WEBVTT - New Government Shutdown Developments; Biden to Join UAW Picket Line

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 3>First, lawmakers in Washington may be inching closer to a

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<v Speaker 3>deal to help avoid a government shutdown at the end

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<v Speaker 3>of this week. We get the latest from Bloomberg's Amy

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<v Speaker 3>Morris in the nation's capital.

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<v Speaker 4>Sources tell Bloomberg the bipartisan Senate bill would extend funding

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<v Speaker 4>for four to six weeks, shorter than what Democrats wanted,

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<v Speaker 4>but could get it through the House. Once it passes

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<v Speaker 4>the Senate, it goes to the House, where Speaker Kevin

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<v Speaker 4>McCarthy will face a tough choice on whether to hold

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<v Speaker 4>a vote at all. So far, McCarthy has not been

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<v Speaker 4>able to muster enough Republican votes for a rival stopgap

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<v Speaker 4>measure that would cut spending by twenty seven percent and

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<v Speaker 4>change border policies. Now, if McCarthy does put this Senate

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<v Speaker 4>bill up for a vote, Conservatives have threatened to try

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<v Speaker 4>to oust him in Washington. I'm Amy Morris, Bloomberg Radio.

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<v Speaker 2>All right, Amy, thanks Will. In addition to negotiations over

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<v Speaker 2>a possible government shutdown, the autoworkers' strike is also making

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<v Speaker 2>headlines this morning. President by and is stepping further into

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<v Speaker 2>the dispute and a highly unusual move. And Bloomberg's Ed

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<v Speaker 2>Baxter has the story.

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<v Speaker 5>Biden travels to the Detroit area today to join workers

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<v Speaker 5>on the UAW picket line. White House Folks Women Karine

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<v Speaker 5>Jean Pierre he is.

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<v Speaker 6>The most pro union president in modern.

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<v Speaker 5>Times and says the message is clear.

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<v Speaker 2>This is the president that's made very clear that he

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<v Speaker 2>believes that corporate profits should lead to record UAWA record

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<v Speaker 2>UAW contract.

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<v Speaker 5>Now, Donald Trump visits Michigan on Wednesday as a two

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<v Speaker 5>battle for the blue collar vote. I'm Ed Baxter, Bloomberg Radio.

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<v Speaker 3>Okay, Ed, thank you. President Biden's decision to stand alongside

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<v Speaker 3>United Auto Workers on the twelfth day of their strike

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<v Speaker 3>appears to be historic. More on that from Bloomberg Auto

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<v Speaker 3>reporter Oliver Crook.

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<v Speaker 7>The question I think is does this help the union

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<v Speaker 7>workers more or does this help Biden more?

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<v Speaker 8>So?

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<v Speaker 7>This is the first time over one hundred years that

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<v Speaker 7>are sitting president hasn't done anything like this and really

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<v Speaker 7>breaking with a historical president. And it comes at a

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<v Speaker 7>time when the US are really showing the highest support

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<v Speaker 7>for unions in about twenty five years. So politically for Biden,

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<v Speaker 7>this is certainly an attractive thing. The risk for Biden

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<v Speaker 7>is that if this goes on longer and longer and

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<v Speaker 7>longer the economy starts to suffer, that this is going

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<v Speaker 7>to be used as ammunition against him.

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<v Speaker 3>Whom Bergato reporter Oliver Crook says the Biden administration has

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<v Speaker 3>no formal role in the negotiations between the UAW and

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<v Speaker 3>the automakers.

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<v Speaker 2>Well, turning to the markets now, Nathan, the CEOs of

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<v Speaker 2>two of Wall Street's biggest banks have been weighing in

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<v Speaker 2>on growth and rates. Goldman SAX boss David Sulomon said

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<v Speaker 2>he expects the FED to hike further and the economy

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<v Speaker 2>to cool. Here's what he told the American Energy Security Summit.

