Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we are headed into day three of the government
Speaker 3: shutdown in Washington. The Senate is expected to hold another
Speaker 3: vote today on a stopgap spending bill to reopen the
Speaker 3: government into mid November. Democrats are holding firm on demands
Speaker 3: to extend healthcare subsidies that expire at the end of
Speaker 3: the year, and now President Trump is threatening to slash
Speaker 3: jobs at what he calls Democrat agencies that don't align
Speaker 3: with his agenda. White House spokeswoman Caroline Levitt was asked
Speaker 3: how deep the cuts could go.
Speaker 2: It's likely going to be in the thousands.
Speaker 1: It's a very good question, and that's something that the
Speaker 1: Office of Management and Budget and the entire team at
Speaker 1: the White House here again is unfortunately having to work
Speaker 1: on today.
Speaker 3: Press Secretary Caroline Levitt at the White House. Now, some
Speaker 3: budget experts of question whether it's legal to conduct permanent
Speaker 3: lay off during a show down. House Minority Leader Hakim
Speaker 3: Jeffrey says Republicans have refused to negotiate.
Speaker 4: This is the first week of this shutdown, But we've
Speaker 4: had months of chaos and cruelty unleashed on the American people,
Speaker 4: and the American people are paying close attention.
Speaker 3: House Democratic Leader Hakim Jeffreys. A Washington Post poll finds
Speaker 3: more voters blamed President Trump and Republicans for the shutdown
Speaker 3: than Democrats by a seventeen point margin. If the Senate
Speaker 3: does vote today, Majority leader John Thune says he is
Speaker 3: unlikely to hold further votes into the weekend. The House
Speaker 3: doesn't return from its recess until Tuesday.
Speaker 2: Well, Nathan, if it weren't for the governments shutdown, investors
Speaker 2: would be looking forward to the jobs report. That data
Speaker 2: comes out the first Friday of every month, and Bloomberg's
Speaker 2: Michael McKee tells us what we could have expected.
Speaker 5: It's not exactly Sherlock Holmes dog that didn't bark. But
Speaker 5: the government shutdown means no jobs report today, so no
Speaker 5: warning or reassurance on the state of the economy. Alternate
Speaker 5: data ADP employment and ism manufacturing suggesting high remained weak
Speaker 5: in September that, in theory, could keep the Fed on
Speaker 5: track to cut rates at the end of the month.
Speaker 5: The hope, of course, is the folks in Washington can
Speaker 5: settle their little feud and get the payroll data out
Speaker 5: before that and before we miss any other key indicators.
Speaker 5: Michael McKee, Bloomberg Radio.
Speaker 3: All right, Mike, thanks, So the shutdown is got gold
Speaker 3: on track for its seventh consecutive week of gains. Bully,
Speaker 3: it has sorted more than forty five percent this year.
Speaker 3: The price is now on track for the biggest annual
Speaker 3: gain since nineteen seventy nine, and stocks enter today's session
Speaker 3: at all time highs. Walter Todd is chief investment officer
Speaker 3: at Greenwood Capital.
Speaker 6: We think the market's a little bit over at skis
Speaker 6: is kind of I hurt someone say the today price
Speaker 6: for perfection in a very imperfect world. I think that's
Speaker 6: a good description of where we are right now. So
Speaker 6: we do see the opportunity for some broader volatility, even
Speaker 6: though individual name volatility has been significant.
Speaker 3: Greenwood Capitals Walter Todd stock futures are higher this morning,
Speaker 3: setting the S and p F five hundred up for
Speaker 3: a sixth straight gain. That would be its longest winning
Speaker 3: streak since July.
Speaker 2: Now, the latest on the trade war, Nathan Treasury Secretary
Speaker 2: Scott Besson predicts, quote a pretty big big breakthrough in
Speaker 2: the next round of talks with China, even as the
Speaker 2: Trump administration takes steps to support American farmers heard by
Speaker 2: a decline in Chinese purchases of soybeans. Besson spoke on CNBC.
