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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 latest on the government shutdown.

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Speaker 3: It is now having an impact in the air. This week,

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Speaker 3: the Transportation Department said it would cut ten percent of

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Speaker 3: flight capacity across forty major airports to ease the strain

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Speaker 3: on the travel system. As of this morning, about seven

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Speaker 3: hundred flights are already canceled at the four biggest airlines,

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Speaker 3: United American, Delta, and Southwest. Republican Senator Mike rown says

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Speaker 3: it doesn't have to be this way.

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Speaker 4: This is serious. It's one more step in the wrong

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Speaker 4: direction for us. The American people expect us to have

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Speaker 4: the aircraft run on time, they expect the trains to

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Speaker 4: run on time. They expect us to actually have government operating.

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Speaker 3: Republican Senator Mike Rounds appeared on Bloomberg's Balance of Power.

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Speaker 3: You can get the full conversation on the Bloomberg podcast

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Speaker 3: as channel on YouTube. The top democrat on the House

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Speaker 3: Transportation Committee, Rick Larson, is calling on the FA to

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Speaker 3: share its risk assessment to ensure the flight cuts aren't

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Speaker 3: politically motivated.

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Speaker 2: Well, another major story that we're following Nathan involves Elon Musk.

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Speaker 2: Tesla's shareholders have approved as one trillion dollar compensation package,

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Speaker 2: and again more from Bloomberg Transportation reporter Danny Lee.

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Speaker 5: This ultimately means that shareholders have given Elon Musk and

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Speaker 5: Tesla their full backing for Musk to do whatever he

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Speaker 5: needs to do to drive the company forward. And of

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Speaker 5: course we are seeing this transition of Tesla from just

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Speaker 5: an EV maker to one that Musk wants to take

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Speaker 5: it into robotics, to artificial intelligence and driverless a driverless future.

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Speaker 5: So there's a lot of stake here, and of course

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Speaker 5: for Musk, he doesn't automatically get this trillion dollars. He

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Speaker 5: has a series of very lofty goals and hurdles he

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Speaker 5: needs to pass financially in terms of evaluation of and

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Speaker 5: also operationally in delivering, for example, twenty million vehicles and

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Speaker 5: selling a million robots and driverless cars in order to

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Speaker 5: hit some of these extremely stretched goals.

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Speaker 2: And Bloomberg Transportation reporter Danny Lee says this is the

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Speaker 2: largest payout ever awarded to a corporate leader, and shares

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Speaker 2: of Tesla up about one percent this morning, and.

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Speaker 3: We're also watching shares of Nvidia this morning care and

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Speaker 3: they're up to tenths percent after yesterday's three point seven

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Speaker 3: percent sell off. This morning, in Vidia CEO Jensen Wang

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Speaker 3: says his company has no plans to ship its Blackwell

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Speaker 3: AI chips to China. Huang is in Taiwan this morning.

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Speaker 3: He says it's up to China when they would like

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Speaker 3: in Vidia products to go back to serve their market. Meanwhile,

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Speaker 3: The Information is reporting that the White House has told

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Speaker 3: others in the federal government it will not allow in

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Speaker 3: Nvidia to sell its latest scaled down AI chips to

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Speaker 3: China either.

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Speaker 2: Well, Nathan exports from China unexpectedly dropped in October for

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Speaker 2: the first time in eight months. They contracted by one

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Speaker 2: point one percent in October for a year earlier. Global

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Speaker 2: demand failed to offset a slump, and shipments to the

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Speaker 2: US begin. More from Bloomberg News Chief Asia correspondent Rosalind Madison.

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Speaker 6: Well, there's likely to be quite a lot of volatility

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Speaker 6: still going forward. I mean, we've had quite a bit

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Speaker 6: of front loading that went on which really propelled experts

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Speaker 6: from China through most of this year. Even though we

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Speaker 6: do have a truce in trade. We've got big questions

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Speaker 6: about whether Donald Trump's tariff stay at all. So for

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Speaker 6: a lot of companies and countries, still a fair bit

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Speaker 6: of uncertainty, including for China, about what the next six

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Speaker 6: months are going to look like.

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Speaker 2: And Bloomberg's and Ros Madison says shipments to all nations

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Speaker 2: except the US rose three point one percent. That was

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Speaker 2: not enough to compensate for the more than twenty five

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Speaker 2: percent decline to America.

