Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: We begin with an historic moment on Capitol Hill. For
Speaker 3: the first time, a Speaker of the US House of
Speaker 3: Representatives has been thrown out.
Speaker 4: The office of Speaker of the House of the United
Speaker 4: States House of Representatives is hereby declared vacant.
Speaker 3: Kevin McCarthy was removed from his post after just nine
Speaker 3: months in the job. Eight Republicans joined every Democrat president
Speaker 3: in a roll call vote against the speaker, led by
Speaker 3: conservative firebrand Matt Gates.
Speaker 2: He made an agreement to fulfill certain commitments to make
Speaker 2: this an open and honest process, and.
Speaker 5: He has failed to meet those commitments, and that's why
Speaker 5: we are here.
Speaker 3: Gates's move now leaves the House without a permanent leader
Speaker 3: and no clear successor from McCarthy. The now former speaker
Speaker 3: says he does not plan to run for the job again,
Speaker 3: but he has no regrets.
Speaker 6: I do not regret negotiating.
Speaker 7: Our government is designed and compromise.
Speaker 8: I don't regret my efforts to build coalitions and find solutions.
Speaker 3: Lawmakers are said to vote for a new speaker on
Speaker 3: October eleventh, they're out on recess for the rest of
Speaker 3: the week. Some names that have been floated include House
Speaker 3: Majority Leader Steve Scalise and Patrick McHenry, who is now
Speaker 3: serving as interim.
Speaker 7: Speaker Well Nathan.
Speaker 2: The reaction to McCarthy's ouster is still pouring in. Bloomberg
Speaker 2: political contributor Genie she Hands Zeno says, it's shocking.
Speaker 9: Pretty Much everything you say about politics today starts with
Speaker 9: the words unprecedented, historic, strange, you know, And that's the
Speaker 9: sort of the position that we are in, and it
Speaker 9: just doesn't look like we are near the end of
Speaker 9: it at this point. A house in chaos. A continuing
Speaker 9: resolution gets us through the seventeenth of November, the.
Speaker 2: Date Bloomberg political contributor Genie she Han Zeno mentioned is
Speaker 2: the next shutdown deadline. Henrietta tres, Managing partner and director
Speaker 2: of Economic Policy at Veda Partner, says, the odds are growing.
Speaker 10: Odds of a shutdown have to start at sixty five
Speaker 10: percent or higher for my clients. I usually am at
Speaker 10: about five percent. I'm very bearish on these kinds of things.
Speaker 10: I was only at twenty five percent we would shut
Speaker 10: down going into this weekend. Now that we're in this
Speaker 10: new world. I think you have to start at least
Speaker 10: sixty five. There's a strong argument to make for seventy five,
Speaker 10: and I bet the street will be much higher than me.
Speaker 2: And that shutdown deadline is November seventeenth. Henrietta Tres at
Speaker 2: Beta Partners and notes Moody's has already warned its confidence
Speaker 2: in US governance is waivering. It's the only credit agency
Speaker 2: that still has a top rating for the US.
Speaker 3: And we have other major political news this morning, Karen.
Speaker 3: A gag order has been issued for all parties in
Speaker 3: the Donald Trump fraud trial in New York. Bloomberg Zed
Speaker 3: Baxter has the story, the.
Speaker 7: Judge saying that Trump posted on social media and attack
Speaker 7: on the judge's clerk and shared a photo to his followers.
Speaker 7: The judge, saying any attack of any members of his
Speaker 7: staff are not acceptable, also told parties not to talk
Speaker 7: about the case outside the courtroom. Now, going into today's
Speaker 7: hair ing Trump, He's been.
Speaker 5: Given Paulson information, misleading information, and corrupt information by a.
Speaker 11: Very corrupt and encompetent Attorney general.
Speaker 7: Trump deleted the post. I'm ed Baxter Bloomberg Radio.
Speaker 2: All right, ed, thanks. Meanwhile, the blockbuster trial of FTX
Speaker 2: co founder Sam Bankman Freed is also underway in New York,
Speaker 2: and Bloomberg's Kayley Lines is covering the trial for US
Speaker 2: and filed this report from Lower Manhattan.
Speaker 5: Dan Bankman Fried was present in the courtroom on Tuesday.
Speaker 5: He had a shorter haircut. That signature mop of curly
Speaker 5: hair is gone. He was also wearing a suit that
Speaker 5: appeared too big for him. It seems that he may
Speaker 5: have lost some weight while in detention at the Metropolitan
Speaker 5: Detention Center. Of course, this case really centers around the
Speaker 5: enclosion of FTX and Alimeter Research, that crypto Exchange and
Speaker 5: the separate Hudgsbend, both of which he had founded, and
Speaker 5: prosecutors say he orchestrated one of the greatest financial frauds
Speaker 5: in US history. Kayley Lines at the Federal Courthouse in
Speaker 5: Manhattan for Bloomberg News.
