Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning.
Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 3: stories we're following today.
Speaker 2: Karen, we begin with the fallout from the government shutdown.
Speaker 2: The Trump administration is planning to use it to fire
Speaker 2: federal workers this week. Bloomberg's Amy Morris is in Washington
Speaker 2: with the latest.
Speaker 4: White House Budget Director Russell Vote is planning to swiftly
Speaker 4: dismiss federal workers, assigned that Republicans are leaning into hardball
Speaker 4: tactics to pressure Democrats to cave to end the shutdown,
Speaker 4: sources tell Bloomberg. Vote told House lawmakers some federal agencies
Speaker 4: will start terminating workers this week. Vice President JD. Vance
Speaker 4: at the White House.
Speaker 5: If this thing drags on for another few days, or
Speaker 5: god forbid, another few weeks, we are going to have
Speaker 5: to lay people off. We're going to have to save
Speaker 5: money in some places so the essential services don't get
Speaker 5: turned off in other places.
Speaker 4: Van says the administration isn't targeting agies based on politics.
Speaker 4: In Washington, Amy Morris Bloomberg Radio.
Speaker 2: All right, Amy, thank you. Meanwhile, the Trump administration has
Speaker 2: also halted eighteen billion dollars in federal funding for infrastructure
Speaker 2: projects in New York City. Budget Director Vote cited concerns
Speaker 2: over diversity and equity policies, but President Trump had warned
Speaker 2: he would use the shutdown to target quote Democrat Things.
Speaker 3: Nathan that could include projects in the energy space. Vote
Speaker 3: also said he will cancel eight billion dollars earmarked for
Speaker 3: renewable energy projects in more than a dozen states that
Speaker 3: voted for Kamala Harris in the twenty twenty four presidential election,
Speaker 3: including hydrogen projects in California and the Pacific Northwest.
Speaker 2: And with the government shutdown, Karen the Bureau of Labor
Speaker 2: Statistics won't be releasing key economic data that the FED
Speaker 2: keeps a close si on that includes tomorrow's September jobs report.
Speaker 2: Chicago Fed President Austin Golesby, speaking to American public media,
Speaker 2: says a lack of official government data makes it harder
Speaker 2: for central bankers to interpret at the economy.
Speaker 6: I consider the Bureau of Labor Statistics job data to
Speaker 6: be the absolutely best data source on jobs and statistics
Speaker 6: in the entire world. If we aren't going to have those,
Speaker 6: it's problematic.
Speaker 2: Chicago Fed President Austin goles We also reiterated concerns about
Speaker 2: a recent pickup in services inflation.
Speaker 3: Well, Nathan, the Supreme Court is refusing to allow President
Speaker 3: Trump to immediately fire Federal Reserve Governor Lisa Cook. It
Speaker 3: means Cook can remain in her position until at least January,
Speaker 3: when judges are due to hear arguments in her case.
Speaker 3: Bloomberg's Michael McKee says the delay marks a long postponent
Speaker 3: by the court.
Speaker 7: One reason maybe that they are taking up the case
Speaker 7: of the FTC commissioner that the President is trying to fire,
Speaker 7: whom the Court allowed to be fired. But they're going
Speaker 7: to hear arguments in that case in December. And because
Speaker 7: some of these previous cases have involved the Federal Reserve
Speaker 7: and the Court has suggested their maybe some slack given
Speaker 7: to the Fed that isn't given to these other agencies.
Speaker 3: And Bloomer's Michael McKee no said the Supreme Court decision
Speaker 3: means Cook will continue to vote on interest rate decisions.
Speaker 3: White House Press Secretary Caroline Levitt says President Trump was
Speaker 3: well within his legal authority to fire Cook.
Speaker 2: Certain to Tech News Now, Karen open Ai has completed
Speaker 2: a share sale that makes it the most valuable startup
Speaker 2: in the world, surpassing Elon Musk's space X. Sources tell
Speaker 2: Bloomberg that current and former employees of open Ai sold
Speaker 2: roughly six point six billion dollars worth of shares to
Speaker 2: a group of investors at a record five hundred billion
Speaker 2: dollar valuation. Peter Elstrom is Bloomberg's executive editor for Global Tech.
Speaker 8: That is a big accomplishment for a startup that has,
Speaker 8: you know, still still is losing lots of money, still
Speaker 8: has to prove that it has a business model behind this.
