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

On today's podcast:
1) US envoy Steve Witkoff is traveling to Moscow to meet with President Vladimir Putin, who claimed a key Ukrainian city had fallen to Russia on the eve of talks about a potential peace plan to end his war. Putin said Russian troops had taken the city of Pokrovsk in Ukraine’s eastern Donetsk region in a video announcement posted late Monday by the Kremlin, an advance that would be Russia’s most significant on the battlefield in nearly two years. Ukraine’s Military Staff spokesman Bohdan Senyk denied its forces had lost the city in a message early Tuesday. Bloomberg isn’t able to independently verify the claims of either side. Witkoff is due to hold talks with Putin on Tuesday on the latest proposals for ending Russia’s full-scale invasion of Ukraine following negotiations between US and Ukrainian officials in Florida. Amid fears in Europe that the plan risks rewarding Russian aggression by forcing Kyiv into a deal, Ukrainian President Volodymyr Zelenskiy said the latest version “looks better” during a visit to Paris on Monday to meet with French counterpart Emmanuel Macron.
2) The White House defended the Pentagon’s handling of a September attack on an alleged drug-running boat and denied that Defense Secretary Pete Hegseth had given an order to kill everyone on the vessel, rebutting a report that had led to allegations of possible war crimes. White House spokeswoman Karoline Leavitt confirmed there were two strikes on the vessel in the Sept. 2 attack but stressed the actions were lawful amid a deadly domestic opioid crisis in the US. The comments signaled Trump continues to support Hegseth, who came under fresh scrutiny after the Washington Post reported Friday that he ordered the attack and demanded that those strikes kill everyone on board. That report led to accusations that the US military was committing war crimes in the waters off the coast of South America.
3) Almost $1 billion of leveraged crypto positions were liquidated during another sharp drop in prices on Monday that brought fresh momentum to a wide-ranging selloff. Bitcoin slid as much as 8% to $83,824 in New York, bringing its decline since early October to almost 30%. Ether dropped as much as 10% to as low as $2,719, and is down 36% over the past seven weeks. The market downturn has been even tougher on smaller, less liquid tokens that traders often gravitate toward because of their higher volatility and typical outperformance during rallies. A MarketVector index tracking the bottom half of the largest 100 digital assets is down almost 70% this year. The crypto market is on shaky ground after a weeks-long selloff that began when some $19 billion in levered bets were wiped out in early October as President Trump whipsawed markets with threats of higher tariffs, data compiled by tracker Coinglass show. That was just days after Bitcoin set an all-time high of $126,251.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, Radio News.

Speaker 2 (00:09):
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.

Speaker 3 (00:15):
Karen, we begin with the push to end the war
in Ukraine. White House Special Envoice Steve Whitcoff 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 bolash Pens.

Speaker 4 (00:32):
It's been a period of very intense diploma sieves from
very very high level, high stakes meetings ever since the
publication of President Trump's twenty eight point plan to bring
a halt to this war. And as we have heard
from President Zelenski, it does seem like the US and
Ukraine are now at least in broad agreement over the
outlines of the plan, and the two sides were able

(00:54):
to get something that's closer to what they want to see.

Speaker 5 (00:57):
It's Bloomberg's bolash Pens.

Speaker 6 (00:59):
Now.

Speaker 3 (00:59):
Ahead of Todays, Putin claimed that Russian troops have taken
over the city of Pakroftsk in Ukraine's Eastern Dawn Boss 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.

Speaker 2 (01:18):
Well 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
Lovett is confirming there was a second strike on the vessel.

Speaker 7 (01:37):
The strike, conducted on September second, 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.

Speaker 2 (01:49):
And White House spokesman Caroline Levitt says the strike was
ordered by Navy Admiral Frank Bradley, not hag set The
lawmakers are pressing for hearings on the second strike. Adam
Smith is a top Democrat in the House Armed Services Committee.

Speaker 5 (02:04):
Admiral Bradley's coming in this week to talk to us.

Speaker 3 (02:07):
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.

Speaker 2 (02:13):
Democratic Congressman Adam Smith spoke to ABC News. Rapport to
the second strike have led to accusations of war rhymes
in the Trump administration's deadly anti cartel campaign.

Speaker 3 (02:24):
Turning the markets now, Karen, Futures are higher this morning,
but stock's kicked off the month of December with losses.
The S and P five hundred fell a half percent.
Cameron Dawson is chief investment strategist at New Edge Wealth.

Speaker 8 (02:37):
If the riskiest parts of the.

Speaker 9 (02:38):
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 SMP and broader equities,
they still remain just neutral or even underweight for some investors.
So we're still in the camp that any dips are
likely to be bought rather quickly, but that doesn't mean

(03:00):
that you won't get volatility.

Speaker 10 (03:01):
Along the way.

Speaker 5 (03:02):
New Edge Well, it's Cameron Dawson.

