Trump Orders Sanctioned Oil Tanker Blockade in Venezuela; US Readies New Russia Sanctions

0:00Hello, I'm Stephen Carroll. I'm in Brussels where many of Europe's biggest decisions get made. And I'm Caroline Hepker in London with the hosts of the Bloomberg Daybreak Europe podcast. We're up early every weekday keeping an eye on what's happening across Europe and around the world. We do it early so the news is fresh, not recycled and so you know what actually matters as the day gets going. From Brussels, I'm following the politics, policy and the people shaping the European Union right now. And from London, I'm looking at what all that means for markets, money and the wider economy. We've got reporters across Europe and around the globe feeding in as stories break So whether it's geopolitics, energy, tech or markets, you're hearing it while it happens It's smart, calm and to the point And it fits into your morning You can find new episodes of the Bloomberg Daybreak Europe podcast by 7am in Dublin or 8am in Brussels, Berlin and Paris On Apple, Spotify, YouTube or wherever you get your podcasts

1:02Bloomberg Audio Studios. Podcasts. Radio. News. Good morning. I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. And Karen, that surge in oil comes on new pressure from the U.S. President Trump has ordered a blockade of sanctioned oil tankers off Venezuela. On social media, the president added he is designating Venezuelan President Nicolas Maduro's government a foreign terrorist organization. We get more from Bloomberg's Stephen Stepchinski. You can look at this as a play for regime change. I think, you know, he's been putting pressure on this regime. And one way to tighten that pressure even more would obviously be taking one of their biggest revenue areas, and that's oil.

1:46Putting curbs on their oil exports. Already he's been tightening that through the seizure of a ship earlier this month, as well as just restrictions in general, have helped to curb the amount of money flowing into Venezuela and in particular U.S. dollars. But by doing this, you're really siphoning off a very large portion of the revenues that the regime can get. And as a result, Bloomberg's Stephen Stapchinsky says oil is advancing from its lowest level since 2021, though crude does remain on track for a yearly loss. Meanwhile, Nathan, Bloomberg News has learned the U.S. is preparing a fresh round of sanctions on Russia's energy sector if President Vladimir Putin rejects a peace agreement with Ukraine.

2:27The discussions over further sanctions come as U.S. and Ukrainian negotiators have made some advances toward the terms of a potential peace accord, but sticking points remain over issues such as territory and security guarantees. Now, Karen, we want to turn to the latest on the death of actor-director Rob Reiner. The Hollywood legend's son, Nick Reiner, has been charged with first-degree murder in the deaths of his father and mother, Michelle Singer Reiner. Los Angeles County District Attorney Nathan Hockman says prosecutors are still deciding whether to seek the death penalty. Now prosecuting these cases involving family members are some of the most challenging and most heart-wrenching cases that this office faces because of the intimate and often brutal nature of the crimes involved.

3:11L.A. County D.A. Nathan Hockman says Nick Reiner will undergo a standard medical clearance before he's brought to court to formally hear the charges. He says if there is evidence of mental illness, it will be presented in court. Nick Reiner was arrested Sunday night after his parents were found dead in their Brentwood home. Rob and Michelle Reiner's closest friends have issued a joint statement mourning the couple as a, quote, special force together, dynamic, unselfish, and inspiring. The list includes Billy Crystal, Albert Brooks, Martin Short, Larry David, and their wives. In New England, Nathan, the search continues for the suspect in the mass shooting at Brown University.

3:44The FBI has released a five-minute video timeline of the suspected gunman walking and sometimes running through the streets of Providence, Rhode Island, before and after the shooting. Providence Police Chief Oscar Perez is appealing to the public for more information. If you have any camera systems or any Teslas, like I mentioned, that you look at that footage and that you can reach out to us and please provide us anything that you have. Providence Police Chief Oscar Perez and other officials have not named any new persons of interest since an initial suspect was released Sunday night. They also have not indicated a motive, with witnesses giving varying accounts about whether the shooter spoke as he opened fire.

4:24The FBI is offering$50 ,000 for information that leads to an arrest and conviction. We turn now to Australia, Karen, where authorities have charged the surviving gunman in the deadly Sydney Hanukkah attack with 59 offenses, including murder and terrorism. 24-year-old Naveed Akram remains under police guard in the hospital. Here's Australia's Prime Minister, Anthony Albanese. This is an incredibly traumatic time for members of the Australian Jewish community. It has also shaken our nation. Our nation will respond. We will hold people to account for what has occurred. That's Australia's Prime Minister Anthony Albanese.