Speaker 8: But it's a big step up, especially because the valuation
Speaker 8: is going up to five hundred billion dollars from three
Speaker 8: hundred billion dollars just earlier this year when Soft Bank
Speaker 8: led around financing in the company.
Speaker 2: Bloomberg's Peter Elstrom reports open Ai is locked in an
Speaker 2: increasingly bitter fight for top AI engineers, and the share
Speaker 2: sale is seen as one way to offer an incentive
Speaker 2: for them who stay well.
Speaker 3: To geopolitics now Nathan, President Trump says he will be
Speaker 3: meeting with Chinese President she in a month and that
Speaker 3: soybeans will be a major topic of discussion. Bloomberg Steven
Speaker 3: Engels says the President's using social media to accuse China
Speaker 3: of hurting American soybean farmers.
Speaker 9: Trump is becoming increasingly concerned by the unrest, if you will,
Speaker 9: by US farmers, because keep in mind, you know, traditionally
Speaker 9: in the past decade or so, anywhere between twenty eight
Speaker 9: to upwards of sixty percent of US soybean crops, which
Speaker 9: is underway, by the way, the harvest is underway right now,
Speaker 9: go to China.
Speaker 3: Bloomer Stephen Engle as that the President announced he plans
Speaker 3: to use a small portion of tariff revenue to help farmers.
Speaker 2: In the Middle East, Karen Arab and Muslim leaders are
Speaker 2: pushing Kamas to accept the twenty point he's planned for Gaza,
Speaker 2: the President Trump announced this week. One senior official told
Speaker 2: Bloomberg it's important to focus on what he called wins
Speaker 2: in the plan, including an end to the displacement of Gazans.
Speaker 2: The source also says the aim of a full Israeli
Speaker 2: withdrawal is a significant achievement. Katar's Foreign ministry says Hamas
Speaker 2: is preparing its response to the plan.
Speaker 3: We go to developments now in the war in Ukraine, Nathan.
Speaker 3: Multiple reports say the US will provide Ukraine with intelligence
Speaker 3: for a long range missile strikes on Russia's energy infrastructure,
Speaker 3: and that the Trump administration is considering sending Kiev.
Speaker 4: More powerful weapons.
Speaker 3: Ukrainian President Vladimir Zelenski spoke this morning about the request
Speaker 3: for a long range Tomahawk missiles from the US.
Speaker 10: We're thankful to President Trump.
Speaker 4: This Dalak.
Speaker 11: Last time we had very good meeting, very productive Dalak,
Speaker 11: and we spoke about a long French missiles pass on.
Speaker 3: His Ukraine's President Vladimir Zelanski was speaking in Copenhagen to
Speaker 3: take part in the European Political Community Summit.
Speaker 2: On Wall Street, Karen stocks climbed to a record on
Speaker 2: the first day of fourth quarter trading. The Dow, SNP
Speaker 2: and Nasdaq all hit record highs. As equities rally, so
Speaker 2: does gold. Goldman Sachs strategists are saying this morning there's
Speaker 2: room for bully and to rally even more. The firm
Speaker 2: says interest from private investors presents large upside risk. Thereforecast
Speaker 2: of forty three hundred dollars an ounce by the end
Speaker 2: of twenty twenty six. This morning, Kobec's gold is trading
Speaker 2: at thirty eight ninety nine thirty oh.
Speaker 3: We have a note in big tech this morning as well. Nathan.
Speaker 3: Apple pausing a planned overhaul of its Vision pro headset
Speaker 3: to focus on developing smart glasses that can rival metas products.
Speaker 3: It's working on at least two types of smart glasses,
Speaker 3: including one that will pair with an iPhone and another
Speaker 3: with a display that could challenge Meta's ray band display.
Speaker 3: Apple's glasses will rely heavily on voice interaction and artificial intelligence.
Speaker 2: The City Group is now the main home of President
Speaker 2: Trump's money after years of getting shunned by major banks.
Speaker 2: Bloomberg News has learned the relationship began after CEO Jane
Speaker 2: Fraser congratulated the president on his second term win. The
Speaker 2: President's wealth has surged in recent years, driving up potential
Speaker 2: revenue for his bankers. Financial firms are previously unwilling to
Speaker 2: take on the President's wealth after past failures to repay
Speaker 2: loans tied to troubled business dealings.
Speaker 3: Time now for look at some of the other stories
Speaker 3: making news in New York and around the world, and
Speaker 3: from that we're joined by Bloomberg's Monica Rix.
