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Good morning. It’s a data-heavy day in the US, with November’s PCE inflation print in focus. Plus China thwarts its gaming giants again, Nik [View in browser]( [Bloomberg]( Good morning. It’s a data-heavy day in the US, with November’s PCE inflation print in focus. Plus China thwarts its gaming giants again, Nike’s slump reverberates across the world and Musk says indexing has gone too far. Here’s what people are talking about. — [Sofia Horta e Costa]( Tell us what you want to see in the Five Things newsletter! Please [take our quick survey here.]( Markets rundown US futures are a little lower as I type while Treasury yields and the dollar are steady. Beware of [‘‘razor-thin’’ liquidity](, though: stock volumes are very low across many of the world’s financial markets on the final trading day before the long Christmas weekend. And speaking of liquidity, those zero-day options [may not have been to blame]( for Wednesday’s drop in the S&P 500 after all. As we look ahead to 2024, we’ve put together some of the [biggest trades of this year](, from the AI craze to China's struggles and Bitcoin's epic comeback. Plus, here are a few warnings on the economy from the [world’s debt markets](. Someone who’s not a fan of public markets is Elon Musk, who spoke to ARK’s Cathie Wood about the high regulatory burden placed on listed companies, bemoaning the pressure they face to please shareholders every quarter. He also [said indexing has gone too far](. PCE inflation day We’re not on vacation yet.[November’s PCE inflation data]( are due at 8:30 a.m. New York time, which could help cement (or muddle) the case for lower interest rates in the coming quarters. Several Fed rate-setters, including Governor Christopher Waller and Atlanta Fed President Raphael Bostic, have said this is their key metric. Economists predict inflation will have been subdued in November, and by one measure it may hit the Federal Reserve’s target: Bloomberg Economics says that on a six-month annualized basis, core PCE likely advanced just 2% — right at the Fed’s target. We’ll be looking for details that may explain why Fed Chair Jerome Powell was confident about progress on disinflation, while [others could reinforce](comments that attempted to walk back Powell’s stance. China shocks investors China’s government [rattled the investing world]( by rolling out rules that will limit the ability of gaming companies to encourage players — and not just children — to spend more time and money on online games. Tencent fell 12% in Hong Kong, [its worst day since 2008](, while NetEase sank a record 25%. The move shook related stocks across Europe, South Africa, South Korea and Japan. The reaction from investors was particularly severe because Friday’s new rules emerged with little warning and were at once so vague and all-encompassing that people couldn’t decipher the intent or potential fallout. The rules also came at the end of a year that’s been difficult and punishing for China investors, so it will be particularly disheartening to anyone hoping for a better 2024. Are you planning to add or reduce your China exposure on the back of the latest news? Share your views [in this week’s MLIV Pulse survey](. Nike’s double-digit slump Nike’s shares [are sliding more than 10%]( in early New York trading. The sportswear brand said it’s looking for as much as $2 billion in cost savings by dismissing workers and simplifying its product assortment because of a weaker sales outlook. Nike’s CFO Matt Friend said on a conference call that the new outlook reflects a challenging environment particularly in Greater China and EMEA. Dick's Sporting Goods is also down in early trading, while in Europe shares of JD Sports, Adidas and Puma are all falling on concerns Nike’s European rivals will face a similar slowdown in sales. [Have a listen]( to Poonam Goyal, senior U.S. e-commerce and retail analyst at Bloomberg Intelligence, discussing Nike’s earnings. Coming up… Aside from the monthly PCE inflation data, we’ll also get updates on personal spending, durable goods orders, new home sales and the University of Michigan’s final read on sentiment for December. There are no Fed speakers on the calendar today. Here's Bloomberg Radio with more on [what you need to know](. What we’ve been reading This is what’s caught our eye over the past 24 hours. - The UK economy could [already be in a recession](. - Apple [stops sellingÂ](the Apple Watch Series 9 and Ultra 2 in the US. - Fake Ozempic has been [seized by the FDA](. - Skiing in Switzerland? The franc is the [strongest since 2015](today. - The popularity of EVs in China is [hastening the demise](of oil. - Parents are risking their retirements to[support their adult children](. - Russian women demand their [husbands and sons back]( from the war. And finally, Kristine looks at the biggest gift markets got in 2023... With the holidays comes gift-giving season, and all day long on Thursday my Bloomberg TV colleagues asked guests: what was the biggest gift that markets received in 2023? The Federal Reserve pivot to lower rates, understandably, featured prominently in the responses. After all, up until rate-cut speculation hit fever pitch at the beginning of November, equity investors were sitting on three straight months of declines. Meanwhile, bond investors were staring down the very real possibility that they would have to suffer through a third year of losses. Now, the S&P 500 is on the cusp of setting a record high and bond fund managers might actually have a shot at [wooing back]( former clients who have plowed nearly $6 trillion into money-market funds. But the follow-up question many are asking is: how long will this gift last? In cheering the Fed pivot, investors are essentially rooting for lower rates to keep the rally going. Yet the uncomfortable reality is that rate cuts would imply an economy that is at best slowing moderately in a soft-landing scenario, and at worst deteriorating faster than policymakers or markets expected -- a hard landing, in other words. And in that scenario, rate cuts could easily turn into a symptom of a broader backdrop that would deter further gains for investors. As always, it comes back to economic data. Households and businesses’ ability to weather the slowdown that would necessitate rate cuts will spell the difference between the Fed pivot serving as a gift that keeps on giving, or a bane that investors should never have wished for. [Kristine Aquino]( is managing editor for Bloomberg Markets Today. Follow her on X at [@krisaqnews](. Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Tell us what you want to see in the Five Things newsletter! Please [take our quick survey here.]( [Bloomberg Markets Wrap: The latest on what's moving global markets. Tap to read.]( Follow Us Like getting this newsletter? 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