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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 from President Donald Trump's

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Speaker 3: trip to Asia. This morning, the President is in Japan,

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Speaker 3: where he's been speaking to sailors aboard the USS George

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Speaker 3: Washington aircraft carrier and heaping praise on Japan's new Prime Minister,

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Speaker 3: sana A Takeichi.

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Speaker 4: This woman is a winner. So you know, we've become

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Speaker 4: very close friends. And all of a said, because their

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Speaker 4: stock market today at our stock market today hit an.

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Speaker 3: All time high, that means we're doing something right. The

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Speaker 3: President was joined by the Prime Minister, who promised to

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Speaker 3: fundamentally reinforce her nation's defense capabilities. Earlier, the two leaders

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Speaker 3: met for the first time in Tokyo, and President Trump

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Speaker 3: said he stands behind Takeichi.

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Speaker 5: Anytime you have any question, any doubt, anything you want,

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Speaker 5: any favors you need, anything I can do to help Japan,

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Speaker 5: we will be there.

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Speaker 6: We are an ally at the strongest level.

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Speaker 3: President Trump and Prime Minister Takeichi signed documents samed at

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Speaker 3: formalizing some of the trade agreement made under her predecessor

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Speaker 3: that includes a Japanese pledge to fund five hundred and

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Speaker 3: fifty billion dollars in US projects. The list of companies

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Speaker 3: interested in funding them includes SoftBank, Westinghouse, and Toshiba in

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Speaker 3: areas ranging from energy to AI and critical minerals.

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Speaker 2: Let's turn now to another major story that we're following

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Speaker 2: this morning, Nathan. Hurricane Melissa has intensified into a Category

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Speaker 2: five storm as it draws closer to Jamaica. On Bloomberg,

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Speaker 2: meteorologist Craig Allen is tracking the storm for US.

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Speaker 6: Hurricane Melissa is now in the top ten for the

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Speaker 6: strongest on record in the Atlantic. Maximum sustained wind speeds

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Speaker 6: continue around one hundred and seventy five miles per hour,

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Speaker 6: with gusts over two hundred and fifteen miles per hour.

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Speaker 6: Jamaica has already been taking a beating through the but

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Speaker 6: now the storm, which had been stationary for a few hours,

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Speaker 6: seems to be looping around and starting that north northeast

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Speaker 6: urn right towards Jamaica. And at this very slow speed

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Speaker 6: of only two to four miles per hour, it's likely

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Speaker 6: that devastating hurricane wins the storm surge of nine to

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Speaker 6: thirteen feet and twenty to thirty inches of rain or

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Speaker 6: more will last right through the day on Tuesday. It

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Speaker 6: may begin to taper down during Tuesday night, but not

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Speaker 6: before parts of the island are decimated.

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Speaker 2: I'm Bloomberg meteorologist Craig allen Or reporting to stay with Bloomberg

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Speaker 2: for team coverage of Hurricane Melissa all morning long.

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Speaker 3: The care in our coverage of the government shut down

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Speaker 3: in Washington continues now in Today twenty eight the country's

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Speaker 3: biggest federal workers union, the American Federation of Government Employees,

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Speaker 3: is calling on Democrats to go along with Republicans demand

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Speaker 3: for a clean short term spending bill, but Democrats are

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Speaker 3: mostly resisting that call. Senate Democrat Andy Kim of New

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Speaker 3: Jersey says his party sticking to its demand to extend

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Speaker 3: expiring health insurance subsidies.

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Speaker 7: A number of Republicans support extending these subsidies. It's just

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Speaker 7: as Speaker Johnson is preventing them from even being here

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Speaker 7: in DC for negotiations. You know, this is a dereliction

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Speaker 7: of duty and an abdication of leadership.

