WEBVTT - Trump Opens Door to Shutdown Talks; National Guard Deployments Continue

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

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<v Speaker 2>Good morning.

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

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

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<v Speaker 2>Karen, we begin on day seven of the federal government shutdown.

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<v Speaker 2>The Senate has voted for a fifth time on a

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<v Speaker 2>stopgap spending bill that would reopen the government until November

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<v Speaker 2>twenty first, but would not include the healthcare subsidies that

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<v Speaker 2>Democrats are demanding. That bill has failed for a fifth time,

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<v Speaker 2>but now President Trump is signaling he's willing to negotiate.

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<v Speaker 4>We have a negotiation going on right now with the

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<v Speaker 4>Democrats that could lead to very good things.

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<v Speaker 5>And I'm talking about good things with regard to healthcare.

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<v Speaker 2>The President Trump did not say specifically which Democrats he's

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

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<v Speaker 6>Either Leader Schumer or myself have heard a word from

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<v Speaker 6>the administration about resolving this issue, making clear to us

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<v Speaker 6>that the White House wanted to shut the government down.

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

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

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<v Speaker 2>but only after they allowed the government to reopen. He's

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<v Speaker 2>also suggested layoffs of federal workers could be triggered if

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<v Speaker 2>the shutdown continues much longer. Those workers will begin to

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<v Speaker 2>miss paychecks this Friday, and the military will start going

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<v Speaker 2>without pay on October fifteenth unless the government reopens well Nathan.

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<v Speaker 3>President Trump is facing more pushback over his efforts to

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<v Speaker 3>send the National Guard to counter immigration protesters in major cities.

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<v Speaker 3>The state of Illinois is suing over the President's plan

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<v Speaker 3>to deploy the Guard to Chicago, but a federal judge

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<v Speaker 3>is declining to rule right away on the state's request

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<v Speaker 3>for a two week haul to the deployment. Illinois Governor J. B.

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<v Speaker 3>Prisker says the President's moves are entirely political.

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<v Speaker 7>The Trump administration is following a playbook. Cause chaos, create

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<v Speaker 7>fear and confusion, make it seem like peaceful protesters are

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<v Speaker 7>a mob by fire, uring gas pellets and tear gas

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<v Speaker 7>canisters at them, why to create the pretext for invoking

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<v Speaker 7>the Insurrection Act.

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<v Speaker 3>Illinois Governor JB. Pritzker denies the White House's claims that

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<v Speaker 3>a local police are not doing enough to protect immigration

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<v Speaker 3>and customs enforcement. US Sister Judge April Perry is not

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

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<v Speaker 3>but she says she's troubled by a lack of clarity

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<v Speaker 3>on where troops should be mobilizing and what they'd be doing.

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<v Speaker 3>She asked the Trump administration to delay its plans until

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<v Speaker 3>she holds a hearing on Thursday.

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<v Speaker 2>Karen, we turned out to the political crisis in France.

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<v Speaker 2>President Dmanuel McCraw is giving his outgoing Prime Minister Sebastian

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<v Speaker 2>Lecorneo until tomorrow night to negotiate a last ditch deal

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<v Speaker 2>to salvage his government. The decision buys mccrawl a little

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<v Speaker 2>more time to decide his next steps, and we get

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<v Speaker 2>the latest in Paris from Bloomberg Daybreak. Euro banker Stephen Carroll.

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<v Speaker 4>What of twenty four hours at spainber we heard, you know,

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<v Speaker 4>a cobnist only announced on Sunday night, for the prime

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<v Speaker 4>minister to resign yesterday morning, only to be told no way,

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<v Speaker 4>go back and try again. You get an extra forty

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<v Speaker 4>eight hours to try and negotiate some sort of compromise

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<v Speaker 4>that might eventually lead to a budget Bloomberg.

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<v Speaker 2>Stephen Carroll says President mccorum's options include appointing a new

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<v Speaker 2>prime minister, calling a new parliamentary election, or resigning. Opposition

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<v Speaker 2>groups are clamoring for a fresh legislative vote.