5:07Meanwhile, donations to a GoFundMe page for Ahmed Al-Akhmed, the 43-year-old who tackled and disarmed one of the shooters, has passed$2.4 million. We turn to Europe now, Nathan, and the Trump administration is threatening retaliation against the European Union in response to efforts to tax American tech companies. At issue are regulations governing digital commerce as the EU moves to regulate and tax U.S. tech giants, including Alphabet, Meta, and Amazon. We get more from Bloomberg Chief Europe Correspondent Oliver Crook in Brussels. There's been a big issue for the Trump administration since the very beginning.

5:42We are now getting the US trade representative coming out on Twitter, really amping up the rhetoric and saying that if things do not change, they're going to target European companies. What is sort of peculiar about this time around is that he has named all of the companies that they're looking at. They are Accenture, Amadeus, Capgemini, DHL, Mistral, Publicis, SAP, Siemens, and Spotify. So there you get a sort of real crosscut of companies across Europe, mainly focused in France and Germany, the two biggest economies within the Eurozone. Bloomberg Chief Europe Correspondent Oliver Crook says critics of the EU's digital tax plans say they are slowing down technological innovation and unfairly seeking to raise revenue.

6:21In the nation's capital, Karen, moderate House lawmakers will not get to vote on extending Affordable Care Act premium subsidies before they expire at the end of this year. We get more from Bloomberg's Amy Morris in Washington. House Speaker Mike Johnson is blocking a Republican push for a vote on renewing expiring Obamacare subsidies. There are three discharge petitions aimed at forcing the vote. Republican Representative Mike Lawler of New York says there should be a vote, and he sounded off on the House floor. Eleven Republicans have signed on to those discharge petitions. Now, why is that necessary?

6:53Because House Republican leadership will not allow a vote. It is idiotic and shameful. And yet, my Democratic colleagues will not join us. Now, the House is set to vote on a consensus GOP health care package, but an ACA fix is not likely to be among what passes. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. Well, President Trump is delivering a primetime address to the nation tonight. The White House says the president will use the speech to detail his historic accomplishments and tease some policy coming in the new year. It comes at a pivotal time with the president's poll numbers softening and the economy facing headwinds.

7:30Well, Karen, Chicago Fed President Austin Goolsbee says he expects strong economic growth into 2026. He says interest rates should be able to fall if inflation declines toward the Fed's target. Here's Goolsbee speaking on CNN. I'm still pretty optimistic that the economy will sustain at a stabilized rate that's pretty decent. And if it can do that and inflation go back headed down to something like 2%, I think rates can go down. Chicago Fed President Austin Goolsbee defended his recent dissent against a Fed rate cut. He says he wants to see more data before agreeing to more easing. In company news, Nathan, Bloomberg has learned OpenAI is in initial discussions to raise at least$10 billion from Amazon and use its chips.

8:18Sources say the deal under discussion could value OpenAI north of$500 billion and see it adopt Amazon's Tranium chip. A deal would mark a win for Amazon's fledgling semiconductor division and complement its cloud division, Amazon Web Services. Amazon shares, they're up 1.3 % this morning. And Karen, Jared Kushner's Affinity Partners is getting out of the bidding war for Warner Brothers Discovery. The private equity firm withdrew its backing of Paramount Skydance's hostile takeover proposal. Sources say Kushner's involvement in a deal that the president has said he would personally review drew a lot of unwelcome attention.

8:55Of course, Jared Kushner is President Trump's son-in-law. Bloomberg News has learned Warner Brothers is urging its shareholders to reject Paramount's latest offer as they recommend supporting the existing deal with Netflix.

9:10Time 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. Good morning, Karen. The proposed White House ballroom will now cost as much as$400 million. President Trump gave the latest estimate last night. The proposed cost of the ballroom has steadily risen from$200 million to the president's latest estimate. Its scale has also grown with the president at first saying it won't interfere with the current building before instead bulldozing the entire East Wing. President Trump says he's standing by his chief of staff, Susie Wiles, following her explosive interview with Vanity Fair.

9:46Wiles saying Trump has an alcoholic's personality. She also said Vice President J.D. Vance has been a conspiracy theorist for a decade. Vance responded. Sometimes I am a conspiracy theorist, but I only believe in the conspiracy theories that are true. Weill also points a finger at Attorney General Pam Bondi, saying Bondi completely whiffed her handling of demands to release the files on Jeffrey Epstein. A professor at MIT was fatally shot in his Boston-area home. Police are now looking for a suspect. Neighbors tell police they heard a commotion last night. At about 9 o 'clock, I heard three loud bangs.

