WEBVTT - McCarthy Ouster Turmoil; Global Bond Selloff Continues

0:00:02.480 --> 0:00:03.000
<v Speaker 1>Good morning.

0:00:03.080 --> 0:00:05.920
<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow. Here are the

0:00:05.960 --> 0:00:07.440
<v Speaker 2>stories we're following today.

0:00:08.119 --> 0:00:10.960
<v Speaker 3>We begin with an historic moment on Capitol Hill. For

0:00:11.000 --> 0:00:13.360
<v Speaker 3>the first time, a Speaker of the US House of

0:00:13.400 --> 0:00:15.320
<v Speaker 3>Representatives has been thrown out.

0:00:15.640 --> 0:00:19.239
<v Speaker 4>The office of Speaker of the House of the United

0:00:19.239 --> 0:00:23.440
<v Speaker 4>States House of Representatives is hereby declared vacant.

0:00:24.680 --> 0:00:27.800
<v Speaker 3>Kevin McCarthy was removed from his post after just nine

0:00:27.840 --> 0:00:31.280
<v Speaker 3>months in the job. Eight Republicans joined every Democrat president

0:00:31.280 --> 0:00:34.159
<v Speaker 3>in a roll call vote against the speaker, led by

0:00:34.240 --> 0:00:36.120
<v Speaker 3>conservative firebrand Matt Gates.

0:00:36.560 --> 0:00:40.159
<v Speaker 2>He made an agreement to fulfill certain commitments to make

0:00:40.200 --> 0:00:42.640
<v Speaker 2>this an open and honest process, and.

0:00:42.560 --> 0:00:44.680
<v Speaker 5>He has failed to meet those commitments, and that's why

0:00:44.720 --> 0:00:45.280
<v Speaker 5>we are here.

0:00:45.720 --> 0:00:48.320
<v Speaker 3>Gates's move now leaves the House without a permanent leader

0:00:48.360 --> 0:00:51.760
<v Speaker 3>and no clear successor from McCarthy. The now former speaker

0:00:51.800 --> 0:00:54.200
<v Speaker 3>says he does not plan to run for the job again,

0:00:54.240 --> 0:00:55.800
<v Speaker 3>but he has no regrets.

0:00:56.120 --> 0:00:57.760
<v Speaker 6>I do not regret negotiating.

0:00:58.640 --> 0:01:00.760
<v Speaker 7>Our government is designed and compromise.

0:01:02.360 --> 0:01:07.160
<v Speaker 8>I don't regret my efforts to build coalitions and find solutions.

0:01:07.760 --> 0:01:09.800
<v Speaker 3>Lawmakers are said to vote for a new speaker on

0:01:09.800 --> 0:01:12.480
<v Speaker 3>October eleventh, they're out on recess for the rest of

0:01:12.520 --> 0:01:14.880
<v Speaker 3>the week. Some names that have been floated include House

0:01:14.920 --> 0:01:18.160
<v Speaker 3>Majority Leader Steve Scalise and Patrick McHenry, who is now

0:01:18.200 --> 0:01:19.600
<v Speaker 3>serving as interim.

0:01:19.240 --> 0:01:20.520
<v Speaker 7>Speaker Well Nathan.

0:01:20.560 --> 0:01:23.600
<v Speaker 2>The reaction to McCarthy's ouster is still pouring in. Bloomberg

0:01:23.680 --> 0:01:27.160
<v Speaker 2>political contributor Genie she Hands Zeno says, it's shocking.

0:01:27.400 --> 0:01:30.720
<v Speaker 9>Pretty Much everything you say about politics today starts with

0:01:30.760 --> 0:01:35.600
<v Speaker 9>the words unprecedented, historic, strange, you know, And that's the

0:01:35.640 --> 0:01:38.160
<v Speaker 9>sort of the position that we are in, and it

0:01:38.480 --> 0:01:41.240
<v Speaker 9>just doesn't look like we are near the end of

0:01:41.280 --> 0:01:44.560
<v Speaker 9>it at this point. A house in chaos. A continuing

0:01:44.600 --> 0:01:48.040
<v Speaker 9>resolution gets us through the seventeenth of November, the.

0:01:48.080 --> 0:01:51.600
<v Speaker 2>Date Bloomberg political contributor Genie she Han Zeno mentioned is

0:01:51.640 --> 0:01:55.680
<v Speaker 2>the next shutdown deadline. Henrietta tres, Managing partner and director

0:01:55.720 --> 0:01:59.320
<v Speaker 2>of Economic Policy at Veda Partner, says, the odds are growing.

