Bloomberg Daybreak: US EditionTrump Picks Bondi After Gaetz Drops Out; Bitcoin Closes in on $100,000
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On today's podcast:
1) Trump Picks Pam Bondi for Attorney General After Gaetz Exit
2) Bitcoin Flirts With $100,000 on Optimism Over US Crypto Outlook
3) US Warns American Defense Firms of Russian Sabotage Threat
Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with politics and a new choice from Donald Trump to lead the Justice Department. The President elect is nominating former Florida Attorney General Pam Bondi to run the DOJ.
We get the story from Bloomberg's Doug Prisner.
The selection of Bondi comes after Trump's first pick, Matt Gates, withdrew from consideration. The former Florida congressman faced scrutiny over allegations of sexual misconduct. Now Gates denied them, but he lacks support among Senate Republicans to be confirmed. In Bondi, Trump is elevating another longtime ally with Florida roots. In the first Trump administration, Bondi worked out of the White House, assisting in communications related to Trump's first impeachment trial, and as Florida ag Bondi earned national attention for her efforts to overturn earn the Affordable Care.
Act in New York. Come Doug Krisner, Bloomberg Radio.
All Right, Doug, thank you, well. Matt Gates may be out as Attorney general, but there's still a push on Capitol Hill to release the House Ethics investigation on the former Florida Congressman. Illinois Democrat Sean Caston sits on the Ethics Committee.
It matters for the integrity of the law. It matters for the integrity of this House, and it matters for the respect that we expect the American people to give us, that those of us entrusted with this job will uphold the United States as a land where all are treated equally.
Under the law, and Democratic Congressman Sean Casten there besides them as conduct accusations. Gates is facing a campaign finance questions. Federal filing show the former congressman's main campaign arms spend one point two million dollars on e merchant fees to Stripe, the San Francisco based fintech. It's about nineteen percent of Gates's contributions. In campaigns typically spend one to four percent on payment processing.
The Karen president like Trump still hasn't made a decision on a trailer secretary, but there is new word on how his thinking around the position is going. According to The Wall Street Journal, Trump is considering naming former Fed Governor Kevin Walsh to lead the Treasury Department, then putting him in charge of the Federal Reserve when Chairman J. Powell's term ends in twenty twenty six. At the same time, Trump could pick Key Square Group founder Scott Besson to lead the National Economic Council, then take over Treasury if Worsh becomes FED chair, Aids tell the Journal Trump could change his mind. He is also considering Apollo Global Management CEO Mark Rowan for Treasury.
Well. Another major story where following this morning Nathan involves a warning from US intelligence and national security agencies. It's about a sabotage threat from Russia. Get the detls from Bloomberg's Oliver Crook.
This is part of the sort of broader conversation that we've been having for a long time in Europe and in the United States about the sort of hybrid warfare that Russia has been waging in various different sectors, whether it's sort of in civilian infrastructure or just sort of some psychological dimensions, and of course the question of social.
Media, all of these sorts of things.
But this is specifically directed at defense companies, warning basically that there could be active Russian sabotage to operations in the United States and also abroad, and this is also coming as sort of Russian intelligence groups allegedly also tried to identify and recruit individuals sort of insiders of these industrial bases to try to sort of sort of convert them or get information from them and.
Bloomerge Oliver Kruks as President Biden's outgoing administration, has warned allies about the risks of stepped up Russian sabotage if the US and its allies allowed Ukraine to fire Western weapons deep inside Russia.
Meanwhile, Karin the US has confirmed Russia fired an experimental intermediate range ballistic missile at Ukraine. President Vladimir Putin says the attack was in retaliation for Ukraine's use of American and British made missiles earlier this week.
Right, we consider ourselves entitled to use our weapons against military facilities of those countries that allow their weapons to be used against facilities, and in the event of an escalation of aggressive actions, we will respond decisively.
In a televised address in Rasha, Vladimir Putin warned US air defense systems would be powerless to stop the new missile.
He says it flies at ten times the speed of sound.
Well, Nathan, Now to the latest on the war between Israel and Hamas Benjamin Etniel, who is criticizing the International Criminal Court for issuing arrest warrants against him and a former minister, and said his government won't be deterred from continuing its war against Hamas and Gaza.
I want to thank our many friends around the world, especially those in the United States who've condemned this outrage and who have said that this decision will have severe consequences for the ICC and those who cooperate with its decision. Israel will not recognize the validity of this.
Decision Nanya, who says the court's announcement was anti Semitic and Israel will keep defending its citizens. The ICC also issued a warrant for Hamask commander Mohammed Daif, who Israel said was killed in Gaza months ago.
