>> welcome to "bloomberg markets ." i'm scarlet fu. s&p 500 up almost 2% on the day as we arrive at midday here in new york. looking at a reversal of the post-fed soft in stocks and bonds, triggered by the central bank's forecast for fewer cuts next year. even with this recovery in equities, still looking at a decline of more than 1% for the s&p 500 this week, down 1.2%.

yields lower for the first time in about two weeks, at least for the 10 year. the bloomberg dollar index losing 0.6%. this looks like the biggest decline this month. bitcoin bouncing around, basically unchanged, but notable it has not traded above $100,000 so far today. let's turn to the u.s. economy. san francisco fed president mary daly spoke to bloomberg television earlier today to share her views. >> in the economy reigns in a good place, and the risks to the outlook are equally balance between a risk to inflation and a risk to employment. that is where we wanted our goals to be an adjusted policy when we had confidence in place and adjusted policy more to ensure we had a balanced labor market that continues. that's where we are. then the data on inflation have been coming in a little slower. i would not even say sticky or stall, the progress has just slowed relative to what we wanted.

but that is a typical pattern. it's bumpy as you get from 2.5 to 2.8 to 2. scarlet: new flaking data showed prices rising slightly less than what economists forecast. bloomberg's michael mckee with us now. inflation front and center again. the november prints look like they improved. in terms of the levels, are they where they need to be? michael: they are not where they need to be yet, but they are getting closer. it is not a surprise because the economists were able to tackle it with this would be beforehand, but we did get just a 0.1% again -- gain. it showed progress, the kind of progress the fed is looking for, and that may be why we got this rally in the markets today. we had mary daly and john williams spoke and austan goolsbee spoke. they do not say anything

different from what we heard previously, that the focus was on inflation. now inflation comes down a little bit, so everybody's thinking, ok, maybe things are not as bad as we thought wednesday. scarlet: the market focuses on core pce because that is what the fed likes to use, because there's a lot of volatility in food and energy prices. by jay powell did clarify the fed does pay attention to the headline number, in a big way. michael: there target is officially the headline number, but they know it is driven a lot by food and energy. what is interesting is energy prices came down and food prices went up this time. if food prices level out and the department of agriculture has lowered its food price inflation forecast for the year -- that came out today as well -- if food prices come down, energy prices stay down, then we see a much better headline number, and it could move more quickly to 2%. if core stays elevated, do they all of a sudden declare victory

and go home, or do they wait until that comes down as well? we have to wait to see. scarlet: this is a pretty cautious fed, so i'm guessing everyone will wait until it is really clear. we also got personal. income and spending numbers. what was the take away? michael: in terms of the income numbers, we had lower overall than anticipated,.3 gain, but wages and salaries went up 6/10 the most in six months. so we saw strength for wage earners. look at we offer interest income. you also got a high number. for dividends, dividends were down. if you held equities, he did not do so well in november. but if you had bonds, you made money. if you were salaried, you made money. we went out and spent a little less than we had been spending in terms of the spending numbers, but it did not affect gdp. the atlanta fed gdp unchanged,

3.1%. still a very strong economy. scarlet: michael mckee, thank you. bloomberg's michael mckee are international economics and policy -- let's turn to the battle in washington. lawmakers are working to avoid a shut down by midnight. the blame game appears to be consistent on capitol hill. >> it was just last spring that these same democrats paraded republicans and said it was irresponsible to hold the debt limit, the debt ceiling hostage. what changed? i think it is really irresponsible for us to risk a shut down on these issues and things they already agreed to. we will regroup and come out with another solution. >> we arrived at a bipartisan legislative compromise. senate democrats, senate republicans, house democrats, house republicans. everybody agreed, and then it

was blown up by elon musk, who apparently has become the leader of government. who is hakeem jeffries supposed to negotiate with? mike johnson or donald trump or elon musk or someone else? scarlet: joining us now from washington, d.c. is our own michael sheppard. we heard from the speaker of the house, and he says stay tuned, we are working on an alternative solution or package to address the funding situation now. the wildcard is elon musk, who has been tweeting left, right, and center, most recently saying either the government should pass sensible bills that serve the people or shut it down. two what extent is he calling the shots in congress is just in his wake? michael s.: that is a great question, because calling the shots implies he is actually involved somehow in the negotiations. from what we can tell, he is working more from the outside, criticizing what lawmakers are

doing, and perhaps not offering as substantive in the room input as lawmakers try to pull together. plan c, really. we saw plan b fall apart last night with democrats united in their foot against it, joined by 38 republicans who crossed party lines and defied johnson's attempt to get a bill through that would terrify both elon musk -- that would satisfy both elon musk's concerns and president-elect trump's that it did not do enough, the head -- that it had too much extra funding, and also missed the opportunity to raise the u.s. debt limit, which snaps back into place january 1. scarlet: but the debt limit does not need to be part of this funding bill, does it? this is something donald trump waded in, you could say at the 11th hour. michael s.: you are right.

