1
00:00:02,480 --> 00:00:03,000
Speaker 1: Good morning.

2
00:00:03,080 --> 00:00:05,920
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

3
00:00:05,960 --> 00:00:07,440
Speaker 2: stories we're following today.

4
00:00:08,119 --> 00:00:10,960
Speaker 3: We begin with an historic moment on Capitol Hill. For

5
00:00:11,000 --> 00:00:13,360
Speaker 3: the first time, a Speaker of the US House of

6
00:00:13,400 --> 00:00:15,320
Speaker 3: Representatives has been thrown out.

7
00:00:15,640 --> 00:00:19,239
Speaker 4: The office of Speaker of the House of the United

8
00:00:19,239 --> 00:00:23,440
Speaker 4: States House of Representatives is hereby declared vacant.

9
00:00:24,680 --> 00:00:27,800
Speaker 3: Kevin McCarthy was removed from his post after just nine

10
00:00:27,840 --> 00:00:31,280
Speaker 3: months in the job. Eight Republicans joined every Democrat president

11
00:00:31,280 --> 00:00:34,159
Speaker 3: in a roll call vote against the speaker, led by

12
00:00:34,240 --> 00:00:36,120
Speaker 3: conservative firebrand Matt Gates.

13
00:00:36,560 --> 00:00:40,159
Speaker 2: He made an agreement to fulfill certain commitments to make

14
00:00:40,200 --> 00:00:42,640
Speaker 2: this an open and honest process, and.

15
00:00:42,560 --> 00:00:44,680
Speaker 5: He has failed to meet those commitments, and that's why

16
00:00:44,720 --> 00:00:45,280
Speaker 5: we are here.

17
00:00:45,720 --> 00:00:48,320
Speaker 3: Gates's move now leaves the House without a permanent leader

18
00:00:48,360 --> 00:00:51,760
Speaker 3: and no clear successor from McCarthy. The now former speaker

19
00:00:51,800 --> 00:00:54,200
Speaker 3: says he does not plan to run for the job again,

20
00:00:54,240 --> 00:00:55,800
Speaker 3: but he has no regrets.

21
00:00:56,120 --> 00:00:57,760
Speaker 6: I do not regret negotiating.

22
00:00:58,640 --> 00:01:00,760
Speaker 7: Our government is designed and compromise.

23
00:01:02,360 --> 00:01:07,160
Speaker 8: I don't regret my efforts to build coalitions and find solutions.

24
00:01:07,760 --> 00:01:09,800
Speaker 3: Lawmakers are said to vote for a new speaker on

25
00:01:09,800 --> 00:01:12,480
Speaker 3: October eleventh, they're out on recess for the rest of

26
00:01:12,520 --> 00:01:14,880
Speaker 3: the week. Some names that have been floated include House

27
00:01:14,920 --> 00:01:18,160
Speaker 3: Majority Leader Steve Scalise and Patrick McHenry, who is now

28
00:01:18,200 --> 00:01:19,600
Speaker 3: serving as interim.

29
00:01:19,240 --> 00:01:20,520
Speaker 7: Speaker Well Nathan.

30
00:01:20,560 --> 00:01:23,600
Speaker 2: The reaction to McCarthy's ouster is still pouring in. Bloomberg

31
00:01:23,680 --> 00:01:27,160
Speaker 2: political contributor Genie she Hands Zeno says, it's shocking.

32
00:01:27,400 --> 00:01:30,720
Speaker 9: Pretty Much everything you say about politics today starts with

33
00:01:30,760 --> 00:01:35,600
Speaker 9: the words unprecedented, historic, strange, you know, And that's the

34
00:01:35,640 --> 00:01:38,160
Speaker 9: sort of the position that we are in, and it

35
00:01:38,480 --> 00:01:41,240
Speaker 9: just doesn't look like we are near the end of

36
00:01:41,280 --> 00:01:44,560
Speaker 9: it at this point. A house in chaos. A continuing

37
00:01:44,600 --> 00:01:48,040
Speaker 9: resolution gets us through the seventeenth of November, the.

38
00:01:48,080 --> 00:01:51,600
Speaker 2: Date Bloomberg political contributor Genie she Han Zeno mentioned is

39
00:01:51,640 --> 00:01:55,680
Speaker 2: the next shutdown deadline. Henrietta tres, Managing partner and director

40
00:01:55,720 --> 00:01:59,320
Speaker 2: of Economic Policy at Veda Partner, says, the odds are growing.

