the risk of two consecutive quarters 0:01:36.319 --> 0:01:39.360 of negative growth, the sort of definition of a technical recession. 0:01:39.560 --> 0:01:43.040 And Bloomberg New senior economist Dan Hansen says revised figures 0:01:43.040 --> 0:01:45.480 show GDP dropped a tenth of up percent from the 0:01:45.600 --> 0:01:49.400 second quarter, a downgrade from the zero growth initially estimated. 0:01:49.560 --> 0:01:51.200 All right, Karen, that let's get to the latest from 0:01:51.240 --> 0:01:51.840 the Middle East. 0:01:51.920 --> 0:01:54.840 The US is signaling it can now support a UN 0:01:55.000 --> 0:01:58.800 Security Council resolution to increase aid into Gaza. This proposal 0:01:58.840 --> 0:02:01.040 has been delayed several time times, but a vote could 0:02:01.080 --> 0:02:04.320 come as soon as today. White House National Security Spokesman 0:02:04.400 --> 0:02:06.960 John Kirby says the US still wants Israel to move 0:02:07.000 --> 0:02:09.160 to a different phase of fighting with Hamas. 0:02:09.200 --> 0:02:11.480 We're not going to speak for their military operations. We 0:02:11.600 --> 0:02:16.200 recognize and they recognize that a transition is not only reasonable, 0:02:16.240 --> 0:02:18.519 but probably the most viable way to continue this fight. 0:02:18.760 --> 0:02:19.919 John Kirby at the White House. 0:02:19.960 --> 0:02:22.640 Now, the latest draft of the Security Council resolution calls 0:02:22.639 --> 0:02:26.120 for creating the conditions for a sustained cessation of hostilities. 0:02:26.480 --> 0:02:30.359 The US had been opposed to specific language for a ceasefire. Meanwhile, 0:02:30.360 --> 0:02:32.680 the Hamas run health ministry in Gaza says more than 0:02:32.680 --> 0:02:35.679 twenty thousand people have been killed in the territory since 0:02:35.720 --> 0:02:37.520 the October seventh attack on Israel. 0:02:38.240 --> 0:02:40.359 Well Nathan, the US is preparing to lift a ban 0:02:40.440 --> 0:02:43.880 on weapons sales to Saudi Arabia. On Bloomberg's Amy Morris 0:02:43.919 --> 0:02:45.120 has more from Washington. 0:02:45.520 --> 0:02:48.440 Officials tell The New York Times the Biden administration is 0:02:48.520 --> 0:02:52.400 prepared to relax some restrictions after taking note of Saudi 0:02:52.440 --> 0:02:55.880 Arabia's de facto ceasefire with the Houthi militia in Yemen. 0:02:56.280 --> 0:02:58.799 President Biden imposed the ban on the sale of certain 0:02:58.840 --> 0:03:02.239 weapons two years ago, concerned that US weapons were being 0:03:02.320 --> 0:03:05.440 used against civilians in Yemen. The US did not say 0:03:05.480 --> 0:03:07.640 when the easing of the band might happen, and it 0:03:07.680 --> 0:03:10.240 can be reversed at any time if the President decides 0:03:10.280 --> 0:03:13.680 it's not in US interests. Saudi Arabia is the largest 0:03:13.720 --> 0:03:17.639 buyer of American weapons in Washington. Amy Moore as Bloomberg. 0:03:17.280 --> 0:03:18.720 Radio, Okay, mee, thank you. 0:03:18.760 --> 0:03:21.640 Meanwhile, closer to home, President Biden's preparing to send a 0:03:21.680 --> 0:03:25.840 team to Mexico to talk immigration. Bloomberg said, Baxter has 0:03:25.880 --> 0:03:26.400 that story. 0:03:26.639 --> 0:03:30.160 The mission comes after a conversation with Mexico's President Lopez 0:03:30.200 --> 0:03:33.200 opened the door with increasing pressure as well to get 0:03:33.240 --> 0:03:38.000 something done regarding immigration. NSC spokesman John Kirby says it 0:03:38.040 --> 0:03:39.920 will be top officials prison. 0:03:39.960 --> 0:03:43.880 Biden has asked Secretary of State Tony Blinken, Secretary of 0:03:43.880 --> 0:03:48.280 Homeland Security Alejandro Majorcis, and White House Homeland Security Advisor 0:03:48.360 --> 0:03:52.360 Liz Sherwood Randall to travel to Mexico in coming days. 0:03:52.480 --> 0:03:56.280 Kirby says the trip will take place as soon as possible. 