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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we begin with the countdown to a government shut down.

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Speaker 3: With less than twenty four hours until the deadline, Congressional

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Speaker 3: leaders remain far apart. After meeting with President Donald Trump

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Speaker 3: at the White House. Democrats are calling for an extension

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Speaker 3: of healthcare subsidies and a stopgap spending bill, and to

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Speaker 3: reverse the Medicaid cuts that are in the President's tax law.

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Speaker 3: Vice President jd Vance says Democrats need to back down.

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Speaker 4: Let's do it in the context of an open government

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Speaker 4: that's providing essential services to the American people. That's all

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Speaker 4: that we're proposing to do, and the fact that they

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Speaker 4: refuse to do that shows how unreasonable their position is.

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Speaker 4: I think we're headed to a shutdown because the Democrats

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Speaker 4: won't do the.

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Speaker 3: Right thing, and like us, President jd Vance, Senate Minority

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Speaker 3: Leader Chuck Schumer's placing blame on the other party.

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Speaker 5: We laid out to the President some of the consequences

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Speaker 5: of what's happening in healthcare, and by his face and

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Speaker 5: by the way he looked I think he heard about

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Speaker 5: them for the first time, and so he seemed to

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Speaker 5: for the first time, understand the magnitude of this crisis.

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Speaker 5: And we hope he'll talk to the Republican leaders now.

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Speaker 3: Later on Capitol Hill, Senate Minority Leader Chuck Schumer suggested

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Speaker 3: Democrats could budge on some priorities, like extending.

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Speaker 6: Subsidies for Affordable Care Act.

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Speaker 3: Premiums and stopping the White House from using fast track

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Speaker 3: measures to send federal funds. But Schumer says Democrats won't

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Speaker 3: pass a stop gap without acting on Obamacare credits. He

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Speaker 3: says millions of Americans are about to get notices of

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Speaker 3: massive premium increases. Government funding without a deal is set

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Speaker 3: to expire at one minute after midnight tonight.

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Speaker 2: Well Nathan. Federal agencies are preparing for a possible government shutdown,

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Speaker 2: with detailed plans that call for temporary furloughs but not

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Speaker 2: permanent mass firings. The White House press departments to consider

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Speaker 2: mass layoffs and their contingency planning. At least eight cabinet

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Speaker 2: departments that represent more than two thirds of the federal

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Speaker 2: workforce are calling for more than four hundred thousand employees

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Speaker 2: to be sent home as non essential, but those plans

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Speaker 2: contain only one reference to permanent staff reductions and Karen.

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Speaker 3: As the President negotiates on a possible shutdown, he is

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Speaker 3: also focusing on a ceasefire between Israel and Hamas. Both

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Speaker 3: the President and Israeli Prime Minister Benjamin natanyahuo say they

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Speaker 3: have agreed to a twenty point plan to end the

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Speaker 3: war in Gaza.

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Speaker 6: Bloomberg's Amy Morris reports from Washington.

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Speaker 7: President Trump says his administration's twenty point plan will end

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Speaker 7: the war between Israel and Hamas in Gaza, and Israeli

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Speaker 7: Prime Minister Benjamin Natanyahu has already agreed to it.

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Speaker 8: You also want to thank Prime Minister Nataniell for agreeing

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Speaker 8: to the plan and for trusting that if we work together,

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Speaker 8: we can bring an end to the death and destruction

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Speaker 8: that we've seen for so many years, decades, even cinceuries.

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Speaker 7: Natagnyah, who says the deal will be done one way

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Speaker 7: or another.

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Speaker 9: This could be done the easy way, or it can

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Speaker 9: be done the hard way, but it will now.

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Speaker 7: If both parties accept this twenty point plan, it would

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Speaker 7: end the conflict immediately and all hostages, living and dead

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Speaker 7: will be returned. In Washington, Amy Morris Bloomberg Radio.

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Speaker 2: Amy Thank You. Also happening around the nation's capital, President

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Speaker 2: Trump and Defense Secretary Pete Haigseth will address US military

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Speaker 2: officials in person and a marine base in Quantago, Virginia today.