0:02:00.080 --> 0:02:02.520
<v Speaker 10>Odds of a shutdown have to start at sixty five

0:02:02.560 --> 0:02:05.960
<v Speaker 10>percent or higher for my clients. I usually am at

0:02:06.000 --> 0:02:09.000
<v Speaker 10>about five percent. I'm very bearish on these kinds of things.

0:02:09.280 --> 0:02:11.119
<v Speaker 10>I was only at twenty five percent we would shut

0:02:11.160 --> 0:02:13.880
<v Speaker 10>down going into this weekend. Now that we're in this

0:02:14.040 --> 0:02:16.320
<v Speaker 10>new world. I think you have to start at least

0:02:16.360 --> 0:02:19.280
<v Speaker 10>sixty five. There's a strong argument to make for seventy five,

0:02:19.320 --> 0:02:20.919
<v Speaker 10>and I bet the street will be much higher than me.

0:02:21.480 --> 0:02:24.720
<v Speaker 2>And that shutdown deadline is November seventeenth. Henrietta Tres at

0:02:24.760 --> 0:02:27.880
<v Speaker 2>Beta Partners and notes Moody's has already warned its confidence

0:02:27.880 --> 0:02:31.359
<v Speaker 2>in US governance is waivering. It's the only credit agency

0:02:31.400 --> 0:02:33.320
<v Speaker 2>that still has a top rating for the US.

0:02:33.560 --> 0:02:36.240
<v Speaker 3>And we have other major political news this morning, Karen.

0:02:36.320 --> 0:02:39.080
<v Speaker 3>A gag order has been issued for all parties in

0:02:39.160 --> 0:02:42.400
<v Speaker 3>the Donald Trump fraud trial in New York. Bloomberg Zed

0:02:42.480 --> 0:02:44.000
<v Speaker 3>Baxter has the story, the.

0:02:44.000 --> 0:02:46.880
<v Speaker 7>Judge saying that Trump posted on social media and attack

0:02:47.000 --> 0:02:50.760
<v Speaker 7>on the judge's clerk and shared a photo to his followers.

0:02:51.120 --> 0:02:54.040
<v Speaker 7>The judge, saying any attack of any members of his

0:02:54.160 --> 0:02:58.200
<v Speaker 7>staff are not acceptable, also told parties not to talk

0:02:58.240 --> 0:03:01.680
<v Speaker 7>about the case outside the courtroom. Now, going into today's

0:03:01.680 --> 0:03:03.000
<v Speaker 7>hair ing Trump, He's been.

0:03:02.880 --> 0:03:08.880
<v Speaker 5>Given Paulson information, misleading information, and corrupt information by a.

0:03:09.000 --> 0:03:11.720
<v Speaker 11>Very corrupt and encompetent Attorney general.

0:03:12.240 --> 0:03:15.760
<v Speaker 7>Trump deleted the post. I'm ed Baxter Bloomberg Radio.

0:03:15.680 --> 0:03:18.880
<v Speaker 2>All right, ed, thanks. Meanwhile, the blockbuster trial of FTX

0:03:18.919 --> 0:03:22.360
<v Speaker 2>co founder Sam Bankman Freed is also underway in New York,

0:03:22.400 --> 0:03:25.040
<v Speaker 2>and Bloomberg's Kayley Lines is covering the trial for US

0:03:25.040 --> 0:03:27.120
<v Speaker 2>and filed this report from Lower Manhattan.

0:03:27.360 --> 0:03:30.480
<v Speaker 5>Dan Bankman Fried was present in the courtroom on Tuesday.

0:03:30.520 --> 0:03:33.680
<v Speaker 5>He had a shorter haircut. That signature mop of curly

0:03:33.760 --> 0:03:36.000
<v Speaker 5>hair is gone. He was also wearing a suit that

0:03:36.080 --> 0:03:38.320
<v Speaker 5>appeared too big for him. It seems that he may

0:03:38.360 --> 0:03:41.480
<v Speaker 5>have lost some weight while in detention at the Metropolitan

0:03:41.600 --> 0:03:44.840
<v Speaker 5>Detention Center. Of course, this case really centers around the

0:03:44.920 --> 0:03:48.440
<v Speaker 5>enclosion of FTX and Alimeter Research, that crypto Exchange and

0:03:48.480 --> 0:03:51.320
<v Speaker 5>the separate Hudgsbend, both of which he had founded, and

0:03:51.360 --> 0:03:54.800
<v Speaker 5>prosecutors say he orchestrated one of the greatest financial frauds

0:03:54.920 --> 0:03:57.680
<v Speaker 5>in US history. Kayley Lines at the Federal Courthouse in

0:03:57.720 --> 0:03:59.280
<v Speaker 5>Manhattan for Bloomberg News.