41
00:02:00,080 --> 00:02:02,520
Speaker 10: Odds of a shutdown have to start at sixty five

42
00:02:02,560 --> 00:02:05,960
Speaker 10: percent or higher for my clients. I usually am at

43
00:02:06,000 --> 00:02:09,000
Speaker 10: about five percent. I'm very bearish on these kinds of things.

44
00:02:09,280 --> 00:02:11,119
Speaker 10: I was only at twenty five percent we would shut

45
00:02:11,160 --> 00:02:13,880
Speaker 10: down going into this weekend. Now that we're in this

46
00:02:14,040 --> 00:02:16,320
Speaker 10: new world. I think you have to start at least

47
00:02:16,360 --> 00:02:19,280
Speaker 10: sixty five. There's a strong argument to make for seventy five,

48
00:02:19,320 --> 00:02:20,919
Speaker 10: and I bet the street will be much higher than me.

49
00:02:21,480 --> 00:02:24,720
Speaker 2: And that shutdown deadline is November seventeenth. Henrietta Tres at

50
00:02:24,760 --> 00:02:27,880
Speaker 2: Beta Partners and notes Moody's has already warned its confidence

51
00:02:27,880 --> 00:02:31,359
Speaker 2: in US governance is waivering. It's the only credit agency

52
00:02:31,400 --> 00:02:33,320
Speaker 2: that still has a top rating for the US.

53
00:02:33,560 --> 00:02:36,240
Speaker 3: And we have other major political news this morning, Karen.

54
00:02:36,320 --> 00:02:39,080
Speaker 3: A gag order has been issued for all parties in

55
00:02:39,160 --> 00:02:42,400
Speaker 3: the Donald Trump fraud trial in New York. Bloomberg Zed

56
00:02:42,480 --> 00:02:44,000
Speaker 3: Baxter has the story, the.

57
00:02:44,000 --> 00:02:46,880
Speaker 7: Judge saying that Trump posted on social media and attack

58
00:02:47,000 --> 00:02:50,760
Speaker 7: on the judge's clerk and shared a photo to his followers.

59
00:02:51,120 --> 00:02:54,040
Speaker 7: The judge, saying any attack of any members of his

60
00:02:54,160 --> 00:02:58,200
Speaker 7: staff are not acceptable, also told parties not to talk

61
00:02:58,240 --> 00:03:01,680
Speaker 7: about the case outside the courtroom. Now, going into today's

62
00:03:01,680 --> 00:03:03,000
Speaker 7: hair ing Trump, He's been.

63
00:03:02,880 --> 00:03:08,880
Speaker 5: Given Paulson information, misleading information, and corrupt information by a.

64
00:03:09,000 --> 00:03:11,720
Speaker 11: Very corrupt and encompetent Attorney general.

65
00:03:12,240 --> 00:03:15,760
Speaker 7: Trump deleted the post. I'm ed Baxter Bloomberg Radio.

66
00:03:15,680 --> 00:03:18,880
Speaker 2: All right, ed, thanks. Meanwhile, the blockbuster trial of FTX

67
00:03:18,919 --> 00:03:22,360
Speaker 2: co founder Sam Bankman Freed is also underway in New York,

68
00:03:22,400 --> 00:03:25,040
Speaker 2: and Bloomberg's Kayley Lines is covering the trial for US

69
00:03:25,040 --> 00:03:27,120
Speaker 2: and filed this report from Lower Manhattan.

70
00:03:27,360 --> 00:03:30,480
Speaker 5: Dan Bankman Fried was present in the courtroom on Tuesday.

71
00:03:30,520 --> 00:03:33,680
Speaker 5: He had a shorter haircut. That signature mop of curly

72
00:03:33,760 --> 00:03:36,000
Speaker 5: hair is gone. He was also wearing a suit that

73
00:03:36,080 --> 00:03:38,320
Speaker 5: appeared too big for him. It seems that he may

74
00:03:38,360 --> 00:03:41,480
Speaker 5: have lost some weight while in detention at the Metropolitan

75
00:03:41,600 --> 00:03:44,840
Speaker 5: Detention Center. Of course, this case really centers around the

76
00:03:44,920 --> 00:03:48,440
Speaker 5: enclosion of FTX and Alimeter Research, that crypto Exchange and

77
00:03:48,480 --> 00:03:51,320
Speaker 5: the separate Hudgsbend, both of which he had founded, and

78
00:03:51,360 --> 00:03:54,800
Speaker 5: prosecutors say he orchestrated one of the greatest financial frauds

79
00:03:54,920 --> 00:03:57,680
Speaker 5: in US history. Kayley Lines at the Federal Courthouse in

80
00:03:57,720 --> 00:03:59,280
Speaker 5: Manhattan for Bloomberg News.

