Trump Targets Price Anxiety in Primetime Address; US Approves $11 Billion Arms Sale to Taiwan

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. Karen, we begin with President Donald Trump's effort to address Americans' lingering economic concerns. The president used a primetime address from the White House to say he is working to rein in rising prices. Good evening, America. 11 months ago, I inherited a mess and I'm fixing it. And in the speech heard live on Bloomberg Radio, President Trump said he's starting with a holiday bonus for the military. The warrior dividend in honor of our nation's founding in 1776.

1:44We are sending every soldier one thousand seven hundred and seventy six dollars. President Trump also announced plans for housing reforms in the new year from his tax and spending cut bill as well as lower interest rates. I'll soon announce our next chairman of the Federal Reserve, someone who believes in lower interest rates by a lot and mortgage payments will be coming down even further. And President Trump touted his efforts to stop drugs and undocumented migrant flows, as well as his plan to replace health insurance subsidies with direct payments to Americans. And he defended his tariff regime, saying it's bringing in domestic manufacturing and will help to pay for the military bonuses.

2:25Well, Nathan, reactions already pouring into President Trump's speech. Bloomberg's Romy Vargis says the president is showing he's got Americans' cost concerns in mind. This warrior dividend, this chapter 1776 coming around the holiday times for service members really shows that they are paying attention to the poll numbers and wanting to see what they can do. And that's Bloomberg Digital Politics editor Romy Varghese. And Bloomberg's Joe Matthews says those concerns could linger well beyond the speech. This issue around health care premiums rising in the country will be likely once again the preeminent issue when we get on the campaign trail for the midterm.

3:05So they're trying to get their arms around this. And Bloomberg Balance of power host Joe Matthew there. Reuters Ipsos poll this week shows the president's approval rating near its lowest level this term at 39 percent. Heading overseas, Karen, the Trump administration has announced a massive package of arms sales to Taiwan. It's valued at more than$10 billion and includes medium-range missiles, howitzers and drones. China's foreign ministry has attacked the move, saying it would violate diplomatic agreements between China and the U.S. and undermine regional stability. Over in Europe, Nathan, EU leaders are gathering for a summit aimed at agreeing on a massive loan to cover Ukraine's military.

3:43Bloomberg's Oliver Crook is covering the high-stakes meeting in Brussels. I think it's fair to say that this is really a do or die meeting for the Europeans on two main issues. The first is on funding Ukraine, getting the Ukrainians on financial footing for the next few years to be able to support their war effort to defend against the Russians. And the second on this Latin American trade deal, the Mercosur trade deal that's been 25 years in the making. These two issues, which are massive issues for the Europeans, you really can't undersell how big of a deal this is in trying to get these over the line.

4:10We have no idea which way they're going to go on both of these issues. And Bloomer's Oliver Crook says European Council President Antonio Costa, who is chairing the meeting, is vowing to keep leaders negotiating until an agreement is reached, even if it takes days. Australia, Karen, is creating new hate speech laws following an alleged Islamic State-inspired terrorist attack at Bondi Beach that killed 15 Jewish people gathered to celebrate Hanukkah. Here's Australian Prime Minister Anthony Albanese. I, of course, acknowledge that more could have been done, and I accept my responsibility for the part in that as Prime Minister of Australia.

4:47But what I also do is accept my responsibility to lead the nation and unite the nation. Prime Minister Anthony Albanese says the package will include aggravated hate speech offenses for preachers and leaders who promote violence. Now, Nathan, we want to update you on the manhunt for the mass shooter at Brown University. The search is now into a sixth day and authorities are continuing to press for more information. Providence Rhode Island police have released surveillance photos of a man seen walking past their person of interest. And here's Providence Police Chief Oscar Perez. And we see this person of interest and nearby the vicinity is this other person.

5:23And so we're just trying to find out more. And we believe that this person may have relevant information that is really going to help us. And Providence Police Chief Oscar Perez also released a map showing the streets where the suspect was seen before and after the shooting. He's asking the public for more video from the area. Bryan University says it has more than 1 ,200 security cameras in and around campus, but they're not in every hallway or classroom. Let's turn now, Karen, to the latest on the death of actor-director Rob Reiner. The Hollywood legend's son, Nick Reiner, made his first court appearance in Los Angeles on two counts of first-degree murder in the deaths of his parents.

5:59Here's Nick Reiner's attorney, Alan Jackson. We ask that during this process, you allow the system to move forward in the way that it was designed to move forward. Not with a rush to judgment, not with jumping to conclusions, but with restraint and with dignity and with the respect that this system and this process deserves and that the family deserves. Attorney Alan Jackson says Nick Reiner's arraignment has been postponed to January 7th. Company news history this morning for BP. The oil giant has appointed Meg O 'Neill as its first female CEO. She replaces Marie Achenclos after just two years in the job.

6:37The management change comes as the oil giant struggles to revive its fortunes following a botched pivot toward renewables. And back here in the U.S., Karen, the AI trades getting some good news this morning. Shares of Micron technology are up 10 percent in early trading. The largest U.S. maker of computer memory chips gave an upbeat forecast for the current quarter.

