WEBVTT - Trump Plans Shutdown Job Cuts, OpenAI Valuation Soars to $500 Billion

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning.

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<v Speaker 3>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 3>stories we're following today.

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<v Speaker 2>Karen, we begin with the fallout from the government shutdown.

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<v Speaker 2>The Trump administration is planning to use it to fire

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<v Speaker 2>federal workers this week. Bloomberg's Amy Morris is in Washington

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<v Speaker 2>with the latest.

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<v Speaker 4>White House Budget Director Russell Vote is planning to swiftly

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<v Speaker 4>dismiss federal workers, assigned that Republicans are leaning into hardball

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<v Speaker 4>tactics to pressure Democrats to cave to end the shutdown,

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<v Speaker 4>sources tell Bloomberg. Vote told House lawmakers some federal agencies

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<v Speaker 4>will start terminating workers this week. Vice President JD. Vance

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<v Speaker 4>at the White House.

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<v Speaker 5>If this thing drags on for another few days, or

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<v Speaker 5>god forbid, another few weeks, we are going to have

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<v Speaker 5>to lay people off. We're going to have to save

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<v Speaker 5>money in some places so the essential services don't get

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<v Speaker 5>turned off in other places.

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<v Speaker 4>Van says the administration isn't targeting agies based on politics.

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<v Speaker 4>In Washington, Amy Morris Bloomberg Radio.

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<v Speaker 2>All right, Amy, thank you. Meanwhile, the Trump administration has

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<v Speaker 2>also halted eighteen billion dollars in federal funding for infrastructure

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<v Speaker 2>projects in New York City. Budget Director Vote cited concerns

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<v Speaker 2>over diversity and equity policies, but President Trump had warned

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<v Speaker 2>he would use the shutdown to target quote Democrat Things.

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<v Speaker 3>Nathan that could include projects in the energy space. Vote

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<v Speaker 3>also said he will cancel eight billion dollars earmarked for

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<v Speaker 3>renewable energy projects in more than a dozen states that

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<v Speaker 3>voted for Kamala Harris in the twenty twenty four presidential election,

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<v Speaker 3>including hydrogen projects in California and the Pacific Northwest.

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<v Speaker 2>And with the government shutdown, Karen the Bureau of Labor

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<v Speaker 2>Statistics won't be releasing key economic data that the FED

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<v Speaker 2>keeps a close si on that includes tomorrow's September jobs report.

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<v Speaker 2>Chicago Fed President Austin Golesby, speaking to American public media,

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<v Speaker 2>says a lack of official government data makes it harder

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<v Speaker 2>for central bankers to interpret at the economy.

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<v Speaker 6>I consider the Bureau of Labor Statistics job data to

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<v Speaker 6>be the absolutely best data source on jobs and statistics

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<v Speaker 6>in the entire world. If we aren't going to have those,

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<v Speaker 6>it's problematic.

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<v Speaker 2>Chicago Fed President Austin goles We also reiterated concerns about

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<v Speaker 2>a recent pickup in services inflation.

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<v Speaker 3>Well, Nathan, the Supreme Court is refusing to allow President

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<v Speaker 3>Trump to immediately fire Federal Reserve Governor Lisa Cook. It

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<v Speaker 3>means Cook can remain in her position until at least January,

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<v Speaker 3>when judges are due to hear arguments in her case.

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<v Speaker 3>Bloomberg's Michael McKee says the delay marks a long postponent

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<v Speaker 3>by the court.

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<v Speaker 7>One reason maybe that they are taking up the case

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<v Speaker 7>of the FTC commissioner that the President is trying to fire,

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<v Speaker 7>whom the Court allowed to be fired. But they're going

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<v Speaker 7>to hear arguments in that case in December. And because

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<v Speaker 7>some of these previous cases have involved the Federal Reserve

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<v Speaker 7>and the Court has suggested their maybe some slack given

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<v Speaker 7>to the Fed that isn't given to these other agencies.

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<v Speaker 3>And Bloomer's Michael McKee no said the Supreme Court decision

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<v Speaker 3>means Cook will continue to vote on interest rate decisions.

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<v Speaker 3>White House Press Secretary Caroline Levitt says President Trump was

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<v Speaker 3>well within his legal authority to fire Cook.