81
00:04:00,040 --> 00:04:02,240
Speaker 3: Haley, thank you well. It's been quite the eventful morning

82
00:04:02,280 --> 00:04:05,520
Speaker 3: in markets as well. Earlier, the thirty year Treasury briefly

83
00:04:05,600 --> 00:04:08,120
Speaker 3: hit five percent for the first time since two thousand

84
00:04:08,120 --> 00:04:10,200
Speaker 3: and seven. Right now it's at about four point nine

85
00:04:10,240 --> 00:04:13,800
Speaker 3: to three. We get more from our market's reporter Valerie Titel.

86
00:04:13,760 --> 00:04:18,760
Speaker 12: This route in the treasury market is just absolutely phenomenal. Honestly,

87
00:04:18,800 --> 00:04:20,680
Speaker 12: I've never seen anything like it myself. I've been in

88
00:04:20,720 --> 00:04:24,200
Speaker 12: the markets for nearly fifteen years now. This steepening that

89
00:04:24,240 --> 00:04:28,680
Speaker 12: we're seeing since Jrome Powell's testimony two weeks ago, that

90
00:04:28,800 --> 00:04:30,080
Speaker 12: was ten sessions ago.

91
00:04:31,200 --> 00:04:34,680
Speaker 3: Bloomberg's salary Titel says the selloffs being seen around the globe.

92
00:04:34,680 --> 00:04:37,280
Speaker 3: Germany's ten year benchmark rate climb to three percent, a

93
00:04:37,360 --> 00:04:39,000
Speaker 3: level unseen since twenty eleven.

94
00:04:39,320 --> 00:04:39,839
Speaker 7: Well, Nathan.

95
00:04:39,839 --> 00:04:42,440
Speaker 2: The market reaction follows more hawkish talk from the Fed.

96
00:04:42,480 --> 00:04:46,000
Speaker 2: Atlanta FED President Raphael Bostik said the Fed should hold

97
00:04:46,080 --> 00:04:48,360
Speaker 2: rates at elevated levels for a long time to bring

98
00:04:48,400 --> 00:04:50,560
Speaker 2: inflation back down to its two percent target.

99
00:04:51,360 --> 00:04:54,560
Speaker 13: I'm grateful to say is that we've seen inflation come down.

100
00:04:54,920 --> 00:04:57,839
Speaker 13: I feel like we're in restrictive space now and now

101
00:04:58,040 --> 00:05:00,640
Speaker 13: we just need to let that restriction play out and

102
00:05:01,120 --> 00:05:04,400
Speaker 13: let it bring inflation, continue to bring inflation down to

103
00:05:04,480 --> 00:05:06,840
Speaker 13: get back into the range of our target. And if

104
00:05:06,839 --> 00:05:08,280
Speaker 13: we can do that, that would be.

105
00:05:08,240 --> 00:05:10,719
Speaker 2: A good thing we land I've had President Raphael Bostak

106
00:05:10,760 --> 00:05:13,359
Speaker 2: says he expects us one rate kind will be appropriate

107
00:05:13,400 --> 00:05:15,000
Speaker 2: in twenty twenty four toward the end of the.

108
00:05:15,040 --> 00:05:18,560
Speaker 3: Year, and Treasury Secretary Janet Yellen says she's very optimistic

109
00:05:18,600 --> 00:05:19,760
Speaker 3: about the US economy.

110
00:05:20,120 --> 00:05:25,800
Speaker 8: Short term inflation is coming down in the context of

111
00:05:25,880 --> 00:05:30,839
Speaker 8: an extremely strong labor market. We're now engaging in a

112
00:05:31,000 --> 00:05:36,560
Speaker 8: very substantial program of investments to strengthen our economy.

113
00:05:36,600 --> 00:05:39,640
Speaker 3: The Secretary Yellen also indicated higher longer term rates could

114
00:05:39,680 --> 00:05:41,599
Speaker 3: pose a threat to the global economy.

115
00:05:45,040 --> 00:05:46,800
Speaker 2: Or Ry Nathan, Thanks, It's time now for a look

116
00:05:46,800 --> 00:05:49,159
Speaker 2: at some of the other stories making news around the world.