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<v Speaker 3>Well n than today March, two years since the October seventh,

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<v Speaker 3>the checks on Israel Hamas in Israel are continuing. Indirect

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<v Speaker 3>negotiations for a second day in Egypt be the very

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<v Speaker 3>latest from Bloomberg Middle East correspondent Jumana Burccci.

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<v Speaker 8>There is a degree of optimism that perhaps this is

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<v Speaker 8>the diplomatic breakthrough that the families of those hostages have

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<v Speaker 8>been waiting for, that Palestinians have been striving for. President

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

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

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<v Speaker 8>but what is very clear is the US right now

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<v Speaker 8>the administration is very focused on getting a deal across

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<v Speaker 8>the line because President jomp seems to think that he's

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<v Speaker 8>the only world leader capable of getting two piece in Gaza.

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<v Speaker 8>So there is a lot of stake right now. There's

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<v Speaker 8>a lot of focus from the international community. Many people

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<v Speaker 8>are saying that this is perhaps the last real efforts

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<v Speaker 8>and last attempt to get to some form of resolution,

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<v Speaker 8>so cautious optim is imprevailing.

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<v Speaker 3>And Bloomberg Middle East correspondent j Mona Brissecci there twelve

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<v Speaker 3>hundred people were killed in another two hundred and fifty

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<v Speaker 3>were abducted. On the attack on Israel two years ago.

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<v Speaker 3>More than sixty seven thousand Palestinians have been killed in

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<v Speaker 3>the conflict, according to the AMAS run Health Ministry in

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<v Speaker 3>the territory.

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<v Speaker 2>Turning to Wall Street, now Karen futures are lower a

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<v Speaker 2>day after stocks closed, it yet another record high. The

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<v Speaker 2>S and P five hundred is now gained for seven

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<v Speaker 2>straight sessions for its longest winning streak since early May.

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<v Speaker 2>Leslie Marx is chief investment Officer for Equities at Mackenzie Investments.

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<v Speaker 9>When you look at the factors that are driving equities,

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

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<v Speaker 9>are going higher are what people want, of course, but

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<v Speaker 9>also earnings momentum has been a top factor, and earnings

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<v Speaker 9>momentum is a very strong fundamental that we can really

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<v Speaker 9>anchor ourselves on and say that actually, with these companies

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<v Speaker 9>reporting strong earnings, we can build comfortable with the higher

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<v Speaker 9>valuations that they're trading at today.

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<v Speaker 2>It's Leslie Marcus at mackenzie Investments. The SMP five hundred

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<v Speaker 2>rows four tenths of one percent yesterday.

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<v Speaker 3>Well, Nathan, the biggest winner was the Nasdaq one hundred index,

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<v Speaker 3>which rose another eight tenths of a percent, leading the

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<v Speaker 3>way Advanced micro Devices, which soared almost twenty four percent

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<v Speaker 3>after inking a deal with open Ai. AMD will build

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<v Speaker 3>out AI infrastructure and a pack that chip maker said

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<v Speaker 3>could generate tens of billions of dollars in new revenue.

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<v Speaker 3>And we spoke with AMD CEO Lisa Sue.

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<v Speaker 10>Together now we're embarking on a massive buildout of six

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

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<v Speaker 10>for our shareholders, for our teams, and you know the

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<v Speaker 10>partnership and the overall AI ecosystem.

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<v Speaker 3>And get the full conversation with AMD CEO Lisa Sue

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<v Speaker 3>and Open Ai president Greg Brockman on the Bloomberg Podcast

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<v Speaker 3>channel on Youtubell Karen.

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

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<v Speaker 2>investors are starting to see gold is safer than the dollar.

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<v Speaker 2>He says that's something people should be worried about. The

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<v Speaker 2>billionaire says it is clear many are now reassessing the greenback.

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<v Speaker 11>As you see sovereigns around the world, the central banks

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<v Speaker 11>around the world, as you see individual investors around the

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<v Speaker 11>world go, you know what, I now view gold as

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<v Speaker 11>a safe harbor asset in a way that the dollar

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<v Speaker 11>used to be viewed. That's that's what's really concerning to me.