0:03:56.920 --> 0:03:58.440 Ed Baxter, Bloomberg. 0:03:58.080 --> 0:04:00.760 Radio, All righted, thanks we all. Turning to corporate news 0:04:00.800 --> 0:04:03.680 now shares a Nike down eleven and a half percent 0:04:03.760 --> 0:04:07.160 in early trading, the sportsware giant is forecasting revenue to 0:04:07.160 --> 0:04:10.040 be down slightly in the fiscal third quarter and up 0:04:10.080 --> 0:04:13.200 in low single digits in the fourth quarter. Punham Goyle 0:04:13.400 --> 0:04:16.320 is a senior US e commerce and retail analyst at 0:04:16.360 --> 0:04:17.480 Bloomberg Intelligence. 0:04:17.800 --> 0:04:21.120 They're still only expecting revenues to be up one percent, 0:04:21.520 --> 0:04:24.360 and that's a function of two things. One an uncertain 0:04:24.480 --> 0:04:28.520 macro and two weaker China. So those two things together 0:04:28.920 --> 0:04:33.400 is what's raising browse here because China, as everyone knows, 0:04:33.520 --> 0:04:36.120 is a real area of growth for them. 0:04:36.520 --> 0:04:39.880 And Bloomberg Intelligence and Spoonhem Goyle says. Nike is also 0:04:39.920 --> 0:04:43.159 taking steps to streamline the organization and that's expected to 0:04:43.200 --> 0:04:46.520 result in pre tax restructuring charges of about four hundred 0:04:46.560 --> 0:04:48.359 to four hundred and fifty million dollars. 0:04:48.480 --> 0:04:49.160 Well, Karen, we're. 0:04:49.080 --> 0:04:51.960 Also seeing some other sporting goods companies follow after that 0:04:52.000 --> 0:04:55.800 disappointing Nike forecast. In Europe, shares of Adidas are down 0:04:55.880 --> 0:04:59.279 nearly six percent, Pumas down about four to five and 0:04:59.320 --> 0:05:01.640 a half percent, should say. And here in the US 0:05:01.640 --> 0:05:04.200 in early trading, we're watching shares a foot Locker. They 0:05:04.200 --> 0:05:07.880 are down six and two thirds percent. Under Armour is 0:05:07.880 --> 0:05:11.000 down about five percent, Dick Sporting Goods lower by more 0:05:11.040 --> 0:05:11.919 than four percent. 0:05:12.360 --> 0:05:14.800 Well, Nathan Elon Musk is lashing out at the state 0:05:14.800 --> 0:05:18.520 of US financial market. Speaking to Our Investment Management CEO 0:05:18.640 --> 0:05:22.200 Kathy Wood during a discussion on his social media platform X, 0:05:22.680 --> 0:05:26.520 Musk complained about the scrutiny facing listed companies. 0:05:26.680 --> 0:05:28.720 There's a lot of pressure, like an immense pressure on 0:05:28.800 --> 0:05:31.719 a public company to not have a bad quarter. So 0:05:32.080 --> 0:05:36.000 this can actually result in a less efficient operation where 0:05:36.040 --> 0:05:38.080 you're going to great lengths at the end of quarter 0:05:38.240 --> 0:05:41.320 to not disappoint people. You know, that's just just how 0:05:41.320 --> 0:05:41.719 it goes. 0:05:42.120 --> 0:05:45.280 And Musk says keeping SpaceX private has also allowed him 0:05:45.320 --> 0:05:48.360 to take more appropriate risk compared with the publicly traded 0:05:48.400 --> 0:05:49.360 Tesla and. 0:05:49.440 --> 0:05:52.080 Ten Cent Holdings is leaning an eighty billion dollars sell 0:05:52.120 --> 0:05:54.800 off in some of China's biggest online names. That's after 0:05:54.880 --> 0:05:58.799 China ensued a surprise imposition of new gaming curbs. 0:05:59.400 --> 0:06:05.080 This is Bloomberg Porry. 0:06:05.160 --> 0:06:06.760 Nathan thanks time now for a look at some of 0:06:06.800 --> 0:06:08.919 the other stories making news around the world, and for 0:06:08.960 --> 0:06:10.919 that we're joined by Bloomberg's Amy Morris. 0:06:10.960 --> 0:06:12.960 Amy, Good morning, Good morning, Karen. 