Speaker 3: Haley, thank you well. It's been quite the eventful morning
Speaker 3: in markets as well. Earlier, the thirty year Treasury briefly
Speaker 3: hit five percent for the first time since two thousand
Speaker 3: and seven. Right now it's at about four point nine
Speaker 3: to three. We get more from our market's reporter Valerie Titel.
Speaker 12: This route in the treasury market is just absolutely phenomenal. Honestly,
Speaker 12: I've never seen anything like it myself. I've been in
Speaker 12: the markets for nearly fifteen years now. This steepening that
Speaker 12: we're seeing since Jrome Powell's testimony two weeks ago, that
Speaker 12: was ten sessions ago.
Speaker 3: Bloomberg's salary Titel says the selloffs being seen around the globe.
Speaker 3: Germany's ten year benchmark rate climb to three percent, a
Speaker 3: level unseen since twenty eleven.
Speaker 7: Well, Nathan.
Speaker 2: The market reaction follows more hawkish talk from the Fed.
Speaker 2: Atlanta FED President Raphael Bostik said the Fed should hold
Speaker 2: rates at elevated levels for a long time to bring
Speaker 2: inflation back down to its two percent target.
Speaker 13: I'm grateful to say is that we've seen inflation come down.
Speaker 13: I feel like we're in restrictive space now and now
Speaker 13: we just need to let that restriction play out and
Speaker 13: let it bring inflation, continue to bring inflation down to
Speaker 13: get back into the range of our target. And if
Speaker 13: we can do that, that would be.
Speaker 2: A good thing we land I've had President Raphael Bostak
Speaker 2: says he expects us one rate kind will be appropriate
Speaker 2: in twenty twenty four toward the end of the.
Speaker 3: Year, and Treasury Secretary Janet Yellen says she's very optimistic
Speaker 3: about the US economy.
Speaker 8: Short term inflation is coming down in the context of
Speaker 8: an extremely strong labor market. We're now engaging in a
Speaker 8: very substantial program of investments to strengthen our economy.
Speaker 3: The Secretary Yellen also indicated higher longer term rates could
Speaker 3: pose a threat to the global economy.
Speaker 2: Or Ry Nathan, Thanks, It's time now for a look
Speaker 2: at some of the other stories making news around the world.
Speaker 2: For that, we're joined by Bloomberg's John Tucker. John, good morning,
Speaker 2: and good morning Karen.
Speaker 14: President Joe Biden canceling and additional nine billion dollars in
Speaker 14: student loan deb Let's get more in the support this
Speaker 14: morning from Bloomber's Jeff Bellinger.
Speaker 6: The program the President is expected to detail today will
Speaker 6: bring relief for one hundred and twenty five thousand borrowers
Speaker 6: through changes to programs intended to aid public servants, Americans
Speaker 6: with disability, and low income borrowers. It includes five point
Speaker 6: two billion dollars for fifty three thousand borrowers and public
Speaker 6: service loan forgiveness programs. The Administration also identified fifty one
Speaker 6: thousand additional borrowers who paid for at least twenty years
Speaker 6: but never got relief. It is the President's latest action
Speaker 6: to aid borrowers after the Supreme Court blocked his debt
Speaker 6: relief plan and his payments resumed for millions of Americans.
Speaker 6: Jeff Bellinger Bloomberg Radio.
Speaker 14: More than seventy five thousand healthcare workers preparing for the
Speaker 14: largest healthcare strike in US history. This after talks between
Speaker 14: Kaiser Permanente and a coalition of employee unions have so
Speaker 14: far failed to produce a resolution. The strike sept for today.
Speaker 14: It could interrupt health service for nearly thirteen million people.
Speaker 14: The Justice Department unsealed indictments on several Chinese based companies
Speaker 14: charged with shipping precursor chemicals used to produce fentool and
Speaker 14: other opioids into the US Attorney General Merrick Garland.
Speaker 15: These companies advertise the sale of precursor chemicals online using
Speaker 15: different websites and social media platforms. They then ship the
Speaker 15: building blocks needed to create deadly drugs all.
Speaker 16: Over the world.
Speaker 14: The indictments charge five Chinese corporates in eight Chinese nationals.
Speaker 14: A history making meeting that focuses on the future of
Speaker 14: the Catholic Church being held at the Vatican today. Catholic bishops, nuns,
Speaker 14: and lay people from around the world gathering in Rome
Speaker 14: for a meeting that will tackle some of the most
Speaker 14: sensitive topics that the Church is facing in a radical change.
Speaker 14: Women and laypeople will vote on specific proposals alongside bishops.