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Speaker 2: Last week, Heygseth's summon top military commanders around the world

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Speaker 2: to the base for the meeting. Bloomberg's Wendy Benjaminson says

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Speaker 2: security is top of mind.

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Speaker 10: The fact that hundreds of general officers, including one stars,

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Speaker 10: two stars, three stars, four stars, and there enlisted day's

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Speaker 10: were coming means that there was already security in place.

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Speaker 2: Bloomberg's Wendy Benjaminson and Washington. A Pentagon spokesman did not

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Speaker 2: provide a reason for the meeting or say what Hegseeth

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Speaker 2: plan to tell the high ranking officials.

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Speaker 3: We've got some developments in the trade front as well, Karen.

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Speaker 3: President Trump has ordered ten percent tariffs on imports of softwood, timber,

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Speaker 3: and lumber, and a twenty five percent duty on kitchen cabinets, vanities,

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Speaker 3: and the polstered furniture. We get more from Bloomberg's Bilage Pens.

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Speaker 11: We saw the same thing in the pharma industry, and

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Speaker 11: this follows an investigation by the US government into the

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Speaker 11: market conditions, which means that this is a sectoral tariff.

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Speaker 11: The country that is facing the biggest impact from this

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Speaker 11: is Canada, which accounts for a large majority of the

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Speaker 11: timber sales into the US.

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Speaker 3: Bloomberg's Bilage Pens adds the tariffs are set to go

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Speaker 3: into effect October fourteenth. Some increases are targeted for next year.

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Speaker 3: President Trump says the actions would shore up domestic manufacturing,

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Speaker 3: but homebuilders have warned they could also deter investments in

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Speaker 3: new houses and renovations.

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Speaker 2: Well, Nathan o'rally in US stocks risks losing steam due

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Speaker 2: to concerns about a looming US government shutdown, and we

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Speaker 2: turn to the markets now with Bloomberg's John Tucker.

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Speaker 6: John, good morning, Good morning Kary.

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Speaker 12: Yet, traders have been focused on the jobs reports scheduled

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Speaker 12: for Friday, but it may not happen and that is

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Speaker 12: clouding the picture for investors. Of labor Statistics is going

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Speaker 12: to delay the release of the scheduled Friday job support

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Speaker 12: and suspend all operations in the event of a shutdown.

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Speaker 12: Was according to a contingency plan published by the Department

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Speaker 12: of Labor. Next week's inflation data could follow also in

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Speaker 12: the driver's seat for investors FED policy, and that will

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Speaker 12: depend on the data. At a conference yesterday, Federal Reserve

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Speaker 12: Bank of Saint Louis president ALBERTA. Mussalom said policymakers can't

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Speaker 12: rush into anything.

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Speaker 3: I'm open minded to future potential reductions and interest rates.

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Speaker 12: I do believe we need to tread cautiously and doesn't

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Speaker 12: stop there of The uncertainty around trade policies also persists,

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Speaker 12: as President Trump did say he'd impose new terms through

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Speaker 12: a pair of the sweeping yet confusing plans in New

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Speaker 12: York Home John Tucker, Bloomberg Radio.

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Speaker 3: Okay, John, thank you. The Trump administration is ramping up

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Speaker 3: its fight with higher education. The Department of Health and

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Speaker 3: Human Services says it's referring Harvard University for administrative suspension

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Speaker 3: and debarment that would exclude the university from entering into

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Speaker 3: contracts with all government agencies or receiving any federal funding

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Speaker 3: that includes research grants and student aid. Several months ago,

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Speaker 3: HHS informed Harvard leaders that the university acted with deliberate

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Speaker 3: indifference toward allegations of campus anti semitism. Harvard now has

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Speaker 3: twenty days to request a hearing with an administrative law

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Speaker 3: judge at HHS to appeal the decision.

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Speaker 2: Nathan and Financial Services Jeffries posted its best fiscal third

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Speaker 2: quarter revenue ever, with total revenue jumping almost twenty two percent.

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Speaker 2: The firm said the last quarter was its best ever

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Speaker 2: for advisory revenue as deal activity picked up and market

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Speaker 2: conditions improved. Trading activity also came in higher than a

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Speaker 2: year ago. Jeffrey's CEO, Rich Handler says despite uncertainties, businesses

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Speaker 2: are forging ahead with the plans for initial public offerings

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Speaker 2: and mergers and acquisitions.