Training The markets now, Karen futures are lower following yesterday's dowlead rally on Wall Street. Bitcoin is on the rise again, nearing the one hundred thousand dollars level. Right now, the digital token is just shy of ninety nine thousand. Mike Reagan is Bloomberg's crypto team leader. He says it's not just because president like Donald Trump wants to deregulate the crypto industry that Bitcoin's moving on up. He says, it's about Trump's promise to create a strategic bitcoin stockpile.
The market is thinking there's a good chance of that, and not only that that other governments will have to follow suit. If the US suddenly is treating bitcoin like a major reserve asset, other governments will likely be inspired to do the same. So that's kind of the backdrop for this just parabolic rally to the upside that we've seen.
Bloomberg's Mike Reagan says the crypto market as a whole has gained more than nine hundred billion dollars since Trump's election win.
Well Nathan, the Euro trading at inslow's level in two years, and traders ramping up bets on interest rate cuts from the European Central Bank. The drop comes after gauges of business activity and the bloc's two biggest economies contracted more than expected. Rachel Evans, managing editor for FX and Rates for Bloomberg News, says traders have up December ratecunt bets from fifteen percent yesterday to fifty percent today.
These are bad data figures.
They are going to have to look at these and think about does that really make sense for them to kind of continue with their hawkish stance or do they need to think about, you know, even if they're not going to go big in December, adding to bets next year And indeed the market is now predicting six bets by the ECBN twenty twenty five.
Bloomer's Rachel Elevens says the euros slide follows the composite PMI shrinking to forty eight point one from fifty in October.
In merger news, Karen a deal to create the largest US pay TV service is all but dead. DirecTV has notified Echo starve it's intention to terminate an acquisition of Dish Network after they failed to win the consent of bondholders for a key debt exchange. Under the terms of the original transaction, Direct TV was to acquire Dish and the Sling TV for Echo Star for a dollar plus the assumption of about nine and three quarter billion dollars in debt. DirectTV, which is owned by AT and T and joint venture partner TPG what had become the largest PayTV provider in the US with about eighteen million subscribers.
Awesome stocks on the move this morning, Nathan gap It is up more than fourteen percent, the operator of Old Navy and Athleta, raising its full year outlook for sales. The apparel retailer says all of its brands are gaining market share.
On the flip side, Karen, shares of Intuit are falling by more than five percent. The maker of Turbo tax tax preps software gave a sales and profit outlook for the current quarter that fell short of analyst testaments.
Good is 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 John Tucker. John, good morning, and Happy Friday, Karen.
The federal government, including TSA air traffic controllers in the airline industry, they're getting ready for a record breaking Thanksgiving holiday week. Let's get more from Washington and Bloomberg's Amy Morris.
Transportation Secretary Pete Buddhajeedge told the Senate Appropriations Committee that the regulations put in place in the past four years are supported by passengers pretty much across the board.
The public has been universally supportive. Any airline that failed to proactively offer refunds to passengers could be in violation of federal law.
The CEOs of Delta and Southwest Airlines say they hope the government will be more pro business when President elected Donald Trump returns to office in Washington. Amy Morris Bloomberg Radio.
Senator doob Casey, part of the Democratic political dynasty, has conceded to his Republican opponent, David McCormick and the Pennsylvania Senate race, a race that was so close it triggered a recount. McCormick was declared the winner by the Associated Press earlier this month, until the state ordered the recount because the margin was less than one point five percent. The Commonwealth Secretary said this was only the eighth time that the recount provision was triggered since two thousand and four, when the state law was passed. A flash drought that has taken hold of much of the US is threatening to push beef prices higher and could damage winter weak crops across the Great Plains. The amount of land affected by all classes of drought increase through October across the country now covers more than forty five percent of the contiguous US. While the dryness in the East has led to wildfires and water shortages, it's the drought across the Great Planes that has led to higher beef prices and more than sixty years after President John F. Kennedy was assassinated, conspiracy theories still swirl. President Like Donald Trump, promised during his re election campaign he would dig classify all the remaining government records surrounding the assassination. Today's sixty first anniversary will be marked with a moment of silence in Dally Plaza, where Kennedy's MOTORCID was passing through but he was fatally shot. Global News twenty four hours a day, whenever you wanted with Bloomberg News. Now, I'm John Tucker. This is Bloomberg Karen.
All right, John Tucker, thank you time now for the Bloomberg Sports Update. Bronkie you by Tri State Odie. Here's John stash Hour, John, Good morning.
Good morning, Karen.
The Yankees in their history have won more than their share of MVP awards. Jogi Bart won three, Roger Morris and Alex Rodriguez two, but only once Mickey Mantle and his triple crown season of nineteen fifty six had a Yankee won the MVP unanimously. Aaron Judge got every vote after a season where he hit three twenty two with fifty eight home runs and what Judge was most pleased with one hundred and forty four RBIs eeach offseason.