0:04:00.040 --> 0:04:02.240
<v Speaker 3>Haley, thank you well. It's been quite the eventful morning

0:04:02.280 --> 0:04:05.520
<v Speaker 3>in markets as well. Earlier, the thirty year Treasury briefly

0:04:05.600 --> 0:04:08.120
<v Speaker 3>hit five percent for the first time since two thousand

0:04:08.120 --> 0:04:10.200
<v Speaker 3>and seven. Right now it's at about four point nine

0:04:10.240 --> 0:04:13.800
<v Speaker 3>to three. We get more from our market's reporter Valerie Titel.

0:04:13.760 --> 0:04:18.760
<v Speaker 12>This route in the treasury market is just absolutely phenomenal. Honestly,

0:04:18.800 --> 0:04:20.680
<v Speaker 12>I've never seen anything like it myself. I've been in

0:04:20.720 --> 0:04:24.200
<v Speaker 12>the markets for nearly fifteen years now. This steepening that

0:04:24.240 --> 0:04:28.680
<v Speaker 12>we're seeing since Jrome Powell's testimony two weeks ago, that

0:04:28.800 --> 0:04:30.080
<v Speaker 12>was ten sessions ago.

0:04:31.200 --> 0:04:34.680
<v Speaker 3>Bloomberg's salary Titel says the selloffs being seen around the globe.

0:04:34.680 --> 0:04:37.280
<v Speaker 3>Germany's ten year benchmark rate climb to three percent, a

0:04:37.360 --> 0:04:39.000
<v Speaker 3>level unseen since twenty eleven.

0:04:39.320 --> 0:04:39.839
<v Speaker 7>Well, Nathan.

0:04:39.839 --> 0:04:42.440
<v Speaker 2>The market reaction follows more hawkish talk from the Fed.

0:04:42.480 --> 0:04:46.000
<v Speaker 2>Atlanta FED President Raphael Bostik said the Fed should hold

0:04:46.080 --> 0:04:48.360
<v Speaker 2>rates at elevated levels for a long time to bring

0:04:48.400 --> 0:04:50.560
<v Speaker 2>inflation back down to its two percent target.

0:04:51.360 --> 0:04:54.560
<v Speaker 13>I'm grateful to say is that we've seen inflation come down.

0:04:54.920 --> 0:04:57.839
<v Speaker 13>I feel like we're in restrictive space now and now

0:04:58.040 --> 0:05:00.640
<v Speaker 13>we just need to let that restriction play out and

0:05:01.120 --> 0:05:04.400
<v Speaker 13>let it bring inflation, continue to bring inflation down to

0:05:04.480 --> 0:05:06.840
<v Speaker 13>get back into the range of our target. And if

0:05:06.839 --> 0:05:08.280
<v Speaker 13>we can do that, that would be.

0:05:08.240 --> 0:05:10.719
<v Speaker 2>A good thing we land I've had President Raphael Bostak

0:05:10.760 --> 0:05:13.359
<v Speaker 2>says he expects us one rate kind will be appropriate

0:05:13.400 --> 0:05:15.000
<v Speaker 2>in twenty twenty four toward the end of the.

0:05:15.040 --> 0:05:18.560
<v Speaker 3>Year, and Treasury Secretary Janet Yellen says she's very optimistic

0:05:18.600 --> 0:05:19.760
<v Speaker 3>about the US economy.

0:05:20.120 --> 0:05:25.800
<v Speaker 8>Short term inflation is coming down in the context of

0:05:25.880 --> 0:05:30.839
<v Speaker 8>an extremely strong labor market. We're now engaging in a

0:05:31.000 --> 0:05:36.560
<v Speaker 8>very substantial program of investments to strengthen our economy.

0:05:36.600 --> 0:05:39.640
<v Speaker 3>The Secretary Yellen also indicated higher longer term rates could

0:05:39.680 --> 0:05:41.599
<v Speaker 3>pose a threat to the global economy.