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Speaker 3: And finally, Karen Boeing has reportedly begun work on a

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Speaker 3: next generation single aisle aircraft that could eventually replace the

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Speaker 3: seven thirty seven Max. This is according to a Wall

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Speaker 3: Street Journal report that says the new model is in

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Speaker 3: its early stages and it comes a mid growing concern

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Speaker 3: about seven thirty seven Maxes safety.

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Speaker 2: Time now for a look at some of the other

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Speaker 2: stories making news in New York and around the world.

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Speaker 2: And for that we're joined by Bloomberg's Michael Barr.

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Speaker 6: Michael, Good morning, Good morning, Karen.

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Speaker 9: Authorities in Michigan say search crews did not find any

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Speaker 9: additional bodies inside a church of Jesus Christ of Latter

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Speaker 9: day Saints Chapel, where a marine veteran opened fire and

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Speaker 9: set the building a blaze, killing four people. Police had

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Speaker 9: fear that they would find more victims in the chart wreckage,

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Speaker 9: but now believe everyone is accounted for after Sunday's attack.

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Speaker 9: Michigan Governor Gretchen.

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Speaker 2: Whitmer, this might be a familiar pain, but it hurts

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Speaker 2: all the same every time.

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Speaker 6: We cannot keep living our lives like this.

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Speaker 9: Investigators are focusing on what motivated Thomas Said to ram

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Speaker 9: his pickup truck into the church in Grand Blank Township.

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Speaker 9: The suspect was also killed while exchanging gunfire with officers.

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Speaker 9: Eight other people were wounded and are expected to recover.

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Speaker 9: Charlie Javis was sentenced to eighty five months behind bars

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Speaker 9: for defrauding JP Morgan Chase in its one hundred and

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Speaker 9: seventy five million dollar acquisition of her student finance startup.

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Speaker 9: Frank Us District Judge Alvin Hellerstein ordered Javis to fourfeit

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Speaker 9: twenty two point four million dollars and to pay two

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Speaker 9: hundred and eighty seven point five million in restitution to

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Speaker 9: JP Morgan. In addition to her prison time, Javis was

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Speaker 9: convicted by a New York jury in March for lyne

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Speaker 9: and faking user data to mislead JP Morgan into believing

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Speaker 9: her site had more than four point twenty five million

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Speaker 9: users when it actually had fewer than three hundred thousand.

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Speaker 9: The site of armed camouflage and masked Border Patrol agents

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Speaker 9: making arrests near famous downtown Chicago landmarks has amplified concerns

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Speaker 9: about the Trump administration growing federal intervention across US cities.

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Speaker 9: Illinois leaders more on Monday of a National Guard deployment.

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Speaker 9: Governor Pritzker said he was alerted to federal officers using teargas,

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Speaker 9: pepper spray, rubber bullets, and flash bang devices on peaceful

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Speaker 9: protesters and journalists in the Chicago suburb of Broadview.

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Speaker 12: In any other country, if federal agents fired upon journalists

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Speaker 12: and protesters went unprovoked, what would we call it?

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Speaker 9: Memphis, Tennessee and Portland Morgan have also braced for a

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Speaker 9: surge of federal law enforcement. President Trump says it's necessary

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Speaker 9: blasting Democrats for crime and lacks immigration policies. Global news

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Speaker 9: twenty four hours a day and whenever you want it,

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Speaker 9: with the Bloomberg News. Now, I'm Michael Barrn. This is

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Speaker 9: Bloomberg Hearent.

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Speaker 2: Thanks Michael all time now for our Bloomberg Sports updating.

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Speaker 2: For that, we bring in John stash Hour.

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Speaker 6: Thanks Aaron Ray.

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Speaker 12: Four.

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Speaker 13: End of the Miami Dolphins getting their first win twenty

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Speaker 13: seven to twenty one over the still winless Jets, who

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Speaker 13: had thirteen penalties and three fumballs Denver and easy win

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Speaker 13: over Cincinnati twenty eight to three. Both teams are two

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Speaker 13: and two. The baseball postseason begins today with Detroit and Cleveland.

