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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 Lisa Matteo. Here

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

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Speaker 3: Lisa, we begin with new developments on two trade fronts. First,

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Speaker 3: talks between Treasury Secretary Scott Bessant and China's Vice Premier

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Speaker 3: Holy Fanger scheduled to take place in Malaysia this weekend.

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Speaker 3: It's a prelude to the closely watched meeting between Presidents

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Speaker 3: Trump and She Jinping next week. President Trump wants she

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Speaker 3: to resume American soybean purchases, crackdown on fentanyl, and back

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Speaker 3: off on restrictions on rare earth exports. He says, if

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Speaker 3: no deal has reached, big tariffs will resume.

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Speaker 4: Actually, on November first, the tariffun China goes to one

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Speaker 4: hundred and fifty seven percent, which is record setting territory.

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Speaker 4: And we don't want that because it's not sustainable for them.

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Speaker 4: They can't sustain that.

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Speaker 5: We don't want.

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Speaker 4: Them to have to go through that. So a meeting

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Speaker 4: with President she and I would say the first we

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Speaker 4: have some big issues like with the farmers and various

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Speaker 4: other things. But the first question I'm going to be

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Speaker 4: asking him about is fentat all.

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Speaker 3: President Trump is scheduled to arrive in Malaysia, his first

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Speaker 3: stop on his Asian trip, early Sunday morning.

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Speaker 2: Well meantime, Nathan, President Trump is injecting new uncertainty into

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Speaker 2: America's closest trading partnership. The President posted on truth Social

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Speaker 2: that he's terminating trade negotiations with Canada. He's citing this

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Speaker 2: TV advertisement from the Province of Ontario.

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Speaker 6: When someone says, let's impose tariffs on foreign imports, it

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Speaker 6: looks like they're doing the patriotic thing by protecting American

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Speaker 6: products and jobs. And sometimes for a short while it works,

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Speaker 6: but only for a short time.

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Speaker 7: But over the long.

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Speaker 6: Run, such trade barriers hurt every American worker and consumer.

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Speaker 2: That commercial features excerpts of them. President Ronald Reagan defending

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Speaker 2: free trade. We get more from Bloomberg's pens.

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Speaker 5: This is just a reminder of just how rocky the

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Speaker 5: relationship with Canada has been ever since Trump returned to

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Speaker 5: the White House, and even though there has been a

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Speaker 5: sense of stabilization recently and talks have been happening. Mark

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Speaker 5: Carney was in the White House a couple of weeks

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Speaker 5: ago when that meeting seems to have gone well. That

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Speaker 5: really important to trade relationship, which is worth almost a

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Speaker 5: trillion dollars a year.

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Speaker 2: Bloomberg's blash Pens reports President Trump is accusing Canada of

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Speaker 2: timing the AD to interfere with the Supreme Court case

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Speaker 2: against his country by country tariffs arguments in that case

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Speaker 2: set for November fifth.

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Speaker 3: Well, now, Lisa, let's turn to the latest on the

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Speaker 3: government shutdown. It is now day twenty four of the

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Speaker 3: second longest shutdown in American history. On day twenty three,

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Speaker 3: Senate Democrats blocked a Republican bill that would have paid

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Speaker 3: members of the military and federal workers who have had

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Speaker 3: to stay on the job since the funds ran out

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Speaker 3: October first. Democrats say that bill would have given President

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Speaker 3: Trump too much leeway to decide which government employees have

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Speaker 3: to keep working while this standoff continues. House Minoriti leader

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Speaker 3: hot Kim Jeffrey says all federal workers will receive pay

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Speaker 3: once the government reopens.

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Speaker 8: When Donald Trump says anything, and he's the President of

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Speaker 8: the United States, and there's been a willingness to engage

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Speaker 8: an unlawful and illegal behavior, sometimes rubberstamped by the Conservative

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Speaker 8: majority on the US Supreme Court. That's problematic, but the

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Speaker 8: law is very crystal clear in this particular instance, and

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Speaker 8: we are going to make sure that every single federal

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Speaker 8: employee receives the entirety of their pay house.