0:05:45.040 --> 0:05:46.800
<v Speaker 2>Or Ry Nathan, Thanks, It's time now for a look

0:05:46.800 --> 0:05:49.159
<v Speaker 2>at some of the other stories making news around the world.

0:05:49.160 --> 0:05:52.080
<v Speaker 2>For that, we're joined by Bloomberg's John Tucker. John, good morning,

0:05:52.600 --> 0:05:53.520
<v Speaker 2>and good morning Karen.

0:05:53.560 --> 0:05:57.880
<v Speaker 14>President Joe Biden canceling and additional nine billion dollars in

0:05:58.000 --> 0:06:00.680
<v Speaker 14>student loan deb Let's get more in the support this

0:06:00.760 --> 0:06:03.200
<v Speaker 14>morning from Bloomber's Jeff Bellinger.

0:06:03.440 --> 0:06:06.680
<v Speaker 6>The program the President is expected to detail today will

0:06:06.720 --> 0:06:09.960
<v Speaker 6>bring relief for one hundred and twenty five thousand borrowers

0:06:10.000 --> 0:06:13.880
<v Speaker 6>through changes to programs intended to aid public servants, Americans

0:06:13.880 --> 0:06:17.920
<v Speaker 6>with disability, and low income borrowers. It includes five point

0:06:18.000 --> 0:06:21.440
<v Speaker 6>two billion dollars for fifty three thousand borrowers and public

0:06:21.480 --> 0:06:26.680
<v Speaker 6>service loan forgiveness programs. The Administration also identified fifty one

0:06:26.720 --> 0:06:30.640
<v Speaker 6>thousand additional borrowers who paid for at least twenty years

0:06:30.640 --> 0:06:33.960
<v Speaker 6>but never got relief. It is the President's latest action

0:06:34.120 --> 0:06:37.160
<v Speaker 6>to aid borrowers after the Supreme Court blocked his debt

0:06:37.200 --> 0:06:41.280
<v Speaker 6>relief plan and his payments resumed for millions of Americans.

0:06:41.600 --> 0:06:43.520
<v Speaker 6>Jeff Bellinger Bloomberg Radio.

0:06:43.680 --> 0:06:46.919
<v Speaker 14>More than seventy five thousand healthcare workers preparing for the

0:06:47.040 --> 0:06:50.960
<v Speaker 14>largest healthcare strike in US history. This after talks between

0:06:51.040 --> 0:06:54.800
<v Speaker 14>Kaiser Permanente and a coalition of employee unions have so

0:06:54.920 --> 0:06:58.159
<v Speaker 14>far failed to produce a resolution. The strike sept for today.

0:06:58.480 --> 0:07:02.480
<v Speaker 14>It could interrupt health service for nearly thirteen million people.

0:07:03.120 --> 0:07:07.200
<v Speaker 14>The Justice Department unsealed indictments on several Chinese based companies

0:07:07.560 --> 0:07:11.520
<v Speaker 14>charged with shipping precursor chemicals used to produce fentool and

0:07:11.560 --> 0:07:15.560
<v Speaker 14>other opioids into the US Attorney General Merrick Garland.

0:07:15.680 --> 0:07:20.679
<v Speaker 15>These companies advertise the sale of precursor chemicals online using

0:07:20.720 --> 0:07:24.840
<v Speaker 15>different websites and social media platforms. They then ship the

0:07:24.840 --> 0:07:28.280
<v Speaker 15>building blocks needed to create deadly drugs all.

0:07:28.120 --> 0:07:28.840
<v Speaker 16>Over the world.

0:07:28.960 --> 0:07:33.480
<v Speaker 14>The indictments charge five Chinese corporates in eight Chinese nationals.

0:07:34.040 --> 0:07:36.800
<v Speaker 14>A history making meeting that focuses on the future of

0:07:36.800 --> 0:07:40.880
<v Speaker 14>the Catholic Church being held at the Vatican today. Catholic bishops, nuns,

0:07:40.920 --> 0:07:43.440
<v Speaker 14>and lay people from around the world gathering in Rome

0:07:43.520 --> 0:07:45.360
<v Speaker 14>for a meeting that will tackle some of the most

0:07:45.400 --> 0:07:48.880
<v Speaker 14>sensitive topics that the Church is facing in a radical change.

0:07:48.920 --> 0:07:53.040
<v Speaker 14>Women and laypeople will vote on specific proposals alongside bishops.

