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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 on day seven of the federal government shutdown.

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Speaker 2: The Senate has voted for a fifth time on a

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Speaker 2: stopgap spending bill that would reopen the government until November

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Speaker 2: twenty first, but would not include the healthcare subsidies that

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Speaker 2: Democrats are demanding. That bill has failed for a fifth time,

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Speaker 2: but now President Trump is signaling he's willing to negotiate.

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Speaker 4: We have a negotiation going on right now with the

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Speaker 4: Democrats that could lead to very good things.

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Speaker 5: And I'm talking about good things with regard to healthcare.

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Speaker 2: The President Trump did not say specifically which Democrats he's

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Speaker 2: negotiating with. House Minoriti Leader Hakim Jeffrey says it's not him.

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Speaker 6: Either Leader Schumer or myself have heard a word from

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Speaker 6: the administration about resolving this issue, making clear to us

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Speaker 6: that the White House wanted to shut the government down.

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Speaker 2: That's House Minoriti Leader Hakim Jeffries. Later, President Trump posted

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Speaker 2: on truth Social that he'd be willing to work with Democrats,

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Speaker 2: but only after they allowed the government to reopen. He's

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Speaker 2: also suggested layoffs of federal workers could be triggered if

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Speaker 2: the shutdown continues much longer. Those workers will begin to

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Speaker 2: miss paychecks this Friday, and the military will start going

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Speaker 2: without pay on October fifteenth unless the government reopens well Nathan.

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Speaker 3: President Trump is facing more pushback over his efforts to

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Speaker 3: send the National Guard to counter immigration protesters in major cities.

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Speaker 3: The state of Illinois is suing over the President's plan

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Speaker 3: to deploy the Guard to Chicago, but a federal judge

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Speaker 3: is declining to rule right away on the state's request

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Speaker 3: for a two week haul to the deployment. Illinois Governor J. B.

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Speaker 3: Prisker says the President's moves are entirely political.

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Speaker 7: The Trump administration is following a playbook. Cause chaos, create

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Speaker 7: fear and confusion, make it seem like peaceful protesters are

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Speaker 7: a mob by fire, uring gas pellets and tear gas

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Speaker 7: canisters at them, why to create the pretext for invoking

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Speaker 7: the Insurrection Act.

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Speaker 3: Illinois Governor JB. Pritzker denies the White House's claims that

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Speaker 3: a local police are not doing enough to protect immigration

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Speaker 3: and customs enforcement. US Sister Judge April Perry is not

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Speaker 3: ruling immediately on the state's request for a temporary restraining order,

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Speaker 3: but she says she's troubled by a lack of clarity

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Speaker 3: on where troops should be mobilizing and what they'd be doing.

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Speaker 3: She asked the Trump administration to delay its plans until

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Speaker 3: she holds a hearing on Thursday.

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Speaker 2: Karen, we turned out to the political crisis in France.

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Speaker 2: President Dmanuel McCraw is giving his outgoing Prime Minister Sebastian

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Speaker 2: Lecorneo until tomorrow night to negotiate a last ditch deal

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Speaker 2: to salvage his government. The decision buys mccrawl a little

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Speaker 2: more time to decide his next steps, and we get

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Speaker 2: the latest in Paris from Bloomberg Daybreak. Euro banker Stephen Carroll.

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Speaker 4: What of twenty four hours at spainber we heard, you know,

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Speaker 4: a cobnist only announced on Sunday night, for the prime

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Speaker 4: minister to resign yesterday morning, only to be told no way,

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Speaker 4: go back and try again. You get an extra forty

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Speaker 4: eight hours to try and negotiate some sort of compromise

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Speaker 4: that might eventually lead to a budget Bloomberg.

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Speaker 2: Stephen Carroll says President mccorum's options include appointing a new

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Speaker 2: prime minister, calling a new parliamentary election, or resigning. Opposition

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Speaker 2: groups are clamoring for a fresh legislative vote.

