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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Good morning, I'm Nathan

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Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're

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Speaker 1: following today.

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Speaker 2: Boeing shares are lower by four percent with labor unrest

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Speaker 2: for the planemaker. For the first time in sixteen years,

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Speaker 2: factory workers at Boeing have walked off the job. Members

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Speaker 2: of the International Association Machinists and Aerospace Workers, which represents

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Speaker 2: straw three thousand Boeing employees across the West Coast, have

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Speaker 2: voted overwhelmingly to do what you just heard, to strike.

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Speaker 2: Bloomberg Aviation reporter Danny Lee says those members ignored a

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Speaker 2: plea for peace by new Boeing chief executive officer Calle Ortberg.

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Speaker 3: This is a new low for buying, considering all the

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Speaker 3: things I've happened to it over the past several months,

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Speaker 3: and the fact that Kelly Opberg was brought in to

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Speaker 3: fix all the shoes that are piling up for Boeing.

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Speaker 3: This is going to be a true test of his resolve,

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Speaker 3: his ability to show that for the board who hide him,

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Speaker 3: how quickly he can fix things. Because he had a

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Speaker 3: strong track record at his previous company, So what can

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Speaker 3: he do to perhaps personally intervene and knock some sense

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Speaker 3: into the previous negotiating talks to see what more can

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Speaker 3: Boeing off of. Frankly, the twenty five percent over four

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Speaker 3: years clearly not enough for the work is particularly the

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Speaker 3: fact that the annual bonus was being taken away.

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Speaker 2: Bloomberg Aviation reporter Danny lie says ninety six percent of

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Speaker 2: union members supported the strike. Boeing shares, as I said,

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Speaker 2: are down nearly four percent this morning.

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Speaker 1: Well, Nathan, We're also focusing on the FED this morning

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Speaker 1: ahead of next week's rate decision. Former Bank of New

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Speaker 1: York FED president Bill Dudley says their scope for a

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Speaker 1: half point rate cut. Speaking at a forum organized by

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Speaker 1: the Bretton Woods Committee in Singapore, the Bloomberg Opinion columnists

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Speaker 1: suggested this slowing jobs market is now a more serious

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Speaker 1: concern than inflation. However, Mohammad Alarian, Queen's College Cambridge president

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Speaker 1: and also a Bloomberg Opinion columnist, is expecting a quarter

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Speaker 1: point cut.

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Speaker 4: We won't get dramatic series of fifties, but we will

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Speaker 4: be measured for the wrong reason. Will be measured because

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Speaker 4: the FED will remain over reactive, meaning it will be

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Speaker 4: two data dependent. I think the key issue about Greenspan,

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Speaker 4: Bernanke and Yellen when they were willing to lean forward

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Speaker 4: and take a view of the economy. Chair Powell is

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Speaker 4: not there yet.

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Speaker 1: And Mohammed Larian speaking of the Bloomberg's Tom Keen and

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Speaker 1: Paul Sweeney yesterday, the Fed decision comes on Wednesday. For

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Speaker 1: full Fed coverage, catch our special edition of Bloomberg Surveillance.

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Speaker 1: The Fed decides at one thirty pm Wall Street Time

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Speaker 1: this Wednesday on Bloomberg Radio and Television.

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Speaker 2: Then Karen Ahead of that Fed decision, Gold has hit

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Speaker 2: another record high in Fact Bully and is on track

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Speaker 2: for a weekly gain of almost three percent. As for equities,

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Speaker 2: they've rallied every day this week. The S and P

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Speaker 2: five hundred rows three quarters of one percent yesterday. Nadia

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Speaker 2: Lovell is Senior US S equity strategist of Global Wealth

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Speaker 2: Management at UBS. She says it is still a good

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Speaker 2: time to buy stocks.

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Speaker 5: You've got to put cash to work. I mean, the

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Speaker 5: fact is about to cut. We know that debate is

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Speaker 5: still there all atus twenty five basis points or fifty

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Speaker 5: basis points, but the cut of cycle is starting, and

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Speaker 5: therefore you know what you're going to be able to

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Speaker 5: yield in cash is going to continue to go down,

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Speaker 5: and so we would look to be adding some about

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Speaker 5: cash into quality equities and also have bit into fixed income.

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Speaker 1: Natti.

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Speaker 2: A level at UBS has a year end target of

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Speaker 2: fifty nine hundred for the SMP five hundred. That's five

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Speaker 2: percent higher than yesterday's close.