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Speaker 3: Well Kry, the makers of blockbuster weight loss drugs, have

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Speaker 3: secured a big deal at the White House. Eli Lilly

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Speaker 3: and Nova Nordisk have agreed to slash the prices on

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Speaker 3: their popular zep Bound and Wagovi shots in exchange for

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Speaker 3: terror relief and wider access to medicare as. They're live

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Speaker 3: here on Bloomberg Radio. President Trump made the announcement in

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Speaker 3: the Oval Office.

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Speaker 7: For years, politicians have talked about making healthcare affordable, but

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Speaker 7: my administration is actually doing it. Americans deserve the best

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Speaker 7: healthcare in the world, and we're now getting the best

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Speaker 7: healthcare at the.

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Speaker 3: Lowest price and under the deal with President Trump. The

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Speaker 3: prices of with GOVI and zep bound under Medicare will

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Speaker 3: be two hundred and forty five dollars a month the

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Speaker 3: drugs currently listed more than one thousand. In return, Lillian

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Speaker 3: Novo get a three year grace period from upcoming tariffs

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Speaker 3: on pharmaceutical companies that don't manufacture in the US. We

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Speaker 3: spoke with Novia Nordisk's CEO, Mike Doustarr.

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Speaker 8: We are more.

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Speaker 9: American than many companies that were born in USA. And

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Speaker 9: the reason I say that is that long before many

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Speaker 9: American companies started to think of developing and producing their

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Speaker 9: raw ingredient in US, we were there doing that.

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Speaker 3: Novin Nordisks Mike Dustar, the Danish drugmaker, has pledged billions

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Speaker 3: in US investment in putting a four point one billion

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Speaker 3: dollar factory expansion that began last year in North Carolina.

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Speaker 2: Well, we turned to the markets now, Nathan, where futures

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Speaker 2: are higher. After another selloff on Wall Street, the S

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Speaker 2: and P five hundred has dropped more than one percent

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Speaker 2: twice this week as some of big taxs AI spending

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Speaker 2: as spook some investors. David Bianco, as chief investment officer

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Speaker 2: at DWS Group, the.

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Speaker 10: Valuations are very demanding, yet we understand why and we're

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Speaker 10: taking a constructive view on tech and communications and all that,

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Speaker 10: but our preferences are our financials, healthcare and electric utilities

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Speaker 10: because power is still a really important part of the

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Speaker 10: AI story.

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Speaker 2: DWS Group's David Bianco the S and P five hundred

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Speaker 2: is at fourteen percent so far this year, while the

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Speaker 2: Nasdaq is higher by nineteen percent.

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Speaker 3: In Europe, care and shares of the owner of British

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Speaker 3: Airways are flying lower. IAG says it's all important North

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Speaker 3: Atlantic route experienced some weakness in the third quarter and

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Speaker 3: that weighed on earnings that missed estimates. The results have

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Speaker 3: led the stock to drop the most since April. This morning,

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Speaker 3: IAG is down almost seven percent.

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Speaker 2: Nathan Comcast, owner of the European pay television service skyes

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Speaker 2: and talks to buy ITV's Media on Entertainment unit in

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Speaker 2: a deal that would dramatically shake up the UK broadcasting landscape.

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Speaker 2: The business to be acquired runs ITV's commercial free to

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Speaker 2: air TV channel operations in the UK, as well as

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Speaker 2: the ITVX streaming platform. If a deal goes ahead, it

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Speaker 2: would leave ITV with its Studios division, which produces shows

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Speaker 2: such as Britain's Got Talent and Love Island.

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Speaker 3: Well Karen, Apple's streaming service suffered an outage on the

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Speaker 3: premiere of its new series Pluribus. Users across the US

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Speaker 3: and Canada reported the service crashing from around ten thirty

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Speaker 3: Eastern last night, not long after the first two episodes

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Speaker 3: of the new drama were made available to stream. Apple

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Speaker 3: says the matter was resolved within about an hour and

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Speaker 3: a half.

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Speaker 2: Well, Nathan, what is the best city in the world

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Speaker 2: for the global elite? The answer there would be Dubai.

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Speaker 2: According to research by real estate Brooker Sevill's, which ranked

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Speaker 2: thirty global cities by their appeal to high net worth individuals,

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Speaker 2: Dubai was ranked as the most accommodating location for the

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Speaker 2: world's rich due to its tax advantages and strong family infrastructure.