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Speaker 3: MINORITI leader Hakim Jeffrey spoke with Bloomberg's David Gura. You

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Speaker 3: can hear their full conversation on the latest edition of

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Speaker 3: the Bloomberg Big Take podcast.

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Speaker 2: And the government shutdown, Nathan, it's also delayed important economic data.

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Speaker 2: Later this morning, we finally get the consumer price report

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Speaker 2: for September. Bloomberg's Michael McKee has a preview.

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Speaker 9: One rose among the thorns. We actually get some inflation

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Speaker 9: data from the government. The Labor Department has called furloughed

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Speaker 9: employees back to work to put together this September consumer

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Speaker 9: Price Index. Social Security uses a third quarter CPI average

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Speaker 9: to determine next year cost of living increase for beneficiaries,

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Speaker 9: which by law, must be published this month. The data

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Speaker 9: had all been collected by the time the government shut

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Speaker 9: down on October first, so it's simply a matter of

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Speaker 9: collating it and making the usual seasonal adjustments. And let's

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Speaker 9: expect we'll see no appreciable slow down from August, with

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Speaker 9: headline CPI rising four tenths percent during the month and

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Speaker 9: core three tenths. That would put the annual rate of

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Speaker 9: inflation at three point one percent for both, another move

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Speaker 9: in the wrong direction for the FED. Michael McKee, Bloomberg Radio.

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Speaker 3: All right, Mike, thanks, One question remains who will be

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Speaker 3: the next FED chairman? Bloomberg's Tom Keane put that question

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Speaker 3: to Neil Detta, head of economic research at Renaissance macro Well, I, frankly.

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Speaker 10: Don't think it's any of the people that are being

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Speaker 10: discussed right now. And the reason is is because if

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Speaker 10: it was going to be one of those people, they

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Speaker 10: would have already named them by now, So you know,

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Speaker 10: I mean, I think the longer it goes on, the

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Speaker 10: more likely it is, frankly, that Secretary Besson. I mean,

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Speaker 10: what do we know about Treasury Secretary Best? And we

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Speaker 10: know that number one, which is the most important, he

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Speaker 10: has the confidence of the President of the United States,

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Speaker 10: and number two he has the confidence of the financial markets,

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Speaker 10: and those are two pretty good. And number three he

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Speaker 10: probably is interviewing all these people and is thinking to

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Speaker 10: himself like, I'm better than all these guys.

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Speaker 3: As for what the FED does on policy. Renaissance Macro's

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Speaker 3: Neil Detta expects the Central Bank to cut rates next

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Speaker 3: week and in December.

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Speaker 2: Well, we now turn to some stocks on the move,

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Speaker 2: shares of Intel. They're up more than eight percent on

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Speaker 2: the chip maker return to profitability and gave an upbeat

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Speaker 2: revenue forecast. The outlook signals that Intel is on the

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Speaker 2: right track following a turbulent year. Jay Goldberg is a

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Speaker 2: senior semiconductor analyst with Seaport Research Partners.

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Speaker 11: It's an encouraging step forward for the company. They've been

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Speaker 11: through some rough times and I think the driver of

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Speaker 11: this quarter's results are their new products coming on stream.

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Speaker 11: I think that's helping a lot, and I'm most encouraged

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Speaker 11: by sort of the gross margin outlook for next quarter well.

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Speaker 2: Seaport Research Partners also notes a slew of deals that

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Speaker 2: has Intel shares up ninety percent so far this year.

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Speaker 2: In the stretch of a few months, Intel secured an

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Speaker 2: unconventional investment from the US government and one investments from

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Speaker 2: Nvidia and SoftBank Group Lisa.

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Speaker 3: Shares of Forder driving higher as well. This morning, They're

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Speaker 3: up about two and a half percent. The automaker reported

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Speaker 3: third quarter profits and sales above Wall Street estimates. CEO

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Speaker 3: Jim Farley tells Bloomberg that Ford will largely bounce back

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Speaker 3: next year from a devastating fire that hobbled a key

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Speaker 3: supplier to its stopped selling f one to fifty pickup.