I try to like look back on the season and see where I could try to improve and get better for the next season. And that's one aspect of my game I wanted to improve on, is they're driving more runs in and it definitely helps when you got a lot of guys on base in front of you.
Judge on y ESPN Jowyo TONI won NL MVP. That was also unanimous. Upset in the NFL. Cleveland came in two and eight Pittsburgh eight and two. The Brown's early fourth quarter took a twelve point lead the Steelers rally they hadn't scored a touchdown in the last seven quarters. They scored two tds in a minute forty two and led by one, but the Browns drove and scored in a heavy snowstorm with a minute left to win.
Twenty four to nineteen.
Daniel Jones won only three games over the last two seasons. He admitted in a prepared statement, that's why he's no longer the giants starting quarterback.
There have been some great times, but of course we all wish there'd been more of those. I take full responsibility for my part in not bringing more wins. No one wanted to win those win more games worse than me, and I gave everything I had on the field and in my preparations.
Almost certain Jones won't play for the Giants again. Spent part of yesterday's practice on the scout team playing safety. Rangers lost three to two in Calgary. Devils beat Carolina four to two. Islanders lost two one at Detroit, heartbreak for Saint John's. In the Bahamas, the Red Storm led Baylor by fourteen at the half and by five with eighteen seconds left in the second overtime. Baylor won with a three pointer at the Buzzer Seaton Hall on Charleston, South Carolina one in overtime over VCU.
John Stashiyaway Bloomberg Sports Karen and Nathan.
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. Good morning, I'm Nathan Hager.
Gates out Bondi in president like Donald Trump is named former Florida Attorney General Pam Bondi to be his attorney general, hours after Matt Gates abruptly pulled himself from the running, saying he didn't want to be a distraction. But Republican Senator Kevin Kramer says Gates just didn't have the votes.
Simple math. I think it was made clear that there's not a path, and if there's not a path, you just spent a lot of political capital for a losing cause.
Republican Kevin Kramer there on the shifting deck chairs in the Trump cabinet decision making for more. We are joined by Bloomberg's Kevin Whitelaw and Kevin So Matt Gates is off the scene. But Pam Bondi maybe Florida's former attorney general, but a pretty familiar name inside the belwayh is someone very loyal to this incoming president.
Good morning, Hey, good morning.
Yeah, you know, with with Pam Bondi, she's picking someone who's whose qualifications are a lot more straightforward for the job than than Matt Matt Cates's ever were. You know, she served eight years as Attorney general in Florida and has a legal career on both ends of that. But she also served as as part of Trump's impeachment defense, was was you know, connected to various parts of his first term, and has worked at a think tank associated with him, and been both basically a staunch loyalist in TV appearances and and other other venues throughout you know, basically the whole time. So, yeah, he's he's still picking someone who he feels is going to be loyal to him, is going to carry out his agenda. But she does have much more extensive legal experience and and you know, has obviously served in a similar kind of role for the state of Florida.
The attorney general position and is typically seen as having a firewall between the Justice Department and the White House. Could Pam Bondi's ties to former President Trump be a hindrance once she faced the Senate confirmation.
I mean, I think at this point, given the fact that she is qualified, and given the fact that the Senate already made it clear that that they weren't to be able to take the first one. I think her path is probably a lot clearer, although obviously it's still early days to sort of figure that one out. It doesn't seem to, you know, from what we've seen so far, that Republicans are all that concerned about sort of that loyalty factor. But I definitely think that for Democrats there's an enormous amount of concern that the traditional sort of boundaries of a you know, slightly independent Justice Department are not going to be in place under a Trump administration. But I think that's probably true almost no matter who he picks.
Now, if mag Gates didn't have the support from Senate Republicans on Capitol Hill, could some of Trump's other cabinet picks be watching their back now?
Well?
Yeah, I mean I do think that there's clearly some questions surrounding his choice to run the Pentagon. Pete hedg Seth, I think the the the some of the allegations that have started to come out, including a police report about uh, uh, you know, a possible sort of uh encounter, are definitely something that that uh that is worrying a number of Republican senators I don't. I'm not. It's not clear yet they're ready to block him over that, but it is going to give them cause for concern. I also think Telsea Gabbert's nomination for Director of National Intelligence has raised some some concerns given given some of the statements she's made about Russia and Syria and other things. So unclear as to whether they'll they'll muster any kind of objection.
Uh.
You know, Trump does have a margin of a couple of senators, so it does take basically four senators would have to vote no to to to deny him any confirming his nomination. That may be, you know, tough to assemble, given you know, the Republican's desire to support Donald Trump.