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Speaker 3: Well n than today March, two years since the October seventh,

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Speaker 3: the checks on Israel Hamas in Israel are continuing. Indirect

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Speaker 3: negotiations for a second day in Egypt be the very

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Speaker 3: latest from Bloomberg Middle East correspondent Jumana Burccci.

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Speaker 8: There is a degree of optimism that perhaps this is

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Speaker 8: the diplomatic breakthrough that the families of those hostages have

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Speaker 8: been waiting for, that Palestinians have been striving for. President

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Speaker 8: Trump says, I really think we're going to have a deal.

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Speaker 8: He's personally invested in this, and you can question his motivations,

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Speaker 8: but what is very clear is the US right now

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Speaker 8: the administration is very focused on getting a deal across

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Speaker 8: the line because President jomp seems to think that he's

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Speaker 8: the only world leader capable of getting two piece in Gaza.

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Speaker 8: So there is a lot of stake right now. There's

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Speaker 8: a lot of focus from the international community. Many people

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Speaker 8: are saying that this is perhaps the last real efforts

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Speaker 8: and last attempt to get to some form of resolution,

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Speaker 8: so cautious optim is imprevailing.

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Speaker 3: And Bloomberg Middle East correspondent j Mona Brissecci there twelve

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Speaker 3: hundred people were killed in another two hundred and fifty

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Speaker 3: were abducted. On the attack on Israel two years ago.

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Speaker 3: More than sixty seven thousand Palestinians have been killed in

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Speaker 3: the conflict, according to the AMAS run Health Ministry in

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Speaker 3: the territory.

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Speaker 2: Turning to Wall Street, now Karen futures are lower a

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Speaker 2: day after stocks closed, it yet another record high. The

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Speaker 2: S and P five hundred is now gained for seven

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Speaker 2: straight sessions for its longest winning streak since early May.

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Speaker 2: Leslie Marx is chief investment Officer for Equities at Mackenzie Investments.

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Speaker 9: When you look at the factors that are driving equities,

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Speaker 9: it's been primarily, of course, price momentum. The things that

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Speaker 9: are going higher are what people want, of course, but

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Speaker 9: also earnings momentum has been a top factor, and earnings

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Speaker 9: momentum is a very strong fundamental that we can really

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Speaker 9: anchor ourselves on and say that actually, with these companies

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Speaker 9: reporting strong earnings, we can build comfortable with the higher

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Speaker 9: valuations that they're trading at today.

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Speaker 2: It's Leslie Marcus at mackenzie Investments. The SMP five hundred

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Speaker 2: rows four tenths of one percent yesterday.

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Speaker 3: Well, Nathan, the biggest winner was the Nasdaq one hundred index,

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Speaker 3: which rose another eight tenths of a percent, leading the

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Speaker 3: way Advanced micro Devices, which soared almost twenty four percent

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Speaker 3: after inking a deal with open Ai. AMD will build

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Speaker 3: out AI infrastructure and a pack that chip maker said

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Speaker 3: could generate tens of billions of dollars in new revenue.

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Speaker 3: And we spoke with AMD CEO Lisa Sue.

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Speaker 10: Together now we're embarking on a massive buildout of six

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Speaker 10: gigawatts of AI compute and it's a big deal for us,

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Speaker 10: for our shareholders, for our teams, and you know the

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Speaker 10: partnership and the overall AI ecosystem.

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Speaker 3: And get the full conversation with AMD CEO Lisa Sue

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Speaker 3: and Open Ai president Greg Brockman on the Bloomberg Podcast

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Speaker 3: channel on Youtubell Karen.

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Speaker 2: We've also been speaking with Citadel's Ken Griffin. He says

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Speaker 2: investors are starting to see gold is safer than the dollar.

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Speaker 2: He says that's something people should be worried about. The

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Speaker 2: billionaire says it is clear many are now reassessing the greenback.

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Speaker 11: As you see sovereigns around the world, the central banks

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Speaker 11: around the world, as you see individual investors around the

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Speaker 11: world go, you know what, I now view gold as

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Speaker 11: a safe harbor asset in a way that the dollar

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Speaker 11: used to be viewed. That's that's what's really concerning to me.