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<v Speaker 9>I think it's going to be hard to get inflation

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<v Speaker 9>back to the target, and that probably means if inflation

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<v Speaker 9>is sticky, we will see additional interest rate increases, and

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<v Speaker 9>ultimately that probably does lead to a little bit more

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<v Speaker 9>of a slowdown in the economy. Whether that's a recession

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<v Speaker 9>or it's just a slow down, you know, it's hard

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<v Speaker 9>to say, but it would be unprecedented to go through

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<v Speaker 9>this type of a tightening cycle and not see us

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<v Speaker 9>get to a little bit of slower economic growth and

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<v Speaker 9>what we're seen right now.

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<v Speaker 2>And the comments from solom Income as JP Morgan CEO

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<v Speaker 2>Jamie diamond says he's not sure if the world is

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<v Speaker 2>prepared for seven percent rates. Speaking to the Times of India,

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<v Speaker 2>Diamonds said that going to that level would be much

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<v Speaker 2>more painful than getting to five percent.

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<v Speaker 3>On top FED officials. Also speaking about interest rates, Karen

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<v Speaker 3>Minneapolis FED President Neil Kashkari says he expects the Central

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<v Speaker 3>Bank will need to raise rates one more time this year.

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<v Speaker 10>So the economy has continued to exceed expectations in its

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<v Speaker 10>underlying resilience. So if the economy is fundamentally much stronger

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<v Speaker 10>than we realized on a margin, that would tell me

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<v Speaker 10>rate probably have to go a little bit higher and

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<v Speaker 10>then be held higher for longer to cool things off.

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<v Speaker 3>Minneapolis Fed President Neil Kashkari made those comments yesterday at

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<v Speaker 3>the University of Pennsylvania's Wharton School.

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<v Speaker 2>Well turning to Asia and Nathan the troubled that Chinese

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<v Speaker 2>property developer Evergrand says its mainland unit has defaulted on

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<v Speaker 2>a five hundred and forty seven million dollars on shore

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<v Speaker 2>bond the default comes is reported to emerge that former

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<v Speaker 2>executives have been detained by Chinese authorities. Bloomberg's Leretti Chen

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<v Speaker 2>as more from Hong Kong.

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<v Speaker 8>The local media ties Sing, which is a reputable media

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<v Speaker 8>and mail in China, reported last night that the EXCFO

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<v Speaker 8>and CEO of Evergrand Group were detained by police. And

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<v Speaker 8>these are the people who used to be right hand

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<v Speaker 8>men of Qui ka Yin, the founder of Evergrant. So

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<v Speaker 8>this is quite significant in terms of the destiny of

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<v Speaker 8>this company.

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<v Speaker 1>You know, whether it's.

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<v Speaker 8>Going to finish all these unfinished projects while its chief

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<v Speaker 8>executives are detained.

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<v Speaker 2>Bloomberg's Loretta Chen says the detentions had another layer of

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<v Speaker 2>uncertainty to Evergrant's to debt restructuring plan.

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<v Speaker 3>We've got some legal news to get you caught up

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<v Speaker 3>on this morning. Karen, a top Apple executive, is set

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<v Speaker 3>to testify in Washington today at the Justice Department's antitrust

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<v Speaker 3>trial against Google. Eddie Q, Apple's services chief, plans to

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<v Speaker 3>defend the lucrative deal that made Google search Engine the

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<v Speaker 3>default option on the iPhone. Sources say Q plans to

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<v Speaker 3>say he's always believed Google makes the best search engine,

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<v Speaker 3>and that's why Apple uses it as the go to

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<v Speaker 3>option across its major devices. The government accuses Google of

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<v Speaker 3>using its dominance in search to hinder competition, and.

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<v Speaker 2>Nathan Bloomberg News has learned the Federal Communications Commission will

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<v Speaker 2>announce plans today to reinstate so called net neutrality rules

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<v Speaker 2>governing broadband providers. Rules barring broadband providers from unfairly interfering

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<v Speaker 2>with Internet traffic were gutted by the FCC under Republican

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<v Speaker 2>leadership during the Trump presidency. President Biden said he would

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<v Speaker 2>recommit the United States to the principles of an open Internet,

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<v Speaker 2>including net neutrality, and it's time now for a check

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<v Speaker 2>is some other stories makeing news around the world. For that,

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<v Speaker 2>we're joined by Bloomberg's Amy Morris. Amy, Good morning, Good.

