Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning.
Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 3: stories we're following today.
Speaker 2: Karen, we begin on day seven of the federal government shutdown.
Speaker 2: The Senate has voted for a fifth time on a
Speaker 2: stopgap spending bill that would reopen the government until November
Speaker 2: twenty first, but would not include the healthcare subsidies that
Speaker 2: Democrats are demanding. That bill has failed for a fifth time,
Speaker 2: but now President Trump is signaling he's willing to negotiate.
Speaker 4: We have a negotiation going on right now with the
Speaker 4: Democrats that could lead to very good things.
Speaker 5: And I'm talking about good things with regard to healthcare.
Speaker 2: The President Trump did not say specifically which Democrats he's
Speaker 2: negotiating with. House Minoriti Leader Hakim Jeffrey says it's not him.
Speaker 6: Either Leader Schumer or myself have heard a word from
Speaker 6: the administration about resolving this issue, making clear to us
Speaker 6: that the White House wanted to shut the government down.
Speaker 2: That's House Minoriti Leader Hakim Jeffries. Later, President Trump posted
Speaker 2: on truth Social that he'd be willing to work with Democrats,
Speaker 2: but only after they allowed the government to reopen. He's
Speaker 2: also suggested layoffs of federal workers could be triggered if
Speaker 2: the shutdown continues much longer. Those workers will begin to
Speaker 2: miss paychecks this Friday, and the military will start going
Speaker 2: without pay on October fifteenth unless the government reopens well Nathan.
Speaker 3: President Trump is facing more pushback over his efforts to
Speaker 3: send the National Guard to counter immigration protesters in major cities.
Speaker 3: The state of Illinois is suing over the President's plan
Speaker 3: to deploy the Guard to Chicago, but a federal judge
Speaker 3: is declining to rule right away on the state's request
Speaker 3: for a two week haul to the deployment. Illinois Governor J. B.
Speaker 3: Prisker says the President's moves are entirely political.
Speaker 7: The Trump administration is following a playbook. Cause chaos, create
Speaker 7: fear and confusion, make it seem like peaceful protesters are
Speaker 7: a mob by fire, uring gas pellets and tear gas
Speaker 7: canisters at them, why to create the pretext for invoking
Speaker 7: the Insurrection Act.
Speaker 3: Illinois Governor JB. Pritzker denies the White House's claims that
Speaker 3: a local police are not doing enough to protect immigration
Speaker 3: and customs enforcement. US Sister Judge April Perry is not
Speaker 3: ruling immediately on the state's request for a temporary restraining order,
Speaker 3: but she says she's troubled by a lack of clarity
Speaker 3: on where troops should be mobilizing and what they'd be doing.
Speaker 3: She asked the Trump administration to delay its plans until
Speaker 3: she holds a hearing on Thursday.
Speaker 2: Karen, we turned out to the political crisis in France.
Speaker 2: President Dmanuel McCraw is giving his outgoing Prime Minister Sebastian
Speaker 2: Lecorneo until tomorrow night to negotiate a last ditch deal
Speaker 2: to salvage his government. The decision buys mccrawl a little
Speaker 2: more time to decide his next steps, and we get
Speaker 2: the latest in Paris from Bloomberg Daybreak. Euro banker Stephen Carroll.
Speaker 4: What of twenty four hours at spainber we heard, you know,
Speaker 4: a cobnist only announced on Sunday night, for the prime
Speaker 4: minister to resign yesterday morning, only to be told no way,
Speaker 4: go back and try again. You get an extra forty
Speaker 4: eight hours to try and negotiate some sort of compromise
Speaker 4: that might eventually lead to a budget Bloomberg.
Speaker 2: Stephen Carroll says President mccorum's options include appointing a new
Speaker 2: prime minister, calling a new parliamentary election, or resigning. Opposition
Speaker 2: groups are clamoring for a fresh legislative vote.