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Speaker 12: We're still working to it. It'll be i'd say around

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Speaker 12: one hundred thousand units, but we still have the opportunity

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Speaker 12: improve that. This is really a retiming of wholesale. What

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Speaker 12: we lose this year will gain most of it back

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Speaker 12: next year. Maybe a billion and a half to two

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Speaker 12: and a half billion of EBIT this year a little

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Speaker 12: bit heavier on the cash because of how auto works,

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Speaker 12: but we'll be gaining at least a billion, if not more,

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Speaker 12: of that back next year.

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Speaker 3: And Fords CEO Jim Frowley now expects a billion dollar

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Speaker 3: financial hit from President Trump's tariffs. That's down from an

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Speaker 3: earlier estimate of two billion dollars.

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Speaker 2: And a quick programming note, Nathan, we would like to

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Speaker 2: invite you this weekend for another episode of The Michelle

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Speaker 2: Who's Sin Show. Now this week, Michelle sits down with

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Speaker 2: Reform UK leader Nigel Farage. Among their topics, President Trump.

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Speaker 13: In terms of keeping promises that he made the electorate. Yes,

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Speaker 13: there are many other areas in which we might disagree

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Speaker 13: or might do things.

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Speaker 14: We tell the areas that you disagree.

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Speaker 13: There are other airs you might disagree, social policy, etc.

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Speaker 13: We might see things differently. But the fundamentalism of Trump

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Speaker 13: is you tell the electorate I'm going to do X

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Speaker 13: how you actually do it, and that's what he's doing.

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Speaker 2: Well, you can listen and watch the entire interview with

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Speaker 2: Michelle Who'sain' on Apple, YouTube, Spotify or anywhere else you listen.

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Speaker 2: All Right, it's time now for check on the news

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Speaker 2: around the world. For that, we go to Michael Barr.

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Speaker 7: Hello Lisa. The head coach of the Portland Trailblazers and

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Speaker 7: a player for the Miami Heat were arrested along with

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Speaker 7: more than thirty other people in the takedown of two

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Speaker 7: gambling operations. Authorities said those involved leaked inside information about

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Speaker 7: NBA athletes and rigged poker games backed by mafia families.

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Speaker 7: Portland coach Chauncey Billups was charged with participating in the

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Speaker 7: conspiracy to rig high stakes card games tied to organized

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Speaker 7: crime families. US Attorney Joseph Ncella says the defendants would

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Speaker 7: lure victims into rigged poker games for a chance to

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Speaker 7: play with sports celebrities. The scheme targeted.

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Speaker 15: Victims known as quote fish, who were often lord to

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Speaker 15: participate in these rigged games by the chance to play

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Speaker 15: alongside former professional athletes who were known as quote face cards.

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Speaker 7: Heat guard Terry Rozier is accused in a separate scheme

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Speaker 7: of exploiting private information about player to win bets on games.

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Speaker 7: Outgoing New York City Mayor Eric Adams, officially through his

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Speaker 7: support behind former New York Governor Andrew Cuomo in the

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Speaker 7: mayoral election, self described Democratic socialists around Mamdani leads in

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Speaker 7: the polls over Cuomo and Republican Curtis Sliwa. If elected,

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Speaker 7: Mamdani would be New York's first Muslim mayor. Cuomo running

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Speaker 7: as an independent, and Adams seized on Memdanni's views on

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Speaker 7: the Israel Hamas Ward to paint him as an extremist.

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Speaker 1: New York can't be Europe, folks, I don't know what

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Speaker 1: is wrong with people.

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Speaker 4: You see what's plan out in other countries because of

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Speaker 4: Islamic extremism.

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Speaker 7: Ma'm Donnie called Cuomo and Adams puppets of President Trump.

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Speaker 16: We have a president of this country who has spoken

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Speaker 16: publicly of his desire for Eric Adams to drop out

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Speaker 16: of the race. Eric Adams dropped out spoken of his

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Speaker 16: desire for candidates to consolidate behind Andrew Cuomo. Today, Eric

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Speaker 16: Adams is endorsing Andrew Cuomo.