Speaker 3 (03:03):
Now, December is historically a good month for stocks according
to CFRA since nineteen ninety The S and P five
hundred recorded its second best average price return in December.

Speaker 2 (03:13):
Well, Nathan, we are seeing some stabilization in the cryptocurrency
Marcus this morning, following yesterday's five percent sell off in Bitcoin.
Right now Bitcoin is at eighty six eight hundred dollars.
It is higher a four tenths of percent Bloomberg Intelligence,
as Mike mcgloan says, it may be heading lower though.

Speaker 8 (03:31):
Right now, Bitcoin's about fifteen percent below it's fifty fifty
week moving average. It's rolled over and the SMB five
hundred and twelve percent above it's the same moving average.
We have never had midcoin drop at this velocity since
Feature's word launched in twenty seventeen without the stock market falling,
and that might mean the bitcoin's set to steal be

(03:52):
the grinch that stole Christmas.

Speaker 2 (03:53):
Mike mcgloane with Bloomberg Intelligence, as Bitcoin could fall as
low as fifty thousand dollars before the end of the year.

Speaker 3 (04:00):
Let'sying look at some stocks to watch. Karen Shares of
Bayer are up eleven percent in Germany, the Trump administration
has urged the Supreme Court to considered the German company's
appeal targeting thousands of lawsuits blaming its Roundup weed killer
for causing cancer. Beyer inherited the weed killer and its
sixty three billion dollar acquisition of Monsanto in twenty eighteen.

(04:20):
The company has already shelled out more than ten billion
dollars in verdicts and sential its over the herbicide.

Speaker 2 (04:26):
Well Nathanamazon dot Com plans to offer deliveries of hundreds
of household items within thirty minutes in a test program
beginning in Philadelphia and its home city of Seattle. Bloomber's
John Tucker reports.

Speaker 11 (04:38):
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 thirteen
ninety nine, discounted to three ninety nine for Prime members.
Amazon has a long history of experimenting with quick delivery
from specialized urban facilities stock with inventory similar to the

(04:59):
products sold by convenience stores and pharmacies. I'm John Tucker
Bloomberg Radio.

Speaker 3 (05:04):
Okay, John, thank you. Tesla is in the spotlight as well.
This morning investor Michael Burry is betting against shares of
the ev makers, 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

(05:26):
US housing market during the two thousand and eight financial crisis.

Speaker 2 (05:29):
Nathan Warner Brothers Discovery is fielding a second round of biz,
and Bloomberg News has learned one of them includes a
mostly cash offer from Netflix. Sources a banker's for paramount
sky Dance. Comcast and Netflix worked over the long Thanksgiving
weekend on improved offers for all or part of Warner Brothers,
the parent of HBO CNN in its namesake Film Studio,

(05:51):
officially put itself up for sale in October after receiving
multiple unsolicited offers for all or part of the company.

Speaker 3 (05:58):
Certain the economy now karen just over a week away
from the fed's final policy decision of the year, and
traders are pricing in a ninety five percent chance they'll
decide on a rate cut. Kathy Jones is chief fixed
income strategistic Charles Schwab.

Speaker 12 (06:12):
I think my biggest concern is that the Fed may
is too much too soon, and cape inflation and inflation
expectations elevated, and that will give us a steper yield curve.

Speaker 3 (06:24):
It's Charles Swabs, Kathy Jones. Check the tenuere treasure yield
right now? Is it four point zero eight percent?

Speaker 2 (06:33):
I'm now for look at some of the other stories
making news in New York and around the world, and
for there we're joined by Bloomberg's Michael Barr.

Speaker 5 (06:39):
Michael, good Morning, Good morning Karon.

Speaker 6 (06:41):
The man charged with killing United Healthcare CEO Brian Thompson
is due back in court in New York City for
a hearing today. Defense attorneys for Luigi Mangioni are trying
to limit prosecutors from using key evidence that includes a
three D printed gun and purported journal writings say they
found in a backpack when they arrested him in Pennsylvania

(07:03):
last year. Homeland Security Secretary Christy nom says she's recommending
widening a travel ban on third world countries. Meanwhile, 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 the US

(07:27):
national identity. White House Press Secretary Caroline Levett at a news.

Speaker 13 (07:31):
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.

Speaker 6 (07:47):
The suspect in the shooting is an Afghan national who
came to the US in twenty twenty one. He was
granted asylum in April of twenty twenty five. President trump'sa's lawyer,
Alena Habbab, has been disqualified from serving as New Jersey's
top federal prosecutor. Federal Appeals Court said the Trump administration's
maneuvers to keep Haba in the role were contrary to

(08:09):
federal laws governing appointments. A new study finds kids who
are given cell phones before age twelve are more likely
to experience depression, obesity, and sleep struggles than those who
get phones later in life. Stanford University physician doctor Alok
Ptel says The study tracked phone usage among kids as
young as eight or nine years old.