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<v Speaker 2>Ken Griffin made those comments in an interview with Bloomberg's

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<v Speaker 2>Fancy Lacua at the Citadel Securities Conference. That conversation is

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<v Speaker 2>also on the Bloomberg Podcast channel on YouTube.

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<v Speaker 3>In company news, Nathan Bloomberg News has learned Tesla plans

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<v Speaker 3>to unveil a cheaper version of the Model Y later today.

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<v Speaker 3>Sources say the cheaper vehicle will lack certain features and

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<v Speaker 3>use less premium materials to offset the loss of the

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<v Speaker 3>up to seventy five hundred dollars federal tax credit that

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<v Speaker 3>the US stopped offering this month.

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<v Speaker 2>Karen Tesla CEO. Elon Musk has reportedly named a former

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<v Speaker 2>Morgan Stanley executive the chief financial officer of his artificial

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<v Speaker 2>intelligence startup XAI. The Financial Times is reporting that Anthony

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<v Speaker 2>Armstrong will help finance both Xai and Musk's social media

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<v Speaker 2>platform x The paper says Armstrong helped Musk complete the

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<v Speaker 2>forty four billion dollar acquisition of the former Twitter.

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<v Speaker 5>Time.

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<v Speaker 3>Now for look at some of the other stories making

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

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<v Speaker 3>that we're joined by Bloomberg's Michael Mahr.

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<v Speaker 6>Michael, good morning, Good morning Karen.

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<v Speaker 12>It's the homestretch for the three remaining New York City

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<v Speaker 12>mayoral candidates. Front Runner Democratic nominee Zoron Mumdani proposes city

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<v Speaker 12>owned grocery stores, fair free buses, free childcare, and a

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<v Speaker 12>freeze on rent stabilized apartments. He spoke to ABC seven

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<v Speaker 12>about how it will be funded.

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<v Speaker 4>By increasing taxes on the top one percent of New

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<v Speaker 4>Yorkers by two percent.

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<v Speaker 3>It is by increasing the state's top corporate tax rate

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<v Speaker 3>to match that of New Jersey.

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<v Speaker 12>Meanwhile, former New York Governor Andrew Cuomo, running as an independent,

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<v Speaker 12>says if Mamdani wins the election in November, it would

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<v Speaker 12>be a gift to President Trump.

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<v Speaker 8>He said, if they elect this person, then I Donald Trump,

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<v Speaker 8>I'm going to have to step in take over New

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<v Speaker 8>York to protect the good people of New York.

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<v Speaker 12>Cuomo spoke yesterday on ABC's The View Mamdani leads the

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<v Speaker 12>field in the polls over Cuomo and Republican Curtis Sliwa

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

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<v Speaker 5>Two munch into the Democratic primary, they were preparing the

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<v Speaker 5>coronation of Andrew Cuomo as on next MAYA forty points

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<v Speaker 5>ahead is Johann Mandani. He lust by thirteen points. I

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<v Speaker 5>look at my mentor in this rate, George Bataki on

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<v Speaker 5>November second of nineteen ninety four against the better Cuomo Mario.

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<v Speaker 5>They had him down by twelve points. He won by

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<v Speaker 5>three points.

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<v Speaker 12>Current Mayor Eric Adams dropped out of the race about

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<v Speaker 12>a week ago. Former Mayor Michael Bloomberg, founder and majority

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<v Speaker 12>owner of Bloomberg News parent Bloomberg Lp, endorsed Cuomo in

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<v Speaker 12>the primary and has contributed to a pack supporting his candidacy.

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<v Speaker 12>Sean Diddycomb's lawyers want the hip hop mogul sent to

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<v Speaker 12>a low security federal prison in New Jersey to serve

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<v Speaker 12>his four year prison sentence. They were told a judge

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<v Speaker 12>Monday that the facility's drug treatment program will help him

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<v Speaker 12>stay clean. The Supreme Court has rejected an appeal from

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<v Speaker 12>Glaine Maxwell, the imprisoned ex girlfriend of Jeffrey Epstein. The

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<v Speaker 12>Justices declined to take up a case that would have

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<v Speaker 12>renewed attention on the Epstein's sexual abuse saget. Lawyers from

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<v Speaker 12>Maxwell argued she never should have been tried or convicted

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<v Speaker 12>for a role in luring teenage girls be sexually abused

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<v Speaker 12>by Epstein. Global News twenty four hours, a date and

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<v Speaker 12>whenever you want it with the Bloomberg News Now now

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<v Speaker 12>Michael Barrn, this is Bloomberg Karen.

