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

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we begin on day eight of the federal government shutdown,

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Speaker 3: and the White House is ramping up the pressure on Democrats.

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Speaker 3: President Trump is floating the idea of blocking back pay

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Speaker 3: for some federal workers when the government reopens.

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Speaker 4: For the most part, we're going to take care of

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Speaker 4: our people.

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Speaker 5: There are some people that really don't deserve to be

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Speaker 5: taken care of, and we'll take care of them in

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Speaker 5: a different way.

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Speaker 3: The President spoke from the Oval Office after the White

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Speaker 3: House Budget Office drafted a memo saying workers are not

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Speaker 3: guaranteed compensation during a shutdown. We get more from Bloomberg

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Speaker 3: sterk Wallbank.

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Speaker 6: There is a substantial amount of question about whether or

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Speaker 6: not that's something he can actually do, but that is

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Speaker 6: the threat that's there, and hanging over all of this

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Speaker 6: is a threat from russ Vote, the O and B

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Speaker 6: Director to me be rather than furlough federal workers which

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Speaker 6: they are currently furloughed, to actually go through with permanent

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Speaker 6: job cuts, trying to put pressure on Democrats.

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Speaker 3: That's Bloomberg's Derek Wallbank. In the meantime, the shutdowns starting

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Speaker 3: to have a real world impact outside the Belwegh. Flights

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Speaker 3: at Chicago O'Hare and Dallas Fort Worth airports were delayed

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Speaker 3: by at least a half hour last night due to

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Speaker 3: staffing shortages. Air traffic controllers and other essential staff are

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Speaker 3: still working at the nation's airports, just without pay.

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Speaker 2: And France, Nathan the countdown underway to salvage the French

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Speaker 2: government outgoing Prime Minister sebashedin Lacorneu expressed optimism that an

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Speaker 2: agreement can be reached to allow the formation of a

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Speaker 2: new government without fully endorsing a new proposal to rethink

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Speaker 2: a controversial pension law as demanded by the Socialists. Bloombery

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Speaker 2: Daybreak anchor Stephen Carroll is in Paris and has the

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Speaker 2: very latest developments.

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Speaker 4: The centrist on center right parties that he spoke to

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Speaker 4: yesterday have a willingness to agree on a budget by

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Speaker 4: the first of December. He says, the conversation was steering

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Speaker 4: further away from a dissolution of the parliament. They've agreed

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Speaker 4: that the budget must allow France to advance and to

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Speaker 4: reduce the deficit to below five percent next year. That's

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Speaker 4: interesting because the previous budget target was four point seven

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Speaker 4: percent next year, so perhaps an indication of some of

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Speaker 4: the willingness and what's being discussed in terms of changes

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Speaker 4: to spending plans.

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Speaker 7: Now.

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Speaker 4: He's going into discussions with the left wing parties today,

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Speaker 4: so Astilla corn Who says he'll be asking and what

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Speaker 4: concessions they're willing to make to try and support a

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Speaker 4: budget plan as well, and he talked more broadly about

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Speaker 4: the risks of what this crisis means to the image

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Speaker 4: of France too, to the international place on the international

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Speaker 4: stage that France holds as well. But the message from

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Speaker 4: the first day of talks is is that they are

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Speaker 4: working towards a budget agreement. They're working away from the

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Speaker 4: idea of calling fresh National Assembly elections for Emmanuel Macron's

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Speaker 4: givens to Astilla corn who until this evening to try

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Speaker 4: and come up with a plan. I will be waiting

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Speaker 4: to see what the next update brings.

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Speaker 2: And Bloomber Stephen Carol notes that French bonds extended in advance.

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Speaker 2: As Locarno spoke, they yield on ten year bonds fell

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Speaker 2: five basis points to three point five two percent, the

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Speaker 2: lowest since Friday.

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Speaker 3: Now, Karen, let's get to the latest DOUN efforts for

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Speaker 3: peace in the Middle East. Teams from the US, CATTER

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Speaker 3: and Israel are gathering in Egypt for final negotiations to

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Speaker 3: end the war in Gaza. Israeli opposition leader Yarral Lapede

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Speaker 3: says he is hoping for an end to the conflict, a.

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Speaker 8: War that is going nowhere, hostages that are slowly dying,

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Speaker 8: and of course the suffering Gaza that everybody in his

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Speaker 8: right mind cares about. Children should not die and drops wars.

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Speaker 8: So for everybody's sake, we pray for this town.

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Speaker 3: Israeli opposition leader Yarl Lapede made those comments to Sky News.

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Speaker 3: A Hama spokesperson says a permanent ceasefire and withdrawal of

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Speaker 3: Israeli troops from Gaza must be central to a deal.