Speaker 12: Monica, Good morning, Hey, Good morning, Karen. The United Nations
Speaker 12: says it's now closely monitoring a global flotilla that was
Speaker 12: intercepted by the Israeli Navy yesterday as it was sailing
Speaker 12: to deliver some much needed aid to Palestinians in Gaza. You,
Speaker 12: and spokesperson Stefan Jujarek.
Speaker 2: We're obviously following the flotilla very closely. We just we
Speaker 2: do not want anyone to get hurt, and we want
Speaker 2: people's rights to be respected.
Speaker 12: That flotilla included nearly fifty boats and five hundred activists,
Speaker 12: including Greta Tumberg and Nelson Mandela's grandson. Meantime, Israel's Defense
Speaker 12: minister has ordered all remaining Palestinians to leave Gaza City immediately,
Speaker 12: saying anyone who stays will be considered a militant supporter
Speaker 12: and face the full force of Israel's latest offensive. The
Speaker 12: call coming as Hamas ways a potential peace deal from
Speaker 12: President Trump to end the war and return remaining hostages.
Speaker 12: Officials expect the death toll to keep rising in the
Speaker 12: Philippines as rescuers there use backcoes and sniffer dogs to
Speaker 12: sift through rubble of collapse buildings for survivors of a
Speaker 12: powerful earthquake. At least seventy two people have died so far,
Speaker 12: and destruction and rain is hampering rescue efforts. Two Delta
Speaker 12: planes clipped each other overnight at New York's LaGuardia Airport.
Speaker 4: You guys sit cliffs correct, Yeah, we did their.
Speaker 12: Right wing CLI our notes that sound courtesy of Live
Speaker 12: air Traffic Control dot Net. One of the planes had
Speaker 12: just landed, the other was preparing for departure, and one
Speaker 12: of the plane's wings hit the other's nose. One person
Speaker 12: was hurt, a flight attendant who apparently suffered a knee injury.
Speaker 12: TSA's warning your travel plans could be impacted by the
Speaker 12: government shutdown with more delays and cancelations amid staffing shortages.
Speaker 12: This traveler is worried about service in Ohio.
Speaker 4: You can only ask people to do so much genuinely.
Speaker 6: Even if a service is very important, people are only
Speaker 6: going to do things out of the goodness of their heart.
Speaker 12: For so long, passport processing remains mostly unaffected. And renowned
Speaker 12: conservationists Jane Goodaald has died. She was known for her
Speaker 12: groundbreaking chimpanzee field research and globe spanning environmental advocacy. She
Speaker 12: was ninety one Global News twenty four hours a day
Speaker 12: and whenever you want it with Bloomberg News. Now, I'm
Speaker 12: Monica Rix and this is Bloomberg Karen Nathan.
Speaker 3: All right, Monica, thank you, Thanks Monica. Time now for
Speaker 3: our Bloomberg Sports update, and for that we bring in
Speaker 3: John stash Hour.
Speaker 11: Thanks Karen, to be going to day. In baseball, there
Speaker 11: are three decisive game threes in the Wildcard playoffs, the
Speaker 11: Tigers and Guardians in Cleveland, where the state alive, winning
Speaker 11: six to one, Padres and Cubs at Wrigleyfield, San Diego
Speaker 11: won Game two, three nothing, Red Sox and the Yankees
Speaker 11: in New York. The Yanks state alive, winning four to three.
Speaker 11: One series did end. The Dodgers beat the Reds eight
Speaker 11: to four. The Dodgers will now play the Phillies. Brian
Speaker 11: Snicker will not return as manager of the Atlanta Braves,
Speaker 11: a job he had the past decade. He'll remain as
Speaker 11: an advisor. That's your Bloomberg Sports update.
Speaker 3: Stay with us. More from Bloomberg day Break coming up
Speaker 3: after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
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Speaker 1: Bloomberg Business opp This is Bloomberg Daybreak.
Speaker 2: Good morning, I'm Nathan Hager. Now, more than twenty four
Speaker 2: hours into the federal government's shut down, the White House
Speaker 2: says the first layoffs could begin in the next one
Speaker 2: to two days. It may be assigned the Republicans ready
Speaker 2: to play hardball to get Democrats to cave, but Vice
Speaker 2: President jd Vance says they'll have little choice if this
Speaker 2: goes on much longer.
