US Offers Ukraine Security Guarantee; Brown University Shooter Remains at Large

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.

0:37So 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 the latest on the effort to end the war in Ukraine. Ukrainian President Volodymyr Zelensky says he has an agreement with the U.S. to make security guarantees legally binding through a vote in Congress as part of a deal to end the war with Russia. Zelensky expects the U.S. to consult next with Russia, while Ukrainian negotiators may return to America for weekend talks. President Trump says the conflict is nearing resolution. I think we're closer now, and they will tell you that they're closer now.

1:45We had numerous conversations with President Putin of Russia, and I think we're closer now than we have been ever. President Trump made those remarks after he talked to a gathering of European leaders yesterday hosted by German Chancellor Friedrich Merz. Now to the latest on the death of actor-director Rob Reiner. Nathan, the Hollywood icon's son, is being held this morning in the stabbing deaths of his father and mother, Michelle Singer Reiner, in their Brentwood home. Here's Los Angeles Police Chief Jim McDonnell. Nick Reiner, a suspect in this case, he was subsequently booked for murder and is being held.

2:22L.A. Police Chief Jim McDonnell says prosecutors will decide charges for Nick Reiner later today. He's being held without bail. Rob Reiner's death has led to an outpouring of tributes in the entertainment and political worlds. Reiner was a longtime donor to Democratic and liberal causes. President Trump is reacting to Reiner's death with scorn. I wasn't a fan of his at all. He was a deranged person as far as Trump is concerned. President Trump spoke after he claimed on social media that Reiner died of, quote, Trump derangement syndrome. That sparked backlash from some of the president's fellow Republicans.

2:56against conservative commentator Eric Erickson drew parallels with Republican calls for civility after the death of Charlie Kirk. Meanwhile, Karen, the manhunt continues this morning for the shooter in the mass shooting at Brown University. The shock over the rampage that killed two students and wounded nine others is giving way to frustration over the investigation. A person of interest who was detained over the weekend has been released, and police in Providence, Rhode Island, have yet to name any new suspect since. Talia Levine is a student at Brown. Overall, the sentiment among students has just been deep-rooted distress and fear that this could happen in a place that we consider so safe in our home.

3:37Brown student Talia Levine spoke as police released three more videos and two photos of a suspect wearing dark clothing, a cap, and a face mask. Here's Rhode Island Governor Daniel McKee. We want to make sure that all Rhode Islanders know that everything is physically possible, is being done and partnering in with our federal, the FBI, our state law enforcement, and also the local law enforcement to bring an individual and identify and bring that person to justice. Governor Daniel McKee and other officials have said there's no clear security camera footage from the building where the shooting took place, and that has hampered the search.

4:13The FBI is offering$50 ,000 for information that leads to an arrest and conviction. Well, Nathan, let's get the latest now on the terror attack in Australia. Authorities say early indications point the attack which killed at least 15 people at a Bondi Beach Hanukkah celebration was inspired by the Islamic state. We get more on the information on the father and son attackers from Bloomberg's Angus Whitley in Sydney. They did travel to the Philippines last month, though it's not clear what they did there or where specifically they went. But they have found two homemade ISIS flags in a car they suspect belong to the two gunmen.

4:50And that's pretty much all they're willing to say. In the update, in the press conference this afternoon, they were really bombarded and swamped with questions because there's so many unanswered questions about the response to anti-Semitism, about the police presence there. Was it heavy enough? Was security heavy enough? And Bloomberg's Angus Whitley says Labour Prime Minister Anthony Albanese rejected criticism of his handling of escalating attacks while urging Australians to rally around the Jewish community. Well, Karen, the U.S. military has attacked three more alleged drug boats, killing a total of eight people.

5:27U.S. Southern Command says the strikes were carried out in the Eastern Pacific at the direction of Defense Secretary Pete Hegseth. The operation has raised questions about whether the strikes violate international law and whether the boats were actually carrying fentanyl. Nathan, President Trump is suing the BBC for at least$10 billion over what he claims was a misleading edit in their documentary last year. The edit gave the impression the president made a direct call for violence in a speech ahead of the attack on the U.S. Capitol on January 6, 2021. Bloomberg's UN Potts reports from London.

5:59Donald Trump's defamation lawsuit against the BBC was filed yesterday in federal court in Miami. The U.S. president says he's suing the broadcaster for, quote, putting words in my mouth. The Panorama documentary made it appear that Trump told his supporters they should walk down to the Capitol and fight like hell. In fact, he said they should cheer on our brave senators and congressmen and women. The fight like hell remark was from a much later part of the speech. Trump's lawyer claims the incident is part of the BBC's longstanding pattern of manipulating President Trump's speeches. The BBC has previously apologised to the president but rejected his demands for compensation, saying there is no basis for a defamation claim.

