Ukraine Strikes Russia; US Treasury Secretary Search

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:09.720 --> 0:00:11.520 Good morning, I'm Nathan Hager. 0:00:11.440 --> 0:00:14.680 And I'm Karen Moscow. Here are the stories we're following today. 0:00:15.200 --> 0:00:17.960 We begin with breaking news out of Russia. Ukraine has 0:00:17.960 --> 0:00:20.320 carried out its first strike in a border region within 0:00:20.520 --> 0:00:23.960 Russian territory with a US made missile. This is according 0:00:24.000 --> 0:00:27.840 to RBC Ukraine, citing an official in the nation's military. 0:00:28.200 --> 0:00:31.280 The news came as Russian President Vladimir Putin approved a 0:00:31.520 --> 0:00:34.440 change to the country's nuclear doctrine that allows for the 0:00:34.520 --> 0:00:38.519 expanded use of weapons. According to a document published by 0:00:38.520 --> 0:00:41.320 the Kremlin, the updated doctrine includes a possibility of a 0:00:41.400 --> 0:00:45.040 nuclear response to aggression by non nuclear states that is 0:00:45.080 --> 0:00:47.159 supported by other nuclear powers. 0:00:47.479 --> 0:00:49.360 And beget more from Bloomberg's Bill Ferries. 0:00:49.880 --> 0:00:52.879 Throughout this, you know, throughout this conflict, we've seen him 0:00:52.960 --> 0:00:58.200 raise the specter of nuclear weapons as a thread against 0:00:58.240 --> 0:00:58.720 the West. 0:00:59.520 --> 0:01:00.880 It's worth noting that. 0:01:00.840 --> 0:01:04.720 You know, it's if China has any real red lines 0:01:04.760 --> 0:01:07.880 and its support for Russia, one of them has been 0:01:08.560 --> 0:01:12.600 no first use of nuclear weapons. So if Putin went 0:01:12.680 --> 0:01:15.960 that far, there'd obviously be a whole range of consequences, 0:01:16.000 --> 0:01:20.640 but he would potentially be putting his biggest backer in 0:01:20.680 --> 0:01:23.240 a very difficult position as well. But I think, yes, 0:01:23.319 --> 0:01:25.920 I think this latest maneuver. I think it's his way 0:01:26.000 --> 0:01:30.120 of providing a response, a quick response to what appears 0:01:30.160 --> 0:01:33.039 to be Ukraine's use of these weapons now. 0:01:33.280 --> 0:01:37.040 Bloomberg's Bill Ferries ads that the changes also say Russia 0:01:37.080 --> 0:01:40.399 may use nuclear weapons upon receiving information about a launch 0:01:40.400 --> 0:01:43.480 of ballistic missiles attacking Russia or its allies. 0:01:43.600 --> 0:01:46.720 And staying with geopolitics, Karen, Day two of the G 0:01:46.880 --> 0:01:49.600 twenty Leader Summit gets underway this morning in Brazil. 0:01:49.720 --> 0:01:51.960 Bloomberg's David Gora is there. 0:01:51.760 --> 0:01:54.960 With the latest US President, Joe Biden is focused on 0:01:55.000 --> 0:01:57.680 his legacy and on the work he's done and continues 0:01:57.720 --> 0:02:00.560 to do on climate in the war in Ukraine. But 0:02:00.680 --> 0:02:03.320 Biden has only a few weeks left in office before 0:02:03.360 --> 0:02:06.080 Donald Trump returns to the White House, and that has 0:02:06.080 --> 0:02:08.280 diminished his role here at the G twenty summit in 0:02:08.360 --> 0:02:11.400 Rio de Janeiro, Biden is not holding many one on 0:02:11.400 --> 0:02:14.280 one meetings with other world leaders, and he seated much 0:02:14.280 --> 0:02:17.440 of the spotlight to other heads of state. Biden even 0:02:17.480 --> 0:02:20.960 missed the G twenty photo shoot, a highly choreographed moment 0:02:21.440 --> 0:02:25.160 along with Prime Ministers Justin Trudeau and Georgia Maloney. David 0:02:25.160 --> 0:02:27.800 Gura Bloomberg Radio shandio. 0:02:28.040 --> 0:02:29.919 All right, David, thank you back here in the US. 0:02:30.000 --> 0:02:32.200 President like Donald Trump, may be getting closer to a 0:02:32.240 --> 0:02:35.840 decision on the next Treasury secretary, sources Tol Bloomberg News. 0:02:35.880 --> 0:02:37.760 His team is thinking of pairing Kevin. 0:02:37.480 --> 0:02:40.480 Worsh in the Treasury role, but Scott Bessen as head 0:02:40.480 --> 0:02:44.560 of the National Economic Council. Bloomberg's Ferry Valerie Titel has 0:02:44.560 --> 0:02:45.400 more on Worsh. 0:02:45.680 --> 0:02:50.120 He is a former FED governor. He was also rumored 0:02:50.160 --> 0:02:53.760 to be picked for the FED chair in twenty seventeen, 0:02:53.800 --> 0:02:56.760 but Trump was swayed by his then Treasury secretary to 0:02:56.840 --> 0:02:59.440 go for Powell instead, a move that he has said 0:02:59.440 --> 0:03:00.760 that he now regrets. 