Speaker 1: News when you want it with Bloomberg News Now, I'm
Speaker 1: Doug Prisner. We begin in Washington, where President Trump signed
Speaker 1: an executive order to largely dismantle the Education Department. Secretary
Speaker 1: Linda McMahon has been directed to take all necessary steps
Speaker 1: to facilitate its closure. The aim is to transfer functions
Speaker 1: to states and other federal agencies. Here's McMahon speaking earlier
Speaker 1: on Fox News.
Speaker 2: But clearly he wanted to state and let Congress know
Speaker 2: that he intends to work with them. I want Congress
Speaker 2: to be a partner in this, and I believe they
Speaker 2: will be because both sides of the aisle know that
Speaker 2: what is happening to education in our country cannot be
Speaker 2: allowed to stand because we are failing our students.
Speaker 1: That was Secretary of Education Linda McMahon speaking earlier on
Speaker 1: Fox News. This plan now faces potential clashes with both
Speaker 1: labor unions and lawmakers. This would potentially include Cole. The
Speaker 1: aim is to make the US less reliant on foreign imports.
Speaker 1: The executive order does tap the Defence Production Act to
Speaker 1: provide financing, loans and other investment. Separately, Trump said the
Speaker 1: US will be signing a deal very shortly on rare
Speaker 1: earth minerals with Ukraine.
Speaker 3: We're also signing agreements in various locations to unlock rare
Speaker 3: earths and minerals and lots of other things all over
Speaker 3: the world, but in particular Ukraine. We're doing very well
Speaker 3: with regard to Ukraine and Russia. And one of the
Speaker 3: things we are doing is signing a deal very shortly
Speaker 3: with respect to rare earths with Ukraine, which they have
Speaker 3: a tremendous value in rare earth.
Speaker 1: And we appreciate that President Trump speaking there. The Pentagon
Speaker 1: is reportedly scheduled on Friday to brief Elon Musk on
Speaker 1: the US military's plan for any war that might break
Speaker 1: out with China. The New York Times says the meeting
Speaker 1: reflects the extraordinary dual role played by Musk, both the
Speaker 1: world's wealthiest man and someone given broad authority by President Trump.
Speaker 1: Now we know that Musk is the chief executive of SpaceX,
Speaker 1: a leading supplier to the Pentagon, and Tesla, a company
Speaker 1: with operations in China. A federal judge has temporarily blocked
Speaker 1: the government's Efficiency team from accessing the personal information of
Speaker 1: Americans in the Social Security Administration system. Now, this decision
Speaker 1: could delay payments to millions of beneficiaries. The restraining order
Speaker 1: will apply for fourteen days while the judge weighs whether
Speaker 1: to grant a longer term injunction and prohibit officials at
Speaker 1: the Social Security Administration from giving Elon Musk and others
Speaker 1: affiliated with DOJE access to the agency system. In Israel,
Speaker 1: Prime Minister Benjamin at Niahu's request to fire the head
Speaker 1: of the country's domestic intelligence agency has been approved by
Speaker 1: the cabinet. The decision to sak Ronenbard deepens a power
Speaker 1: struggle focused largely on who bears the responsibility for the
Speaker 1: Hamas attack. On October seventh, the decision was made despite
Speaker 1: thousands of protests rallying against bars removal. We moved to
Speaker 1: earnings news next after the bell, Nike reported results above
Speaker 1: analyst expectations. Yes, revenue was down nine percent to eleven
Speaker 1: point three billion dollars. However, that was better than the
Speaker 1: eleven percent drop Wall Street had predicted. We got reaction
Speaker 1: from Bloomberg analyst Punam Goyeut.
Speaker 4: What also stood out was a gross margin. It was
Speaker 4: a little better, and that's also a good sign. But
Speaker 4: you know what we're really watching for is that the
Speaker 4: inventory number here right, because that is the reason why
Speaker 4: sales are down so much, because they have to get
Speaker 4: rid of all this inventory and they're discounting it. So
Speaker 4: we still need to see that improve and it means
Speaker 4: that four Q their fiscal four Q could still be choppy,
Speaker 4: but they are moving in the right direction.
Speaker 1: That is Punam Goye out for Bloomberg Intelligence. Then the
Speaker 1: trouble came later in a call with analyst when Nike
Speaker 1: forecast digital traffic would be down double digits in fiscal
Speaker 1: twenty twenty six. The stock right now is off more
Speaker 1: than four percent in late US trading, all so heart
Speaker 1: after the belt from FedEx, the company lowered its full
Speaker 1: year profit outlook for a third consecutive quarter. The company's
Speaker 1: bottom line is being squeezed by mounting economic uncertainty and
Speaker 1: sputtering demand. We got reaction to the news on FedEx
Speaker 1: from Leek Classcow at Bloomberg Intelligence.
Speaker 5: The demand picture is probably not as good as we
Speaker 5: thought it might have been three months ago. You know,
Speaker 5: when when you know President Trump was elected, and you know,
Speaker 5: people thought the animal spirits will be released, and you know,
Speaker 5: we'd have a less regulation, kind of lower tax environment,
Speaker 5: which is obviously better for business. But fast forward today,
Speaker 5: you know companies are reeling in their cap X because
Speaker 5: they just don't know what the future holds.
Speaker 1: That is Bloomberg's leak. Classcow shares and FedEx were down
Speaker 1: more than five percent in late US trading. And that
Speaker 1: is news when you want it with Bloomberg News. Now,
Speaker 1: I'm Doug Krisner, and this is Bloomberg