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Speaker 3: Senator Andy Kim's comments are being echoed by Republican Senator

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Speaker 3: Tom Tillis in an interview with Bloomberg Government, the North

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Speaker 3: Carolina Republican says his party should extend Obamacare subsidies for

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Speaker 3: two years and address cuts to Medicaid provider payments or

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Speaker 3: risk antagonizing voters. Tillis is leaving the Senate when his

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Speaker 3: term expires next year.

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Speaker 2: We turn to the markets now. Nathan ware Stalks enter

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Speaker 2: the session in record fashion. In fact, all four major

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Speaker 2: indexes closed at a record high, and Lorie Calvacina is

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Speaker 2: head of US equity strategy at RBC Capital Markets.

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Speaker 8: We're hitting levels that we, you know, have kind of

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Speaker 8: marked the ceiling in the past decade. But we're not

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Speaker 8: sitting at tech bubble highs either. So I think we

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Speaker 8: have kind of a plain old fashioned valuation problem where

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Speaker 8: the have gotten a bit over their skis. But I

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Speaker 8: don't think that this compares, frankly, to that peak in

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Speaker 8: two thousand. I don't think that this is bubble territory.

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Speaker 2: And as RBC Capital Marcus Lurie Calvesina and the S

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Speaker 2: and P five hundred closing yesterday at sixty eight seventy.

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Speaker 3: Five, Well investors now turned their attention Karen to earnings

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Speaker 3: and the FED. J. Powell and Company kickafe two day

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Speaker 3: meeting on interest rates today, and we get a preview

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Speaker 3: from Bloomberg's Michael McKee.

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Speaker 9: For the FED, it's an existential question. How do you

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Speaker 9: know where you're going if you don't know where you are?

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Speaker 9: Almost all data on the economy has been cut off

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Speaker 9: by the government shutdown. Their rate decision will be based

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Speaker 9: largely on what policymakers thought was happening before the shutdown

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Speaker 9: and what they've picked up from companies and consumers in

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Speaker 9: their districts. It appears they go into the meeting more

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Speaker 9: divided than they have been in years. At least three

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Speaker 9: members have suggested it's too risky to cut rates now.

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Speaker 9: CPI inflation, the one data point we did get is

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Speaker 9: still rising about as many say the economy is day

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Speaker 9: inangeriously close to stalling and a cut is needed. The

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Speaker 9: biggest group is in the middle, perhaps leaning towards a cut.

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Speaker 9: That's what FED Chair j Powell has let the markets price,

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Speaker 9: and as the two day meeting starts, that's the best bet.

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Speaker 9: Michael McKee, Bloomberg Radio.

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Speaker 2: All right, Michael, thank you well. Goldman Sachs CEO David

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Speaker 2: Solomon is downplaying risks in the credit market following the

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Speaker 2: collapse of First Brands and Tricolor holdings. Begin More from

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Speaker 2: Bloomberg's John Tucker, John, Good Morning.

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Speaker 10: And Karen. Solomon describes recent losses at the regional banks

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Speaker 10: as what off issues that shouldn't spread to the broader market.

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Speaker 11: I don't see anything in the context of a handful

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Speaker 11: of bad credit situations. It's leading me to say that

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Speaker 11: we have a systemic issue around the corner.

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Speaker 10: Solomon also says the recent losses at the regional banks

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Speaker 10: tied to alleged fraud, serve as a reminder to stay

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Speaker 10: vigilant about underwriting standards. He was speaking at the Future

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Speaker 10: Investment Initiative in Riod. Solomon sounds more optimistic than some

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Speaker 10: of his counterparts. The failures of First Brands and Try

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Speaker 10: prompted JP Morgan, Chase CEO, Jamie Diamond and worn. When

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Speaker 10: you see one concroach, they're probably more you know you are,

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Speaker 10: come John Tucker, Bloomberg Radio.

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Speaker 3: All right, John, thank you, And speaking of Jamie Diamond,

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Speaker 3: he is continuing his push for workers to return to

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Speaker 3: the office. He is also at the Future Investment Initiative

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Speaker 3: conference in Riot and says junior bankers aren't able to

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Speaker 3: learn as much when they work from home.