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Speaker 2: Ken Griffin made those comments in an interview with Bloomberg's

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Speaker 2: Fancy Lacua at the Citadel Securities Conference. That conversation is

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Speaker 2: also on the Bloomberg Podcast channel on YouTube.

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Speaker 3: In company news, Nathan Bloomberg News has learned Tesla plans

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Speaker 3: to unveil a cheaper version of the Model Y later today.

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Speaker 3: Sources say the cheaper vehicle will lack certain features and

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Speaker 3: use less premium materials to offset the loss of the

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Speaker 3: up to seventy five hundred dollars federal tax credit that

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Speaker 3: the US stopped offering this month.

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Speaker 2: Karen Tesla CEO. Elon Musk has reportedly named a former

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Speaker 2: Morgan Stanley executive the chief financial officer of his artificial

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Speaker 2: intelligence startup XAI. The Financial Times is reporting that Anthony

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Speaker 2: Armstrong will help finance both Xai and Musk's social media

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Speaker 2: platform x The paper says Armstrong helped Musk complete the

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Speaker 2: forty four billion dollar acquisition of the former Twitter.

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Speaker 5: Time.

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Speaker 3: Now for look at some of the other stories making

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Speaker 3: news in New York and around the world, and for

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Speaker 3: that we're joined by Bloomberg's Michael Mahr.

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Speaker 6: Michael, good morning, Good morning Karen.

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Speaker 12: It's the homestretch for the three remaining New York City

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Speaker 12: mayoral candidates. Front Runner Democratic nominee Zoron Mumdani proposes city

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Speaker 12: owned grocery stores, fair free buses, free childcare, and a

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Speaker 12: freeze on rent stabilized apartments. He spoke to ABC seven

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Speaker 12: about how it will be funded.

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Speaker 4: By increasing taxes on the top one percent of New

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Speaker 4: Yorkers by two percent.

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Speaker 3: It is by increasing the state's top corporate tax rate

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Speaker 3: to match that of New Jersey.

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Speaker 12: Meanwhile, former New York Governor Andrew Cuomo, running as an independent,

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Speaker 12: says if Mamdani wins the election in November, it would

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Speaker 12: be a gift to President Trump.

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Speaker 8: He said, if they elect this person, then I Donald Trump,

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Speaker 8: I'm going to have to step in take over New

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Speaker 8: York to protect the good people of New York.

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Speaker 12: Cuomo spoke yesterday on ABC's The View Mamdani leads the

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Speaker 12: field in the polls over Cuomo and Republican Curtis Sliwa

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Speaker 12: on Bloomberg's Leewa says the polls had been wrong several times.

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Speaker 5: Two munch into the Democratic primary, they were preparing the

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Speaker 5: coronation of Andrew Cuomo as on next MAYA forty points

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Speaker 5: ahead is Johann Mandani. He lust by thirteen points. I

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Speaker 5: look at my mentor in this rate, George Bataki on

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Speaker 5: November second of nineteen ninety four against the better Cuomo Mario.

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Speaker 5: They had him down by twelve points. He won by

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Speaker 5: three points.

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Speaker 12: Current Mayor Eric Adams dropped out of the race about

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Speaker 12: a week ago. Former Mayor Michael Bloomberg, founder and majority

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Speaker 12: owner of Bloomberg News parent Bloomberg Lp, endorsed Cuomo in

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Speaker 12: the primary and has contributed to a pack supporting his candidacy.

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Speaker 12: Sean Diddycomb's lawyers want the hip hop mogul sent to

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Speaker 12: a low security federal prison in New Jersey to serve

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Speaker 12: his four year prison sentence. They were told a judge

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Speaker 12: Monday that the facility's drug treatment program will help him

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Speaker 12: stay clean. The Supreme Court has rejected an appeal from

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Speaker 12: Glaine Maxwell, the imprisoned ex girlfriend of Jeffrey Epstein. The

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Speaker 12: Justices declined to take up a case that would have

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Speaker 12: renewed attention on the Epstein's sexual abuse saget. Lawyers from

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Speaker 12: Maxwell argued she never should have been tried or convicted

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Speaker 12: for a role in luring teenage girls be sexually abused

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Speaker 12: by Epstein. Global News twenty four hours, a date and

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Speaker 12: whenever you want it with the Bloomberg News Now now

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Speaker 12: Michael Barrn, this is Bloomberg Karen.