0:07:53.320 --> 0:07:56.480
<v Speaker 14>Previously only men could vote. The assembly will likely to

0:07:56.480 --> 0:08:00.480
<v Speaker 14>discuss controversial subjects, including the ordination of female weekns and

0:08:00.560 --> 0:08:04.119
<v Speaker 14>the blessing of gay couples. Global News twenty four hours

0:08:04.120 --> 0:08:06.720
<v Speaker 14>a day, power by more than twenty seven hundred journalist

0:08:06.760 --> 0:08:09.600
<v Speaker 14>and analysts in more than one hundred twenty countries. I'm

0:08:09.640 --> 0:08:11.560
<v Speaker 14>John Tucker. This is Bloomberg.

0:08:11.680 --> 0:08:13.600
<v Speaker 2>Karen all right, John, thank you well. We bring you

0:08:13.640 --> 0:08:16.240
<v Speaker 2>the news throughout the day here on Bloomberg Radio. But

0:08:16.320 --> 0:08:19.880
<v Speaker 2>now you can get the latest news on demand whenever

0:08:19.960 --> 0:08:22.800
<v Speaker 2>you want it. Subscribe to Bloomberg News Now to get

0:08:22.840 --> 0:08:25.280
<v Speaker 2>the latest headlines at the click of a button. Get

0:08:25.320 --> 0:08:28.240
<v Speaker 2>informed on your schedule. You can listen and subscribe to

0:08:28.240 --> 0:08:32.480
<v Speaker 2>Bloomberg News Now on the Bloomberg Business app, Bloomberg dot Com,

0:08:32.480 --> 0:08:36.199
<v Speaker 2>plus apples, Spotify, and anywhere else you get your podcasts,

0:08:40.559 --> 0:08:43.640
<v Speaker 2>and it's time now for the Bloomberg Sports Update. Here's

0:08:43.760 --> 0:08:44.760
<v Speaker 2>John stash Hour.

0:08:44.920 --> 0:08:47.959
<v Speaker 11>John jar It was the longest losing streak in the

0:08:48.000 --> 0:08:51.600
<v Speaker 11>history of North American professional sports. The Minnesota Twins had

0:08:51.640 --> 0:08:56.360
<v Speaker 11>lost eighteen consecutive postseason games. The streak is over, and.

0:08:56.520 --> 0:08:59.640
<v Speaker 4>The Fish slang a hide ride deep left field, backing

0:08:59.720 --> 0:09:02.760
<v Speaker 4>up our showing a run turning fits gone home run

0:09:03.600 --> 0:09:08.839
<v Speaker 4>Royce Lewis, we'll touch them all, hey, two run shot

0:09:08.920 --> 0:09:10.960
<v Speaker 4>to light them up here in Minneapolis.

0:09:12.080 --> 0:09:14.800
<v Speaker 11>ESPN had the call two innings later. Lewis, who was

0:09:14.800 --> 0:09:16.840
<v Speaker 11>called up from the Miners in late May, homard again,

0:09:16.920 --> 0:09:19.840
<v Speaker 11>so he provided the entire offense as the Twins beat

0:09:19.880 --> 0:09:21.679
<v Speaker 11>the Blue Jays three to one. They hadn't won a

0:09:21.679 --> 0:09:25.840
<v Speaker 11>postseason game since two thousand and four. Earlier, Texas won

0:09:25.840 --> 0:09:28.640
<v Speaker 11>poor nothing at Tampa Bay behind seven scoreless sittings from

0:09:28.840 --> 0:09:31.720
<v Speaker 11>Jordan Montgomery, who the Rangers acquired at the trade deadline

0:09:31.760 --> 0:09:34.560
<v Speaker 11>the nationally. Arizona was down three to nothing early, came

0:09:34.640 --> 0:09:37.120
<v Speaker 11>back hit three home runs one sixty three at Milwaukee,

0:09:37.360 --> 0:09:39.640
<v Speaker 11>and the Phillies, behind the pitching to Zach Wheeler, beat

0:09:39.679 --> 0:09:43.320
<v Speaker 11>the Marlins four to one. Game twos today with the

0:09:43.360 --> 0:09:47.079
<v Speaker 11>winners yesterday looking for series clinchers, and the losers looking

0:09:47.120 --> 0:09:50.480
<v Speaker 11>to win enforce a decisive Game three. In college football,

0:09:50.840 --> 0:09:54.000
<v Speaker 11>Iowa has lost its starting quarterback Cade McNamarra, the former

0:09:54.080 --> 0:09:57.360
<v Speaker 11>Michigan QB for the year, Torn acl it's good the

0:09:57.480 --> 0:10:01.480
<v Speaker 11>lineup changes in Pittsburgh taylors co Mike Tomlin not happy

0:10:01.520 --> 0:10:05.200
<v Speaker 11>about losing thirty to six to Houston. Those changes could

0:10:05.200 --> 0:10:07.760
<v Speaker 11>include a quarterback change. That's because of an injury to

0:10:07.840 --> 0:10:11.000
<v Speaker 11>Kenny Pickett. If he can't play Sunday against Baltimore.