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<v Speaker 2>Certain to Tech News Now, Karen open Ai has completed

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<v Speaker 2>a share sale that makes it the most valuable startup

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<v Speaker 2>in the world, surpassing Elon Musk's space X. Sources tell

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<v Speaker 2>Bloomberg that current and former employees of open Ai sold

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<v Speaker 2>roughly six point six billion dollars worth of shares to

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<v Speaker 2>a group of investors at a record five hundred billion

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<v Speaker 2>dollar valuation. Peter Elstrom is Bloomberg's executive editor for Global Tech.

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<v Speaker 8>That is a big accomplishment for a startup that has,

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<v Speaker 8>you know, still still is losing lots of money, still

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<v Speaker 8>has to prove that it has a business model behind this.

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<v Speaker 8>But it's a big step up, especially because the valuation

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<v Speaker 8>is going up to five hundred billion dollars from three

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<v Speaker 8>hundred billion dollars just earlier this year when Soft Bank

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<v Speaker 8>led around financing in the company.

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<v Speaker 2>Bloomberg's Peter Elstrom reports open Ai is locked in an

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<v Speaker 2>increasingly bitter fight for top AI engineers, and the share

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<v Speaker 2>sale is seen as one way to offer an incentive

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<v Speaker 2>for them who stay well.

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<v Speaker 3>To geopolitics now Nathan, President Trump says he will be

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<v Speaker 3>meeting with Chinese President she in a month and that

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<v Speaker 3>soybeans will be a major topic of discussion. Bloomberg Steven

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<v Speaker 3>Engels says the President's using social media to accuse China

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<v Speaker 3>of hurting American soybean farmers.

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<v Speaker 9>Trump is becoming increasingly concerned by the unrest, if you will,

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<v Speaker 9>by US farmers, because keep in mind, you know, traditionally

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<v Speaker 9>in the past decade or so, anywhere between twenty eight

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<v Speaker 9>to upwards of sixty percent of US soybean crops, which

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<v Speaker 9>is underway, by the way, the harvest is underway right now,

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<v Speaker 9>go to China.

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<v Speaker 3>Bloomer Stephen Engle as that the President announced he plans

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<v Speaker 3>to use a small portion of tariff revenue to help farmers.

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<v Speaker 2>In the Middle East, Karen Arab and Muslim leaders are

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<v Speaker 2>pushing Kamas to accept the twenty point he's planned for Gaza,

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<v Speaker 2>the President Trump announced this week. One senior official told

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<v Speaker 2>Bloomberg it's important to focus on what he called wins

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<v Speaker 2>in the plan, including an end to the displacement of Gazans.

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<v Speaker 2>The source also says the aim of a full Israeli

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<v Speaker 2>withdrawal is a significant achievement. Katar's Foreign ministry says Hamas

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<v Speaker 2>is preparing its response to the plan.

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<v Speaker 3>We go to developments now in the war in Ukraine, Nathan.

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<v Speaker 3>Multiple reports say the US will provide Ukraine with intelligence

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<v Speaker 3>for a long range missile strikes on Russia's energy infrastructure,

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<v Speaker 3>and that the Trump administration is considering sending Kiev.

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<v Speaker 4>More powerful weapons.

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<v Speaker 3>Ukrainian President Vladimir Zelenski spoke this morning about the request

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<v Speaker 3>for a long range Tomahawk missiles from the US.

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<v Speaker 10>We're thankful to President Trump.

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<v Speaker 4>This Dalak.

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<v Speaker 11>Last time we had very good meeting, very productive Dalak,

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<v Speaker 11>and we spoke about a long French missiles pass on.

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<v Speaker 3>His Ukraine's President Vladimir Zelanski was speaking in Copenhagen to

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<v Speaker 3>take part in the European Political Community Summit.

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<v Speaker 2>On Wall Street, Karen stocks climbed to a record on

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<v Speaker 2>the first day of fourth quarter trading. The Dow, SNP

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<v Speaker 2>and Nasdaq all hit record highs. As equities rally, so

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<v Speaker 2>does gold. Goldman Sachs strategists are saying this morning there's

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<v Speaker 2>room for bully and to rally even more. The firm

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<v Speaker 2>says interest from private investors presents large upside risk. Thereforecast

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<v Speaker 2>of forty three hundred dollars an ounce by the end

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<v Speaker 2>of twenty twenty six. This morning, Kobec's gold is trading

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<v Speaker 2>at thirty eight ninety nine thirty oh.