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<v Speaker 4>Morning, Karen. President Biden calling on Congress to pass legislation

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<v Speaker 4>to fund the government and avoid a shut down by

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<v Speaker 4>the end of this week.

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<v Speaker 7>Funding the governments one of those basic fundamental response boers

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<v Speaker 7>for Congress and the Republic is in the House.

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<v Speaker 10>No start them on the job, just top collect.

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<v Speaker 4>Following a meeting with the President's Board of Advisors on HBCUs,

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<v Speaker 4>President Biden called on House Republicans to abide by the

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<v Speaker 4>bipartisan funding agreement that he negotiated with House Speaker Kevin

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<v Speaker 4>McCarthy back in May. House Republicans are preparing for a

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<v Speaker 4>hearing this week that would focus on President Biden and

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<v Speaker 4>legal questions about the involvement in his son Hunter's business affairs.

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<v Speaker 4>Bloomberg's Nancy Lyons has that story.

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<v Speaker 6>A spokesman for the House Oversight Committee says Thursday's hearing

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<v Speaker 6>will focus on quote the president's involvement in corruption and

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<v Speaker 6>abuse of public office end quote. Morning Consults Eli Yoakley

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<v Speaker 6>tells Bloomberg Sound On Democrats seem resigned to what they

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<v Speaker 6>call a political stunt.

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<v Speaker 7>A good number of Democrats think it's okay to open

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<v Speaker 7>this investigation. I think some of that might be just

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<v Speaker 7>do it to clear the air.

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<v Speaker 6>President Biden's team has tapped a bench of Democratic veterans

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<v Speaker 6>of Donald Trump's impeachments to expose what they say is

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<v Speaker 6>political disarray in the Republican Party in Washington. Nancy Lyons Bloomberg.

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<v Speaker 4>Radio Writers Guild of America leadership is set to vote

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<v Speaker 4>today on whether to approve a tentative deal to end

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<v Speaker 4>the writer's strike. Its negotiating committee reached the agreement with

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<v Speaker 4>Hollywood's Toop Studios over the weekend, suspending all picketing. If

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<v Speaker 4>the deal is agreed upon, it would then go to

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<v Speaker 4>the roughly eleven thousand WGA members for approval. The writers

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<v Speaker 4>walk out started more than one hundred and forty days ago,

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<v Speaker 4>bringing the film and TV industry to a halt. Louisiana

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<v Speaker 4>Governor John Bell Edwards is requesting a federal emergency declaration

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<v Speaker 4>from the Biden administration regarding as salt water intrusion at

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<v Speaker 4>the Lower Mississippi River. No officials are worried this would

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<v Speaker 4>impact the water supply in that region. The Army Corps

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<v Speaker 4>of Engineers is beginning work on a project this week

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<v Speaker 4>that they say will help, but they have to work quickly.

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<v Speaker 4>It is estimated that Gulf water could be making its

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<v Speaker 4>way into New Orleans water treatment plants by next month.

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<v Speaker 4>Global News twenty four hours a day, powered by more

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<v Speaker 4>than twenty seven hundred journalists and analysts in more than

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<v Speaker 4>one hundred twenty countries. I Mamy Morris Bloomberg, Karen.

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<v Speaker 2>Great Amy, thank you, and we bring you news throughout

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<v Speaker 2>the day here on Bloomberg radio. But now you can

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<v Speaker 2>get the latest news on demand whenever you want it.

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<v Speaker 2>at the click of a button. Get informed on your schedule.

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<v Speaker 2>You can listen and subscribe to Bloomberg News Now on

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<v Speaker 2>and anywhere else you get your podcasts. And it's time

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<v Speaker 2>now for the Bloomberg Sports Update, and for that we

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<v Speaker 2>bring in John stash Hour John Kem.

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<v Speaker 11>The Philadelphia Eagles began last season eight no ended up

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<v Speaker 11>playing in.

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<v Speaker 5>The Super Bowl.

