Markets Poised for Seven-Month Low; Trump & Mamdani to Meet Friday

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Good morning, I'm Nathan Hager and I'm Lisa Matteo. Here
are the top stories we're following today.
Lisa, we have some sobering facts for investors this morning.
Global stocks, including the S and P five hundred or
poised for their worst week in seven months. Concerns over
lofty valuations and artificial intelligence related companies are continuing to
weigh on market. Sloomberg's Valerie Titel has more on yesterday's
big turnaround.
We had a four percent slide in the Nasdaq in
an hour and forty minutes. I mean, you don't see
steep reversals like this very often. It was one of
the biggest inter day swings we've seen in the Nasdaq
since Covid, the second biggest since the price fluctuations we
saw back in April twenty twenty. We even saw stocks,
you know, obviously Nvidia, the reversal in video was eating that,
but we also saw big reversals in some other chip names.
Only twelve stocks in the NASDAC yesterday ended in the green.
The remainder were in the red.
Bloomberg's Valerie Titel says that huge reversal wiped away two
point seven trillion dollars from the S and P five hundred.
Well.
It was also quite a reversal for Nvidia yesterday, Nathan.
At one point, the chip giant was up five percent,
only to close a date more than three percent lower,
and one famed investor decided to scoop up shares. Kathy
Wood bought in Video yesterday for the first time since August.
Her Arc Innovation ETF bought more than ninety three thousand
shares on Thursday. Right now, and Video shares they're down
more than two and a half percent.
Well.
As dramatic as the selloff in stocks has been Lisa,
it has not been nearly as eye popping as the
plunge in crypto. Bitcoin has shed about twenty three percent
of its value this month. At one point, the token
slipped below the eighty two thousand level, and it's below
that this morning, down six percent. Right now, just shy
of eighty two institutions appear reluctant to buy the dip.
A group of a dozen US listed BIT twenty exchange
traded funds saw nine hundred and three million dollars in
net outflows yesterday That was the second largest single day
redemption since spot bitcoin ETF's debut in January of last year.
Well adding to the market anks this morning, Nathan persistent
uncertainty over whether the Fed will cut interest rates next month.
Right now, traders pricing in a thirty percent chance. Treasury
Secretary Scott Besson said the Fed should keep cutting.
I think there are a lot of signals coming from
the Fed, and some of them are very confusing. They
said that they don't have data, and traditionally, if you
don't have data, if you're flying blind. They've cut twice,
and they said that their insurance cuts, so I would
have thought that they would want to take out a
third cut. We don't know where things are. We've been cutting,
and we should finish the cutting cycle.
Made the comments on Fox Business. Meanwhile, Philadelphia Fed President
Anna Paulson says she's taking a measured approach to the
next policy gathering.
I am approaching the December FMC meeting cautiously.
On the margin.
I'm sot a little more worried about the labor market
than I am about inflation, but I expect to learn
a lot between now and the December meeting.
Philadelphia Fed President Anna pauls And made the remarks at
the Reserve Bank's eightieth annual field meeting Capstone in Philadelphia,
and Fed Governor Michael Barr says the Central Bank needs
to proceed with caution in considering additional interest rate cuts
due to inflation still around three percent.
In Asia, Lisa Japan has approved its biggest round of
extra spending since the pandemic. The total package is valued
at more than one hundred and seventeen billion dollars. It
has measures aimed at price relief, including cutting the gasoline
tax and raising the tax free income threshold.
While we now turn to politics, President Trump will host
New York City Mayor elect Zorim Mumdani at the White House,
even though the President incorrectly refers to him as a communist.
Bloomberg's Amy Morris reports from Washington.
Mom Donnie has an agenda for his long awaited meeting
with President Trump.
I have many disagreements with the President, and I believe
that we should be relentless and pursue all avenues and
all meetings that could make our city affordable for every
single New York.
New York Republican Congressman Andrew Garbarino tells balance of power.
The President needs to flex his muscle.
I hope the President makes clear to the mayor that
his past anti police rnderick he can't act this way
as mayor, and if he does anything that makes New
York less safe, the President has my support in doing
what he needs to do and making sure it stay safe.
The meeting comes after the Trump administration reviewed canceling or
suspending funds that benefit New York City. In Washington, Amy
Moore as Bloomberg Radio.
Amy Thanks, turn to another political story getting attention in Washington.
President Trump is calling for sedition trials for a group
of Democratic lawmakers who posted this video online right now.