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Speaker 1: Well Nathan, some stocks on the move this morning. Shares

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Speaker 1: of Adobe down more than eight percent. The company known

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Speaker 1: for its software for creative professionals, gave a revenue forecast

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Speaker 1: for the current quarter that missed Wall Street estimates. That's

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Speaker 1: fueling investor in patience for Adobe's AI tools to begin

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Speaker 1: generating sales.

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Speaker 2: On the flip side, Careen. Shares of Oracle are up

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Speaker 2: six The software maker says annual revenue will rise to

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Speaker 2: at least one hundred and four billion dollars in fiscal

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Speaker 2: twenty twenty nine. Analysts say it's an optimistic signal on

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Speaker 2: the growth prospects of Oracle's cloud infrastructure business.

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Speaker 1: Well Nathan, Turning to the race for the White House,

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Speaker 1: If you've been wondering whether there will be another debate

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Speaker 1: between former President Donald Trump and Vice President Kamala Harris.

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Speaker 1: Bloomberg's Amy Morris tells us, we have a pretty good

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Speaker 1: indication now it is not going to happen.

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Speaker 6: Donald Trump ruled out another debate with an all caps

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Speaker 6: declaration on truth social quote. There will be no third debate.

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Speaker 6: He insists he won their first debate, so he doesn't

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Speaker 6: need to participate in another one. Vice President Kamala Harris

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Speaker 6: spoke at a campaign event in Charlotte, North Carolina, shortly

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Speaker 6: after Trump's statement.

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Speaker 1: I believe we owe it to the voters to have

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Speaker 1: another debate.

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Speaker 6: It is not clear if the Vice president was directly

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Speaker 6: responding to Trump's post. Trump and Harris's running mates, Republican

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Speaker 6: Senator jd Vance of Ohio and Democratic Minnesota Governor Tim Walls,

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Speaker 6: are slated to hold their owned on October first, with

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Speaker 6: CBS News in Washington. Anymore, as Bloomberg Radio right.

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Speaker 2: Amy, thank you sinking with politics. Donald Trump's making a

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Speaker 2: new pledge if he's elected, no tax is on overtime pay.

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Speaker 2: Bloomberg said, Baxter has the story.

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Speaker 7: Seeking to gain footing after the shaky debate. This is

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Speaker 7: an effort by him and his strategist to change the

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Speaker 7: focus from debates and hit the road. To rallies and promises,

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Speaker 7: as when in Arizona. Aimed at a blue collar workers

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Speaker 7: that he needs to win, He says, the people who

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Speaker 7: work overtime are among the hardest working citizens in our country.

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Speaker 7: Not Over the last three months, Trump has rolled out

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Speaker 7: a steady drumbeat of tax cut plans. He has not

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Speaker 7: explained yet how to pay for them, and a Bloomberg

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Speaker 7: review says they would add more than ten point five

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Speaker 7: trillion dollars to the national debt over the next ten years.

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Speaker 7: Ed Baxter, Bloomberg.

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Speaker 1: Radio, all right, thank you. On Nippon Steele in United States,

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Speaker 1: Steel sent a letter to President Joe Biden earlier this

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Speaker 1: month on the Japanese companies propose takeover of its American peer.

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Speaker 1: The letter was signed by both company CEOs. Nippon Steele

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Speaker 1: has been mounting a last ditch attempt to try and

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Speaker 1: muster support for the fourteen point one billion dollar takeover attempt,

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Speaker 1: which faces widespread political opposition in the US ahead of

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Speaker 1: the presidential election in November. Time now for look at

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Speaker 1: some of the other stories making news in New York

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Speaker 1: and around the world. For that, we're joined by Bloomberg's

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Speaker 1: John Tucker, John Good morning.

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Speaker 8: And good morning Karen. The Justice Department preparing criminal charges

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Speaker 8: in connection with an Iranian hack that targeted Donald Trump's

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Speaker 8: presidential campaign. Let's get to tales from Washington, Bloomberg, Steam podisc.