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Speaker 7: Election day is November fourth. New York Attorney General Letitia

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Speaker 7: James is set to make her initial appear int in

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Speaker 7: federal court today. James was indicted in a mortgage fraud case.

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Speaker 7: In twenty twenty two, James sued Donald Trump and his

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Speaker 7: company for fraud. Global News twenty four hours a day

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Speaker 7: and whenever you want it with Bloomberg News Now Michael

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Speaker 7: barm and this is Bloomberg, Lisa.

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Speaker 2: Thank you, Michael. Time now for our Bloomberg Sports update,

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Speaker 2: and for that we bring in Dan Schwartzman.

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Speaker 17: Thanks Lisa. Game won the World Series tonight in Toronto,

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Speaker 17: as the Blue Jays are hosting the Los Angeles Dodgers.

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Speaker 17: LA's looking to repeat as champions, which would make them

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Speaker 17: the first team to win back to back since two

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Speaker 17: thousand win the Yankees won their third straight. Toronto hasn't

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Speaker 17: been in the Series since nineteen ninety three. The Blue

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Speaker 17: Jay Sen, Rookie Tree, Yes Savage to the Mound versus

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Speaker 17: the Dodgers Blake Snell. Thursday Night football, the LA Chargers

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Speaker 17: dominated the Minnesota Vikings thirty seven to ten behind three

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Speaker 17: touchdown passes from Justin Herbert. There were just two games

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Speaker 17: in the NBA last night, the Thunder beating the Pacers

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Speaker 17: in double overtime one forty one to one thirty five

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Speaker 17: in a rematch of last year's final as Shay Gilgas

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Speaker 17: Alexander scored fifty five points. In Game two, the Warriors

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Speaker 17: knocked out the Nuggets one thirty seven to one thirty

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Speaker 17: one in overtime. That's your Bloomberg Sports Update.

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Speaker 3: Stay with us more from Bloomberg Daybreak coming up 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 Appum. This is Bloomberg Daybreak.

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Speaker 3: Good morning, I'm Nathan Hager. President Donald Trump may be

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Speaker 3: looking for a quick win when he meets next week

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Speaker 3: in South Korea a Chinese president Shi Jin paying earlier

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Speaker 3: this week, the President said he's got a lot of

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Speaker 3: leverage heading into this first face to face encounter for

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Speaker 3: both leaders in years.

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Speaker 4: I think that China will come to the table and

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Speaker 4: make a very fair deal, because if they don't, they're

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Speaker 4: going to be paying US one hundred and fifty seven

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Speaker 4: percent in tariffs.

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Speaker 3: That was President Trump at the White House earlier this week.

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Speaker 3: This morning, we're joined from Beijing by Bloomberg News senior

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Speaker 3: reporter James Major and James the President puts this in

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Speaker 3: very simple terms. But the dynamics going into these talks

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Speaker 3: are really complicated, aren't they. So what are the chances

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Speaker 3: that we get something like a big deal out of

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Speaker 3: this one encounter next week?

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Speaker 14: I would say that the chances of a big deal

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Speaker 14: resolving a lot of the issues between the US and

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Speaker 14: China are practically zero. I mean, if you look at

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Speaker 14: what happened in twenty eighteen, twenty nineteen, it took eighteen months,

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Speaker 14: almost two years of regular meetings and negotiations to get

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Speaker 14: anything close to what could be called a big deal.

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Speaker 14: And we've had you know, we've had a couple of

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Speaker 14: meetings for a few days in Europe, and we've got

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Speaker 14: some meanings coming up this week in Malaysia, where Scott

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Speaker 14: Besant and Vice Premier League fun will be meeting, but

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Speaker 14: you know, they're really not negotiating on the fundamental differences

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Speaker 14: between the two countries, and so, you know, I think

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Speaker 14: we'll get some agreements, you know, if the two leaders

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Speaker 14: do actually meet, which you know is not I wouldn't

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Speaker 14: put one hundred percent probability in that. But if they

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Speaker 14: do actually meet, I think we'll get some announcements out

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Speaker 14: of that, But I don't think it's going to be

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Speaker 14: sort of overarching solving of all the different bilateral issues

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Speaker 14: that the two countries are facing.