117
00:05:49,160 --> 00:05:52,080
Speaker 2: For that, we're joined by Bloomberg's John Tucker. John, good morning,

118
00:05:52,600 --> 00:05:53,520
Speaker 2: and good morning Karen.

119
00:05:53,560 --> 00:05:57,880
Speaker 14: President Joe Biden canceling and additional nine billion dollars in

120
00:05:58,000 --> 00:06:00,680
Speaker 14: student loan deb Let's get more in the support this

121
00:06:00,760 --> 00:06:03,200
Speaker 14: morning from Bloomber's Jeff Bellinger.

122
00:06:03,440 --> 00:06:06,680
Speaker 6: The program the President is expected to detail today will

123
00:06:06,720 --> 00:06:09,960
Speaker 6: bring relief for one hundred and twenty five thousand borrowers

124
00:06:10,000 --> 00:06:13,880
Speaker 6: through changes to programs intended to aid public servants, Americans

125
00:06:13,880 --> 00:06:17,920
Speaker 6: with disability, and low income borrowers. It includes five point

126
00:06:18,000 --> 00:06:21,440
Speaker 6: two billion dollars for fifty three thousand borrowers and public

127
00:06:21,480 --> 00:06:26,680
Speaker 6: service loan forgiveness programs. The Administration also identified fifty one

128
00:06:26,720 --> 00:06:30,640
Speaker 6: thousand additional borrowers who paid for at least twenty years

129
00:06:30,640 --> 00:06:33,960
Speaker 6: but never got relief. It is the President's latest action

130
00:06:34,120 --> 00:06:37,160
Speaker 6: to aid borrowers after the Supreme Court blocked his debt

131
00:06:37,200 --> 00:06:41,280
Speaker 6: relief plan and his payments resumed for millions of Americans.

132
00:06:41,600 --> 00:06:43,520
Speaker 6: Jeff Bellinger Bloomberg Radio.

133
00:06:43,680 --> 00:06:46,919
Speaker 14: More than seventy five thousand healthcare workers preparing for the

134
00:06:47,040 --> 00:06:50,960
Speaker 14: largest healthcare strike in US history. This after talks between

135
00:06:51,040 --> 00:06:54,800
Speaker 14: Kaiser Permanente and a coalition of employee unions have so

136
00:06:54,920 --> 00:06:58,159
Speaker 14: far failed to produce a resolution. The strike sept for today.

137
00:06:58,480 --> 00:07:02,480
Speaker 14: It could interrupt health service for nearly thirteen million people.

138
00:07:03,120 --> 00:07:07,200
Speaker 14: The Justice Department unsealed indictments on several Chinese based companies

139
00:07:07,560 --> 00:07:11,520
Speaker 14: charged with shipping precursor chemicals used to produce fentool and

140
00:07:11,560 --> 00:07:15,560
Speaker 14: other opioids into the US Attorney General Merrick Garland.

141
00:07:15,680 --> 00:07:20,679
Speaker 15: These companies advertise the sale of precursor chemicals online using

142
00:07:20,720 --> 00:07:24,840
Speaker 15: different websites and social media platforms. They then ship the

143
00:07:24,840 --> 00:07:28,280
Speaker 15: building blocks needed to create deadly drugs all.

144
00:07:28,120 --> 00:07:28,840
Speaker 16: Over the world.

145
00:07:28,960 --> 00:07:33,480
Speaker 14: The indictments charge five Chinese corporates in eight Chinese nationals.

146
00:07:34,040 --> 00:07:36,800
Speaker 14: A history making meeting that focuses on the future of

147
00:07:36,800 --> 00:07:40,880
Speaker 14: the Catholic Church being held at the Vatican today. Catholic bishops, nuns,

148
00:07:40,920 --> 00:07:43,440
Speaker 14: and lay people from around the world gathering in Rome

149
00:07:43,520 --> 00:07:45,360
Speaker 14: for a meeting that will tackle some of the most

150
00:07:45,400 --> 00:07:48,880
Speaker 14: sensitive topics that the Church is facing in a radical change.

151
00:07:48,920 --> 00:07:53,040
Speaker 14: Women and laypeople will vote on specific proposals alongside bishops.