6:59Time 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 good morning, Karen. Modern House Republicans have revolted against Speaker Mike Johnson and joined with Democrats to force a vote in January on expiring Obamacare subsidies. Republican Representative Mike Lawler of New York signed on to the Democratic discharge petition, a way to force a vote and get around GOP leadership. Speaking with our Joe Matthew on Bloomberg balance of power, Lawler denies there's a lack of confidence in the House Speaker.

7:31Him and I have a very good relationship. We've spoken repeatedly over the last 24 hours. I am more focused on finding a solution. I don't think he has anything to worry about with a motion of vacation. New York Congressman Mike Lawler with Bloomberg's Joe Matthew. Get the full conversation of the Bloomberg Balance of Power podcast. A lot of people want to work for incoming New York Mayor Zoran Mamdani. That's a story from Bloomberg's Charlie Pellett. More than 74 ,000 people have applied for jobs in the new administration with an average age of 28. Mamdani's administration is looking to hire an unspecified number of roles across 60 agencies, 95 mayoral offices, and more than 250 boards and commissions.

8:16Those numbers are both a measure of enthusiasm for New York City's incoming mayor and a sign of how tough the job market is for young people in the five boroughs. New York City had a 5.8 % unemployment rate overall in August. In New York, Charlie Pellett, Bloomberg Radio. Ghislaine Maxwell has asked a judge to throw out her sex trafficking conviction and 20-year prison sentence. It comes on the eve of a deadline for the Justice Department to turn over a trove of documents relating to her ex-boyfriend, convicted pedophile, and sex trafficker Jeffrey Epstein. And FBI Deputy Director Dan Bongino says he's resigning from the Bureau next month.

8:56The departure would be among the highest profile resignations of the Trump administration. Coming as the firing of career agents has contributed to upheaval at the Bureau. Global News 24 hours a day and whenever you want it, we have 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 Stashauer. Thanks, Karen. in a big game tonight in the NFC. The Rams and Seahawks play in Seattle. Both teams are 11-3, tied for the best record in the conference. A quarterback change in Miami despite Tua Tonga-Valolo getting a$212 million extension being just midway through that deal.

9:34He leads the league with 15 interceptions. He's going to the bench, replaced by rookie Quinn Ewers. Luke Weaver, the reliever for the Yankees, is signed with the Mets. The second time that's happened to a relief pitcher in this offseason. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this.

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11:02Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Affordability. It was the issue that powered Democrats' wins in last month's elections by many analyses. But with cost of living concerns still lingering into the holidays, President Trump is touting what he's accomplished in the last 11 months. Our border is secure. Inflation has stopped. Wages are up. Prices are down. Our nation is strong. America is respected. And our country is back stronger than ever before.

11:41President Trump, in a primetime address to the nation, you heard live on Bloomberg Radio. This morning, we're joined by Terry Haynes, the founder of Pangea Policy. No, you heard the speech last night, Terry. Your reaction to it and the message that the president says he is trying to fix the problems that he says he inherited from the Biden administration. Good morning. Good morning, Nathan. You know, what I heard last night was the most popular politician in the United States, because not that I hold a Trump brief because I don't. but he is by far, essentially deciding to do 2025's greatest hits and spice that with a reminder to the public of why they hired him in the first place.

12:25The entire speech, you know, the speeches these days are kind of soundbite collections. And, you know, this was one, so you could pick your soundbite and move along if you're a member of the public. And crucially, I think for him, he promised more hits, that the greatest hits package wasn't the end, but was kind of the beginning. So he's setting the stage to try to, in the next 10 or 11 months, not only make the case that he's done something, but that he is going to do something, did something, try to instill some confidence in the public and his base that he's going to go about fixing the affordability problems just as he fixed other sorts of problems.

13:11And in terms of specific hits, to term it that way, we heard the president talking about so-called warrior dividends,$1 ,776 checks to military service members to arrive before Christmas and a promise of housing reforms from the big tax and spending cut bill. Are those the kind of things that are going to resonate with voters into 2026? Well, I think it's a little early, frankly. You're right to point all those things out, and I think there will be a lot more. The president is not going to be constrained by ideology, and I think that's an important point for markets because people tend to look at how closely some politician or another adheres to what's viewed as Democratic or Republican orthodoxy.

13:57I don't think Trump or his people are going to care about that. But sometimes I liken the politicians to painters, and I see Trump as Jackson Pollock more than anything else. He'll throw around the paint cans however he needs to in order to get the kind of picture he wants regardless. So there's that. How I would look at the speech last night from an affordability perspective is we're still in the spaghetti phase here. We're throwing messages up against the wall to see what sticks. how they describe what they're going to do, which is kind of the press problem, and the selling problem, is important, but it's not the only problem.

14:38They've actually got to do a bunch of things, and they're going to try to do both. But I think the message is very much still a work in progress, and it's going to take them a while to arrive on it. Well, in terms of the spaghetti, we've heard a lot of talk as well about these health insurance subsidies that are due to expire at the end of the year. The president once again touted his idea of funneling those payments directly to Americans in the form of direct payments. But is this issue going to linger when we've got a vote on extending the subsidies coming up at the beginning of next month? Yes, it will.