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Speaker 2: New York, Singapore, Hong Kong, and Abu Dhabi round out

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Speaker 2: the top five. Time now for a look at some

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Speaker 2: of the other stories making news in New York and

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Speaker 2: around the world, and for that we're joined by Bloomberg's

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Speaker 2: Monica Ricks. Monica, Good morning, Good morning, Karen.

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Speaker 11: A federal judge has ordered the Trump administration to find

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Speaker 11: the money to fully fund snap benefits for November. The

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Speaker 11: Trump administration has agreed to pay partial benefits this month

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Speaker 11: when judges ruled that it had to use emergency funds,

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Speaker 11: but it's now appealing that ruling to pay one hundred percent.

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Speaker 11: The Supreme Court has temporarily revived the Trump administration policy

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Speaker 11: requiring new passports to reflect a person's sex on their

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Speaker 11: birth certificate. Bloomberg's Amy Morris has more from Washington.

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Speaker 8: A divided Supreme Court dealt a fresh blow to transgender rights,

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Speaker 8: temporarily requiring new passports to reflect the sex and the

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Speaker 8: holder's birth certificate. The court's majority wrote that displaying passport

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Speaker 8: holders sex at birth does not offend equal protection principles,

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Speaker 8: just as Katanji Brown Jackson dissented, writing that the decision

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Speaker 8: would force transgender Americans to make a difficult choice between

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Speaker 8: using the wrong gender on their passports and risking harassment

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Speaker 8: or avoiding activities that require a passport. The Supreme Court

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Speaker 8: decision will apply while litigation continues in this case in Washington.

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Speaker 8: Amy Morris Bloomberg Radio.

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Speaker 11: South Korea's military confirms North Korea has fired a short

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Speaker 11: range ballistic missile off its east coast. That launch follows

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Speaker 11: new US impost sanctions on some of North Korea's bankers,

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Speaker 11: which Pyongyang has condemned as proof of Washington's hostility. In Louisville, Kentucky,

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Speaker 11: a vigil was held last night to remember the thirteen

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Speaker 11: people killed in a UPS cargo plane crash this week.

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Speaker 11: Louisville Mayor Mike Greenberg call the scene horrific.

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Speaker 12: We saw the firefighters walking towards bodies that were still

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Speaker 12: on the ground with the stretchers.

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Speaker 8: It was too painful for me to watch. That was

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Speaker 8: the moment that I had to turn away.

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Speaker 11: Investigators still don't know what caused that crash, and Texas

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Speaker 11: Attorney General Ken Paxson has now asked the federal judge

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Speaker 11: for a restraining order against Tayland Hall to stop advertising that.

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Speaker 11: In consultation with the doctor tailand All's safe for pregnant

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Speaker 11: women and young children to use. The Trump administration has

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Speaker 11: claimed it can cause autism and other disorders. The drug

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Speaker 11: makers denied it. Global News twenty four hours a day

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Speaker 11: and whenever you want it with Bloomberg News Now, I'm

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Speaker 11: Monica Rix and this is Bloomberg Karen.

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Speaker 2: Thanks Monica. Time now for our Bloomberg Sports update, and

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Speaker 2: for that we bring in John stash Hour.

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Speaker 12: Thanks down a defensive battle, but again week Ken in

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Speaker 12: the NFL, ain't Denver. The Broncos didn't get a first

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Speaker 12: down for the first twenty four minutes. They didn't get

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Speaker 12: a touchdown till late second quarter. They added a field

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Speaker 12: goal late third, and they beat the Raiders ten to seven,

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Speaker 12: and Denver at eight and two as the best record

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Speaker 12: in the NFL, Broncos have won seven straight. They're five

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Speaker 12: and zero at home. Forty one year old Craig Stammen

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Speaker 12: named the new manager of the San Diego Padres, is

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Speaker 12: a former Padres relief pitcher. The Dodgers picked up the

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Speaker 12: ten million dollar option for Max Munsey. That's your Bloomberg

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Speaker 12: 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 8: Good morning. I'm Nathan Hager.

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Speaker 3: He's already the world's richest man, and if he plays

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Speaker 3: his cards right, he could be the world's first trillionaire.