Speaker 14: Previously only men could vote. The assembly will likely to
Speaker 14: discuss controversial subjects, including the ordination of female weekns and
Speaker 14: the blessing of gay couples. Global News twenty four hours
Speaker 14: a day, power by more than twenty seven hundred journalist
Speaker 14: and analysts in more than one hundred twenty countries. I'm
Speaker 14: John Tucker. This is Bloomberg.
Speaker 2: Karen all right, John, thank you well. We bring you
Speaker 2: the news throughout the day here on Bloomberg Radio. But
Speaker 2: now you can get the latest news on demand whenever
Speaker 2: you want it. Subscribe to Bloomberg News Now to get
Speaker 2: the latest headlines at the click of a button. Get
Speaker 2: informed on your schedule. You can listen and subscribe to
Speaker 2: Bloomberg News Now on the Bloomberg Business app, Bloomberg dot Com,
Speaker 2: plus apples, Spotify, and anywhere else you get your podcasts,
Speaker 2: and it's time now for the Bloomberg Sports Update. Here's
Speaker 2: John stash Hour.
Speaker 11: John jar It was the longest losing streak in the
Speaker 11: history of North American professional sports. The Minnesota Twins had
Speaker 11: lost eighteen consecutive postseason games. The streak is over, and.
Speaker 4: The Fish slang a hide ride deep left field, backing
Speaker 4: up our showing a run turning fits gone home run
Speaker 4: Royce Lewis, we'll touch them all, hey, two run shot
Speaker 4: to light them up here in Minneapolis.
Speaker 11: ESPN had the call two innings later. Lewis, who was
Speaker 11: called up from the Miners in late May, homard again,
Speaker 11: so he provided the entire offense as the Twins beat
Speaker 11: the Blue Jays three to one. They hadn't won a
Speaker 11: postseason game since two thousand and four. Earlier, Texas won
Speaker 11: poor nothing at Tampa Bay behind seven scoreless sittings from
Speaker 11: Jordan Montgomery, who the Rangers acquired at the trade deadline
Speaker 11: the nationally. Arizona was down three to nothing early, came
Speaker 11: back hit three home runs one sixty three at Milwaukee,
Speaker 11: and the Phillies, behind the pitching to Zach Wheeler, beat
Speaker 11: the Marlins four to one. Game twos today with the
Speaker 11: winners yesterday looking for series clinchers, and the losers looking
Speaker 11: to win enforce a decisive Game three. In college football,
Speaker 11: Iowa has lost its starting quarterback Cade McNamarra, the former
Speaker 11: Michigan QB for the year, Torn acl it's good the
Speaker 11: lineup changes in Pittsburgh taylors co Mike Tomlin not happy
Speaker 11: about losing thirty to six to Houston. Those changes could
Speaker 11: include a quarterback change. That's because of an injury to
Speaker 11: Kenny Pickett. If he can't play Sunday against Baltimore.
Speaker 6: It'll be Mitchell Trabis.
Speaker 7: John Stashower Bloomberg Sports.
Speaker 17: From coast to coast, from New York to San Francisco,
Speaker 17: Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg
Speaker 17: Business app in Bloomberg dot Com.
Speaker 7: This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.
Speaker 3: It took fifteen votes to elect Speaker McCarthy as a
Speaker 3: House Speaker Kevin McCarthy, but only one to kick him
Speaker 3: out after just nine months on the job. Now Congress
Speaker 3: is left without a permanent leader for the first time
Speaker 3: in its history, and it's raising tough questions about what
Speaker 3: comes next. And Washington's ability to govern with another shut
Speaker 3: down deadline a little more than a month away. So
Speaker 3: let's put some of those questions now to Terry Haynes,
Speaker 3: the founder of Pangaea Policy. We've used the words historic,
Speaker 3: unprecedented so many times when it comes to what's happening
Speaker 3: in Washington, but this really is one of those moments.
Speaker 3: I'd like to get your thoughts first on just the
Speaker 3: fact that Speaker McCarthy is out after such a limited
Speaker 3: amount of time.
Speaker 16: Sure, sure, Nathan, good morning. A couple of things. One,
Speaker 16: there's kind of the Washington small ball, and I don't
Speaker 16: mean to disparage anybody that's involved in this, but there's
Speaker 16: kind of the you know, the back and forth about
Speaker 16: what happens next, and we'll talk about that. You know.
Speaker 16: The bigger markets concern is that it's more I think
Speaker 16: it's markets negative because it makes more intractable the two
Speaker 16: intertwined political crises we see in Washington now. First, the
Speaker 16: bipartisan inability to reliably fund the government. I think that
Speaker 16: becomes tougher now and i've a government shutdown in mid
Speaker 16: November up up to eighty percent. And secondly, the bipartisan
Speaker 16: inability to address the out of control fiscal situation. I
Speaker 16: think this is embedding in world markets increasingly the view
Speaker 16: that the US is unable to address spending, debt, and deficits.