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Speaker 5: Zoom is a great tool, so I'm not making fun

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Speaker 5: of zoom, but you know, younger people being left behind.

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Speaker 5: They're socializers the tier rating, they don't get ahead. But

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Speaker 5: even all of us in management when we meet on

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Speaker 5: Hollywood Squares is not as honest a conversation. You don't

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Speaker 5: have that constant follow up.

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Speaker 3: Earlier this year, JP Morgan Chase CEO Jamie Diamond ordered

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Speaker 3: all his employees to return to the office five days

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Speaker 3: a week, ending a hybrid work option for thousands of staff.

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Speaker 12: Well.

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Speaker 2: Nathan Banks are also in focus in Europe this morning.

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Speaker 2: HSBC and BMP Parrienbaugh reported earnings earlier this morning, and

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Speaker 2: we go to London and get the very latest Bloomberg's

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Speaker 2: Uan Pass.

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Speaker 9: Good morning, Ewan, Karen.

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Speaker 13: And Nathan Banks taking center stage today. With Europe's biggest

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Speaker 13: lender raising its profits outlook for the year, HSBC shares

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Speaker 13: gaining here in London. That's despite third quarter earnings taking

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Speaker 13: a one point one billion dollar hit to cover potential

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Speaker 13: losses from fraud litigation and across the water it's provisions

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Speaker 13: for credit losses making headlines from BNP Paribar, France's largest lender,

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Speaker 13: reaffirming its annual targets but putting aside more money for

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Speaker 13: souring loans in its trading units. BNP shares lower this

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Speaker 13: morning in London. I'm you in Pots Sploomberg.

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Speaker 2: Radio all right you and thank you.

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Speaker 3: And Amazon has reportedly said to cut tens of thousands

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Speaker 3: of jobs as soon as today. To get more on

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Speaker 3: that from Bloomberg's Lisa Mateo Lisa.

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Speaker 14: Nathan, It could be the largest layoffs since rolling reductions

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Speaker 14: in late twenty twenty two and early twenty twenty three

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Speaker 14: that ultimately total more than twenty seven thousand corporate employees.

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Speaker 14: Reuters reports the terminations this time around, well, it could

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Speaker 14: affect as many as thirty thousand jobs. Horses telling Bloomberg

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Speaker 14: it'll umpact corporate roles in several key departments, including logistics, payments,

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Speaker 14: video games, and the cloud computing unit. If you remember,

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Speaker 14: back in June, CEO Andy Jase said that Amazon's increasing

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Speaker 14: use of artificial intelligence would likely shrink its workforce. Lisa

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Speaker 14: Matteo Bloomberg Radio.

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Speaker 2: Time now for look at some of their stories making news

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Speaker 2: in New York and around the world, And for that

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Speaker 2: we're joined by Bloomberg's Michael Barr Michael, good morning.

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Speaker 15: Good morning, Karen. Republican lawmakers seized on front runner Zeron

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Speaker 15: Memdanni from mayor of New York. As next year's midterms approach,

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Speaker 15: GOP members are trying to make the self described Democratic

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Speaker 15: socialist the new face of the Democratic Party them. Donnie

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Speaker 15: spoke to ABC about his proposals for free transit and

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Speaker 15: childcare funded by tax increases that the New York Governor,

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Speaker 15: Kathy Hokeel has not shown support for the Spider endorsement.

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Speaker 4: I think it makes the most sense in the wealthiest city,

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Speaker 4: in the wealthiest country and history of the world, that

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Speaker 4: we actually ensure we have the funding necessary to make

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Speaker 4: it a place that New Yorkers can afford. And I'm

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Speaker 4: looking forward to working with Governor Hockle.

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Speaker 15: About two hundred and twenty three thousand people have turned

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Speaker 15: out so far for early voting in New York. Meanwhile,

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Speaker 15: a new poll has Donning opponent Andrew Cuomo closing the gap.

