Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Let's start with the latest on the speakership fight on Capitol Hill. So far, too Republicans have announced their running to replace Kevin McCarthy, House Majority Leader Steve Scalise and Jim Jordan, who leads the Judiciary Committee and is running one of the impeachment inquiries and to President Biden. Matt Gates, the Florida Republican who led McCarthy's ouster, says he'd be happy with either one of them.
I'm eager to hear their plans and their vision. But if the House of Representatives goes from the stewardship of Kevin McCarthy to either the stewardship of Jim Jordan or Steve Scalise, that's going to come to the delight of many Conservatives and certainly many of the Floridians that I represent.
Congressman Gates tells Bloomberg he opposes further aid to Ukraine. Scalise has voted Ford in the past, but Gates says that would not be a deal breaker for him. Hear more of our interview with Congressman Matt Gates on the Bloomberg Talks podcast.
Well, Nathan, the infighting on Capitol Hill, as President Biden calling for an end to what he calls poisonous politics.
No, we have strong disagreements, but we need to stop seeing each other as enemies. We need to talk to one another, listen to on our work, and we can do that.
The President is urging House Republicans to work with Democrats on a spending bill to averted government shutdown next month. Former Speaker McCarthy says the President did not communicate with him enough during past budget negotiations. Biden says any conversations wouldn't have fixed problems in McCarthy's own conference, Well.
Staying with politics, Karen, Former President Donald Trump has raised more than forty five million dollars in the third quarter for his campaign as he capitalized on publicity from his legal woes. This week, Trump's been appearing in a New York City courtroom for the civil case accusing him of overstating his asset values and lying about his wealth, and he blasted New York Attorney General Letitia James. I'm stuck here because.
I have a prewept attorney General that intermmunicates with the DK in Washington to keep me nice and miss an.
Attorney General James is firing back at Trump.
This case was brought simply because it was a case where individuals have engaged in a patent and practice of fraud. And I will not sit idly by and allow anyone to subvert the law. And lastly, I will not be bullied. And so mister Trump is no longer here. That Donald Trump show is over. This was nothing more than a political stunt.
New York Attorney General Letitia James accuses the former president of inflating his assets by billions of dollars a year to dupe banks and insurers.
Well staying in New York, Nathan. The trial of FTX founder Sam Bankman Freed is underway, with the spotlight already on those closest to him and Bloomberg, and Alli Bosik is covering the case.
Over the six week trial. Dozens of high profile testimonies will include Caroline Ellison, Bankman Freed's former girlfriend, and investor Anthony Scaramucci, whose firm had taken money from Bankman Freed's firm. They are expected to testify with dozens of others, and the defense still says working at a startup is like building a plane as you're flying it, and that no one CEO or person can be everywhere all managing such a fast rising firm. Remember, FTX had almost six million
customers at its peak. Bankman Freed may spend most of his life in prison if found guilty.
Bloombercanelli Bosik says, bankmin Freed is accused of using billions of dollars in customer deposits at FTX for speculative trading, as well as for luxury real estate and for political contributions.
All right, Karen, Let's move west to legal news out of California. Private testimony in the Justice Department's lawsuit against Google will be released later this week. Bloomberg's at Baxter has the story.
The judge has the testimony from behind closed doors of the CEOs of Apple and search engine Duck duck Go cut to the heart of the anti trust suit. Sources say the two held discussions to have duck doc Go replace Google and the private mode of Apple Safari browser, but that Google used its size and its wealth to pay billions of dollars to keep Google in play. It is expected the information will be released later this week. In San Francisco, I'm at Baxter Bloomberg Radio.
Right and thanks Will. Staying in California. There's some optimism over the Hollywood actors strike. Both the union that represents the actors and the Association of Motion Picture and Television Producers, which represents Hollywood studios, have met for a full day of negotiations. Talks are scheduled to continue tomorrow.
Turning to markets now, the route in treasuries that sent shock waves through the global bond market appears to have subsided, but still Barclay says global bonds are doomed to keep falling unless it sustained slump inequities revives the appeal of fixed income assets. Bill Gross, co founder of PIMCO, says
the bond market is quote a little over sold. In an interview with Bloomberg, Gross also took aim at retail investors, saying they've helped us scare the market by acting as quote little bond vigilantes.
They've been spooked over the last week or so by declines of two, three, four, five percent in their and so I think they're joining the crowd in terms of selling. And you know we're seeing a little bit of an oversoul market here headed to five percent.
And you can hear our full conversation with Bill Gross on the Bloomberg Talks podcast.