The threats to our constitution aren't just coming from but
from right here at home.
Our laws are clear, you can refuse illegal orders.
The video is organized by Michigan senator and former CIA
analyst Alyssa Slotkin. The other Democrats are also former military
and intelligence officers. In a series of social media posts,
President Trump said the lawmakers should be arrested and put
on trial. In one post, he called it seditious behavior
punishable by death. That's drawing an angry reaction from House
Minority leader Hakim jeffries.
We had patriotic members of the House and the Senate
have their lives threatened by Donald Trump in the most unhinged, unacceptable, unconscionable,
and Unamerican way.
Minority Leader Hakim Jeffrey says he's discussed lawmaker's security with
the House Sergeant at Arms and Capitol Police after the
President's posts. House Speaker Mike Johnson is defending the president.
Sometimes he uses heated rhetoric.
Okay, but do any of you agree that that's appropriate
that they should be telling young members of the military
to defy orders.
You should think about the implications of that. The President's
trying to make up.
I think he made the point, and Speaker Mike Johnson
says members of Congress should not be telling troops to
disobey orders.
Well now to the latest on efforts to end the
war in Ukrainian President Vladimir Zelenski is under pressure to
accept a peace plan floated by US and Russian Voice.
The twenty eight point proposal would force Ukraine to surrender
large portions of its east to Russia, cap the size
of its military, lift sanctions on Moscow overtime, and give
up any hopes of NATO membership. Zelensky says he'll discuss
the plan with President Trump in coming days.
Vusim Ukraine needs peace and Ukraine will do everything to
ensure that no one in the world can say that
we are undermining diplomacy.
This is important, Zelenski.
He spoke through an interpreter after meeting with Pentagon officials
in Kiev. We get more from Bloomberg's Oliver Crook and Brussels.
This is sort of Zelenzi's approach ever since that catastrophic
meeting in the Oval Office back in February, when Trump says,
Zelenski says, basically how high he has learned from that
meeting in the most difficult possible way. That you never
want to be perceived to be the impediment to piece
or the impediment to an American plan.
Bloomberg's Oliver Crook reports President Zelensky plans to discuss the
peace proposal today with leaders of the European Union, Germany, France,
and the UK.
Back on Wall Street, Lisa, the stage is set for
one of Hollywood's biggest companies to be sold. Sources tell
Bloomberg that Netflix, Comcast, and Paramount sky Dance all submitted
bids for Warner Brothers Discovery, the parent of HBO, CNN,
and the Warner Brothers movie and TV studios. Comcast and
Netflix are most interested in the film and TV library.
Paramount is willing to buy the whole company. The Warners
board is expected to make its final decision by Christmas.
And changes in the c suite at City Group, Mark
Mason is stepping down as chief financial officer as a
bank revamps it's leadership ranks under a new structure. Mason
will be replaced by Gonzala Lucetti, who will take over
that role early next year. Now for a look at
some of the other stories making news in New York
around the world.
For that, we're joined by Bloomberg's Michael Bark.
Good morning, Michael, Good Morning, Lisa. A federal judge says
she'll rule soon on whether to order the release of
Kilmar Abrego Garcia from immigration custody. The Maryland man was
mistakenly deported to l Salvador in March. Since he returned
in June, the government has been trying to deport him
to one of several African nations. Meanwhile, Costa Rica has
given a Brego Garcia a guarantee of acceptance at Brego.
Garcia's attorney Simon Sandeval Mosenberg.
And so we're very, very hopeful that we will win
a release from detention. And then what comes after that,
I guess we'll all have to see.
The Justice Department is examining the handling of the mortgage
fraud investigation into Senator Adam Schiff, including potential involvement of
people claiming to be acting at the behest of two
Trump administration officials. Federal authorities interviewed a Republican congressional candidate
who promoted mortgage fraud allegations against the California Democrat. They
are said to have questioned her about communications with DOJ
official Ed Martin and Federal Housing Finance Agency Director Bill Pulty.
Senate Republicans rejected a Democratic attempt to pass bill that
allows senators to sue the government if their phone records
are obtained without being notified. The repeal passed unanimously in
the House. The issue stems from Special Consul Jack Smith's
investigation into any efforts to overturn the twenty twenty election.
Democratic Senator Martin Hunrich said the provision means senators can
pocket millions of dollars while Americans are struggling.
Even how Speaker Mike Johnson agrees with me.