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Speaker 13: San Diego visits the Cubs. The Red Sox and Yankees

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Speaker 13: meet in New York. The Red sway of the Dodgers

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Speaker 13: in LA. The Minnesota Twins fired manager Rocco Baldelli. The

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Speaker 13: San Francisco Giants fired manager Bob Melvin. That's your Bloomberg

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Speaker 13: Sports update.

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Speaker 2: Stay with us. More from Bloomberg day Break coming up

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Speaker 2: after this.

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Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business opp This is Bloomberg Daybreak.

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Speaker 6: Good morning, I'm Nathan Hager.

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Speaker 3: With less than twenty four hours to go until the deadline.

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Speaker 3: The US government may be careening toward a shutdown. That

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Speaker 3: seems to be the way. Vice President JD. Van sees

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Speaker 3: a fiter to talks with Democrats at the White House.

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Speaker 3: Vance says, the Democrats need the budge on their healthcare demands.

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Speaker 13: You don't put a gun to.

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Speaker 3: The American people's head and say unless you do exactly

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Speaker 3: what Senator House.

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Speaker 4: Democrats want you to do, we're going to shut down

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Speaker 4: your government. That's exactly what they're proposing out there.

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Speaker 6: And that was Vice President JD. Vance at the White

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Speaker 6: House this morning.

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Speaker 3: We're joined by Bloomberg's Rosalind Matheson and roz I guess

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Speaker 3: it makes you wonder whether all those talks at the

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Speaker 3: White House, after they were delayed by the President for

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Speaker 3: several days, got us any closer to a resolution on

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Speaker 3: just how far apart these parties are right now.

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Speaker 6: Good morning, Good morning.

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Speaker 14: Well, as you say, after these talks yesterday, they do

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Speaker 14: still seem quite some way apart, and certainly there's a

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Speaker 14: lot of bluster going on. You just played the comments

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Speaker 14: from Vice President Jeddie Vance. You also had the Senate

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Speaker 14: Democratic Leader Chuck Schumer saying there are still large differences

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Speaker 14: between us and he was speaking after the meeting. Obviously,

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Speaker 14: the key part of this is the Democrats demands to

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Speaker 14: extend healthcare subsidies and also to reverse some of the

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Speaker 14: funding cuts to Medicaid that were included in Trump's big,

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Speaker 14: big tax bill that was passed earlier this year. So

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Speaker 14: the question is, at this stage, is there any room

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Speaker 14: for compromise and what might that look like. Will the

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Speaker 14: Democrats entertain a compromise because the White House is clearly

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Speaker 14: setting up a narrative that any shutdown and its resultant

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Speaker 14: impact is because the Democrats wouldn't budge. And even if

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Speaker 14: there is something, is it merely a stop gap? Are

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Speaker 14: you just agreeing to keep funding going for a week

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Speaker 14: or ten days while you try and get a deal done.

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Speaker 14: Is it simply pushing this down the road by whek

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Speaker 14: to try and create some space to negotiate. But it

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Speaker 14: does seem fundamentally there's still that disagreement, particularly around healthcare subsidies.

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Speaker 3: Now when it comes to the healthcare rise, are we

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Speaker 3: hearing any sort of wiggle room from the Democrats as

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Speaker 3: far as what aspects of the healthcare demands they're making

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Speaker 3: that they might be willing to put off until some

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Speaker 3: kind of stopgap is passed.

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Speaker 14: Well, there is some conversation around that, and there was

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Speaker 14: a suggestion at least again from the Democratic leader, that

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Speaker 14: they could settle for some of their priorities rather than

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Speaker 14: all of them. And the key one here, the red

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Speaker 14: line seems to be extending the subsidies for affordable care

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Speaker 14: at premiums and that seems to be the number one

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Speaker 14: And so can they have an agreement around that and

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Speaker 14: push some of the rest of it down the road,

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Speaker 14: or do they agree to extend those subsidies at least

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Speaker 14: for a certain period and then phase them out in

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Speaker 14: a more staggered fashion down the line. I mean, that

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Speaker 14: seems to be really the red line there that we're seeing.