0:03:01.160 --> 0:03:04.560 Plumber's Valerie Tiitewer reports there's some concern about whether Warsh 0:03:04.600 --> 0:03:07.920 would be loyal enough to Trump's economic agenda. He wrote 0:03:07.919 --> 0:03:10.720 a twenty eleven op ed with Jeb Bush warning of 0:03:10.760 --> 0:03:14.919 the quote rising tide of economic protectionism. Meantime, Nathan, there 0:03:14.960 --> 0:03:18.359 are more signs one of Trump's confirmed cabinet picks will 0:03:18.360 --> 0:03:21.320 face a tough confirmation process. Senators from both sides of 0:03:21.360 --> 0:03:24.080 the Aisle are demanding more information on the House Ethics 0:03:24.120 --> 0:03:27.440 probe and to Matt Gates, Trump's choice to be Attorney General. 0:03:27.680 --> 0:03:30.919 Gates is accused of sexual misconduct and illicit drug use, 0:03:30.960 --> 0:03:34.840 though he's denied wrongdoing. Speaker Mike Johnson insists the panel's 0:03:34.880 --> 0:03:36.880 report should be kept confidential. 0:03:37.200 --> 0:03:39.960 To use the House's resources in a manner that is 0:03:40.040 --> 0:03:43.840 virtually unprecedented, I think is a breach of protocol. 0:03:44.360 --> 0:03:47.200 Still, the top Republican on the Senate Judiciary Committee says 0:03:47.200 --> 0:03:49.400 he expects the women who spoke to the Ethics Panel 0:03:49.440 --> 0:03:51.680 behind closed doors will testify before them. 0:03:51.880 --> 0:03:52.720 The committee will. 0:03:52.560 --> 0:03:55.640 Meet tomorrow to discuss how to handle its report. Axio 0:03:55.720 --> 0:04:00.200 supports President elect Trump has been calling senators personally oring 0:04:00.280 --> 0:04:01.960 them to support Gates and Karin. 0:04:02.000 --> 0:04:04.600 The president's elect has also confirmed his plan to use 0:04:04.640 --> 0:04:09.280 the US military as part of a mass deportation program. 0:04:09.320 --> 0:04:11.840 We get more on that from Bloomberg's Amy Morris. 0:04:11.840 --> 0:04:16.040 In Washington, Trump wrote true on his Truth social network 0:04:16.080 --> 0:04:18.479 in a reply to a post from the president of 0:04:18.520 --> 0:04:22.000 the conservative legal group Judicial Watch, who said Trump was 0:04:22.040 --> 0:04:25.919 reportedly prepared to declare a national emergency and use military 0:04:26.000 --> 0:04:30.200 assets for a mass deportation program. While on the campaign trail, 0:04:30.279 --> 0:04:33.240 Trump did pledge to secure the border with Mexico by 0:04:33.279 --> 0:04:37.000 finishing construction of a wall and carrying out mass deportations. 0:04:37.320 --> 0:04:39.960 Trump and his team have not outlined how they'll carry 0:04:40.000 --> 0:04:43.279 this out. It will take substantial funding from Congress and 0:04:43.360 --> 0:04:48.160 cooperation from other countries. It may face legal challenges in Washington. 0:04:48.200 --> 0:04:49.800 Amy Morris Bloomberg Radio. 0:04:49.720 --> 0:04:50.760 All right, Amy, thank you well. 0:04:50.760 --> 0:04:54.120 Hedge Fund titan Ken Griffin says he's quote very anxious 0:04:54.120 --> 0:04:57.920 about Donald Trump's potential tariff policies. Speaking to the UK's 0:04:57.920 --> 0:05:01.520 Oxford Union, the Citadel founder and Publican donor said tariffs 0:05:01.520 --> 0:05:04.719 are a long, slippery slope that can be profitable in 0:05:04.800 --> 0:05:08.320 the short run, but damaging to US company's ability to compete. 0:05:08.040 --> 0:05:09.479 Globally in the long run. 0:05:09.839 --> 0:05:13.520 Morgan Stanley's CEO also voice concerns about the changing economic 0:05:13.600 --> 0:05:17.560 environment for business. Here's what Ted Pick told the HKMA 0:05:17.600 --> 0:05:19.440 Global Financial Leaders Summit. 0:05:20.000 --> 0:05:24.520 In a sense, there is an inflationary backdrop, and there 0:05:24.600 --> 0:05:29.200 is now the additional complication of the potential for tars 0:05:29.240 --> 0:05:34.240 and actually net emigration also would be inflationary. 0:05:34.640 --> 0:05:35.839 As for geopolitics. 0:05:35.839 --> 0:05:38.359 Morgan Stanley's Ted Pigs said there was still need for 0:05:38.360 --> 0:05:42.040 a greater transparency in Chinese regulations and policymaking. 0:05:42.240 --> 0:05:43.880 But on Legal news, top anti. 0:05:43.680 --> 0:05:46.440 Trust officials said the Justice Department have decided to ask 0:05:46.480 --> 0:05:48.840 a federal judge to force Google to sell off its 0:05:48.920 --> 0:05:51.919 Chrome browser. Begin more with Bloomberg's Doug Chrisner. 