0:10:10.679 --> 0:10:11.840
<v Speaker 6>It'll be Mitchell Trabis.

0:10:12.200 --> 0:10:14.359
<v Speaker 7>John Stashower Bloomberg Sports.

0:10:16.559 --> 0:10:19.520
<v Speaker 17>From coast to coast, from New York to San Francisco,

0:10:19.880 --> 0:10:24.559
<v Speaker 17>Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg

0:10:24.600 --> 0:10:26.640
<v Speaker 17>Business app in Bloomberg dot Com.

0:10:26.800 --> 0:10:31.520
<v Speaker 7>This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.

0:10:31.640 --> 0:10:34.960
<v Speaker 3>It took fifteen votes to elect Speaker McCarthy as a

0:10:35.040 --> 0:10:38.600
<v Speaker 3>House Speaker Kevin McCarthy, but only one to kick him

0:10:38.600 --> 0:10:42.120
<v Speaker 3>out after just nine months on the job. Now Congress

0:10:42.200 --> 0:10:44.360
<v Speaker 3>is left without a permanent leader for the first time

0:10:44.400 --> 0:10:47.520
<v Speaker 3>in its history, and it's raising tough questions about what

0:10:47.640 --> 0:10:51.720
<v Speaker 3>comes next. And Washington's ability to govern with another shut

0:10:51.760 --> 0:10:54.320
<v Speaker 3>down deadline a little more than a month away. So

0:10:54.400 --> 0:10:57.600
<v Speaker 3>let's put some of those questions now to Terry Haynes,

0:10:57.840 --> 0:11:01.960
<v Speaker 3>the founder of Pangaea Policy. We've used the words historic,

0:11:02.200 --> 0:11:05.880
<v Speaker 3>unprecedented so many times when it comes to what's happening

0:11:05.880 --> 0:11:09.040
<v Speaker 3>in Washington, but this really is one of those moments.

0:11:09.080 --> 0:11:12.480
<v Speaker 3>I'd like to get your thoughts first on just the

0:11:12.520 --> 0:11:17.680
<v Speaker 3>fact that Speaker McCarthy is out after such a limited

0:11:17.720 --> 0:11:18.360
<v Speaker 3>amount of time.

0:11:19.600 --> 0:11:23.080
<v Speaker 16>Sure, sure, Nathan, good morning. A couple of things. One,

0:11:23.120 --> 0:11:25.520
<v Speaker 16>there's kind of the Washington small ball, and I don't

0:11:25.520 --> 0:11:29.680
<v Speaker 16>mean to disparage anybody that's involved in this, but there's

0:11:29.760 --> 0:11:31.960
<v Speaker 16>kind of the you know, the back and forth about

0:11:31.960 --> 0:11:35.080
<v Speaker 16>what happens next, and we'll talk about that. You know.

0:11:35.120 --> 0:11:37.520
<v Speaker 16>The bigger markets concern is that it's more I think

0:11:37.559 --> 0:11:41.440
<v Speaker 16>it's markets negative because it makes more intractable the two

0:11:41.760 --> 0:11:45.840
<v Speaker 16>intertwined political crises we see in Washington now. First, the

0:11:45.880 --> 0:11:49.520
<v Speaker 16>bipartisan inability to reliably fund the government. I think that

0:11:49.640 --> 0:11:53.080
<v Speaker 16>becomes tougher now and i've a government shutdown in mid

0:11:53.120 --> 0:11:57.760
<v Speaker 16>November up up to eighty percent. And secondly, the bipartisan

0:11:57.800 --> 0:12:01.720
<v Speaker 16>inability to address the out of control fiscal situation. I

0:12:01.720 --> 0:12:05.520
<v Speaker 16>think this is embedding in world markets increasingly the view

0:12:05.520 --> 0:12:10.280
<v Speaker 16>that the US is unable to address spending, debt, and deficits.