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Speaker 3: Interesting you say that there might not be one hundred

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Speaker 3: percent chance that the leaders meet on Thursday. What's got

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Speaker 3: you thinking that there could be some vulnerability there?

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Speaker 14: I mean after the Madrid, sorry, after the Stockholm meeting,

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Speaker 14: you know, Scott Present came out and said that there

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Speaker 14: hasn't there There wasn't a deal until Donald Trump said

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Speaker 14: there was a deal, and the Chinese came out and

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Speaker 14: said we have a deal. And then eventually Donald Trump

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Speaker 14: did come out and say no, no, we did actually

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Speaker 14: reach a deal, but it was there was a lot

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Speaker 14: of uncertainty about you know, what normally would have been

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Speaker 14: a the two sides come out and they announced something.

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Speaker 14: You know, the negotiators on the ground announced something, but

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Speaker 14: here it really is until the last minute, until the

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Speaker 14: President Donald Trump says I'm about to have a meeting

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Speaker 14: or I've just had a meeting. You know, I just

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Speaker 14: I don't have that confidence that what we think is

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Speaker 14: going to happen is actually going to happen. There's been

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Speaker 14: too many cases where at the last minute, like you

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Speaker 14: saw with the US and Canada today, Mark Conney was

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Speaker 14: hoping to do a deal with the US this weekend

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Speaker 14: before APEC. Suddenly Dawn Trump has come out and said

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Speaker 14: where all the negotiations are off. So it's that kind

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Speaker 14: of uncertainty and volatility. I think that just means that

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Speaker 14: I don't want to put my I don't want to

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Speaker 14: make a bet that the meeting between him and presidency

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Speaker 14: is definitely going to happen.

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Speaker 3: Well, going into this, we've got the President talking about

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Speaker 3: the threat of one hundred and fifty seven percent tariffs,

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Speaker 3: and you know China has come out with these rare

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Speaker 3: earth export restrictions announcement. Given all this, who has the

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Speaker 3: bigger leverage potentially?

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Speaker 14: I think if you look at what's happening so far

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Speaker 14: with trades, you've had I guess since April or March

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Speaker 14: there's been increasingly higher tariffs US tariffs on Chinese colds

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Speaker 14: and yet to spittle that when you know, I guess

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Speaker 14: the current sort of average tariff rate is between forty

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Speaker 14: and fifty percent. Despite that, China is still selling about

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Speaker 14: a billion dollars a day worth of goods to America.

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Speaker 14: And so what that means is that just even with

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Speaker 14: those higher tariffs, there are no suppliers other than China

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Speaker 14: for these goods that Chinese companies are selling. There are

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Speaker 14: there are no other supplies at that price where you know,

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Speaker 14: some American companies are still willing to buy those products.

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Speaker 14: So yes, raising tariffs from fifty percent to one hundred

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Speaker 14: and fifty percent or whatever the latest thread is is

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Speaker 14: going to be into that quicker. But I think you

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Speaker 14: know this kind of you know, Chinese dominance of product

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Speaker 14: like rarests parto factly hear my batteries, where they are

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Speaker 14: really the only supplier at scale for the whole world.

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Speaker 14: So it gives them a lot of leverage in these

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Speaker 14: kind of negotiations where they can say they can they

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Speaker 14: can clearly wear higher tariffs for a period of time.

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Speaker 14: And they also have many markets outside the US, where

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Speaker 14: you know other people are more than happy to buy

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Speaker 14: those products and it doesn't matter to them what the

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Speaker 14: US terrorism are those products. So I would say going

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Speaker 14: to this, you know you're seeing with the railroad tariffs, sorry,

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Speaker 14: with the railroads export controls. With that strength and exports,

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Speaker 14: the Chinese seem to have the upper hand.

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