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Speaker 9: The prospect of criminal charges comes as the Justice Department

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Speaker 9: has raised alarms about aggressive efforts by countries, including Russia

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Speaker 9: and Iran, to medal in the presidential election. It was

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Speaker 9: not immediately clear when the charges might be announced. Assistant

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Speaker 9: Attorney General Matthew Olsen, the Justice Department's top national security official,

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Speaker 9: said in a speech Thursday, Iran is making a greater

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Speaker 9: effort to influence this year's election than it has in

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Speaker 9: prior election cycles, and that Iranian activity is growing increasingly

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Speaker 9: aggressive as this electioneers in Washington. Steve Potosk Bloomberg Radio.

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Speaker 8: UK Prime Minister Keir Starmer has arrived in Washington. It

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Speaker 8: comes ahead of a meeting with President Biden. Sources are

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Speaker 8: telling Bloomberg the US and UK are discussing allowing Kiev

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Speaker 8: to conduct strikes inside Russia using British cruise missiles backed

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Speaker 8: by US navigational data. Speaking yesterday, Russian President Vladimir Putin

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Speaker 8: warned against the move.

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Speaker 10: Addison bud but this will be their direct participation, and

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Speaker 10: these of course will significantly change the very essence, the

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Speaker 10: very nature of the conflict. These wo mean that natal countries,

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Speaker 10: the US and European countries are at war with Russia.

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Speaker 8: Rut there through an interpreter. The discussion comes after the

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Speaker 8: US confirmed that Moscow has received shipments of ballistic missiles

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Speaker 8: from Iran. Cruis are battling three wildfires east of Los

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Speaker 8: Angeles in San Bernardino County. There's a red glow in

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Speaker 8: the sky and a strong haze in the air as

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Speaker 8: the flames continue. Three fires have scorts more than one

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Speaker 8: hundred thousand acres across southern California. Elon Mosk has labeled

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Speaker 8: the Australian government as fascists over proposed new laws to

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Speaker 8: crack down on digital misinformation, particularly on social media websites.

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Speaker 8: Under the proposed legislation, which have yet to pass Parliament,

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Speaker 8: social media companies could be fined up to five percent

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Speaker 8: of their annual revenue. Global news twenty four hours a

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Speaker 8: day and whatever you want it with Bloomberg News. Now,

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Speaker 8: I'm John Tucker, and this he is Bloomberg.

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Speaker 1: Karen, all right, John Tucker, thank you time now for

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Speaker 1: the Bloomberg Sports Update with John stash Hour.

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Speaker 11: John, Good morning, Good morning, Karen. Yankees in the Red

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Speaker 11: Sax first the four at the stadium in Glabor, Torres

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Speaker 11: let off the game of the home run just made

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Speaker 11: it over the wall into the first world seats in

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Speaker 11: right field Yanks. They did not score again for the

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Speaker 11: next nine in names. Anthony Volpi came up in both

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Speaker 11: the fourth and six innings with the bases loaded, both

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Speaker 11: times flew out the left Red Sox got a game

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Speaker 11: time Danny Jansen home running the fifth off Nester Cortes.

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Speaker 11: The game was tied at one bottom of the tent.

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Speaker 12: Two two, so it all grounds it towards the medal.

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Speaker 12: Bayshi Per Sono thirty year round third Rafaela comes up

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Speaker 12: throwing on a hot thirty slide, says on Sono.

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Speaker 11: Wednesday game deef an two to one. Yankee wins second

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Speaker 11: straight and extra innings. It puts them two full games

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Speaker 11: ahead of IL Baltimore. The Yankee bullpen was terrific. Four

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Speaker 11: relievers followed towards test for the night. The Yanks in

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Speaker 11: ten innings allowed only four Boston hits. They had fourteen strikeouts.

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Speaker 11: All four teams vying for the three NL wildcard sponsor

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Speaker 11: the night Off that includes the Mets, who played tonight

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Speaker 11: in Philadelphia, the Phillies thirty games over five hundred and

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Speaker 11: their fifty to twenty five, and home Thursday Night football

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Speaker 11: to kickoff Week two, all Buffalo in Miami thirty one

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Speaker 11: to ten. The Bills James Cook scored three first half

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Speaker 11: touchdowns Dolphins quarterback two a time that we all had

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Speaker 11: three interceptions. One was returned for TD. He later left

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Speaker 11: with a concussion. He had two of them two years ago.

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Speaker 11: The Bills have now beating the Dolphins fourteen to the

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Speaker 11: last sixteen. The Jets have brought back center Connor McGovern.