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<v Speaker 3>Thanks Michael, time now for our Bloomberg Sports update, and

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<v Speaker 3>for that we bring in John stash Hour.

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<v Speaker 13>Thanks Staring. A pair of NLDS game twos. The Dodgers,

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<v Speaker 13>with four runs in the seventh inning, held on on

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<v Speaker 13>the bottom of the ninth and beat the Phillies four

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<v Speaker 13>to three, and they go back to LA with the

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<v Speaker 13>two games to none lead. The Brewers hit three home runs,

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<v Speaker 13>two of them were three run shots, a seven to

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<v Speaker 13>three win over the Cubs. Milwaukee leads the series two zip.

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<v Speaker 13>Mother Night football in Jacksonville, Kansas City had a two

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<v Speaker 13>touchdown lead, then trailed retook the lead with less than

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<v Speaker 13>two minutes ago. Trevor Lawrence slipped and fell getting a snap,

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<v Speaker 13>but scored a one yard run with twenty three seconds lap.

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<v Speaker 13>The Jags won thirty one twenty eight. That's your Bloomberg

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<v Speaker 13>Sports Update.

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

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<v Speaker 3>after this.

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

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

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

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

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<v Speaker 2>the window that French President Emanuel mccron has given his

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<v Speaker 2>newest Prime Minister, Sebastian Lecornu to salvage his government and

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<v Speaker 2>keep their country from going even deeper into a political

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<v Speaker 2>crisis that had Lecornu announcing his resignation only yesterday. Joining

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<v Speaker 2>us from Paris for the very latest his Bloomberg Daybreak,

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<v Speaker 2>Europe Banker Stephen Carroll, Stephen, good morning. It took Prime

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<v Speaker 2>Minister Lecorno less than twenty four hours to hand in

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<v Speaker 2>his walking papers. Will another forty eight make a difference?

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<v Speaker 2>Good morning, Good morning, Nathany.

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<v Speaker 4>I mean, that's the question that everyone in Paris here

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<v Speaker 4>is wondering about, and indeed across France, because we are

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<v Speaker 4>looking at a situation where the the first of those

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<v Speaker 4>meetings that Sebastian Lecorneo was due to hold with the

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<v Speaker 4>center right political parties has just finished in the past

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<v Speaker 4>few minutes. No news of what was discussed just yet,

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<v Speaker 4>but they were trying essentially to rebuild the coalition they

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<v Speaker 4>had before it all fell apart yesterday morning and Sebastian

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<v Speaker 4>and the Coornu resigned. So that's the first goal they

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<v Speaker 4>have to try and get back to where they started from.

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<v Speaker 4>But that still doesn't leave them with a sufficient number

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<v Speaker 4>of parliamentarians to pass a budget, which is of course

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<v Speaker 4>the broader goal. A question that we'll have to try

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<v Speaker 4>and answer between now and tomorrow night is whether or

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<v Speaker 4>not there's any hope for the original alliance or indeed

0:12:25.960 --> 0:12:28.480
<v Speaker 4>an expanded alliance that might actually be able to make

0:12:28.559 --> 0:12:32.400
<v Speaker 4>progress on this key point. The optimism is fairly thin

0:12:32.760 --> 0:12:34.520
<v Speaker 4>at the moment. I think it's fair to say the

0:12:34.520 --> 0:12:36.760
<v Speaker 4>markets so have cammed down a little. We're still looking

0:12:36.800 --> 0:12:39.839
<v Speaker 4>at that spread between French and German bonds at over

0:12:40.080 --> 0:12:42.720
<v Speaker 4>eighty basis points. That's our critical measure of risk that

0:12:42.720 --> 0:12:45.160
<v Speaker 4>we're watching in markets. Markets certainly got a fright when

0:12:45.200 --> 0:12:47.959
<v Speaker 4>Sebastian the Coornu resigned yesterday. But things are at least

0:12:47.960 --> 0:12:49.160
<v Speaker 4>in a holding pattern for now.