152
00:07:53,320 --> 00:07:56,480
Speaker 14: Previously only men could vote. The assembly will likely to

153
00:07:56,480 --> 00:08:00,480
Speaker 14: discuss controversial subjects, including the ordination of female weekns and

154
00:08:00,560 --> 00:08:04,119
Speaker 14: the blessing of gay couples. Global News twenty four hours

155
00:08:04,120 --> 00:08:06,720
Speaker 14: a day, power by more than twenty seven hundred journalist

156
00:08:06,760 --> 00:08:09,600
Speaker 14: and analysts in more than one hundred twenty countries. I'm

157
00:08:09,640 --> 00:08:11,560
Speaker 14: John Tucker. This is Bloomberg.

158
00:08:11,680 --> 00:08:13,600
Speaker 2: Karen all right, John, thank you well. We bring you

159
00:08:13,640 --> 00:08:16,240
Speaker 2: the news throughout the day here on Bloomberg Radio. But

160
00:08:16,320 --> 00:08:19,880
Speaker 2: now you can get the latest news on demand whenever

161
00:08:19,960 --> 00:08:22,800
Speaker 2: you want it. Subscribe to Bloomberg News Now to get

162
00:08:22,840 --> 00:08:25,280
Speaker 2: the latest headlines at the click of a button. Get

163
00:08:25,320 --> 00:08:28,240
Speaker 2: informed on your schedule. You can listen and subscribe to

164
00:08:28,240 --> 00:08:32,480
Speaker 2: Bloomberg News Now on the Bloomberg Business app, Bloomberg dot Com,

165
00:08:32,480 --> 00:08:36,199
Speaker 2: plus apples, Spotify, and anywhere else you get your podcasts,

166
00:08:40,559 --> 00:08:43,640
Speaker 2: and it's time now for the Bloomberg Sports Update. Here's

167
00:08:43,760 --> 00:08:44,760
Speaker 2: John stash Hour.

168
00:08:44,920 --> 00:08:47,959
Speaker 11: John jar It was the longest losing streak in the

169
00:08:48,000 --> 00:08:51,600
Speaker 11: history of North American professional sports. The Minnesota Twins had

170
00:08:51,640 --> 00:08:56,360
Speaker 11: lost eighteen consecutive postseason games. The streak is over, and.

171
00:08:56,520 --> 00:08:59,640
Speaker 4: The Fish slang a hide ride deep left field, backing

172
00:08:59,720 --> 00:09:02,760
Speaker 4: up our showing a run turning fits gone home run

173
00:09:03,600 --> 00:09:08,839
Speaker 4: Royce Lewis, we'll touch them all, hey, two run shot

174
00:09:08,920 --> 00:09:10,960
Speaker 4: to light them up here in Minneapolis.

175
00:09:12,080 --> 00:09:14,800
Speaker 11: ESPN had the call two innings later. Lewis, who was

176
00:09:14,800 --> 00:09:16,840
Speaker 11: called up from the Miners in late May, homard again,

177
00:09:16,920 --> 00:09:19,840
Speaker 11: so he provided the entire offense as the Twins beat

178
00:09:19,880 --> 00:09:21,679
Speaker 11: the Blue Jays three to one. They hadn't won a

179
00:09:21,679 --> 00:09:25,840
Speaker 11: postseason game since two thousand and four. Earlier, Texas won

180
00:09:25,840 --> 00:09:28,640
Speaker 11: poor nothing at Tampa Bay behind seven scoreless sittings from

181
00:09:28,840 --> 00:09:31,720
Speaker 11: Jordan Montgomery, who the Rangers acquired at the trade deadline

182
00:09:31,760 --> 00:09:34,560
Speaker 11: the nationally. Arizona was down three to nothing early, came

183
00:09:34,640 --> 00:09:37,120
Speaker 11: back hit three home runs one sixty three at Milwaukee,

184
00:09:37,360 --> 00:09:39,640
Speaker 11: and the Phillies, behind the pitching to Zach Wheeler, beat

185
00:09:39,679 --> 00:09:43,320
Speaker 11: the Marlins four to one. Game twos today with the

186
00:09:43,360 --> 00:09:47,079
Speaker 11: winners yesterday looking for series clinchers, and the losers looking

187
00:09:47,120 --> 00:09:50,480
Speaker 11: to win enforce a decisive Game three. In college football,

188
00:09:50,840 --> 00:09:54,000
Speaker 11: Iowa has lost its starting quarterback Cade McNamarra, the former

189
00:09:54,080 --> 00:09:57,360
Speaker 11: Michigan QB for the year, Torn acl it's good the

190
00:09:57,480 --> 00:10:01,480
Speaker 11: lineup changes in Pittsburgh taylors co Mike Tomlin not happy

191
00:10:01,520 --> 00:10:05,200
Speaker 11: about losing thirty to six to Houston. Those changes could

192
00:10:05,200 --> 00:10:07,760
Speaker 11: include a quarterback change. That's because of an injury to

193
00:10:07,840 --> 00:10:11,000
Speaker 11: Kenny Pickett. If he can't play Sunday against Baltimore.