0:06:13.160 --> 0:06:17.240 Increasing security concerns across the US. Deputy US Attorney General 0:06:17.279 --> 0:06:20.520 Lisa Monico says the biggest concern now is lone wolves 0:06:20.560 --> 0:06:23.280 and small groups acting with little to no notice. 0:06:23.360 --> 0:06:28.520 Since October seventh, the FBI has received more than eighteen 0:06:28.720 --> 0:06:33.120 hundred report of threats or other types of tips or 0:06:33.240 --> 0:06:36.400 leads that are somehow related to or having access to 0:06:36.520 --> 0:06:37.400 the current conflict. 0:06:37.440 --> 0:06:41.279 Deputy Attorney General Lisa Monicco was talking with ABC's This Week, 0:06:41.320 --> 0:06:44.279 which you can hear each Sunday afternoon here on Bloomberg Radio. 0:06:44.720 --> 0:06:48.200 Former Trump attorney Rudy Giuliani has filed for bankruptcy protection 0:06:48.320 --> 0:06:51.880 after a court ordered Our court ordered him to pay 0:06:51.920 --> 0:06:55.000 nearly one hundred and fifty million dollars for defaming two 0:06:55.040 --> 0:06:59.400 Georgia election workers. Loyola law professor Laurie Levinson says that 0:06:59.440 --> 0:07:01.720 doesn't ness necessarily let Juliani off the hook. 0:07:01.800 --> 0:07:06.800 Finally, the bankruptcy might delay things, but ultimately, if his 0:07:06.960 --> 0:07:10.840 creditors can find assets that he does have, then they'll 0:07:10.840 --> 0:07:13.560 be able to go after those, either in the bankruptcy 0:07:13.600 --> 0:07:15.240 proceedings or otherwise. 0:07:15.320 --> 0:07:18.560 Among the creditors Julianni lists are the Internal Revenue Service 0:07:18.640 --> 0:07:22.400 and Hunter Biden. Apple has now pulled its Apple Watches 0:07:22.480 --> 0:07:25.760 Series nine and Ultra iiO models from its online store 0:07:26.000 --> 0:07:29.160 to meet a ban ordered by the International Trade Commission. 0:07:29.440 --> 0:07:32.280 As Bloomberg's Scott Carr tells us, many of the watches 0:07:32.320 --> 0:07:34.240 are now also out of warranty. 0:07:34.320 --> 0:07:36.600 The ban on the Apple smart watches also means the 0:07:36.600 --> 0:07:39.320 company is not allowed to fix models out of warranty. 0:07:39.720 --> 0:07:42.400 Apple's customer service teams were told in a memo this 0:07:42.520 --> 0:07:44.960 week that the company will no longer replace out of 0:07:45.000 --> 0:07:47.960 warranty models going back to the Apple Watch Series six. 0:07:48.320 --> 0:07:50.720 The company will still offer help. It can be done 0:07:50.800 --> 0:07:54.520 via software, such as reinstalling the operating system. The ban 0:07:54.640 --> 0:07:58.000 affects most new Apple watches sold since twenty twenty that 0:07:58.040 --> 0:08:00.800 the ITC says includes a blood ox and censor that 0:08:00.880 --> 0:08:05.200 violates a patent held by Massimo, Scott car Bloomberg Radio. 0:08:05.040 --> 0:08:07.520 And the Food and Drug Administration has seized thousands of 0:08:07.600 --> 0:08:12.280 units of counterfeit o zepic, a diabetes drug from Novo Nordisk. 0:08:12.640 --> 0:08:15.160 It's been adapted into a weight loss treatment. As you've heard, 0:08:15.480 --> 0:08:19.720 the FDA warns wholesalers, retail pharmacies, healthcare practitioners, and patients 0:08:19.880 --> 0:08:22.880 check your products. Make sure they're not fake. The FDA 0:08:22.920 --> 0:08:25.160 and Novo are testing seized products and they don't have 0:08:25.200 --> 0:08:29.080 any information yet about their identity, quality or safety. Global 0:08:29.120 --> 0:08:31.120 news twenty four hours a day and whenever you want 0:08:31.160 --> 0:08:33.640 it with Bloomberg News Now. I'm Amy Morris and this 0:08:33.800 --> 0:08:34.760 is Bloomberg Karen. 