Tensions Rise in Red Sea; Apple Races to Fix SmartWatch

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 --> 0:00:09.360 stories we're following today. First, the latest from the Middle East. 0:00:09.480 --> 0:00:11.879 Shipping through the Red Sea has ground to a halt, 0:00:11.960 --> 0:00:14.920 with oil tankers and cargo vessels coming under greater attack 0:00:14.920 --> 0:00:18.360 from Houthi militants in Yemen. Now, the US is setting 0:00:18.440 --> 0:00:20.759 up a new task force to protect vessels in that 0:00:20.880 --> 0:00:24.160 vital shipping lane. Defense Secretary Lloyd Austin announced the effort 0:00:24.160 --> 0:00:25.680 in a speech to troops in Bahrain. 0:00:26.400 --> 0:00:30.920 These attacks are reckless, dangerous, and they violate international law, 0:00:31.240 --> 0:00:34.920 and so we're taking action to build an international coalition 0:00:35.080 --> 0:00:37.559 to address this threat. And I would remind you that 0:00:37.640 --> 0:00:41.879 this is not just a US issue. This is an 0:00:41.920 --> 0:00:45.760 international problem and it deserves an international response. 0:00:45.920 --> 0:00:49.120 And Defense Secretary Lloyd Austin says that international response is 0:00:49.159 --> 0:00:53.280 called Operation Prosperity Guardian includes nearly a dozen other nations. 0:00:53.479 --> 0:00:56.440 Oil giants BP and Equinor are the latest to pause 0:00:56.480 --> 0:00:58.800 shipping through the Red Sea due to the Hoothy attacks. 0:00:59.360 --> 0:01:02.440 Well, Nathan votes on aid to both Israel and Ukraine 0:01:02.480 --> 0:01:05.400 may have to wait until next year after Senate Republicans 0:01:05.440 --> 0:01:08.280 close the door on a quick deal on border security, 0:01:08.280 --> 0:01:11.120 and Bloomberg's Amy Morris has the details from Washington. 0:01:11.360 --> 0:01:14.160 Senate Majority leader Chuck Schumer had said a vote could 0:01:14.160 --> 0:01:17.200 come this week, but John Thune, the number two Senate Republican, 0:01:17.480 --> 0:01:20.720 says negotiators were not able to resolve sticking points during 0:01:20.760 --> 0:01:22.880 talks over the weekend and that a vote on the 0:01:22.880 --> 0:01:25.920 border deal is quote not going to happen now. While 0:01:25.920 --> 0:01:28.480 it's possible the parties can reach a deal in principle 0:01:28.560 --> 0:01:30.760 by the end of this week, that only tees up 0:01:30.800 --> 0:01:33.319 votes on the legislation by the first or second week 0:01:33.440 --> 0:01:36.280 of January. The Pentagon has said it will run out 0:01:36.319 --> 0:01:39.360 of money to replace US weapons sent to Ukraine unless 0:01:39.360 --> 0:01:43.560 Congress approves new funding before December thirtieth. In Washington, Amy Morris, 0:01:43.560 --> 0:01:44.680 Bloomberg Radio. 0:01:44.520 --> 0:01:47.240 All right, Amy, thank you. Elsewhere in geopolitics, the US 0:01:47.319 --> 0:01:50.360 is extending a truce with the European Union on steel 0:01:50.400 --> 0:01:52.720 and aluminum imports. Let's go to London and get the 0:01:52.800 --> 0:01:54.520 latest one that from Bloomberg's Un Potts. 0:01:54.520 --> 0:01:57.600 Good morning, Ewan, Nathan and Amy. The European Commission is 0:01:57.640 --> 0:02:01.000 to suspend RATTACH remeasures implemented during the Trump presidency for 0:02:01.040 --> 0:02:04.680 the next fifteen months. The truce on steel and aluminum 0:02:04.720 --> 0:02:07.440 imports avoids a possible return of billions of dollars of 0:02:07.480 --> 0:02:11.120 tariffs on trade across the Atlantic, but the EU says 0:02:11.200 --> 0:02:15.080 it has not convinced Washington to improve its current quota system. 0:02:15.280 --> 0:02:18.120 Today's announcement comes as the clock ticks on negotiations for 0:02:18.160 --> 0:02:20.960 a permanent deal on trade in metals. In London, I'm 0:02:20.919 --> 0:02:22.440 your imports, Bloomberg Radio. 