Speaker 3: Well n than today March, two years since the October seventh,
Speaker 3: the checks on Israel Hamas in Israel are continuing. Indirect
Speaker 3: negotiations for a second day in Egypt be the very
Speaker 3: latest from Bloomberg Middle East correspondent Jumana Burccci.
Speaker 8: There is a degree of optimism that perhaps this is
Speaker 8: the diplomatic breakthrough that the families of those hostages have
Speaker 8: been waiting for, that Palestinians have been striving for. President
Speaker 8: Trump says, I really think we're going to have a deal.
Speaker 8: He's personally invested in this, and you can question his motivations,
Speaker 8: but what is very clear is the US right now
Speaker 8: the administration is very focused on getting a deal across
Speaker 8: the line because President jomp seems to think that he's
Speaker 8: the only world leader capable of getting two piece in Gaza.
Speaker 8: So there is a lot of stake right now. There's
Speaker 8: a lot of focus from the international community. Many people
Speaker 8: are saying that this is perhaps the last real efforts
Speaker 8: and last attempt to get to some form of resolution,
Speaker 8: so cautious optim is imprevailing.
Speaker 3: And Bloomberg Middle East correspondent j Mona Brissecci there twelve
Speaker 3: hundred people were killed in another two hundred and fifty
Speaker 3: were abducted. On the attack on Israel two years ago.
Speaker 3: More than sixty seven thousand Palestinians have been killed in
Speaker 3: the conflict, according to the AMAS run Health Ministry in
Speaker 3: the territory.
Speaker 2: Turning to Wall Street, now Karen futures are lower a
Speaker 2: day after stocks closed, it yet another record high. The
Speaker 2: S and P five hundred is now gained for seven
Speaker 2: straight sessions for its longest winning streak since early May.
Speaker 2: Leslie Marx is chief investment Officer for Equities at Mackenzie Investments.
Speaker 9: When you look at the factors that are driving equities,
Speaker 9: it's been primarily, of course, price momentum. The things that
Speaker 9: are going higher are what people want, of course, but
Speaker 9: also earnings momentum has been a top factor, and earnings
Speaker 9: momentum is a very strong fundamental that we can really
Speaker 9: anchor ourselves on and say that actually, with these companies
Speaker 9: reporting strong earnings, we can build comfortable with the higher
Speaker 9: valuations that they're trading at today.
Speaker 2: It's Leslie Marcus at mackenzie Investments. The SMP five hundred
Speaker 2: rows four tenths of one percent yesterday.
Speaker 3: Well, Nathan, the biggest winner was the Nasdaq one hundred index,
Speaker 3: which rose another eight tenths of a percent, leading the
Speaker 3: way Advanced micro Devices, which soared almost twenty four percent
Speaker 3: after inking a deal with open Ai. AMD will build
Speaker 3: out AI infrastructure and a pack that chip maker said
Speaker 3: could generate tens of billions of dollars in new revenue.
Speaker 3: And we spoke with AMD CEO Lisa Sue.
Speaker 10: Together now we're embarking on a massive buildout of six
Speaker 10: gigawatts of AI compute and it's a big deal for us,
Speaker 10: for our shareholders, for our teams, and you know the
Speaker 10: partnership and the overall AI ecosystem.
Speaker 3: And get the full conversation with AMD CEO Lisa Sue
Speaker 3: and Open Ai president Greg Brockman on the Bloomberg Podcast
Speaker 3: channel on Youtubell Karen.
Speaker 2: We've also been speaking with Citadel's Ken Griffin. He says
Speaker 2: investors are starting to see gold is safer than the dollar.
Speaker 2: He says that's something people should be worried about. The
Speaker 2: billionaire says it is clear many are now reassessing the greenback.
Speaker 11: As you see sovereigns around the world, the central banks
Speaker 11: around the world, as you see individual investors around the
Speaker 11: world go, you know what, I now view gold as
Speaker 11: a safe harbor asset in a way that the dollar
Speaker 11: used to be viewed. That's that's what's really concerning to me.