0:08:34.840 --> 0:08:36.520 Sorry to Amy. Thank you what we do bring you 0:08:36.559 --> 0:08:39.520 news throughout the day here on Bloomberg Radio. But now, 0:08:39.960 --> 0:08:42.000 as Amy said, you can get the latest news on 0:08:42.040 --> 0:08:46.280 demand whenever you want it. Just subscribe to Bloomberg News 0:08:46.320 --> 0:08:48.520 Now to get the latest headlines at the click of 0:08:48.559 --> 0:08:51.920 a button. Get informed on your schedule. You can listen 0:08:51.960 --> 0:08:55.680 and subscribe to Bloomberg News Now on the Bloomberg Business app, 0:08:55.679 --> 0:08:59.680 Bloomberg dot Com, plus apples, Spotify, and anywhere else you 0:08:59.679 --> 0:09:07.240 get your podcast. Time now for the Bloomberg Sports Update 0:09:07.280 --> 0:09:09.959 with John stash Hour John Karen. 0:09:10.000 --> 0:09:12.640 The LA Dodgers have been in the baseball postseason eleven 0:09:12.679 --> 0:09:15.720 straight years. They have just the one World Series championship 0:09:15.760 --> 0:09:18.240 to show for it. That in the COVID shortened twenty 0:09:18.280 --> 0:09:22.000 twenty season. Making an effort to be better in October, 0:09:22.040 --> 0:09:25.440 have they ever spent money in this offseason? They acquired 0:09:25.480 --> 0:09:27.280 Tyler Glass now from Tampa Bay. 0:09:27.320 --> 0:09:28.000 They gave him a. 0:09:27.960 --> 0:09:30.199 New contract for one hundred and thirty six million dollars. 0:09:30.200 --> 0:09:33.680 They of course added Sho hey Otani price tag seven 0:09:33.800 --> 0:09:38.120 hundred million, and now they've added another Japanese player, twenty 0:09:38.120 --> 0:09:42.560 five year old pitcher Yashinobu Yamamoto. Dodgers haven't conferred the deal, 0:09:42.640 --> 0:09:46.440 but several media reports it's twelve years, three hundred and 0:09:46.480 --> 0:09:49.600 twenty five million, So betwe the two Japanese players. The 0:09:49.640 --> 0:09:53.760 Dodgers pledged to pay a total of over a billion dollars. Yamamoto, 0:09:53.840 --> 0:09:57.440 pitching for the ORYX Buffaloes last year, won sixteen games, 0:09:57.440 --> 0:10:00.800 pitched to a one point two to one baseball with 0:10:00.880 --> 0:10:03.880 some rule changes for twenty twenty four, the pitchclock with 0:10:04.000 --> 0:10:07.000 men on base reduced from twenty seconds to eighteen now, 0:10:07.080 --> 0:10:10.960 wider runner lane towards first base, and mound visits reduced 0:10:10.960 --> 0:10:14.440 from five to four. Thursday Night football in La easy 0:10:14.480 --> 0:10:17.120 win for the Rams. Saints scored a couple of late touchdowns, 0:10:17.160 --> 0:10:20.480 but the Rams won thirty to twenty two. Matthew Stafford 0:10:20.480 --> 0:10:22.160 through for three hundred and twenty eight yards. The Rams 0:10:22.160 --> 0:10:24.080 were three and six. They've now won five of their 0:10:24.160 --> 0:10:26.680 last six and at eight and seven, they're very much 0:10:26.679 --> 0:10:30.040 in it for a wildcar Clippers nine game winning street 0:10:30.040 --> 0:10:32.040 came to an end. They lost at Oklahoma City. The 0:10:32.120 --> 0:10:35.000 Lakers played without Lebron James. They lost at league leading 0:10:35.040 --> 0:10:37.720 Minnesota Johns. Dasheller Bloomberg's four. 0:10:40.640 --> 0:10:43.640 From Coast to coast, from New York to San Francisco, 0:10:43.960 --> 0:10:48.640 Boston to Washington, DC, nationwide on SYRIASXAM. 0:10:47.960 --> 0:10:51.600 The Bloomberg Business app in Bloomberg dot Com. This is 0:10:51.720 --> 0:10:55.280 Bloomberg Daybreak. Good morning, I'm Nathan Hager. 0:10:55.400 --> 0:10:58.079 Now two and a half months into the war in Gaza, 0:10:58.280 --> 0:11:00.719 Israel continues to face pressure to move its fight with 0:11:00.800 --> 0:11:04.120 Hamas into a less intense phase. The UN is moving 0:11:04.160 --> 0:11:07.239 closer to a resolution to bring more aid into the territory, 0:11:07.480 --> 0:11:09.720 and The New York Times is reporting that the US 0:11:09.880 --> 0:11:12.960 is preparing to lift a ban on offensive arm sales 0:11:13.000 --> 0:11:16.920 to Saudi Arabia as red sea shipping comes under greater attack. 