0:02:22.520 --> 0:02:24.720 Sright you and thank you. In Asia, the yen is 0:02:24.800 --> 0:02:27.359 slumping after the Bank of Japan stuck with the world's 0:02:27.520 --> 0:02:30.240 last and negative interest rate and left its policy rate 0:02:30.320 --> 0:02:33.480 unchanged and appeared in no hurry to remove its negative 0:02:33.560 --> 0:02:36.840 rate regime. Checking the en right now weaker against the 0:02:36.880 --> 0:02:39.400 dollar at one forty four point five to four. 0:02:39.919 --> 0:02:42.880 Nice for the US Central Bank Karen More. Fed officials 0:02:42.880 --> 0:02:45.920 are pushing back at market expectations for rate cuts. Three 0:02:46.040 --> 0:02:49.040 more voting members of the Fed's Policy Setting Committee are 0:02:49.080 --> 0:02:52.079 suggesting the talk of decreases in early twenty twenty four 0:02:52.240 --> 0:02:55.560 is premature. Bloomberg Opinion columnist and former New York Fed 0:02:55.560 --> 0:02:58.680 President Bill Dudley says there's a risk the market is wrong. 0:02:59.080 --> 0:03:01.079 The market may begin a little bit ahead of itself. 0:03:01.400 --> 0:03:03.640 This is how Paul thinks the world is going to evolve. 0:03:04.280 --> 0:03:06.320 Paul thinks the face to be cutting rates in twenty 0:03:06.360 --> 0:03:08.640 twenty four. But it's possible that the comic could be 0:03:08.639 --> 0:03:10.760 firmer for longer, inflation could be more stubborn, and the 0:03:10.840 --> 0:03:13.040 rate cuts might not actually turn out to materialist. 0:03:13.160 --> 0:03:16.240 For those words from Bill Dudley, Commas policymakers Lorettamester and 0:03:16.360 --> 0:03:19.080 Mary Daily said in separate interviews that markets were vetting 0:03:19.120 --> 0:03:20.239 on a pivot too early. 0:03:20.760 --> 0:03:23.520 Well in corporate news now, Nathan Apple is racing around 0:03:23.560 --> 0:03:26.679 the clock to implement a workaround after a patent dispute 0:03:26.720 --> 0:03:29.600 forced it to band sales of its latest smart watches 0:03:29.600 --> 0:03:32.680 in the US ahead of Christmas. The rescue mission for 0:03:32.800 --> 0:03:36.440 its seventeen billion dollar business comes after medical device maker 0:03:36.520 --> 0:03:41.360 Mausimo argued a blood oxygen sensor on the watch infringes 0:03:41.440 --> 0:03:45.480 its patents. Gene Munster, managing partner at deep Water Asset Management, 0:03:45.520 --> 0:03:47.240 says it's a major blow to Apple. 0:03:47.680 --> 0:03:50.960 Five percent of their total revenue comes from watch. It's 0:03:51.000 --> 0:03:54.480 growing at call it ten to fifteen percent year every year, 0:03:54.960 --> 0:03:57.360 which is much faster than the iPhone, which is basically 0:03:57.520 --> 0:04:00.840 flatish year on year and most important only as watch 0:04:00.920 --> 0:04:05.520 is kind of central to Apple's health and wellness initiatives. 0:04:05.520 --> 0:04:09.200 This device in innovating around the watch like this oxygen 0:04:09.320 --> 0:04:11.160 sensor is an important part of that story. 0:04:11.600 --> 0:04:14.760 Gene Munster says Apple plans to stop selling the prohibited 0:04:14.800 --> 0:04:16.880 watches on its website on Thursday. 0:04:17.040 --> 0:04:20.400 Well, Karen, another tech heavyweight is in the spotlight. Alphabet 0:04:20.440 --> 0:04:24.760 has agreed to resolve antitrust complaints from about three dozen states. 0:04:24.880 --> 0:04:27.160 We get that story from Bloomberg's Jeff Bellinger. 