Speaker 2: Ken Griffin made those comments in an interview with Bloomberg's
Speaker 2: Fancy Lacua at the Citadel Securities Conference. That conversation is
Speaker 2: also on the Bloomberg Podcast channel on YouTube.
Speaker 3: In company news, Nathan Bloomberg News has learned Tesla plans
Speaker 3: to unveil a cheaper version of the Model Y later today.
Speaker 3: Sources say the cheaper vehicle will lack certain features and
Speaker 3: use less premium materials to offset the loss of the
Speaker 3: up to seventy five hundred dollars federal tax credit that
Speaker 3: the US stopped offering this month.
Speaker 2: Karen Tesla CEO. Elon Musk has reportedly named a former
Speaker 2: Morgan Stanley executive the chief financial officer of his artificial
Speaker 2: intelligence startup XAI. The Financial Times is reporting that Anthony
Speaker 2: Armstrong will help finance both Xai and Musk's social media
Speaker 2: platform x The paper says Armstrong helped Musk complete the
Speaker 2: forty four billion dollar acquisition of the former Twitter.
Speaker 5: Time.
Speaker 3: Now for look at some of the other stories making
Speaker 3: news in New York and around the world, and for
Speaker 3: that we're joined by Bloomberg's Michael Mahr.
Speaker 6: Michael, good morning, Good morning Karen.
Speaker 12: It's the homestretch for the three remaining New York City
Speaker 12: mayoral candidates. Front Runner Democratic nominee Zoron Mumdani proposes city
Speaker 12: owned grocery stores, fair free buses, free childcare, and a
Speaker 12: freeze on rent stabilized apartments. He spoke to ABC seven
Speaker 12: about how it will be funded.
Speaker 4: By increasing taxes on the top one percent of New
Speaker 4: Yorkers by two percent.
Speaker 3: It is by increasing the state's top corporate tax rate
Speaker 3: to match that of New Jersey.
Speaker 12: Meanwhile, former New York Governor Andrew Cuomo, running as an independent,
Speaker 12: says if Mamdani wins the election in November, it would
Speaker 12: be a gift to President Trump.
Speaker 8: He said, if they elect this person, then I Donald Trump,
Speaker 8: I'm going to have to step in take over New
Speaker 8: York to protect the good people of New York.
Speaker 12: Cuomo spoke yesterday on ABC's The View Mamdani leads the
Speaker 12: field in the polls over Cuomo and Republican Curtis Sliwa
Speaker 12: on Bloomberg's Leewa says the polls had been wrong several times.
Speaker 5: Two munch into the Democratic primary, they were preparing the
Speaker 5: coronation of Andrew Cuomo as on next MAYA forty points
Speaker 5: ahead is Johann Mandani. He lust by thirteen points. I
Speaker 5: look at my mentor in this rate, George Bataki on
Speaker 5: November second of nineteen ninety four against the better Cuomo Mario.
Speaker 5: They had him down by twelve points. He won by
Speaker 5: three points.
Speaker 12: Current Mayor Eric Adams dropped out of the race about
Speaker 12: a week ago. Former Mayor Michael Bloomberg, founder and majority
Speaker 12: owner of Bloomberg News parent Bloomberg Lp, endorsed Cuomo in
Speaker 12: the primary and has contributed to a pack supporting his candidacy.
Speaker 12: Sean Diddycomb's lawyers want the hip hop mogul sent to
Speaker 12: a low security federal prison in New Jersey to serve
Speaker 12: his four year prison sentence. They were told a judge
Speaker 12: Monday that the facility's drug treatment program will help him
Speaker 12: stay clean. The Supreme Court has rejected an appeal from
Speaker 12: Glaine Maxwell, the imprisoned ex girlfriend of Jeffrey Epstein. The
Speaker 12: Justices declined to take up a case that would have
Speaker 12: renewed attention on the Epstein's sexual abuse saget. Lawyers from
Speaker 12: Maxwell argued she never should have been tried or convicted
Speaker 12: for a role in luring teenage girls be sexually abused
Speaker 12: by Epstein. Global News twenty four hours, a date and
Speaker 12: whenever you want it with the Bloomberg News Now now
Speaker 12: Michael Barrn, this is Bloomberg Karen.