0:12:49.679 --> 0:12:53.640
<v Speaker 2>So what are the options for Lacornu with this clock

0:12:53.760 --> 0:12:54.680
<v Speaker 2>ticking down now?

0:12:55.360 --> 0:12:57.440
<v Speaker 4>Well, look, he has to try and make sure, first

0:12:57.440 --> 0:12:59.240
<v Speaker 4>of all, the original partners are on board, and we're

0:12:59.240 --> 0:13:02.640
<v Speaker 4>talking mostly about the center right Republicans Party led by

0:13:02.679 --> 0:13:06.200
<v Speaker 4>the outgoing interim Interior Minister, whatever term he'd like to

0:13:06.200 --> 0:13:09.480
<v Speaker 4>apply at the moment, Bruno Rataio. He's not taken part

0:13:09.480 --> 0:13:12.000
<v Speaker 4>in that meeting this morning at the Prime Minister's office,

0:13:12.040 --> 0:13:14.679
<v Speaker 4>although he has spoken directly to Sebas General Kornu. If

0:13:14.720 --> 0:13:17.559
<v Speaker 4>he comes back on board, at least there's some hope

0:13:17.679 --> 0:13:21.200
<v Speaker 4>of that coalition holding together. The issue is and was,

0:13:21.480 --> 0:13:24.040
<v Speaker 4>whether or not you can convince the center left Socialist

0:13:24.040 --> 0:13:26.440
<v Speaker 4>Party to get on board and to help put together

0:13:26.559 --> 0:13:28.840
<v Speaker 4>a budget plan, which is what they're all trying to

0:13:29.160 --> 0:13:32.920
<v Speaker 4>work towards. If that doesn't happen by tomorrow evening, Emmanuel

0:13:32.960 --> 0:13:36.520
<v Speaker 4>Macron has used this expression he will take his responsibilities now.

0:13:36.559 --> 0:13:38.720
<v Speaker 4>Plenty of interpretation as to what that might mean, but

0:13:38.720 --> 0:13:42.079
<v Speaker 4>it's seen as a sort of veiled threat to these parties,

0:13:42.400 --> 0:13:46.880
<v Speaker 4>to that he will hold fresh parliamentary elections if there

0:13:46.920 --> 0:13:49.800
<v Speaker 4>isn't an agreement reached. And those centrist parties, according to

0:13:49.800 --> 0:13:52.000
<v Speaker 4>the polls, are those that are likely to suffer. From

0:13:52.000 --> 0:13:54.240
<v Speaker 4>the center left to the center right, those are the

0:13:54.240 --> 0:13:56.920
<v Speaker 4>parties likely to lose out. Voters seem more likely to

0:13:56.960 --> 0:13:59.920
<v Speaker 4>go to the extremes, the far left and the far right.

0:14:00.360 --> 0:14:02.520
<v Speaker 4>So that is the threat whether if you don't manage

0:14:02.520 --> 0:14:04.920
<v Speaker 4>to put together a deal and agree to something now,

0:14:05.280 --> 0:14:07.080
<v Speaker 4>is that you could end up in a worse off

0:14:07.120 --> 0:14:08.119
<v Speaker 4>position afterwards.

0:14:08.160 --> 0:14:10.480
<v Speaker 2>And it sounds Stephen like that's the kind of threat

0:14:10.520 --> 0:14:14.680
<v Speaker 2>that could hurt President Macron himself politically. I mean, we've

0:14:14.720 --> 0:14:18.200
<v Speaker 2>talked before about how he's resisted all this time the

0:14:18.280 --> 0:14:22.160
<v Speaker 2>idea of resigning himself. But what are the options for

0:14:22.240 --> 0:14:25.440
<v Speaker 2>President Macron if there if it comes to the point

0:14:25.480 --> 0:14:27.640
<v Speaker 2>that they could be calling a new election.