And when Speaker Johnson and I agree, something is bad,
you know it's really really bad.
But Senator Lindsey Graham says, it's about making sure no
one can access personal phone records of senators without notice.
Ever, again, this was coordinated with people in the Senate
in This wasn't an intempt to enrich anybody who was
intempt to deter what was wrong.
In my viewe never happened.
Again, Senator Graham says he intends to sue Global News
twenty four hours a day and whenever you wanted with
Bloomberg News. Now, Michael barn, this is Bloomberg, Lisa.
Thanks Michael.
Time now for our Bloomberg Sports update, and for that
we bring in John stash Hour.
Week twelve underway with an AFC battle in Houston. In
a big performance by the Texans defense, they intercepted Buffalo
KB Josh Allen twice, including one of the final minute.
They sacked him eight times. Houston beat the Bills twenty
three to nineteen NBA and Milwaukee Philadelphia won in overtime
for the Sixers Tyrese Maxia career high fifty four points
NHL in Montreal, Washington won eight to four, the thirty
third career hat trick for Alex Ovechkin.
That's a Bloomberg Sports update.
Stay with us.
More from Bloomberg Daybreak coming up after.
This to coast on Bloomberg Radio nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app.
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
Worries about AI valuations maybe taking hold for markets. Even
after Nvidia's earnings kept them at bay for a few hours,
global stocks are now on track for their worst week
since April. Salmon Achmed is global head of Strategic Asset
Allocation at Fidelity International.
AI is a powerful technology.
This team is not going anywhere, so I think at
this stage we are taking it as a model positioning.
You know, change and our month US remains the same.
Do I survive?
It was Fidelity strategist Salmon Akmed joining us now as
Bloomberg Markets reporter Valerie Titel. A bit of a calming message, Valerie,
But calm seems to be anything but what this market
feels like right now?
Good morning, Hey, Good morning, Nathan.
Yes, NASAC futures have erased their earlier gains from the
European session. We're now trading at session lows, and we're
keeping an eye on Bitcoin. We've just broken through eighty
two thousand as we speak, down six percent on the cryptocurrency.
It was really crypto and the move in Nvidia yesterday
which drove the biggest, one of the biggest swings in
the NASDAC I have seen in my career. We dropped
nearly four percent in yesterday session in an hour and
forty minutes, Nathan. A kind of interday swing like that
doesn't come around often and it probably puts some hair
on some trader's chest.
Yesterday, huge u turn.
In the market, sparked by what we are unsure, and
that is what is unerving investors on this Friday.
Might I add to all.
Of this that this is a head of the Thanksgiving week,
which is known historically to be quite in a liquid
week of trading. Perhaps those investors who were maybe sitting
on the sidelines or might be choosing this Friday afternoon.
To de risk ahead of the holiday.
But we are seeing shares of Nvidia drop two and
a half percent in pre market trade micro Strategy one
of those Bitcoin holders down five percent and shares of
Bitcoin dropping six percent below eighty two thousand as we speak.
Is this just a concern around AI valuations or our
concerns about what the FED could do next month feeding
into this as well?
You know, I mean I like to as someone who
comes from a fixed income background, I do believe the
FED is always instrumental in moves like this. We have
had a hawkish round of FED speak in the last
three weeks, and essentially what we got from that employment
report yesterday didn't necessarily help. Yes, it was delayed, it
was September's data, but again it plays into the hands
of the hawks that might want to argue that the
labor market has found some ground. There was a big
beat over the headline number coming at one hundred and
nineteen k versus estimates of fifty one. And we did
have some hawkish fedspeak yesterday as well, heard from Goulesby
saying he's essentially uneasy, uneasy about cutting in December bar
focusing on inflation concerns. So perhaps the weight of tilt
when it comes to Federal Reserve is to stay on
hold in December, and that is essentially not something that
the equity market can hang its hat on on this
Friday evening, our Friday session where we did look like
we were trying to bounce, but now NAZAC futures are
down eight tens of one percent.
In our last thirty seconds. You mentioned the sellof in
bitcoin eighty two thousand. Is there a further support level
for bitcoin?
Look, eighty thousand was one talked about, but look, it
is really hard to nail down the technical factors here
a bitcoin. One superlative I do have for you, Nathan
is we've had eleven straight days of lower lows for
the cryptocurrency and that is something we have not seen
in its history.
So momentum is on a back foot.
These retail traders are underwater on their ETF holdings.
Who knows how far bitcoin can go.
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