0:12:10.240 --> 0:12:11.360
<v Speaker 16>So I think that's all bad.

0:12:12.679 --> 0:12:16.880
<v Speaker 3>Does this move further in trench the four factions that

0:12:16.920 --> 0:12:20.240
<v Speaker 3>you've talked about so many times, or could we see

0:12:20.679 --> 0:12:25.000
<v Speaker 3>more bipartisanship come out of this just because Congress is

0:12:25.000 --> 0:12:26.599
<v Speaker 3>so calcified at this point.

0:12:27.280 --> 0:12:33.680
<v Speaker 16>Well, I think thank you for remembering the factions. The

0:12:33.679 --> 0:12:36.240
<v Speaker 16>the factions I think still exist. I think what ends

0:12:36.320 --> 0:12:39.280
<v Speaker 16>up happening as part of this is that the centrists

0:12:39.280 --> 0:12:42.760
<v Speaker 16>in both parties become a little bit more empowered than

0:12:42.800 --> 0:12:47.760
<v Speaker 16>they were before. That's probably non consensus in the political world,

0:12:47.840 --> 0:12:50.800
<v Speaker 16>but the you know, the centrists are always the ones

0:12:50.800 --> 0:12:54.280
<v Speaker 16>who drive spending deals, and there's an you know, now

0:12:54.360 --> 0:12:57.240
<v Speaker 16>now they have an extra rationale to do so. They

0:12:57.280 --> 0:13:01.000
<v Speaker 16>want to make sure that they they have the place functioning,

0:13:01.040 --> 0:13:05.800
<v Speaker 16>that the government's funded, that their priorities funded, and a

0:13:06.160 --> 0:13:10.360
<v Speaker 16>funded government, you know, helps them best politically. Frankly, they

0:13:10.360 --> 0:13:13.240
<v Speaker 16>are centrists, and a lot of them are in the Republicans,

0:13:13.240 --> 0:13:15.640
<v Speaker 16>for example, A lot of them are in you Marginal

0:13:15.640 --> 0:13:19.960
<v Speaker 16>Biden districts, so that helps them as well. The big

0:13:20.000 --> 0:13:23.480
<v Speaker 16>problem is going to be, of course, how long this

0:13:24.160 --> 0:13:27.560
<v Speaker 16>lack of speaker goes on in the House. And I

0:13:27.679 --> 0:13:31.240
<v Speaker 16>know that the interim Speaker, mister McHenry, would like to

0:13:31.280 --> 0:13:35.439
<v Speaker 16>have a speaker election next Wednesday. I think he's right

0:13:35.520 --> 0:13:37.600
<v Speaker 16>to want to place a timeline on it and do

0:13:37.679 --> 0:13:39.600
<v Speaker 16>it fairly quickly. But at the same time, there's no

0:13:39.720 --> 0:13:43.240
<v Speaker 16>guarantee that the warring Republicans are going to be able

0:13:43.280 --> 0:13:44.720
<v Speaker 16>to call us around a candidate.

0:13:45.080 --> 0:13:47.679
<v Speaker 3>Now, we should talk about who some of these potential

0:13:47.720 --> 0:13:50.680
<v Speaker 3>candidates are that are going to try to find some calls.

0:13:50.760 --> 0:13:54.240
<v Speaker 3>Since we've heard Steve Scalise, the House Majority Leader, is

0:13:54.520 --> 0:13:58.760
<v Speaker 3>already trying to bandy about where the interest lies for him.

0:13:59.480 --> 0:14:04.640
<v Speaker 3>Who could we see potentially find some consensus around a

0:14:04.679 --> 0:14:06.160
<v Speaker 3>potential speakership candidate.

0:14:06.840 --> 0:14:11.720
<v Speaker 16>Well, you know the you know, mister Scalise of course

0:14:11.760 --> 0:14:16.320
<v Speaker 16>would want to move up, Mister Emmer, the Majority whip

0:14:16.360 --> 0:14:19.120
<v Speaker 16>would want to move up. There's a variety of other

0:14:19.200 --> 0:14:25.080
<v Speaker 16>candidates out there. I also wouldn't commend to listeners a

0:14:25.120 --> 0:14:27.440
<v Speaker 16>good article that you all have on your site this

0:14:27.520 --> 0:14:31.680
<v Speaker 16>morning about the different candidates. I also wouldn't rule out,

0:14:31.720 --> 0:14:36.240
<v Speaker 16>mister McHenry continuing, because he's one of the few people