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Speaker 3: Tesla shareholders have overwhelmingly approved a twelve figure pay package

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Speaker 3: for the electric vehicles CEO Elon Musk, But for our

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Speaker 3: convested CEO, Kathy Wood, it's not just about the evs.

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Speaker 7: We think robotaxis.

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Speaker 2: He had them at the starting gate as of June

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Speaker 2: and now they're rolling out and that AI project is

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Speaker 2: well underway.

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Speaker 3: That was our co invest CEO and Tesla investor Kathy

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Speaker 3: what ahead of the vote at Tesla's annual meeting and

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Speaker 3: joining us for more as Bloomberg News Global Autos editor

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Speaker 3: Craig Trudell. And Craig really is in a lot of

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Speaker 3: ways about the autonomous robotics vision more than the electric vehicles.

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Speaker 3: So do we have to start thinking about this company

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Speaker 3: is more than just an EV maker?

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Speaker 8: Good morning, Yeah, good morning.

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Speaker 13: I think that at least is the narrative Musk wants

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Speaker 13: out there, and this has been a trend for some

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Speaker 13: time where he's been talking more and more about his

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Speaker 13: humanoid robots as opposed to his cars. You know, I

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Speaker 13: think that the cynic would say that that would probably

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Speaker 13: be explained by the fact that the car business has

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Speaker 13: been slowing down Bertie dramatically for the company for some

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Speaker 13: time now. But you know, in addition to talking up

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Speaker 13: the prospects for robots last night. He also talked about

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Speaker 13: expanding production of Tesla's vehicles next year, including with the

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Speaker 13: cyber Cab, and interestingly, just last week we spoke with

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Speaker 13: the chair of the board, Robin Denholm, about the notion

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Speaker 13: that while the cyber Cab was designed without pedals or

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Speaker 13: a steering wheel, you know that the company has maybe

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Speaker 13: some flexibility and some willingness to in the event that

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Speaker 13: regulators say, you know what, we're just not ready for

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Speaker 13: you to put fully autonomous vehicles on the road. Yet

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Speaker 13: she told us that they would be willing to put

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Speaker 13: you know, steering wheel and pedals in those cars in

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Speaker 13: order to be able to sell them.

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Speaker 3: So Craig walk us through some of these benchmarks that

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Speaker 3: Elon Musk has to achieve in order to get to

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Speaker 3: that trillion dollar level. What's it going to take and

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Speaker 3: how high is the bar? Yeah, the bar is very

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Speaker 3: high to hit, you know, to get the full payout.

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Speaker 3: You know, the the market cap of the company today

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Speaker 3: is around one and a half trillion dollars. He would

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Speaker 3: need to take it to eight and a half trillion

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Speaker 3: to get the full you know slug of shares that

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Speaker 3: this pay package includes. But in addition, to that, he

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Speaker 3: needs to achieve a series of performance milestones that are

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Speaker 3: more operational. So you know, some are on the sort

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Speaker 3: of easier side in terms of, you know, twenty million

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Speaker 3: vehicles on the road. That sounds like a lot, but

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Speaker 3: it's cumulative, and this is a pay package that he's

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Speaker 3: eligible to receive over the next decade. The other sort

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Speaker 3: of you know, operational targets include adjusted EBIT dial the

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Speaker 3: way up to four hundred billion, and this is a

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Speaker 3: company that you know is on course for give or

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Speaker 3: take about thirteen billion and adjusted EBIT doll this year.

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Speaker 3: So we're talking many multiples of what the company is

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Speaker 3: earning here and now got about a minute left. Craig

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Speaker 3: Elon Musk has won past compensation fights. The company says

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Speaker 3: more than seventy five percent of votes cast went his way.

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Speaker 3: Should we be surprised by that margin?

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Speaker 13: I wasn't surprised. I think, you know, there were some

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Speaker 13: major institutional shareholders who have balked at these pay packages

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Speaker 13: in the past, but the retail shareholder base, for tests

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Speaker 13: is extremely, extremely loyal to Musk, and I think an

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Speaker 13: important little bit of context here too is that Musk

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Speaker 13: and his brother Kimball's shares counted toward that seventy five percent.

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Speaker 13: And so you know, when you consider the fairly substantial

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Speaker 13: stake that Musk already has, you know, the sort of

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Speaker 13: bar for him to clear fifty percent, you know, was

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Speaker 13: not necessarily all that high.

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