Speaker 7: As I leave the trade negotiations for the US with
Speaker 7: my counterpart on the Chinese side, the Vice Premier. What
Speaker 7: gives us a great comfort is the respect that the
Speaker 7: two leaders have for each other. So it'll be very
Speaker 7: helpful for them to be able to speak in person
Speaker 7: and set the framework for trade going forward.
Speaker 2: Treasury Secretary Scott Besson says the upcoming negotiations will occur
Speaker 2: before the scheduled November tenth truce expiration date. Besson also
Speaker 2: says news on support for American farmers and the soy
Speaker 2: sector in particular is expected to be announced next Tuesday.
Speaker 3: Turning the company news now, Karen, we're watching shares of
Speaker 3: Applied Materials in the pre market. They are down more
Speaker 3: than three percent. The largest US maker of machinery used
Speaker 3: to manufacture semiconductors says an expansion of rules that restrict
Speaker 3: the export of its products to China will take another
Speaker 3: chunk out of its revenue. Applied Materials expects it to
Speaker 3: cost six hundred million dollars in fiscal twenty twenty six,
Speaker 3: which runs through next October.
Speaker 2: We have a setback for Boeing. Nathan Bloomberg News has
Speaker 2: learned the company's seven seventy seven X is slated to
Speaker 2: fly commercially for the first time in early twenty twenty
Speaker 2: seven instead of next year. The delay could result in
Speaker 2: potentially billions of dollars in accounting charges, with analysts estimating
Speaker 2: the non cash accounting charge could run from two and
Speaker 2: a half billion to as much as four billion dollars.
Speaker 2: Boeing executives are set to discuss the extent and cost
Speaker 2: of the latest schedules slip for the jet when Boeing
Speaker 2: reports earnings on October twenty.
Speaker 3: Well Karena was a rough session for credit companies TransUnion
Speaker 3: and Equifax. Their drop came after fair Isaac announced a
Speaker 3: new program that gives mortgage lenders a way to get
Speaker 3: its credit scores without buying them from those companies or experience.
Speaker 3: Shares of fair Isaac, which goes by the name Fiico,
Speaker 3: surged eighteen percent.
Speaker 2: And there may be a big AI deal in the works.
Speaker 2: Nathan Bloomberg News has learned Global Infrastructure Partners As in
Speaker 2: advanced talks to acquire mcquarie backed Aligned Data Centers. Sources
Speaker 2: Aligned could be valued at about forty billion dollars in
Speaker 2: a transaction. A deal with Mark the latest in a
Speaker 2: series of deals as investors buy for exposure to the
Speaker 2: leaders of the AI technology. At forty billion dollars, GP's
Speaker 2: deal for Aligned would rank among the world's five biggest
Speaker 2: transactions this year, according to data compiled by Bloomberg. Time
Speaker 2: now for look at some of the other stories making
Speaker 2: news in New York and around the world world, and
Speaker 2: for that we're joined by Bloomberg's John Tucker. John, Good morning, Yeah,
Speaker 2: and good morning Karen.
Speaker 8: Police in the UK say they've identified the man who
Speaker 8: killed two at a Manchester synagogue where worshippers were gathering
Speaker 8: for Yom Kippor, and Bloomberg's James Wilcock has.
Speaker 9: More Jahad al Shami, a thirty five year old Britcisen
Speaker 9: of Syrian descent. Investigations are still ongoing, and the Home
Speaker 9: Section this morning says two things. Firstly, we don't yet
Speaker 9: know if this is a terrorist cell, and secondly that
Speaker 9: the perpetrate was not known to authority. So it's worth
Speaker 9: saying Al Chami is Arabic for the Syrian and it
Speaker 9: is a sort of a known non deguere for Jahadis
Speaker 9: to take a name, so that may not yet be
Speaker 9: relevant to the investigation.