194
00:10:10,679 --> 00:10:11,840
Speaker 6: It'll be Mitchell Trabis.

195
00:10:12,200 --> 00:10:14,359
Speaker 7: John Stashower Bloomberg Sports.

196
00:10:16,559 --> 00:10:19,520
Speaker 17: From coast to coast, from New York to San Francisco,

197
00:10:19,880 --> 00:10:24,559
Speaker 17: Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg

198
00:10:24,600 --> 00:10:26,640
Speaker 17: Business app in Bloomberg dot Com.

199
00:10:26,800 --> 00:10:31,520
Speaker 7: This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.

200
00:10:31,640 --> 00:10:34,960
Speaker 3: It took fifteen votes to elect Speaker McCarthy as a

201
00:10:35,040 --> 00:10:38,600
Speaker 3: House Speaker Kevin McCarthy, but only one to kick him

202
00:10:38,600 --> 00:10:42,120
Speaker 3: out after just nine months on the job. Now Congress

203
00:10:42,200 --> 00:10:44,360
Speaker 3: is left without a permanent leader for the first time

204
00:10:44,400 --> 00:10:47,520
Speaker 3: in its history, and it's raising tough questions about what

205
00:10:47,640 --> 00:10:51,720
Speaker 3: comes next. And Washington's ability to govern with another shut

206
00:10:51,760 --> 00:10:54,320
Speaker 3: down deadline a little more than a month away. So

207
00:10:54,400 --> 00:10:57,600
Speaker 3: let's put some of those questions now to Terry Haynes,

208
00:10:57,840 --> 00:11:01,960
Speaker 3: the founder of Pangaea Policy. We've used the words historic,

209
00:11:02,200 --> 00:11:05,880
Speaker 3: unprecedented so many times when it comes to what's happening

210
00:11:05,880 --> 00:11:09,040
Speaker 3: in Washington, but this really is one of those moments.

211
00:11:09,080 --> 00:11:12,480
Speaker 3: I'd like to get your thoughts first on just the

212
00:11:12,520 --> 00:11:17,680
Speaker 3: fact that Speaker McCarthy is out after such a limited

213
00:11:17,720 --> 00:11:18,360
Speaker 3: amount of time.

214
00:11:19,600 --> 00:11:23,080
Speaker 16: Sure, sure, Nathan, good morning. A couple of things. One,

215
00:11:23,120 --> 00:11:25,520
Speaker 16: there's kind of the Washington small ball, and I don't

216
00:11:25,520 --> 00:11:29,680
Speaker 16: mean to disparage anybody that's involved in this, but there's

217
00:11:29,760 --> 00:11:31,960
Speaker 16: kind of the you know, the back and forth about

218
00:11:31,960 --> 00:11:35,080
Speaker 16: what happens next, and we'll talk about that. You know.

219
00:11:35,120 --> 00:11:37,520
Speaker 16: The bigger markets concern is that it's more I think

220
00:11:37,559 --> 00:11:41,440
Speaker 16: it's markets negative because it makes more intractable the two

221
00:11:41,760 --> 00:11:45,840
Speaker 16: intertwined political crises we see in Washington now. First, the

222
00:11:45,880 --> 00:11:49,520
Speaker 16: bipartisan inability to reliably fund the government. I think that

223
00:11:49,640 --> 00:11:53,080
Speaker 16: becomes tougher now and i've a government shutdown in mid

224
00:11:53,120 --> 00:11:57,760
Speaker 16: November up up to eighty percent. And secondly, the bipartisan

225
00:11:57,800 --> 00:12:01,720
Speaker 16: inability to address the out of control fiscal situation. I

226
00:12:01,720 --> 00:12:05,520
Speaker 16: think this is embedding in world markets increasingly the view

227
00:12:05,520 --> 00:12:10,280
Speaker 16: that the US is unable to address spending, debt, and deficits.