0:05:52.160 --> 0:05:55.159 We're told the DOJ we'll ask federal judge Ahmic Meta 0:05:55.279 --> 0:05:59.560 to also require measures related to artificial intelligence and Google's 0:05:59.560 --> 0:06:03.400 Android smartphone operating system. Meta is the same judge who 0:06:03.480 --> 0:06:07.120 ruled back in August that Google illegally monopolized the search market. 0:06:07.480 --> 0:06:10.400 The DOJ officials, along with states that have joined the case, 0:06:10.600 --> 0:06:15.159 also plan to recommend Meta imposed data licensing requirements, and 0:06:15.240 --> 0:06:18.240 if Meta accepts these proposals, they have the potential to 0:06:18.320 --> 0:06:22.320 reshape the online search market and the developing AI industry. 0:06:22.680 --> 0:06:24.720 By the way, this case was filed under the first 0:06:24.720 --> 0:06:28.600 Trump administration and continued under President Biden. In New York, 0:06:28.640 --> 0:06:30.119 I'm Doug Prisner, Bloomberg Radio. 0:06:30.320 --> 0:06:32.200 Doug, thank you. We get earnings this morning from the 0:06:32.200 --> 0:06:35.279 world's biggest retailer. Bloomberg's Tom Busby's here with the preview 0:06:35.320 --> 0:06:37.640 on what investors are looking for from Walmart. 0:06:38.480 --> 0:06:41.200 With a lot of Americans pulling back on their discretionary 0:06:41.240 --> 0:06:45.520 spending this past quarter, investors expect Walmart's core shoppers and newer, 0:06:45.800 --> 0:06:48.680 higher earning customers to give a boost the sales of 0:06:48.720 --> 0:06:52.359 groceries and other essentials. Also in focus the outlook for 0:06:52.400 --> 0:06:56.280 holiday spending and consumer health. Bloomberg consensus calls for comp 0:06:56.320 --> 0:06:59.239 sales at US Walmart stores to rise one point two percent, 0:07:00.000 --> 0:07:02.679 so one hundred and sixty seven point five to one billion, 0:07:02.720 --> 0:07:06.039 and adjusted earnings per share of fifty three cents. 0:07:06.080 --> 0:07:08.040 Tom buzzby Bloomberg. 0:07:07.600 --> 0:07:09.120 Radio, All right, Tom, thanks. 0:07:09.160 --> 0:07:12.640 Another company News shares a super a super Micro computer 0:07:12.760 --> 0:07:15.559 searching twenty nine percent in the pre market. The server 0:07:15.680 --> 0:07:19.160 maker says it has hired a new auditor, Bdousa, and 0:07:19.200 --> 0:07:22.600 found a plan to come into compliance with Nasdaq listing requirements. 0:07:22.840 --> 0:07:25.680 Super Micro is facing a Department of Justice probe, and 0:07:25.760 --> 0:07:29.120 last month it's auditor, Ernst and Young resigned, citing concerns 0:07:29.120 --> 0:07:32.840 over super Micro's transparency and governance. Shares of tumbled more 0:07:32.840 --> 0:07:35.560 than eighty five percent from a peak in March. 0:07:35.440 --> 0:07:39.040 And Karen Blackstone may be hungry for an acquisition. Bloomberg 0:07:39.080 --> 0:07:41.040 News has learned the New York based money Manager's close 0:07:41.040 --> 0:07:43.960 to an agreement to buy the sandwich chain Jersey Mike's 0:07:44.400 --> 0:07:46.880 for about eight billion dollars, including debt. 0:07:50.120 --> 0:07:50.760 Five thirty two. 0:07:50.840 --> 0:07:52.960 On Wall Street, we bring in John Tucker now with more. 0:07:53.120 --> 0:07:54.960 What else is going on to New York and around 0:07:54.960 --> 0:07:55.360 the world? 0:07:55.520 --> 0:07:58.520 John, Yeah, Good morning, Karen. New York City has issued 0:07:58.560 --> 0:08:01.800 its first drought warning and twenty two years. It comes 0:08:01.840 --> 0:08:04.200 after months of little rain and is going to restart 0:08:04.240 --> 0:08:06.640 the flow of drinking water from an out of service 0:08:06.760 --> 0:08:11.200 aqueduct as supplies run low. Dry conditions across the Northeast 0:08:11.200 --> 0:08:14.280 have been blamed for hundreds of brush fires. They'd already 0:08:14.320 --> 0:08:17.280 prompted New York City and state officials to implement water 0:08:17.320 --> 0:08:21.600 conservation protocols, where Mayor Eric Adams upgraded the drought warning 0:08:21.960 --> 0:08:26.280 and temporarily halted an aqueduct repair project that had stopped 0:08:26.360 --> 0:08:29.680 drinking water flowing from some reservoirs in the Catskill region. 0:08:30.320 --> 0:08:33.280 A stabbing rampage has left three people dead in Manhattan. 0:08:33.360 --> 0:08:36.720 It happened yesterday morning. Please say the attacks were random. 0:08:36.760 --> 0:08:39.319 A fifty two year old suspect is now in custody. 