0:14:36.920 --> 0:14:39.600
<v Speaker 16>in the body right now that is trusted by both

0:14:39.640 --> 0:14:43.680
<v Speaker 16>sides and could be relied upon to kind of drive

0:14:43.760 --> 0:14:47.120
<v Speaker 16>bargains and drive process in the House, to try to

0:14:47.200 --> 0:14:50.160
<v Speaker 16>keep the try to keep the spending bills moving and

0:14:50.200 --> 0:14:54.400
<v Speaker 16>that sort of thing, but to drive compromise as well,

0:14:54.640 --> 0:14:57.600
<v Speaker 16>and that's no small thing. McHenry I think very much

0:14:57.680 --> 0:15:02.520
<v Speaker 16>does not want this position, and I'm I mean that sincerely.

0:15:02.680 --> 0:15:05.320
<v Speaker 16>He actually doesn't want to be speaker. But you know,

0:15:05.400 --> 0:15:07.480
<v Speaker 16>needed did Paul Ryan, and look what happened to him.

0:15:07.560 --> 0:15:09.520
<v Speaker 16>So it's entirely possible.

0:15:10.040 --> 0:15:12.760
<v Speaker 3>Just thirty seconds left, Terry, what could Kevin McCarthy have

0:15:12.800 --> 0:15:14.280
<v Speaker 3>done differently to keep his job.

0:15:16.760 --> 0:15:20.880
<v Speaker 16>Nothing, Honestly, I don't think that's the case. You've got.

0:15:21.520 --> 0:15:24.240
<v Speaker 16>You've got a situation where he you know, he made it.

0:15:24.360 --> 0:15:29.840
<v Speaker 16>He chose Yeah, sorry to stammer. He he could have

0:15:29.840 --> 0:15:32.000
<v Speaker 16>shut the government down and kept his job, I suppose,

0:15:32.080 --> 0:15:35.280
<v Speaker 16>but then you know, the greater good would not have

0:15:35.320 --> 0:15:38.960
<v Speaker 16>been served. And uh, you know, he could have chosen

0:15:39.000 --> 0:15:41.960
<v Speaker 16>to be completely partisan instead of mostly partisan, and uh,

0:15:42.920 --> 0:15:44.440
<v Speaker 16>but the country's better off that he didn't.

0:15:44.480 --> 0:15:45.000
<v Speaker 14>I think.

0:15:47.320 --> 0:15:50.360
<v Speaker 1>This is Bloomberg Daybreak Today, your morning brief on the

0:15:50.400 --> 0:15:53.840
<v Speaker 1>stories making news from Wall Street to Washington and beyond.

0:15:54.120 --> 0:15:56.880
<v Speaker 2>Look for us on your podcast feed at six am

0:15:56.960 --> 0:16:00.640
<v Speaker 2>Eastern each morning, on Apple, Spotify, and anywhere else you

0:16:00.680 --> 0:16:01.760
<v Speaker 2>get your podcasts.

0:16:01.960 --> 0:16:04.680
<v Speaker 1>You can also listen live each morning starting at five

0:16:04.720 --> 0:16:07.280
<v Speaker 1>am Wall Street Time, on Bloomberg eleven three to zero

0:16:07.360 --> 0:16:10.240
<v Speaker 1>in New York, Bloomberg ninety nine to one in Washington,

0:16:10.320 --> 0:16:13.520
<v Speaker 1>Bloomberg one oh sixty one in Boston, and Bloomberg ninety

0:16:13.560 --> 0:16:14.880
<v Speaker 1>sixty in San Francisco.

0:16:15.320 --> 0:16:18.480
<v Speaker 2>Our flagship New York station is also available on your

0:16:18.520 --> 0:16:23.840
<v Speaker 2>Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.

0:16:24.000 --> 0:16:26.960
<v Speaker 1>Listen coast to coast on the Bloomberg Business app, serious

0:16:27.160 --> 0:16:31.080
<v Speaker 1>XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

0:16:31.200 --> 0:16:33.000
<v Speaker 1>dot Com. I'm Nathan Hager and.

0:16:33.000 --> 0:16:36.320
<v Speaker 2>I'm Karen Moscow. Join us again tomorrow morning for all

0:16:36.360 --> 0:16:38.880
<v Speaker 2>the news you need to start your day right here

0:16:39.000 --> 0:16:40.320
<v Speaker 2>on Bloomberg Daybreak