0:14:28.080 --> 0:14:29.800
<v Speaker 4>Well, look, the same three options are on the table

0:14:29.800 --> 0:14:32.160
<v Speaker 4>for him now that have been every time that he's

0:14:32.360 --> 0:14:34.840
<v Speaker 4>found himself in this situation, and it's been fairly frequent

0:14:35.000 --> 0:14:37.760
<v Speaker 4>over the past two years. He can find a new

0:14:37.800 --> 0:14:40.760
<v Speaker 4>Prime Minister or even reappoints abas General Kornu, by the way,

0:14:40.760 --> 0:14:42.920
<v Speaker 4>that's still on the table, he can call those parliamentary

0:14:42.960 --> 0:14:45.640
<v Speaker 4>elections we talked about, or he could go as far

0:14:46.040 --> 0:14:49.160
<v Speaker 4>as resigning. One key development in the conversations this morning

0:14:49.200 --> 0:14:52.520
<v Speaker 4>has been the commentary from one of Macron's closest allies,

0:14:52.680 --> 0:14:55.680
<v Speaker 4>Eduar Philippoho's's first prime minister when he was elected in

0:14:55.760 --> 0:14:59.120
<v Speaker 4>twenty seventeen. Now they've had somewhat of a political separation since,

0:14:59.160 --> 0:15:01.600
<v Speaker 4>but have remained close allies. And Edward Philippe said this

0:15:01.680 --> 0:15:06.120
<v Speaker 4>morning that Emmanuel Macron should call early presidential elections once

0:15:06.160 --> 0:15:10.000
<v Speaker 4>he has passed this budget. That is a big departure

0:15:10.120 --> 0:15:13.560
<v Speaker 4>from Edward Philippe's position. It's an indication of how even

0:15:13.600 --> 0:15:15.920
<v Speaker 4>Macron's close allies are a bit fed up with them.

0:15:15.960 --> 0:15:18.200
<v Speaker 4>The leader of Macron's own party on television last night,

0:15:18.200 --> 0:15:20.320
<v Speaker 4>by the way, admitted he didn't understand the decisions that

0:15:20.360 --> 0:15:23.280
<v Speaker 4>Emmanuel Macron was making any more. Now you have to

0:15:23.280 --> 0:15:25.840
<v Speaker 4>think about this in a broader political context. All of

0:15:25.880 --> 0:15:28.840
<v Speaker 4>these political figures and political parties are thinking about the

0:15:28.840 --> 0:15:32.560
<v Speaker 4>next presidential election, currently scheduled for twenty twenty seven. They

0:15:32.640 --> 0:15:34.640
<v Speaker 4>might want to put a bit of clear blue water

0:15:34.680 --> 0:15:37.920
<v Speaker 4>between themselves and Emmanuel Macron to make things easier for

0:15:38.000 --> 0:15:41.200
<v Speaker 4>them and to increase their own prospects of election. From

0:15:41.200 --> 0:15:44.160
<v Speaker 4>the Elise's point of view, no sign or sound that

0:15:44.200 --> 0:15:47.760
<v Speaker 4>Emmanuel Macron's even considering resigning for now. That's been ruled

0:15:47.760 --> 0:15:49.480
<v Speaker 4>out by everyone that we've heard of, and the last

0:15:49.520 --> 0:15:52.240
<v Speaker 4>time we heard from Emmanuel Macron himself, he's also ruled

0:15:52.240 --> 0:15:54.000
<v Speaker 4>it out. But a lot can happen, as we know

0:15:54.080 --> 0:15:56.160
<v Speaker 4>in French politics, in a short period of time, and

0:15:56.200 --> 0:15:59.720
<v Speaker 4>we're still about thirty six hours away from that deadline

0:15:59.720 --> 0:16:00.800
<v Speaker 4>set tomorrow evening.

0:16:02.280 --> 0:16:05.720
<v Speaker 3>This is Bloomberg Daybreak, your morning podcast on the stories

0:16:05.760 --> 0:16:08.800
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