6:41In London, I'm Ewan Potts, Bloomberg Radio. Okay, Ewan, thank you. Let's turn now to the markets and the economy. Futures are lower ahead of some key economic data. A long-awaited November jobs report that was not released on time due to the government shutdown finally comes out this morning. And we get a preview now from Bloomberg's Michael McKee. This jobs report will be a bear for investors accustomed to making snap trades when the data are released. The usual bet is on the change in jobs and unemployment compared with expectations and the last release. But the last payrolls data we have is from September and will only get half of the October release.

7:17The household survey with unemployment figures will be missing because the data couldn't be collected. Add to that uncertainty about government employment after Doge firings and the government shutdown, that'll make analyzing the combined two-month report difficult. Well, still, it will be data, and it will get a lot of attention on Wall Street, although the Fed will likely put much more weight on this month's numbers, reported on January 9th. Michael McKee, Bloomberg Radio. All right, Michael, thank you. In company news, Ford Motor Company is taking$19.5 billion in charges as it pulls back sharply from electric vehicles.

7:51The company says it overbuilt battery capacity and underestimated how hard it would be to make EVs profitable. As part of the shift, the automaker is canceling a planned electric F-series truck while shifting production toward gas and hybrid vehicles. Ford CEO Jim Farley spoke to Bloomberg. It was really the customer changing their decision. You know, we saw hybrids really take off last couple of years, like, you know, last month about, well, we had a 30 percent increase in our hybrid sales. We're now number three in our, I think we're 80 percent hybrid market share in trucks. So we saw this happening.

8:26We also saw the more expensive EVs, you know, really suffer in the market and the more affordable EVs to do better. Ford CEO Jim Farley notes that the EV unit lost$5.1 billion last year with more red ink expected in 2025. Still, Ford raised its profit outlook saying cost cuts and a shift in more profitable vehicles are paying off. Get the full conversation on the Bloomberg Podcast channel on YouTube. Karen, the Nasdaq's looking to extend trading hours on its stock venues to 23 hours a day during the work week. The firm has asked the Securities and Exchange Commission for permission to add an additional trading session from 9 p.m.

9:04to 4 a.m. Eastern Time. Other exchanges have also outlined their own paths to extend trading hours on their venues, including the New York Stock Exchange, which plans to offer 22 hours a day of trading. Nathan, a bipartisan group of senators is making a long-shot bid to break a stalemate over health care subsidies, while also acknowledging that time has run out to pass legislation before the credits expire at the end of the year. The political uncertainty surrounding the future of the COVID-era subsidies complicates matters for millions of consumers facing out-of-pocket costs doubling or more if lawmakers can agree on a path forward.

9:40The current open enrollment period expires January 15th. 15th, House Minority Leader Hakeem Jeffries slammed his GOP colleagues for refusing to extend the credits. From the very beginning, Republicans have made their intentions clear. They don't want to see the Affordable Care Act tax credits extended because they don't support providing affordable health care to everyday Americans. House Minority Leader Hakeem Jeffries, Republican Senator Susan Collins, who's part of the bipartisan talk, says a vote could happen as soon as early next year. She says that could trigger a new or expanded open enrollment period for the Obamacare exchanges.

10:21Time 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. Hedge fund billionaire Stephen Cohen is among those winning formal approval to open casinos in New York City. That story this morning from Bloomberg's Charlie Pellett. It marks the first time in the city's modern history that full-scale gambling parlors will operate legally in the five boroughs. The decision by the New York State Gaming Commission culminates a decade-long process to allow as many as three new casinos to be built in the city and its surrounding suburbs.

10:57That sets the stage for two projects in Queens and one in the Bronx. State officials have estimated gaming revenue from the three casinos could reach$5.5 billion by 2033. In New York, Charlie Pellett, Bloomberg Radio. Leading Jewish groups in the United States are urging all Jewish organizations to increase security measures at public events as follows the deadly mass shooting in Australia. The AP says the groups advise that Jewish public events should be open only to people who have been screened after pre-registering. President Trump says he's reclassifying fentanyl in his latest push to ratchet up pressure on Latin America over drug trafficking.

11:36The Trump administration weighed a similar designation in the president's first term, which would allow the Department of Homeland Security to access money for detecting and eliminating weapons of mass destruction. The Trump administration said in a court filing yesterday that the president's White House ballroom construction project must continue for unexplained national security reasons. The administration also says the preservationist organization that wants to stop it has no standing. The filing was in response to a lawsuit filed last Friday by the National Trust for Historic Preservation.