0:04:27.640 --> 0:04:31.279 The technology company will pay seven hundred million dollars and 0:04:31.440 --> 0:04:34.880 make changes to its Google Play policies. The changes will 0:04:34.920 --> 0:04:38.960 be designed to reduce barriers to competition among app distributors 0:04:39.000 --> 0:04:42.719 and payment processors. The state ags had accused Google of 0:04:42.839 --> 0:04:46.880 using anti competitive tactics that left developers no choice but 0:04:47.000 --> 0:04:49.640 to go through the Google Play Store to reach users. 0:04:50.000 --> 0:04:53.560 A tentative settlement was reached back in September. The latest 0:04:53.600 --> 0:04:57.240 filing says all fifty states have now joined the agreement. 0:04:57.640 --> 0:05:00.960 Jeff Bellinger, Bloomberg Radio, Jeff, thank you well. 0:05:00.960 --> 0:05:04.640 Bloomberg News has learned billionaire Carl Icon plans to launch 0:05:04.640 --> 0:05:07.719 a new proxy fight to take control of Aluminus board. 0:05:08.000 --> 0:05:11.680 That's after the company terminated at seven billion dollar acquisition 0:05:11.800 --> 0:05:15.200 of Grail. We get the story from Bloomberg's Charlie Pellett. 0:05:15.320 --> 0:05:18.800 Sources say Icon believes the board should be held accountable 0:05:18.960 --> 0:05:23.560 for pursuing an ill advised transaction. They say Icon could 0:05:23.640 --> 0:05:28.040 nominate as many as seven candidates for the currently eleven 0:05:28.240 --> 0:05:31.560 member board. The sources say voting on nominees would take 0:05:31.560 --> 0:05:35.719 place at next year's annual general meeting. Icon criticized a 0:05:35.760 --> 0:05:38.839 Luminus board in a letter after the announcement of the 0:05:39.000 --> 0:05:43.920 Grail divestiture plan in New York. Charlie Pellett Bloomberg Radio. 0:05:43.839 --> 0:05:46.239 More global headlines in a check of sports. Up next, 0:05:46.240 --> 0:05:48.160 you're listening to Bloomberg Daybreak. 0:05:51.440 --> 0:05:53.280 All right, Nathan, Thanks, it's time now for a look 0:05:53.320 --> 0:05:55.719 at some of the other stories making news around the world. 0:05:55.720 --> 0:05:57.960 And for that we're joined by Bloomberg's Amy Morris. 0:05:58.040 --> 0:06:01.880 Amy, good morning, Good morning, and Vice President Kamala Harris 0:06:02.040 --> 0:06:04.719 is ready to kick off a contentious election year with 0:06:04.800 --> 0:06:08.520 a national tour focused on protecting abortion rights. Harris has 0:06:08.600 --> 0:06:11.200 largely been the face of the White House on abortion rights. 0:06:11.440 --> 0:06:14.680 This stretch of events begins in battleground state Wisconsin on 0:06:14.760 --> 0:06:18.320 January twenty second, that's the anniversary of Roe v. Wade. 0:06:18.480 --> 0:06:23.040 Critics say controversial border security legislation signed by Texas Governor 0:06:23.080 --> 0:06:27.200 Greg Abbott yesterday could lead to the mass arrests of migrants. 0:06:27.480 --> 0:06:29.839 The governor says the goal of Senate Bill four is 0:06:29.880 --> 0:06:32.320 to stop illegal entry into the US. 0:06:32.279 --> 0:06:36.560 For repeat offenders. That creates the offense of illegal re 0:06:36.839 --> 0:06:41.719 entry with a potential prison Senate's term of up to 0:06:41.760 --> 0:06:42.359 twenty years. 0:06:42.360 --> 0:06:46.159 The ACLU plans a lawsuit over the legislation. The judge 0:06:46.160 --> 0:06:49.159 in Donald Trump's New York civil fraud trial has denied 0:06:49.160 --> 0:06:52.760 the instant win that Trump was seeking. Bloomberg's Ed Baxter explains. 0:06:52.839 --> 0:06:56.440 In the denial, Justice Arthur Engern criticized that Trump defense 0:06:56.480 --> 0:07:00.200 and suggested the star witness was motivated by money. He 0:07:00.320 --> 0:07:04.039 said the motion ignored significant evidence of wrongdoing and rehashed 0:07:04.080 --> 0:07:07.200 old arguments, The justice saying the star witness proves that 0:07:07.279 --> 0:07:09.800 for a million dollars or so, some experts will say 0:07:09.800 --> 0:07:12.840 whatever you want them to say. New York professor Eli 0:07:12.880 --> 0:07:15.840 Bartoff was paid more than thirteen hundred dollars an hour 0:07:15.920 --> 0:07:18.040 for his work on the case. Totaling at least eight 0:07:18.160 --> 0:07:21.920 hundred and seventy seven five hundred dollars. Trump's Attartey say 0:07:21.960 --> 0:07:25.200 that justice ignored real facts for real participants in the 0:07:25.240 --> 0:07:30.200 real world. Closing Arguments, January eleventh, Ed Baxter, Bloomberg Radio. 