ACA Subsidies Set to Expire; Russia and Ukraine Trade Strikes on Black Sea Ports

Bloomberg Audio Studios, Podcasts, radio News.
Good morning, I'm John Tucker and I'm Karen Moscow. Here
are the stories we're following today.
And Karen, we're going to have more in the market
since we close out twenty twenty five in just a minute.
But first, the covid Era subsidies that help Americans pay
for Obamacare health plans expire today. It's going to result
in more than twenty million Americans paying higher premiums next month.
Now.
Democrats have trying to extend the additional support beyond the
December deadline, but Republicans of balk citing the cost of
some three hundred and fifty billion dollars over the next decade,
let's get more from Bloomberg opinion columnists go to Macunda.
If premiums skyrocket the way that it looks they are doing,
and it looks like they're going to that is a
political disaster for the Republican Party, which owns the issue.
In that way, they're asking Democrats, but to fix it,
almost all the votes will be Democrats. The policy incentives
which are to fix the problem, and the political incentives
which are for Democrats to say, hey, guys, congratulations like
you own this. Those running completely opposite directions, and the
closer we get to the midterms, the more the political
incentives are going to swamp the policy ones and Boe.
Of their opinions. Gouda Mkunda. Meantime, a handful of House
Republicans they have joined Democrats and a maneuver that will
put a three year extension of these subsidies to a
vote next month.
Let's head overseas now, John, where Russia and Ukraine struck
each other's black seaports overnight, damaging infrastructure including an oil
refinery Delida. Salvo comes after Russian President Vladimir Putin said
he would revise his country's negotiating position to end the war,
claiming Ukrainian drones targeted his residence. Former US Ambassador to Ukraine,
Stephen Piper says the Russian president is attempting to stall
peace plans.
Putin is clearly trying to derail the progress that appears
to be being made in conversations between Americans, Ukrainians, and Europeans,
and it's unfortunate that President Trump took Putin's word at
face value.
Former US Ambassador Stephen pie for Russia invaded Ukraine in
twenty twenty two.
And let's turn to the latest developments in the Mid East.
Israeli Prime Minister netna who says Iran should he need
President Trump's warning about not restarting its nuclear program. Netnya,
who spoke yesterday with Fox News.
As far as the nuclear program, I think they're trying
to do it. I'm not sure they've decided to cross
the line because because I think they heed President Trump's warnings,
and also because they've just experienced something, you know, less
than a year ago. They saw what it what it entails,
and they have to choose. Look, we don't seek escalation.
I hope they don't.
Israeli Prime Minister Benjaminetya, who also says he is aligned
with President Trump on wanting to give the new Syrian
government a.
Chance, and Asia John President Chieshin Ping said Shino to
meet its economic targets for twenty twenty five, with growth
expected to reach about five percent. Addressing the country's top
political advisory body on New Year's Eve, she said the
economy has demonstrated resilience despite challenges.
Yeah, let's turn to the markets, where twenty twenty five
has been another profitable one for the bulls stocks ending
a third year at double digit gains. In fact, global
stocks poised for their biggest annual gain in six years.
Lonzo Munyas is the chief investment officer at Hamilton Capital Partners.
I think we have to be seguin about the fact
that there may be some volatility next year. We have
some big catalysts that we're looking forward to, like FED policy,
fed ray cuts. Maybe we're looking at the Supreme Court
and what they do with tariffs. I think that's a
big deal, and so I think we're going to be,
you know, really open to next year. We're keeping a
little bit of cash on hand, but we're going to
stay on the AI trade. I think that's what we're
going to do going into next year.
Hamilton Partners, Alonzo Bunyaz. So far this year, the MSCI
All Country World Index, that's one of the broadest measures
of the equity market, that's gained twenty one one percent.
Well, it's also been a good run in twenty twenty
five for precious metals, john although they are ending the
year on a whimper. Silver is down about five and
a half percent today, and we get more and the
reasons behind the move with Bloomberg Markets reporter Valerie title.
Interesting, we had another margin requirement hike from the CME,
which I think is taking again those leverage speculators out
of the market, and that's why we're seeing silver plummet
again today. They do this on the back of very
volatile trading days to make sure that everyone trading does
have enough margin enough to post against their wins and
their losses. So not unusual to see this from the
CME that they do this twice in the row on
the back of all of this volatility in the silver market,
but it is definitely taking some speculators out of the space.