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Speaker 15: According to Suffolk University poll, the former New York governor

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Speaker 15: cut them Downnie's lead in half to only ten points.

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Speaker 5: Does anger in this city is frustration in this city?

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Speaker 15: Is all perfectly Republican? Curtis Lee with Trails in third

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Speaker 15: with about eleven percent of those polled.

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Speaker 11: The people will determine who the next mayor of the

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Speaker 11: City of New York is shore they have votes once

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Speaker 11: they had tallied.

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Speaker 15: On the night of November fourth, Audio courtesy of CBS two,

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Speaker 15: New York City public schools unveiled an emergency alert system

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Speaker 15: meant to speed response in an active shooter situation. The

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Speaker 15: new system includes a panic button for schools that can

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Speaker 15: initiate a police response in under ten seconds by overriding

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Speaker 15: the nine one one call flow. New York City Mayor

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Speaker 15: Eric Adams says the alert system is the first of

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Speaker 15: its kind in the country.

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Speaker 11: We will save lives by providing rapping response in active,

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Speaker 11: active shooting situation.

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Speaker 15: According to Every Town for Gun Safety, in twenty twenty five,

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Speaker 15: there have been one hundred and forty one school shootings nationwide.

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Speaker 15: Global news twenty four hours a day and whenever you

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Speaker 15: want it with Bloomberg News Now. Michael Barren, this is

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Speaker 15: Bloomberg Camy.

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Speaker 2: Thanks Michael all time now for our Bloomberg Sports update,

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

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Speaker 11: Thanks Daring. Game three of the World Series in Los

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Speaker 11: Angeles lasted six hours and thirty nine minutes. It when

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Speaker 11: eighteen and ins. It was tied at five in the

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Speaker 11: seventh inning and was still five to five in the

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Speaker 11: eighteenth when Freddie Freeman, who hit a walk off Grand

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Speaker 11: Slam to win Game One of the World Series last year,

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Speaker 11: hit another walk off home run that met the Blue

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Speaker 11: Jays six to five. They lead the series two games

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Speaker 11: to one, and I put ball in Kansas City Patrick

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Speaker 11: Mahomes three touchdown passes, the Chiefs meet the Commanders twenty

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Speaker 11: eight to seven at the Bloomberg Sports Update.

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

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Speaker 1: This 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 Appum. This is Bloomberg Daybreak.

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Speaker 3: Good morning, I'm Nathan Hager. As we continue to track

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Speaker 3: what is likely to be the strongest storm ever to

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Speaker 3: hit the island of Jamaica, Category five Hurricane Melissa continues

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Speaker 3: to churn, threatening widespread devastation through much of the Caribbean.

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Speaker 3: For the very latest we are joined now by Bloomberg

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Speaker 3: meteorologist Craig Allen and just about all the accounts Craig

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Speaker 3: of what this storm is doing, what it could do,

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Speaker 3: just seem increasingly dire. What is the very latest, good morning?

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Speaker 6: It is It comes across as one of the most

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Speaker 6: grit indications that I've seen for an island, one of

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Speaker 6: those Caribbean islands down across the sea there that it

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Speaker 6: appears that we are going to experience or has already

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Speaker 6: with this five o'clock report that just came in. I'm

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Speaker 6: looking ahead right now as I'm speaking to you. It

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Speaker 6: is the most intense tropical system worldwide for this year. Okay,

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Speaker 6: the pressure is now down to those who understand this

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Speaker 6: nine oh one millibars that surpasses some of the most

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Speaker 6: intense super typhoons in the Pacific. And now that Melissa

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Speaker 6: is down to this particular pressure, it's also the seventh

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Speaker 6: most intense Atlantic hurricane on record since eighteen fifty one.