0:08:39.760 --> 0:08:43.760 Investigators are working to understand what propelled the rampage, which 0:08:43.800 --> 0:08:46.560 happened within two and a half hours. It happened across 0:08:46.559 --> 0:08:49.520 a Swatha, Manhattan, with a third fatal stabbing by the 0:08:49.679 --> 0:08:52.960 United Nations. The US is planning to make a huge 0:08:53.160 --> 0:08:57.000 investment at a new semiconductor research institute. Let's get more 0:08:57.040 --> 0:08:59.360 in this report from Bloomberg's Jeff Bellinger. 0:09:00.000 --> 0:09:03.200 The institute is a total one billion dollar investment. It 0:09:03.240 --> 0:09:06.679 will be headquartered in North Carolina and run by Semiconductor 0:09:06.720 --> 0:09:10.280 Research and Industry Consortium. It will receive funding from the 0:09:10.320 --> 0:09:13.840 twenty twenty two Chips and Science Act. The latest investment 0:09:13.920 --> 0:09:16.720 has the goal of reducing the cost and time of 0:09:16.800 --> 0:09:20.360 chip development by roughly a third. The Commerce Department says 0:09:20.400 --> 0:09:24.479 within five years. The new institute will help speed technology development, 0:09:24.720 --> 0:09:28.760 reduce the greenhouse gases associated with chip manufacturing by twenty 0:09:28.800 --> 0:09:32.560 five percent, and train more than one hundred thousand students 0:09:32.600 --> 0:09:37.439 and workers on digital twin technology. Jeff Bellinger Bloomberg Radio. 0:09:37.600 --> 0:09:40.520 Ahead of Friday's hearing on his bail, prosecutors claim that 0:09:40.640 --> 0:09:44.080 music mogul Sean Ditty Combs has been trying to contact 0:09:44.120 --> 0:09:47.760 witnesses and victims from behind bars, accusing him of trying 0:09:47.800 --> 0:09:50.880 to influence the jury pool and subvert his criminal case. 0:09:51.280 --> 0:09:54.040 Prosecutors say he offered to pay one witness if she 0:09:54.080 --> 0:09:57.480 would make a public statement of support and managing the 0:09:57.559 --> 0:10:01.440 virtual world of Roblox says becoming easier for parents with 0:10:01.559 --> 0:10:05.800 the latest platform updates, popular on game environment for kids 0:10:05.880 --> 0:10:09.480 rolling out new parental controls. Parents can now remotely change 0:10:09.520 --> 0:10:11.600 how much time their kids are playing on the platform, 0:10:11.800 --> 0:10:15.560 locked private messaging options, or even choose maturity levels that 0:10:15.640 --> 0:10:19.360 their kids are experiencing. Roadblocks is also turning off private 0:10:19.400 --> 0:10:23.000 messaging for kids under the age of thirteen. Global News 0:10:23.080 --> 0:10:24.800 twenty four hours a day and whatever you want it 0:10:24.840 --> 0:10:28.839 with Bloomberg News Now. I'm John Tucker. This is Bloomberg Karen. 0:10:28.920 --> 0:10:30.000 All right, John, thank you. 0:10:34.760 --> 0:10:36.840 Time now for the Bloomberg Sports Update, brought to you 0:10:36.880 --> 0:10:40.559 by Tri State Audie. Here's John stash Hour, John, Good morning. 0:10:40.280 --> 0:10:41.920 Good morning, Karen. It was a couple of years ago 0:10:41.920 --> 0:10:43.920 that the Giants had to make a big decision, give 0:10:43.960 --> 0:10:47.000 the big money to Daniel Jones or Saquon Barkley. 0:10:47.040 --> 0:10:50.080 They chose Jones. The decision has not gone well. 0:10:50.120 --> 0:10:53.240 Barkley's now with Philadelphia, candidate to be the NFL MVP. 0:10:53.520 --> 0:10:56.680 Jones is now the Giants third string quarterback. Coage Brian 0:10:56.720 --> 0:10:59.640 Daboll has put them on the bench Sunday against Tampa Bay. 0:11:00.000 --> 0:11:01.800 OINGQB will be Tommy DeVito. 0:11:02.280 --> 0:11:04.760 We're obviously not playing the way any of us want 0:11:04.760 --> 0:11:07.560 to play, and that's on all of us. But felt 0:11:07.559 --> 0:11:09.959 like this was a decision that we needed to make 0:11:10.000 --> 0:11:14.200 here and try to spark things, change things up, and 0:11:14.320 --> 0:11:17.000 you know, we went and did it with with Tommy Again. 