Government Shutdown Looming; Another Debate Without Trump

Good morning.

I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.

First, it is a busy morning on the political front, and we begin with a looming government shutdown. A last minute deal does not appear likely. Bloomberg Zamy Morris has the latest from Washington.

House Speaker Kevin McCarthy and Republican hardliners want to make the shutdown about the surge of migrants across the southern border, but they're not united on exactly what they want. President Biden and his advisors consider these new demands to be renegging on the deal on spending levels that McCarthy made during the debt sealing standoff. And now moderate Republicans are looking to work with Democrats by passing a bipartisan stopgap measure, and they could force the House to vote on that,

But we're also following reaction to the second Republican presidential debate. Seven candidates took this stage at the Reagan Presidential Library, hosted by Fox Business. The autoworkers strike was a prominent theme, with front runner Donald Trump rallying workers in Michigan instead of taking part. Entrepreneur vivek Ramaswami had some advice for the United Auto Workers.

I would say, go pick it in front of the White House in Washington, DC. That's really where the protest needs to be. Disastrous economic policies that have driven up prices, that have driven up interest rates and mortgage rates at the same time wage's remaining stagnant.

The candidates also took more aim at the front runner, including Florida Governor Rond De Santis.

Donald Trump is missing in action. He should be on this stage tonight. He owes it to you to defend his record where they added seven point eight trillion to the debt that set the stage for the inflation that we have now.

The candidates also called for tougher border enforcement and a harder line on China, but they were split on supporting Ukraine. Senator Tim Scott argued to continue funding.

Our national vital interests is in degrading the Russian military.

And at one point the moderators asked which candidate they choose to vote off the island. All seven refused to answer.

Well, Karen, this was the second debate that Donald Trump chose to skip during his day he was in Michigan and issued his support for the striking United otto Workers.

I sided with the auto workers of American with those who want to make America great again, and I always will.

Former President Trump's trip came a day after President Biden became the first sitting president in US history to walk a picket line as he joined the United Auto Workers outside Detroit.

Well Nathan. In addition to Donald Trump, another critic of Joe Biden has been Texas Governor Greg Abbott. He blames the administration's immigration policies for a crisis at the border.

I will be endorsing on the primary at the right time. That said, I think that any Republican can beat Joe Biden. Joe Biden is more underwater than any president in American history. He is disfavored even by people in the Democrat Party and by independence and of course Republicans.

And Texas Governor Greg Abbott made the comments in an interview with a Bloomberg. Get the full conversation on the Bloomberg Talks podcast feed, available wherever you get your podcasts.

Well Karen, another Texas resident, is in the news this morning, Elon Musk and he's deepening his ties to the Pentagon with a new contract. Bloomberg's Ed Baxter has that story.

This is Musk's first deal with a US space force, the object to provide customized satellite communications for the military out of the company's Starshield program. SpaceX is competing with fifteen companies for nine hundred million dollars in work orders through twenty twenty eight as part of the Low Earth Orbit program. As process would incorporate the already existing Starlink

Radio, all right, Ed, thanks well.

Checking some stocks on the move this morning, Shares of Micron Technology down five percent. The shipmaker is predicting a steeper loss than anticipated in the current quarter for Micron and its competitors. It's been a brutal year. Personal computers and smartphone customers of slashed orders as they deal with lower demand and stockpiles of excess parts.

Another mover this morning, Karen is Peloton. Those shares are surging thirteen percent on News. The fitness companies agreed to a five year partnership with clothing company Lulu Lemon. Lulu Lemon will make athletic War that Peloton will sell, and Peloton's online classes will be offered to users of Lululemon's studio mirror in Asia.

Nathan a developing story from one of China's property giants, Evergrand, and its units have suspended trading in their shares on Bloomberg's Brian Curtis has more from Hong Kong.

No reason given for the halt. It comes a day after sources told us Evergrand's chairman Hai Kai Yan was taken away by police. Way is said to be under residential surveillance. It comes at a delicate time for the big developer. Evergrand has scrapped key creditor meetings and revealed that it cannot issue new bonds. That's a setback to a planned restructuring and would seem to suggest an existential crisis. You know, Hong Kong. Brian Curtis, Bloomberg.

Radio Brian Here in the US, Apple's getting heat in early reviews of the new iPhone. Let's get the details from Bloomberg's John Tucker.

John Nathans. Some of the first users of the iPhone fifteen pro and promac say they're too hot to handle. Literally. The gripes of spread across Apple online forums and social media networks that the back or the side of the phone becomes hot to the touch while gaming or we're conducting a phone call or FaceTime video chat. For some users, the issue is more prominent while the device is plugged

Thanks Nathan.

Time now for a look at some of the other stories making news around the world. For that, we're joined by Bloomberg Amy Morris Amy, Good morning.

Good morning, Karen. A House panel will hold the first Biden impeachment hearing today, focusing on the business dealings of the first family. Political expert Amy Daisy says House Speaker Kevin McCarthy's facing pressure from his rights flank to open that inquiry in the first place.

The Republicans haven't shown yet what they think the wrong doing is. I think the bigger thing for me is to witness kind of this procedure that's supposed to be a matter of checks and balances, how it's become so politicized.

The House Oversight Committee plans to call three witnesses at this first hearing, a forensic accountant, a former government tax attorney, and a conservative legal scholar. New Jersey Senator Robert Menendez has set to address his Democratic colleagues today concerning the bribery charges he's facing. Bloomberg's Nancy Lyons brings us an update.