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<v Speaker 3>We have a note in big tech this morning as well. Nathan.

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<v Speaker 3>Apple pausing a planned overhaul of its Vision pro headset

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<v Speaker 3>to focus on developing smart glasses that can rival metas products.

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<v Speaker 3>It's working on at least two types of smart glasses,

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<v Speaker 3>including one that will pair with an iPhone and another

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<v Speaker 3>with a display that could challenge Meta's ray band display.

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<v Speaker 3>Apple's glasses will rely heavily on voice interaction and artificial intelligence.

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<v Speaker 2>The City Group is now the main home of President

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<v Speaker 2>Trump's money after years of getting shunned by major banks.

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<v Speaker 2>Bloomberg News has learned the relationship began after CEO Jane

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<v Speaker 2>Fraser congratulated the president on his second term win. The

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<v Speaker 2>President's wealth has surged in recent years, driving up potential

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<v Speaker 2>revenue for his bankers. Financial firms are previously unwilling to

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<v Speaker 2>take on the President's wealth after past failures to repay

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<v Speaker 2>loans tied to troubled business dealings.

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<v Speaker 3>Time now for look at some of the other stories

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<v Speaker 3>making news in New York and around the world, and

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<v Speaker 3>from that we're joined by Bloomberg's Monica Rix.

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<v Speaker 12>Monica, Good morning, Hey, Good morning, Karen. The United Nations

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<v Speaker 12>says it's now closely monitoring a global flotilla that was

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<v Speaker 12>intercepted by the Israeli Navy yesterday as it was sailing

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<v Speaker 12>to deliver some much needed aid to Palestinians in Gaza. You,

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<v Speaker 12>and spokesperson Stefan Jujarek.

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<v Speaker 2>We're obviously following the flotilla very closely. We just we

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<v Speaker 2>do not want anyone to get hurt, and we want

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<v Speaker 2>people's rights to be respected.

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<v Speaker 12>That flotilla included nearly fifty boats and five hundred activists,

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<v Speaker 12>including Greta Tumberg and Nelson Mandela's grandson. Meantime, Israel's Defense

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<v Speaker 12>minister has ordered all remaining Palestinians to leave Gaza City immediately,

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<v Speaker 12>saying anyone who stays will be considered a militant supporter

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<v Speaker 12>and face the full force of Israel's latest offensive. The

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<v Speaker 12>call coming as Hamas ways a potential peace deal from

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<v Speaker 12>President Trump to end the war and return remaining hostages.

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<v Speaker 12>Officials expect the death toll to keep rising in the

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<v Speaker 12>Philippines as rescuers there use backcoes and sniffer dogs to

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<v Speaker 12>sift through rubble of collapse buildings for survivors of a

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<v Speaker 12>powerful earthquake. At least seventy two people have died so far,

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<v Speaker 12>and destruction and rain is hampering rescue efforts. Two Delta

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<v Speaker 12>planes clipped each other overnight at New York's LaGuardia Airport.

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<v Speaker 4>You guys sit cliffs correct, Yeah, we did their.

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<v Speaker 12>Right wing CLI our notes that sound courtesy of Live

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<v Speaker 12>air Traffic Control dot Net. One of the planes had

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<v Speaker 12>just landed, the other was preparing for departure, and one

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<v Speaker 12>of the plane's wings hit the other's nose. One person

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<v Speaker 12>was hurt, a flight attendant who apparently suffered a knee injury.

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<v Speaker 12>TSA's warning your travel plans could be impacted by the

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<v Speaker 12>government shutdown with more delays and cancelations amid staffing shortages.

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<v Speaker 12>This traveler is worried about service in Ohio.

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<v Speaker 4>You can only ask people to do so much genuinely.

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<v Speaker 6>Even if a service is very important, people are only

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<v Speaker 6>going to do things out of the goodness of their heart.

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<v Speaker 12>For so long, passport processing remains mostly unaffected. And renowned

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<v Speaker 12>conservationists Jane Goodaald has died. She was known for her

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<v Speaker 12>groundbreaking chimpanzee field research and globe spanning environmental advocacy. She

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<v Speaker 12>was ninety one Global News twenty four hours a day

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<v Speaker 12>and whenever you want it with Bloomberg News. Now, I'm

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<v Speaker 12>Monica Rix and this is Bloomberg Karen Nathan.