0:11:17.200 --> 0:11:19.160 We spent a lot of time here over the last 0:11:19.200 --> 0:11:22.679 week of evaluating a lot of things and just felt 0:11:22.679 --> 0:11:24.360 like this was the best thing for us. 0:11:24.480 --> 0:11:27.160 DeVito did create a buzz last season when Jones was 0:11:27.160 --> 0:11:30.080 injured in New Jersey, kid living with his parents led 0:11:30.080 --> 0:11:32.280 the Giants of three straight wins. Drew Lockwell remain the 0:11:32.320 --> 0:11:35.400 backup QB. Jones cashed in into a strong twenty twenty 0:11:35.400 --> 0:11:38.760 two season, but since then thirteen interceptions, a three and 0:11:38.880 --> 0:11:40.920 thirteen record of the Giants this year two and eight, 0:11:41.280 --> 0:11:43.600 oh and five at home. Dallas Cowboys not much better 0:11:43.640 --> 0:11:45.960 three and seven, also and five at home. They're without 0:11:46.000 --> 0:11:48.280 their QB, Dak Prescott, and they just lost to Houston 0:11:48.679 --> 0:11:51.240 thirty four to ten. Joe Mixon three touchdowns for the 0:11:51.280 --> 0:11:53.280 Texans at the Garden, Knicks put up forty points to 0:11:53.360 --> 0:11:55.839 the first quarter. The route was on one thirty four 0:11:55.840 --> 0:11:57.880 to one oh six over a Washington who's lost nine 0:11:57.920 --> 0:11:59.360 in a row. The Nixts begin of five game road 0:11:59.360 --> 0:12:02.160 trip tomorrow in Phoenix. Rangers are on the road play 0:12:02.160 --> 0:12:04.800 tonight in Vancouver. The Capitals won six two at Utah 0:12:04.840 --> 0:12:07.600 two goals for Alex loveskiin Bruins fell one hundred five 0:12:07.679 --> 0:12:10.320 hundred lost at home to Columbus five to one. Luise 0:12:10.400 --> 0:12:12.400 Hill is the first Yankee pitcher to win Rookie of 0:12:12.400 --> 0:12:14.640 the Year since Dave Righetti in nineteen eighty one. He 0:12:14.679 --> 0:12:16.800 made it to the rotation due to Garrett Cole's injury, 0:12:16.800 --> 0:12:20.480 and he stayed in by winning fifteen games. Pirates Phenom 0:12:20.559 --> 0:12:22.960 Paul Skein's a runaway choice in the National League. 0:12:23.120 --> 0:12:24.840 The Hall of Fame ballot is out. 0:12:24.720 --> 0:12:26.559 Among those on it for the first time, I Chiro 0:12:26.720 --> 0:12:31.240 Suzuki and C. C. Sabathia, John Stashawa, Bloomberg Sports, Karen. 0:12:31.080 --> 0:12:34.200 Denethan, all right, John, thank you, and the Bloomberg Sports Report, 0:12:34.240 --> 0:12:37.000 Bronci you buy Audi, Visit your Tri State Audi dealer 0:12:37.000 --> 0:12:39.320 today and get behind the wheel of the Audi model 0:12:39.440 --> 0:12:40.400 you've always wanted. 0:12:42.840 --> 0:12:47.000 Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:12:47.080 --> 0:12:49.960 and around the world on Bloomberg dot Com and the 0:12:50.040 --> 0:12:54.080 Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm 0:12:54.160 --> 0:12:54.800 Nathan Hager. 0:12:54.840 --> 0:12:57.199 We are seeing a risk off move in the market 0:12:57.200 --> 0:12:59.880 this morning with reports that Ukraine has carried out its 0:13:00.160 --> 0:13:04.280 first strike inside Russia with Western supplied missiles. That says 0:13:04.360 --> 0:13:07.520 Russian President Vladimir Putin has signed a new decree allowing 0:13:07.559 --> 0:13:11.560 for expanded use of nuclear weapons in response to a 0:13:11.640 --> 0:13:16.880 conventional attack. Let's bring in Bloomberg News Director for Europe, 0:13:16.960 --> 0:13:19.880 the Middle East and Africa, Rosalind Mathieson for more on this, 0:13:20.240 --> 0:13:23.400 along with Bloomberg News Senior editor Bill Ferries. It's good 0:13:23.440 --> 0:13:25.600 to have you both with us this morning as we 0:13:25.640 --> 0:13:30.400 continue monitoring these developments in the Russia Ukraine war Roz. 0:13:30.440 --> 0:13:33.679 What do we know first of all about this reported 0:13:33.920 --> 0:13:36.760 strike using Attackem's missiles. 0:13:37.679 --> 0:13:40.719 Well, what we have a Ukraine media report saying that 0:13:40.880 --> 0:13:43.600 hey kV did in fact carry out its first strike 0:13:43.760 --> 0:13:48.559 using these attackers army tactical missile systems on an ammunition 0:13:48.720 --> 0:13:51.600 dump in an area that's just pretty much over the border, 0:13:51.640 --> 0:13:54.959 about seventy seventy five miles from the border between Russia 0:13:55.320 --> 0:13:59.560 and Ukraine. So a limited action, if true, and in 0:13:59.600 --> 0:14:02.480 line with what we were hearing beforehand in terms of 0:14:02.520 --> 0:14:06.120 the US authorizing the use of these weapons for some 0:14:06.320 --> 0:14:09.679 long range strikes inside Russia, to say that they had 0:14:09.720 --> 0:14:11.839 to be kept at least for now, very much in 0:14:11.840 --> 0:14:14.880 those border areas. And these are parts of Russia where 0:14:14.960 --> 0:14:18.280 Ukrainian troops have been on the ground inside Russia fighting 0:14:19.080 --> 0:14:21.600 Russian forces, So in the realm of what you would 0:14:21.600 --> 0:14:25.000 think of as the theater in a way of this conflict. 