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Speaker 6: So think about that and the type of system that

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Speaker 6: we have here with one hundred and seventy five mile

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Speaker 6: per hour winds approaching the south coast of Jamaica at

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Speaker 6: only three to five five miles per hour. In other words,

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Speaker 6: this type of wind could be affecting Jamaica more than

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Speaker 6: twelve hours at a clip, twelve to eighteen hours perhaps

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Speaker 6: before it is able to get to the north coast.

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Speaker 6: So you take a battering of one hundred and seventy

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Speaker 6: five mile per hour winds gusting over two hundred, you

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Speaker 6: have rainfall of twenty to thirty inches, especially in the

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Speaker 6: more mountainous terrain, which will result in just devastating mud slides.

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Speaker 6: And you've got a storm surge that comes into the

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Speaker 6: south coast at nine to thirteen feet. I mean most

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Speaker 6: people are five to six feet in height. Think about

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Speaker 6: salt water coming up nine to thirteen feet that inundates

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Speaker 6: houses along the south coast of Jamaica. So all of

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Speaker 6: this is probably, as I said, one of the most

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Speaker 6: grim pictures I have seen painted for a storm hitting

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Speaker 6: a Caribbean island.

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Speaker 3: What is driving this intensity, Craigan? Why is this storm

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Speaker 3: moving so slowly.

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Speaker 9: Right now?

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Speaker 6: And for the last couple of days there's been absolutely

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Speaker 6: no steering currents at all. So you've got Melissa sitting

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Speaker 6: over the warmest water in the Atlantic anywhere in the Atlantic.

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Speaker 6: The water temperature there is about eighty five eighty six,

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Speaker 6: and that is perfect fuel. That's what a hurricane derives

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Speaker 6: its energy from the warm, moist air that is rising

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Speaker 6: coming up from this eighty six degree water, and it's

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Speaker 6: just sitting there and cooking. I mean, think about how

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Speaker 6: it has not moved very much because of the lack

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Speaker 6: of steering currents up to this point. But the only

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Speaker 6: good news that I could think of right now is

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Speaker 6: that eventually, over the next let's say, twenty four hours

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Speaker 6: or so, there will be something that comes through in

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Speaker 6: the upper atmosphere that's going to pick up the storm

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Speaker 6: and pull it off to the north and north ear

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Speaker 6: So by the time that it hits eastern Cuba, it's

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Speaker 6: still going to be a major Category five. But it

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Speaker 6: then goes towards the Turks and Keikos the Bahamas, and

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Speaker 6: it's starting to move a little bit faster. It's also

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Speaker 6: away from the warmest water, and therefore it should not

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Speaker 6: be quite as intense when it gets to the Bahamas.

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Speaker 6: There will still even be hurricane conditions when it gets

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Speaker 6: to Bermuda later this week, but it won't be quite

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Speaker 6: as intense as it is right now, Nathan.

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Speaker 3: But as we say, it's going to be a very

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Speaker 3: very rough twelve to maybe even twenty four hours for

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Speaker 3: the Caribbean. Thank you for this, Craig as Bloomberg mediorologist

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Speaker 3: Craig Allen part of our team covering Hurricane Melissa this morning.

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Speaker 3: But now we want to get back to our top

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Speaker 3: story of this Tuesday morning. President Trump in Tokyo keeping

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Speaker 3: praise on Japan's new Prime Minister sun Antuckiichi.

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Speaker 9: We very much appreciate the trade.

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Speaker 5: We're going to do industry together, I think.

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Speaker 9: More than ever before.

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Speaker 3: That was the President during his first meeting with the

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Speaker 3: new premiere in Tokyo. They've also been speaking aboard a

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Speaker 3: US aircraft carrier, the USS George Washington, promising to boost

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Speaker 3: defense and security cooperation for the very latest joining US

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Speaker 3: this morning from Hong Kong is Bloomberg's Jill Desis. Jill,

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Speaker 3: It sounds all indications like a pretty solid meeting for

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Speaker 3: the new Japanese Prime minister.