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<v Speaker 11>They're off to a three and oh start this season.

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<v Speaker 11>Played Monday Night football at Tampa Bay.

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<v Speaker 12>Hurts of the Gun's time he steps up, he's looking

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<v Speaker 12>still looking, has time? Lets it go at it as

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<v Speaker 12>complete touchdown. I'll love kills you give Jaalen Hurts enough time,

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<v Speaker 12>Za Killa, Scott Open and Jalen two a thirty four yards.

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<v Speaker 11>Click WIP Radio in Philly the call. The Eagles beat

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<v Speaker 11>the Bucks twenty five to eleven. Hertz did have two interceptions,

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<v Speaker 11>but he had that touchdown pass plus a Seenie run

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<v Speaker 11>despite playing with flu like symptoms. The Bengals needed to

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<v Speaker 11>win they were zero and two, like they were last

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<v Speaker 11>year when they ended up in the ANC Championship game.

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<v Speaker 11>They avoid the zero to three start. They beat the

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<v Speaker 11>Rams in Cincinnati nineteen to sixteen. Injury news, Chargers receiver

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<v Speaker 11>Mike Williams out for the year, torn ACL Saints quarterback

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<v Speaker 11>Derek Carr week to week with a shoulder injury. They

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<v Speaker 11>have not ruled him out for playing this Sunday. The

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<v Speaker 11>Raiders quarterback Jimmy Garoppolo in concussion. Proto call Baseball Pennant

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<v Speaker 11>Race is a big win for the Astros five to

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<v Speaker 11>one at Seattle behind Justin Berlerander when eight in's allowed,

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<v Speaker 11>only three had struck out.

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<v Speaker 12>Eight.

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<v Speaker 11>Mariners are in that race for a wild card, but

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<v Speaker 11>they've lost four in a row. Texas right now looking

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<v Speaker 11>like the team that's gonna win the AL West. Six

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<v Speaker 11>straight win for the Rangers. They had four home runs

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<v Speaker 11>in a five to one victory over the U Angels.

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<v Speaker 11>John Stash I wear Bloomberg Sports.

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<v Speaker 13>From coast to coast, from New York to San Francisco,

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<v Speaker 13>Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg

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<v Speaker 13>Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

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<v Speaker 3>Good morning, I'm Nathan Hager with a couple of major

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<v Speaker 3>political stories to follow this morning. With just five days

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<v Speaker 3>till a possible government shut down, time is running out

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<v Speaker 3>for the House to cut a deal, but the Senate

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<v Speaker 3>may be making some progress of its own.

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<v Speaker 11>Meantime.

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<v Speaker 3>It is day twelve of the United Auto Workers' strike,

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<v Speaker 3>and today President Biden plans to make some history, becoming

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<v Speaker 3>apparently the first sitting president to join a picket line.

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<v Speaker 3>Let's get more on all these stories. We're joined now

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<v Speaker 3>by Bloomberg News Senior editor Bill Ferries. Bill, Good morning.

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<v Speaker 3>Let's start off with the possibility of a government shut

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<v Speaker 3>down here? What is going on in the Senate? We

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<v Speaker 3>focused so much on the infighting in the House. Is

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<v Speaker 3>their progress to report though? On the other side of

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<v Speaker 3>Capitol Hill.

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<v Speaker 14>Hi, Nathan, Thanks for having me. There is some signs

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<v Speaker 14>that Republican and Democratic negotiators up on the Senate side

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<v Speaker 14>are trying to find a way to compromise on a

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<v Speaker 14>measure that would keep the government open for four to

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<v Speaker 14>six weeks from that October first deadline. Is still a

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<v Speaker 14>lot of details to be worked out. We don't know

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<v Speaker 14>if things like Ukraine spending would be a part of that.

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<v Speaker 14>But if that can pass through the Senate, then it

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<v Speaker 14>puts House Speaker McCarthy in a bit of a bind

0:11:29.160 --> 0:11:31.840
<v Speaker 14>figuring out whether he holds a vote on that measure

0:11:32.280 --> 0:11:36.080
<v Speaker 14>with many of his hard right members still not happy

0:11:36.120 --> 0:11:38.880
<v Speaker 14>with any kind of an agreement that doesn't look at

0:11:39.600 --> 0:11:43.200
<v Speaker 14>more border funding and that doesn't look at cutting Ukraine funding.

0:11:44.200 --> 0:11:48.600
<v Speaker 3>What about Speaker McCarthy's own plan to avoid a government

0:11:48.679 --> 0:11:53.199
<v Speaker 3>shut down, the idea that he would cut domestic agencies

0:11:53.520 --> 0:11:56.080
<v Speaker 3>pretty drastically. Is that still on the table.

0:11:57.160 --> 0:11:59.880
<v Speaker 14>It doesn't look like that's gotten much traction. He's gotten

0:12:00.120 --> 0:12:03.480
<v Speaker 14>opposition from a lot of sides on that, and I think,

0:12:03.600 --> 0:12:06.120
<v Speaker 14>you know, we we also know there's some other efforts

0:12:06.120 --> 0:12:08.800
<v Speaker 14>in the House to try to find a way to

0:12:09.120 --> 0:12:12.480
<v Speaker 14>maybe quickly end a shut down if possible. I think

0:12:12.640 --> 0:12:15.400
<v Speaker 14>as this week progresses, it's you know, they're just the

0:12:15.440 --> 0:12:19.560
<v Speaker 14>members are just back today. They have you know, five

0:12:19.640 --> 0:12:22.959
<v Speaker 14>days heading into Saturday with this deadline. I think it's

0:12:23.080 --> 0:12:25.840
<v Speaker 14>very possible that every single day this week we're going

0:12:25.920 --> 0:12:28.160
<v Speaker 14>to hear about new efforts on one side or the

0:12:28.200 --> 0:12:31.600
<v Speaker 14>other to try to avoid this. As you know, Nathan

0:12:31.679 --> 0:12:34.760
<v Speaker 14>from covering this for so many years in Washington, these

0:12:34.800 --> 0:12:37.360
<v Speaker 14>talks will tend to go till the very last minute.

0:12:37.400 --> 0:12:40.720
<v Speaker 14>If there's time to use, it gets used. We could

0:12:40.800 --> 0:12:44.360
<v Speaker 14>very well be talking about a measure that keeps the

0:12:44.360 --> 0:12:47.800
<v Speaker 14>government open going, you know, getting voted on Friday or Saturday,

0:12:48.200 --> 0:12:52.360
<v Speaker 14>or talks continuing until that deadline, and then the shutdown begins.

0:12:52.679 --> 0:12:55.120
<v Speaker 3>While this talk is going on. We got the warning

0:12:55.240 --> 0:12:59.360
<v Speaker 3>yesterday from Moodi's, the last credit agency that still has

0:12:59.400 --> 0:13:03.040
<v Speaker 3>a high, the highest possible credit rating for the US,

0:13:03.160 --> 0:13:06.080
<v Speaker 3>warning that if there is a shutdown, it would erode

0:13:06.080 --> 0:13:09.400
<v Speaker 3>confidence in American governance. Is that the kind of thing

0:13:09.440 --> 0:13:12.200
<v Speaker 3>that gives lawmakers a kick in the pants to try

0:13:12.200 --> 0:13:13.560
<v Speaker 3>to get some kind of deal done.

0:13:14.440 --> 0:13:17.120
<v Speaker 14>You know, I think it's something a lot of lawmakers

0:13:17.160 --> 0:13:20.960
<v Speaker 14>on both sides would say they know is coming, and

0:13:21.000 --> 0:13:24.120
<v Speaker 14>it's not a huge surprise. I don't think that's going

0:13:24.160 --> 0:13:28.400
<v Speaker 14>to factor into the kind of core group of Republicans

0:13:28.440 --> 0:13:32.160
<v Speaker 14>who are really kind of holding Kevin McCarthy's feet to

0:13:32.200 --> 0:13:34.520
<v Speaker 14>the fire on this right now. I don't think that's

0:13:34.640 --> 0:13:37.199
<v Speaker 14>going to be something that persuades them or that causes

0:13:37.200 --> 0:13:40.320
<v Speaker 14>a breakthrough in the deal, unless possibly, as I think

0:13:40.360 --> 0:13:43.640
<v Speaker 14>we saw a little over a decade ago with a shutdown,

0:13:43.679 --> 0:13:47.559
<v Speaker 14>then you really see the financial markets reacting more strongly.

0:13:47.640 --> 0:13:49.760
<v Speaker 14>I think they're gonna I think markets have been taken

0:13:49.800 --> 0:13:52.360
<v Speaker 14>it a little bit in stride, but I think as

0:13:52.360 --> 0:13:56.120
<v Speaker 14>we get closer to Saturday, especially Friday, as markets close,

0:13:56.360 --> 0:13:59.199
<v Speaker 14>we're going to probably see more of a more volatile

0:13:59.240 --> 0:13:59.960
<v Speaker 14>action in the market.

0:14:00.520 --> 0:14:02.480
<v Speaker 3>In the time we have left, Bill, let's talk about

0:14:02.480 --> 0:14:06.200
<v Speaker 3>President Biden and his plan to join the picket line today.

0:14:06.520 --> 0:14:10.439
<v Speaker 3>This seems pretty unprecedented, even for a president who's called

0:14:10.520 --> 0:14:12.520
<v Speaker 3>himself the most pro union president ever.

0:14:13.480 --> 0:14:17.080
<v Speaker 14>That's right. I think it is unprecedented. We don't have

0:14:16.760 --> 0:14:19.560
<v Speaker 14>We've been looking trying to figure out when a sitting

0:14:19.640 --> 0:14:23.160
<v Speaker 14>president has ever joined a picket line, and I don't

0:14:23.160 --> 0:14:25.600
<v Speaker 14>think we've found an example of that. You've obviously had

0:14:25.720 --> 0:14:30.720
<v Speaker 14>very pro union presidents and particularly Democratic presidential candidates are

0:14:30.760 --> 0:14:34.320
<v Speaker 14>often out there with organized labor. But to have a

0:14:34.480 --> 0:14:37.920
<v Speaker 14>sitting president sit down really way in on one side

0:14:37.920 --> 0:14:41.000
<v Speaker 14>of that so strongly, that will be something that we

0:14:41.080 --> 0:14:45.280
<v Speaker 14>really haven't seen ever. And of course, on the other hand,

0:14:46.120 --> 0:14:49.160
<v Speaker 14>you have a former President Trump heading to meet many

0:14:49.200 --> 0:14:53.080
<v Speaker 14>of those striking auto workers the following day, so there's

0:14:53.120 --> 0:14:56.760
<v Speaker 14>this real duel for support among the striking autoworkers up

0:14:56.760 --> 0:15:01.000
<v Speaker 14>in Michigan, of course, a critical battleground state for any

0:15:01.040 --> 0:15:02.760
<v Speaker 14>candidate in twenty twenty four, in.

0:15:02.720 --> 0:15:05.640
<v Speaker 3>Just thirty seconds left interesting to see this happen as well,

0:15:05.720 --> 0:15:08.360
<v Speaker 3>when up to now the Biden administration has been pretty

0:15:08.360 --> 0:15:11.600
<v Speaker 3>hands off when it comes to the autoworker negotiations.

0:15:12.720 --> 0:15:15.400
<v Speaker 14>That's right, I think, you know, I listen, President Trump

0:15:15.400 --> 0:15:17.560
<v Speaker 14>has had support in the past with a lot of

0:15:17.760 --> 0:15:20.760
<v Speaker 14>working class voters in Michigan. I think there's some real

0:15:20.840 --> 0:15:24.920
<v Speaker 14>concern that his appearance could eat into President's support in

0:15:25.200 --> 0:15:27.640
<v Speaker 14>a critical state, and I think the President wants to

0:15:27.680 --> 0:15:32.080
<v Speaker 14>show his bonifides as a big supporter of the labor movement.

0:15:33.960 --> 0:15:36.880
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