0:14:25.160 --> 0:14:29.200 So would be a limited move, if true, but also 0:14:29.280 --> 0:14:32.360 quite quick off the back of that announcement from the 0:14:32.440 --> 0:14:35.080 US that they are going to give our Ukraine permission 0:14:35.440 --> 0:14:37.600 to use these weapons on Russian soil. 0:14:37.920 --> 0:14:40.320 And it comes bill as I just mentioned that it 0:14:40.400 --> 0:14:43.680 so happens that Russian President Vladimir Putin has signed this 0:14:43.760 --> 0:14:49.520 decree new nuclear doctrine for Russia. Can we see this 0:14:50.120 --> 0:14:55.320 as a response to the Western supply of these longer 0:14:55.440 --> 0:14:57.600 range missiles for Ukraine. 0:14:58.640 --> 0:15:02.000 Well, I think you the sense that he's he's published 0:15:02.000 --> 0:15:07.080 this this document detailing a little bit more of Russia's policy. 0:15:07.120 --> 0:15:10.160 I mean, this is something he talked about in September, 0:15:10.520 --> 0:15:13.479 and we have seen since the beginning of this conflict 0:15:14.360 --> 0:15:17.280 a lot of Russian saber rattling. You'll remember it was 0:15:17.320 --> 0:15:22.040 in the spring of twenty twenty three when Putin announced 0:15:22.040 --> 0:15:28.200 that he would be moving some tactical nuclear weapons, battlefield 0:15:28.280 --> 0:15:32.280 nuclear weapons into Belarus, which was a highly unusual move. 0:15:32.360 --> 0:15:35.600 But throughout this, you know, throughout this conflict, we've seen 0:15:35.680 --> 0:15:40.840 him raise the specter of nuclear weapons as a thread 0:15:40.880 --> 0:15:44.720 against the West. It's worth noting that, you know, it's 0:15:44.760 --> 0:15:48.520 if China has any real red lines and its support 0:15:48.680 --> 0:15:52.400 for Russia, one of them has been no first use 0:15:52.440 --> 0:15:56.560 of nuclear weapons. So if Putin went that far, there'd 0:15:56.560 --> 0:16:00.280 obviously be a whole range of consequences, but he would 0:16:00.320 --> 0:16:04.360 potentially be putting his biggest backer in a very difficult 0:16:04.400 --> 0:16:06.680 position as well. But I think, yes, I think this 0:16:06.840 --> 0:16:10.680 latest maneuver, I think it's his way of providing a response, 0:16:11.000 --> 0:16:15.040 a quick response to what appears to be Ukraine's use 0:16:15.080 --> 0:16:16.200 of these weapons now. 0:16:16.320 --> 0:16:17.400 And RIZ up to now. 0:16:17.520 --> 0:16:20.360 This has come at a time when there's been a 0:16:20.480 --> 0:16:25.440 pretty breakneck effort by outgoing President Biden to shore up 0:16:25.480 --> 0:16:29.280 support for Ukraine. Ukrainian President Vladimir Zelenski has been talking 0:16:29.320 --> 0:16:32.120 about once President elect Trump comes in, there's probably going 0:16:32.160 --> 0:16:35.280 to be a quick end to the war in some way. 0:16:35.400 --> 0:16:39.120 How could these latest developments sort of alter the calculus 0:16:39.160 --> 0:16:40.160 going forward. 0:16:40.720 --> 0:16:44.080 Well, the latest developments at least if this missile strike 0:16:44.240 --> 0:16:48.360 is confirmed, it doesn't tangibly change the trajectory of the 0:16:48.360 --> 0:16:51.240 war on the ground, although obviously being seen as an escalation, 0:16:51.320 --> 0:16:54.000 and we can see that in the retoric from Russia 0:16:54.120 --> 0:16:56.920 today is Bill was saying the timing of the announcement 0:16:57.360 --> 0:17:00.960 on the nuclear doctrine that Vladimir Putin had signed, it 0:17:01.000 --> 0:17:03.120 is interesting even though this is a doctrine, they were 0:17:03.120 --> 0:17:05.760 talking about a change to what months ago. So the 0:17:05.840 --> 0:17:10.440 details themselves are not new or surprising. So escalation there, 0:17:10.480 --> 0:17:13.680 but also really you see Russia and Ukraine both trying 0:17:13.680 --> 0:17:17.800 to position themselves to be in the most advantageous position, 0:17:18.080 --> 0:17:22.359 you know, for the reality of that negotiations or talks likely, 0:17:22.440 --> 0:17:24.199 you know, Russia will have to feel that it's in 0:17:24.240 --> 0:17:27.760 their best interests to talk and to get some kind. 0:17:27.640 --> 0:17:31.240 Of negotiation going. Ukraine needs to be in the strongest position. 