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Speaker 2: We turn now to the markets, Nathan, where gold is

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Speaker 2: continuing its record run. It's smashed through four thousand dollars,

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Speaker 2: announced for the first time, concerns over the US economy

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Speaker 2: and a government shutdown, and writing fresh momentum to the rally.

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Speaker 2: Bloomberg Markets Executive editor Paul Dobson has more in the

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Speaker 2: historical run.

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Speaker 9: Fifty percent just this year alone is a pretty impressive statistic.

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Speaker 9: That's against the US dollar, and when you sort of

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Speaker 9: look at how that compares with history, it's the best

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Speaker 9: annual gain since the nineteen seventies. And it's not just

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Speaker 9: that that's kind of noteworthy here, it's also the sort

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Speaker 9: of pace at which we're gaining in sort of longer

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Speaker 9: term history. If you think about it, we only breached

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Speaker 9: one thousand dollars an ounce after the financial crisis, two

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Speaker 9: thousand during the COVID pandemic. But we've gone from three

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Speaker 9: thousand to four thousand just since March to this month,

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Speaker 9: So you know, we're really stepping up in terms of

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Speaker 9: that sort of big number rate of change.

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Speaker 2: And that's Bloomberg Markets Executive editor Paul Dobson taking a

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Speaker 2: look at comas Gold right now. It's up one and

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Speaker 2: a third percent, up more than fifty five dollars at

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Speaker 2: four fifty nine dollars an ounce.

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Speaker 3: Karen, we have new developments this morning involving Elon Musk's

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Speaker 3: push into artificial intelligence. The billionaire's startup XAI is raising

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Speaker 3: more than initially planned. Let's get the details from Bloomberg's Genus.

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Speaker 10: Cervetti, Bloomberg News has learned Musk is tapping backers including

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Speaker 10: in Vidia, to lift the ongoing funding ground to twenty billion.

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Speaker 10: Sources say the financing includes equity and debt in a

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Speaker 10: special purpose vehicle that will buy in Vidia processors and

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Speaker 10: rent them to Xai for use in its Colossus two project.

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Speaker 10: Nvidia is investing as much as two billion in the

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Speaker 10: equity portion of the transaction, a strategy that helps accelerate

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Speaker 10: its customers AI investments. The massive financing is just the

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Speaker 10: latest for the AI industry. Earlier this week, OpenAI announced

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Speaker 10: a deal to use advanced micro devices chips over multiple years.

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Speaker 10: Meta Platforms has inked several multi billion dollar deals in

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Speaker 10: the past few months, including a twenty nine billion dollar

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Speaker 10: financing package for data centers, and Oracle also raised a

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Speaker 10: thirty eight billion dollars debt package for its infrastructure. Gina

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Speaker 10: Cervetti Bloomberg Radio, All.

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Speaker 2: Right, Gina, thank you well. Jamie Diamond is weighing in

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Speaker 2: on the AI boom, He says JP Morgan Chase spent

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Speaker 2: two billion dollars a year on developing artificial intelligence technology

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Speaker 2: and saves about this same amount annually from the investment.

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Speaker 2: Diamond tells Bloomberg's Tom mackenzie that he celebrates the opportunities

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Speaker 2: offered by AI, even if it eliminates some jobs.

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Speaker 11: We have two thousand people doing it, spend two billion

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Speaker 11: dollars a year on it. It affects everything risk, fraud, marketing,

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Speaker 11: idea generation, customer service, and it's kind of the tip

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Speaker 11: of the iceberg. And so you know, we're deploying it.

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Speaker 11: Every time we meet us a business, we ask what

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Speaker 11: are you doing? What are you doing to serve your people?

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Speaker 11: Why can you do better? What are somebody else doing?

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Speaker 11: So we're freely deploying it and safely.

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Speaker 2: And a letter to shareholders last year, Diamond the likened

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Speaker 2: AI technology to the printing press, the steam engine, electricity, computing,

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Speaker 2: and the internet. Get the full conversation with JP Morgan

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Speaker 2: Chase CEO Jamie Diamond on the Bloomberg Podcast channel on YouTube.

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Speaker 3: And finally, Karen Cristiano Ronaldo is soccer's first billionaire. His

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Speaker 3: net worth now stands at one point four billion dollars

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Speaker 3: on the Bloomberg Billionaires Index. The Portuguese player reached the

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Speaker 3: milestone after a lucrative contract extension with Saudi Arabian team

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Speaker 3: Al Nasa reportedly worth four hundred million, but Bloomberg Portugal

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Speaker 3: bureau chief Sofia Jorte Costa says Ronaldo's move to the

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Speaker 3: Middle East was controversial.

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Speaker 10: At the time.

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Speaker 12: A lot of people were criticizing that decision because you know,

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Speaker 12: he was going from Manchester United and playing at really

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Speaker 12: top level football to a very unknown league. Even in

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Speaker 12: Saudi Arabia wasn't the most successful team.