Speaker 8: The attacker drove his vehicle into worshippers and was shot
Speaker 8: dead by police. Three others remain in the hospital. It's
Speaker 8: sentencing day for Sean Ditty Colms in his prostitution related
Speaker 8: convictions in New York. Prosecutors argue the music mogul deserves
Speaker 8: at least eleven years in prison. Has the defense pushers
Speaker 8: for time served. A fire broke out a Chevron oil
Speaker 8: refinery just outside Los Angeles last night. It's in towering
Speaker 8: flames into the year that were visible for miles. Officials
Speaker 8: and El Segundo urged people to stay indoors. Nobody was hurt,
Speaker 8: and Munich Airport temporarily shut down late yesterday after a
Speaker 8: string of drone sightings in the area. It's the latest
Speaker 8: mysterious drone over flights in the airspace of European Union
Speaker 8: member countries. And Taylor Swift's twelfth studio album, The Life
Speaker 8: of the Showgirl, is coming out today. She posted this
Speaker 8: message on.
Speaker 5: X Hey, it's Taylor.
Speaker 1: Check out my new album The Life of a Showgirl
Speaker 1: now on YouTube and YouTube music and baby, that's show
Speaker 1: business for you.
Speaker 8: Well. Swift is now worth two point one billion dollars.
Speaker 8: That's up a billion dollars from two years ago when
Speaker 8: the Bloomberg Billionaires Index first outed her as a member
Speaker 8: of the Three Commas Club. Global news twenty four hours
Speaker 8: a day and whenever you want it with Bloomberg News. Now,
Speaker 8: I'm John Tucker. This is Bloomberg.
Speaker 2: Karen Nanks sean time now for our Bloomberg Sports Update,
Speaker 2: and for that we bring in John stash Hour.
Speaker 5: Thanks Darren.
Speaker 10: There were three decisive game threes the Baseball Wildcard Playoffs,
Speaker 10: starting with Detroit six to three win at Cleveland. The
Speaker 10: Tigers move on to place Seattle that comes beat San
Speaker 10: Diego three to one. Next out for them as Milwaukee
Speaker 10: and the Yankees will now play Toronto. They shut out
Speaker 10: the Red Sox four and up. In rookie pitcher Cam
Speaker 10: Schlitler went eight and is allowed no runs, struck out
Speaker 10: twelve over time. In the NFC West, the forty nine
Speaker 10: ers stopped the Rams on a fourth down int San
Speaker 10: Francisco won twenty six, twenty three. That's your Bloomberg Sports Update.
Speaker 2: Stay with us. More from Bloomberg day Break coming up
Speaker 2: after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
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Speaker 1: Bloomberg Business Oppum. This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan Hager. On day three of the
Speaker 3: government shutdown in Washington, DC, both Republicans and Democrats appeared
Speaker 3: dug in, and now the White House is warning the
Speaker 3: first federal layoffs from the funding lamps could come as
Speaker 3: soon as today. House Speaker Mike Johnson says, the Democrats
Speaker 3: are in a needless fight with President Trump.
Speaker 8: How important is it to appeal to the radical left
Speaker 8: of your base and hurt Americans because if they drag
Speaker 8: this on through the weekend, more and more people will
Speaker 8: be hurt.
Speaker 3: It's how Speaker Mike Johnson speaking on Capitol Hill this morning.
Speaker 3: We are joined by Terry Haynes, the founder of Pangea Policy. Terry,
Speaker 3: good morning, How deep could the pain go? How seriously
Speaker 3: do you take this idea from the White House that
Speaker 3: we could actually see layoffs come out of this shutdown?
Speaker 11: Good morning, Nathan. I take very seriously the possibility that
Speaker 11: what the White House might do is institute these kinds
Speaker 11: of layoffs, riffs, furloughs, firings, you know, whatever they want
Speaker 11: to call it, whatever they want to do. You know, frankly,
Speaker 11: it's a signal from among other things, it's a signal
Speaker 11: for travel or the direction of travel. Here you get
Speaker 11: a situation where, uh, you know, I if this ramps
Speaker 11: up in this particular way, among other things, Trump will
Speaker 11: have much less ability or much less desire to want
Speaker 11: to end the shutdown, because then Congress has a much
Speaker 11: greater likelihood of being able to overturn those firings.