Well.
In corporate news, Nathan shares a Clorox are down almost five percent this morning. The cleaning products maker is still reeling from a cyber attack that diserupted production. Now it's forecasting a sales decline of as much as twenty eight percent. Prior to the attack, Chlorax had been expecting mid single digit organic sales growth in the quarter.
Man AT and T's exploring options for its multi billion dollar stake in Direct TV. AT and T Co owns the PayTV provider with private equity firm TPG.
Nathan, thanks time now for a look at some of the other stories making news around the world. For that, we're joined by Bloomberg's John Tucker. John, Good morning, Yeah, Good.
Morning, Karen. A notorious group of hackers blamed for recent breaches on major casino companies is also suspected of being behind that recent cyber attack against Clorox that we just heard about. Let's find out more on the attack from Bloomberg's Charlie Pennett.
Sources tell Bloomberg officials suspect that Scattered Spider is responsible for a breach that Clorox first disclosed in August. Bloomberg News has previously reported that the same group, known for its so called social engineering tactics, was tied to attacks on Caesar's Entertainment an MGM Resorts International in recent weeks. Scattered Spider hackers specialize in targeting call centers and it help desks, impersonating employees to trick support staff into coughing
up information to gain access to accounts. In New York, Charlie Pellett Bloomberg.
Radio, President Biden detailed nine billion dollars a new student loan relief, saying it would provide a boost to the US economy.
I've three millions of Americans from the crushing burden studentetamies. They can go and get their lives in order. They can think about buying a house, they can start a business, they can be starting a family.
The Administrator's latest steps will bring relief for one hundred and twenty five thousand borrowers through changes to programs intended to aid public servants, Americans with disabilities, and low income Ukraine says air defense forces down twenty four to twenty nine drones launched by Russia from Crimea to attack southern
and central regions of the nation. Meantime, Turkey preparing to host a third international gathering of national security advisors working to build support for a peace summit that Ukraine wants to hold this year. Secretary State Anthony Blinken and other top officials from the Biden administration are in Mexico the discussing shared security issues. Latest round of talks brings together Blincoln, the Attorney General Merrick Garland, and the Homeland Security Secretary
Alejandro Maiorcis, among others. And Dubai has cemented its status as the world's busiest market for luxury homes, with buyers pouring one point five nine billion dollars into high end properties during the third quarter. The property consultant Knight franks as the number of sales for homes where ten million dollars or more reached a record two hundred and seventy seven, putting the emmert firmly ahead of cities like New York.
Global News twenty four hours a day, Power Blind more than twenty seven hundred journalist and analysts in more than one hundred twenty countries. I'm John Tucker, and this is Bloomberg.
Karen right, John.
Thanks. So we bring you news throughout the day here on Bloomberg Radio. But now you can get the latest news on demand whenever you wanted. Subscribe to Bloomberg News Now to get the latest headlines at the click of a button. Get informed on your schedule. You can listen and subscribe to Bloomberg News Now on the Bloomberg Business app, Bloomberg dot Com, plus apples, Spotify, and anywhere else you get your podcasts. Time now for the Bloomberg Sports Update, and here's John stash Hour.
John here, and they played best of three in the Wildcard series and all four teams who won Game one also won Game two, so all four series are over in Swedes. That includes the Texas Rangers hadn't won a postseason series since twenty eleven. They won seven to one at Tampa Bay behind the pitching of Nathan Avaldi. They outscored the Rays of the series eleven to one. Minnesota moves on beating Toronto two to nothing, so the Blue
Jays only scored one run in the series. Sonny Gray and five believers teaming on the shutout, and the Twins get their first postseason series victory since two thousand and two. In Game one, Arizona in Milwaukee trailed three nothing came back to win sixty three. In Game two, Diamond back to were down two nothing, won the game five to two behind Zach Gallon, who was a seventeen game winner in the regular season. In the Phillies beat the Marlins
seven to one. Aaron Nola went sevents, did not allow a run only three hits. The division series begin on Saturday. Texas will be in Baltimore, Minnesota will be in Houston, Arizona will go to Los Angeles to play the Dodgers, and the Phillies will be in Atlanta, NFL. A couple of players who signed as free agents just a year ago no longer with those teams. The Chargers have traded
in cornerback J. C. Jackson. He goes back to New England, where he spent four years in one of Super Bowl and was an All Pro, and Denver released pass rusher Randy Gregory, he had formerly been with Dallas. The twenty thirty World Cup is expected to take place for the most part in Morocco, Spain, and Portugal, but also in three other nations. John stashiew were Bloomberg.