15:17My two cents to markets on this is that Republicans, don't look at this as a one and done. Don't look at this, what's happening this week, as a one-off. Something, there are three opportunities Republicans have in the next four months to try to do something about making the Obamacare program more affordable for people. First is this week before the end of 2025, and the Republican moderates who are agitating on this say that the week's not over and they're right. Secondly, by the end of January 2026, when government funding hangs in the balance, and the Democrats that helped end the shutdown over this issue may well decide that they have more leverage here now and we're willing to do something about it.

16:07And thirdly, in spring 2026, I'd say by March, April, the very latest, you're going to get an almost certain big, beautiful bill 2.0 that Senate Budget Chair Graham has already talked about is including Republican-only solutions to stem Obamacare costs. So, you know, they've clearly got all this in their sights. The last time the Republicans had a trifecta and tried to do something about Obamacare was 2017. They came very close but barely failed. And we'll see if they've got it in them to try it again this time. Thanks for this, Terry. Great having you back this morning after the speech. You know it was a late night for you as well.

16:49So thanks again for being here. That is Terry Haynes. He is the founder of Pangea Policy. Karen. Nathan, let's repeat some of our top stories. The U.S. has approved one of its biggest arms sales ever to Taiwan worth up to$11 billion. It includes missiles, drones and artillery systems. China's foreign ministry says it strongly opposes and condemns the sale. Australia is expanding its hate speech laws after the Hanukkah terror attack at Sydney's Bondi Beach. And police in Providence, Rhode Island have released more surveillance photos as the search for the Brown University mass shooter continues.

17:22And investors are waiting for November inflation data ahead of the opening bell. Bloomberg Economics says the consumer price index will show tariff-related inflation is peaking or has already peaked. And we have more on those stories coming up on Bloomberg Daybreak. Nathan. All right, Karen, thank you. It's now 520 on Wall Street. I want to turn to one of our other top stories of the morning. The summit underway in Brussels on backing financial support for Ukraine as the pressure is on from the U.S. to bring the war with Russia to an end. Joining us from the Belgian capital this morning is Bloomberg Daybreak Europe anchor Stephen Carroll.

17:54Stephen, good morning. There has been a lot of run-up to this summit. How crucial is it for something to get agreed to today? Good morning. Good morning, Nathan. For Ukraine, it is absolutely crucial. The financing needs the country has going into next year are not currently being met, and they need an agreement on support from the European Union to unlock, for example, IMF aid down the line and keep its war effort underway and really the lights on into next year as well. The key proposal up for debate here by European leaders is whether they can use Russian assets that are frozen in the European Union, mainly at the Euroclear clearinghouse in Belgium, to back a reparations loan for Ukraine.

18:35That's the term that they've decided on to describe it. There has been objections from Belgium to that. They fear both the financial risks, but also possibly wider risks coming from retaliation from Russia if those assets were to be seized. And over the past more than a month now, there has been an effort at a European level to convince Belgium that there is a legally sound proposal that will give them backing from other European member states if the worst were to happen on that front and there were to be a legitimate financial call on those assets in the future. Going into this meeting, we spoke to Kaya Callas, the High Representative on Foreign Affairs from the EU earlier on the programme.

19:10She told us it was a 50-50 chance. That was the chance that she'd give it that there would be a deal done today. We've heard from Germany's leader Friedrich Merz saying that he expects that this is the best option using these frozen assets to help fund Ukraine. We're talking about loans of about 90 billion euros. Vladimir Zelensky, the Ukrainian president, is in Brussels to apply pressure really to those European leaders to come to an agreement as well. We heard from the Belgian Prime Minister this morning as well. He doubled down on his opposition to this plan, warning that using the assets could be a violation of international law and may weaken the euro on international markets.

19:45It looks like a long day of negotiations here ahead. The president of the European Council has warned that they will debate over this for as long as it takes until they get an agreement. What kind of pressure, Stephen, is the European Union feeling from the United States with President Trump pressuring for the war itself to come to an end in this 20-point peace plan that's been under negotiation for weeks now? Well, I asked Kaya Callas about this this morning, and she says that, you know, where the plan is now, the Europeans, there are lots of European elements to what's being discussed. She says it concerns European security.

20:21So it needs to have the Europeans involved. They've been trying to insert themselves into the process, as we've seen these talks and the shuttling back and forth between Moscow and Washington as well. But what Kaya Callas' point was is there's as yet no indication from Russia that they are willing to concede on anything or indeed move towards a peace plan. So even if there is an agreement that's reached, whether or not Russia will agree to it and sign up is going to be a key part of this as well. But this actually ties back to the point about Russian assets. The EU knows that it needs to send a clear signal that it supports Ukraine, a signal to Russia that they can't outlast the Ukrainian efforts to resist them, and also to the US that they're doing, And this is what Kaya Kala said this morning, that they're taking very strong steps to support Ukraine as well.

21:07So it's a decision that comes down, as so much does, to money and where the money will come from. But a very important signal and issue being decided on by the European leaders gathering this morning.

21:32You 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 Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.