Speaker 3: Thanks Michael, time now for our Bloomberg Sports update, and
Speaker 3: for that we bring in John stash Hour.
Speaker 13: Thanks Staring. A pair of NLDS game twos. The Dodgers,
Speaker 13: with four runs in the seventh inning, held on on
Speaker 13: the bottom of the ninth and beat the Phillies four
Speaker 13: to three, and they go back to LA with the
Speaker 13: two games to none lead. The Brewers hit three home runs,
Speaker 13: two of them were three run shots, a seven to
Speaker 13: three win over the Cubs. Milwaukee leads the series two zip.
Speaker 13: Mother Night football in Jacksonville, Kansas City had a two
Speaker 13: touchdown lead, then trailed retook the lead with less than
Speaker 13: two minutes ago. Trevor Lawrence slipped and fell getting a snap,
Speaker 13: but scored a one yard run with twenty three seconds lap.
Speaker 13: The Jags won thirty one twenty eight. That's your Bloomberg
Speaker 13: Sports Update.
Speaker 3: Stay with us more from Bloomberg day Break coming up
Speaker 3: after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Serious XM,
Speaker 1: and around the world world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business Appum. This is Bloomberg Daybreak.
Speaker 2: Good morning, I'm Nathan Hager. Forty eight hours. That is
Speaker 2: the window that French President Emanuel mccron has given his
Speaker 2: newest Prime Minister, Sebastian Lecornu to salvage his government and
Speaker 2: keep their country from going even deeper into a political
Speaker 2: crisis that had Lecornu announcing his resignation only yesterday. Joining
Speaker 2: us from Paris for the very latest his Bloomberg Daybreak,
Speaker 2: Europe Banker Stephen Carroll, Stephen, good morning. It took Prime
Speaker 2: Minister Lecorno less than twenty four hours to hand in
Speaker 2: his walking papers. Will another forty eight make a difference?
Speaker 2: Good morning, Good morning, Nathany.
Speaker 4: I mean, that's the question that everyone in Paris here
Speaker 4: is wondering about, and indeed across France, because we are
Speaker 4: looking at a situation where the the first of those
Speaker 4: meetings that Sebastian Lecorneo was due to hold with the
Speaker 4: center right political parties has just finished in the past
Speaker 4: few minutes. No news of what was discussed just yet,
Speaker 4: but they were trying essentially to rebuild the coalition they
Speaker 4: had before it all fell apart yesterday morning and Sebastian
Speaker 4: and the Coornu resigned. So that's the first goal they
Speaker 4: have to try and get back to where they started from.
Speaker 4: But that still doesn't leave them with a sufficient number
Speaker 4: of parliamentarians to pass a budget, which is of course
Speaker 4: the broader goal. A question that we'll have to try
Speaker 4: and answer between now and tomorrow night is whether or
Speaker 4: not there's any hope for the original alliance or indeed
Speaker 4: an expanded alliance that might actually be able to make
Speaker 4: progress on this key point. The optimism is fairly thin
Speaker 4: at the moment. I think it's fair to say the
Speaker 4: markets so have cammed down a little. We're still looking
Speaker 4: at that spread between French and German bonds at over
Speaker 4: eighty basis points. That's our critical measure of risk that
Speaker 4: we're watching in markets. Markets certainly got a fright when
Speaker 4: Sebastian the Coornu resigned yesterday. But things are at least
Speaker 4: in a holding pattern for now.
Speaker 2: So what are the options for Lacornu with this clock
Speaker 2: ticking down now?