12:10Global 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 Stashauer. Thanks, Karen. Pittsburgh Steelers were down 3-0, then scored 28 straight points. and the Steelers beat the Dolphins in Monday Night Football 28-15. Aaron Rodgers, a couple of touchdown passes. Pittsburgh scored three TDs in a 13-minute span of the second half. At 8-6, they lead the Ravens by one game. NBA and Utah, the Jazz beat the Mavs in overtime, but the Dallas rookie Cooper Flagg scored 42 points.

12:45He's 18 years old. He's the youngest in NBA history to score 40. The Knicks play the Spurs tonight in Las Vegas for the NBA Cup. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this.

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14:07Coast 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. An end to the war is closer than ever before. That's what President Donald Trump is saying after the latest talks between U.S., Ukrainian and European negotiators on resolving the conflict with Russia. Ukrainian President Volodymyr Zelensky says he has an agreement with the U.S. on security guarantees, but the issue of territory remains a sticking point. Of course, not all aspects are simple. There are complicated things, in particular the topic of territories.

14:46Undoubtedly, everyone is raising this topic, and it's important that we all work to ensure that things like that are absolutely fair. And that was Ukrainian President Vladimir Zelensky speaking through an interpreter from Berlin. Joining us from Brussels this morning is Bloomberg Senior Europe Correspondent Oliver Crook. And Ali, not to put you on the spot, but is Ukraine closer than ever to a deal after these talks? Good morning. Good morning. Yeah, I mean, quite possibly they're closer than ever, but they've never really been close. So it may not be saying quite as much as the president has been saying.

15:13That being said, I think that the main thing that's changed over the last couple of weeks is the United States talking so openly and I think probably in greater detail about what a security guarantee for Ukraine would look like backed by the United States. For Zelensky, as far as he's concerned, these security guarantees are absolutely essential because it's one thing to have a ceasefire. It's one thing to end the war. But what good is that if you're just going to get reinvaded in two to three years? So for him, it's really about creating an architecture and a mechanism by which if there is an invasion ever in the future, there is something there that is triggered that actually prompts action from NATO.

15:48And what they want is these Article 5-like guarantees. The Article 5 within the NATO clause is the one that is an attack on one, is an attack on all. And the idea is there would be some sort of triggering mechanism that would enlist the efforts of NATO immediately, unlike what happened in 2022, if ever there is another invasion. We should say that we do not have a clear expression of what Article 5-like actually means, but we do understand that they won this from the United States and that there would be Congress that would also enshrine this into law. And, of course, that's super important to the Ukrainians because they did have the Budapest Memorandum back in 1994 when the Ukrainians surrendered their nuclear arms, that massive deterrent, in order to preserve their sovereignty that was guaranteed by the U.S.

16:28and the Russians. That, of course, was violated. I guess this puts the onus now or the attention on how Russia could respond to this. Of course, Russia has been adamant against Ukraine joining NATO. But what about the idea of an Article 5-like provision for Ukraine? Is that something that Russia potentially could be on board with? So potentially, I mean, it depends how it's defined. Of course, the Article 5-like status of it from a defensive perspective is just, you know, the U.S. would say, why would you care, Russia, if, you know, your intention is not to further invade Ukraine? Then this should be something that doesn't bother you.

17:03What will bother the Russians, and this is why it will not be a member of NATO Ukraine, that is, is they do not want to have NATO to have free access to go into Ukraine to send troops, to send hardware at kind of whatever level they sort of desire to. They also don't want Ukraine to get a seat at the table at this sort of NATO table in terms of governing policy. Potentially, there is a way forward, but we should say that NATO is, you know, potentially the initial sort of instigating reasoning for the invasion of Ukraine that the Russians have put forward, saying that it's one of these sort of real reasons that they felt that NATO expansionism was really a threat to Russia.

17:38So this is a very delicate question, a very delicate balance to reach. But again, the United States feels pretty confident that they understand both the positions of the Ukrainians and are trying to bridge it. Just 30 seconds left, Oli. What about the territory issue? That does seem like it's still a pretty big sticking point. I think it's still the number one issue. It's still obviously a main contention point for the Russians and the Ukrainians. The Ukrainians have said they basically will not give up any additional territory to the Russians, though the Ukrainians seem to have potentially softened a little bit on that.

18:06The Russians, for their part, say they don't even want to have a discussion about a ceasefire, let alone a peace agreement, without the entirety of the Donbass being donated to the Russians and surrendered in some way. Again, the Americans are trying to sort of fudge that and define a free economic zone, demilitarized zone, for example. but they have not found an agreement on that quite yet. 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. Eastern each morning on Apple, Spotify, or anywhere else you listen.

18:36You 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.

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