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Speaker 11: He went down last year with a knee injury. Was

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Speaker 11: plenty to retire, but the Jets worked him outside him

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Speaker 11: with the practice squad. Rafael Dal was hoping to play

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Speaker 11: next week's Labor Cup in Berlin. The feeling was it

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Speaker 11: would be the last event of his career, but Nadal

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Speaker 11: has withdrawn, saying other players are more deserving. So it's

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Speaker 11: certainly possible that Midell's career with twenty two Grand stam titles,

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Speaker 11: is now over. John Stash Thatward Bloomberg Sports, Karen Y Nathan.

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Speaker 7: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 7: and around the world on Bloomberg dot Com and the

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Speaker 7: Bloomberg Business app.

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Speaker 8: This is Bloomberg.

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Speaker 2: Daybreak, Good Morning on Nathan Hager. Boeing is grounded. As

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Speaker 2: of midnight Pacific time, members of the planemaker's largest union

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Speaker 2: on the West Coast have walked off the job for

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Speaker 2: their first strike in sixteen years. John Holden, as president

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Speaker 2: of the International Association of Machinists and Aerospace Workers, this.

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Speaker 12: Is about respect, This is about addressing the past, and

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Speaker 12: this is about fighting for our future.

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Speaker 2: And this could be a crippling move for a company

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Speaker 2: still reeling from the quality control issues found out its

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Speaker 2: seven thirty seven max Jet just at the start of

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Speaker 2: the year. For the latest were joined now by Bloomberg's

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Speaker 2: Danny Lee. Danny good morning. This was, from what we understand,

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Speaker 2: an overwhelming strike vote. Why did the rank and file

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Speaker 2: reject this offer?

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Speaker 3: Yeah, Nathan, good morning. Well, clearly the vote was a

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Speaker 3: signal of just how poor the union members for this

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Speaker 3: deal was third three thousand of them voting, and you

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Speaker 3: can see the strength of the rejection and look you

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Speaker 3: can see how Bone responded. They were quite consideratory in

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Speaker 3: their tone, acknowledging that the fact that they were committed

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Speaker 3: to resettings relationship with the unions. And you know, you

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Speaker 3: just look at what the deal was put in front

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Speaker 3: of members. Twenty five thousand, twenty five percent rather increase

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Speaker 3: in salary over four years but losing annual bonuses. That

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Speaker 3: was not enough and when union members wanted something more

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Speaker 3: like forty percent. There was a big gap there between

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Speaker 3: what Boeing is offering and what the union members really want.

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Speaker 3: And so this is a this is a first kind

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Speaker 3: of mini blow to new CEO Kelly ott Berg, drafted

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Speaker 3: in to try and sort out not just this, but

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Speaker 3: a wider set of problems with Boeing related to the business,

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Speaker 3: it's operations, it's finances, its culture. And so it's now

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Speaker 3: down to him to see his true resolve, what he

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Speaker 3: can do and particularly how quickly he can get things

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Speaker 3: back on track.

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Speaker 2: So what can he do at this point? Where do

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Speaker 2: contract talks go from here?

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Speaker 3: Well, we need to see both sides getting around the

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Speaker 3: table or a very big table. Frankly, and the union

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Speaker 3: overnight saying it was planning and keen to have more

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Speaker 3: talks as quickly as possible for Boeing. They've not given

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Speaker 3: an indication yet of when they will talk. I'm sure

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Speaker 3: both sides will get together soon. The challenges, you know,

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Speaker 3: what will be put on the table first by Boning.

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Speaker 3: Clearly the first offer not good enough, and you know

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Speaker 3: the question of a salary over job security and other

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Speaker 3: entitlements such as healthcare, healthcare and retirement. So there's a

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Speaker 3: lot Boeing still has to to put together. And you know,

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Speaker 3: the top the clock is ticking frankly with the amount

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Speaker 3: of money that it risks burning through this strike, the

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Speaker 3: fact that it's factories now in Seattle where many of

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Speaker 3: its commercial jets are built, most of them, the fact

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Speaker 3: that it's down tools now, and the fact that they

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Speaker 3: will not be able to deliver planes, build planes, deliver

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Speaker 3: planes to customers, and therefore they cannot bring in the

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Speaker 3: cash to arrest what is a wider serious issue. It's

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Speaker 3: cash burn and it's stress on its balance sheet.

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Speaker 2: So we're at the very early stages of this obviously,

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Speaker 2: so much more to come as we continue monitoring. What

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Speaker 2: is the beginning of the first strike for Boeing's largest

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Speaker 2: union in sixteen years. Thanks for keeping us updated on it.