And Bloomberg Markets reporter Valerie Titele says, despite today's losses,
silver is up more than one hundred and forty five
percent this year. Gold, which is also lower TI today,
is at more than fifty percent in twenty twenty five,
and oil is.
Heading for its steepest annual loss since the start of
the pandemic in twenty twenty. Crew tos slump this year
as supplies swelled from OPEC plants and its rivals, what
demand growth slowed oil, which is down eighteen percent this year.
Right now, let's do WTI American Crew fifty seven to
ninety nine at barrel. That's up just three cents a barrel.
This morning, Well, John, we have new developments this morning
and the takeover battle for Warner Brothers Discovery. Bloomberg News
has learned the media company is planning to reject a
takeover bid from Paramount after the company amanded the terms
of its offer. Paramount went public with its thirty dollars
a share cash bid earlier this month, three days after
Warner had accepted a deal with Netflix. Bloomberg's Lucas Shaw says,
the deal will come down to the numbers.
Money's the biggest thing they know. The Paramount offer and
the Netflix offer are fairly comparable. A lot of it
depends on how much of value you assigned to the
cable networks Warner brother zones that's CNNTNT among many others.
Warner Brothers things starre worth more than Paramount, hence the disagreement.
Bloombergs Lucas Shaw says since its initial bid, Paramount has
amended its offer twice, most recently by including an assurance
from billionaire Larry Ellison that he would personally guarantee over
forty billion dollars in equity financing and other commitments.
And let's turn through the economy. This where the latest
Fed mini show officials saw additional rate cuts appropriate so
long as inflation declines over time. The minutes of the
December meeting pointed to the difficulty that policymakers faced in
their most recent decision, which modestly reinforces expectations the Fed
will hold rates unchanged when they meet again in January.
Well, John, those Fed officials and investors, We'll get one
final piece of key data as we close out the year.
This morning, we get weekly jobless claims, and Bloomberg's Tom
Busby has a preview.
The holidays are always a volatile time per unemployment claims,
and after the number of Americans filing first time applications
for jobless benefits unexpectedly declined for the previous two weeks
in a row, that is expected to change. Bloomberg consensus
calls for two hundred and nineteen thousand initial claims last week,
up by five thousand from the week prior, still though
in an historically low range. Tom Buzzby Bloomberg Radio.
Time Now for a look at some of the other
stories making news in New York and around the world.
And for that we're joined by Bloomberg's Michael Barr Michael,
good Morning.
Good morning, Karen. New York City officials are getting ready
to welcome people to Times Square to watch the ball
drop to ring in the new year. Officials want to
make sure the event is safe and celebratory. Police Commissioner
Jessica Tish explains an additional layer of security.
And once inside a viewing area, there will be no
re entry and they may be subject to re screening.
Over a million people are expected to watch the new
sparkly ball drop to welcome twenty twenty six. Immigration officials
do not plan to detain Kilmar Abrego Garcia again as
long as the judge's order banning it stands. That's according
to a court filing from the US government, the salvador
and migrant in his fighting to remain in the US
after a mistaken deportation to his home country, where he
was imprisoned. Yesterday, a newly unsealed order in the criminal
case against Abrago Garcia revealed that high level Justice Department
officials pushed for his indictment, including Acting US Attorney for
Middle Tennessee Robert McGuire. Tatiana Slosburg, one of three grandchildren
of the late President John F. Kennedy, has died after
a battle with leukemia. It was just last month that
Schlosberg revealed in a New Yorker essay that she had
terminal cancer. Schlosburg, the daughter of Caroline Kennedy, was thirty five.
A surge of Arctic air brought strong winds, heavy snow,
and frigid temperatures to the Great Lakes and Northeast a
day after a bomb cyclone that hit the northern US,
and we're learning how strong the wind was in western
New York. Those wind gusts, blowing at over seventy miles
per hour, actually lifted seventy one year old Diane Miller
off her feet. Miller, who lives off the shore of
Lake Heree, had grasped the door handle of her daughter's
Lackawana home on her way in, but was pulled off
the wind.
Gus must have popt the screen door and then I
went into the bushes and onto the ground.
Fortunately she's okay. Global News twenty four hours a day
and whenever you want it with the Bloomberg News Now,
Michael Barr and this is Bloomberg. Karen.
Thanks Michael. Time now for our Bloomberg Sports update, and
for that we bring in Dan Schwartzman.