0:07:30.280 --> 0:07:32.680 There remains some hesitancy about the COVID shot, but a 0:07:32.720 --> 0:07:35.280 new study show's parents are eager and willing to get 0:07:35.320 --> 0:07:38.920 their kids vaccinated against RSV. Doctor Simon Hayter at the 0:07:38.920 --> 0:07:41.320 School of Public Health at Texas A and M says 0:07:41.360 --> 0:07:45.520 it's because stories, rather showing the virus' effects, are all 0:07:45.560 --> 0:07:46.560 over social media. 0:07:46.640 --> 0:07:48.840 Every parent of a young child that's heard, I think 0:07:48.880 --> 0:07:52.240 a horror story of someone else's child getting really sick. 0:07:52.280 --> 0:07:55.200 Doctor Hayter's study found more than seventy percent of American 0:07:55.240 --> 0:07:58.600 parents planned to have their children vaccinated against RSV, but 0:07:58.680 --> 0:08:01.480 only forty percent tend to get their kids the COVID 0:08:01.480 --> 0:08:05.040 shot and the late Justice Sandrade O'Connor is set to 0:08:05.040 --> 0:08:07.960 be laid to rest today. The funeral for O'Connor will 0:08:08.000 --> 0:08:11.560 be held at Washington National Cathedral, where President Biden and 0:08:11.640 --> 0:08:14.800 Chief Justice John Roberts are scheduled to speak. She was 0:08:14.880 --> 0:08:17.720 honored at the Supreme Court yesterday, where she lighted Repose 0:08:18.000 --> 0:08:21.320 inside the building's Great Hall. Global news twenty four hours 0:08:21.320 --> 0:08:23.720 a day and whenever you want it with Bloomberg News Now. 0:08:24.040 --> 0:08:26.760 I'm Amy Morris and this is Bloomberg Karen right. 0:08:26.760 --> 0:08:28.520 Amy. Thanks. So we do bring you news throughout the 0:08:28.600 --> 0:08:31.720 day right here on Bloomberg Radio. But now you can 0:08:31.760 --> 0:08:34.520 get the latest news on demand, and that means whenever 0:08:34.679 --> 0:08:37.959 you want it. Just subscribe to Bloomberg and News Now 0:08:37.960 --> 0:08:40.520 to get the latest headlines at the click of a button. 0:08:40.880 --> 0:08:43.439 You can get informed on your schedule. You can listen 0:08:43.440 --> 0:08:46.600 and subscribe to Bloomberg and News Now on the Bloomberg 0:08:46.640 --> 0:08:50.600 Business app, Bloomberg dot Com, plus apples, Spotify, and anywhere 0:08:50.640 --> 0:08:57.560 else you get your podcasts. Time now for the Bloomberg 0:08:57.600 --> 0:09:00.640 Sports Update with John stash Hour John Carron. 0:09:00.679 --> 0:09:02.800 A couple of teams in need of victory last night. 0:09:02.840 --> 0:09:05.040 The Seahawks had lost four in a row to dropped 0:09:05.080 --> 0:09:07.880 under five under. The Eagles had lost their last two. 0:09:08.480 --> 0:09:11.160 Philly led ten to nothing, then seventeen ten in the 0:09:11.160 --> 0:09:14.120 fourth quarter with only twenty eight seconds remaining. A Drew 0:09:14.240 --> 0:09:16.959 Lock touchdown pass. He was playing for the injured Gito 0:09:17.040 --> 0:09:20.760 Smith twenty nine yards that Jason Smith and Jigba Seattle 0:09:20.800 --> 0:09:25.439 won twenty to seventeen. Jayden Daniels turning pro rather than 0:09:25.440 --> 0:09:27.400 returning for a final season at the LSU. He just 0:09:27.400 --> 0:09:29.640 won the Heisman Trophies. Expected to be a top draft pick. 0:09:29.679 --> 0:09:33.640 He also won't play in LSU's upcoming Bowl game in La. 0:09:33.760 --> 0:09:37.120 The Lakers hoisted a banner for winning the in season tournament, 0:09:37.200 --> 0:09:39.439 but since then they're one in three. Had an embarrassing 0:09:39.480 --> 0:09:42.160 loss to San Antonio, and they lost it home to 0:09:41.840 --> 0:09:44.880 the to the next one fourteen to one oh nine, 0:09:44.880 --> 0:09:47.680 and Lebron James in defeat twenty five points and his 0:09:47.800 --> 0:09:51.719 one hundred and ninth career triple double Wizard dropped a 0:09:51.880 --> 0:09:54.439 four and twenty two. They lost one forty three to 0:09:54.520 --> 0:09:57.680 one point thirty one at Sacramento. They're at least better 0:09:57.720 --> 0:10:00.040 than the Pistons, who have lost twenty four games in 0:10:00.120 --> 0:10:03.600 a row. They fell in Atlanta. Cade Cunningham did scored 0:10:03.679 --> 0:10:06.920 forty three points in the loss. Meanwhile, Minnesota tied with 0:10:07.000 --> 0:10:08.920 the Celtics with the best record in the NBA thirty 0:10:08.920 --> 0:10:12.960 two points for Anthony Edwards and a Timberwolves win in Miami. 0:10:13.080 --> 0:10:15.280 Eric Montross has passed away at the age of only 0:10:15.360 --> 0:10:18.760 fifty two. We got cancered just this past March. Help 0:10:18.840 --> 0:10:21.760 North Carolina with a national championship in nineteen ninety three. 0:10:22.160 --> 0:10:24.080 Was the ninth pick of the ninety four draft, blowing 0:10:24.080 --> 0:10:25.800 to the Celtics. Also played for the next and. 0:10:25.840 --> 0:10:27.199 Four years with the Pistons. 0:10:27.320 --> 0:10:29.040 John Stashiewer Bloomberg. 0:10:28.640 --> 0:10:35.440 Sports from coast to coast, from New York to San Francisco, 0:10:35.760 --> 0:10:40.840 Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business 0:10:40.840 --> 0:10:46.160 app in Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, 0:10:46.160 --> 0:10:47.120 I'm Nathan Hager. 0:10:47.240 --> 0:10:50.880 Israel's war with Hamas is proving difficult to keep contained 0:10:51.000 --> 0:10:54.080 to the Gaza Strip. Attacks on commercial vessels in the 0:10:54.120 --> 0:10:56.600 Red Sea now have shipping in that key supply line 0:10:56.600 --> 0:10:59.480 now essentially ground to a halt. A halt on new 0:10:59.520 --> 0:11:03.000 aid to Ukraine in the US and Europe now has 0:11:03.040 --> 0:11:05.160 the West grappling with an idea that would have been 0:11:05.240 --> 0:11:09.120 unthinkable just a few months ago. What if Russia wins 0:11:09.840 --> 0:11:12.840 difficult geopolitics all around, and here to discuss it with 0:11:12.920 --> 0:11:16.000 US as Julie Norman, co director of the Center on 0:11:16.160 --> 0:11:20.040 US Politics at University College, London. Julie, it's good to 0:11:20.120 --> 0:11:22.320 speak with you this morning. But as I mentioned, it 0:11:22.360 --> 0:11:25.480 is getting difficult in the Middle East and in the 0:11:25.720 --> 0:11:32.079 war in Ukraine. How is this response to increased attacks 0:11:32.480 --> 0:11:35.560 on the Red Sea going to make an impact? Do 0:11:35.640 --> 0:11:39.320 you see a task force being enough based on what's 0:11:39.320 --> 0:11:41.960 been happening with shipping in that region? 0:11:43.280 --> 0:11:43.559 Sure? 0:11:43.600 --> 0:11:45.920 Well, thanks Nathan. Well absolutely, you know, most eyes have 0:11:46.000 --> 0:11:48.400 rightly been on Gaza, but the rest of the region 0:11:48.400 --> 0:11:51.640 has certainly not been quiet. And one area where that 0:11:51.679 --> 0:11:53.320 has not been is in the Red Sea, and we've 0:11:53.320 --> 0:11:57.040 seen that with literally dozens of attacks, mostly from the 0:11:57.120 --> 0:12:01.640 Huti group based in Yemen, on shipping through that extremely 0:12:01.760 --> 0:12:04.600 key waterway. So this is something that the US did 