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<v Speaker 3>All right, Monica, thank you, Thanks Monica. Time now for

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<v Speaker 3>our Bloomberg Sports update, and for that we bring in

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<v Speaker 3>John stash Hour.

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<v Speaker 11>Thanks Karen, to be going to day. In baseball, there

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<v Speaker 11>are three decisive game threes in the Wildcard playoffs, the

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<v Speaker 11>Tigers and Guardians in Cleveland, where the state alive, winning

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<v Speaker 11>six to one, Padres and Cubs at Wrigleyfield, San Diego

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<v Speaker 11>won Game two, three nothing, Red Sox and the Yankees

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<v Speaker 11>in New York. The Yanks state alive, winning four to three.

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<v Speaker 11>One series did end. The Dodgers beat the Reds eight

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<v Speaker 11>to four. The Dodgers will now play the Phillies. Brian

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<v Speaker 11>Snicker will not return as manager of the Atlanta Braves,

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<v Speaker 11>a job he had the past decade. He'll remain as

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<v Speaker 11>an advisor. That's your Bloomberg Sports update.

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<v Speaker 3>Stay with us. More from Bloomberg day Break coming up

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<v Speaker 3>after this.

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<v Speaker 1>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business opp This is Bloomberg Daybreak.

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<v Speaker 2>Good morning, I'm Nathan Hager. Now, more than twenty four

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<v Speaker 2>hours into the federal government's shut down, the White House

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<v Speaker 2>says the first layoffs could begin in the next one

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<v Speaker 2>to two days. It may be assigned the Republicans ready

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<v Speaker 2>to play hardball to get Democrats to cave, but Vice

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<v Speaker 2>President jd Vance says they'll have little choice if this

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<v Speaker 2>goes on much longer.

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<v Speaker 5>We are going to have to lay some people off

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<v Speaker 5>if the shutdown continues.

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<v Speaker 4>We don't like that, we.

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<v Speaker 5>Don't necessarily want to do it, but we're going to

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<v Speaker 5>do what we have to to keep the American people's

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<v Speaker 5>essential services continuing to run.

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<v Speaker 2>And that was Vice President jd Vance at the White House.

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<v Speaker 2>For more, we're joined by Bloomberg News editor Alexander Pearson.

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<v Speaker 2>Alex I mean they do have a choice technically, don't they.

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<v Speaker 2>I mean, in the past, there have been temporary furloughs

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<v Speaker 2>of federal workers, So what is the strategy here? Good morning, Good.

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<v Speaker 10>Morning, Nathan. Yeah, that's right. Previously, during government shutdowns like this,

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<v Speaker 10>federal workers would be furloughed, they wouldn't get any payment,

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<v Speaker 10>and then when the government reopened, they would basically all

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<v Speaker 10>be taken back and would get back pay, and what

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<v Speaker 10>the administration's doing here is sort of escalating the shutdown

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<v Speaker 10>fight by threatening to fire a lot of these non

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<v Speaker 10>essential workers. And that's been very much signal in the

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<v Speaker 10>last few days, and that's where they will head if

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<v Speaker 10>the Democrats don't crack and try to you know, don't

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<v Speaker 10>agree to pass they stop measure to reopen the government.

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<v Speaker 10>So it's definitely an escalation by the White House in

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<v Speaker 10>terms of this shutdown fight.

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<v Speaker 2>Well, they're saying that the layoffs are going to happen

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<v Speaker 2>in the next day or two. Are we seeing signs

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<v Speaker 2>in federal agencies that that is already starting to happen,

0:12:16.160 --> 0:12:17.920
<v Speaker 2>that those preparations are taking place.

0:12:19.320 --> 0:12:22.360
<v Speaker 10>So yeah, the Office of Management and Budget sent a

0:12:22.400 --> 0:12:25.719
<v Speaker 10>memo late last week asking for the agencies to draw

0:12:25.760 --> 0:12:30.240
<v Speaker 10>up plans for who you know would be fired under

0:12:30.240 --> 0:12:33.520
<v Speaker 10>this contingency. There's no indication yet that they've actually started

0:12:33.559 --> 0:12:36.760
<v Speaker 10>to implement any of those plans, and there's still not

0:12:36.800 --> 0:12:40.680
<v Speaker 10>been any reporting and certainly no announcement of which agencies

0:12:40.679 --> 0:12:43.000
<v Speaker 10>would be affected, what the scopes of the cuts would be.

