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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning.

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Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today.

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Speaker 2: Karen, we begin with the latest on the government shutdown.

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Speaker 2: It's about to lead to a partial shutdown of the

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Speaker 2: nation's air space. Transportation Secretary Sean Duffy says the Federal

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Speaker 2: Aviation Administration will begin cutting flight capacity by ten percent

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Speaker 2: at forty high volume locations starting tomorrow. That's to alleviate

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Speaker 2: pressure on air traffic controllers who are working through the

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Speaker 2: shutdown without pay.

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Speaker 4: I anticipate there'll be additional disruptions, there'll be frustration. We

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Speaker 4: are working with the airlines, they're going to work with passengers,

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Speaker 4: but in the end, our sole role is to make

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Speaker 4: sure that we keep this airspace as safe as possible.

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Speaker 2: Transportation Secretary Sean Duffy made the announcement alongside FAA Administrator

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Speaker 2: Brian Bedford. We get more from Bloomberg Aviation correspondent Sid Phillip.

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Speaker 5: This would actually be a really bad step for the

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Speaker 5: airline industry because they're going to have to reduce flights

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Speaker 5: in order to actually make these cuts, and so we're

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Speaker 5: going to see a situation where airlines are forced to

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Speaker 5: have to cut the flights, cut roots, and cut services

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Speaker 5: to destinations, which could lead to some disruption for passengers

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Speaker 5: who book travel, especially as we go into the holidays,

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Speaker 5: and we have to see how long the shutdown last.

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Speaker 2: Bloomberg sid Philip reports the cuts are expected to be staggered,

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Speaker 2: with four percent of flights reduced tomorrow and five percent Saturday.

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Speaker 2: Sources tell Bloomberg News international flights will not be affected.

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Speaker 3: Well along with the shutdown, Nathan, the big wins for

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Speaker 3: Democrats in this week's elections have shifted the political landscape.

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Speaker 3: President Trump says the mid term stakes are set after

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Speaker 3: New Yorkers elected Democratic socialists O Run Mom Donnie to

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Speaker 3: be their next mayor.

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Speaker 6: The decision facing all Americans could not be more clear.

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Speaker 6: We have a choice between communism and common sense. Does

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Speaker 6: that make sense to you? Common sense? It's common sense

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Speaker 6: or communism.

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Speaker 3: President Trump spoke at the American Business Forum in Miami.

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Speaker 3: But Democratic Congressman Ted Low says there's a reason why

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Speaker 3: voters in blue and purple states pick their candidates on Tuesday.

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Speaker 7: Under the policies of Donald Trump and Republicans.

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Speaker 8: Inflation continues to increase, food prices have gone up, and

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Speaker 8: health care cross of skyrocketing.

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Speaker 3: Democratic Tim Loeu of California spoke to ABC News and

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Speaker 3: now Republicans are split on hunter respond to their losses.

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Speaker 3: The Washington Post reports some strategists think President Trump needs

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Speaker 3: to get more involved to fire up his base, while

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Speaker 3: others suggest Congression or Republicans develop their own message on

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Speaker 3: the economy.

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Speaker 2: Of course, Karen zornmom Donnie was one of the big

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Speaker 2: Democratic winners on election night, and now some of the

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Speaker 2: world's business leaders are adapting to a new reality. A

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Speaker 2: cretic of capitalism about to run the world's financial capital

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Speaker 2: JP Morgan Chase CEO Jamie Diamond tell CNN he's willing

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Speaker 2: to help.

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Speaker 4: I'm hoping any mayor goes what's right to help of

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Speaker 4: that city.

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Speaker 9: If you do it right, it benefits all the citizens.

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Speaker 3: If you do it wrong, it hurts all the citizens.

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Speaker 6: So yeah, I would help someone if they wanted my help.

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Speaker 2: And Zora mum Donnie says he's willing to work with

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Speaker 2: Diamond and other Wall Street CEOs.

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Speaker 10: I look forward to meeting with Jamie Diamond and meeting

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Speaker 10: with anyone who is concerned about the future of our

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Speaker 10: city and is invested in the vitality of that same city.

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Speaker 10: And these are not very different from the conversations I

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Speaker 10: had over the course of this campaign with many business leaders.

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Speaker 10: But while we may have disagreements on fiscal policy, we

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Speaker 10: also found many areas of agreement as to what the

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Speaker 10: city actually needed.

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Speaker 2: It was New York mayor like Zoron Mum Donnie and

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Speaker 2: along with Jamie Diamond, City Group CEO Jane Fraser says, quote,

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Speaker 2: we hope to work with the mayor elect on making

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Speaker 2: the city an even better place for our people and

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Speaker 2: clients to live and work.

