US Envoy Witkoff Heads to Moscow; White House Defends 'Second Strike'

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.

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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 the push to end the war in Ukraine. White House Special Envoy Steve Witkoff is in Moscow today. He is set to meet with Russian President Vladimir Putin to discuss the latest proposal to end the fighting after weekend negotiations with Ukrainian officials in Florida. We get more from Bloomberg's Baloch Pens. It's been a period of very intense diplomacy, some very, very high level, high stakes meetings ever since the publication of President Trump's 28 point plan to bring a halt to this war.

1:44And as we have heard from President Zelensky, it does seem like the U.S. and Ukraine are now at least in broad agreement over the outlines of the plan and the two sides were able to get something that's closer to what they want to see. That's Bloomberg's Balazh Pans. Now ahead of today's talks, Putin claimed that Russian troops have taken over the city of Pokrovsk in Ukraine's eastern Donbass region. Ukraine's military denies it and says the fighting is still ongoing in the city. Bloomberg News is unable to verify either claim. A takeover would be Russia's most significant battlefield advance in nearly two years.

2:18Well, Nathan, a military strike on this side of the world is continuing to draw scrutiny. Now the White House is defending Defense Secretary Pete Hegseth following a Washington Post report that he ordered everyone killed on a suspected drug running boat in the Caribbean. White House Press Secretary Caroline Leavitt is confirming there was a second strike on the vessel. The strike conducted on September 2nd was conducted in self-defense to protect Americans in vital United States interests. The strike was conducted in international waters and in accordance with the law of armed conflict. And White House spokeswoman Caroline Leavitt says the strike was ordered by Navy Admiral Frank Bradley, not Hegseth.

2:56set. The lawmakers are pressing for hearings on the second strike. Adam Smith is the top Democrat in the House Armed Services Committee. Admiral Bradley's coming in this week to talk to us. That's, I think, where we're going to first get the information. And then I think we should go higher up the chain of command. Democratic Congressman Adam Smith spoke to ABC News. Reports of the second strike have led to accusations of war crimes in the Trump administration's deadly anti-cartel campaign. Turning to markets now, Karen, Karen, futures are higher this morning, but stocks kicked off the month of December with losses.

3:31The S &P 500 fell a half percent. Cameron Dawson is chief investment strategist at New Edge Wealth. If the riskiest parts of the market are starting to show a bit more risk off tone, it raises questions about an equity market that's trading at very high valuations. But we would note that if you look at positioning metrics for the S &P and broader equities, they still remain just neutral or even underweight for some investors. So we're still of the camp that any dips are likely to be bought rather quickly, but that doesn't mean that you won't get volatility along the way. New Edge Wealth's Cameron Dawson.

4:04Now, December is historically a good month for stocks. According to CFRA, since 1990, the S &P 500 recorded its second best average price return in December. Well, Nathan, we are seeing some stabilization in the cryptocurrency markets this morning following yesterday's 5 % sell-off in Bitcoin. Right now, Bitcoin is at$86 ,800. It is higher, up four-tenths of a percent. Bloomberg Intelligence's Mike McGlone says it may be heading lower, though. Right now, Bitcoin's about 15%, below its 50-week moving average. It's rolled over. And the S &P 500 is 12 % above its same moving average. We have never had Bitcoin drop at this velocity since futures were launched in 2017 without the stock market falling.

4:48And that might mean the Bitcoins are set to still be the Grinch that stole Christmas. Mike McGlone with Bloomberg Intelligence says Bitcoin could fall as low as$50 ,000 before the end of the year. Let's take a look at some stocks to watch, Karen. Shares of Bayer are up 11 % in Germany. The Trump administration has urged the Supreme Court to consider the German company's appeal, targeting thousands of lawsuits blaming its Roundup weed killer for causing cancer. Bayer inherited the weed killer in its$63 billion acquisition of Monsanto in 2018. The company has already shelled out more than$10 billion in verdicts and scintillants over the herbicide.

5:26Well, Nathan, Amazon.com plans to offer deliveries of hundreds of household items within 30 minutes in a test program beginning in Philadelphia and its home city of Seattle. Bloomberg's John Tucker reports. Those household items include some fresh groceries and over-the-counter medicines. The company says it will use specialized smaller facilities for the deliveries. The fee will start at$13.99, discounted to$3.99 for Prime members. Amazon has a long history of experimenting with quick delivery from specialized urban facilities stock with inventory similar to the products sold by convenience stores and pharmacies.

6:02I'm John Tucker, Bloomberg Radio. Okay, John, thank you. Tesla is in the spotlight as well this morning. Investor Michael Burry is betting against shares of the EV maker, saying they are, quote, ridiculously overvalued, end quote. Burry is also warning that Tesla CEO Elon Musk's proposed trillion-dollar pay package would worsen shareholder dilution. Burry, you may recall, is best known for correctly betting against the U.S. housing market during the 2008 financial crisis. Nathan Warner Brothers Discovery is fielding a second round of bids, and Bloomberg News has learned one of them includes a mostly cash offer from Netflix.

6:38Sources say bankers for Paramount, Skydance, Comcast and Netflix worked over the long Thanksgiving weekend on improved offers for all or part of Warner Brothers. The parent of HBO, CNN and its namesake film studio officially put itself up for sale in October after receiving multiple unsolicited offers for all or part of the company. Let's turn to the economy now, Karen. We are just over a week away from the Fed's final policy decision of the year and traders are pricing in a 95 percent chance. they'll decide on a rate cut. Kathy Jones is chief fixed income strategist at Charles Schwab. I think my biggest concern is that the Fed may ease too much too soon and keep inflation and inflation expectations elevated, and that will give us a steeper yield curve.