0:11:16.960 --> 0:11:18.720 And for more on all this, we were joined by 0:11:18.720 --> 0:11:23.000 Bloomberg New Senior editor Bill Ferries. Bill, good morning. First off, 0:11:23.000 --> 0:11:27.679 what's the latest on this Security Council resolution on Gaza aid? 0:11:27.840 --> 0:11:31.800 This has been under debate all week long, hasn't it? 0:11:31.800 --> 0:11:32.400 It has? 0:11:32.520 --> 0:11:35.319 And if you remember earlier this month, the US was 0:11:35.360 --> 0:11:39.959 the only country voting against and effectively vetoing a UN 0:11:40.040 --> 0:11:43.760 Security Council resolution that was calling for an immediate ceasefire 0:11:44.360 --> 0:11:50.160 in the Israel Hamas war. Even US allies didn't stand 0:11:50.600 --> 0:11:53.120 in the way of that resolution. So they've been trying 0:11:53.120 --> 0:11:56.720 to hammer out something all week that could pass, and 0:11:56.760 --> 0:11:59.000 it looks like there could be a vote Friday that 0:11:59.160 --> 0:12:02.800 US said it could support support a resolution that would 0:12:02.800 --> 0:12:07.800 beef up aid deliveries to Gaza, and we don't have 0:12:07.880 --> 0:12:12.800 all the details, but which would presumably involve some sort 0:12:12.920 --> 0:12:16.960 of a cessation of hostilities. Right now, the draft that 0:12:17.000 --> 0:12:21.760 we've seen talks about working towards some kind of a ceasefire, 0:12:21.840 --> 0:12:25.319 so not declaring one at the outset, but that's been 0:12:25.360 --> 0:12:28.040 the goal along for most of the countries involved in 0:12:28.040 --> 0:12:31.680 this process. And we'll have to see what the final 0:12:31.760 --> 0:12:35.400 draft is later today and whether that goes down for 0:12:35.440 --> 0:12:39.000 a vote. But the US Ambassador to the UN signaling 0:12:39.240 --> 0:12:43.040 late last night that the US is likely to support 0:12:43.120 --> 0:12:43.920 such an effort. 0:12:44.120 --> 0:12:47.320 What's the practical impact of a resolution like this when 0:12:47.320 --> 0:12:51.439 we are hearing comments from a White House National Security 0:12:51.480 --> 0:12:54.680 spokesman John Kirby, the Secretary of State Antony Blincoln and 0:12:54.800 --> 0:12:58.360 others calling on Israel to at least de intensify the 0:12:58.400 --> 0:13:00.760 war with Gaza, the war in Gaza. 0:13:01.720 --> 0:13:05.839 Yeah, you've seen the US, particularly for for weeks now, 0:13:05.880 --> 0:13:10.000 trying to straddle this divide between signaling its support for 0:13:10.160 --> 0:13:12.360 Israel and saying it has, you know, continues to have 0:13:12.400 --> 0:13:15.760 the right to defend itself after those October seventh attacks 0:13:15.800 --> 0:13:19.960 by Hamas, but also signaling its real concern about the 0:13:20.040 --> 0:13:24.480 rising civilian death toll. And increasingly in recent weeks you've 0:13:24.480 --> 0:13:28.720 seen the focus of that balancing act shift towards the 0:13:28.760 --> 0:13:32.800 civilian death toll. And you basically have both President Biden 0:13:33.280 --> 0:13:37.120 last week before a group of fundraisers and Secretary of 0:13:37.120 --> 0:13:40.720 Saint Anthony Blincoln this week saying that they really need 0:13:40.760 --> 0:13:41.960 to see a more. 0:13:41.800 --> 0:13:44.800 Targeted approach by Israel Israel. 0:13:44.840 --> 0:13:48.520 They you know, they're talking about Israel going after AMAS leader, 0:13:48.559 --> 0:13:53.559 specific Hamas leaders, rather than maybe the broader bombing campaign 0:13:53.640 --> 0:13:56.960 that we saw in the first several weeks and in 0:13:57.120 --> 0:13:59.199 actually the first two months of this conflict. 