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Speaker 3: Well, Nathan. The Supreme Court heard arguments about whether President

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Speaker 3: Trump can unilaterally impose sweeping tariffs. It is a pivotal

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Speaker 3: test of just how far a president's authority can reach,

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Speaker 3: and Bloomberg's Amy Morris has more from Washington.

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Speaker 9: Justice has seemed skeptical of Trump's power to unilaterally impose

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Speaker 9: sweeping tariffs. Several conservative justices signaled their concerns. Chief Justice

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Speaker 9: John Roberts questioned the executive branch taxing authority.

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Speaker 11: The vehicle is in position of taxes on Americans, and

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Speaker 11: that has always been the core power of Congress.

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Speaker 9: But Solicitor General John Souer, defending the tariffs, argues, this

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Speaker 9: is not a tax. These are regulatory tariffs. They are

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Speaker 9: not revenue raising tariffs. The fact that they raise revenues

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Speaker 9: only incidental. A decision could come by mid to late December.

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Speaker 9: In Washington. Amy Morris Bloomberg Radio, Amy.

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Speaker 1: Thanks.

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Speaker 2: Let's turn to the markets now. Futures are little changed

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Speaker 2: to lower this morning, following yesterday's gains on Wall Street.

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Speaker 2: Shares of Qualcomm are down three percent. The largest maker

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Speaker 2: of smartphone processors became the latest chip maker to post

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Speaker 2: profit above estimates and deliver an upbeat forecast, but that

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Speaker 2: wasn't good enough for outsized expectations. Qualcom stock is up

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Speaker 2: forty percent since April.

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Speaker 3: The Revolution and artificial intelligence Nathan has helped lead to

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Speaker 3: the most job cuts in the month of October in

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Speaker 3: more than two decades, According to data from outplacement firm Challenger,

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Speaker 3: Gray and Christmas. Companies last month announced more than one

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Speaker 3: hundred and fifty three thousand job cuts, and that's nearly

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Speaker 3: triple the number during the same month last year. The

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Speaker 3: job cuts are attributed to AI adoptions, softening consumer and

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Speaker 3: corporate spending, and rising costs, which are driving built tightening

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Speaker 3: and hiring freezes.

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Speaker 2: All global bond sales have soared to a record this year.

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Speaker 2: Bowers are taking advantage of easy market conditions to fund

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Speaker 2: everything from the boom at Ai projects to a revival

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Speaker 2: and acquisitions. Issuances set a new annual record of five

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Speaker 2: point nine to four trillion dollars, topping the previous high

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Speaker 2: set last year, and there's still nearly two months of

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Speaker 2: this year to go.

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Speaker 3: Well. Over in Europe, Nathan, it's decision day at the

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Speaker 3: Bank of England and a tricky call for the UK's

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Speaker 3: rate setting committee, and Bloomberg's Un Potts joins us from

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Speaker 3: London with more you and good morning.

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Speaker 12: Karl and Nathan. The Bank of England has been cutting

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Speaker 12: rates once a quarter since August of last year, but

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Speaker 12: the expectation from markets and economists is that the Beewee

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Speaker 12: will break that pattern today and leave rates on hold

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Speaker 12: at four percent. Governor Andrew Bailey is seen as the

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Speaker 12: key swing voter on a divided committee, and although there

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Speaker 12: are signs of a cooling of inflation pressures, policymakers may

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Speaker 12: prefer to wait and see what's in the government's budgets.

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Speaker 12: That's due in less than three weeks from now. In London.

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Speaker 3: I'm youuing pots Blomberg Radio Time Now for a look

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Speaker 3: at some of the other stories making news in New

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Speaker 3: York and around the world, and for that reck, joined

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Speaker 3: by Bloomberg's Monica Rigs Moonica, good morning.

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Speaker 8: Good morning, Karen. Federal investigators will be back out in Louisville,

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Speaker 8: Kentucky this morning scouring the charge site where a UPS

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Speaker 8: plane crashed earlier this week, killing at least twelve people.

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Speaker 8: Doctor Jason Smith is a trauma surgeon at the University

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Speaker 8: of Louisville Hospital.

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Speaker 7: We've seen blast injuries from the explosion itself. We've also

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Speaker 7: seen some shrapnel injuries where flying pieces of debris have

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Speaker 7: hit either bystanders or people in relatively close proximity to

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Speaker 7: the accident.

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Speaker 8: Authorities there are still trying to figure out why the

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Speaker 8: plane caught fire and lost an engine shortly after takeoff.

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Speaker 8: Partial snap benefits for November will be a little more

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Speaker 8: than estimated, the USDA, revising its guidance last night.