228
00:12:10,240 --> 00:12:11,360
Speaker 16: So I think that's all bad.

229
00:12:12,679 --> 00:12:16,880
Speaker 3: Does this move further in trench the four factions that

230
00:12:16,920 --> 00:12:20,240
Speaker 3: you've talked about so many times, or could we see

231
00:12:20,679 --> 00:12:25,000
Speaker 3: more bipartisanship come out of this just because Congress is

232
00:12:25,000 --> 00:12:26,599
Speaker 3: so calcified at this point.

233
00:12:27,280 --> 00:12:33,680
Speaker 16: Well, I think thank you for remembering the factions. The

234
00:12:33,679 --> 00:12:36,240
Speaker 16: the factions I think still exist. I think what ends

235
00:12:36,320 --> 00:12:39,280
Speaker 16: up happening as part of this is that the centrists

236
00:12:39,280 --> 00:12:42,760
Speaker 16: in both parties become a little bit more empowered than

237
00:12:42,800 --> 00:12:47,760
Speaker 16: they were before. That's probably non consensus in the political world,

238
00:12:47,840 --> 00:12:50,800
Speaker 16: but the you know, the centrists are always the ones

239
00:12:50,800 --> 00:12:54,280
Speaker 16: who drive spending deals, and there's an you know, now

240
00:12:54,360 --> 00:12:57,240
Speaker 16: now they have an extra rationale to do so. They

241
00:12:57,280 --> 00:13:01,000
Speaker 16: want to make sure that they they have the place functioning,

242
00:13:01,040 --> 00:13:05,800
Speaker 16: that the government's funded, that their priorities funded, and a

243
00:13:06,160 --> 00:13:10,360
Speaker 16: funded government, you know, helps them best politically. Frankly, they

244
00:13:10,360 --> 00:13:13,240
Speaker 16: are centrists, and a lot of them are in the Republicans,

245
00:13:13,240 --> 00:13:15,640
Speaker 16: for example, A lot of them are in you Marginal

246
00:13:15,640 --> 00:13:19,960
Speaker 16: Biden districts, so that helps them as well. The big

247
00:13:20,000 --> 00:13:23,480
Speaker 16: problem is going to be, of course, how long this

248
00:13:24,160 --> 00:13:27,560
Speaker 16: lack of speaker goes on in the House. And I

249
00:13:27,679 --> 00:13:31,240
Speaker 16: know that the interim Speaker, mister McHenry, would like to

250
00:13:31,280 --> 00:13:35,439
Speaker 16: have a speaker election next Wednesday. I think he's right

251
00:13:35,520 --> 00:13:37,600
Speaker 16: to want to place a timeline on it and do

252
00:13:37,679 --> 00:13:39,600
Speaker 16: it fairly quickly. But at the same time, there's no

253
00:13:39,720 --> 00:13:43,240
Speaker 16: guarantee that the warring Republicans are going to be able

254
00:13:43,280 --> 00:13:44,720
Speaker 16: to call us around a candidate.

255
00:13:45,080 --> 00:13:47,679
Speaker 3: Now, we should talk about who some of these potential

256
00:13:47,720 --> 00:13:50,680
Speaker 3: candidates are that are going to try to find some calls.

257
00:13:50,760 --> 00:13:54,240
Speaker 3: Since we've heard Steve Scalise, the House Majority Leader, is

258
00:13:54,520 --> 00:13:58,760
Speaker 3: already trying to bandy about where the interest lies for him.

259
00:13:59,480 --> 00:14:04,640
Speaker 3: Who could we see potentially find some consensus around a

260
00:14:04,679 --> 00:14:06,160
Speaker 3: potential speakership candidate.

261
00:14:06,840 --> 00:14:11,720
Speaker 16: Well, you know the you know, mister Scalise of course

262
00:14:11,760 --> 00:14:16,320
Speaker 16: would want to move up, Mister Emmer, the Majority whip

263
00:14:16,360 --> 00:14:19,120
Speaker 16: would want to move up. There's a variety of other

264
00:14:19,200 --> 00:14:25,080
Speaker 16: candidates out there. I also wouldn't commend to listeners a

265
00:14:25,120 --> 00:14:27,440
Speaker 16: good article that you all have on your site this

266
00:14:27,520 --> 00:14:31,680
Speaker 16: morning about the different candidates. I also wouldn't rule out,

267
00:14:31,720 --> 00:14:36,240
Speaker 16: mister McHenry continuing, because he's one of the few people