10:24I thought at first it was somebody in our apartment kicking in the door or something. So I called the neighbors and they said, no, they thought it was gunshots. 47-year-old Junio Lorario, head MIT's Plasma Science Infusion Center. The incident occurred as authorities continue a manhunt for the person who killed two students Saturday at a rampage at Brown University in Providence, Rhode Island, about 40 miles south of Boston. And Pope Leo is expected to accept Timothy Cardinal Dolan's resignation this week. It will possibly name a bishop from the pontiff's Illinois home state to lead the Archdiocese of New York.

11:01According to the New York Post, the Pope is considering naming Bishop Ron Hicks of Joliet, Illinois, to replace Dolan. Dolan has reached the mandatory retirement age of 75. Global News, 24 hours a day, and whenever you want it with Bloomberg News Now. I'm John Tucker, and this is Bloomberg Karen. Thanks, John. Time now for our Bloomberg Sports Update. And for that, we bring in John Stash Hour. Thanks, Karen. The Knicks in Las Vegas won the NBA Cup. They trailed San Antonio by 11 late in the third quarter, won the fourth 35-19, won the game 124-113. Jalen Brunson, 25 points, was the NBA Cup MVP.

11:39Each player gets over$530 ,000, although the win actually doesn't even count in the standings. Big NFL game tomorrow night. Rams and Seahawks in Seattle for first in the NFC. The Rams not ruling out wide-out Devontae Adams despite his hamstring injury. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. As markets move and headlines break, what matters most is context. A Bloomberg subscription gives you unmatched reporting, sharp analysis, and powerful tools that help you connect the dots. Visit Bloomberg.com slash podcast offer to learn more. Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg.com and the Bloomberg Business App.

12:30This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Oil is rallying this morning with geopolitical risk now on a couple of fronts. President Trump says he is ordering a, quote, total and complete blockade of sanctioned tankers in and out of Venezuela. And sources are telling Bloomberg News that the is preparing a fresh round of sanctions on Russian energy if President Vladimir Putin doesn't agree to a peace deal with Ukraine. For more on all this, we're joined by Will Kennedy, Bloomberg's news director for Europe, the Middle East and Africa. Will, good morning. Let's start with Venezuela.

13:02This seems like a pretty significant step up in this ongoing campaign between the U.S. and the Maduro regime. Good morning. Good morning, Nathan. Great to be with you. Yes, that's exactly right. It does seem a very meaningful increase in the economic pressure that the Trump administration is putting on a Maduro. It's clear that this is ratcheting up. And we should note how dependent Venezuela is on the dollar earnings that export of oil brings to them. So it really, if this is enforced, it could really make life quite difficult for the Venezuelan government. What could this mean as well for the oil majors in the U.S.

13:43that work with Venezuela? Well, the announcement that Trump made talked about sanctioned oil tankers being blockaded, which suggests to me that those tankers carrying oil from Chevron, which is the one remaining oil major still working in Venezuela and determined to stay there, will be allowed to flow. So I think it suggests that there will be this distinction between oil being carried on sanctioned tankers, which is being marketed by Pedovesa, the state oil company, and often being sold to buyers in the Far East into China and places like that, will be blockaded. But the flow of oil from Chevron will probably be allowed to continue.

14:29But we're still trying to learn all the precise details of how this will work. And, Will, what have we learned about these discussions around even further sanctions against Russia's energy sector. We know that there have been plenty of sanctions thus far. Yes. It's another demonstration of how willing Trump and his administration is to use energy sanctions as leverage as it seeks to pursue its goals internationally. What Trump wants is for a peace proposal to be agreed between the US, Ukraine and European countries and to put that proposal to Russia in the hope of getting a truce as soon as possible.

15:10What the US is now telling us is that they are willing, if Russia doesn't come to that process, if Russia doesn't engage, if it seeks to prolong the war, it is willing to impose further sanctions to curtail its oil exports. And again, Russia is a very meaningful export of oil in the world. And it is very dependent on that revenue to keep its war economy going. So it is one way in which to exert pressure on Vladimir Putin's government. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m.

15:50Eastern each morning on Apple, Spotify or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121. Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moskow.

16:26And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.