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Speaker 9: To comply with a federal court order.

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Speaker 8: It now says recipients will get sixty five percent of

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Speaker 8: their benefits this month, as the government shutdown continues.

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Speaker 9: President Trump says.

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Speaker 8: He is not going to the G twenty summit later

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Speaker 8: this month in South Africa.

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Speaker 6: You know, I'm not going to. We have a G

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Speaker 6: twenty meeting of South Africa. South Africa shouldn't even be

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Speaker 6: in the geez anymore because what's happened there is bad.

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Speaker 13: I'm not going.

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Speaker 6: I told him, I'm not going. I'm not going to

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Speaker 6: represent our country there.

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Speaker 8: Trump was speaking at a business forum in Miami last

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Speaker 8: night and said the US will stop all aid to

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Speaker 8: Nigeria and go guns a blazing if the country doesn't

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Speaker 8: stop killing Christians. The Israeli military says Hamas has handed

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Speaker 8: over remains believed to be another deceased hostage to the

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Speaker 8: Red Cross. If confirmed by forensic testing, that leaves the

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Speaker 8: remains of just six others in Gaza Here at home,

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Speaker 8: unionized Starbucks baristas are prepping for the biggest strike they've

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Speaker 8: ever been on next week unless they can secure a contract.

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Speaker 8: Those strikes would start November thirteenth, the company's Red Cup Day.

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Speaker 8: And we're learning a little bit more about how jewel

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Speaker 8: thieves were able to crack security at the Louver last

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Speaker 8: month to steal one hundred million dollars worth of Crown Jewels.

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Speaker 8: French prosecutors say the password to the museum's video surveillance

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Speaker 8: system was louver and they were just one camera off

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Speaker 8: from getting caught because there was just one camera on

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Speaker 8: the window they broke into. Four suspects have been charge

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Speaker 8: for the robbery. So far, at least one remains at large.

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Speaker 8: Global News twenty four hours a day and whenever you

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Speaker 8: want it with Bloomberg News Now. I'm Monica Rix and

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Speaker 8: this is Bloomberg Karen.

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Speaker 9: Thanks Monica.

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Speaker 3: Time now for our Bloomberg Sports update, and for that

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Speaker 3: we bring in John stash Hour.

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Speaker 9: Thanks Darin.

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Speaker 13: Week ten in the NFL begins tonight in the AFC West,

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Speaker 13: the two and six Raiders visiting the seven and two Broncos.

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Speaker 13: They've won six in a row. FC South Sunday has

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Speaker 13: Houston at Jacksonville on the Texans will be quarterback by

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Speaker 13: Davis Mills CJ. Stroud out he's in concussion protocol and

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Speaker 13: Arizona QB Kyler Murray's going to miss at least another month.

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Speaker 13: He's been placed on injured reserve. Another milestone for Alex

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Speaker 13: Zobevskin in the last year past, Wayne Gretskin became the

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Speaker 13: NHL's all time leading goal scorer last night, career goal

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Speaker 13: number nine hundred. That to Bloomberg Sports Update.

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Speaker 3: Stay with us more from Bloomberg day Break coming up after.

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Speaker 1: This Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 2: Good morning, I'm Nathan Hager. With the government shutdown in

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Speaker 2: Washington down to a record day thirty seven, the Trump

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Speaker 2: administration says it is forced to cut back on flights

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Speaker 2: in some of the nation's busiest airspace starting on day

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Speaker 2: thirty eight. Transportation Secretary Sean Duffy says there's too much

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Speaker 2: strain on air traffic controllers working through the shutdown without pay.

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Speaker 4: There is going to be a ten percent reduction in

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Speaker 4: capacity at forty of our locations. The administrator is going

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Speaker 4: to tell you that it's been This is database.

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Speaker 2: Transportation Secretary Sean Duffy made the announcement alongside FA Administrator

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Speaker 2: Brian Bedford, and for more, We're joined by Bloomberg News

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Speaker 2: Managing Editor for Space and Aviation, Benedict Camel. Ten percent

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Speaker 2: in forty locations sounds major, Benedict. How disruptive could this be?

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Speaker 11: Good morning, Good morning. Yes, this will be disruptive, and

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Speaker 11: particularly on domestic routes. What we know for now is

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Speaker 11: this isn't going to be on the routes that are

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Speaker 11: in the country in not so much the international routes.

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Speaker 11: If they were to do that, that would be even

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Speaker 11: more disruptive. They're trying to manage it in a sort

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Speaker 11: of cascading way, so we're going to get a four

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Speaker 11: percent cutback first, then five, and then sort of work

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Speaker 11: our way up to ten percent. So it's not going

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Speaker 11: to happen in one fell swoop. We don't yet know

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Speaker 11: where these forty so called high volume markets will be.