Sports from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager. Republican Congressman Matt Gates of Florida says he backs speakership bids by both representatives, Steve Scalise and Jim Jordan. Gates tells Bloomberg's Joe Matthew and Amrie Horder, and the person isn't as important as the plan to cut government spending.
I'm for both of them right now. I'm eager to hear their plans and their vision. But if the House of Representatives goes from the stewardship of Kevin McCarthy to either the stewardship of Jim Jordan or Steve Scalise, that's going to come to the delight of many Conservatives and certainly many of the Floridians that I represent. But it's not just about the person. Both of these folks are honorable man it's about the plan they have to reduce spending.
We sit a top of thirty three trillion dollar debt, We're facing two trillion dollar plus annual deficits, and I am worried about global dedollarization. I see what's going on in the African Union where more of those countries are
using local currency when they're selling natural resources. I look to a lot of the golf monarchies and energy producers in the Middle East that are moving away from the dollar and toward the One matter of fact, the United Arab Emirates, Saudi Arabia and Iran just in August joined the bricks system, the Brazil, Russia, India, China, South Africa
system to de dollarize. That with the latest Reuters survey showing that economic analysts now believe that in twenty twenty four you're really going to see a cooling off of the dollar. So I believe we have done a lot of creating stale plant.
A lot of critics do say that an expansion of bricks, though, means it actually dilutes it. They cannot coalesce around anything, and that actually helps the fact that the dollar remain the primacy currency on the global stage.
I wonder.
I think that that is not a linear progression, right, because as bricks becomes more institutionalized, you could see more and more good. I mean, the real worry about bricks is the movement of natural resources outside of the dollar as the Global South continues to develop and pack an even larger punch in the economy. You know, I think that the downgrade from Fitch was largely driven by the fact that there's no real backstop to spending. So here's
what we need, no matter who's the speaker. We need a top line budget that at least in the House of Representatives, returns to pre COVID spending levels. And then we need to be able to have single subject spending bills with open amendments, to have programmatic review of agency spending.
Well, Congress, well let's talk a little bit about what just happened. Nobody's ever done this before. It was history making the ouster of the speaker. We're told that you are the least popular man in the House of Representatives, or at least to the Republican Conference. In fact, just yesterday, your Republican colleague from New York, Mike Lawler, suggested violence against you in an interview right around this time yesterday. I'd love for you to hear what he said.
And have you respond. Here's mister Lawler.
The only thing that I would have done differently is flung it in the direction of one person. Look, he absolutely epitomized the frustrations of the conference and the American people.
Is that person we need to get?
Oh?
Yeah, I would have hit him square between the eyes.
Who's going to hitch a square between the eyes with the speaker's gavel? He was suggesting, Congressman, do you expect to be expelled from the Republican Conference?
Oh?
I don't know. I think that that was a very frustrated person who's having to come to grips with the stages of grief. My mission is to ensure that the House of Representatives runs better because the way we've been right Washington, d C. For the last thirty years has led us to a point where no one is really responsible for the spending. We are backed up against shut
down politics. We are governed by crisis, and the biggest problem is lawmakers have to take one up or down vote on continuing resolutions and omnibus bills to either fund or not fund the entire government that truncates the type of thoughtful and serious analysis that we have to apply to how the federal dollar is being spent at a time like this. So I'm not much for political violence. I don't want to hit anybody. If Mike Lawler comes at me with a gavel, I'm not entirely sure that
would concern me. But that's not the direction I think we ought to go. I think we ought to maybe craft a budget before an attack strategy.
Well, you know, Kevin McCarthy says this was personal. He spoke about this at length yesterday that he's seen texts, he said involving an ethics probe against you. Congressman, what do you know about the status of this investigation?
Have you been called to a peer personally?
No, I haven't. I've answered all the questions I've been asked, and I am the most investigated man in the United States Congress. I have been cleared by the FBI, the DOJ, the Federal Elections Commission had a five to zero vote to clear me, and the people who told vicious lies about me two years ago are now sitting in federal prison for being part of a criminal fraud scheme to shake down my family, so I don't fear any investigation. I have never asked Kevin McCarthy to assist me in
that matter. And sometimes people try to make policy failures personal because those failures are so personally embarrassing to them. So when Keviny McCarthy talks about this conflict being personal, I think it's more projection than a sober analysis of where the house stands.
This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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And I'm Karen Moscow.
Join us again tomorrow morning for all the news you need to start your day, right here on Bloomberg Daybreak