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Speaker 3: And despite endorsement deals with brands including Nike and Armani,

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Speaker 3: Bloomberg Sofia Horta a Costa says Ronaldo's wealth primarily comes

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Speaker 3: from his playing career.

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Speaker 2: Time now for a look at some of the other

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Speaker 2: stories making news in New York and around the world,

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Speaker 2: and for that we'retowned by Bloomberg's Michael Barr Michael.

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Speaker 7: Good Morning, Karen. Attorney General Pam Bondi clash with the

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Speaker 7: Democratic Senators during a contentious hearing on a wide range

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Speaker 7: of issues. In an exchange with Senator Dick Durbin of Illinois,

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Speaker 7: Bondi was asked about any conversations that she may have

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Speaker 7: had with the White House about deploying the National Guard

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Speaker 7: to democratic run cities.

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Speaker 13: I wish you loved Chicago as much as you hate

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Speaker 13: President Trump. We're there to help make America safe and

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Speaker 13: Illinois safe, whether or not you want to.

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Speaker 7: Ag Bondi was also questioned about the Jeffrey Epstein files,

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Speaker 7: basically saying that there is no evidence that would implicate

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Speaker 7: potential co conspirators. Matt Van Epps, a former commissioner in

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Speaker 7: Tennessee Governor Bill Lee's administration, as one a crowded Republican

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Speaker 7: primary in the special election to replace former GOP Congressman

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Speaker 7: Mark Green, who left office this summer. Van Epps clinched

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Speaker 7: Tuesday's victory with fifty one point six percent after an

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Speaker 7: endorsement from President Trump. In the Democratic primary, state Representative

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Speaker 7: Apton ben won a four way contest with almost twenty

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Speaker 7: eight percent, and we'll face Vaneps in the general election

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Speaker 7: December second. A truck driver has filed a lawsuit against

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Speaker 7: former New York Jets quarterback Mark Sanchez and Fox Corporation

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Speaker 7: following a bloody fight police they was started by Sanchez

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Speaker 7: outside in Indianapolis hotel. The altercation left sixty nine year

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Speaker 7: old Perry Toll with several injuries. Towell also stabbed Sanchez

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Speaker 7: during the fight lead Prosecutor Ryan Mears.

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Speaker 6: Certainly the description from the victim would indicated that she

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Speaker 6: was of the belief that the person that he had

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Speaker 6: the confrontation, which was very much intoxicated.

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Speaker 7: Prosecutor Ryan Mears also said Tuesday, Sanchez faces a felony

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Speaker 7: battery charge and several misdemeanors. Sanchez was in Indianapolis for

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Speaker 7: Fox's coverage of a football game. Global News twenty four

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Speaker 7: hours a day and whenever you want it with Bloomberg

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Speaker 7: News Now Michael Barr and this is is Bloomberg.

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Speaker 10: Karen, Thanks Michael.

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Speaker 2: Time now for our Bloomberg Sports updating. For that we

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Speaker 2: bring in John Stashauer.

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Speaker 5: Thanks Daron. The Yankees were in big trouble, trailing Toronto

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Speaker 5: two games to none. On The blue Jays lead game three,

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Speaker 5: six to one, but the Yanks rallied Aaron Judge at

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Speaker 5: a game dying three run Homer Jazz Chisholm a go

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Speaker 5: ahead solo shot Yanks one ninety six. The Blue Jays

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Speaker 5: still lead the series to to one. Seattle one eight

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Speaker 5: four at Detroit for a two to one series lead.

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Speaker 5: Forty year old Joe Flacco traded from one AFC Central

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Speaker 5: team in Ohio to another goes from Cleveland to Cincinnati.

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Speaker 5: The Bengals loss quarterback Joe Burrow to injury. That's to

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Speaker 5: a Bloomberg Sports update.

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Speaker 2: Stay with us more from Bloomberg day Break coming up

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Speaker 2: after this.

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

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

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

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Speaker 3: Good morning, I'm Nathan Hager. As the French political crisis

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Speaker 3: this continues. France's caretaker prime minister now has just hours

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Speaker 3: to find a solution to his country's budget and government woes,

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Speaker 3: and as he had just closer to President Emanuel Macrome's deadline,

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Speaker 3: Sebastian Lacornel is sounding optimistic.

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Speaker 14: That there is a will to have for France a

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Speaker 14: budget before the thirty first of December this year, and

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Speaker 14: this will creates a movement that steers us further away

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Speaker 14: from the dissolution of parliament.

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Speaker 3: That was Prime Minister Lacorneo speaking through an interpreter this morning,

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Speaker 3: and for the very latest, we were joined in Paris

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Speaker 3: once again by Bloomberg Daybreak. Europe Banker Stephen Carroll so Stephen,

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Speaker 3: there's a will to get a budget by the end

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Speaker 3: of the year, but isn't the deadline this month?