0:13:59.440 --> 0:14:01.360 Bill What more can we say about this New York 0:14:01.400 --> 0:14:04.000 Times report that the Biden administration is getting ready to 0:14:04.040 --> 0:14:07.800 lift an offensive weapons ban on Saudi Arabia. This has 0:14:07.840 --> 0:14:10.440 to be related to some of the turmoil we're seeing 0:14:10.440 --> 0:14:11.680 in the Red Sea, doesn't it. 0:14:12.720 --> 0:14:12.920 Yeah. 0:14:12.960 --> 0:14:16.440 Absolutely, It's really interesting because you know, it shows how 0:14:16.440 --> 0:14:18.840 the world has changed in just a few years, Just 0:14:18.880 --> 0:14:21.520 two or three years ago, when there was a lot 0:14:21.520 --> 0:14:26.120 of frustration in the US about about the Saudi led 0:14:26.240 --> 0:14:29.960 war against the Huti Rebels and Yemen. It was considered 0:14:30.000 --> 0:14:33.000 one of the world's biggest humanitarian disasters at the time. 0:14:33.960 --> 0:14:37.040 And you know, in the time since, there's been a 0:14:37.040 --> 0:14:39.600 little bit of a shift I think on Saudi Arabia's part, 0:14:39.640 --> 0:14:42.680 in particular, since this band went into a place where 0:14:43.080 --> 0:14:46.600 they are, they have been more recently trying to find 0:14:46.600 --> 0:14:51.480 a diplomatic approach to the Huti Rebels. And you know, 0:14:51.560 --> 0:14:55.000 the focus that Crown Prince Mohammed ben Salman had on 0:14:55.080 --> 0:14:59.880 persecuting a war has really changed now. So the Biden 0:15:00.000 --> 0:15:03.960 administration's argument seems to be, you know, the reason that 0:15:04.000 --> 0:15:06.880 we put this ban in place no longer really exists. 0:15:06.960 --> 0:15:09.160 We can put it back in if we need to. 0:15:09.880 --> 0:15:14.120 But I think they're really trying to leverage the alliance 0:15:14.760 --> 0:15:17.800 or the partnership with the saudis to try to get 0:15:17.800 --> 0:15:19.800 them in a place where maybe they can put a 0:15:19.800 --> 0:15:22.520 little bit more pressure on the Hooties the Red Sea. 0:15:23.160 --> 0:15:26.240 It's really become a major crisis for global shipping. It's 0:15:26.280 --> 0:15:30.400 become something that threatens supply chains once again. It has 0:15:30.440 --> 0:15:35.040 a potential impact on inflation and obviously threatens human lives. 0:15:35.080 --> 0:15:39.720 If these attacks on ships passing through that region continue, 0:15:39.720 --> 0:15:41.920 it has the really the bigger issue is it has 0:15:41.920 --> 0:15:47.280 the risk of expanding this war to a much broader area. 0:15:47.520 --> 0:15:50.440 This is Bloomberg day Break Today, your morning brief on 0:15:50.520 --> 0:15:54.040 the story's making news from Wall Street to Washington and beyond. 0:15:54.320 --> 0:15:57.080 Look for us on your podcast feed at six am 0:15:57.160 --> 0:16:00.840 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:00.880 --> 0:16:01.920 get your podcasts. 0:16:02.160 --> 0:16:04.880 You can also listen live each morning starting at five 0:16:04.920 --> 0:16:07.560 am Wall Street time on Bloomberg eleven three to zero 0:16:07.560 --> 0:16:11.040 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:16:11.040 --> 0:16:14.040 one oh sixty one in Boston, and Bloomberg ninety sixty 0:16:14.200 --> 0:16:15.160 in San Francisco. 0:16:15.520 --> 0:16:18.680 Our flagship New York station is also available on your 0:16:18.720 --> 0:16:24.160 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus. 0:16:24.200 --> 0:16:27.200 Listen coast to coast on the Bloomberg Business app, serious 0:16:27.360 --> 0:16:31.280 XM Channel one nineteen, the iHeartRadio app, and on Bloomberg 0:16:31.400 --> 0:16:32.000 dot Com. 0:16:32.000 --> 0:16:33.280 I'm Nathan Hager and. 0:16:33.200 --> 0:16:36.520 I'm Karen Moscow. Join us again tomorrow morning for all 0:16:36.560 --> 0:16:39.080 the news you need to start your day, right here 0:16:39.200 --> 0:16:40.520 on Bloomberg Daybreak