Patriots star receivers to Potten.
Diggs is facing a felony charges trangulation as well as
a misdemeanor charge of assault for an incident that allegedly
occurred back on December second. Diggs will be arranged on
January twenty third, which is the Friday before the AFC
Championship Game. Meanwhile, Diggs's brother, Cowboys two TI I'm Pro
Bowl cornerback Trayvon Diggs, was released by Dallas for what's
being called a culmination of issues. The quarterfinals of the
college football playoffs getting underway as the two seed Ohio
State battles to ten seed Miami and the Good of
Your Cotton Bolt Classic in Arlington, Texas. Light schedule in
the NBA, the Celtics knocking off the Jazz one twenty
nine to one nineteen. The seventy six ers is getting
past the Grizzlies in overtime one thirty nine to one
thirty six. Piston's dominating the Lakers in LA one twenty
eight twenty oh six, while the Clippers beat up on
the Kings one thirty one to ninety. That's your Bloomberg
Sports Update.
Stay with us. More from Bloomberg day Break coming up
after this.
Coast 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.
Dad is now five thirteen in the hob Wall Street Book.
Morning.
I'm John Tucker. These subsidies that help Americans pay for
Obamacare health plans, they expire today, going to result in
more than twenty million Americans paying higher premiums starting next month.
Just one of the stories we're following as twenty twenty
five comes to an end. And for a look back
what's ahead, how the political landscape will inform the investment landscape,
let's bring in Terry Haines, founder at panje at Policy.
Happy New Year to you, Terry. Thanks so much for
being with us and for being with us for the
entire year. For your insight from where you sit as
a political observer, Can you tell us what were the
big takeaways for the year and maybe what's next.
Good morning, John, and happy new year to you and
everybody on daybreak. Thank you for having me. You know,
I think the takeaways are that, overall over everything is
that there's been very strong direction from Washington that helps
markets understand exactly what the investment priorities are and where
things are likely to go, whether they be on what
I've been calling for some time, the Trump interdependence, foreign
economic policy that helps trade deals and all the rest,
the direction on tariffs, even the private sector response mobilizing,
mobilizing for geopolitical competition for years to come. I'm thinking
of the thing that Jamie Diamond's doing, kind of a
brains trust idea. All those things are positive from Washington
for markets, although there are some, of course, some negatives
as well.
Yeah, the major market averages, they ramp up with double
digit gains. I mean, we're on track, certainly. But as
one of our market guests this morning points out in
a note, most market participants come from the upper earning
end of the spectrum. How does that inform the politics
and trends from voters we may see in the month
and years they had, particularly the next generation.
Well, it depends on what kind of investors you're talking about.
You know, you talk to a lot of a lot
of members, a lot of members and senators approach markets
issues from the perspective that more than half of Americans,
well more than half of Americans are invested in the markets,
rely on markets for their retirement, you know, are kind
of basic. They're not the blue chip investors. They're they're
you know, kind of basic folks that are looking for
the markets to generate returns and provide them with additional
retirement security. So they they come at it from a
very much more mainstream perspective, and I've been I'm not
thinking about this as a Republican versus Democratic issue at all.
They look at it as a mainstream perspective, and they
want main for main streets benefit to make sure that
the markets remain healthy.
Now, as we mentioned, the subsidies are ending today, a
handful of House Republicans did join the Democrats. This is
a maneuver that will put the three year extension of
the subsidies to a vote for next month. Is this
one of the big issues for the midterms.
I think it is a big issue for the midterms,
But I also think people, you know, I think the
people drink political kool aid when they make this a
situation where it's about subsidies versus no subsidies. I think
what you're likely to see is a situation where, you know,
as you point out, subsidies expire starting tomorrow. But you
will see a lot of effort in the winter, in
maybe even into the spring to the battle between trying
to keep the subsidies in place versus replacing the subsidies
with some sort of alternative tax favored account, whether it
be an HSA, whether it be a you know, health
freedom account, as the President has talked about, you know,
and the Congress has got at least two by that
Apple one is at the end by the end of January,
when the government funding runs out and bipartisan consensus is
required to keep it going, so a solution could be there,
or in what's known as now being known as the
Big Beautiful Bill two dot oh, where that'll be an
all Republican tax solution that could include a different solution
as well.
This is Bloomberg Daybreak, your morning podcast on the stories
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