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Speaker 7: Good morning, Good.

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Speaker 4: Morning, Nathan. Yeah, I mean, weren't the latest twist of this,

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Speaker 4: but a note of optimism coming from Sebastia Nicrneo. He

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Speaker 4: was speaking before part of what is perhaps the most

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Speaker 4: crucial part of his negotiations. He was going in to

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Speaker 4: talk to the center left Socialist Party. They're seen as

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Speaker 4: being the key to the way out of this cry

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Speaker 4: for la Cournou to build a broader consensus potentially around

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Speaker 4: a budget plan, and that optimism that he talked about

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Speaker 4: of having the centrist and center right parties on board

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Speaker 4: to try and pass a budget and move away from

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Speaker 4: the idea of fresh National Assembly elections would be something

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Speaker 4: that has given markets a bit of a boost. We've

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Speaker 4: seen a reaction on the cat carent In powis getting

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Speaker 4: a bit of a spike, and the advance in government

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Speaker 4: bond deals also continuing. We're seeing the drop down about

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Speaker 4: four basis points on the tenure and the spread with

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Speaker 4: Germany narrowing as well. So a sense from Sebastiana Cornu

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Speaker 4: that things went well with his discussions yesterday, But I

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Speaker 4: would point out those are his existing partners. What he

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Speaker 4: has to get the Socialists to agreeto he said to

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Speaker 4: be looking for concessions. He's meeting a whole range of

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Speaker 4: left wing parties today is what exactly they're willing to

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Speaker 4: agree to. And a lot of the focus now in

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Speaker 4: the conversation has been around the question of retirement reforms

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Speaker 4: and whether the controversial pension reforms passed in France might

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Speaker 4: actually get suspended as part of some sort of deal

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Speaker 4: with the Socialist Party.

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Speaker 3: And that raises the question about whether those kinds of

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Speaker 3: reforms would be agreed to by some of the parties

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Speaker 3: on the right wing exactly.

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Speaker 4: And this is where things get extremely complicated, and we

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Speaker 4: look at the potential for a split in the existing

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Speaker 4: coalition as well. So Sebastian Leacanou is caught in a

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Speaker 4: sort of a game of three dimensional chess where he's

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Speaker 4: trying to bring new allies on side without losing his

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Speaker 4: existing ones. But it is interesting to point out that

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Speaker 4: the idea of suspending the pension reforms came from the

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Speaker 4: person who was responsible for bringing them through parliament, the

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Speaker 4: former Prime Minister Elizabeth Bohn. Again, another indication of how

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Speaker 4: even in Macron's own party we're seeing a sort of

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Speaker 4: distancing from some of the president's key reforms as well.

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Speaker 4: Sebastian Leacorneu is going to speak in an interview on

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Speaker 4: French television this evening. That's around the time we're expecting

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Speaker 4: him to be able to have told the president whether

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Speaker 4: or not there is a way out of this crisis.

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Speaker 4: The hours are ticking down, the meetings are continuing, and

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Speaker 4: the pressure is on for Sebastian Lecanu.

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Speaker 3: At the same time, as you mentioned, we are seeing

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Speaker 3: some relief in the mark, but with some of President

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Speaker 3: mccron's traditional allies sort of distancing themselves from him in

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Speaker 3: ways that we've been talking about since yesterday, does that

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Speaker 3: keep some of the political pressure on him. He's been

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Speaker 3: facing calls from some of his past allies to resign.

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Speaker 4: Yeah, that's right, and some of those calls are ones

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Speaker 4: that they've been making for quite some time. But the

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Speaker 4: issue now is that Emmanuel Macron looks very unlikely to

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Speaker 4: try and resign, much more likely that there would be

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Speaker 4: National Assembly elections, if any at all. And I suppose

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Speaker 4: the messagement of Bastian Lacoran, who seems to indicate that

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Speaker 4: elections are looking like a more distant prospect this morning

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Speaker 4: on the market reaction, though, I would point out that

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Speaker 4: if they were to suspend the pension reforms, that could

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Speaker 4: be a real impact on markets. Conversations we've been having

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Speaker 4: with the likes of Christopher Dembick from Pictay this morning

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Speaker 4: talking about it being the biggest risk to Franci's fiscal outlook, which,

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Speaker 4: as we know, is the origin of this whole crisis

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Speaker 4: to begin with, is the fact that they couldn't agree

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Speaker 4: on a budget to reduce the deficit. And if you

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Speaker 4: add to the fact that you're going to add billions

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Speaker 4: of euros of costs of pensions, if if you do

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Speaker 4: suspends those pension reforms, that's going to make the situation

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Speaker 4: even more complications.

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