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Speaker 2: Danny Lee of Bloomberg News with us this morning as

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Speaker 2: this strike is just getting underway. Now, we want to

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Speaker 2: turn to our exclusive conversation with the Secretary of the

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Speaker 2: US Department of Transportation, Pete Boodhajidge. Before Boeing's union members

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Speaker 2: voted to strike, he sat down with Bloomberg Salaa Mosen

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Speaker 2: on the Big Take DC podcast. They talked about trust

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Speaker 2: and air travel, the safety concerns at Boeing, and getting

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Speaker 2: the plane maker back on track. They began with the

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Speaker 2: question of whether Pete Bootajidge enjoys flying commercial given airline concerns.

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Speaker 13: Mostly, I think we've all had our headaches. I am

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Speaker 13: on an airliner, maybe not every day, but almost, and

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Speaker 13: like millions Americans, experience the benefits but also the huge

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Speaker 13: frustrations that go with air travel. We've worked hard to

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Speaker 13: establish America's safety record that has made air travel the

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Speaker 13: safest way to get around. We work hard to keep

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Speaker 13: it that way and press the airlines to do their part.

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Speaker 13: And then there's the customer service side, where it's clear

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Speaker 13: that airlines need to do a better job of taking

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Speaker 13: care of passengers, and we have not just pressed them

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Speaker 13: and encouraged them to improve their performance, but introduced new

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Speaker 13: passenger rights that have created protections that didn't exist just

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Speaker 13: a few years ago and that we think are much

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Speaker 13: needed and overdue.

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Speaker 14: What is the Transportation Department under Secretary ped Buddha Judge

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Speaker 14: doing to make holiday travel a little less frustrating this year.

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Speaker 13: Well, the first thing we've done is press the airlines

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Speaker 13: to improve their performance. It's one of the reasons why

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Speaker 13: last year saw the lowest rate of flight cancelations in

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Speaker 13: about a decade, and we're working to make sure that,

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Speaker 13: through things like realistic scheduling and adequate staffing, build on

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Speaker 13: improving that record. The other thing that's important is that

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Speaker 13: they take care of passengers when there is a delay

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Speaker 13: or an issue. One of the things we've done is

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Speaker 13: introduce a new toolflight rights dot gov that's got airline

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Speaker 13: by airline information about what you can expect your airline

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Speaker 13: to do to take care of you when you have

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Speaker 13: a problem, and those are customer service promises that we

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Speaker 13: enforce and hold them accountable for meeting. We've also taken

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Speaker 13: action to increase the benefits that go back to a

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Speaker 13: customer when there's an issue. For example, automatic refunds when

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Speaker 13: your flight is canceled, something that has been a real

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Speaker 13: headache and led to us imposing hefty penalties on airlines

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Speaker 13: that weren't following through. We're trying to take the drama

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Speaker 13: out of that by saying that you don't even have

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Speaker 13: to ask to get a refund. And lastly, a lot

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Speaker 13: of enforcements. We have issued the toughest enforcement actions in

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Speaker 13: the history of the department in cases like that of

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Speaker 13: Southwest Airlines that melted down almost two inters ago now

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Speaker 13: and left so many passengers strandedstigating what happened with Delta

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Speaker 13: over the summer right now.

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Speaker 14: So this holiday season November and December, can consumers expect

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Speaker 14: that some of these things are already in play. We

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Speaker 14: can expect that we can sit with our family members,

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Speaker 14: as Joe Biden promised. We can expect that we can

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Speaker 14: get refunds. The way you're describing.

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Speaker 13: As a passenger today, you have protections that you did

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Speaker 13: not have a year ago, or two years ago or more,

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Speaker 13: and we're going to continue building on those. So yes,

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Speaker 13: if you're heading to see family for the holidays, for example,

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Speaker 13: those automatic refund protections are the law of the land now.

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Speaker 13: And if you don't get treated that way, let us know,

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Speaker 13: because we'll follow up with enforcement. We have seen more

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Speaker 13: airlines comply with what we've been asking them to do

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Speaker 13: with regard to family seating and for passengers who are

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Speaker 13: wheelchair users. Now we've been acting to make sure that

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Speaker 13: they have a better experience because some of the stories

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Speaker 13: we've heard about what they have faced traveling on airlines

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Speaker 13: are just completely unacceptable, and we're developing rules that would

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Speaker 13: change the experience and empower those passengers significantly.