Speaker 16: So I think that's all bad.
Speaker 3: Does this move further in trench the four factions that
Speaker 3: you've talked about so many times, or could we see
Speaker 3: more bipartisanship come out of this just because Congress is
Speaker 3: so calcified at this point.
Speaker 16: Well, I think thank you for remembering the factions. The
Speaker 16: the factions I think still exist. I think what ends
Speaker 16: up happening as part of this is that the centrists
Speaker 16: in both parties become a little bit more empowered than
Speaker 16: they were before. That's probably non consensus in the political world,
Speaker 16: but the you know, the centrists are always the ones
Speaker 16: who drive spending deals, and there's an you know, now
Speaker 16: now they have an extra rationale to do so. They
Speaker 16: want to make sure that they they have the place functioning,
Speaker 16: that the government's funded, that their priorities funded, and a
Speaker 16: funded government, you know, helps them best politically. Frankly, they
Speaker 16: are centrists, and a lot of them are in the Republicans,
Speaker 16: for example, A lot of them are in you Marginal
Speaker 16: Biden districts, so that helps them as well. The big
Speaker 16: problem is going to be, of course, how long this
Speaker 16: lack of speaker goes on in the House. And I
Speaker 16: know that the interim Speaker, mister McHenry, would like to
Speaker 16: have a speaker election next Wednesday. I think he's right
Speaker 16: to want to place a timeline on it and do
Speaker 16: it fairly quickly. But at the same time, there's no
Speaker 16: guarantee that the warring Republicans are going to be able
Speaker 16: to call us around a candidate.
Speaker 3: Now, we should talk about who some of these potential
Speaker 3: candidates are that are going to try to find some calls.
Speaker 3: Since we've heard Steve Scalise, the House Majority Leader, is
Speaker 3: already trying to bandy about where the interest lies for him.
Speaker 3: Who could we see potentially find some consensus around a
Speaker 3: potential speakership candidate.
Speaker 16: Well, you know the you know, mister Scalise of course
Speaker 16: would want to move up, Mister Emmer, the Majority whip
Speaker 16: would want to move up. There's a variety of other
Speaker 16: candidates out there. I also wouldn't commend to listeners a
Speaker 16: good article that you all have on your site this
Speaker 16: morning about the different candidates. I also wouldn't rule out,
Speaker 16: mister McHenry continuing, because he's one of the few people
Speaker 16: in the body right now that is trusted by both
Speaker 16: sides and could be relied upon to kind of drive
Speaker 16: bargains and drive process in the House, to try to
Speaker 16: keep the try to keep the spending bills moving and
Speaker 16: that sort of thing, but to drive compromise as well,
Speaker 16: and that's no small thing. McHenry I think very much
Speaker 16: does not want this position, and I'm I mean that sincerely.
Speaker 16: He actually doesn't want to be speaker. But you know,
Speaker 16: needed did Paul Ryan, and look what happened to him.
Speaker 16: So it's entirely possible.
Speaker 3: Just thirty seconds left, Terry, what could Kevin McCarthy have
Speaker 3: done differently to keep his job.
Speaker 16: Nothing, Honestly, I don't think that's the case. You've got.
Speaker 16: You've got a situation where he you know, he made it.
Speaker 16: He chose Yeah, sorry to stammer. He he could have
Speaker 16: shut the government down and kept his job, I suppose,
Speaker 16: but then you know, the greater good would not have
Speaker 16: been served. And uh, you know, he could have chosen
Speaker 16: to be completely partisan instead of mostly partisan, and uh,
Speaker 16: but the country's better off that he didn't.
Speaker 14: I think.
Speaker 1: This is Bloomberg Daybreak Today, your morning brief on the
Speaker 1: stories making news from Wall Street to Washington and beyond.
Speaker 2: Look for us on your podcast feed at six am
Speaker 2: Eastern each morning, on Apple, Spotify, and anywhere else you
Speaker 2: get your podcasts.
Speaker 1: You can also listen live each morning starting at five
Speaker 1: am Wall Street Time, on Bloomberg eleven three to zero
Speaker 1: in New York, Bloomberg ninety nine to one in Washington,
Speaker 1: Bloomberg one oh sixty one in Boston, and Bloomberg ninety
Speaker 1: sixty in San Francisco.
Speaker 2: Our flagship New York station is also available on your
Speaker 2: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.
Speaker 1: Listen coast to coast on the Bloomberg Business app, serious
Speaker 1: XM Channel one nineteen, the iHeartRadio app, and on Bloomberg
Speaker 1: dot Com. I'm Nathan Hager and.
Speaker 2: I'm Karen Moscow. Join us again tomorrow morning for all
Speaker 2: the news you need to start your day right here
Speaker 2: on Bloomberg Daybreak