0:17:31.359 --> 0:17:35.200 That's very much the messaging that's coming from Ukraine's allies 0:17:35.320 --> 0:17:39.000 publicly at this point, a recognition that military and financial 0:17:39.040 --> 0:17:43.560 aid will start to slow, particularly from the US, and 0:17:43.600 --> 0:17:46.919 so the positioning is going on. You can see that 0:17:46.960 --> 0:17:49.399 from both Russia and Ukraine, and that's likely to be 0:17:49.520 --> 0:17:52.320 very much the case over the next couple of months 0:17:52.480 --> 0:17:54.680 until we have the Donald Trump back in the chair 0:17:54.720 --> 0:17:56.399 as president and Bill. 0:17:56.720 --> 0:17:58.680 Of course, this is coming at a time as well 0:17:58.800 --> 0:18:03.720 when we've seen North Korean troops move alongside Russian forces 0:18:03.800 --> 0:18:06.639 on the front lines. President Biden was saying that this 0:18:06.760 --> 0:18:09.600 authorized use of long range missiles was a reaction to 0:18:09.800 --> 0:18:13.160 that as well. Where could we see this conflict go 0:18:13.560 --> 0:18:16.359 in the short to medium term as we are in 0:18:16.400 --> 0:18:18.080 the midst of this Trump transition. 0:18:19.680 --> 0:18:23.200 Well, right, I think the North Korean the North Korean 0:18:23.200 --> 0:18:27.960 troops are also a game changer in this situation. I mean, 0:18:28.600 --> 0:18:32.320 you have intelligence reports saying that while there's ten thousand 0:18:32.680 --> 0:18:36.639 North Korean troops in Russia now preparing to fight against 0:18:36.720 --> 0:18:40.720 the Ukrainians, there could be through rotations as many as 0:18:40.760 --> 0:18:43.639 one hundred thousand over time. That's a huge advantage to 0:18:43.720 --> 0:18:47.640 Russia in terms of replacing troops in in terms of 0:18:47.720 --> 0:18:51.040 potentially expanding the battlefield. As ros said, I think both 0:18:51.119 --> 0:18:54.240 sides are going to be intensely jocking for all the 0:18:54.359 --> 0:18:57.760 leverage they can get at this point. For Ukraine that 0:18:57.920 --> 0:19:01.000 means holding as much of that cursed region of Russia 0:19:01.080 --> 0:19:04.879 that it captured earlier this year. I think for Russia 0:19:04.920 --> 0:19:08.600 it means pushing in across the entire front, and if 0:19:08.640 --> 0:19:10.919 they can do that with North Korean troops from their. 0:19:10.800 --> 0:19:12.480 Perspective, all the better. 0:19:12.600 --> 0:19:15.800 So I think, you know, the West has seen this 0:19:16.040 --> 0:19:19.679 arrival of North Koreans as an escalation, just as Russia 0:19:19.720 --> 0:19:23.919 sees the use of these attack em missiles as a 0:19:24.040 --> 0:19:25.000 separate escalation. 0:19:25.119 --> 0:19:28.480 Here speaking with Bill Ferry, senior editor for Bloomberg News, 0:19:28.520 --> 0:19:31.320 and Rosalind Mathison, our news director for Europe, the Middle 0:19:31.359 --> 0:19:36.280 East and Africa, Roz. Since we've seen this decree signed 0:19:36.680 --> 0:19:39.920 just this morning by Russian President Vladimir Putin, it's worth 0:19:39.960 --> 0:19:44.760 going into detail on what the significance is of this 0:19:45.000 --> 0:19:48.960 change in the nuclear doctrine for Russia. How big a 0:19:49.080 --> 0:19:52.400 change is this From what we understand from the decree. 0:19:52.400 --> 0:19:54.800 Well, it seems to be around the parameters of what 0:19:54.920 --> 0:19:58.600 Russia would say you know, allows it to respond with 0:19:58.680 --> 0:20:01.880 the use of nuclear weapons. And one is a very 0:20:02.000 --> 0:20:04.840 large scale and how do you define that conventional attack 0:20:05.359 --> 0:20:09.360 on Russia. That's quite a broad church there, potentially. And 0:20:09.440 --> 0:20:13.480 secondly that an attack on Russia by a non nuclear 0:20:13.520 --> 0:20:18.120 state ie Ukraine, backed by a nuclear state i e. 0:20:18.240 --> 0:20:20.760 The US, would be seen as a joint attack on 0:20:20.840 --> 0:20:24.720 Russia involving a nuclear state, and thereby a condition that 0:20:24.840 --> 0:20:29.320 could allow Russia to respond with nuclear force. And so 0:20:29.520 --> 0:20:32.239 some of the conditions that they would say, you know, 0:20:32.520 --> 0:20:35.399 are laid out for themselves for when they could use 0:20:35.400 --> 0:20:38.639 a nuclear weapon. But we've seen throughout this conflict, you know, 0:20:38.640 --> 0:20:41.560 as Bill was saying earlier, Russia has said repeatedly or 0:20:41.720 --> 0:20:46.000 quite quite regularly throughout this raise the prospect of using 0:20:46.240 --> 0:20:49.600 nuclear weapons at each step of the escalation it says 0:20:49.600 --> 0:20:52.600 that comes from Ukraine or others, the use of certain 0:20:52.640 --> 0:20:55.000 types of weapons or something. They say, well, we could 0:20:55.040 --> 0:20:59.360 possibly use nuclear weapons in response, and obviously that's not happened. 