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Speaker 14: I mean, also, we did have Jeddie Vance saying that

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Speaker 14: some of the Democratic positions Donald Trump thinks are reasonable

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Speaker 14: quote reasonable, and that may be addressing real health care

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Speaker 14: funding is one area from compromise. So there are some

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Speaker 14: little glimmers of hope there so far on that side,

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Speaker 14: but there's still, you know, fundamentally quite big differences going on.

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Speaker 9: Now.

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Speaker 3: We have had government shutdowns in the past. Who've seen them?

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Speaker 3: Heaven for you know, various lengths of time. But in

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Speaker 3: terms of what we could be looking at around economic impact,

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Speaker 3: the impact on the data, what are some of the

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Speaker 3: scenarios here.

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Speaker 14: Well, we know that it would delay some of the

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Speaker 14: key economic indicators, particularly again the employment report that's still

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Speaker 14: out on Friday. You also have the usual thing of

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Speaker 14: hundreds of thousands of federal workers being temporarily furloughed and others,

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Speaker 14: you know, work without pay because you do need to

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Speaker 14: keep certain services going, and the knock on effect of

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Speaker 14: that could be brief, or it could be protracted, you know,

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Speaker 14: shutdowns of those kind of cliff moments where people do

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Speaker 14: end up pending to negotiate.

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Speaker 6: So the question would be how long it went on for?

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Speaker 14: Is that as long as the pre be shut down,

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Speaker 14: which occurred of course in twenty eighteen, twenty nineteen, and

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Speaker 14: that's when funding lapsed for five weeks?

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Speaker 6: Is it as long as that do you see a bigger.

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Speaker 14: Impact on the economy and therefore on markets, But in

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Speaker 14: a way also for markets. A lot of the decision

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Speaker 14: making has coalesced around the White House and arguably less

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Speaker 14: so in Congress. Donald Trump uses a lot of executive

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Speaker 14: orders on things that impact the economy, including on the

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Speaker 14: trade side, in a way perhaps bypassing Congress, but obviously

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Speaker 14: some of the money that fans out into these programs

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Speaker 14: do go through a congressional route. So the impact on

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Speaker 14: the economy, it's a bit hard to say in advance. Again,

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Speaker 14: it depends primarily on just how long a shutdown would

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Speaker 14: go for.

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Speaker 3: All right, well, we know that it's not too long

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Speaker 3: until that deadline, so we'll continue to keep our eyes

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Speaker 3: on Washington.

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Speaker 6: Thank you for this.

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Speaker 3: That's Bloomberg's Rosalind matheson with us this morning. Now we

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Speaker 3: want to turn to the latest on the war in Gaza,

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Speaker 3: because we've had developments from Washington on that front as well.

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Speaker 3: Both President Trump and Israeli Prime Minister Benjamin Natanya, who

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Speaker 3: after a White House meeting say they have agreed to

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Speaker 3: a twenty point plan designed to end the war. Now,

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Speaker 3: the question, it seems, is will Hamas agreed to this

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Speaker 3: plan and for more on that, we're joined by Bloomberg

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Speaker 3: Horizons anchor Jumana Bursecci.

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Speaker 6: Jumana, thank you for being with us.

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Speaker 3: I mean that is an open question, isn't it, considering

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Speaker 3: that Hamas has walked away from previous peace plans.

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Speaker 6: In gossip.

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Speaker 15: Good morning, Yes, good morning to you. Yes, most definitely.

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Speaker 15: We are awaiting an official response from Hamas. One senior

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Speaker 15: representative from HAMAS spoke to Al Jazira channel last night

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Speaker 15: and said that they were reviewing the proposal, that they

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Speaker 15: had not been privy to it beforehand. But the question

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Speaker 15: does remain are they going to accept the terms of

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Speaker 15: the proposal, because this could be quite a watershed moment.

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Speaker 15: And I would say, you know, one of the key

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Speaker 15: characteristics that changes or that distinguishes yesterday's proposal from prior

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Speaker 15: proposals is it does have buy in from many regional allies.