Speaker 4: Well, look, he has to try and make sure, first
Speaker 4: of all, the original partners are on board, and we're
Speaker 4: talking mostly about the center right Republicans Party led by
Speaker 4: the outgoing interim Interior Minister, whatever term he'd like to
Speaker 4: apply at the moment, Bruno Rataio. He's not taken part
Speaker 4: in that meeting this morning at the Prime Minister's office,
Speaker 4: although he has spoken directly to Sebas General Kornu. If
Speaker 4: he comes back on board, at least there's some hope
Speaker 4: of that coalition holding together. The issue is and was,
Speaker 4: whether or not you can convince the center left Socialist
Speaker 4: Party to get on board and to help put together
Speaker 4: a budget plan, which is what they're all trying to
Speaker 4: work towards. If that doesn't happen by tomorrow evening, Emmanuel
Speaker 4: Macron has used this expression he will take his responsibilities now.
Speaker 4: Plenty of interpretation as to what that might mean, but
Speaker 4: it's seen as a sort of veiled threat to these parties,
Speaker 4: to that he will hold fresh parliamentary elections if there
Speaker 4: isn't an agreement reached. And those centrist parties, according to
Speaker 4: the polls, are those that are likely to suffer. From
Speaker 4: the center left to the center right, those are the
Speaker 4: parties likely to lose out. Voters seem more likely to
Speaker 4: go to the extremes, the far left and the far right.
Speaker 4: So that is the threat whether if you don't manage
Speaker 4: to put together a deal and agree to something now,
Speaker 4: is that you could end up in a worse off
Speaker 4: position afterwards.
Speaker 2: And it sounds Stephen like that's the kind of threat
Speaker 2: that could hurt President Macron himself politically. I mean, we've
Speaker 2: talked before about how he's resisted all this time the
Speaker 2: idea of resigning himself. But what are the options for
Speaker 2: President Macron if there if it comes to the point
Speaker 2: that they could be calling a new election.
Speaker 4: Well, look, the same three options are on the table
Speaker 4: for him now that have been every time that he's
Speaker 4: found himself in this situation, and it's been fairly frequent
Speaker 4: over the past two years. He can find a new
Speaker 4: Prime Minister or even reappoints abas General Kornu, by the way,
Speaker 4: that's still on the table, he can call those parliamentary
Speaker 4: elections we talked about, or he could go as far
Speaker 4: as resigning. One key development in the conversations this morning
Speaker 4: has been the commentary from one of Macron's closest allies,
Speaker 4: Eduar Philippoho's's first prime minister when he was elected in
Speaker 4: twenty seventeen. Now they've had somewhat of a political separation since,
Speaker 4: but have remained close allies. And Edward Philippe said this
Speaker 4: morning that Emmanuel Macron should call early presidential elections once
Speaker 4: he has passed this budget. That is a big departure
Speaker 4: from Edward Philippe's position. It's an indication of how even
Speaker 4: Macron's close allies are a bit fed up with them.
Speaker 4: The leader of Macron's own party on television last night,
Speaker 4: by the way, admitted he didn't understand the decisions that
Speaker 4: Emmanuel Macron was making any more. Now you have to
Speaker 4: think about this in a broader political context. All of
Speaker 4: these political figures and political parties are thinking about the
Speaker 4: next presidential election, currently scheduled for twenty twenty seven. They
Speaker 4: might want to put a bit of clear blue water
Speaker 4: between themselves and Emmanuel Macron to make things easier for
Speaker 4: them and to increase their own prospects of election. From
Speaker 4: the Elise's point of view, no sign or sound that
Speaker 4: Emmanuel Macron's even considering resigning for now. That's been ruled
Speaker 4: out by everyone that we've heard of, and the last
Speaker 4: time we heard from Emmanuel Macron himself, he's also ruled
Speaker 4: it out. But a lot can happen, as we know
Speaker 4: in French politics, in a short period of time, and
Speaker 4: we're still about thirty six hours away from that deadline
Speaker 4: set tomorrow evening.
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