0:20:59.440 --> 0:21:02.280 So how much of it is saber rattling, you know, 0:21:02.400 --> 0:21:06.639 obviously remains to be seen. But certainly it gives them, 0:21:06.640 --> 0:21:10.320 at least on paper, some further parameters for which they 0:21:10.359 --> 0:21:12.440 could use nuclear weapons, and. 0:21:12.400 --> 0:21:15.280 It remains to be seen. I suppose Bill, how NATO 0:21:15.359 --> 0:21:19.520 could react, how the incoming Trump administration could react to 0:21:19.600 --> 0:21:23.239 this as well, with this transition under way. But what 0:21:23.359 --> 0:21:28.480 can we sort of glean from how NATO has been 0:21:28.600 --> 0:21:32.240 preparing for this kind of change and trying to show 0:21:32.240 --> 0:21:36.840 continued support for Ukraine. How NATO could respond to this 0:21:37.000 --> 0:21:40.080 shift in the Russian nuclear doctrine. 0:21:40.760 --> 0:21:43.280 Well, I think, you know, some of the starting to 0:21:43.320 --> 0:21:47.439 be potentially conflicting messages we're getting here. You have the 0:21:47.560 --> 0:21:50.400 US saying it's basically the Biden administration is saying they 0:21:50.480 --> 0:21:53.840 basically want to shovel all the money and weapons that 0:21:53.880 --> 0:21:57.560 they've promised Ukraine out the door, get them in Ukraine 0:21:57.680 --> 0:22:02.680 before Donald Trump takes office on January twentieth. And then 0:22:02.720 --> 0:22:05.520 you have some messaging from Europe now about you know 0:22:05.840 --> 0:22:09.639 a little bit of pressure coming from European leaders from 0:22:09.720 --> 0:22:13.160 NATO leaders about you know, where is this headed and 0:22:13.320 --> 0:22:17.320 can we start to see the outlines of some kind 0:22:17.359 --> 0:22:19.679 of a truce or a de escalation. Here you have 0:22:20.080 --> 0:22:25.480 President Erdowan airing some details about his peace or truce proposal, 0:22:26.680 --> 0:22:28.520 and you have this, you know, this call the other 0:22:28.600 --> 0:22:32.359 day between German Chancellor Olaf Schultz and Vladimir Putin is 0:22:32.400 --> 0:22:36.080 the first real communication at that level in about two years. 0:22:36.119 --> 0:22:39.359 So I think there's a lot of nervousness in Europe 0:22:39.440 --> 0:22:43.000 about what could be coming in the year ahead. Frankly, 0:22:43.040 --> 0:22:45.440 President Zelensky has said he'd like to see this come 0:22:45.480 --> 0:22:49.160 to a conclusion in the coming year. But I do think, 0:22:49.320 --> 0:22:52.960 you know, January twentieth is looming very large in everyone's 0:22:53.000 --> 0:22:55.960 minds at this point. Whether you're in Moscow, whether you're 0:22:56.000 --> 0:22:58.520 in Brussels or anywhere else, or whether you're in Kiev. 0:22:59.359 --> 0:23:04.480 That is that's the day that really thinks US policy 0:23:04.560 --> 0:23:08.359 could very quickly change. You could see a rapid diminishment 0:23:08.359 --> 0:23:12.479 of support from Washington, and that will start to have 0:23:12.560 --> 0:23:15.120 a very quick impact on the ground. I don't think 0:23:15.119 --> 0:23:18.440 anyone expects Europe to make up the entirety of America 0:23:18.520 --> 0:23:20.840 backing away from this, if that's indeed what happens. 0:23:22.240 --> 0:23:25.199 This is Bloomberg day Break, your morning podcast on the 0:23:25.240 --> 0:23:28.760 stories making news from Wall Street to Washington and beyond. 0:23:29.000 --> 0:23:31.400 Look for us on your podcast feed by six am 0:23:31.440 --> 0:23:34.840 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:23:35.080 --> 0:23:37.920 You can also listen live each morning starting at five 0:23:37.960 --> 0:23:40.680 am Wall Street Time on Bloomberg eleven three to zero 0:23:40.680 --> 0:23:43.560 in New York, Bloomberg in ninety nine to one in Washington, 0:23:43.640 --> 0:23:47.560 Bloomberg ninety two nine in Boston, and nationwide on serious 0:23:47.800 --> 0:23:49.560 XM Channel one twenty one. 0:23:49.760 --> 0:23:50.080 Plus. 0:23:50.080 --> 0:23:52.680 Listen coast to coast on the Bloomberg Business App now 0:23:52.720 --> 0:23:55.320 with Apple CarPlay and Android Atuto interfaces. 0:23:55.560 --> 0:23:58.560 And don't forget to subscribe to Bloomberg News Now. 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