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Speaker 15: Many Arab states have thrown their weight behind it, including

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Speaker 15: the likes of Qatar. A very important step was taken

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Speaker 15: prior to the release of this twenty point plan, whereby

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Speaker 15: the Israeli Prime Minister had a phone call with the

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Speaker 15: Katari PM, extended an olive branch and expressed regrets over

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Speaker 15: the attack that took place in Doha. And both sides

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Speaker 15: have now sort of pledged to push on with these

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Speaker 15: mediation efforts. And this morning you got a statement from

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Speaker 15: all Arab states in the region saying that they were

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Speaker 15: behind and putting their weight behind the proposal put forward

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Speaker 15: by the Trump administration. So that does signal that they,

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Speaker 15: in turn, perhaps will put pressure on Hamas to accept

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Speaker 15: the terms of this proposal. But of course it would

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Speaker 15: mean that Hamas would have no rule in no say

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Speaker 15: in future governance of Gaza, and also would lead to

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Speaker 15: their eventual disarmament. So we're waiting to hear from them.

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Speaker 15: They have seventy two hours to respond.

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Speaker 3: Now, that was a fundamental aspect of what Hamas has

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Speaker 3: rejected in the past, this idea that it would have

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Speaker 3: no role in a post war Gaza. I mean, how

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Speaker 3: much pressure can the Arab leaders put to bear on Hamas.

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Speaker 3: I mean, who's layer to negotiate given that attack that

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Speaker 3: happened recently on Hamas leaders in Doha.

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Speaker 15: Yeah, well, the attack on Hamas leaders actually was unsuccessful

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Speaker 15: in that it didn't manage to take out the senior

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Speaker 15: Hamas negotiators, so they're still operating. I will say that

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Speaker 15: one of the points of the plan includes an offer

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Speaker 15: of amnesty to any Hamas operative who hands over their

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Speaker 15: weapons and commits to coexistence. So that's an important line.

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Speaker 15: So we'll see whether that incentivizes them. Ultimately, we've been

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Speaker 15: here before, They've seen proposals like this in the past,

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Speaker 15: but I think the real difference this time around is

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Speaker 15: that you have Arab support behind it.

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Speaker 6: And if you look.

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Speaker 15: At the details of the proposal, you know there are

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Speaker 15: several paragraphs about what post Hamas Gaza governance will look like,

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Speaker 15: including an apolitical Palestinian committee that will set up there

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Speaker 15: will be oversight by what President Trump is calling a

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Speaker 15: transitional Board of Peace, chaired by none other than himself,

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Speaker 15: alongside the former UK Prime Minister Tony Blair and other

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Speaker 15: heads of state yet to be named. And then it

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Speaker 15: also talks about a security force that's going to be

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Speaker 15: established by Arab states, including the likes of Egypt and Kuttar,

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Speaker 15: who will take over some security operations within Gaza until

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Speaker 15: there is a credible Palestinian force that can do the same.

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Speaker 15: But ultimately there is also a line in this twenty

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Speaker 15: point proposal that is about this May, and the May

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Speaker 15: is important here, maybe paving a pathway towards an eventual

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Speaker 15: Palestinian states with the Big Caveat of Thats obviously not.

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Speaker 6: Being a part of it.

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Speaker 15: But then the Palestinian authority also having to reform itself,

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Speaker 15: which is one of the key parameters that is set

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Speaker 15: by the Israeli government.

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Speaker 3: Just thirty seconds left that language about a Palestinian state.

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Speaker 3: Could that comp things for Prime Minister NATANYAHUO and some

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Speaker 3: of the hardliners in his coalition.

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Speaker 15: Yes, absolutely, very important question, and that There's been a

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Speaker 15: lot of speculation about the wording behind it because it

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Speaker 15: says may not necessarily will and so there is some

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Speaker 15: obscurity in the phrasing. But I think it had to

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Speaker 15: be put in there because of some of the efforts

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Speaker 15: that are taking place behind the scene from the Arab

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Speaker 15: states and to put a line under the Katar attack.

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Speaker 15: This is something that the Gulf allies in the region

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Speaker 15: had been pushing for. They would not want to continue

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Speaker 15: with the discussions without some form of a promise or

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Speaker 15: a pathway towards eventual Palestinian statehood.

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