Still a lot to watch as the cabinet filling continues. Thanks Kevin for Bloomberg's Kevin whitelaw there with us this morning.
Karen, Well, Nathan, we want to turn now to our discussion with Citadel founder Ken Griffin. Griffin sat down with Bloombergs and Ally Bassek at the Economic Club of New York discussing a range of topics, including the election and President elect Trump's economic proposals.
Let's listen in.
The American voters have said resoundingly and immigration inflation are two of the most critical problems that our country faces, and immigration is an area that the Trump administration is going to be very focused on, and it's an area of real concern to me because much of our nation's success is rooted in our ability to attract the best and brightest from around the world to work for American firms and to start American firms.
Roughly half of all the firms in.
The Silicon Valley that have been launched in the last twenty years are led by immigrants, and I would say roughly the majority of Citadel's leadership team is immigrants. These people that have come to this country, they've left everything behind because they believe in the American dream and the opportunity that our country represents. And yet I think everyone agrees that the chaos on the southern border represents a broken immigration policy where there's very little control over who comes into our country, whether they come here to pursue the American dreamer for more nefarious reasons. I think there's widespread agreement across our country that we need to secure our southern border and that we need a far more orderly structure for immigration to America. So this has been a really important voice that the American voters have delivered to Washington, and I'm pleased to see that pure that voice, But I'd like to see Washington now execute on an immigration policy that is thoughtful, that protects this nation's great stature in the world of being the country you come to pursue your dreams.
Prior to the election, you have a Committee for the Responsible Federal Oral Budget saying that you would really have an administration with the proposed policies ahead that would add seven point five trillion dollars to the national debt over the next decade. How do you start to trim that sat? I mean, how do you start to bring that number down?
So here's the question.
How much did both candidates run on a strategy of promise the world and then deliver reality post election?
I mean, neither party had.
A compelling story as to how they were going to put America's physical house order. And I think it's very difficult to have judged either Vice President Harris or President Trump on the merits of their economic policy because neither set forth a plan that was substantive, tangible, and would achieve the results that we need for.
The American people. I think that's part of the reason.
That, for example, the Secretary of Treasure is so important, the role of the Senate, the role of the House. We're going to have to see the Republicans govern and make some very difficult decisions about where to cut what tax cuts, if any happen or are maintained. We've got to put the fiscal house in order, and these are really unpopular decisions for politicians to make.
A big part of that seven point five trillion dollar projection really does come from tax cuts, more than you've seen in twenty seventeen. Do you think any of those can get done with where the deficit stands today? Of course, this administration is very different than when we saw Trump back then, given the size of the de to sit ballooning.
So in both scenarios, Trump has inherited the following problem. American productivity is below where it needs to be for us to make the to deliver on the promises that we have delivered to our retirees in our forthcoming retirees. There's no way out of our current situation in terms of the promises that we've made. Other than to get American productivity. I think in the first set of tax cuts, and to be clear, I think Trump made a bet if we cut taxes, if we incentivize corporations and investors to take more risk, to put more money into R and D, to put more money to capital, to put more money into software, and to modernize their businesses, we will get the productivity gains that we need. Now, we'll never know the answer to that because the pandemic had shortly thereafter.
We just won't know.
And then the Biden administration. I think one of the real challenges for American business is the Biden administration was four years of extremely difficult regulatory policy and an extremely activist both DOJ and FTC that really struck at the core of America's competitiveness and our ability to increase productivity. So the big problem is we've got to get Partica to be growing. I don't think we have the fiscal room to cut taxes from where they are today, and I think there's a real question about where do we need to raise taxes to start to put our house in order.
You said just a couple of days ago, you're anxious about the president elects willingness to engage in tariffs as a matter of trade policy. What does the economy look like if he's successful in carrying out the policy that he campaigned on.
I am I am gravely concerned that the raw of tariffs puts us on a slippery slope towards coroneism capital So when you when you implement tariffs for the American companies that produce goods in America, there's unquestionably a short term benefit. You've just taken your competitors and severely disadvantage them.
The challenge with this and we.
Know this, We know this from the history of economics. Those same companies that enjoy that momentary sugar rush of having their competitors removed from the battlefield soon become complacent, soon take for granted their newfound economic superiority, and frankly, they become less competitive on both the world stage and less competitive at meeting the needs of.
The American consumer.
And then, of course, once you're in this world where companies know that their very existence is because of tariffs. No, so the terriffs came down, they wouldn't be able to compete, they wouldn't be able to thrive. Now You're going to find the halls of Washington really filled with the special interest groups and the lobbyists as people look for continued higher and higher tariffs to keep away foreign competition and to protect inefficient American businesses that failed to meet the needs of the Maria consumer.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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