0:12:04.640 --> 0:12:06.960 have to, i think respond to. They are trying to 0:12:07.040 --> 0:12:10.839 avoid a larger armed conflict in the region. They're trying 0:12:10.840 --> 0:12:13.280 to avoid, you know, hitting back at the houties militarily, 0:12:13.520 --> 0:12:16.119 but they are trying to ensure that shipping can continue, 0:12:16.280 --> 0:12:18.679 that the international economy is not more disrupted than it 0:12:18.720 --> 0:12:21.760 needs to be, and that you know, both businesses and 0:12:21.840 --> 0:12:24.360 allies in the region feel safe with conducting business. So 0:12:24.640 --> 0:12:26.559 I think this is an important first step. It'll be 0:12:26.559 --> 0:12:29.080 interesting to see if it's enough, but they definitely needed 0:12:29.080 --> 0:12:29.720 to do something. 0:12:30.040 --> 0:12:33.880 Now what connect steps potentially look like With the kind 0:12:34.040 --> 0:12:38.000 of coalition that Defense Secretary Austin has said is going 0:12:38.040 --> 0:12:42.040 to be rallying around protection of the Red Sea, could 0:12:42.040 --> 0:12:44.600 it have an impact on the war in Gaza? 0:12:45.920 --> 0:12:48.480 Well, I think it might. I mean, this is really 0:12:48.800 --> 0:12:52.000 the task force is really to try and protect shipping, 0:12:52.000 --> 0:12:55.520 you know, mostly oil shipments, you know, a cargo everything 0:12:55.520 --> 0:12:57.240 that's going through the Red Sea, which is I think 0:12:57.240 --> 0:13:00.079 about thirty percent of world trade. So it's good to 0:13:00.160 --> 0:13:02.600 be important for that. I think in terms of the 0:13:02.679 --> 0:13:06.480 larger region, it'll be interesting to see. There's a lot 0:13:06.520 --> 0:13:09.520 of moving parts. One reason that I think some Arab 0:13:09.640 --> 0:13:12.360 states have been a little hesitant to publicly get on 0:13:12.400 --> 0:13:14.600 board with this is they are, I'm trying to fine 0:13:14.640 --> 0:13:17.959 tune their own and to a war going on in 0:13:18.040 --> 0:13:20.160 Yemen right now. So there's a lot of moving pieces 0:13:20.200 --> 0:13:22.839 that we're trying to keep in place. What I do 0:13:22.880 --> 0:13:25.640 think this will do is again hopefully try and contain 0:13:25.679 --> 0:13:30.280 the Huti's keep this from becoming a larger conflagration. But 0:13:30.320 --> 0:13:32.600 in terms of its impact on Gaza, I think that 0:13:32.720 --> 0:13:35.559 might be somewhat minimal. I mean, that's a conflict that's 0:13:35.559 --> 0:13:38.120 playing out in its own terms within the Gaza strip 0:13:38.120 --> 0:13:38.560 in Israel. 0:13:39.080 --> 0:13:41.040 I want to talk to you as well about the 0:13:41.520 --> 0:13:45.360 difficulties getting new aid to Ukraine pass. We've been focused 0:13:45.400 --> 0:13:48.719 on the negotiations in the Senate and of course in 0:13:48.760 --> 0:13:52.400 the European Union. There's been that stall out with Hungary's 0:13:52.440 --> 0:13:56.920 Prime Minister keeping European aid flowing in. What's the potential 0:13:56.960 --> 0:14:01.439 impact if Ukraine doesn't get this aid that it's been 0:14:01.480 --> 0:14:03.760 looking for before the new year. 0:14:04.880 --> 0:14:07.839 Yeah, Well, we know that Ukraine has been very reliant 0:14:07.960 --> 0:14:10.800 on the external aid, largely from the US, but also 0:14:10.840 --> 0:14:13.880 from other allies and including the European Union. So the 0:14:13.920 --> 0:14:16.800 fact that both of those sources seem to be drying 0:14:16.880 --> 0:14:20.480 up simultaneously does not bode well for Kiev. We've already 0:14:20.480 --> 0:14:25.000 heard reports today about having to redistribute some of the 0:14:25.040 --> 0:14:28.040 equipment that's already there, trying to rethink some of the plans. 