7:24It's Charles Schwab's Kathy Jones checking the 10-year Treasury yield right now. It is at 4.08%.

7:32percent. 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. The man charged with killing UnitedHealthcare CEO Brian Thompson is due back in court in New York City for a hearing today. Defense attorneys for Luigi Mangione are trying to limit prosecutors from using key evidence. That includes a 3D printed gun and purported journal writings police say they found in a backpack when they arrested him in Pennsylvania last year. Homeland Security Secretary Kristi Noem says she's recommending widening a travel ban on third world countries.

8:12Meanwhile, after the shooting of two National Guard troops last week in Washington, D.C., the White House says it will pause asylum applications, among other forms of legal immigration. The Trump administration talked about deporting those who don't align with U.S. national identity. White House Press Secretary Caroline Levitt had a news briefing. I'll tell you what does not add to our nation's character and integrity is refugees who come here under the alleged plight of asylum and fleeing persecution and then come to the United States to abuse our system and rip off American taxpayers. The suspect in the shooting is an Afghan national who came to the U.S.

8:51in 2021. He was granted asylum in April of 2025. President Trump's ex-lawyer, Alina Habba, has been disqualified from serving as New Jersey's top federal prosecutor. The federal appeals court said the Trump administration's maneuvers to keep Habba in the role were contrary to federal law's governing appointments. A new study finds kids who are given cell phones before age 12 are more likely to experience depression, obesity, and sleep struggles than those who get phones later in life. Stanford University physician Dr. Alok Patel says the study tracked phone usage among kids as young as 8 or 9 years old.

9:30The longer they actually had a cell phone, the more they were using these smartphones, the worse the potential outcomes, the higher the risk. The report by the Adolescent Brain Cognitive Development Study was published in the journal Pediatrics. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. Monday Night Football figured to be a mismatch, and it was. The Patriots are 11-2. They've won 10 in a row. The Giants are 2-11.

10:03They've lost 7 in a row. New England was ahead 30-7 by halftime. Went on to the easy 33-15 victory. A baseball-free agent signing relief pitcher Devin Williams pitched last season for the Yankees. He'll now pitch for the Mets. Signed a three-year deal for$51 million. Mark Stoops, longtime coach at Kentucky, fired. The Wildcats are aiming to hire Oregon offensive coordinator Will Stein. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. I'm Carol Masser. And I'm Tim Stenevec, inviting you to join us for the Bloomberg Business Week Daily Podcast.

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11:42Coast 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. Shuttle diplomacy continues in the push to end the war in Ukraine. This morning, U.S. Envoy Steve Whitcoff is set to meet with Russian President Vladimir Putin on the latest peace plan. White House Press Secretary Caroline Levitt says the administration is optimistic. The president's entire team, including Special Envoy Whitcoff and Secretary Rubio and the vice president and the president himself, Secretary Hegseth as well, have been working so hard on this effort, and they all really want to see this war come to an end.

12:22Press Secretary Caroline Levitt at the White House. Joining us now is Bloomberg News Russia team leader Tony Halpin. Tony, it's great to speak with you this morning after we heard from Ukraine's President Vladimir Zelensky saying the latest plan looks better after weekend talks in Florida. Do we have any indication that Russia is going to feel the same way. Good morning. Yes, well, we have Steve Witkoff, as you say, having his sixth meeting this year with President Vladimir Putin in Moscow. He's due to arrive later this afternoon, Moscow time. Putin has signaled an openness to talks. He said that the proposal set out that he's seen from the U.S.

13:00could be the basis for future negotiations and agreements. But since he says there's no final version yet, he can't give a clear answer on that. Still, we haven't seen any He's signed so far that he's ready to roll back any of Russia's demands in regard to Ukraine. And in the midst of this, we've gotten reports from Putin himself ahead of these talks that Russia has taken over the eastern Donbass city of Pokrovsk. Do we have any confirmation that that has indeed happened? No. I mean, Ukraine, in fact, denies that that's the case, that its forces have lost the city. It's been contested for many months.

13:36There's certainly no doubt that Russian forces are in the city of Pocroska, but whether they've succeeded in taking it fully yet, we don't have confirmation on. That's one of the issues for Putin, of course. He wants the whole of that eastern Donetsk region of Ukraine, and Pocroska has been one of those contested cities. It's not the only one. It's still an issue, clearly, for discussion at the negotiating table. I guess that raises a question as well about whether that would bring the original 28-point plan that apparently was hammered out between the U.S. and Russia, whether that could come back into play now.

14:13That seems unlikely. It was so vehemently rejected by both Ukraine and Europe. There were many points in that that Kiev has repeatedly refused to accept. So the points have been hammered down to 19, I think, currently. And that seems to be the basis on which Mr. Witkoff will be talking with President Putin later today. So it's going to be Steve Witkoff, as you say, his sixth visit to Moscow. In the meantime, Secretary of State Rubio has been in talks with Ukrainian officials. Should we read anything into the fact that it's Witkoff as a point person with Russia and Secretary Rubio apparently is a point person to some extent with Ukraine?

14:58I mean, yes, that's an interesting dynamic. As you say, Steve Witkoff and Kremlin envoy Kirill Dmitriev have struck up some kind of relationship that seems to mean that Russia is comfortable in talking with Mr. Witkoff. And Secretary of State Rubio is clearly someone that Ukraine feels that they can negotiate directly and frankly with. But this is one of the issues, I think, that the U.S. still needs to get both sides to agreement on a common piece of paper. and so far we don't see that that's appearing. And whether it does at the end of today is obviously something we're closely watching. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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16:23I'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.

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