0:12:43.559 --> 0:12:46.200
<v Speaker 10>At the moment, it's still very much the White House

0:12:46.200 --> 0:12:49.240
<v Speaker 10>signaling that they're going to go ahead without giving details

0:12:49.400 --> 0:12:51.080
<v Speaker 10>of what they actually plan to do.

0:12:51.440 --> 0:12:54.160
<v Speaker 2>And in the meantime, we've already seen the White House

0:12:54.160 --> 0:12:57.360
<v Speaker 2>Budget Director talk about cutting billions of dollars in New

0:12:57.480 --> 0:13:00.960
<v Speaker 2>York City infrastructure spending as well as green energy projects

0:13:01.000 --> 0:13:04.240
<v Speaker 2>and other states led by Democrats. Is this all part

0:13:04.280 --> 0:13:06.840
<v Speaker 2>of the pressure campaign as well?

0:13:06.960 --> 0:13:10.840
<v Speaker 10>That's certainly how it's being read, you know, in amongst

0:13:10.880 --> 0:13:14.800
<v Speaker 10>those journalists and also by the Democrats. It's interesting to

0:13:14.840 --> 0:13:17.760
<v Speaker 10>note that these sort of attacks on in terms of

0:13:17.960 --> 0:13:22.439
<v Speaker 10>suspending infrastructure funds in New York and also counseling hydrogen

0:13:22.480 --> 0:13:25.080
<v Speaker 10>projects on the West Coast, they're very much targeting, you know,

0:13:25.120 --> 0:13:27.880
<v Speaker 10>Democrat leading states, states that voted for Kamala Harris in

0:13:27.960 --> 0:13:31.960
<v Speaker 10>twenty twenty four, and so naturally the reaction by the

0:13:31.960 --> 0:13:34.480
<v Speaker 10>Democrats in those states has been to call it out

0:13:35.080 --> 0:13:38.360
<v Speaker 10>as political payback as a way of pressuring the Democrats

0:13:38.400 --> 0:13:41.080
<v Speaker 10>to fold in this shutdown fight. Although it's interesting to

0:13:41.120 --> 0:13:44.000
<v Speaker 10>note that the White House itself has not made that link.

0:13:44.360 --> 0:13:46.840
<v Speaker 10>They are claiming that, you know, that these funds are

0:13:46.840 --> 0:13:51.040
<v Speaker 10>not necessarily being used correctly and that they're probring you know,

0:13:51.080 --> 0:13:53.480
<v Speaker 10>whether there is compliance there, but it's certainly being read

0:13:53.520 --> 0:13:55.800
<v Speaker 10>as a way of putting Democrats under pressure.

0:13:56.120 --> 0:13:58.160
<v Speaker 2>So in our last thirty seconds, Alex, are we seeing

0:13:58.200 --> 0:14:00.400
<v Speaker 2>that any signs that that pressure is being ought to

0:14:00.480 --> 0:14:05.080
<v Speaker 2>bear on Democrats, that they could be wavering in their

0:14:05.880 --> 0:14:09.160
<v Speaker 2>determination to push these healthcare cuts.

0:14:10.440 --> 0:14:15.439
<v Speaker 10>Among leadership. No, they've at least publicly remained very steadfast

0:14:15.480 --> 0:14:18.880
<v Speaker 10>in the opposition to agree to any kind of deal

0:14:18.920 --> 0:14:22.160
<v Speaker 10>to reopen the government without that concession, without their demands

0:14:22.200 --> 0:14:26.480
<v Speaker 10>being met. But there are some moderate Democrats who in

0:14:26.480 --> 0:14:30.080
<v Speaker 10>the Senate who have been talking with moderate Republicans about

0:14:30.360 --> 0:14:32.920
<v Speaker 10>maybe some sort of deal that they could get through

0:14:32.960 --> 0:14:35.440
<v Speaker 10>to from the government for a very short amount of

0:14:35.440 --> 0:14:38.400
<v Speaker 10>time while they negotiate on Democrat demands. But it's not

0:14:38.440 --> 0:14:39.960
<v Speaker 10>really clear at this point of whether they're going to

0:14:39.960 --> 0:14:42.240
<v Speaker 10>get anywhere with that. Like I said, it's certain moderate

0:14:42.240 --> 0:14:46.120
<v Speaker 10>Democrats and the wider party seems to be steadfast in subposition.

0:14:47.800 --> 0:14:51.240
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