lawmakers come on paper, have a lot of time. even though technically the debt ceiling back into place at the start of the year, the treasury department has been able to use extraordinary measures, a technical term the treasury applies to the way it manages u.s. government borrowing, so it has cushion to avoid a default. but we have gotten close to that in recent years. you will remember, back in june 2020 three, the bidder negotiations the last time we had to confront the question of the u.s. borrowing limit. it ran all the way to the brink. we were within days of what would have been a historic default. these were messy negotiations. it really upset the apple cart on wall street. we have not seen the effect in the markets yet, but if this drags out, it could alter some challenges for donald -- it could augur some challenges for donald trump. scarlet: and 38 republicans

pushing back against president-elect trump with the plan b bill not passing. what will you be watching for this afternoon? that midnight deadline is coming up soon. michael s.: we will be watching those rooms on capitol hill, where, behind closed doors, lawmakers are trying to hammer out something that would satisfy so many different needs. not only those of the president-elect and elon musk, who have really weighed in in such public fashion against previous iterations of this legislation, but also the republicans and democrats in congress who have to vote on it, and mike johnson has to figure out a way to get enough votes to get this through. it is unclear whether he will try to do it all in one fell swoop, one package, or it will be a series of votes on different pieces of it. all this remains up in the air. we are seeing a lot of reporting on how the sequence might go through, but a lot of it has not been confirmed just yet. we will be watching closely,

what our teams on capitol hill turning up with their reporting, and we could see a vote as soon as tonight, or it may be kicked into the weekend, and we could enter into a technical shutdown of the u.s. government. scarlet: michael shepard, senior editor for us at bloomberg news. in washington. if you are wondering where the democrats are, the white house press secretary's briefing reporters, saying president biden did speak with the democratic leaders of the house and senate, schumer and jef fries, so presumably there is some discussion going on now on how to keep the government funded past the midnight deadline. president trump did run on a platform -- an investigation shows u.s. come at his have pumped the brakes on hiring black employees. the share of black workers in s&p companies have declined.

gains in 2020 have almost been erased, and for more on this, we are joined by jeff green. he covers gei in business for bloomberg news. jeff, can you share how you got this data, how you were able to put this data together? jeff: this is dated the company's report to the federal government every year. if you have more than 100 employees, you have two report it. companies, more or less, give us this information, and we take that and try to compare it over time. we managed to have 84 companies this time, looking at 2020 to 2023. this is our first attempt to see what happened after 2021, when companies seemed to respond and hire more black workers. what happened as it went forward? what we are seeing is 2023 was

not a good year for black workers. scarlet: their share of black workers in s&p 100 companies have fallen from a high of 17%. that is a decline, but it is a pretty small percentage change, isn't it? jeff: yeah, but in these kind of data, you do not expect is a huge changes. it is more the momentum. the momentum had been going in one direction, now it definitely slowed and is going in a direction where many -- maybe people did not want to see it go. the question is what will change this? the focus after 2020 was to help black workers get a bigger share of the workforce, and that seems to have hit a wall. scarlet: so i will ask the obvious, which is why is the share of black workers declining? i know they data you get does not give that explanation, but in talking to experts and folks at companies, what have you learned? jeff: it is complicated. everybody does believe the backlash against di is part of

--d.e.i. as part of the problem. but these were workers who were hired in 2021, so they were new. when companies did these layoffs in 2023, last hired, first fired really hurts people of color disproportionately. the return to also disproportionally can hurt people of color, where maybe companies were able to hire in more diverse areas of the country, but those people will not be able to rule -- to relocate to less diverse areas. it does seem the backlash against d.e.i. in the reduction of d.e.i. staffing played a certificate -- significant role. scarlet: and we cannot forget the supreme court action banning affirmative action at colleges causing a lot of companies to take a second look at their policies. bloomberg's jeff green covers d.e.i. for bloomberg news.

eli lilly shares are rising after a disappointing trial from one of its main competitors. that is our stock of the hour. as we look at the market overall, gains in the s&p of 1.8 percent, right around session highs, as we see a bit of a reversal from wednesday's post selloff. this is bloomberg. ♪ to go further, you need to be ready for what's down the road. as energy demand continues to rise,