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Speaker 3: Thanks Michael, time now for our Bloomberg Sports update, and

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Speaker 3: for that we bring in John stash Hour.

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Speaker 13: Thanks Staring. A pair of NLDS game twos. The Dodgers,

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Speaker 13: with four runs in the seventh inning, held on on

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Speaker 13: the bottom of the ninth and beat the Phillies four

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Speaker 13: to three, and they go back to LA with the

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Speaker 13: two games to none lead. The Brewers hit three home runs,

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Speaker 13: two of them were three run shots, a seven to

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Speaker 13: three win over the Cubs. Milwaukee leads the series two zip.

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Speaker 13: Mother Night football in Jacksonville, Kansas City had a two

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Speaker 13: touchdown lead, then trailed retook the lead with less than

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Speaker 13: two minutes ago. Trevor Lawrence slipped and fell getting a snap,

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Speaker 13: but scored a one yard run with twenty three seconds lap.

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Speaker 13: The Jags won thirty one twenty eight. That's your Bloomberg

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Speaker 13: Sports Update.

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

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Speaker 3: after this.

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

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

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

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Speaker 2: Good morning, I'm Nathan Hager. Forty eight hours. That is

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Speaker 2: the window that French President Emanuel mccron has given his

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Speaker 2: newest Prime Minister, Sebastian Lecornu to salvage his government and

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Speaker 2: keep their country from going even deeper into a political

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Speaker 2: crisis that had Lecornu announcing his resignation only yesterday. Joining

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Speaker 2: us from Paris for the very latest his Bloomberg Daybreak,

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Speaker 2: Europe Banker Stephen Carroll, Stephen, good morning. It took Prime

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Speaker 2: Minister Lecorno less than twenty four hours to hand in

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Speaker 2: his walking papers. Will another forty eight make a difference?

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Speaker 2: Good morning, Good morning, Nathany.

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Speaker 4: I mean, that's the question that everyone in Paris here

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Speaker 4: is wondering about, and indeed across France, because we are

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Speaker 4: looking at a situation where the the first of those

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Speaker 4: meetings that Sebastian Lecorneo was due to hold with the

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Speaker 4: center right political parties has just finished in the past

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Speaker 4: few minutes. No news of what was discussed just yet,

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Speaker 4: but they were trying essentially to rebuild the coalition they

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Speaker 4: had before it all fell apart yesterday morning and Sebastian

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Speaker 4: and the Coornu resigned. So that's the first goal they

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Speaker 4: have to try and get back to where they started from.

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Speaker 4: But that still doesn't leave them with a sufficient number

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Speaker 4: of parliamentarians to pass a budget, which is of course

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Speaker 4: the broader goal. A question that we'll have to try

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Speaker 4: and answer between now and tomorrow night is whether or

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Speaker 4: not there's any hope for the original alliance or indeed

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Speaker 4: an expanded alliance that might actually be able to make

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Speaker 4: progress on this key point. The optimism is fairly thin

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Speaker 4: at the moment. I think it's fair to say the

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Speaker 4: markets so have cammed down a little. We're still looking

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Speaker 4: at that spread between French and German bonds at over

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Speaker 4: eighty basis points. That's our critical measure of risk that

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Speaker 4: we're watching in markets. Markets certainly got a fright when

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Speaker 4: Sebastian the Coornu resigned yesterday. But things are at least

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Speaker 4: in a holding pattern for now.

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Speaker 2: So what are the options for Lacornu with this clock

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Speaker 2: ticking down now?