Speaker 5: We are going to have to lay some people off
Speaker 5: if the shutdown continues.
Speaker 4: We don't like that, we.
Speaker 5: Don't necessarily want to do it, but we're going to
Speaker 5: do what we have to to keep the American people's
Speaker 5: essential services continuing to run.
Speaker 2: And that was Vice President jd Vance at the White House.
Speaker 2: For more, we're joined by Bloomberg News editor Alexander Pearson.
Speaker 2: Alex I mean they do have a choice technically, don't they.
Speaker 2: I mean, in the past, there have been temporary furloughs
Speaker 2: of federal workers, So what is the strategy here? Good morning, Good.
Speaker 10: Morning, Nathan. Yeah, that's right. Previously, during government shutdowns like this,
Speaker 10: federal workers would be furloughed, they wouldn't get any payment,
Speaker 10: and then when the government reopened, they would basically all
Speaker 10: be taken back and would get back pay, and what
Speaker 10: the administration's doing here is sort of escalating the shutdown
Speaker 10: fight by threatening to fire a lot of these non
Speaker 10: essential workers. And that's been very much signal in the
Speaker 10: last few days, and that's where they will head if
Speaker 10: the Democrats don't crack and try to you know, don't
Speaker 10: agree to pass they stop measure to reopen the government.
Speaker 10: So it's definitely an escalation by the White House in
Speaker 10: terms of this shutdown fight.
Speaker 2: Well, they're saying that the layoffs are going to happen
Speaker 2: in the next day or two. Are we seeing signs
Speaker 2: in federal agencies that that is already starting to happen,
Speaker 2: that those preparations are taking place.
Speaker 10: So yeah, the Office of Management and Budget sent a
Speaker 10: memo late last week asking for the agencies to draw
Speaker 10: up plans for who you know would be fired under
Speaker 10: this contingency. There's no indication yet that they've actually started
Speaker 10: to implement any of those plans, and there's still not
Speaker 10: been any reporting and certainly no announcement of which agencies
Speaker 10: would be affected, what the scopes of the cuts would be.
Speaker 10: At the moment, it's still very much the White House
Speaker 10: signaling that they're going to go ahead without giving details
Speaker 10: of what they actually plan to do.
Speaker 2: And in the meantime, we've already seen the White House
Speaker 2: Budget Director talk about cutting billions of dollars in New
Speaker 2: York City infrastructure spending as well as green energy projects
Speaker 2: and other states led by Democrats. Is this all part
Speaker 2: of the pressure campaign as well?
Speaker 10: That's certainly how it's being read, you know, in amongst
Speaker 10: those journalists and also by the Democrats. It's interesting to
Speaker 10: note that these sort of attacks on in terms of
Speaker 10: suspending infrastructure funds in New York and also counseling hydrogen
Speaker 10: projects on the West Coast, they're very much targeting, you know,
Speaker 10: Democrat leading states, states that voted for Kamala Harris in
Speaker 10: twenty twenty four, and so naturally the reaction by the
Speaker 10: Democrats in those states has been to call it out
Speaker 10: as political payback as a way of pressuring the Democrats
Speaker 10: to fold in this shutdown fight. Although it's interesting to
Speaker 10: note that the White House itself has not made that link.
Speaker 10: They are claiming that, you know, that these funds are
Speaker 10: not necessarily being used correctly and that they're probring you know,
Speaker 10: whether there is compliance there, but it's certainly being read
Speaker 10: as a way of putting Democrats under pressure.
Speaker 2: So in our last thirty seconds, Alex, are we seeing
Speaker 2: that any signs that that pressure is being ought to
Speaker 2: bear on Democrats, that they could be wavering in their
Speaker 2: determination to push these healthcare cuts.
Speaker 10: Among leadership. No, they've at least publicly remained very steadfast
Speaker 10: in the opposition to agree to any kind of deal
Speaker 10: to reopen the government without that concession, without their demands
Speaker 10: being met. But there are some moderate Democrats who in
Speaker 10: the Senate who have been talking with moderate Republicans about
Speaker 10: maybe some sort of deal that they could get through
Speaker 10: to from the government for a very short amount of
Speaker 10: time while they negotiate on Democrat demands. But it's not
Speaker 10: really clear at this point of whether they're going to
Speaker 10: get anywhere with that. Like I said, it's certain moderate
Speaker 10: Democrats and the wider party seems to be steadfast in subposition.
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