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scarlet: this is "bloomberg markets." i'm scarlet fu. let's get to midday movers in equities. shares of fedex rising as much as 7% after the delivery company says it plans to spin off its freight division into a

separately listed company. this new business could have an enterprise value of at least $30 billion. shares of nike currently bouncing around as the sportswear giant outlined its turnaround plan to revise growth. their new ceo but long time veteran cautioning those efforts may hurt results at least in the short term. kelce advisory downgraded nike to perform, but others remain optimistic about the company's recovery potential. carnival rallying 6%. novo nordisk following the most on record. a failed event to leapfrog eli lilly in the market because of novo's experimental obesity shot missing the target. that brings us to the stock of the hour is eli lilly. for more on this, we are joined by jared holz, managing director

at mizuho securities. the result of this experimental drug by novo nordisk missed the target, but not by a lot. is is a proportional response by eli lilly to the novo nordisk news? jared: there is so much complexity to it. when you look at the data on a relative basis versus what the company message and what investors were thinking, it definitely came up short. in absolute terms, the data in terms of efficacy very solid. but when you look at what eli lilly currently has, it seems like lilly will still be the market leader as the combination is not good enough to really supersede it. scarlet: is there a lot of hammering for a new obesity drug that novo nordisk is working on? the current ones seem to be effective. jared: i agree with you. that has been a big part of my thesis around this space, the market demanding better efficacy

results. 20% weight loss for most patients is really good. when you look at the data today, part of the inconsistency or abnormality with it, versus what we were expecting, could be the fact that patients on cagrisema were not ticking higher doses because they lost enough weight to be satisfied. so i am not sure there is market demand for much better efficacy versus what we already had. scarlet: is this something investors in eli lilly were looking at as a driver for the stock, the results of this trial? jared: yes, definitely. we are in this perpetual game of leapfrog between these two companies. obviously a whole host of others trying to get into the market. as far as a catalyst, this was seen as what would novo do, would they be the preeminent player now? there is still supplying demand metrics for the upcoming

quarter, but as far as the imperative lands get, this was considered -- as far as competitive then escapes -- jared: there was concern novo may reduce the costs of its therapies in the near term in order to compete. the company has not alluded to it. but there is the thought that, over time, pricing will take a hit, whether it is the inflation reduction act that goes into effect in 2027, loss of exclusivity for the group. i am not sure whether there is a near-term impact on pricing, but it is being discussed by investors today. scarlet: thank you so much for coming in. jared holz from mizuho securities on eli lilly and novo nordisk and the response to the less than ideal results from its experimental drug treatment. coming up, u.s. consumer sentiment data showing a rise for the fifth straight month.

our next guest will talk about how he plans to offset the obstacles and get a special flavor on american dining tables. this is bloomberg. ♪

scarlet: u.s. consumer sentiment today showed a fifth straight month of gains. but with potential tariffs, consumers may be under pressure. a variety of markets are looking-- at sabatino truffles, this means expansion into north america. let's bring in federico balestra , ceo at sabatino truffles. talk about how you can bring truffle production to north america. i thought this was a very specialized trading that can only be found in dense forests in europe. federico: yes, absolutely. bringing our manufacturing plant into north america in 2005, and

since we have been growing. it is true it comes from europe, but the packing, the manufacturing, the r&d can be done in the u.s.. we have a manufacturing land. we just finished expansion two weeks ago, and we are planning to expand into the u.s. scarlet: how are you thinking about tariffs? there are still going to be things you are importing from outside the united states. how far ahead of it can you get right now? federico: absolutely, you are right. on the truffle itself, we are used to, because from 2000 to 2007, there was a high tariff from europe on truffles that came into the u.s. obviously, since 2007, our logistics are much more competitive. we would like to keep tariffs

zero like now. but we are trying to buy the most we can here in the united states. our manufacturing plants come all the ingredients we need that we can buy in the country, we do try to buy in the country. when we do not have a choice, we go overseas and have transportation costs and tariffs . scarlet: what does that mean for trying to make truffles available to a wider base of consumers as opposed to a fine dining delicacy? are market changed. 10 years ago, only fine dining was using truffles. to sell fine dining and qsr, we need to be more competitive with price. to be more competitive with price, we need a better price. we would like to not have tariffs for packaging from overseas, because of the higher costs we need to pass to the customers and we do not have a

choice. i think it would be an incentive to manufacture -- scarlet: we got to leave it there. i am sorry. thank you so much, though. federico balestra, ceo at sabatino truffles. i'm scarlet fu. that does it for "bloomberg markets." ♪ it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people. ♪ ♪ ♪ it's time to try defying gravity ♪

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>> from the world of politics of the world of business, this is "balance of power."

live from washington, d.c. kailey: well, it's deadline day. just 11 hours to go until the clock strikes midnight and government funding runs out. welcome to "balance of power" on bloomberg tv and radio. i am kailey leinz in washington, where republican lawmakers are meeting this hour on potential plan c, multiple votes on a legislative package that failed on the house floor last night to shut down and kick the can down the road until march. we will have the latest with laura davis in this hour. plus i will be joined by former republican congressman and ways and means mitty chair kevin brady, as well as sarah chamberlain. our political panel, jeanne sheehan zaino and brittany martinez, are coming up as we digest everything that has happened on capitol hill the last several days. we begin with a check on the mar