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Speaker 4: Well, look, he has to try and make sure, first

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Speaker 4: of all, the original partners are on board, and we're

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Speaker 4: talking mostly about the center right Republicans Party led by

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Speaker 4: the outgoing interim Interior Minister, whatever term he'd like to

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Speaker 4: apply at the moment, Bruno Rataio. He's not taken part

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Speaker 4: in that meeting this morning at the Prime Minister's office,

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Speaker 4: although he has spoken directly to Sebas General Kornu. If

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Speaker 4: he comes back on board, at least there's some hope

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Speaker 4: of that coalition holding together. The issue is and was,

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Speaker 4: whether or not you can convince the center left Socialist

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Speaker 4: Party to get on board and to help put together

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Speaker 4: a budget plan, which is what they're all trying to

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Speaker 4: work towards. If that doesn't happen by tomorrow evening, Emmanuel

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Speaker 4: Macron has used this expression he will take his responsibilities now.

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Speaker 4: Plenty of interpretation as to what that might mean, but

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Speaker 4: it's seen as a sort of veiled threat to these parties,

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Speaker 4: to that he will hold fresh parliamentary elections if there

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Speaker 4: isn't an agreement reached. And those centrist parties, according to

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Speaker 4: the polls, are those that are likely to suffer. From

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Speaker 4: the center left to the center right, those are the

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Speaker 4: parties likely to lose out. Voters seem more likely to

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Speaker 4: go to the extremes, the far left and the far right.

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Speaker 4: So that is the threat whether if you don't manage

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Speaker 4: to put together a deal and agree to something now,

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Speaker 4: is that you could end up in a worse off

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Speaker 4: position afterwards.

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Speaker 2: And it sounds Stephen like that's the kind of threat

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Speaker 2: that could hurt President Macron himself politically. I mean, we've

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Speaker 2: talked before about how he's resisted all this time the

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Speaker 2: idea of resigning himself. But what are the options for

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Speaker 2: President Macron if there if it comes to the point

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Speaker 2: that they could be calling a new election.

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Speaker 4: Well, look, the same three options are on the table

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Speaker 4: for him now that have been every time that he's

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Speaker 4: found himself in this situation, and it's been fairly frequent

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Speaker 4: over the past two years. He can find a new

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Speaker 4: Prime Minister or even reappoints abas General Kornu, by the way,

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Speaker 4: that's still on the table, he can call those parliamentary

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Speaker 4: elections we talked about, or he could go as far

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Speaker 4: as resigning. One key development in the conversations this morning

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Speaker 4: has been the commentary from one of Macron's closest allies,

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Speaker 4: Eduar Philippoho's's first prime minister when he was elected in

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Speaker 4: twenty seventeen. Now they've had somewhat of a political separation since,

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Speaker 4: but have remained close allies. And Edward Philippe said this

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Speaker 4: morning that Emmanuel Macron should call early presidential elections once

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Speaker 4: he has passed this budget. That is a big departure

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Speaker 4: from Edward Philippe's position. It's an indication of how even

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Speaker 4: Macron's close allies are a bit fed up with them.

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Speaker 4: The leader of Macron's own party on television last night,

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Speaker 4: by the way, admitted he didn't understand the decisions that

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Speaker 4: Emmanuel Macron was making any more. Now you have to

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Speaker 4: think about this in a broader political context. All of

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Speaker 4: these political figures and political parties are thinking about the

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Speaker 4: next presidential election, currently scheduled for twenty twenty seven. They

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Speaker 4: might want to put a bit of clear blue water

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Speaker 4: between themselves and Emmanuel Macron to make things easier for

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Speaker 4: them and to increase their own prospects of election. From

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Speaker 4: the Elise's point of view, no sign or sound that

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Speaker 4: Emmanuel Macron's even considering resigning for now. That's been ruled

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Speaker 4: out by everyone that we've heard of, and the last

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Speaker 4: time we heard from Emmanuel Macron himself, he's also ruled

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Speaker 4: it out. But a lot can happen, as we know

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Speaker 4: in French politics, in a short period of time, and

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Speaker 4: we're still about thirty six hours away from that deadline

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Speaker 4: set tomorrow evening.

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