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Speaker 16: What are some of the deliverables coming out of it?

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Speaker 16: Good morning, Yes, good morning. Well, I think there's a

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Speaker 16: couple of things really to look at out of this meeting.

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Speaker 16: First of all, you know, I suspect that this is

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Speaker 16: one that Trump himself was probably looking forward to quite

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Speaker 16: a bit. The new Japanese Prime Minister Takeiichi. So you know,

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Speaker 16: I mean, in addition to being the first woman prime

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Speaker 16: minister of Japan, she also shares that she's a protege

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Speaker 16: of Shinzo Abbe, the former prime minister who Trump was

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Speaker 16: incredibly close with during his first administration when he was

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Speaker 16: elected back in twenty sixteen. You know, she's somebody that

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Speaker 16: runs more conservative, is also more hawkish, particularly on the

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Speaker 16: foreign policy defense side. And so what you saw out

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Speaker 16: of today was was again a couple of things. First

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Speaker 16: of all, some.

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Speaker 12: Announcements about Japan increasing defense funding. That something that Trump

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Speaker 12: has certainly been pushing a lot of his you know, allies,

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Speaker 12: you know in the Pacific, in the Pacific included to

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Speaker 12: really kind of gun for so I think that you know,

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Speaker 12: that's something that you know, he was obviously very happy

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Speaker 12: with today. The other thing too, that I think we

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Speaker 12: saw that I was interesting was some agreements that were

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Speaker 12: more related to the US Japan trade deal. Now these

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Speaker 12: are agreements that were ultimately reached you know a little

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Speaker 12: bit earlier this year. We did get a little bit

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Speaker 12: more detailed. There was additional promises when it comes to

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Speaker 12: rare earths, for example, But you know those some of

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Speaker 12: those details I think are still a little bit in flux,

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Speaker 12: still a little bit vague, but it does seem like

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Speaker 12: at least there's some broad, you know, sort of sweepy,

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Speaker 12: you know, pledges for further cooperation. So I think if

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Speaker 12: you're Donald Trump today, you're probably feeling like you've you've

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Speaker 12: had a pretty good diplomatic victory.

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Speaker 2: Yeah.

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Speaker 3: I guess some of the details that I've heard coming

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Speaker 3: out of the Aircraft care your appearance in particular as

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Speaker 3: the President saying that these approved the first order of

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Speaker 3: thirty five fighter missiles and that sort of thing. But

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Speaker 3: in terms of the trade pact as well, Jill, what

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Speaker 3: are some of the details that we're getting.

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Speaker 6: Out of that.

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Speaker 12: Yeah, I mean again, I think you know, the big

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Speaker 12: thing that we were looking out for was, you know,

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Speaker 12: what else is happening with critical minerals, including rare earth.

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Speaker 12: So what the agreement between these two is ultimately signed

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Speaker 12: was supposed to formalize some elements of that trade deal

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Speaker 12: that Trump ultimately broke her unto her Takegi's predecessor. Still again,

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Speaker 12: there's just still lacking in some details on that particular

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Speaker 12: pledge included this idea that Japan could potentially fund five

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Speaker 12: hundred and fifty billion US dollars worth of projects in

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Speaker 12: the US, you know, very similar to some of these

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Speaker 12: investment pledges that the Trump administration has gotten from some

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Speaker 12: other nations. Now, you know, a lot of these packs

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Speaker 12: were still very light on details. The critical minerals one

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Speaker 12: in particular, we had some pledges from the US and

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Speaker 12: Japan to coordinate on permitting and financing and mapping, but

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Speaker 12: we didn't get a whole lot in terms of you know,

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Speaker 12: those actual you know, miniche that I think would go

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Speaker 12: into these trade agreements. And remember, when it comes to

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Speaker 12: trade agreements, I mean, things get really really complicated. So

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Speaker 12: I think, you know, maybe still more to come here.

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