Speaker 3: There's a question, isn't there about whether it's legal to
Speaker 3: use a shutdown to conduct reductions in force. There are
Speaker 3: federal government protections for jobs that would need to be
Speaker 3: overturned in some way.
Speaker 11: When they're oh yeah, absolutely, you know, I think the
Speaker 11: administration wants kind of two practical fights. One wants to
Speaker 11: be seen is going up against public unions, which the
Speaker 11: which they think are are illegal and and a bad
Speaker 11: thing anyway. Number one, anything that limits the executive's ability
Speaker 11: to oversee the executive branch is a bad thing I
Speaker 11: think that way. Secondly, back to my earlier point, it's that,
Speaker 11: you know, once a shutdown is over, Congress has the
Speaker 11: a great ability to actually remedy a lot of this
Speaker 11: stuff through the annual appropriations bills, and of course Democrats
Speaker 11: have a lot of leverage there, and they'll of course
Speaker 11: want to take that leverage and do something with it
Speaker 11: to reinstate a lot of those jobs. So, you know,
Speaker 11: the gun that's being held, the metaphorical gun that's being
Speaker 11: held to public employees heads, I think is quite real
Speaker 11: and quite large.
Speaker 3: That raises a question about, you know, whether some of
Speaker 3: those jobs could be rescinded through recisions that the White
Speaker 3: House Budget Director has carried out in the past. But
Speaker 3: that's probably an argument for another day. In the meantime,
Speaker 3: I think we're expecting another vote in the Senate on
Speaker 3: the clean continuing resolution that Republicans have put out there.
Speaker 3: What are we expecting when it comes to how this
Speaker 3: fight over the spending bill that's on the floor will continue.
Speaker 11: There's a lot of different trip wires that happened today.
Speaker 11: I don't think anything gets resolved today. Let me just
Speaker 11: say that first, but you'll have a Thune Johnson press
Speaker 11: event at eleven o'clock. The Senate Democrats have a lunch
Speaker 11: at noon. Thuon I think announced the Senate Today's Senate
Speaker 11: vote at one thirty. And let's remember that's not just
Speaker 11: on the temporary spending bills, but it's also on more
Speaker 11: Trump nominees. So the signal that Schumer and Democrats give
Speaker 11: on those nominees I think also plays into this a
Speaker 11: little bit, since Republicans have been upset about what they
Speaker 11: think of a Schumer obstructionism. There After that, I think
Speaker 11: nothing probably happens differently, But the question will be whether
Speaker 11: or not more Democrats peel off from the three that
Speaker 11: already have, and I think the answer to that today
Speaker 11: is no. But what I think happens is a lot
Speaker 11: of pressure behind the scenes, to say, from particularly from
Speaker 11: Maryland and Virginia senators, to say, look, you know, we
Speaker 11: you know the the problem with the public employees is
Speaker 11: so large that you know, we can't deal with us
Speaker 11: that much longer. Why don't we just declare victory by
Speaker 11: announcing negotiations with Republicans on this, on the healthcare matter,
Speaker 11: and and be done with it for now?
Speaker 3: Just thirty seconds left, Terry. But is there a risk
Speaker 3: that Republicans go too far with this pressure campaign, this
Speaker 3: idea of carrying out mass government layoffs.
Speaker 11: Oh absolutely, yeah, you know, it's rebably. What's interesting about
Speaker 11: this from a from a kind of a political tactical
Speaker 11: perspective is Republicans have judged the moment very well. And
Speaker 11: I'm not taking their side on any of this by
Speaker 11: saying so, I'm just saying the judged it very well.
Speaker 11: And uh, and you've got a situation where, uh, you
Speaker 11: know where you know, but if they start pressing it
Speaker 11: too much, and there's always a temptation for that, uh,
Speaker 11: you know, they they risk making the problem worse. And
Speaker 11: you know, for as I say, frankly, may the prospects
Speaker 11: for a full year spending and you know, on things
Speaker 11: like defense and other things that much more unattainable.
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