Speaker 5 (08:30):
The longer they actually had a cell phone, the more
they were using these smartphones, the worse the potential outcomes,
the higher the risk.

Speaker 6 (08:38):
The report by the Adolescent Brain Cognitive Development Study was
published in the journal Pediatrics. Global News twenty four hours
a day and whenever you wanted with the Bloomberg News. Now,
Michael Barn, this is Bloomberg Heart.

Speaker 5 (08:50):
Thanks Michael.

Speaker 2 (08:51):
Time now for our Bloomberg Sports updating. For that, we
bring in John Stashauer.

Speaker 14 (08:56):
Thanks Keren mother By. Football figure to be a mismatch,
and it was. The Patriots are eleven and two, they've
won ten in a row. The Giants are two and eleven,
they've lost seven in a row. New England was ahead
thirty to seven by halftime, went onto the easy thirty
three to fifteen victory. A baseball free agent signing the
release pitcher Devin Williams pitched last season for the Yankees.
He'll now pitch for the Mets. Signed a three year

(09:17):
deal for fifty one million. Mark Steub's longtime coach at
Kentucky fired. The Wildcats are aiming to hire Oregon offensive
Cornder will Stein. That's a Bloomberg Sports update.

Speaker 5 (09:29):
Stay with us.

Speaker 2 (09:30):
More from Bloomberg day Break coming up after this.

Speaker 1 (09:37):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app.

Speaker 5 (09:45):
This is Bloomberg Daybreak. Good morning on Nathan Hager Shuttle.

Speaker 3 (09:49):
Diplomacy continues in the push to end the war in Ukraine.
This morning, US Envoy Steve Witkoff is set to meet
with Russian President Vladimir Putin on the latest peace plan.
White House Press Secretary Caroline Levy it says the administration
is optimistic.

Speaker 15 (10:02):
The President's entire team, including Special Envoy Witkoff and Secretary
Rubio and the Vice President and the President himself Secretary
Haig Seth as well, have been working so hard on
this effort and they all really want to see this war.

Speaker 2 (10:16):
Come to an end.

Speaker 3 (10:16):
Press Secretary Caroline Levitt at the White House joining us
now as Bloomberg News Russia team leader Tony Haupin. Tony,
it's great to speak with you this morning after we
heard from Ukraine's President Vladimir Lensky saying the latest plan
looks better after a weekend talks in Florida. Do we
have any indication that Russia is going to feel the
same way?

Speaker 10 (10:36):
Good morning. Yes, Well, we have Steve Wikoff, 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 proposals set out that he's seen from the US
could be the basis for future negotiations and agreements. But

(10:58):
since he says there's no final yet, he can't give
a clear answer on that. Still, we haven't seen any
signs so far that he's ready to roll back any
of Russia's demands in regards to Ukraine.

Speaker 3 (11:09):
And in the midst of this, we've gotten reports from
Putin himself ahead of these talks that Russia's taken over
the eastern Danbas city of Percrafts. Do we have any
confirmation that that has indeed happened.

Speaker 10 (11:24):
No, I mean, Ukraine in fact denies that that's the case,
that his forces have lost the city. It's been contested
for many months. There's certainly no doubt that Russian forces
are in the city of Percross, but whether they've succeeded
in taking it fully yet we don't have confirmation on
That's one of the issues for Pusin. Of course, he
wants the whole of that eastern the next region of Ukraine,

(11:45):
and Cross 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.

Speaker 2 (11:53):
Now.

Speaker 3 (11:53):
I guess that raises a question as well about whether
that would bring the original twenty eight point plan that
apparently was hammered out between the US and Russia, whether
that could come back into play now that seems unlikely.

Speaker 10 (12:09):
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 being hammered down
to nineteen I think currently, and that seems to be
the basis on which Ifter Wikoff will be talking with
President Putin later today.

Speaker 3 (12:29):
So it's going to be a Steve Witcoff, 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

(12:49):
a point person to some extent with Ukraine.

Speaker 10 (12:53):
I mean, yes, that's an interesting dynamic. As you say,
Steve Witkoff and Kremlin Envoy Dimitri I have struck up
some kind of relationship that seems to mean that Russia
is comfortable in talking with mister Whidcoff and sexuar Estate
Rubio is clearly someone of the Ukraine feels that they
can negotiate directly and frankly with. But this is one

(13:17):
of the issues. I think that the US 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 the day
is obviously something we're closely watching.

Speaker 2 (13:33):
This is Bloomberg Daybreak, your morning podcast and the stories
making news from Wall Street to Washington and beyond.

Speaker 3 (13:40):
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Speaker 5 (14:18):
I'm Karen Moscow and I'm Nathan Hager.

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Join us again tomorrow morning for all the news you
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