268
00:14:36,920 --> 00:14:39,600
Speaker 16: in the body right now that is trusted by both

269
00:14:39,640 --> 00:14:43,680
Speaker 16: sides and could be relied upon to kind of drive

270
00:14:43,760 --> 00:14:47,120
Speaker 16: bargains and drive process in the House, to try to

271
00:14:47,200 --> 00:14:50,160
Speaker 16: keep the try to keep the spending bills moving and

272
00:14:50,200 --> 00:14:54,400
Speaker 16: that sort of thing, but to drive compromise as well,

273
00:14:54,640 --> 00:14:57,600
Speaker 16: and that's no small thing. McHenry I think very much

274
00:14:57,680 --> 00:15:02,520
Speaker 16: does not want this position, and I'm I mean that sincerely.

275
00:15:02,680 --> 00:15:05,320
Speaker 16: He actually doesn't want to be speaker. But you know,

276
00:15:05,400 --> 00:15:07,480
Speaker 16: needed did Paul Ryan, and look what happened to him.

277
00:15:07,560 --> 00:15:09,520
Speaker 16: So it's entirely possible.

278
00:15:10,040 --> 00:15:12,760
Speaker 3: Just thirty seconds left, Terry, what could Kevin McCarthy have

279
00:15:12,800 --> 00:15:14,280
Speaker 3: done differently to keep his job.

280
00:15:16,760 --> 00:15:20,880
Speaker 16: Nothing, Honestly, I don't think that's the case. You've got.

281
00:15:21,520 --> 00:15:24,240
Speaker 16: You've got a situation where he you know, he made it.

282
00:15:24,360 --> 00:15:29,840
Speaker 16: He chose Yeah, sorry to stammer. He he could have

283
00:15:29,840 --> 00:15:32,000
Speaker 16: shut the government down and kept his job, I suppose,

284
00:15:32,080 --> 00:15:35,280
Speaker 16: but then you know, the greater good would not have

285
00:15:35,320 --> 00:15:38,960
Speaker 16: been served. And uh, you know, he could have chosen

286
00:15:39,000 --> 00:15:41,960
Speaker 16: to be completely partisan instead of mostly partisan, and uh,

287
00:15:42,920 --> 00:15:44,440
Speaker 16: but the country's better off that he didn't.

288
00:15:44,480 --> 00:15:45,000
Speaker 14: I think.

289
00:15:47,320 --> 00:15:50,360
Speaker 1: This is Bloomberg Daybreak Today, your morning brief on the

290
00:15:50,400 --> 00:15:53,840
Speaker 1: stories making news from Wall Street to Washington and beyond.

291
00:15:54,120 --> 00:15:56,880
Speaker 2: Look for us on your podcast feed at six am

292
00:15:56,960 --> 00:16:00,640
Speaker 2: Eastern each morning, on Apple, Spotify, and anywhere else you

293
00:16:00,680 --> 00:16:01,760
Speaker 2: get your podcasts.

294
00:16:01,960 --> 00:16:04,680
Speaker 1: You can also listen live each morning starting at five

295
00:16:04,720 --> 00:16:07,280
Speaker 1: am Wall Street Time, on Bloomberg eleven three to zero

296
00:16:07,360 --> 00:16:10,240
Speaker 1: in New York, Bloomberg ninety nine to one in Washington,

297
00:16:10,320 --> 00:16:13,520
Speaker 1: Bloomberg one oh sixty one in Boston, and Bloomberg ninety

298
00:16:13,560 --> 00:16:14,880
Speaker 1: sixty in San Francisco.

299
00:16:15,320 --> 00:16:18,480
Speaker 2: Our flagship New York station is also available on your

300
00:16:18,520 --> 00:16:23,840
Speaker 2: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.

301
00:16:24,000 --> 00:16:26,960
Speaker 1: Listen coast to coast on the Bloomberg Business app, serious

302
00:16:27,160 --> 00:16:31,080
Speaker 1: XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

303
00:16:31,200 --> 00:16:33,000
Speaker 1: dot Com. I'm Nathan Hager and.

304
00:16:33,000 --> 00:16:36,320
Speaker 2: I'm Karen Moscow. Join us again tomorrow morning for all

305
00:16:36,360 --> 00:16:38,880
Speaker 2: the news you need to start your day right here

306
00:16:39,000 --> 00:16:40,320
Speaker 2: on Bloomberg Daybreak