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Speaker 14: You're talking about enforcement and penalties is one aspect there

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Speaker 14: are you thinking millions of dollars? How high a penalty

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Speaker 14: are you willing to levy on these airlines?

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Speaker 13: Well, the case of Southwest, it was a one hundred

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Speaker 13: and forty million dollar enforcement action, which was more than

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Speaker 13: we had seen in a decade or more put together

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Speaker 13: before that, partly because we thought it was very important

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Speaker 13: to send a message to airlines. What we saw was

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Speaker 13: at some of the past levels of penalties a million

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Speaker 13: here to a million, there really wasn't enough to change behavior.

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Speaker 13: And we're going to continue to be ready to do that.

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Speaker 13: And now, one thing I want to mention ish we

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Speaker 13: talked about one hundred and forty million. That's not all

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Speaker 13: cash going back to the treasury. We did impose a

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Speaker 13: cash fine of about thirty five million dollars, but part

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Speaker 13: of what we did in the enforcement orders have the

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Speaker 13: majority of those dollars actually go back to passengers in

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Speaker 13: the form of vouchers, compensation, and other things that went

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Speaker 13: back to the consumer, because the whole point of this,

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Speaker 13: of course, to make sure consumers are better taken care of.

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Speaker 14: I want to talk about Boeing. What have you been

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Speaker 14: able to do to get that company back on track?

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Speaker 13: Well, if A took an unprecedented measure in restricting Boeing's

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Speaker 13: ability to produce aircraft at a higher rate until they

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Speaker 13: demonstrated the safety of their production and the quality of

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Speaker 13: their production process. Aviation in America by far the safest

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Speaker 13: way to travel and has made the last decade or

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Speaker 13: two the safest period in the history of aviation. That

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Speaker 13: means that when there is a near miss or an

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Speaker 13: incident something like the plug door blowing out in January

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Speaker 13: and Alaska, we treat that as seriously as the FA

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Speaker 13: used to treat the most recent fatal crash. I think

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Speaker 13: that's part of why they've been able to say that

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Speaker 13: there has not been a fatal airliner crash in years,

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Speaker 13: and again, it takes a lot of work to keep

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Speaker 13: it that way. Boeing was put on notice that they

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Speaker 13: were under a microscope. They've provided an updated plan and

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Speaker 13: now we are watching to see how they're doing and

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Speaker 13: meeting the terms of that plan. They also have new leadership,

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Speaker 13: and I've conveyed to Bone and the importance of them

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Speaker 13: prioritizing a culture of quality and safety so that they

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Speaker 13: can meet the FA's expectations and really the expectations of

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Speaker 13: the American public.

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Speaker 14: There's another place where trust and air travel is really

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Speaker 14: low right now. Since we're talking about trust, I'm talking

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Speaker 14: about pricing and rewards transparency, So what it actually costs

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Speaker 14: to take the trip that you've planned, and the value

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Speaker 14: of the loyalty points that you've signed up to get.

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Speaker 14: One example that you guys have been working on at

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Speaker 14: the department is a lot of work on junk fees.

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Speaker 14: Share a little bit about what you're doing on that front.

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Speaker 14: With consumer productions.

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Speaker 13: We're making sure that you get refunded if you don't

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Speaker 13: get what you paid for on your fees, same as

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Speaker 13: we do on your ticket. So you paid for Wi fi,

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Speaker 13: the Wi Fi doesn't work, get your money back. Same

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Speaker 13: with baggage. We have another rule about transparency, and this

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Speaker 13: is really about making sure that you can tell when

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Speaker 13: you're comparison shopping for an airfare, the all in cost

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Speaker 13: of the ticket that you're buying, including those ancillary fees

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Speaker 13: or bags or picking a seat or something like that.

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Speaker 13: I thought that being Tan's parent about fees was a

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Speaker 13: relatively low bar to require the airlines to meet. But

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Speaker 13: when we finalize that as a rule, the airline industry

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Speaker 13: lobby responded by suing us. We believe that our rule

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Speaker 13: is based on strong legal authority, so we're standing our ground,

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Speaker 13: but it's disappointing that they're so reluctant to do something

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Speaker 13: I think most consumers would expect of anybody selling anything,

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Speaker 13: which is to be upfront and transparent about what you're

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Speaker 13: going to charge.

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