More than half his Democratic colleagues in the Senate have called for Senator Menendez to step down. Senate Majority Leader Chuck Schumer has stopped short of calling for him to quit, but he has said his conduct fell below Senate standards. Menendez, who has temporarily been replaced as chair the Senate Foreign Relations Committee, is facing charges that he took gold, bars and cash as payment for illegally helping three businessmen as

The federal judge overseeing former President Trump's federal twenty twenty election interference case has denied his request that she'd be removed. Trump's lawyers claims the Obama appointed judge made disqualifying statements while sentencing two people for their roles at the January sixth Capitol Riot. President Biden says the US needs to make investments in science and technology.

I don't know how we can be the safest, most secure, and healthiest nation in the world without significant investment and science and technology.

Speaking at a meeting with the Council of Advisors on Science and Technology in San Francisco, President Biden noted the profound risk if artificial intelligence isn't handled with care. He acknowledged the fifteen American tech companies who already made commitments to making sure AI technology is safe before releasing it to the public. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts

Right, Amy, thank you, while we bring in the news throughout the day here on Bloomberg Radio Own. But now you can get the latest news on demand whenever you want it. Subscribe to Bloomberg News Now to get the latest headlines if 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.

Darren Damian Lillard. I spent this entire eleven year NBA career in portlet He made seven All Star Games, but I'm happy with the Blazers, who've had five recent first rand playoff exits and didn't make the playoffs the last two seasons. He's been traded to Milwaukee, where he and Giannis so to the Compo might just become the NBA's top one two punch. The Bucks are now favored to win the NBA Championship. He was a three team trade

The Blazers get Drew.

Holliday and DeAndre Eighton. Lillard averaged thirty two points a game last season. No player who scored that much has ever then changed teams. The two rookie quarterbacks who didn't play last week are expected to return Sunday, Carolinas Bryce Young from the injured ankle, and the Colts Anthony Richardson from the concussion. The Raiders QB Jimmy Garoppolo is still in concussion protocol, and the Saints Derek Carr says if he can play Sunday to but an injured shoulder, he will.

From coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias Exam.

The Bloomberg Business app in Bloomberg dot com. This is Bloomberg Daybreak.

Good morning.

I'm Nathan Hager. For more than a year, Texas Governor Greg Abbott has been busing migrants from the southern border to places like New York, Washington, and Chicago. That has prompted angry complaints from Democratic leaders in those cities. Now, the Republican governor is asking that they join him in urging President Biden to enforce immigration laws that are already on the books and take a harder stance on stemming

I want to return to the migrants here in New York City. Mayor Adams has repeatedly warned of rising costs to house and to care for them. Was your intention in starting Operation Loan Star to get democratic cities like New York and the federal government to do something to put pressure on them with the border, Like what's the endgame here, So.

That was not the intention at all. The beginning game was to relieve the burden that was placed on small Texas towns on the border. Eagle Pass population twenty eight thousand. This past week they had ten thousand migrants coming to the town. One third of the population of Eagle Pass was occupied by migrants, and then del Rio, etc. And then working with them, they said listen, we need help, and that's what led to the bussing operations to Washington, d C. New York, Chicago, LA, and elsewhere.

But you specifically targeted democratic cities. We don't see them going frequently to very red cities in red states.

You specifically targeted them.

Well, what we did, first of all, before anybody gets on a bus and goes anywhere they go voluntarily, they self identify what city they want to go to. So the New York is purposefully chosen by the migrants as a location to go to point one. But point two, the only place that they are typically going to are cities that self identify as sanctuary cities, which may be one of the reasons why some of the migrants choose to go there.

So you're saying, these migrants come off the bus and say take me to New York or are they given an option of democratic blue or cities?

They are given an option about anywhere they want to go, and the number one choice of where they wanted to go was New York City.

So they're not given a list of seven eight cities.

They're not given specific lists that they were given opportunities tell us where you want to go, and they choose New York, Chicago and other lar cities that they've heard of before, or they may have family contacts in.

So are their buses then going to cities that we don't know of, like Miami or in redder states?

So right now there may not be, but because of the increase in the number of people coming across the border, there likely will be new destinations that people would be going to invesses.

And those will include red cities and red states.

We'll see.

It depends on whether the migras choose.

Okay, let's turn to the election here.

Oh, by the way, you do say you blame President Biden for the current border situation. You've said that, you said his policies.

Isn't there blame to go around? Though?

When you look at former presidents, haven't solved this border crisis. Congress hasn't solved this border crisis. Republican and Democrat.

To be clear, all the laws that are needed already in place. That was proven by President Trump three years ago. When Trump was still president, we had the lowest illegal border crossings in forty years. He had the remain in Mexico policy, the Title forty two policy, the end of catchum release, and building the border wall. When Biden was elected, he eliminated all of those policies and send a message to the entire world the border is open and he was not going to do anything to stop people from

So you know, President Biden, while you say he's saying that it's open border policies, he has never said the words.

The border is open.

And again, do you think there's enough, you know, blame to go round between.

Come to be clear, what he has said is you come here illegally, We're not going to send you back. That is messaging of open border policies. He has provided the magnet for people to come here, which is the opposite of what Trump did. Trump send a message that if you come here, we're going to send you back. If you try to come here, you're going to have to remain in Mexico. Because Joe Biden eliminated all of that. He said, basically, the border is open. We're going to

Wow.

This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.

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I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak