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: First, lawmakers in Washington may be inching closer to a
Speaker 3: deal to help avoid a government shutdown at the end
Speaker 3: of this week. We get the latest from Bloomberg's Amy
Speaker 3: Morris in the nation's capital.
Speaker 4: Sources tell Bloomberg the bipartisan Senate bill would extend funding
Speaker 4: for four to six weeks, shorter than what Democrats wanted,
Speaker 4: but could get it through the House. Once it passes
Speaker 4: the Senate, it goes to the House, where Speaker Kevin
Speaker 4: McCarthy will face a tough choice on whether to hold
Speaker 4: a vote at all. So far, McCarthy has not been
Speaker 4: able to muster enough Republican votes for a rival stopgap
Speaker 4: measure that would cut spending by twenty seven percent and
Speaker 4: change border policies. Now, if McCarthy does put this Senate
Speaker 4: bill up for a vote, Conservatives have threatened to try
Speaker 4: to oust him in Washington. I'm Amy Morris, Bloomberg Radio.
Speaker 2: All right, Amy, thanks Will. In addition to negotiations over
Speaker 2: a possible government shutdown, the autoworkers' strike is also making
Speaker 2: headlines this morning. President by and is stepping further into
Speaker 2: the dispute and a highly unusual move. And Bloomberg's Ed
Speaker 2: Baxter has the story.
Speaker 5: Biden travels to the Detroit area today to join workers
Speaker 5: on the UAW picket line. White House Folks Women Karine
Speaker 5: Jean Pierre he is.
Speaker 6: The most pro union president in modern.
Speaker 5: Times and says the message is clear.
Speaker 2: This is the president that's made very clear that he
Speaker 2: believes that corporate profits should lead to record UAWA record
Speaker 2: UAW contract.
Speaker 5: Now, Donald Trump visits Michigan on Wednesday as a two
Speaker 5: battle for the blue collar vote. I'm Ed Baxter, Bloomberg Radio.
Speaker 3: Okay, Ed, thank you. President Biden's decision to stand alongside
Speaker 3: United Auto Workers on the twelfth day of their strike
Speaker 3: appears to be historic. More on that from Bloomberg Auto
Speaker 3: reporter Oliver Crook.
Speaker 7: The question I think is does this help the union
Speaker 7: workers more or does this help Biden more?
Speaker 8: So?
Speaker 7: This is the first time over one hundred years that
Speaker 7: are sitting president hasn't done anything like this and really
Speaker 7: breaking with a historical president. And it comes at a
Speaker 7: time when the US are really showing the highest support
Speaker 7: for unions in about twenty five years. So politically for Biden,
Speaker 7: this is certainly an attractive thing. The risk for Biden
Speaker 7: is that if this goes on longer and longer and
Speaker 7: longer the economy starts to suffer, that this is going
Speaker 7: to be used as ammunition against him.
Speaker 3: Whom Bergato reporter Oliver Crook says the Biden administration has
Speaker 3: no formal role in the negotiations between the UAW and
Speaker 3: the automakers.
Speaker 2: Well, turning to the markets now, Nathan, the CEOs of
Speaker 2: two of Wall Street's biggest banks have been weighing in
Speaker 2: on growth and rates. Goldman SAX boss David Sulomon said
Speaker 2: he expects the FED to hike further and the economy
Speaker 2: to cool. Here's what he told the American Energy Security Summit.
Speaker 9: I think it's going to be hard to get inflation
Speaker 9: back to the target, and that probably means if inflation
Speaker 9: is sticky, we will see additional interest rate increases, and
Speaker 9: ultimately that probably does lead to a little bit more
Speaker 9: of a slowdown in the economy. Whether that's a recession
Speaker 9: or it's just a slow down, you know, it's hard
Speaker 9: to say, but it would be unprecedented to go through
Speaker 9: this type of a tightening cycle and not see us
Speaker 9: get to a little bit of slower economic growth and
Speaker 9: what we're seen right now.
Speaker 2: And the comments from solom Income as JP Morgan CEO
Speaker 2: Jamie diamond says he's not sure if the world is
Speaker 2: prepared for seven percent rates. Speaking to the Times of India,
Speaker 2: Diamonds said that going to that level would be much
Speaker 2: more painful than getting to five percent.
Speaker 3: On top FED officials. Also speaking about interest rates, Karen
Speaker 3: Minneapolis FED President Neil Kashkari says he expects the Central
Speaker 3: Bank will need to raise rates one more time this year.
Speaker 10: So the economy has continued to exceed expectations in its
Speaker 10: underlying resilience. So if the economy is fundamentally much stronger
Speaker 10: than we realized on a margin, that would tell me
Speaker 10: rate probably have to go a little bit higher and
Speaker 10: then be held higher for longer to cool things off.
Speaker 3: Minneapolis Fed President Neil Kashkari made those comments yesterday at
Speaker 3: the University of Pennsylvania's Wharton School.
Speaker 2: Well turning to Asia and Nathan the troubled that Chinese
Speaker 2: property developer Evergrand says its mainland unit has defaulted on
Speaker 2: a five hundred and forty seven million dollars on shore
Speaker 2: bond the default comes is reported to emerge that former
Speaker 2: executives have been detained by Chinese authorities. Bloomberg's Leretti Chen
Speaker 2: as more from Hong Kong.
Speaker 8: The local media ties Sing, which is a reputable media
Speaker 8: and mail in China, reported last night that the EXCFO
Speaker 8: and CEO of Evergrand Group were detained by police. And
Speaker 8: these are the people who used to be right hand
Speaker 8: men of Qui ka Yin, the founder of Evergrant. So
Speaker 8: this is quite significant in terms of the destiny of
Speaker 8: this company.
Speaker 1: You know, whether it's.
Speaker 8: Going to finish all these unfinished projects while its chief
Speaker 8: executives are detained.
Speaker 2: Bloomberg's Loretta Chen says the detentions had another layer of
Speaker 2: uncertainty to Evergrant's to debt restructuring plan.
Speaker 3: We've got some legal news to get you caught up
Speaker 3: on this morning. Karen, a top Apple executive, is set
Speaker 3: to testify in Washington today at the Justice Department's antitrust
Speaker 3: trial against Google. Eddie Q, Apple's services chief, plans to
Speaker 3: defend the lucrative deal that made Google search Engine the
Speaker 3: default option on the iPhone. Sources say Q plans to
Speaker 3: say he's always believed Google makes the best search engine,
Speaker 3: and that's why Apple uses it as the go to
Speaker 3: option across its major devices. The government accuses Google of
Speaker 3: using its dominance in search to hinder competition, and.
Speaker 2: Nathan Bloomberg News has learned the Federal Communications Commission will
Speaker 2: announce plans today to reinstate so called net neutrality rules
Speaker 2: governing broadband providers. Rules barring broadband providers from unfairly interfering
Speaker 2: with Internet traffic were gutted by the FCC under Republican
Speaker 2: leadership during the Trump presidency. President Biden said he would
Speaker 2: recommit the United States to the principles of an open Internet,
Speaker 2: including net neutrality, and it's time now for a check
Speaker 2: is some other stories makeing news around the world. For that,
Speaker 2: we're joined by Bloomberg's Amy Morris. Amy, Good morning, Good.
Speaker 4: Morning, Karen. President Biden calling on Congress to pass legislation
Speaker 4: to fund the government and avoid a shut down by
Speaker 4: the end of this week.
Speaker 7: Funding the governments one of those basic fundamental response boers
Speaker 7: for Congress and the Republic is in the House.
Speaker 10: No start them on the job, just top collect.
Speaker 4: Following a meeting with the President's Board of Advisors on HBCUs,
Speaker 4: President Biden called on House Republicans to abide by the
Speaker 4: bipartisan funding agreement that he negotiated with House Speaker Kevin
Speaker 4: McCarthy back in May. House Republicans are preparing for a
Speaker 4: hearing this week that would focus on President Biden and
Speaker 4: legal questions about the involvement in his son Hunter's business affairs.
Speaker 4: Bloomberg's Nancy Lyons has that story.
Speaker 6: A spokesman for the House Oversight Committee says Thursday's hearing
Speaker 6: will focus on quote the president's involvement in corruption and
Speaker 6: abuse of public office end quote. Morning Consults Eli Yoakley
Speaker 6: tells Bloomberg Sound On Democrats seem resigned to what they
Speaker 6: call a political stunt.
Speaker 7: A good number of Democrats think it's okay to open
Speaker 7: this investigation. I think some of that might be just
Speaker 7: do it to clear the air.
Speaker 6: President Biden's team has tapped a bench of Democratic veterans
Speaker 6: of Donald Trump's impeachments to expose what they say is
Speaker 6: political disarray in the Republican Party in Washington. Nancy Lyons Bloomberg.
Speaker 4: Radio Writers Guild of America leadership is set to vote
Speaker 4: today on whether to approve a tentative deal to end
Speaker 4: the writer's strike. Its negotiating committee reached the agreement with
Speaker 4: Hollywood's Toop Studios over the weekend, suspending all picketing. If
Speaker 4: the deal is agreed upon, it would then go to
Speaker 4: the roughly eleven thousand WGA members for approval. The writers
Speaker 4: walk out started more than one hundred and forty days ago,
Speaker 4: bringing the film and TV industry to a halt. Louisiana
Speaker 4: Governor John Bell Edwards is requesting a federal emergency declaration
Speaker 4: from the Biden administration regarding as salt water intrusion at
Speaker 4: the Lower Mississippi River. No officials are worried this would
Speaker 4: impact the water supply in that region. The Army Corps
Speaker 4: of Engineers is beginning work on a project this week
Speaker 4: that they say will help, but they have to work quickly.
Speaker 4: It is estimated that Gulf water could be making its
Speaker 4: way into New Orleans water treatment plants by next month.
Speaker 4: Global News twenty four hours a day, powered by more
Speaker 4: than twenty seven hundred journalists and analysts in more than
Speaker 4: one hundred twenty countries. I Mamy Morris Bloomberg, Karen.
Speaker 2: Great Amy, thank you, and we bring you news throughout
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Speaker 2: and anywhere else you get your podcasts. And it's time
Speaker 2: now for the Bloomberg Sports Update, and for that we
Speaker 2: bring in John stash Hour John Kem.
Speaker 11: The Philadelphia Eagles began last season eight no ended up
Speaker 11: playing in.
Speaker 5: The Super Bowl.
Speaker 11: They're off to a three and oh start this season.
Speaker 11: Played Monday Night football at Tampa Bay.
Speaker 12: Hurts of the Gun's time he steps up, he's looking
Speaker 12: still looking, has time? Lets it go at it as
Speaker 12: complete touchdown. I'll love kills you give Jaalen Hurts enough time,
Speaker 12: Za Killa, Scott Open and Jalen two a thirty four yards.
Speaker 11: Click WIP Radio in Philly the call. The Eagles beat
Speaker 11: the Bucks twenty five to eleven. Hertz did have two interceptions,
Speaker 11: but he had that touchdown pass plus a Seenie run
Speaker 11: despite playing with flu like symptoms. The Bengals needed to
Speaker 11: win they were zero and two, like they were last
Speaker 11: year when they ended up in the ANC Championship game.
Speaker 11: They avoid the zero to three start. They beat the
Speaker 11: Rams in Cincinnati nineteen to sixteen. Injury news, Chargers receiver
Speaker 11: Mike Williams out for the year, torn ACL Saints quarterback
Speaker 11: Derek Carr week to week with a shoulder injury. They
Speaker 11: have not ruled him out for playing this Sunday. The
Speaker 11: Raiders quarterback Jimmy Garoppolo in concussion. Proto call Baseball Pennant
Speaker 11: Race is a big win for the Astros five to
Speaker 11: one at Seattle behind Justin Berlerander when eight in's allowed,
Speaker 11: only three had struck out.
Speaker 12: Eight.
Speaker 11: Mariners are in that race for a wild card, but
Speaker 11: they've lost four in a row. Texas right now looking
Speaker 11: like the team that's gonna win the AL West. Six
Speaker 11: straight win for the Rangers. They had four home runs
Speaker 11: in a five to one victory over the U Angels.
Speaker 11: John Stash I wear Bloomberg Sports.
Speaker 13: From coast to coast, from New York to San Francisco,
Speaker 13: Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg
Speaker 13: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan Hager with a couple of major
Speaker 3: political stories to follow this morning. With just five days
Speaker 3: till a possible government shut down, time is running out
Speaker 3: for the House to cut a deal, but the Senate
Speaker 3: may be making some progress of its own.
Speaker 11: Meantime.
Speaker 3: It is day twelve of the United Auto Workers' strike,
Speaker 3: and today President Biden plans to make some history, becoming
Speaker 3: apparently the first sitting president to join a picket line.
Speaker 3: Let's get more on all these stories. We're joined now
Speaker 3: by Bloomberg News Senior editor Bill Ferries. Bill, Good morning.
Speaker 3: Let's start off with the possibility of a government shut
Speaker 3: down here? What is going on in the Senate? We
Speaker 3: focused so much on the infighting in the House. Is
Speaker 3: their progress to report though? On the other side of
Speaker 3: Capitol Hill.
Speaker 14: Hi, Nathan, Thanks for having me. There is some signs
Speaker 14: that Republican and Democratic negotiators up on the Senate side
Speaker 14: are trying to find a way to compromise on a
Speaker 14: measure that would keep the government open for four to
Speaker 14: six weeks from that October first deadline. Is still a
Speaker 14: lot of details to be worked out. We don't know
Speaker 14: if things like Ukraine spending would be a part of that.
Speaker 14: But if that can pass through the Senate, then it
Speaker 14: puts House Speaker McCarthy in a bit of a bind
Speaker 14: figuring out whether he holds a vote on that measure
Speaker 14: with many of his hard right members still not happy
Speaker 14: with any kind of an agreement that doesn't look at
Speaker 14: more border funding and that doesn't look at cutting Ukraine funding.
Speaker 3: What about Speaker McCarthy's own plan to avoid a government
Speaker 3: shut down, the idea that he would cut domestic agencies
Speaker 3: pretty drastically. Is that still on the table.
Speaker 14: It doesn't look like that's gotten much traction. He's gotten
Speaker 14: opposition from a lot of sides on that, and I think,
Speaker 14: you know, we we also know there's some other efforts
Speaker 14: in the House to try to find a way to
Speaker 14: maybe quickly end a shut down if possible. I think
Speaker 14: as this week progresses, it's you know, they're just the
Speaker 14: members are just back today. They have you know, five
Speaker 14: days heading into Saturday with this deadline. I think it's
Speaker 14: very possible that every single day this week we're going
Speaker 14: to hear about new efforts on one side or the
Speaker 14: other to try to avoid this. As you know, Nathan
Speaker 14: from covering this for so many years in Washington, these
Speaker 14: talks will tend to go till the very last minute.
Speaker 14: If there's time to use, it gets used. We could
Speaker 14: very well be talking about a measure that keeps the
Speaker 14: government open going, you know, getting voted on Friday or Saturday,
Speaker 14: or talks continuing until that deadline, and then the shutdown begins.
Speaker 3: While this talk is going on. We got the warning
Speaker 3: yesterday from Moodi's, the last credit agency that still has
Speaker 3: a high, the highest possible credit rating for the US,
Speaker 3: warning that if there is a shutdown, it would erode
Speaker 3: confidence in American governance. Is that the kind of thing
Speaker 3: that gives lawmakers a kick in the pants to try
Speaker 3: to get some kind of deal done.
Speaker 14: You know, I think it's something a lot of lawmakers
Speaker 14: on both sides would say they know is coming, and
Speaker 14: it's not a huge surprise. I don't think that's going
Speaker 14: to factor into the kind of core group of Republicans
Speaker 14: who are really kind of holding Kevin McCarthy's feet to
Speaker 14: the fire on this right now. I don't think that's
Speaker 14: going to be something that persuades them or that causes
Speaker 14: a breakthrough in the deal, unless possibly, as I think
Speaker 14: we saw a little over a decade ago with a shutdown,
Speaker 14: then you really see the financial markets reacting more strongly.
Speaker 14: I think they're gonna I think markets have been taken
Speaker 14: it a little bit in stride, but I think as
Speaker 14: we get closer to Saturday, especially Friday, as markets close,
Speaker 14: we're going to probably see more of a more volatile
Speaker 14: action in the market.
Speaker 3: In the time we have left, Bill, let's talk about
Speaker 3: President Biden and his plan to join the picket line today.
Speaker 3: This seems pretty unprecedented, even for a president who's called
Speaker 3: himself the most pro union president ever.
Speaker 14: That's right. I think it is unprecedented. We don't have
Speaker 14: We've been looking trying to figure out when a sitting
Speaker 14: president has ever joined a picket line, and I don't
Speaker 14: think we've found an example of that. You've obviously had
Speaker 14: very pro union presidents and particularly Democratic presidential candidates are
Speaker 14: often out there with organized labor. But to have a
Speaker 14: sitting president sit down really way in on one side
Speaker 14: of that so strongly, that will be something that we
Speaker 14: really haven't seen ever. And of course, on the other hand,
Speaker 14: you have a former President Trump heading to meet many
Speaker 14: of those striking auto workers the following day, so there's
Speaker 14: this real duel for support among the striking autoworkers up
Speaker 14: in Michigan, of course, a critical battleground state for any
Speaker 14: candidate in twenty twenty four, in.
Speaker 3: Just thirty seconds left interesting to see this happen as well,
Speaker 3: when up to now the Biden administration has been pretty
Speaker 3: hands off when it comes to the autoworker negotiations.
Speaker 14: That's right, I think, you know, I listen, President Trump
Speaker 14: has had support in the past with a lot of
Speaker 14: working class voters in Michigan. I think there's some real
Speaker 14: concern that his appearance could eat into President's support in
Speaker 14: a critical state, and I think the President wants to
Speaker 14: show his bonifides as a big supporter of the labor movement.
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