0:14:28.400 --> 0:14:30.680 So again, this is something that I think Kiev knew 0:14:30.760 --> 0:14:34.040 might be coming. But with that said, it's going to 0:14:34.080 --> 0:14:36.800 be difficult for them to adjust to this militarily. I 0:14:36.840 --> 0:14:39.280 will say, Biden and the Biden administration, I think is 0:14:39.320 --> 0:14:42.000 still very committed to trying to get this aid through. 0:14:42.160 --> 0:14:44.720 It doesn't look like it will be through by Christmas, 0:14:45.000 --> 0:14:47.560 but it looks like negotiations will continue and there might 0:14:47.600 --> 0:14:50.080 be something on the table by January. But it is 0:14:50.120 --> 0:14:51.960 going to be a break in a little bit of 0:14:51.960 --> 0:14:54.400 a lull for Ukraine right now, and it's going to 0:14:54.440 --> 0:14:56.160 be very difficult for them to plan how to move 0:14:56.200 --> 0:14:56.960 forward without that. 0:14:57.440 --> 0:15:00.560 What about the potential impact on the battle. We know 0:15:00.680 --> 0:15:05.200 Russia's military has been pretty significantly depleted by this war, 0:15:05.360 --> 0:15:09.040 but it's been playing a strategy of waiting the West out. 0:15:09.200 --> 0:15:13.160 I mean there is a concern, isn't there among Ukraine's 0:15:13.200 --> 0:15:16.880 allies that Russia could wait the West out? 0:15:17.440 --> 0:15:22.120 Oh? Absolutely, I think that's an extremely Prussian concern right now. 0:15:22.480 --> 0:15:25.920 And it's true that Russia has weathered many losses, but 0:15:25.960 --> 0:15:28.960 they continue to just keep pushing people to the front, 0:15:29.040 --> 0:15:32.680 and they've also been very savvy and turning around their 0:15:32.680 --> 0:15:35.400 own domestic production to be able to fuel the war 0:15:35.520 --> 0:15:37.720 machine in a way that, of course just Kiv hasn't 0:15:37.760 --> 0:15:40.560 been able to do. So I would say that Russia 0:15:40.640 --> 0:15:43.600 right now is playing that hard. They're going to try 0:15:43.640 --> 0:15:45.840 and wait it out. They do obviously, like everyone that 0:15:45.880 --> 0:15:47.760 the US has elections this year, they're trying to wait 0:15:47.800 --> 0:15:49.960 that out too. So I think right now this is 0:15:50.000 --> 0:15:53.000 putin just waiting back and taking advantage of the situation, 0:15:53.160 --> 0:15:55.040 and the KIV is definitely on the back foot going 0:15:55.040 --> 0:15:55.720 into the new year. 0:15:57.880 --> 0:16:00.960 This is Bloomberg day Break Today morning brief on the 0:16:01.000 --> 0:16:04.400 stories making news from Wall Street to Washington and beyond. 0:16:04.680 --> 0:16:07.440 Look for us on your podcast feed at six am 0:16:07.520 --> 0:16:11.200 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:11.240 --> 0:16:12.440 get your podcasts. 0:16:12.560 --> 0:16:15.200 You can also listen live each morning starting at five 0:16:15.280 --> 0:16:17.880 am Wall Street time on Bloomberg eleven three to zero 0:16:17.960 --> 0:16:21.400 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:16:21.440 --> 0:16:24.440 one oh sixty one in Boston, and Bloomberg ninety sixty 0:16:24.560 --> 0:16:25.520 in San Francisco. 0:16:25.880 --> 0:16:29.040 Our flagship New York station is also available on your 0:16:29.120 --> 0:16:34.560 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. 0:16:34.560 --> 0:16:37.560 Listen coast to coast on the Bloomberg Business app, serious 0:16:37.720 --> 0:16:41.680 XM Channel one nineteen, the iHeartRadio app, and on Bloomberg 0:16:41.760 --> 0:16:43.560 dot Com. I'm Nathan Hager. 0:16:43.400 --> 0:16:44.600 And I'm Karen Moscow. 0:16:44.800 --> 0:16:47.560 Join us again. Tomorrow morning. For all the news you 0:16:47.680 --> 0:17:05.000 need to start your day right here on Bloomberg Daybreak. 0:17:02.960 --> 0:17:03.000 The