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Speaker 11: We'll get the details on that today. And we don't

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Speaker 11: also know whether it will end at ten percent. Sean Duffy,

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Speaker 11: who we just heard, he did say this is a

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Speaker 11: data led exercise and if the data, in his words,

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Speaker 11: goes in the wrong direction, we might see additional restrictions,

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Speaker 11: so ten percent might not even be the end of it.

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Speaker 11: And with every additional percentage point, obviously the pain will

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Speaker 11: become more pronounced for travelers.

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Speaker 2: Even before this announcement, of course, Benedict. We've heard Transportation

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Speaker 2: Secretary Duffy say that he'd be willing to shut down

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Speaker 2: airspace entirely if the safety is an issue during the

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Speaker 2: government shut down.

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Speaker 9: I mean, could we see that go this far?

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Speaker 11: I mean, that's probably the sort of the nuclear option there,

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Speaker 11: I say, and we'll see where this ten percent reduction

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Speaker 11: takes us. What they're trying to do is essentially take

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Speaker 11: capacity out of a very strained market. We have had

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Speaker 11: days where they have been real aseruptions, but we've also

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Speaker 11: had a couple of days where things have sort of

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Speaker 11: hummed along just nicely. It's difficult to see a definitive

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Speaker 11: pattern at this point. It's really up and down, and

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Speaker 11: we are all tracking that very carefully. But one thing

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Speaker 11: is for sure. Sean Duffy has increased the pressure. He's

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Speaker 11: come out continuously in the last week saying we will

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Speaker 11: see disruptions, we will see chaos, we will have to

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Speaker 11: see action as a response. So that's sort of been

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Speaker 11: the continuous theme from the government side. Obviously, there's also

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Speaker 11: a slightly political undertone in that we know that the Republicans.

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Speaker 11: Republicans are blaming the Democrats for the shutdown, so that

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Speaker 11: is a bit of a tool that is being used.

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Speaker 11: But Duffy again will tell you this is the data

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Speaker 11: that we're seeing, and we have to respond.

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Speaker 2: In terms of how the data plays out. How could

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Speaker 2: this unfold working with the airlines to make these flight

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Speaker 2: pullbacks actually happen at airports.

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Speaker 11: So airlines will look at, Okay, where's the capacity that

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Speaker 11: we can take out of the market with minimal disruption.

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Speaker 11: This is why they say for now we're going to

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Speaker 11: foe on regional and domestic mainline flights. So that's an

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Speaker 11: exercise that we will go through in the next couple

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Speaker 11: of days. The good news is we are coming out

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Speaker 11: of the busiest travel season and you know the summer

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Speaker 11: period is over. Yes, we have Thanksgiving still coming up,

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Speaker 11: but right now there's a little bit of a lull

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Speaker 11: and they might be able to accommodate those additional seats

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Speaker 11: that they will need. So we heard from We heard

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Speaker 11: from the United Airlines CEO Scott Kirby last night in

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Speaker 11: a memo to employees where he said, we will try

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Speaker 11: and accommodate all the travelers on the council flights as

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Speaker 11: best as we can. Elsewhere we're working through the system,

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Speaker 11: so they're trying to keep these disruptions to a minimum.

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Speaker 11: They are also looking at the bottom line. This was

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Speaker 11: supposed to be a strong quarter. We came out of

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Speaker 11: a very good third quarter, and the hopes from airlines

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Speaker 11: was that things would continue like this into the fourth quarter.

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Speaker 11: So they obviously also don't want to see a disruption

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Speaker 11: that sort of destroys their earnings in the fourth quarter.

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Speaker 2: In our last thirty seconds, I wanted to ask you

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Speaker 2: about how this could affect airline profitability at a time

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Speaker 2: when we've heard from a number of these airlines during

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Speaker 2: earnings calls that they're seeing a pretty high demand for

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Speaker 2: travel right now.

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Speaker 11: Yes, indeed, so what we're seeing is that more travelers

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Speaker 11: are going into what we call the shoulder season, so

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Speaker 11: the week of fourth quarter they are booking additional flights.

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Speaker 11: We've seen a great focus on premium travel and those

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Speaker 11: are vulnerable markets, and we came into the year with

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Speaker 11: a strong sense of growth. Then we had that dip

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Speaker 11: during what was called Liberation Day. That marketers or the

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Speaker 11: industry has recovered from that, but now we're at that

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Speaker 11: tipping point again where things could go south again.

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